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It’s time to think about the big switch, says ASM

[ June 15, 2023   //   ]

Freight software firm Agency Sector Management urged forwarders to prepare for to switch export entries from HMRC’s existing Chief computer to the new CDS system towards the end of the year.

CDS (Customs Declaration Service) has been handling imports into the UK since October last year. The deadline for exports to switch over from the legacy CHIEF (Customs Handling of Import and Export Freight) will be on 30 November. This follows the extension to the timetable announced last December.

ASM programme manager Simon Adams told a session at the Multimodal show in Birmingham on 14 June that there would be a controlled migration to CDS exports. Currently only about 25 traders are using it and companies must first ask HMRC’s permission to use the new system but this can be expected to be stepped up in the coming months. It would be possible for companies to make export declarations on both CHIEF and CDS during the changeover period, he added.

A Trader Dress Rehearsal facility is available to help companies get to grips with the new requirements.

Adams added: “”We are already providing access to the CDS online training platform for more than 90% of our user base through our Sequoia Customs clearance software.

“Ultimately, all traders, agents, and freight forwarders involved in exporting and importing to and from the UK need to migrate to CDS.

“We are aware that there are many complexities to navigate when businesses make the switch to CDS, but it’s essential that forwarders seek advice and support to avoid facing non-compliance issues, which will cause delays and be costly.”

One benefit of CDS over Chief is that it could offer the possibility for traders to make direct declarations to CDS rather than via a community system provider; while this is also theoretically possible with CHIEF, in practice the system has never been robust enough to allow this to happen.

In an interview with FBJ, Adams said while there was little feedback from the small traders that had switched to CDS exports, migration to CDS imports in September was largely complete and had gone quite smoothly.

It was unclear whether the demanding timetable for migration to CDS exports by 30 November would be completely met but “we should be in a position where systems will still work,” he said.

Also planned for later in the year is the switch to Phase 5 of NCTS (New Computerised Transit System, though ‘new’ is rather a misnomer for a system now in its fifth iteration), which will be implemented from 16 November.

HMRC’s Lorna Taylor told the Multimodal gathering that while a Dress Rehearsal was not available for NCTS5, a Trader Test environment was being provide to allow software developers to test functionality.

Improvements available including the ability to amend a pre-lodged declaration – instead of cancelling it and starting a new one – as well as a facility for multi-house consignments.

A future version of NCTS might allow combined transit and safety and security declarations, and NCTS5 would pave the way for that to happen.

ASM’s Adams said that, with all these developments finally complete, the industry might finally be able to draw breath. ASAM would be able to take a closer look at the Government’s proposed Single Trade Window, which until now has been more of a concept than a practical proposition.

ASM might also have more time in which to develop new functionality, for example Safety & Security declarations which road operators will have to make in future (air and sea carriers already make these and will continue to do so). Future plans might also include an interface with port inventory systems.

It might also be advantageous to talk to the European Union about its plans for customs reform, including introduction of its own version of the Single Trade Window – though not until 2038, which was perhaps more realistic than the UK timetable, Adams suggested.

ASM had also taken on a lot of new customers following Brexit and had strengthened its team accordingly

Meanwhile, the latest version of ASM’s Sequoia software, v5.34, is now available and supports live, non-inventory linked CDS export declarations for goods which would normally move via a Ro-Ro port using Goods Vehicle Movement Service (GVMS).”

“Sequoia v5.34 can also automatically use both CDS and CHIEF data to complete NCTS declarations, allowing forwarders to migrate to CDS without disrupting their transit operations,” Adams concluded.

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