Legal basis
Under the Union Customs Code (UCC), it is possible to provide a comprehensive guarantee instead of separate guarantees for each declaration or procedure. As said, such a guarantee can cover multiple customs procedures and/or customs debts (e.g. for procedures such as customs transit, storage, inward processing, temporary admission). The advantage is simpler management and it is often cheaper than individual guarantees.
Existing Customs Debt
The UCC distinguishes between:
The UCC distinguishes between:
- Existing customs debt: a debt that has already arisen, for example when goods have been released for free circulation and the import duties are due, or when it is discovered afterwards that insufficient duties were levied.
- Potential customs debt: a debt that may arise when using a procedure for which a guarantee is mandatory (e.g. under a T1 transit procedure: the risk that goods do not reach their intended customs office of destination).
For an existing customs debt, the customs authorities may require immediate payment or allow the debtor to provide a guarantee so that payment can be deferred.
The key articles are:
Article 89 UCC ? obligation to provide a guarantee for potential or existing customs debts.
Article 95 UCC ? a comprehensive guarantee may be used to cover several operations or procedures simultaneously.
Articles 92 et seq. UCC ? rules on waivers, reductions and calculation of the guarantee amount.
Summary
A comprehensive guarantee under the UCC is an umbrella guarantee that can cover both potential and existing customs debts. For an existing debt, it can serve as an alternative to immediate payment. The legal framework is found mainly in Articles 89?95 UCC.
Reduction of Guarantee under the UCC
General Rule
Article 89(3) UCC: A guarantee must normally cover 100% of the amount of the customs debt (existing or potential).
Article 95 UCC: A comprehensive guarantee may cover multiple debts/procedures, and reductions may be authorised by customs authorities under certain conditions.
Existing Customs Debts
Definition: Debts that have already arisen (e.g. duties payable after release for free circulation, or under a deferred payment arrangement).
General Rule
Article 89(3) UCC: A guarantee must normally cover 100% of the amount of the customs debt (existing or potential).
Article 95 UCC: A comprehensive guarantee may cover multiple debts/procedures, and reductions may be authorised by customs authorities under certain conditions.
Existing Customs Debts
Definition: Debts that have already arisen (e.g. duties payable after release for free circulation, or under a deferred payment arrangement).
Guarantee requirement:
Normally: 100% of the existing debt.
Reduction: Possible down to 30% minimum.
Waiver (0%): ? Not allowed.
Legal basis:
Article 84(3) UCC Delegated Regulation (2015/2446):
For existing customs debts, the amount of the comprehensive guarantee shall not be less than 30% of the amount of such debts.
Potential Customs Debts
Definition: Debts that may arise in the future under special procedures (e.g. transit, storage, inward processing, temporary admission).
Reduction: Possible down to 30% minimum.
Waiver (0%): ? Not allowed.
Legal basis:
Article 84(3) UCC Delegated Regulation (2015/2446):
For existing customs debts, the amount of the comprehensive guarantee shall not be less than 30% of the amount of such debts.
Potential Customs Debts
Definition: Debts that may arise in the future under special procedures (e.g. transit, storage, inward processing, temporary admission).
Guarantee requirement:
Normally: 100% of the potential debt.
Reduction: May be authorised to 50% or 30% if the operator shows good compliance, solvency, and risk management.
Waiver (0%): ? Possible if strict conditions are met, typically requiring AEO-C authorisation and low risk.
Legal basis:
Articles 84-88 UCC Delegated Regulation, Articles 158-163 UCC Implementing Regulation.
Conditions for Reduction / Waiver
Customs authorities will assess:
Normally: 100% of the potential debt.
Reduction: May be authorised to 50% or 30% if the operator shows good compliance, solvency, and risk management.
Waiver (0%): ? Possible if strict conditions are met, typically requiring AEO-C authorisation and low risk.
Legal basis:
Articles 84-88 UCC Delegated Regulation, Articles 158-163 UCC Implementing Regulation.
Conditions for Reduction / Waiver
Customs authorities will assess:
Compliance record (no serious/repeated infringements).
Financial solvency (ability to meet obligations, often demonstrated by accounts/audit).
Practical risk controls (internal systems to manage customs obligations).
AEO status (AEO-C usually required for full waiver of potential debts).
Comparison Table
Financial solvency (ability to meet obligations, often demonstrated by accounts/audit).
Practical risk controls (internal systems to manage customs obligations).
AEO status (AEO-C usually required for full waiver of potential debts).
Comparison Table
| Type of Customs Debt | Normal Guarantee | Reduction Options | Absolute Minimum | Waiver (0%) Possible? |
|---|---|---|---|---|
| Existing customs debt (already arisen, e.g. deferred payment) | 100% | 50% or 30% | 30% | No |
| Potential customs debt (may arise under special procedures) | 100% | 50% or 30% | 0% (if AEO-C + low risk) | Yes |
Key takeaway:
Existing debts - stricter: minimum guarantee 30%, no waiver possible.
Potential debts - more flexible: reduction possible down to 0% (under strict conditions, typically AEO-C).