Civil liability insurance to customs authorities

Insured event:

An insured event is a violation that results in a demand by the Customs authority of the Republic of Kazakhstan that the Policyholder pay the customs payments due, in full or in part, to the extent of the unfulfilled obligation.

Documents provided by the Policyholder:

• an identity document of the Insured Person and the taxpayer registration number;
• other necessary documents at the Insurer's request.

No insurance payout is made in the event of:

• intentional actions of the Policyholder aimed at causing the insured event or contributing to its occurrence, except for actions committed in necessary self-defence or in a state of extreme necessity;
• actions of the Policyholder recognized, in the manner established by legislative acts, as intentional crimes or administrative offences causally connected with the insured event;
• receipt by the Policyholder of appropriate compensation for property damage from the person responsible for causing the loss;
• other cases provided for by the contract.

Programme benefits:

• compensation by the Insurer of losses caused to customs authorities;
• prompt claims settlement.

List of documents required to conclude an insurance contract:

1) a copy of the state registration certificate;
2) a licence (or other document) granting the right to carry out professional activities;
3) qualification certificates of customs clearance specialists;
4) a copy of the standard contract for the provision of services (works) with the represented person. In accordance with Article 338 of the Customs Code of the Republic of Kazakhstan (CC RK), security for the payment of customs duties and taxes is applied:

1. when operating as a customs carrier in accordance with Article 63 of the CC RK;
2. when transporting goods and vehicles under the internal customs transit procedure in accordance with Article 74 of the CC RK;
3. during temporary storage of goods in accordance with Articles 91, 94–95 of the CC RK;
4. when processing goods outside the customs territory in accordance with Article 174 of the CC RK;
5. when re-exporting excisable goods in accordance with Article 210 of the CC RK;
6. during transit of goods in accordance with Chapter 27 of the CC RK;
7. upon conditional release of goods subject to customs duties and taxes using price information available to customs authorities in accordance with Article 321 of the CC RK;
8. when changing the deadlines for payment of customs duties in accordance with Article 332 of the CC RK;
9. when extending the deadline for submitting a cargo customs declaration in accordance with Article 380 of the CC RK;
10. for periodic declaration of goods in accordance with Article 388 of the CC RK;
11. upon release of goods in accordance with Articles 392 – 393 of the CC RK.

With the introduction into the Customs Code of the Republic of Kazakhstan (Article 339) of a new type of security for the payment of customs duties and taxes – the Insurance Contract – participants in foreign economic activity have gained a real opportunity to save TIME and MONEY.

Security for the payment of customs duties and taxes is provided by the payer or a third party before the release of goods placed under customs procedures or before the start of operations as a customs carrier.

The advantage of an Insurance Contract over other types of security lies in simplified paperwork and no need to divert and freeze significant funds, since the insurance premium paid is substantially lower than the required amount of customs security.

In addition, when an insurance contract is used, no further effort is required after the goods are placed under another customs procedure to recover the deposit provided to the customs authority, withdraw a bank guarantee or lift restrictions on pledged property.

By concluding a Contract of Civil Liability Insurance to Customs Authorities, you obtain professional insurance protection of your property interests related to civil liability to customs authorities for compliance with the conditions and requirements established by the Customs Code of the Republic of Kazakhstan.

The sum insured is set by agreement of the parties and may not be less than the amount of customs duties and taxes payable in accordance with the Customs Code of the Republic of Kazakhstan:

The insurance payout is made to the customs authority in the amount of actually incurred and documented losses (non-payment of customs duties).

The amount of actual damage is determined by the insurer on the basis of a claim issued by the customs authorities or a court decision.

 

Insurance rate: from 0.3% to 2%.