4 Things to Remember While Purchasing a Customs Surety Bondby Samuel C. Customs Advisor
There are so many documents and papers exchanged between customs, carriers, and shippers when they are processed for importing commodities in the US for commercial purposes. These documents are certainly overwhelming for someone who is new to the importing. It seems out of capability and brings stress while you actually attempt to understand the process. With plenty of freight forwarding companies and customs brokers available both offline and online, shippers are evidently believed in hiring them but most of them sign bad deals which cost heavily at a crucial time.
A customs surety bond ensures both importers and the U.S. Customs and Border Protection (CBP) that all import taxes, fees, and duties will be paid timely. It is kind of a legal agreement that ensures all required duties, taxes, and fees levied on the commercial goods being imported will be paid to the federal government. Customs bond is required by the CBP when goods valued at over $2,500 are imported and for goods that are subjected to regulations of other federal agencies such as FDA.
A customs bond is not coverage
Customs surety bond is not like insurance policies that you might already aware of e.g. bike and home insurance. It is technically an insurance content that is provided by licensed brokers, surety or insurance companies but it has different functions. It is an agreement between three parties – the bond owner (importer or principal), CBP, and the surety company. The agreement is conducted to guarantee financial obligations that needed to be fulfilled by the principal and does not cover any other liabilities.
It is mandatory
You need either Single Entry Bond or a Continuous Customs Bond for the customs clearance. Unless you don’t have any one of them, you can’t clear the goods. It is mandatory to document that is checked by the customs authorities at the port of entry.
Purchase it directly from a surety company or broker
Although you can purchase your bond through a licensed customs broker or freight forwarder, some surety agencies provide Customs surety bond directly to importers. This method is considered cost-effective.
Continuous customs bond does not terminate automatically after its expiry date instead it gets renewed. The broker or surety company issues a notice to the principal for renewal payment of the bond a few days earlier than the final date of bond suspension.
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Created on Aug 31st 2019 02:20. Viewed 277 times.