The Continuous Customs Bond Solution
Importers who regularly bring goods into the US should consider getting continuous bonds. However, before you get a continuous bond, you need to assess whether you import enough goods (value wise) to warrant its purchase. To do that, you should look at it this way: the yearly cost of a bond is about $500 and with it, you get a minimum of $50,000 for liability.
Knowing this, calculate the amount of money this can save you. Most customers quickly realize that paying for a continuous bond is very good for business since it pays itself off after a few shipments. Past that, you’ll take full advantage of the convenience of a bond without having to worry about paying extra for it.
Buying single bonds is also an option you may want to consider. These work only for 1 entry into the United States and aren’t automatically renewable. If you’re a large importer, obtaining a yearly continuous bond for 500 dollars is certainly a great deal and an excellent investment, too.
What are the required steps to apply for a US Customs bond?
In order to apply for a customs bond, we require a 1-page application, but also a power of attorney form. The POA form needs to be filled in full and signed by an executive of the corporation (CEO, COO, CFO, Treasure, Secretary, or President) working for the company. In case you already have a bond, we’ll file it with the Customs Border Protection before its effective date. Nothing will change in your importer practices and the new effective date will remain unchanged as well. Your bond will be issued by taking into consideration the CBP requirements and we’ll also handle all bond changes free of charge.
How long does your company take to put the continuous bond in place?
The Customs and Border Protection is going to determine the amount of time it takes for a bond to be filed. The most popular bond is the fifty thousand dollars continuous Import Bond. If you want to apply for this type of bond, you need to inform the Customs department ten business days in advance. Depending on the other continuous bond types and amounts you may want to consider, they all require a minimum notice of ten days and in some cases, more.
Using a CIB (Customs Import Bond)
A CIB is valid at any port in the United States and can be effectively used by any Freight Forwarder or Customs broker of your choice for the purpose of clearing your entries. It’s important to mention that an importer can only have a single CIB on file with the Customs Border Protection(CBP) at a time. The Customs Border Protection issues a bond number (when a bond is placed) and ties it to the company’s tax ID or Importer Number. Where the bond is bought is not important, since it remains a policy of the surety and no third party can take ownership of it.
Does a Customs bond renew?
When a notice of renewal is sent by a third party billing service, it means the receiver needs to pay for the upcoming bond term. This means that in order for the bond to still remain in effect, the insurer needs to collect the payment for it.