How to Apply for Customs Surety Bond?

Posted by Cbicustom on May 18th, 2019

As a customer, before purchasing anything the first thing comes in mind is the price of a particular product. We want to ensure that we are not being overcharged by the merchandiser. Cost is an important factor in any dealing. But, there are several other things to consider when it comes to a customs surety bond. It includes the course of action, financial strength, insurance company, and other additional requirements for renewal and refund. The application procedure of customs bond NJ does not entail many efforts until you hire experienced brokers to work on behalf of you.

The service provider can be of poor customer service so make sure you hire an associate agency rather than dummy ones. When applying for continuous customs bond make sure you’re working with a friendly and supportive bond company. If you are planning to import commercial merchandise in the United States, it is important to know the ever-changing rules and regulations which is not an easy task to do while you are busy in business.

The U.S. Customs and Border Protection (CBP) have developed quite an intricate set of laws and it can be extricated only by professionals. A customs bond acts as a contract to guarantee that the federal government will receive payment for all duties, taxes, and fees. It is like a product and should not be taken as coverage as it only secures the obligee.

If you’re importing goods valued over ,500 into the U.S. for commercial purposes you need to submit a sufficient customs surety bond. In another case, if you’re importing commodities like firearms, animals, or foods, these are restricted and lie under the administration of other federal agencies such as FDA.

There are typically two types of bonds prevalent in importing and exporting and that is continuous customs bond NY and single entry bonds. If you apply for a continuous bond, the amount must be the larger of ,000 or 10% of the total duties, taxes, and fees that you paid in the previous 12 month period. The cost of bond usually based on the small percentage of required bond amount (you can but a continuous bond in between 0 and 0).

Applying for Customs Surety Bond

In order to obtain a customs surety bond, you have to find out a licensed surety agency. They will help you in filling the CBP Form 301 in which you need fill type of bond you need, merchandise description, product details, business entity, and the number of duties/taxes paid to the CBP the previous year. Then your signed bond shall be filed to CBP and it usually takes around 10 days.

CBP can make a claim against principal importer whenever it finds the bond insufficient, incorrect, or not satisfied with shipment. The surety company then has to pay reimbursement on behalf of the carrier or importer. Surety agencies can help you with appropriate information on bonds and can make this process easy for you.