Importers that have two or more shipments per year will benefit from the convenience and cost savings of a continuous bond.
Continuous bonds cover the importer for one year and are renewable each year. This is a more economical choice if you import two or more shipments per year. Bond values are calculated at 10 percent of your estimated duties, taxes and fees that will be paid over the following 12-month period. The minimum continuous bond amount is $50,000.
Continuous bonds provide other advantages as well and can be used for both ISF and entry purposes.
Keep in mind, as your import volume increases, the face value of your continuous bond will also increase. Because the insurance/surety company is taking a risk in extending you a bond, it is common for the surety company to request that you provide them with your company’s financial statements. Strong financials will help reassure the surety company that is extending the risk while poor financials may result in the surety company demanding a cash deposit posted in order to obtain your bond.
The import of goods does come with risk. There are many ways to mitigate that risk and selecting the right type of entry bond is one of them. Call Joseph B. Hohenstein Custom Brokers to help you secure the best continuous import bond.