BEDC and HM Customs Letter of Credit Product
The Bermuda Economic Development Corporation has partnered with HM Customs to offer a letter of credit product to existing and new small businesses, including those in the EEZs and vendors. BEDC has allocated $200,00 in funds annually to be used to facilitate lines of credit in amounts up to a maximum of $10,000 to assist start up and existing small businesses and vendors in importing goods for retail sale in Bermuda. The BEDC will offer a 100% guarantee letter of credit to assist qualified applicants in securing HM Customs Line of Credit to defer payment of duty.The product was developed in response to an identified gap in the lending market. Approved retailers are not not required to provide monetary security to HM Customs for any duty deferred. However, an approved retailer is required to furnish Customs with a Letter of Credit from a bank or other financial institution in Bermuda guaranteeing payment of a specified amount of duty that may be deferred by that retailer under the approval given by the Collector. Customs will extend a line of credit when it is 100% secured by an irrevocable letter of credit issued by a Bermuda Financial Institution. For as long as the line of credit remains active, Customs will be prepared to extend a line of credit up to the value secured by the letter. HM Customs is willing to accept a guarantee letter from BEDC to secure the line of credit. This programme becomes operable on September 1st 2015. For more information on the Letter of Credit and how to apply click on the links below to access the detailed information.