Most importers know they have a continuous customs bond on file in order to bring goods into the U.S. However, some are not quite sure why they need the customs bond, what type of customs bond they have on file and what they pay for their customs bond.
All customs bonds are financial guarantees between 3 parties: the Insurance/Surety company issuing the bond, the Principal (who is required to file the bond), and Customs & Border Protection (CBP). The U.S. Customs bond guarantees CBP that if they cannot collect monies due from the Principal they can seek remedy, up to the bond amount, from the Insurance/Surety Company. It also indemnifies the Insurance/Surety company, allowing them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal´s behalf.
What type of Customs Bond do I need?
There are many types of customs bonds required by Customs & Border Protection (CBP) for various reasons. The most common types issued are: Import Bond, Foreign Trade Zone Bond, Drawback Bond, Custodian of Bonded Merchandise, and International Carrier Bond.
What makes TRG so different?
In the past, the most common practice for an importer was to purchase their U.S. Customs bond through their broker. Their broker would purchase the bond on the importer’s behalf from the surety and then turn around and re-sell the bond to the importer at an increased rate. Newer business models have been adopted over the past 20 years allowing the importer direct access to the surety and the savings that come with cutting out the middle man.
Are you using single entry bonds? If you are purchasing single entry bonds to clear your goods, take a look at what you paying annually. Continuous Customs bonds are more economical in most cases. Save money and purchase direct
Watch the following video to learn the basics of U.S. Customs Import Bonds and if your business needs one.
Did you like that video? Check out the next video in the series on the Difference Between Single and Continuous Customs Bonds.
