At Reanda, we pride ourselves on being at the forefront of international business trade. That’s why we think it is important you know all about the new UK Customs Declaration Service (CDS) coming into effect from August this year.
HM Revenue & Customs (HMRC) has recently published new information on the new system. We’ve listed some of the key points below. If you would like any more information, please get in touch.
What is the CDS?
The CDS is the new customs service replacing the current Customs Handling of Import and Export Freight (CHIEF) system. The CDS will be adapted to fit the modern trading environment, including making it more easily accessible online.
Why is the CDS important?
Aside from having to comply with the new system in order to export and import goods professionally, it is suggested that the CDS will be used primarily once the UK leaves the European Union.
How do the changes affect importers and exporters?
HMRC has listed some of the key changes businesses need to be aware of. You can find them below:
- CDS will be accessed on GOV.UK using a Government Gateway account – if traders use a customs declaration software package, they will need to follow the instructions and documentation from their supplier
- CDS will offer several new and existing services in one place – for example, traders will be able to view previous import and export data on pre-defined reports, check the tariff, apply for new authorisations and simplifications, and check their duty deferment statement
- online help will include self-service tools, guides and checklists
Further documents will also be required to comply with the new system under the World Customs Organisation Kyoto Convention. These include:
- an audit trail of previous document IDs
- additional party types, such as the buyer and seller
- possible additional commercial references or tracking numbers
- levelling – change between ‘Header’ and ‘Item’ for some data items
The Government said there will be further changes to align customs data with international standards, including:
- location of goods identification (based on UNLOCODE)
- the warehouse type code list
- item tax lines, including method of payment codes
- unit of quantity codes (ISO)
- the way customs procedures are quoted
- the number of items on a declaration – CDS will allow a maximum of 999 items on a customs declaration instead of the current 99 items on CHIEF
Need more help?
As the UK arm of global accounting network, Reanda International, Reanda UK serves a select client base of both home-grown businesses with international ambitions and multinational companies with operations or subsidiaries in the UK. To find out how we can help you achieve your business ambitions, please contact us.