IPR31100 - Controlling IPR: Security (suspension goods only)


A1-2

Financial Security. Taking security is normally the exception rather than the rule, however it must always be taken where the trader:


is a “Phoenix” trader (where an authorisation holder has gone into liquidation, starts another business and applies for an authorisation to use inward processing (suspension system), security must always be a condition of the authorisation
intends to transfer goods listed in Annex 44C of Regulation 2454/93IPR101800
has a poor revenue record (perhaps in regard to VAT or Excise)
is acting on behalf of a non Community trader and may not have sufficient assets to meet any potential debtIPR41000
is being considered for offence actionIPR270000
is in financial difficulties or has been involved in an insolvency
will be using prior export equivalence and the equivalent free circulation goods are subject to export duties
will be entering a catalyst to assist in the processing of free circulation goodsIPR171000

Where a decision to take security is made after an authorisation has been granted, the amount taken should be sufficient to cover any suspension goods currently in stock as well as future entries.

If security is not taken and we are subsequently unable to collect any customs debts incurred on goods entered to IPR, failure to demonstrate that proper and positive action has been taken could result in demands for payment of own resources by the EC ie the department itself may have to meet the debt owed to the EC Commission.

Council Regulation 2913/92 Articles 88 and 190