Understand the Customs Declaration Service
If your firm is registered with HMRC as an importer or exporter of goods, then you may have already been written to about the Customs Declaration Service (CDS). What will this new system mean for companies with overseas customers and suppliers and what do you need to do now? Read on to find out everything you need to know.
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What Is the Customs Declaration Service?
Replacing the old Customs Handling of Import and Export Freight (CHIEF) system, HMRC says the CDS is a more modern and secure IT platform for traders / freight agents to use to make their customs declarations. It is a single system that has been designed for use by both importers and exporters. The idea is that the new system will be able to cope with the expected growing demands of British-based companies.
The CDS system should provide British trading firms with a single service that will allow them to rapidly upload supporting paperwork, to make arrival notifications and to query any declaration status their consignment may currently have. In addition, CDS will provide a single location where traders and their customs clearance agents can receive notifications from customs officials.
Finally, CDS is designed to handle XML requests for the consolidation, movement or querying of consignments for the purposes of inventory linking. In short, it is a unified customs declaration and handling system.
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When Will the Customs Declaration Service Be Mandatory?
Although the introduction of CDS is likely to enhance the way HMRC handles notifications and declarations among exporters and importers, it will necessarily cause some hassle as British firms become accustomed to the new service. However, you cannot put off adopting the new system. CHIEF will be entirely phased out for import declarations by the end of September 2022. The same will go for export declarations by the end of the current financial year in March 2023.
What Do British Firms That Trade Overseas Need to Do?
According to HMRC, all trading companies with overseas suppliers or customers should begin transitioning away from CHIEF with immediate effect. They expect some teething troubles as firms become accustomed to the new service and want as many traders to learn how to use CDS as possible before the two aforementioned deadlines. Please follow the instructions on the GOV website to ensure your business is registered for CDS so that customs entries can be approved against your account. Link here:
https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service
What This Means For You?
At Barrington Freight, we have been preparing for the introduction of CDS for some time. Consequently, our customs clearance agents are fully prepared to manage declarations for imports and exports using the new system. We can still operate with CHIEF while it is possible to do so.
To summarise, you must register your business onto the new CDS system before September. If you do not, customs will refuse your cargo which could lead to unnecessary delays and charges. It should only take 5 minutes and once done, it is business as usual. Barrington Freight can continue to finalise your customs clearances in the new system, making sure your cargo travels without any issue.
