The UK Government has reiterated to British firms that up to 3,500 firms could face significant delays if they don’t switch over to the UK’s new Customs Declaration Service before it’s brought in.
The migration from the old system to CDS will not happen automatically, so firms should start making the change as soon as possible as the process may take some time. If businesses haven’t yet moved to the new system, they could risk not being able to bring their goods into the UK.
What are the major changes?
The Customs Declaration System which will replace the out-going system CHIEF (Customs Handling of Import and Export Freight) on 30th September 2022. In some ways the new system will require more information from traders compared to CHIEF.
Where there were previously boxes in CHIEF, Customs Declarations will now be split into ‘declaration categories’ and ‘data elements’. Some of these may require specific information that you might not be familiar with.
Whether you are handling clearances in-house or outsourcing this to an agent, it is recommended that importers setup clear written instructions for the clearance process of your goods. This will avoid delays and mis-declarations because of the changes that CDS has brought in.
Getting prepared
Preparing for these changes is the key to a smooth transition to using CDS. Properly understanding all the elements of a customs declaration. Traders will likely have to make several pro-active changes in order to adjust to the new system, but it isn’t as complicated as some reports are suggesting.
The introduction of CDS will be fully implemented for importers by 30th September 2022, although exporters won’t stop using CHIEF until 31st March 2023. After this point, CHIEF will fully close after more than 30 years service.
Using a customs agent
If you don’t already use a customs agent to make declarations on your behalf, you may want to start. A customs agent will be more up to speed with the CDS requirements for your business.
You will need to authorise a customs agent in CDS to allow them to make declarations for you. If you don’t do this your agent won’t be able to clear your goods for you upon arrival.
How will I know it’s right?
Getting your import and export declarations correct is important, it will save you time and money in the long run if you’ve got a well thought out plan and practiced scenarios.
Using HMRC’s Trade Dress Rehearsal Service allows you to test different real world situations in a simulation of the CDS. The simulator lets you submit real data and create accurate scenarios which involves your supply chain partners. Supreme Freight can assist you with learning how to make sense of these changes and help make the new system as accessible as possible for your business. Get in touch with us using our Contact Form or give us a call on +44 (0) 2380 337778.