HMRC delay CDS export start

The deadline for importers to enrol in the CDS was extended in October and now HMRC has extended the deadline for exporters to move across to the UK’s new digital customs platform from April to November 2023.

HMRC announced that the extension will provide more time for delivering and testing critical functionality, and for traders to register for CDS, but trade press reports suggest that the decision was tied to continual outages and messaging faults which prompted HMRC to extend its September deadline for CDS imports.

Sources claimed that industry was not ready for the switch to CDS and that software houses had not been afforded adequate time to ensure the system was ready and able to handle the scale of declarations coming its way, with reports that HMRC was addressing more than 60 issues of CDS applying incorrect VAT rates and a significant messaging fault.

The deadline for importers to enrol in the CDS was extended by a month in October, but the British Chambers of Commerce (BCC) has said there was no clarity from HMRC about what will happen after the end of November.

Data from the British Chambers of Commerce showed that more than 4,700 businesses had registered for CDS and made import declarations on the new system, but 1,287 had yet to sign up to it and there are fears that the issue may go much deeper, as many of these firms will be brokers for hundreds of others.

CDS has been in development since before the UK voted to leave the EU in 2016 and was originally intended to launch before Britain left the EU, replacing the ageing Customs Handling of Import and Export Freight (Chief), but it has been beset with delays and has been rolling out for importers and exporters since 2018.

If you have not registered for CDS, or are uncertain how it applies to you, we can guide you through the changes and actions required. Contact us now for further information, or to discuss your situation.