As CFSP is an electronic declaration method, using CHIEF processing procedures, payment of any duty or VAT owing must be made using a duty deferment account. The duty deferment account can be that of the trader or a 3rd party. The deferment account level must be sufficient to cover the actual duty and VAT liability for one calendar month.
Under Community law a trader must provide security against any potential debts arising from the release of goods to a customs procedure. This means that the authorisation criteria for CFSP requires such security to be specified within the approval, usually taking the form of a blanket authority to debit the duty deferment account should the debt fail to be met.
The deferment guarantee level must be sufficient to cover the actual duty and VAT liability for one calendar month unless the trader is approved for the reduced security period or the Simplified Import VAT Accounting - SIVA.