To use a cash account for CDS declarations, you will first need to register with CDS. Information can be found at this website.
CDS requires several additional fields to be completed if using a cash account to pay Customs duties.
Method of payment
The method of payment must be set to P (immediate payment from CDS cash account). To do this, follow the steps below:
- Select the Customs details tab and locate the Payment information section.
- Enter P in the Method of payment field, or select P from the drop-down menu.
Note: If no method of payment or fiscal reference is supplied, HMRC will assume any duty and VAT will be paid prior to the release of goods, i.e. immediate payment will be due. Not until this payment has been made will the goods be released.
A guarantee must be entered with a type of Y, and the EORI number of the holder of the cash account must be entered in the Guarantee no. field. To do this, follow the steps below:
- Select the Customs details tab and locate the Guarantees section.
- Click the New button and in the Guarantee type field enter Y, or select Y from the drop-down list.
- In the Guarantee no. field, enter the EORI number of the holder of the cash account being used to pay/secure duties and charges.
More information can be found at this website.
The process when paying duties by cash account
- When the declaration has been accepted by Customs, it will go into a 'Final tax notice' status.
- Customs will then return a payment reference number within the Notes section of the Customs information tab of the declaration.
- You will then need to log into the cash account on HMRC's website and enter the payment reference to make the payment using the cash account.
- Not until the payment has been made will the goods be released.