Why are the complexities of customs declarations increasing in the UK?

 


Until BREXIT, there was no need for a customs declaration for importing and exporting goods to the UK from other European countries. But from January 1, 2021, it has become mandatory after the EU withdrawal transition period. Hence, the number of customs declarations filed with HMRC increased drastically in 2021. Out of the 78.3 million customs declarations received in 2021 for international commerce, 34.3 million were between the UK and the many EU countries. Of the 78.3 million customs declarations, 20.3 million were for exports, and 50 million were for imports. Of these, 51% were UK-EU declarations submitted through indirect representation, far more than the 19.7% of the UK-non-EU import declarations. If the above statistics confirm the increasing custom declarations in the UK, it also gets complicated by HMRC's move from CHIEF to CDS for submitting them to get clearance.

So, in this post, let's discuss the increasing complexity of custom declarations in the UK, with their number rising due to the shift from CHIEF to CDS. 

Why is the CHIEF to CDS shift increasing the complexities of customs declarations?

Besides HMRC taking many steps like deferring the filing for UK-EU imports, it is also shifting from CHIEF to CDS in a phased manner. The CHIEF or customs handling of import-export freight, receiving the customs declarations for over three decades, will stop doing it. Importers cannot submit customs declarations with CHIEF from September 30, 2022, and exporters cannot do it from March 31, 2023. Hence, CDS, or custom declaration service, will be the new HMRC system to receive the import and export declarations. And until then, importers and exporters can submit customs declarations either in CHIEF or CDS. It increases the complexity of submitting the customs declarations apart from the heavy load that the HMRC handles at present.


How has HMRC reduced the complexities of custom declarations in the UK?

The UK is one superpower in the world, and it shows the way for other countries in many fields, including customs. After its historical decision of BREXIT  to digitalize its custom services, it is replacing the over thirty-year-old CHIEF with CDS. It also accommodates the increasing custom declaration submissions confirmed by the stats. But all through 2021, implementing interim staged customs controls enabled British importers to defer the filing of customs declarations for up to 175 days after the transit of non-controlled EU goods. Also, introducing the BIRD Bulk Import Reduced Dataset enabled the authorized declarants to consolidate many low-value shipments into a single customs declaration.

Though HMRC is taking many steps to reduce the complexities of custom declarations, its shift from CHIEF to CDS with many changes is challenging for importers and exporters. Hence, the cloud-based, self-service platform that provides step-by-step help throughout the customs declaration submission process will significantly help. With an intuitive and user-friendly interface, anyone can use it to manage the many complexities of customs declarations easily and quickly. 

Contact Information:

Address: London, SE1 3RY

E-mail: hello@customs-declarations.uk

Phone: +44 207 459 4444

Support Enquiries: support@customs-declarations.uk

Website: https://www.customs-declarations.uk/


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