Customs Declaration Service - Is your business ready?

Businesses need to register to access the systems to:

• submit import and export declarations using software
• get postponed import VAT statements or import VAT certificates
• pay Customs Duty and import VAT 

How to subscribe to the Customs Declaration Service

There are five key steps to signing up and these take time so businesses need to act now to ensure they can continue to import after 30 September 2022.

Step 1 – Register for a Government Gateway account

A Government Gateway account is required to access the CDS. Most businesses will already have an account for other taxes.

Step 2 – Apply for an Economic Operator Registration and Identification (EORI) number

Businesses moving goods in and out of the UK need an EORI number beginning with GB.

Businesses without an EORI number can apply using the online form here on the GOV.UK website. HMRC advise that it takes 7 days to receive an EORI number, but it can take longer depending on how many applications they have to process.

Step 3 – Register for the Customs Declaration Service (CDS)

The online registration form can be found by clicking here and is accessed using your businesses Government Gateway ID and password, or your own if you are applying as an individual.

The following information is required to complete the form:

• EORI number
• Unique Taxpayer Reference (UTR)
• The business address which HMRC hold on their customs records
• National Insurance number (if you’re applying as an individual or sole trader)
• The start date of the business

After subscribing to the Customs Declaration Service, you may be able to access the system within 2 hours; however, it can take up to 5 days.

Step 4 – Choose which payment method to use

The main payment methods you can choose from are:

• Duty deferment account – CDS uses a separate HMRC bank account to CHIEF, so a new direct debit will have to be set up.
• Postponed VAT accounting (the VAT is declared on the business’ VAT return).
• Cash account – these replace the Flexible Accounting System (FAS), and you’ll be set up with one once you’ve registered for the CDS.
• Immediate payment by Bacs, CHAPS, online or by telephone banking – you can pay by debit, corporate credit card or cheque.
• Individual guarantee – you can use this to cover customs duties for one-off or high value imports.
• General guarantee account – this allows multiple guarantees to be provided from the same account, whilst continuing to import goods into the UK. Any disputed amounts are paid later once agreed.

Step 5 – Instruct your customs broker or agent

You need to give your broker or agent customs clearance instructions, which are compliant with the Customs Declaration Service. You may need to:

• let them know about any changes to your preferred method of payment.
• let them know about the incoterms, awareness for all values, the location information, and nature of transaction information.

Although CDS is only going live for imports in October 2022, the new system will also be compulsory for exports with effect from 1 April 2023.