16.4 Amount of Security
The amount of security to be furnished shall not be less than the
amount of duties, taxes and service charges.
In cases where the amount of duties, taxes and service charges
cannot be established with certainty, the amount of security will be
equal to the maximum amount estimated by ERCA.
If the security furnished does not cover the debt due to any cause,
the debtor will be required to furnish an additional security or
replace the original security with a new one.
16.5 Duration of Security
The duration of the security may vary according to its type and
purpose and is decided by ERCA. In this regard, the following may
serve as an example for the duration of securities:
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71 Circular, reference no. 3.2.0/357, June 2006 EC.
• for transit operations, the security period will be limited to the
transit time specified in section 6.4 above;
• for goods imported under voucher schemes, the time limit is
three months;
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• for temporarily imported goods, the time limit is a specified in
section 8.2.3 above; and
• for bonded warehouse licensing the time limit is one year,
renewable annually.
ERCA will extinguish the security upon the full settlement of the
debt and will also, when requested, issue evidence of having done
so.
16.6 Role of Debtor and Guarantor
If the debtor fails to discharge his/her obligations, the guarantor will
be requested to effect the payment immediately.
The guarantor and the debtor will be jointly and severally liable for
the secured amount of debt, including interests and costs incurred.
If the guarantor fails to effect payment, ERCA may apply the
procedure prescribed under the Tax Administration Proclamation to
seize the property of the debtor or the guarantor for the payment of
the debt.
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