Are you prepared for the switch to CDS?

From 30th November 2023, all UK customs declarations must be submitted through the new CDS (Customs Declaration Service) system, rather than the CHIEF (Customs Handling Import and Export Freight) system.

The CDS is the UK government’s new electronic system for handling customs declaration processes for exports and imports.

The CHIEF system will be withdrawn in two stages:

1.  Import declarations must be submitted through CDS after 30^th September 2022.
2. Export declarations must be submitted through CDS after the 31^st November 2023.

After these dates, the only way to declare goods to UK customs will be via CDS and this will apply to all importers and exporters who are involved with UK customs declarations.

For imports, the new CDS system will allow you to:

•  Download monthly duty deferment statements, showing the transactions and total amount of duty you have deferred each month. A duty deferment account allows you to pay customs and excise duties and import VAT monthly via direct debit, rather than paying for each individual consignment at the point of import.

•  Download PVA (Postponed VAT Accounting) statements, to declare and immediately recover import VAT in your regular VAT returns.

•  Give freight agents the authority to use your deferment account.

For exports, the new CDS system will allow you to:

•  Download or view declarations that have been made on your behalf.

To ensure your goods can continue to be imported and exported without delays, follow the below steps:

Step 1: Register for a Government Gateway Account. This is a central place where you can access HMRC’s digital services.

Step 2: Apply for an EORI (Economic Operator Registration & Identification) number. An EORI number is used to identify businesses during customs procedures when exchanging information with different customs administrations.

To get an EORI number, your business usually needs to have premises based in the country you want to import to, or export from. Your premises must be either:

•  A registered office
•  A central headquarters
•  A permanent business establishment

Step 3: Register for the new CDS system. To do this, you will need the following information:

•  GB EORI number
•  10-digit Unique Taxpayer Reference (UTR) number
•  Business address
•  National Insurance number (if you’re an individual or sole trader)
•  Date you started your business

Your EORI number and CDS accounts will be linked to your Government Gateway.

Step 4: Choose a payment method from the following options:

•  Duty deferment account – If you have a duty deferment account you will need to set up a new direct debit as CDS uses a separate HMRC bank account to the CHIEF system. If you plan to use our services, you will need to grant Stadium Export Services the authority to use your deferment account in the CDS finance dashboard.

•  Postponed VAT accounting – If you’re making declarations for yourself and your business is registered for VAT in the UK, find out when you should account for import VAT on your VAT return.

•  Cash account – This will replace the Flexible Accounting System (FAS). You will be automatically set up once you’ve set up a CDS account.

•  Immediate payment – By BACS, CHAPS, online or by telephone paid using a debit card, corporate credit card or cheque.

•  Individual guarantee – This can be used to cover one-off customs duties or high value imports.

•  General guarantee account – This allows you to provide multiple guarantees from the same account whilst continuing to import goods into the UK. You can also pay a disputed amount at a later date once agreed.

Step 5: The new CDS system will require you to provide more information than the previous CHIEF system about the commodity codes of the goods to be imported or exported. The Government’s Trade Tariff tool has been redesigned for use with the CDS system and allows you to look up the commodity code, duty and VAT rates for all classifications of goods.

Download our CDS switch checklist or contact a member of the team on +44 (0)191 204 3700 or sales@stadiumexport.co.uk if you would like more information about how how we can help with the customs process.