The continuous import bond is a type of customs bond—a bond that guarantees the U.S. Customs & Border Protection (CBP) that the importer will make good on its payment. ... This means that the duties, taxes, fines, and penalties that the surety company will cover within each one-year bond term is $50,000.
The average cost for a continuous customs bond when purchased from a broker is $400-$500 per year or more.
More economical and efficient than a single entry bond for frequent importers, a continuous bond allows you to import frequently and through various ports of entry. A continuous bond is valid until one of the signing parties — the importer or the surety — cancels it. The CBP can also cancel it.
A Continuous Customs Bond* is valid for one year, and allows goods to be imported into the United States in accordance with US Customs and Border Patrol (CBP) requirements.
A customs bond is required to import goods into the United States, as a form of insurance to protect the U.S. Treasury. A continuous customs bond will cover all of your import shipments for one year.
CBP is the beneficiary on all the bonds it authorizes. What are the main types of CBP (U.S. Customs) bonds? ... Drawback Payment Bond (continuous bond code 1A) allows an importer to obtain a refund of 99% of the duties paid on imported goods upon providing proof these goods were exported.
The company issuing the bond is the known as the surety.
A Customs bond is a legal contract between a principal (importer or shipper), a Surety company, and CBP that guarantees the importer complies with Customs regulations and that CBP is paid for applicable import duties, taxes, fines and penalties.
Bond Renewal: What to Know
Once you purchase the bond, it needs to be filled out, filed with US Customs, and accepted by a bond company. The easiest way to get a bond is through your Customs broker or freight forwarder. They will manage all the paperwork and make sure to inform you on upcoming bond renewal payments.
A single entry bond will be billed at $5.50 per 1000$ of the bond amount or $55.00 Minimum fee. Cost of the bond in this case would be $221.10. For shipments falling under the following categories, U.S.Customs requires that the bond amount equal three times the value of the cargo: Food and Drug Administration (FDA)
The term “single entry bond” most often refers to a particular type of customs import bond. The primary purpose of the bond is to guarantee that the required duties, taxes, and fees are paid to U.S. customs when goods are imported into U.S. commerce, as well as compliance with all applicable federal regulations.
Calculating Customs Bond Amounts
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