Key Takeaways
- A customs guarantee covers potential customs duty, import VAT and excise debts to HMRC
- Most GB businesses do not need a guarantee for duty deferment unless insolvent or non-compliant
- Northern Ireland businesses still require guarantees for duty deferment accounts
- Customs Comprehensive Guarantees (CCG) cover multiple procedures under one guarantee
- Individual guarantees can be used for special procedures up to 10 times in 12 months
- Individual guarantees for transit are limited to 3 uses in a rolling 12-month period
- Guarantee amounts can be reduced to 50% or 30% if you meet certain criteria
- Joint Contractual Liability (JCL) allows separate entities to guarantee each other’s debts
- Guarantee types are coded: 0 (waiver), 1 (CCG), 2 (individual), 4 (voucher), 9 (multiple)
- Apply through your Government Gateway account; approval typically takes 2-4 weeks
What Is a Customs Guarantee?
A customs guarantee is a financial safety net for HMRC. It is an agreement between you, a guarantor (usually a bank or insurance company), and HMRC that covers any customs debts you might incur. If you fail to pay duty, import VAT, or excise, the guarantor pays instead.
Customs debts arise when you:
- Import goods and defer duty payment (duty deferment)
- Use special customs procedures (inward processing, temporary admission, customs warehousing)
- Move goods under transit procedures (T1, T2, common transit)
- Store goods in a customs warehouse
The guarantee ensures HMRC gets paid even if your business becomes insolvent or you simply fail to pay on time.
For most straightforward imports into Great Britain, you do not need a guarantee. You can use the duty deferment scheme without one, provided you have no history of insolvency or serious customs non-compliance. Northern Ireland follows different rules under the Windsor Framework, and guarantees remain mandatory there for duty deferment.
Types of Customs Guarantees
HMRC recognises several guarantee types, each with a specific code used in customs declarations:
| Code | Type | Description |
|---|---|---|
| 0 | Guarantee Waiver | No guarantee required; HMRC waives the requirement |
| 1 | Customs Comprehensive Guarantee (CCG) | Covers multiple procedures and debts |
| 2 | Individual Guarantee (by Guarantor) | Single use, backed by a third-party guarantor |
| 4 | Individual Guarantee Voucher | Pre-paid voucher for single use |
| 9 | Individual Guarantee (Multiple Usage) | Can be used multiple times within limits |
Customs Comprehensive Guarantee (CCG)
A CCG is the most flexible option. It covers multiple customs procedures and can be used repeatedly. You need authorisation from HMRC before you can use a CCG.
A CCG covers:
- Duty deferment (if required)
- Special procedures (inward processing, temporary admission, end use, customs warehousing)
- Transit movements (common transit convention)
- Any other customs debt that might arise
The guarantee amount is calculated as a percentage of your potential customs debts. For duty deferment, it is typically 100% of your average monthly duty liability. For special procedures, it is based on the value of goods under the procedure.
You can apply for a guarantee reduction if you meet certain criteria. A 50% reduction is available if you have been VAT and duty compliant for two years. A 30% reduction is available if you have AEO (Authorised Economic Operator) status.
Individual Guarantee
An individual guarantee covers a single customs debt or a limited number of transactions. It is simpler to arrange than a CCG but less flexible.
For special procedures: You can use an individual guarantee up to 10 times in a rolling 12-month period. This limit was increased from 3 times in September 2025. If you exceed this limit, you must apply for a CCG.
For transit: The limit remains at 3 uses in a rolling 12-month period. Transit movements carry higher risk, so HMRC restricts frequent use of individual guarantees.
Individual guarantees are suitable for:
- One-off imports under special procedures
- Businesses testing a new customs procedure before committing to a CCG
- Occasional transit movements
- Situations where a CCG application is pending
Guarantee Vouchers
Guarantee vouchers are pre-paid guarantees purchased from HMRC. They are used for specific purposes, such as temporary admission or inward processing. The voucher is consumed when used and cannot be reused.
Vouchers are convenient for small, infrequent transactions. They are not cost-effective for regular importers.
When Do You Need a Customs Guarantee?
Great Britain: Duty Deferment
Most businesses in Great Britain do not need a guarantee for duty deferment. HMRC waives the requirement if you:
- Have no history of insolvency
- Have no serious customs compliance failures
- Are established in the UK
You will need a guarantee if:
- Your business has been insolvent in the past three years
- You have serious or repeated customs compliance failures
- HMRC has reason to doubt your ability to pay customs debts
If you are unsure, apply for duty deferment through your Government Gateway account. HMRC will tell you if a guarantee is required as part of the approval process.
Great Britain: Special Procedures
Special procedures always require a guarantee, unless you have a guarantee waiver. Special procedures include:
- Inward processing: Import goods duty-free, process them, and re-export
- Temporary admission: Import goods duty-free for a specific purpose and time limit
- End use: Import goods at a reduced or zero duty rate for a specific use
- Customs warehousing: Store goods without paying duty until they are released
You can use a CCG or an individual guarantee. If you plan to use special procedures regularly, a CCG is more efficient.
Great Britain: Transit
Transit movements require a guarantee. The guarantee covers the duty and VAT that would be due if the goods went missing during transit.
You can use:
- A CCG (if you have one)
- An individual guarantee (up to 3 times in 12 months)
- A comprehensive guarantee provided by a carrier (if they agree to act as guarantor)
Many freight forwarders include the guarantee in their transit service. Check with your carrier before arranging your own.
Northern Ireland: All Procedures
Northern Ireland businesses follow EU customs rules under the Windsor Framework. Guarantees are mandatory for:
- Duty deferment
- Special procedures
- Transit movements
The rules and guarantee amounts align with EU requirements. Northern Ireland businesses cannot use the GB guarantee waiver.
How to Get a Customs Guarantee
Step 1: Determine the Guarantee Amount
The guarantee amount depends on what you are covering:
Duty deferment: 100% of your average monthly duty and VAT liability. HMRC calculates this based on your import history or projected imports for new businesses.
Special procedures: The amount varies by procedure:
- Inward processing: 100% of the duty that would be due if the goods were released to free circulation
- Temporary admission: 100% of the duty and VAT for the goods
- Customs warehousing: Based on the value of goods stored
Transit: The guarantee covers the duty and VAT that would be due if the goods went missing. For T1 transit (non-Union goods), this is typically the full duty and VAT. For T2 transit (Union goods), no guarantee is required within the EU.
You can apply for a reduction:
- 50% reduction: Available if you have been compliant with VAT and customs obligations for two years
- 30% reduction: Available if you have AEO (Authorised Economic Operator) status
Step 2: Find a Guarantor
A guarantor must be:
- Established in the UK (for GB guarantees) or EU (for Northern Ireland)
- Authorised to provide financial guarantees
- Willing to act as your guarantor
Common guarantors include:
- Banks (most common)
- Insurance companies
- Specialised guarantee providers
The guarantor will assess your creditworthiness and may require collateral. Fees vary by provider and by the risk profile of your business.
Step 3: Apply for Guarantee Authorisation
Apply through your Government Gateway account. The application process differs slightly depending on the guarantee type:
For a CCG:
- Log in to your Government Gateway account
- Navigate to “Customs Comprehensive Guarantee” application
- Provide details of the guarantor and guarantee amount
- Submit supporting documents (guarantor agreement, financial statements if requested)
- Wait for HMRC approval (typically 2-4 weeks)
For an individual guarantee:
- Arrange the guarantee with your guarantor
- Receive the guarantee reference number (GRN) from the guarantor
- Use the GRN in your customs declaration (box 52 on the C88/SAD)
For a guarantee voucher:
- Purchase the voucher from HMRC
- Receive the voucher reference number
- Use the reference in your customs declaration
Step 4: Use the Guarantee in Declarations
Once approved, include the guarantee reference number in your customs declarations:
- Box 52 (Guarantee): Enter the guarantee type code (0, 1, 2, 4, or 9) and the GRN
- Box 53 (Place of guarantee): Enter the code for the customs office where the guarantee is lodged
For CCGs, you will receive a CCG reference number that you use in all relevant declarations.
GB vs Northern Ireland: Key Differences
The Windsor Framework means Northern Ireland follows EU customs rules for guarantees. Key differences:
| Aspect | Great Britain | Northern Ireland |
|---|---|---|
| Duty deferment guarantee | Waived for most businesses | Mandatory |
| Guarantee amounts | Set by HMRC | Aligned with EU requirements |
| Guarantor location | Must be UK-established | Must be EU or UK-established |
| AEO recognition | UK AEO only | EU AEO recognised |
| Transit guarantee | Individual limited to 3 uses | Follows EU transit rules |
Northern Ireland businesses moving goods to GB may need both EU and UK guarantees depending on the procedure used.
Practical Tips for Businesses
1. Check if you actually need a guarantee
Many GB businesses assume they need a guarantee when they do not. Apply for duty deferment first. HMRC will tell you if a guarantee is required.
2. Consider a CCG if you use multiple procedures
A CCG is more administrative work upfront but simplifies ongoing compliance. One guarantee covers all procedures.
3. Apply for guarantee reductions
If you are compliant, you can reduce your guarantee amount by 50% or 70%. This frees up credit lines with your guarantor.
4. Keep guarantee documentation accessible
HMRC may request proof of your guarantee during audits. Keep copies of:
- Guarantee agreements
- GRN confirmation from your guarantor
- HMRC approval letters
- Guarantee reduction approvals
5. Monitor your guarantee usage
For individual guarantees, track how many times you have used the guarantee in the rolling 12-month period. Exceeding the limit without a CCG in place can delay your customs clearance.
6. Review guarantee amounts annually
Your import volumes change. If your duty liability decreases, you can apply to reduce your guarantee amount. This reduces the cost of the guarantee.
7. Understand Joint Contractual Liability (JCL)
JCL allows separate legal entities to guarantee each other’s customs debts. This is useful for group structures where one entity has stronger credit than another.
For more on customs compliance, see our customs clearance step-by-step guide. For more on customs broker services, see our customs broker vs freight forwarder comparison.
Frequently Asked Questions
Do I need a customs guarantee for every import? No. Most GB businesses do not need a guarantee for standard imports. You only need one if you use duty deferment (and HMRC requires it), special procedures, or transit.
How much does a customs guarantee cost? The cost depends on your guarantor and your risk profile. Banks typically charge 1-3% of the guarantee amount per year. Specialised providers may charge more but have lower credit requirements.
Can I use the same guarantee for duty deferment and special procedures? Yes, if you have a Customs Comprehensive Guarantee (CCG). A CCG covers multiple procedures. Individual guarantees are procedure-specific.
What happens if my guarantee expires? You cannot make new declarations under the procedure covered by the guarantee. Existing declarations remain valid. Arrange a renewal before the expiry date.
How long does it take to get a CCG approved? HMRC typically takes 2-4 weeks to process a CCG application. Complex applications or requests for additional information can take longer.
Can I cancel a customs guarantee? Yes, but you must ensure there are no outstanding customs debts covered by the guarantee. HMRC must release the guarantee before your guarantor can cancel it.
What is the difference between guarantee type 2 and type 9? Type 2 is an individual guarantee for single use. Type 9 is an individual guarantee that can be used multiple times (within the 10-use or 3-use limits depending on the procedure).
For more on import costs, see our import duty UK complete guide. For guidance on special procedures and duty suspension, see our customs warehousing procedures guide. For understanding how duty deferment works, refer to our postponed VAT accounting guide.