Upon importation of merchandise, an importer assumes certain responsibilities
to the U.S. Customs Service: making the goods available for inspection; labeling
and packaging requirements; making records of transactions available for inspection;
paying estimated, or any additional duties when and where applicable. The U.S.
Customs Service is authorized to take bonds to assure the performance of the responsibilities
by the importer.
Bonds may be described as a guarantee from the surety company to the United States
Government that the importer will faithfully and timely abide by all laws and
regulations governing the importation of merchandise into the commerce of the
United States. The bond is not designed or intended to protect the importer (rather
it protects the people and government of the United States), nor does it relieve
the importer of any of their obligations.
The surety company, by bonding the importer, assumes the same duties and responsibilities
of the importer. If an importer fails to honor any condition of the bond, the
surety can be compelled to do so in their place.
Types of Customs Bonds
· Single Entry Bond
A Single Entry Bond covers only one import entry. Bond amount required by the
U.S. Customs for basic single entry for general goods is value + duty. Cost
of a single entry bond is calculated at $3 per $1,000. Example:
|
Bond Amount |
|
Divided by |
|
Multiply by the rate |
|
Cost of Bond |
|
$90,000 |
|
1,000 |
|
$3 |
|
$270 |
*Minimum cost for a single entry bond is $30.
*Quota entries and merchandise involving clearance of other government agency,
such as FDA and FCC, would require a bond 3-times the entered value plus duty
and fees.
· Continuous Transaction Bonds
Continuous Transaction Bonds cover all import transactions at all U.S. ports
within one year from the date the bond is approved and effective. They cover
10% of the annual estimated duties for the calendar year. A Continuous Bond
shall never be less than $50,000. Cost is $500.
Single or Continuous?
If an importer chooses to purchase the single entry bond, $500 would be the
total cost to cover imports of roughly $166,666, entry value and duties combined.
Therefore, as a rule of thumb, if you plan on importing more than $160,166,
assuming duty rate of 3.9%, within one calendar year, you should opt for the
continuous bond.
Contact us if you have any questions.
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