Customs Surety Bonds
Commercial import shipments require a Customs Bond
Customs surety bonds guarantee that specific obligations will be fulfilled by the importer. This includes payment of duties, taxes and other charges, as well as compliance with U.S. Law and regulations governing entry of merchandise into the United States. There are three parties to a Customs bond: the principal, the surety and the beneficiary. U.S. Customs & Border Protection is always the beneficiary. All commercial importers are required to post a surety bond or its cash equivalent with U.S. Customs & Border Protection.
What are the most common bonds for importers?
Continuous Transaction Bond: If your firm has multiple shipments over the course of the year, it is likely more economical for you to apply for a continuous transaction bond. The term is one year and it is automatically renewed. For importers, the minimum continuous bond amount is $50,000 or 10 percent of the estimated duties, taxes and fees paid over the past 12 months or 10% of the duties, taxes and fees reasonably estimated to be paid in the next 12-month period, whichever is greater. Effective January 26, 2010, bonds have been required for all Importer Security Filings (ISF).
If no Continuous Bond is on file, Importers obtain a Single Entry Bond for each Customs entry. It covers only the entry or transaction for which it was written and is generally at least the value of the goods plus all duties, taxes, and fees. Bond amounts are subject to port practice; some port directors have set the bond amount for some commodities at triple the value of the goods, as well as triple value of all duties, taxes and all other charges. Without a continuous bond on file with Customs, entries that would otherwise be released electronically are required to be submitted to Customs with a single entry bond. Moreover, entries with single entry bonds are subject to additional entry documentation reviews by Customs.
Speak with one of Tranco’s experienced import professionals. We can negotiate competitive rates while providing you with the appropriate Customs surety bond. Don’t hesitate to contact our Compliance Team at email@example.com to ensure your requirements are met and that costly delays in your vital supply chain are avoided.