Depending on the commodity, the value of the cargo, and the potential regulatory requirements from a myriad of government agencies (USDA, DOT, EPA, and CPSC to name a few), your bond type (think price and coverage) will vary.
A Customs bond acts as the security to U.S. Customs and Border Protection (CBP) ensuring that the importer:
- Complies with all laws regulating the commodity
- Acts as a guarantee for payment of duties, taxes, and fees
The Activity Code 1 “Continuous” Import Bond is the most common bond type and includes $50,000 coverage for a 12-month period.
If your import product entry is subject to any of the following, bond providers may request additional information to support alternative bond type underwriting requirements:
- Antidumping and/or countervailing duties
- Commodities that require FDA compliance
- Past history of claims for that particular commodity
- A foreign importer of record
- Bond amount is above the minimum ($50,000)
Not sure what Customs bond you’ll need? Contact Us.
Our helpful team of eCommerce specialists will guide you to the right Customs bond for your business.