As mentioned in previous news, HMRC is replacing the existing Customs Handling of Imports and Export Freight (CHIEF) system with the Customs Declaration Service (CDS). This will become the UK’s single platform for Imports and Exports.
The Customs Declaration Service will be introduced in two sections as outlined below:
1st October 2022 – All UK Import Customs entries will need to be made on CDS.
1st April 2023 – All UK Export Customs entries will need to be submitted on CDS.
Why do you need to prepare for the switch over and how will it affect your supply chain?
As of the 1st of October 2022, all import customs entries must be completed on the new CDS system as CHIEF will no longer be available. Failure to be registered for the new CDS system will mean, that you will be unable to successfully import your goods.
All current clients of Westmond Logistics will be migrated to the new CDS system, as we have currently be using and developing the system with HMRC/CDS for over the last 2 years and already submit all imports into Northern Ireland via CDS.
What is the difference between CDS and CHEIF?
- The CDS service is accessed by the trader via the GOV.UK website using their Government Gateway account.
- CDS offers more information in relation to their imports and exports, for example users can access data from previous entries, check tariffs, approve authorizations, download VAT statements etc.
- Allows traders to have more control over their entries and ensure only authorised parties can use their information.
How to register for the new CDS system?
Most businesses will already be registered for a Government Gateway account in order to access their tax account, but if not you will need to setup an account as this will be required to access the Customs Declaration Service (CDS).
Traders will also require an EORI number, however most businesses who currently move goods in and out of the UK will already have one in place – Click here to apply for an EORI number
All traders will need to register for the CDS (Customs Declaration Service) – Click here to register for the new Customs Declaration Service
How will users pay for any import VAT and Duty on the new CDS system?
If Westmond Logistics are paying your VAT & Duty on your behalf and then invoicing this back to you, nothing will change to this method.
If you are accounting for VAT using postponed VAT accounting, you will need to access your postponed VAT statement via Customs Declaration Service.
If you have your own Duty deferment account
For traders who currently pay using a Duty deferment account, the CDS system uses a separate HMRC bank account to CHIEF and therefore trader will need to setup a new direct debit in order to use their deferment account.
Traders will also now be required to authorise parties to be able to use their deferment account and is granted via the Customs Declaration Service Finance Dashboard.
The CDS system also allows traders to pay via alternative methods, including;
- Cash Account– this replaces the current Flexible Accounting System (FAS) and can be topped up via the Finance Dashboard.
- Immediate payment by Bacs, CHAPS, online or by telephone banking – you can pay by debit, corporate credit card or cheque
- Individual guarantee – you can use these to cover customs duties for one-off or high value imports
- General guarantee account – this allows you to provide multiple guarantees from the same account and continue importing goods into the UK and pay a disputed amount later once agreed.
If you require any help or more information about the Customs Declaration Services, please don’t hesitate to contact a member of the team at firstname.lastname@example.org
Be prepared & switch today!