Surety Bonds and Imports
The importing of goods into a country comes with several requirements. Often the most important requirement is a Customs Clearance Bond. It is required for imported merchandise to clear customs.
The primary reason for this bond is to guarantee compliance with all regulations and laws governing the entry and the payment of taxes and import duties.
Parties to the Bond
The parties that make up the bond contract are the obligee, principal (importer), and surety company. In the United States, U.S. Customs & Border Protection (CBP) is the obligee.
Customs Clearance Bond Features
The bond provides the following agreements:
- Entry will be completed.
- All taxes, duties and charges will be paid on time.
- Product will be redelivered if requested.
- Merchandise will be allowed to be examined.
- All duty-free entry special requirements will be complied with.
- Any non-compliance will be corrected as a condition of admission.
- The United States is exonerated and will be reimbursed.
- Evidence of shipment and documentation will be produced upon request.
Merchandise that has been imported and later exported may entitle the principal to a refund of taxes and duties. This is referred to as a drawback claim. Accelerated drawback is the most frequent form of payment for drawback claims. It refunds the funds before the liquidation of the claim. The Drawback Bond affirms that the CBP will receive full repayment of any overpaid drawbacks as determined by the final liquidation of the claim.