Customs Bond
Financial guarantee for payment of duties and taxes.
Detailed Explanation
A Customs Bond is a contract used to guarantee that a specific obligation will be fulfilled between the Customs agency and an importer. Its primary purpose is to ensure that all duties, taxes, and fees owed to the federal government will be paid. It allows importers to take possession of their goods before final payment is made. Bonds can be single-entry (for one shipment) or continuous (valid for one year for all shipments).