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HMRC internal manual

Customs Special Procedures Manual

Criteria and conditions to be met by economic operators applying for a Special Procedure authorisation: other conditions - guarantees

UCC mandatory requirement for a guarantee

From 1 May 2016 a guarantee will be required for all goods entered to a special procedure (SP) which are covered by a new, full, UCC authorisation or an ‘authorisation by declaration’.

Further information on the legal basis of this new, mandatory requirement can be found in:

Legal framework for the requirement to secure debt/CAA10040 and detailed guidance on guarantees can be found in the Guarantee Manual.

Roles of SP Authorising office and Office of Guarantee

No authorisation for a Special Procedure should be granted without confirmation from the Office of Guarantee that the Customs Comprehensive Guarantee (CCG) and waiver or reduction as appropriate, is authorised and extant.

The Special Procedure Authorising Office and the Office of Guarantee will need to liaise to ensure Guarantee reference numbers and amounts are confirmed before the issue of the Special Procedure authorisation.

[Note: The guarantee reference number (if available) should be included on the Special Procedure application form. If the guarantee is still being processed and a reference number is not available the trader should indicate in the additional information field ‘Guarantee Ref No to follow’ and the authorising office should liaise with the Office of Guarantee.]

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Special Procedures - inclusion of import VAT value in the guarantee calculation

Guarantees to cover an authorisation that will only be used in the UK will only need to include Import VAT in the guarantee calculation in the following circumstances, where:

  • the authorisation or approval holder is not established in the EU
  • the guarantee is being used for an ‘authorisation by customs declaration’ (previously known as a simplified authorisation) or
  • non-compliance has been identified.

Full details can be found in: Taxes and charges to be included in guarantee valuation/CAA10160

Guarantees - reductions and waivers

Traders with a full, Special Procedure authorisation (prior authorisation)

Traders applying for a full special procedure authorisation should also apply for a Customs Comprehensive Guarantee (CCG) authorisation. They may be eligible for a reduction or waiver (see below) of the guarantee if they meet the relevant criteria. Further details of the criteria required for a reduction or waiver of a guarantee can be found in the CAA and Guarantee Manuals.

Traders using ‘authorisation by declaration’ (formerly known as ‘simplified’ authorisation)

For authorisations by declaration, the guarantee is mandatory from 1 May 2016 and is taken at the time the declaration requesting authorisation for the special procedure is submitted to CHIEF (this is known as an individual guarantee). The guarantee must cover the full amount of debt at risk (that is, customs duties and also import VAT and other duties due).

There is no facility to reduce or waive guarantees for traders using authorisation by declaration (including those that are AEO(C) authorised) as these are individual guarantees rather than ‘comprehensive’ guarantees to which the reduction/waiver legislation may be applied.

Traders are advised to seek a full Special Procedure authorisation if they believe they are eligible and wish to take advantage of the reduction/waiver facility.

Time limits for authorisation of a guarantee and special procedure

It should be noted that the time limit for approval of a comprehensive guarantee is set in law at 120 days. For Special Procedures, the time limit for authorisation is 30 days (or 60 days for Customs Warehousing) so in most cases the trader should ensure that the particulars of the CCG authorisation are submitted to the appropriate office long before the application for the Special Procedure is submitted.

This may mean that, where a CCG has been approved much earlier, it will need to be ‘refreshed’ (or a check made with the Office of Guarantee that it is still extant) before the issue of the special procedure authorisation.

Offices of Guarantee

For further information on the Offices of Guarantee - National Temporary Admissions Seat (NTAS) and Harwich Customs Comprehensive Guarantee Office – see SPE02130.

Further information on all aspects of guarantees can be found in the CAA Manual in the following sections:

Guarantees - contents/CAA10000

Introduction to guarantee limits/CAA10110

Guarantee limits for actual debts/CAA10120

Guarantee limits for potential debts/CAA10130

Guarantee reference amounts - scenarios/CAA10140

Guarantees valid in more than one Member State/CAA10150

The following sections set out the types of guarantees which may be provided to secure customs duties and other charges.

CAA10060 Individual guarantees versus comprehensive guarantees

CAA10070 Forms of guarantees accepted by the UK customs authorities

CAA10080 Currency to be used for guarantees

CAA04050 Comprehensive Guarantees

CAA04230 Simplified Import VAT Accounting (SIVA) and

CAA04240 Deferment Accounts

The following sections provide an overview of reductions and waivers available for customs duties and import VAT.

CAA03050 Comprehensive Guarantees

CAA03220 Simplified Import VAT Accounting (SIVA) and

CAA03230 Deferment Accounts

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

The following provide information on guarantee certificates and guarantors:

Provision of a guarantee - Guarantee certificates/CAA10170

Approved guarantors/CAA10180

Joint contractual liability guarantees/CAA10200

Joint contractual liability guarantors - scenario/CAA10210