SPE10010 - Administration, receivership and liquidation: general
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This section provides an overview of the action to be taken when it has been identified that a company has/or is on the verge of administration, receivership or liquidation.
If a business fails, or an authorisation holder has financial difficulties and as a result is unable dispose of goods placed under a special procedure in an eligible way, the customs duties suspended on those goods will become liable for payment.
These may be payable from Own Resources (OR) where a special procedure authorisation has been issued without satisfactory checks being made or the method and extent of official control is found to be inadequate.
Where a suspensive procedure is used and there are concerns about an authorisation holder’s financial stability, consideration should always be given to taking extra security for all goods on hand and for all future imports if a guarantee is not already in place. Under the UK domestic legislation, guarantees may become mandatory but there is a transition period before this requirement is fully implemented, so some companies may continue with UCC authorisations for some time without the required UK guarantee/security in place.
The insolvency practitioner who is handling the company’s case should be notified of what goods are held under the special procedure.
Note: Northern Ireland (NI) customs authorisations will continue to fall within the provisions of the Union Customs Code (UCC), as retained by the European Union (Withdrawal) Act 2018 and CEMA 1979.