Don’t have a Duty Deferment Account but want to reap the benefits of deferring Duty? Well, you’ve come to the right place. We’ll remove the need to set up an account and the need to obtain a guarantee from the bank. In other words, keep Import Duty simple, use our Duty Deferment account and take full advantage of all it offers.
WHAT IS DUTY DEFERMENT?
To take full advantage of deferring Duty, it’s important to understand what it is. Firstly, deferring Duty enables Importers to make one single payment to HMRC on the 15th of each month following physical Import.
The payment amount is the total of Customs Duty and Import VAT due from the previous month. However, If Duty isn’t deferred Importers pay Duties and VAT upfront each and every time a consignment passes through Customs. Consequently, this increases admin time and chance of human error. Duty deferment is mostly beneficial for frequent Importers.
BENEFITS OF DEFERRING DUTY
Deferring Customs Duty and Import VAT brings many benefits for Importers:
- Goods are cleared and delivered without delay, subject to Customs Duty and Import VAT paid at a later date.
- Importers effectively benefit from six weeks of positive cash flow. No interest is charged by HMRC on deferred Customs Duty or Import VAT due.
- Possession of a Duty Deferment Account (DDA) opens up customs warehousing benefits. Goods stored in a Customs Warehouse further extends the period in which you can defer Duty and VAT.
HMRC NEED A GUARANTEE
For some Importers a Deferment Account is unviable. This is mainly due to HMRC requiring security on the account in the form of a guarantee.
Guarantees are usually provided by Banks and are subject to certain conditions. These conditions can differ but typically will require a cash deposit equal to the guarantee amount or a restriction on borrowing, which could restrict working capital.
The guarantee must be sufficient to cover two months of liability. This is because the limit in month two could be reached before payment is collected from month one.
DEFER DUTY WITH AMCO
AMCO make use of special Customs procedures and trade agreements. It’s our duty to ensure our Customers only pay Duty and VAT where required to do so. For those customers that don’t have a Duty Deferment Account (DDA) to pay Import Duty, we offer the use of our account, it’s the fastest method for paying taxes to clear goods through customs.
Keep Import Duty simple, use our Duty Deferment account and take full advantage of all it offers.
Logistics For Your World
AMCO are here to help