Why a Guarantee Is Required
A transit movement defers duty and VAT until the goods reach their declared destination. To protect the revenue during transit, customs authorities require a financial guarantee that covers the suspended amount. If the goods never arrive — or arrive but are never discharged — the guarantee is called upon to pay the duty.
In the UK, this is delivered through the Customs Comprehensive Guarantee (CCG). Every transit movement ending outside the UK (in the EU, EFTA, Türkiye, or another CTC country) requires one. UK-only movements may use a simpler one-off guarantee.
Two Ways to Hold a CCG
Option 1: Apply for your own CCG
If you regularly move goods under transit, applying for your own CCG is usually most cost-effective. You receive a Guarantee Reference Number (GRN) that's quoted on every declaration. You set a guarantee amount (your "ceiling") that HMRC monitors; each open transit draws against it, and the amount is released on discharge.
Use form CG12 to apply. HMRC will check financial standing, customs compliance history and the proposed ceiling. Most approvals take 4–8 weeks.
Option 2: Sit under a third-party CCG
Smaller traders, or those with seasonal / occasional movements, typically sit under a broker's CCG. You pay per-movement guarantee fees rather than holding your own approval. This avoids the CG12 application and the bank-side guarantee cost.
We hold a CCG that our clients can use on a per-movement basis.
How the GRN Works on a Declaration
Every NCTS declaration includes:
- The GRN (Guarantee Reference Number) being used
- The guarantee type (comprehensive, individual, cash deposit, waiver)
- The amount being drawn from the guarantee
If the GRN doesn't have enough headroom, the declaration is rejected at the office of departure. Managing CCG headroom — especially during peak season — is a practical discipline that broker clients often ask us to handle.
When Things Go Wrong
| Scenario | What Happens | What to Do | |---|---|---| | Open transit not discharged | Guarantee stays bound, ceiling shrinks | Open inquiry procedure, supply proof of arrival | | Movement aborted mid-route | Need to lodge replacement, original must be cancelled | Coordinate cancellation + new MRN | | Guarantee called by HMRC | Duty and VAT paid from guarantee; principal owes the amount | Contest if documentary proof of arrival exists |
Practical Tips
- Review your guarantee usage monthly — don't wait until you hit the ceiling
- Reconcile open movements weekly — every discharge releases capacity
- Apply for a ceiling above your expected peak — undersizing creates stuck declarations
- If you outgrow a third-party CCG, plan the move to your own CG12 well ahead — approval takes time