An Importer’s Bond Requirement

Posting a bond with US Customs is part of the process of entering the goods into the U.S., just as paying duties are. The bond is intended to cover any potential duties, taxes or charges that may accrue with an importation, and can be obtained through a surety company. A “single entry bond” can be used for the entry of a single importation, or for larger commercial importers that import more frequently, a “continuous bond” may be obtained.

Depending on the nature of the product being imported, certain requirements such as a specific license, must accompany it. Often times, other U.S. agencies will require that certain paperwork is included with the entry documentation, such as a Lacey Act declaration for certain wood products, or there will be a requirement that certain information is provided to it in advance of an importation, such as the FDA’s requirement to give advance notice of an imported food’s arrival into the U.S. under what is commonly known as the Bioterrorism Act of 2002. US Customs works together with these other agencies to ensure that all rules are met. When they are not, penalties may be assessed against violators.

US Customs has the ability to request that goods be redelivered to the port for an inspection or some other reason well after an importer has received the goods in the U.S. Therefore, for purposes of full compliance with its regulations and requests, US Customs requires the posting of a bond. Keep in mind that in the event a request is not complied with by an importer, such as goods cannot be returned to the port, there is a good chance that penalties will be assessed. In the event an importer does not pay the penalty, the bond serves as a guarantee that the penalties will be paid (through the surety company).

Bond issues can be confusing and complicated to the novice and even more experienced importers. If you have any questions about bonds, feel free to contact me at clark.deanna@gmail.com.