US Customs Bonds
A Critical Tool for Canadian Exporters
What is a US Customs Bond?
A US Customs Bond is a federal bond that is a financial guarantee required by US Customs & Border Protection (CBP) for any business importing goods into the United States. The bond ensures importers meet all obligations, including payment of duties, taxes, & fees. For Canadian companies exporting oil, gas, and other critical resources and goods to the US, having the right Customs Bond in place is more important than ever to prevent disruption.
Two Types of US Customs Bonds
Single Transaction Bonds (STB)
May be used to secure a one-time importation. STBs are generally for the value of the merchandise plus duties, taxes, and fees.
Continuous Bonds (CB)
Cover multiple transactions. CBs are usually 10% of the duties, taxes & fees paid by the importer during previous 12 months & are valid until canceled either by the importer or surety.
Bond
Purchase
Contact a provider like Cobalt Specialty to review and underwrite your US Custom Bond
CBP
Compliance
Cobalt Specialty’s sister company, Cumberland Surety, will file executed bonds with the CBP on your behalf.
Risk
Mitigation
The bond ensures your compliance with US law, protecting your business from penalties and disruption.
Customs
Brokers
Assists clients in navigating import regulations, access government systems and CBP relationship.
Bond
Release
CB’s are valid until canceled either by the importer or the surety. STB’s cover one-time shipments.
How Cobalt Specialty Inc. Can Help
Cobalt Specialty* is a licensed specialty MGA providing specialized surety bond solutions to the natural resources industry in Canada and the US by providing exclusive access to its sister company, Indemnity National Insurance Company (INIC). INIC is a surety-focused AM Best A rated Admitted U.S. carrier and has partnered with a Canadian AM Best A- rated domestic front to facilitate Canadian surety solutions. Cobalt primarily targets reclamation bonding and supports other specialized commercial and contract bonds inclusive of US Customs Bonds. Cobalt Specialty can support Canadian and US bonding needs with the following capacity:
Canada
$32.5 CDN million per individual bond
$150 CDN million per principal
$150 CDN million per principal
US
Federal Bonds: $11.4 USD per individual bond per principal (US Customs bonds are federal bonds); State-Specific bonds: $35M USD per individual bond, $175M USD per principal
Contact Cobalt
Click here to download additional information about how Cobalt can support your US Customs Bond needs