On September 3, Ningbo Linhe Plastics Company finished paying its import duties on the basis of “Tariff Guarantee Insurance” policy, which marked completion of such first transaction in Zhejiang Province.

The “Tariff Guarantee Insurance”, a new pilot transaction put forward by the GACC on September 1, is designed to take Customs authority as the insured party and allow the importers to utilize Insurance Company-issued policy that can replace tariff deposit or bank guarantee for tariff, thus clearing customs before paying duties; this is particularly significant for medium, small and micro-sized importing businesses that are required to pay a large-sum deposit or are low in bank line of credit; if an importer fails to pay its duties as required, the Customs has the right to claim the duties from the Insurance Company involved.  

To ensure the smooth implementation, Ningbo Customs actively visited Insurance Companies and industrial associations to understand businesses’ intentions to apply the new transaction, assigned special coordinators in touch with businesses, and timely paid follow-up return visits to complete relevant duties payment and write-off within the period of insurance.

Through tariff guarantee insurance, the Customs can release import goods before importers pay duties, thus further enhancing clearance efficiency and relieving businesses’ financial stress.