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June 27, 2021, admin

Transitioning to HMRC’s New Customs Platform: Customs Declaration Service (CDS) | A Quick Guide for Traders

The Customs Declaration Service (CDS) is the government’s new customs platform. It is brought in to replace CHIEF as the main UK import and export system, but (unlike CHIEF) it has been designed to be able to keep pace with ever-evolving requirements, changes in regulations, and technology enhancements. CDS enables UK companies to submit import and export declarations. It is built on modern architecture and hosted on a cloud infrastructure. HMRC launched the Customs Declaration Service on August 21, 2018. It’s currently running alongside the existing system, and HRMC plans to do a complete transition to the new system by the end of this year.

Benefits of CDS to traders:

The Customs Declaration Service (CDS) will enhance the overall trading experience for the traders. Following are some of the major ways it will be beneficial to the traders: 

  • CDS is designed to meet new EU customs requirements as set out in the Union Customs Code.
  • CDS will ensure that traders are in full regulatory compliance when they’re importing and exporting.
  • Once the traders submit their declarations via CDS, they will be able to access that data for free in the future. As Customs users, traders will no longer be charged to download declarations data.
  • CDS will support anticipated future trade growth by handling increases in customs declarations and withstand the evolving regulatory requirements.
  • HMRC will enable Customs Declaration Service (CDS) to offer several specialist functions and interfaces so that traders can use the system in ways that are meaningful and efficient for their business.

Key changes and enhancements in CDS:

Following are some of the key changes and enhancements being rolled out in the new Customs Declaration Service (CDS). 

  • CDS will accommodate the changes to the Import and Export Tariff, required by the Union Customs Code (UCC)
  • New or different data now needs to be included with the declaration. There are a number of changes that need to be made, and some of the data that was previously collected may no longer be necessary.
  • Some product types might need additional codes for regulatory compliance.
  • The new system has group the data submission in the following eight major categories:

Message Information

Reference

People

Value

Shipping Details

Goods Identification

Transportation Information

Others

  • How traders process payments will change with CDS. If the traders use one of the payment methods listed below, they will be affected by the transition to CDS:

Duty Deferment Accounts

FAS accounts

Immediate Payments

Guarantee Accounts

Individual Guarantees

Preparing for transitioning to CDS: What do businesses need to do? 

Following are some of the key elements for the businesses to prepare for the transition appropriately:

  1. Get an EORI number: Make sure you have an Economic Operator Registration and Identification (EORI) number. If you don’t have an EORI number, you’ll need to register one before moving to CDS. Follow the steps here to get an EORI number.
  2. Get access to the Customs Declaration Service: To submit your declarations, you will need access to the CDS. You will need a Government Gateway user ID and password. You can follow the instructions here to get a Government Gateway ID.
  3. Engaging the right partner to submit your declarations: You can ask an intermediary or an authorized software provider to complete and submit your declarations. Customs-Declarations is a UK-based software company that helps importers and exporters manage their customs declarations via an intuitive and integrated online platform. The Customs-Declarations platform has been designed and developed in close coordination and support from HMRC. You can get in touch here with the support team to learn more about the solution.
  4. Be a part of Trader Dress Rehearsal: The TDR service is an optional test platform designed to help businesses prepare for the live Customs Declaration Service (CDS). If you have engaged an authorized software, you can trial submitting the declarations in a simulated, production-like environment before using the live service. Using this service does not impact your financials and your license.
  5. Familiarisation with the new Trade Tariff: Before you start using the new service you need to familiarise yourself with the changes which have already been made to the Import and Export Tariff Tool available via GOV.UK. You can access the new trade tariff here.

Note: The information contained in this article is correct as of the date of publication.