CUSTOMS & PAYMENTS BONDS – A NEW CERTASIG PRODUCT
Chief Bonds Underwriter
The Bond Underwriting team
The Bond and Financial Risk Departments of CertAsig have built over time a strong reputation on the bond insurance market and not only, providing insurance services of high quality, but also complementary services such as consulting related to our offered products.
Our strategy and mission
Amid growing demands for this type of products, the goal of the bond underwriting team is to expand its presence in the insurance market, to further develop its extensive brokers relations and to show CertAsig customers that we are an important, flexible and reliable partner.
To successfully implement our strategy, we pursued a comprehensive development program with a team of professionals that have vast experience in the field of financial risks.
Our confidence in developing new products is aligned to positive prospects for economic growth in Romania and various EU legislative modifications.
The goal of our underwriting team is to become a long-term strategic partner and so we are careful to keep ourselves appraised with all legislative changes and market demands.
CertAsig developed many new products in response to legislative changes and also to address the recent difficult economic environment.
In line with our new development strategy, we have just launched a new category of products called CUSTOMS BONDS, these products support the work of all importers and custom brokers, taking into account the legal modification of the new Community Customs Code also. In addition, as a business advantage, by using CUSTOMS BOND they will no longer block their valuable working capital, as is the case of bank letters of guarantee.
Goods may be placed under any of the following categories of special procedures:
- transit, which includes external and internal transit;
- storage, which includes temporary storage, customs warehousing and free zones;
- specific use, which includes temporary admission and end-use;
- processing, which includes inward and outward
Customs bonds represent an irrevocable commitment of the Insurer, through which it guarantees the Beneficiary (Customs Office) that the Insured will comply with the payment obligations of the appropriate import duties of goods under customs supervision which are subject to a special customs procedure (suspension).
With our products, we can cover the following categories of special procedures:
- Goods in temporary storage
It represents the guarantee of all fees/taxes for non-EU goods, temporarily stored under customs surveillance/supervision, between the moment of their presentation in custom border and the placement of the goods under a customs procedure or re-export.
- Storage in customs warehouses
Under the customs warehousing procedure, non-Community goods may be stored in premises or any other location authorized for that procedure by the customs authorities and under customs supervision.
- Temporary admission procedure
Under the temporary admission procedure non-Community goods intended for re-export may be used in the customs territory of the Community, with total or partial relief from import duties.
- End-use procedure:
Under the end-use procedure, goods may be released for free circulation under a duty exemption or at a reduced rate of duty on account of their specific use. They shall remain under customs supervision
- Inward processing:
Under the inward processing procedure non-Community goods may be used in the customs territory of the Community in one or more processing operations without payment of import duties or other charges relevant Conformity provisions in force.
Goods under customs supervision may be transshipped from one means of transport to another, where necessary, with the approval and customs authority, mentioning the type and quantity of goods to be transshipped.
If it finds shortages or substitutions of goods transshipped, this shall constitute receivable title for the collection of import duties. Taxation elements are in force on the date of registration customs permit.
Transit is also, on our new products list that we intend to offer to the brokers or clients, but for the moment CertAsig is in process of negotiation for establishing correspondences partners in EU Member States and European Free Trade Association – EFTA
Our products will be accessed both by those who hold approvals on old custom code and which remain valid until they expire, and for those who will have to apply from the beginning the rules under new custom cod.
A second important step in our activity is the opening to payment BONDs.
With payment bonds, CertAsig undertakes to guarantee to the beneficiary the fulfillment of payment obligations that derive from the parties’ contract , in strict compliance with the terms and the clauses stipulated in the parties agreement.
As a result of a difficult period of time from an economical point of view, payment guarantees started to become a major concern for many companies.
We fully understand this concern and we are prepared to assist our clients in this regard. If, a few years ago, there was trust between commercial partners regarding the delivery of goods based on an invoice, that was paid by the partner in a specific negotiated period of time, nowadays more and more merchants call for guarantees of payment before delivery.
A guarantee of payment can be done by either issuing money arrangements (checks), guarantee documents (promissory notes) on maturity according to parties agreement or by an insurance payment bond.
Both cheque and promissory notes are money arrangements that, at least theoretically, guarantee the payment at their submission to a bank, after the due date. however, there are more than a few situations checks or promissory notes are rejected because of a lack of available funds in the issuer’s bank account.
If the payment is guaranteed by an insurance payment bond, any concern relating to lack of funds availability is eliminated and the supplier has full confidence that, in case of delays in payment t from its business partner, the payment will be fulfilled by CertAsig.
To conclude, to balance the responsibility within commercial partnerships, we recommend that you advise your clients to choose this kind of contractual insurance policy.