DAN / TAN. Deferment account (DAN in the UK and TAN in Ireland) is a credit facility that allows you to place duty on 'your account' without immediate payment of the duty due.
Duty placed on your account is collected by Customs by direct debit on the 15th of the next month (shorter if excise duty). To obtain a deferment account you will need a bank guarantee for DOUBLE the amount of monthly deferment limit you will require. Why DOUBLE? Because payment is not taken until 15th of second month, you might do another month’s worth of trade in the first 14 days of month two. Potentially Customs will be exposed to two months of duty before they collect any payment, hence the reason the guarantee needs to be double. All entries that clear during the month will eat in to your available credit. If there is not enough credit left in the account (normally towards the end of the month) the entry will fail until you lodge more money or change the deferment account. If AEO approved the guarantee amount is still double thecredit limit required but reduced by 70%. Note a DAN (UK deferment) cannot be used in Ireland
and a TAN (Irish deferment) cannot be used in the UK. You may need more than one!