Customs Declaration Service is what is meant to be abbreviated as “CDS.” This is the brand-new customs declaration platform, and it is unified, up to date, and agile – so HMRC wants to make us believe. It went into effect in October 2022 across the UK.
In a nutshell, companies are able to submit declarations for both imports and exports using CDS. The old system, known as CHIEF, is now obsolete and cannot be used.
This shift from CDS to CHIEF represents the most significant change to customs operations and procedures in more than three decades! It has an effect on everyone who is required to submit a customs declaration in the United Kingdom, such as customs agents, freight forwarders, fast parcel operators, and buisnesses that perform self-filing.
So tell me, what is it like to make use of CDS?
It is possible to equate filing a customs declaration to filing a tax return; however, rather than doing it once a year, you are required to fill out the majority of the 91 CDS data elements each and every time you import or export goods, which can be a hassle from an organisational standpoint.
What’s the challenge with CDS?
The fact that the requirements for the data are different depending on the type of declaration you want to make and what you plan to do with the products after they enter or leave the United Kingdom presents a challenge. What’s difficult is that certain parts of the data must be provided, while others can be skipped entirely. To make matters even worse, some data elements change their requirement in the middle of finishing the CDS document.
A difficult start
The transition to CDS has not been without its share of challenges. Businesses have indicated that they are having difficulty adjusting to the new system, and as a result, some of them have been forced to postpone the deployment of the new system by one month in order to work out the kinks.
A remarkable achievement nonetheless
Let the inital problems of CDS not cloud the fact that since October 2022, however, thousands of businesses have made the shift to CDS without any problems and have been able to keep Brian’s commodities moving in and out of the country. Enterprises were forced to make a significant investment, both in terms of time and money, in order to modify this system. In the end, the HMRC, along with other software companies, business and training providers joined forces to implement this change. Because we now have such an advanced customs declaration system, we are well prepared for whatever the future may bring. With a modern customs filing system, CDS, UK busineses can now genuinely grow into truely global companies and sell our wares in every country!