4 Reasons Why Importers Require To Obtain Customs Surety Bond

by Samuel C. Customs Advisor

If you are thinking to import into the United States for the first time, you should contemplate the importance of customs surety bond. It’s likely that you heard the term for the very first time or maybe already known to it, well, you should still need to know the reasons behind obtaining bonds before importing. You can only bring your shipment into this foreign country if you carry sufficient bonds.

Let's see what all the fuss is about. Why is Customs Bond needed? Customs bond is similar to an insurance policy that protects the duties, taxes or any fines on imported commodities.

The Federal Government of the US constituted the Customs and Border Protection (CBP) agency a decade ago to ensure that all duties and taxes will be collected fairly on anything imported to the conclusive location. Here are the four key reasons why you need a bond for importing.

1. Relationship between CBP & Importers

As mentioned in the extensive guide for commercial importers by CBP, the MOD Act 1993 was established with the primary purpose of improving trade relationships between the American authorized CBP and importers. According to the act, now its importer’s responsibility to calculate his/her importation’s details (value, product classification, rate of duty, bond amount, etc.) and submit it to the CBP accurately and within the due time. So customs surety bond help in making the operation smooth and fast legally.

2. Protecting Country’s Interest and Treasury

According to U.S. Customs and Border Protection (CBP) regulations, an import bond’s the purpose is to protect the interest of the U.S. and to ensure compliance with any laws, regulations, or instructions for duties paid when importing goods. In case of infringement of laws, fault, bankruptcy or the closure of a business, customs the bond ensures that the CBP could recover due duties, fines, and taxes.

3. It’s Mandatory

It has been made mandatory by the CBP to obtain Customs bond in order to clear customs and entries and different parts of the US. An importer can take help of an insurance organization or from a customs broker/firm to possess related bond easily. Bonds are required on commercial goods that are valued over $2,500. The trader can contact a broker to apply for either a continuous import bond or a single entry bond. You can visit the official site of CBP to read more information on how you can apply online.

4. Special Commodities

If you’re planning to transport commodities that come under special laws enforced by CBP, you may require investing more funds and time to clear the customs. The bond value is usually higher for goods that are subject to Participating Government Agencies (PGAs) such as foods, firearms, alcohol, animals, etc. But if you follow all the regulations and acquire potential continuous import bond and other documents then this process is not even that mount.