How to set up an account to defer duty payments when you import goods

Guide

Last updated 21 October 2022

If you import goods regularly, you can apply for a duty deferment account to delay paying most customs charges, for example:

Customs Duty
excise duty
import VAT

A duty deferment account lets you make one payment a month through Direct Debit instead of paying for individual consignments.

If you want to apply for a duty deferment account to use in Northern Ireland from 1 January 2021 or the UK before 1 January 2021, you can apply for a duty deferment account if you’re an importer or someone who represents importers and have an approved guarantee or waiver in place.

Apply to defer Customs Duty

If you want to defer Customs Duty you must:

Decide if you want to reduce financial guarantees by using by Authorised Economic Operator customs simplifications (AEOC)
Apply for a duty deferment account and guarantee.
Ask your bank, building society or insurance company to guarantee your duty payments.
Fill in a Direct Debit instruction.

Apply to defer excise duty

If you want to defer excise duty (such as tobacco, alcohol or certain oils) you must:

Decide whether you want to reduce financial guarantees using the Excise Payment Security System.
Apply for a duty deferment account and guarantee.
Ask your bank, building society or insurance company to guarantee your duty payments.
Fill in a Direct Debit instruction.

Apply to defer import VAT

You do not need a duty deferment account to delay paying VAT if you are registered for VAT. You can defer when you account for import VAT on your VAT Return.

If you are not registered for VAT or do not wish to account for import VAT on your VAT Return, to defer VAT you must:

Decide whether you want to reduce financial guarantees using Simplified Import VAT Accounting.
Apply for a duty deferment account and guarantee.
Ask your bank, building society or insurance company to guarantee your duty payments.
Fill in a Direct Debit instruction.

After you’ve applied

If your application is approved and a Direct Debit is in place you will get a deferment approval number. You’ll need to use this on your import declarations or to remove goods from an excise warehouse.

Authorise someone to use your deferment approval number

If you’re using Customs Handling of Import and Export Freight (CHIEF) system

You can give someone authority to use your duty approval number to request deferment of duty payment. Use either:

form C1207N
form C1207S for a specific consignment — you can only use C1207S when your account is active

You’ll need to:

Open and complete these forms online. As you cannot save your progress, you may want to get all your information together before you start.
Fill in form C1207N or form C1207S.
Print and post it to HMRC, using the postal address shown on the form.

If you use Customs Declaration Service

You can give someone authority to use your duty deferment account number by logging into your Customs Declaration Service dashboard and using the view your customs financial accounts service.