A Duty Deferment Account for Paying Customs Duty to HMRC

Have you ever wondered how to make the process of paying duty and tax on imported goods easier? A duty deferment account could be the answer. In this article you'll learn what a duty deferment account is and how to set one up with HMRC (Her Majesty's Revenue and Customs) in the United Kingdom, step by step.

What is a duty deferment account?

A duty deferment account is a special account that lets importers delay payment of duty, excise duty and VAT on imports. This means that instead of paying for each shipment individually, you can make a single monthly payment by Direct Debit.

Who can set up a duty deferment account?

A duty deferment account can be set up by importers, people representing importers, and people releasing goods from an excise warehouse. You can also use a customs agent's services to arrange duty deferment.

How do you set up a duty deferment account?

Step 1: Decide which account is right for you

New duty deferment rules apply in the United Kingdom. Most businesses will not need a financial guarantee on their duty deferment account. You can apply for a new duty deferment account.

Step 2: Submit your application

You can apply for a new duty deferment account. You have the option of applying for a guarantee waiver, to avoid needing a financial guarantee, or you can still obtain a financial guarantee.

Step 3: Wait for your application to be processed

Once HMRC has received all the information needed to process your application, it aims to complete the process within 30 working days. If you need to apply for a financial guarantee, this process can take longer.

Summary

Setting up a duty deferment account is a process that can make importing much easier. This solution lets you delay payment of duty, excise duty and VAT, which allows for better cash-flow management. Bear in mind, however, that the process requires careful thought and proper preparation.