Do you need a customs bond is an important question to ask when importing into the US. The short answer is yes; however, it depends on the cargo. In particular, it depends on the shipment value, with customs bonds starting for commercial shipments over $2500. Shipments valued under $2500 do not require customs bonds if they qualify as informal entries. Exceptions include imports that are regulated by Partner Government Agencies (PGAs). Some PGAs include the Food and Drug Administration (FDA), Environmental Protection Agency (EPA), and the United States Department of Agriculture (USDA). While you may not think about it when importing into the US, it is an important contract to understand.
What Is A Customs Bond?
A customs bond is an agreement between three parties that ensures an importer meets certain obligations to US Customs and Border Protection (CBP). The parties involved in this agreement include:
- The Principal: The importer bringing the goods into the country.
- The Obligee: The government agency enforcing import regulations. In the US, it is the CBP.
- The Surety: The bonding company that issues the customs bond and is responsible for paying the government if the importer defaults.
Importers should be aware of two types of bonds: a Single-Entry bond (SEB) and a Continuous Bond. A Single-Entry bond is for a single import at a single port of entry, while a Continuous Bond is for multiple imports at any US port for 12 months.
Do You Need A Customs Bond?
As mentioned in the article, whether you need a customs bond depends on the cargo type. If you are importing goods valued at over $2500 or regulated by specific government agencies, then yes. They protect the US Treasury if the importer does not pay the required duties and taxes. Failure to pay the bond can result in CBP putting the importer on a sanctions list. This could result in CBP blocking future entry approvals. Failure to pay may also lead to customs holding your cargo and a penalty fee that the importer must pay.
When importing into the US, you must understand the documentation requirements for customs clearance. Noncompliance can cause disruptions that may affect the entire supply chain. A great way to ensure smooth clearance is to speak with a customs broker like Customs Made Easy. Customs brokers act as intermediaries between the importer and US Customs and Border Protection (CBP). They submit the required documents and payments to CBP on the importer’s behalf. Brokers also help with paperwork, file entries, calculate duties, provide consultation services, and more. Contact us at 305-506-1348 or info@customsmadeeasy.com to start importing from anywhere in the world. We also have assistance in Spanish.
