The Government’s tax update 2026 includes a package of customs measures aimed at modernising the UK customs system, reducing administrative burdens and strengthening compliance.
While many of the announcements are still at consultation or development stage, they give a clear indication of where UK customs policy is heading; more digital, more data-led, more regulated and more transparent.
Summary of the 11 customs measures
1 - Call for evidence on customs modernisation
What has been announced
A call for evidence has been published to gather industry views on trade digitalisation and the future of the UK customs regime.
Why it matters
This is the broad “direction of travel” measure. It gives businesses a chance to influence how customs processes, data requirements and authorisations may evolve.
2 - Digitalisation and AI customs pilots
What has been announced
HMRC will continue testing Electronic Trade Documents, Digital Trade Corridors, digital verifiable credentials and AI-assisted documentary checks.
Why it matters
Customs checks are becoming more digital and data-led. Good data should support smoother clearance; poor data may be challenged more quickly.
3 - Improving the quality of customs intermediaries
What has been announced
The Government will build on the new customs intermediary standard, develop voluntary certification and consult on mandatory registration for intermediaries.
Why it matters
This could be a significant change for the broker market. Importers and exporters should expect more focus on broker quality, oversight and accountability.
4 - Digital ATA Carnets
What has been announced
Digital ATA Carnets were introduced from 1 June 2026 for temporary movements of goods.
Why it matters
A practical modernisation measure for businesses moving goods temporarily, including for exhibitions, events, professional equipment and touring purposes.
5 - Changes to the duty reimbursement scheme for Northern Ireland goods
What has been announced
The scheme has been amended to improve access to reimbursement of “at risk” duty paid on goods moved into Northern Ireland.
Why it matters
Helpful for businesses, particularly manufacturers, where proof of final destination can take time to obtain.
6 - Voluntary disclosure policy
What has been announced
HMRC will develop and publish a formal customs voluntary disclosure framework by the end of 2026.
Why it matters
This should give businesses a clearer route to disclose customs errors. It also reinforces the expectation that businesses should identify and address issues proactively.
7 - Tariff inversion and inward processing
What has been announced
A call for evidence will be published on tariff inversion and the economic condition for inward processing.
Why it matters
Potentially important for manufacturers using inward processing, especially where the duty outcome depends on the relationship between input and finished goods duty rates.
8 - Online Trade Tariff developments
What has been announced
The Online Trade Tariff will continue to be developed into a more modern, journey-based digital service, including AI-supported features.
Why it matters
This should make tariff information easier to access, but businesses will still need to evidence classification, origin and valuation decisions.
9 - Low value imports reform
What has been announced
Delivery of the new low value import customs arrangements will be accelerated to October 2028 at the latest.
Why it matters
Important for e-commerce, online marketplaces and B2C parcel models. The reform is likely to increase customs obligations and data requirements.
10 - Strengthening the customs civil penalty framework
What has been announced
The Government intends to legislate to strengthen the customs civil penalty framework, including reviewing maximum penalty levels.
Why it matters
This points to a tougher enforcement environment and greater potential cost where customs controls are weak.
11 - Disclosure for compound settlements
What has been announced
HMRC will be given stronger powers to publish details of companies entering into compound settlements for strategic export and sanctions offences.
Why it matters
A notable reputational risk development. Export control and sanctions breaches may become more visible, even where resolved by settlement.
What this tells us
The measures are not just administrative tweaks. Taken together, they show a clear shift in UK customs policy.
HMRC is moving towards a system that is:
- more digital, with greater use of Electronic Trade Documents, digital credentials and AI
- more data-led, with increased reliance on accurate, complete customs information
- more regulated, particularly in relation to customs intermediaries
- more structured, with a formal voluntary disclosure route for customs errors
- more transparent, especially in relation to enforcement outcomes.
For compliant businesses, this could create opportunities for smoother processes and better engagement with HMRC. For businesses with weaker controls, the direction of travel suggests that errors may become easier to detect and more costly to resolve.
Where businesses should focus
The immediate practical steps are relatively clear.
Businesses should review whether:
- customs data is complete, accurate and consistent
- classification, origin and valuation decisions are properly documented
- broker instructions and oversight arrangements are sufficiently robust
- there is a clear process for identifying and disclosing customs errors
- inward processing or low value import models could be affected by future reform
- export control and sanctions compliance processes are strong enough given the proposed publication powers.
The overall message is that customs compliance is becoming more visible and more actively managed. Businesses should not wait for every detail to be finalised before assessing whether their customs controls are fit for the direction of travel.
For more information, please contact your usual Crowe contact.
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