Customs Bonds

Navigating Import Bonds

What is a Customs Bond?

A Customs Bond is a legal contract between a Principal (importer or shipper), a Surety company, and the U.S. Customs and Border Protection (CBP). It guarantees the importer complies with customs regulations, and the CBP is paid for applicable import duties, taxes, fines and penalties.

For cargo imported into the United States, a Customs Bond is required to clear commercial shipments for entry into the U.S. quickly and to avoid costly fines. You’ll also need a Customs Bond if you’re a warehouse or facility operator who wants to store imported or exported goods.

Although Customs Bonds, as defined here, are US-specific, other countries’ relevant customs authorities may require a similar instrument to guarantee the payment of duties. We assist companies in Hong Kong and Internationally to comply with these FMC bond requirements.

Bonds offered

What does a Customs Bond cover?

A Customs Bond ensures that your duties and taxes will be paid. Without a bond, shipments will not be allowed to clear U.S. Customs, which means the importer could face fines and severe delays.

Customs Bonds can be purchased through a Customs Broker, an agent for a Surety licensed and approved by the U.S. Department of the Treasury.

Azure Risk will assist you with the FMC registration process and AMS filing. We streamline the entire Customs Bond application process required for companies in Hong Kong and elsewhere in the Asia Pacific region shipping to the U.S.

When is a Customs Bond required?

A Customs Bond is required to clear customs on commercial goods imported into the U.S. valued over US$2,500 and if the goods are subject to requirements from other U.S. government agencies (i.e. all food items require a bond and must meet FDA requirements). Note that this requirement extends to even duty-free shipments.

When a Customs Bond is required, the CBP will not release your goods until the bond is posted or the taxes and duties have been paid upfront in cash. Once a bond is posted, you can walk away with your goods and have ten days to pay duties.

Types of Customs Bonds

There are two basic types of Customs Bonds:

A single transaction bond (also known as a single-entry bond or SEB), which covers a one-time Customs entry.
A continuous bond (code 1), which covers multiple/ongoing entries made by an importer at all U.S. ports of entry. It’s valid for one year from the date of issue.

Looking for Customs Bonds?

Leverage the experience of Azure Risk

The import customs clearance and customs import bond process can be challenging to master on your own.

Azure Risk’s fast, affordable and straightforward approach to customs bonds and trade compliance means we’ll guide you through every aspect of cross-border shipping.

Get started with our easy application process. In most cases, replacements of existing customs bonds are completed in a 48-hour turnaround. No collateral is required.

We deliver tailored advice to fit our Hong Kong clients’ requirements (such as FMC Bond, Non-USA NVOCC Bond and FMCSA Bond) and ensure they understand the options available to them. Contact us for a free personalized assessment of your policy needs.

We welcome applications from companies of all sizes.