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.

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