By Jennifer Chang.    Photo：Fred

When goods are imported into the United States for customs clearance, the local customs authority will request the importer to pay a "BOND FEE" to ensure that the importer takes responsibility for potential disputes and compensation issues that may arise after the goods clear customs. The "BOND FEE" is essentially a security deposit. Specifically, if an importer abandons the goods and refuses to pay any fees for various unforeseen reasons, the U.S. Customs and Border Protection has the authority not only to conduct a delayed auction of the goods but also to deduct the fees paid by the importer when purchasing the bond to offset other miscellaneous fees incurred during the customs clearance process, such as Storage Fee, Duty, Terminal Handling Charge (THC), and more. The direct beneficiaries of this system are the U.S. government and customs, and it is enforced by the Federal Maritime Commission (FMC) in the United States.

There are two types of Bonds. One is the Single Bond: for every shipment, regardless of whether it's by sea or air, a Single Bond needs to be purchased. The minimum cost for a Single Bond is about USD 50 per shipment, with an additional USD 5 for every increment of USD 1,000 in the cargo's value. Additionally, for sea freight, both Full Container Load (FCL) and Less than Container Load (LCL) shipments to the United States require the submission of the Importer Security Filing (ISF) 10+2, and if a Single Bond is purchased, an ISF Bond needs to be bought separately. The ISF Bond for cargo values under USD 100,000 costs a minimum of USD 100 per shipment. ISF is not required for air freight, so an ISF Bond is unnecessary for air shipments.  The other  is the Annual Bond, also known as a Continuous Bond. With an Annual Bond, you only need to purchase it once a year, at approximately USD 500 per year for cargo values under USD 100,000. After purchasing the Annual Bond, within its one-year validity period, you no longer need to pay individual Bond fees for each shipment. The Annual Bond is suitable for importers who frequently engage in import and export activities within a year. In other words, if a customer has a significant volume of shipments to the United States within a year, purchasing an Annual Bond is more cost-effective.

There are two types of customs clearance: 1. Customs clearance in the name of the U.S. consignee. The consignee provides POA (i.e. Power Of Attorney), and the U.S. consignee's Bond is also required. 2. Customs clearance in the name of the exporter. POA provided by the exporter by the U.S. agent to help exporters in the U.S. for importer customs registration number (Importer Record of No.). Please note that exporters can only purchase an Annual Bond; they cannot purchase a Single Bond. Regardless of the chosen customs clearance method, a U.S. Consignee must provide their company's Tax ID (IRS No.), which is a tax identification number registered with the Internal Revenue Service, to facilitate the customs clearance process.

U.S. Customs will not have record if BOND is not purchased. U.S. customs will not clear import goods even ISF is sent, therefore the goods will be rejected by the Customs and fined.  The bond fee is a separate and non-conflicting expense from the insurance premium typically taken out by exporters or consignees. Transportation insurance solely covers compensation for issues occurring to the goods themselves during transit.

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