The world of importing and exporting is one of the most important and confusing parts of the United States. While there’s a need to expedite the importing and exporting process to ensure people and companies get their goods on time, there are also countless hoops you need to jump through and protocols you need to follow. This includes custom bonds.
RM Customhouse Brokers, Inc. in El Paso is here to assist you with your importing and exporting needs. To learn more about our services, contact us online or call (915) 564-0582 today.
What is a Customs Bond?
Custom bonds are a type of surety bond that essentially serves as a three-way contract or agreement between various parties involved in the importing process. These three entities are the principal, the surety company, and the U.S. Customs and Border Protection agency (CBP).
The principal is normally the person or company importing or shipping the good, while the surety company is the entity that insures the transaction and issues the bond. The purpose of the customs bond is to guarantee that the importer or exporter will pay all the necessary fees, taxes, and duties to CBP on time and in full.
Depending on what you’re importing, you cannot complete the transaction unless you have a custom bond.
Different Types of Customs Bonds
Generally speaking, there are two types of customs bonds to choose from, including:
- Single-Entry Bonds
If you’re not a full-time importer and are only importing one good from a country, a single-entry bond is all you need. You can typically purchase up to three single-entry bonds per year, but we recommend purchasing an annual continuous bond for more than three imports.
- Continuous Bonds
If you plan to import goods into the U.S. on a regular basis, we recommend a continuous bond.
When is a Customs Bond Required?
Because customs bonds aren’t free, you’re probably wondering if you can bypass them in order to save money. While that’s possible in certain circumstances, custom bonds are required in the following instances:
- You’re importing, and your goods are valued at more than $2,500.
- You’re importing firearms or food.
- Your goods are subject to restrictions and requirements from other U.S. agencies, such as the EPA or FDA.
If you are required to have custom bonds and fail to secure one, your shipment will be subject to delays. You will also likely face a hefty fine from CBP, which will almost always exceed what it would have cost to purchase a customs bond.
Protect Yourself With Custom Bonds Today
If you are importing goods and require a custom bond, RM Customhouse is here to help. While we’re located in El Paso, we import and export goods from all around the world and can serve customers throughout the United States. Call (915) 564-0582 today.
