How Do Customs Bonds and 301 Customs Bond Help Importers?

by Samuel C. Customs Advisor

Since the Government of U.S. had become more serious about the things entering its territory the importers are also facing few difficulties. The trading from foreign locations to the United States is subjected to many cases in which you might require to have customs bonds.

Due to strict rules and regulations set by Customs and Border Protection (CBP) and other local state authorities, it has become a quite staggering experience to handle the documentation process and customs entries.

It is vital to know everything about customs bond and 301 customs bond especially for those who are new to this niche. To ensure secure delivery of goods at the desired land and avoid any delay, this article is worth to read.

What is 301 Customs Bond?

301 Customs Bond is a kind of customs surety bond which acts as proof and guarantees that the CBP (obligee) would be able to collect all fees, duties, taxes, and monies levied on the commodities, in case, the principal (importer) or broker (insurance company) fails to pay.

It is the duty of insurance organization to provide proper evidence to CBP that the principal is capable of reimbursement, in case of violation of rules. At different ports in the U.S., the authorized officers check important customs bonds and after deep deliberation, they show their consent for clearance. This happens mostly with importers which are actively supplying hazardous goods like firearms and weapons.

The reason why we refer it as continuous import bond is it is acquired by filling CBP Form 301. You can either apply for Single Entry Transaction Bond which is for one time merchandise in a whole year or for Continuous Customs Bonds, the crucial one.

Continuous Customs Bonds and Help of Importers

Continuous Customs Bonds is for more than one time merchandise of goods in a single calendar. When the commercial value of cargo exceeds $2,500, it becomes mandatory for a foreign merchant to possess these customs bond. The total worth of this bond is never less than $50,000 and increases as per the quantity and type of things you are sending to the US. However, you don’t need to pay this amount in advance but just a few percentages of it that you can easily afford as an enterprise.

It helps importers in reducing the load of paperwork and prevents the struggle of latency. There are many other benefits, a true customs broker can enlist here. You can contact one of them easily by surfing a few websites on the web. They will assist you for further details on customs surety bond. Make sure you contact a licensed and certified company to work for you.