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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Overview of customs regimes and procedures requiring prior authorisation or approval: Deferment Accounts

Economic operators may be authorised to defer duties and other charges for a period not exceeding 31 days.  The charges are then collected by BACs on the 16th working day of the following month.

Deferment accounts for customs duties must be guaranteed.

Economic operators with AEOC status may be authorised to defer customs duties with a reduced level of guarantee.  The guarantee to secure the payment of the customs duties may be reduced to 30% for AEOC holders only.

For reduced guarantee requirements for import VAT, please refer to CAA03220 Simplified Import VAT Accounting.

For reduced guarantee requirements for excise duties, please refer to Gov.uk guidance on Excise Payment Security System (EPSS).

The following benefits are available to economic operators authorised for deferment accounts:

·        Significant cash flow advantage from the ability to defer payment of customs duties and other charges for a period of 31 days rather than be require to pay the revenue prior to release of the goods

·        The ability to operate a deferment account with reduced levels of guarantees dependent upon authorisations for AEOC, SIVA and EPSS.

The introduction of the Code has resulted in the following changes for deferment accounts:

·        The requirement to be authorised for the use of a comprehensive guarantee to secure the payment of deferred charges.

·        The ability to operate a deferment account for customs duties with a reduced level of guarantee for AEOC holders

·        Changes in the format of the guarantee certificate

·        The ability to combine the deferment guarantee with a comprehensive guarantee for other, potential debts

·        The introduction of compliance criteria for businesses wishing to be authorised for a deferment account, by virtue of the comprehensive guarantee criteria (articles 89 (5), 95 (1) and 110 of the Code).