Important Things You Should Know About Customs Bond

Posted by Cbicustom on January 7th, 2020

The customs bond is always important to guarantee a safe import. Depending on the nature of your products, import and export must pay duties and taxes. There are many vital factors and information to consider before goods are transported to countries such as the United States and Canada. The United States is the largest importer of goods, accounting for 13.4% of total imports. Therefore, probably, business people who are on the market in the United States. Always keep a few questions, such as what is a customs bond, what is a continuous customs bond, etc.

If you want to send goods overseas, you must know the current 5 points about bonds.

1. Information about the customs bond

The Customs bond obligation guarantees that taxes and levies on goods imported into the trade are paid to the US Customs and Border Protection (CBP)or to the government of another foreign country. It ensures that payments are compensated to the CBPtimely manner. By restricting the importer, the customs security authorities or the client of the goods can take legal action and apply for insurance.

2. Importance at Entry Port

From packaging to unloading at the port of destination, the transport of goods can be difficult if you do not have a customs bond. When the ocean vessel arrives at the port of call, any authorized inspection officer can request the necessary documents or bonds. Importers often underestimate paperwork and therefore experience serious inconveniences or even delays in products. Because he cannot bribe civil servants abroad so that they can leave easily, he must be careful when drafting important documents.

3. When Do You Need One?

There are two types of bonds: the single entry bond and the continuous customs bond. Depending on the number of times it takes a year, you can choose one. This means that if you tend to trade only once a year, you may prefer a single transaction bond or, if you have to trade multiple times, you may prefer a “continuous import bond”. You need it when...

The total value of the goods is commercially higher than $ 2500 or when the goods fall into a specific category of a prohibited or restricted class of goods (such as the import of food, insects or animals).

4. Customs Broker/Insurance Companies

This point may not seem relevant, but in reality it has a decisive association with bonds. You can obtain a “customs bonds CA” only from licensed customs agent or an insurance/surety company. You can send a request directly by visiting the official CBP website.

5. Price

The prices of Customs Bonds CA can vary based on the total value of the goods. An experienced broker can help you determine the actual bond amount. Don't forget that you have to pay less if you hire competent forwarders. Above all, the down payment amount is three times higher than the total value of the goods.