Every day, goods are traded between the United States and foreign nations. Trade has its challenges, as goods often take a long time to arrive, can become damaged along the way and government tariffs affect the bottom line. Import bond insurance can simplify certain processes and help businesses keep trading. This article will discuss a few of the benefits for traders.
Allowing the transfer of goods to a private owner before all US Customs and Border Protection (CBP) processes are complete is one of the most common provisions that traders take advantage of. This benefits businesses because they can put these goods up for sale right away, or reprocess raw materials into a consumer product rather than having to wait until all CBP requirements are satisfied to conduct business.
Another use is allowing a transporter to move goods from one place to another before CPB duties are paid. This keeps the supply chain in motion, allowing a company to continue to operate and prepare to do business with the recently acquired merchandise.
As you have seen, import bond insurance not only helps to satisfy government requirements, but it also holds benefits for traders. An insurance associate can help you understand the types of bonds available and help you select which is right for your business.