When a company imports cargo into the United States, there are certain obligations that the company must follow as insurance. One obligation is a Customs bond. Typically, the Customs bond is a requirement from US Customs for importers. It is paid as a form of security to make sure that taxes, duties and other applicable fees are paid. Some shipping companies may or may not include the cost of a Customs Bond when you receive an ocean freight shipping quote.
One type of Customs Bond that an importer can obtain is called a continuous bond. Essentially, the Continuous Bond is an annual bond that covers shipments over the course of a year. It is a good thing to have for businesses that import throughout the year. The minimum amount for a continuous bond is $50,000 or 10% of taxes/fees paid during the previous year (which ever is higher).
While a continuous bond might seem like another costly shipping expense, it turns out that it might be able to save a business money. Certain Customs brokers can offer a special type of continuous bond that will allow your business to track the status of your imports through special alerts. Without these alerts, a business can lose time and money. With the alerts, a business can check the duties paid and any US Customs penalties. This will save a business time and money.
Discuss with your logistics provider the possibilities of how a Customs bond can save your business money if you get the right one.