What guarantees are required?
A guarantee that corresponds to the amount of customs duties and taxes is required for transit. The guarantee covers the general customs duty, possible excise duty and other taxes as well as value added tax (VAT). The amount of guarantee is roughly about 30 % of the value of the goods. A comprehensive guarantee, which requires an authorisation, can also be used as a guarantee. Transit requires a separate comprehensive guarantee, because the transit guarantee requires a bank guarantee.
Using a cash deposit as transit guarantee
The guarantee can be lodged as a cash deposit. The guarantee is transit specific and is loged by the transit principal at the customs office of departure. The customs office of departure repays or releases the guarantee after receiving a notification of the arrival of the goods at the customs office of destination.
Setting up a transit guarantee at the customs office
The transit guarantee can be paid in cash, by bank card or with a bank transfer. Using a bank transfer is uncommon, since a transit operation cannot be started until the payment shows in the customs system. The transit principal must sign a pledge agreement at the customs office of departure. If the signatory is not the transit principal, then they must provide a power of attorney from the principal.
Setting up a guarantee in advance
An individual guarantee can be set up in advance, before the goods are presented to Customs. The customs office provides a GRN reference number for the guarantee; this number is then registered in the transit declaration. The original pledge agreement will not have to be presented at the office of departure.
Repayment of the guarantee
A cash deposit is repaid at the office of departure or into a bank account, when the transit is discharged. Customs can also return the deposit, for example at the eastern border of Finland when the goods leave the transit area. The guarantee is returned by the authority in the country that received the guarantee. The guarantee is mainly repaid into the transit principal’s bank account. An IBAN bank account number is required for the payment and, for foreign bank accounts, an ISO BIC code (SWIFT code).
Cash-repayment at the office of destination
If the customer does not have an IBAN account number, the guarantee can be repaid in cash at the customs office of destination. An individual guarantee will only be returned in cash to the person who signed the pledge agreement, to someone with official powers of procuration or to a person mentioned especially as the receiver in the power of attorney.
Using comprehensive transit guarantee
The company can apply for an authorisation from Customs to use a comprehensive guarantee. Using a comprehensive guarantee facilitates and simplifies the starting of the transit operation. It is also required if you want to act as an authorised consignor.