IMPORTER BONDS
Insuring the US Taxpayer is not liable for negligent importers
WHAT IS A CUSTOMS IMPORT BOND?
A customs import bond is a financial guarantee between the surety issuing the bond, the importer of record, and US Customs. CBP requires all importers post an import bond in order to clear their entries, even if the goods are duty free. The import bond guarantees all import duties, taxes, fines or penalties are paid either from the importer or from the surety who issued the customs bond.
COMMON TYPES OF BONDS
The 3 most common types of bonds are the Continuous Transaction Bond (CTB), the Single Transaction Bond (STB), and the ISF Bond. If a continuous bond is used, it covers the
importer for ISF liability as well. In most cases, if a company imports more than 3 times per year the continuous bond is the most cost-effective tool. In the case of high value imports, the CTB could be more cost effective on the first shipment due to how the bond amounts are calculated
Continuous
Continuous Transaction Bond is a self-renewing 12-month term importer entry bond, which covers all Customs transactions through all US ports of entry. Additionally, the CTB satisfies the ISF bonding requirements for ocean shipments. The bond liability amount is 10% of duties, fees, and taxes paid by an importer during the last calendar year. The minimum continuous bond amount is $50,000. This customs bond is valid until it is terminated by the principal or the surety
Single
Single Transaction Bond is a one-time importer entry bond for a particular shipment, meaning it can only be used one time at a specific port of entry. The bond amount for a single transaction bond is equal to the total entered value of the merchandise plus all duties, taxes, and fees. However, if the merchandise is subject to other government agency requirements or visa/quota requirements, the customs bond amount would be equal to three times duty,
taxes, and fees. The STB does not satisfy CBP ISF bonding requirements for ocean shipments.
ISF
Importer Security Filing Bond is a single transaction fixed amount liability bond used for ocean shipments when the importer does not hold a continuous bond. The ISF bond is used to cover penalties that can be issued for failure to file ISF timely or accurately. The ISF bond is only needed if the importer is using Single Transaction Import Bonds and the freight is moving by water.