What is a U.S. Customs Bond?
A customs bond, or import bond, is a guarantee by a bond surety to U.S. Customs and Border Protection (CBP) that an importer will pay all duties, taxes and fees due, and that all activities performed under bond will obey any pertinent law, regulation, or instruction. A customs bond may be issued to cover a single transaction, or may be continuous. to cover all transactions over a 12-month period. If you have recurring imports of commercial goods over the course of a 12-month period, a continuous bond is the right solution.
Why do I need a U.S. Customs Bond?
In most cases, CBP requires a customs bond on import shipments with a value of $2500.00 or above that are entering the commerce of the United States. The importer is the party responsible for the customs transaction including all required payments to CBP. The customs bond is required as a protection to CBP should the importer fail to meet their financial or regulatory requirements. The customs bond also indemnifies the bond/surety company, allowing them to use any legal means to collect from the importer any monies that were paid to CBP on their behalf.
How do I apply for a U.S. Customs Bond?
Flexport will work with you to ensure that you apply for the right activity code, bond type, and bond amount. We make the process simple by coordinating with a surety agent and CBP on your behalf. For more information, we invite you to contact us.
What is the required bond amount?
For a continuous bond, the amount is calculated at 10% of the duties, taxes, and fees estimated to be owed to CBP on imports planned for the 12 months after the customs bond takes effect. The minimum continuous bond amount is $50,000. For a single transaction bond, the amount is equal to the total entered value of the merchandise plU.S. all duties, taxes, and fees. If subject to additional requirements due to visa/quota or other government agencies, the bond amount is equal to 3x the total entered value.
When will a U.S. Customs Bond renew?
Each continuous bond has an effective date that is selected at time of filing. A customs bond is valid for a 12-month “bond term” starting on its effective date. A customs bond will not automatically terminate with CBP at the end of the bond term.A continuous bond auto-renews annually, beginning a new 12-month period, unless terminated. This date is called the “anniversary date.”
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