Introduction

About guarantees and guarantee waivers and when you might need them.

Guarantees became common across the UK in May 2016 under the European Union Customs Code (UCC).  Now the UK has left the EU, UK rules apply for most imports into Great Britain.  UCC rules still apply for imports into Northern Ireland, and Common Transit Convention rules for common or union transit.   

Goods that are released to ‘free circulation’ (other than in end/authorised Use) means that the goods can be openly sold on the UK market.  Duties and taxes are normally paid when goods are released to free circulation (for example, when imported). However, in some circumstances, it is possible to delay this payment.  When payment is delayed, a debt is created to HMRC and you may have to provide a guarantee as security for these debts arising from customs duty, import VAT and excise. A guarantee may also be needed when the value of import duties is unknown or disputed.

If you do not pay these debts when they become due, your guarantor becomes liable for them.

Check when you might need a guarantee

You may need a customs guarantee to import or export if you use one of the following procedures: 

  • duty deferment 
  • customs special procedures 
  • transit 

You will not usually need a guarantee to use customs special procedures or duty deferment in Great Britain (England, Scotland and Wales). You’ll be told as part of the application process if you need one. 

You will usually need a guarantee (or waiver) to use transit or customs special procedures and/or duty deferment in Northern Ireland.

Actual/potential debt and deferment/suspension

When goods are imported directly into free circulation, there is an immediate charge for tax or duty.  This is known as an actual debt.  Actual debt can be deferred and this is done by duty deferment. 

Goods can enter the country but may not go into free circulation as they enter a special procedure. Tax and duty that would normally be paid on import is suspended while the goods are in that special procedure and is called potential debt.  Potential debt may or may not become an actual debt, depending on what happens to the goods and how they leave the special procedure. Some examples of these procedures include end/authorised use, inward processing and customs warehouses.

Legislation

Legislation on guarantees can be found at: 

UK: The Customs (Import Duty) (EU Exit) Regulations 2018 Part Ten – Guarantees 

UK: Taxation (Cross-border Trade) Act 2018, Schedule 1 

EU: EUR-Lex: regulation (EU) No 952/2013 of the European Parliament and of the Council, Title III Chapter 2: Guarantee for a potential or existing customs debt