It’s time for another exciting post from Customs Bonds 101 e-Book series, this one pertains to the main ways Importer Bonds are written.
There are two main ways Importer Bonds are written: Continuous and Single Entry. Each variety appeals to an importer’s specific needs and having familiarity with these two types will help you decide which one best applies to your company. Special thanks to George Dickson who authored these in their entirety, before his departure last year.
Continuous Importer Bonds
When an importer has more than 2-3 shipments annually, they acquire a Continuous Importer Bond, which is a more cost-effective method. This variety of bond will stay on file until it’s terminated by one of the three parties involved (bond principal, U.S. Treasury-listed surety, and CBP). These bonds are accepted at any U.S. Port of Entry and will fulfill bonding requirements for consumption entries and ISF. Typically, Continuous Importer Bonds are 10% of the duties, taxes, and fees paid for a 12 month period. The minimum value for this variety of bond is $50,000.
Single Entry Importer Bonds
Single Transaction Bonds are designed for an importer who wants to import only once at a specific port. Most importers with only 1-5 shipments per year typically purchase their importer bond on a single transaction basis. These bonds, unlike Continuous Importer Bonds, are only good for single entries at a designated port. Furthermore, these bonds do not fulfill bonding requirements for consumption entries and ISF — additional filing is required with Customs. Single Transaction Bonds are usually in an amount not less than the total value plus duties, taxes, and fees which apply at a rate of $3 to $10 per thousand. $100 is the minimum value for this variety of Importer Bond.
