Direct representative bearing the liability of a guarantor

Authorisation must be applied for  

The representative must apply for a comprehensive guarantee authorisation from Customs for direct representation bearing the liability of a guarantor. The desired forms of representation must be indicated in the application.  

When the company is also a holder of an authorisation for deferment of payment, it will have around five weeks to pay the charges to be levied on import. More information on the authorisations for comprehensive guarantee and payment deferment

Guarantees required for debt or liability are collected from the representative bearing the liability of a guarantor, and the periodic filing is sent to the representative.

Acting as a direct representative with the responsibility of a guarantor is possible in the following procedures: 

  • release for free circulation
  • special procedures for import.
     

General guarantee undertaking

Direct representation with the responsibility of a guarantor requires a specific general guarantee undertaking, based on which the representative is responsible for paying the customs duties and taxes. As guarantor, the representative is not responsible, however, for any post-clearance liabilities if they were unaware or should have been unaware of the incorrectness of information provided in the customs declaration.

The representative can also provide a limited general guarantee undertaking where the upper limit of the liability of the general guarantee is double the total amount of the comprehensive guarantee in force at the time in question.

Customs requires the representative to present a decision on issuing a general guarantee undertaking made at an annual general meeting of shareholders, unless the representative’s line of business involves the issuing of guarantees as stated in the Trade Register.

Guarantee reservation in different procedures 
 

Release into free circulation
An amount corresponding to the customs and VAT debt is reserved from the comprehensive import guarantee in connection with customs clearance. The reserved amount is released when the debt is paid (a delay of at least 1-2 days may occur from the time of payment). The amount corresponding to the VAT debt is reserved only in respect of those importers who are not in the VAT register.

Special procedures
In special import procedures, i.e. specific use (temporary admission) and processing (inward and outward processing), guarantee is required for customs and VAT liability according to the guarantee liability (unlimited/limited).
Guarantee is reserved from the representative’s comprehensive guarantee in real time, and the guarantee remains reserved until the liability has expired (for example, when an acceptable bill of discharge has been provided).

Guarantee reservation based on a general guarantee liability

Customs procedure   Unlimited guarantor’s undertaking Limited guarantor’s undertaking
Release for free circulation Customs duty

100 %

100 %

VAT

100 %

100 %

Special procedures Customs duty

100 %

100 %

VAT 0 %

100 %

In release for  free circulation the amount corresponding to the VAT debt is reserved from the comprehensive import guarantee only in respect of those importers which are not in the VAT register.

                            

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