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HMRC internal manual

Customs Authorisation and Approval

Guarantee Requirements for Customs Authorisations and Approvals: Legal Framework for the requirement to secure customs debts

The following table sets out the legal framework for the provision of guarantees under the Union Customs Code (UCC):


Legal Act Article Explanation/ Usage
Code A.195(1) Goods may not be released to a customs procedure unless the customs duties are paid or secured (with the exemption of some types of Temporary Admission (TA))
Code A.195(2) Exemptions from the requirement to provide a guarantee may be allowed for goods claiming a tariff quota
Code A.89(1) – (3) General provisions relating to guarantees, who may provide them and their operations across member states
Code A.89(5) Provisions to authorise a comprehensive guarantee to cover more than one declaration or procedure
Code A.90 Provides for the calculation of the amount of guarantees:

·        Using the highest duty rates applicable for potential debts

·        Sufficient to cover the actual amounts payable for actual debts      
  Code A.92 Details the types of guarantees that maybe used to secure the customs duties and other charges
  Code A.93 Economic operators right to choose the type of guarantee provided
The MS right to refuse a type of guarantee where it is not suitable      
  Code A.94 Set out who may act as a guarantor
  Code A.95(1) The criteria which must be met in order to be authorised for a comprehensive guarantee:

·        Must be established in the EU

·        Fulfil AEO criteria a.39(a) of the code: compliance

·        Fulfil AEO criteria a.39(d) practical competency or experience of operating the procedures concerned      
  Code A.95(2) Provisions to authorised comprehensive guarantee reductions or waivers for potential debts
  Code A.95(3) AEOC may have a reduction in the deferment guarantee for customs duty to 30%
  Code A.96 Ability for the Commission to suspend the use of  comprehensive guarantee for special procedures or temporary storage where areas of risk or fraud have been identified
  Code A.98 Release of the guarantee in whole or part when the customs debt has been extinguished or can no longer arise
  Empowerment to set Delegated Acts (DA), DA provisions set out:    
  Code A.99 ·        Exemptions from guarantees for TA

·        Other forms of guarantees which may be accepted than Cash or financial undertakings by a guarantor

·        The conditions for authorising guarantee reductions or waivers for potential debts  
  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      
  DA A.82 Establishes the rules for a guarantee in the form of an undertaking by a guarantor
  DA A.84(1) The requirements to be met for a guarantee reduction to 50% for potential debts
  DA A.84(2) The requirements to be met for a guarantee reduction to 30% for potential debts
  DA A.84(3) The requirements to be met for a guarantee waiver (0%) for potential debts
  IA A.155 Process to establish the reference amount (guarantee limit)
  IA A.156 Requirement for the Comprehensive Guarantee authorisation holder to monitor the reference amount for potential debts
  IA A.157 Requirement for the customs authorities to monitor the comprehensive guarantee reference amount for actual debts
  IA A.158 Establishes the level of guarantee required for each type of authorisation (100, 50, 30, waiver) and AEOC deferment reduction (30%)