Customs Declaration Service deadline extended for exporters

Customer Service Declaration deadline extended | John K. Philips
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Customs Declaration Service deadline extended for exporters

In December 2022, HMRC announced that exporters will have extra time to move over to the new Customs Declaration Service (CDS). The original deadline has been extended by 8 months, allowing businesses more time to prepare and for the government to test the stability of the system.

Registering for the Customs Declaration Service, authorising your Economic Operators Registration and Identification (EORI) number, and preparing for the new methods of submitting export declarations is still required by November 2023. You can sign up for CDS email updates on the government website to receive further information about CDS changes for exports.

What the new CDS deadline means for exporters

The old Customs Handling of Import and Export Freight (CHIEF) system closed to import declarations in October 2022, and was due to close to export declarations on 31st March 2023. After the government’s announcement, this won’t be happening until 30th November 2023.

This means that, while using the CDS has been mandatory for all imports since last October, it won’t be mandatory for exports until December this year. If they wish, exporters can continue reporting through CHIEF until the end of November.

However, it’s not advisable to leave the switchover to the last minute just because the deadline has been pushed back several months. It’s best to use this time to get your software and operations in line with the new requirements in advance.

If you’re importing goods into the UK to be exported again, you should already be registered and reporting through the CDS, though you’ll still be able to use CHIEF for exports if necessary. If your business only exports from the UK, then you might not be registered for CDS yet – but don’t put it off until November, as it could put your ability to export goods at risk.

How bonded warehouses can benefit exporters

Bringing goods into the UK from another country typically requires payment of customs duties and taxes. However, a bonded warehouse allows importers to store goods in a temporary duty-free state until they’re ready to be moved into circulation in the UK or re-exported.

Depending on the type of goods, importers can store them in a bonded warehouse for up to five years or more, deferring the associated customs taxes as long as they need to. This allows businesses to manage cash flows and plan for tax payments much more effectively.

While in bonded storage, it’s possible to reprocess the imported goods – such as repackaging them – to prepare them for export from the UK to another country. Since the goods never enter the UK market, it’s possible to avoid paying customs duties on them through bonded warehousing.

Bonded warehouses are especially useful for exports due to their proximity to ports, allowing you to efficiently ship goods back out via sea or air freight. At John K. Philips, we’re conveniently located between Liverpool and Manchester, providing access to major sea and airports in the North West.

If you’re an importer or exporter who would benefit from bonded warehouse services in England, why not contact us today? Call 01744 751 000 or fill out our contact form to find out how John K. Philips can help your business in 2023.

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