Guarantee Agreement

You should use the Guarantee Declaration when:

• You want to import or export agricultural commodities where a license is required
• A company applies for a license to export or import certain quantities of agricultural products (custom tariff quotas)
• You want to recieve payments in advance on information campaigns (promotion) 
• You want to submit a bid in connection with a tender or application for private storage or public intervention of certain agricultural products.

• The required security must be present at the Danish Agricultural Agency on the day of application
• The application will be turned down if the required security is not received on time. For that reason, we strongly recommend that the security is made and forwarded well in advance before the application deadline
• The security will be returned when all obligations have been fulfilled
• Failure to comply with the obligations will lead to full or partial penance.

You can choose between either a standing maximum guarantee or an single guarantee. It must be set in Danish kroner (DKK). However, in relation to a single letter guarantee it can also be set in EURO (EUR) in one of the following ways.

In addition, a cash guarantee can only be provided as a single guarantee:

1. In Cash

This should be done through a money transfer via Internet Banking to the Danish Agricultural Agency account in Danske Bank. The account number is: 0216-4069048692. The guarantee is valid from the date the money is paid to the account of the Danish Agricultural Agency.

2. Letter guarantee

The guarantor could be your bank or an insurance company in either Denmark or another EU country. The guarantor must be authorized in the country where the bank, the insurance company or equivalent is a resident. Documentary evidence for this authorization must be presented in form of a declaration from the guarantor. The declaration must be filled in first time the guarantor forwards a guarantee to the Danish Agricultural Agency. The guarantee is valid from the time of receipt in the Danish Agricultural Agency.

The guarantee statement is exempt from stamp duty and shall bear the text shown below.

Text of letter guarantee

Text of guarantor declaration

3. A deposit guarantee

The financial institution must be authorized in the EU country where it is a resident. For instance, it could be your bank which presents the deposit guarantee. The date of the transmission to the deposit account equals the date when the guarantee is made. Otherwise, the guarantee is valid from the time of receipt in the Danish Agricultural Agency.

The guarantee statement is exempt for stamp duty and shall bear the text shown below.

Text of deposit guarantee

The original letter or deposit guarantee must be forwarded to the Danish Agricultural Agency, Centre for Payment, Central Team. If the letter- or deposit guarantee is to be directly applicable; the guarantor must forward it by e-mail to: Centralteam@lbst.dk

Remember to submit the original guarantee statement by post to the Danish Agricultural Agency afterwards.