“Yellow Corridor” and the Security Card: How the Process Works and What Foreign Trade Participants Need to Know
Author: Nikolai Zenin, Customs Clearance Expert
Customs clearance is not only about formal procedures, but also about a risk management system that the state uses to control the clearance process. One of these tools is the “yellow corridor”, which involves documentary control of the Goods Declaration (GD).
Often, when foreign trade participants are unable to provide the documents requested by customs authorities to confirm the declared customs value but still want to release their cargo from the warehouse, the question of securing the payment of customs duties arises at this stage.
For this purpose, there is a tool called “Security for the fulfillment of the obligation to pay customs duties and taxes”, commonly referred to as a security card. It allows companies to deposit funds into a customs deposit account and use them to cover potential obligations to the state.
Let’s break it down step by step: what the yellow corridor is, when a security card is needed, how to open one, and how to return the funds after the procedures are completed.
What Is the “Yellow Corridor”?
The customs risk management system includes several corridors: green, yellow, red, and blue.
The yellow corridor means that:
- The goods declaration has been selected for documentary verification of the accompanying documents and the declared customs value.
- Physical inspection of the goods is usually not carried out (unlike the red corridor).
- The main goal of customs is to verify correct classification of goods, accuracy of declared information, and correctness of calculated payments.
In practice, this means the release of goods may be delayed during document verification, but without physically opening containers or pallets.
When Is a Security Card Required?
When goods are placed under the customs procedure of release for domestic consumption, if the submitted documents are insufficient for customs authorities to make a decision on releasing the goods, customs is required to request security for payment of customs duties, taxes, and fees for the conditional release of such goods.
The “Security for the fulfillment of the obligation to pay customs duties”, commonly called the security card, is an electronic tool used for depositing funds, which can be withdrawn by customs authorities if necessary.
Situations where it may be required:
- When customs assigns a value verification, the so-called “value yellow corridor”, and identifies risks regarding the accuracy of declared information.
- If the company has outstanding debts for payments to the state budget.
- During transit procedures, release before submitting a goods declaration, or other procedures where a financial guarantee is required.
The Process of Issuing a Security Card
- Depositing funds into the customs deposit account (usually in the national currency — tenge).
- Submitting an application through the customs authority information system.
- Creating the security card within the information system.
- Registration of the security card by a government officer.
Important: the security card can be replenished and reused multiple times as long as funds remain available.
How the Security Card Works in Practice
- During customs declaration, if the goods declaration needs to be released conditionally, the system checks the security card registration number and verifies that sufficient funds are available to secure payment of customs duties.
- If risks are identified or additional duties must be paid, the funds are reserved.
- After the procedure is completed, the funds are either withdrawn to cover obligations or returned to the available balance.
In this way, the security card acts as a financial cushion, allowing the importer to release and retrieve the goods before final clearance is completed.
Refund of Deposited Funds
If the funds on the security card were not used, the foreign trade participant has the right to request a refund. The refund procedure includes:
- Submitting a refund request to the Department of State Revenue where the deposit account is registered.
- Verification confirming there are no outstanding debts or payment obligations.
- Transfer of funds back to the company’s bank account or crediting them to the company’s account for future payments.
In practice, refunds usually take 10 to 30 business days, depending on customs workload and the correctness of submitted documents.
Common Mistakes Made by Foreign Trade Participants
- Depositing less than the required amount, causing the declaration to be “stuck.”
- Late replenishment of the security card, leading to delays in release deadlines.
- Errors in payment details when transferring the deposit — in such cases, refunds may be significantly delayed.
- Attempting to refund funds while there are open obligations — the refund will be rejected.
Practical Tips from the Expert
- Always maintain a reserve balance on the security card for unforeseen cases.
- When calculating the amount, consider not only duties but also possible additional charges (VAT, excise taxes).
- Always verify the current deposit account details before each transfer.
- For large importers, it is advisable to maintain multiple security cards and distribute financial flows accordingly.
Conclusion
The yellow corridor is not a reason to panic — it is simply part of the customs control system. With proper use of the security card, foreign trade participants can minimize delays and financial risks.
The key is to open the security card in advance, maintain a sufficient balance, and ensure accurate document management. In that case, even if your declaration is selected for the yellow corridor, the release process will not become an obstacle for business operations.
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