If the goods are lost during the movement, the authorities in the country of transit will call on the owner to pay any import VAT, customs duty and other charges.
Transit is required when goods need to pass through a border uncleared and having the finalclearance done elsewhere (the point at which the transit closes). It’s a complicated subject but
in simple terms the guarantee holder covers the duty and VAT liability which allows the goods
to pass without border clearance. A transit guarantee is required and needs to be sufficient to
cover the duty and VAT liability of all goods in transit at any one time (includes those transit
movements that are not yet closed). Not unusual to require a transit guarantee in excess of
£1million. Possible to get a waiver on the amount of bank guarantee required. 100% waiver
possible with AEO approval or, in some cases, on the strength of strong financial results.