Why Is Everyone Talking About The Customs Declaration Service (CDS)?
Over the past two years, the Customs Declaration Service (CDS) has been in development for the processing of imports and exports.
The original plan was for the replacement of the ageing Customs Handling of Import and Export Freight (CHIEF) system to be fully available and in use by the end of February 2019. This date has now passed and, as yet, only a handful of traders are submitting entries through the new system.
The implementation of CDS and the retirement of CHIEF are essential for a number of reasons:
It has been widely publicised that, in the event that the United Kingdom were to leave the European Union without a deal, it is possible that the number of import entries per year would increase from 55 million to 255 million. There are customs simplifications offered by HMRC that would reduce this number, but there would still be a significant increase in throughput.
With this in mind, there is serious concern that the current CHIEF system could not manage the sheer number of entries. This could lead to severe delays at ports and airports as the manual fall-back option would be unable to handle clearances and would focus on livestock, food, pharmaceuticals, fuel, and other perishables before general cargo.
A lot of the same information is still required in a
CDS entry as it is in a CHIEF entry, but there are a few key differences:
Along with the capacity benefits that CDS brings, traders will see new tools available:
A number of
customs entry software providers were asked to assist HMRC in testing the new CDS
platform. This meant that they needed to adapt their solutions to include the
new requirements. Once this work had been done, testing had to be done with
This testing had to be completed with an expert logistics provider to ensure that the extensive customs warehouse and compliance knowledge required was evident.
CML has been making live CDS declarations for warehouse removals since the beginning of April, making CML one of the first handful of companies to go ‘live’ on the new system. This experience will enable CML to assist its customers when the migration to CDS happens in full.
For more information on this, please refer to our recent press release, ‘CML Celebrates CDS Success.'