UK Customs Guarantee (CGU) 2026 – When Required and How to Get One

What is a customs guarantee (CGU) in the UK?

In customs procedures where duty and taxes are not paid immediately at clearance (suspensive procedures), HMRC requires a financial security. This security is called a customs guarantee.

CGU (Comprehensive Guarantee Unit) is a specific form of this guarantee — an HMRC authorisation permitting the use of a single bank or insurance guarantee for multiple different customs transactions simultaneously. The word "Comprehensive" reflects exactly that — one guarantee, many applications.

A customs guarantee operates similarly to a deposit: if the importer/carrier fails to pay customs charges (e.g. due to bankruptcy or loss of goods), HMRC can draw on the guarantee funds. Once the procedure is correctly closed the guarantee is released.

CGU vs other forms of guarantee

In addition to the CGU, HMRC also accepts:

• Individual Guarantee — secures one specific transaction; required on a one-off basis, does not need a CGU authorisation.
• Flat Rate Guarantee — a simplified form for lower-risk operators.
• Guarantee Waiver — an exemption from the guarantee requirement for operators holding AEO (Authorised Economic Operator) status or meeting specific HMRC criteria.

When is a CGU required?

A customs guarantee in the form of a CGU is mandatory when using the following UK customs procedures:

How to calculate the required guarantee amount?

The CGU amount should cover the maximum potential customs duty and VAT that could arise from all simultaneously open suspensive procedures.

HMRC uses a simplified approach for the CGU:

• For T1 transit: guarantee amount = 30% of the customs value of goods × duty rate. Example: goods worth £100,000, duty rate 6.5% → potential duty £6,500 → required guarantee min. £1,950 (30% × £6,500).
• For Customs Warehouse: guarantee amount = the full amount of potential customs duty and VAT on all goods held in the warehouse at any given time.
• For IP: amount calculated based on the quantity of goods imported annually × duty rate.

How to obtain a CGU from HMRC — step by step

Step 1: Check that you meet the preconditions

HMRC requires CGU applicants to:

• hold an active GB EORI number,
• have no customs or tax arrears with HMRC,
• carry on a trading business in the UK (or have a permanent representative in the UK),
• hold a bank account with a bank approved by HMRC (for issuing a bank guarantee).

Step 2: Obtain a bank or insurance guarantee

A CGU is always backed by a bank or insurance guarantee. HMRC does not accept cash or deposits. You must:

1. Ask your bank to issue a Bank Guarantee for Customs Purposes for a specified amount.
2. Alternatively use an insurance broker offering a Customs Bond / Surety Bond.
3. The annual cost of a guarantee is typically 2–3% of the guaranteed amount.

Step 3: Submit form C1201 to HMRC

Form C1201 (Application to use a comprehensive guarantee) is submitted electronically via the HMRC Online Services portal or in writing. The application includes:

• applicant details (EORI, address, contact information),
• types of customs procedures for which the CGU will be used,
• the requested guarantee amount,
• details of the bank/insurer issuing the guarantee,
• any application for a reduction in the guarantee amount.

Step 4: Await the decision

HMRC processes CGU applications within 30 working days. For more complex applications (with amount reduction, with AEO status) this may extend to 60 days. Upon a positive decision HMRC issues a CGU authorisation with a unique reference number that is entered into every customs declaration using a suspensive procedure.

Can a customs broker use their CGU on my behalf?

Yes — and this is the most commonly used solution for Polish transport companies and exporters who regularly send goods to/through the UK but do not hold their own CGU.

A customs broker holding a CGU can cover client shipments under it, acting as a direct or indirect representative. In the case of direct representation, customs liability rests with the client; with indirect representation the broker assumes joint and several liability.

Easy Clearance holds its own CGU guarantee covering:

• T1 transit through UK territory,
• T1 transit from the UK to EU countries (through the Eurotunnel, Dover),
• customs warehouse handling for clients.

Using Easy Clearance's guarantee is included in the service cost for the procedure. You do not need to apply for a CGU yourself or engage a bank. The cost of T1 handling with our guarantee ranges from £200 to £500. Indicative price range — exact quote after documents are submitted.

CGU waiver — who can apply?

HMRC may grant a Guarantee Waiver — full or partial exemption from the guarantee — to operators meeting strict criteria:

• holding AEO-C (Authorised Economic Operator — Customs) status,
• at least 3 years of active customs activity in the UK without violations,
• no tax arrears throughout that period,
• implemented internal customs compliance procedures.

The waiver typically applies to T1 transit and is limited to specific routes or cargo values. The application is submitted together with C1201, selecting the "guarantee waiver" option.

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