As the market becomes more global, many businesses are turning to overseas manufacturers. Importing goods into the country has a lot of risks. There are many laws and regulations with which your organization has to comply. A customs clearance bond is required for imports. Here are five things you should know.
- Customs bonds are part of your risk management program in place to protect your imports. However, this bond guarantees payment of import duties and taxes. It is not an insurance on the items themselves.
- Imports valued at more than $2500 need a customs clearance bond.
Customs bonds include three parties:
- The principal who takes out the bond
- The surety, an insurance company that underwrites the bond
- The beneficiary, U.S. Customs & Border Protection (CBP)
There are two main types of customs bonds. Single entry bonds only cover one transaction. Continuous bonds have a one-year team and are valid until terminated by the surety or principal.Your import will not clear customs unless the customs clearance bond meets all of the requirements.
Work with a customs broker that knows the import industry to make sure your shipment gets into the U.S. without problems. Insufficient bonds cannot be used to bring product into the country. Before you have a problem, you need to make sure all the documentation is in order. Your customs broker can help you with their experience.