The broker's own bonds
A licensed customs broker may post its own Activity Code 1 bond and enter merchandise as importer of record for clients who have not obtained their own. Brokers that file ISF in their own name for clients carry a continuous Activity Code 16 bond. Brokers that operate a container freight station or move client goods in-bond need Activity Code 2 custodial coverage.
Placing bonds for clients
Brokers may execute a client's bond as attorney-in-fact under a power of attorney. In practice the broker gathers the client's application, credit authorization and financials, transmits them to the surety, and the surety files the executed bond with CBP electronically. The client is the principal and signs the indemnity agreement; the broker's role is intermediary and, often, the party who spots sizing problems first.
Forwarders and NVOCCs
Freight forwarders that file ISF as agent carry Activity Code 16. NVOCCs with advance manifest obligations carry Activity Code 3 international carrier bonds and, where they operate equipment, Activity Code 3A. Forwarders that consolidate export cargo under bond should note that Activity Code 14 was retired in 2022 and the relevant coverage is now Activity Code 2.
Working with Customs-Bonds.com
- Standard and non-standard programs under one roof, so a client declined by the standard market does not leave your desk.
- Every activity code written in-house, including the bespoke instruments for Activity Codes 12 and 17.
- Same-day acknowledgment of every submission and clean files on file with CBP in one to three business days.
- Direct underwriter access at (800) 373-2804 and underwriting@customs-bonds.com.
Frequently asked questions
Can a broker's bond cover a client's entries?
Yes, if the broker enters as importer of record under its own Activity Code 1 bond. Most clients with recurring volume should obtain their own bond.
Who signs the indemnity agreement?
The principal on the bond — the client — and its owners or indemnitors.
Do you pay broker commissions?
Contact underwriting to discuss intermediary arrangements.
