Customs bonds – a useful solution for importers

Customs bonds – a useful solution for importers

Since May 2016, when the new Union Customs Code entered into force, importers have been offered the possibility of guaranteeing the payment of their custom taxes through a new instrument: the customs bonds insurance policy.

What are customs bonds?

Customs bond is a policy issued by an insurance company established in the European Union, for the benefit of Customs Authorities, through which a company guarantees the payment of customs duties, anti-dumping/ anti-subsidy fees, excise taxes and VAT, depending on the situation, through which the Guarantor agrees to pay the due customs taxes in case the Insured does not fulfill the import requirements.

When is this insurance policy necessary?

Utilizing suspensive import procedures or introducing goods through special regimes, as a result of specific economic interests, allows the suspension of payment of the customs debt and other taxes related to the import of goods.

In order to use special/ suspensive regimes, procedures or customs operations, a GUARANTEE is necessary.

There are three ways through which this legal requirement can be fulfilled:

  1. Presenting a customs bonds insurance policy
  2. Presenting a letter of guarantee
  3. Creating a cash deposit

Since both the cash deposit and the letter of guarantee temporarily block an important part of a company’s financial resources, the customs bonds insurance represents a simple, easy to obtain alternative.

What does this policy cover?

This insurance product covers an existing customs debt or a potential customs debt (susceptible of happening) during the utilization of one or more customs regimes/ procedures/ operations.

The customs regimes and procedures that can be guaranteed are:

 

 

What type of policies can be issued?

Customs bonds can be issued for one operation, in this case an isolated guarantee being released, as well as for multiple import operations, in this case a global guarantee being issued.

How much does this policy cost? What documents are required? How fast can a bonds insurance be issued?

Unlike banking guarantees, bonds insurance policies allow companies to avoid the blocking of their financial funds, for a good price, offering a real benefit for their business. Moreover, an important benefit of these insurance policies is the protection of the company against abusive execution of guarantees.

To analyze the issuing of a bonds insurance policy, the main documents required include: two previous annual balance sheets, the last balance sheet submitted, the last closed balance sheet, a presentation of the company, as well as a questionnaire.

In many cases, a collateral guarantee will also be required, promissory notes being frequently used. However, it is important to note that solutions which do not require a collateral guarantee also exist.

Analyzing the request to issue a customs bonds insurance is a fast process, usually requiring only one working day. However, if additional information is required, the procedure might last longer.

How can you buy a customs bonds insurance?

CertAsig’s specialists offer you the support needed to take advantage from the optimal financial solution, obtained with minimal effort.

We are available for any additional information at garantii@certasig.ro.

 

 

 

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