HMRC and industry experts are urging UK businesses to ensure they are using the correct IT system to complete customs declarations.
Exporters have until 4 June 2024 to be using the new Customs Declaration Service (CDS) in place of the old Customs Handling of Import and Export Freight (CHIEF) system.
From this date, businesses must submit declarations on CDS. CHIEF and HMRC will begin removing ‘badge permissions’ for businesses on the service.
Importers have been required to use CDS since last year and exporters have been being urged to start using the new system over the last year.
Businesses have been required to complete import and export declarations for goods trade with the EU since Brexit.
CHIEF concern
IOE&IT director general Marco Forgione says businesses need to ensure that they – or any third-party intermediaries they hire to complete declarations on their behalf – are using CDS by 4 June to ensure compliance with UK customs requirements and to avoid disruption to their trade.
“There is growing concern over the readiness of exporters for CDS as we get ever closer to the 4 June deadline, despite repeated warnings from HMRC to industry.
“Exporters should be mindful that, whether they hire an intermediary or complete declarations themselves, the legal responsibility for the correct completion and timely submission of customs declarations lies with them.
“It’s vital that businesses are supported to adapt to changes like the introduction of CDS, particularly as this is taking place against the backdrop of global supply chain disruption due to ongoing international conflicts, and shipping crises in the Red Sea and Panama Canal.
“IOE&IT continues to work with governments to ensure businesses are kept abreast of the various cross-border trade changes that are coming into effect, including the recent introduction of new sanitary and phytosanitary checks for imports and the upcoming deadline for CDS.”
‘Plenty of support available’
IOE&IT advisory services director Kevin Shakespeare notes that CDS adoption applies to all sectors and parts of the UK, and that there is plenty of support available from HMRC and organisations like the IOE&IT.
“While most of the customs and trade industry is ready for 4 June, there is still a meaningful number of declarants that are not yet using CDS.
“There is plenty of support available for those that are not yet using CDS. Declarants should ensure they use the free Trader Dress Rehearsal (TDR) service from HMRC to practice using CDS, and they can also benefit from training and helpline support from the IOE&IT.”
HMRC has, on several occasions, written to businesses to outline the support and guidance it is providing to exporters, including a declarant checklist for CDS exports and the TDR service which allows users to practice submitting CDS export declarations in a safe test environment. HMRC says that firms using the TDR service have proven more successful in submitting live declarations through CDS.
IOE&IT also offers a range of training courses and helpline services for its members and the wider trader community.
Limited exceptions
HMRC has said that it will only offer exceptions for businesses to continue using CHIEF after 4 June where there is an IT issue with CDS that cannot be resolved by that date.
Affected declarants will only be able to apply for a limited month-long exception.
HMRC will not offer exemptions to firms that cannot use CDS due to a lack of knowledge or understanding about the new system.
Businesses that do need to apply for an exemption are being asked to email chiefextension@hmrc.gov.uk. These declarants will be asked to provide the following information:
- Business’ name
- Contact details
- EORI number
- The IT issue with CDS
- Confirmation the business tried to use CDS and the reason this was unsuccessful – including any references or notifications from HRMC
- Any other relevant supporting information – including previous emails from HMRC relating to the HMRC IT issue blocking the declarant’s migration
Businesses can find further HMRC guidance and resources on gov.uk.