Event Name Here ACITA 21/03/2018 11/14/2018 Customs Declaration Service (CDS) Ian Wilkins Business Transformation and Innovation Ian Wilkins to introduce himself and to summarise his role within Business Transformation and Innovation ACITA 21/03/2018

Session Overview CDS Tariff publication Key Tariff changes Event Name Here 11/14/2018 Session Overview CDS Tariff publication Key Tariff changes Declaration categories Declaration types Declaration scenario Customer support SPEAKER NOTES: In this session we will cover the following: CDS Tariff publication – When the various parts of the new Volume 3 of the tariff will be produced and the information they will contain. Key Tariff changes – will be covered throughout the presentation Declaration categories – how these have been changed to reflect the UCC Declaration types – the different types of declarations that can be used Declaration scenario – covering EIDR release from warehouse Customer support – further support that HMRC can offer

CDS Tariff publication Event Name Here 11/14/2018 CDS Tariff publication Volume 3 - Imports Imports Inventory Release Volume 3 - Exports Exports Inventory Release Volume 1 Guide to CDS Tariff Speaker Notes : Volume 3 - Imports has been issued for QR, factual accuracy, questions on clarification and comments, due to be returned by 13 April 2018. It is based on the UK’s application of the UCC data sets and its application within the new CDS Tariff. Volume 3 consists of: General introductory text Data element completion rules (including guidance tables detailing the relevant category completion requirements) Procedure code guidance Appendices containing reference data. Imports Inventory Release (Summer 2018) This will include guidance on CDS and CSP interfaces Inventory release process C21 Datasets and Procedure codes Volume 3 – Exports (Autumn 2018) Again as with Imports, It is based on the UK’s application of the UCC data sets and how it’s applied within CDS. Procedure code guidance and Exports Inventory Release (Autumn 2018) This will include guidance on: CDS and CSP interfaces Inventory release process C21 Datasets and Procedure codes. It will also include MUCRs; Split consignments Arrival and Departure messages. Volume 1 This will be a CDS updated version of the current Volume 1. Guide to CDS Tariff A comprehensive training manual on how to use and interpret the new CDS Tariff, including: scenario walkthroughs training presentations webinars Q & A sessions. Note – offer to run Tariff/ D.E. walkthrough sessions – software suppliers, JCCC, BIFA, if ACITA want specific session we can arrange

Key Changes to Declarations Event Name Here 11/14/2018 Key Changes to Declarations Declarations will require completion using Data elements, rather than by box number. Split into 8 data groups Procedure codes formally 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) Increased number of items allowed per declaration from 99 to 999 Speaker Notes: Declarations will require completion by Data elements, rather than by box number. What we currently refer to as boxes on the C88/SAD will be called data elements (DE) under the New CDS System. Where these are multifunctional under the SAD H declaration, they will be separated into individual data elements under CDS . For example Box 8 – Importer/consignee is now 6 separate data elements, separated by – Importer name and address, Importer Identification Number, Buyer Name and address, Buyer identification number, Consignee name and address and consignee identification number. You won’t necessarily need to complete the full range of data elements available on CDS, only the ones relevant to your declaration category. The new data sets have a number of differences from SAD H and are grouped into 8 data tables as follows: Message information including Procedure Codes References of messages, documents certificates and authorisations, Parties Valuation information and taxes Dates, times, periods, places, countries and regions Goods identification Transport information Other data elements The Data elements in each group will follow the group number e.g.all Data elements in group 1 - Messaging and information including procedure codes, will start with a 1. for example D.E.1/2 is where you will enter the declaration type and so on. Procedure codes formally called Customs Procedure Codes will be split into 2 parts CPCs currently go in box 37 of the SAD , However under CDS the Procedure codes will be split into 2 parts. The first part comprises of 4 digits called the Procedure Code, completed using D.E.1/10 to be found in Annex 1 of the Tariff. The second part comprises of 3 digits and will be referred as the Additional Procedure Code, completed in D.E.1/11 to be found in Annex 2 of the Tariff. There is likely to be more than one 3 digit Additional Procedure code and up to a maximum of 99 per 4 digit Procedure code. For example most imports are likely to have 2, 3 digit Additional procedure codes, one for Duty, one for VAT and if appropriate, a 3 digit Additional procedure code for Excise I will give you an example of how this looks shortly. Harmonisation of codes – set out in Law and Appendices The Implementing Act(IA) to the Union Customs code (UCC) identifies specific codes that must be declared for example: AI codes, Additional procedure codes and delivery terms. A fairly large percentage of data elements, where identified in Law, specify which format or code must be used. Where the Law does not specify EU codes then national codes can be used. With reference to document code referred to in D.E.2/3, appendix 5 provides details of EU codes and National codes. These codes can be used together. Where EU codes are used they must come first. An Audit trail of previous document ID’s (MUCR,DUCR and MRN) The current entry number under CHIEF will become a Movement Reference Number (MRN) under CDS. Further details on what is required for MUCR and DUCR can be found under D.E.2/1 of the Data element Completion Rules. Increased number of items allowed per declaration from 99 to 999.

Declaration Categories Event Name Here 11/14/2018 Declaration Categories Declaration Category Declaration Title Requested Procedure Codes(CPC’s) (Digits 1 and 2) H1 Declaration for release for free circulation and special procedure — specific use — declaration for end-use 01, 07, 40, 42, 44, 61 H2 Special procedure — storage — declaration for customs warehousing 71 H3 Special procedure — specific use — declaration for temporary admission 53 H4 Special procedure — processing — declaration for inward processing 51 H5 Declaration for the introduction of goods in the context of trade with special fiscal territories 40, 42, 61 I1 Import Simplified Declaration 01, 07, 40, 42, 44, 51, 53, 61, 71 SPEAKER NOTES: Declaration Categories: The data element completion rules provided in this document indicate for which types (categories) of declarations the data element is required, for example, data element 1/1 needs to be completed for categories: C21, H1, H2, H3, H4, H5 & I1. For correlation purposes: Full customs declarations are referred to under the Union Customs Code as standard customs declarations Declaration categories H1, H3, H4 and H5 will be used for the Supplementary Declaration data sets. Appendix 21: Declaration Category Data Sets provides a detailed breakdown of the specific data elements needed for each declaration category. There is a separate table in Appendix 21 for each declaration category type, for example H1 data set. These tables also provide a cross reference from the new element data number to the previous SADH box reference number for correlation purposes. The data set tables in Appendix 21 also state whether the data element is mandatory in all cases, optional for the declarant or dependant on the circumstances being declared.

Types of Declaration Code Type of declaration Goods Arrived or not A Event Name Here 11/14/2018 Types of Declaration Code Type of declaration Goods Arrived or not A Standard customs declaration Goods arrived B Simplified declaration on occasional basis C Simplified declaration with regular use D Goods not arrived E F J C21 K Y Supplementary declaration covered by types C and F Z Supplementary declarations for Entry in Declarants Records Detailed explanation below extracted from The Data Element completion rules as requested by Caroline Wilkins SPEAKER NOTES: All Declaration Categories: The codes in the first column are used to indicate both the type of declaration and if the goods have arrived or not at the goods location. For electronic declarations the code used must be consistent with the CDS transaction being used. As I mentioned earlier For correlation purposes: Customs declarations are referred to under the Union Customs Code as Standard Customs declarations The Simplified Frontier Declarations (SFDs) used under Customs Freight Simplified Procedures is referred to under the Union Customs Code as a Simplified Declaration *The data set to be used for the B and E additional declaration types will be specified in the completion notes for the custom procedure being used. Unless specified in the D.E. 1/10 and 1/11 Procedure codes notes, types B and E may not be used. See Appendix 1: D.E. 1/10: Requested and Previous Procedure Codes and Appendix 2: D.E. 1/11: Additional Procedure Codes for more details. **For (C and F): I1 data requirements identified within these data element completion rules are for normal simplified declarations only. The specific data elements in the following pages will indicate where completion on an I1 is only mandatory for: Controlled goods being entered on a simplified declaration or A claim to a tariff quota is being made on the simplified declaration. Where the customs procedure being declared requires additional data to be provided, these will be over and above the data elements identified against the I1 data set indicated in the following pages. Again The specific completion rules detailed in the Appendix 1: D.E. 1/10: Requested and Previous Procedure Codes or Appendix 2: D.E. 1/11: Additional Procedure Codes completion notes should be followed. Where the Procedure Code requires the completion of the I1 as a standard H1 data set, the completion rules, as specified for the H1 declaration should be followed. ***Additional Declaration Types Y and Z must be completed using the appropriate data set for the H1, H3, H4 and H5 standard customs declaration data sets, dependent on the customs procedure being used. Notes: D.E. 1/2 must be left blank on paper declaration continuation sheets when used.

H1 Removal from Customs Warehouse using Entry In Declarants Records Event Name Here 11/14/2018 H1 Removal from Customs Warehouse using Entry In Declarants Records 1.EIDR updated 4.Use EIDR for Declaration information 5.Log into System 2.EIDR Records 3.Goods Released From Customs Warehouse 6.Following H1 Data Set Rules 7.Use software complete type Z Sup Dec SPEAKER NOTES We are Featuring a H1 category type supplementary declaration, because supplementary declarations are the first to go live on CDS. This slide shows an example of goods being released from customs warehouse following entry in the EIDR record. The supplementary declaration is usually transmitted after the goods have been released from the customs warehouse. This has to be by the fourth working day of the following month. The declarant will then: Log in through Government Gateway or through your software provider. Submit a supplementary declaration type Z, according to the Data Element completion rules for H1 Category, as per the new Volume 3 Tariff – Clarify HMRC Validates the information provided and will reject the declaration, if invalid data has been entered. If this is the case the information will have to be amended and the declaration resubmitted. The CDS system will then undertake Risk profiling and compare the information submitted to the Tariff & Business rules. Because the goods will have already been released, Assurance activity will take place at a later date. Full details of what data elements need to be completed for this declaration are in the new Volume 3 import Tariff. H1

H1 - Declaration Category Event Name Here 11/14/2018 H1 - Declaration Category Free Circulation VATE zero rated children’s clothing National Additional Code Data Element 6/17 C 32 Trade Fair Samples – duty relief F45 VAT Relief 3 Digit Additional Procedure Code Data Element 1/11 4071 Ex- Warehouse 4 Digit Procedure Code Data Element 1/10 61 09 10 00 T-shirts, singlets and other vests, knitted or crocheted 8 Digit Commodity Code Data Element 6/4 Kid’s T-Shirt Goods Description Data Element 6/8 EIDR Supplementary Declaration Data Element 1/2 SPEAKER NOTES: Now we will have a closer look at stages 6 & 7 from the previous slide: This example shows a Supplementary Declaration for goods, in this instance, children's T-shirts that have been released into Free Circulation, via EIDR. The Supplementary Declaration will then be completed using the Data elements for a H1 Declaration category. The Declarant or Agent will complete the declaration as follows: In D.E.1/2, the declarant or agent will enter Z, to indicate they are making an Entry into the Declarants Record, Supplementary Declaration. The Declarant will then enter the goods description in D.E.6/8 in this case T-shirts, followed by the 8 digit commodity code in D.E. 6/4 in this case 61 09 10 00 The Declarant will then complete D.E. 1/10 to show the 4 Digit Procedure code, which I explained earlier, in this case ‘4071’ Ex-Warehouse, followed in D.E. 1/11 by the relevant 3 digit Additional Procedure Codes. In this case C32 as the goods are being taken from the warehouse as trade fair samples, so duty relief is allowed and a 2nd 3 digit additional procedure code , F45 is entered for VAT relief. Finally the declarant will complete D.E.6/17 to enter the National Additional Code, VATE, to indicate that the goods are zero rated Children’s clothing.

CDS Help and Support for Customers Event Name Here 11/14/2018 CDS Help and Support for Customers Trade Test Support Dedicated support on customer migration There will be a new and expanded service support model for CDS users, in place from 2019, with ‘Self Help’ options such as: Accurate and accessible guidance. Digital tools e.g. Virtual Assistance and Webchat. Single Front Door’ leading to a multifunctional helpdesk. Telephone call menus directing customers to: NCH teams Help and advice support team for declarations Teams to evaluate and/or escalate or monitor technical faults Speaker Notes: This slide is self-explanatory, read through if time permits! ITDLO sessions can be offered to support Customs business and transformation programmes, including CDS.

Thank you for listening Listed below are some useful email addresses: To keep informed about CDS, please send your name and email address to communications.cds@hmrc.gsi.gov.uk to register for email updates If you have further questions please send an email to declarationservices.customs@hmrc.gsi.gov.uk