The Foreign Trade Zone Operator Bond applies to specific regions of the U.S. in regards to importing. Read the content below and learn how this bond works.
Foreign Trade Zone Operator Bonds are used regularly in the trade community, but not necessarily by importers. This bond is essentially a financial guaranty for the operators at specific sites in America which are established to facilitate international trade.
The Basics Foreign Trade Zone Operator Bond
Under this bond, any principal authorized to operate a Foreign Trade Zone (FTZ) or subzone, will agree to comply with laws and Customs regulations regarding merchandise. This bond is continuous and the minimum size is $50,000.
How Foreign Trade Zone Operator Bonds Work
Principal in charge of receipt, handling, and disposition of merchandise agrees to comply with the law and Customs Regulations and pay any accrued monies relating to merchandise entering or leaving an FTZ or subzone.
The Specifics of Foreign Trade Zone Operator Bonds
The bonded business agrees to pay any duties, taxes, and fees due on any merchandise properly admitted into the FTZ. They will also pay the compensation and expenses of any Customs officer as required by law or regulations. This also applies to goods which are missing or cannot be accounted for in the zone.
In addition, the principal agrees to comply with all Importer Security Filing requirements set forth by Customs and Border Protection in a timely manner, per regulations.
Under this bond, the principal also agrees to exonerate the United States and its officers from any risk, loss, or expense arising from their operation of the FTZ.
Definition of Foreign Trade Zone
An FTZ is a secured area under U.S. Customs supervision that is generally considered outside United States territory for commerce purposes. These areas are typically located in or near a U.S. Customs port of entry and fall under the authority of that port. FTZs can be found in all 50 states and Puerto Rico. Subzones are special purpose sites for use by one company for a limited purpose and are established adjunct to FTZs.
After reading this post, you know more about the basics of this bond and how it’s commonly used. Stay tuned to this blog for more matchless information on these types of policies.