What is a Customs Import Bond?
Most
Customs bonds filed are Activity Code 1 - Import Bonds. Customs & Border Protection (CBP) requires all importers to file an Import Bond in order to clear their entries, even if the goods are “duty free”. The Import Bond guarantees CBP they will collect all import duties, taxes, fines or penalties, if not from the importer then from the insurance/surety company who issued the bond. In addition, the bond indemnifies the insurance/surety company, allowing the insurance/surety company to make any legal attempt to recover from the importer all monies that were paid on the importer’s behalf.
TRG writes all sizes of continuous import bonds and offers them
directly to the importer at a low cost.
Multi-year pricing options are available through TRG. The 3 year billing cycle is the most popular import bond structure.
What size of a Customs Import Bond do I need?
Unless stated otherwise by CBP, importers can use this formula to determine the proper Continuous Import Bond to file:
Estimated Annual Duties and Taxes x 10%
The minimum Continuous Import Bond amount accepted by CBP is $50,000. Therefore, if an importer expects to pay between $0 and $500,000 per year in duties and taxes, they would file the minimum Continuous Import Bond of $50,000.
TRG only writes Continuous Customs bonds.
An importer may file a “Single Entry” Import Bond or a “Continuous” Import Bond. Single Entry Import Bonds only cover one named entry. Continuous Import Bonds are filed and remain in effect continuously, covering all of an importer’s entries, and guaranteeing the payments of duties/taxes, up to the face value of the bond for each 12 month period. TRG only writes Continuous Import Bonds as they are significantly more cost effective than single entry bonds in the vast majority of situations.