Customs Declaration Service (CDS)

What is Customs Declaration Service (CDS)?

CDS is a digital customs declaration system launched by the UK HM Revenue and Customs (HMRC) to replace the CHIEF system (Customs Handling of Import and Export Freight), which has been in operation for 30 years. From October 1, 2022, CDS will be officially used for import declarations, and after March 31, 2023, it will fully take over export declarations. CDS provides real-time import and export data, tariff calculations, and financial statements through a unified digital dashboard to help companies manage customs affairs more efficiently.

The background and core advantages of CDS

Following the UK withdrawal from the European Union, all goods entering and leaving the UK will require a customs declaration. The CDS has been launched not only to adapt to this change but also to meet the needs of modern trade:

• Digital management: support electronic declarations and real-time data tracking to reduce manual intervention.
• Compliance and transparency: ensure companies comply with customs regulations through standardized processes.
• Efficiency improvement: automate tariff calculations and fast customs clearance to reduce the risk of delays.
• Cost savings: a single system covering all import and export operations reduces operational complexity.

How do I register for CDS?

Companies need to complete CDS registration by following these steps:

1. Obtain the necessary information, such as the EORI number (starting with GB), the Unique Taxpayer Reference (UTR), the company address, etc.
2. Log in to the government gateway: Use the company or individual’s government gateway account (prior registration required).
3. Apply: confirm company information and activate CDS access.
4. Configure payment methods: select options such as cash account, tariff deferral account, or instant payment.

Note: Companies using the import VAT deferral account (PVA) may have been automatically registered for CDS and can view the relevant data via the finance dashboard.

Core data required for CDS declarations

The declaration information required for CDS is divided into eight data groups to ensure comprehensive coverage of goods information:

1. Message information: Customs procedure code (CPC).
2. Reference documents: Authorization certificates, licenses, etc.
3. Participant information: Shipper, consignee, and agent information.
4. Goods value: This includes transaction price, transportation, and insurance costs (subject to international trade terms).
5. Transportation details: Date, route, and destination.
6. Goods identification: Tariff code, weight, and description.
7. Mode of transport: tools, types of equipment, etc.
8. Other information: statistical data, warranty agreements, etc.

Payment methods and tariff management with CDS

CDS offers flexible payment options to optimize cash flow:

• Cash account: automatically generated for immediate deduction of tariffs and VAT.
• Tariff deferral account: supports monthly billing and reduces the pressure of frequent payments.
• Immediate payment: suitable for single customs clearance needs.
• Guarantee account: delays tax payments by agreement and is ideal for high-frequency importers.

Related FAQs

What is the difference between CDS and CHIEF?

CDS is an upgraded version of CHIEF, offering a digital dashboard, real-time data tracking, and a more streamlined declaration process to support more complex trading scenarios.

Is it mandatory for all businesses to use CDS?

Yes. From March 31, 2023, all UK import and export declarations must be made via CDS, and CHIEF has been decommissioned.

What documents are required to register for CDS?

You will need your EORI number, UTR, proof of your company address, and legal identity information (e.g., National Insurance number).

Is it necessary to use an agent for CDS declarations?

Companies can declare themselves, but they will be legally responsible. Most companies use a licensed customs clearance agent (direct representation) to reduce compliance risks.

How does CDS handle customs duties and VAT?

The system automatically calculates the fees payable, and companies can choose to pay immediately, by deferred account or by guarantee.

What are the consequences of a CDS declaration error?

CDS declarations are legally binding, and errors may result in fines or the detention of goods. It is recommended that companies receive basic customs training or appoint a professional agent.