{"id":2545,"date":"2015-09-11T17:10:12","date_gmt":"2015-09-11T17:10:12","guid":{"rendered":"http:\/\/traderiskguaranty.com\/trgpeak\/?p=2545"},"modified":"2021-07-15T10:48:27","modified_gmt":"2021-07-15T16:48:27","slug":"customs-bonds-101-drawback-bond-activity-code-1aactivity-code-1a","status":"publish","type":"post","link":"https:\/\/traderiskguaranty.com\/trgpeak\/customs-bonds-101-drawback-bond-activity-code-1aactivity-code-1a\/","title":{"rendered":"Customs Bonds 101 &#8211; An e-Book Series: Drawback Bond"},"content":{"rendered":"<h3>As part of the Customs Bonds 101 e-Book series, learn the basics of Drawback Bond, and determine if you need one.<\/h3>\n<h2>What is a Drawback Bond?<\/h2>\n<p>A <a href=\"https:\/\/traderiskguaranty.com\/customs-bonds\/#ac1a\" target=\"_blank\" rel=\"noopener\">Drawback Bond<\/a> is a U.S. Customs bond filed <a href=\"http:\/\/traderiskguaranty.com\/trgpeak\/customs-bonds-101-activity-codes-2-3\/\" target=\"_blank\" rel=\"noopener\">under code C1A<\/a>\u00a0which allows an importer to obtain a refund of 99% of the duties paid on their imported commodities. To be eligible for a refund an importer must provide proof the goods were exported out of the U.S. or were destroyed, after entering the country. This <a href=\"https:\/\/traderiskguaranty.com\/trgpeak\/video-calculate-customs-bond-size\/\" target=\"_blank\" rel=\"noopener\">bond size is calculated<\/a> by totaling the average of all estimated drawback claims within a 12 month period, and the minimum bond size is $5,000.<\/p>\n<h2>What is the difference between a temporary import and a drawback bond?<\/h2>\n<ul>\n<li><strong>Temporary Import \u2013<\/strong> this type of import occurs when a company uses the United States as a connection point for the\u00a0final destination of a shipment of goods. If an importer&#8217;s goods are shipped from China to a U.S. port and are then immediately shipped up to Canada via Rail, the standard C1 customs bond with the <a href=\"http:\/\/traderiskguaranty.com\/trgpeak\/customs-bonds-101-temporary-import-under-bond\/\" target=\"_blank\" rel=\"noopener\">Temporary Import under Bond<\/a> addition would be required. Typically, temporary imports must leave within a specific amount of time after reaching U.S. soil, as Customs thoroughly documents these practices.<\/li>\n<li><strong>Drawback bond \u2013<\/strong> these bonds are specifically designed to allow some goods to enter the U.S. and then partially or fully be reshipped elsewhere. For example, if an importer\u00a0brings in a container full of clothing then they ship it into their warehouse to be repackaged and sent elsewhere in the world, they would need a drawback bond. Customs will honor a 99.9% duty\/fee forgiveness for goods that leave the U.S. in this manner.<\/li>\n<\/ul>\n<p>Now that you know more about how a Drawback bond works, evaluate your <a href=\"https:\/\/traderiskguaranty.com\/trgpeak\/importers-need-to-know-about-these-warranties\/\" target=\"_blank\" rel=\"noopener\">importing practices<\/a> and determine if you need one. As always, we at TRG are proud to be your importing bond experts.\u00a0Thanks for reading this post about the Drawback Bond.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of the Customs Bonds 101 e-Book series, learn the basics of Drawback Bond, and determine if you need one. What is a Drawback Bond? A Drawback Bond is a U.S. Customs bond filed under code C1A\u00a0which allows an importer to obtain a refund of 99% of the duties paid on their imported commodities. [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":7760,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[4,584,39],"tags":[343,173,45,243],"_links":{"self":[{"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/posts\/2545"}],"collection":[{"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/comments?post=2545"}],"version-history":[{"count":27,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/posts\/2545\/revisions"}],"predecessor-version":[{"id":10477,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/posts\/2545\/revisions\/10477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/media\/7760"}],"wp:attachment":[{"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/media?parent=2545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/categories?post=2545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/traderiskguaranty.com\/trgpeak\/wp-json\/wp\/v2\/tags?post=2545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}