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Significant Update On Custom Declaration System As Of 04TH JUNE By Milky Way Logistics

Custom DEclaration System

Crucial Update on CDS

Custom Declaration System Replaced CHIEF!

Welcome to the Milky Way Logistics blog! We are committed to keeping our clients informed about the latest changes in the logistics and customs landscape. Today, we bring you essential updates regarding the UK’s transition from the CHIEF (Customs Handling of Import and Export Freight) system to the new and improved Custom Declaration Service (CDS). As of today, June 4th, CDS has completely replaced CHIEF, introducing new Customs Procedure Codes (CPCs) and enhanced requirements for commodity codes.

What is the Customs Declaration Service (CDS)?

The CDS is the UK’s advanced digital platform for managing custom declaration. It has been developed to handle the complexities of modern international trade more efficiently than the old CHIEF system. This transition is part of the UK’s broader strategy to streamline and modernize customs procedures, ensuring they are fit for purpose in a rapidly evolving global trade environment.

Key Features of CDS

  • Enhanced Digital Platform: CDS (Custom Declaration System) is a fully digital system, enabling quicker and more accurate electronic submissions.
  • Alignment with International Standards: The Custom Declaration system is designed to harmonize with global customs standards, facilitating smoother international trade.
  • Increased Specificity: New CPCs provide more detailed classifications for goods, reducing the likelihood of errors in custom declaration.

New Customs Procedure Codes (CPCs)

Customs Procedure Codes are crucial for the proper classification and treatment of goods during import and export. Here’s how the new CPCs under CDS benefit Milky Way Logistics:

  1. Greater Specificity: The new CPCs used in Custom declaration System offer more precise descriptions of customs procedures, enhancing accuracy and compliance.
  2. Simplified Procedures: These codes are designed to simplify custom declaration by aligning more closely with international standards.
  3. Digital Efficiency: Integration into the CDS platform supports faster processing and reduces the need for paper documentation in Custom Declaration.

Examples of New CPCs:

  • CPC 4000C09: Used for goods imported under a temporary admission procedure, ensuring they can be re-exported within a defined period without additional duties.
  • CPC 6123E15: Facilitates the export of goods under a simplified declaration process, speeding up customs clearance for low-risk consignments.
  • CPC 7100N01: Applied to the re-importation of goods previously exported temporarily, exempting them from additional duties upon return.

Commodity Codes and Additional Details

Commodity codes classify goods for customs purposes, determining the duties and regulations applicable to them. Under CDS, these codes require additional details to ensure accurate processing. Here’s what you need to know:

  1. Detailed Descriptions: Commodity codes now require more detailed descriptions of the goods, including their composition, use, and origin.
  2. Supporting Documentation: Additional documents, such as product specifications or certificates of origin, may be required to support the commodity code.
  3. Compliance with Regulations: Accurate commodity codes ensure compliance with international trade regulations, preventing delays and penalties.

Example of Enhanced Commodity Code Requirements:

  • Product: Electronic Components:
    • Old CHIEF Requirement: Basic description and code.
    • New CDS Requirement: Detailed description, including the specific type of components, their material composition, intended use, and origin. Supporting documents such as technical specifications may also be required.

Preparing for the Transition

To ensure a smooth transition to CDS, Milky Way Logistics has taken several steps:

  • Training Programs: Our staff has undergone comprehensive training on the new CDS system and CPCs to provide expert guidance and support.
  • System Upgrades: We have updated our internal systems to seamlessly integrate with the CDS platform, ensuring efficient processing of all customs declarations.
  • Client Support: We are here to help our clients navigate these changes. If you have any questions or need assistance with your customs declarations, our team is ready to provide support.

Conclusion

The complete transition to the Customs Declaration Service marks a significant advancement in the UK’s customs procedures. At Milky Way Logistics, we are committed to leveraging these changes to enhance our services, ensuring efficient and compliant customs clearance for all your shipments. Stay tuned to our blog for more updates and insights on navigating the complexities of international trade.

For further information or assistance with your customs declarations, please contact our expert team at Milky Way Logistics. We are here to ensure your goods move smoothly across borders, adapting to the latest customs requirements with ease.

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Important Customs Declaration Update From 04 June 2024

Transition to CDS for Customs Declarations: Key Information for Exporters

Custom Declarations for Export Transition to CDS Effective 06 June 2024

Transition to CDS for Customs Declarations: Key Information for Exporters

London, May 22, 2024 — As part of the ongoing modernization of the UK’s customs procedures, HM Revenue & Customs (HMRC) has announced a significant change in the submission process for customs declarations. Effective from Tuesday, 4 June 2024, all customs declarations must be submitted through the new Customs Declaration Service (CDS), replacing the long-standing Customs Handling of Import and Export Freight (CHIEF) system.

This change is a part of the broader effort to streamline and enhance the efficiency of the UK’s customs operations. Exporters and businesses involved in international trade are required to adapt to this new system to ensure compliance and continuity in their export activities.

Important Information for Exporters Using NES:

For customers who rely on third parties to complete their National Export System (NES) entries, there are new requirements to facilitate this process under the CDS. From 4 June 2024, the following additional information must be provided:

  1. Exporter’s Details:
    • The exporter’s UK Economic Operator Registration and Identification (EORI) number.
    • The exporter’s full address.
  2. Consignee Information:
    • Full name and address of the consignee.
  3. Reference Numbers:
    • House Air Waybill (HAWB) reference.
    • Invoice reference number.
  4. Export Licence Requirements:
    • Indicate whether the goods require any type of export license.
  5. Valuation and Currency:
    • Correct value of the goods.
    • Correct currency code.
  6. Weights:
    • Net mass and gross mass of the goods.
  7. Commodity Details:
    • The Commodity Code plus any necessary waiver codes.
  8. Goods Description:
    • Clear and unambiguous description of the goods, including quantity, marks, and numbers.
  9. Customs Procedure Codes:
    • Correct Customs Procedure Code (CPC).
    • Confirmation if the goods have been previously imported or will be re-imported at a later date.
  10. Previous Authorisations:
    • Any reference numbers previously issued by Customs, such as Inward Processing Relief (IPR), Outward Processing Relief (OPR) authorisations, or previous declarations.

These requirements are essential to ensure the accurate and efficient processing of customs declarations under the new CDS system. Exporters are advised to gather this information promptly and coordinate with their customs agents or service providers to avoid any disruptions in their export operations.

Benefits of the CDS Transition:

The transition to CDS promises several advantages, including:

  • Enhanced data processing capabilities, supporting more detailed and complex declarations.
  • Real-time access to declaration data, facilitating quicker clearance times.
  • Improved compliance and security features, protecting trade data integrity.
  • A more user-friendly interface, reducing errors and administrative burdens.

Support and Assistance:

HMRC is committed to supporting businesses through this transition. Training resources and support materials are available to help users understand and navigate the new system. Additionally, HMRC has set up dedicated support channels to address any queries or issues that may arise during the switch to CDS.

Conclusion:

The migration from CHIEF to CDS is a pivotal development in the UK’s customs landscape. Exporters and businesses are urged to prepare for this change by familiarizing themselves with the new requirements and ensuring all necessary information is accurately provided. This transition aims to create a more efficient and secure customs environment, ultimately benefiting the UK’s international trade sector.

For more information and updates, exporters can visit the HMRC website or contact their customs service providers.

Stay informed, stay compliant, and embrace the future of customs declarations with CDS.

 

For further information about commodity codes and custom codes please visit government website.

 

 

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Less Data for Less Value Consignments

Less Data for Less Value Consignments

Less Date- Less Value

From January 1st 2021, there will be no VAT for goods of up to Euro 22 and to let the VAT be levied, ‎any imports to EU should be declared via an Electronic form by which any custom liabilities for ‎consignments of lower value (less than Euro 150), would be disappeared. ‎

Milky Way Logistics Ltd, draws your attention to the recent change in the delegated regulations by the Commission as reported by the British International Freight Association; following an amendment to the Union Custom Code Delegated regulation EU 2015/2446, it would be possible to declare goods of less value (up to 150 Euro) with much less information (almost one third) while doing the entry for custom declaration.

From January 1st 2021, there will be no VAT for goods of up to Euro 22 and to let the VAT be levied, any imports to EU should be declared via an Electronic form by which any custom liabilities for consignments of lower value (less than Euro 150), would be disappeared.

Therefore, the UCC delegated regulation has been amended by the Commission and as a result, less data on the lower value goods would be required for import’s declarations.

Milky Way Logistics continues support to customers about imports custom clearances.

Click here for The amendment to delegated Regulations that entering into force July 25th 2019.

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