Importance of Customs Bond in US Customs Clearanceby Samuel C. Customs Advisor
Ocean freight forwarding is wide and popular around the world. Trading intellectuals always have a lot to say about US customs clearance. The big ocean vessels have been in use for commercial trading for decades. There was a time when it considered the most dangerous medium of correspondence as it was crowded by pirates and filibusters. At the current time, the transportation of goods through ocean vehicles is reckoned safe and reliable. And this method of shipping is constantly growing with changes in technique, technology, and procedure.
Importers/exporters often stuck to that same point where they wonder about hassles of clearance at different parts of the US. The process changes in no time without any reminder or notice. Unfortunately, if you’re new in the shipping industry, you might be lacking great information. Customs bond is extremely important when it comes to importing goods from other countries to the United States.
The government of the United States and Customs Border Protection (CBP) are responsible for what type of stocks are coming in the country and how carriers pay their duties and follow rules. Customs bond is a simple term and is like insurance coverage for duties and taxes levied on the importing commodities.
It is also known as 301 customs bond or surety documents. The bondholder (principal/importer/owner of goods) is responsible to pay duties at the right time and prove its financial capabilities to the CBP. If the shipper fails to pay them, the agency will be able to recover reimbursement from the insurance company that is equal to the whole bond amount of $50,000 or above as per the bond type.
So if the commercial value of your cargo is exceeding $2,500 or in case your importing items are subjected to other government agencies like FDA or EPA, you should obtain either continuous customs bond or single entry bond.
The advantage of continuous customs bond is that it’s valid for 12 month period. A company or individual can import as many cargos during this period. With a single transaction bond, it can transfer goods for only one time in a year. There can be a difference in the applying procedure of 301 customs bond and single entry surety bonds.
Most international merchandisers don’t have much knowledge about what happens after the departure of their property through ocean vessel how it clears customs. During the course of the transaction of goods from one destination to another, a freight forwarder’s role is vital.
The job of licensed customs brokers and international freight forwarding companies is to make the process soft and quick. This means they carry all the important documents and information with them to encounter any checking or inspection at the destination port.They possess purchase order, invoice history, inventories of property, certificate of origin and all other crucial documents. As an importer, you can obtain customs bond from brokers or insurance agencies which deals in the same field. They can assist you with technical processing and paperwork.
Created on Mar 26th 2019 01:30. Viewed 423 times.