# security deposit / performance guarantee

*Last updated: 2026-06-26*

> Unlike a mere contractual payment promise, a security deposit requires the obligor to provide actual collateral – in the form of cash, a bank guarantee, or a surety bond.

Unlike a mere contractual payment promise, a security deposit requires the obligor to provide actual collateral – in the form of cash, a bank guarantee, or a surety bond. In customs law, it is a core control instrument: authorities require it for procedures with deferred duty collection, bonded warehouse operations, or participation in transit procedures. In international trade, it protects the creditor against counterparty default without resorting to litigation. The amount is calibrated to the estimated duty liability or the contract value. It should not be confused with a global guarantee, which consolidates multiple ongoing obligations under a single instrument.

**Source:** [https://de.wikipedia.org/wiki/Sicherheitsleistung](https://de.wikipedia.org/wiki/Sicherheitsleistung)

## Quick Facts

| Property | Value |
|---|---|
| Term | security deposit / performance guarantee |
| Language | EN |
| Word count | 100 |
| Last updated | 2026-06-26 |
| Source | https://de.wikipedia.org/wiki/Sicherheitsleistung |

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