What is CDS?
Customs Declaration Service (CDS) is the newest electronic system for managing the customs process when importing and exporting goods in the UK. It is replacing the current system CHIEF (Customs Handling of Import and Export Freight) which has been the industry standard for 25 years.
Why Is The System Changing After 25 Years?
Exactly that reason, it has been 25 years! CHIEF has been the industry standard for a long time, but this means that it is not easy to adapt, and newer requirements have meant that HMRC have decided to make the transition to CDS. This will mean that the expected surge in customs declarations following Brexit will be a lot easier to manage than it would have been with CHIEF.
Who Will The Transition to CDS Affect and How?
The move over to CDS will affect all freight forwarders, agents, customs brokers and traders that deal with importing and exporting goods outside of the EU.
All those who use CHIEF will know that it is used for calculating and paying duty taxes, processing declarations for goods entering and exiting the UK/EU, and completing customs information. CDS will still hold these responsibilities but will be able to offer more abilities to its users.
CDS will allow users to:
- View reports showing data of imports and exports history
- Apply for procedures and authorisations
- Check deferment statements
- Analyse tariffs
It is worth noting that the ability to use CHIEF in regards to Imports will end on 30th September 2022, and the option to use CHIEF in regards to Exports will end on 31st March 2023.
What Are Customs Declarations?
A customs declaration is an official document that lists and gives details of goods that are being imported or exported. In order to make a customs declaration you need to create a deferment account.
A duty deferment account lets the importer (or someone who represents them) make one payment a month through Direct Debit instead of paying for individual consignments.
What Is a Customer’s Deferment?
Using a third party deferment
Deferment accounts are used for your customs clearances, you can use your own deferment account, or you will need to authorise your third party account to use their “cash account”. The cash account will be replacing the FAS system we currently use. Also, you can sign up for Postponed VAT accounting this will need to be paid via your cash account as a third party are not able to put any VAT on their own deferment going forward – only duty. You will be able to top up your cash account directly on your Government Gateway if this ever needs to be done.
3 Steps to Add an Authorisation to Your Account
1) Once logged into your customs declaration account, you will need to select the link “manage your account authorities”.
2) “Add an authority”. It will then ask for the EORI number of the company you want to give authority to - you will then either choose “deferment” (if you have one), or “cash account” or you can choose both if you have a deferment but sometimes pay FAS if you run out of money on the deferment before the end of the month.
If you have a deferment account you will need a Customs Comprehensive Guarantee (CCG) number, which is required on all declarations when using a deferment account. A CCG number will also be required if you wish to utilise Special Authorisations and Procedures, such as Customs Freight Simplified Procedures (CFSP), and inward processing relief.
3)Then choose the start date of the authority as the same date you are filling it out and then add your details as appropriate.
If you still need to sign up to CDS, please follow the below link.
https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service
If you require any assistance, please contact us to speak to our experts