Importers have been told to start practising for the switch to the new Customs Declaration Service (CDS), which happens at the end of the month.
The advice comes after a recent poll found that many businesses have said they are still unprepared.
Old system to close
Importers have been advised to make use of the HMRC Trader Rehearsal Service, on which they can practise using the new system ahead of the switchover at the end of the month.
The CDS will replace the Customs Handling of Import and Export Freight (CHIEF) system which has been used for British customs entries for nearly 30 years.
CHIEF will close for imports on 30 September, at which point firms will need to use CDS to submit import declarations.
Code-based system
Exporters will be able to continue using CHIEF for export declarations until 31 March 2023.
The paper-based CHIEF system has many boxes that accept free text. However, CDS relies predominantly on codes and is more complex.
Straightforward process says HMRC
HMRC says it has written regularly to businesses to remind them to prepare for the switchover.
Carol Bristow, the department’s director general for borders and trade, said that it is “straightforward” for firms to register to the new platform.
Business concerns
However, a recent poll at an Export & International Trade (IOE&IT) seminar about the switchover, found around two fifths (39 per cent) of the delegates “very prepared” or “quite prepared” to start using CDS.
So, it’s important that accountants and their business clients become familiar with CDS as soon as possible.
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