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HMRC internal manual

Customs Freight Simplified Procedures

Guarantee requirements: administrative action for non-compliance

Traders who consistently exceed their Customs Comprehensive Guarantee/deferment levels will need to have additional controls and managements checks built into their operational systems to monitor their guarantee levels. These controls will need to be discussed on an individual basis with the trader and agreed in writing. The Central Deferment Office (CDO) will also monitor traders’ security levels. They will contact the trader in cases where the levels are exceeded and an explanation sought.

If the level of guarantee has to be increased the trader will be allowed ten working days to do so. If the level is still not increased the CDO will inform the CFSP U of E who will arrange for the trader to have their CFSP authorisation suspended. The U of E will inform the authorising office/CCM or LBS tax specialist of the action taken. If the trader continues to exceed their security then the authorising office/r should revoke the CFSP authorisation. See CFSP19150, CFSP19200 and CFSP19250.