Avoid Delays, Disruptions and Compliance Issues When CDS Replaces CHIEF

The changes recently announced by HMRC that the Customs Declaration Service (CDS) will finally replace CHIEF in September 2022 for imports, and March 2023 for exports, will affect brokers and duty management software providers who will need to reconfigure their systems.  However, from an importers point of view, more information about how you trade will be available to HMRC which may flag potential compliance issues.   Failure to adequately prepare may also cause delays and disruption to your customs movements and the ability to recover VAT.

The Upcoming Requirements Within HMRC’s Customs Declaration Service

Under CDS:

1. • Your business will provide visibility of the importing and exporting parties, the relationship between them and the Incoterms of the transaction.
   • The importer’s legal standing regarding the import VAT reclaim. This is a high profile issue with HMRC, who have made it clear that only the owner of the goods may reclaim the import VAT.  Read more here.
   • Importers into the UK and exporters from the UK must be established in the UK, or have an agent acting as their indirect representative.
   • Your business will provide agents with clear instructions regarding the data elements that were previously not required.
   • Your business will be able to read and interpret the information on the CDS customs declaration to ensure continued compliance
   • Chemical companies must describe chemicals classified in Chapters 28 and 29 of the UK Trade Tariff using their precise chemical name and the appropriate 8-digit CUS reference number.
   • Changes regarding official proof of export for VAT zero-rating (to be announced).
   • Changes to how the MSS data is provided and presented (to be announced).