Countdown To CDS: Are You Ready?
Customs declarations are changing. From 30th September 2022, importers are expected to start using the Customs Declaration Service (CDS) as part of their process. This will replace the UK’s Customs Handling of Import and Export Freight system (CHIEF), although due to onboarding difficulties the latter will remain live for the foreseeable future.
For exporters, the deadline is 31st March 2023. But after that, CHIEF will be switched off for good, all in accordance with the UK government’s 2025 border strategy.
Here, we explain what you’ll need to do to be ready…
What is CDS
CDS is an electronic customs system. It can handle more data than the CHIEF system and it requires less maintenance to run. The downside is that it also requires the user to input more information.
Where CHIEF only hosted 68 boxes for imports and 45 for exports, CDS requires a possible 76 and 65 respectively. Likewise, CHIEF only asked for header data that would contain addresses and similar information. Now CDS will need details on the following:
- Message information
- References
- Parties involved
- Valuation
- Dates, times, countries, regions
- Transport information
Who does it help
The platform was developed to create a single window for trade. Its design better equips CDS to accommodate future improvements and supports the government’s goal of building a world-leading digitised border.
This tech-edge also allows more opportunity for integration in other areas of the declaration process – potentially saving countless hours of duplicated data entry.
But perhaps most importantly, it allows for better analysis. There’s more information on CDS, it can be easily exported and HMRC will have greater oversight of goods coming into the country. From their perspective, this is a tool that makes it easier to check goods have the right licenses or identify mismatches of the declared value of goods.
How to prepare
If you submit customs declarations yourself, there are a handful of stages you’ll need to complete to be compliant. The first is probably something you’ve already done:
- Register for a Government Gateway Account
Most businesses we work with already have a Government Gateway account to access their tax accounts. This same platform can be used to gain access to the CDS system.
If you don’t have a government gateway account, you can register here.
2. Register for the Customs Declaration Service
Of course, to use CDS you’ll need to be registered. This can take up to 5 working days to complete, so register here if you have not done so already.
To complete registration you’ll need your Government Gateway User ID and password, as well as your:
- GB EORI number
- Unique Tax Reference (UTR) number
- Business address held on customs records
- National Insurance number (sole traders)
- Business start date
3. Check you are set up for payments of VAT & Duty
If you don’t have a customs deferment account and are paying your VAT & Duty through invoices from your broker, nothing will change.
If you have a customs deferment facility, CDS uses a different bank account to CHIEF, so you need to set up a brand-new direct debit. You can do this here.
You will also need to re-authorise your broker to use your deferment facility, which is now done within your new CDS Finance Dashboard.
Finally, if you’re accounting for VAT using Postponed VAT Accounting, then you’ll need to access your postponed VAT statement via CDS here.
4. Grant authority to Cardinal Global Logistics
For Cardinal customers, we can complete customs declarations on your behalf. All we require you to do is action the below where applicable for your business:
- Provide your Economic Operator Registration Identification (EORI) number
- Provide your deferment account number with authority granted
- Provide your CDS Cash Account number with authority granted
- Provide your Customs Guarantee Authorisation number
- Provide any other authorisation numbers you may hold
Not a Cardinal customer?
Don’t risk derailing your imports and exports. Our dedicated team of customs experts are available to answer your enquiries and discuss your next steps in more detail. All you need to do is contact customs.support@cardinalgl.com today.
