A CBP bond is a contract that is given to insure the performance of an obligation or obligations imposed by law or regulation. A bond is like an insurance policy that guarantees payment to U.S. Customs and Border Protection (CBP) if a required act is not performed. Bonds have a number of uses in CBP. The most common use allows importers to take possession of their goods before all CBP formalities are completed. Another common use allows a carrier to move goods under bond from one place to another before those goods are actually entered for consumption with duties paid.
All parties that import merchandise into the United States for commercial purposes or transport imported merchandise through the United States must have a CBP Bond. Bond is basically an Insurance company that guarantee U.S. Customs the Duty will be paid, in case the importer defaults.
There are 2 types of Bond: Annual & Single Entry Bond.
1. Annual / Continuous Bond – 12 Months – flat fee for yearly basis +1st Time Set up fee.
A continuous bond is 10% of duties, taxes and fees paid for the 12 month period. The minimum amount is $50,000.00. It has a term of one year and is automatically renewed each year. A continuous bond is valid until it is terminated by the surety or the principal.
Advantages of Annual Bond:
2. Single Entry Bond:
Importers obtain a single entry bond for a single shipment. It covers only the entry or transaction for which it was written. Every Shipment will be Entry Documents required by U.S. Customs; it could take at least 24-72 hours to get shipment released.
A single entry bond is generally in an amount not less than the total entered value, plus any duties, taxes and fees.
Visit website at www.cbp.gov for further information.
What is a CBP Bond?