The CPD can be secured by posting a cash deposit or by using boomerang carnets®' Loss Prevention Security program. Typically, the cash deposit is a larger up front payment than the Loss Prevention Security. However, the net cost of posting the cash deposit is lower once the carnet is satisfactorily discharged. For comparison, these two options will be estimated for applicants upon receipt of an initial inquiry form.
The cash deposit option is 100% refundable upon satisfactory discharge of the carnet. The minimum cash deposit is US$5,000 and is based on the applicable duty rates in the countries to be visited. There is a 2% service fee to post cash with a US$100 minimum and US$1,000 maximum. Cash deposits are held in premium fund trust accounts regulated by the Illinois Insurance Department. They are not interest-bearing. The cash deposit and service fee are collected in addition to the processing fee.
Loss Prevention Security
The Loss Prevention Security Fee is calculated based on the value of the vehicle and the applicable rate of duty and tax for the countries visited. The highest rate is applied. There is a US$2,600 minimum on the Loss Prevention Security Fee. Eighty percent of the fee can be returned if the carnet is satisfactorily discharged. The security fee is in addition to the application fee. Get a quote.
|Vehicle||Vehicle Value||Country||Rate||Amount of Security||Returned Upon Satisfactory Discharge||Net Fee|
|Used Truck||$55,000||Kenya, Namibia, Egypt||800%||$44,000||$35,200||$8,800|
The security payment is posted in addition to payment of the non-refundable application fees.