According to U.S. Customs & Border Protection (CBP) regulations, a Customs Bond is “a contract which is given to ensure the performance of an obligation imposed by a law or regulation.” The parties involved in the bond contract are the principal (importer), surety company and obligee (CBP).
The primary purpose of a Customs Bond is to guarantee the payment of import duties and taxes, as well as to assure compliance with all laws and regulations governing the entry of merchandise from foreign shipping points into the United States.
When merchandise is imported into the United States and later exported, a principal may be entitled to a refund of duty – referred to as a drawback claim. There are several types of drawback claims and methods of payment; accelerated drawback being the most common way to be paid. With accelerated drawback, the refund is granted before liquidation of the drawback claim. A Drawback Bond guarantees full repayment to CBP of overpaid drawback as determined by liquidation of the drawback claim.
Foreign Trade Zone Operator Bond
A Foreign-Trade Zone (FTZ) is a designated area within the U.S. located in or near a CBP port of entry, but legally considered to be outside of customs territory for the purpose of tariff laws and entry procedures. FTZs are part of a duty deferral program and are subject to CBP jurisdiction. Generally, payment of duties and excise taxes on foreign merchandise admitted to a zone will be deferred until the goods are transferred from the zone to the customs territory for consumption.
An FTZ operator is required to secure a bond to assure compliance with Customs regulations. The minimum bond amount required by CBP is $50,000. However, the maximum amount is determined by each individual port director and therefore the limits may vary.
Roanoke is a long-time supporter of the National Association of Foreign Trade Zones and offers preferential pricing for surety bonds and insurance to their members.
Turn to Roanoke Trade for Surety Bond Solutions
Insurance, surety and risk management solutions for supply chain and transportation intermediaries are Roanoke Trade’s focus. Contact us at 1-800-ROANOKE (800-762-6653) for more information to find out how we can serve your specific needs.