The New Customs Declaration Service (CDS) Event Name Here 5/27/2019 The New Customs Declaration Service (CDS) Navigating the CDS Tariff Caroline Wilkins HMRC

Overview UCC Alignment CDS Functionality & Making Tax digital Event Name Here 5/27/2019 Overview UCC Alignment CDS Functionality & Making Tax digital CDS Tariff & Tariff Navigation Terminology & other Key changes Additional Information required under CDS

Event Name Here 5/27/2019 Strategic Alignment UCC alignment – gives the trade facilitations that UK business wanted Customs end users can take full advantage of Making Tax Digital and Business Tax Account developments to improve customer experience Creation of component based architecture will allow UK systems to be more flexible and efficient

Customs Declaration Service A Comprehensive Trade Environment Event Name Here 5/27/2019 Customs Declaration Service A Comprehensive Trade Environment Apply for an EORI number File Customs Declarations, up Obtain Real time information and reports at no cost View Duty Deferment Accounts Upload Documents electronically Apply for Authorisations and Simplifications Integrated with other Government Systems Up to 999 items allowed per declaration CDS Log on through Gov.uk

CDS Tariff Publication Event Name Here 5/27/2019 CDS Tariff Publication Volume 3 Imports Volume 3 Exports Volume 3 Inventory Release Imports & Exports

Data Elements C88/SAD Box numbers will be replaced by Data Elements Event Name Here 5/27/2019 Data Elements C88/SAD Box numbers will be replaced by Data Elements UCC makes provision for 157 Data Elements More information will be required under CDS than CHIEF The Data Elements are split into 8 Data Groups.

8 Data Groups Group Description Data Element example Group 1 Event Name Here 8 Data Groups 5/27/2019 Group Description Data Element example Group 1 Message information (including procedure codes) 1/10 (Box 37) CPC Group 2 References of messages, documents, certificates, authorisations 2/3 (Box 44) Documents Produced Group 3 Parties 3/15 (Box 8) Importer details Group 4 Valuation information/Taxes 4/10 (Box 22) Invoice Currency Group 5 Dates/Times/Periods/Places/ Countries/Regions 5/8 (Box17a) Country of Destination Code Group 6 Goods identification 6/8 (Box31) Description of goods Group 7 Transport information (modes, means and equipment) 7/2 (Box 19) Container Group 8 Other data elements (statistical data, guarantees, tariff related data 8/1 (Box 39) Quota number

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Declaration Categories Event Name Here 5/27/2019 Declaration Categories Declaration Category Declaration Title Requested Procedure Codes(CPC’s) (Digits 1 and 2) H1 Declaration for release for free circulation or end-use 01, 07, 40, 42, 44, 61 H2 Declaration for customs warehousing 71 H3 Declaration for temporary admission 53 H4 Declaration for inward processing 51 H5 Declaration for goods from the special fiscal territories 40, 42, 61 I1 Import Simplified Declaration 01, 07, 40, 42, 44, 51, 53, 61, 71 C21 Inventory Release

Types of Declaration Code Goods Arrived or not Type of declaration Event Name Here 5/27/2019 Types of Declaration Code D.E 1/2 (Box 1) 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

Appendix 21a – Declaration Category Data Sets H1 Event Name Here 5/27/2019 Appendix 21a – Declaration Category Data Sets H1 SAD Box No. D.E No. Data Element (D.E) name Symbol Note 1 1/1 Declaration type A Y   2 1/2 Additional Declaration type 1/3 Transit Declaration/Proof of customs status type 1/4 Forms 1/5 Loading lists 32 1/6 Goods item number X 1/7 Specific circumstance indicator 54 1/8 Signature/Authentication D Only mandatory for a paper declaration 5 1/9 Total number of items 37 1/10 Procedure 1/11 Additional Procedure 40 2/1 Simplified declaration/Previous documents X, Y 44 2/2 Additional information [7] 2/3 Documents produced, certificates and authorisations, additional references. 2/4 Reference number/UCR C  N/A 2/5 LRN Symbol Symbols in the cells - Symbol description A Mandatory: data required by every Member State or data for which the UK has opted to mandate as always required C Optional for economic operators: data that economic operators may decide to supply D Dependant on Customs declaration scenario e.g. Procedure Code, Method of Payment etc. X Data element required at the item level of the declaration of goods. The information entered at the item level of goods is valid only for the items of goods concerned Y Data element required at the header level of the declaration of goods. The information entered at the header level is valid for all declared items of goods

Commodity Codes Data Element 6/14 Data Element 6/15

Commodity Codes Data Element 6/16 TARIC Additional Code Event Name Here 5/27/2019 Commodity Codes Data Element 6/16 TARIC Additional Code e.g. Anti Dumping Duty, Common Agricultural Policy Data Element 6/17 National Additional Code. e.g. VATE = VAT Exempt duty rate

3 Digit Additional Procedure Event Name Here 5/27/2019 CPC Changes Characters/Digits 5-7of old CPC Additional procedure code up to 99 Additional Procedure Codes per item C07 Claiming Low Value good Duty relief F45 VAT Relief 3 Digit Additional Procedure Code Data Element 1/11 Digits 1 and 2 –The requested procedure e.g. free circulation, 40 (first and second digit of the old CPC) Digits 3 and 4 –The previous procedure e.g. the procedure they are coming out of i.e. customs warehousing 71 (the 3rd and 4th digits of the old CPC) 40 71 Ex- Warehouse 4 Digit Procedure Code Data Element 1/10

Navigating CDS Volume 3 – Import Declaration Completion Guide Event Name Here 5/27/2019 Navigating CDS Volume 3 – Import Declaration Completion Guide 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

Import Declaration Completion Guide Event Name Here 5/27/2019 Import Declaration Completion Guide Declaration Categories Field format No. of occurrences at header level No. of occurrences at item level C21, H1, H2, H3, H4, H5 & I1 a2 1x 99x Which types of declaration require the completion of the data element Declaration Categories The number and type of characters allowed in the field Field format The number of times the data element may be used at header level Number of occurrences at header level The number of times the data element may be used at item level Number of occurrences at item level

Event Name Here 5/27/2019 CDS redefines commercial relationships & additional information is required Consignor/ Exporter (SAD BOX 2) Importer/ Consignee (SAD BOX 8) Declarant (SAD BOX 14) D.E Group 3 People

Box 2: Consignor/Exporter Event Name Here 5/27/2019 Box 2: Consignor/Exporter Data Element D.E Description Key Updates 3/1 Exporter DE 3/1 is used to declare the Exporter’s name and address and postcode. Enter the full name and address of the last seller of the goods prior to their importation into the Union 3/2 Exporter Identification Number Where held, enter the EORI number of the last seller of the goods prior to their importation into the Union Where a valid EORI number quoted in DE 3/2 is recognised by CDS then DE 3/1 should not be completed. 3/24 Seller name and address Enter the full name and address of the Seller, including the postcode This data element is only completed where the Seller is different from the exporter’s details declared in DE 3/1 or 3/2, or both 3/25 Seller Identification Number The Seller is the last known entity who sold the goods or agreed for them to be sold to the buyer.

Box 8: Importer/Consignee Event Name Here 5/27/2019 Box 8: Importer/Consignee Data Element D.E Description Key Updates 3/15 Importer name and address DE 3/15 is used to declare the importer’s name, address and postcode The importer can only be declared once at the header level 3/16 Importer Identification Number Enter the identification number (EORI) of the importer in DE 3/16. The full name and address is to be entered in DE 3/15 if the importer does not have an EORI number. 3/26 Buyer name and address DE 3/26 is used to declare the Buyer’s name, address and postcode. This data element should only be completed where a recognised EORI number is not held and declared in DE 3/27. 3/27 Buyer Identification Number This data element is only completed where the Buyer is different from the Importer declared in DE 3/15 or 3/16. ‘Buyer’ is the last known entity the goods are sold or agreed to be sold to

Box 14: Declarant/Representative Event Name Here 5/27/2019 Box 14: Declarant/Representative Data Element D.E Description Key Updates 3/17 Declarant name and address DE 3/17 is used to declare the Declarant’s name and address and postcode. This data element can only be declared once at the header level 3/18 Declarant Identification Number Enter the identification number (EORI) of the importer in DE 3/18. Where a valid EORI number is provided in DE 3/18, the Declarant’s name and address does not need to be completed in DE 3/17. 3/19 Representative Name and address This data element and 3/20 must be completed with the details of the representative who will be responsible for the customs formalities where this differs from the Declarant details declared in DE 3/17 or DE 3/18, or both 3/20 Representative identification number Enter the identification number (EORI) of the representative ‘Buyer’ is the last known entity the goods are sold or agreed to be sold to 3/21 Representative Status Code This data element must be completed, other than in the case of self-representation. Enter one of the following codes: Code Representation Direct representation Indirect representation

Valuation Information required on the CDS Declaration Event Name Here 5/27/2019 Valuation Information required on the CDS Declaration Customs value will be embedded within the CDS Declaration This is not just when the value exceeds a certain limit MSS information currently includes information such as currency, total amount of invoice, CDS declarations will now include further information such as buyer, seller, delivery terms, valuation indicators as well as additions and deductions Delivery terms (Box 20) code must be provided for declarations using valuation method 1 Some of the additional information were usually obtained as part of an assurance audit will now be embedded with the declarations

Valuation Indicators Party relationship between the buyer and seller Event Name Here 12/02/2007 Valuation Indicators Party relationship between the buyer and seller Restrictions as to disposal or use of the goods by the buyer Sale or price subject to some conditions Are any Royalties and licence fees related to the imported goods payable and is sale subject to arrangement accruing proceeds to the seller. All royalty payments/license fees made as a condition of sale will be dutiable irrespective of the relationship between the manufacturer and third party licensor Project Name: HMRC v1.8

Valuation Additions Deductions Event Name Here 12/02/2007 Valuation Additions Deductions Costs incurred by the buyer Goods and services supplied by the buyer free of charge or at reduced Royalties & licences fees Proceeds of any subsequent resale, disposal or use accruing to the seller Cost of delivery to point of introduction Costs of transport after arrival at place of destination Charges for construction, erection etc undertaken after importation Any other charges Import duties or other charges payable in the union by reason of the import or sale of the goods Value declared = Net price in currency of invoice (price paid or payable) + Additions – Deductions Project Name: HMRC v1.8

Appendix 9: D.E. 4/8: Changes to Method of Payment Codes Event Name Here 5/27/2019 Appendix 9: D.E. 4/8: Changes to Method of Payment Codes MOP Code to be declared in D.E. 4/8 Definition of MOP Code A Immediate payment in cash B Immediate payment by corporate credit card C Immediate payment by cheque D Not currently in use E Deferred payment (deferment account) G Postponed payment: VAT system (Article 211 of EU Directive 2006/112/EC) H Immediate payment by electronic credit transfer (faster payment, CHAPS, BACS) M Security Deposit: immediate payment (cash deposit) N Security Deposit: immediate payment (CDS Cash Account deposit) O Export refunds and/ or CAP licence, security held by RPA P Immediate payment from CDS Cash Account R Security Deposit: deferred payment (deferment account deposit) S Importers general guarantee account (Importer self- representation) T Agent’s general guarantee account U Security: Importers guarantee account – standing authority (Direct/indirect representation) V Security: Importers guarantee account – individual/specific authority (Direct/ indirect representation) X SASP Z Importers individual guarantee (e.g. C&E 250)

Useful Information GOV.UK Event Name Here 5/27/2019 Useful Information GOV.UK How to prepare for CDS - guidance for what businesses need to do to prepare https://www.gov.uk/guidance/how-hmrc-will-introduce-the-customs- declaration-service Navigating CDS Volume 3 Import Tariff https://www.gov.uk/guidance/how-to-navigate-the-customs- declaration-service-cds-tariff-declaration-completion-rules Sign up for Import and Export Email alerts https://www.gov.uk/topic/business-tax/import-export