Accounting procedures: Direct payment of duty
Most traders take advantage of the duty deferment facilities but where the duty is notcovered by these arrangements (e.g. where the trader has not sought approval for dutydeferment or has exceeded his guarantee limit) payment is required before the products aredelivered.
In these cases duty may be paid either:
- through a warehouse style gross payment account in which a credit balance is maintained sufficient to cover the duty due on all deliveries, even though the duty payable is not finally declared until the TP7 is presented on completion of the days deliveries; or
- in cash on the TP7 before delivery, or against a pro-forma TP7 for the deliveries concerned if the final declaration for the whole days deliveries cannot be completed in advance.