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

What Are OTI Bonds And How To Get One?

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The transportation business has been highly regulated by the Federal Maritime Commission of the United States. It necessary for non-vessel-operating common carriers (NVOCCs) and International Freight Forwarders (IFFs) to obtain NVOCC license or Ocean Transportation Intermediary license (OTI Bond) to operate their trading in the US.

The FMC made it mandatory under shipping act of 1984 for IFFs to acquire OTI bonds in order to be able to import and export cargos through American ports. It is a contract to guarantee that shippers and carriers will comply with and follow all regulations and rules. Apart from OTI Bonds, OFFs don’t need to forget the customs bond because they are required by CBP officers to ensure the security of U.S. Treasury.

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What are OTI Bonds?

International transporters have to show acceptable proof of their loyalty and financial responsibilities in the form of OTI Bonds. If they want to clear their commodities they have to possess necessary surety bonds along with documentation. If the trading is associated with individual ocean transportation intermediary, one need to submit FMC Form-48 and in group OTIs case there is another FMC Form-69 to be filled.

How to Get OTI Bonds?

Like continuous import bond, the three parties – Principal (obtainer), Obligee (FMC) and Insurance Company is involved in OTI Bonds CA. One can acquire OTI bonds by contacting licensed brokers or insurance firms who have experience in this niche.

The price calculation is not that complex compared to other forms of customs bond. You can understand it by given points.

  • S. based OFFs has to get a bond worth $50,000
  • US-based and licensed non-US-based NVOCCs need to submit $75,000 bond
  • And unlicensed non-U.S. based NVOCCs required to give in evidence of financial accountability through $150,000 bond.

However the principal doesn’t need to submit a full amount, they have to pay just a few percentages of total bond charges. The obligee would be responsible to sue any compensation from the bonded OTI and surety in case it fails to comply with rules and exhibit dishonesty at any phase.

It is vital to hire reputable agency to get the work done in minimum timeframe with maximum competence. Professional agent helps in managing a variety of OTI bonds and their network keep them updated about any change in rules and information.

 

 

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