In short.
- A customs guarantee secures payment of a customs debt that has been incurred or may be incurred (import or export duty and other charges). Where it is compulsory, it covers the exact amount or, if that cannot be determined, the maximum amount estimated by the customs authorities (Articles 89-90 of the Union Customs Code).
- It is required, among other cases, for Union transit, for operating temporary storage facilities, for special procedures (customs warehousing, processing, temporary admission, end-use) and for deferred payment of duty, which runs for 30 days (Articles 110-111, 148, 211 and 233).
- It may be provided as a cash deposit, as an undertaking by a guarantor — which may be a credit institution or an insurance company accredited in the Union — or in another equivalent form (Articles 92 and 94). Regular operators may apply for a comprehensive guarantee, which can be reduced to 50% or 30% of the reference amount, or waived altogether.
Without a customs guarantee, save for the exemptions expressly listed, goods cannot move under transit, a warehouse cannot operate as a temporary storage facility and duty must be paid in cash on every declaration. For an importer, a freight forwarder or a logistics operator, the guarantee is not an isolated formality: it is the piece that unlocks deferred payment and the procedures that preserve cash.
It is best viewed as a financial instrument with its own rules, laid down in Regulation (EU) No 952/2013, the Union Customs Code (UCC), and in its two implementing acts. In the EU, what US importers call a customs bond is, in substance, a customs guarantee.
What is a customs guarantee and what does it cover?
A customs guarantee secures payment of a customs debt — the amount of import or export duty — that has already been incurred or may be incurred (Article 89(1) UCC). Its scope depends on where it is to be used:
- If it is used for Union transit or in more than one Member State, it covers import or export duty and the other charges due in relation to the import or export of the goods.
- If it is valid in one Member State only, it covers at least the import or export duty (Article 89(2)).
It is required from the debtor or the person who may become the debtor, but may be provided by a third party (Article 89(3)). It takes two forms:
- Individual guarantee: covers specific goods or a specific declaration (Article 89(4)). Until it is released, it also answers for amounts arising from a post-release control of those goods.
- Comprehensive guarantee: covers two or more operations, declarations or procedures (Article 89(5)). This is the one used by operators with recurring activity.
To see it alongside the other guarantees required by public authorities, our guide to guarantees required by law gives the overview. Here we go into the customs detail.
Compulsory and optional guarantees
Where the guarantee is compulsory, the customs authorities set it at the precise amount of the debt or, where that cannot be determined, at the maximum amount estimated that may be incurred. A comprehensive guarantee must cover that amount at all times (Article 90(1)).
An optional guarantee is a different matter: customs may require it where, in a specific case, they are not certain that the debt will be paid within the prescribed period. Its amount may not exceed the level of the compulsory guarantee (Article 91).
When it is not required
The UCC sets out several exemptions. No guarantee is required from public bodies acting as public authorities (Article 89(7)). Nor in certain listed cases: goods carried on the Rhine, the Danube and their waterways, goods carried by fixed transport installations, certain cases of temporary admission, and Union transit by air or sea between Union ports or airports using the electronic transport document as the declaration (Articles 89(8)(d) and 233(4)(e)). In addition, customs may waive the guarantee where the potential debt does not exceed the statistical value threshold for declarations (Article 89(9)).
When do customs require a guarantee?
A guarantee comes into play whenever customs allow time — or distance — to pass between the moment the debt may be incurred and the moment it is collected. These are the cases that weigh most for a company with recurring operations.
Deferred payment
This is the case that releases most cash. At the request of the person concerned and provided a guarantee is lodged, customs authorise deferred payment, either separately for each amount or globally for periods of up to 31 days (Article 110 UCC). The guarantee may be individual or comprehensive (Article 89). The deferral period is 30 days, with specific counting rules for global deferral (Article 111). It allows the company to align duty payments with its collection cycle.
Union transit
The holder of the Union transit procedure must provide a guarantee, unless otherwise provided (Article 233(1)(c)). The holder answers for presenting the goods intact at the customs office of destination within the prescribed time limit.
The two planes should not be confused: the guarantee answers for the customs debt, not for damage to the cargo. If goods are lost or damaged in transit, that is the territory of cargo insurance.
Customs warehousing and other special procedures
Authorisation of the special procedures — inward and outward processing, temporary admission, end-use and the operation of customs warehouses — requires a guarantee where a customs debt may be incurred (Articles 211(1) and 211(3)(c)). Under customs warehousing, where non-Union goods are stored before duty is paid, the guarantee backs the holder's responsibility for those goods (Articles 240 and 242).
Temporary storage facilities
Operating a temporary storage facility requires an authorisation which is conditional, among other requirements, on providing a guarantee. Where a comprehensive guarantee is used, compliance with the related obligations is verified by an appropriate audit (Article 148(2)(c) UCC).
How is the amount calculated? The reference amount
For a comprehensive guarantee, the starting point is the reference amount, set by the customs office of guarantee (Article 155(1) of Commission Implementing Regulation (EU) 2015/2447 — hereafter "IR"). It is established in cooperation with the operator, on the basis of information on the goods covered by the operations of the preceding twelve months and the forecast of future operations (Article 155 IR).
Where there is not enough information to estimate the potential debt, the amount is set at €10,000 per declaration (Article 155(3) IR, final subparagraph). The operator monitors that this amount is not exceeded and informs customs if it is no longer sufficient (Article 156 IR); if the guarantee proves insufficient, an additional guarantee or a replacement of the original one is required (Article 97 UCC).
Illustrative example (invented figures, for explanatory purposes only). An importer regularly uses customs warehousing. Using its twelve-month history and its forecast, customs set a reference amount of €400,000 for the potential debt. If it meets the reduction requirements, the guarantee it must provide would be €200,000 (reduction to 50%), €120,000 (to 30%) or nothing for that part (waiver). The difference between one level and the next is credit capacity the company does not have to commit.
Comprehensive guarantee: reduction and waiver
The comprehensive guarantee is not open to everyone. The UCC requires the applicant to be established in the customs territory of the Union, to meet the criterion in Article 39(a) (no serious or repeated infringements of customs legislation and taxation rules) and to be a regular user of customs procedures, an operator of temporary storage facilities or to meet the criterion in Article 39(d) (Article 95(1)).
Once granted, it may be reduced according to the type of debt:
- Debt that may be incurred (potential): the guarantee may be set at 50%, at 30% or waived entirely in relation to the reference amount (Article 95(2) UCC; Article 158(1) IR). The requirements tighten at each level and are set out in Article 84 of Commission Delegated Regulation (EU) 2015/2446: among them, an appropriate accounting and records system, proven financial solvency and a track record of meeting payment obligations.
- Debt already incurred (for example, duty whose payment is deferred): an authorised economic operator for customs simplifications may use a comprehensive guarantee reduced to 30% (Article 95(3) UCC; Article 158(2) IR).
The AEO in brief
The authorised economic operator (AEO) status comes in two forms: customs simplifications, and security and safety (Article 38(2) UCC). The common criteria are compliance with customs and taxation rules, a satisfactory system of managing records and financial solvency. An AEO for customs simplifications must also demonstrate practical standards of competence or professional qualifications related to its activity, and an AEO for security and safety, appropriate security and safety standards (Article 39 UCC).
For special procedures and temporary storage, the Commission may temporarily prohibit the use of a reduced comprehensive guarantee or of a guarantee waiver and, for goods identified as subject to large-scale fraud, the comprehensive guarantee itself (Article 96 UCC).
How to provide a customs guarantee: cash deposit, bank guarantee or surety insurance
The UCC accepts three forms (Article 92(1)):
- Cash deposit or any other equivalent means of payment. It bears no interest for the person providing it (Article 92(2)): it is tied-up liquidity.
- Undertaking by a guarantor: what is known in practice as a customs bond or customs surety.
- Another form of guarantee providing equivalent assurance of payment.
The person required to provide the guarantee chooses the form, but customs may refuse the proposal where it is incompatible with the proper functioning of the procedure, or require it to be maintained for a specified period (Article 93).
The guarantor must be a third person established in the Union. No specific approval is needed if it is a credit institution, a financial institution or an insurance company accredited in the Union, and its undertaking must be given in writing. Even so, customs may refuse it if they consider that payment is not sufficiently assured (Article 94).
This is the route by which surety insurance can serve as a guarantee before customs, just as it does for other bonds and guarantees required by public authorities. The choice between surety insurance and a bank guarantee affects the company's financing lines, as we compare in bank guarantee vs surety insurance. In any event, issuing a surety certificate depends on the insurer's solvency analysis: it cannot be taken for granted, nor can its cost be anticipated without that review.
Do you import on a recurring basis and pay duty in cash? Let us review your customs guarantee and your surety capacity.
Release of the guarantee and what happens if it is called
Customs release the guarantee immediately once the debt is extinguished or can no longer be incurred. Where it is extinguished only in part, or can no longer be incurred for part of the amount, the person concerned may request partial release (Article 98 UCC).
One detail deserves attention. Until it is released, an individual guarantee also answers for amounts arising from a post-release control (Article 89(4)). Asking for the surety certificate or bank guarantee to be cancelled before customs release it may leave a later adjustment uncovered.
If the debt is not paid and customs call on the guarantor, the insurer pays and then seeks recovery from the policyholder. The mechanism is the same as for any surety bond, and we explain it in calling a surety bond.
Before applying for a comprehensive guarantee, we review the reference amount and the reduction requirements. Talk to us.
The role of an independent broker
The customs guarantee is decided between the company, its customs representative and the customs authorities; the broker's role lies in the instrument. As an independent brokerage registered with the Spanish DGSFP under reference J0140, we act on the client's mandate, not the insurer's. We help size the reference amount using the actual history of operations, place the guarantor's undertaking in the insurance market, align the guarantee with the reduction requirements the company can meet, and monitor shortfalls and releases so that surety capacity is not tied up for longer than necessary. If your business is transport or logistics, see also our insurance for logistics companies.
We review your programme of guarantees before customs and other public authorities, without obligation. Request a review with our team.
Frequently asked questions
How long can duty payment be deferred with a guarantee? The general deferral period is 30 days (Articles 110 and 111 of the Union Customs Code). Where deferral is global over aggregation periods, the period is reduced by a number of days equal to half the number of days in that period.
What amount is set if customs cannot calculate the debt? The maximum amount estimated that may be incurred (Article 90(1) UCC); for a comprehensive guarantee without sufficient information, €10,000 per declaration (Article 155(3) of Implementing Regulation (EU) 2015/2447).
Can the comprehensive guarantee be reduced or waived? Yes. For potential debt, it can be reduced to 50% or 30%, or waived, if the requirements of Article 84 of Delegated Regulation (EU) 2015/2446 are met. For debt already incurred, an authorised economic operator for customs simplifications may use a guarantee reduced to 30% (Article 95 UCC).
What happens if the guarantee falls short? Customs require an additional guarantee or a new one replacing the original, at the choice of the person who provided it (Article 97 UCC).
When is the guarantee released? Immediately once the customs debt is extinguished or can no longer be incurred. Where it is extinguished only in part, partial release may be requested (Article 98 UCC).
Sources and legislation
- Regulation (EU) No 952/2013 laying down the Union Customs Code (consolidated text), Articles 38-39 (AEO), 89-98 (guarantees), 110-111 (deferred payment), 148 (temporary storage), 211 (special procedures), 233 (Union transit), 240 and 242 (customs warehousing).
- Commission Delegated Regulation (EU) 2015/2446 (consolidated text), Article 84 (requirements for reduction and waiver of the comprehensive guarantee).
- Commission Implementing Regulation (EU) 2015/2447 (consolidated text), Articles 155 (reference amount), 156 (monitoring by the operator) and 158 (levels of the comprehensive guarantee).
The amount, the accepted form and the possibility of reduction are decided by the customs office of guarantee in each authorisation; this guide describes the framework of the Union Customs Code, which may change, so the legislation in force should be confirmed for each operation. For the procedure itself, please consult the Agencia Tributaria (Spanish Tax Agency, Customs and Excise Department) and your customs representative. This information is for guidance only and does not constitute customs, tax or legal advice. New Brokers Correduría de Seguros, S.L., registered with the DGSFP under reference J0140.
