BIFAlink September 2024

Policy & Compliance

consultation. The questionnaire was designed to research areas such as streamlining Customs declarations and the technology used to submit Customs declarations. The consultation clearly indicated a need for change, which Members felt very strongly about. Based on the response, it was clear that traders wanted to make optional, or completely remove, the completion of certain information related to transportation, goods identification, Customs offices, and information related to the parties involved in the supply chain. As a result, the completion of 10 data elements should be reviewed, and the completion of some or all of them could potentially be omitted. Furthermore, HMRC learned that traders require greater flexibility when completing declarations at the header and item levels. The second part of the results paper discovered various concerns related to technology use. Respondents indicated that one of the most significant issues for SMEs was related to the purchase and maintenance cost of IT solutions needed to access various government services. A potential fix might be a technological solution that offers the ability to interact with multiple government systems. Single Trade Window Stemming from the above comment of “interacting with multiple government systems”, there is one system development that is gradually gaining momentum: the Single Trade Window (STW). From the information we currently have, our understanding is that CDS is an important element of the STW framework, which will be used as an input channel to feed information into the database and also process the declarations by extracting required information from relevant sources linked to the STW. It is worth noting that due to a number of factors, such as the change in government, annual budget limitations, and the complex nature of the system development process, it will be a long journey before we see the anticipated system solutions perform at their full potential.

The newly introduced Customs Declaration Service is an important element of the Single Trade Window framework – but don’t expect everything to run smoothly in its early stages CDS is Live: Is it the end or just the beginning?

O n 4 July 2024, an historic moment in UK Customs dealings was reached. The long-standing Customs Handling of Import and Export Freight (CHIEF) system was replaced by the new Customs Declaration Service (CDS). What does it mean for the users? Following a challenging transition period, is it fully ready for use? As the above introduction suggests, an old system was replaced by a new service which is a modern IT solution that can offer more than meets the eye. CDS enhancements However, the saying ‘Rome wasn’t built in a day’ applies to CDS too. It took around 10 years to bring CHIEF to the operational level we knew before its decommissioning. Considering the evolution of IT technologies since the development of CHIEF, the enhancement of CDS is likely to take less time. So, what do we know about the future plans and what system users would like to have?

The first significant CDS feature was identified during the CDS import migration period, when the trade community learned that pre- lodged import entries could not be amended and resubmitted when rejected on arrival in the UK. As a result, traders had to cancel and submit a new declaration to clear the goods. BIFA contacted its Members with a survey to measure the impact of this CDS feature and the outcome was presented to HMRC. Members’ comments were taken onboard, and a change request was submitted to relevant departments within HMRC and government to explore and develop system changes that will permit the resubmission of amended entries. At the moment, it is unclear whether amendments will be permitted for any data elements or only for specific ones - such as those related to the method of payment instructions. BIFA will update Members as soon as information becomes available. In June 2023, HMRC invited traders to participate in ‘The Future of Customs Declarations’

“ ... it will be a long journey before we see the anticipated system solutions perform at their full potential

12 | September 2024

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