In the realm of UK imports, a significant update has arrived from HM Revenue & Customs (HMRC) that demands attention from all businesses involved in importing goods into the country. This change revolves around the use of specific commodity codes within the Customs Declaration Service (CDS), a pivotal system for submitting import declarations. For years, businesses have been utilising a special waiver document code, known as 999L, for those instances where goods did not strictly meet documentary or licensing requirements. This code acted as a bypass for such goods, facilitating smoother import processes.

However, a crucial shift is on the horizon. Effective from the 1st of February, 2024, the 999L waiver will no longer be available for import declarations. This alteration signifies a move towards stricter import controls and compliance measures by HMRC. The removal of this waiver means that businesses can no longer use this shortcut for their goods. Should anyone attempt to employ the 999L code in their import declarations post-January 31, 2024, they will find their submissions rejected. This rejection not only impedes the importation process but also risks delaying the arrival of goods into the UK—a scenario every importer aims to avoid.

The core of this change lies in the enforcement of specific Harmonized System (HS) codes for enhanced import control. These codes classify traded products and are essential for international trade, enabling customs authorities worldwide to identify goods in a standardized manner. With the updated regulations, it is incumbent upon importers to accurately declare which customs conditions apply to their products, based on the relevant HS codes. This requirement underscores the need for businesses to familiarize themselves with the customs procedures applicable to their goods and ensure compliance to avoid importation hitches.

What does this mean for UK importers?

The message is clear: preparation and adaptation are key. Businesses must review their current import practices, especially those previously reliant on the 999L waiver, and adjust accordingly. This involves a thorough understanding of the HS codes relevant to their imported goods and the specific customs conditions that apply. It’s a call to action for importers to engage with HMRC’s guidelines, seek expert advice if necessary, and ensure that their import declarations are fully compliant with the new requirements.

As we navigate this transition, it’s crucial for businesses to stay informed and proactive. The change signals HMRC’s commitment to strengthening import controls and ensuring compliance across the board. For importers, adapting to these changes not only means avoiding potential delays but also contributing to a more secure and efficient trade environment in the UK.

What about dropshippers?

The recent changes in the UK’s import declaration requirements, particularly the removal of the 999L waiver, are poised to significantly impact dropshipping businesses that import goods into the UK, especially those that use customers’ names as the importer of record. Dropshipping businesses, which typically rely on a streamlined, low-overhead model to fulfill orders directly from a manufacturer or wholesaler to the customer, may face new challenges and considerations:

1. Increased Responsibility for Compliance: Without the 999L waiver, dropshippers will need to ensure every import complies with specific documentary and licensing requirements. This means having a deeper understanding of the Harmonized System (HS) codes relevant to their products and the specific customs conditions that apply. Ensuring compliance becomes more critical, as any errors in declarations could lead to delays or rejections at customs.
2. Need for Enhanced Communication with Suppliers: Dropshippers will need to work closely with their suppliers to guarantee that all goods shipped to the UK meet the required import regulations. This collaboration is crucial to ensure that the correct HS codes are applied and that all necessary documentation is in order. It may also involve renegotiating terms with suppliers to address these additional responsibilities and potential costs.
3. Impact on Delivery Times: The risk of delays at customs is heightened without the flexibility the 999L waiver provided. Dropshippers must be prepared for the possibility of longer delivery times and plan accordingly. This could involve setting more conservative delivery time estimates for customers or finding faster, albeit possibly more expensive, shipping methods to mitigate delays.
4. Increased Costs: Compliance with these new requirements may lead to increased costs for dropshippers. These could stem from the need for additional documentation, potential customs duties, or the need to use expedited shipping options to maintain delivery times. Dropshippers will need to assess how these increased costs impact their pricing and profitability.
5. Customer Communication and Satisfaction: With the potential for increased delivery times and costs, maintaining clear communication with customers becomes even more important. Dropshippers will need to manage customer expectations effectively and ensure transparency regarding delivery times and any potential delays. Keeping customers informed can help mitigate dissatisfaction and maintain trust.
6. Exploring New Strategies: Dropshippers might need to explore new business strategies to adapt to these changes. This could include diversifying suppliers, considering stockpiling goods within the UK to avoid import hassles, or even reassessing the viability of selling certain products that are particularly challenging to import under the new regulations.

In summary, the removal of the 999L waiver introduces a new layer of complexity for dropshippers operating in the UK market. It necessitates a proactive approach to compliance, closer collaboration with suppliers, and perhaps most importantly, a flexible and transparent customer service strategy to navigate potential delays and maintain customer satisfaction. Adapting to these changes will be key for dropshippers to continue operating successfully in the UK.

Couriers are going to be reaching out to customers directly to provide the correct waiver in order to clear their doll. The dropshippers are unlikely to do this.

In light of these adjustments to the UK’s import declaration requirements, it’s important to note that Cloud Climax does not engage in dropshipping. Our operational model ensures direct control over all import processes, meaning our customers will not be affected by this change. By managing our supply chain and fulfillment operations ourselves, we maintain compliance with all import regulations, including the updated requirements related to the removal of the 999L waiver, ensuring our service to you remains seamless and unaffected.