Four Years of Intensive Consultation
Over the past four years, approximately 30 representatives from Customs and the business community have worked together to discuss the key components of DMS 4.0 and 4.1 and establish action points. The first meeting took place at the end of 2020, and while the project had a long lead time, we have all gained valuable insights and can evaluate the results so far. Fortunately, a structured ODB-IT consultation will continue to exist, where technical and functional aspects between Customs and the business community will be coordinated.
New Questions? A New Helpdesk!
For the participants of the dissolved working group, a new helpdesk will be opened for specific questions. Pincvision will continue to be actively involved to answer your questions and support you throughout this process.
Current Status
Almost all declarants have transitioned from AGS to DMS 4.0. Companies still using the informal phase but also using AGS must migrate from AGS to DMS by December 1, 2024, at the latest. A portion of these companies has already successfully migrated. Companies with an IIAA permit must transition to DMS 4.1 before December 1, 2024. There are a few exceptions that may migrate after this date under strict conditions and with a Customs-approved project plan. Of the 182 DMS 4.1 (IIAA) declarants, 87 have already connected to DMS, and 95 still need to migrate. These typically involve large and complex custom implementations, meaning that about 15 implementations per month are needed to meet the deadline. The maximum number of declaration lines of 999 has not yet been reached; currently, it is limited to 400 lines. While this may not be an issue for some declarants, it does pose a challenge for high-volume declarants.
Implementation Challenges
Many declarants face challenges during implementation. System changes were made during the project, project teams and business flows changed, and daily operations had to continue. Moreover, some companies had significant ERP changes planned, and there is often a structural understaffing issue. GPA declarants also tend to think too much in old process structures, which is understandable after using these processes for many years.
Operational Pressure and Optimization
We also see increasing operational pressure on DMS 4.1 declarants. The real-time DMS process now requires more intensive monitoring and follow-up on errors in interface files and Customs return messages. This often requires further automation and process optimization.
However, there are also positive developments. Declarants have the opportunity to critically examine and optimize their declaration processes and AEO framework where necessary. Additionally, DMS knowledge can be expanded within companies, offering new opportunities for employees.
At some of our clients, we have advised switching to the standard procedure (DMS 4.0), which often offers a simpler implementation process. This is especially useful when using limited commodity codes, simple and straightforward flows, and lower volumes. In practice, however, declarants in the standard procedure still often choose manual data entry, which involves effort and a higher risk of errors. Additionally, the control mechanism in DMS 4.0 may work differently, so this is still a point for analysis and consideration.
Looking Ahead
We are approaching the delivery of our DMS 4.1 implementations and are already looking ahead to the implementation of the Auditfile Inventory for our IIAA clients with a chain arrangement.
Are you interested in an exploratory conversation to steer your DMS implementation in the right direction, need help with operational execution, or considering a change in your Customs declaration software? Please let me know, and we can schedule a meeting!
Peter Italiaander
Head of Customs & Trade Affairs
- Pincvision Headquarter
- Terborgseweg 102
- 7005 BC Doetinchem
- The Netherlands
- Pincvision UK Ltd.
- Unit 5 Lancaster Way
- Biggleswade
- SG18 8YL London
- United Kingdom