The UK customs authority HMRC is closing its Customs Handling of Import and Export Freight (CHIEF) system on 30 September 2022. It is being replaced by the Customs Declaration Service (CDS) as the new UK’s single customs platform.
Why is the change being made?
After almost 30 years the HMRC CHIEF system is being replaced by CDS (Customs Declaration Service). The new CDS system will provide a more secure and stable platform and has the capacity and capability to grow in line with the UK’s trade plans.
When will the change take place?
The system replacement will take place in two stages. UK imports will switch from CHIEF to CDS at the end of September 2022 and UK exports at the end of March 2023. All importers and exporters who participate in customs declarations in the UK need to be ready for the change.
What do I need to do to be ready?
We are here to help you prepare for your migration. Please follow the steps below to ensure your goods can be imported or exported without interruption. It is our objective to support the move of all our customers over to the new CDS system by August 2022 so we are ready before CHIEF is switched off for imports.
Step 1: Register for a Government Gateway Account
Most business will already have a Government Gateway account to access their personal or business tax account. You should use this account to register for the CDS. If you do not have one, you register for a Government Gateway account here.
Step 2: Ensure You Have an EORI number
Most businesses moving goods in and out of the UK already have an EORI number. You will need this number to register for the CDS. If you don’t have one, you can apply for an EORI number here.
Step 3: Register for the Customs Declaration Service (CDS)
All importers and exporters must register for use of the new system on the government website. Use this link to register for the Customs Declaration Service which can take up to 5 working days. You’ll need your Government Gateway user ID and password as well as your GB EORI number.
What Happens About Paying VAT and Duty?
If PFE (or any other freight forwarding company you work with) are paying your VAT & Duty on your behalf and then invoicing this back to you, nothing will change to this method.
If you are accounting for VAT using postponed VAT accounting, you will need to access your postponed VAT statement via the Customs Declaration Service.
The other options for paying your VAT and Duty are listed below. You can view your balance and payments in the Customs Declaration Service Financial Dashboard, as well as grant and amend standing authorities for your payment accounts.
If you have your own Duty deferment account:
The Customs Declaration Service uses a separate HMRC bank account to CHIEF, so you’ll need to set up a new direct debit.
You will also need to re-authorise PFE (or any other freight forwarding company you work with) to use your deferment account. This is done in the Customs Declaration Service Finance Dashboard.
More information can be found on the HMRC website.
Should you require any further information, or need clarification of how any of the above may affect your business, please do not hesitate to get in touch, we would be happy to help.
Imports Team on 01376 533039.
Customs Team on 01376 533006