Meaning
Financial instruments provide a single security to cover multiple customs operations or potential debts arising from moving goods under duty suspension. A comprehensive guarantee simplifies the administration of trade by allowing a company to use one bond for all its import and transit activities.
Liability Management
Customs offices calculate the required amount of the security based on the maximum potential debt that could be owed at any one time. This includes duties, excise taxes and value added tax for all goods currently in storage or transit. The firm must ensure that the total value of their operations never exceeds the limit of this financial instrument.
Reference Amount
Establishing the correct level for the security requires an analysis of the previous twelve months of trade and the projected volume for the coming year. If a company suddenly increases its battery imports, it must notify the customs office to adjust the guarantee. Failure to maintain an adequate balance can lead to the immediate suspension of import privileges.
Customs Procedure
Authorized economic operators often qualify for a reduction in the required guarantee amount. Some firms are permitted to provide only thirty percent or even zero percent of the reference amount if they demonstrate high levels of compliance and financial solvency. This reduction lowers the cost of doing business while maintaining the security of the public revenue.
