Importers must sign up for a new system for submitting customs declarations by the end of September to continue trading internationally.

HM Revenue & Customs (HMRC) has announced that importers can no longer register with the Customs Handling of Import and Export Freight system (CHIEF) and must now use Customs Declaration Service (CDS) instead.

New importers are already having to abide by these new rules, but those that have previously registered with CHIEF will only be able to continue using the old system until 30 September.

From then on, all import declarations must implement the new CDS system. The move to the new CDS system has been described by HMRC as a “first step” in its development of a UK Single Trade Window portal.

What are the benefits for importers?

These changes form part of the 2025 Border Strategy and are designed to play an important role in the Government’s plans to digitalise remaining import controls on EU goods entering the UK by the end of 2023.

Registering for the CDS is a requirement of using the Postponed VAT Accounting system. The CDS will allow you to submit import and export declarations, obtain your postponed import VAT statements or import VAT certificates and pay Customs Duty and import VAT.

Unlike previous systems, all the data required for a goods movement can be submitted in one go via a single transaction, rather than completing multiple entries to different Government departments.

HMRC has said the new system is straightforward and will become the UK’s single customs platform allowing for all businesses to submit their customs documents digitally and safely.

Act now

HMRC has already been busy with multiple letters to businesses warning them of the 30 September deadline and has given notice of when CHIEF and the National Export System (NES) will stop receiving export declarations, which is 31 March 2023.

On 31 March 2023, the CHIEF export systems will be decommissioned, and all imports and exports will need to be declared using CDS.

It is, therefore, essential that importers register with the CDS as soon as they can and get used to this new customs system.

We are experts in international tax and trade matters, helping businesses in the UK and around the world to make the most of the opportunities that come their way.

If you would like assistance registering for the CDS or have any questions about the implications of this change, please contact us.