The United States Customs and Border Protection (CBP) requires all importers to have import bond insurance. This type of bond is an agreement between the principal (the importer or carrier), the surety (the insurance company that writes the bond), and the beneficiary (the CBP), and it is primarily designed to act as a guarantee that customs laws will be followed properly. It ensures to the CBP that all rules and regulations are followed to the letter and that all import taxes and duties required are paid.
There are many requirements and fees associated with importing goods into the United States. Import bond insurance guarantees aspects of delivery, payment, and overall compliance with both Customs regulations and related regulations from other government agencies. It can state that the principal agrees to deliver the merchandise completely and even redeliver it if Customs requests it. The bond ensures that taxes and duties are paid on time and compliance with the regulations that come with importing duty free merchandise. The bond principal also agrees to comply with all government agencies regarding importation regulations and to produce the appropriate paperwork when requested. If the principal fails to do anything agreed upon in the bond, the bond requires the surety to pay penalties for said breach.