The U.S. Customs & Border Protection (CBP) regulations define a Customs Import Bond as “a contract which is given to ensure the performance of an obligation imposed by a law or regulation.” This properly executed bond is required for any imported goods to be cleared by customs.
Typically, an importer will want to have at least two bonds.
The Customs Import Bond serves as a guarantee for compliance and payment of required charges and taxes. The parties involved in the bond contract are the obligee (CBP), principal (importer), and surety company.
The following items are affirmed in the bond:
- Agreement to pay all duties, taxes and other charges by due date.
- Exoneration of and reimbursement to the United States.
- Compliance with all special requirements.
- Agreement to allow examination of merchandise.
- Agreement to complete entry.
- Agreement to provide shipment documentation.
- Agreement for re delivery if requested.
The Drawback Bond comes into play when imported goods are exported. This transaction may entitle the principal to a refund of taxes, or a drawback claim. Accelerated drawback is the most popular way for a drawback claim to be paid. It provides for the funds to be refunded prior to the liquidation of the claim. The bond guarantees that all overpaid drawback monies will be returned to CBP once the claim is liquidated.