With a freight broker bond, the surety company is guaranteeing your performance by backing you financially. If the surety company who writes your bond is financially weak, this is a red flag that they may not have the cash to pay claims on their customers' bonds. A surety bond guarantees that you will meet your contractual obligations. Insurance brokers, we are uniquely qualified to serve your surety bond needs.
Two types of bonds available:. Single Entry Bonds (SEB) cover a single import transaction at one port of entry. Why is a bond required to import goods?A party that imports merchandise into the US or transports imported goods through the US (when moving goods in bond) must provide a surety bond (Customs bond) to CBP to assure financial responsibility. The bond protects the US government in the event the importer does not fulfill their financial obligation to pay CBP (e.g., duties, monetary penalties, etc.).A Customs bond is essentially a contract between the importer, the surety, and CBP. If the importer fails to meet their financial obligation to the government, the surety is required to pay the amount owed to the government on behalf of the importer. Coverage includes monetary penalties such as liquidated damages. Customs can issue a claim for liquidated damages for a variety of reasons including failure to produce necessary documents on an import entry, failure to file an entry in a timely manner, pay duty owed, or failure to redeliver goods.For more information regarding surety bonds and the right to make entry, please.
. sharesEditor’s NOTE: Cerasis has a current series going on around the subject of freight claims in recent blog posts. We covered the 6 steps of and the difference between. Today we will bring you a guest post from our friends over at. They will walk you through the steps of how to file a claim on freight broker surety bonds. The increase in the freight broker surety bond that went into affect in October of 2013 was put in place to start fighting the reputation that freight brokers have as fly by night businesses, stiffing shippers with the cost of freight invoices they thought might have been paid, as well as a myriad of other issues.
You can read about the. The following post is in line with our mission to educate shippers (and those in the industry) on the various aspects they and third party logistics companies face every day in order to make their jobs easier.How Claims on Freight Broker Surety Bonds WorkIn the world of freight transportation, there are many parties involved.