301 Customs Bond

It won't be a scavenger's hunt if one desires to obtain continuous import bond, but knowing the importance of it is vital. When it comes to importing goods into the United States, importers are always recommended to read through important lengthy informat

4 Reasons Why You Need a Customs Bond to Import in the US

301 customs bond Customs Bonds

This is a general question asked by importers that why do they need customs surety bond while importing into the US. But, the answer is not general. There are various explanations available about the customs bond and it is legitimate because there is no single type of bond. When you tend to receive international goods in the US, you need to follow some obligations.

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A 301 customs bond is a necessary document when you’re importing commercial merchandise through ocean vessel. There are several other conditions when you need a particular bond to clear goods at the destined port of entry. Here are the four reasons why you need customs bonds to import in the US.

  1. For commercial imports valued over $2,500 and for commodities (firearms, food, animals, etc.) that are subjected to other federal agencies such as FDA and ATF, you must post a customs surety bond to clear the shipment.
  2. The Customs and Border Protection (CBP) requires all importers to obtain 301 customs bond that guarantees that all taxes, fees, and duties payable to the federal government will be paid b the importer timely.
  3. CBP is responsible to protect the nation’s treasury by thoroughly inspecting and collecting duties, taxes, and fees for each cargo coming. Customs bond is one of the entry requirements for those seeking to import products from foreign countries.
  4. In the absence of a bond, you take the risk of delaying your goods at the customs for several days or months and also incur a heavy cost as penalties and fines.

There are mainly two types of bonds for importers – Single Entry Bond and Continuous Import Bond.

As the names suggest, the single entry bond is valid for only one importation to tend to make within a year while a continuous import bond is valid for multiple imports for a 12-months period. Depending on how often one import in the US, he/she can choose to acquire a bond on a yearly basis or every time he or she imports cargo.

The main purpose of these bonds is it ensures the CBP that it will able to collect all due monies from the importer or insurance/surety company that issued the bond. One can obtain a bond through a licensed broker or surety company. The cost of bond depends on the type of bond, value, and type of commodities.