Customs Bonds 101 - Activity Codes 2 & 3

Activity Code 2 – Custodian of Bonded Merchandise Bond

Custodian of Bonded Merchandise Bond (C2) covers the activities of bonded merchandise warehouses, carriers, cartmen, and container stations (Includes bonded carriers, freight forwarders, cartmen and lightermen, all classes of a warehouse, and container station operators). All of these entities and personnel are responsible in the course of their activities for merchandise which has not yet been entered into the commerce of the United States. Such goods are referred to as being in-bond, on which duties are still due. The minimum bond size is $25,000.

Activity Code 3 – International Carrier Bond

Under an International Carrier Bond (C3), the operator is to properly manifest all goods and passengers they carry, pay for the overtime services of Customs officers, and comply with all regulations related to the clearance of their vehicles. The minimum size of this bond is $25,000.

While Instruments of International Traffic (C3A) allows containers, lift vans, cargo vans, shipping tanks, skids, pallets, caulk boards, and cores for textile fabrics arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic to forgo the requirement of customs clearance. The minimum bond size is $20,000.

Although these types of Customs bonds are not very common, they are still regularly used by several importers. Knowing about their specific uses will assist you when choosing which type you need to best fit your practices. Another shout out to George Dickson, who composed this engaging eBook series for the benefit of the people.