Important actions for traders to take as HMRC's current import and export system is phased out

On 30 September 2022 HM Revenue & Customs’ (HMRC) ageing import and export handling system called ‘CHIEF’ (Customs Handling of Import & Export Freight) will be starting its two-stage journey to obsolescence and full replacement by the new and higher capacity CDS (Customs Declaration Service) system. Currently, both systems are in use.

On 30 September 2022 CHIEF closes to any UK import entry submissions and the new CDS must be used by agents or companies declaring imports into the UK.

On 31 March 2023 CHIEF closes to UK export declarations and finally fully shuts down permanently.

Traders who are authorised and use their own Duty Deferment Accounts (DDA) will need to ensure that they obtain a new Direct Debit instruction to HMRC for this customs facility via CDS. Otherwise, their goods will be delayed at the UK border and may be subject to demurrage, temporary storage, and further customs clearance charges. Due to a software and accounting issue, CDS does not recognise existing direct debits for deferment accounts on CHIEF.

As with Postponed Import VAT Accounting (PIVA), traders will be able to view their Duty Deferment Account and movements online via the CDS portal.

Would you like to know more?

If you would like further information on this topic including how we can help you prepare for these changes, please contact Simon Sutcliffe using the details on this page.