Purchasing your surety bond through Deringer ensures that your shipments carry the appropriate bond type and adequate coverage.
Deringer offers coverage on a single transaction basis or importers can purchase an annual surety bond, which is often more cost effective. A continuous bond may allow importers’ shipments to be cleared through US Customs and Border Protection (CBP) with greater ease.
Two types of bonds available:
- Single Entry Bonds (SEB) cover a single import transaction at one port of entry. This option is ideal for companies that typically have less than four imports into the US per year and the goods have a low value. For each shipment, a new SEB needs to be purchased.
- Continuous Bonds cover all of an importer’s shipments, at all US ports of entry, for a complete year. This option is ideal for large volume shippers or for shipments of high value.
The amount of a bond depends on the type of goods involved in the shipment. Typically, for single entry bonds, the bond must be equal to the Customs entered value of the goods. In some cases, the bond amount is required to be much higher than the entered value. For example, goods subject to an antidumping duty (ADD) or countervailing duty (CVD), regulated by Partnering Government Agencies (PGAs), or certain types of entry transactions may require a higher value or even a different bond.
Why is a bond required to import goods?
A party that imports merchandise into the US or transports imported goods through the US (when moving goods in bond) must provide a surety bond (Customs bond) to CBP to assure financial responsibility. The bond protects the US government in the event the importer does not fulfill their financial obligation to pay CBP (e.g., duties, monetary penalties, etc.).
A Customs bond is essentially a contract between the importer, the surety, and CBP. If the importer fails to meet their financial obligation to the government, the surety is required to pay the amount owed to the government on behalf of the importer. Coverage includes monetary penalties such as liquidated damages. Customs can issue a claim for liquidated damages for a variety of reasons including failure to produce necessary documents on an import entry, failure to file an entry in a timely manner, pay duty owed, or failure to redeliver goods.
For more information regarding surety bonds and the right to make entry, please visit CBP’s website.