The implementation of the Union Customs Code (UCC) on May 1, 2016 makes it mandatory for economic operators to secure a financial guarantee for actual or potential customs debts.   Actual debts are those created by placing customs duty and value-added tax (VAT) on deferment accounts in order to obtain release for free circulation.  Potential debts are those created when imported goods are placed under a customs procedure where the customs duty and import VAT is suspended, for example, customs warehousing or processing. 

An economic operator may apply for a comprehensive guarantee when multiple customs procedures are involved.   A comprehensive guarantee allows for the reduction of the guarantee amount in the case of potential debts. 

Additionally, a waiver for potential debts and a guarantee reduction for actual debts is available for economic operators that hold AEO C certification (Authorized Economic Operator certification for customs simplifications).  The customs authorities will notify economic operators who hold authorizations issued under the Community Customs Code when guarantees need to be lodged.   

All applications for authorizations under the UCC will need to be covered by a guarantee.

Guidance on guarantees can be found on the following link here