What are Customs Bonds?
Customs Bonds are required by US Customs to safeguard the financial liabilities and interests of the United States in the event of any claims if issued to the importer due to non compliance, such as late ISF Filing.
ISF Bonds is the bond of choice for single shipment filing and for importers with low import activity or who import only once.
Customs Bond Types
1. ISF Bond - Single use bond for U.S. Customs which covers singe ISF Filing. Guarantees $10,000 of ISF penalty limit for ISF non compliance. Used for Importers which do not possess Continuous Bond.
2. Single Entry Bond - SEB bond is used for customs clearance. Not to be confused with ISF Bond.
3. Continuous Bond - Continuous bonds are used for businesses with heavy import activity. The cost of C Bond is not recommended for low volume importers due to the higher upfront costs to purchase.
Custom Bond Value Determination
Single Transaction – Bond is usually completed for either an amount equal to the value of the merchandise plus the duty, taxes and other fees or, for certain merchandise as determined by U.S. Customs, an amount equal to three (3) times the value of the merchandise.
Continuous Bond – Bond amount is usually equal to 10% of the duty and other import taxes paid in the previous year, in multiples of $10,000 if the duties are less than $1,000,000 or multiples of $100,000 if the duties are over $1,000,000. Currently, the minimum bond amount required by U.S. Customs is $50,000. Further, care should be taken to insure that the bond is sufficient to cover the duty, not the value, on any single shipment of merchandise.
Obtain Peace of Mind with Late ISF Penalty Protection
Protect your business and personal finances from any late ISF filing penalties which may be issued by US Customs with the purchase of Late ISF Penalty Protection. For $25, importers can take the liability of late ISF penalties issued by U.S. Customs which our surety providers will cover the full amount in the event if you are liable.