What is a Custodian of Bonded Merchandise bond?

Posted on: April 30th, 2018 • In Bond Type: 301-2 - Custodian of Bonded Merchandise, Bonds

A Custodian of Bonded Merchandise bond, activity code 2, covers various types of operations for companies transporting or holding goods that have not yet entered the commerce of the United States for export or entry at a later time or place; also known as “Bonded Merchandise.”  Operations such as bonded warehouses, cartmen, carriers (long and short haul truckers) and container stations are covered under this activity.  Also, importers carrying their own bonded merchandise would be required to obtain this coverage.

In order to act as a Custodian of Bonded Merchandise the principal would need to obtain approval from the local Customs port(s) they work with.  Often the local port would require an underlying application to be completed by the principal prior to approving the principal to act in this capacity.  In some instances the underlying application includes a review of the principal’s operations and potentially requires background checks to be completed for the individuals working at the principal who will be transporting, or have access to, the Bonded Merchandise. Once the underlying application is reviewed and approved by the local Customs port, a bond amount will be set.

If a principal has multiple types of Custodian of Bonded Merchandise operations, these various operations can be covered  under one bond as long as the bond amount is sufficient.   If this is the case, the principal must receive approval from each Customs office they will work with.  Once the principal is approved by the local Customs port, the single Custodian of Bonded Merchandise bond would be sufficient to meet the bonding requirements across the United States.

Do you have any clients that fall into these categories?  If so, please contact us and we can help determine if they are required to have a bond or if they have any active bonds already on file.

 

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