If your business imports goods into the United States, you will usually be required to pay various duties, taxes and fees. In order to guarantee that they receive the payments, the U.S. Customs and Border Protection (CBP) may require that you obtain an importation bond, also known as a custom bond.
What Is a Custom Bond?
This bond normally involves a written agreement between three parties: you (the importing company), the CBP and the bond or surety company. The bond company typically assures the government that it will receive the necessary funds. If your company does not pay the required duties and taxes, the bond company must usually do so. This agreement can also give the surety company the ability to legally recoup from you the money paid to the government on your behalf.
Reasons for Getting an Importation Bond
The U.S. has laws that may compel certain companies to get an import bond. If the goods you are importing are worth over $2,500 or if you are importing certain goods like firearms or food, you may be legally obligated to have an import bond.
Furthermore, having a bond can be extremely beneficial. Without one, you may be required to pay all the fees upfront. On the other hand, with a bond, you typically can receive your merchandise and then pay the fees later.
If you are in the business of importing products into the United States, you may be legally required to have an import bond. Moreover, have one may just benefit your company.