156 INB365 US Specialty Bonds Free Trade Zones Week 6(1)
Week 7 Recap - Types Of Entries . Informal (Consumption) Entry Informal (Consumption) Entry Informal entries cover personal shipments, commercial shipments and mail shipments that are being entered for consumption, i.e. for use or sale. In most cases informal entry can be used if the merchandise is valued at $2500 or less. $2500 or less. There are some exceptions such as textiles, certain types of footwear and other goods subject to quota/visa restrictions. This type of entry does not require a customs “bond”
Week 7 Recap - Types Of Entries Formal (Consumption) Entry Formal (Consumption) Entry Most commercial shipments eventually used in US Commerce. Formal entries are generally commercial shipments supported by a surety (customs) bond surety (customs) bond to ensure payment of duties and compliance with Customs requirements. A bond is like an insurance policy that is payable to Customs in the event that the importer does not comply with import requirements. Having a bond on file, allows an importer to take possession of his merchandise before the payment of duties, taxes and fees.
157 What is a Customs Bond? Any corporation, company or individual wishing to import goods into the United States, or engage in other import related activities or operations, is required to post a surety bond surety bond or its cash cash equivalent with the U.S. Customs & Border Protection (CBP). The bond guarantees that the importer will faithfully, and in a timely manner, abide by all laws and regulations governing the importation of merchandise into the commerce of the United States. The bond is not designed or intended to protect the importer (rather it protects the people and government of the United States
158 U.S. Customs Bonds Agreement to pay duties, taxes and charges in a timely manner. Agreement to make or complete entry. Agreement to produce documents and evidence. Agreement to redeliver merchandise. Agreement to rectify any non-compliance with provisions for admission. Compliance with special requirements on duty-free entries. Agreement for examination of merchandise. Reimbursement and exoneration of the United States.
159 Parties to a Customs Bond There are three parties to a CBP bond: The principal: The principal: The principal on a bond can be an importer, a broker, a carrier, a bonded warehouse proprietor, a foreign trade zone operator or any one of a number of other parties that seek to do business with CBP. The principal gives the bond to CBP to insure satisfactory performance of obligations that it undertakes. The surety: The surety: The surety is normally an insurance company that has been authorized by the Department of the Treasury to write CBP bonds. The surety agrees to pay any liability that might arise from the principal's failure to perform its obligations.
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- Spring '14
- International Trade, foreign trade zone, Customs Bond