Importing Minerals into the UK: The HMRC Customs Declaration Service (CDS) Guide
The UK’s import landscape has undergone a significant transformation with the introduction of the Customs Declaration Service (CDS), which has fully replaced the older Customs Handling of Import and Export Freight (CHIEF) system. For any business importing minerals, particularly those connecting African minerals to global markets, understanding and correctly navigating the CDS is essential for compliant and efficient customs clearance.
CDS is a single, digital platform used to submit customs declarations to HM Revenue and Customs (HMRC). It is a more flexible and robust system, designed to handle the complexities of modern international trade and is based on the Union Customs Code (UCC) rules. The responsibility for the accuracy of a customs declaration lies with the importer or exporter, so preparing your business for CDS compliance is paramount.
Getting started with CDS for mineral imports
Before you can submit a customs declaration for your mineral imports, your business must be properly set up on the new system. The key steps for preparation are:
1. Obtain a GB EORI Number
Your business must have an Economic Operator Registration and Identification (EORI) number that starts with ‘GB’. If you are already importing, you should have one, but if not, you must apply to HMRC.
2. Subscribe to the Customs Declaration Service
You will need your Government Gateway user ID and password to subscribe to CDS. During the registration process, you will also need to provide:
Your GB EORI number.
Your 10-digit Unique Taxpayer Reference (UTR).
The business address that HMRC holds on its customs records.
The date your business started.
3. Arrange Payment for Duties and Taxes
CDS offers several options for paying customs duties and import VAT. You will need to choose one and manage it through the CDS financial dashboard:
Duty Deferment Account (DDA): This is the most common method for regular importers, allowing you to pay your duty and VAT in a single monthly payment. If you had a DDA for CHIEF, you must set up a new Direct Debit Instruction for CDS, as the bank account details have changed.
CDS Cash Account: A cash account is automatically set up for you when you subscribe to CDS. You must top it up with funds before you can use it to pay for declarations.
Postponed VAT Accounting (PVA): VAT-registered businesses can account for import VAT on their VAT return instead of paying it at the border, which is highly recommended for cash flow.
Immediate Payments: This option is available for single or occasional, low-value imports, paid directly via card or bank transfer.
Completing your CDS import declaration
A CDS declaration is a highly detailed electronic document that contains information from eight data element groups, replacing the traditional boxes of the CHIEF system. For mineral imports, accuracy in these data elements is crucial.
Key Data Elements for Mineral Imports
While a full import declaration can require up to 78 data elements, the following groups contain the most important information for your mineral shipments:
Group 1: Message Information (Procedure Codes)
This is where you declare the procedure the goods are being entered into, using a 4-digit Procedure Code and up to 99 different types of 3-digit Additional Procedure Codes. The codes must accurately reflect the customs regime, such as goods being released for “free circulation” (i.e., immediate use in the UK).
Group 6: Goods Identification
This is where you declare the specific details of your mineral.
Commodity Code (HS Code): You must classify your mineral using the correct 10-digit commodity code from the UK Trade Tariff. This code determines the duty and any regulatory requirements. For African minerals, ensure the code reflects the specific type, grade, and form (e.g., ore, concentrate, refined metal).
Net Mass and Quantity: Details of the weight, volume, or other unit of measurement are required.
Goods Description: A clear, precise description of the mineral being imported.
Group 4: Valuation Information and Taxes
This details the price paid, freight costs, insurance, and the valuation method, which are used to calculate the customs value and the duty/VAT owed. It also includes the Incoterms used for the sale (e.g., CIF, FOB).
Group 2: References, Documents, Certificates, and Authorisations
This group is vital for demonstrating compliance. For minerals, particularly those from Africa, you may need to declare certain documents or certificates to claim preferential tariffs or meet specific import controls. These could include:
Commercial Invoice and Packing List.
Certificates of Origin (required to claim reduced or zero duties under a Free Trade Agreement, if one exists).
Any specific licences or permits required for certain “critical minerals” or dual-use goods.
The african minerals and compliance factor
Given the global focus on responsible sourcing, importing minerals from African countries requires an extra layer of due diligence which can affect your CDS declaration:
Trade Agreements: The UK has trade agreements with several African nations that may allow for reduced or zero import duty. To claim this, you must enter the correct codes (usually a three-digit Additional Procedure Code and a preference code) in your declaration, backed by a valid proof of origin document.
Due Diligence: While the CDS declaration is a customs requirement, it is the responsibility of the importer to ensure the minerals comply with any broader UK or international due diligence regulations related to supply chain transparency and conflict minerals.
Working with a customs agent
For many importers, the complexity of the 91 potential data elements in CDS is best managed by a professional. You do not need to purchase your own specialist CDS software if you appoint a customs agent or freight forwarder to act as your direct representative.
As a specialist in Minerals & Procurement Solutions, Glen Supply Chain can act as your trusted partner, ensuring your declarations are accurate and compliant. This not only speeds up customs clearance but also protects your business from the significant financial penalties associated with incorrect declarations.
Conclusion
The Customs Declaration Service is the gateway for your mineral imports into the UK. Mastering its requirements is an essential step towards maintaining a robust and reliable supply chain. By proactively registering for CDS, arranging your payment methods, and meticulously preparing the detailed data for each shipment, you will ensure a smooth journey for your minerals from Africa to the global market.
For expert guidance and comprehensive customs brokerage services, partner with Glen Supply Chain. Contact us today to learn how our Minerals & Procurement Solutions can simplify your import compliance.