What’s The Difference Between A Single Transaction And Continuous Transaction Customs Bond?
A customs bond is a financial guarantee that is required by the U.S. Customs and Border Protection (CBP) for certain types of import transactions.
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A customs bond is a financial guarantee that is required by the U.S. Customs and Border Protection (CBP) for certain types of import transactions. A customs bond ensures that the government will be paid any duties, taxes, and fees that are due on the imported goods. There are two main types of customs bonds: single transaction bonds and continuous transaction bonds. Here is a comparison of the two types:
Single transaction bond:
- Covers a single transaction
- Typically used for one-time or infrequent shipments
- Must be obtained prior to each shipment
- Valid for a single entry or a specific period of time, depending on the terms of the bond
Continuous transaction bond:
- Covers multiple import transactions over a specific period of time (typically one year)
- Typically used for frequent or ongoing shipments
- Can be obtained once and remains in effect until canceled; renewed annually
It is important to choose the right type of customs bond to ensure that you are in compliance with CBP regulations and to avoid any delays or fines. It is a good idea to consult with a customs broker or an insurance provider that specializes in customs bonds to determine the best option for your business.