Guidance

Criteria for operating a Duty Deferment Account (CIP18)

Find out the criteria you need to meet to operate a Duty Deferment Account and how to apply for one under the Union Customs Code (UCC).

Introduction

HM Revenue and Customs (HMRC) wishes to clarify that under current EU legislation we’re unable to offer a new Duty Deferment Account to Economic Operators who don’t meet all of the criteria.

Criteria for a Duty Deferment Account

In order to be authorised to operate a Duty Deferment Account, the applicant must meet certain criteria. The account must then be supported by a financial security. The relevant criteria are:

The Economic Operator must be established in the customs territory of the Union; this means within the UK or another EU member state. The Economic Operator may be a legal entity or a natural person. To be regarded as established in the UK or EU member state they must have a fixed place of business in the relevant territory where both the necessary human and technical resources are permanently present and through which their customs-related operations are wholly or partly carried out.

The Economic Operator must fulfil Regulation (EU) No 952/2013 Article 39(a) by having no record of serious or repeated infringements of customs law and no record of serious criminal offences related to economic activity.

The Economic Operator must be a regular user of customs procedures, or operate a Temporary Storage facility, or fulfill Regulation (EU) No 952/2013 Article 39(d) demonstrating ‘practical standards of competence or professional qualifications directly related to the activity carried out.’

How to apply for a guarantee for a Duty Deferment Account

You’ll need to complete the CCG1 application if you’re applying for a Duty Deferment Account.

Once you’ve been authorised to hold the Duty Deferment Account you’ll be asked to supply the security in the form of a CCG2. This should be completed by an approved bank or financial institution.

HMRC only accepts guarantees from institutions on the British Bankers’ Association and Financial Conduct Authority lists.

In the authorisation letter you’ll also be given the links to the C1202 direct debit instruction and C1207N agents’ authorisation form.

If you already have a Duty Deferment Account

If you currently have a Duty Deferment Account this doesn’t affect you. If in the future you’re in a position requiring a significant change then the new conditions will apply.

Contact details

If you have any questions regarding Duty Deferment, email: cdoenquiries@hmrc.gsi.gov.uk.

If you have any questions regarding Customs Comprehensive Guarantees, email: customs-comprehensive-guarantee-team.ccto@hmrc.gsi.gov.uk.

Issued on 18 September 2017 by Customer Strategy and Tax Design, Customs Directorate, HMRC.

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Published 29 September 2017