By Alex Sharp, CDS Compliance Analyst of ChamberCustoms Ltd
Last updated: 29 August 2023
Don’t let the new requirements for Import and Export declarations cause you delays!
If your business trades overseas, by now you probably feel confident in navigating the paperwork. However, major system changes are coming soon which means you will need to look again or suffer possible delays.
With over 30 years of service, the Customs Handling of Import and Export (CHIEF) system is being retired and will be replaced by the Customs Declaration Service (CDS), in two stages.
For imports, the switch over will be 30th September 2022 and for Exports, 30 November 2023 30 March 2024.
This upgrade in IT systems is vital to keep up with the growing demand for Import and Export declarations following Brexit. The move falls in line with the Government's ambition to have the world’s most efficient customs system by 2025, through the offer of resilience to change and reliability to the trade.
Let’s look at 5 transition stages showing the steps you should take to get ready!
Stage 1: Access to the Government Gateway
Stage one of getting ready is to make sure you have access to the Government Gateway. To do this, you will need to obtain a Government Gateway ID via the Gateway portal online. You will also need to ensure you have applied for/received a GB EORI.
Stage 2: Get Access to CDS Services
In stage two we look at what further information you will require to get access to CDS and what that access gives you. Once you are in your Government Gateway, you will be able to see all your information relating to CDS, but first, you will need to provide the following information.
GB EORI number
Unique Taxpayer Reference (UTR)
Business Address
National Insurance Number
Business start date
Email address
Once these have been provided you will be able to see your financial dashboard and a secure file upload service for HMRC document checks on CDS entries. It is important to note that you do not have access to submit declarations at this stage.
Stage 3: Learn about CDS
Stage three is all about learning the new requirements in order to successfully submit a customs declaration on CDS. Most of this learning can be done through Volume 3 of HMRC’s CDS guidance. This will show you all the requirements for each Data Element that is now required to complete your entry.
Stage 4: Setting up Duty Payments on CDS
Once you have an understanding of completion, you can move on to stage four which is the finances.
The two main methods of payment for duties will be the deferment account and CDS Cash Account. Both are accessible via your Government Gateway CDS portal. For the deferment account, you will need to set up a second Direct Debit for CDS.
It is important that you do not cancel your first Direct Debit for CHIEF.
Stage 5: Moving over to CDS
Once this is all in hand it’s time to move on to stage 5, finding a provider. At this stage, you will need to communicate with your software provider to ensure they are ready for CDS. If they are CDS ready, they can give you access to the Trader Dress Rehearsal (TDR) which will allow you to complete test entries before moving into the live environment. If you are not completing the entries yourself then start a conversation with your Customs Agents to find out their readiness.
CDS is coming and it is important that you get ready now!
Speak to our friendly team of experts if you would like to learn more.