What Are Customs Bonds & Which Types Are Required for Importers?

What is a Customs Bond?

A customs bond is a guarantee that ensures importers adhere to U.S. Customs and Border Protection (CBP) regulations. It guarantees that all applicable import duties, taxes, fines, and penalties are paid. Customs bonds play a vital role in facilitating the smooth flow of goods through U.S. ports, reducing potential delays caused by customs fees and regulatory issues. By securing these bonds, businesses can expedite their merchandise from ports to market without unnecessary interruptions.

Types of Customs Bonds

Importer Single Entry or Continuous Bonds

Who Needs This Bond? Any individual or entity importing merchandise into a U.S. port with a value exceeding $2,500 must secure an importer bond. These bonds can be either single-entry or continuous.

Bond Amount

  • Single Entry Bonds: Typically cover a single import transaction.
  • Continuous Bonds: Cover multiple transactions over a period, generally with a higher bond amount compared to single-entry bonds.

Guarantees

  • Payment of duties, taxes, and fees
  • Proper documentation and compliance with import regulations
  • Redelivery of merchandise if needed
  • Rectification of non-compliance issues

Airport Security Agent Bonds

Who Needs This Bond? Contractors or vendors needing access to customs security areas in federal airports must obtain this bond.

Bond Amount

The bond amount varies based on the number of employees and may include liquidated damages in certain cases.

Guarantees

  • Compliance with badge requirements
  • Return of badges
  • Completion of necessary background checks

ATA Carnet Bonds

What is a Carnet? An ATA Carnet is an international import document allowing goods to enter the U.S. duty-free and tax-free, provided they are re-exported within 12 months.

Who Needs This Bond? This bond is used for items like trade show vehicles or museum exhibits, with certain exceptions for consumables or items for resale.

Bond Amount

Typically a fixed percentage of the value of the goods, though specific circumstances may require a higher percentage.

Guarantees

  • Temporary entry and re-exportation within the allotted time
  • Payment of duties and fines if conditions are not met

Drawback Bonds (Single or Continuous)

What is a Drawback Bond? A drawback bond secures a refund for duties paid on goods that are re-exported.

Who Needs This Bond? Entities seeking accelerated duty refunds, which normally take up to a year but can be expedited to 2-3 months with a bond.

Bond Amount

The bond amount equals 100% of the drawback claim.

Guarantees

  • Payment of any excess refunds received from the government

Custodians of Bonded Merchandise Bonds

Who Needs This Bond? Warehouses or transporters holding merchandise pending customs clearance are required to secure this bond.

Bond Amount

Set by CBP based on the size and type of the warehouse or transport operation.

Guarantees

  • Compliance with CBP regulations
  • Proper record-keeping and secure storage
  • Authorized transportation

Public Gauger Bonds

What is a Public Gauger Bond? Public gaugers, who measure or test merchandise for CBP, must obtain this bond to be approved for customs work.

Bond Amount

Varies based on the number of testing sites.

Guarantees

  • Compliance with customs regulations and standards

International Carrier Bonds

Who Needs This Bond? International carriers, such as airlines or steamships transporting cargo or passengers from abroad to the U.S., may require this bond.

Bond Amount

Varies depending on the risk associated with the cargo.

Guarantees

  • Payment of fees
  • Safeguarding of merchandise

Instruments of International Traffic Bonds

Who Needs This Bond? These bonds are used to cover the movement and clearance of containers and similar items internationally.

Bond Amount

Fixed at $20,000, though higher amounts may be set by the district director as needed.

Guarantees

  • Prompt reporting of diversions
  • Accurate record-keeping
  • Payment of duties
  • Proper marking of containers

Understanding and securing the appropriate customs bonds is crucial for smooth and compliant international trade operations.


How do I get a Surety Bond?

Surety bonds are issued by Merchants Bonding Company (Mutual) through insurance agents. Contact your local insurance agent or use our Find an Agent tool. They will guide you through the process, informing you of what documents and information are needed by the surety (Merchants Bonding Company (Mutual)) to underwrite your bond.

What is a Surety Bond?

A surety bond is a three-party agreement that ensures the fulfillment of a commitment or contract. For instance, the surety (Merchants Bonding Company (Mutual)) may provide a surety bond to a construction company (the principal) which is required by the state (the obligee), ensuring the construction company will perform the duties as outlined in the contract. In bonding the construction company, Merchants assumes the risk should the company default or not fulfill their contract. A surety bond is different from traditional insurance in that the principal is obligated to pay back the surety company on any claims paid out.

All information provided is subject to change.