Importance of Customs Bond When Importing Into the USby Samuel C. Customs Advisor
Importing merchandise into the United States can be a nightmare for newbies. You probably have had listened to a lot of chant about the horrible duties and taxes being charged and seized goods due to insufficient documents. A customs bond is one of the important documents that importers require when they tend to import goods for commercial purposes. To avoid any crappy situation and delay in the process, you have to ensure that your goods are in compliance with the government rules and regulations.
Customs and Border Protection (CBP) is the main federal agency which is responsible for collecting duties and fees for all international trade transactions and enforcing the US regulations. Importers are required to meet with particular rules and regulations and have to possess a license when importing specific products such as food, animal, plants, medicines, and firearms. These items are subject to other federal agencies and importer needs to obtain a permit and other customs surety bond from respective agency.
A customs bond is a form of contract that guarantees financial obligations to the CBP. It is arranged between three parties, importer, CBP, and an insurance company or customs broker. The main purpose of this bond is to protect the US treasury. In an event when importer fails to pay duties, taxes, and fees or contravenes pertinent law or code of conduct, the CBP can collect monies and seek the total bond amount from the insurance agency.
In case customs officials find anything suspected, prohibited or illegal being shipped in the country they can confiscate the shipment. However, these are some bad consequences that can be avoided by ensuring compliance with rules and requirements.
A customs surety bond helps in keeping the import transaction safe and smooth. They are necessary when you’re importing merchandise that is valued above $2,500. The US customs clearances do examination and inspection of goods before releasing them. You can easily purchase a customs bond from a broker or freight forwarding company that is licensed and deals in preparing bonds.
It is important to determine the right type of bond. There are two types of bond, Single Entry Bond and Continuous Customs Bond. Single entry bonds cover only one shipment while a continuous customs bond covers all shipments carried during a period of one year. It is renewed automatically after every year if the payment is made to the surety company.
Even with a continuous bond, you’re required to pay additional customs clearance fee which is never included in the bond. To obtain the right type of customs bonds and know more information about them, you can contact a freight forwarding company or customs broker.
- Guest Post Service
Permanent Link | Do-Follow Backlinks | Costs as low as $0.5
- Ad Space Available - Rent it Now!
Created on Aug 10th 2019 02:33. Viewed 268 times.