Define: Continuous Bond

A continuous bond is a type of surety bond that is used by importers to guarantee payment of duties, taxes, and fees to U.S. Customs and Border Protection (CBP) for imported goods.

Any business or individual that imports goods into the United States on a regular basis is required to have a continuous bond. This includes both commercial importers and individuals who import goods for personal use.

The cost of a continuous bond can vary depending on factors such as the type of goods being imported and the value of the imports. Generally, the bond amount is set at 10% of the total duties, taxes, and fees paid to CBP in the previous year.

A continuous bond remains in effect until it is terminated by the importer or the surety company. It is typically valid for one year and must be renewed annually.

Yes, an importer can cancel their continuous bond at any time by providing written notice to the surety company. However, it is important to note that canceling a bond may result in penalties or additional fees from CBP.

If an importer does not have a continuous bond, CBP may refuse to release their imported goods until the required duties, taxes, and fees are paid in full. Additionally, the importer may face penalties and fines for non-compliance.

Yes, if an importer’s imports increase significantly, they can request an increase in the bond amount. This can be done by submitting a request to the surety company along with supporting documentation.

No, a continuous bond is specific to the importer named on the bond and cannot be transferred to another party. If an importer changes their business name or ownership, a new bond must be obtained.

If an importer fails to pay the required duties, taxes, and fees, CBP may make a claim against the continuous bond. The surety company will then be responsible for paying the claim, and the importer will be required to reimburse the surety company. Failure to do so may result in legal action.