How can Customs Surety Bond Help Me in Trading?
Are you a merchant looking to cognize a little bit more about customs surety bond? You might probably have listened about sales tax bond, government bonds, and other trade-related terms but you still need to know important facts about customs bond. The truth is that a surety bond can’t provide you profits in dollars but can save your trading from any scramble. There are certain conditions when you require posting such bonds. Failure in obtaining sufficient bond may lend you and your merchandise into trouble. Let’s dive into more interpretation.
Since the Government of the United States had taken serious actions against the entrance of risky cargo in 2003, the procedure of importing goods into the U.S. premises has become intensively regulated. The government had formed Customs and Border Protection (CBP) with specific laws. It limited the ability of wrongdoers and inhibited them to send any unsafe imports to this side of the globe.
How does Customs Surety Bond Work?
Coming back to the main topic, in terms of importing goods successfully to the US, importers are asked for mandatory either continuous import bond or a single entry bond. The customs surety bond covers a defined percentage of the levied taxes on the cargo. The amount of bond depends on various factors that we will discuss below in this article.
The basic theory of surety bonds is like this – they act as a legal document guarantees CPB that the principal or employer of cargo is capable of paying all taxes, duties, and fees within the destinated time. I appreciate any confusion here. You can understand it ethically only if you prefer to put a few minutes in taking consultation from an expert freight forwarder or a brokerage.
Benefits of Continuous Import Bond in Trading
If you’re on the verge of making frequent shipments to the United States then you must prepare yourself with quality information of entry ports and functioning of goods at various ports. Continuous import bond helps in doing more than one shipments in a year. The minimum customs bond amount is $50,000 that includes Importer Security Filing (ISF) and is subjected for renewal yearly. The final amount is always determined by the CBP authorities after inspection of the type of commodities you tend to transfer.
In case the bond found inappropriate with respect to the type of cargo, CBP has the rights to hold it until all things found legitimate. Most importers do the mistake of avoiding the classification of their goods. Your property should not lie under the restricted quota of the country where you are going to import. So make sure you had checked all the policies by visiting the official site of CBP before applying for a customs surety bond.
