What is a Customs Bond?
A Customs Bond is an agreement that ensures that any imported goods will have all their fees and taxes paid as well as be imported according to all laws and regulations. Anyone that is importing goods or transporting them locally is required by Customs and Border Protection to puchase a bond from a surety company.
If an importing company fails to pay fees or follow regulations, Customs can file a claim against the bond. The surety company would then pay to make restitution, but in the end it is the company who is required to pay back the surety company.
You have the option of either puchasing a Single Entry Bond or a Continuous Bond.
- A Single Entry Bond: covers one shipment
- Continuous Bond: covers one year’s worth of shipments.
How Much Does a Customs Bond Cost?
The amount of the bond depends on the type of goods being imported. Most of the time the amount will be equal to the value of the goods plus any fees and taxes, but some goods may require a bond up to three times the value of the goods.
The price you pay will only be a portion of the total bond amount. Depending on your company’s financials and your personal credit, your price will typically be 1-15% of the total bond amount. Those with good credit can expect to pay less than those with bad credit.
How Do I Get a Customs Bond?