The government has developed the concept of bonded inventory for encouraging international trade. When you transport a good across the world, it passes through several countries before reaching the final destination.   You can avoid excessive taxation in the intermediary countries while transporting goods through these bonds. One such type is a carrier bond ****which ensures that operators of ships, airlines, and conveyors of international merchandise should properly manifest their goods. They should comply with Customs regulations related to the clearance of the vessel.

**Let’s dig deeper into understanding other bond types!

Customs Bond** A customs bond is an insurance policy ensuring that Customs & Border Protection (CBP) gets the taxes and duties paid due to the US government.

# What is the primary type of CBP Customs bond? The importer of cargo requires an importer bond to guarantee that the imported goods have the right amount of duty or tax paid. You may also call it a Continuous Importer Bond. This is an essential bond that importers need to get. One might determine the costs and underwriting requirements as well. Therefore, these requirements are not limited by the following circumstances: • Cargo is subject to invalidate duties of anti-dumping regulations. The applicant may be enforced to submit the latest year-end financial statements. • One may request financial statements for merchandise that requires compliance with FDA regulations. This will mainly apply if the surety is known to claim: • Duty concerning the commodity in question  • If the bond might be more than the minimum amount of $50,000  • If the importer is the foreign entity • Many additional goods may call for the submission of financial statements. Some goods that may trigger a request for such statements include: • Tires • Tobacco  • Solar panels • Electronic cigarettes  • Honey  • Vehicles  • Textiles  • Seafood and more

International Carrier Bond Operators require the international carrier bond of airlines, ships, and conveyors of international merchandise. The bond ensures that: • The entities comply with customs laws and regulations • Pay for overtime services  • Properly manifest their merchandise about the clearance of the vessel or aircraft The principal may contact the port of entry and ask to be furnished with the specific requirements that they have to comply with to be classified as an international carrier. Once their operations are approved, the CBP will prescribe the bond amount to be paid.

Note* The minimum amount of the International Carrier Bond maybe $25,000, and Customs can only set the amount.

Other CBP Bond Types • Drawback Payment Bond: The importer can get back 99% of the fees and duty paid on imported merchandise. You only need to furnish the CBP once with proof that the merchandise was imported. • Foreign Trade Zone Bond: A foreign trade zone is deemed a non-US territory. An importer may manufacture, manipulate, export, and repack foreign merchandise without paying duties and other related fees. • Airport Customs Security Area Bond: This bond guarantees that the importer will comply with all the regulations and customs laws applying to airports and other customs security areas. The annual fee may typically be 2.25% of the bond amount, which needs to be approved by the CBP.  Are you an importer or consolidator? Then CBP may require you to maintain a Customs bond in order to get ****CTPAT certified. These bonds are available in flavors depending on your application type. So, maintain them and keep going!