Why Do Importers Need To Purchase Customs Surety Bond?
The institution of importing is one merchandize which is drenched in tradition is important. Over the years as it has been celebrated by different processes and through different era’s a whole range of conventions and customs surety bond have arisen. Not least, the importing and exporting of the foreign goods. Customs law solicitors are highly sensitive to the personal issues involved, so they begin by recommending you qualified professional mediators to try to solve the problem this way. Security is important as it represents the heart of any transaction, where every individual involves for profit.
Customs bonds are not alike other bonds. They act much like agreements between people. A customs surety bond is an agreement between three parties – the importer (principal), the obligee (insurance agency), and customs (CBP). It ensures CBP all necessary duties, taxes, and fees will paid timely for the requested commercial import.
You should know that only licensed freight forwarders an act as legal intermediary. For example, freight forwarders and non-vessel operating common carriers (NVOCCs) who have obtained required OTI Bonds can operate as intermediary for an ocean transaction in the US.
A customs bond sometimes also referred to as an import bond that is required when an importer tend to import goods valued at over $2,500. All commercial imports intended to be shipped in the United States must be covered by necessary bonds and follow rules and regulations.
If you’re planning to import something that falls under observation of other federal agencies such as food or animals that come under administration of FDA, you may require obtaining an additional customs surety bond. The bond amount is usually three times the value of merchandise you’re supposed to import. It’s better to work with licensed customs brokers in order to complete the documents and application properly.
Calculating OTI Bonds CA is not an easy task because it entails a lot of factors such as total amount of duties and taxes associated with the importing merchandize. It is common with customs bonds that they must be at least 10 percent of the total duties and taxes at a minimum of $50,000. You are advised to consult with expert insurers or brokers to know the right process of acquiring a customs bond.
