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 is CBP Form 301 in Customs Bonds?

If you haven’t made any large shipment in U.S, you are allowed to underestimate the procedure. It is too long and seeks lots of paperwork. Customs Bond/301 Customs Bond (CBP Form 301) plays a vital role in reducing this documentation.

U.S Customs and Border Protection (CBP) have set a regulation that customs bond is required to import things in United States. It is a form of insurance which ensures protection and makes shipping process easy for importers.

Continuous Customs Bond can be issued through registered insurance broker/surety company. It is like an agreement between three parties – government, broker and importer.

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Why Is It Important?

Customs Bond/Customs Surety Bond is important for both importer/exporter and CBP. It allows CBP to collect all duties, taxes, fines, and penalties if any found guilty of not the remaining dues or amount.

An importer can hire a customs broker to help clear the commodities from all pertaining customs and ports. This bond helps lower the burden of long process and also saves money.

Types of Customs Bonds

There are different types of bonds required to possess to comply with Customs & Border Protection (CBP) regulations. The amount of each bond can be varying depending on various calculations. A custom bond insurance company can assist you in calculation. Generally these bonds are required for carrying your goods via sea or airways –

  • Import Bond (Single Entry Bond & Continuous Import Bond) – Activity Code 1
  • Drawback Bond – Activity Code 1A
  • Custodian Bond – Activity Code 2
  • International Carrier Bond – Activity 301-3
  • Activity Code 3A (Instruments of International Traffic)
  • Foreign Trade Zone – Activity Code 4
  • Activity Code 16 - Importer Security Filing (ISF) Bond

In all above mentioned bonds, Import Bond or 301 Customs Bond or C1 Bond is mostly asked bond by CBP. There are two types of import bonds – Single Entry Bond and Continuous Customs Bond/Continuous Import Bond. CBP Form 301 is the most common bond used while importing.

What is Import Bond?

Import Bond is required for shipping carriers/importers to pass their merchandise through customs and ports in US. One can obtain a single entry customs bond to import only for single time in a year. Importers can purchase a continuous customs bond or continuous import bond for multiple shipments in a year.

A customs broker or freight forwarder can use this continuous import bond on behalf of importer to carry forward goods, filling documentation, paying taxes and duties, classifying the cargo etc.

Purchasing Continuous Import Bond

An international merchant can purchase a continuous import bond from certified customs broker or insurance/surety Company approved by Department of the U.S. Treasury to issue U.S. Customs bonds.

Minimum cost of a customs surety bond is $50,000, covered by insurance company. The amount of bond must be 10% of total costs of taxes and duties.

Brokers are usually connected to large network of cargo carriers. They are well familiar with customs, government officials and authorities. CBP Form 301 is quite complex to fill and prompts you seek help of a professional. Selecting the right broker for customs bonds should be the priority of an inexperienced shipper.

 

 

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