single entry bonds vs. continuous customs bonds
DESCRIPTION
This presentation takes a look at the new Importer Security Filing requirement for ocean imports into the U.S. If you import more than once per year it will now be more economical for you to purchase a continuous Customs bond rather than single entry bonds. You can apply for your continuous Customs bond with TRG. Visit our website for our pricing or give us a call. 800-685-6082TRANSCRIPT
Importer Security FilingImporter Security Filing (10+2 ISF)(10+2 ISF)
Customs BondCustoms Bond RequirementsRequirements
ISF Bonding Requirements
ISF 10+2 SummaryISF 10+2 Summary
Importer Security Filing, which you probably know as 10+2, is a Customs and Border Protection (CBP) regulation requiring importers and vessel carriers to provide advance data elements to CBP for non-bulk cargo shipments arriving into the United States by vessel. The focus of this initiative is to improve CBP’s ability to recognize high-risk shipments in advance to ensure the safety of America’s borders.
ISF Bonding Requirements
The bond guarantees CBP that if they cannot collect monies due from the Principal they can seek remedy, up to the bond amount, from the Insurance/Surety company.
What is a Customs bond?What is a Customs bond?
Insurance/Surety Company,
Principal,
Customs & Border Protection (CBP).
A financial guarantee between 3 parties:
ISF Bonding Requirements
ISF Effects Importers Using ISF Effects Importers Using Single Entry BondsSingle Entry Bonds
Importers with a Continuous Importer Bond on file will not have any changes made to their bond.
Importers using single entry bonds, now have 2 options:
Option 1:
Purchase a Single Entry Bond &Purchase a Single Entry ISF Bond
Option 2:
Purchase a Continuous Bond
ISF Bonding Requirements
Single Transactions Bonds:
Stand-alone
‘Unified’
Continuous Bonds:
Existing continuous bonds
ISF bond
ISF Bonding OptionsISF Bonding Options Which is Right For You?Which is Right For You?
ISF Bonding Requirements
The Basics of Import BondsThe Basics of Import Bonds
Single Entry Bonds Continuous Bonds
Good at any port,
Covers all import transactions over one year,
Almost always more economical than single entry bonds.
Good at one port,
Covers only one import transaction,
Most economical for importers via rail/air/truck.
Only economical for companies filing less than 3 entries per year.
ISF Bonding Requirements
Once a bond has been approved by the underwriter, it takes U.S. Customs at least 10 business days to issue a bond number for a continuous bond.
Will Timing Be a Factor?Will Timing Be a Factor?
Single Entry Bonds Continuous Bonds
A single entry for the entry can be placed quickly once goods arrive.
However, ISF single entry bonds will need to be placed 24 hours before goods live the foreign port.
ISF Bonding Requirements
Single EntryBond Amount: Set forth by the port director accepting the
bond no less than the Invoice Value of Goods + Duties/Taxes/Fees. Goods subject to OGA may be set at 3 times this amount.
For $5,000 in duty and subject to FDA the bond amount would equal $15,000.
Bond Cost: Depends on the Insurance company. Pricing can be a $1-$2 rate per thousand + fees. Pricing depends on the bond amount for a $15,000 bond the cost could be $45- $75 + fees.
Pricing DifferencesPricing Differences
ISF Bonding Requirements
Pricing DifferencesPricing Differences
ContinuousBond Amount: 10% of the annual duties paid. The lowest continuous
bond amount accepted by CBP is $50,000.
Importers paying less than $500,000 per year in duty need a $50,000 bond.
Bond Cost: Pricing depends on the insurance company and additional charges if purchased through a Customs broker. TRG offers promotional pricing to all of today’s attendees:1 year: $3002 year: $5253 year: $750 ($250/year)
Renewals are billed at our standard pricing currently: 1 Year: $395, 2 Year: $650, 3 Year: $895
ISF Bonding Requirements
OBTAINING A CUSTOMS BONDOBTAINING A CUSTOMS BOND
Importer Surety
Importer
You can purchase a customs bond through a broker or directly through the surety, usually at a substantially lower cost.
Fdf
Broker
Surety
ISF Bonding Requirements
Applying for a Continuous Applying for a Continuous $50,000 Import Bond$50,000 Import Bond
1 page application and Power of Attorney
3 Ways to Apply
Fill out the application online www.trgbond.com,
Fill out a PDF version of the application and email it in,
Call your account representative and fill it out over the phone.
ISF Bonding Requirements
Current Financials WillCurrent Financials WillBe Required IfBe Required If……
Your goods are subject to anti-dumping or countervailing duties,
Your goods are subject to FDA,
Your company has previously filed for bankruptcy,
Your company has ever had importing privileges revoked,
A Surety has ever paid claims on your company’s behalf,
Your company’s net worth is less than $25,000,
Your company is less than a year old.
ISF Bonding Requirements
Contact TRGContact TRG
Kristen BrandtTRG Bond Manager
Phone: 847-756-7547Fax: 847-756-7545Email: [email protected]