CDS (Exports): Detailed Step-by-Step Guide + Changes Explained

Our Step-by-Step Guide for getting ready to file Export declarations with CDS and explanations of what is changing under CDS for exports

I Introduction

The implementation of HMRC's Customs Declaration Service (CDS) in the UK has been a major topic of discussion among traders and exporters. The new system is intended to replace the existing Customs Handling of Import and Export Freight (CHIEF) system, which has existed for 30 years. The CDS is designed to be more efficient and user-friendly, providing better access to information and reducing the time required for customs declarations.

However, introducing the CDS could potentially lead to several challenges for UK exporters. The new system requires more detailed and accurate data to be provided, which could result in delays and additional costs for businesses that are not fully prepared. There is also the possibility of increased scrutiny on customs declarations due to the increased transparency provided by the CDS.

What is Customs Declaration Service (CDS) for UK exporters?

The Customs Declaration Service (CDS) is an essential tool for UK exporters to comply with the necessary customs procedures when exporting goods outside of the United Kingdom. It is a computer system that exporters use to make customs declarations.

The service helps streamline the process by providing a centralized platform where exporters can submit the required documentation and information to customs authorities. By utilizing this service, exporters can ensure that their goods are properly declared, minimizing the risk of delays, penalties, or other complications arising from non-compliance.

Start of the Customs Declaration Service for Exports in the UK (CDS)

Businesses will have to use CDS to make export declarations for products they ship out of the UK after 4 June 2024, the same as UK exporters do now for import declarations. We present this guide (as a starting point), a separate resource guide, access to the UK Trade Tariff Volume 3 for CDS and training help to ensure that each organization's transition to CDS goes as smoothly as possible.

The rationale for CHIEF's closure

HMRC wants a future-ready border IT infrastructure to help firms grow and profit from FTAs. Despite its antiquity and lack of Customs Declaration Service technology, CHIEF is dependable for the UK. The Customs Declaration Service is trustworthy, adaptive, and efficient thanks to cutting-edge technology. It assures Northern Ireland Protocol compliance and effectively manages all declarations, easing commerce and boosting business development. CHIEF can handle the UK Trade Tariff. Long-term commerce relies on the Customs Declaration Service, which can adjust to future import and export growth. Finally, running one system is more efficient than two. This single system will save government costs, streamline trading operations, and free up funds for important public services.

Instructions on how to lodge customs declarations successfully using the Customs Declaration Service (CDS)

Customs declarations have soon to be made using CDS, and detailed instructions have been published on how to do so. All traders who are making export declarations must get acquainted with this system.

Because these instructions are rather complicated, it is crucial to get training on them and to concentrate on the most significant aspects. It is necessary to have a conversation about the upcoming changes to the CHIEF system, as well as the new features! You must comprehend the causes behind the significance of declaring a category, as well as the fields that are obligatory, optional, and dependent on other fields.

Our CDS training will cover all of these topics, as well as a comprehensive review of the guideline materials that have been provided by the government.

When is the change to CDS exports?

HMRC has announced the extension of the deadline for transferring all export declarations to the Customs Declaration Service (CDS) to March 30, 2024. To ensure a smooth transition, a phased implementation plan has been put in place, requiring high-volume merchants to shift to CDS for exports by November 30, 2023. This announcement provides more time for businesses to adapt to the new system.

Join Our "CDS Practitioner Group"

To stay up to date with the latest updates from HMRC and to troubleshoot matters on CDS for imports and exports, you can join our CDS Practitioner Group, an online forum, free of charge, where you can post questions and get other users to answer you. It is moderated by us, and we offer guidance and support in this group, too. Please contact us, by emailing info@customsmanager.org if you wish to join this group, and we will send you the link for it.

II Our Step-by-Step Guide for getting ready to file Export declarations with CDS

Step 1: Get Your Fundamentals ready

This includes making sure that you have chosen the appropriate freight agency, customs broker, and information technology tools to meet the criteria of your customs filing endeavours. You may, for instance, collaborate with us since we provide customs declaration filing services to companies in the United Kingdom that are engaged in exports. Visit the website www.customsmange.org for more information. Needless to say, you will also need an EORI number.

Step 2: Understand what's changing with CDS for Exports

All import declarations are now made via the Customs Declaration Service. The Customs Declaration Service gathers some information differently and requires different data entry than CHIEF if you presently utilise it for your declarations.

Step 3: Make sure you have the UK Trade Tariff ready for importing and exporting codes & more

You may use the UK Trade Tariff to determine which forms, codes, and processes are appropriate for importing or exporting commodities.

Step 4: Understand the eight data element groupings to complete the customs declaration

Eight data element groupings are included in the submissions you made via the Customs Declaration Service. Depending on the Customs Procedure, you may have to supply more data components. You should also be aware that the data you provide could vary from what CHIEF is now requesting.

Step 5 Read new and updated guides to help you prepare Customs Declaration Service for exports (CDS)

UK exporters and UK customs agents must use the Customs Declaration Service from April 2024. To support this move to CDS for exports a ‘Declarant checklist for exports – moving to the Customs Declaration Service ‘is now available in addition to the UK Export Guide for filing declarations using CDS. The UK has also updated the ‘CDS Movement Reference Number (MRN) guide’.

Step 6: Understand the UK CDS Declaration & Customs Clearance Rules For Exports

Filers need to read extensive guidance on how to complete an export declaration for the Customs Declaration Service. The below links provide access to the CDS Declaration Instructions for Exports, including procedure codes, data sets and declaration completion rules. You can find CDS Declaration and Customs Clearance Request Instructions and Rules for Exports in the UK Trade Tariff: Volume 3 for the Customs Declaration Service (CDS) on our resource hub for CDS. This is where you can also find the following documents

• Navigate the CDS Declaration Instructions for Exports

• CDS Declaration Completion Instructions for Exports

• Simplified Procedures Exclusions List of Procedure and Additional Procedure Codes for exports

• Appendix 1: DE 1/10: Requested and Previous Procedure Codes

• Appendix 2: DE 1/11: Additional Procedure Codes

• 4-digit to 3-digit procedure to additional procedure code correlation matrix for exports

• Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text

There are separate rules for inventory export declarations. Please get in touch.

Step 7: Stay abreast with changes to the Customs Declaration Services Codes, guidance changes and more.

On an almost daily basis, new codes, regulations, and guidances are proposed and implemented. At the very least, companies that file customer declarations should check once a week to ensure that the modifications that have been implemented do not have an impact on their operations and that, if they do have an impact, they are considering these changes appropriately. The easy way to do this is with a subscription to the trade intelligence service of Customs Manager INFO, and by bookmarking this page and visiting it once a week:

https://www.customsmanager.info/post/latest-changes-to-the-uk-customs-declaration-service

For example, the Tariff Volume 3 Great Britain Supplement CDS and CHIEF has recently been updated. This change has been made to this supplement guide for making customs declarations in Great Britain. Specifically, the temporary Buyer and Seller easement and the temporary extension in use of I1 B&E, which were due to expire on 30th September 2023, have been extended. This may not be relevant for everyone, but it is good to know that this changed and your business in not affected. This guide, BTW, should be used when using the CHIEF and CDS trade tariffs to import and export goods to and from Great Britain (England, Scotland and Wales). It supplements the CHIEF and CDS trade tariffs when making declarations. It should be read with the current versions of the UK Trade Tariff: Volume 3 for CHIEF and CDS. It provides high-level information on the customs requirements and includes the specific changes and declaration completion requirements where they differ from the current published Tariff instructions. You should make sure that the instructions specific to the declaration system being used are read. Here is the link to the updated guidance.

III Key modification under CDS Exports when compared with CHIEF

Read all about the key changes in this blog entry:

• More Data Required

• More CDS Declarations To Be Filed

• "Constructing" the Customs Procedure Codes as per the UK Customs Declaration Service (CDS) for exports

• A New "Permanent Procedure Codes" as per the as per the UK Customs Declaration Service (CDS) for exports

• "Nature of the Transaction" as per the Customs Declaration Service (CDS) for exports

• Customs Value may matter for high-value exports as per the Customs Declaration Service (CDS) for exports

• "Carrier of the Goods" as per the Customs Declaration Service (CDS) for exports

• Dispatch & destination countries under the Customs Declaration Service (CDS)

• Don't forget the VAT zero-rating requirements under the Customs Declaration Service (CDS)

• What about export licences under the Customs Declaration Service (CDS)?

• How to clear customs declarations under CDS for export?

• Submitting export declarations online

Conclusion

In conclusion, exporters must be aware of the two key considerations: export declarations and CDS. They must ensure that they are registered with CDS and that the newly required additional data is included in their clearance instructions or standard operating procedures. It is also crucial to prepare their shipping department and other team members for the new Customs Declaration Service. Join our training and our CDS group from more information and support. Book now at www.customsmanager.org/events and e-mail us to get access to the CDS Practicioners Group.

More information and links

• Completion Rules

• Download the UK Export Guide for businesses filing customs declarations using CDS

• A guide on "Movement Reference Numbers (MRN)"

• Checklist for moving to CDS Exports from our CDS Resource Hub

Customs Declaration Service (CDS) For Exports TRAINING

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