U.S. Customs Activity Code 1 Single Transaction Importer Bond (up to $50,000)
What Is an Activity Code 1 Importer Customs Bond?
A customs bond, also called an import bond, is a contract ensuring that all import duties, taxes, fines or penalties are collected during the course of importing. The U.S. Customs Activity Code 1 Importer Bond is necessary even if the item is tax free duty free. Essentially, the customs bond guarantees that the U.S. Customs & Border Protection will be paid if a regulated or legally required act is not performed as required.
A customs bond's most common function is to allow an importer to take prompt possession of its imported goods without having to wait for all of the Customs & Border Protection regulations and formalities.
Another typical usage of a customs bond allows a carrier to transfer goods that are bonded from one place to another, even if those goods are not yet processed through with duties paid.
Who Needs A Customs Bond?
Every party that imports products into the U.S. for commercial reasons, or that transports or carries imported goods through the U.S., must have a customs bond in place.
The parties who need to get a customs bond can be importers of goods, transporters of goods, brokers, foreign trade zone operators, bonded warehouse proprietors, or other parties that engage in business with the U.S. Customs & Border Protection.
The beneficiary of the import bond is always the U.S. Customs & Border Protection.
What Are The Different Types of Customs Bonds?
There are two main types of customs bonds: Continuous Transaction Bonds and Single Entry Bonds.
Continuous Transaction Bonds are normally acquired by importers who import frequently throughout several ports during any given year. These bonds might also be obtained by international transporters who are frequently arriving and leaving the U.S. Customs & Border Protection territory, or by overseers of goods who engage in business with the U.S. Customs & Border Protection regularly. These types of bonds have a one year term, are automatically renewed each year and are valid until terminated by either the issuing company or by the party who acquired the bond.
The other type of bond, a Single Entry Bond, is more appropriate for a single shipment of imported goods and covers only the single transaction or entry for which the bond was written.
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Novus Bonds offers an U.S. Customs Activity Code 1 Single Transaction Importer Bond with a 99% approval rate.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The U.S. Customs Activity Code 1 Single Transaction Importer Bond holds you accountable for your business decisions. By possessing an U.S. Customs Activity Code 1 Single Transaction Importer Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.