What Is A Customs Bond?
A Customs Bond is a contract between three parties (CBP, a principal, a surety) to ensure all the duties and fees associated with the shipment are paid to Customs. All entries must be covered by an import bond in order to make formal entry of merchandise into the United States. The bond serves to secure potential duties, taxes, and fees owed to CBP and guarantee performance of all Customs regulations requirements – but it is not insurance. The bond is to be filed on CBP form 301 and is a contract between the importer and CBP that protects Customs’ interests.There are a number of surety companies who issue these bonds.
When Is A Customs Bond Required?
A customs bond is required if you are importing commercial goods that are valued over $2,500. A customs bond is required if your goods are subject to requirements from other U.S. government agencies. For instance, if you are importing food related items, you will be required to obtain a customs bond in addition to your Food and Drug Administration (FDA) requirements.
Types of Bonds
Single Transaction Bonds – Single Transaction Bonds generally in an amount not less than the total entered value of goods, plus any duties, taxes, and fees associated with it. The amount of any CBP bond must not be less than $100, except when the law or regulation expressly provides that a lesser amount may be taken.
Continuous Bonds- Continuous Bonds do not expire or cancel as long as the party makes the required payment for each renewal. This customs bond can be used for an annual period and covers ongoing shipments within that year.
Where can a continuous bond be used and who can use it?
A continuous bond is a financial guarantee commonly used in international trade that renews automatically until it is canceled.
How does the bond renewal process work for continuous bonds?
The continuous bond is automatically renewed every year if it is not canceled unless it is terminated by one of the three parties involved. This bond is an option for importers who bring goods into the U.S. on a frequent or regular basis.
What happens if the principal doesn’t pay?
If the principal doesn’t pay, the U.S. Customs and Border Protection will collect from the Surety company that issued the bond.The Surety company can then use legal means to collect from the importer.
What happens if I don’t get a bond?
Failure to comply with the new rule could ultimately result in monetary penalties, increased inspections and delay of cargo. Without a bond, shipments will not be allowed to clear the U.S. Customs, which means the importer could face fines and severe delays.
Where can I buy a Customs bond?
Customs bonds can be purchased through a Customs Broker licensed in the United States. You can consult Abady Law Firm, a specialized customs attorney firm focused on international trade issues across the U.S.
How Fast Can I Get a Customs Bond?
According to U.S. Customs and Border Protection (CBP) It generally takes between 2-5 days to secure a bond. A Licensed Customs Broker can help obtain a customs bond for you on your behalf.
How Much Is A Customs Bond?
The amount of the bond is based on a formula that is used for calculating risk set by CBP. Evidence of an import bond is required as part of the entry process.
Customs Lawyer – Abady Law Firm
If you need assistance with Customs Bonds or have questions regarding the requirements, Abady Law Firm is here for you. We specialize in customs focused on international trade. We will help you to navigate through all of the rules and laws that govern the importing of goods to and from foreign countries. Abady Law Firm helps people to navigate international regulations, predict the risk and minimize it beforehand.
