Businesses submitting import declarations themselves must use the Customs Declaration Service (CDS) from 1 October 2022, when the Customs Handling Import and Export Freight (CHIEF) system will close for import declarations.
From 31 March 2023 this will also be extended to cover export declarations.
Many businesses involved in importing goods to the UK are already using the Customs Declaration Service to access their postponed VAT accounting statements .HMRC, however, estimates that around 3,500 businesses are yet to move to CDS and risk being unable to import goods to the UK from 1 October if they do not act soon.
Whilst most businesses who import goods into the UK use a third party customs agent to handle their import declarations, it is still important that they consider the points below to avoid delays from 1 October 2022.
CDS and CHIEF – What are the main differences?
- Most customs declarations are submitted electronically to CHIEF. It was originally designed to accept paper forms, however CDS is designed to be completed digitally.
- CDS requires more accuracy, additional data requirements and increased use of codes instead of free text.
- Different data sets are required depending on the type of declaration.
- There will be additional methods to make payments of customs duties, including a new ‘cash account’ which allows you to deposit money and top it up to pay duty.
- CDS enables you to update customs agent permissions online.
How can you prepare?
- Sign up the CDS, if this has not been done already. You will need:
- your Government Gateway user ID and password
- your Economic Operator Registration and Identification (EORI) number that starts with GB
- Unique Taxpayer Reference (UTR) – find your UTR if you do not know it
- the address for your business that is held on HMRC’s records
- National Insurance number (if you’re an individual or sole trader)
- the date you started your business
- If you use your own duty deferment account, make sure a new direct debit for CDS is in place as soon as possible.
- If you use a customs agent to make your import declarations, you should contact them to make sure they are prepared for the changes and have all the necessary information from you that they and HMRC require.
- If you do not use a customs agent you must set yourself up to make your own declarations using software that works with the system.
Further information is available on GOV.UK, including a Customs Declaration Service toolkit and checklists, which break down the steps traders need to take.
Traders can also register or check they have access to the Customs Declaration Service on GOV.UK and access live customer support services for additional help.
With a career in VAT spanning over 20 years, Nicola advises businesses of all sizes; from start-ups to major international organisations.