As a merchant, if you are receiving imported goods, you may also need to export those goods from time to time. Every time you receive a shipment at a port, you must pay a number of duties, taxes and fees in order to cover the transport and shipment service. Many of these costs must also be paid when you export shipments elsewhere. If you invest in a US customs bond, you may be eligible to receive what is called a drawback. In such a situation, you may receive a refund that exempts you from paying customs costs twice.
How Does a Bond Ensure a Drawback?
You may wonder how a US customs bond will ensure you receive a drawback on your merchandise. It works, specifically, in the following ways:
- The bond’s principal is entitled to a duty refund
- Proof of import and export may be required
- The principal may request an expedited refund
Trade Safely With the Insurance of a US Bond
If you are importing or exporting at a port, you need guarantees in place to protect your investment and insure you receive your merchandise. In addition to entitling principals to a drawback, a US customs bond provides protections that make trading easier and faster than it is without.