association (acita) automated customs and international trade

Customs Declaration Service (CDS)Automated Customs and International Trade Association (ACITA)

1Customs Declaration Service |

10 July 2018 Tina Crombie & Carol Carlile Customs Transformation

CDS Readiness Preparations

The approach to Readiness of CDS has been structured using a 5 Pillar model successfully used by the Infrastructure & Projects Authority for the 2012 Olympics. These pillars are:

1) Internal Readiness – Enabling the HMRC internal workforce to work with the new CDS Service

2) External Readiness – Enabling the migration of traders to CDS

3) IT Delivery – Delivery of the IT components that make up the new CDS Service

4) Go Live and Support – Enabling the successful transition of CDS from Delivery to Live Support

5) Contingency – Preparing contingency options that will ensure that Customs systems are able to operate following any outcomes of EU Exit negotiations.


CDS Phased Delivery & Migration OverviewCommencing in August 2018 there will be a phased migration of traders from CHIEF to CDS, aligned to the planned delivery of CDS functionality.

Migration tranchesCustomers will be migrated in ‘tranches’ which will be aligned to functional releases. Tranches are groups of traders.

Functional releases

Release 1 – 12th August 18Scope: Supplementary declaration functionality (Type Z and Y), limited C and F (specific criteria applicable to all types).

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CDS Phased Delivery & Migration OverviewFunctional releases

Release 2 – November 18

Scope: Remaining import functionality including support for Quota and multiple deferment accounts on a declaration. No immediate payments or securities, limited Digital services

Release 3 – TBC

Scope: All exports, all other methods of payment, Digital self-service. Ability to send Exports Inventory Linking requests to CDS will be in place before the first CDS exports declarations.

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CDS Release 1

Release 1 Traders will be able to submit declarations for the following customs procedures:

• Supplementary declaration into free circulation

• Supplementary declaration out of Customs Warehousing into Free Circulation

Constraints in Release 1 include:

• Any liabilities will be paid via a single deferment account on a declaration

• Only warehousing in the UK; no Quotas or reliefs

• Only licensable commodities requiring Department for International Trade (DIT) and Rural Payments Agency (RPA) licences can be declared.


CDS Release 1&2 Data Migration• Release 1

• For 12 August we will migrate data from CHIEF to CDS for those traders we expect to go live in Release 1.

• EORI data, authorisations, deferment accounts & OGD licences.

• The same data will be on both CHIEF and CDS throughout Release 1 and we will synchronise across the two systems.

• We are not migrating any customs declaration data to CDS – there is no need as declarations can be completed on CHIEF.

• Release 2

• Migrate data to CDS for every CHIEF trader and synchronise automatically during dual running.


CDS Phased Delivery & Migration Overview

Phase 2 functionality

Once core functionality is available in CDS and all customers have migrated, further releases in 2019 will offer service improvements

This will include additional Digital services and APIs, better control of Authorisations (e.g. who can claim IPR on your behalf) post-clearance automation

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Exports changes for CDS• Some key functional areas of CDS exports may differ from today

• Frustrated exports

• Arrival post departure and multiple departures

• Amendments and Cancellation

• ROE code mapping

• Topic Types and Customs Position Reason Types

(SOE/ICS codes)

• DUCR part numbers

• Assumed departure

8

Other Export Changes for Discussion

9

• Changes to locations codes have been previously shared with the trade. Airport location code example – GBAUMNCMANMNC (Manchester Airport)

• Export of goods under excise duty suspension

• Two part declarations

• Customs Supervised Exports (CSE)

• We are consulting with Trade partners including CSPs and Software Suppliers on the detailed solutions, and recording any concerns

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Trade Documentation List

▪ Key documents have been shared with software developers, including schemas for imports and exports declaration and inventory linking.

▪ Declaration completion guidelines and rules published in the Tariff

▪ Import Tariff – March 18. Contains all Imports CPC codes except those for inventory linking. Printed version August and searchable PDF version available in advance.

▪ Exports Tariff and Inventory Linking – 5 July 18 – 2 months earlier than planned. Remaining CPCs.

▪ Tariff includes CHIEF/CDS code mappings.

Overview of Trade TestTo support readiness for CDS, trade test provides external software developers with an environment against which their software can be tested.

All functionality is tested comprehensively by HMRC prior to each release.

Trade test is not the CDS production environment and only test data should be used.

For each new functional release into trade test we will provide:• Connectivity through the trade test environment and API• CDS declaration functionality• Technical specifications and documentation• HMRC support staff

CDS uses an agile delivery approach and functionality will be incrementally delivered into trade test.


Overview of Trade TestThe trade test milestones incorporate increasingly complex scenarios over time, aligning with the high-level delivery and migration strategy of the CDS programme by releasing milestones in the order of:

• Import Supplementary declarations

• Import Frontier declarations (including inventory linking)

• Exports (including inventory linking)

Trade test began with its ‘vanilla’ release to a limited group of developers in December 2017. This was opened to all CSPs and external developers as TTM2 in January 2018.

12| Official | Customs Declaration Service |

Overview of Trade TestTTM4.1 was released in May 2018. This milestone enhances existing functionality by introducing FEC checks, currency conversion, and Type Z declarations for goods not placed into customs warehousing.

We currently have 28 software suppliers testing at TTM4.

TTM5, will be released on 30 July 2018.

An end-to-end dress rehearsal involving early-migrating traders will take place on 31 July. The Trader Test Service will then be open to other companies wishing to do their own testing on CDS.


CDS Trade Test Milestone Summary

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CDS Tariff publication

Volume 3 - Imports

Volume 3 - Exports

Volume 3 - Imports Inventory ReleaseVolume 3 - Exports Inventory Release

CDS Tariff Manual

Navigating CDS Volume 3

UK Trade Tariff Volume

3 Import Declaration completion

Guide

Appendix

21

UK Trade Tariff

Volume 2

Appendix 1: D.E. 1/10

Appendix 2: D.E. 1/11

Appendix 4: D.E

2/2

Appendix 5: D.E

2/3

Appendices

List

Changes introduced by CDS Tariff

•Declarations will require completion using Data elements, rather than by box number. Split into 8 data groups

•Procedure codes formerly called Customs Procedure Codes will be split into 2 parts

•Harmonisation of codes – set out in Law and Appendices

•An audit trail of previous document ID’s (MUCR, DUCR and MRN), EPU’s will be invalid

•Increased number of items allowed per declaration from 99 to 999

Changes introduced by CDS Tariff

• To fill in the declaration, you will be required to select a declaration Category that will provide the data set to be followed (Supp Decs = H1)

•Declaration Types, determine along with the declaration Category, the data set to be followed and dictate specific business rules

•Greater number of Data Elements than Box numbers

•External users access via Gov.uk – Submit Declarations, Obtain real time information and reports and view duty deferment accounts

•No longer have to pay for MSS Data

Declaration

Categories

•Which types of declaration require the completion of the data element Field

format

•The number and type of characters allowed in the field

Number of occurrenc

es at header level

•The number of times the data element may be used at header level

Number of occurrences at item

level

•The number of times the data element may be used at item level

Import Declaration Completion Guide

Declaration Categories Field formatNo. of occurrences at header level

No. of occurrences at item level

C21, H1, H2, H3, H4, H5 & I1

a2 1x 99x

Digital registration to use CDSBefore you can use CDS live service you will need to register for CDS.

If you use a Freight Forwarder to submit your CDS declarations then it is only the Freight Forwarder who needs to go through the software authorisation process.

This authorisation process consists of a number of steps on Government Gateway.

The following screens show how this will be completed for Release 1 where an EORI exists. Additional screens will be required if applying for EORI and CDS registration.


Software Authorisation Steps


• Access to CDS APIs requires specific authorisation from the end-user (i.e. the declarant’s

organisation)

• We use the open standard OAuth 2.0 as a technical solution to let you grant authority to a software

application to interact with HMRC on your behalf

• Your organisation authenticates with us using your Government Gateway account, and grants

authority for the desired CDS functionality

• Your software supplier will send you a link to GOV.UK to start the authorisation process, and a

unique “client-ID” to identify your software

• We issue you with your own OAuth access token (this is a message, not a physical token)

• The access token is stored in your software application, and is automatically passed to us as part of

subsequent API requests, e.g. to submit a declaration to CDS

• This access token only gives access to your own data

Software Authorisation Steps – Points to Note


- You must have an EORI and a Government Gateway account before you can “sign up” for CDS

access.

- You may need to locate the person in your organisation who manages your existing Government

Gateway account

- They will need to “sign in” to Government Gateway and verify their identity before they can grant

authority to access CDS

- As part of this process they must choose a “client secret” for CDS.

- They will also have the opportunity to confirm organisation details and link your EORI to your other

HMRC accounts, e.g. through a UTR

- Your CDS access token expires after 18 months, and you must grant access again (repeat the

Government Gateway process) or you will lose access to CDS

Engagement & Communications


Ongoing engagement with key customer groups, including:

• Enhanced HMRC Business Relationship Management arrangements between HMRC and its key delivery partners, including regular technical workshops and 1-2-1s with CSPs, software developers and FPOs.

• Engaging with trade associations and groups including ACITA, BIFA, AICES, AFSS to provide regular progress updates.

• Updates to the Joint Customs Consultative Committee (JCCC).

• Linking into other Government engagements to join up where possible on messaging about HMG goods clearance processes.

• Developing a communication plan that will commence in August 2018 and we will be working with our trade partners including ACITA.

CDS Contingency


HMRC has created a contingency programme which consists of:

• A carefully managed transition process between August 2018 and January 2019, where HMRC can flex the pace of transition to reflect service performance.

• CHIEF will be operated in tandem with CDS during the transition from one system to the other (known as dual running). This will provide an additional level of contingency, should it be required

• Scaling of the legacy declaration processing services to handle the volumes of declaration that HMRC expects after the UK leaves the EU, to ensure that they remain a viable contingency solution beyond March 2019 if required.

Border Systems Programme

• Border Systems Programme (BSP) will contribute towards the UK government’s overarching strategic objectives

to:

• keep legitimate international trade flowing through the UK border

• ensure UK-EU trade post Brexit is as seamless as possible

• maintain effective border security to protect society from the threats of terrorism, organised crime and other

harms through more effectively targeted border controls

• collect revenues due on goods at the right time

• Border Systems Programme is the HMRC delivery Programme to ensure readiness for leaving the EU on Day 1.

• There are a number of projects within the programme including Ro-Ro, UK Safety and Security, Excise, Transit,

Passengers, Parcels, Trade Stats, Northern Ireland and Binding tariff. The landscapes on the projects are flexible

to support IT programmes (CDS) and EU Council decisions.

• BSP project teams and other Government Departments have also visited some maritime and R0Ro ports with

Border Delivery Group over the last few months and will be holding an external stakeholder event on 12 July in

London.

Useful Information• Sign up for Import and Export Email alerts

• Subscribe to email alerts

• Register for CDS email updates from HMRC send your name and email address to: [email protected]

• HMRC Manuals via GOV.UK

• https://www.gov.uk/hmrc-internal-manuals/customs-freight-simplified-procedures

• https://www.gov.uk/hmrc-internal-manuals/customs-special-procedures

• https://www.gov.uk/hmrc-internal-manuals/export-procedures

https://www.gov.uk/topic/business-tax/import-export/email-signup

mailto:[email protected]

https://www.gov.uk/hmrc-internal-manuals/customs-freight-simplified-procedures

https://www.gov.uk/hmrc-internal-manuals/customs-freight-simplified-procedures

https://www.gov.uk/hmrc-internal-manuals/customs-special-procedures

https://www.gov.uk/hmrc-internal-manuals/export-procedures

Any Questions?


Listed below are some useful e-mail addresses:

Sign up for information and updates on CDS by visiting our GOV.UK page. Go to GOV.UK https://www.gov.uk/ and search for ‘Customs Declaration Service’ and you will find the registration service.

If you have further questions please send an e-mail to [email protected]

https://www.gov.uk/

mailto:[email protected]

association (acita) automated customs and international trade

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