A Customs Bond is a financial safeguard, normally mandated by Customs authorities to ensure that the import duties, taxes, and associated fees are paid as well as the importer’s compliance with customs regulations. This legal undertaking typically involves the importer, a surety company, and customs authorities.
In the US, for instance, commercial imports valued above $2,500 must have a Customs Bond in place, as required by the US Customs and Border Protection (CBP). The CBP imposes two principal types of Customs Bond: single-transaction bonds or single-entry bonds (SEBs), covering one import, and continuous bonds, which can cover numerous transactions and are renewable yearly. As the bond serves as a guarantee for payment, it facilitates the clearance of goods by Customs and expedites the clearance process, while protecting the government from importers’ default on payments.