The U.S. Customs & Border Protection regulations requires a Customs Import Bond for most imports to clear customs. If imported goods are not covered by a bond through a customs broker, the importing company will need to purchase a bond. Bonds are also required for entities transporting cargo or passengers by vehicle, vessel or air from foreign destinations.
There are many types of bonds available based on the quantity of goods being important and the value. The most common types are single entry and continuous bonds.
Single entry bonds are best for importers that only want a single shipment covered. The specific transaction the bond is written for is all that is covered. For importers that only receive goods occasionally, it is the most economical and recommended choice.
Continuous customs bonds are written for a period of twelve months and cover all imports during that period. Importers that regularly import merchandise throughout the year or from multiple entry ports will want to choose this option.
Usually equal to the total entered value of the import including all taxes and fees, the bond amount is set by the receiving port’s director. Merchandise subject to another federal agency’s requirements may require a bond at least three times the total entered value of the merchandise.
The continuous import bond must equal the larger of $50,000 or 10% of the total fees, taxes and duties from the prior 12-month period.