Single Entry Bonds vs. Continuous Customs Bonds

Importer Security FilingImporter Security Filing (10+2 ISF)(10+2 ISF)

Customs BondCustoms Bond RequirementsRequirements

ISF Bonding Requirements

ISF 10+2 SummaryISF 10+2 Summary

Importer Security Filing, which you probably know as 10+2, is a Customs and Border Protection (CBP) regulation requiring importers and vessel carriers to provide advance data elements to CBP for non-bulk cargo shipments arriving into the United States by vessel. The focus of this initiative is to improve CBP’s ability to recognize high-risk shipments in advance to ensure the safety of America’s borders.


The bond guarantees CBP that if they cannot collect monies due from the Principal they can seek remedy, up to the bond amount, from the Insurance/Surety company.

What is a Customs bond?What is a Customs bond?

Insurance/Surety Company,

Principal,

Customs & Border Protection (CBP).

A financial guarantee between 3 parties:


ISF Effects Importers Using ISF Effects Importers Using Single Entry BondsSingle Entry Bonds

Importers with a Continuous Importer Bond on file will not have any changes made to their bond.

Importers using single entry bonds, now have 2 options:

Option 1:

Purchase a Single Entry Bond &Purchase a Single Entry ISF Bond

Option 2:

Purchase a Continuous Bond


Single Transactions Bonds:

Stand-alone

‘Unified’

Continuous Bonds:

Existing continuous bonds

ISF bond

ISF Bonding OptionsISF Bonding Options Which is Right For You?Which is Right For You?


The Basics of Import BondsThe Basics of Import Bonds

Single Entry Bonds Continuous Bonds

Good at any port,

Covers all import transactions over one year,

Almost always more economical than single entry bonds.

Good at one port,

Covers only one import transaction,

Most economical for importers via rail/air/truck.

Only economical for companies filing less than 3 entries per year.


Once a bond has been approved by the underwriter, it takes U.S. Customs at least 10 business days to issue a bond number for a continuous bond.

Will Timing Be a Factor?Will Timing Be a Factor?

Single Entry Bonds Continuous Bonds

A single entry for the entry can be placed quickly once goods arrive.

However, ISF single entry bonds will need to be placed 24 hours before goods live the foreign port.


Single EntryBond Amount: Set forth by the port director accepting the

bond no less than the Invoice Value of Goods + Duties/Taxes/Fees. Goods subject to OGA may be set at 3 times this amount.

For $5,000 in duty and subject to FDA the bond amount would equal $15,000.

Bond Cost: Depends on the Insurance company. Pricing can be a $1-$2 rate per thousand + fees. Pricing depends on the bond amount for a $15,000 bond the cost could be $45- $75 + fees.

Pricing DifferencesPricing Differences


Pricing DifferencesPricing Differences

ContinuousBond Amount: 10% of the annual duties paid. The lowest continuous

bond amount accepted by CBP is $50,000.

Importers paying less than $500,000 per year in duty need a $50,000 bond.

Bond Cost: Pricing depends on the insurance company and additional charges if purchased through a Customs broker. TRG offers promotional pricing to all of today’s attendees:1 year: $3002 year: $5253 year: $750 ($250/year)

Renewals are billed at our standard pricing currently: 1 Year: $395, 2 Year: $650, 3 Year: $895


OBTAINING A CUSTOMS BONDOBTAINING A CUSTOMS BOND

Importer Surety

Importer

You can purchase a customs bond through a broker or directly through the surety, usually at a substantially lower cost.

Fdf

Broker

Surety


Applying for a Continuous Applying for a Continuous $50,000 Import Bond$50,000 Import Bond

1 page application and Power of Attorney

3 Ways to Apply

Fill out the application online www.trgbond.com,

Fill out a PDF version of the application and email it in,

Call your account representative and fill it out over the phone.


Current Financials WillCurrent Financials WillBe Required IfBe Required If……

Your goods are subject to anti-dumping or countervailing duties,

Your goods are subject to FDA,

Your company has previously filed for bankruptcy,

Your company has ever had importing privileges revoked,

A Surety has ever paid claims on your company’s behalf,

Your company’s net worth is less than $25,000,

Your company is less than a year old.


Contact TRGContact TRG

Kristen BrandtTRG Bond Manager

Phone: 847-756-7547Fax: 847-756-7545Email: [email protected]

Single Entry Bonds vs. Continuous Customs Bonds

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