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■ Customs Bond
It is necessary to comprehend customs bond before getting across customs clearance of the United States. Several systems for ensuring national revenue exist in other countries however, customs bonds are used specially for quick customs clearance and revenue guarantee of the country.
☉ Concept and Purpose
The characteristic of entry is that imported goods are released prior to tax payment as entry and tax declaration are separatedinto two phases.
A bond shall be posted with customs to cover any potential duties, taxes and charges that may accrue when importers transact entry.
In other words, for clear entries, importers shall present customs bond with the amount of duties, taxes and charge that may accrue to CBP.
Bonds are a guarantee from the surety company, if an importer fails to implement tax payment, the relevant Bond Company will assume the same duties and responsibility of the importer.
☉ Types and amount
Types of customs bond are Single Entry Bond andContinuous Bond. Single Entry Bond covers one import entry.Continuous Transaction Bonds cover all import transactions at all U.S. ports within one year from the date the bond is approved and effective.
The amount of bond is determined by port director at the port of entryin accordance with property of imported shipment, property of imported goods, tariff, the estimated amount of annual pay, history record, guarantee conditions, etc.
☉ Application of Bond
ㅇ customs bond shall be presented when the imported shipment exceeds $2500. Below three kinds of item could be used as customs bond. ①Bond issued from surety companies that licensed by The U.S. Department of Treasury ②U.S. currency ③pecific U.S. government bonds or Treasury bills.
ㅇ Many Customs brokers are also agents for sureties and sell bonds. When not entrusted, some customs brokers do not sell customs bond as well.
ㅇ Customs bonds can be obtained through a surety company licensed by the Treasury department with payment of guarantee fee. A customs broker uses his/her own bond to make entry, when entrusted by importers.
Guarantee fee is not the total amount of bond. Guarantee fee is about 3.5% of the amount of bond for Single Entry Bond and about 1% of the amount of bond for Continuous Transaction Bonds. The payment of guarantee fee shall never be refunded.
ㅇ when importers fail to assume tax payment by the designated period, both importers and guarantee will receive Notice of Liquidated Damages Incurred and Demand for Payment. If the importer does not respond to the notice, the relevant payment is deducted from customs bond.
