THE BUSINESS OF INTERNATIONAL TRADE
THE BUSINESS OF INTERNATIONAL TRADE
A statement from HMRC advises that more than 3,500 UK businesses risk significant delays to importing goods if they don't move to CDS, the UK's new customs system. HMRC claims that CDS will be a more user-friendly, streamlined system that offers greater functionality through reduced form-filling, better data use across government and a smoother experience for users. It is the first step towards the government's vision of a Single Trade Window, a centralised data portal for traders and intermediaries to submit data once to government.
The current Customs Handling Import and Export Freight (CHIEF) system closes for import declarations at the end of September and all businesses submitting import declarations must use the Customs Declaration Service (CDS) from 1 October 2022.
If you use a customs agent, you should ensure they are ready to use CDS. They must set themselves up to make their own declarations using appropriate software that works with the new system. If you do the declarations yourself, the same applies to you.
It can take several weeks to be fully set-up on the Customs Declaration Service, says HMRC, so those waiting to register risk being unable to import goods to the UK from 1 October. Julie Etheridge, Director of Programme and Operational Delivery for Borders and Trade at HMRC said: "Registering takes time so businesses should start moving to the Customs Declaration Service to ensure a smooth transition and avoid disruption to their business."
If you use a Duty Deferment Account, you will need to set up a new Direct Debit Instruction for CDS by 30 September. If this is not done in time, the Duty Deferment Account will no longer be usable, and individual immediate payments will need to be made each time an import declaration is made. There are help including a CDS toolkit and checklists of what to do on GOV.UK.
CHIEF closes for export declarations on 31 March 2023, so exporters will be required to use CDS to send goods out of the UK from 1 April 2023.
You can find a step-by-step guide, 'How To Prepare for CDS' in the June 2022 issue of The Exporter. Every issue has 'How To…' guide – with detailed information but written in plain English – on an important aspect of international trade. Get a subscription at www.the-exporter.com
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