Duty Deferment Guarantee

What is a Duty Deferment Guarantee?

Just as the Tax Warehouse Bond, a Duty Deferment Guarantee is a Revenue & Customs Bond which acts as a guarantee to Revenue and Customs for the payment of duty and taxes on imported goods. The difference being, a deferred payment facility is an authorisation that allows traders to defer payment of duties and taxes, these include customs, VAT at import, excise and VRT. This allows a trader to pay the charges due by direct debit in the following month.

In all instances, lodgement of a guarantee and compliance with the conditions of the authorisation is required. The authorisation allows the approved trader to pay the duties/taxes due by direct debit on a date in the month following the transactions. Excise Traders operating from a warehouse must operate on a deferred basis only.

For Traders, the securing of a Duty Deferment Guarantee and its deferment period provides a valuable cash flow advantage.

See Revenue for further details and guidance.


Why get a Duty Deferment Guarantee?

  • For the trader, deferring the payment of Import Duty alleviates cash flow pressures as they await import goods.
  • For the importer, it avoids delays and possible fines.
  • In the case of Excise Traders operating from a warehouse, it is obligatory.
  • For the Distillery, it allows for the deferment or suspension of the payment date for duties on spirits.
  • For the State (the Principal), it is a guaranteed that payment for import duties & taxes will be received on an agreed date.
  • It is in line with European Union transit procedures

Who requires a Duty Deferment Guarantee?

  • Excise Trades operating from a warehouse.
  • Importers
  • Exporters
  • freight forwarders (eg; food, alcohol, clothing)
  • Logistic Companies

Who is the beneficiary of a Duty Deferment Guarantee?

  • The state – Revenue & Customs

Avoiding operational delays and possible fines, whilst avoiding cash flow constraints all makes good business sense. Ensuring you have the correct Revenue & Customs Bond in place in good time is therefore good business sense.

Whether you are an Importer, Exporter, Logistics Company or the owner of a Distillery, contact Surety Bonds today to discuss your surety requirements.

To Get Started:

  • Complete the Proposal Form.
    [Download here]
  • Last two years consolidated audited accounts.
  • Up-to-date management accounts.
  • Details of banking and borrowing facilities.
    [Bank information Form here] 
    (Client needs to send to their bank for completion.)

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