What’s the Difference Between Single Entry and Continuous Customs Bonds?
There are two different ways to purchase an importer bond. Trade Risk Guaranty goes over the difference between Single Entry Bonds and Continuous Customs Bonds.
During the process of importing into the United States, there is one piece of the puzzle that many importers don’t even realize is there. That piece is a U.S. Customs Bond. However, there are two ways an importer is able to purchase this bond; as a Continuous Customs Bond or as a Single Entry Bond. Which one is right for your business depends on your company’s importing practices throughout a period of a year.
Continuous Customs Bonds
Continuous Customs Bonds are normally obtained by importers who have 2 or more entries through several ports of entry during a given year. They can also be obtained by international carriers who frequently arrive and depart the Customs and Border Protection territory, and by custodians of merchandise who do business with CBP on a regular basis.
A Continuous Customs Bond has a term of one year and is automatically renewed each year. The bond on file is valid until it is terminated by one of the 3 parties on the bond; the surety, the principal, or CBP.
In the majority of case, Continuous Customs Bonds are more economical to the importer since you are able to make an unlimited amount of entries in a year under one bond. Therefore, unless you are only bringing in one shipment over the course of the year, the Continuous Customs Bond would be a more cost effective solution. This value is increased by the fact that a Continuous Bond also includes the bond required when you file the ISF for your shipment.
Single Entry Bond
The other option when importing into the United States is for an importer to obtain a Single Entry Bond for a single shipment. A Single Entry Bond only covers the entry or transaction for which it was written and it is filed at the specific port where the entry will be made. With this bond, you must purchase a new bond for each entry you make. If you import more than twice per year, you can easily see how Continuous Customs Bonds would save you money.
Customs Bonds From Trade Risk Guaranty
Here at Trade Risk Guaranty, we provide Continuous Customs Bonds directly to importers in order to provide the best price and level of service possible. By working with TRG, you gain another partner in your importing practices that has a vested interest in your bond. For a deeper look at who we are and what we do, watch the video below or contact us directly at 1-800-685-6082.