Executive Summary: Understanding perceptions and experiences of applying for and using Duty Deferment Accounts with guarantee waivers (2022)
Published 15 July 2025
© Crown copyright 2025
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This report was commissioned under the Conservative administration (2010 to 2024), and conducted between 2021 and 2022.
HMRC Research Report 819
1. Introduction and background to the research
A Duty Deferment Account (DDA) lets traders in the UK defer payments of customs duty, import VAT and excise duty. Instead, traders make monthly payments to HM Revenue and Customs (HMRC) by Direct Debit. This is instead of paying for individual consignments immediately at import, or when released from a facilitation that suspends duty, such as an excise warehouse. Usually, the payment for customs duty and import VAT is taken on the 15th day of the month after the goods were imported. Many agents, freight forwarders and intermediaries who make customs declarations for customers also use their own DDAs on behalf of customers.
Prior to 1 January 2021, most DDA holders required a guarantee for duties deferred. For import duties deferred, this was a Customs Comprehensive Guarantee backed by a financial guarantee from an approved UK financial institution (bank or insurer). Only traders who demonstrated very high standards through being Authorised Economic Operators could gain a reduction in the amount of guarantee required for deferred duties. On 1 January 2021 HMRC introduced new GB guarantee waivers for most UK established traders using DDAs to defer duties in Great Britain.
This research was conducted in October and November 2022 with UK based importers to explore experiences of using DDAs. Specifically, focusing on the awareness and use of the GB guarantee waivers that came into effect in January 2021.
2. Methodology
40 qualitative depth interviews were completed with UK based traders, each lasting 45 to 60 minutes and following a discussion guide agreed with HMRC.
3. Key findings
3.1 Trader awareness and understanding of DDAs and GB guarantee waivers
Overall, traders had a low awareness of DDAs and GB guarantee waivers. This was particularly true among those using an intermediary’s DDA. Many traders only possessed a high-level awareness of how DDAs and waivers operate. Throughout interviews, traders used the terms interchangeably, and it was clear that they found it hard to differentiate between the 3 distinct components (DDA, guarantee, and GB guarantee waiver).
3.2 The role of intermediaries in relation to DDAs
Traders that used intermediaries tended to be heavily reliant on them and, as a result, often had little knowledge or awareness of the process followed.
Generally, the process of using an intermediary’s DDA was felt to be straightforward, with few problems encountered. Traders found that it was worth paying the additional fee for the specialist knowledge and expertise. This resulted in many feeling content with current processes and little perceived need for change.
3.3 Traders’ experiences of securing DDA guarantees via financial institutions
For those using their own DDA, these were typically historical and had often been set up many years ago. This meant some traders were not always aware of the process of sourcing and securing a guarantee at the point of initial set up as this had been managed by someone else and before they joined the business. For those that could recall setting up a guarantee with a bank, they described the process and due diligence requirements for this as straightforward.
3.4 Trader attitudes and opinions regarding the GB guarantee waivers
Most traders lacked in depth understanding of the GB guarantee waivers (introduced in January 2021), and it was clear that these were considered to be only ‘one of many’ process changes to contend with following EU exit. This lack of understanding meant that not all traders had the knowledge to give fully informed opinions on GB guarantee waivers. In addition, those who used an intermediary’s DDA often did not see the need for a waiver.
Some traders did see the potential benefits of a GB guarantee waiver. Particularly for those who regularly imported and could make potential cost savings by using a GB guarantee waiver.
Reasons for not seeking a GB guarantee waiver included a lack of awareness among traders and not importing high enough volumes or values to consider it ‘worthwhile’.
For some traders, contentment with current processes, coupled with an expectation of increased, administrative burden around set up and management, acted as barriers to seeking their own DDA or GB guarantee waiver. This was particularly apparent for those using an intermediary’s DDA.
Some did speak of intentions to move away from using an intermediary’s DDA or to seek a GB guarantee waiver going forward. This was primarily driven by anticipated changes in import volumes and the potential of cost savings by managing import payments and processes in-house.