III.2.3.2. Constitution and authorization

The guarantor must be established in the Contracting Party in which the guarantee is provided and be authorized by the customs authorities requiring the guarantee.

Such authorization shall be in accordance with the provisions in force in the country concerned. Therefore, the general legal relationship between the guarantor and the competent authorities will be determined by national law within the general framework of traffic regulations.
In the Union, the guarantor does not have to be authorized by customs authorities, unless it is a credit institution, financial institution, or insurance company accredited in the Union in accordance with the provisions of Union law in force.

Customs authorities may refuse authorization to a guarantor who does not provide security for meeting the payment of the (customs) debt within the required timeframe.

The guarantor must choose an address for service of process in each of the countries where the guarantor's guarantee is valid, or if the legislation of a country does not provide for such a provision, he must appoint a representative. The address for service of process provides the guarantor with a place of business, registered in accordance with the legislation of the country, to which the competent authorities can direct all legally binding formalities and procedures relating to the guarantor in writing. The guarantor's representative may be a natural or legal person appointed by him.

This ensures that written communications addressed to the guarantor and any legal proceedings in which he or she is involved can be sent to him or her in a verifiable manner in any country where a (customs) debt may arise due to goods circulating under the transit regime.