The Customs Handling of Import and Export Freight (CHIEF) — the UK’s existing electronic system for handling customs declaration processes — will soon be retired and replaced by the new Customs Declaration Service (CDS).
The closure of the CHIEF system (which has been in the works since 2019 but was delayed due to Brexit) is expected to be complete by mid-June 2023. The first phase of the transition process will begin in September 2022.
Anyone who imports or exports from the UK should be aware of the upcoming changes and have a plan to make the transition process as smooth as possible.
Here, we’ll provide an overview of what you need to know about the phasing stages from CHIEF to CDS.
The Customs Declaration Service (CDS) is a system that supports the import and export of goods into and out of the UK. It’s replacing the CHIEF system that has been in place since 1994, which can’t effectively handle the complexities of post-Brexit EU customs requirements.
The CDS system has been live since 2018, but the first big shift to mandatory usage of CDS is coming in late 2022* — a once-in-a-generation change that will challenge IT departments and customs brokerage processing teams throughout the transportation and logistics industry.
Because the two systems are not a one-to-one match, companies will need to adjust to CDS customs declarations’ new layout and format and plan for updates to software, training, and business processes.
Here are some of the key differences between CHIEF and CDS:
Customs Handling of Import |
Customs Declaration |
Single platform |
Made up of numerous components that exchange information end to end |
Uses paper-based rules |
Uses data processing rules |
Uses EDIFACT messaging language |
Uses XML messaging language |
Requires different Custom Procedure Codes (CPCs) for different types of declarations |
CPC is always the same, regardless of declaration |
For a more detailed comparison between CDS and CHIEF, see this article from HM Revenue & Customs.
The CDS system is already up and running, and many companies have already made the switch. If you’re still using CHIEF, here are two important dates to keep in mind:
As with any change to existing processes, the switch to CDS may cause slowdowns, higher stress levels, and increased paperwork errors — which can negatively impact KPIs and customer experience.
Luckily, there are some steps you can take to make sure you’re not overwhelmed when the deadlines roll around:
Making a last-minute switch from CHIEF to CDS without the proper preparation could wreak havoc on your business processes and cause unnecessary stress for agents and clients alike.
To recap, be sure to do the following ahead of the upcoming deadlines:
Adjusting processes is never easy, but with the right planning and support, you can adapt to CDS, continue to serve your clients, and protect your bottom line.
*CDS declarations have been mandatory for all imports into Northern Ireland since October 2021.
Looking for a strategic partner to support your transition to CDS? Contact us.