Switching to the UK's CDS? Questions To Ask, Actions To Take

The new UK customs declaration system is going live. In this blog, discover actions importing and exporting businesses may need to take now.

What is CDS, In A Nutshell?

The UK Customs Declaration Service (CDS) is the online platform that allows importers and exporters to make customs declarations and offers assistance in obtaining the necessary information prior to, during, and after declarations. The UK CDS will take the position of the CHIEF platform, which will be "decommissioned" from 2022.

Why Is That Needed?

It is designed to be a flexible declaration system that can manage projected future import and export growth. CDS is believed to have the capacity and capability to expand in tandem with an increase in the amount of customs declarations following Brexit. CDS intends to assure regulatory compliance at the border, make declaration data available for free, and be designed to allow for future trade expansion through the use of specialised functions and interfaces.

What's Changing?

CDS will include eight Data Elements that businesses will need to complete, and some of the names are changing from those used in CHIEF. The way businesses process your declaration payments will change with CDS.

Changes affect, in principle:

• Duty Deferment Accounts

• Flexible Accounting System (FAS) accounts

• Immediate Payments

• Guarantee Accounts

• Individual Guarantees

There is too much to say about the changes in one blog entry. Please schedule a call with your dedicated Customs Manager to discuss these or join our training courses on CDS.

What Are The Benefits Of CDS?

According to HMRC, the new system will provide a more secure and dependable platform with the ability and opportunity to develop in accordance with the government's ambitious trade goals of having the world's most efficient customs system by 2025.

What Do Businesses Need To Do?

Businesses need to begin migrating to the new system, therefore we're at Customs Manager are offering information to assist you to prepare. Please reach out to ensure that we can help you in good time with training and bespoke support. We can even file declarations for you.

What Are The Key Dates?

• After 30 September 2022, you will no longer be allowed to make import declarations on CHIEF.

• After 31 March 2023, you will no longer be able to make export declarations on CHIEF.

The CHIEF system will be phased down on March 31, 2023. Beginning on this day, all firms will be required to declare items through the CDS. CDS is already now utilised for declarations from Northern Ireland and the rest of the world, and it has already processed over one million declarations since its launch in 2018.

What Can I Do With CDS?

• Use CDS to make import and export declarations and submit accompanying documents

• To complete your VAT return, obtain your postponed import VAT statements or import VAT certifications.

• To pay your customs ad excise duty and import VAT.

How to Get Ready?

There are several actions you may take:

• Register for CDS on HMRC. Please review https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service. Bonus tip: Check that the email and address details in your company tax account are valid - HMRC needs this information to keep you updated!

• Learn how to use the Customs Declaration Service to submit import and export declarations. Please review our training offer on CDS. This is where you will be practising some sample declarations, to make the transition to utilising Customs Declaration Service as simple as possible for your firm.

• Run through the processes and procedures prior to September with an expert. Book a session with your Customs Manager today, here.

• And if you don't want to do it, forget about it all and get us to file declarations for you, too. See our competitive pricing here.

• If you wish to file customs declarations yourself, speak with your software developer about how they can help you transition to the Customs Declaration Service. Let us know if you would like recommendations and get us to help you find the right one.

What Information Must I Provide to Get Onto CDS ?

HMRC needs from you, as a minimum:

• your Economic Operator Registration and Identification (EORI) number, which begins with GB

• Unique Taxpayer Reference (UTR)

• National Insurance number (whether you are a sole trader or an individual)

• The day you launched your company

Can I Try It Before I Use It?

Yes, the Trader Dress Rehearsal is a free service that will assist you in preparing for the real Customs Declaration Service. It focuses on the declarant and allows you to submit numerous declaration situations in a simulated Customs Declaration Service. You can submit import and export declarations in collaboration utilising real data realistic business situations in a supported Customs Declaration Service simulated environment. However, there will be no financial payments, and your licences or quotas will not be affected. Customs Manager Ltd is already on it and all our clients get to try the TDR with us as part of our training and preparation.

Can You Give Us Some Examples Of How To Complete A CDS Declaration?

Of course, plenty. We focus on imports for now, as this is most urgent. You know the key problem: An incorrect declaration will be rejected.

We have many sample scenarios ready for you which explain how the Customs Declarations Service declarations for imports from the rest of the globe into the United Kingdom (England, Scotland, and Wales) work.

You can use the below examples to

• assist in getting to grips with the data element needs in a declaration

• Examine how the guidance on each data piece resulted in unique entries for each declaration.

• Check your own declaration against an example to ensure that it meets the formatting and data element criteria.

What Examples Are Covered?

• Imports supplementary declaration for removal of goods from private customs warehouse with 'Entry in Declarant’s Records' authorisation

• Inventory linked pre-lodged import declaration with certificates to import plants and plant products

• Inventory linked imports supplementary declaration with a duty calculation manual override

• Inventory linked pre-lodged imports for 'Simplified Declaration Procedure' declarations

• Pre-lodged declaration with entry to customs warehouse of good being re-imported after outward processing

• Inventory linked standard import frontier declaration with a 'Department for International Trade' license

• Inventory linked standard frontier declaration for goods imported from Mexico with a claim to preferential quota

• Inventory linked standard frontier declaration where imports are subject to safeguarding retaliatory measures

• Inventory linked standard import declaration of excise goods, covering supplementary units and tax base

• Inventory linked standard import frontier declaration with multiple items

• Pre-lodged declaration with entry to customs warehouse of good being re-imported after outward processing

• Inventory linked pre-lodged import declaration with certificates to import plants and plant products

• Pre-lodged imports frontier declaration with a 'Department for International Trade' license in a non-inventory linked port

What if I keep getting error messages when submitting my declaration?

Then easy, you contact your dedicated Customs Manager on the chat for support. We will sort it. Not got your own Customs Manager? Get one today for less than 2 GBP ($3 / €3) per day.

What to do if I get stuck?

We "de-stuck" you - it's what we do. Contact your Customs Manager!

What do I do if I just have a question?

1. Put it in the chat

2. Schedule a free call

3. Get a Customs Manager.