What Is The Importance of Bonds to Import and Export Goods?

If you are a maritime importer or exporter then you might probably hear about customs bonds. They are in effect for so many years, especially in United States. To import goods in US it has been made mandatory by the US Customs and Border Protection (CBP) to occupy a customs bonds.

Bonds have significant importance for shippers and carriers to allow their merchandise through ocean.  There are many types of 301 customs bond like Continuous Customs Bond, Single Entry Bonds and OTI Bonds. There is a series of reasons to know about customs surety bond if you associated with import and export business.

What is Customs Bond?

To get it easily, a 301 Customs Bond is a kind of insurance policy between the customs broker, importer and oblige (CBP). It is to ensure that the duties and taxes would be paid by the principal (importer) and if he fails to pay any mandatory expensed or do violation of regulations, the third party (broker) would be responsible for the amount of penalty.

Basically continuous import bond needed for importation in US and it helps CBP to make the safe import and export of goods in the country.

When do an Importer Need a Customs Bond?

If you are regular import merchandise of U.S, continuous import bond or continuous customs bond is required for government consent that you won’t infringe any rule and in case you can’t pay the duties and taxes the government would be able to recover compensation from insurance company.

For importers, a single entry bond is for one time importation in a year. While, if an importer wants to carry multiple imports through ocean vessels he has to acquire a continuous customs bond.

If you importing commodities with commercial value over $2,500 you must apply a CBP Form 301. CBP Form 301 is the form to be filled by agent to obtain a 301 customs bond.

What is an OTI Bond?

If you wish to legalize yourself to be an Ocean Transportation Intermediary (OTI) in US, it is necessary to have an OTI Bond. The Federal Maritime Commission asks for OTI Bonds to all International Freight Forwarders (IFFs) and non-vessel-operating common carriers (NVOCCs).

·         Freight Forwarders needs to carry an OTI Bond of $50,000.

·         NVOCCs need to carry an OTI Bond of $75,000.

The Importance

·         Bonds are important enough to clear your ship from all customs.

·         If you are a carrier of combustible material, weapons or medicines then pay high attention on your bonds and required papers. You would be strictly supervised.

·         301 Customs Bond are important for international carriers to transport cargo to USA from a foreign destination.

·         Customs Surety Bond ensures your good’s safety and successful shipping. If you deny filling CBP Form 301 for customs bond, it may result in late transportation of your property.

The technology and internet have made it easier for importers and exporters to get in touch with qualified customs brokers and freight forwarders. Brokers can send full quotation and details of every bond related to a particular task. Their connections and experience helps in paper work as well as successful shipment.