Underwriting on behalf of Munich Re’s American Alternative Insurance Corporation, we are able to offer superior rated paper for customs and other transportation-related bonds. The financial operating strength supporting our efforts ensures that you have access to stable surety products that enable your clients to conduct business with a streamlined bond approach.
A Customs Bond is principally obtained to guarantee the payment of import duties and taxes, as well as to assure compliance with all laws and regulations governing the entry of merchandise from foreign shipping points into the United States. Roanoke provides bonds to independent insurance agents and brokers throughout the country. We can assist you with meeting your import bond needs.
When merchandise is imported into the United States and later exported, a principal may be entitled to a refund of duty – referred to as a drawback claim. If accelerated drawback is being claimed, a CBP drawback bond is required as a refund is granted prior to liquidation of the drawback claim. The continuous drawback bond is set at the total amount of duty drawback claimed in one year.
A Foreign Trade Zone (FTZ) is a designated area within the U.S. located in or near a port of entry, but legally considered outside the customs territory of the U.S. for tariff and entry procedures. FTZs are part of a duty deferral program and are subject to CBP jurisdiction. In general, duty and excise taxes on foreign merchandise admitted to a zone are deferred until the goods are entered into the customs territory for consumption.
A Foreign Trade Zone (FTZ) operator is required to secure a bond to assure compliance with Customs regulations. The current minimum bond amount required by the Customs & Border Protection (CBP) is $50,000. However, the maximum amount is determined by each individual port director and therefore limits may vary. We are a long-time supporter of the National Association of Foreign Trade Zones and offer preferential pricing for Surety bonds and insurance to their members.
The custodian of bonded merchandise bond covers conveyances that carry merchandise and bonded facilities as indicated below. The minimum bond amount for each varies.
This bond guarantees that the principal will comply with Customs Regulations applicable to Customs security areas in and around airports. Covered parties on the bond include the principal’s employees, agents and contractors. This can be a separate bond, or if your customer has a CBP activity code 1, 2 or 3, those bonds cover this activity.
Concurrent with the issuance of an ATA Carnet, the holder must provide security to the guaranteeing association in the United States, the United States Council for International Business (USCIB). The USCIB requires security from all Carnet holders in the event of a default. Generally, the required amount is 40% of the total value of the General List, but there are some exceptions.
Companies operating as ocean freight forwarders and Non-Vessel Operating Common Carriers (NVOCCs) in the United States are required to be licensed and bonded as Ocean Transportation Intermediaries (OTIs). This bond guarantees that contractual relationships with shippers and carriers will be fulfilled. Additionally, the bond responds to claims filed by the shipping public to ensure compliance with Federal Maritime Commission regulations.
The FMCSA requires that property brokers (not issuing a bill of lading) maintain a BMC-84 Bond in the amount of $75,000. Any individual or company who operates as a transportation broker must obtain this bond.
This bond secures performance and fulfillment of carrier obligations to deliver Department of Defense (DOD) freight. It will cover any instance where a carrier cannot or will no deliver DOD freight tendered to them. This includes default, abandoned shipments, and bankruptcy by the carrier.