What Is a Customs Bond
A customs bond is an agreement that ensures companies adhere to customs procedures and allows Customs and Border Protection to collect fees if the deal is not upheld. These bonds are typically held through insurance and surety companies.
Who’s Involved in a Customs Bond?
There are three parties involved with these agreements:
- Company issuing the bond
- Principal (the persons required to file the bond)
- Customs and Border Protection (CBP)
The principal is responsible for initiating the bond and finding the issuing company. Should the principal not fulfill their obligations, the company will be responsible for covering CBP fees.
Are There Different Kinds of Bonds?
There are a number of bond options available depending on the needs of the situation. Commonly used bonds include:
- Import bond
- Drawback bond
- Custodian bond
- Intl carrier
- Foreign trade zone
Many of these are dependent on what kind of transport and shipments you will be bringing into the country.
Customs bonds ensure that if the principal does not pay the appropriate taxes and fees for imports, the CBP can collect what is legally due to them. However, should the principal fail to comply they may be responsible for repaying the bond to the issuing company. Check with your local bond professional to learn more about the process.