CDS has Arrived.... Next September the HMRC CHIEF import service will be switched off and the only means of declaring goods to Customs in the United Kingdom will be via the new Customs Declaration Service. The CHIEF export service will be switched off six months later at the end of March 2023.

HMRC has also published a list of software supplier that can be accessed here:
Software developers providing customs declaration software - GOV.UK (www.gov.uk)

CDS Declarations
CDS is based around eight groups of Data Elements. There are no "SAD Boxes" and each Data Element Group covers a particular aspect of the customs declaration.

In our CDS export and import training courses we use a traffic light system to indicate the level of complexity of a particular data element. This allows us to spend more time on the RED and AMBER data elements and less time on the GREEN ones. Here are the data element groups:

Don't be too disheartened by the considerable number of data elements. Many of them only apply to certain scenarios. In any event, we can guide you through this myriad of data fields on a CDS declaration and make life a lot easier for you.

CDS and CHIEF
There is no easy correlation between CHIEF SAD Boxes and CDS Data Elements so we aren't going to attempt to make any comparison. At S&H we are treating CDS as a completely new system and we are approaching it from that perspective. We have studiously avoided any comparisons to CHIEF in our training as we believe that it is both unhelpful and distracting to the learner.

CDS Paper Entries
CDS is electronic and it was never intended to produce paper documents. However, following consultation between the software developers and HMRC an entry format was agreed and, whichever software developer you use, the paper declaration should look the same. However, it is important to understand that these documents have no legal status and have been produced to assist the trade.

What to watch out for in CDS
Unlike the old CHIEF system, the new Customs Declaration Service is (our choice of words) "data-hungry". It requires a lot more thought on the part of the declarant and nothing can be assumed with CDS. Here's an example we use in our training that covers licence measures.

You cannot use LIC99 to say that your goods do not require a licence. You must check and understand the licence measure attached to your commodity code in the UK Trade Tariff and then take steps to either declare the licence (if you need one) or explain the reason why a licence isn’t required. Here's a clip from CDS software.

New to CDS
The Customs Declaration Service introduces new data elements that were not previously required on a CHIEF declaration.

Valuation Methods haven't changed but under Valuation Method 1, you must answer four questions about your import and how you arrived at the Customs Value.

These are the questions.

1. Is there a price influence as a result of a Party Relationship between the buyer and seller?
2. Has the buyer placed any restrictions as to the disposal or use of the goods?
3. Is the sale or price subject to some condition or consideration?
4. Is the sale subject to an arrangement under which part of the proceeds of any subsequent resale, disposal or use accrues directly or indirectly to the seller? 

Here's a slide on the subject from our training course.

Note that the questions cannot be answered by a Customs Broker without first obtaining the information from the importer.

Where do we go from here?
CDS is coming in next year for imports and S&H is preparing the way for existing and new clients.

CDS Training
We are increasing our public training and also our bespoke courses as we head towards the start of CDS next year. November sees the start of our increased support for CDS. Keep an eye on our website for further information.

CDS Helpline
To coincide with November's CDS training activities we are launching a CDS Helpline to run alongside our OneCall subscription service. This is a dedicated priority email service which you can use to send your CDS specific questions. Further information is available on our website.

CDS Clinics
To compliment both our training and our helpline service, we will be holding monthly CDS events where, for 45 minutes, our technical advisors will discuss one or two particular aspects of CDS and then, for a further 45 minutes, attendees will be invited to ask questions about the service and any issues they may have.

The CDS clinics can be booked on-line via our website.

CDS Publicity Material

HMRC has published four factsheets on CDS which you can download from gov.uk. the link is here:
Customs Declaration Service communication pack - GOV.UK (www.gov.uk)

CDS Regulations
Tariff Volume 3 for CDS
UK Trade Tariff: volume 3 for CDS - GOV.UK (www.gov.uk)
Contains the export and import completion rules and the data element codes

CDS Guidance
About The Customs Declaration Service
Customs Declaration Service - GOV.UK (www.gov.uk)
Contains various links to guidance regarding CDS

Register for CDS
Get access to the Customs Declaration Service - GOV.UK (www.gov.uk)
Provides details of to get access to CDS

CDS Service Availability and Issues
Customs Declaration Service: service availability and issues - GOV.UK (www.gov.uk)
We call this the "log-in" page because this is where you can sign in to:

• get access to the Customs Declaration Service
• get your import VAT and duty adjustment statements
• get your postponed import VAT statement
• get copies of your duty deferment statements
• get your import VAT certificates
• manage your email address

Useful links in relation to this months' Spotlight On....

CDS Clinics - Customs Procedure Codes
Join Partner Bernard O'Connor & CDS Specialist Emmanuel Gianquitto they lead our first CDS Clinic, they will be explaining the changes in CPC's with working examples to help you prepare for the changes ahead.

CDS Public Training Courses with Strong & Herd
 
CDS Exports: The Customs Declaration Service - Strong & Herd LLP
Our CDS export courses always take place on Mondays:
Monday 13 December 2021
Monday 17 January 2022
Monday 21 February 2022
 
CDS Imports: The Customs Declarations Service - Strong & Herd LLP
Our CDS import courses always take place on Fridays:
Friday 10 December 2021
Friday 14 January 2022

Trade Resources
Glossary of Terms
Industry Insights

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