US companies importing from China, or anywhere else for that matter, must obtain a customs bond before arrival in the Port of Destination.
What is Customs Bond
A Customs Bond is a financial commitment between three parties: the surety, the principal, and CBP (Customs and Border Protection), allowing CBP to lodge a claim against the bond if the Principal fails to pay the correct amount of money for duties and taxes based on the import transaction.
Importers are obliged to acquire a customs bond for any commercial items valued at more than $2,500 that are carried by air or water.
We understand that new tariffs and import requirements have dramatically increased the need for customs bonds at The Surety Place. Importers may require higher customs bonds than ever before due to new and rising taxes.
We can handle your bonding needs regardless of the type or quantity of customs bond you require or where you are situated in the United States. The Surety Place can assist you if you are an importer or a customs broker in need of a fresh customs bond.
What types of customs bonds are there?
There are two types of customs bonds:
1. Single Entry/Transaction Bonds
A Single Entry Bond (SEB) is a bond that covers a single Customs entry for a single shipment. Most bond companies will not issue a SEB more than three times per year because it attracts attention from US Customs and Border Protection.
The price of a SEB varies according to mode of transportation. When shipped by air, the minimum cost for a SEB is $65; when shipped by ocean, the minimum cost is $140. Ocean shipments, for example, necessitate the use of two separate bonds (ISF Bond and Entry Bond).
2. Continuous / Annual Bonds
Annual bonds are only valid for one year. Because they are linked to a company’s tax ID/EIN number, they can be reused on multiple imports. Furthermore, annual bonds are not tied to a specific broker or freight forwarder, so even if you change customs brokers, your bond will remain valid. The average annual bond costs $500.
An annual bond is a $500 bond with a one-year term. It is linked to a company’s tax ID/EIN number and can be used for multiple imports throughout the year. Annual bonds are not broker or forwarder-specific bonds, so if you change customs brokers, the bond will remain valid.
How can I obtain a customs bond?
Customs Bonds can be purchased from a licensed US customs broker. Bond providers, also known as surety companies, work with customs brokers. When an importer buys a bond, the broker will assign them a unique bond number.
How do I specify the size of my bond?
The bond amount is usually at least 10% of the total duties and taxes associated with your imports. To determine the size of your bond, you must first determine the total amount of duties and taxes levied on your shipment. Then, use this chart to determine the size of your bond.