The answer is the Customs Bond Renewal does not occur every year. A continuous Customs bond is in fact continuous. This bond will be on file with US Customs until a termination notice is put in place, usually by a Surety agency or Customs broker.
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.
The average cost for a continuous customs bond when purchased from a broker is $400-$500 per year or more.
A Surety Bond Renewal is an extension of the surety bond term by the surety company. All surety bonds have a term for which they are valid and enforceable. ... At the end of the bond's term, the surety company will re-underwrite the bond and set a new premium based on the new term desired by the principal.
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.
In most cases, the amount of the bond must be at least 10% of the total duties and taxes paid to CBP annually at a minimum of $50,000. The typical Import bond amount is $50,000.
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| Total Duties & Taxes | Bond Size |
|---|---|
| $9,000,000 to $9,999,999 | $1,000,000 |
A single entry bond provides this guarantee for one single import transaction. The single entry bond amount must be equal to the entire value of the goods, plus the duties, fees, and taxes required on the important transaction. Single entry bonds can be written at a minimum value of $100.
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.
Businesses who regularly import goods into the United States will benefit greatly from a continuous bond. 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.
Once the bond premium is set the principal is required to pay the new premium to extend the term of the bond. The surety will then keep the bond in force. ... If the principal fails to complete this process before the bond term ends they may be required to apply for a new bond or obtain a Reinstatement.
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