Your U.S. Customs Bond

Most importers know they have a continuousImport Bond
customs bond on file in order to bring goods into theForeign Trade Zone Bond
U.S. However, some are not quite sure why theyDrawback Bond
need the customs bond, what type of bond theyCustodian of Bonded Merchandise
have on file and what they pay for their customsInternational Carrier Bond
bond.In the past the most common practice for an
All Customs bonds are financial guarantees betweenimporter was to purchase their US Customs bond
3 parties: the Insurance/Surety company issuing thethrough their broker. Their broker would purchase the
bond, the Principal (who is required to file the bond),bond on the importer's behalf from the surety and
and Customs & Border Protection (CBP). Thethen turn around and re-sell the bond to the importer
U.S. Customs bond guarantees Customs &at an increased rate. Newer business models have
Border Protection that if they cannot collect moniesbeen adopted over the past 20 years allowing the
due from the Principal they can seek remedy, up toimporter direct access to the surety and the savings
the bond amount, from the Insurance/Suretythat come with cutting out the middle man.
Company. It also indemnifies the Insurance/ SuretyAre you using single entry bonds? If you are
company, allowing them to use any legal means topurchasing single entry bonds to clear your goods,
collect from the Principal any monies that were paidtake a look at what you paying annually. Continuous
to CBP on the Principal´s behalf.Customs bonds are more economical in most cases.
There are many types of customs bonds required bySave money purchase direct.
Customs & Border Protection (CBP) for variousSave money purchase direct.
reasons. The most common types issued are: