Surety Bond: Difference between revisions

(One intermediate revision by the same user not shown)

Line 16:

<h2 style="margin-top: 0;">What is a Customs Bond?</h2>

<p>A **Customs Surety Bond** (CBP Form 301) is a contract used to guarantee that a specific obligation will be fulfilled. It is essentially an insurance policy that protects the U.S. government against lost revenue.</p>

<p>A '''Customs Surety Bond''' (CBP Form 301) is a contract used to guarantee that a specific obligation will be fulfilled. It is essentially an insurance policy that protects the U.S. government against lost revenue.</p>

<p>For carriers, this bond guarantees that if they are allowed to move freight inland (in-bond) without paying duties at the first port of arrival, they will not let that freight disappear into U.S. commerce illegally. If the freight goes missing, the Surety company pays CBP, and then comes after the carrier for reimbursement.</p>

Line 22:

<strong>Clarification:</strong><br>

* **Bonded Carrier:** A status granted by CBP allowing you to transport in-bond goods.

* '''Bonded Carrier:''' A status granted by CBP allowing you to transport in-bond goods.

* **Surety Bond:** The physical/digital document (Form 301) that provides the financial backing required to get that status.

* '''Surety Bond:''' The physical/digital document (Form 301) that provides the financial backing required to get that status.

</div>

Line 32:

<p>While there are many activity codes for bonds, carriers and importers typically deal with two main structures: **Continuous** and **Single Transaction**.</p>

<p>While there are many activity codes for bonds, carriers and importers typically deal with two main structures: '''Continuous''' and '''Single Transaction'''.</p>

Line 59:

<h3>1. To Move Goods "In-Bond"</h3>

<p>If you want to transport goods from the border to a bonded warehouse inland (e.g., Detroit to Chicago) for clearance later, you must have a bond. This allows you to file an **IT (Immediate Transportation)** or **T&E (Transportation & Exportation)** manifest.</p>

<p>If you want to transport goods from the border to a bonded warehouse inland (e.g., Detroit to Chicago) for clearance later, you must have a bond. This allows you to file an '''IT (Immediate Transportation)''' or '''T&E (Transportation & Exportation)''' manifest.</p>

<h3>2. To Obtain a Filer Code</h3>

<p>To file your own ACE eManifests effectively, you need a 4-character **SCAC** (Standard Carrier Alpha Code). However, to be a "bonded" carrier, CBP will assign you a bond number and often a unique **Filer Code** (different from your SCAC) that allows you to authorize in-bond moves.</p>

<p>To file your own ACE eManifests effectively, you need a 4-character '''SCAC''' (Standard Carrier Alpha Code). However, to be a "bonded" carrier, CBP will assign you a bond number and often a unique '''Filer Code''' (different from your SCAC) that allows you to authorize in-bond moves.</p>

</div>

Line 68:

<p>Carriers generally cannot buy a bond directly from the government. You must go through a **Surety Agent** or a **Customs Broker** licensed to write bonds.</p>

<p>Carriers generally cannot buy a bond directly from the government. You must go through a '''Surety Agent''' or a '''Customs Broker''' licensed to write bonds.</p>

* **Step 1: Contact a Surety Agent.** Many insurance companies specialize in logistics bonds.

* '''Step 1: Contact a Surety Agent.''' Many insurance companies specialize in logistics bonds.

* **Step 2: Complete CBP Form 301.** Your agent will help you fill this out, designating you as the "Principal".

* '''Step 2: Complete CBP Form 301.''' Your agent will help you fill this out, designating you as the "Principal".

* **Step 3: Determine Bond Amount.** For most carriers, the minimum bond amount is **$25,000** or **$50,000**, depending on the types of goods hauled.

* '''Step 3: Determine Bond Amount.''' For most carriers, the minimum bond amount is '''$25,000''' or '''$50,000''', depending on the types of goods hauled.

* **Step 4: Request a Filer Code.** Once the bond is filed with CBP, you (or your agent) must submit a letter of intent to the Port Director where you intend to conduct business to receive your unique filer code.

* '''Step 4: Request a Filer Code.''' Once the bond is filed with CBP, you (or your agent) must submit a letter of intent to the Port Director where you intend to conduct business to receive your unique filer code.

</div>

Line 82:

<p>Once you have your bond, you need to tell BorderConnect about it so the system can properly file your **Type 61 (In-Bond)** or **Type 62 (QP/WP)** entries.</p>

<p>Once you have your bond, you need to tell BorderConnect about it so the system can properly file your '''Type 61 (In-Bond)''' or '''Type 62 (QP/WP)''' entries.</p>

1. Navigate to **Account > Company Profile**.

1. Navigate to '''Account > Company Profile'''.

2. Scroll to the **Customs (ACE)** section.

2. Scroll to the '''Customs (ACE)''' section.

3. Enter your **Bond Number** and **Surety Code** (found on your Form 301).

3. Enter your '''Bond Number''' and '''Surety Code''' (found on your Form 301).

4. If you have a separate Filer Code, enter it in the **Filer Code** field.

4. If you have a separate Filer Code, enter it in the '''Filer Code''' field.

5. Click **Save**.

5. Click '''Save'''.

</div>

@@ Line 16: / Line 16: @@
 <h2 style="margin-top: 0;">What is a Customs Bond?</h2>
-<p>A **Customs Surety Bond** (CBP Form 301) is a contract used to guarantee that a specific obligation will be fulfilled. It is essentially an insurance policy that protects the U.S. government against lost revenue.</p>
+<p>A '''Customs Surety Bond''' (CBP Form 301) is a contract used to guarantee that a specific obligation will be fulfilled. It is essentially an insurance policy that protects the U.S. government against lost revenue.</p>
 <p>For carriers, this bond guarantees that if they are allowed to move freight inland (in-bond) without paying duties at the first port of arrival, they will not let that freight disappear into U.S. commerce illegally. If the freight goes missing, the Surety company pays CBP, and then comes after the carrier for reimbursement.</p>
@@ Line 22: / Line 22: @@
 <div class="bc-did-you-know" style="margin-top: 15px;">
 <strong>Clarification:</strong><br>
-* **Bonded Carrier:** A status granted by CBP allowing you to transport in-bond goods.
+* '''Bonded Carrier:''' A status granted by CBP allowing you to transport in-bond goods.
-* **Surety Bond:** The physical/digital document (Form 301) that provides the financial backing required to get that status.
+* '''Surety Bond:''' The physical/digital document (Form 301) that provides the financial backing required to get that status.
 </div>
@@ Line 32: / Line 32: @@
 <div class="bc-card">
-<p>While there are many activity codes for bonds, carriers and importers typically deal with two main structures: **Continuous** and **Single Transaction**.</p>
+<p>While there are many activity codes for bonds, carriers and importers typically deal with two main structures: '''Continuous''' and '''Single Transaction'''.</p>
 <table class="wikitable" style="width: 100%;">
@@ Line 59: / Line 59: @@
 <h3>1. To Move Goods "In-Bond"</h3>
-<p>If you want to transport goods from the border to a bonded warehouse inland (e.g., Detroit to Chicago) for clearance later, you must have a bond. This allows you to file an **IT (Immediate Transportation)** or **T&E (Transportation & Exportation)** manifest.</p>
+<p>If you want to transport goods from the border to a bonded warehouse inland (e.g., Detroit to Chicago) for clearance later, you must have a bond. This allows you to file an '''IT (Immediate Transportation)''' or '''T&E (Transportation & Exportation)''' manifest.</p>
 <h3>2. To Obtain a Filer Code</h3>
-<p>To file your own ACE eManifests effectively, you need a 4-character **SCAC** (Standard Carrier Alpha Code). However, to be a "bonded" carrier, CBP will assign you a bond number and often a unique **Filer Code** (different from your SCAC) that allows you to authorize in-bond moves.</p>
+<p>To file your own ACE eManifests effectively, you need a 4-character '''SCAC''' (Standard Carrier Alpha Code). However, to be a "bonded" carrier, CBP will assign you a bond number and often a unique '''Filer Code''' (different from your SCAC) that allows you to authorize in-bond moves.</p>
 </div>
@@ Line 68: / Line 68: @@
 <div class="bc-card">
-<p>Carriers generally cannot buy a bond directly from the government. You must go through a **Surety Agent** or a **Customs Broker** licensed to write bonds.</p>
+<p>Carriers generally cannot buy a bond directly from the government. You must go through a '''Surety Agent''' or a '''Customs Broker''' licensed to write bonds.</p>
 <div class="bc-cleanlist">
-* **Step 1: Contact a Surety Agent.** Many insurance companies specialize in logistics bonds.
+* '''Step 1: Contact a Surety Agent.''' Many insurance companies specialize in logistics bonds.
-* **Step 2: Complete CBP Form 301.** Your agent will help you fill this out, designating you as the "Principal".
+* '''Step 2: Complete CBP Form 301.''' Your agent will help you fill this out, designating you as the "Principal".
-* **Step 3: Determine Bond Amount.** For most carriers, the minimum bond amount is **$25,000** or **$50,000**, depending on the types of goods hauled.
+* '''Step 3: Determine Bond Amount.''' For most carriers, the minimum bond amount is '''$25,000''' or '''$50,000''', depending on the types of goods hauled.
-* **Step 4: Request a Filer Code.** Once the bond is filed with CBP, you (or your agent) must submit a letter of intent to the Port Director where you intend to conduct business to receive your unique filer code.
+* '''Step 4: Request a Filer Code.''' Once the bond is filed with CBP, you (or your agent) must submit a letter of intent to the Port Director where you intend to conduct business to receive your unique filer code.
 </div>
 </div>
@@ Line 82: / Line 82: @@
 <div class="bc-card">
-<p>Once you have your bond, you need to tell BorderConnect about it so the system can properly file your **Type 61 (In-Bond)** or **Type 62 (QP/WP)** entries.</p>
+<p>Once you have your bond, you need to tell BorderConnect about it so the system can properly file your '''Type 61 (In-Bond)''' or '''Type 62 (QP/WP)''' entries.</p>
 <div class="bc-cleanlist">
-. Navigate to **Account > Company Profile**.
+. Navigate to '''Account > Company Profile'''.
-. Scroll to the **Customs (ACE)** section.
+. Scroll to the '''Customs (ACE)''' section.
-. Enter your **Bond Number** and **Surety Code** (found on your Form 301).
+. Enter your '''Bond Number''' and '''Surety Code''' (found on your Form 301).
-. If you have a separate Filer Code, enter it in the **Filer Code** field.
+. If you have a separate Filer Code, enter it in the '''Filer Code''' field.
-. Click **Save**.
+. Click '''Save'''.
 </div>