May be written as either a single transaction or continuous bond.
The most common type of Customs Bond, also referred to as an import bond. An import bond is required on all commercial shipments of goods valued over $2,500 to lawfully enter the commerce of the United States. An import bond is also required on any shipment into the U.S. that is subject to other U.S. government agency requirements. For example, vehicles are subject to review by the Environmental Protection Agency and Department of Transportation and food products are subject to review by the Food and Drug Administration.
Import bonds may be written as single transaction or continuous:
A single transaction bond can only be used for one customs transaction.
A continuous bond is a self-renewing bond that covers all customs transactions through any port of entry.
May be written as either a single transaction or continuous bond.
When merchandise is imported into the United States and later exported, a principal may be entitled to a refund of most duties, taxes, and fees – referred to as a drawback claim. A drawback claimant may receive the refund granted before liquidation of the drawback claim. A Drawback Bond guarantees full repayment to CBP of overpaid drawback as determined by liquidation of the drawback claim.
Drawback bonds may be written as single transaction or continuous:
A single transaction bond can only be used for one customs transaction.
A continuous bond is a self-renewing bond that covers all customs transactions through any port of entry.
May be written as either a single transaction or continuous bond.
When merchandise is imported into the United States and later exported, a principal may be entitled to a refund of most duties, taxes, and fees – referred to as a drawback claim. A drawback claimant may receive the refund granted before liquidation of the drawback claim. A Drawback Bond guarantees full repayment to CBP of overpaid drawback as determined by liquidation of the drawback claim.
Drawback bonds may be written as single transaction or continuous.
A single transaction bond can only be used for one customs transaction.
A continuous bond is a self-renewing bond that covers all customs transactions through any port of entry.
May be written as either a single transaction or continuous bond.
The continuous bond may also be written as a combination bond with the Activity Code 3a – Instruments of International Traffic bond.
This bond guarantees activities related to the entry or clearance of vessels, vehicles or aircraft from outside the United States, including any advance manifest filing requirements by carriers and NVOCCs. It is also used when a vessel repair entry is made. Commercial air carriers are required to have this bond to guarantee payment of passenger users fees collected on international commercial flights.
Marine Terminal Operators may fulfill Activity Code 17 bond requirements using this (continuous) bond.
May be written as a continuous bond only.
This bond guarantees the operation of a Foreign Trade Zone (FTZ) and guarantees FTZ operator will comply with CBP regulations for maintaining the FTZ. The FTZ is a designated area within the U.S. located in or near a CBP port of entry, but legally considered to be outside of customs territory for the purpose of tariff laws and entry procedures. FTZs are part of a duty deferral program and are subject to CBP jurisdiction. Generally, payment of duties and excise taxes on foreign merchandise admitted to a zone will be deferred until the goods are transferred from the zone to the customs territory for consumption.
An FTZ operator is required to secure a bond to assure compliance with Customs regulations. The minimum bond amount required by CBP is $50,000. However, the maximum amount is determined by each individual port director and therefore the limits may vary.
Roanoke is a long-time supporter of the National Association of Foreign Trade Zones and offers preferential pricing for surety bonds and insurance to their members.
If you are an ocean Freight Forwarder or Non-Vessel Operating Common Carrier (NVOCC) handling cargo destined to or from the United States, being licensed and bonded as an Ocean Transportation Intermediary (OTI) is a mandate. OTI Bonds warrant completing all contracts with shippers and carriers. NVOCC and Forwarder compliance with Federal Maritime Commission regulations protect and ensure the shipping public.
Although bonds do provide a level of asset protection, it is important to keep in mind that a bond is not insurance. The main difference being that a bond or surety is a guarantee sponsored by a third-party regarding the arena of international trade.
Acceptable proof of the carrier’s financial responsibility is underwritten by a surety company approved by the U.S. Department of Treasury and on their List of Approved Sureties.
Both the Freight Forwarder and NVOCC have set bond amounts. Concerning the Federal Maritime Commission (FMC) and U.S. Customs there are two basic classes of bonds required.
Freight Forwarder – required to obtain and carry a bond in the amount of $50,000 in addition to $10,000 for each additional operating location.
NVOCC – required to obtain and carry a bond in the amount of $75,000 in addition to $10, 000 for each additional operating location.
Outside the U.S. the bond the minimum requirement is $150,000.
U.S. Custom Bond
Importers are also required to post a cash equivalent or the bond itself with the U.S. Customs Service to ensure compliance of all laws and regulations pertaining to commercial goods brought into the country. Unlike OTI shipping bonds which protect the shipper and carriers, this bond protects the interest of the U.S. Commerce.