News / HMRC backtracks to phased switchover to CDS for UK exports

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Industry netted a “big win” after the UK tax authorities backed down and opted for a phased introduction of its post-Brexit export process instead of a hard switch.

HMRC announced yesterday it had “listened to industry leaders” and was implementing a phased adoption of the Customs Declaration Service (CDS) to transition from the current Customs Handling of Import and Export Freight (CHIEF) platform for UK exports.

Director of border change delivery Sarah Hartley said: “Those businesses that have the IT functionality in place are still able to move across to CDS by Thursday 30 November, ahead of the majority that will now migrate to CDS at the beginning of 2024.”

Now, high-volume declarants able to migrate by the end of November will be contacted by either HMRC or its software developer next month to assist in the switch. All remaining exporters will be assisted from the beginning of next year.

As industry responded positively to the decision, a spokesperson for BIFA noted that while the timeframe remained “quite short”, the industry at least now had some clarity.

“CDS has been a long time in the making, and there have been many changes in the implementation timetable,” the spokesperson told The Loadstar. “This revision to the deadline is quite short and any business must continue to work towards transitioning from CHIEF to CDS, as a large proportion of BIFA members are already doing.”

CDS replaced CHIEF as UK imports platform last year and the initial intention was that it would come online for exports on 31 January this year. This was pushed back to 30 November to allow for more testing.

One source told The Loadstar the decision to phase it in was tied to continual outages and messaging faults after HMRC forced through the September 2022 deadline for imports. Sources at the time said neither the industry nor the software houses had been afforded adequate time to ensure the CDS system was ready and able to handle the scale of declarations coming its way.

Chair of the Association of Freight Software Suppliers Steve Bartlett said he and his members “fully supported” the revised timetable for the transition, adding: “This moves away from the seasonal peak and allows more focus to help customers migrate to NCTS5 in November. We thank HMRC for the continued collaboration and consultation with us, to ensure a successful completion of the CDS journey for everyone.”