Customs Bonds
What is a Customs Bond?
The U.S. Customs Service require customs bonds of importers to guarantee payment for imported shipments. If an importer does not post the required bond, their shipments will not clear U.S. Customs. There are numerous different U.S. Customs bond types. The two most common are Immediate Delivery Bonds and Consumption Entry Bonds.
There are two types of Customs Bonds: the Single Transaction Bond (Single Entry Bond or SEB) and the Continuous Bond. As the name implies, the Single Entry Bond guarantees a single import transaction. SEB bond amount requirements are decided by the limits of liability set by U.S. Customs. Continuous bonds are the second custom bond type. A Continuous Bond covers all transactions by an importer. Continuous bonds are typically 10% of yearly duties. The minimum amount permitted for a Continuous Bond is $50,000. If you plan on having multiple imports per year, it will likely save money to obtain a continuous bond.
Shipments under $2,000 may not require a bond at all. It is important to find out whether a bond is required as the first step.
Current Market: You may quickly find that there are not many agencies that know how or where to write U.S. Customs Bonds. They are not the typical commercial surety bonds that most agents are familiar writing. Therefore, a knowledgeable agent is extremely important. Rates are determined by the use and description of the imports. Rating codes are applied to the goods along with the bond rate. Some of the more common differences to be considered are whether they require FDA approval and whether they are to be stored in a warehouse or if they are only temporarily imported.
Bonding rates are determined by the description of the goods and/or the use of the goods. Rates and requirements vary for each rating code. For example, goods entered for temporary importation vs. goods being delivered to a bonded warehouse vs. goods subject to FDA approval, to name just a few of the classifications. To be sure you are paying the appropriate rate and hence, the lowest premium available for that specific classification, requires extensive knowledge in this area.Special Programs: Currently we have no specialty programs for Customs Bonds.
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