Terminating a Customs Bond


While many other lines of insurance can be terminated on any day the client chooses, Customs bonds require sufficient advance notice and some forethought before being cancelled. The two most common ways to terminate a Customs bond is by a request from the principal, or at the request of the surety.

When a principal would like their bond terminated, they must supply a written request on their letterhead to be sent to Customs. As Customs requires ten business days notice, at the minimum, the requested termination date in the letter must reflect this requirement. Therefore, it is extremely important that our office be notified and provided with the letter well in advance of the anticipated termination date, to ensure that the bond is terminated on the requested date. Once a termination request is issued, it cannot be rescinded. Therefore, the principal must be confident in their decision to terminate their bond.

The surety on a bond can terminate a bond at their discretion with a signed letter, as long as they provide Customs with 30 calendar days notice. If the surety terminates a bond, they must also supply the principal with a copy of the termination request via certified mail. It is also important for the principal to make sure that our office has the correct mailing address on file, so they can receive the certified letter in a timely fashion, should the surety elect to terminate the bond.

Once Customs has approved a termination request, they will provide our office with copies of approved termination requests, which we will forward to the broker, along with any billing adjustments. If you have any questions regarding terminations, please contact our bond department.