Growth in Shipping Feeds Need for Custom Bonds
“What’s that strange thing?” a child asked her mother in the grocery store, pointing at an oddly shaped item in the produce section. Herself unsure of what it was, the mom picked up one of the ridged, star-shaped things for closer inspection. “It’s called a star fruit and it comes from Sri Lanka,” said the mom, reading the label next to the star-shaped fruit. Star fruit (also known as carambola) is a tropical fruit that has become commonplace in many local markets these days, but years ago was relegated to ethnic, or high-end grocers specializing in exotic foods from around the world. The fact that you can get a star fruit or plenty of other previously niche items readily speaks to the reality that the world has shrunk, in a sense, and the international marketplace has become increasingly dynamic in the last few decades particularly, let alone the last century. As a result, the need for custom bonds surety products has skyrocketed, as retailers located here seek to send products over there, and vice versa.
These are contracts between the principal (the importer), the company providing the surety, and the obligee, that are provided to ensure the performance of an obligation that has been imposed by a law or a regulation. Their primary purpose: to guarantee payment of taxes and import duty fees, and to ensure compliance with regulations and laws concerning importation of shipments from foreign points of origin into the United States. These instruments are required in order to secure the transaction if you intend to import more than $2,500 in goods for commercial purposes to the U.S.
Turn to a professional before you ship
When it comes to transportation and logistics providers, the expert advice they need regarding cargo and transportation-related liability insurance requires that they seek out an agency that has years of experience and industry knowledge to draw upon. A professional insurance agent can help construct a custom bonds surety program and provide guidance that can save you money-for example, analyze your import frequency and variety of shipping locations to determine whether single-entry or continuous bonds are more suitable-as well as provide risk management and information about industry-specific trends and developments. Contact an agent today to learn more.