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HMRC internal manual

Customs Freight Simplified Procedures

HM Revenue & Customs
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Security requirements: general information

Council Regulation (952/2013), which establishes the Union Customs Code, the Delegating Regs (2015/2446) and Implementing Regs 2015/2446 require security to be provided against any potential debts arising from the release of goods to a customs procedure. Article 77 of the Code states:

A customs debt on import shall be incurred through the placing of non-union goods liable to import duty under a customs procedure. The customs debt shall be incurred at the time of acceptance of the customs declaration.

Article 89

Guarantees shall apply to customs debts which have been incurred and which may be incurred. Where the customs authorities require a guarantee for a potential or existing customs debt, that guarantee shall cover the amount of duty and other charges due in connection with the import

Where CFSP transactions are concerned, the initial declaration (SFD or entry in records) does not provide sufficient information to calculate the debt nor does it state the payment account details. Therefore, unless HMRC takes a separate security, the debt is not secured until the SD has been lodged.

In order to meet the requirements of guarantees, the authorisation criteria for CFSP requires the type of guarantee to be specified within the authorisation. The only way that may be provided is via a blanket authority to debit the authorised trader’s deferment account as this is systems enforceable through CHIEF.

There may also be a requirement to hold a Customs comprehensive guarantee (CCG) to cover both actual and potential debts for certain customs procedures. This would be granted where application is made to HMRC and would cover the amount of the deferment account for actual debts and an additional guarantee requirements for potential debts.