Overview of payment methods for a CDS import declaration

The following are all acceptable methods of payment for the Customs Declaration Service (CDS).

• Deferment
• Immediate Payment
• Cash account
• Postponed VAT accounting (PVA)

When using CDS, be aware that once a declaration has been submitted, the method of payment cannot be changed after a ten-minute dwell time has elapsed, after an entry has been accepted.

Deferment

With CDS, if your deferment account is close to its limit, this can be topped up as required.

Immediate Payment

Information on this form of payment can be accessed here. You will need the Customs Declaration Service Immediate (CDSI) reference number, which will have been generated by CDS once a declaration is accepted. The CDSI reference number will be displayed on the Customs information tab of the declaration.

Payments can be made via online banking with funds being with HMRC within two hours. Use of CHAPS or corporate credit/debit cards will mean payment should be with HMRC the following day. BACS payments can take up to three working days. 

Cash Account

All importers that have subscribed to CDS are automatically allocated a cash account. This is an empty bank account to which the importer/user can add funds.

This service should be used prior to completing the import declaration. This means that when the entry reaches accepted status, the funds will be taken from the cash account and clearance status will be obtained (unless selected for physical/documentary examination).

See the HMRC website for information on paying into a cash account.

You will need your CDSC payment reference number which will be found within your Government gateway financial dashboard.

Payments can be made via online banking with funds being with HMRC within two hours. Use of CHAPS or corporate credit/debit cards will mean payment should be with HMRC the following day. BACS payments can take up to three working days.

Useful videos and user guides, provided by HMRC, regarding cash accounts can be found here.

Postponed VAT accounting (PVA)

PVA carries cash flow benefits as the trader declares and recovers VAT on the same VAT return rather than the traditional method of paying VAT on import and recovering this later through VAT returns.

More HMRC guidance can be found here.

To apply PVA to a customs entry, go to the Customs details tab and locate the Additional fiscal references section.  Select the correct Role for the entry.

For example, an importer using PVA would use FR1 and then enter their VAT number.

Regardless of the method of payment, for any duty aspect on this tab, if this statement is added for PVA then the VAT will be postponed.

More information on how to apply these statements correctly can be found in the relevant section of the CDS tariff: https://www.gov.uk/government/publications/cds-uk-trade-tariff-volume-3-import-declaration-completion-guide/group-3-parties

Entering the method of payment on the declaration

To enter the chosen method of payment, go to the Customs details tab and locate the Payment information section, then select the required Method of payment.

The official code list for each method of payment can be found in the tariff: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1058636/48_payment_codes.csv/preview

Note: You will need to check if the chosen method of payment requires guarantees or other information, by following the guidance in the tariff for CDS.