CUSTOMS BOND DIRECT
                                                     
 FREQUENTLY ASK QUESTIONS
        
           A QUESTIONS ABOUT CUSTOMS BOND
1)  What is an Importer Entry Bond?
2)  What are the importer's obligations as a bond principal?
3)  When an importer is required to post a Customs Bond?
4)  Does a Customs Bond relieve an importer of its obligation to 
   pay the amount due to Customs  
5)  What is a Single Transaction Bond, and how to determine
   the bond amount?
6)  What is a Continuous Bond, and how to determine the
   bond amount?
        
B      QUESTIONS ABOUT APPLICATION
7) How to file an application for a bond?
8) How soon can my bond be effective?
9) How do I know if my bond has been filed with Customs?
10) What if my company name or address change after the bond has 
been executed?
11) How to renew our bond  for another term?
12) Can I request to terminate the bond and get refund?
 1)   What is an Importer Entry Bond?  
Importer Entry Bond is a customs bond posted by an importer to guarantee the payment  of import duties and taxes, and to assure compliance  with any pertinent law, regulation or instruction.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2) What are the importer's obligations as bond principal?
When an importer Entry Bond is executed, the importer agrees to the following conditions:
a. Agreement to pay duties, taxes and charges in a timely manner
b. Agreement to make or complete entry
c. Agreement to produce documents and evidence
d. Agreement to redeliver merchandise
e. Agreement to rectify and non-compliance with provisions for admission
f. Agreement to examination of merchandise
g. Reimbursement and exoneration of the United States
h. Compliance with special requirements on duty-free entries or withdrawals.
3) When an importer is required to post a Customs Bond?
An Importer Entry Bond is required on all commercial shipment of goods entering the commerce of the United States. An Importer Entry Bond may be written as either a single transaction or continuous bond.
4) Does a Customs Bond relieve an importer of its obligation to
customs? 
 
Failing to comply with the conditions of the bond contract will result in assessment of liquidated damages. If the importer fails to pay these liquidated damages or other lawful charges assessed by Customs, the surety must pay U.S. Customs the appropriate sum up to the bond amount. However,  a Customs bond does not protect an importer, nor relieve an importer of it's obligations to pay amount due to Customs. When the surety has been forced to pay Customs amount due under the terms of the bond, the surety has the right to demand reimbursement from the importer.

The importer is also liable for penalties assessed under Section 592 of the Tariff Act (19 U.S.C. 1592) for material misstatements of fact. Customs Bonds do not cover such penalties.
5) What is a Single Transaction Bond, and how to determine
   the bond amount?
   
A Single Transaction Bond is a one-time Importer Entry Bond for a particular import shipment, which can only be used for one Customs transaction. The bond amount for a single transaction bond is equal to the total entered value of the merchandise plus all duties, taxes, and fees. However, if the merchandise is subject to other government agency requirements or visa/quota requirements, the bond amount  would be equal to three times of the total entered value.
6) What is a  Continuous Bond, and how to determine the
bond amount?
A continuous Bond is a self-renewing term Importer Entry Bond, which covers all Customs transactions through all ports of the country. The bond amount for a continuous bond is determined by taking multiples of $10,000 nearest 10% of duties,  taxes and fees paid by an importer during the last calendar year. The minimum continuous bond amount is $50,000.
7) How to file the application for a bond?
Go to APPLY screen and answer all questions. Print out and sign both the Power of Attorney and Application Form. Make a check at the full amount of premium payable to Oriox Customs Broker Co. Mail the check with the signed forms to following address:           
                              Oriox Customs Broker Co.
                              139 Mitchell Ave., Ste 227
                              So. San Francisco, CA 94080
8) How soon can my bond be effective?
It takes 10 working days for your bond to be effective after filing in most ports by Customs regulations. However, we can expedite the filing process for you in some urgent cases. Please let us know your requirement.
9) How do I know my bond has been filed?
We will confirm the acceptance of your application via e-mail or fax. And then, we will fax you a copy  of ABI Bond Query Report. The ABI (Automatic Broker Interface) report will indicate your bond status in the U.S. Customs database. You also can have your broker make such a query for you.

 
10) What if our company name and address change after the 
bond had been executed?
You should go to Update screen and fill out the appropriate report form, print it out, sign it and then fax back to us as soon as possible. We need to file a rider for your bond with Customs.
11) How to renew my bond for another term?
We will send you a Renewal Notice six weeds before the expiration date of your bond. You are requested to fax back the Notice to us and indicate whether you want to renew your bond for another term at least three weeks before its expiration date. After we receive your renew request, we will send you a bill for premium. All premium must be received before its renewal date. Otherwise, Customs will terminate the bond on that date.
 
12) Can I get refund if I terminate the bond during the term? 
No refund for the one-year plan.
For the two-year plan and three-year plan, if you cancel the bond in the first year, you will be charged as a one-year plan, and be refund the balance.
For a three-year plan, you will be charged as a two-year plan if you cancel the bond in  the  second year and get back the balance. No  refund is to be given if you cancel the bond in the third year.