A group of trade bodies, along with HMRC, recommended exporters migrate to the Customs Declaration Service (CDS) “as quickly as possible” ahead of a firm 4 June deadline.
Speaking at a town hall webinar, hosted by the British International Freight Association (BIFA) yesterday (8 May), representatives from trade bodies such as the Association of Freight Software Suppliers (AFSS) and Association of International Courier & Express Services (AICES), told exporters that “time was running out” and to seek support to make the switch from the existing Customs Handling of Import and Export Freight (CHIEF) system.
Representing the Institute of Export & International Trade (IOE&IT), senior trade and customs specialist Anna Doherty told attendees:
“There are only four weeks left. Get on the Trader Dress Rehearsal (TDR) service as soon as possible, test your business specific scenarios to make sure you’re prepared for June.”
Migration
It’s hoped that the move to CDS will create a more streamlined, digital approach to customs declarations, ultimately enhancing efficiency.
CHIEF closed for importers on 30 November 2023, when the use of CDS for import declarations became mandatory.
The CDS-migration process for exporters has been delayed several times but went live on 4 March, creating a three-month window in which traders were able to start using the system ahead of the June cut-off.
HMRC were explicit in stating that after 4 June there will be limited exceptions to CDS-use, with lack of readiness stemming from staff training requirements or software issues not acceptable reasons for further extension.
The government has issued guidance to exporters, advising them to use the TDR and get in touch with their software provider to ensure they can use CDS.
‘Have conversations now’
IOE&IT’s Doherty sought to emphasise that traders may need to reach out to other partners for support, given that they may be obtaining export declarations in different ways.
She noted that some exporters would be self-declaring, meaning they already have a strong understanding of the processes involved in completing an export declaration, whereas others would be relying on third parties to handle declarations for them.
This could include freight forwarders offering an “all-in-one” service which takes care of customs administration and goods movements, a “standalone customs intermediary” only responsible for declarations or in the case of those using courier services, a Fast Parcel Operator.
Doherty said: “Regardless of which way you look to obtain your export declarations, you should migrate as soon as possible.”
“You need to start having conversations with people who support you in obtaining those declarations.”
Trade Dress Rehearsal
HMRC representatives reiterated their advice to traders to practice making declarations using TDR to be ready for 4 June.
The systems simulates the CDS environment, mimicking its UI and allows traders to try out a range of scenarios, including making amendments and cancelling declarations.
HMRC data says that practicing helps reduce traders in advance of the switchover, saying that several high-volume declarants saw their percentage rate of rejections fall from 60% to 25% after using TDR.
Make and Manage
Other support for traders includes a free of charge programme tailored for SMEs and low volume declarants: Make and manage an export declaration.
The service enables users to generate several declaration types, including standard export declaration, simplified declarations (for regular or occasional use), special procedures declaration and supplementary declarations.
The service can further streamline customs processes by linking consignments together under one Master Unique Consignment Reference (MUCR). In order to use the service, traders must already be registered to CDS.
Steve Bartlett, chairman of AFSS, which represents leading suppliers of software to the freight industry, reassured traders that software developers are “absolutely ready” for June.
Contact and support
Self-help guides are available for traders to troubleshoot any rejections they receive from TDR or CDS.
The HMRC customs and international trade helpline can also advise traders on any issues they’re experiencing. There’s also an online form to report ongoing problems.
IOE&IT also offers a support package for traders migrating to CDS, with training ranging from e-learning to an advanced day-long online session.