For more Bonded Seal Suppliersinformation, please contact us. We will provide professional answers.
Moving freight in-bond across the U.S. can be a difficult process to get right — especially without a well-rounded understanding of how this is done.
To this point, you’ve likely felt confused about how to properly bond your shipment as the international transportation landscape is riddled with complexity.
Here at Anderson Trucking Service (ATS), we understand the predicament you’re in; without a great transportation partner, it’s not uncommon to feel overwhelmed by bonded transportation. That doesn’t mean you can’t get this right, though. After nearly seven decades in the transportation sphere, we’ve helped many shippers in this same predicament before.
In this article, we’ve outlined the major aspects of bonded shipping so you can ensure to do this correctly when it’s time to get your next load moving.
This includes:
To avoid prolonged delays, unnecessary costs and, in the worst case, a failed shipment altogether, these are crucial understandings. Let’s talk about them.
What is a Bonded Shipment?
A bonded shipment is a shipment that reaches its final destination country by way of one, or more, ancillary countries. Since it won’t be consumed or used in any of the countries traversed along the way, bonded cargo doesn’t officially undergo customs clearance until it reaches its destination country.
As a result, all taxes, duties and fees associated with a bonded shipment’s import are delayed until its terminal arrival. When arranged properly, shipping cargo in-bond helps companies ensure that their international goods are routed appropriately and aren’t “released” until they reach their final location — which can sometimes force them to pay duties and taxes multiple times.
Though there are a variety of situations where bonding a shipment makes sense, this is most commonly done when freight needs to be transported through the U.S. with plans to eventually move along to a foreign country.
How Does Bonded Shipping Work?
Shipping a load in-bond, though an excellent solution in many situations, can sometimes be challenging to get right. In order to ensure the success of this process when shipping in-bond through the U.S., each shipment must have the proper arrangements and paperwork.
Namely, two things must be accomplished before a shipment leaves its country of export:
- A bonded carrier and/or warehouse must be booked
- All documentation must be arranged
A Bonded Carrier and/or Bonded Warehouse Must Be Booked
In order to ship cargo in-bond across the U.S., you’ll need to locate and secure capacity from a bonded carrier. And, should your cargo need warehousing services during transit, a specified bonded warehouse must be used.
Although working with a customs broker and/or a competent freight forwarder will help expedite these arrangements, here’s what you should know about each of them.
What is a Bonded Carrier?
A bonded carrier is a transportation provider that is licensed to move freight through/across U.S. points of entry (ports, border crossings) without having to pay duties, taxes and/or fees on those goods during that specific portion of their transportation.
Utilizing a licensed bonded carrier allows an importer and/or consignee to transport cargo pending customs clearance until it reaches the port of entry at its destination country.
To obtain an international carrier bond, trucking companies must reach out to a surety company that has been approved by the CBP. With their help, carriers complete CBP Form 301, supplying all pertinent information to secure either a “single transaction” or “continuous” customs bond.
For the most part, when shipping a load that originates in Canada or Mexico across the U.S. in-bond, the bonded carriers used also have international authority — allowing them to cross the border and legally operate in multiple countries.
What is a Bonded Warehouse?
A bonded warehouse is a legally authorized building or secured area where cargo — which will eventually be transported to a foreign country for consumption/utilization — can be housed, handled and/or manufactured without having to pay U.S. customs duties and taxes during its duration at that warehouse.
By and large, bonded warehouses are managed by either a private party (in which situation a customs bond is required) or the U.S. government.
Documentation Needed For Bonded Freight Transport
There are several central documents to the bonded transportation process. Getting your freight transported effectively will take a firm understanding of what’s required of you.
Here are the main documents that are often required to ship a load “in-bond:”
- In-bond application
- Customs Bond
- CBP Form 7512
- Commercial invoice
- Bill of lading
- Packing list
Let’s talk a bit about each of them. . .
What is an In-Bond Application?
An in-bond application is a comprehensive outline of shipment information and transit details that must be submitted to the CBP via an approved electronic data interchange (EDI).
Every in-bond application submitted to the CBP must include the following information:
- A description of the merchandise/commodity in transit: this description must sufficiently relay specific cargo details so that the CBP can determine which governmental agency regulates it.
- The commodity’s HTSUS number: every type of commodity
has an assigned six-digit Harmonized Tariff Schedule of the United States
Want more information on Bz1335e? Feel free to contact us.
. This number should be provided.
- Quantities: all cargo quantities must be included as specifically as possible, listing the total quantities of the
“smallest external packing unit.”
- Container seals and number (where applicable): every in-bond application for containerized cargo must include that container’s number and its related seal number (the number associated with the container’s seal).
- Cargo Destination Within the U.S.: international shipments that are headed toward a U.S. port for export must specifically list the name of that port. If the shipment is destined for a border crossing, that information must be listed.
- Any additional identifiers: any other unique identifying information associated with this shipment must be included in the in-bond application submitted to the CPB. This includes things like entry numbers, visas or licenses issued by the U.S. or any foreign government.
What Is a Customs Bond?
A customs bond is a contract held between the principal importer or shipper of a product, a Surety company and the U.S. Customs and Border Protection (CBP) agency. Through the issuance of a line of credit — from a Surety company to the U.S. government — customs bonds contractually ensure that the principal party responsible for paying for the freight pays all taxes and duties at the appropriate time.
Without a customs bond in place, no shipment can enter the U.S. as these documents protect the CBP in the event that duties and taxes aren’t paid.
In order to successfully ship cargo in-bond, the shipper (seller) and importer (buyer) must have a cargo bond in place as well as a commercial invoice, bill of lading and packing list.
What is CBP Form 7512?
This document, which is crucial to bonded cargo transportation, outlines when freight will enter the U.S. and where, identifies how it will reach its final destination, who the consignee of all goods are, which foreign ports/entrances it will interact with and provide information estimating departure/export dates. Here is a copy of the CBP Form 7512 for your reference.
What is a Commercial Invoice?
Commercial invoices, also commonly referred to as “proforma” invoices (in the U.S.), are a shipment’s preliminary bill of sale. Your shipment’s commercial invoice should include the following information:
- The name, address and distinguishing information for the party selling all goods.
- The name, address and distinguishing information for the party purchasing all goods.
- The declared value of all merchandise being moved.
- Your commodity’s full description with its HTSUS number.
What is a Bill of Lading?
Bill of lading forms document freight services, forming an outline of a shipment’s journey, complete with information such as how freight will be transported, the names and contact information of all parties (consignee, carrier, freight forwarder, etc.).
Depending on your cargo’s transport concept, the format of its bill of lading — of which there are multiple types — will change.
What is a Packing List?
Your packing list should outline information specific to the cargo in transit. This includes the specific commodity in transit, its final destination and the dimensions/quantities of each item. This will help U.S. customs officials understand where their duties lie in relation to your products.
Related: What Documents Are Required For International Shipping?
What Kind of Cargo Can Be Shipped In-Bond?
When accompanied by the proper documentation, the vast majority of cargo can be shipped in-bond throughout the U.S.
This includes containerized cargo (transported via chassis), open deck and dry van freight and products that arrived via roll-on/roll-off or breakbulk ocean transport. To help you make arrangements for your next in-bond shipment it’s important that you work with a transportation provider that has experience in this area.
Related: The Pros and Cons of Using a Freight Forwarder (+ How to Choose Yours)
What Will International Shipping Cost You?
With an understanding of what bonded shipments are, how this process should be arranged and what kind of cargo you can realistically ship, we hope you’re a bit more comfortable now.
For what it's worth, shipping a load in-bond doesn’t need to fill you with dread. You can get this right.
Another question we’re commonly asked regarding this process is “what will this cost me?”
If you have similar concerns and would like some more information on how international freight rates are calculated, check out this article.
Or, if you’d like an exact price for your next bonded shipment, calculated to get your shipment moved without a hitch, reach out to us today.
How do I get bonded and insured?
You can follow the checklist below to get bonded and insured for cleaning services.
1. Research requirements for your cleaning business
First, you’ll need to know what insurance coverage or bonds may be required by your city, county, or state. Start by contacting your local chamber of commerce to learn about the legal requirements in your area. At a minimum, you will need to get a janitorial business license. The agency can also explain any other commercial insurance or bond requirements.
For example, the state of Florida requires cleaning businesses with five or more employees to carry workers’ compensation insurance, as well as commercial auto insurance for any business-owned vehicles.
If your business rents office space or cleaning equipment, your lease or rental agreements may also require you to carry insurance coverage. Check with your landlord and any equipment suppliers to learn what coverage you may need to carry.
Clients may also require you to carry a bond or insurance before they’ll hire you. It reassures them that they’ll be protected in the case of theft or property damage.
2. Determine your insurance budget
You probably have a limited amount to spend on bonds and insurance protection. That’s why you’ll need to figure out how much your business can afford to pay for coverage, and weigh the costs against the risks your company faces.
Keep in mind that getting the right types of cleaning business insurance will likely involve choosing several options to cover a range of business risks. You may be tempted to set aside the bare minimum for insurance protection, but underestimating your risks could hurt your business in the long run.
We’ve provided a summary of how much you can expect to pay for different cleaning business insurance policies and bonds below.
3. Evaluate and prioritize your biggest risks
Cleaning businesses face a variety of business risks. Here are some of the most common hazards cleaning companies face, and the types of insurance or bonds that will protect you:
- Third-party property damage: Imagine that you own a house cleaning company and your employee accidentally knocks over an expensive vase while dusting a shelf in a client's home. The client could sue your company for property damage. In this case, a general liability insurance policy would cover your legal fees and the replacement cost.
- Client injuries: If a client is injured on your property or because of your actions, it can lead to a costly lawsuit. For example, if you own a carpet cleaning business and the homeowner trips over a vacuum cord and breaks an ankle, your business could be liable. Fortunately, a general liability policy would cover the related medical expenses.
- Employee injuries or illness: Certain janitorial businesses, like window cleaning companies, can put employees at high risk of injury. If an employee falls off a ladder and gets hurt, you’ll need workers’ compensation insurance to cover the costs. Workers’ comp coverage is required in almost every state for businesses with employees.
- Business vehicle accidents: Say that you own a pool cleaning business and your employees travel to jobs in company-owned vans. Commercial auto insurance would cover the costs of vehicle or property damage, or injuries due to an accident. If your employees use their personal vehicles for business travel, you’ll need to consider hired and non-owned auto insurance.
- Employee theft: Unfortunately, dishonest employees are not uncommon. If one of your employees is caught stealing from a client, janitorial bonds will reimburse the client directly for their loss.
The best approach may be to make a list of the biggest risks your business faces, along with what coverage you’re required to carry by law or by contract. You’ll need to weigh these against your other business needs to determine the coverage that’s right for you.
If you are looking for more details, kindly visit Wholesale Agricutural Machinery Seal.