Security deposits

Find out what a security deposit is and how to use it on the Trader Support Service for goods movements to Northern Ireland.

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What is a security deposit

A security deposit is money that HMRC holds temporarily when it is not clear how much customs duty is owed on goods being moved. For example, due to missing proof of origin.

This is different from paying customs duty. The money is kept as security until you can either:
provide the evidence needed to confirm the correct duty amount - which sometimes can be zero
finish a customs process that involves a security deposit

For customs special procedures, a security deposit is refunded once the goods have been discharged . This means they are removed from the procedure they are currently in.

When a security deposit is needed

You may need to pay a security deposit when moving goods into Northern Ireland if you do not have the required supporting evidence when you submit your customs declaration.

For example, if you claim preferential duty under the UK-EU Trade and Cooperation Agreement (TCA) but do not yet have the proof of origin, HMRC may ask for a security deposit until you provide the evidence.

Security deposits can also be used as a guarantee for these customs special procedures:

temporary admission
inward processing
end-use (authorised use)

How a security deposit impacts the movement of goods

the customs declaration cannot be completed until the security deposit has been paid
without a completed declaration, a Movement Reference Number (MRN) will not be issued
without an MRN, a goods movement reference (GMR) cannot be created - this means the goods cannot move towards their destination in Northern Ireland

How a security deposit is paid

In the Trader Support Service, the payment method for a security deposit depends on the type of customs declaration.

Supplementary declarations

Duty Deferment Account (DDA) – the trader’s duty deferment account (DDA) only
Card payment through the Trader Support Service – using the Trader Support Service duty deferment account (DDA)

Full import declarations

Duty Deferment Account (DDA) – the trader’s or the agent’s duty deferment account (DDA)
Customs Declaration Service cash account – also known as CDS cash account in the Trader Support Service
Immediate Payment by electronic credit transfer - payment to HMRC outside the Trader Support Service

Full import declarations are referred to as standard declarations in the Trader Support Service

Find out more about these payment methods: How to make a payment in the Trader Support Service

How to find declarations that need a security deposit payment

You can find declarations that require payment of security deposits by navigating to the Menu and selecting Payments Overview.

Declarations that require payment of security deposits can be found in the section Payment pending (security deposits).

You can also search for declarations by the Local Reference Number which is a unique reference assigned to each declaration.

How to record a security deposit

The Trader Support Service will automatically default a method of payment available for the type of declaration.

You can change the method of payment by going to the Commercial terms section of your declaration and select Change against the question What method of payment will be used to pay for the goods on this consignment?

The system will then send the corresponding method of payment code to the Customs Declaration Service on your behalf.

After you provide the required evidence and HMRC finishes its checks, the security deposit can either:

be released or repaid if no duty is owed
be used to pay the customs duty if any is owed

How to claim back a security deposit

ensure you are subscribed to the Customs Declaration Service
check your eligibility and time limits for claims
gather your documents
apply online
track the progress