Why Is Customs Bonds And OTI Bonds Needed?

Posted by Cbicustom on January 11th, 2019

The commercial importers are often needed to know about customs bonds SC and OTI bonds. The certain urge from both the parties’ importers and international freight forwarders are always there to get more information on these two terms. It is because the United State government has set a number of regulations, to trade or import things into the country.

The two US agencies – U.S. Customs and Border Protection (CBP) and Federal Maritime Commission (FMC) was formed in order to maintain successful and safe importation of goods through the ocean and other mediums.

Customs Bonds

The importance of customs bonds SC can be measured by the amount of checking CBP officers make at different seaports of the US. This border enforcement agency helps importers in ensuring that their shipment is not suspicious and does not contain any exterminatory commodities.

Under activity code-1, the importers are required to possess customs bonds. There are two main types of bonds single entry bonds and continuous customs bonds. It is to ensure the timely importation without any fraudulent activities such as avoiding the duties, fees, and taxes.

One can acquire these bonds from licensed customs broker. They will help you in determining the price and what would be the best for you among these two forms.

What Are OTI Bonds?

The International Freight Forwarders (IFF) and Non-Vessel Operating Common Carrier (NVOCC) are encouraged by the FMC to become licensed Ocean Transportation Intermediary (OTI). After that procedure, they can originate their cargos from foreign locations to be destined into the United States. Then after, they will have to obtain OTI Bonds SC which acts as surety bonds to guarantee the financial responsibilities of the ongoing merchandise.

It is a legal document that strengthens the relationship between traders and carriers. It clearly declares the value of cargo and taxes applicable to the merchandise. It emphasizes them to the business in compliance with all standard laws and regulations. After an assessment of the status of goods, an insurance company can provide OTI Bonds SC. It should be signed by the principal, the surety and government authority such as power of attorney. It gives it sufficient authentication.

The price range can be different for IFFs and NVOCCs and it should not be less than ,000 in any case. In the end, the main purpose of customs bonds process is to protect the land and its people from unrequired hazardous material coming from abroad. In case any party fails to pay the levied amount of taxes and duties, the FMC would be able to receive the compensation from the guilty party.

For secure entry of your property to the desired place, make sure you meet the right company for Customs Bonds CA.