Customs Bond
A customs bond is a financial guarantee — usually issued by a surety — that customs will be paid the duties, taxes and any penalties owed, even if the importer defaults. Many countries require a bond to clear imports, and to operate bonded facilities such as bonded warehouses.
Bonds come as single-entry (covering one shipment) or continuous (covering all shipments over a period, usually a year). The continuous bond is standard for regular importers.
The customs bond is the authority's security that it will be paid. It is a precondition to clearing goods in many jurisdictions and to running a bonded warehouse — without it, customs will not release the cargo.
What is the difference between a single-entry and a continuous customs bond?
A single-entry bond covers one shipment; a continuous bond covers all of an importer's shipments over a period (usually a year) and is standard for regular importers.
Who provides a customs bond?
Typically a surety company or an authorised financial institution, often arranged through a customs broker on the importer's behalf.