What Is a Customs Clearance Bond?

What Is a Customs Clearance Bond?

Customs clearance bond

If you import goods into the United States, you’ll likely need some type of customs bond to ensure you can get through Customs and Border Protection without a hitch.

What Is a Customs Clearance Bond?

A customs clearance bond involves three participating parties:

Principal: This person will be the one bringing goods into the country and must take the bond in his or her name.
Issuing company: Typically, insurance and surety companies will deal with these types of bonds.
Customs and Border Protection: The bond protects the CBP if the principal fails to pay appropriate taxes and import fees.

If the principal does not hold up his or her financial obligations, the CBP will be entitled to funds from the bond.

When Is a Bond Required?

You will likely need a customs clearance bond if you are importing products intended for commercial use and valued over $2,500. You may also be required to get a bond if you are importing federally monitored products, such as guns or food. Depending on how often and what you import, you may be able to get by with just one bond or need several.

When you are ready to discuss your bond options, get into touch with your local bonds broker to learn more.