what is a customs bond

A customs bond is a contract between three parties: Customs, a principal (usually an importer), and a surety. The bond ensures that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the principal. A customs bond is required to import into the US as per US Customs regulations, and an importer should obtain a bond through a reputable and reliable company. Customs bonds are available as single-entry bonds, which cover individual shipments, or as annual/continuous customs bonds, which cover all shipments over a 12-month period. The CBP requires that virtually all commercial imports are bonded, either with a single-entry customs bond or a continuous customs bond. The bond amount depends on the type of bond and the value of the merchandise being imported. If an importer does not obtain a bond, shipments will not be allowed to clear US Customs, which means the importer could face fines and severe delays. Customs bonds can be purchased through a customs broker who is an agent for a surety that is licensed and approved by the US Department of the Treasury.