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HMRC internal manual

Customs Authorisation and Approval

Legal Framework for Customs authorisations and approvals: Deferment Accounts

The deferment legislation referred to below (SI 1978/1725) was amended by The Value Added Tax (Amendment) (No. 5) Regulations 2003 (amending the VAT regulations 1995) to provide the legal basis for SIVA, please see CAA05240 for details.


Legal Act Article Explanation/ Usage
Code A.110 Provides for economic operators to be authorised to defer payment of import duties and other charges
Deferred payment facilities are dependent upon the provision of a guarantee to secure payment      
    A.111 Specifies the maximum periods over which payments may be deferred
  Code A.89(5) Provisions to authorise a comprehensive guarantee to cover more than one declaration or procedure
  Code A.95(1) The criteria which must be met in order to be authorised for a comprehensive guarantee
  Code A.95(3) AEOC may have a reduction in the deferment guarantee for customs duty
  Empowerment to set Implementing Acts (IA), IA provisions set out:    
  A.100 How to determine the reference amount (guarantee limits)
Circumstances in which the use of a comprehensive guarantee may be prohibited      
  IA A.155 Process to establish the reference amount (guarantee limit)
  IA A.157 Requirement for the customs authorities to monitor the comprehensive guarantee reference amount for actual debts
  IA A.158(2) Provides for the customs duty deferment guarantee to be reduced to 30% for AEOCs
  SI 1978/1725 Customs Duties (Deferred Payment) Regulations 1976, hereafter referred to as the Deferment Regs    
  SI 1978/1725 Reg. 4 Conditions for granting approval to operate a deferment account
  SI 1978/1725 Reg. 4(1) Requirement to provide security against the deferred payments
  SI 1978/1725 Reg. 5 Grant the deferment of payment to economic operators meeting the deferment conditions for authorisation
  SI 1978/1725 Reg. 6 Specifies payment of deferred amounts on scheduled dates