Customs Declaration Services Programme

1Customs Declaration Services

Carol Carlile/Deborah Hall

CDS Programme

Transition Team

21 September 2017

Objectives for Today

To understand the following

• what you already know about CDS

• what you need to know about CDS and when

• what are your CDS priorities

• how you want us to engage with you and provide regular CDS updates and

• to give you an overview of CDS Dual Running

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Trade Documentation List

• We’ve created a document list in collaboration with software developers

• We’ve identified 17 validated documents needed to support software

development

• We’ve detailed when the documentation will be released which will align with

developmental needs

• Next, we will replicate this piece of work with other customer segments

including Large Business and Freight Agents to confirm what information is

required

• You can register to receive this documentation via the Service Delivery

Support Team (SDST), e-mail address at the end of this presentation.

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Trade Facing Documentation List (1/2)

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Ref Document Name Description and Purpose History and Version Control Delivery Method Delivery Date

(estimated)

Timescale of future

iterations

1 Message Specification Schema –

Declaration and Trader Notification

Message XSD

IBM spec for the EU CDM v1.1 (first step of

UCC) version of CDS Declaration message is

based on WCO v3.6. The message specification

outlines submission message and notification

message.

Based on WCO v3.6 sent out 24th March This document will be iteratively shared according to

new information on functional gaps and/or UCC

changes through until March 2018.

End of September Dependent upon new information.

2 CDS API Specifications (MDTP)

- Customs WCO Declaration API

‘Customs Single UCC

Compliant Declaration API’

Documents describing the specifications of the

digital API for traders wishing to use the customs

declaration service.

CDS Full API Spec

v0.4 sent out 24th March

Test API

V2.1 sent out 24th April

These API documents will be iteratively shared as we

move through design and development.

Recently all APIs have been removed from the

Developer Hub in order to be moved into a new

environment. An email notification will be shared when

they are back on the hub.

End of October/Early

November

No specific timescale.

3 Data Mapping (EDIFACT/XML

Conversions)

- Import Supplementary

Declaration

- Full Declaration

Document containing information on the mapping

between the current CHIEF EDIFACT-based

Declaration and the new UCC/WCO data items.

v1.12 sent out 24th March (Import Supplementary

Dec)

v1.2 sent out 1st June

(Import Supplementary Dec)

v1.1 sent out w/c 27/06 (Full Import Dec)

v1.3 sent out 9th July (Import Supplementary Dec)

sent out w/c

V1.2 sent out 2nd August (Full Import Dec)

This document will be iteratively shared when new

information comes available.

All future mappings (as they are all affected by it) will be

upgraded to the EUCDM version 2.

End of

September/Early

October

Dependent upon new information.

4 Business Process Maps (message

interaction sequence diagrams)

Documentation outlining the ‘life of a declaration’

which exhibits the end-to-end business process

and the message interactions with systems. .

Further iterations will exhibit the detail of these

message notifications.

First iterations presented 21st June and second

18th July.

v0.1 Message interaction sequence diagrams

(NOP, Imports, Exports, MUCRS) sent out 02/08.

We are internally reviewing decisions that need to be

made in regards to message notifications and will

update these when these decision have been made.

We are working on inventory linking message

interaction diagrams for the next release.

TBC Dependent upon new information.

5 CDS Trade Facing Decision Log Document covering functionality and key

decisions that have been made by the business.

Iterative document revised on consistent basis. September Dependent on new information

6 Tariff Download Service Proof of

Concept Only

Tariff data file for use by Software Houses in

their product.

V0.1 Sent 15th March Proof of concept shared on 15th March. This document

will be iteratively shared when new information comes

available. Priority for the next iteration is a small sample

file that contains all the data elements possible

(including Excise and P&R measures) to test their

ingestion process.

September N/A

7 Data Dictionary Detail of what data the trade needs to provide

and what this looks like.

V0.5 sent 30th August This document will be iteratively shared. First cut will be

available by the end of August. Require trade feedback

for future iterations of this document.

TBC Dependent upon new information.

Trade Facing Documentation List (2/2)

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Ref Document Name Description and Purpose History and

Version

Control

Delivery Method Delivery Date (estimated) Timescale of

future iterations

8 Validation Rules What data elements are required to complete a

declaration on DMS.

TBC TBC TBC

9 CDS Declaration Guide (Tariff

Manual/Gov.uk)

Instructions on how to submit a declaration in detail

for example; CPCs.

V0.1 sent out

07/06

A decision has therefore been made to provide specific information appropriate to

each Trade Test scenario/drop. This will involve the development of a ‘pack’ that

focuses on providing: the CPCs applicable; CPC completion notes; Tariff Appendices

required, and; the full declaration completion rules for the specific declarations.

Collectively this information will form the information in the new Tariff.

End of September/Early October Iterative releases

based on trade test

drops.

10 CDS Testing Approach and

Environment Information

Description of testing approach to share with trade

and test environment information.

Information an documentation to support trade test to be shared in August, with

updates delivered when required.

September Iterated to a Trade

Test Pack before

each trade test drop.

11 Populated sample XML message for

test

Example of a message that can be used in the test

environment. Example of a message that can be

used in the test environment. The trade would like

real-life examples, as opposed to AAA-XXX-BBB.

The delivery of this XML will match each XSD drop from document ref 1 and trade

test.

This will shortly follow release of Document Ref 1.

Updated based on XSD iterations

(Ref 1 document)

Updated based on

XSD iterations (Ref 1

document)

12

(New)

Inventory Linking – Schema

Description

This documents is an informal description of the

current design thinking for the Inventory Linking

interface with Trade. This document is solely the

payload of the actual message, rather than the full

schema.

V0.1 shared with

CSPs only July

To be shared with CSPs only early July and talked about during CSP bilateral.

The next iteration of this will be in the form of the Inventory Linking Digital API Spec

(Ref 15)

N/A See Ref 15

13 Details of what is going to replace

CHIEF HCI (Direct user interface to

CHIEF)

The design of how HMRC are going to provide this

direct user interface functionality in CDS.

The business will be working with the trade to gather a list of API suggestions for this

work. This work is on the backlog.

TBC TBC

14 Declaration validation error

messages

Types and detail of error messages, the reasons for

these and how to rectify

Not scheduled at present, however out of the box error messages can be shared with

the trade if of interest.

TBC TBC

15

(New)

Inventory Linking – Digital API Spec Import and export schema and API for inventory

linking.

This will be accessible via the development hub. TBC TBC

16

(New)

File Upload API TBC TBC TBC

17

(New)

DES242 Equivalent of CHIEF DES242 for CDS/ This

document is part of the Technical Interface

Specification for Direct Trader Input to Customs

Handling of Import and Export Freight and for

Inventory system linking.

September/Early October September

User Research

Number of products being built to go onto Gov.uk. This requires user research.

If you are willing to feed your input into the following subjects please e-mail the

CDS mailbox:

• EORI ROSM Registration & Amendment screens

• EORI pre-registration application for those existing OMS EORI numbers

• EORI non-digital (assisted & excluded) i-forms to enable HMRC to key on

behalf of user

• Customer dashboard

• NESWEB/CIE/MIB replacements

• Single view of liabilities dashboard

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User Research

• Digital duty deferment periodic statement

• Access to pre-defined reports

• FAS Accounts

• File Upload

• Potential only – Live services dashboard

• Potential only – Declaration status indicator

• Pre-declaration duty calculator

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CDS Programme Delivery Plan

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CDS Delivery Plan

• Starting in late 2017 through until early summer 2018, we will deploy coherent

functional drops into Trade Test and offer our customers the opportunity to test

their software and demonstrate completion of business scenarios

• The go live date for full functionality is July 2018 - there will be no big bang

cutover

• Whilst all functionality may be deployed to Production, there will be a gradual

ramp-up of customers and volume on CDS, leveraging the concept of Pilots

• The next slide outlines the HMRC current view on functional drops content.

Trade Representatives have validated these priorities

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Timetable - Trade Test Functional Drops

Drop Types Functionality

1IM-Z H1 Vanilla

EX-Z H1 Vanilla

The simplest Ex-Warehouse

Supplementary Declaration procedure –

submit, validate data, get tariff

information and return duty calculation.

2IM-Z H1-H5

EX-Z B1-B5

More procedure types, requiring the

system to verify extra authorisations &

excise goods for Ex-Warehouse

Supplementary Declarations.

3

EIDR

Supplemented

Declaration

Imports and

Exports

FEC and Quota

All Ex-Warehouse Supplementary

Declarations, with Quota checks and

Front End Credibility checks now

possible.

4

Linked

Supplementary

Declarations

All other Supplementary types. These

are linked to Simplified Declarations.

5 Frontier ImportsSimplified and Standard declaration

types for Imports.

6 Frontier ExportsSimplified and Standard declaration

types for Exports.

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• This is the current draft of the functional

drops to the trade test environment

• The drops ascend in declaration complexity

over time, from the simplest types through

to the most complex

• Drops 1- 3 are functionality for EIDR

IMZ/EXZ declarations – commonly called

Ex Warehouse Supplementary Declarations

• Drops 4- 6 currently cover all other types,

commonly summarised as ‘Frontier

Declarations’ (tied to border presentation).

We continue to look in detail at the order

and composition of these.

Dual Running

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Dual Running Strategy - Definitions

• Dual Running is the operation of both the Legacy CHIEF and new CDS platforms to provide declarations functionality to users, who may interact with one or both platforms

• The purpose of Dual Running is to minimise the business impact (Internal and External) during the user migration from Legacy to CDS, progressively reduce volumes on CHIEF, and ultimately de-risk delivery for both internal and external business

• Dual Running of declaration processing stops when all customers are migrated to the CDS platform and in-flight declarations in the legacy CHIEF platform have been completed and cleared

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Dual Running Strategy - Principles

• A Customs Declaration will exist in either CHIEF or CDS, not both - No parallel

running, no migration of in-flight declarations

• Declarations that start in CHIEF will finish in CHIEF; those that start in CDS will

finish in CDS - This rule also applies to Pre-lodgements and Indirect Exports

process

• Declarations submitted in legacy format over legacy channels will be

processed by CHIEF - No conversion or re-routeing of declarations between

CHIEF & CDS

• Limit dependency on IT solutions (Trade or HMRC) to support dual running -

Temporary Business Process change is generally cheaper and lower risk

• Maintain Trade migration flexibility

• Avoid need for whole supply chain to migrate together

• Avoid limiting what functionality can be used in either system

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Dual Running – Trade Facing Impacts

• HMRC are analysing as-is and to-be IT solutions to determine what work is needed to

enable Dual Running

• Most Dual Running impacts are at the back-end of HMRC’s systems, but some are

Trade-facing

• CSPs have the most work to do to enable dual running of CHIEF and CDS. We have

• worked with CSPs during 2017 to identify problem scenarios and potential solutions

• a good understanding and agreement on how dual running of Imports can work

• agreement on principles for Exports, but more detailed work is needed

• The next dual running workshop with CSPs is on 27th

• There are also dependencies on Software Suppliers and Freight Forwarders to

enable Dual Running

• Potential impacts for Freight Forwarders are outlined on the next slides

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Dual Running – Trade Impacts - Declarations

• Declarations will be created in either CHIEF or CDS and submitted using the message types and channels appropriate to that service. No conversion

• Response messages will come back in the same format as the submission

• The CFSP process can be split across systems, i.e. Simplified (Frontier) declaration to CHIEF and supplementary declarations to CDS

• CSPs will therefore need to support both CHIEF and CDS Declaration messages and channels during dual running

• CSPs will also need to be able to route update messages to the service containing the original declaration (CSP overhead)

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Dual Running – Trade Impacts - Declarations

• For trade-initiated query responses and requests e.g. to view entry details, Declarants will need to select the correct system

• After CDS migration, Declarants (Agents) may have to manually process E2 responses to entries they pre-lodged in CHIEF (if their IT solutions can’t support dual running). Trade manual overhead

• Pre-clearance amendments must be submitted to same service as the original declaration or they will be rejected. After CDS migration, Declarants (Agents) may have to use CSP’s manual HCI service for any CHIEF amendments (If their IT solutions can’t support Dual Running, for which refresher training may be needed. Trade manual overhead)

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Dual Running – Trade Impacts – Inventory

and Exports▪ Inventory systems must update both CHIEF and CDS on Goods Arrival, and

process routeing updates from either system. CSPs overhead

▪ A manual arrival function will still be needed on both CHIEF and CDS for non-inventory-linked ports and CIE (if still available). NCH manual overhead

▪ Exports Movements (Consolidations) across two systems : Agents and Loaders can create different declaration unique consignment references (DUCRs) on each system

▪ But the movement unique consignment number (MUCR) and its Associations will need to be created on both systems. i.e. to link the DUCRs on that system to the MUCR

▪ To avoid inadvertently creating duplicate UCRs, Declarants must choose own DUCR (not system generated) and not re-use MUCRs. Constraint

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Dual Running – Trade Impacts – Inventory

and Exports▪ Both CHIEF and CDS will need to be notified of Exports movements

▪ More work is needed on how to replicate Exports MUCR and Movement data Potential Trade manual overhead

▪ Indirect Exports Both CDS and CHIEF will interact with our existing ECS solution, which will therefore need to know where to send back the IE518. HMRC IT solution needed

▪ The process by which the Agent prints the EAD for the Haulier will be different for CHIEF and CDS, e.g. CDS can create a complete EAD including the MRN barcode

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Dual running – Trade Impacts – Back End

Services▪ Finance - Deferment Only one Deferment Account and Guarantee will be

needed, managed from HMRC’s new ETMP system for both CHIEF and CDS. But HMRC will need to regularly synchronise the available balance across the two systems (CHIEF and CDS/ETMP) HMRC IT solution needed

▪ Finance - FAS To avoid synchronising a credit balance across the two systems, we may need to restrict an Agent to using the general FAS balance on either CDS or CHIEF, though specific FAS payments could be made for declarations on both systems. Constraint

▪ Electronic Licences All licences will be held on both systems. To avoid synchronising remaining balance across two systems, once a licence monitored by Quantity (e.g. CAP, Export control) has been used on one system it can’t be used on the other. Additional manual checks for these types of licence could impact on CHIEF clearance times. Constraint

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Dual Running – Trade Impacts – Back End

Services

▪ Tariff and Quotas HMRC will use a single (new) Quota system to manage Quota claims from both CHIEF and CDS

▪ HMRC will maintain two Tariffs - the current CHIEF Tariff in parallel with the new CDS Tariff – aligning updates to ensure the same duty calculation results regardless of which system is used

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