US Customs Bond
A customs bond is required by Customs and Border Protection (CBP) to guarantee a principal's obligations under a specific "Activity Code". An importer of goods, bonded warehouse, international air or maritime carrier and security zone access activities are examples of the regulated activities. Read more about these below.
CUSTOMS ACTIVITY CODE 1 - IMPORTER OR BROKER
Deployed by an importer of merchandise to guarantee to the government that duty is paid in the proper amount, and that the goods imported are in compliance with the laws of the United States.
Offered on a 'Continuous' basis only - 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.
CUSTOMS ACTIVITY CODE 1A - DRAWBACK PAYMENT REFUNDS
Used to secure a demand for refund on duties previously paid on imported goods which have been exported. An exporter may claim drawback under either exporter's summary or accelerated payment.
CUSTOMS ACTIVITY CODE 2 - CUSTODIAN OF BONDED MERCHANDISE
Covers ops. which carry or hold merchandise not yet entered into the commerce of the United States, for export or entry at a later time or place; also known as "Bonded Merchandise." Operations such as bonded warehouses, cartmen, carriers, container stations are covered under this activity. Also, importers carrying their own bonded merchandise would be required to obtain this coverage.
CUSTOMS ACTIVITY CODE 3 - INTERNATIONAL CARRIER
The bond ensures that operators of ships, airlines and other conveyors of international merchandise properly manifest the goods they are carrying, pay for overtime services, and comply with other Customs regulations related to the clearance of the vessel.
CUSTOMS ACTIVITY CODE 3a - INSTRUMENTS OF INTERNATIONAL TRAFFIC
Covers the movements and clearances of containers which move internationally. Without this provision each container moved into the United States would have to be entered and duty paid upon entry.
CUSTOMS ACTIVITY CODE 4 - FOREIGN TRADE ZONE
A FTZ is considered non U.S. territory for Customs' purposes and foreign goods placed into the FTZ may be manufactured, manipulated, repacked or exported without paying duties. The continuous FTZ bond has been amended to secure Importer Security Filing.
CUSTOMS ACTIVITY CODE 11 - AIRPORT SECURITY BOND
Required of outsourced service companies to enter secured areas of airports (like cleaning services not employed by the airlines to clean planes or maintenance individuals not employed by the airlines to fix something).
In order to provide a quote your customs surety bond need we generally need the following:
- Customs Bond Application
- Credit Release Form
- CBP Issued Identification Number
- Owner's Personal Financial Statement
- Applicant's Business Financial Statement
You may submit the surety bond application materials to Underwriting@SuretyOne.com for immediate review of your request. Applicants that may not meet the financial and credit requirements for bonding can obtain the customs bond through our non-standard program.
