Do You Need A US Customs Surety Bond?by Samuel C. Customs Advisor
It becomes quite laborious for shippers outside the country to clear customs which is mandatory. Many importers from other countries still don’t understand it rightly how to clear goods through US customs and border protection (CBP). From the native port, until the vessel reaches the destination port, the process requires good efforts. Some traders prefer to work with freight forwarding companies and a very few hires individual brokers to reduce the workload of shipment clearing.CBP published a complete guide a long time ago for the International importers who are willing to do business in the USA on its official site.
It was just to educate newly involved merchants, although, most of them don’t read it as they prefer to go with pundits of it. Licensed customs brokers provide the service of customs surety bond and they are very knowledgeable in terms of CBP Form 301. It is a form needed to be filled by the importers to obtain 301 customs bond. Brokers do this work on behalf of their clients. Appointment of a freight forwarding agency prevents errors in documents that may cost heavily on later stages.
Customs Surety Bond
Customs surety bond is an integral part of the importing process to the US. Without sufficient bonds, it is impossible to enter any kind of property into this country by any means. There are different types of activity codes set by the CBP for different bonds in which activity code 1 is very common. Brokers help merchandisers to bring the goods securely with 301 customs bond.
There are two types of bond used very frequently – Single Transaction Bond and Customs Bond. The continuous customs bond is normally used when one wants to import commodities frequently to the US in a year. For midsized merchants who wish to do importation once in a year, they apply for single entry bonds as it is valid for the only transaction.
Cost of Bonds
CBP has made customs surety bond mandatory for all imports of goods with a commercial value of over $2500. It is kind of an agreement involving three parties - obligee (CBP), principal (owner/importer/responsible carrier of shipment), and surety company.If you need a continuous customs bond, the amount must be the larger of $50,000 or 10% of the total duties, taxes, and fees that you paid in the previous 12 month period. You would only need to pay 1-15% of the required bond amount.
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Created on Mar 15th 2019 05:24. Viewed 306 times.