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HMRC internal manual

Customs Authorisation and Approval

Transition Arrangements: Transition arrangements for Deferment Accounts

Any change to the deferment guarantee will require reauthorisation of the deferment account.  The comprehensive guarantee criteria under the UCC will need to be met in order to retain the deferment facility.  Please see section CAA07230 for details.

If the deferment guarantee is combined with a comprehensive guarantee for a potential debt (see section CAA10000 for details) a reassessment of the deferment account will also be required.

The Code criteria and conditions will apply from 1 May 2016 for any new deferment account applications or any amendments to an existing deferment account which triggers a move to a Code authorisation or approval.

The following table details the specific types of operations which may be operated under a Community Customs Code (Reg. No. 2913/92) authorisation and those which may only be performed if a new Code authorisation is held. 

Procedures available under a Community Customs Code (Reg No. 2913/92) authorisation or approval may only be conducted during transition where they were specifically included in the authorisation on 30 April 2016.

Type of Operation/ Benefits available after 1 May 2016 Available with a 2913/92 authorisation (CCC) Only available with a 952/13 authorisation (UCC)
Defer customs duties (and other charges) for a period not exceeding 1 month Y Y
Provide a guarantee to secure the payment of deferred charges for customs duties Y Y
Obtain a waiver from the deferment guarantee (subject to authorisation) for excise duties Y Y
Obtain a waiver from the deferment guarantee (subject to authorisation) for import VAT charges Y Y
Obtain a reduction in the deferment guarantee for customs duties (AEOC only) N Y

There are three new high level criteria changes for Deferment Accounts:

·        Compliance history in other taxation areas

·        Clearly documented audit trails between customs declarations, stock records and commercial documentation

·        Practical standards of competency or professional qualifications.

Following the introduction of the Code, economic operators who fail to meet the necessary compliance standards will be unable to hold a deferment account authorisation as they will not qualify for a comprehensive guarantee (required under article 110 of the Code).

The specific criteria to be met in these areas are detailed in section CAA07230