International shipping can become a hassle if you are not aware of all the requirements needed to ship your goods. A Customs bond is required for importing goods exceeding $2500 worth of commercial value. Knowing the differences between single-entry and continuous bonds can help you decide on the right bond for your particular situation!
If your company ships frequently, continuous bonds are more cost effective. They are a yearly fixed rate that cover all your shipments, but keep in mind they do expire after the year is done! The last thing you want to deal with is your shipments being stuck at Customs because you forgot to renew your bond. Read on to understand the bond renewal process.
Bond Renewal: What to Know
Continuous bonds typically cost 10% of duties, taxes, and fees paid yearly to Customs with a minimum of $50,000 in cargo commercial value. Once you purchase the bond, it needs to be filled out, filed with US Customs, and accepted by a bond company. The easiest way to get a bond is through your Customs broker or freight forwarder. They will manage all the paperwork and make sure to inform you on upcoming bond renewal payments. Depending on the path you take to renew your bond, you can save yourself unnecessary steps and receive possible discounts!
When Renewing a Bond
When your bond is close to expiring, you will receive a renewal invoice months before the expiration date. Your freight forwarder or Customs broker will make sure you are notified on the payment deadline. It is required to own a Customs bond when importing goods to the US to hold companies accountable to pay duties. Forgetting to renew a bond can become detrimental for companies frequently importing to the US.
Luckily, many Freight Forwarders and Customs brokers offer an option for multi-year payment plans on bond renewals. Depending on the company, they offer 2,3, or even 5 years of payments in advance for renewals. They will renew your bond automatically each year so you can skip the headache of paying yearly. Furthermore, many forwarders and brokers offer discounts for multi-year payment plans!
Customs bonds are one of many costs associated with international shipping. Dealing with bond renewals each year can become aggravating. Having the option of multi-year payments plans from your forwarder or broker can make the process easier. Make sure you are working with a freight forwarder or Customs broker who can help cut some of your shipping costs and give you the best option for renewing your bonds!
Need A Bond Renewal?
Want to renew a bond? Our experienced team at InterlogUSA would love to help you renew your Customs bond! Contact us and we would love to answer any questions!