Comprehensive Guide to the New Customs Declaration Service (CDS)
Navigating the CDS Tariff, UCC alignment, strategic facilitations for UK business, and essential information on the Customs Declaration Service. Learn about data elements, tariff publications, and key changes under CDS for a comprehensive understanding of the trade environment.
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The New Customs Declaration Service (CDS) Navigating the CDS Tariff Caroline Wilkins HMRC
Overview UCC Alignment CDS Functionality & Making Tax digital CDS Tariff & Tariff Navigation Terminology & other Key changes Additional Information required under CDS
Strategic Alignment UCC alignment gives the trade facilitations that UK business wanted Customs end users can take full advantage of Making Tax Digital and Business Tax Account developments to improve customer experience Creation of component based architecture will allow UK systems to be more flexible and efficient
Customs Declaration Service A Comprehensive Trade Environment Apply for an EORI number File Customs Declarations, up Log on through Gov.uk Obtain Real time information and reports at no cost View Duty Deferment Accounts Apply for Authorisations and Simplifications Upload Documents electronically Integrated with other Government Systems Up to 999 items allowed per declaration
CDS Tariff Publication Volume 3 Inventory Release Imports & Exports Volume 3 Exports Volume 3 Imports
Data Elements C88/SAD Box numbers will be replaced by Data Elements UCC makes provision for 157 Data Elements More information will be required under CDS than CHIEF The Data Elements are split into 8 Data Groups.
8 Data Groups Group Description Data Element example Message information (including procedure codes) 1/10 (Box 37) CPC Group 1 References of messages, documents, certificates, authorisations 2/3 (Box 44) Documents Produced Group 2 Parties 3/15 (Box 8) Importer details Group 3 Valuation information/Taxes 4/10 (Box 22) Invoice Currency Group 4 Dates/Times/Periods/Places/ Countries/Regions 5/8 (Box17a) Country of Destination Code Group 5 Goods identification 6/8 (Box31) Description of goods 7/2 (Box 19) Container Group 6 Transport information (modes, means and equipment) Group 7 Other data elements (statistical data, guarantees, tariff related data 8/1 (Box 39) Quota number Group 8
Declaration Categories Declaration Category Declaration Title Requested Procedure Codes(CPC s) (Digits 1 and 2) 01, 07, 40, 42, 44, 61 Declaration for release for free circulation or end-use H1 Declaration for customs warehousing 71 H2 Declaration for temporary admission 53 H3 Declaration for inward processing 51 H4 Declaration for goods from the special fiscal territories 40, 42, 61 H5 Import Simplified Declaration 01, 07, 40, 42, 44, 51, 53, 61, 71 I1 Inventory Release C21
Types of Declaration Code D.E 1/2 (Box 1) Goods Arrived or not Type of declaration A Standard customs declaration Goods arrived B Simplified declaration on occasional basis Goods arrived C Simplified declaration with regular use Goods arrived Goods not arrived Goods not arrived Goods not arrived Goods arrived Goods not arrived Goods arrived D Standard customs declaration E Simplified declaration on occasional basis F Simplified declaration with regular use J C21 K C21 Y Supplementary declaration covered by types C and F Z Supplementary declarations for Entry in Declarants Records Goods arrived
Appendix 21a Declaration Category Data Sets H1 SAD D.E No. Data Element (D.E) name Symbol Note Box No. 1 2 1/1 1/2 1/3 1/4 1/5 1/6 1/7 1/8 Declaration type Additional Declaration type Transit Declaration/Proof of customs status type Forms Loading lists Goods item number Specific circumstance indicator Signature/Authentication A A Y Y Symbol 32 Symbols in the cells - Symbol description A X Mandatory: data required by every Member State or data for which the UK has opted to mandate as always required Optional for economic operators: data that economic operators may decide to supply Dependant on Customs declaration scenario e.g. Procedure Code, Method of Payment etc. Data element required at the item level of the declaration of goods. The information entered at the item level of goods is valid only for the items of goods concerned Data element required at the header level of the declaration of goods. The information entered at the header level is valid for all declared items of goods 1/9 Total number of items 1/10 Procedure 1/11 Additional Procedure 2/1 Simplified declaration/Previous documents 2/2 Additional information 2/3 Documents produced, certificates and authorisations, additional references. 2/4 Reference number/UCR 2/5 LRN A C D X D Y Only mandatory for a paper declaration 54 Y A A A A D D Y X X X, Y X X 5 37 37 40 44 44 [7] [7] C A X, Y Y 44 N/A
Commodity Codes Data Data Element 6/14 Element 6/15
Commodity Codes Data Element 6/16 Data Element 6/17 TARIC Additional Code e.g. Anti Dumping Duty, Common Agricultural Policy National Additional Code. e.g. VATE = VAT Exempt duty rate
CPC Changes 3 Digit Additional Procedure Code Data Element 1/11 4 Digit Procedure Code Data Element 1/10 Digits 1 and 2 The requested procedure e.g. free circulation, 40 (first and second digit of the old CPC) Characters/Digits 5-7of old CPC Additional procedure code up to 99 Additional Procedure Codes per item C07 Claiming Low Value good Duty relief Digits 3 and 4 The previous procedure e.g. the procedure they are coming out of i.e. customs warehousing 71 (the 3rdand 4thdigits of the old CPC) 40 71 Ex- Warehouse F45 VAT Relief
Navigating CDS Volume 3 Import Declaration Completion Guide Appendix 21 UK Trade Tariff Volume 2 UK Trade Tariff Volume 3 Import Declaration completion Guide Appendix 1: D.E. 1/10 Appendix 2: D.E. 1/11 Appendix 4: D.E 2/2 Appendix 5: D.E 2/3 Appendices List
Import Declaration Completion Guide No. of occurrences at header level 1x No. of occurrences at item level 99x Declaration Categories Field format C21, H1, H2, H3, H4, H5 & I1 a2 Which types of declaration require the completion of the data element Declaration Categories The number and type of characters allowed in the field Field format The number of times the data element may be used at header level Number of occurrences at header level Number of occurrences at item level The number of times the data element may be used at item level
CDS redefines commercial relationships & additional information is required D.E Group 3 People Consignor/ Exporter (SAD BOX 2) Importer/ Consignee (SAD BOX 8) Declarant (SAD BOX 14)
Box 2: Consignor/Exporter Data Element D.E Description Key Updates 3/1 Exporter DE 3/1 is used to declare the Exporter s name and address and postcode. Enter the full name and address of the last seller of the goods prior to their importation into the Union Where held, enter the EORI number of the last seller of the goods prior to their importation into the Union 3/2 Exporter Identification Number Where a valid EORI number quoted in DE 3/2 is recognised by CDS then DE 3/1 should not be completed. Enter the full name and address of the Seller, including the postcode 3/24 Seller name and address This data element is only completed where the Seller is different from the exporter s details declared in DE 3/1 or 3/2, or both The Seller is the last known entity who sold the goods or agreed for them to be sold to the buyer. 3/25 Seller Identification Number This data element is only completed where the Seller is different from the exporter s details declared in DE 3/1 or 3/2, or both
Box 8: Importer/Consignee Data Element D.E Description Key Updates 3/15 Importer name and address DE 3/15 is used to declare the importer s name, address and postcode The importer can only be declared once at the header level 3/16 Importer Identification Number Enter the identification number (EORI) of the importer in DE 3/16. The full name and address is to be entered in DE 3/15 if the importer does not have an EORI number. 3/26 Buyer name and address DE 3/26 is used to declare the Buyer s name, address and postcode. This data element should only be completed where a recognised EORI number is not held and declared in DE 3/27. This data element is only completed where the Buyer is different from the Importer declared in DE 3/15 or 3/16. 3/27 Buyer Identification Number Buyer is the last known entity the goods are sold or agreed to be sold to
Box 14: Declarant/Representative Data Element D.E Description Key Updates 3/17 Declarant name and address DE 3/17 is used to declare the Declarant s name and address and postcode. This data element can only be declared once at the header level 3/18 Declarant Identification Number Enter the identification number (EORI) of the importer in DE 3/18. Where a valid EORI number is provided in DE 3/18, the Declarant s name and address does not need to be completed in DE 3/17. 3/19 Representative Name and address This data element and 3/20 must be completed with the details of the representative who will be responsible for the customs formalities where this differs from the Declarant details declared in DE 3/17 or DE 3/18, or both 3/20 Representative identification number Enter the identification number (EORI) of the representative Buyer is the last known entity the goods are sold or agreed to be sold to 3/21 Representative Status Code This data element must be completed, other than in the case of self- representation. Enter one of the following codes: Code Representation 2 Direct representation 3 Indirect representation
Valuation Information required on the CDS Declaration Customs value will be embedded within the CDS Declaration This is not just when the value exceeds a certain limit CDS declarations will now include further information such as buyer, seller, delivery terms, valuation indicators as well as additions and deductions MSS information currently includes information such as currency, total amount of invoice, Some of the additional information were usually obtained as part of an assurance audit will now be embedded with the declarations Delivery terms (Box 20) code must be provided for declarations using valuation method 1
Valuation Indicators Party relationship between the buyer and seller Restrictions as to disposal or use of the goods by the buyer Sale or price subject to some conditions Are any Royalties and licence fees related to the imported goods payable and is sale subject to arrangement accruing proceeds to the seller. All royalty payments/license fees made as a condition of sale will be dutiable irrespective of the relationship between the manufacturer and third party licensor
Valuation Deductions Additions Costs incurred by the buyer Costs of transport after arrival at place of destination Goods and services supplied by the buyer free of charge or at reduced Charges for construction, erection etc undertaken after importation Royalties & licences fees Any other charges Proceeds of any subsequent resale, disposal or use accruing to the seller Import duties or other charges payable in the union by reason of the import or sale of the goods Cost of delivery to point of introduction Value declared = Net price in currency of invoice (price paid or payable) + Additions Deductions
Appendix 9: D.E. 4/8: Changes to Method of Payment Codes Definition of MOP Code MOP Code to be declared in D.E. 4/8 A B C D E G Immediate payment in cash Immediate payment by corporate credit card Immediate payment by cheque Not currently in use Deferred payment (deferment account) Postponed payment: VAT system (Article 211 of EU Directive 2006/112/EC) Immediate payment by electronic credit transfer (faster payment, CHAPS, BACS) Security Deposit: immediate payment (cash deposit) Security Deposit: immediate payment (CDS Cash Account deposit) Export refunds and/ or CAP licence, security held by RPA Immediate payment from CDS Cash Account Security Deposit: deferred payment (deferment account deposit) H M N O P R S Importers general guarantee account (Importer self- representation) Agent s general guarantee account Security: Importers guarantee account standing authority (Direct/indirect representation) Security: Importers guarantee account individual/specific authority (Direct/ indirect representation) SASP Importers individual guarantee (e.g. C&E 250) T U V X Z
Useful Information GOV.UK How to prepare for CDS - guidance for what businesses need to do to prepare https://www.gov.uk/guidance/how-hmrc-will-introduce-the-customs- declaration-service Navigating CDS Volume 3 Import Tariff https://www.gov.uk/guidance/how-to-navigate-the-customs- declaration-service-cds-tariff-declaration-completion-rules Sign up for Import and Export Email alerts https://www.gov.uk/topic/business-tax/import-export
