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What is U.S. Customs Import Bond?

Views: 20     Author: Site Editor     Publish Time: 2022-06-09      Origin: Site

For those planning to import goods from a foreign country, there are some basic concepts that you must get familiar with. One of them is posting a customs or import bond. Today, we will tell you about the BOND of US import customs clearance.


This is the content list:

- About Bond in the United States

- Two main types of Bonds

- How to buy Bond

- Two customs clearance methods

- What should be paid attention to in traditional foreign trade and cross-border e-commerce foreign trade?

- Special Case: Transit Transshipment

- Additional knowledge


What is U.S. Customs Import Bond


About Bond in the United States:

Bond is implemented by the US Federal Maritime Council (FMC) to ensure the payment of import duties and taxes on goods, and to ensure that all US imported goods comply with the laws and regulations formulated by the customs and fulfill their related obligations.


In simple terms, Bond is a kind of deposit that US importers need to purchase from US customs. When the importer incurs fines for various reasons, the U.S. Customs can deduct money from Bond. All goods imported into the United States need to purchase Bond, that is, pay a certain Bond fee to the U.S. Customs as a security deposit.


If the importer abandons the goods for various unexpected reasons and does not pay any fees, in addition to the right to auction the goods overdue, the US Customs can also deduct the fees paid by the importer to buy Bond, which can be used to offset these goods in Other miscellaneous fees incurre


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U.S. importers must purchase BOND from customs. Before, even without ISF requirements, customs clearance must be purchased.


Two main types of Bonds:

The first is Continous bond, also called Annual bond, which only needs to be purchased once a year, and is suitable for importers who frequently import goods.


The second is Single Transaction Bond (STB for short). If you buy a continous bond, you don't need to buy another ISF bond. If you buy a single bond, you must buy another ISF bond.


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ISF BOND means a security deposit that American importers need to buy. The US customs can deduct money from BOND in order to prevent importers from being fined due to certain factors, so all goods imported into the United States need to buy BOND, ISF It is one of the bonds, called ISF BOND

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How to buy Bond

Importers who buy pounds can directly entrust U.S. customs clearance banks to assist in the purchase. The buyer needs to fill in the documents CBP Form 301 and return the Bond application (sometimes may need to assist in providing some other documents such as POA, Partnership Papers, etc.), or directly package the above materials and send them to the mailbox bondquestions@cbp.dhs.gov And call (317) 614-4880 for consultation. It should be noted that only one scanned copy of CBP Form 301 is required, and there is no need to send multiple copies.



Refer to the following:

The red box (1) represents the Bond NO. indicated by CBP;

The red box (2) indicates whether the purchase is an annual bond or a secondary bond, and the small box on the right is the effective date of the purchase;

The red box (3) represents the title of the importer, that is, the specific information of the US import customs clearance entity;

The red box (4) represents the importer's IEN number.

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In addition, goods exported to the United States can be cleared in the name of Consignee in the United States or in the name of Shipper in China. In principle, the name of which party is used to purchase Bond is used for customs clearance, but according to the trade mode of the buyer and the seller, it can be mainly divided into the following two situations:


(1) If the purchase is made directly by the U.S. party, customs clearance shall be made in the name of Consignee in the United States: if the domestic freight forwarder arranges import customs clearance, Consignee in the United States needs to provide their Bond to the consignor first, and the consignee and the domestic freight forwarder will sign a customs declaration letter of attorney , namely POA (Power of Attorney), and also need to provide tax documents such as SS4/IRS. The POA template is provided by the U.S. customs clearance bank that the domestic freight forwarder cooperates with. It needs to be signed before the deadline for sending the ISF, and the ISF will be sent by the domestic freight forwarder.


(2) If the shipper is purchased from China and sold on an e-commerce platform in the United States, there is only a consignee in the United States without a physical company, and the shipper is both the owner and the importer. Or the factory sells it to the American consignee in the DDP mode, and all the costs are borne by the factory. The above cases can be cleared in the name of the domestic Shipper: the consignor needs to fill in the customs declaration POA and submit the domestic business license or legal person. The ID card and other information are sent to the domestic freight forwarder, and the domestic freight forwarder forwards it to the overseas cooperative customs clearance bank. The customs clearance bank assists the consignor to obtain the importer's customs registration number, and the registration number can be officially used after the registration number. It should be noted that if you buy pounds in the name of domestic Shipper, you can only buy annual pounds, not secondary pounds. At the same time, even customs clearance in the name of Shipper requires the local tax ID number of the US consignee.



Two customs clearance methods:

1. Clear customs in the name of American consignee

In this way of customs clearance, the American consignee/consignee provides POA (ie Power Of ATTorney: Power of Attorney) to the American agent of the freight forwarder, and the Bond of the American consignee/consignee is required.


2. Clear customs in the name of Shipper

In this way of customs clearance, Shipper provides POA (ie Power Of Attorney: Power of Attorney) to the freight forwarder at the port of departure, and the forwarder transfers it to the agent at the port of destination, and the US agent helps the shipper/Shipper handle the importer customs registration number (Importer Customs Registration Number) in the United States. Record of No.); also requires Shipper to purchase Bond; Shipper can only purchase annual Bond, not single Bond.


Notice:

1) The above two customs clearance methods, no matter which one is used, must use the US consignee's Tax ID (also called IRS No.) to clear the customs. US consignee must provide Tax ID to clear customs.


2) IRS No. The Internal Revenue Service No. A tax identification number registered by the US consignee with the US Internal Revenue Service.


3) Without Bond, it is impossible to clear customs in the United States.


4) Without Tax ID, it is impossible to clear customs in the United States.



What should be paid attention to in traditional foreign trade and cross-border e-commerce foreign trade?


Traditional foreign trade:


1) Generally speaking, for traditional trade, it only needs to be port-to-port, so when trading with the United States, please remember to confirm with the American consignee whether they have Bond and whether they can use their Bond and POA for customs clearance.


2) If the US consignee does not have Bond or is unwilling to use their Bond for customs clearance, Shipper must purchase Bond. But the Tax ID must be of the American consignee, not Shipper.


3) If the consignor or consignee does not purchase Bond, it is equivalent to not filing with the U.S. Customs. Even if the ten items of the ISF are complete and correct, the US Customs will not accept it and will face fines.


In view of this, the salesperson must remember to ask American customers if they have purchased Bond.



Cross-border e-commerce sellers:

1) For cross-border e-commerce sellers, door-to-door logistics, such as Amazon, Ebay, independent stations, etc., products need to be sent to FBA warehouses, third-party warehouses or even to customers' homes. Generally, the tax number and BOND of the third-party logistics are used for unified customs clearance. This is also the most common operation mode in the market, which is convenient for sellers and saves costs.


2) A small number of Amazon sellers will choose Amazon Official Logistics (AGL for short). AGL logistics is not responsible for domestic customs declaration and foreign customs clearance, that is, sellers should arrange domestic customs declaration materials and foreign customs clearance materials by themselves, as well as the main points of this article. OBJECT, TAX ID and BOND. You can find the right channel/strong forwarder to buy, and the annual BOND cost is about 850USD.



Special Case: Transit Transshipment

1) All goods in transit in the United States, including goods that are shipped to other countries immediately after arriving in the United States, and goods that are shipped to the United States and transported within the United States, and then shipped to other countries, require an ISF5 declaration to the U.S. customs system. . Generally, it is declared to the U.S. Customs when sending AMS.


2) The five declarations required by ISF5 are as follows:


Booking Party


Foreign port of unlading


Place of Delivery


Ship to party


Commodity HTSUS number



Additional knowledge:

Buy Annual Bond/Continuous Bond, no need to buy ISF Bond.


To purchase Single Bond/Single Transaction, you need to purchase ISF Bond separately.


Annual Bond/Continuous Bond - Bond costs about $850 for an annual value of $50,000.


Single Bond/Single Transaction - minimum $50 per BL, for every $1000 in excess value, Bond will increase by $5.


ISF Bond - within $100,000, the minimum Bond fee is $90/BL.


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