If you weren’t already aware that there are some huge changes afoot in the world of international trade and freight forwarding on the technology side; here is a brief update on what is happening over the course of the next couple of months with regards to the phase out of CHIEF (Customs Handling of Import and Export Freight) and the implementation of CDS (the Customs Declaration Service) at the UK borders.
The final phase of a transition that has been years in the making and was focussed on Import freight during 2022 (the closure of CHIEF imports came into play at the end of September 2022 so that the requirement to file declarations using CDS extends to all Imports into the UK), is now being fulfilled and extended to Customs declarations on Export.
HMRC has announced that traders can begin submitting CDS Export declarations for goods that move through all routes, including inventory linked maritime locations, starting from 4th March 2024.
Traders will have 3 months to complete the switch to CDS so after Monday June 3rd 2024, users will no longer be able to submit customs declarations through CHIEF.
An important point to note is that the Customs Procedure Code (CPC) for export shipments (CHIEF CPC Code 1000001) is being replaced by CDS CPC 1040000. In other words when a shipment is cleared on CDS and not CHIEF you will see 1040000 on the SAD document rather than the old CPC number for CHIEF 1000001.
HMRC think that most businesses will be able to move to CDS by 30 March 2024, but are saying that they understand not all their customers can migrate before the deadline.
If businesses have not already done so, they should carry out the following steps to prepare:
Subscribe to CDS to submit export declarations. Declarants who have already subscribed for imports do not need to do so again.
Access the free Trader Dress Rehearsal Service (TDR) to practice submitting declarations in a safe test environment. (You should contact your software provider to ask if you can start using their software for TDR).
Hopefully the above will not come as a shock to most of you who are involved in exporting goods cross border from the UK, but if this comes as a surprise and you would like any more information regarding the switch, please don’t hesitate to contact us for a full briefing on how this might affect your business.