The Customs Declaration Service (CDS) has been fully operational as the replacement for CHIEF since April 2024 and all import and export declarations must now be made using CDS. These are some of the most common questions that have cropped up as importers, exporters, customs agents and freight forwarders adapted to the new system.
1. Does CDS differ from the Customs Handling of Import and Export Freight (CHIEF) in any way?
The differences between CHIEF and CDS are fairly small. You still have a data field for who the importer is, what their address is and so on. The differences are around the technical details, where you get into tariffs and procedure codes.
One very technical detail is that CHIEF commodity procedure code 1000001 no longer works and has been replaced by the closest equivalent, which is 1040000.
It’s worth pointing out that a lot of CDS data elements require specific information, whereas CHIEF had a lot of free text fields, so it registered that you need to fill in the box, but it didn’t necessarily check what you put in the box. CDS has a lot more drop-down menus, requiring you to select fixed data that it will validate.
2. How can importers and exporters ensure compliance with CDS?
There are some basic things traders can have in place to make sure they’re ready, like making sure you have your Economic Operators Registration Identification number (EORI) and are registered with the CDS financial dashboard.
Logistics companies managing exports through inventory-linked locations, which are the bigger seaports like Felixstowe or London Gateway, will need to have “badges” to go through those ports. It’s worth getting in touch with the community service provider who provides you the badge to make sure that they will be able to transition your badge over to CDs. Even if you had one issued for use in CHIEF, it doesn’t carry over to CDS.
3. Should traders check that their freight forwarder has updated their software from CHIEF to CDS?
Most of the software providers that people use for CHIEF have got a CDS version and it will be available for anybody that wishes to use it. Similarly, the fairly big software providers that cover a large portion of the market all have CDS functionality, for both import and export.
Gov.uk does have a list of providers which are developing or support CDS.
If someone is using customs declarations software in-house and they have their own bespoke software, rather than a commercial package, that could pose its own problems because that will need updating. It’s a long process requiring plenty of testing, and this would typically only apply to larger organisations who would have begun the process already.
4. What did the 999L code waive and what should traders be using now?
After providing basic information such as commodity code, customs procedure code, valuation and so on, code 999L would be used to say that the good doesn’t require a license or any documentation in order to be imported or exported. It would waive the need for further information.
The code was often overused and encouraged traders not to check whether their goods required documentation – many were using the code when there were actually additional documents they needed to submit.
Each commodity code does have a waiver code, which usually begins with a ‘Y’. Starting today with the end of 999L’s use, the correct process will be to check your commodity code and, if a waiver is required, find the applicable one for that good.
There are also several national waiver documents codes that those previously using 999L should consider, depending on the type of good they’re using.