Customs Bonds (also known as Surety Bonds) are
required by the U.S. Customs Service
(Title 19 USC, section 1623) as a means to ensure that importers
guarantee payment in the event that liquidated damages are assessed
against shipments imported into the country. A bond is intended to
protect the U.S. government in the event the importer cannot or will
not fulfill their obligation to pay monies due.
The writing of a Customs Bond is a very important part of the
import transaction. If the Customs Bond is not properly prepared and
does not meet certain requirements, you, as the importer of record,
may be faced with serious problems. Without a properly executed
bond, your shipment will not clear U.S. Customs.
There are two basic types of Customs Bonds.
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The first is a Single Transaction Bond (also known as a Single Entry
Bond or SEB), which covers a single import transaction at one port
of entry. The total bond amount is determined by the type of bond
needed, as well as the limit of liability required by U.S. Customs.
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The second type of bond is a Continuous Bond, which covers all
entries made by an importer at all U.S. ports of entry. The most
common amount for a Continuous Bond is $50,000.00, which is also the
least amount allowable by U.S. Customs. The amount of a Continuous
Bond is generally 10% of the importer’s annual estimated duties for
the next calendar year and is good for one complete year.
Why a Shapiro Customs Bond?
Whether your volume suggests a Continuous Bond or a Single Entry
Bond, not all are created equal. Customs does not set the cost of
your bond; the insurance carrier sets it. By purchasing a Shapiro
Customs Bond, we are able to negotiate highly competitive rates for
you as well as provide you with assurance that it is the appropriate
type of bond at the appropriate rate. Please contact our Compliance
Team at
compliance@shapiro.com to ensure your bond needs are being
properly met.
|
Type of Bond |
Bond Amount Required By U.S. Customs |
| Basic Single Entry (General Goods) |
Invoice value of goods plus Customs
duty/taxes/fees |
| Quota or Visa Entries |
Three times the invoiced value of the
goods |
| Automobiles (Non-conforming) |
Three times the invoiced value of the
goods |
| Entries Requiring Other Federal
Regulatory Compliance |
Three times the invoiced value of the
goods |
| Temporary Importation |
Two times the estimated duty |
| Goods unconditionally Free of Duties |
10% of the invoiced value |
| Anti-Dumping & Countervailing Duties |
Determined by U.S. Customs |
|
The bond amount required by U.S. Customs may be subject
to change by Customs directive
or may vary from port to port at the discretion of the
District Director of Customs |
Please contact our Compliance Team at
compliance@shapiro.com for more information about our Customs
Bond Services.
