What is a Customs Bond?

​

Simply put, a Customs Bond is a form of insurance. It involves three parties: Customs, principal (i.e. an importer of record), and a surety company. The bond is issued by a surety company and its main purpose is to guarantee that all the payment of import duties, taxes, and fees are paid to Customs by the principle. So if for any reason the importer is unable or unwilling to pay the duty, or is assessed a penalty or additional duty, Customs will demand payment from the surety company, then the surety company will collect that payment from the principal. 

​

​

Why do I need a Customs Bond?

​

In order to bring merchandise into the Customs territory of the Untied States, an importer must post a valid Customs Bond. This is a requirement by the Customs & Border Protection. It is important to note that even if your shipment is duty free, a bond is still required by CBP for importation. 

​

​

What types of bond are there?

​

Single Entry Bond: also known as "single transaction bond", this type of bond is on a shipment by shipment basis. It is valid for one transaction through one port only and the bond amount depends on the value of the cargo plus duty and fees and whether the shipment is subject to any PGA regulations.

​

Continuous Bond: also known as "annual bond", this type of bond covers all shipments through any port of the US for a period of one year from the date of issue. A Continuous Bond is 10% of duties, taxes, and fees paid for the one year period. The minimum amount for a continuous bond is $50K and it is sufficient to cover up to $500K worth of duties, taxes, and fees. Most importers prefer getting a Continuous Bond for its convenience and cost saving benefits. 

​

How can I get a Customs bond?

​

JK SolutionPro as a Customs Broker can assist our clients in obtaining both Continuous Bond and Single Entry Bond.