HM Revenue and Customs launched the Customs Declaration Service (CDS) for exporters in 2023, aiming to modernise the declaration process for goods being sent out of the UK, as a precursor to the government’s long term goal of creating a single trade window. The old system, Customs Handling of Import and Export Freight (CHIEF) closed for good in 2024.
What’s new about CDS?
The UK government wants a fully digitised border that can boost trade and competitiveness, while reducing costs for the taxpayer. CHIEF was designed around traditional paper processes whereas CDS is designed for electronic communication and automation. It uses Union Customs Codes and data processing rules that are in line with the EU’s customs requirements, meaning that CDS procedure codes and data elements are different from those of CHIEF.
Direct communication with HMRC
For exporters with accurate machine-readable data and modern CTRM software, CDS has made filing customs declarations online more efficient and accurate. CDS has only 200 error codes compared to CHIEF’s 4,000. Reduced dependence on consultants, brokers and agents presents an additional potential saving for exporters of waste paper, waste plastic and metal recyclables for example.
Digitalise your back office
Moving to a modern digital back office has many advantages for exporters beyond communicating with HMRC. With all of your data in one place, you can start automating documentation, managing your photos better, generating accurate reports and exchanging data in real time with partners such as shipping lines and freight forwarders.
You’ll also be prepared for a digital future that is set to include electronic bills of lading and other innovations that the recently-passed UK Electronic Trade Documents Act is ushering in. The CDS is just one element of a wider digital transition that is gathering momentum across international trade.
