Q. What is a U.S. Customs import bond?

A.

Canadian-based companies that ship goods over the U.S./Canadian border, and maintain control of the goods either themselves or through their agents, are considered to be “importing” goods into the United States. As the consignee/owner/recipient of the goods on the United States side of the border, the Canadian-based company is responsible to file an import bond with U.S. Customs and Border Protection.

Q. If I am a Canadian Based Company, then why do I need a U.S. Customs Bond?

Trade Risk Guaranty is proud to serve many Canadian Based Companies. We know that your shipments are very important to you and we have created this page with lots of helpful tips for importing!

A.

All U.S. Customs bonds are financial guarantees between 3 parties: the Insurance/Surety company issuing the bond, the Principal (who is required to file the bond), and Customs & Border Protection (CBP). The bond guarantees Customs & Border Protection that if they can not collect monies due from the Principal they can seek remedy, up to the bond amount, from the Insurance/Surety company. The bond also indemnifies the Insurance/ Surety company, allowing them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal’s behalf.

Q. Do I still need a Customs broker if I purchase the bond from TRG?

A. TRG does not replace your broker, we just provide the bond directly, which in most cases, will save you money.

Q. I’ve sent goods to the U.S. before; do I already have a bond?

A.

You might not know if you have a bond on file, as it is usually just a line item on your statement from your broker. If you provide TRG with your U.S. Customs Assigned Importer Number we can run a “bond query” through the U.S. Customs database in order to determine if you have a bond and when your bond renews annually.

Q. I’ve never sent goods to the U.S. before; what is the procedure to get this bond?

Canadian-based companies that are bringing goods over the border for the first time must first apply for a U.S. Customs assigned “Importer Number” by filing a 5106 form. TRG will do this for you at no additional charge if you purchase the import bond from us as well. Next, upon underwriting approval of a completed import bond application, TRG will file the continuous bond for you expediently and accurately, allowing you to be functional at the very earliest time possible.

A.