Customs Bond: Questions, answers, eezyimport

A Customs Bond is a required CBP regulation for anyone importing a formal shipment into the US. The Bond acts as a financial guarantee (contract or Surety) between the importer of record (IOR; the Principal), the CBP (the Obligee), and the insurance company (the Surety). The Bond covers customs-related costs up to the value of the Bond. In essence, it assures that the CBP will collect all import taxes, duties, fines, and penalties from the importer or their surety company if they cannot.

There are several Custom Bonds available depending on the importer’s business size and needs and CBP obligations.

Customs Bonds & eezyimport

Today, most US importers navigate the customs clearance process by using digital technology. Online import solutions save time, money, and effort. These solutions are beneficial for small to medium-sized importers. eezyimport, for instance, offers a leading, easy-to-use clearance solution to navigate the challenging world of importing, meet import requirements, and do so independently, thereby reducing costs.

US import regulations and requirements include filing an ISF 10+2 Form (for ocean freight imports only) and CBP Form 7501/Entry Summary (for all imported shipments and all shipping methods). Another requirement is a Customs Bond for goods officially imported worth over $2500, or $250 for Chinese goods. Also, a customs bond may be required for shipments with a lower value if the goods shipped are subjected to US government agency requirements.

The customs bond is usually purchased directly from a surety licensed by the US Treasury Dept. or acquired from a customs broker. Besides helping importers become self-filers, as part of the eezyflow™ system, importers can purchase a single or continuous customs bond during the ISF and Entry Summary filing process.

Which Customs Bond to choose?

There are two main types of customs bonds: a Single Bond and a Continuous Bond.

A single bond is recommended for small, irregular, or one-time importers. The Single Bond is good for only one ISF or Entry Summary Filing. Therefore, importers must pay for one Bond and one premium for each shipment coming in. They need a separate bond for shipments subject to ISF Filing for both the ISF and the Customs Entry. The Single Bond is available for purchase from within eezyimport’s ISF/Entry flow.

A Continuous Bond is valid for 12 months and covers both ISF Filing and the Entry Summary. Since every IOR is different, the best options vary. However, these bonds are most economical for regular importers whose merchandise passes through several ports of entry before reaching its final destination. Also, bond fees differ between agencies, customs brokers, and freight forwarders. Generally, the most cost-efficient is the continuous bond that meets the Entry Summary and ISF 10+2 requirements. The Continuous Bond Fee ranges from $450 to $550. Late filings are penalized with additional costs.

eezy offers a Continuous Bond with a $50K cover for only $295, much lower than the average price other agents offer. With eezyimport, the Continuous Bond purchase process takes several business days. It is available from within the ISF/Entry flow and at any time from your eezyimport company profile.

Do you need to renew the customs bond?

After purchasing your first customs bond, you need to renew it annually on the same date of its establishment. The renewal process allows the importer and the Surety to review the Bond and decide whether to make any adjustments.

Process tracking

The common question is that once you’ve received confirmation that you filed your ISF, how do you check its status? Can the carrier send your shipment?

Every ISF filed to CBP receives a unique transaction number confirming that the ISF is in their system. Next, the CBP identifies each shipment from the Master and the House Bill of Lading number issued by the freight forwarder. When the CBP receives the ISF filing, the MBL and HBL numbers and the carrier’s number must match. If not, the ISF receives a “pending bill match” status meaning the filing requires corrections from the importer side. Finally, a confirmation email receipt will display a “Y” or “N.” The Y means your ISF is filed and cleared; an “N” means it’s in pending status with “No Bill on File.” If the filing has not been successful, you can change the information and resend it.

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