BIFAlink


Policy & Compliance


www.bifa.org


SAD Box 37 and codes in CDS under DE 1/10 and DE 1/11


In CDS, each declared item line can have up to


In the previous article we looked at how the Customs Declaration Service (CDS) makes use of the tariff heading in its calculation of duties and taxes. In this article we will continue analysing the individual elements of the mechanism responsible for the calculation of the monies due, as well as looking into the structure of the Customs Procedure Code in CDS and how this may differ from what is used today


CHIEF users are certainly familiar with SAD Box 37, which identifies the customs procedure code that is used for imported or exported goods. The Customs Procedure Code (CPC), in


principle, can be broken down into three constituent parts. The first two digits identify the community code, which specifies the main customs procedure – eg home use, removal from warehouse, entry to free zone, etc. Digits three and four identify the previous procedure – eg 00, no procedure before; 71, customs warehousing, etc. The last three digits of the now seven-digit code identify the additional information added to the procedure – eg C30, samples of negligible value. CHIEF allows only one seven-character procedure code per item and CHIEF customs procedures codes are fixed and as such cannot be amended. All reliefs, restrictions, etc, are wrapped up in that one code whose use is then


16


specifically described in the tariff. CDS will contain the information declared in


Box 37 under two Data Elements (DE): • DE 1/10 – a four-digit Requested and Previous Procedure Code. For instance: 4000, home use – no previous procedure; 4051, release to free circulation after IP;


• DE 1/11 – a three-digit Additional Procedure Code, eg C07 duty relief.


Differences Most four-digit codes used in DE 1/10 are the same under CDS as in CHIEF, users of which will be familiar with them. There will be some differences, however. For instance, end use will move to 44 series and not 40 series, as in CHIEF. What will distinguish CDS from CHIEF is how it


uses the additional codes declared under DE 1/11.


99 additional codes and more than one code may be required to achieve the same result as a single seven-digit code in CHIEF. The three-digit codes in DE 1/11 will always have a single meaning that does not change, regardless of which four-digit DE 1/10 codes they are used with. For instance, F45 will mean VAT relief and VAT only. C07 – duty relief for low-value consignments will only mean duty relief. In effect, in order to arrive at the same outcome currently achieved in CHIEF simply using CPC 4000 C07, a CDS user will need to use two additional codes under DE 1/11 C07 and F45.


Combinations of codes The tariff will specify which CPCs will be linked to which types of declarations and it will also specify which combinations of codes are allowed. Again, similar to additional tariff codes, these


additional procedure codes will constitute an integral part of CDS and will allow the system to calculate the correct amounts of duty and other import taxes, and tax lines should not be required in most cases. The way Requested and Additional procedure


codes are used will certainly distinguish CDS from the legacy system and users will need to adjust to this new system. Will it confuse us at first? Certainly, but the


confusion will not last long and we will re-adjust quickly.


August 2020


Courtesy of the Port of Felixstowe


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20