- CDS is HMRC's online platform for all UK customs declarations; it fully replaced the old CHIEF system.
- A declaration records the importer, commodity code, customs value, procedure, and the duty + import VAT due.
- Most sellers never touch CDS directly, their broker or freight forwarder files it using the seller's GB EORI.
- To use CDS facilities you need: a GB EORI, a CDS subscription (Government Gateway), and a payment method (duty deferment or immediate).
- Postponed VAT Accounting is chosen on the CDS declaration; the monthly import VAT statement is downloaded from your CDS account.
What is the Customs Declaration Service?
The Customs Declaration Service (CDS) is HMRC's digital platform for making customs declarations on goods moving into and out of the UK. Every import or export declaration, the formal statement to customs about what the goods are, their value, and the duty and VAT due, is now submitted through CDS.
It is the system of record behind the scenes of customs clearance. When your courier or freight forwarder "clears" your imported stock, they are filing a CDS declaration on your behalf.
CDS replaced CHIEF
CDS replaced HMRC's decades-old CHIEF (Customs Handling of Import and Export Freight) system. Import declarations migrated to CDS in 2022 and export declarations followed in 2023/24. CHIEF is now closed, so there is no alternative, all declarations are on CDS.
For importers the practical effect is mostly invisible (brokers adapted their software), but it changed how some things are accessed, notably how you get your monthly import VAT statement and how duty deferment is authorised, both now via your CDS account.
How a CDS declaration works
A CDS import declaration captures, among other data:
- The importer and their EORI number.
- The commodity (HS) code for each item, which sets the duty rate. See HS codes.
- The customs value and the basis of valuation.
- The customs procedure code, which says what is happening to the goods (released to free circulation, entered to a customs warehouse, inward processing, etc.).
- The duty and import VAT due, and how they are being paid or accounted for.
Get the commodity code or value wrong and the declaration produces the wrong charges, which is why accuracy upstream matters and why most sellers use a specialist to file.
What an ecommerce importer needs to be set up on CDS
- A GB EORI number. The prerequisite for any declaration. See EORI.
- A CDS subscription. Register for CDS through your Government Gateway account, this links your EORI to the service and gives you access to your statements.
- A financial method. Either a duty deferment account (lets you defer duty/VAT and pay monthly by direct debit), a cash account, or immediate payment per declaration. Many sellers rely on their freight forwarder's deferment account and are billed by them.
- A broker or forwarder (usually). Unless you file declarations yourself, your customs broker submits to CDS using your EORI and your chosen payment method.
CDS and Postponed VAT Accounting
If you are VAT-registered and want to use Postponed VAT Accounting (PVA), the choice is made on the CDS declaration, your broker indicates PVA rather than paying import VAT at the border. You then download your monthly postponed import VAT statement from your CDS account, which is the figure you enter in Box 1 and Box 4 of your VAT return.
So CDS is also where you get the evidence you need to reconcile import VAT. Make sure your broker knows to apply PVA on every declaration, and set a monthly reminder to pull the statement. The full PVA mechanics are in the import VAT guide.