How Do You Get a 301 Customs Bond?

If you are a trader and new to importing goods from foreign countries into the United States, there are many requirements, regulations, restrictions involved which you have to remember and comply with. The supply chain has become more complex than ever that involves several activities including freight forwarding, customs documentation, clearance, vessel unloading, and retention. When importing goods into the US for commercial purpose, Customs and Border Protection (CBP) agency require you to obtain certain documents including 301 customs bond.

It is still a matter of concern for many shippers to understand the process of clearance of goods when it’s reached the destination port. However, they always have an easy option to hire a freight forwarding company which settles most of the headache of the process. A customs broker is a key person who is licensed to prepare crucial import documents and submit them to CBP prior to the shipment.

Customs Brokers

There are many customs brokers and agencies you can find on the internet that provide assistance to importers and carriers. They understand the intricate freight transportation and international shipping terms and can offer you quick, risk-free, and economic. Before hiring a broker/brokerage firm, you must ensure that it has acquired a valid license from the U.S. Department of Treasury.

Obtaining Customs Bonds

There are several types of customs surety bond required by the CBP. In which, the most common types are C-1 continuous import bond and single entry bond. These bonds are to ensure the CBP that it is able to collect all import duties, taxes, fines, and penalties from the insurance company/bond issuer/surety company if the importer fails to pay them timely. Additionally, the surety or insurance company can collect all monies legally from the importers that are already being paid to the CBP on behalf of them.

Obtaining a 301 Customs bond is not an easy process if you prefer to obtain it yourself. If the commercial value of your cargo is exceeding $2,500 or the products and items you’re importing subjected to federal regulations, you will definitely need to have a customs surety bond. It’s better to find a trusted surety company that can help you in preparing and purchasing the bond. The application for a bond is submitted through a CBP Form 301 in which you have to fill the description of goods being imported, bond type, the value of goods, payment of duties/taxes paid in the previous year, and more.

Your broker will help file the continuous import bond on behalf of you at the right port while a single entry bond should be submitted exactly at the port where the entry is expected to be made.
You should contact to insurance brokers to decide the right type of bond for you. They will guide you throughout the process and provide you cost-effective solutions.

Comments

Post a Comment

Popular posts from this blog

Why Do Traders Need Customs Surety Bond?

Image
Are you a trader who wants to know more about customs surety bond ? You have probably heard of sales tax obligations, government bonds, and other trading conditions, but you still need to know important facts about customs bond. The truth is that a bond cannot bring you any dollar income, but it can save your negotiation from confusion. There are certain conditions when publishing these obligations. If you do not receive adequate security, you and your goods may encounter problems. Let's dive into multiple interpretations.             Since the United States government has taken serious action against the arrival of risk goods in 2003, the procedure for importing goods into US buildings has been tightly regulated. The government had established customs and border protection (CBP) with specific laws. This limited the ability of criminals and prevented them from sending dangerous imports to this part of the world. How does Customs Surety Bond Work? Returning to the m
Read more

What are customs bonds and why you should choose customs surety bond?

Image
The customs bonds can appeal you most if you ship frequently. Customs bonds are simply commitments between customs (U.S Customs and Border Protection – CBP) and the importer which contains important agreements of taxes and import duties . It is kind of contract that fulfills few of the importer’s duties. What are Customs Bonds? If you want to import some goods in US, a customs surety bond is really necessary because it makes the process easy, especially when someone imports goods for commercial purpose. It is government authorized bond that gives you permission to import/export something. There are two types of bonds – Single Entry Customs Bonds and Continuous Import Bond . Without customs bonds, your goods will not be accepted in U.S. Single Entry Customs Bonds Single Entry Bonds or Single Transaction Bonds are the bonds which you can use for only one import shipment. If you plan to import a container with its commercial value in excess $2,500, you would be able to p
Read more

Do you want to purchase OTI Bonds in New York?

Image
There are numerous companies in the US that offer reliable and efficient packaging and freight forwarding services. Most of them keep working on their process to lend wings to their shipping service. While these companies deal with thousands of packages from different locations across the world, they also need to keep in mind the rules and regulations. Of course, OTI Bonds NY is a part of these regulations. The Federal Maritime Commission (FMC) requires all ocean freight forwarders and non-vessel operating common carriers to obtain a license under the Shipping Act of 1984. The purpose of this act was to make the process of common ocean carriage more impartial and to reduce the intervention of government authorities. Any OFF agency in the US that offers the services mentioned in the below points is required to obtain a valid license from FMC and submit proof of financial responsibilities in forms of OTI bonds . ·          Manages cargo movement to international destinations.
Read more