Section 95: Guarantee for existing or potential customs debt and performance of condition on requirement

1 The Service may require a guarantee to be provided to ensure the -
a payment of the amount of duties, excise Customs duties, other Customs duties and fees corresponding to a customs debt; and
b performance, conditions or requirements imposed under any applicable law.

2 In special circumstances, where a monetary penalty has been imposed or goods subject 1 to seizure are released pending the resolution of the penalty action, the Service may, at its discretion, request for a guarantee equal to the lesser of the value of the goods or the monetary penalty may be required.

3 A debtor, a person who may become a debtor, or a third person guarantor approved by the Service, may be required by the customs to provide a guarantee to it.

4 The "‘third person guarantor” referred to in subsection (3) is an authorised dealer bank.

5 The Service shall require only one guarantee to be provided in respect of specific goods or a specific declaration, and such guarantee provide for a specific declaration shall not be less than the amount of duty, excise tax, other tax and fees corresponding to the customs debt in respect of the goods covered by or released against that declaration, whether or not the declaration is correct.

6 Where a guarantee is required to be furnished, the Service may authorise a comprehensive guarantee to cover the amount of duties, excise Customs duties, other Customs duties and fees corresponding to the customs debt arising from multiple transactions over a specified period of time, not to exceed one year from issuance or renewal and in the case of a customs bond covering multiple transactions the guarantee shall not be lower than the outstanding customs debt at any given time.

7 Guarantees shall be required from Federal or State Government agencies or Local Government Councils in respect of the activities in which they engage as public authorities.