Premises guarantees: What levels do we require?
You should normally set the following levels:
|Potential duty on month-end stock holding||Level of security|
|>£100,000 but <£400,000||£100,000|
|>£400,000 but <£1m||25% of potential duty|
|>£1m but <£25m||£250,000|
|>£25m but <£25m||1% of potential duty|
The level of security required for a new trade facility warehouses is calculated as perthe above.
For new general storage and distribution warehouses, the above applies, but with a minimumlevel of security of £250,000.
Existing warehouse keepers wishing to open another warehouse may qualify for a reduction.
Where there is evidence of risk beyond those generally associated with warehoused goods,financial security additional to that outlined above may be required. However, where thereis a reasonable basket of evidence to support that the trader is a revenue risk you shouldconsider rejecting the registration, as opposed to imposing a requirement for a higherlevel of financial security. Similarly, where an existing warehouse keeperscompliance gives cause for concern, the imposition of a financial security requirementshould not be used where it would be more appropriate to revoke the warehousekeepers authorisation.