Discover how the new Customs Declaration Service (CDS) can streamline your security deposit claims process, improving efficiency and reducing errors.
What Questions I Will Answer in this Blog:
How can customs agents and traders efficiently claim back security deposits for duties and VAT paid?
What are the benefits of the new digital service for claiming back import charges?
How does the new Customs Declaration Service (CDS) improve business efficiency?
Introduction
As customs professionals, we’re always seeking ways to streamline our operations and make the best use of the tools at our disposal. One of the most significant recent developments for traders and customs agents is expanding the Customs Declaration Service (CDS), which now includes the ability to claim back security deposits, customs duty, and VAT paid during the importation process. This update is vital because it allows for quicker approvals, error reduction, and faster access to funds. In this post, I’ll walk you through how this new system works and how it can help you and your business.
"In customs, speed and accuracy are not just beneficial—they're essential. The new CDS features will give you both, ensuring smoother operations and faster reimbursement for duties and VAT." — Arne Mielken, Managing Director, Customs Manager Ltd
Abbreviations I Use in this Blog
To make things easier, I will define a few abbreviations that I’ll be using throughout this post:
CDS: Customs Declaration Service
MRN: Movement Reference Number
C285: The form used for claiming overpaid import charges
C&E1179: The form used when claiming charges for rejected goods
What is the New CDS Service and How Does it Work?
The new digital service provided by the Customs Declaration Service (CDS) allows businesses to claim back security deposits, including customs duties and VAT, paid when importing goods. This service is designed to improve efficiency for traders and customs agents by offering a fast, user-friendly platform for managing claims.
Security deposits can be a significant burden for many businesses, but with this service, the process of claiming these back has been simplified. Here’s a breakdown of the key features that can directly benefit you as a customs agent, customs professional, or import/export specialist:
How it Benefits Customs Agents and Traders:
Faster Approvals and Payments: With the new digital system, your claims are processed more efficiently, reducing the waiting time for approval and payment.
Claiming Made Simple: The average time to make a claim is just 16 minutes. This is because the system automatically checks for errors as you go, helping to ensure your claim is accurate and complete before submission.
Pre-Populated Data: By entering your MRN (Movement Reference Number), the system pulls relevant data from the HMRC database, ensuring that the information is accurate and saving you time.
Real-Time Status Updates: You can check the status of your claim and view previous claims without needing to email or submit physical documentation. This makes tracking your claims easier and more transparent.
What Can You Claim Back?
In addition to claiming security deposits, the new CDS service allows you to reclaim other types of import charges, including:
Overpaid Import Charges (referred to as the ‘C285’ form): If you’ve overpaid duties on a consignment, you can quickly claim this back.
Charges for Rejected Goods (using the ‘C&E1179’ form): If goods were rejected during customs clearance, you can claim back the import charges associated with those goods.
These claims are processed faster and without the need for traditional paper forms. This improvement significantly reduces the administrative burden on customs professionals like you, allowing you to focus more on your core tasks.
Did you know? We are customs agents and lodge customs declarations in to CDS. We can help you, too, if you are trading with the UK (including Northern Ireland) or the EU. Find out more: https://www.customsmanager.org/customs-agent
How Does the CDS Help with Error Reduction?
This new system's error-reduction capability could be used by customs agents. Traditionally, manual errors during the claim process could delay payments and create additional administrative headaches. The CDS service minimises this risk by offering real-time error checks.
By guiding you through the claim process and automatically checking for completeness, the system ensures you submit a correct and complete claim every time. The built-in features to prevent mistakes will save time and reduce the need for resubmissions, providing peace of mind for customs professionals.
Is the Service Really Fast and Efficient?
One of the most attractive features of the CDS service is its speed. According to the HMRC, 16 minutes is the average time a customer takes to complete a claim. That’s a major improvement over the traditional system, where paperwork could sit in limbo for weeks before being processed.
Moreover, the pre-population of data from the HMRC database helps speed up the process and reduce human error, which makes it much easier for you to submit accurate claims. In the fast-paced world of international trade, this efficiency is invaluable.
Arne’s Takeaway:
The new Customs Declaration Service is not just another digital tool—it's a game-changer for customs professionals, import/export specialists, and customs agents. It simplifies the process of claiming back security deposits, reduces errors, and speeds up the entire claim process. This is exactly the kind of efficiency that helps businesses thrive in an increasingly competitive market. I recommend you take full advantage of this service, explore its features, and implement it in your processes.
Expert Recommendations:
Take Advantage of the Early Access: If you're eligible, be sure to take advantage of the early access and provide feedback to improve the service.
Familiarise Yourself with the Pre-Population Feature: This tool will save you a lot of time and reduce the chance of errors.
Track Your Claims Online: Monitor the status of your claims online to ensure smooth operation.
Explore Other Claim Options: This system also allows you to claim overpaid import charges and charges for rejected goods.
Fancy a Call?
I offer comprehensive support for customs clearance and customs duty claims. I would love to talk to you about your questions and challenges with the Customs Declaration Service. I offer a free expert call of up to one hour, which you can book seamlessly here.
I provide public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. Our membership services include Weekly customs trade intelligence and updates. I also offer UK import and export customs clearance services. For more details on services, visit www.customsmanager.org.
Sources That I Base Our Information in This Blog On
HMRC Digital Service Updates
Gov.UK
Where To Find More Information On the Topic
To dive deeper into customs duty claims and related legal frameworks, members can:
Subscribe to The Customs Watch – our weekly consolidation of updates to law, guidance, and policy.
Visit our Knowledge Hub Content Library and read more on www.customsmanager.info, where I have a wealth of information on customs clearance and import/export duties.
Members can search our library for any topic here: https://www.customsmanager.info/search-results
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Learn With Me
I and my team offer extensive training on customs clearance, customs duty, and CDS. Please visit www.customsmanager.org/events to explore the course plan and book one of the following public courses.
About the Author
I am a customs, export control, and sanctions expert with over 20 years of experience. I have worked as executive director for many years in Big 4 Consultancy, global trade management technology companies, and many international trade and export UK and EU trade associations. I am proud to be a Freeman of the City of London and a Liveryman of the Worshipful Company of World Traders, and I am a member of many customs, export control & sanctions associations, like the Customs Practitioners Group (CPG), the UK’s Association for International Trade (ACITA), and the Europäisches Forum für Außenwirtschaft e.V. (EFA).
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You can learn more about me here and connect with me on LinkedIn. I also run a channel where you can get free tips and advice on customs, export controls, and sanctions.
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Disclaimer
The information provided in this blog post is for educational purposes only and should not be construed as legal advice. It is recommended that you consult with legal professionals, specialists, or specific compliance requirements and guidance. Book a free call with our expert at Customs Manager Ltd.
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