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A customs bond is a kind of guarantee given by Surety Company to United States government that the importer will obey all the rules and regulations governing the importation of merchandise into the United States. If a company or a corporation likes to import goods in to U.S then it is requires posting a Customs Surety Bond or its cash equivalent. On Customer Form 301 the bond is submitted. By surety companies the customs bond are issued. For the issuance of Federal Customs Surety Bond the Treasury Department annually approves the insurance companies. For the protection of the importer or to safeguard the importer, this Surety Bonds is not designed. This is designed for the purpose to guarantee that all the customs duties customs penalties and other charges assessed by U.S. Customs bonds and Surety Bonds will be correctly paid plus that all trade procedures will be followed. WHAT CUSTOMS BONDS DO The following functions are provided by customs bond: Secures deposit of anticipated duty as well as additional duty. Secures payment of duty on merchandise left in a bonded warehouse or else improperly removed from a warehouse. Secures promise to produce any required evidence. Secures promise to make entry. Secures promise to redeliver temporarily released merchandise. Secures promise to hold conditionally released merchandise intact for examination. Secures promise to carry conditionally released merchandise into compliance with U.S. admission requirements. Secures promise to pay compensation of Customs officers as well as exonerate Customs officers. Secures promise to use merchandise entered free or else at a reduced rate in the manner as entitled plus to furnish proof of that use

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