What Is A Customs Bond?
A customs bond is a contract made between three parties, the U.S. Customs and Border Protection (CBP), the importer, and the surety company. An importer will take out a bond from a surety company, who guarantees the CBP will be paid imported duty, taxes, and fees.
When Do I Need One?
You will need a customs bond if you are importing goods valued at over $2,500. In addition, you will need a bond if you are transporting goods between bonded warehouses in the United States.
Where Can I Obtain A Customs Bond?
The most direct way to get and file a bond is directly on the CBP’s customs bond website. Alternatively, you can work with an experienced shipping and import company like Asiana USA to handle all your paperwork, as well as your annual duty, taxes, and fees due.
What is a Single Entry Bond?
Depending on your business and its purposes, there are two main types of bonds. A single entry bond is transactional, and it only valid for one shipment. This is good if you do not plan on making many shipments. Even if you make only a few, in the long run, a continuous bond may still be more cost-effective.
What is a Continuous Bond?
A continuous bond is valid for a 12-month period, and much more cost-effective if you make regular shipments. Most importers use this option, often multiple bonds over many years.
Why Are Some Customs Bonds Declared Insufficient?
A customs bond is deemed insufficient if the bond is calculated lower than the actual determined value of duties, taxes, and fees. For example, a company will take out a bond and calculate 10% of its imported duty fees. If CBP determines the value of goods to be higher, your annual duty will be higher than the 10% originally bonded. In this case, the bond is rendered insufficient.
Other possible reasons for a bond to be declared insufficient are an invalid address, outstanding debt, failure to comply, or missing paperwork.
How Do I Remedy Insufficient Customs Bonds?
If your bond is deemed insufficient, you will have to terminate it and issue a new one. This process takes at least 15 days.
How Do I Avoid Insufficient Customs Bonds?
Make sure your information is correct and up to date. Post the correct bond amount to make sure that the CBP revenue division values your annual duty correctly. Monitor and address any issues with your bond immediately to avoid delays, extra fees, and non-receipt of goods.
If this is not remedied, your goods may not be released to you, your other bonds may become insufficient, or you may be voided as an importer.
Depending on your business and how often you need to import items, a continuous customs bond may be the right solution for you. While a single entry bond may suit the occasional importer, it often proves to be cost-efficient to procure a continuous bond.
It is important to make sure that you issue a bond for the right amount to avoid penalties, delays, and any other issues with your imports. There can be a lot of paperwork and upkeep involved, and you may benefit greatly from working with a shipping and logistics company with experience.
Asiana USA can handle your customs bonds, import duties, and help you stay up to date with any changes in international or US regulations.
Call Asiana USA at 855-500-1808 today to see how you can streamline your import and customs processes.