A customs bond is a financial guarantee that specified customs duties, taxes, penalties and compliance obligations will be satisfied. Depending on the jurisdiction, an importer, carrier or other party may obtain the bond from a surety as a condition of a customs procedure.
What does a customs bond cover?
- Payment of assessed duties and taxes
- Compliance with entry and release requirements
- Movement or storage of goods under customs control
- Redelivery or export when customs requires it
- Other obligations stated in the bond conditions
How is a bond amount determined?
Rules vary by country and bond type. If an illustrative authority requires security equal to 10% of expected annual duties and taxes of $600,000, the calculated amount would be $600,000 × 10% = $60,000, subject to statutory minimums, rounding and risk adjustments.
Continuous vs. single-transaction bond
A continuous bond covers eligible activity over a defined period. A single-transaction bond covers one entry or movement. Volume, frequency and procedure determine which form may be suitable and permitted.
What does a bond not do?
A bond does not replace the importer’s compliance responsibility or pay duty automatically. If the surety pays a valid claim, it may seek reimbursement under the bond agreement.
