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HMRC unveils phased approach to CDS export migration

[ August 23, 2023   //   ]

HM Revenue and Customs (HMRC) unveiled a new phased approach for moving export declarations to the Customs Declaration Service (CDS) on 23 August, in response to feedback from industry.

In a widely expected move, HMRC said that during the first phase, it and its software developers  would support selected high-volume declarants to move to CDS for exports by 30 November 2023.

In the second stage, all other businesses move to CDS for exports by 30 March 2024.

HMRC says the new approach will enable it and its delivery partners to build on the existing IT testing as well as undertake additional performance analysis while businesses start to migrate. It will also enable HMRC and their delivery partners to better support export declarants to make a smooth migration to CDS.

CDS is already being used for making import declarations when moving goods into the UK.

HMRC director of border change delivery, Sarah Hartley, said: “Having worked closely with our industry partners, we’re introducing a phased approach for moving export declarations to CDS. Those businesses who have the IT functionality in place are still able to move across to CDS by 30 November 2023, ahead of the majority who will now migrate at the beginning of 2024. Full guidance, resources and support will be available for all declarants to ensure the transition across to CDS is as smooth as possible for every business.”

Chairman of the Association of Freight Software Suppliers (AFSS), Steve Bartlett, added: “The AFSS and our members fully support the revised timescales for the transition of Export declarations from CHIEF to CDS. This moves away from the seasonal peak and also allows more focus to help customers migrate to NCTS5 in November. We thank HMRC for the continued collaboration and consultation with us, to ensure a successful completion of the CDS journey for everyone by the end of March 2024.”

BIFA’s director of member policy and compliance, Robert Windsor, commented: “We are looking forward to the final stage of the implementation of CDS and bringing export transitioning to its successful conclusion.”

In a statement, BIFA added: “CDS has been a long-time in the making, and there have been many changes in the implementation timetable. This revision to the deadline for businesses to move export declarations via the CDS system is quite short and any business  must continue to work towards transitioning from CHIEF to CDS, as a large proportion of BIFA  members are already doing.”

However, it added that the latest announcement provides clarity to the trade and shows that HMRC has been listening to the ongoing lobbying by BIFA, and others.

BIFA members now have clear time frames and should ensure that they have their own implementation plans, as well as test the system wherever possible, it added.

Chief executive of the Association of International Courier and Express Services (AICES), Amanda Francis, welcomed HMRC’s “pragmatic decision” to revise the timetable  and recognition that express operators need sufficient notice and time to ensure a smooth transition from CHIEF to CDS.

Declarants who are able to move to CDS by Thursday 30 November  will be contacted by HMRC or their software developer in September.

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