Understanding Customs Bonds in Connection with Imports and Importers of Record (IOR) Services
If you are importing anything into the US, then you eventually have to deal with customs bonds. They are actually the guarantees and securities that an importer or an Importer of Record (IOR) / Importers of Record (IOR) service will comply with the rules that govern the shipping of any given commodity. Moreover, they are also the security bond for the payments of all duties and taxes.
Different Types of Customs Bonds used by Importers of Record (IOR)
If you are new to the import/export world on the seaports of the US, then you must have the knowledge regarding different customs bonds used by private shippers and professional Importers of Record (IOR) services.
Single Transaction Bond: For Individual Importers
If you want to import any commodity into the US for just one time, then you have to present the security of your legitimacy to the Customs and Border Protection through a Single Transaction Bond. It is also known as Single Entry Bond. This type of bond remains valid for a single customs entry on every US port. IOR services usually don’t work with single transaction bonds.
Continuous Bond: For Regular Importers and IOR Services
As the name suggests, this bond covers all the shipments undertaken by an importer or IOR service at every port of entry in the US. The most used continuous Import Bond is called ‘Activity Code 1’. It provides the coverage of $50,000 and remains valid for 12 months after its issuance.
Instances When Additional Information Is Required with Customs Bonds
There are some cases where importers and Importer of Record (IOR) services might need to tag some information to regular bonds to keep their validity. Following are those instances where bond providers ask IOR services for that additional information.
- When IOR services are handling something that is subjected to antidumping or countervailing taxes
- When the shipping goods are required to meet FDA compliances
- There exists a past claim related to the commodity in question
- An importer also needs to work to present modified bonds if is working as a foreign Importer of Record (IOR).
- The underwriting requirements also change when the amount of bond exceeds $50,000 mark.
If you are not able to comprehend customs bond requirements needed for importing goods into the US, then get the services of a seasoned IOR service. They will ship every sort of your consignment while taking care of the customs requirement pertaining to that shipment.