What Is the Customs Declaration Service?

In October 2022, HMRC replaced the long-standing Customs Handling of Import and Export Freight (CHIEF) system with the Customs Declaration Service (CDS).

This transition was essential to ensure UK customs processes aligned with the requirements set out in the Union Customs Code (UCC). However, for many cross-border eCommerce businesses, the change raised important questions around compliance, data requirements and day-to-day operations.

As a leading UK provider of cross-border parcel and logistics solutions, Whistl Parcels has worked closely with businesses navigating this transition. In this guide, we explain what the Customs Declaration Service is, how it differs from CHIEF, and what the change means for international traders.

What Is a Customs Declaration?

Whether you’re an individual traveller or a business shipping goods internationally, a customs declaration is required when importing or exporting goods between countries.

A customs declaration contains detailed information about the goods being transported, including their nature, value and origin. This information allows customs authorities to assess and control goods crossing their borders.

Customs declarations are essential because they help authorities to:

• Prevent goods that may be harmful to the economy or environment from entering a country

• Monitor goods leaving the country and restrict the export of prohibited or controlled items

Why Did CDS Replace CHIEF?

The CHIEF system was introduced in 1994 and, despite its longevity, predated the formation of HMRC itself. After nearly 30 years in operation, HMRC determined that adapting CHIEF to meet modern customs requirements would be impractical.

Instead, a new system was designed from the ground up. CDS was built to align with the Union Customs Code, providing a more scalable and future-proof platform to support evolving international trade.

How Is CDS Different from CHIEF?

While CDS and CHIEF serve the same core purpose, the way they operate differs significantly.

CDS has a modular and flexible design, making it better suited to handle increasing trade volumes and more complex data requirements. However, this added flexibility has introduced challenges for businesses accustomed to the simpler CHIEF structure.

Below are the most notable changes.

Changes to UK Trade Tariffs

One of the biggest differences between CHIEF and CDS is how customs procedure codes are structured.

There is no direct correlation between CHIEF Customs Procedure Codes (CPCs) and the CPCs and Additional Procedure Codes (APCs) used under CDS.

APCs allow traders to report one or multiple three-digit codes within a single CDS data element. This replaces the box-based approach used under CHIEF and provides greater transparency for customs authorities.

However, it also means businesses are now required to submit more detailed and comprehensive data sets.

For further guidance, traders should refer to UK Trade Tariff: Volume 3, which outlines updated procedure codes, data elements and declaration completion rules.

Changes to Country Codes

Since January 2022, the country code “EU” can no longer be used for the country of dispatch or origin.

Instead, traders must specify individual country codes, such as:

• FR for France

• DE for Germany

• ES for Spain

This applies to all declarations submitted through CDS.

Changes to Payment Processing

CDS has also introduced several changes to how customs declaration payments are handled.

• Businesses with Duty Deferment Accounts must set up new Direct Debit instructions for CDS

• Original Direct Debit details should still be retained, as they may be required for deferred declarations submitted under CHIEF

For traders previously using Frontier Declarations and Immediate Payments, CDS offers several alternative payment options, including:

• Cash account

• Deferment account

• General guarantee account

• Individual guarantee

• Personal debit or credit card

• Corporate debit or credit card

It’s also important to note that all Flexible Accounting System (FAS) accounts were closed following the introduction of CDS. Traders registering for CDS were automatically issued with a cash account.

How Does CDS Affect My Business?

HMRC has described CDS as a key step towards creating a “world-leading, fully digitised border” that supports UK businesses trading internationally.

In practice, however, the transition has been challenging for some businesses, particularly those unprepared for the increased data requirements and system changes.

If you haven’t yet registered for CDS, you’ll need the following information:

• Your Unique Taxpayer Reference (UTR)

• Your Government Gateway login details

• Your Economic Operator Registration and Identification (EORI) number

How Can Whistl Parcels Help?

At Whistl Parcels, we understand that changes to customs processes can feel complex and time-consuming — especially when your focus is on serving customers and growing your business.

When you partner with us, you’ll be supported by a dedicated account manager who can:

• Explain how CDS affects your shipments

• Support you with CDS registration

• Assist with transferring or setting up payment accounts

• Help ensure your documentation is compliant and accurate

To learn more about our cross-border parcel services, or for further guidance on CDS data requirements and updated commercial invoice rules, get in touch with Whistl Parcels today.