Bond and Insurance

• Customs Bond
   A Custom bond is a financial guarantee between 3 parties: the Insurance/Surety company issuing the Customs bond, the Principal (who is required to file the bond), and Customs & Border Protection (CBP). The Customs bond guarantees Customs & Border Protection that if they cannot collect monies due from the Principal they can seek remedy, up to the bond amount, from the Insurance/Surety company. The Customs bond also indemnifies the Insurance/ Surety company, allowing them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal’s behalf.
  There are many types of bonds required by Customs & Border Protection (CBP) for various reasons
  
  
• Foreign Trade Zone Bond
  A Foreign Trade Zone (FTZ) is considered non-U.S. territory for Customs’ purposes and foreign goods placed into FTZ may be manufactured, manipulated, repacked or exported without paying duties. The Activity Code 4 Customs Bond, required to be filed by all FTZ operators, is a guaranty to the U.S. government, from an insurance company, that the FTZ will follow all rules governing FTZ’s. If any rules or regulations are not followed and if any duties, fines or penalties arise as a result, the FTZ must pay Customs & Boarder Protection, and if they do not, the insurance company will be required to pay. The bond further allows the insurance company to seek any legal means to recoup any monies paid on behalf of the FTZ.