Customs guarantee

Trade finance.

A customs guarantee is a guarantee supplied by an importer in favour of a revenue authority, for example HM Revenue & Customs in the UK.

The customs guarantee is issued by a bank or insurance company in favour of the revenue authority.

It guarantees that the import duty on imported goods will be paid, enabling the business to import and distribute goods before payment of the import duty.

Also known as a customs bond.

See also

• Advance payment bond
• Bid
• Bid bond
• Bond
• Customs duty
• Duty
• Guarantee
• Performance bond
• Performance guarantee
• Retention bond
• Surety
• Surety bond
• Tender
• Trade finance