Wallis Shipping is urging all customers who are UK importers to register with HMRC’s Customs Declarations Service (CDS) before the 1st October, to avoid delays in shipments.
HMRC’s new CDS initiative has been established to manage all import and export declarations when moving goods into and out of the UK. VAT-registered traders can make declarations as soon as they have signed up to use the Customs Declaration Service. Wallis will continue to undertake the customs entries on behalf of our clients but our clients must also have a CDS account.
Jenna Morgan, Commercial Director of Wallis Shipping said: “This is an important change for the transport and logistics sector. We are trying to make as many of our UK import customers aware as possible before the changeover date of the 1st October 2022.
“One of the main points for our customers that import into the UK is that if you have your own duty deferment account with HMRC you will need to set up a new direct debit with HMRC as CDS uses a different bank account.”
The CDS has existed since 2018 but should now be used for making import declarations when moving goods into the UK. The service is replacing CHIEF entirely, providing businesses with a more user-friendly, streamlined system with greater functionality.
The new IT system marks the first step towards the government’s vision of a Single Trade Window, which will have considerable benefits for businesses through reduced form-filling, better data use across government and a smoother experience for users.
How to get started:
- Set up an account on the Government Gateway. You will no-doubt already have one of these to manage your personal and business tax accounts, but this is how you will manage your declarations through the CDS going forward.
- Ensure you have a valid EORI number. Again, if you are already importing and exporting goods from the UK, you may have one, but this is a vital part of using the new CDS.
- Complete your CDS registration. For this, you will need your Government Gateway login info as well as your EORI number, UTR, business address and the date of the start of your business. You may also need your National Insurance number if you are a sole trader.
- If you are using the postponed VAT system, you will need to access your statement using the CDS. You will be able to view your balance and payments, and grant standing authorities for your payment accounts, in the CDS dashboard.
- You will need to set up a new direct debit if you have your own duty deferment account with HMRC, as the CDS uses a different bank account to CHIEF. You will still need to authorise us to use your DDA and provide us with your guarantee number to include on the import customs entry. You can also pay by:
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- cash account – these replace the Flexible Accounting System (FAS), and you’ll be set up with one once you’ve registered for the Customs Declaration Service
- immediate payment by BACS, CHAPS, online or by telephone banking – you can pay by debit, corporate credit card or cheque
- individual guarantee – you can use these to cover customs duties for one-off or high value imports
- general guarantee account – this allows you to provide multiple guarantees from the same account, and continue importing goods into the UK and pay a disputed amount later once agreed
Timescales:
- On the 5 July 2022 HMRC closed importer registrations to CHIEF, so any business new to importing will now have to register with CDS to make their import declarations
- From the 30 September 2022, current importers will no longer be able to make Import declarations using CHIEF
- From the 31 March 2023, current exporters will no longer be able to make Export declarations using CHIEF and the National Export System (NES)
Additional resources
- The Institute of Export & International Trade (IOE&IT) is running a free webinar at 2pm on Tuesday 23 August covering what traders can do to prepare for the switchover. It will include the phased withdrawal of CHIEF, key steps you need to take to get ready for CDS (whether you’re self-filing or a broker acting on behalf of a trader as somebody who makes declarations), key differences between CHIEF and CDS, and information needed to submit declarations on CDS.
- HMRC’s press release https://www.gov.uk/government/news/220000-businesses-urged-to-move-onto-new-single-customs-platform