How Long Does It Take To Obtain A Customs Bond?

Posted by Cbicustom on September 24th, 2019

The United States is known as the world’s largest importer. Many companies and traders are involved in making the higher fortune by importing foreign merchandise and then passing out it to a local audience at higher prices. The case might not be as similar to you and you might be importing for any different purpose. Since the U.S. Customs and Border Protection has been founded by the government, it has become necessary for all shippers to comply with its latest laws and regulations. Customs bond is an important part of any import designated towards the US territory.

There can be other types of bonds such as OTI Bonds SC needed for the financial security and guarantee to the agency such as the Federal Maritime Commission (FMC). It is surety bond that all freight forwarders and non-vessel-operating common carriers (NVOCCs) are required by the FMC to obtain in order to operate as a licensed FF or NVOCC in the US.

Customs Bond

 A customs bond is required by the CBP for all imports to the US that are valued over ,500. For some specific commodities such as food and animals, importers need to post additional bonds as required by the respective agencies. There are two types of customs bonds used widely – Single Entry Bond and Continuous Customs Bond.

A customs bond is a kind of financial agreement or guarantee between three parties – the importer (bond principal), CBP (oblige/beneficiary), and the surety company. In case, the importer fails to pay imposed duties and taxes based on the shipment, CBP can claim against the bond.

Obtaining Customs Bond

It usually takes nearly 10-15 business days from the date you notice CBP for a bond. However, the exact timeframe for bond acquisition can’t be determined as it depends on your import type and several other factors. A licensed customs broker may tell you an approximate timeframe.

Obtaining OTI bonds or any other bonds is not an easy process. It involves extensive paperwork and you need to follow a lot of guidelines while submitting a bond request. A licensed surety agency may help you in deciding whether you need a continuous customs bond or a single transaction bond. The type of bond you need depends on how frequently you import, the total value of your goods, and other factors.

It can be an overwhelming experience to obtain a bond alone. The changing tariffs and customs requirements are enough to spin your head if you’re going to import for the first time. The best solution to this is to contact a freight forwarding company or licensed surety and they will help in turning the process pleasant.