By 
Having the knowledge of customs bonds and how they work can help establish a safer relationship between you and your customs broker because these bonds are an integral part of the importing and exporting community. They are actually an essential part of international marketing and trade but a lot of people are not acquainted with their functionality. It is an import requirement, a contract or some sort of insurance that ensures that your duties are paid. However, there are certain things reputable customs brokers have always emphasized that every importer or exporter should know because it will assist them in their business relations. You can search for Amazon fba freight forwarder ClearitUSA to see the full list.
#1: The fact that you have a customs bond doesn’t mean you’re completely covered
Technically, they serve as insurance but their functions are unique. Three parties are involved- the customs themselves (CBP), an importer or principal and then a surety. The principal has financial responsibilities to the customs agency which is guaranteed to be fulfilled if not, the surety owns this responsibility at least up to a particular liability baseline.
#2: It is mandatory
Insurance isn’t always thought to be a mandatory requirement, especially for trade-related endeavors. However, for import and export trade, it is not an option; a valid custom bond is required to bring in goods beyond the port.
#3: You don’t have to renew continuous custom bonds
There are basically two types of customs bonds, a single transaction which is acquired for single transactions and continuous custom bonds which do not expire. The continuous bond once validated by the Customs and Border Protection (CBP) will remain valid until one of the three parties terminates it. Customs brokers and surety agencies now like to send bills and statements on a yearly basis which makes the idea of a continuous bond particularly helpful especially for a large volume of shipments.
#4: A surety can sell you a customs bond directly
Most times, purchasing customs bonds is usually done through legitimate Customs brokers and authorized freight forwarders, however, it can also be acquired through a surety agency as some of them directly provide this service to their clients. The advantage of this is that it is usually more cost effective and time-saving.
#5: It’s possible that you have a continuous bond already
There are a lot of things clients do not know which includes the fact that they most likely already have a continuous bond if they frequently import goods. This should feature in your invoice, which means you have a functioning bond that saves the cost of acquiring other bonds.
Comments