Why Customs Bonds are Important for Importing in the US?by Samuel C. Customs Advisor
For companies and businessmen that ship frequently for commercial purposes, the process of importation of goods in the US is never easy. Receiving merchandise from foreign countries through ocean vessels is a stressful process as the rules, regulations, and tariffs change very frequently. Anyone who wants to import from other countries into the US is required to purchase an important customs bond.
Having a customs surety bond is necessary as well as important to ensure smooth trades between the two nations. It is kind of a contract to guarantee that specific obligations will be fulfilled by the importer. In case, the importer fails to adhere to certain obligations or breaks federal rules of customs and border protection, the authorized agency CBP will be able to collect all impending monies, taxes, duties, fees along with the penalty.
When importing commercial goods that are valued above $2,500, the merchants are required to purchase customs bond. It doesn’t matter what medium is used to bring the foreign goods into the US, whether it is by airplane or ocean ships, there are certain types of bonds you need to obtain.
Some different documents and bonds are also required whenever merchandise subjected to other agency’s requirements is being shipped. New importers are often confused when it comes to a customs surety bond. These bonds simply act as an insurance policy for financial securities and other obligations. However, they are not like other insurance coverage e.g. bike or car insurance. This insurance protects the US treasury and ensures that the compliance any rules or regulations pertaining to shipment will be followed by the importer (principal). If the duties and taxes are not paid, the goods can be detained by the custom clearance officers at the port and then it may take several days to be cleared upon the request.
There are commonly two types of bonds, Single Entry Bond and Continuous Customs Bond. The goods that are subjected to the requirement of other agencies than CBP like foods, chemicals, and firearms may require additional documents. Other federal agencies are the Food and Drug Administration (FDA), Environmental Protection Agency (EPA), and others.A single entry bond is valid only for a single shipment made within a year. While a continuous customs bond is valid for multiple shipments during the twelve-month period. A continuous bond automatically renews after one year by the same date it was issued. A licensed customs broker can assist you in calculating bond amount according to the type of merchandise and help you in obtaining a 301 customs bond.
Created on Jul 30th 2019 03:34. Viewed 147 times.