Using a duty deferment account for duty and VAT payments

Find out what a duty deferment account (DDA) is and how to use it on the Trader Support Service for goods movements to Northern Ireland.

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What is a duty deferment account

A duty deferment account allows importers to delay paying customs charges like customs duty, excise duty, and import VAT.

Rather than paying for each shipment at the border, you can clear your goods immediately and pay the total charges once a month by direct debit.

You need an EORI number starting with XI to use a duty deferment account for movements into Northern Ireland.

When a duty deferment account is used

A duty deferment account can be used when goods moving into Northern Ireland are liable for:

Customs Duty
Import VAT (where postponed VAT is not used)
excise duty

You must enter the duty deferment account number in the customs declaration to defer the payment. Otherwise you will have to pay it immediately.

When you have set up your duty deferment account in the company profile, the Trader Support Service will automatically add your account number onto your declaration.

Before you start

To use a duty deferment account, you must:

subscribe to the Customs Declaration Service
have a duty deferment account set up with HMRC
add the duty deferment account as a payment method in your Trader Support Service company profile
in your CDS financial dashboard, grant authority to the Trader Support Service to use your duty deferment account

If you do not give authority, the Trader Support Service will not be able to use your duty deferment account and your declaration may be rejected.

Adding your duty deferment account to your company profile

1. Go to your company profile in the Trader Support Service

2. Go to Duty deferment account details

3. Under Deferment account number for XI EORI, select Change and enter your deferment account number for Northern Ireland.

This is a unique 7-digit numerical string sent to you by HMRC when your account is issued by them.

4. Under Guarantee reference number (optional), select Change and add your guarantee reference. This number starts with XICGU, followed by:

12 digits from the EORI number associated with the guarantee

14 digits timestamp - YYYYMMDDHHmmss

For example: XICGU12345678910020260727154520

You can find this reference on the letter from HMRC with your Guarantee Reference Number (CGU).

5. Under Deferred payment option (DPO) authorisation number, select Change and enter your DPO number.

This number starts with XIDPO followed by the 7 digits of your duty deferment account number.

6. Under Are you going to use this DDA account for customs? Select Change and let HMRC know that you will use this account to pay customs duty.

Authorise the Trader Support Service to use your duty deferment account

You can authorise the Trader Support Service to clear goods using your duty deferment account.

You’ll need to sign in to your Customs Declaration Service (CDS) financial account to do this.

Sign in to your financial dashboard to set up or view an authority on the Customs Declaration Service. You will need your Government Gateway user ID and password linked to your CDS-subscribed business.

In your customs dashboard, add a new account authority in the Manage Account Authorities section by providing the Trader Support Service EORI number. You will need to raise a case or call the contact centre for help with this information.

Select the duty deferment account, set the authority’s limits, and set the start date. Choose if it should be open-ended or for a defined period, specifying if the Trader Support Service can view balances or only use funds for customs declarations.

Review all details and submit. Your authority settings will update instantly.

Watch how to set up a standing authority on the Customs Declaration Service for visual guide of the authorisation process.

How paying with a duty deferment account works

Select DDA as the method of payment when you submit your declaration through the Trader Support Service
Duty is charged automatically. Once the duty calculation has been accepted, HMRC records charges against the duty deferment account.
Charges incurred during the calendar month are combined into one total.
HMRC collects the payment automatically by direct debit. For customs duty and import VAT declared through CDS, payment is normally collected on the 16th day of the following month, or next working day if the 16th falls on a non-working day.
Goods can continue through the customs process. No further payment action is required.

Check your duty deferment account regularly

It is your responsibility to ensure sufficient deferment limit or guarantee is available in your duty deferment account before using the account.

If the account limit is exceeded:

HMRC cannot collect the duty
the Trader Support Service will notify you that payment has failed
your declaration will not close until the payment is made

Failed Direct Debit payments can result in suspension of the duty deferment account until payment has been received. See what happens if your direct debit fails.