65. In response to the pace of preparing of the UK's exit from the EU, we are seeing an increasing reliance on the use of twin track systems. An example is HMRC's progress to replace the Customs Handling of Import and Export Freight system, the IT system used to process declarations for goods entering and leaving the UK or EU and complete customs information electronically, with the new Customs Declaration Service (CDS). We were disappointed to find that, as of March 2019, HMRC was running both systems, with only four organisations having migrated over to CDS.83 HMRC told us that it intends to continue running both systems until traders who need to migrate are ready. However, its current contract is due to end in March 2020. Given HMRC's limited leverage in this situation I am worried about its ability to negotiate a good deal for taxpayers should it seek to extend the contract.84
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83 Committee of Public Accounts, Oral evidence: HMRC: Progress Review, HC 1969, 4 March 2019, Qq 118, 119, 124, 125
84 Ibid, Qq 120-123