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HMRC internal manual

Customs Authorisation and Approval

Guarantee Requirements for Customs Authorisations and Approvals: Forms of guarantees accepted by the UK customs authorities

HMRC’s policy on the provision of securities is detailed in the Tax Accounting Manual, A1-2, Financial securities.

Section 9 of that manual specifies the forms of securities accepted by the Department.

The forms of security currently accepted by HMRC are:

·        Guarantees:

Provided by an approved financial institution

·        Cash securities:

Miscellaneous cash deposits against a deferment account, only to be used where individual guarantees are accepted.

Cash, banker’s drafts and cheques are only accepted in exceptional circumstances

·        Joint Contractual Liability (JCL) Guarantees

Written promises to pay, this type of guarantee will only be considered as financial security for potential debts where the revenue risk is low and a light touch security is appropriate.  JCLs will not be accepted as security for actual debts.  JCLs may only be used as security for potential debts within the UK.  These may not be used for cross-Member State authorisations and approvals.

·        Guarantees are the standard requirement for the provision of financial securities in the UK.

Guarantees are backed by an approved financial institute and provide certainty that any debt secured by it will be covered by the guarantor should the debt fail to be paid by the authorisation or approval holder.