{"id":1551,"date":"2017-08-28T09:40:11","date_gmt":"2017-08-28T09:40:11","guid":{"rendered":"https:\/\/pamstaging.securenow.in\/insuropedia\/?p=1551"},"modified":"2026-02-08T06:16:23","modified_gmt":"2026-02-08T06:16:23","slug":"can-customs-duty-cover-bought-along-open-cover-policy-exportimport-insurance","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/can-customs-duty-cover-bought-along-open-cover-policy-exportimport-insurance\/","title":{"rendered":"Can a Customs Duty cover be bought along with an Open Cover policy under export\/import insurance?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">Export and import insurance policies protect businesses and cover them against various risks. Open Cover policy helps business owners to secure themselves against a variety of perils involved in export and import transactions. Export and import insurance has various types of policies for different users.<\/span><\/p>\n<div class=\"react-scroll-to-bottom--css-omhus-1n7m0yu\">\n<div class=\"flex flex-col pb-9 text-sm\">\n<div class=\"w-full text-token-text-primary sm:AIPRM__conversation__response\" data-testid=\"conversation-turn-7\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl group final-completion\">\n<div class=\"relative flex w-full flex-col agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"1af9d3f5-9e3b-4e8a-b764-7832bcc4d227\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>You can buy a customs duty cover along with an open cover policy under export and import insurance. A business owner may have his consignments covered under both policies. The open cover policy will continuously protect all consignments exported or imported throughout the given year. The declared amount reduces the sum insured for each consignment to be exported or imported. Also, the customs duty policy will cover any loss of customs duty due to damage caused to the imported goods<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">To know the usefulness of these policies, it is important to know what they are and how they offer protection under <\/span><span style=\"text-decoration: underline;\"><a href=\"https:\/\/securenow.in\/marine-insurance\/export-and-import-insurance\"><span style=\"font-weight: 400;\">export and import insurance<\/span><\/a><\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Open cover policy:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The policy period for an open cover policy can start from one year and can be renewed yearly. All the information related to the rate and term is included in this policy as per agreed conditions between the insured and the insurer. When the insured has to send any consignment, he must do the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A declaration has to be provided to the insurance company along with the information related to the location of shipment and types of goods.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The sum insured gets reduced according to the type and invoice of the consignment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Premium has to be appropriately paid by the insured on a regular basis.<\/span><\/li>\n<\/ul>\n<h2><b>Custom duty cover:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A custom duty policy is taken to cover any loss in custom duty incurred during an import consignment. This policy mainly protects the insured against the loss due to customs duty paid by the importer in case the goods that are imported arrive in damaged conditions. It is important that this policy is taken by the insured before the goods arrive.<\/span><\/p>\n<p><b>Additional Read: <\/b><span style=\"text-decoration: underline;\"><a href=\"https:\/\/securenow.in\/insuropedia\/insured-file-claim-export-import-insurance-policy\/\"><span style=\"font-weight: 400;\">How Should an Insured File A Claim Under Export-Import Insurance?<\/span><\/a><\/span><\/p>\n<h2><b>Case Study:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A cloth manufacturing company located in Hyderabad was in the business of exporting and import of cloth materials in domestic as well as international markets. It started its business from a small factory but the business has flourished and grown large. The products that it produced were of superior quality and hence the production and sales saw a huge jump year after year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It exported finished goods to different parts of India. The finished products included shirts, jeans, and other men\u2019s apparel. However, it imported the denim material required for the production of jeans from Malaysia.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As it had lots of export and import consignments going on throughout the year, it had taken an export and import insurance policy from a well-known marine insurer. This was an open-cover policy that provided protection to the shipments of finished products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once the imported material denim was found to be damaged and not up to the required standards, the company however had paid the billing amount as well as the customs duty for the imported material. The cloth manufacturing firm immediately contacted its insurance providers. <\/span>Upon investigation, we found that the material was indeed damaged. Thus, the open cover policy and the customs duty policy bought by the cloth manufacturers came to the rescue.<\/p>\n<p><b>Additional Read:<\/b> <span style=\"text-decoration: underline;\"><a href=\"https:\/\/securenow.in\/insuropedia\/overseas-importer-report-claim-export-import-insurance-policy\/\"><span style=\"font-weight: 400;\">To whom Would an Overseas Importer Report a Claim Under an Export &amp; Import Insurance Policy?<\/span><\/a><\/span><\/p>\n<p><span style=\"font-weight: 400;\">The open cover policy protects against damaged denim material. <\/span>The open cover policy brought along with the custom duty policy protected the cloth manufacturers against custom duty loss.<\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Simran<\/strong><\/p>\n<p><strong>MBA Insurance and Risk<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Export and import insurance policies protect businesses and cover them against various risks. Open Cover policy helps business owners to secure themselves against a variety of perils involved in export and import transactions. Export and import insurance has various types of policies for different users. You can buy a customs duty cover along with an [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[313,4],"tags":[159],"class_list":["post-1551","post","type-post","status-publish","format-standard","hentry","category-product-features-marine-insurance","category-marine-insurance","tag-marine-insurance-policy"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=1551"}],"version-history":[{"count":14,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1551\/revisions"}],"predecessor-version":[{"id":35175,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/1551\/revisions\/35175"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=1551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=1551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=1551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}