If your business endeavors involve importing and exporting merchandise, it will likely become a necessity that you secure custom bonds to protect your investments. Custom bonds work by insuring that the principal will pay all duties and fees owed, the customs authority will deliver the goods and the surety will cover costs if either of these parties fails to meet the agreed-upon terms. It is a beneficial arrangement for all parties, so you may be wondering how to secure your own bond. Read on to learn about the customs bond application.
Understanding the Steps to Apply for a Bond
The customs bond application entails several parts that candidates must submit, and it differs based on the surety you choose to apply to. A general overview of the steps, however, is as follows:
- Choose the kind of bond you would like
- Find a surety/provider who offers a customs bond
- Review and complete their customs bond application
- Pay any costs or application fees
File your bond at the port you intend to do business
Every provider has a different process for securing a bond, so it is important to check with the surety you are seeking coverage from. Following these steps, however, will get you well on your way to doing international business.