HMFSA4100 - Movement guarantees: What levels do we require for a movement guarantee?
You should normally set the following levels:
| Potential duty on an average week’s movements | Level of security |
| <£1m | 25% of potential duty |
| >£1m but <£25m | £250,000 |
| >£25m but <£100m | 1% of potential duty |
| >£100m | £1m |
In all cases you may demand a security higher than that shown
in the above bandings including, if necessary, a guarantee of more
than £1m. You may also require traders to provide a guarantee
that would cover the maximum amount of duty suspended in a single
movement. For example, you could require a guarantee of
£30,000 where this is the amount of duty suspended on a single
movement even if the Principal meets the criteria for a lower level
of guarantee.
You should also note that duty representatives (registered
under WOWG 1999 to act on behalf of non-UK owners of warehoused
goods) cannot provide movement guarantees.
