5 Things to Know About Customs Bond

Customs bond is always important to ensure safe importation. Depending on the nature of your commodities, in importing and exporting you require to pay duties and taxes. There are many vital factors and information one should observe before transferring goods to countries like the United States and Canada. America is the largest importer of goods, comprising the world’s 13.4% of total imports. So most probably businessmen who merchandise to the US, they always stuck at a few questions like what is customs bond, what is continuous customs bond etc.

If you want to do overseas shipping of cargo through ocean freight transportation then you should know today’s 5 points about bonds.

1. About Customs Bond

Customs bond guarantees that the taxes and duties levied on commercially importing goods would be paid to the U.S. Customs and Border Protection (CBP) or to the government of any other foreign country. It ensures that the payments will be compensated to CBP timely. By bounding the importer, the security agencies of customs or principal of properties can take legal actions and claim insurances.

2. Importance at Entry Port

Beginning from the packaging and until the unloading at the destination port, the journey of cargo can be difficult if you don’t have customs bond. When the ocean vessel reaches the port of call, any authorized checking officer can ask for necessary documents or bonds. Often importers underestimate the paperwork and then experience great inconvenience or even delay of goods. As in overseas you can’t bribe officials to get away easily, you must pay attention in preparing important documents.

3. When Do You Need One?

There are two types of bonds – Single Entry Bond and Continuous Customs Bond. Depending on how many times you import in a year, you may choose any one of them. It means if you tend to do transaction only one time in a whole year you can prefer single transaction bond or in case you require to do trading for a couple of times, you can prefer continuous bond. You need this when –

The total value of goods is over $2,500 commercially or when the goods fall under a specific category of a prohibited or restricted class of merchandise (like importation of food, insects, weapons or animals).

4. Customs Broker/Insurance Companies

This point may sound to you irrelevant but actually, it has a deciding association with bonds. You can obtain a customs bonds CA only from licensed customs broker or insurance/surety companies. You can apply directly by visiting the official site of CBP.

5. Price The prices of Customs Bonds CA may vary according to the total value of your merchandise. An experienced broker can help you in determining the actual amount of bond. Remember that you will have to pay less if you hire competent freight forwarders. Mostly the bond amount is three times higher than the total value of the merchandise.

Depending on the nature of your commodities, in importing and exporting you require to pay duties and taxes. There are many vital factors and information one should observe before transferring goods to countries like the United States and Canada. America is the largest importer of goods, comprising the world’s 13.4% of total imports. So most probably businessmen who merchandise to the US, they always stuck at a few questions like what is customs bond,

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