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Navigating and adapting to the CDS tariff
As indicated in last month’s issue, Members should expect a number of changes related to CDS implementation in 2020. CDS, with its new IT architecture, will be a major upgrade compared with CHIEF, which runs on a platform dating from the late 80s. However, the end-user will in most cases not be able to see the difference between the old and new underpinning IT. What the end-user will experience immediately
is the shift from the old CHIEF customs tariff and SAD based customs declaration to a new format governed by the CDS tariff and the UCC regulations. Volume 2 of the tariff will remain largely
unchanged compared with the current product. It is, however, worth pointing out that it will only be available in electronic format and over time it may be subject to various changes linked to the UK’s departure from the EU. The main changes will apply to Volume 3 of the
tariff, which has been structured differently to the CHIEF tariff. This new structure in general reflects the main differences between CHIEF and CDS. The first version of the CDS tariff was released
in 2018 and has been updated on a number of occasions. Clearance agents and customs professionals used to the CHIEF tariff will notice the difference between the two documents immediately. The CHIEF is built around the Single
Administrative Document (SAD) and the 54 SAD boxes. CDS moves away from the old SAD and replaces the 54 boxes with 157 data elements (D/E) organised in eight groups and described in the EU Data Model. Of those 157 D/Es, 78 may be used in import declarations and 65 used in export declarations. Compared with the SAD, these data element groups do not align to a declaration in the same way as the old legislation (header then items) and although correlation tables will be available, Members will notice a number of differences between the two set-ups. Another significant difference Members will
notice is in the customs procedure build-up section which focuses on the first four digits of the CPC (requested procedure and previous procedure) leaving the last three characters of the Union or national additional procedure codes separately. This goes in line with how the system
will operate and how the use of CPCs will change in CDS, which will be addressed in a separate document as this is one of the most significant differences between the old and the new system. But not all is new. Users will encounter the all-
to-familiar additional information (AI) codes and document codes well known from the CHIEF tariff. There will be references to public notices and other guidance available on
gov.uk, which should make declaration completion easier. We also understand that a guide on how to use the new tariff will be available to users before the open migration and we will keep Members updated on this. CDS will without doubt change the way we do
customs declarations and in a way the new tariff is a reflection of the change to come. The new will mix with the old – and Members and their customers will need to adapt to it. In the coming months, the Secretariat will
focus on more specific elements of the new system such as customs procedure codes or changes to the valuation section of the declaration.
By sea – Hague Visby rules (2 SDR): £2.12 per kg £709.95 per package
By road – CMR (8.33 SDR): £8.82 per kg
By air –Montreal Convention (22 SDR): £23.30 per kg
February 2020
By air –Warsaw Convention (17 SDR): £18.00 per kg
BIFA STC: (2 SDR): £2.12 per kg
(The SDR rate on 17 January 2020, according to the IMF website, was 1.05892)
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