Guidance

Licence securities for the import/export of agricultural products

Find out about security payments and refunds when importing or exporting Common Agricultural Policy (CAP) goods in the UK.

Licence security is a deposit of money to guarantee that you will comply with the terms of your import or export licence.

Do I need to deposit a security?

Security is required on most import and export licences. If you’re not sure whether you need to deposit a security, please contact RPA.

Rural Payments Agency
Lancaster House
Hampshire Court
Newcastle upon Tyne
NE4 7YH.
Telephone: 03300 416500

Exemptions from licence security

Where the security needed for your licence is 100 Euro or less, you do not need to deposit a security.

Where the security is 500 Euro or less, you may not need to deposit a security. Instead, you will need to submit an undertaking that you will pay any invoices that are issued by the Rural Payments Agency (RPA) if the conditions of a licence are not met. The form of words to use and further details can be obtained from:

Rural Payments Agency
Lancaster House
Hampshire Court
Newcastle upon Tyne
NE4 7YH.
Telephone: 03300 416500

Approved humanitarian organisations which undertake to return the licence no later than the expiry of its validity period do not have to deposit security on exports of humanitarian aid.

Security for tenders

If you are tendering to import or export commodities, you must apply for a licence but do not need to deposit your security until your bid has been accepted.

Calculate your security

The amount of security you need to deposit depends on the type of goods and the quantity you are trading.

Security is calculated based on the monthly exchange rate for the Euro. Find out the monthly Euro rate.

Make a security payment

Single transaction guarantee (STG)

You can use an STG for a single transaction. You need to complete a guarantee form IX6S (Sterling) (PDF, 132KB, 2 pages) or IX6U (Euro) (PDF, 159KB, 2 pages) and return it to the address on the form.

Block guarantee

You can use a block guarantee for any number of transactions up to the value of the guarantee. RPA will repay your security when your obligations under each specific licence have been met.

You must make sure that there is sufficient available security to cover each transaction. To help you do this RPA will send you a statement each week or every 4 weeks which:

  • lists all outstanding transactions
  • tells you how much of your guarantee is unused

You can also ask RPA for a statement whenever you need one.

You should send new block guarantees to RPA on guarantee form IX5S (Sterling) (PDF, 101KB, 2 pages) or IX5U (Euro) (PDF, 43.2KB, 2 pages) .

Use the IX7 form (PDF, 51.7KB, 2 pages) for use of Block Guarantees by more than one trader and the IX8 form (PDF, 65.3KB, 2 pages) to change trader name and/or ownership.

Security transfers

You can direct bank transfers for single transactions or to provide a block guarantee.

For Sterling payments use the following bank account details:

Bank: RBS (NatWest)
Sort code: 60-70-80
Account number: 10018433

To pay securities in Euros use the bank account details below:

Bank: RBS (NatWest)
Sort code: 60-70-80
Account number: 550/00/85014583
BIC: NWBKGB2L
IBAN: GB48 NWBK 6072 0385 0145 83

Important

This is a new account which should be used from 1 March 2016.

For all Euro invoices (including Forfeit invoices) use the bank account detail below:

Bank: RBS
Sort code: 60-70-80
Account number: 550/00/85014567
BIC: NWBKGB2L
IBAN: GB92 NWBK 6072 0385 0145 67

Important

This is a new account which should be used from 1 March 2016.

How and when your security will be returned

To refund your security, RPA needs to receive your completed licence and supporting documents that prove you have complied with the requirements of the licence.

These must be returned within specified time limits for the full amount of security to be refunded.

Find out what to do when a licence has been used or has expired.

We aim to repay securities within 21 days of receiving your used licence if we have received all the documents required.

If you use your licence in stages, you can ask us to return the security in stages, as long as you can prove that at least 5% of the total quantity has been imported or exported.

Forfeit security

Late return of a licence or supporting documents

If you return your used licence later than 2 months after expiry or don’t send supporting proof within the specified time limits, only 85% of your security will be returned to you. It will be less if you have not fulfilled all of the obligations under the licence.

Failure to meet your obligations

Your security may be forfeited in full or part, if you fail to meet the obligations of your licence.

If your security was paid by cash, RPA will keep the appropriate amount of security and send you an invoice for accounting purposes.

If your security was paid by a STG or a block guarantee, you will be sent an invoice for the amount of security to be forfeited.

If you pay the invoice within 30 days, RPA will return the STG to your guarantor or credit the value back to your block guarantee. Otherwise, RPA will seek to recover the debt.

Who to contact

If you have any general queries about importing or exporting, call the RPA External Trade Helpline on 03300 416 500 (open Monday to Friday, 9am to 5pm).

Relevant regulations

Commission Regulation (EC) No 376/2008 laying down common detailed rules for the application of the system of import and export licences and advance fixing certificates for agricultural products

Commission Regulation (EEC) No 120/89 laying down common detailed rules for the application of export levies and charges on agricultural products

Council Regulation (EEC) no 918/83 setting up a Community system of reliefs from customs duty

Commission Implementing Regulation (EU) No 282/2012 laying down common detailed rules for the application of the system of securities for agricultural products

Published 31 March 2014
Last updated 4 January 2017 + show all updates
  1. Removed outdated information.
  2. Updated guidance document 'Traders guide to importing and exporting CAP goods (ET1)'.
  3. RPA have new bank account details for Euro payments from 1 March 2016.
  4. First published.