HMRC Essentials

Moving goods between the rest of the world and Northern Ireland from 31 October 2021

The temporary contingency that allows the use of the Customs Handling of Import and Export Freight (CHIEF) system for rest of world (RoW) to Northern Ireland (NI) import movements will end on 31 October 2021.

Using the Trader Support Service if your business is not ready in time

If a business is unprepared to use CDS from this date, it will be possible to use the free of charge Trader Support Service (TSS) to make the necessary Full Frontier Declaration (FFD), until the business is prepared.

Explanation: Lodging a Full Frontier Declaration means all the required customs information is provided upfront before the goods are released from customs control.

A business will need to ensure familiarity with making an arrived FFD using the TSS. 

Details of how to complete an arrived FFD are available on the NICTA website.

HMRC strongly recommend that businesses commence using CDS for import declarations as soon as possible

Further detailed CDS guidance for using Preference, Authorised End Use, or Relief Arrangements at Import to NI from the RoW

If a business declares any of the following at import, CDS will require particular measures to be taken on making the declaration to ensure that the measures are implemented.

• Preference
• Valuation methods 2, 3, 4, 5 or 6
• Authorised-use relief arrangements

HMRC have issued a guidance document to assist. The document is published with this article on the S&H website

Customs Declaration Service – Links to the guidance on gov.uk

Guidance and resources are available on GOV.UK outlining the steps you need to take to get ready for CDS. 

Affected businesses are also advised to speak to their software developer or community system provider as soon as possible about how they can support migration to CDS.

Other considerations: Urgent

CDS has considerable differences in its requirements to enable the successful completion of an import declaration that were not required by CHIEF. 

It will be important for any UK business to become familiar with these changes.

Example:

Changes may be needed to a company’s financial processes such as the setting up a new CDS Direct Debit Instruction for a Duty Deferment account.

• The Direct Debit Instruction must be set up by the account holder. 
• If a business holds a standing authority for duty deferment accounts on behalf of other businesses, the account holder will need to complete the new Direct Debit Instruction.

Top Tip

Once registered for CDS, all accounting information can be viewed on the customs financial accounts dashboard.

The migration from CHIEF to CDS will take time and an amount of business preparation. 

What is vital for a business to understand is that CDS is very different from CHIEF in the data requirements needed to complete the customs declarations. 

If the declaration data is to be recorded accurately, the supporting business data must be gathered and appropriately captured in advance and saved on file to enable that accurate declaration. 

There will be a lot to do.

CDS Imports Go Live for the rest of the UK – September 2022

The Customs Declaration Service will commence replacing the CHIEF import function for the rest of the UK in September 2022 when CDS Imports goes live.

The importance of Training 

Understanding how to make compliant declarations will be essential for all UK businesses involved in international trade. 

Strong and Herd’s Bernard O’Connor and Emmanuel Gianquitto have been working with HMRC supporting the development stages of the CDS and are best placed to give accurate working-practice advice on how a business will need to prepare for and use CDS.   

Supporting you through this change our CDS Community Subscription including a priority response helpline, CDS Clinics, CDS Briefings, one-to-one sessions with our CDS specialist & CDS training.

Diary Dates:

30 September 2022: import declarations close on CHIEF

31 March 2023: export declarations close on CHIEF / National Exports System (NES)

HMRC Guidance

HMRC Contact data re Migration

If you have any questions about migrating to CDS, please contact us through our communication channels.

GOV.UK Update – 14 October: Claim a waiver for duty on goods that you bring to Northern Ireland from Great Britain or countries outside the UK and EU; - This guidance has been updated to explain that traders in National Cap sectors can now claim a waiver. There is also a new Customs Duty waivers form.