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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Guarantee Requirements for Customs Authorisations and Approvals: General Introduction to Guarantees

For the purposes of this guidance, the Union Customs Code (EU Reg. No. 952/13) will be referred to as the Code.

References to the supporting legislation to the Union Customs Code:

Commission Delegated Regulation (EU) 2015/2446 will be referred to as the Delegated Act (DA)

Commission Implementing Regulation (EU) 2015/2447 will be referred to as the Implementing Act (IA)

Any references to the previous EU customs legislation will be referred to as the Community Customs Code (Reg. No. 2913/92) or the Community Customs Code Implementing Provisions (Reg. No. 2454/93).

As specified in article 195(1) of the Code, where goods are to be placed under a customs procedure that may incur a customs debt, the goods may not be released to the procedure without the customs debt being paid or a guarantee being provided to cover the debt.

A customs debt which is incurred at the point of importation must be paid prior to the release of the goods, or in case of deferred payments, a guarantee provided as security against the future payment.  This is referred to as an Actual debt (CAA10020 provides more details)

For example: 

·        Goods that are declared to free circulation with a positive rate of duty cannot be released until the customs duty has been paid or secured against a deferment account.

A customs debt which may be incurred at a later date must be guaranteed for the duration the goods are held within the procedure or regime. This is referred to as a Potential debt, section CAA10030 provides more details)

For example:

·        Goods presented to customs on arrival in the EU are deemed to be in temporary storage.  These goods must be secured by a guarantee whilst under the temporary storage arrangements.  The authorisation holder for temporary storage is required to provide a guarantee to cover these goods as a condition of their approval to operate the temporary storage premises.

·        Where the use of a particular procedure is conditional on the provision of a guarantee, the authorisation or approval will not be granted until this obligation has been fulfilled.  This includes guarantees for the use of simplified authorisations for Special Procedures (for example, inward processing applied for using the customs declaration).

Please see sections CAA10020 and CAA10030 for more detailed explanations of the differences between debts which are incurred (Actual debts) and debts which may be incurred (Potential debts).

For transition arrangements for guarantees, please refer to section:

·        CAA04050 Comprehensive Guarantees

·        CAA04230 Simplified Import VAT Accounting (SIVA) and

CAA04240 Deferment Accounts