An importation bond is required by the U.S. Customs and Border Protection (CBP) to ensure that all regulations are followed and all taxes are paid when goods are imported to the country. A Customs Bond generally involves three parties. The importer is the principal, the insurance company that writes the bond is the surety, and the CBP is the beneficiary.
The principal enters into the bond in order to comply with Customs law. The principal is generally the importer but can also be the carrier, the broker, or anyone who is part of the importation process. The principal agrees to deliver the goods properly, to pay duties in a timely manner, and to complete all the paperwork required in the process.
The surety writes the bond, which is primarily designed to protect Customs regulations and ensure that they are followed. If the principal fails to complete anything required by the CBP, the importation bond guarantees that the surety will pay the related fees associated with this lack of compliance. The beneficiary receives the bond as an assurance that all the requirements for importing goods to the country will be met by the principal.
The U.S. Customs and Border Protection requires some type of Customs Bond when goods are imported into the United States. These bonds make the importation process run more smoothly and ensures an extra level of enforcement for import regulations.