TQGN2150 - General principles: security for duty

When security is required

When an importer claims Tariff Quota (TQ) relief and you are uncertain of the outcome of the claim, secure the non-quota rate of duty. Table 2 at TQGN3100 provides more information on the securities which can be accepted.

This situation would arise when:

• the quota was critical or
• the preference or other documents were incomplete.

Forms of security

Security may be given by:

• a Miscellaneous Cash Deposit (MCD)
• a banker's guarantee which may be

In either case the guarantee must be endorsed by an approved financial institution listed in A4-1 (Receipt, custody and disposal of money) Appendix E.

Claims made against critical quotas

Such claims cannot be accepted without some form of security. Provisional claims may not be made while the goods remain in Customs charge. Claims can be made only for goods in free circulation. The goods may not be regarded as warehoused goods pending the outcome of a claim. Reject attempts to make claims in these circumstances.

Bankers' standing guarantees

The NIDAC are responsible for setting up, maintaining and cancelling guarantees on Customs Handling of Import and Export Freight (CHIEF). Guarantee applications are to be sent to them.

Delivery against standing guarantee

Importers requesting delivery at the quota rate against a standing guarantee must endorse the entry

'I/we request delivery at the tariff quota rate under the conditions of standing guarantee number..........'.

The importer or authorised agent is to sign and date the request.

Advice to the NIDAC

There is no need to send the NIDAC an advice of transactions under guarantees as they are advised through CHIEF of all entries proper to them.