A Customs bond is a contract between three parties (Customs, Importer of Record, and a surety) to ensure that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the Importer of Record(IOR).
Most bonds are issued through Customs brokers, who work with surety agencies on behalf of the importers. This is beneficial to the importer because a Customs broker has the expertise and relationships related to Customs activity, and can better assist in proactively monitoring the bond and also with a resolution to any issues or claims that may arise.
If the merchandise is subject to government agency rules and regulations, the bond amount must be equal to three times the value, additional documents could be required, View our post about Documents required when importing into the U.S.A.
The main purpose of a customs bond is to guarantee the payment of import duties and taxes are paid to the Government.
When do you need a Customs Bond?
Imports valued over $2,500
Imports requiring federal agencies requirements.
InBond Transportation
U.S.A Free Trade Zones
Duty Drawback Filing
Bonded Warehousing
Types of Bonds
If you only import on occasion, the single entry bond is recommended.
A single entry bond is generally in an amount not less than the total entered value, plus any duties, taxes, and fees. 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.
If you import frequently and through various ports of entry, the continuous bond is beneficial and economically the best choice. The Continuous bond covers all activity within a 12 month period.
A continuous bond is 10% of duties, taxes, and fees paid for the previous 12 month period. $50K is the minimum amount for a continuous import bond and the bond sizes are based on duties, taxes, and fees.
Benefits of a Continuous bond: Lower Cost, Lower processing time & Faster Inspections from Customs.