Cargo Ship

What Are Customs Bonds

Customs bonds are very important for almost any international trade and business transaction—but many people are unfamiliar with them. So what is a customs bond, and why is it important? Keep reading to take a close look at these essential tools.

A bond is a contract which is used to ensure that a party will perform their obligations. A person, group, of business that is unsure another party will fulfil their obligations asks a bond or surety company to ensure the action is performed. If the obligated party fails to perform the action, the surety bond company will reimburse the first party.

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