Many traders and businesses know that they need to apply for customs bonds in order to bring goods in the US. They know very much basics about the Customs and Border Protection (CBP). However, there are merchants who get worried or confused when they thought about the type of customs bond. International shipping of merchandise has been laborious, especially when it is carried out by ocean vessels. And in order to clear imported merchandise at the entry ports, importers required to present necessary documents.
A 301 customs bond is one of the most important documents in their file that acts as a legal contract. It is kind of security for compliance of rules and regulations set by the CBP and payment of duties, taxes, and fees.
About Custom Bonds
For importers importing goods commercially, that valued over $2,500 into the US are required to post a sufficient 301 customs bond. This guarantees financial responsibility between three parties – the principal (importer/broker), Surety Company, and CBP.
Two Types of Bonds
There are typically two types of customs bonds NJ – Continuous Import Bond and Single Transaction Bond. An insurance or surety company approved by the Department of the U.S. Treasury can issue an appropriate bond for you. If you’re working with a customs broker, he should be licensed and bonded. Brokers have to apply for it online or at entry office and fill a 301 CBP Form in which they have to describe merchandise details and total duties/taxes that importer has paid to CBP in the previous year.
Choosing a continuous import bond can be beneficial which covers all entries in a year. The minimum liability amount for this bond is $50,000 and is considered economical when compared to a single entry bond. You only have to pay a small percentage of the total bond amount upfront. With this bond, you may not have to do Importer Security Filing as it may secure this entry too.
Bond renewal is not a difficult process but in case you forget it complete timely, your merchandise may be stuck at customs for weeks. You just have to re-contact your customs broker or freight forwarder with whom you worked to get it firstly, rest of the paperwork they will handle and calculate the renewal payments. You may receive an offer or discount on a 301 customs bond renewal, as most insurance companies want to develop a long-term clientele.