Hopefully not an April Fool’s Joke but without a Crystal Ball we will have to wait and see when HMRC activates the CHIEF 'off switch'. It is fair to surmise that CHIEF is close to the end of its lifespan, but the output of the older Customs Interface will remain in the trader’s records for some years to come.

If we consider the requirements of our record keeping responsibilities as six years plus the current year of trading, based on VAT Record Keeping requirements, HMRC has communicated that the final CHIEF C88 (or SAD or NES if you prefer) is expected in the spring of 2023. Based on “6 years plus” benchmark the UK International Trader will have retained CHIEF documentation on file by the time we approach the new decade.

We are losing some old friends when CHIEF is turned off. Primarily, we need to discuss LIC99!

In a CHIEF world if the goods declared to HMRC require a licence, the exporter must ensure that the approval is declared in Box 44 of the Customs Declaration.

It is true that not every product is licensable so the entity exporting or importing the goods must establish if a licence is required.

An example of products which are always licensable are Strategic Goods, specifically Military and Dual Use. It is a criminal offence not to declare an export licence for Strategic Goods. The exporter has the responsibility to obtain the licence in their name. The process to obtain the approval from the Export Control Joint Unit (ECJU) means an application or registration depending on the type of licence on SPIRE (Shared Primary Information Resource Environment) until it is subsequently replaced by LITE, which isn’t to my knowledge an acronym. It is not just CHIEF that is being replaced and updated.       

Under direct representation the exporter is solely responsible for the information declared to HMRC. The exporter must ensure that the instruction clearly states the appropriate licence number.

Alternatively, the exporter should confirm that “No Licence Required”. If this “positive statement” is not made the declarant is uncertain on the requirements for the declaration. LIC99 is a CHIEF Box 44 Code which is used “to declare that the goods aren’t subject to any licences other than those declared”   

When CHIEF is turned off, LIC99 will disappear too. When you begin to receive CDS entries please do not look for LIC99 in Box 44 as neither will exist.

CDS will mean Data Elements instead of Boxes or Fields and a different method to declare that the goods do not require a licence. The applicable Data Element for the licence details is DE 2/3 – Documents produced, certificates and authorisations.

There is a CDS waiver that could apply in certain instances, but this is only a short-term option until the end of September 2023.

Traders need to check the licence measures that are applicable to their goods. This requires accurate tariff classification. If the commodity code is incorrect the related measures may differ from the requirements of the correct tariff number. Many compliance requirements relate back obtaining the correct Commodity Code for the goods.   

The trader needs to confirm either that the measures are not applicable to the declared goods or that the measures are applicable and provide the licence for declaration to HMRC.     

Although CDS is the future for us all, we should not forget that when we look at CHIEF entries, the format is familiar to us now, but traders should still retain CHIEF knowledge to read and understand their declarations.

Abraham Lincoln said, “The best way to predict your future is to create it” CDS is for future international trade but our CHIEF past and LIC99 will remain for a few years to come. 

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Beginners Guide to Export Licensing Controls

Introduction to UK Export Licensing Controls

Focus On: Dual Use Export Compliance - The Dual-Use Exporter

Export Essentials: Focus on Exporting

Beginners Guide to Customs Procedures

Import Essentials: Focus on Importing