What Is The Importance of Bonds to Import and Export Goods?
If you are a maritime importer or exporter then you might probably hear about customs bonds. They are in effect for so many years, especially in United States. To import goods in US it has been made mandatory by the US Customs and Border Protection (CBP) to occupy a customs bonds. Bonds have significant importance for shippers and carriers to allow their merchandise through ocean. There are many types of 301 customs bond like Continuous Customs Bond, Single Entry Bonds and OTI Bonds. There is a series of reasons to know about customs surety bond if you associated with import and export business. What is Customs Bond? To get it easily, a 301 Customs Bond is a kind of insurance policy between the customs broker, importer and oblige (CBP). It is to ensure that the duties and taxes would be paid by the principal (importer) and if he fails to pay any mandatory expensed or do violation of regulations, the third party (broker) would be responsible for the amount of penalty.