Standard and non-standard
Most importers and custodians qualify for a standard customs bond program on the strength of the company's financial statements, claims history, ownership credit profile and time in business. Applicants who do not — newer entities, principals with balance sheets that need collateral support, importers of high-duty or PGA-heavy merchandise, or principals whose recent claims or financial position warrants security — are placed in a non-standard program. The bond CBP receives is identical; what differs is the security behind it.
Who ends up in the non-standard program
- Start-up importers without a full year of financial statements.
- Companies whose duty history grew faster than their net worth.
- Principals with a prior surety claim or a bankruptcy in the ownership group.
- Importers of merchandise with high duty rates or antidumping and countervailing exposure.
- Foreign-domiciled importers of record without U.S. assets.
- Principals curing an insufficiency notice after the standard market declined the larger bond.
What security looks like
Non-standard bonds are typically supported by cash collateral, an irrevocable letter of credit from an acceptable bank, or a personal or corporate guarantee from a creditworthy indemnitor. The amount of security is set by the underwriter against the penal sum and the risk profile; it is rarely the full penal sum. Collateral is released when the bond is terminated and all covered entries have liquidated and any claim cycle has run.
Why it matters
An importer that cannot obtain a bond cannot import. Customs-Bonds.com underwrites both programs under one roof, so a declined standard application does not mean starting over with another surety. Our underwriters routinely place non-standard customs bonds that more constrained markets cannot, and the process from application to bond-on-file is the same one to three business days for a clean file.
Frequently asked questions
Is a non-standard bond less acceptable to CBP?
No. CBP sees the same bond from the same Treasury-listed surety. The security arrangement is between the principal and the surety.
How much collateral will I need?
It depends on the penal sum and risk profile. It is set by the underwriter and is usually well below the full bond amount.
When is collateral returned?
When the bond is terminated and all covered entries have liquidated with no open claims.
