The move is about to begin. The AGS and GPA/SPA declaration systems in the Netherlands are being replaced by a new system: the Customs Declarations Management System (DMS). This will require economic operators to make some changes to their declarations filing procedures in order to clear customs. In this article, we cover the who, what, why, when, and how of this pending transition, explain the different processes required for filing declarations in the new system, and tell you how you can future-proof your customs operations so you never have to worry about technology changes again.
Who this applies to
All traders that submit customs declarations in the Netherlands must switch to DMS 4.0.
Traders with an authorisation for GPA/SPA must use DMS 4.1 in combination with EiDR and supplementary declarations or submit normal customs declarations via DMS 4.0.
What is changing
The new system, DMS 4.0, will replace the current Dutch declarations system, AGS 3.1.
DMS 4.0 will then be supplemented by the release of DMS 4.1, which will put an end to GPA/SPA declarations. All declarants who want to make use of supplementary declarations in the new system must be EiDR authorised.
Why the technology switch is happening
The switch from AGS to DMS is part of a larger initiative by Dutch customs authorities to bring their processes and systems into compliance with the Union Customs Code (UCC). One implication is that all customs declarations must be filed electronically, an objective of the EU Multi-Annual Strategic Plan (MASP) which calls for all paper-based customs procedures to be replaced with electronic procedures by the middle of 2025. This will require a larger dataset and validations that are also in line with the UCC. Procedures that are not digitised, like the GPA/SPA procedures, must be replaced with a digital alternative.
When you need to start using DMS
Transition from AGS to DMS 4.0 is scheduled to commence on 1 January, 2022 with the conversion expected to take place over the following 6-12 months. C4T is closely following negotiations between customs authorities and businesses and will notify followers of updates on timing in case it is altered.
DMS 4.1 is expected to follow the first release by about six months, with the introduction presently scheduled for Q3 2022.
How declarations need to be filed in DMS
For CAS customers, all of this will be taken care of automatically. For others who do not have a centralised customs software solution for declaration filing, there are process changes that will need to be made in order for goods to clear Dutch customs.
Companies that are using AGS to file declarations will need to provide a different data set for filing with DMS, in accordance with Annex B of the UCC.
Declarations that need correction will no longer be “fixed” by Dutch customs authorities. Upon the release of DMS, declarants will be notified of audit/inspection results and must apply the corrections themselves. Goods will not be released until the corrected declaration has been processed by customs authorities.
Declarants using G(S)PA or EiDR have three filing options:
1. Normal procedure in DMS 4.0.
This includes advanced declarations and simplified declarations.
Using the normal procedure, direct or indirect representation is possible. Goods must be presented to the customs authorities, which can be done at a customs office or an authorised location. Unless an advanced declaration was made, the presentation notification will also serve as the presentation. DMS 4.0 validates the declaration as part of the customs clearance process.
Advanced declarations can be lodged up to 30 days before presentation to customs and, if the declarant is an AEO, they will be notified whether there will be a check in advance. However, declarants must make sure to present their goods within 30 days, otherwise the declaration will be invalid.
Simplified procedures allow for the submission of certain data at a later date. A supplementary declaration typically must be filed within 10 days but this could differ depending on what type of documentation needs to be provided. For example, traders have 120 days to file preferential proofs of origin and two years to file customs valuations decisions. Every supplementary declaration is matched to one simplified declaration, so batching several simplified declarations with one supplementary declaration is not possible. Simplified procedures may also file advanced declarations.2. EiDR with presentation of goods in DMS 4.1
Use of EiDR requires an authorisation and being compliant with the requirements for being AEO authorised. Under this procedure, goods must be presented to customs by way of a presentation notification for each entry into records. This notification contains a pre-defined dataset and must be filed electronically in DMS 4.1. Advanced declarations cannot be made in combination with an EiDR.
Supplementary declarations must be filed exactly 10 days after entry into records, not on day 9 or day 11.
If goods are placed under a customs warehouse (CW) procedure by using EiDR or simplified declarations, then a supplementary declaration is not needed.
3. EiDR without presentation of goods in DMS 4.1
As with the above procedure, use of EiDR requires an authorisation and because there is no presentation of goods, AEO certification is required. Advanced declarations cannot be made.EiDR holders can receive an exemption from presentation if they comply with the following conditions:
- The declarant is AEO certified.
- The goods and the goods flow justify the exemption of notification and these flows are known by the authorities. Since this is not further explained by European legislation, this means that the Dutch customs authorities must make their own interpretation. Their solution is the chain arrangement, which is explained in greater detail below.
- Customs has access to all information they deem necessary to check the goods.
- At the moment of entry into records the goods are not linked to any restrictions.
The Chain Arrangement
The chain arrangement means that goods are declared in subsequent special customs procedures. On the basis of the entries in the record, supplementary declarations, and audit file, the flow of goods can be followed in one single record. Being able to follow the goods in one single record ensures easy accessibility for customs authorities. Goods must always be presented at the first link in the chain but do not need to be presented in subsequent stages.
One important condition to use the chain arrangement is that, in the first link, the declarant should be able to provide sufficient data or forms in order to perform any customs controls at later stages. For instance, when products of animal origin (POAO) are entered into free circulation, it needs to be possible to check whether the goods have passed veterinary checks.
An example of a chain arrangement would be goods that arrive with a transit procedure at the storage location of a customs warehouse. The goods are placed in a customs warehouse procedure using EiDR. At a later date, these goods are released into free circulation. Goods may be identified when they are placed into a customs warehouse and it is no longer necessary to present them when they are released into free circulation.
A major advantage of this procedure is that checks can be done when the goods are not moving around, for example when they are stored in a customs warehouse or when they arrive at another link in the chain of procedures.
As with the previous procedure, supplementary declarations must be filed exactly 10 days after the entry into records. If goods are placed in a CW procedure by using EiDR or simplified declarations, supplementary declarations are not needed.
CAS customers will be unaffected by the crossover to DMS as these procedures will be automated for them. How is this possible? Because CAS is a SaaS system with customs logic and audit trails built in. C4T’s customs experts and in-house Legal Content team scour news sources daily to ensure we stay ahead of new requirements, changes to legislation, and global trade initiatives so CAS is always up to date. Legal content is natively included and constantly updated, future-proofing your customs management from changes in technology or legislation.
Find out how you can become future-proof too. Contact us today.