BIFAlink February 2023


Policy & Compliance

Summary of main Customs changes scheduled for 2023

Customs Declaration Service (CDS), eight months later than previously announced. After 30 November 2023, businesses will need to use CDS to make export declarations for goods they send out of the UK, as they already do for import declarations. Given the lessons of CDS import implementation, BIFA would urge Members to immediately consider their migration strategy. Whilst in certain ways much of the hard work has already been undertaken, in setting up Government Gateway accounts etc, there are some traders who only export from the UK and they will need particular assistance. The other point is that in many ways the export inventory control is more complex than for imports and particular attention must be paid to ensuring that CDS interacts correctly with the relevant CSP system. What is ICS2? ICS2 is a new and updated Customs electronic import system. It is applicable to all modes of transport and will manage the advance safety and security risk analysis for all goods entering and transiting through the EU. The Import Control System (ICS) is being gradually replaced with a new system called Import Control System 2 (ICS2). This new system will allow for the implementation of the

There are significant changes to Customs systems to be implemented this year. BIFAlink takes a look at what you need to know and do

The last five years have seen some of the most fundamental changes in Customs processes and systems that the sector has ever had to deal with. In the foreseeable future there are several important changes still to be implemented. One of these, the implementation of CDS Exports, stems from a domestic change. The introduction of the upgraded Import Control System 2 (ICS2) results from a change in EU processes, and NCTS5 is a direct consequence of the UK’s membership of the Common Transit Convention. CDS – exports HM Revenue & Customs (HMRC) is gradually introducing the Customs Declaration Service, the long-term replacement for the current Customs Handling of Import and Export Freight (CHIEF) system. CDS Imports, after a difficult implementation, in the main is now functioning correctly. The UK Trade Tariff is an important part of the export declaration process and contains the

classification information for all goods, including any special conditions that may apply. On CHIEF, pre-departure Exit Summary Declaration (EXS) data is included alongside fiscal data elements in a ‘combined’ Customs declaration. This will continue to be the case on CDS. The main issue with CDS exports is the complexity of the export inventory functions, which are essential in order to maintain the effective flow of export goods from the UK. Most of the detail you include in an export declaration will remain the same, but it may be necessary to input it in a different way. This is to improve the structure and order of how information is grouped and entered as part of a declaration, and also ensures Union Customs Code compliance. In some cases, you may need your customers to provide you with more information to help you do this, as an export declaration will now grow to up to 65 data elements. Following consultation with the border industry including BIFA, export declarants will now have until 30 November 2023 to move across to the

Continued on page 18


February 2023

Made with FlippingBook Annual report maker