How Does Continuous Customs Bond operate in Importing?

by Samuel C. Customs Advisor

Importing goods by ship by sea involves many duties for importers. This is why they have to organize everything just before the departure of their products. Sea transport is a cheaper and more practical method of transporting goods in large quantities. You should, therefore, be aware of the importance of customs bond if you have chosen to import by sea. Shipment from other countries to the United States must go through customs. The procedure is quite complicated and new importers are always involved.

There are specialized International Freight Forwarding (IFF) companies that help in making the process easy. Customs bond is available from authorized customs agents and the FFI always maintains good relations with professional agents who have been active in the sector for several years.

Customs Bond

The customs Bond is an agreement between three parties, the importer, the CBP, and the insurance company/broker. This is to ensure that the current transport director can pay all fees, taxes, and charges collected on the load. This means that the importer complies with the specific rules and regulations of the customs and border protection agency.

Type of Bonds

There are usually two types of bonds that shippers often use: the Single Entry Bond and Continuous Customs Bond. A broker can determine which type of bond is ideal for the importer and can handle customs duties on behalf of the trader. Importers rarely use bonds with a single transaction, because they prefer continuous customs bonds. The revolving customs bonds actually cover all oceanic activities that it carries out over a period of one year.

Costs

When the commercial value of the goods exceeds $ 2,500, the customs authorities require carriers to obtain “301 customs bonds”. Calculating the total number of bonds is not easy and depends on various factors, such as the purchased bonds. In the case of an continuous bond, you must purchase at least $ 50,000 or 10% of the taxes and fees from the previous year. Normally you would have to pay around $ 450 and $ 500 a year for this type of bond.

CBP is responsible for detecting fraudulent activity in the shipping process and reserves the right to arrest any ship if it suspects that something is wrong at any stage of the process. It is illegal and almost impossible to ship goods without a 301 customs bond. To get a voucher, you must send the application form online at the official CBP website or call one of the experts (brokers) in this area.