What is the Movement Guarantee process for drinks businesses, and what are the typical costs and requirements?

A Movement Guarantee (MG) is a surety bond arrangement that allows drinks businesses to move goods under duty suspension without paying duty upfront, saving significantly on transport costs.

**The process and costs:** - The arrangement has two parts: an HMRC element (described as straightforward) and a surety bond from an insurance provider - **Aon** is the recommended broker; contact james.ellison@aon.co.uk. Members report typical costs around £1,000 per year (minimum policy fee) - Some businesses previously combined their Movement Guarantee with warehouse bonds but can now obtain an MG-only policy - Insurers will review your P&L and balance sheet as part of underwriting; underwriters may ask for increasing scrutiny during renewal periods

**Security requirements:** - Some insurers request a cash deposit (one quoted £10k) held as security, though this is not always required—it depends on the underwriter's assessment of your business - Members advised checking with your specific underwriter on this point

**Benefits:** - Saves a substantial amount in transport costs compared to paying duty immediately

Members noted that requirements and questioning from underwriters can vary and may become stricter during renewal cycles.