1. Customs Declaration Service (CDS)
ACITA Southern Region Event
26th July 2018
| Official | Customs Declaration Service / Version 1.0

2. Event Name Here
11/30/2018
What changes with CDS?

3. Technical - From EDIFACT to XML
Event Name Here
11/30/2018
What changes with CDS?
Technical - From EDIFACT to XML

4. What changes with CDS? - Technical
Event Name Here
11/30/2018
What changes with CDS? - Technical
No option
Communication via internet APIs –sending a message directly to an IP address
Responses can be pushed or pulled
Access via CSP doesn’t change
No HCI
Some CSPs will present a screen (built on API)
Some will tell you to use an HMRC Digital service (like NES)
Access Security
via OAuth2 tokens (see later)
CSP can still use the Badge

5. What changes with CDS? - Technical
Event Name Here
11/30/2018
What changes with CDS? - Technical
Receiving reports – Digital Dashboard
MSS, Duty Deferment Statements, VAT Certs
Receiving reports – E2s etc
No paper
No “reports”, only “notification messages”
Any “reports” will be created by your software, as needed
No HCI
Some CSPs will present a screen (built on HMRC APIs)
Some CSPs will tell you to use an HMRC Digital service (like NES)

6. CDS Tariff publication
Event Name Here
11/30/2018
CDS Tariff publication
Declaration completion guidelines and rules published in the Tariff
Volume 3 - Imports
Volume 3 - Exports
Volume 3 - Imports Inventory Release
Volume 3 - Exports Inventory Release
CDS Tariff Manual
Import Tariff – March 18. Contains all Imports CPC codes except those for inventory linking.
Printed version August. Searchable PDF version available now.
Exports Tariff and Inventory Linking – limited draft since early July Remaining CPCs.
Tariff includes CHIEF/CDS code mappings.

7. Changes introduced by CDS Tariff
Event Name Here
11/30/2018
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

8. Changes introduced by CDS Tariff
Event Name Here
11/30/2018
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

9. Reading the CDS Tariff - Import Declaration Completion Guide
Event Name Here
11/30/2018
Reading the CDS Tariff - 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

10. Declaration Categories
Event Name Here
11/30/2018
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

11. What changes with CDS? - Business
Event Name Here
11/30/2018
What changes with CDS? - Business
“Data Elements” not “SAD Box numbers”
The data elements are in 8 groups;
Group
Description 1
Message Information (including Procedure Codes) 2
References of Messages, Document, Certificates and Authorisations 3
Parties 4
Valuation Information and Taxes 5
Dates, Times, Periods, Places, Countries and Regions 6
Goods Identification 7
Transport Information (Modes, Means and Equipment) 8
Other Data Elements (Statistical Data, Guarantees and Tariff Related Data)

12. H1 Removal from Customs Warehouse using Entry In Declarants Records
Event Name Here
11/30/2018
Follow UK Trade Tariff, CDS Volume 3 Import Declaration Completion Guide
H1 Removal from Customs Warehouse using Entry In Declarants Records
Group 1
D.E. 1/6 Goods Item number (SAD box 32)
D.E 1/9 Total number items (SAD box 5)
Group 2
D.E. 2/1 Simplified Declarations/ Previous documents (SAD box 40)
D.E. 2/5 LRN (SAD box N/A)
D.E.2/7 Identification of warehouse SAD box 49)
Group 3
D.E. 3/16 Import ID number (SAD box 8)
D.E.3/17 Declarant (SAD box 14)
D.E. 3/39 Holder of the authorisation ID number (SAD box 44)
Group 4
D.E. 4/1 Delivery Terms (SAD box 20)
D.E. 4/8 Calculations of taxes- MOP (SAD box 47)
D.E. 4/10 Invoice Currency (SAD box 22(1))
D.E. 4/13 Valuation Indicators (SAD box 45)
D.E. 4/14 Item Price Amount (SAD box 42)
D.E. 4/16 Valuation Method (SAD box 43)
D.E. 4/17 Preference (SAD box 36)
Group 5
D.E. 5/8 Country of Destination Code (SAD box 17a)
D.E. 5/14 Country of dispatch (SAD box 15a)
D.E 5/15 Country of origin code (SAD box 34a)
D.E 5/23 Location of goods (SAD box 30)
Group 6
D.E 6/1 Net Mass (KG) (SAD box 38)
D.E 6/5 Gross Mass (KG) (SAD box 35)
D.E 6/ 9 Type of packages (SAD box 31)
D.E 6/10 Number of packages (SAD box 31)
D.E 6/11 Shipping Marks (SAD box 31)
D.E 6/18 Total Packages (SAD box 6)
Group 7
D.E 7/2 Container (SAD box 19)
D.E 7/4 Mode of transport at Border (SAD box 25)
D.E 7/10 Container identification number (SAD box 31)
D.E 7/15 Nationality of active means of transport crossing the border (SAD box 31(2))
Group 8
D.E 8/2 Guarantee Type (SAD box 52)
D.E 8/3 Guarantee Reference Number (SAD box 52)
D.E 8/5 Nature of transaction (SAD box 24)

13. Customs Procedure Codes now in two parts
Event Name Here
11/30/2018
What changes with CDS?
Customs Procedure Codes now in two parts
D/E 1/ digit Procedure Code, plus
D/E 1/11 - (multiple) 3 character Additional Codes

14. Customs Procedure Codes now in two parts
Event Name Here
11/30/2018
What changes with CDS?
Customs Procedure Codes now in two parts
D/E 1/ digit Procedure Code, plus
D/E 1/11 - (multiple) 3 character Additional Codes

15. More UCC changes What changes with CDS?
Event Name Here
11/30/2018
What changes with CDS?
More UCC changes
Methods of Payment code harmonisation
Validation of authorisations, guarantees, BTIs etc
More “Parties” (buyer, seller etc)
Incoterms, Nature of Transaction codes, Valuation codes
EIDR is simpler – can move goods under warehouse CPC – so SFDs needed less often

16. FEC checks What changes with CDS?
Event Name Here
11/30/2018
What changes with CDS?
FEC checks
Can now do TARIC checks (Q1/Q2 ratio, check Quantity matches Comm code restrictions)
Other FEC checks are now “non blocking”
Declaration clears after a 10-minute “dwell time”
Change in approach to post-clearance compliance
Can do more in future – eg behavioural analysis

17. Exports changes for CDS
Event Name Here
12/02/2007
Exports changes for CDS
Some key functional areas of CDS exports will 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
Project Name: HMRC v1.8

18. International Trade Development Liaison Officer - ITDLOs
ITDLO Presentation
30/11/2018
International Trade Development Liaison Officer - ITDLOs
National ITDLO Manager – East Croydon
Currently Three ITDLOs – Bristol, Glasgow and Leeds Agreement to increase from three to thirteen in the next three years. One in each Regional Centre Location.
Main role:
To promote new developments within customs and international trade to businesses and colleagues
“New developments” include changes to existing customs law such as the UCC and trade preparation for CDS and EU Exit
The ITDLO’s
Are currently working on a Special Procedures presentation - available soon
Heavily involved with CDS delivery including writing and delivering  presentations
We have been promoting and explaining about AEO since it started in  
And of course once the UK has an agreement (or not) with the EU, the ITDLOs will be explaining this  to Importers and Exporters .
UCC Update

19. Event Name Here
11/30/2018
CDS - Migration

20. CDS Phased Delivery & Migration Overview
Event Name Here
12/02/2007
CDS Phased Delivery & Migration Overview
Commencing in August 2018 there will be a phased migration of traders from CHIEF to CDS, aligned to the planned delivery of CDS functionality. Migration tranches
Customers will be migrated in ‘tranches’ which will be aligned to functional releases. Tranches are groups of traders.
Functional releases
Release 1 – 12th August 18
Scope: Supplementary declaration functionality (Out of Customs Warehouse / Into Free Circulation - Type Z and Y).
Specific criteria applies eg deferred payment only, on single DAN; only UK warehouses; no quotas, suspensions or reliefs.
Customs Declaration Service |
Project Name: HMRC v1.8

21. CDS Phased Delivery & Migration Overview
Event Name Here
12/02/2007
CDS Phased Delivery & Migration Overview
Functional 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.
“ Customs Declaration Service |
Project Name: HMRC v1.8

22. CDS Phased Delivery & Migration Overview
Event Name Here
12/02/2007
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
“ Customs Declaration Service |
Project Name: HMRC v1.8

23. CDS Release 1 & 2 Data Migration
Event Name Here
12/02/2007
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.
Customs Declaration Service |
Project Name: HMRC v1.8

24. CDS - Digital Registration Process
Event Name Here
11/30/2018
CDS - Digital Registration Process

25. Digital registration to use CDS
Event Name Here
12/02/2007
Digital registration to use CDS
Before 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. Additional screens will be required if applying for EORI and CDS registration at the same time.
Customs Declaration Service |
Project Name: HMRC v1.8

26. Software Authorisation Steps
Event Name Here
12/02/2007
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
Customs Declaration Service |
Project Name: HMRC v1.8

27. Software Authorisation Steps – Points to Note
Event Name Here
12/02/2007
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
Customs Declaration Service |
Project Name: HMRC v1.8

28. Event Name Here
11/30/2018
CDS Contingency

29. CDS Contingency
HMRC has created a contingency programme under which additional resilience will be built into the delivery of, and the transition to, CDS.
The contingency programme is responsible for ensuring the existing CHIEF and other legacy declaration systems are scaled so that they are capable of managing the volume of declarations expected after the UK leaves the EU, to ensure that they remain a viable contingency solution beyond March 2019 if required. .

30. CDS Contingency The major elements of our contingency plans are: .
A carefully managed transition process between August 2018 and January 2019, where HMRC can flex the pace of transition to reflect service performance.
Dual running of CHIEF with CDS for some months, to ensure that HMRC can slow migration from CHIEF if CDS does not perform as expected.
We have developed a performance testing service, and are using it to identify to what capacity the CHIEF service can be scaled, with a target of 255m declarations. .

31. Border Systems Programme
Event Name Here
12/02/2007
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 visited some maritime and RORO ports with Border Delivery Group over the last few months and held an external stakeholder event on 12 July in London.
Project Name: HMRC v1.8

32. Questions ?