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Customs Declaration Service (CDS) - Understanding the requirements

With HMRC closing their Customs Handling of Import and Export Freight (CHIEF) system on 31 March 2023. The Customs Declaration Service (CDS) is replacing it as the UK’s single customs platform.

HMRC will gradually reduce CHIEF services, with functionality switched-off in the following two phases:

  • From Friday 30 September 2022 – no longer able to make import declarations using CHIEF
  • From Friday 31 March 2023 – no longer able to make export declarations using CHIEF and the National Export System (NES)

 
All businesses will need to declare goods using CDS from these dates onwards. CHIEF will cease running, alongside many of the codes and data sets that have been in place for around 30 years.

Kuehne+Nagel have trained all team members who complete customs entries to ensure full readiness to process Imports into the UK on CDS from September 2022 and all Exports by March 2023.

It is vital that Importers and Exporters are aware of the latest changes, as varying actions need to be taken, depending on the type of transactions carried out. Please consider the following actions and information in light of these upcoming changes:

  • Review the Customs Declaration Service (CDS) toolkit
  • Gain access to CDS
  • Ensure a Deferment Account is registered for CDS
  • Review and understand the key changes to the Import and Export Tariff
  • If you have a Deferment Approval Number (which we are currently authorised to use on your behalf) it is most important that you register this on CDS (you will need to lodge a new bank guarantee) and on the Government Gateway that you authorise Kuehne+Nagel to use it.
  • Existing authorisations – Customs have advised that when a trader moves from CHIEF to CDS, their authorisation will be automatically migrated. Customers with Authorisations are advised to contact their HMRC controlling office for advice on usage of Authorisation codes in CDS.
  • Prohibitions and Restrictions – CDS requires that all Prohibitions & Restrictions (P&R) are directly addressed and declared on the entry. Currently CHIEF allows the use of code LIC99 as a declaration that no restrictions apply. This will not be the case with CDS, however, there will be a similar easement in place on a temporary basis (as advised by HMRC). 
  • You may be aware that the full launch of CDS and closure of CHIEF has been postponed a number of times over the last few years. However, with CDS being live and functional for all Imports into Northern Ireland since October 2021, it seems likely that the go-live dates will remain and we should prepare accordingly.

More information 

We have resources and guidance online to help you meet your customs obligations. For more information, you can: 

  1. How to set up a Direct Debit instruction on the CDS (one signature)
  2. How to set up a Direct Debit instruction on the CDS (multiple signatures)
  3. How to set up a standing authority on the CDS 

For further information on CDS here is an Overview from BIFA.

Here to help 

We know the introduction of new systems and rules can be challenging. We’re here to help you get used to the CDS.

If you have any questions, speak to your Account Manager or Custom Compliance Manager.

Please see this special pull-out and keep Guide on CDS.