UK Ecommerce Sellers Face New CDS Compliance Rules

Published: 12/29/2025
UK CDS Cross-border E-commerce Customs Declaration
This article provides a detailed interpretation of the UK Customs Declaration Service (CDS), addressing frequently asked questions from cross-border e-commerce sellers regarding registration and usage. It offers practical operational guidance covering the background of the CDS transition, required registration materials, key functionalities, cash account usage, and obtaining deferred VAT statements. The aim is to help sellers smoothly adapt to the new customs declaration environment. This guide is designed to simplify the process and ensure compliance with the updated regulations.
UK Ecommerce Sellers Face New CDS Compliance Rules

As cross-border e-commerce continues to expand, the United Kingdom remains a crucial market for international sellers. However, the recent transition from HMRC to the Customs Declaration Service (CDS) has introduced new challenges and questions for online merchants. This comprehensive guide examines the CDS system and provides practical solutions to common concerns.

Background of the CDS Transition

The UK government initially planned to fully retire the legacy HMRC system by September 30, 2023, with complete migration to CDS. Due to initial system stability issues, the transition period was extended to October 30, 2023. Since then, all importers must register for CDS accounts and process customs declarations through the new platform. This shift requires e-commerce businesses to promptly understand and adapt to the updated requirements to ensure smooth customs clearance.

Frequently Asked Questions

Q: Do traders need to pre-authorize customs brokers?

A: Authorization is required when brokers need to use a trader's deferment account for duty payments. This step ensures brokers can legally represent traders in customs procedures.

Q: Can brokers verify whether traders have registered for CDS?

A: Brokers can only check CDS registration status after receiving explicit authorization from importers, a measure designed to protect commercial privacy and data security.

Q: What documents are needed for CDS registration?

Required materials include:

  • UK Government Gateway account credentials
  • GB-prefixed EORI number
  • Registered business address
  • National Insurance number (for sole traders)
  • Business commencement date
  • Valid email address
  • Unique Taxpayer Reference (UTR) number
Q: Are retail prices VAT-inclusive?

A: Generally, displayed prices exclude Value Added Tax, which is calculated and paid separately based on the product's value.

Q: Must importers register to use immediate payment codes?

A: Yes, CDS registration is mandatory for accessing the immediate payment option, which allows real-time settlement of duties and taxes during clearance.

National Insurance Number Requirements

Applicants must meet these conditions to obtain an NI number:

  • Current UK residency
  • Legal right to work in the UK
  • Employment status (currently working, job-seeking, or with a confirmed job offer)

Step-by-Step Registration Guide

1. Prepare Government Gateway Credentials

Use your existing Government Gateway user ID or create a new one specifically for your business. Personal accounts cannot be used for corporate registrations.

2. Submit Required Information

Have these details ready:

  • GB EORI number
  • UTR (locate your number if unknown)
  • Officially registered business address
  • NI number (if applicable)
  • Business start date

3. Post-Registration Process

Access is typically granted within two hours, though HMRC may require up to five working days for additional verification. Successful registrants can then:

  • Submit import/export declarations
  • Access cash account services
  • Retrieve postponed VAT statements
  • View duty payment records
  • Manage account authorizations

Key System Features

The CDS platform offers comprehensive customs management tools:

  • Automated Declarations: Submit digital customs forms with supporting documentation
  • Flexible Payment Options: Choose between immediate settlement or deferred duty payments
  • Centralized Account Management: Monitor balances, configure payment methods, and authorize representatives
  • Customs Reporting: Access VAT deferment statements and duty adjustment records
  • Regulatory Reference: Consult updated customs policies and commodity codes

Team Access Management

Businesses can configure multi-user access with granular permissions, enabling collaborative workflows while maintaining data security protocols.

Using Cash Accounts

The new cash account system simplifies duty payments:

  • Funding: Pre-load accounts for scheduled payments
  • Delegation: Authorize agents to make payments on your behalf
  • Transactions: Automatic deductions follow declaration chronology
  • Withdrawals: Transfer unused funds as needed

Account Activation

Cash accounts are automatically created upon CDS registration and visible in your customs financial portal.

Third-Party Authorization

Customs brokers and freight forwarders can be granted payment authority through your account settings.

Postponed VAT Accounting

Businesses using postponed VAT accounting must retrieve monthly statements through CDS. These reports display:

  • Aggregated deferred VAT amounts
  • Monthly totals available by the sixth working day

Note: Detailed VAT records are only accessible for six months—prompt downloading is recommended.

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