Customs Declaration Service (CDS)… 01st October 2022 !

The government has scheduled the long-awaited closure of the Customs Handling of Import and Export Freight (CHIEF) system for imports from 1 October 2022 for import declarations and from 1 April 2023 for export declarations.

This will be replaced by the new Customs Declaration Service (CDS) for all declarations of shipments from and arriving into Great Britain.

Even if you have someone else to submit declarations on your behalf, all importers and exporters still require taking actions to prepare for import and export customs declarations via CDS.

You may already have access to CDS if you’ve previously registered for access to your Postponed VAT Account statements.

Why do I need to Prepare?

If you do not prepare in advance of 1st October 2022 then you will not be able to Import / Export any goods into and out of the United Kingdom.

Delays will lead into incurring additional costs such as quay rent, demurrage, cancelled deliveries and haulage wait times increasing your costs on movement of goods.

If the import or export cannot be completed in a reasonable time frame, then you may find your goods being seized at the border.

What will I need to do ?

To complete customs declarations for you on CDS, VIP Freight Limited requires:

• Your Economic Operator Registration Identification (EORI) number

• Your deferment account number (with authority granted)

• Your CDS Cash Account number (with authority granted)

• Your Customs Guarantee Authorisation number (if applicable)

• Any other customs authorisation numbers you may hold

Before you start you will need:

• A Government Gateway ID and password linked to your business or organisation

• Your EORI number that begins with GB

• Your Unique Taxpayer Reference (UTR) – this will be your Corporation Tax number, or Self-Assessment number for individuals

• The address of the business registered on your customs records at HMRC – this may be different to your Registered Business Address on Companies House

• National Insurance number (if registering as an individual)

• The date your business started – this should be the date that is held by HMRC

• Once you have these details you can begin applying for access to CDS.

Have you set up your Customs Declaration Service (CDS) account?

If not, please register for CDS as soon as you can at the following CDS registration page : Subscribe to the Customs Declaration Service - GOV.UK (www.gov.uk)

Do you have a Deferment account?

If you do, have you set up a new direct debit instructions ? This must be done from CDS dashboard or you will not be able to use your deferment account.

Have you set up a "Standing Authority"?

For VIP Freight Ltd or any other customs broker to use your Deferment account, you need to set up a "Standing Authority"

If you have previously authorised us via a C1207N form, this will no-longer be valid. It must be done through CDS dashboard and please enter our EORI number GB782842302000.

Failure to act on the above will cause delays to your shipments and potential storage charges.

Once you have completed your registration set up for CDS,

You will need to provide all of your references to VIP Freight Limited

This includes EORI, Cash Account number, Deferment Account number, Customs Guarantee reference numbers, and any reference numbers for authorisations you hold (such as CFSP or Special Procedures like Inward Processing/Outward Processing/Warehousing etc.)

For direct HMRC guidance videos on how to set up all of the above and more, please see the following videos:

• How to subscribe to the Customs Declaration Service : https://youtu.be/fgd9adImSw0

• How to use your customs financial accounts on the Customs Declaration Service : https://youtu.be/pIQUhtsDuc4

• How to set up a Direct Debit instruction on the Customs Declaration Service (one signature): https://youtu.be/PFLmZ1sm3nM

• How to set up a Direct Debit instruction on the Customs Declaration Service (multiple signatures): https://youtu.be/SzwXV920Oe4

• How to use the secure file upload service on the Customs Declaration Service: https://youtu.be/dllw5OVkkiE

• How to set up a standing authority on the Customs Declaration Service: https://youtu.be/Mfho9Fv2Mqk

• How to use your customs financial accounts on the Customs Declaration Service: https://youtu.be/pIQUhtsDuc4

Paying VAT and Duty

If VIP Freight are paying your Duty & VAT on your behalf and then invoicing this back to you, nothing will change to this method.

If you are accounting for VAT using Postponed VAT accounting, you will need to access your postponed VAT statement via the Customs Declaration Service.

The other options for paying your VAT and Duty are listed below. You can view your balance and payments in the Customs Declaration Service Financial Dashboard, as well as grant and amend standing authorities for your payment accounts.

Through the Customs Declaration Service Finance Dashboard, you can also choose:

• cash account – these replace the Flexible Accounting System (FAS), and you’ll be set up with one once you’ve registered for the Customs Declaration Service

• immediate payment by Bacs, CHAPS, online or by telephone banking – you can pay by debit, corporate credit card or cheque

• individual guarantee – you can use these to cover customs duties for one-off or high value imports

• general guarantee account – this allows you to provide multiple guarantees from the same account, and continue importing goods into the UK and pay a disputed amount later once agreed

In order for you and your business to remain compliant with HMRC regulations:

As per HMRC and for you to remain compliant with the Union Customs Code (Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (recast) (legislation.gov.uk)), and to enable us to submit import clearances on your behalf, it is your legal responsibility to inform us if any of the below apply to your shipments.

- A party relationship between seller and the buyer, and whether there is price influence or not

- Restrictions as to the disposal or use of the goods by the buyer in accordance with Article 70(3)(a) of the Union Customs Code

- Sale or price is subject to some condition or consideration in accordance with Article 70(3)(b) of the Union Customs Code

- The sale is subject to an arrangement under which part of the proceeds of any subsequent resale, disposal or use accrues directly or indirectly to the seller

Unless you advise us to the contrary, your import clearance will be submitted on the basis that none of the above apply.

If you need to inform us that any of the above do apply, please do so in writing to contact@vip-freight.com or your usual contact in our team.