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customs bonds

Customs Bonds: An Overview Why it is Required for Importing

 

Customs Bonds are legal financial guarantees to U.S. Customs and Border Protection (CBP) for your import shipment to ensure all duties, taxes and fees are paid. In addition if in the event any wrong doing is uncovered, any penalties which may be issued towards the importer are also issued against the bond. The importer bears the primary responsibility of meeting all the financial obligations for the shipment. If in the case the importer defaults, the surety company can take legal action to recover any losses.  

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  • Required for importing

  • Guarantees U.S. Customs will be paid all duty, taxes, fees and penalties against the shipment

  • Importer is liable to pay all fees against the bond, Surety can take legal action if importer fails to pay

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Types of Bond

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There are two main types of customs bonds. The first type is called Single Transaction Bond and only covers one shipment filing. The other type is called a Continuous Bond or Annual Bond which can be used for all shipments within a year. 

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For new importers with low shipment volume, the combination of the Single ISF Bond and Single Transaction Bond is recommended and most often used. Single bonds can be considered pay as you go for each shipment. For large businesses or importers with high import volume, the Continuous Bond is used to cover both the ISF and clearance bond for unlimited amount of imports within a 365 day basis from date of issue. Continuous Bonds cost more to obtain than Single Entry Bonds and can help offer cost savings in the long run with increased shipments.  

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  • Single Transaction Bond - covers only a single shipment entry. If the goods are entering the US by ocean vessel, an additional ISF-D Bond is required for Single Transaction Bonds. For air-shipments, ISF-D Bond is not required.

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  • Continuous Bond - most commonly used for frequent Importers and is good up to a year. If you plan on importing more than 2-3 times a year, this annual type is recommended for a more efficient customs clearance process and save on costs.

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Do I need to get the Customs Bond?

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There are 3 main categories in which you will need a bond for your shipment. â€‹

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  • Commercial goods valued over $2,500 

  • If your goods are also subject to other U.S. Government Agency clearance besides CBP. Such as FDA for food, cosmetics, etc.., CPSC for toys, USDA for wood and agricultural products, NHTSA & EPA for vehicle imports. 

  • Goods subject to China additional tariff or any special trade agreements between nations.

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Shipments that do not require customs bond are commonly personal household goods for people moving back into the U.S. which they already own the goods for a long period of time, also shipments below $2,500 which are non commercial and do not fall under other government agency clearance or special nation clauses.  

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When do I buy the customs bond. 

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To purchase the customs bond for your shipment. First you will need to decide whether you will be using the Single Transaction Bond for one use only, or the Continuous Annual Bond Option. For the first option single bond, you will need to obtain the ISF Single Bond which the customs broker will obtain for you at the same time of the ISF Filing. Later when it comes time to do the second filing which is the entry filing. A separate single clearance bond the broker will also obtain at the same time clearance filing is done. For the second option for the Continuous Bond, this must be purchased ahead of time before any filing to U.S. Customs is done as this is a continual bond that needs to be approved prior to its use by CBP.

 

  • Single Transaction Bond - for each shipment two separate single bonds are required. The ISF Bond  and Entry Bond for clearance. The customs broker will obtain it at the same time of the filings. No need to purchase in advance. 

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  • Continuous Bond - purchased ahead of time before shipment departs overseas. Must be approved by CBP and active prior to its use for ISF and clearance filings. 

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What is the cost?

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The cost of customs bonds will vary according to where you make the purchase. Each customs broker or import agent will have it's own rate structure do to the surety contact they have in place and pricing to their business operations. The cost structure of our customs bonds are listed below. 

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  • Single ISF Bond - $55

  • Single Entry Clearance Bond - $60 for shipments less than 5K in value. $75 for shipments from 5-10K in value.

  • Continuous Annual Bond - $250 plus $50 processing fee. 

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How do I obtain?

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Contact our staff here at All Cleared Customs Brokerage to assist you with obtaining the customs bond you would like for your shipment. Give us a call at 718-269-7011 or to use our Active Contact Form to start.

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FAQ links U.S. Customs:

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