| Customs Bonds: |
Customs Bonds
What is a Customs bond?
A Custom bond is a financial guarantee between 3 parties: the Insurance/Surety company issuing the Customs bond, the
Principal (who is required to file the bond), and Customs & Border Protection (CBP). The Customs bond guarantees
Customs & Border Protection that if they cannot collect monies due from the Principal they can seek remedy, up to the bond
amount, from the Insurance/Surety company. The Customs bond also indemnifies the Insurance/ Surety company, allowing
them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal’s behalf.
The bond is not designed or intended to protect the importer (rather it protects the people and government of the United
States), nor does it relieve the importer of any of their obligations. The surety company, by bonding the importer, assumes
the same duties and responsibilities of the importer.
What are the different types of bonds?
At the discretion of the importer, the bond form can be used to cover imports on either a single transaction or continuous
basis. When the bond is completed for single transactions, the bond covers only one import entry. When executed as a
continuous bond, it will normally cover all your transactions at all U.S. ports (excluding anti-dumping and countervailing duty
entries).
Different types of bonds are required for various activities coming under the jurisdiction of customs.
Activity Code 1: Import Bond
Activity Code 1a: Drawback Bond
Activity Code 2: Custodian of Bonded Merchandise
Activity Code 3: International Carrier
Activity Code 4: Foreign Trade Zone Click Here to see bond type definitions
Other Customs Bonds available - Not so Common
Activity Code: 3a - Instruments of International Traffic
Activity Code: 5 - Public Gauger
Activity Code: 6 - Wool & Fur Products Liability Act
Activity Code: 7 - Bill of Lading
Activity Code: 8 - Detention of Copyrighted Material
Activity Code: 9 - Neutrality
Activity Code: 10 - Court Costs of Condemned Goods
What is a Customs bond?
A Custom bond is a financial guarantee between 3 parties: the Insurance/Surety company issuing the Customs bond, the
Principal (who is required to file the bond), and Customs & Border Protection (CBP). The Customs bond guarantees
Customs & Border Protection that if they cannot collect monies due from the Principal they can seek remedy, up to the bond
amount, from the Insurance/Surety company. The Customs bond also indemnifies the Insurance/ Surety company, allowing
them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal’s behalf.
The bond is not designed or intended to protect the importer (rather it protects the people and government of the United
States), nor does it relieve the importer of any of their obligations. The surety company, by bonding the importer, assumes
the same duties and responsibilities of the importer.
What are the different types of bonds?
At the discretion of the importer, the bond form can be used to cover imports on either a single transaction or continuous
basis. When the bond is completed for single transactions, the bond covers only one import entry. When executed as a
continuous bond, it will normally cover all your transactions at all U.S. ports (excluding anti-dumping and countervailing duty
entries).
Different types of bonds are required for various activities coming under the jurisdiction of customs.
Activity Code 1: Import Bond
Activity Code 1a: Drawback Bond
Activity Code 2: Custodian of Bonded Merchandise
Activity Code 3: International Carrier
Activity Code 4: Foreign Trade Zone Click Here to see bond type definitions
Other Customs Bonds available - Not so Common
Activity Code: 3a - Instruments of International Traffic
Activity Code: 5 - Public Gauger
Activity Code: 6 - Wool & Fur Products Liability Act
Activity Code: 7 - Bill of Lading
Activity Code: 8 - Detention of Copyrighted Material
Activity Code: 9 - Neutrality
Activity Code: 10 - Court Costs of Condemned Goods
| Home | Terms of Use | Privacy Notice | Contact Us Copyright © 2012 All Rights Reserved. Byrne - Kim & Associates Insurance Services, Inc. T. 949-249-2540. F. 949-270-3704 |
Continuous bonds vs. Single Entry bonds
Most Customs bonds, overall, are Activity Code 1 Import Bonds. The import bond is required by Customs & Border Protection from all importers in order to clear entries
through Customs. An importer may file a “Single Entry” import bond or a “Continuous” import bond. As your broker we prefer to write Continuous import bonds as they
are significantly more cost effective than single entry bonds in the vast majority of situations.
To apply for any US Customs Bonds, Contact Byrne - Kim for application needed (949) 249-2540
Most Customs bonds, overall, are Activity Code 1 Import Bonds. The import bond is required by Customs & Border Protection from all importers in order to clear entries
through Customs. An importer may file a “Single Entry” import bond or a “Continuous” import bond. As your broker we prefer to write Continuous import bonds as they
are significantly more cost effective than single entry bonds in the vast majority of situations.
To apply for any US Customs Bonds, Contact Byrne - Kim for application needed (949) 249-2540
| Home | Site Map | Contact Us |
| About Us | Services | Resources | Client Log In | Employment |