Nowadays, most companies use digital technology to conduct their business, in order to ease processes, and make everything run smoother and faster.
Online digital solutions also save business owners time, money, and effort. For small to medium-sized importers, this is especially important. eezyimport offers them an easy-to-use online customs clearance solution to navigate the challenging world of importing and do so independently, thereby reducing costs.
As part of the eezyflow™ system, importers are required to file their ISF or Entry Summary according to US import regulations and requirements.
One of the requirements is a customs bond, and importers can purchase theirs from eezyimport to file an ISF or Entry.
What is a customs bond?
In short, a customs bond is a required CBP regulation that acts as a financial guarantee between customs, an importer, and a surety company to ensure that importers pay customs all import fees, duties and taxes, or other customs activities.
Why is a customs bond required?
A customs bond is a contract that guarantees that the importer obligations to the CBP for any import transaction will be fulfilled. The fundamental purpose of a customs bond is to ensure that import taxes and fees will be paid.
What types of customs bonds are there?
There are two main types of bonds: a single Entry bond and a continuous bond. A single-entry bond can be used for one shipment only, while a continuous bond is valid for one year and covers all imports (ISF/ Entry) to the US within the year.
Importers can obtain a single entry or a continuous bond, depending on how often they will be importing goods into the US. For in-bond shipments, a continuous bond is the most cost-effective bond to use.
When is a customs bond required?
A customs bond is required when importing Formal shipments with the value of over
2500$, or higher than 250$ for Chinese goods. Also, a customs bond may be required for shipments with a lower value, in case the goods the shipment contains are subjected to US government agency requirements.
How does a customs bond work?
The customs bond is usually acquired from a customs broker or purchased directly from a surety licensed by the US Treasury Dept. The bond guarantees that CBP will accumulate all import taxes, duties, fines, and penalties from the importer’s surety company if they cannot be collected from the importer. Importers can obtain a single entry or a continuous bond, depending on how often they will be importing goods into the US. For regular imports that go through several ports of entry, a continuous bond is the most useful and economically viable.
Who needs a customs bond?
A customs bond is required for anyone importing A formal shipment into the US.
What is customs bond insurance?
A customs bond works as a surety just as an insurance policy does. It covers customs-related costs up to the value of the bond and gives government agencies an assurance that you can fulfill all your financial responsibilities related to the shipment.
What is customs bond renewal?
After getting your first customs bond, you need to renew it every year on the same date of its inception. The renewal process gives the importer and the surety a chance to review the bond and decide if any adjustments should be made.
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