Improving Customs Transit Systems
In the Islamic Countries
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5.1.3.1.6 Comprehensive guarantees, comprehensive guarantee with a reduced amount of
guarantee and guarantee waiver
Customs administrations may review the reference amount of the comprehensive guarantee and
adjust it to the volume of the transit operations conducted by the operator. Both transit
operators and Customs administrations can monitor the use of the comprehensive guarantee,
and keep a record of each transit operation to avoid exceeding the reference amount of the
comprehensive guarantee.
It is highly recommended for customs administrations to develop a standard procedure for
granting a comprehensive guarantee, in which they calculate the guarantee amount on the basis
of the volume of transit operations carried out by the applicant in the earlier period.
5.1.3.1.7 End of procedure and discharge of guarantee
The WTO / WCO recommendation stipulates for the guarantee to be discharged immediately
once the corresponding transit operation is terminated. The Paper-based transit systems may
take a maximum of 3 working days to discharge the guarantee once the transit operation is
terminated and that information is exchanged between the customs office of departure and the
customs office of destination electronically. If that information is exchanged between the
customs office of departure and the customs office of destination in paper form, it could take
more than 30 days to discharge the transit operation and the used guarantee.
5.1.3.1.8 Use of Customs convoys and Customs escorts or usage of transit guarantees
It is highly recommended to use risk management techniques to determine any compliance risk.
Only in instances of high risk, a prescribed itinerary or Customs escort can be considered for use
of RFID or GPS seals to monitoring the transit in real-time.
5.1.3.1.9 International/regional guarantee management and monitoring systems
An essential requirement of any transit system is a guarantee valid for a single ormultiple transit
operations, which covers the full amount of Customs duty and other charges applicable. To
increase the security in the national or international/regional CTR, it is recommended to
develop the Guarantee Management System (GMS), which could be used for CTR and for other
customs procedures. The Guarantee Management System (GMS) shall be managed by the
Customs office of Guarantee to which the guarantee is provided – the cash deposit, the individual
guarantee by a guarantor or the comprehensive guarantee by a guarantor. The Guarantee
Management System (GMS) check and monitor whether the amount of guarantee or the
Reference amount of comprehensive guarantee or guarantee waiver is not exceeded when a new
customs declaration is lodged to the customs otherwise this customs declaration cannot be
accepted by customs.