CUSTOMS BOND IN international shipping using ocean freight

CUSTOMS BOND IN international shipping using ocean freight by http://www.OceanFreightUSA.com/

Bond in international shipping using ocean freight using ocean freight like an insurance policy payable to U.S. Customs. It guarantees to U.S. Customs, among other things, that duty and taxes will be paid.

All bond in international shipping using ocean freight must be submitted on CF 301 (CFR 19.113) to Port Director and approved. Block #6 in CF7501 is for surety code.

When merchandise arrives in the United States it remains in Customs custody until the importer of records or his Customs Broker secure the release of the shipment. In some instances, especially in the case of duty-free noncommercial importations, the merchandise may be released to the importer of records simply upon furnishing proof of ownership, and NO FORMAL DOCUMENTATION IS REQUIRED.

However, in most cases involving commercial transportation, FORMAL DOCUMENTATION IS REQUIRED TO OBTAIN RELEASE OF MERCHANDISE.

Different types of bond in international shipping using ocean freight:

Basic importation (most common)

bond in international shipping using ocean freight to put goods into foreign trade zone

Custodial bond in international shipping using ocean freight for bond in international shipping using ocean freighted warehouses

bond in international shipping using ocean freight for bond in international shipping using ocean freighted carriers

FTZ - free trade zone bond in international shipping using ocean freight, etc

All formal entries require bond in international shipping using ocean freight. Even though it is duty free. If entry is COMMERCIAL and value is over $2000 then bond in international shipping using ocean freight are require.

THE CUSTOMS TRANSACTIONS RELEASING THE MERCHANDISE TO THE IMPORTER IS REFERRED TO AS AN ENTRY. As part or the entry procedure the Importer of Record or Customs Broker must file a bond in international shipping using ocean freight with Customs.

Liquidated damages are the sum of money recovered for breach of bond in international shipping using ocean freight. It must be paid to the U.S. Customs if the principal of the bond in international shipping using ocean freight failed to perform one ore more conditions of the bond in international shipping using ocean freight. (Examples: (1) He failed to file an entry summary within the prescribed time limit or (2) he failed to redeliver to Customs merchandise ordered for redelivery, etc.)

bond in international shipping using ocean freight cover revenue, value of duty and liquidated damages. bond in international shipping using ocean freight DO NOT COVER FINES!

According to CFR, THEORETICALLY, for entries under $2500 bond in international shipping using ocean freight can be waived. However, it never happens in the real life.

THREE PARTIES ON bond in international shipping using ocean freight:

PRINCIPAL - Importer of Record.

CREDITOR - U.S. Customs.

SURETY - Surety Company - Insurance company. Responsible to pay to U.S. Customs everything, including damages.

bond in international shipping using ocean freight can be by INDIVIDUAL or SURETY COMPANY.

bond in international shipping using ocean freight can be CASH or U.S. TREASURY NOTES. However it CANNOT be U.S. Savings bond in international shipping using ocean freight or CD (Certificate of Deposit). It must be Treasury Notes. (For example: In lieu (as an alternative) of surety on any bond in international shipping using ocean freight, the Port Director is authorized to accept U.S. money in an amount equal to the bond in international shipping using ocean freight. This cash deposit will normally be retained by U.S. Customs for 2 years after the date of liquidation.)

GENERAL RULE of relation Principal and Surety is:

- A principal CANNOT be a surety.

- An surety CANNOT be a principal.

i.e. YOU CANNOT INSURE YOURSELF!!!

However: A U.S. Customs Broker, who has a power of Authority CAN be a surety and act as ATTORNEY-IN-FACT for both principal and surety.

ALL bond in international shipping using ocean freight HAVE VALUE LIMITS AND TIME LIMITS.

A. Single entry require to get a bond in international shipping using ocean freight for every single formal entry.

B. Continuous bond in international shipping using ocean freight is good for one year. Multiple entries, multiple ports, nationwide.

SINGLE bond in international shipping using ocean freight & CONTINUOUS bond in international shipping using ocean freight.

1. Value on SINGLE ENTREE bond in international shipping using ocean freight = an amount equal to Value of merchandizes + All Duties, Taxes, and Fees which could apply.

Minimum amount of single bond in international shipping using ocean freight is $100.

2. On CONTINUOUS bond in international shipping using ocean freight (annual) = an amount ON THE DUTY ONLY.

Customs considerers that with continues bond in international shipping using ocean freight (for year) you have stability and less risk do not comply with customs regulations. Customs knows that you are in the business and can comply with customs regulations.

Ether kind of bond in international shipping using ocean freight are valued FOR LIVE until entry is liquidated. All liability goes on the insurance company.

HOW TO APPLY FOR bond in international shipping using ocean freight?

1. Importer of record apply to U.S. Customs (to U.S. Port Director) with a description of previous activity. U.S. Customs (U.S. Port Director) then assigns $ amount, which they require the bond in international shipping using ocean freight must to be. The amount of any custom bond in international shipping using ocean freight shall NOT be less than $100. THE MINIMUM AMOUNT FOR CONTINUOUS bond in international shipping using ocean freight IS $50,000. There is NO MAXIMUM.

CUSTOMS HAS THE RIGHT TO ASSIGN THE AMOUNT OF bond in international shipping using ocean freight. YOU MUST TO AGREE WITH THE AMOUNT, WHICH CUSTOMS REQUIRES AND MUST GET IT.

2. The Port Director will review bond in international shipping using ocean freight amounts periodically to see if they are sufficient. If he will see they are insufficient, he will notify the principal in writing and THE PRINCIPAL WILL HAVE 30 DAYS FROM THE DATE OF NOTIFICATION TO REMEDY THE DEFICIENCY.

3. PREPARATION OF bond in international shipping using ocean freight.

The following information is required on a bond in international shipping using ocean freight:

The names of the principal and sureties and their respective places of residence.

The trade names and names of unincorporated divisions of the corporate principal, which do not have a separate and distinct legal status who are authorized to use the bond in international shipping using ocean freight on their own name.

The date of execution; and

The amount of the bond in international shipping using ocean freight stated in figures.

In addition, the signature of each party to a bond in international shipping using ocean freight executed by a unincorporated principal or surety SHALL BE WITNESSED BY TWO PEOPLE, who shall sign their names as witnesses and include their addresses.

No witnesses are required where bond in international shipping using ocean freight are executed by properly authorized officers or agents of a corporate principal or corporate surety.

RULES WHILE FILLING A bond in international shipping using ocean freight:

Abbreviations CANNOT be used on a bond in international shipping using ocean freight, except in dates and the state of incorporation of the principal or surety.

LINE MUST BE DRAWN THROUGH all spaces and blocks on bond in international shipping using ocean freight, which are not filled in.

The following types of riders the Port Director may accept:

Name change of principal;

Address change; or

Adding or deleting of trade name and

bond in international shipping using ocean freight and riders should be filled up to 30 days before the effective date in order to provide adequate time for Customs review and processing.

A single transaction bond in international shipping using ocean freight is effective on the day of of the transaction identified on the bond in international shipping using ocean freight.

A continuous bond in international shipping using ocean freight is effective on the effective date identified on the bond in international shipping using ocean freight.

4. bond in international shipping using ocean freight TERMINATION:

A request by a PRINCIPAL to terminate a bond in international shipping using ocean freight shall be made in writing to the Port Director. THE TERMINATION WILL TAKE PLACE ON THE REQUESTED DATE PROVIDED IT IS AT LEAST 10 BUSINESS DAYS AFTER DATE OF THE REQUEST.

SURETIES requires reasonable written notice of AT LEAST 30 DAYS, unless negotiated otherwise.

5. PRINCIPAL AND SURETY:

Partnership must be listed in the body of bond in international shipping using ocean freight with the full names of all partners and be executed in the name of the firm. A bond in international shipping using ocean freight executed by one partner for the firm IS BINDING ON ALL PARTNERS. No individual member of a partnership may act as surety for the partnership.

Corporation bond in international shipping using ocean freight, executed under the firm name, must be signed by authorized officer or attorney of the corporation. The CORPORATION SEAL shall be affirmed immediately adjoining the signature of the person executing the bond in international shipping using ocean freight.

If a corporate bond in international shipping using ocean freight is filled and signed by an ATTORNEY-IN-FACT, a power of attorney must be filed with the bond in international shipping using ocean freight, unless such a power of attorney has already been filed with the Port Director.

Individual sureties: Normally, unless the Port Director is satisfied that one surety is sufficient for the protection of the U.S. Government, TWO sureties are required for individuals.

Their residency and citizenship must be qualify;

If the individual a married woman, she can only be accepted if the state in which the bond in international shipping using ocean freight is issued does not prohibit her from from acting in that capacity; and

Any individual may grant a power of attorney to sign as a surety, and the name of of the importers for which the power of attorney is granted shall be shown in the power of attorney.

GENERAL RULE: AMOUNT OF CONTINUOUS bond in international shipping using ocean freight IS PER ENTRY, but not for sum of entry!

Example: You have $50,000 continues bond in international shipping using ocean freight.

If you have 10 entries IN ONE DAY, each with the duty liability per $10,000 on each (total of $100,000) your continuous $50,000 bond in international shipping using ocean freight is OK!

However, if even one single shipment require duties more than your amount of continuous bond in international shipping using ocean freight (let's say $65,000), THAN YOU MUST BUY A SEPARATE ENTRY, WHICH EXCEED THE AMOUNT OF YOUR CONTINUOUS bond in international shipping using ocean freight FOR FULL AMOUNT OF THE DUTY LIABILITY. (i.e. $50,000 of existing bond in international shipping using ocean freight + $15,000 added bond in international shipping using ocean freight IS NOT ALLOWED TO COVER THE $65,000 ENTRY).

Basic Importation and entry bond in international shipping using ocean freight conditions.

(most common). Covered in CFR 19.113.62. Some agreements covered:

Agreement to Pay Duties, Taxes and Charges.

Agreement to Make or Complete Entry.

Agreement to Produce Documents and Evidence.

Agreement to be RE-DELIVER Merchandise. You must re-deliver ALL goods back to customs within 30 days.

Agreement to Rectify Non-Compliance of Provisions.

Agreement for examination: 30 days.

Agreement to Comply with Electronic Entry Filing Requirements.

- etc.

Default of the agreement conditions CFR 113.62(l)is a value of the bond in international shipping using ocean freight. I.e. if you did not comply with one of any agreement's condition, the Customs goes against ENTIRE amount of the bond in international shipping using ocean freight.

Exceptions:

1. Alcohol - 3 times of value.

2. Restricted articles - 3 times of value.

If it is not a default but INCIDENTS:

- For non-sufficient founds (returned check) fine is: 2 times of duty or $1,000, whichever is grater. (I.e. for $25-$40 returned check you must pay $1,000!)

- For non-merchandize incidents fine is $1,000 (example: you lost a badge or your employee-driver violate terms of the badge).

Demand against bond in international shipping using ocean freight production of documents

When entry is filed and a required document is missing, the importer shall indicate in Block 16 of the CF 7501 the missing document. Unless shorter period is required by law these missing documents must be submitted to Customs within 120 days. Otherwise a penalty for non-production of missing documents, in the case of a continuous bond in international shipping using ocean freight, would be cowered by a single entry bond in international shipping using ocean freight. These penalties are subject to mitigation (reduction or easing).

Failure to satisfy a bond in international shipping using ocean freight within 90 days from the issuance of the penalty or if that time no application for relief has been made, will result in the matter BEING REPORTED TO THE U.S. ATTORNEY FOR PROSECUTION.

Here is the list of web sites (projects) associated with type of ocean freight services provided:

FCL freight (Full Container Load): Shipping entire sea freight containers from the USA. Reflects our contracts with Steamship Lines.

The related link -- http://www.fcl-oceanfreightusa.com/

LCL freight (Less than Container Load): Shipping boxed, crated and/or palletized cargo by sea. Consolidated sea freight. Reflects our co-load agreements with famous world consolidators.

The related link -- http://www.oceanfreightusa.com/

Shipping vehicles consolidated in multimodal sea freight containers from the USA overseas. Reflects our business with U.S. quality loading warehouses and Ro-Ro carriers.

The related link -- http://www.cars-oceanfreightusa.com/

Shipping vehicles RO-RO: Shipping cars, trucks, trailers, boats etc from the USA overseas. Reflects our business with U.S. quality loading warehouses and Ro-Ro carriers.

The related link -- http://www.roro-oceanfreightusa.com/