|HMRC Reference:Notice 101 (March 2009)||View Change History|
This notice cancels and replaces Notice 101 (May 2004). Details of any changes to the previous version can be found in paragraph 1.1 of this notice.
If you need general advice or more copies of our notices, please phone our National Advice Service on 0300 200 3700. You can call Monday to Friday 08:00 – 20:00 or go to www.hmrc.gov.uk.
If you are hard of hearing or speech impaired, and use a Textphone, phone 0300 200 3719.
Os hoffech siarad â rhywun yn Gymraeg, ffoniwch 0300 200 3705, Llun i Gwener 08:00 – 18:00.
179 Mineral (Hydrocarbon) Oils: Duty and VAT: Warehousing and related procedures
179A Mineral (Hydrocarbon Oils): AVTUR
179E Biodiesel and bioblend
179F Fuel substitutes
197 Excise goods: Holding and movement
197A Excise Goods: Holding and movement (Export shops)
203 Registered Excise Dealers and Shippers
232 Customs Warehousing
476 Tobacco products duty
702 VAT - Imports
702/9 Warehouse and Free zones
It is about the Duty Deferment Scheme and how to apply for a Deferment Approval Number to defer paying HM Revenue & Customs charges due on:
These charges are normally payable when the goods are:
You can access details of any changes to this notice since May 2004 either on our website, go to www.hmrc.gov.uk or by phoning the National Advice Service on 0300 200 3700.
This notice and others mentioned are available both on paper and on our website.
You can defer payment if you are:
Mainly, it helps because:
No. HMRC do not charge you to have a deferment account but you must provide a guarantee as a form of security in order to be approved (see paragraph 5).
All the above notices are available from your local HM Revenue & Customs office or our National Advice Service. Many of our notices mentioned throughout this notice are available to view on our website, go to www.hmrc.gov.uk.
CFSP has been developed to simplify Customs procedures for clearance of imported goods, either at the frontier or by removal from the warehouse. Import duties are deferrable under CFSP. Procedures under this scheme include Simplified Frontier Declaration, Local Clearance Declaration and Customs Warehousing.
For more information on CFSP you may need to read Notice 760 Customs Freight Simplified Procedures (CFSP).
You can defer all the charges listed below. Later in this notice we call these 'deferrable' or 'eligible' charges.
Name of Charge
Import Value Added Tax (VAT)
Where payable on imported goods at the time of import or on removal from HM Revenue & Customs warehouses or from a free zone
Excise Duties (including tobacco products duty)
Levies imposed under the Common Agricultural Policy (CAP) of the EEC
Positive Monetary Compensatory Amounts
Anti-dumping or countervailing duties imposed by the EEC
Compensatory interest on IPR goods diverted to free circulation
Temporary Import interest on TI goods diverted to free circulation
Interest charges on Customs debts
Where payable on the following home-produced or home manufactured goods on removal from excise warehouse:
Where payable on hydrocarbon oils on removal from warehouse
Tobacco products duty
Where payable on tobacco products on removal from registered tobacco premises
C 18 Post Clearance Demands
Where Customs charges have been under declared and additional charges are due
You can also defer any deposits for the above mentioned charges.
This means that you can defer charges for between 2 and 6 weeks – an average of 30 days credit.
All except excise duty. You still get an average 30 days credit when you defer excise duty, but the accounting period runs from the 15th of one month to the 14th of the next month. Payment must be made:
This excise accounting period also applies to tobacco products duty (TPD) when you defer it at import or on removal from an excise warehouse. See Notice 476 Tobacco products duty for details of deferring TPD on removal from registered tobacco premises.
See Notice 179 Mineral (Hydrocarbon) Oils: Duty and VAT: Warehousing and related procedures for payment arrangements for excise duty deferred on removal of hydrocarbon oils from warehouse.
The accounting period to be applied to REDS excise duty is as per paragraph 3.1 above – this type of excise does not follow the guidelines set out in respect of other excise duty. See REDS Notice 203 for more information.
You must pay by the BACS system of direct debit. We arrange for the total amount you defer in the accounting period to be debited automatically on payment day from your bank account and transferred to our bank account.
We might, however, require you to pay in some other way if an emergency prevents us from collecting by direct debit. We would tell you how at the time.
You will be expected to settle immediately. Deferred debts which are not quickly paid, may result in your duty deferment facility being stopped or even withdrawn. Other customs facilities that are dependant upon duty deferment may also be affected.
Deferred Customs debts may also be subject to interest charges.
If you are an agent acting in your own name but on behalf of an importer, you are jointly and severally liable for any customs debt that may arise. Under this type of indirect representation you may be held responsible for any deferment debts incurred by the importer you represent. See paragraph 11.4.
No. It is not currently possible to make BACS direct debit payments through your bank in euro. Such a facility is unlikely to be made available by BACS and the banks whilst the UK is operating outside of the Single Currency. Until such time as this facility becomes available, payment of duty deferment charges must be by direct debit in sterling.
Yes. Under EC Law all customs debts incurred when goods are cleared must be secured if they are not being paid at that time. As such, the granting of duty deferment facilities depends on the provision of adequate security. HM Revenue & Customs can, under the same legal provisions, also select the appropriate form of security for its Duty Deferment scheme.
We require security in the form of a guarantee from a bank, insurance company or building society only. Guarantees provide the most effective, practical and flexible way of securing duty deferment charges. Additionally your bank, insurance company or building society must have our approval to act as a guarantor. Most banks, insurance companies and building societies have this approval, but please ask our Central Deferment Office (see paragraph 6.2) if you want to check on a particular one. No other form of security, or guarantor, is acceptable.
The guarantee must be on our form C1201, which has been specifically worded, in agreement with the relevant financial authorities, to cover the Duty Deferment scheme only. By applying for Deferment you and your guarantor agree to its conditions and clauses within.
The guarantor agrees to cover each and every sum you defer up to an overall maximum amount in any calendar month. This amount is your deferment limit for the month. It must be enough to cover all your deferrable liabilities (see paragraph 2.1) for any calendar month period.
Please note: Security must be provided to cover fully all customs and excise duties that you defer. Import VAT however may not need to be fully secured if you apply for SIVA (Simplified Import VAT Accounting) approval. Please also refer to paragraph 5.8 of this notice for more details on SIVA security, and approval, requirements.
HM Revenue & Customs does not charge for setting up the guarantee. It is for you and your guarantor to settle. However, please note that your guarantor can be liable for up to twice the monthly amount shown on the guarantee. This is because you can defer up to your guarantee limit in one month, and then again in the next month before you have paid for the first month.
If you exceed your guarantee level/deferment limit in any calendar month you will not be able to defer any more charges for the remainder of that month. All further import charges would need to be paid immediately by other payment methods until you either increase your guarantee level/deferment limit or a new calendar month begins.
If you repeatedly exceed your guarantee level/deferment limit your duty deferment facility will be stopped and may be withdrawn.
To avoid disruptions to your clearances, and your deferment facility, it is vital to:
Yes. There are two ways to do this:
You could give:
Yes. By contacting your guarantor or by advising the Central Deferment Office directly in writing. Your guarantor, or yourself as the deferment holder, must send an official letterhead which advises details of your Deferment Approval Number and the guarantee to be cancelled. Under the terms of the guarantee, a period of notice of termination of no less than seven days must be served.
Cancelled guarantees will be returned directly to your Guarantor once all outstanding transactions and liabilities have been processed and paid. This can be up to 2 months after cancellation of the said guarantee.
SIVA is a scheme that was introduced on 1st December 2003. SIVA eases the financial impact on importers by reducing the level of financial security required to guarantee the payment of Import VAT through the Duty Deferment System. Traders must be authorised to operate SIVA.
Approved traders are able to benefit from a reduction in the level of financial guarantee required to operate a Duty Deferment Account by not having to provide security for any deferred Import VAT charges. This may mean that where the only charges going through a deferment account are Import VAT, no guarantee is required at all. Customs and excise duties must still be fully secured.
SIVA aims to provide compliance cost savings for legitimate businesses and should contribute to UK importers, whatever their size, improving their competitiveness.
SIVA is an integral part of the Blueprint for International Trade on our website, go to www.hmrc.gov.uk the main objective of which is to increase voluntary compliance whilst facilitating legitimate trade. The implementation of this reduced security scheme marks a step towards achieving this goal.
Traders applying for a Deferment Account can also apply for SIVA, subject to the qualifying criteria detailed in paragraph 5.10 below. The SIVA application form SIVA 1 can be downloaded from our website, go to www.hmrc.gov.uk where further detailed SIVA information can also be found. The SIVA application forms should be completed and returned to:
SIVA Approvals Team
HM Revenue & Customs
8 Ruby Place
Being approved for SIVA eliminates the need to provide deferment security for Import VAT only. SIVA does not cover customs and excise duties for which a deferment guarantee is still required. If you feel you are eligible to apply for SIVA, you should do this first and before you make any guarantee and duty deferment arrangements. Once you have your SIVA approval you will be able to calculate the level of deferment guarantee that may be required before you contact your guarantor and submit your duty deferment application to the Central Deferment Office.
If you are approved for SIVA your deferment account will have two limits:
1. A deferment account limit which must be sufficient to cover all your deferred charges.
2. A deferment guarantee level which must be backed up by a deferment guarantee and sufficient to cover all deferred customs and excise duties.
For more information about SIVA please refer to our website, go to www.hmrc.gov.uk (follow link to SIVA via Blueprint for International Trade).
Please contact Central Deferment Office (see paragraph 6.2) for further advice.
HM Revenue & Customs
Central Deferment Office
6th Floor North West
21 Victoria Avenue
Phone: 01702 36 7425/7429/7431/7450
Fax: 01702 366091
Note: The Central Deferment Office phone enquiry lines are open Monday to Friday 09:00 – 12:30 and 13:30 – 16:30.
A set of forms consists of:
All forms are obtainable from our website, go to www.hmrc.gov.uk.
we will send you a Certificate of Approval. This will show your Deferment Approval Number (DAN). You must quote this number on each request for deferment and if you write to us about deferment. Also, please ask your guarantor and bank to quote it when writing to us about
any matter relating to your guarantee or direct debit account.
You can use it at any port, airport, warehouse etc in the UK.
If you are interested in a group approval, please ask our Central Deferment Office (CDO) for further details and how to apply.
You must also send us a new direct debit instruction on form C1202 at least 10 days before your next payment day if you transfer your account to another bank.
Note: Your local VAT office do not advise the Central Deferment Office automatically of any such changes. It is your responsibility to inform us of any changes.
If we do suspend it, perhaps because you have ceased to trade, or because your guarantor has withdrawn the guarantee, you must not cancel your direct debit until all your deferred payments have been made on the due date(s). In the event of non payment of a direct debit, your deferment facility may be stopped or suspended until all outstanding liabilities have been paid.
Your facility may also be stopped or suspended if your guarantee level is found to be inadequate.
Whilst your facility is stopped or suspended, you will not be able to use your Deferment Approval Number and will need to pay charges each time you clear goods. The Central Deferment Office may ultimately cancel and withdraw your approval if there has been repeated performance problems.
For deferment on removal from:
Please see paragraph 1.6 for the notices you should read.
You may request deferment on the import entry. Charges may be deferred to either the Importer's DAN or the Agent's DAN, or split between the two DANs. Just put the relevant DAN and the correct payment code in the boxes provided.
Note: VAT must be deferred against the second DAN shown on the import entry (that is, DAN 2) where two DANs are being used to defer the charges.
Full details of how to fill in import entries, including other payment methods, are in the Customs and Excise Tariff (‘The Tariff’), Volume 3, parts 3: Imports and Community Transit Inwards) and 5: (Trader Input of Entry Data to Customs Computer (CHIEF)).
Please note, you cannot request deferment:
You request deferment on the entry or warrant for removal. This also applies to scheduling or other approved simplified arrangements where the entry is presented after the removal of the goods.
Please note, you cannot defer charges due to deficiencies in warehouse or in transit.
This is usually the day we authorise the clearance or the removal of the goods.
Confirmation of this date will be visible on subsequent DD1723 Deferment Statements under the heading Accounting date. These statements are sent to you on a weekly basis (see paragraph 9.1).
Remember, if we refuse you deferment, clearance will be delayed. That is why it is so important for you to have the right guarantee level or to increase it in sufficient time to allow for any large import or peak period liabilities (see paragraph 5.3).
When, after we have allowed deferment, it is found that more was payable on the entry we will normally adjust your deferment account before the direct debit day on which you pay. Where this is not possible, you must pay the balance immediately.
When, on the other hand, it is found that less was payable, we will again normally adjust your deferment account before the direct debit day. Where this is not possible, Customs will repay the amount over declared on, or soon after, the payment day.
You should notify the port of entry (as quoted on your DD1723 statement) if any adjustment action is required, as all original source data is held there and not in the Central Deferment Office. Alternatively, you should contact the forwarding agent responsible for entering the goods on your behalf.
However, we do not normally repay over declared VAT to VAT registered traders. We expect importers and owners to recover the amount on their next VAT returns, subject to the normal rules governing the deduction of input tax. Please read Notice 702 for further information. This covers our position on VAT in more detail.
On form C1207N – This is a standing authority which allows your agent to use your approval number whenever or wherever entering goods for you.
The form is also used to authorise your agent to access the guarantee balance available on your deferment account.
You must send this form to the Central Deferment Office (see paragraph 6.2) allowing at least 3 working days from receipt to process it. You must also advise the Central Deferment Office in writing of any authority you wish to cancel.
On form C1207S – Specific authority to agent to request deferment of duty payment against Importer’s/Proprietors Approval Number. This is a one-off authority in respect of a specific consignment or removal of goods.
You must give it to your agent to present with the entry.
Please note, entries with specific authorities usually take longer to process, which means a slower clearance rate.
We send you form C1207N with your deferment application forms. Additional copies of C1207N can be obtained from the Central Deferment Office.
Yes. For deferment at import you may sometimes need to authorise an agent at very short notice. This may happen, for example, if your goods are diverted to another port. If we insisted on the proper authority form, clearance might be delayed, so we will also accept the following methods:
a. a fax (on the Importer's ‘company headed’ paper) signed by a responsible officer of your company and worded as follows:
To HM Revenue & Customs at ............. (name of port/airport)
1. I am/we are ........................... (name of business)
2. My/Our phone number is ...................... (phone no)
3. I/We hereby authorise .................. (name of agent) to use my/our deferment approval number ........................... (DAN) when requesting deferment of the charges on the goods imported by me/us on the attached entry.
4. Signed ………………………….......…….
5. Status …………………………......……...
b. a fax copy of a completed form C1207S signed by a responsible officer of your company.
You must fax this authority to your agent for them to present to Customs with the entry. Your agent must present the facsimile copy of a. or b. with the entry.
c. a fax copy of a completed form C1207N to the Central Deferment Office (see 6.2) is also acceptable
d. an email from the Importer, sent to the Port of Entry, giving specific authority and providing a contact name and phone number for the Importer, along with all other Importer and Agent's details. (Please contact Customs at Port of Entry for appropriate email address).
Please note that both forms C1207N and C1207S are available from our website, go to www.hmrc.gov.uk.
If you are an agent and another agent instructs you to make entry for an importer (perhaps because the other agent does not have an office at the port concerned) you can request deferment in the following ways.
a. Where you (the sub-agent) are shown as the declarant on the entry.
b. Where the main agent is shown as the declarant on the entry and you (the sub-agent) sign the declaration as a representative of the main agent:
More information is contained in Notice 476 and Notice 179 respectively.
Yes. We send you statements at approximately weekly intervals, that is, 4 for each calendar month. We call this the periodic deferment statement. It summarises details of your deferments (including excise duty) at each of our accounting centres. It also shows the total amount you have deferred so far in the month. This helps you to monitor your deferred transactions against your guarantee limit.
If you have a query, you should contact your agent in the first instance. If the query cannot be resolved with your agent, you should take it up immediately with the accounting centre identified on the statement by providing the relevant transaction details.
Please note that the Central Deferment Office should not be contacted with statement transaction queries. However, if required, they can provide a list of accounting centres with their addresses and phone numbers.
We do not normally send out 'NIL' statements, unless they contain amounts brought forward from previous statements.
It is important that you retain the original versions of your (DD1723) deferment statements. In the event that copies are required, requests can be made to the Central Deferment Office at Southend (see paragraph 6.2). However, requests for large numbers of statements will only be considered on their individual merits.
Note: If any alterations are required to your (DD1723) statement address, or if a ‘For attention of’ would be beneficial to you, please notify the Central Deferment Office in writing of your requirements.
A requirement of the BACS system of direct debit is that 14 days notice of the amount to be debited is usually given. As charges may be deferred up to a few days before payment day we are unable to comply with this requirement. The direct debit instruction, form C1202, contains a statement (Direct Debit Guarantee) that less than 14 days notice will be given before the direct debit is made.
No. Deferment statements may not be used as evidence for input tax deduction on VAT returns. This is normally provided by a monthly VAT Certificate (C79) that is sent to your VAT registered address on or about the 12th of each month.
The C79 will show all import VAT that has been paid by you during the month. Please note that the monthly total on your deferment statement will not necessarily reconcile with your VAT Certificate (C79) as deferment is only a part of all VAT transactions – some of which may have been paid by other payment methods. Excise and customs duties appearing on your deferment statement will also not be shown on your C79.
Copies of VAT Certificates can be requested by fax to The VCU Microfilm Unit on 01702 367385. Please note that these are not available from the Central Deferment Office.
Refer to Notice 702 (Section 8 – Import VAT Certificates) for further information.
Any queries relating to specific transactions on your VAT Certificates must be referred in the first instance to your agent and then to the accounting centre identified on the certificate. Please note that VAT Certificate queries should not be directed to the Central Deferment Office.
Yes. The Duty Deferment Electronic Statements (DDES) service offers a facility to obtain copies of your periodic deferment statements electronically via the Internet. The facility provides the option to view, print or download selected statements.
In order to use DDES you must register, enrol and activate the service through a central registration process within the Government Gateway. The Government Gateway is an Internet site managed by the Cabinet Office and is the starting point for all electronic Government services.
Once you have completed the central registration process you can access DDES by going into our HMRC website www.hmrc.gov.uk and select the ‘Electronic Services’ and ‘DDES’ links.
If you are interested in using this service, more information on electronic services is provided on the Government Gateway website and our HMRC website www.hmrc.gov.uk – simply select the ‘Electronic Services’ and ‘DDES’ links.
If you are an agent making a bulked entry for goods consigned to several importers, you may use your own account to defer the charges payable. You cannot defer these charges against individual importers accounts.
If you enter for Community use goods from the Inward Processing Relief (IPR), or the Processing under Customs Control (PCC) regimes, you may defer the duties or levies, which become payable. You should request deferment on the relevant free circulation entry.
Note: Direct Trader Input (DTI) processing queries must be directed to the helpdesk at the Entry Processing Unit (EPU) at the port of entry concerned. These queries should not be directed to the Central Deferment Office.
By applying to operate a deferment account, you (the Deferment Holder) agree to meet the following approval criteria.
You must notify us immediately of any changes to your financial status by contacting the Central Deferment Office.
You must pay all deferred charges by BACS direct debit. This is the only method of payment that we will accept. If an emergency prevents us from collecting charges in this way, we reserve the right to collect deferred charges by an alternative payment method upon prior notification.
We (HMRC) reserve the right to suspend a duty deferment facility if the direct debit instruction is cancelled without a suitable replacement being provided.
We reserve the right to suspend a duty deferment facility that has outstanding payments. You will be given notification of such action.
We reserve the right to charge interest on late payment of deferred customs debts.
We reserve the right to revoke a duty deferment facility that persistently has outstanding payments. You will be given prior written notification of such action.
Where a deferment facility is revoked, you will have the right to appeal against this decision.
You must notify us immediately if your bank details change. You must arrange for your bank to notify us of the new details, and send us a new direct debit instruction, if necessary, at least 10 days before your next payment is due. You must not cancel your previous direct debit instruction until the new one is in place.
If you wish to cancel your duty deferment facility you must not cancel your direct debit instruction until all outstanding deferred payments have been made on the due date(s).
We reserve the right to hold an agent/third party who acts as an indirect representative of an importer on an entry, using either their own deferment facility or an importer's deferment facility to pay charges, jointly and severally liable for any deferment debt that may arise as a result of that entry.
Agents/third parties who act as declarants on an import entry, and use their own deferment facility to pay charges on behalf of someone else, will be held jointly and severally liable for any deferment debts that may arise as a result of that entry.
You must provide security for all deferred charges in the form of a guarantee from an independent guarantor. The guarantor must be approved by us to provide guarantees for this purpose.
The guarantee provided must be sufficient to cover all deferred charges in any calendar month. You must ensure all deferred charges for each calendar month remain within your guarantee level.
You can apply to have your guarantee level revised at any time by providing a new guarantee or a Notice of Amendment from your guarantor.
We reserve the right to refuse to allow charges to be deferred if your guarantee level is exceeded.
We reserve the right to suspend and revoke a duty deferment facility if the guarantee level is persistently exceeded. You will be given prior written notification of such action.
We reserve the right to suspend and revoke a duty deferment facility if the guarantee is cancelled, or withdrawn, without a suitable replacement being provided.
Where a deferment facility is revoked, you will have the right to appeal against this decision.
If you have approval to operate a reduced security scheme for specific types of deferred tax, you must continue to provide full security for all other deferred taxes (see paragraph 11.7 (SIVA)).
We reserve the right to suspend duty deferment facilities if changes are not notified to us promptly.
SIVA approval will only allow you to reduce your deferment guarantee in respect of Import VAT paid through your duty deferment account. You must ensure that the guarantee provided is sufficient to cover your other liabilities at all times.
Where a deferment guarantee is provided, the criteria outlined in paragraph 11.5 above must continue to be met.
Where reduced security applies, you must provide a schedule (form SIVA 2) of your anticipated deferred charges per calendar month in order to determine your level of guarantee and set a Deferment Account Limit.
We have final responsibility for determining if your level of guarantee is adequate and reserve the right to refuse any requests for reduction.
We have final responsibility for setting the Deferment Account Limit and reserve the right to revise the limit at any time. This limit will be advised to you in writing.
You can apply to have your Deferment Account Limit revised at any time by completing a new schedule (form SIVA 2) of deferred charges.
You must ensure all deferred charges remain within the Deferment Account Limit for each calendar month.
We reserve the right to refuse to allow charges to be deferred if your Deferment Account Limit is exceeded.
We reserve the right to suspend and revoke duty deferment facilities where Deferment Account Limits are persistently exceeded. You will be given prior written notification of such action.
Where a deferment facility is revoked, you will have the right to appeal against this decision.
You must continue to meet the approval criteria for operating duty deferment and be compliant in all your dealings with us. We reserve the right to withdraw your SIVA approval, and demand full security, at any time if your level of compliance falls.
We reserve the right to vary or revise these approval criteria by prior notification. Where a criteria is added, revised or revoked it will not affect the validity of any of the others.
We would be pleased to receive any comments or suggestions you may have about this notice. Please write to:
HM Revenue & Customs
Finance – Tax Accounting Policy
9th Floor SE
Please note this address is not for general enquiries.
For your general enquiries please phone the National Advice Service on 0300 200 3700.
For further information about our complaints procedures go to www.hmrc.gov.uk and under ‘quick links’ select ‘Complaints’.
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