Under Customs Freight Simplified Procedures (CFSP), all duties and VAT that traders owe for goods have to be paid using a duty deferment account. This procedure is operated through the HMRC Customs Handling of Import and Export Freight system. The advantages for traders include up to a month's credit facility and the ability to pay by BACS (banks automated clearing system).
Duty deferment and security guarantees
Both traders and their representatives (such as agents, if CFSP-authorised) must pay by duty deferment account. Granting duty deferment facilities depends on traders providing a guarantee of financial security. Security will take the form of a blanket authority to debit the authorised traders' deferment account. Guarantees cover the overall maximum amount in any calendar month of your liabilities.
Setting up a duty deferment account
The amount in the duty deferment account has to be enough to cover your duty and VAT liability for one calendar month.
You can reduce the amount you'll need to keep in the duty deferment account if you belong to the Simplified Import VAT Accounting (SIVA) system or apply for a reduced security facility. Read more about SIVA deferring.
If you have CFSP authorisation and you pay some or all of your duties and taxes to HMRC through a third parties duty deferment account, you may be able to reduce the amount of security you provide. The security is reduced from a month's dues to what you would owe over eight to ten days. However, it should still cover your own and any clients' liabilities for all goods imported under the scheme. Your duty deferment account should still cover a full month's worth of revenue payments.
Under this scheme you must submit Supplementary Declarations regularly within a shorter time (a minimum of eight days), and complete a Final Supplementary Declaration within four working days of the end of each duty period.
To apply, contact your local Customs office. You can find your local Customs office by contacting the HMRC Excise & Customs Helpline on Tel 0300 200 3700.