HM Revenue & Customs (HMRC) is calling on UK businesses to migrate their customs reporting to a new IT platform that is set to replace the Customs Handling Import and Export Freight (CHIEF) system on 31 March 2023.
The Customs Declaration Service (CDS) has been in the works since 2014, demand for which has intensified following the UK's decision to leave the EU.
CHIEF has been criticised for being unsuited for the post-Brexit age due to its limitations of being able to process only 60 million customs declarations a year. This is almost five times less than the 270 million additional customs declarations per year anticipated by HMRC from UK companies for the import of EU goods.
CDS, on the other hand, will be able to handle an estimated 255 million declarations per year. Since being launched in 2018, the platform has processed more than 2.5 million declarations to date, HMRC announced on Thursday.
After running parallel to CHIEF for five years, CDS will become the UK’s main customs IT platform. CHIEF is expected to be turned off on 30 September 2022 after almost three decades in operation. Due to system migrations for larger businesses potentially taking up to six months, HMRC is asking organisations to begin the move now.
Commenting on the announcement, HMRC directors general for Borders and Trade, Katherine Green and Sophie Dean, said that CDS will provide HMRC with “the capacity and capability to grow in line with the Government’s ambitious trade plans and to have the world’s most efficient customs system by 2025”.
“We know the introduction of new rules can be challenging and appreciate all the efforts industry has already made to keep goods flowing. We understand a system change can take time which is why we are asking businesses to start the migration process now. We’ll do everything we can to support businesses to get this right. Help is available online, through our guidance on GOV.UK, our webinars and over the phone,” they added.
Last month, HMRC faced criticism after a scathing National Audit Office (NAO) report revealed significant inconsistencies in the implementation of IR35 tax reforms.
-
New chapter, same partners: Keeping the channel aligned with changeIndustry Insights How to maintain strong channel partnerships amid evolving strategies and market change
-
Palo Alto Networks snaps up CyberArk in identity security pushNews The acquisition marks the latest in a string for Palo Alto Networks
-
Intel makes high-level hires while factory workers are warned of layoffsNews The company is appointing four senior executives as part of efforts to refocus on engineering and customer relationships
-
UiPath names Simon Pettit as new AVP for UK and IrelandNews The seasoned leader will spearhead region-specific transformation projects as UiPath looks to drive operational growth and customer engagement
-
How to empower employees to accelerate emissions reductionin depth With ICT accounting for as much as 3% of global carbon emissions, the same as aviation, the industry needs to increase emissions reduction
-
Worldwide IT spending to grow 4.3% in 2023, with no significant AI impactNews Spending patterns have changed as companies take an inward focus
-
Report: Female tech workers disproportionately affected by industry layoffsNews Layoffs continue to strike companies throughout the tech industry, with data showing females in both the UK and US are bearing the brunt of them more so than males
-
How can small businesses cope with inflation?Tutorial With high inflation increasing the cost of doing business, how can small businesses weather the storm?
-
How to deal with inflation while undergoing digital transformationIn-depth How can organizations stave off inflation while attempting to grow by digitally transforming their businesses?
-
How businesses can use technology to fight inflation
TUTORIAL While technology can’t provide all the answers to fight rising inflation, it can help ease the pain on businesses in the long term
