Improving Customs Transit Systems
In the Islamic Countries
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 Efficient operational co-operation, co-ordination and exchange of information with
other customs administrations, for the management and monitoring of transit
operations;
 Development and implementation of a reliable guarantee system (NCTS, ACTS).
Such bilateral or regional information exchanges require a legal framework negotiated and
agreed bi-laterally or regionally by the participating governments and administrations. They
include, in the case of SEED Customs Mutual Administrative Assistance Agreements (CMAAA);
SEED Memorandum of Understanding (MoU); and Protocol on the electronic exchange of data
(which, among other things, defines the scope of data to be exchanged).
5.1.3 CTR Guarantee management and monitoring system
The following challenges and policy options were identified for CTR Guarantee management and
monitoring system:
Table 63: CTR Guarantee management and monitoring system challenges and policy options
Attributes Challenges Policy Options
Calculation or
estimation of the
guaranteed amount
 CAs estimate arbitrary or fixed-
guarantee amount
 The guarantee should not exceed
the highest rates of customs duties
for import
Guarantee according to
risk level and
guarantee waiver
 The guarantee amount is not
calculated according to the risk
level - de minimis threshold for
the risk level of transit operators
 The AEO concept applies only to
import and export procedures
 No guarantee reduction for the
transit operators
 The guarantee amount should be
calculated according to the risk
level of transit operators
 CAs to reduce the guarantee
amount to AEO authorization
holders
 The goods that are identified as
high risk is not applicable for
guarantee waiver
Forms of guarantee  Only cash guarantee is accepted
 CAs should accept any form of
guarantee
Comprehensive
guarantees,
comprehensive
guarantee with a
reduced amount of
guarantee and
guarantee waiver
 Customs administrations have not
established criteria for
Comprehensive guarantees
 CAs should develop a standard
procedure for granting a
comprehensive guarantee with
calculated guarantee amount on
the basis of the volume of transit
operations
 It is highly recommended for the
customs administrations to monitor
the use of the comprehensive
guarantee to avoid exceeding the
reference amount of the
comprehensive guarantee
 CAs shall reduce the amount of the
comprehensive guarantee taking
into account sound finances and
clear records for the transit
operators