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WHAT IS A CUSTOMS BOND?

A customs surety bond is a contract used for guaranteeing that a specific obligation will be fulfilled between customs and an importer for any given import transaction. The main purpose of a customs bond is to guarantee the payment of import duties and taxes.

A customs bond is required on all commercial imports entering the United States. Your broker will be able to provide you with the necessary requirements and coverage that will best suit your needs. Your merchandise will not clear customs without a properly executed bond.

According to customs regulations, a surety bonds purpose is “to protect the revenue of the United States and to assure compliance with any pertinent law, regulation or instruction.” The importer agrees to the following conditions upon posting a bond:

1. Agreement to pay duties, taxes and charges in a timely manner.
2. Agreement to make or complete entry.
3. Agreement to produce documents and evidence of shipment.
4. Agreement to redeliver merchandise if requested.
5. Agreement to rectify a non-compliance with provision for admission.
6. Agreement to allow examination of merchandise.
7. Reimbursement and exoneration of the United States.
8. Compliance with special requirements on duty free entries.

DO ALL IMPORT TRANSACTIONS REQUIRE A BOND?

Any shipment valued over $2500.00 requires a bond. As with everything there are certain exceptions. We will be glad to assist you with your bond requirements.

ARE THERE DIFFERENT TYPES OF CUSTOMS BONDS?

There are many different types of bonds depending upon the quantity and type of transactions involved. The two most common bonds for clearing import shipments are the following:

Single entry bonds – can only be used once for a particular transaction.

Continuous bonds – can be used for an annual period, and cover all customs transactions within that year. They can be used at any port of entry. Continuous bonds can provide a considerable savings for an importer and can be written by Phil Patterson, Inc. for the convenience of the importer if requested.