Customs Bonds Questions and Answers
How much am I going to be saving by buying my bond
direct?
The answer is dependent on your current cost for
the bond. The most common bond is the $50,000 Minimum Import Bond. The average
cost for this bond when purchased from a broker is $400-$500 per year. Trade
Risk Guaranty offers a 3-year term for this same bond for $895, which averages
out to $298/yr. Not only are our rates well below the national average, but
combined with our outstanding Customer Service and value-added services, TRG offers a cost effective source for your US Customs bond needs.
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How long does it take to put the bond in place with
TRG?
The length of time to file a bond is determined by
Customs and Border Protection. The most common bond is the $50,000 Import Bond.
Customs requires 10 business days notice for this bond. Other bond amounts and
types may require more notice but not less.
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Why is your pricing so much lower than my current
rate?
The most likely reason is because you are currently
purchasing through an additional “middleman” (a customs broker or freight
forwarder).
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"My broker told me there are no multiple year
bonds".
US Customs bonds are continuous, meaning once they
are on file with Customs, they remain active until terminated in writing. When
we offer a 1,2 or 3 year term for the bonds, we are referring to billing terms.
TRG has negotiated discounted premium rates for importers that pay for 2 or 3
years at one time. At the end of the chosen term, Trade Risk Guaranty contacts
your company to see if you wish to continue the previous term or select a
different payment term.
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Is this the same bond I already have?
Customs bonds are issued in standardized format
according to Customs and Border Protection regulations. Any authorized issuer
of Customs bonds issues the same bond format, parameters, conditions and
coverage’s. The only difference in purchasing a bond from one issuer to another
is the strength of the insurance company issuing your policy. TRG issues bonds from companies with very high S&P ratings who have
been operating well over 100 years. Anyone you authorize to clear entries on
your behalf will be able to access this bond.
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How will my broker, or all my brokers, know that I
have a new bond?
At your request, Trade Risk Guaranty will notify
your broker(s) of your new bond information including Bond Number, Effective
Date, Surety Code, and Importer Number.
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I have shipments arriving every day and cannot
afford a lapse in coverage.
Trade Risk Guaranty is the expert in Customs bonds.
Not only have we been managing and coordinating the filing of new and
replacement bonds for importers since 1991, our senior management has been
specifically instrumental in the Customs bond industry since 1960. We follow
the rules and regulations of Customs in the process of terminating one bond and
filing the replacement bond simultaneously, to ensure no gap in coverage.
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What if I purchase the bond with a multiple year
option and your company goes out of business?
In this highly unlikely event, your bond is not
affected in the least. The insurance company issues your bond and your
contractual agreement to pay them for coverage is between you and them. Trade
Risk Guaranty facilitates the insurance company’s ability to provide you highly
specialized service, but in the even TRG were to not exist, the insurance
company would either service internally or obtain the services of another
surety agency to service your account.