Administration, receivership and liquidation: general
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 UCC, guarantees become mandatory but there is a transition period before this requirement is fully implemented so some companies may continue with CCC authorisations for some time without the required UCC 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.