CDS is the New Kid on the Block, but do not forget the Old CHIEF

BY:

Steve Berry
Aug 15, 2022

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The transition from CHIEF to CDS will be happen for trader over a varying period but it will be a few years before our records solely consist of CDS Declarations. 

As International Trade continues to evolve and change for UK Businesses a new hurdle is just around the corner in the form of the HMRC Customs Declaration Service or CDS if you prefer the acronym.


An international trader needs to be ready for their declarations being a CDS entry. The impact of this change will be the biggest adjustment for traders since Brexit which is still providing many of us with compliance challenges in this period of adjustment.   

I hope the arrival of CDS is not a complete surprise to you! Although we are all guilty of working in the here and now, focusing on daily priorities it is important to consider when your declarations will no longer be a CHIEF entry.


This will depend on the forwarder, carrier, or customs broker who you employ to submit your declarations based on the written instruction that is supplied by the UK exporter or import.


Import declarations will move over to CDS by 30th September 2022. This is the latest day which means it could happen earlier, or it could have already happened.


Exports are further away on the compliance horizon, the latest date is 31st March 2023, but it could be sooner.


Potentially this could mean that a trader has CHIEF and CDS entries to review and check over an extended period. CHIEF to CDS is not a like for like change. The format of the CDS entry is different to CHIEF version and the unique reference is an MRN (Movement Reference Number), the Entry Processing Unit with additional numbers and characters has not transferred to CDS.

When the declarant moves to CDS the new CHIEF entries will cease but Trade Compliance has always been about looking back (with an eye on the future). Checking customs declarations, obtaining proof of export, checking C79’s submitting IP reports are all retrospective actions. And, of course, customs when auditing could go back 3 years, 4 if IP and of course don’t forget export control audits either. Ultimately the lights will go out on CHIEF but your record keeping, and compliance responsibilities will continue with a combination of declarations on the old and new systems.


We will all need to adjust to CDS, with data elements instead of boxes. Understanding what additional information needs to be provided and where it is located on the declaration will be part of the learning curve.


With so much of the focus on CDS it will be strange to look back at a CHIEF declaration, which may happen in time but not immediately. CHIEF has been part of international trade for the UK for many years and the format of the document is something that we all recognise.  


The transition from CHIEF to CDS will be happen for trader over a varying period but it will be a few years before our records solely consist of CDS Declarations.


CDS is the New Kid on the Block, but do not forget the Old CHIEF! 


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