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What is a Deferment Account and do I need one?
What is a Deferment Account and do I need one?

A guide to understanding deferment accounts for UK HMRC Customs, Duties and VAT payments including removals from Bonded Warehouses.

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Written by Andrzej Śliwa
Updated over a week ago

When importing goods into the UK or removing them from a customs / excise warehouse or from a free zone they may attract costs known as duties & taxes. If your goods attract these costs they must be paid immediately upon import clearance or removal to HMRC. 

Failure to pay these costs will result in your shipment / cargo being held or prevented from being moved by UK Customs and subsequently delaying your goods from reaching their intended destination.  

Duties and taxes can be costly and put a strain on your business cashflow. To help ease the burden of paying these costs upfront, at the time of import / removal, you can apply for a Deferment Account with HMRC.  

A Deferment account allows you to to delay the payment of duties & taxes until a later prescribed payment day, an average of 30 days credit. Holding an account can also help speed up the customs clearance of your goods because HMRC will not have to handle payment for the transaction.

If you do not hold a deferment account we recommend you to apply for one. You can do this by completing the following application forms which are available from the HMRC website and following their instructions accordingly.

  • C1200 Application for Approval of Deferment Arrangements

  • C1201 Guarantee for Payment of Sums Due to the Commissioners of HMRC

  • C1202 Duty Deferment - instruction to your bank or building society to pay by Direct Debit

  • C1207N Standing authority for agent/freight forwarder to request deferment of duty payment against Importer’s DAN.

However, in the meantime, Zencargo offers the possibility of you using Zencargo’s deferment account, subject to conditions. Learn more about using Zencargo's Deferment Account. 

Please note that this article is to be used as a guide only.

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