Does a Customs Bond Renewal Occur Every Year?

Many importers do not know the specifics about their Customs Bond Renewal, but here at TRG, we want to empower importers on this subject. Check out the blog post below and learn how customs bonds renew.

Will my bond automatically terminate with US Customs at the end of the year?

This is a common question among continuous Customs bondholders. The answer is the Customs Bond Renewal does not occur every year. A continuous Customs bond is in fact continuous. This bond will be on file with US Customs until a termination notice is put in place, usually by a Surety agency or Customs broker.

The reason this question is asked is that the Customs bond is a commodity item that requires payment to the Surety through which the bond is written. Most Sureties bill on an annual basis and this is why the importer believes the bond renews yearly. Trade Risk Guaranty, for example, has multi-year payment terms. An importer can purchase a continuous bond and not have to worry about a Customs Bond Renewal for 3 years. Instead of the importer paying once a year, they only have to pay every 3 years.