Yes, the movement of goods under the ACTS must be supported by financial guarantees lodged at the Customs Office of Departure (where the goods are loaded into the truck) to cover the potential amount of duties and taxes in any one of the countries involved in the transit movement.

 

As the duties and taxes on the goods are 'suspended', the trader must undertake to pay Customs the duties and taxes due if the goods are illegally diverted away without reaching the destination country. Each trader must obtain a guarantee from a recognised guaranteeing institution, such as a bank or finance company, in the country of departure to cover the potential amount of duties and taxes, in case the trader does not pay the duties and taxes due for any reason, such as bankruptcy. In Singapore's context, the bank or finance company must be registered with the Monetary Authority of Singapore (MAS).

 

Under protocol 7 of AFAFGIT, AMS Customs Authorities have agreed to the use of a single guarantee for the whole journey to be issued by a recognised financial institution in the country of departure where the goods are loaded. In this way the trader does not need to take out a separate guarantee at each border for the potential amount of duties and taxes, thus reducing the cost and time taken to transport goods between AMS. These guarantees are managed on-line by the ASEAN Customs Transit System (ACTS), that is, each ACTS declaration is validated against an electronic record of the guarantee, to ensure there is sufficient cover for the duties and taxes at risk on that particular consignment. These guarantees may cover a single journey, or multiple journey, as described under protocol 7 of AFAFGIT.

 

You may refer to our website for more information on the ASEAN Customs Transit System (ACTS) here.