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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: Overview of guarantee reductions and waivers

Economic operators may be eligible to be authorised to provide a reduced level of guarantee or a guarantee waiver.

Sections:

CAA03050 Comprehensive Guarantees

CAA03220 Simplified Import VAT Accounting (SIVA) and

CAA03230 Deferment Accounts

provide an overview of these reductions or waivers for customs duties and import VAT.

A guarantee waiver for deferred excise duty is also available, subject to authorisation, please see the information available on Gov.UK on the Excise Payment Security System (EPSS) for details.

The following guarantee reductions and waivers are available.

Potential Debts:

·        Reduction to a 50% guarantee for customs duties potential debts (see CAA07050 for the criteria to be met)

·        Reduction to a 30% guarantee for customs duties potential debts (see CAA07050 for the criteria to be met)

·        Guarantee waiver for customs duties potential debts (see CAA07050 for the criteria to be met)

Actual Debts:

·        Reduction to a 30% guarantee for deferred customs duties ( only available to AEOC)

·        Guarantee waiver for deferred import VAT (see CAA07220 for the criteria to be met)

·        Guarantee waiver for deferred excise duties, see EPSS for details.

Once authorised for the comprehensive guarantee, SIVA and AEOC deferment facilitation, the level of guarantee reduction or waiver granted is used in Column G of the Potential Debt Calculation Schedule and Column C of the Actual Debt Calculation Schedule to determine the amount of guarantee to be provided.  See sections CAA10120 and CAA10130 for details.   

Economic operators may therefore be required to provide different levels of guarantee dependent upon the type of tax to be secured and the type of guarantee authorisations held.

For example, the economic operator is:

·        Authorised for a reduction to 30% guarantees for potential debts

·        Is an AEOC and is therefore required to secure the customs duty deferred payments with a 30% guarantee

·        Authorised for SIVA and so is eligible for a guarantee waiver for the deferred import VAT

·        Not authorised for EPSS and is therefore required to secure the deferred excise duty at 100%.

Please see sheet CAA10140 for an example.