A customs bond is a contract used to cover any potential duties, taxes, and fees that may accrue from importing merchandise into the United States from other countries. Without having a properly executed bond, merchandise cannot clear customs. This type of bond is usually required when imported merchandise being brought into the U.S. for commercial purposes is valued over $2,500, or if you meet other federal agency requirements, such as importing firearms or food).
Different Types of Customs Bonds
While there are many kinds of bonds depending on the amount and type of transactions that are involved, two of the most common bonds obtained for clearing import shipments include:
• Single Entry Bonds – Can only be used once for a specific location
• Continuous – Will cover all transactions for an entire year
To be allowed to clear your goods through the U.S. Customs and Border Protection (CBP), a “single entry” or “continuous bond” can be obtained through a resident U.S. surety company. Doing so will allow the broker’s bond to secure your transaction(s). The type of bond needed is usually determined by how often a company imports products. If you only import occasionally, the single entry bond will work for you, but if you frequently import through multiple ports of entry, the continuous bond is recommended.
Is it hard to obtain a Customs Bond?
To obtain a customs bond through IOA Bonds, you will need to complete a simple application. The cost is 1%, and approval usually takes 1-2 business days. Although filling out the form is easy, getting a customs bond can be tricky. In order to be approved, your application must be reviewed accurately to ensure there are no errors.
The single entry bond can be challenging to secure because it poses more of a significant risk to the surety since it is not seen as the principal’s primary business. Therefore, the continuous bond is more commonly suggested, particularly since it can be used for multiple transactions and different points of entry.
Let Us Help You with Your Bond Needs
At IOA Bonds, our licensed brokers have an in-depth knowledge surrounding U.S. Customs compliance. We will assess your entire import process and provide guidance on how to advance past any challenging customs transactions. For more information regarding customs bonds, please contact us today by calling 1-866-379-3151.