What is a Customs Bond?
- Dec 20, 2019
- Madeline S.
A customs bond, also known as carrier bonds, is an important document that allows imported commercial goods to be transported into the U.S. and Canada. It is essentially a guarantee to the Canadian or U.S. government that any fees, taxes, and duties owed will be paid when asked.
The U.S. and Canada have different regulations when it comes to importing and transporting goods in the country. For trucking carriers that are moving goods between these countries, it’s important to understand the differences between the customs bonds and comply with both.
U.S Customs Bond
All goods being imported into the U.S. require a customs bond, and without one your goods will be denied entry into the country. The U.S. offers “single entry” and a “continuous bond”. For those that are moving goods into the U.S. frequently, a continuous bond might be more economically beneficial.
Everyone importing into the U.S. is required to get a customs bond. This includes any business or individual importing goods for commercial purposes. Customs bonds are limited to goods transported by trucks. All imports that arrive, either via air, water, or road, needs a U.S. customs bond.
Canadian Customs Bond
Unlike the U.S., a customs bond is not an entry requirement in Canada. Those importing commercial goods can either pay at the border or get a customs bond ahead of time. A customs bond allows your imports to be released into Canada and all duties and taxes will be paid at a later date.
For businesses importing in Canada, customs can assist you in determining whether a customs bond is required or not. This depends on the types of goods, the overall value, and the reason for entering Canada.
Obtaining a Customs Bond
Customs bonds are incredibly valuable and can make the importing process for trucking companies smooth and efficient. A carrier bond can be obtained from a licensed surety, or a customs broker such as AVAAL. Obtaining a customs bond can be a complicated and daunting task, which is why many businesses come to AVAAL for help. We have years of experience and can guide your businesses through the regulation maze to help you get a Canadian or U.S. customs bond.