Premises Guarantee

What is a Premises Guarantee?

Warehouse-keepers are normally required to provide financial security to HM Revenue & Customs (HMRC) for goods held in duty suspension within their warehouse. The size of the Premises guarantees relates to the potential duty due to HMRC on the warehouses average end of the month stock calculated over a 12-month period, with allowances made for seasonal variations.

Forecast throughput level for Premises Guarantees are used for new warehouses.

In some cases, reductions may be allowed in the amount of premises financial security required.



What we require:

Provide us the details of the Contract which is the subject of the HMRC Premises Guarantee Bond requirement, including Bond amount and period for which it will be required, together with a completed application form plus:

• A copy of the HMRC Premises Guarantee Bond wording
• A copy of your last published accounts (if you are part of group then consolidated group accounts as well)
• A copy of your latest management accounts (up to the nearest quarter)

On receipt of this information, the HMRC Premises Guarantee Bond application will be submitted to our panel of underwriters for their consideration. Our underwriters will review the applicant’s financial strength, their historic trading performance comparative to the underlying obligations of the Bond. Upon successful underwriting, we should be able to offer competitive non-binding indications of terms, as quickly as possible.

Once the applicant has accepted our terms and provided any additional information requested, we will send out the security documents for execution (such as deed of counter indemnity) and an invoice for the premium.

Following receipt of the completed paperwork and premium, we will issue the HMRC Premises Guarantee Bond