Customs Declaration Services Programme (CDS) 1 December 2017 1 - - PowerPoint PPT Presentation

Customs Declaration Services Programme (CDS)

1 December 2017

1

About the event

Graham Pepper CDS Stakeholder Lead

2

Event objectives

• Update on the CDS programme
• Your views on the migration to CDS
• Live feedback using Sli-do

3

Sli-do – What you need to do

• Connect to Wi-Fi on your smartphone
• Go to www.slido.com and enter event code – Q905
• Ask questions and use voting buttons

4

CDS progress update

Stella Jarvis CDS Programme Director

5

The CDS support model

New and expanded service support model for CDS users. Focus on ‘Self Help’ options such as:

• Accurate and accessible guidance.
• ‘Single Front Door’ leading to a multifunctional helpdesk.
• Telephone call handling menus directing customers to:
• NCH teams
• Help and advice support team for declarations
• Teams to evaluate and/or escalate or monitor technical faults
• 6

| Official | Customs Declaration Service |

CDS support model

7 | Official | Customs Declaration Service |

Technical trade documentation list

• List of required documentation and specifications has been created in collaboration

with Community Service Providers (CSPs) and Software Developers.

• A validated list of 23 documents has been shared by the HMRC software developer

support team. These are held on a central location for developer access.

• CSP and Software Developer technical readiness meetings are a forum to walk-

through technical documentation to support understanding and raise questions.

• In some cases, technical documents are built upon iteratively to align with trade test

drops.

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Customer transition

Transition: the period between delivery of first live CDS functionality until 100% customer take-up.

• The transition period is expected to be approximately 6 months.
• We will support our stakeholders in transition, providing a flexible

approach to customer needs.

• Commercial software and/or IT service providers will manage the roll-
• ut of their updated software and transition of their client base.
• We will review stakeholder plans and transition approaches to stagger

take-up and manage the risk of multiple late transitions – mutually agreed entry criteria will be key to approval.

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Transition strategy - Key principles

• No migration of in flight transactions/declarations due to

data conversion complexity. What starts on CHIEF ends

• n CHIEF.
• Once migrated, a customer will remain on CDS unless in

a formal fall-back situation.

• Dual running and dual data capture are supported.
• Support for industry will be developed from the start of

trade test and will be grown effectively to support the full service by July 2018.

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CDS requirements and improvements

• All customers – UK, EU and Rest of World – will need a GB EORI

number to interact with UK Customs.

• Once a customer’s details are validated the process will take minutes

instead of days.

• The process will feature an assisted/excluded digital alternative for

customers unable to utilise IT systems.

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Development progress

• Last month we tested connectivity between the declaration

management system and 2 port inventory linking systems via different community service providers. They each sent custom declaration messages through the portal to CDS and received a confirmation message of receipt.

• The tariff component has been integrated.
• We have also built a digital registration and authorisation system

which will go live in 19 October 2018 in advance of the rest of CDS.

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Development progress

• We have now loaded the first set of UK rules on the DMS product in readiness for

Trade Test 1 in December 2017. Testing of these within an integrated environment has passed the first 2 stages in readiness for deployment into the Trade Test environment. The integrated environment includes how the core DMS product speaks to Tariff, digital (API front end), messaging, reference & trader data and risk.

• The stubbed Customs Declaration API (version 1) is now deployed to external test

and is accessible via the developer hub to anyone who wishes to use it. This

facilitates testing connectivity and makes sure that the message the user sends is in the correct and valid format

• The integrated API (version 2) is also deployed but is hidden until we are ready to

start Trade Test 1 when we will make it visible to the 5 software houses taking part

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CDS customer migration overview

14

Pat Holohan

CDS customer migration - Introduction

The purpose of this session is to provide an understanding

• f our CHIEF to CDS customer migration approach and

delivery plan. It is intended to answer the What? How? And When? regarding the migration.

• What? - What do we mean by customer migration?
• How? – How are we going to deliver the migration?
• When? – What are the timescales we are working to?

CHIEF CDS 2018/2019

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CDS Customer Migration - Definition

Customer migration can be defined as “the migration to CDS of everyone that currently uses CHIEF”. The core customer population consists of:

• Traders
• Declarants
• Fast Parcel Operators
• CSP’s

Supported by software developers The migration will be delivered in a controlled manner to enable an incremental increase

• f declaration volumes into CDS. We will do this by scheduling the migration of

customers in tranches, initially moving supplementary declarations.

Software developers

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Customer migration – Analysis to date

• Through analysis of the customer population for tranche 1, software dependencies by

declaration type and supply chain have been identified, providing an end to end picture of migration requirements.

• Analysis activity has enabled HMRC to develop a plan that will provide the necessary

technical and business readiness support to software developers and wider customer groups in the lead up to CDS migration.

• Analysis has been carried out on our CHIEF customers to understand the historic

declaration volumes in order to inform our migration plan approach.

TRADE STATISTICS CHIEF MSS DATA

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CDS customer migration - Approach

• A number of the highest volume declarants perform their own supplementary

declarations through a single software solution without the reliance on multiple 3rd party declarants and in many cases CSP’s. Migrating these customers first helps to de-risk the migration.

• Supplementary declarations make up approximately 75% of all CHIEF traffic. The

migration of a small number of high volume supplementary declaration customers will fulfil the objective of migrating volumes off CHIEF as a priority.

• Tranche 1 will commence with the migration of a few low volume declarants after

which high volume declarants will begin to migrate to CDS. Tranche 1 should result in the movement of approximately 35% of current CHIEF volumes.

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CDS customer migration - Approach

• From the beginning of Tranche 2 all remaining declaration types can be
• migrated. All CSP’s, major FPO’s, large 3rd party declarants and software

developers are expected to be ready, thereby allowing all declaration types to be processed.

• Tranche 2 will move all declaration types for Tranche 1 customers plus an

additional customer group yet to be agreed.

• Further tranches will migrate remaining customers requiring support and those

migrating through their software developers with minimal support from HMRC.

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CDS customer migration - Working together

• HMRC is providing technical and business readiness documentation and support

for the software developer community, 3rd party declarants, FPO’s and CSP’s.

• Regular technical readiness sessions are conducted in various locations in the UK

to provide support to software developers.

• We are working together to align our milestones, share plans and finalise delivery

commitments to ensure you, our trade partners and wider customer network, are ready for CDS.

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Nov 17 Feb 18 Aug 18 Mar Dec Jan Mar Apr May Jun Jul CDS Go Live Trade test M1 Sep Oct Nov 18 Dec Jan Feb 19 CSPs & FPOs on CDS

Migration - All remaining declarations Migration - Supplementary Declarations

Final validation & customer planning Regular CDS Readiness engagement & communications Customer migration complete

Key Phases

CDS Customer Migration: Timeline

CDS Full functionality & Start of customer migration Trade test M2 Trade test M3 Trade test M4 Trade test M5 CDS Live

| Official | Customs Declaration Service 21

CDS customer migration - Next steps

• Our customer engagement teams will continue reaching out to discuss migration

and readiness support in further detail and to assist in finalising your migration plans.

• Our communications team will begin our CDS readiness campaign to share key

updates on test availability and information required to complete readiness in the lead up to CDS go live.

• Where applicable your software developers will be releasing information about

their CDS compatible software releases and roll out schedule.

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CDS service support

Karen Cobb

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Service support for trade test 1

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• 5 software houses participating.
• All must register with the HMRC Software Developers Support Team (SDST),

in order to receive the Trade Test 1 ‘pack’ and to use the HMRC Developer hub e-mail support function (separate from the standard SDST e-mail route).

• Access to the SDST hub is via GOV.UK – Search ‘software developer

support’.

• All enquiries (technical and non-technical) must be raised by e-mail via the

SDST.

Service support for trade test 1

• Trade Test 1 service support will be open 09.00 – 17.00, 5 days a week (Mon-Fri),

excluding bank holidays.

• E-mails will be ‘triaged’ by SDST who will answer any questions they can (e.g. API

schema issues). Other questions:

• Technical – will be sent to HMRC’s Delivery Groups working on the development

and delivery of CDS.

• Non-Technical – will be sent to Customs subject matter experts for prompt

response.

• Replies will be returned to the originator via SDST.

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Technical issues

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Service support model - Trade test 1

• In summary
• Trade Test 1 support model will be running from December 2017

through to the end of January 2018.

• Support will be available 09.00 – 17.00 Mon-Fri (excluding bank

holidays) throughout this period.

• Software houses will contact the SDST via the GOV.UK link.
• Software houses will be kept advised of the progress of issues and

defect resolution.

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Service support model - Trade test 1

• During Trade Test there will be 3 priority categories:
• P1 – Major Issue – Software houses are unable to continue testing.
• P2 – Minor Defect – Fixes can be planned for future delivery –

testing not disrupted.

• P3 – Functionality and business related queries.

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Service support model - Trade test 2-6 and live service support model

• Additional software houses that would like to test their developed software need to register via the

HMRC Software Developers Support Team (SDST) to receive the latest Trade Test ‘pack’.

• Access to the SDST hub is via GOV.UK – Search ‘software developer support’.
• Issues and enquiries (technical and non-technical) must be submitted using the HMRC Developer

Hub to SDST.

• Frequently Asked Questions (FAQ’s) are available on the CDS Forum page. This should be the first

point of call for software houses before submitting a query or issue to SDST. https://online.hmrc.gov.uk/webchatprod/community/forums/show/61.page.

• CDS Trade Test system is available 24/7 except for system maintenance. Any planned maintenance

will be published on the CDS Trade Test Forum webpage.

• Support will be available 09.00 – 17.00 Mon-Fri (excluding bank holidays) throughout this period.

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Service support model – Trade Test 2-6

How we are working together

Gordon Tutt (AFSS) Peter MacSwiney (ASM)

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Working collaboratively

• Partnership working with CDS.
• Recent Engagements.
• How software developers are getting ready.
• What you need to be thinking about to support migration – action

for business.

• How to get involved.

32

Dual running

Martin Owen & Vickesh Padhiar

33

What is dual running

“… the operation of both the Legacy and CDS platforms to provide declarations functionality to users, who will be interacting 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, 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 platform have been completed and cleared.”

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Key principles

• A Customs Declaration will exist in either CHIEF or CDS, not both
• Declarations that start in CHIEF will finish in CHIEF; those that start in CDS will

finish in CDS

• No migration of inflight declarations
• Limit dependency on IT solutions (Trade or HMRC) to support dual running
• Consider and implement change of business process vs change to IT systems
• Maintain Trade migration flexibility

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Functional Area Descriptions

Group Area Description Group A Registration

• Covers Trader Registration process
• Covers passing of UK trader information to CHIEF and the EU
• Covers migration of existing Trader Information

Authorisation s

• Covers authorisations process for applying for and updating schemes
• Covers migration of existing authorisations to CDS

Group B Core Finance

• Covers writing of finances collected to the general ledger

Duty Deferment

• Covers synchronisation of Trader Account Limit and Balances
• Covers migration of Duty Accounts and Direct Debits

Other Finances

• Covers how Operational Staff will apply Over/Under Payments, Collection of Payable Orders and

Processes for post clearance Adjustments

• Covers how Trade will be able to use and synchronise FAS accounts

Group C Tariff

• Covers specific measures on the TARIFF to allow for TARIFF COTS and CHIEF to be in synch

Quota

• Cover Quota allocation requests, claims and status sent between the EU and the UK, ensuring

duplication is avoided

• Covers Operational Staff processes for keeping thresholds in synch

Surveillance

• Covers synchronisation of correcting errors across Legacy and CDS

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Functional Area Descriptions

Group Area Description Group D Trade Stats

• Cover synchronisation of passing declaration information to Trade Stats from both CHIEF and CDS

FEC Checks

• Covers operation processes for ensuring both CHIEF and CDS receive the same statistical

parameters to perform FEC checks Group E Licensing

• Covers synchronisation of license usage between CHIEF and CDS
• Covers operational staff and OGD staff processes for synchronisation and risk analysis

Other Data Sets

• These are variable data sets that require to be in synch during dual running to ensure no fraudulent

activities can take place nor any irregularities in outputs that may be in favour of any entity

• financially. Example includes exchange rates, where they are currently updated on a set frequency

in CHIEF and require CDS to be updated on the same frequency. Risk Profiles and Routing

• These are routing decisions that require to be in synch during dual running to ensure no fraudulent

activities can take place nor any irregularities in outputs that may be in favour of any entity financially.

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Functional Area Descriptions

Group Area Description Group F Channels

• Covers all Inbound and Outbound Channels such as:
• Telephony – Is there new numbers for new help desks? Has .gov.uk been updated? How do
• utbound calls happen? What is the change in process for Ops Staff?
• Postal – What are the Letters/Statement we produce, do we have equivalent processes in CDS

for Ops Staff?

• Web – Do we need to remove certain web access? Are there BDAPS we need to worry about?

Security Management and Admin

• Covers CASMA, Role Based Access and specifically the use of badges.

Group G External Interfaces

• Covers submission of declaration Types
• Covers the different interfaces the customer can interact with

Inventory Linking

• Covers Inventory Linking for Imports and Exports and synchronisation between CHIEF and CDS for

MUCR and DUCR consolidation and movements Export Consignments

• Covers use of UI and XML messages for Exports consolidation and synchronisation of processes

Indirect Exports

• Covers synchronisation of Office of Exit locations and ensuring notifications from outside the UK

are handled through both CHIEF and CDS

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Enabler approaches for dual running

The diagram below provides a description of the solution approaches that could be applied to define the dual running

• solutions. Each solution could have a mixture of approaches applied to it.

Approach 3: Parallel Run with integration for synchronisation Approach 1: Parallel Run with no integration

Legacy Backend Systems CHIEF CDS CDS Backend Systems Legacy Backend Systems CHIEF CDS CDS Backend Systems

IT Synch Approach 2: Business Process Change

Legacy Backend Systems CHIEF CDS CDS Backend Systems

HMRC Officer HMRC Officer

Approach 3: Parallel Run with integration for synchronisation

CDS / Legacy Backend Systems CHIEF CDS

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Finance and duty deferment

Overview

• Covers synchronisation of Trader account limit and

balances between legacy and CDS

• Covers writing of finances collected to the general

ledger

• Solution being worked on for VAT Certificates
• All new statements and deferment balances will be

available through the CDS dashboard

• Traders will be able to use CHIEF and Dashboard

for a real time balance and correlate the two.

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Dual Run – Point to

• ne backend

Core Finance LDCS CECAS CHIEF ETMP SAP BW EDH DMS VCS WHS POOP Dual Run – Point to

• ne backend

Duty and Deferment DDS DDIS DDES CHIEF ETMP Dashboa rd RCM DMS LDCS SPS CECAS As Is Flow CDS Flow Dual Running Flow Redundant Flow KEY

Tariff and quota

Overview

• Covers specific measures and thresholds
• n the TARIFF to allow for TARIFF COTS

and CHIEF to be in synch

• Cover quota allocation requests, claims

and status sent between the EU and the UK, ensuring duplication is avoided

Quota CHIEF DMS CTQU TARIFF DG TAXUD Parallel Run Tariff CHIEF DMS CTS TARIFF DG TAXUD Parallel Run – Manual Synch

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As Is Flow CDS Flow Dual Running Flow Redundant Flow KEY

Exports and indirect exports

Overview

• Covers submission of export declarations

through the existing portal (NES Web) and message based submissions (NES XML) and its synchronisation with the CDS export submission process

• Covers synchronisation of Office of Exit

locations and ensuring notifications from

• utside the UK are handled through both

CHIEF and CDS

• Systems and Business Processes will need to

be ready to use the CDS exports submission process

Indirect Exports EDCS / Portal Dual Run – Point to

• ne backend

MDTP / Dashboard

DMS CHIEF Trader / Declarant CSP EXCITE DSB ECS NECA EU Gateway

Export Consignments EDCS / Portal Parallel Run – no Sync

MDTP / Dashboard

DMS Trader / Declarant CSP CHIEF

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As Is Flow CDS Flow Dual Running Flow Redundant Flow KEY

Inventory linking

Overview

• Covers Inventory Linking for Imports and

Exports and synchronisation between legacy and CDS for MUCR and DUCR consolidation and movements

• Mixed consolidations may result in

different routing decisions.

• Working with CSP’s to define a solution

Inventory Linking (Exports) CSP Carrier Trader / Declarant

MDTP / Dashboard

CHIEF IL Dual Run – Point to

• ne backend

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As Is Flow CDS Flow Dual Running Flow Redundant Flow KEY

Cut over sequencing

Registration Licensing Tariff/Quota/Surveillance Authorisations Duty Deferment

Lines

Core Finance Cutover Activities CDS Milestones FEC External Dependencies Indirect Exports Inventory Linking Exports

Turn Off DTR Feeds Migrate ITR Records to ETMP/PDS Connect ETMP to CHIEF/IDS RCM Ready for Service Migrate ROSIE/CITADEL to Dec Store Migrate Excise Open Records to ETMP Migrate Direct Debits, EPSS, SIVA to ETMP Point LDCS/CHIEF to ETMP Migrate DD Accounts to ETMP Point CHIEF to SPS SPS Ready For Service License Store Ready for Service Load Tariff Base Rates Transfer data to secure location PDS Ready For Service Cutover Begins MDTP Ready for Service ETMP/Dashboa rd Ready For Service Tariff COTS Ready For Service Turn CTUXUD File Duplication On Turn Mgmt Server Acknowledgem ent On Load FEC Commodity Base Rates Load Base Licences into LS Point CHIEF to LS Point DIT and RPA to LS Point LS to EDCS/CTUX DMS Ready For Service Decision Store Live AWS Prod Env Available Data Cleanse Complete DIT and RPA Changes Complete GDS Assessments Passed for Digital Business Readiness Training/Guidance/Comms Complete RDS Ready For Service Load Office of Exit Data Trade Test Complete Exports UI Ready for Service EAL/EAC Conversion Ready for Service CHIEF changes for Consolidation and Movements Logic Inv Linking Ready for Service CHIEF to Inv Linking Integration Risk Ready for Service Load Risk Base Rates

Risk and Routing 44

Summary

• Majority of changes for dual running will be seamless to the users of

Legacy and CDS.

• Users will be able to interact with both Legacy and CDS during dual

running.

• HMRC will minimise where possible the need for existing traders to re-

apply for any processes or applications.

• Work in progress to build and test dual running changes including

planning for cutover and dress rehearsals.

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Union Customs Code (UCC) changes and developments

Ian Wilkins

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CHIEF to CDS key differences – UCC data changes

• Increased number of items per declaration (implications for SLAs).
• Rationalisation of Customs Procedure Codes.
• An audit trail of previous document IDs.
• Data about additional party types (eg Buyer, Seller): need to be clear on when data

must be supplied, and default values when data is not available.

• Provision for extra commercial references / tracking numbers.

47

Alignment with International Standards : EU Customs Data Model (CDM).

CHIEF to CDS key differences - UCC data changes

We will have harmonised:

• Location of Goods identification (based on UNLOCODE).
• Warehouse Type code list.
• Method of Payment codes.
• Unit of Quantity codes (ISO).
• Item Tax Lines and which data items have to be explicitly declared and which can be

derived by CDS or Tariff.

• Levelling – change for some data items between Header and Item.

48

Alignment to International Standards : EU Customs Data Model (CDM)

HMRC Border System Programme

Sharon Mole

49

HMRC Border Systems Programme

• Is a key HMRC change programme to support the UK’s exit from

the European Union.

• Its immediate focus is on changes that may be needed to HMRC

border IT systems to deliver the customs, excise, VAT and trade statistics requirements from Day 1 of Brexit.

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HMRC Border Systems Programme

Why do we need the Border Systems Programme? Because we need to:

• understand the impact of border related Brexit changes on HMRC, its key

delivery partners and customers.

• scope and coordinate the changes for Day 1 that may be required in addition to

those that will be delivered by the Customs Declaration Services (CDS) programme.

• ensure delivery of the BSP change programme is aligned with CDS.

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HMRC Border Systems Programme

These are based on the scenario set out in the recent White Paper on the Customs Bill that on Day 1 the UK may have to set up a standalone customs services to:

• set and manage tariffs (duty rates) and quotas.
• establish a goods classification service in line with WTO obligations.
• require traders who trade in goods in the EU to make customs declarations and to

register for an Economic Operator Registration Number as currently required for importing or exporting goods outside of the EU; and

• manage any new customs approval or licensing requirements for goods traded with EU

countries.

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The planning assumptions underpinning the Border Systems Programme

HMRC Border Systems Programme

How will Border Systems Programme support the UK Government’s

• bjectives for EU Exit?

BSP will contribute towards the UK government’s overarching strategic

• bjectives to:
• keep legitimate international trade flowing through the UK border.
• ensure UK-EU trade post Brexit is as seamless as possible
• maintain effective border security to protect society from the threats of

terrorism, organised crime and other harms

• collect border revenues due on goods at the right time.

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HMRC Border Systems Programme

How HMG and HMRC will consult with stakeholders

• HMG level engagement will be led by the Department for Exiting the

EU (DExEU) and Department of International Trade.

• Our HMRC delivery approach for BSP will build on existing

stakeholder engagement arrangements developed by our CDS Programme so that we move our change programmes forward in a fully coordinated way.

• We will also ensure stakeholders will be consulted at each key

development stage.

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HMRC Border Systems Programme

Next Steps Over the coming months BSP will be consulting you about:

• the potential changes identified we have identified so far that may

need to be implemented to deliver Brexit Day 1 changes

• the feasibility of possible delivery options for Day 1.
• trade readiness activities that will need be undertaken.

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Next steps

• Continue to listen to your feedback and views.
• Answer your questions from today’s event.
• Continue to engage and work collaboratively with you as a group or

as individual bodies and companies.

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Question and answer session

Stella Jarvis and CDS panel

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Thank you for your participation today. Please send any further questions to our programme mailbox:

declarationservices.customs@hmrc.gsi.gov.uk

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