Duty deferment account

Also called: deferment · deferred payment

An arrangement letting an importer pay duty and import VAT periodically instead of per consignment. In the UK it is a duty deferment account with monthly direct debit, normally backed by a guarantee; EU member states offer deferred payment under the UCC.

In practice

It speeds up clearance and improves cash flow, but the guarantee limit must cover peak monthly charges.

Applies to: UKEU

Related terms

Customs guarantee
Financial security, such as a cash deposit, bank guarantee or surety undertaking, provided to ensure payment of a customs debt that has arisen or may…
Postponed VAT accounting
A scheme under which the importer declares and deducts import VAT in its VAT return instead of paying it at the border. The UK made it available to…
HMRC
The UK tax and customs authority, responsible for collecting customs duty, import VAT and excise, issuing advance rulings and running CDS. Border…

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