Customs Declaration Service (CDS) Automated Customs & International Trade Association 21 March 2018 Stella Jarvis Customs Transformation

1. Trade Documentation List Key documents have been shared with software developers. Further business and validation rules will be shared in the completed Import Tariff – out this week for QR until 13 April. Contains all CPC codes except those for inventory linking. Schemas for import and export inventory linking have been shared with CSPs. Document set has been validated with external developers, we continue to use their feedback to improve documentation. SA

2. Customer Migration From August 2018, there will be a gradual and controlled migration of traders from CHIEF to CDS, aligned to phased availability of CDS functionality. Supplementary declarations will be the focus from August 2018. It is planned that full CDS functionality will be delivered into live by Jan 2019. HMRC will support the migration of a population of software developers, FPOs, CSPs and some specific high volume declarants. Guidance on CDS will also be provided via communications channels to all existing CHIEF users. Commercial software / service providers will manage the roll-out of CDS compliant software and the migration of their own customer base, in alignment with HMRC’s overall migration strategy and schedule.

3. Delivery Timeline Since December 2017, stakeholders have been testing their software using business scenarios against phased trade test drops. The programme will deliver functionality into production with dual running of CHIEF and CDS in iterative cycles. Functionality will still continue to be dropped into Trade Test to support a phased roll out. As the releases of functionality are ready we will carry out a number of rehearsals on the cutover and migration activities. Once dual running is operational we will begin to migrate customers. There will be a gradual and managed ramp-up of volume on CDS to allow us to safely migrate to the new live service. SA

4. Trade Test Milestones This table shows the difference between the internal and external dates for each trade test. The internal date reflects the date that the go / no go decision must be made, while the external date reflects when external developers and CSPs will be able to begin testing against the new functionality in trade test. This allows time for each trade test to be deployed. Trade Test Milestone Internal Go / No Go Date External Live Date TT Milestone 1 19 December 2017 (Tuesday) 21 December 2017 (Thursday) TT Milestone 2 29 January 2018 (Monday) 31 January 2018 (Wednesday) TT Milestone 3 8 March 2018 (Thursday) 12 March 2018 (Monday) TT Milestone 4 17 May 2018 (Thursday) 21 May 2018 (Monday) TT Milestone 5 21 June (TBC) 2018 (Thursday) TBC TT Milestone 6 26 July 2018 (Thursday) 30 July 2018 (Monday)

5. High Level Trade Test Plan 2017 2018 w/c 20 Nov 4 Dec 18 Dec 1 Jan 15 Jan 29 Jan 12 Feb 26 Feb 12 Mar 26 Mar 09 Apr 23 Apr 07 May 21 May 4 June 18 Jun 02 Jul 16 Jul 30 Jul Scenarios & Completion Rules Sup Decs via EIDR; FEC; Quota Mid Feb Totality End March Technical Specs to Trade Technical Specs to Trade Technical Specs to Trade Trade Readiness Dependencies Trade Test Pack Trade Test Pack Trade Test Pack Deliver Functionality & Rules Configuration E-2-E Testing Business Rules Delivery Features & Deliver Functionality & Rules Configuration: Sup Declarations via EIDR; FEC; Quota E-2-E Testing Rules Configuration: Complete Supplementary Declarations Deliver Functionality & Rules Configuration: Frontier Declarations E-2-E Testing TT M4.1 TT M4.2 Go Live Testing & Go Live Testing & Go Live Testing & Go Live Testing & Go Live TT M1 21 Dec TT M2 31 Jan TT M3 12 March TT M4 21 May TTM 5: Sup Decs Concluded End June (TBC) TT M6 30 July

6. Dual Running Principles A Customs Declaration will exist in either CHIEF or CDS, not both. Declarations that start in CHIEF will finish in CHIEF; those that start in CDS will finish in CDS. No migration of inflight declarations. Limit dependency on IT solutions (Trade or HMRC) to support dual running. Consider and implement change of business process vs change to IT systems. Maintain trade migration flexibility.

7a. Declarations CFSP – an IT solution will enable a Simplified Frontier Declaration to be submitted to CHIEF and the subsequent SDIs submitted to CDS - or vice versa. UCC will simplify the border release and Entry in Declarants Records (EIDR) processes, enabling most CFSP traders to avoid the need to make frontier declarations at all.       Likewise, a warehouse removal can be declared to CDS, independent of which system was used for the entry to warehouse. Continued…….

7b. Declarations UCC may require additional data to be provided on removal, that was not part of the original declaration on entry to warehouse. However the trader should have this information as a condition of their warehouse approval, even if it is held in a different place or format. The timing and phasing of CDS rollout will be subject to agreement between the trader and their software supplier. That means CDS migration could be in stages, especially where a company uses different software products for different declaration types.

8. MSS and Inventory Linking MSS reports will contain both CHIEF and CDS data in order to ensure that all import and export entries can be seen in one place.  MSS reports will be available via the Enterprise Data Hub (EDH) through the CDS dashboard. CSPs will provide an automated solution for Imports Inventory clearance across both systems. Similarly, HMRC aim to provide export inventory clearance of declarations and consolidations across both systems, to enable flexible migration of export declarants. This is likely to involve a combination of IT and business process change.

9. Finance and Deferment Same Deferment Account and guarantee will be valid on both CHIEF and CDS. IT solution will synchronise account limit and balances between CHIEF and CDS in real time. Traders will be able to use CHIEF or CDS to see a real time balance.

10. Registration and Authorisation Registration and Authorisation data will be migrated to CDS – no need to re-apply. Change to the Registration channel (Telephony and Postal to Online) through which new registrations and updates to existing personal information are provided. IT solution passes UK Trader Registration information to CHIEF, CDS and the EU. There is no change to applying for and making updates to authorisations – existing process remains the same.  Manual synchronisation of updates between legacy and CDS.

11. Engagement Ongoing engagement with key groups, including: Monthly technical workshops and 1-2-1s with CSPs, software developers and key 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.

12. Communications Started a communications campaign in January to raise awareness about CDS. Initial communications included: new content on GOV.UK about CDS a factsheet issued through software developers and trade associations an email and letter to CHIEF users and a monthly newsletter to software developers.

13. Border Systems Programme 9 projects based on the scenario set out in the October 2017 White Paper on the Customs Bill, that on Day 1 the UK may have to implement a standalone customs service; Ro-Ro & Other Modes of Transport Northern Ireland Transit Excise Parcels Safety & Security Passengers Tariff & Quota Trade In Goods Statistics

Thank you and please send any further questions to: Any Questions? Thank you and please send any further questions to: declarationservices.customs@hmrc.gsi.gov.uk