Any business considering importing goods should be knowledgeable of all the requirements involved. One item in this list should be a customs bond. There are several things you should understand about the bond.
What Is a Customs Bond?
The primary reason for this type of surety bond is to guarantee the payment of taxes and import duties. The bond serves as assurance that specific obligations between an importer and customs will be fulfilled.
Who Needs to be Bonded?
The United States requires all commercial imports to be covered through an import bond. A properly executed bond is the only way for merchandise to clear customs.
What Does the Bond Include?
The following agreements and conditions are specified in the bond:
- Agreement to permit merchandise to be examined.
- Agreement to produce evidence of shipment and documentation.
- Agreement to pay all charges, taxes and duties on time.
- Compliance with all duty-free entry special requirements.
- Agreement to complete entry.
- Exoneration of and reimbursement to the United States.
- Agreement to correct any non-compliance on condition of admission.
- Agreement for re delivery if demanded.
Are There Different Types of Bonds?
Depending upon the volume and type of transactions involved, there are several types of bonds available. The most common of these are:
- Continuous Bonds are appropriate for any port of entry, provide coverage for twelve months, and cover all imports during that period.
- Single Entry Bonds provide coverage for one transaction only.