Moving to the Customs Declaration Service (CDS) From Chief 2022

1. 30 September 2022: the ability to make import declarations will end
2. 31 March 2023: the ability to make export declarations will end

UK GOV want our border IT systems to be fit for the future, creating an environment where businesses can thrive and take advantage of free trade agreements. CHIEF has served the UK well, but it is nearly 30 years old and cannot match the technology that the Customs Declaration Service offers. Founded on world-leading innovation, the Customs Declaration Service has been developed over several years in consultation with the border industry. It is a secure, flexible platform that is already performing well. It is currently used for both Northern Ireland declarations and Rest of World movements and has processed more than one million import declarations since August 2018.

It is fully compliant with Northern Ireland Protocol obligations and can handle all declaration types – ultimately, making it easier for businesses to trade and grow. It operates the full UK Trade Tariff, which CHIEF cannot do. These advantages make the Customs Declaration Service critical to the long-term flow of trade, with the flexibility to accommodate future improvements to imports and exports. Ultimately, moving to one system is more efficient than running two platforms. Operating one, single system will clarify processes for traders, free-up money for vital public services, and save money for the taxpayer.

The Customs Declaration Service (CDS) will serve as the UK’s single customs platform, with all businesses needing to declare goods through CDS after 31 March 2023. As a trader there are some key preparations that you will need to undertake to allow Warrant Group to continue to act as your customs broker and submit import and exports declarations through CDS.

The first steps in CDS Migration is to register your business using this link: Get access to the Customs Declaration Service

When registering for CDS it advisable to give administration rights to the person responsible in your organisation for logistics and shipping including import and export declarations.

HMRC financial transactions will also be managed through your Government Gateway Account and the CDS Portal. To enable Warrant Group to continue making declarations on your behalf your business will need to issue an authorisation through your CDS account. We will be unable to make a declaration on behalf of your business without our EORI GB100116496000 having been set up against your CDS account. You will need to authorise this via your CDS Account for Warrant Group to continue to use your deferment or cash accounts.

The Customs Declaration Service offers several new services, alongside existing services, all in one place. As your nominated customs broker the information you currently provide to Warrant Group to allow completion of declarations will change. The Customs Declaration Service captures information differently and this impacts how data is input into CDS.

One key area that is changing with the CDS system is how you will process your declaration payments to HMRC. How and when you’ll be affected depends on which of these payment methods you use.

You’ll be affected if you use:

• Duty Deferment Accounts
• Flexible Accounting System (FAS) accounts
• Immediate Payments
• Guarantee Accounts
• Individual Guarantees

The HMRC CDS Finance Guide outlines the payments methods that will be available to you after the migration to CDS.

If you have your own duty deferment account (DDA) you will need to complete a new direct debit instruction DDI. The reasons being:

• The CDS DDI is separate to the existing CHIEF DDI simply because CHIEF & CDS use 2 separate bank accounts (therefore the same DDI cannot be used)
• The same DDA will be used, and the same liability will not be taken twice

When declaring duty & vat in CDS using your DDA, a CDS DDI is required to enable payments to HMRC. This has no impact on any current CHIEF payments.

Once you have registered for CDS please complete a new CDS DDI provided in the link below.

Set up a Direct Debit for a duty deferment account on the Customs Declaration Service – GOV.UK

Warrant Group are in the process of migrating all import declarations from CHIEF to CDS and this will be completed before the deadline of 30th September 2022. CDS works on capturing data elements and the details required to make a CDS declaration are far greater than what is currently required in CHIEF. Additional information will be required for certain data elements within a CDS declaration, and this data can be different to that currently required by CHIEF.

The eight data element groups that will be required in CDS are as follows:

• Message information
• References
• Parties
• Value
• Shipping details
• Goods identification
• Transport information
• Other

As your nominated customs broker Warrant Group will update you during this migration process and advise of any additional information required to complete your import and export declarations on CDS.

Please find below a link to the newly published Customs Declaration Service communication pack.

The pack includes the CDS trader and declarant migration checklists with links to the appropriate GOV.UK information, which you may wish to use when communicating internally and with your suppliers.

Customs Declaration Service communication pack

The Trade Tariff also helps you find out which forms, codes, and procedures to use when importing or exporting goods. The Trade Tariff for customs declarations using the Customs Declaration Service is the UK Trade Tariff: Volume 3 for the Customs Declaration Service (now known as the ‘Declaration, Completion, Instructions and Rules’ document). You can also use the UK Trade Tariff tool to search for import and export commodity codes as well as the tax, duty and licenses that apply to your goods.