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    March 12, 2021

    Useful information

    Freight broker surety bond


    What is surety bond for brokers

    The import or export of goods or any other cargo across the border is a complex, multi-stage process. Large companies often employ a specialist who deals exclusively with export or import clearance. Such employees have to literally move to customs control posts in order to always solve any problem on time or find a way out of the situation. And unforeseen circumstances arise very often, since the customs legislation of all countries is very unstable.

    Who is a customs broker and who needs his services

    A customs broker is a legal entity that is authorized by a surety agreement to represent the interests of its client during customs clearance of goods. In fact, it is an intermediary between the owner of the cargo and government agencies.

    What freight broker surety bond used most frequently? Companies whose business is related to the export and import of various categories of goods. This is especially true for those who regularly carry a large range of different products from different countries. Most often these are supermarket chains. Each category of cargo has its own specifics.

    What is transported depends on what documents and certificates must be submitted to customs. Depends on the amount of fees and other payments. The amounts may vary, depending on the batch sizes. All the subtleties are known only to a specialist who constantly keeps his finger on the pulse of the latest changes in the rules and legislative requirements.

    Guarantee of a customs broker for the transit of goods

    Often, goods that cross the state border are not intended for sale in that particular country. Cargoes follow further, but they still have to go through control and transit duties and taxes must be paid. All documents and procedures can be drawn up in special warehouses and points for work with transit cargo. Sometimes such places are located hundreds of kilometers from the border or its crossing point. To avoid the situation when the cargo entered the territory of the country and, not without paying taxes and fees, dissolved in its limitless expanses, there is an institution of customs guarantee. In some cases, the owner of the cargo acts as a surety. In this case, he must:

    • Provide your goods on security;
    • Freeze a certain amount in your accounts;
    • Contact a banking organization that will act as a guarantor.

    The guarantors give a guarantee that all duties and payments in favor of the state will be made. That is, if the carrier or the owner of the cargo has not paid these amounts, they will be charged from the guarantor.

    Nowadays, many freight brokers take on the role of guarantors in the transit of goods. If a company that provides a client at the border conducts all the legalization and customs clearance of goods, it is quite logical and correct that it will act as a surety for the transit of goods through a third state.

    Why do the parties need it? First of all, it is very convenient for the cargo owner. He does not need to deal with the guarantee himself. There is no need to freeze money in your accounts. For brokers, this is an added advantage in a competitive niche. The client will rather work with full cycle companies than look for another guarantor besides a broker. Moreover, the service is not free and the broker himself can control the payment of duties and taxes in a timely manner and in full.