What are Custom Bonds?
A customs bond is a contract used to guarantee that a specific obligation will be fulfilled or completed between customs and an importer for any import transactions. Its main purpose is to guarantee the payment of import duties and taxes. The U.S. Customs and Border Protection requires that all import shipments be accompanied by customs bonds.
What is an Annual Bond?
An annual bond is a $50,000 bond, which is valid for 1 year. It is attached to a company's tax ID/EIN number and can be reused throughout the year for multiple imports. Additionally, an annual bond is not a broker or forwarder specific bond, so in the case that you switch brokers, the bond will not be affected and can still be used.
What is a Single Entry bond?
Single entry bonds or SEB’s are bonds that are only valid for 1 shipment and are based on the value of the goods that are being shipped. These bonds are generally used by one-time importers and tend to be scrutinized more by U.S. Customs and Border Protection Services. Most companies will not issue SEB’s more than 3 times a year.
How much do Single Entry Bonds cost?
The cost of single entry bonds or SEB’s vary, depending on the mode of transportation. The minimum cost for SEB is $65 when shipped by air, and $140 when shipped by ocean.
Ocean shipments, for example, require 2 separate bonds (ISF Bond and Entry Bond).