How to Apply For OTI Bonds and Customs Bond?

Import and export through ocean vessels have highly regulated by the federal government of the United States. The process of goods transportation from other countries to the US is too much assorted and this is only to make the process safe and authentic. International Freight Forwarders (IFFs) and Non-Vessel-Operating Common Carrier (NVOCC) is asked to become licensed Ocean Transportation Intermediary (OTI) by the Federal Maritime Commission (FMC) under the Shipping Act. An NVOCC can apply application for OTI Bonds CA through a local brokerage.

Customs bond has quite a different classification as it is meant for making the importation of commodities safe and secure. There are two types of bonds that are prevalent to make the shipping reliable. Single transaction bonds are for the one-time transaction of goods through ocean vessel in a calendar year and Continuous import bond is for multiple time transactions in a year.

When a person or company commences trading in abroad locations, the main concern is commercial transactions. It pertains government regulations, extra expenditures, the role of middlemen, and too much consciousness about the entire tracking. Due to competitive rates of OTI Bonds NY, it has become little easy to obtain this type of surety documents that aims at consolidating the financial responsibilities of Otis in the eyes of FMC. The OTI-NOVCC license is really common and is highly recommended by the importing giants.

Due to meticulous examination of Bureau of Certification and Licensing (BCL), the agency responsible to determine whether a particular individual or firm is eligible to hold OTI Bonds CA or not, it becomes quite difficult to get it timely. There are a different set of rules for FMC-48 and FMC-69 to be filed by the FMC and price range also varies. It ranges between $50,000 and $150,000. NOVCCs that are neither licensed nor belong to the USA, they need to acquire expensive surety bond of $150,000 amounts. To approve the application and qualify for a bond, it is important to have at least three-year experience as a skilled OTI or sole proprietor.

The people who don’t know much about customs bond, it simply involved three parties in order to obtain it legitimately. When the industrial value of the importing cargo exceeds $25,000 it becomes necessary to obtain one of the bonds described in the second paragraph of this article. The three parties are principal, obligee, and a surety (insurance company/broker). It is easy and affordable to apply for customs bond and OTI bonds CA through a customs broker or insurance agency.

Import and export through ocean vessels have highly regulated by the federal government of the United States. The process of goods transportation from other countries to the US is too much assorted and this is only to make the process safe and authentic. International Freight Forwarders (IFFs) and Non-Vessel-Operating Common Carrier (NVOCC) is asked to become licensed Ocean Transportation Intermediary (OTI) by the Federal Maritime Commission (FMC) under the Shipping Act.

There are two types of bonds that are prevalent to make the shipping reliable. Single transaction bonds are for the one-time transaction of goods through ocean vessel in a calendar year and Continuous import bond is for multiple time transactions in a year.

Both the terms Oti Bonds and Customs Bonds CA are either related to ocean freight forwarders or importers.