CUSTOMS & EXCISE BONDS
Does your company ship or receive goods internationally? A customs bond guarantees that an importer or exporter will pay customs duties and taxes on products being sent between a foreign country and Canada complying with the Customs and Transportation Act.
Customs bonds, or Excise bonds, are required by custom brokers, importers, transportation companies, logistic companies, shippers and others by the Government of Canada. In a Customs Bond, the Surety guarantees to the obligee (the Government of Canada) that the principal will comply with the Customs and Transportation Act. If the importer fails to fulfill their financial obligation to the Canadian government, the surety is required to pay the amount owed to the government on behalf of the importer. The coverage includes monetary penalties such as liquidated damages.
Customs Bonds provide the principal(s) with an opportunity to be granted quick and expedited release of their imported goods prior to the financial determination and payment of legally required duties, taxes and applicable tariffs from Customs. Customs Bonds enable transportation companies to move their respective goods through Canada and the U.S in a quick and efficient manner.
Customs Bonds enable transportation companies to move goods in Canada in a quick and efficient manner.
Types Of Customs & Excise Bonds
There are two basic types of Customs Bonds:
Single Transaction Bond - Also known as a Single Entry Bond, it covers a single import transaction at one port of entry. The total bond amount is determined by the type of bond needed, as well as the limit of liability required by U.S. Customs.
Continuous Bond - A continuous bond covers all entries made by an importer at all U.S. ports of entry and is good for one complete year.
There are a number of customs bonds available depending on your needs. Some examples are:
- Various Bonded Carriers (Highway, Air, Freight) - posts security with the Canada Border Services Agency to cover the transportation of goods to an inland CBSA office by means of ground or by air in order for the shipment to be released.
- Duty-Free Shop Bonds - To protect the interests of the Crown, to which various duties and taxes are owed, a duty-free shop licensee must post a security bond against their inventory.
- Temporary Importation of Articles Bonds - required when goods are brought into the United States or Canada without payment of duty, by posting a bond to guarantee that they will be exported.
- Customs Bonded Warehouse Bonds - a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
- Customs Brokers License Bonds - grants an individual seeking legal license as a Customs broker or affiliation with a Customs brokerage by profession.
- BMC-84 (US Property Broker) - required of any individual or business who wants to operate as a transportation broker for the Canada Border Services Agency (CBSA).
- Release Of Goods Bonds – posts financial security with the CBSA that allows goods and shipments to be released quickly and promptly
U.S. Customs and transportation bonds are available for both Canadian and US residents.
Advantages Of Using Customs Bonds
- Pre-screening and registration with customs thus minimizing delays at crossing borders. The pre-screening qualification is performed by the surety company.
- Control of financial obligation to customs. All suppliers should be bonded since many companies in the industry only deal with bonded suppliers in order to guarantee its safety, and financial accountability as well as avoid delay time at border crossing.
- Frees up capitol to be posted to Government
Applying For Customs Bond? Have Questions?
Contact our surety experts at 1-877-213-4545 or firstname.lastname@example.org