Consultation outcome: Double Taxation Treaty Passport scheme review

Updated: Published the new Double Taxation Treaty Passport Scheme – Terms and Conditions and Guidance

This consultation will enable HMRC to review the Double Taxation Treaty Passport (DTTP) scheme to ensure that it still meets the needs of UK borrowers and foreign investors. It also seeks views on extending the scope of the DTTP scheme to investors entitled to sovereign immunity from UK tax (“sovereign investors”), pension funds and other entities.

Source: HMRC

Form: Send a Customs Comprehensive Guarantee from an approved guarantor to HMRC

Updated: The contact details for approved banks or financial institutions HMRC can accept as a guarantor has been updated.

Use the CCG2 to provide a new Customs Comprehensive Guarantee (CCG) from an approved bank or financial institution, or to amend an existing guarantee.

For a list of approved bank or financial institutions that HMRC can accept as a guarantor contact the Central Deferment Office:

Email: cdoenquiries@hmrc.gsi.gov.uk
Telephone: 03000 594 243

You’ll need to provide your financial guarantee once you’ve been given a CCG authorisation. HMRC will tell you what level of CCG you’ll need to cover.

Before you start

If you are using an older browser, for example Internet Explorer 8, you’ll need to update it or use a different browser. Find out more about browsers.

You’ll need to fill in the form fully before you can print it. You cannot save a partly completed form so should you gather all your information together before you begin to fill it in.

Source: HMRC

Detailed guide: Import and export: customs guarantees

Updated: Guidance has been updated to include completing questionnaire CCG1a.

A customs guarantee is an agreement to cover a customs debt that has or will arise from certain customs procedures. This is known as an actual or potential debt.

Once you’re authorised, you’ll need to provide a guarantee to enter goods into a customs procedure and defer customs duties. What kind of guarantee you need, and how it works, depends on the circumstances. You can use:

  • an individual guarantee – to make a one-off application for a special procedure, up to 3 times every 12 months
  • a CCG – to apply for new customs authorisations and approvals

Individual guarantees

You can use an individual guarantee when you apply to use a special procedure as a one-off on your customs declaration. You can’t do this more than 3 times in a 12-month period.

You must give an individual guarantee to cover 100% of the Customs Duty. There are no reductions or waivers available for these types of guarantees, even if you have Authorised Economic Operator for Customs (AEOC) status.

You can give your guarantee using a:

Use a deed of guarantee

Your guarantor must be a bank or insurance company that has HM Revenue and Customs (HMRC) approval. They need to provide the guarantee on form C&E250 before the goods are released.

Most banks and insurance companies have approval to act as a guarantor. Call the HMRC National Temporary Admissions Team on 03000 588 538 if you need to check a guarantor.

General Guarantee Account

Unless the Tariff says otherwise, a guarantee account can be used to secure any charges for which a deposit would normally be needed, including:

  • VAT on import goods
  • customs duties
  • excise duties
  • charges imposed under the Common Agricultural Policy of the EU
  • Anti-Dumping or Countervailing Duties imposed by the EU

You can get more information in Notice 102: General Guarantee Accounts.

Customs Comprehensive Guarantee (CCG)

You need to hold a CCG authorisation if you want to apply for new customs authorisations or approvals that defer or suspend the payment of duty.

When you need to hold a CCG

Under the Union Customs Code (UCC), from 1 May 2016 you need to hold a valid CCG if you want to apply for new customs authorisations and approvals. You’ll also need this if you have a duty deferment account relating to customs duties to defer or suspend the payment of duty.

If you have a Customs Community Code (CCC) authorisation with no end date, you have until 30 April 2019 to get your authorisation or approval reassessed by HMRC. You’ll need to have a CCG in place from 1 May 2019.

From 1 May 2016 you’ll need a UCC authorisation and a CCG if you want to make retail sales in a customs warehouse.

You can continue to use any comprehensive transit guarantees, reductions, or waivers issued before 1 May 2016 until the transit guarantee authorisation is reassessed by HMRC.

You can also continue to use Simplified Import VAT Accounting Scheme authorisations after 1 May 2016 until the authorisation is reassessed.

You need to apply for a guarantee straightaway for any new authorisations and approvals for customs special procedures granted on or after 1 May 2016.

These include:

  • inward processing
  • Outward Processing Relief with prior importation
  • temporary admission, with some exceptions
  • end-use
  • temporary storage
  • customs warehousing

Apply for a CCG if you need a new deferment account to cover your customs duties. You won’t need to provide the security until you’ve been told by HMRC that you’ve been authorised to have a customs duty deferment account.

You don’t need a CCG if you only operate an Excise Payment Security System account and don’t have any customs activities.

How to apply for a CCG

Apply for a CCG using form CCG1 and questionnaire CCG1a.

You’ll need to provide calculations to support the guarantee reference amount (guarantee limit), correctly apportioned between all your actual and potential debts. Your total reference amount should account for:

  • duty deferment account
  • excise-only activities, if they’re part of International Trade activities
  • potential debts applied to any Customs Special Procedures
  • temporary storage facilities
  • goods declared using a Customs Freight Simplified Procedures declaration (covering the period between the initial declaration and the supplementary declaration)

It can take up to 120 days to authorise a CCG.

Conditions for getting a CCG

To get a CCG, you need to:

  • be established in the EU
  • have no serious or repeated infringements of customs or tax rules
  • have no record of serious criminal offences related to your business activities

Your past 3 years will be checked against these conditions. If you’ve not been established for 3 years then you’ll be assessed against the remaining conditions on the available information and records.

HMRC will carry out assurance checks before issuing a CCG authorisation. This will tell you if you’re entitled to reductions and waivers and what level of CCG you’ll need to get from your guarantor(s). You’ll then need to provide the securities to HMRC using either:

You must get your financial guarantee from one of the approved financial institutions:

Not meeting the conditions

Applying for a CCG and not meeting the conditions

If you don’t meet the conditions when you apply for a CCG there are other ways to secure or pay for the customs debt. You can use an individual guarantee or other methods of payment such as cash or credit cards.

No longer meeting the conditions after a CCG is in place

If your application was successful and you have a CCG, you must make sure you continue to meet the conditions.

If your circumstances change and you fail at any time to meet the conditions associated with the guarantee waivers or reductions, you’ll no longer be entitled to receive these benefits and will need to amend your CCG amount.

It’s your responsibility to:

  • calculate the reference amount
  • monitor the reference amounts against customs activities
  • ensure enough coverage by the appropriate guarantee method
  • consider other methods of payment, for example using an individual guarantee for one large transaction to avoid going above the CCG
  • tell HMRC if you need to amend your guarantee level

HMRC will regularly check the use of the guarantees in place and will tell you if guarantee levels are wrong.

CCG waivers and reductions

There are some circumstances where a CCG can be reduced or waived. The guarantee requirement could be reduced to 50%, 30%, or a waiver for potential debts. When you complete questionnaire CCG1a you need to select the level of guarantee you’re applying for. HMRC will assess your eligibility for these.

A CCG may be waived when your potential debt reference amount for the import or export duty to be secured doesn’t go over the current statistical threshold, which is set at 1,000 euros or £873 in the UK. This amount is reviewed on a regular basis.

The waiver will apply for full authorisations only in the following customs procedures:

  • inward processing
  • customs warehousing
  • temporary admission
  • end-use
  • temporary storage
  • Customs Freight Simplified Procedures

These rules also apply to goods declared by post under the universal postal provider (for example, Royal Mail Group or Parcelforce).

This doesn’t apply to individual transactions entered to a special procedure using the authorisation by declaration special procedure, such as simplified inward processing.

If your reference amount for each of the customs procedures under potential debt is equal to or less than the statistical threshold you don’t need to include it on your CCG. You’ll still need to fill in a CCG1 form if you need to cover the actual debts (duty deferment).

You must tell HMRC of any changes that may affect your authorisation. You must contact your supervising office if you benefit from a waiver and the amount of Customs Duty suspended changes and goes over the threshold.

Authorised Economic Operator for Customs (AEOC) status: CCG waivers or reductions

From 1 May 2016, only businesses with AEOC authorisation are eligible for the reduction on their deferment guarantee. As an AEOC you would also be eligible for a full waiver for the potential debt.

If you have AEOC status you’ll be eligible for a reduction to 30% of actual debts – for example, deferment accounts.

Potential debts guarantee can be reduced to 0%.

If an AEOC authorisation is suspended or revoked by HMRC, or withdrawn by the business, you’ll need to meet the full guarantee requirements as you’ll no longer be entitled to these benefits.

Becoming an AEO to get a guarantee reduction or waiver

You’ll need an AEOC authorisation to reduce the guarantee covering the payment of actual debts. This will reduce the level of deferment guarantee.

You don’t need an AEOC authorisation to get a waiver or reduce the guarantee for potential debts (for example, goods held in duty suspension), but certain AEO conditions will still have to be met.

Changes affecting a deferment guarantee and account

A deferment account can continue if it was in place before 1 May 2016 and there’s no significant changes to your circumstances. You can see examples of significant changes that mean you’ll have to apply for a new authorisation in Customs Information Paper 4 (2017): Union Customs Code (UCC) Reauthorisation triggers.

HMRC doesn’t class the following as significant changes:

  • a change to your Deferment Account Level
  • a change to your Deferment Guarantee Level
  • a change of guarantor

As soon as you’re aware of a significant change you must complete a CCG1 form. HMRC will then re-assess the criteria to keep the deferment facility. You’ll need to meet the UCC guarantee conditions to keep the deferment facility.

If there is a change and it affects another customs authorisation held by you, the new CCG arrangements will apply to the goods covered by that authorisation.

If your deferment account only covers excise and related charges with no customs duty, there won’t be any impact on your account under the UCC changes.

Joint Contractual Liabilities (JCL)

You can consider using a JCL for potential debts. This is an alternative to a guarantee secured by a financial institution, and must be provided by a legal entity established in the EU.

A JCL can only cover potential debts. You can have:

  • one JCL to cover all potential debts
  • multiple JCLs covering different customs activities

The third party legal entity acting as the guarantor for the JCL will need to meet the conditions covered in this guide. They’ll also need to provide financial accounts covering the last 3 years.

A JCL can’t be used to cover the actual debt, as this still needs to be covered under the CCG. JCLs can only cover potential UK debts. They aren’t available for cross member states approvals.

Source: HMRC

Guidance: Customs Information Paper 32 (2016): ToR consignments – UK clearance, approved depositories and transit to EU

Updated: The customs policy email address in section 3 has been updated.

From 1 May 2016 onwards, you should make out a transit declaration for all non-UK consignments of household effects, personal property and private vehicles for immediate onward delivery to the member state after arrival into UK.

Alternatively, these consignments can be customs cleared to free circulation upon arrival into the UK with the proper payment of all import duties and other charges liable. The owner of that consignment may then apply retrospectively for ToR relief from the customs authority of the member state where they then set up their new residence. However, there is no guarantee that the relief will be awarded and UK customs will not be able to influence the decisions made by the host customs authority.

Source: HMRC

Form: Tell HMRC you’ve disposed of End Use goods entered into the UK

Updated: An address to send postal forms and supporting documents has been added.

To complete the form you’ll need:

  • your Economic Operator Registration and Identification (EORI) reference number, this begins with 2 letters and is followed by 12 to 15 numbers, like GB123456789000

  • import details including:

    • Entry Processing Unit
    • Import Entry number
    • import date
    • rate of yield
    • how imported goods were put to their prescribed end-use
    • goods description or commodity code

You can either:

  • use the online form service (sign in to, or set up a Government Gateway account)
  • print and post the form

If you use the online form, you’ll get a reference number that you can use to track the progress of your form.

Before you start using the postal form

If you’re using an older browser, for example Internet Explorer 8, you’ll need to update it or use a different browser. Find out more about browsers.

You’ll need to fill in the form fully before you can print it. You cannot save a partly completed form so we suggest you gather all your information together before you begin to fill it in.

Send the completed form and any supporting documents to:

National Import Reliefs Unit

Dorchester House

52-58 Great Victoria Street

Belfast

Northern Ireland

BT2 7WF

Import and export: Inward Processing bill of discharge (BOD1)
Use form BOD1 when you dispose of Inward Processing goods that you imported with a full customs authorisation.

Import and export: End-Use bill of discharge (BOD2)
Use form BOD2 when you dispose of End-Use goods that you imported with a full customs authorisation.

Import and export: Inward Processing bill of discharge (BOD3)
Use form BOD3 when you dispose of Inward Processing goods that you imported using authorisation by declaration.

Notice 3001: customs special procedures for the Union Customs Code
Guidance on customs special procedures under the Union Customs Code.

End-Use Relief
Guidance on how to claim relief on duty for certain goods imported into the EU that are put to a specific use.

Source: HMRC

Form: Bill of discharge for Inward Processing goods with full customs authorisation (BOD1)

Updated: The address to send form BOD1 has been updated.

Use this form to let HMRC know you’ve disposed of goods imported under Inward Processing with full customs authorisation.

Information you’ll need

You’ll need the following details to hand complete the form:

  • your Inward Processing authorisation number; this begins with IP and is followed by 9 numbers, like IP123456789; you can find this on your Inward Processing authorisation letter
  • Economic Operator Registration and Identification (EORI) number, this begins with two letters and is followed by 12 to 15 numbers, like GB123456789000
  • authorisation holder’s details
  • date the bill of discharge is due
  • details of goods declared into Inward Processing including:
    • Customs Import Declaration reference
    • economic code
    • commodity code
    • description
    • customs value
  • amounts of customs charges suspended
  • details of any disposals of goods, including:
    • disposal reference number
    • date of disposal
    • free circulation declaration number
    • method of valuation
    • method of disposal
    • economic code
    • commodity code
    • description
    • quantity
    • rate of yield
  • amounts of customs charges that relief is being claimed on
  • details of any authorisations that you have to carry goods forward to the next accounting period, including:
    • Customs Import Declaration reference
    • date of Customs Import Declaration
    • quantity
    • period of extension

You can either:

  • use the online form service (sign in to, or set up a Government Gateway account)
  • fill in the form on-screen, print and post it to HMRC

If you use the online form, you’ll get a reference number that you can use to track the progress of your form.

Before you start using the online form

If you need to send additional information in the form of a trader-based schedule, you must also give:

  • the contact and address details on your authorisation letter for Large Business Service (LBS) traders
  • the address for non-LBS traders
  • your tracking reference number given when you submit the online form

Send this to:

IP Bills Of Discharge Team

BP3001 Warkworth House,

Benton Park View

Newcastle Upon Tyne

NE98 1ZZ

Before you start using the postal form

If you’re using an older browser, for example Internet Explorer 8, you’ll need to update it or use a different browser. Find out more about browsers.

You’ll need to fill in the form fully before you can print it. You cannot save a partly completed form so have all your information together before you start filling it in.

Import and export: End-Use bill of discharge (BOD2)
Use form BOD 2 when you dispose of End-Use goods that you imported with a full customs authorisation.

Import and export: Inward Processing bill of discharge (BOD3)
Use form BOD 3 when you dispose of Inward Processing goods that you imported using authorisation by declaration.

Import and export: End-Use bill of discharge (BOD4)
Use form BOD 4 when you dispose of End-Use goods that you imported using authorisation by declaration.

Notice 3001: customs special procedures for the Union Customs Code
Guidance on customs special procedures under the Union Customs Code.

Source: HMRC