To initiate a transit declaration, the principal must first lodge the required guarantee undertaking with the Customs office of guarantee in the country of departure for duties and taxes potentially liable for the declared transit goods. The guarantee is an amount held by or available to Customs if the terms of the transit approval are not met, such as the loss or improper diversion of the goods. The amount of guarantee is a calculation of the highest rates of duty/taxes potentially payable on those goods (with rates based on AHTN commodity code) in the countries of intended transit.
The amount of guarantee for the transit operation is held by Customs (the ‘office of guarantee’) in the country of departure until released upon notice of discharge (satisfactory termination) of the transit movement. The guarantee undertaking letter will have to be issued by a Guarantor who is a legal ‘person’, such as a bank, which undertakes to pay the duties and taxes that will be due if a transit document is not discharged properly and the Principal trader is not able to pay for the duties and taxes due to Customs. For the purposes of the implementation of the ACTS Pilot only guarantees issued by a bank will be recognized.
Guarantors must be established in and approved by the Customs ‘office of guarantee’ in the country where the guarantee is furnished. Depending on the need of the registered traders, the trader can use single or multiple journey guarantee to support the transit movement. The requirement and operationalization of the guarantee undertaking are governed by Article 5 of Protocol 7 and its Technical Appendix.
List of banks issuing Guarantee Undertaking Letter for transit operations:
- Malaysia: In Malaysia, we accept all banks as long as they are registered with the Malaysian Central Bank (Bank Negara Malaysia). For more information, please refer to: www.bnm.gov.my
In Singapore, we accept all banks and finance companies as long as they are registered with the Monetary Authority of Singapore (MAS). For more information, please refer to: security lodgement.
- Thailand: Krungthai Bank, Krungsri Bank, Kasikorn Bank and TMB Bank
- Cambodia : J Trust Royal Bank; CambodiaTB@jtrustroyal.com
- Lao PDR: Lao Development Bank, BCEL Bank
- Viet Nam : All the banks can issuing the guarantee on condition that they meet the requirements of The Decree as below:
(1) banks operate under the credit institution Law; and
(2) banks indicate their representative office in all the countries involved in the transit movement.
Quick Guide to the ASEAN Customs Transit System (ACTS) for Banks acting as Guarantors
*updated on May 2020
Approved Guarantee Formats
Single Journey Guarantee
Multiple Journey Guarantee