Do you want to import into the US from another nation? Have customs asked you about customs bonds? There are different types of bonds depending on the activity or medium you are engaging to import. While importing goods from foreign countries, you need to comply with the government’s rules and regulations. And it has made mandatory by the federal government agency Customs and Border Protection (CBP) to obtain sufficient customs surety bond for all importers who desire to import from other countries.
The Activity Code 1 Customs Bonds are very common when traders want to import merchandise of above $2,500 into the United States through ocean vessels. It is a kind of an agreement to ensure the government that all duties, taxes, or fees will be paid by the principal (importer).
What is Customs Surety Bond?
Customs bonds CA are required for commercial import valued in excess of $2,500. The additional bond requirement may be inflicted in case of commodities that belong to other federal agencies such as foods, firearms, and animals. However, obtaining them is not an easy task and can be an overwhelming experience for new businesses and first-time importers. The process of international is always tricky and you always need professional guidance.
There are mainly two types of bond, Single Transaction Bond and continuous customs bond. Importers need to file ISF prior 24 hours to cargo being loaded for the destination in case they take a single entry bond which is valid only for one-time shipment. As the name suggests, continuous customs bonds allow importers to move multiple shipments through several ports within the given year. You may not need an ISF filing with the later one.
How to get one?
In a customs bonds obtaining procedure, there are three parties involved – a principal (consignee), surety company/broker/agent, and the beneficiary which is CBP. You can obtain a bond through licensed brokers of an insurance company that is authorized by the Department of Treasury.
The total time you would need to wait for a $50,000 bond is usually 10 business days. CBP may take extra time as per your bond type. You are required to submit the right information about the shipment to CBP to get it on time. You can hire experienced custom brokers for additional help in documentation, delay in bond, or late/detained goods at the port of entry.