What is a Customs Bond? Why is an Importer required to post a bond with Customs?
A bond is “a contract which is given to ensure the performance of an obligation by a law or regulation” When the bond is executed, the bond principal agrees to pay duties, taxes and charges in a timely manner, to make or complete entry, to produce documents and evidence, to redeliver merchandise etc. In lieu of a bond, an importer has the option of posting cash or other U.S. government obligations in a sum equal to the bond amount. However, if an importer deposits money with Customs, such funds will not be released until some time after entry is liquidated – this could take months or even years. ABCS can assist the importer in getting the proper bond to expedite the release of their shipment.
