Continuous Customs Bonds Questions and Answers
How much am I going to be saving by buying my continuous Customs bond
direct?
The answer is dependent on your current cost for the bond. The most common bond is the $50,000 Minimum continuous Import Bond. The average cost for this bond when purchased from a broker is $400-$500 per year. Trade Risk Guaranty offers a 3-year term for this same bond for $895, which averages out to $298/yr. Not only are our rates well below the national average, but combined with our outstanding Customer Service and value-added services, TRG offers a cost effective source for your continuous US Customs bond needs.
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How long does it take to put the continuous bond in place with TRG?
The length of time to file a bond is determined by Customs and Border Protection. The most common bond is the $50,000 continuous Import Bond. Customs requires 10 business days notice for this bond. Other continuous Customs bond amounts and types may require more notice but not less.
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Why is your pricing so much lower than my current
rate?
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The most likely reason is because you are currently purchasing through an additional “middleman” (a customs broker or freight forwarder). Your broker purchases the Customs bond through a Surety agent (TRG) and then marks up the cost and sells it back to you.
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"My broker told me there are no multiple year
bonds".
US Customs bonds are continuous, meaning once they are on file with Customs, they remain active until terminated in writing. When we offer a 1,2 or 3 year term for the Customs bonds, we are referring to billing terms. TRG has negotiated discounted premium rates for importers that pay for 2 or 3 years at one time. At the end of the chosen term, TRG contacts your company to see if you wish to continue the previous term or select a different payment term.
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Is this the same continuous bond I already have?
Customs bonds are issued in standardized format according to Customs and Border Protection regulations. Any authorized issuer of continuous Customs bonds issues the same bond format, parameters, conditions and coverage’s. The only difference in purchasing a bond from one issuer to another is the strength of the insurance company issuing your policy. TRG issues Customs bonds from companies with very high S&P ratings who have been operating well over 100 years. Anyone you authorize to clear entries on your behalf will be able to access this bond.
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How will my broker, or all my brokers, know that I
have a new bond?
At your request, TRG will notify your broker(s) of your new continuous bond information including Bond Number, Effective Date, Surety Code, and Importer Number.
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I have shipments arriving every day and cannot
afford a lapse in coverage.
TRG is the expert in Customs bonds. Not only have we been managing and coordinating the filing of new and replacement bonds for importers since 1991, our senior management has been specifically instrumental in the continuous Customs bond industry since 1960. We follow the rules and regulations of Customs in the process of terminating one bond and filing the replacement bond simultaneously, to ensure no gap in coverage.
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What if I purchase the continuous bond with a multiple year option and your company goes out of business?
In this highly unlikely event, your bond is not affected in the least. The insurance company issues your bond and your contractual agreement to pay them for coverage is between you and them. TRG facilitates the insurance company’s ability to provide you highly specialized service, but in the even TRG were to not exist, the insurance company would either service internally or obtain the services of another surety agency to service your account.