Customs Bonds are a core aspect of global trading. The U.S. Customs and Border Protection (CBP) requires a valid Customs Bond to be in place to import commercial goods transported via all means of transport valued at over $2,500, or over $250 for Chinese goods. Importers may also need a Customs Bond for lower value shipments if the goods are subject to government agency obligations. Without the Bond, the CBP will not allow your merchandise to enter the country.
Additionally, Customs Bonds help importers fulfill requirements – such as import fees, duties, taxes, or other customs activities. They also prevent delays in customs clearance and avoid CBP fines. Bonds are a financial contract between the CBP (the Obligee), Importer of Record (IOR/Principal/Importer), and the Surety (insurance company hired by the IOR). They ensure that all involved meet the CBP’s fiscal requirements. If the Principal cannot fulfill his/her obligations, the responsibility falls to the Surety.
Different Customs Bonds
There are two main types of Customs Bond – Single Entry and Continuous Bonds. The choice depends on how often one intends to import merchandise into the U.S. A Continuous Bond covers all shipments over an entire year. This Bond also handles valuable shipments arriving from several ports of entry.
A Single-Entry Bond is for one shipment only. A Continuous Bond provides regular import businesses with the most ROI. However, it is exhausting and time-consuming to have to go through meeting bond requirements for every import. So, once filed with the CBP, the continuous Bond stays on file until it is terminated. Another benefit is that it also covers buying an ISF bond for ocean imports.
After receiving the first customs bond, it has to be renewed annually on the same date it was started. The renewal process lets the surety and importer review the Bond and determine if they should make adjustments.
Digital Solutions
Digital technology helps businesses in all industries smoothen and accelerate their processes. This means saving time and money and increasing ROI. For importers, this is very important. Companies such as eezyimport offer an easy-to-use online customs clearance solution for importers to navigate this challenging arena independently, thereby cuttings costs.
The eezyimport online portal allows importers to become self-filers easily. By eliminating agents, import costs are lower. eezyimport also offers an effective DIY self-filing module (ISF or Entry Filing by yourself) or a DIY Broker module. In addition, the platform provides competitively priced Continuous Customs Bonds and Single-Entry Bonds. Thus, the company helps businesses by making the import procedure cost-effective and straightforward!
Get in touch with eezyimport to discuss how we can accelerate your success!