Understanding Custom Bonds
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
Types of Bonds
- Single Transaction Bond
Also known as Single Entry Bond, this SEB covers a single Customs entry.
- Continous Bond
This bond covers all entries made by an importer at all U.S. ports of entry.
The Activity Code 1 “Continuous” Import Bond is the most common bond type and includes $50,000 coverage for a 12-month period.
Learn more about each of these.
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.
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