Preparing for the new customs declaration service: Chief becomes CDS

The Customs Declaration Service (CDS) will support the UK’s trade with the EU and the rest of the world. HMRC has announced that it will gradually reduce CHIEF services during the next 12 months, with functionality being switched off in two key phases:

• On 30 September 2022: the ability to make import declarations in CHIEF will end
• On 31 March 2023: the ability to make export declarations in CHIEF will end.

WHY IS CHIEF BEING PHASED OUT?

CHIEF is one of the world’s largest and most sophisticated electronic services for managing customs declaration processes. However, at 25 years old it cannot be easily adapted to new requirements.

HAS CDS BEEN INTRODUCED BECAUSE OF BREXIT?

The decision to replace CHIEF with CDS was made prior to the EU referendum. However, CDS is much better placed to handle the significant increases in declarations, that are now more likely to happen because of the UK’s exit from the EU.

HOW WILL THE CHANGE FROM CHIEF TO CDS AFFECT ME?

In preparation of this change, and to ensure continuity in your supply chain, Carousel has been working closely with HMRC, to test the CDS system and gain a better understanding of the different information required at each stage.

As the importer of record (IOR), there are two main differences that will affect you:

• Additional information and supplementary documents will be required for some commodity codes imported into the UK. More information on this is provided in the Tariff. You will need to review the commodity codes that you import and inform us of any additional documentation which is required to be declared.
• If you are using your own deferment account, you will need to set up a new direct debit mandate for use with CDS. This will replace the previous mandate for CHIEF so be mindful of timing for this. Importantly, once this change has been completed, Carousel will no longer be able to post duty (and VAT) to your deferment account from CHIEF and declarations will not be cleared.

WHAT IS CAROUSEL DOING TO HELP NAVIGATE THESE CHANGES?

Here’s how Carousel will help clients through these upcoming changes to customs procedures:

Phased migration of clients over to CDS

Over the next few months, we are planning a phased migration of clients over to CDS, with the aim of migrating all clients well before the deadline of 30 September 2022, when CHIEF will close for import declarations. We will be contacting all clients individually in due course.

Commodity codes list

You must identify the correct commodity code before you can start completing your import or export declaration. Carousel will provide an extensive list of commodity codes used in the last three months, and this will help with reviewing what supplementary documentation will be required for CDS.

It is also worth noting, that whilst HMRC is changing the system used to manage both imports and exports, there is no need to change the data format that you share with Carousel. Neither are there any changes to the operational timings (collection and handling) nor the tariff used to bill customs charges.

WHERE CAN I FIND MORE INFORMATION ABOUT THE CUSTOMS DECLARATION SERVICE?

Below are some links that you may find useful:

• Customs Declaration Service Toolkit – this provides a comprehensive overview of CDS, explaining the benefits traders will experience using the system, as well as key information about what businesses need to do, to prepare.
• Differences between CHIEF and CDS – this overview highlights the differences declarants need to be aware of when making submissions on CDS, compared to the legacy CHIEF platform.

Need help with your UK custom imports? Get in touch!

Our brokerage team is made up of experts from across our European operations and can work with you and your business to resolve any supply chain challenges that arise.

If you need some extra support or help, then come and talk to us, we are always happy to help. Simply contact us here to request a callback.

Information correct at the time of publishing.

In the ever-evolving landscape of aftermarket supply chain management, challenges are inevitable. However, the industry’s resilience lies in its ability to adapt and innovate. By embracing advanced technologies, fostering collaboration, and implementing responsive strategies, organisations can navigate the complexities of aftermarket logistics with confidence and increase their potential for significant growth. At Carousel Logistics, we go beyond providing Aftermarket logistics services. We are a value-driven partner committed to creating flexible, fully tailored solutions that boost efficiency and ensure your business continuity through a seamless flow of spare parts despite the challenges ahead.