The Customs Declarations Service (CDS) which declares all goods being imported and exported will fully replace the Customs Handling of Import and Export Freight (CHIEF) system from 31 March 2023. Transitions are expected to commence from 1 October 2022 and will affect any business who imports and exports goods to and from the UK.
In this blog post, we will discuss the new CDS and what businesses need to do to prepare for it.
What is the new Customs Declaration Service (CDS)?
A customs declaration is an official document that lists and gives details of goods that are being imported or exported. HMRC will be closing its Customs Handling of Import and Export Freight (CHIEF) system and replacing it with a new CDS electronic service that will allow businesses to make declarations using software provided by HMRC.
What do businesses need to do to prepare for CDS?
There are some key steps to ensure a smooth transition from CHIEF to CDS which includes registering on the Customs Declaration Service which you will need to do (as well as your import agent). It can take between 2 hours to 5 working days to be activated.
In summary, to prepare for the CDS, businesses need to take the following steps:
- Identify who will be responsible for making declarations on their behalf
- Ensure that they have the necessary IT infrastructure in place
- Train staff in how to use the CDS (if not handled by your freight forwarder)
- Register for the CDS
When can I stop using CHIEF?
Services on CHIEF will be withdrawn in two stages:
Phase one: After 30 September 2022 the ability to make import declarations on CHIEF will end.
Phase two: After 31 March 2023 the ability to make export declarations will end.
We strongly recommend any business who imports goods into the UK discuss the changes with their freight forwarder/customs agent to ensure they are ready for 1 October 2022.
What information do I need to register for the new CDS?
- your GB EORI number
- your 10-digit Unique Tax Reference (UTR) number – you can find this on any HMRC payment reminders, or in your personal tax account
- the address for your business that HMRC holds on their customs records
- your National Insurance number (if you’re an individual or sole trader)
- the date you started your business
Why is the service being changed?
The primary aim of the new CDS is to streamline the process of making custom declarations, making it simpler and more efficient for businesses. The CDS will also provide improved data quality, which will allow HMRC to target compliance activity more effectively. In addition, the CDS will enable businesses to make use of new technology, such as automated systems and data analytics, to further improve efficiency.
We have created a checklist to help our clients transition smoothly to the new system. Download it here, or contact us direct if you require help or assistance.