Following trade consultations the government has announced that exporters will now have until 30th November 2023 to move across to the Customs Declaration Service (CDS), which is eight months later than previously announced.
This means that the planned date of the 1st April 2023 to switch over to CDS for exports now no longer applies and traders will have until 30th November 2023 to continue to use the CHIEF system for export declarations, after which it will close.
This will allow more time for exporters to register for CDS and ensure that it can be delivered seamlessly. HMRC seem to have taken a more pragmatic approach following registration delays after the introduction of CDS Imports.
The deadline for importers to enrol in the CDS was extended by a month in October, but the British Chambers of Commerce (BCC) has said there was no clarity from HMRC about what will happen next.
HMRC data showed that more than a quarter of businesses had not signed up to CDS and with no indication on what happens next thousands of businesses could potentially find themselves cut adrift and unable to import.
The data provided to MPs by HMRC showed that more than 4,700 businesses had made import declarations on the new system, but 1,287 had yet to sign up to it and the issue may go much deeper than the headline figure of 1,287 businesses, as many of these firms will be brokers for hundreds of others.
CDS has been in development since before the UK voted to leave the EU in 2016 and was originally intended to launch before Britain left the EU, replacing the ageing Customs Handling of Import and Export Freight (Chief), but it was delayed because the system was not ready and is slowly being rolled out for importers and exporters, having being running since 2018.
The BCC said HMRC should do more to spur companies to sign up, pointing out that delays were unfair to those that had already invested in switching over.
HMRC said: “The majority of frequent traders have now migrated to CDS, with 91% of import declarations now being made on the system. “Through our extension process we have provided extra time for those who had a good reason why they couldn’t migrate to CDS. We continue to work with declarants to support them moving across and ensure there is no disruption to trade.”
It is critical to note that CDS that requires far more data and specific information than CHIEF and may involve changes to commercial documentation.
If you have not registered for CDS, or are uncertain how it applies to you, we can guide you through the changes and actions required. EMAIL Chloe Henshall for further information, or to discuss your situation.
