Reduction of collateral

What options are there for AEOs to reduce the securities for customs procedures? I recently received this question from my network.

A basic distinction must be made between two types of collateral:

1️⃣ Collateral for customs debts already incurred

A classic example of this is the current deferment of payment. The customs debt is already incurred on the day of import, but as the import duties are not paid until the following month, security must be provided for the deferred payment

2️⃣ Collateral for customs debts that may arise

This form of security is usually known from the transit procedure, the customs warehouse or other special procedures. As long as the goods are in the respective customs procedure, no customs debt has yet been incurred; it could possibly arise, e.g. through the release for free circulation or through an offence such as a withdrawal from customs supervision.

Why is this distinction important when we talk about reduction?

An AEO can be completely exempted from providing a security for any customs debts that may arise (reduction to 0% of the reference amount).

However, this is not provided for in the case of security for customs debts already incurred. This can be reduced to a maximum of 30 % of the reference amount. For this reason, it is important to differentiate between these two types!

Two/three stages are provided for the reduction/exemption of the security deposit:

1️⃣ Reduction to 50 % of the reference amount
2️⃣ Reduction to 30 % of the reference yield
3️⃣Für Any customs debts that may arise: Exemption from the provision of security

The extent of the reduction depends on the conditions that the economic operator fulfils (see Art. 84 UCC-DA)

An AEO fulfils the requirements for exemption or reduction to 30%.

In practice, however, customs authorities often only grant the exemption in stages, e.g. reduction to 50 % after one year, further reduction after 3 years, exemption after 5 years.

In my opinion, however, there is no legal basis for this step-by-step procedure! If the economic operator has an AEO certificate and sufficient liquidity, the conditions for immediate exemption are met.

What is your experience regarding the granting of the reduction/exemption? I look forward to your comments!