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Methods of Payment on the Customs Declaration Service

Updated: Aug 3, 2023

CHIEF is going to be closed soon as CDS

Methods of Payment on the Customs Declaration Service

Methods of Payment on the Customs Declaration Service

CHIEF is going to be closed soon as CDS

  1. is more resilient, reliable, mobile, cost-effective, and adaptable.

  2. is fully compliant with Union Customs Code (UCC) legislation and operates both the UK and EU Trade Tariffs.

  3. has the flexibility to grow in line with the Government’s ambitious trade plans to have the world’s most efficient customs system by 2025.

To get started with using Customs Declaration Service (CDS), it is necessary to understand the financial aspects such as the modes of payments under CDS. The various methods of payment under the CDS are:

  1. Corporate Credit Card/Cash Account

  2. Immediate payment in cash/by cheque/electronic credit transfer

  3. Postponed payment: VAT system (Article 211 of EU Directive 2006/112/EC)

  4. Security deposit: immediate payment (cash deposit)

  5. Security deposit: immediate payment (CDS Cash Account deposit)

  6. Export refunds and/or CAP license, security held by RPA

  7. Security Importers general guarantee account ( self-representation)

  8. Security Agent’s general guarantee account

  9. Security: Importers guarantee account – standing authority (direct/indirect representation)

  10. Security: Importers guarantee account – individual/specific authority (direct/ indirect representation)

  11. Security Importers individual guarantee (e.g. C&E 250)

  12. SASP

Corporate Credit Card/Cash Account

The Flexible Accounting System (FAS) used in CHIEF is closing. It is being replaced with Cash Account. When you register with CDS you will automatically be issued a Cash Account. The cash account number will be visible on your digital dashboard.

You will need to quote this account number on CDS declarations if you wish to pay any revenue due using this account. This is also true for your customers, once they register for CDS. They will need to authorise you if they want you to use their cash account.

Duty Deferment Accounts

If you have a Duty Deferment Account, you will have to complete a new Direct Debit Instruction before you can use the deferment on CDS declarations. This also applies to any of your customers who use their own deferment accounts.

With CDS declarations, you will have the option of making an interim payment into your Duty Deferment Account. This will be allocated against charges due on your account to increase your available balance. This gives you the flexibility to make more declarations without needing to increase your agreed guarantee or account limits.

Learn more about applying for a Duty Deferment Account by clicking here.

Postponed VAT Accounting

Postponed VAT accounting is a way for UK VAT-registered businesses to account for import VAT after Brexit. Businesses can record the VAT on their VAT Return rather than paying it immediately upon entry of the goods into the UK.

After the UK officially left the EU on January 1st, 2021, importers were required to pay VAT on goods entering the UK if the value of the goods exceeded a certain threshold. The UK government created the postponed VAT accounting scheme to help businesses avoid a negative impact on their cash flow by delaying the VAT payment.

Without the postponed VAT scheme, commercial goods over £135 entering the UK would be held at customs until the VAT was paid. Now, businesses can delay the payment by recording the import VAT on their quarterly VAT Return instead of paying it immediately. To be eligible for the postponed VAT accounting scheme, you must be a UK VAT registered business that imports goods for business use into the UK.

Learn more about registering for Postponed VAT Accounting by clicking here.

Make sure to select the correct code for the method of payment while submitting your export/import declaration as per the chart given below:

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