III.4.1.8. Temporary prohibition on the use of the comprehensive guarantee

Article 77 of Appendix I to the Convention
Annex I of Appendix I of the Convention
Article 96 of the CAU

The use of a comprehensive guarantee, a comprehensive guarantee with a reduced amount, or a guarantee waiver may be temporarily prohibited in the following cases:

in special circumstances;
for goods in respect of which large-scale fraud related to the use of the guarantee has been proven.

As regards the Union transit system, the decision on its prohibition is taken by the European Commission, and as regards the common transit system, by the EU-CTP Joint Committee.

The special circumstances mentioned above relate to situations where it has been established that a comprehensive guarantee, a comprehensive guarantee with a reduced amount, or a guarantee waiver is no longer sufficient to ensure payment, within the prescribed period, of the (customs) debt incurred when certain goods are removed from the common/Union transit procedure. In a significant number of cases, this has affected more than one scheme holder and jeopardized the proper functioning of the scheme.

Large-scale fraud is defined as a situation in which a comprehensive guarantee, a comprehensive guarantee with a reduced amount, or a guarantee waiver is no longer sufficient to ensure payment, within the prescribed period, of the (customs) debt incurred when certain goods are removed from the common/Union transit procedure. In this situation, the volume of the stolen goods and the circumstances of their theft should be taken into account, especially if they are the result of internationally organized criminal activity.