New approach for CDS export declarations announced by HMRC
A new timeline has been announced by the government for when businesses need to complete export declarations using the Customs Declaration Service (CDS).
CDS replaces the existing Customs Handling of Import and Export Freight (CHIEF) system. Exporters had been due to have moved to the new system by 31 October 2023. However, there has been some concern and anxiety over the speed of the change, even though it has been a requirement for businesses to use CDS for import declarations since the autumn of 2022.
But, “after listening to feedback from industry” HMRC has now adopted a “new phased approach” and made the decision to amend the original timelines for migration.
Now, under the new requirements, only some “selected high-volume declarants’ will be expected to move to CDS for exports by 30 November 2023. All other businesses will now have to move over to the new system by 30 March 2024.
The changes will mean that businesses who already have the necessary IT functionality in place can move across to CDS at broadly the expected time. Businesses in a position to migrate to CDS before the first deadline of 30 November will be contacted directly in September by HMRC or their software developer.
Meanwhile, the phased approach will afford more time for businesses to get ready for migration.
HMRC will also provide support, guidance, and a range of resources for all businesses regarding the transition to CDS. The aim being to make the move as smooth as possible for all declarants.
The changes to CDS implementation have been broadly welcomed within the industry. Director of Strategic Projects and International Development at the Institute of Export & International Trade (IOE&IT), Kevin Shakespeare, described the extension as “welcome and expected”. However, he added that there will be a continued need to provide businesses with support – especially lower-volume declarants who are less confident about their CDS-readiness.
To this end, IOE&IT are providing an extensive programme of training, webinars, and consultancy over the coming months. This will be available to all – high-volume declarants migrating to CDS by 30 November and lower-volume businesses preparing for spring 2024 migration.
IOE&IT is hosting a free webinar on 26 September.
In conclusion, the new timeline announced by HMRC will provide much needed and welcome breathing space. However, certain issues remain.
