The Customs Declaration Service (CDS) is going to bring about some changes for import declarations into the UK from October the 1st. One of the most important changes to consider is the payment methods that will be available to you and how existing ones have changed. The first major difference is the fact that the payment method cannot be changed once the entry has been accepted. Below we explore some of the methods of payment that will be available on CDS.
Cash Accounts
One big change with CDS is the replacement of the Flexible Accounting System (FAS) used in CHIEF with cash accounts. If you previously paid duties and/or VAT using FAS you should be looking into how to use your cash account to pay duties and VAT. All traders who subscribe to CDS will automatically be given a cash account to pay funds into. If you intend to allow someone else to use your cash account for entries then you will also have to give them authority to do so in CDS. More information on cash accounts for CDS can be found in the below link.
https://www.gov.uk/guidance/use-a-cash-account-for-cds-declarations
Duty deferment accounts
Duty deferment accounts will still be used with CDS and it is important to make sure you have set-up a new direct debit for your CDS deferment account. If your customs agent uses your deferment for your customs entries, you will also need to authorize them to use your deferment account on CDS by going onto your Customs Financial Dashboard and clicking “Manage Your Account Authorities”. From here you can enter the agents EORI and then choose which accounts you would like to add authority to i.e., your cash account or duty deferment.
CDS also gives you the option to make top-up payments to your deferment account. If your monthly deferment limit has been reached you can make a top-up payment to increase your available balance and therefore, continue to use your deferment to ensure there is no delay in the clearance process. The below link gives guidance on this.
https://www.gov.uk/guidance/top-up-your-duty-deferment-account-using-the-customs-declaration-service
Immediate payments
Another option to pay duties and VAT on import is immediate payment. Once you have made your payment this will be received by HMRC on the same or next day if certain payment options are used i.e., paying by credit or debit card. Please note if you decide to pay by Bacs (Bankers Automated Clearing System), this could take up to 3 working days. More information on this is in the below link.
https://www.gov.uk/guidance/pay-for-imports-declared-using-the-customs-declaration-service
Pro Customs Solutions can help with your customs entries with links to all the major UK Ports. If you require our services and have questions about the above or any other customs related issues, please feel free to contact us on the below.
