Print
Print

May 31 2019

UK customs declarations changes will affect all freight customers eventually

UK – As Parliament swans about without resolving the Brexit crisis many companies still have not apparently familiarised themselves with HM Revenue and Customs’ (HMRC) new Customs Declaration Service (CDS). This despite harsh warnings from the likes of the British International Freight Association (BIFA) and others that firms need to prepare themselves for changes to import and export procedures with CDS replacing the existing Customs Handling of Import and Export Freight (CHIEF) system.

 

Originally CDS was due for a roll out in 2018, then delayed with all declarations set to take place on CDS from early 2019. Neither of these happened as planned and a vague mist of poor information has engulfed the whole thing ever since. Several major forwarders were asked to trial the system and these have assisted HMRC in tweaking the process but, up to now, seemingly hardly anybody outside this elite group has used the system.

 

The delays are blamed on Brexit and the number of HMRC staff who have been transferred to deal with the manifold possibilities. The eventual adoption of CDS is apparently set in stone so it seems sensible that anyone who will need to use the system, which presumably means everyone responsible for customs declarations to and from anywhere dependent on the final Brexit deal, prepares for the incoming legislation earlier rather than later.

 

Looking at one specific case, Active Products (UK) Ltd is one of the UK’s many SME importers and the company has now successfully become an early adopter of CDS following advice and support from software specialist Descartes Systems UK Ltd. Active Products is a privately owned company that has been supplying a diverse range of products since 2003. The company operates a bonded warehouse, which allows it to defer duty and VAT payments on imports. It was for this reason, combined with the available resources within the business, which caused Descartes to suggest it would benefit from the early transition. Read more

 

 

Source: HANDY SHIPPING GUIDE