DORSET BUSINESS FOCUS / NEWS
International Trade Updates
HMRC calls on businesses to get ready to move to new customs declarations processing system from 30th September 2022 On the 24th March, HMRC announced that it was starting the process of communicating with all trade businesses on the forthcoming changes. The Customs Declaration Service (CDS) will become the UK single customs platform after 31 March 2023, replacing the Customs Handling Import and Export Freight (CHIEF) system. Ahead of the complete closure, the import declaration function will be withdrawn on 30 September this year. The CHIEF system will close in two phases: Phase one: After 30 September 2022 the ability to make import declarations will end Phase two: After 31 March 2023 the ability to make export declarations will end
Frontier Declarations and Immediate Payments will be settled using: • Deferment account • Cash account • Personal or corporate debit card or corporate credit card • General guarantee account • Individual guarantee More detailed information can be found on the UK Government’s CDS Finance Fact Sheet.
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HMRC is urging declarants to take advantage of help offered to start the migration to the Customs Declaration Service now – either by working with a software developer or Community System Provider, or by accessing the help themselves to get ready to move to the Customs Declaration Service which could take up to six months depending on the scale and complexity of the business. Dorset Chamber are making their customers aware of the forthcoming changes, as there is much for them to do – i.e. new guarantee for a single duty deferment account and authorising clearance agents to use it via the account holder’s government gateway account. Also, there is more data required to complete a customs declaration as per the below figures: CHIEF – up to 68 boxes required for an import CDS – up to 76 data elements for imports CHIEF – up to 45 boxes used for export CDS – up to 65 data elements for exports CDS requires a more extensive data set than CHIEF. While there are consistencies between several of the key CHIEF/CDS Code Lists, such as Documents, Licences and AI Statement Codes, there are also some which differ, e.g., Port codes. In addition, a number of new CDS code lists will be introduced. Payment processing The way declaration payments are processed will also change in CDS, and you will need to make changes to your current payment methods for the following: Duty Deferment Account holders will need to complete a new Direct Debit Instruction. However, you should not cancel your original Direct Debit Instruction. This will still be needed for deferred declarations made in CHIEF or other systems, i.e., ATWD, VAT 908. Flexible Accounting System (FAS) will not be available for CDS and is being replaced with a new cash account. You will automatically be issued a cash account when you register for CDS. more news online - www.dorsetchamber.co.uk/news
We are encouraging businesses to start making the move to the Customs Declaration Service now and to take advantage of the help that Dorset Chamber International Trade Team can offer. www.dorsetchamber.co.uk/international-trade 41
