In order to protect the revenue of the United States, Congress has granted authority and power to the Commissioner of CBP to require a customs bond when goods are imported into the United States. If the importer fails to timely pay the duties owed to the government, CBP can assess penalties and fines against the importer, who is backed by the bond issuing company ( i.e. the surety).
A Customs Bond is required for:
- Commercial goods valued at $2,500 or more
- Commercial goods regulated by any Partner Government Agency (PGA) such FDA, EPA, USDA etc.
A single transaction bond is good for one customs entry and the amount of this bond is calculated by adding the value of goods plus any duties, taxes and fees. However, the bond amount cannot be less than $100, unless specified by law or regulation.
A continuous bond or an annual bond is valid for multiple customs entries uptil one year from the date of issuance of the bond. The standard limit of liability for a continuous bond is $50,000 but it can be higher. The amount of continuous bond is calculated based on 12 months of duties, taxes and fees on import transactions multiplied by 10%.
On Time Customs Brokerage is a National Customs Broker that does customs clearance of goods in all U.S ports. Our customers are able to purchase customs bonds through us at competitive rates.