Miscellaneous bonds provided by a Surety market are required by federal agencies to guarantee that a person or entity operating as transportation brokers, ocean freight forwarders, among others in the operations area incidental and common to international trade to fulfill their obligations in a manner that is compliant with federal shipping and US Customs and Border Protection (CBP) agency law. Magaya Insurance Services offers not only Miscellaneous Bonds but also Customs Bonds.
Do you handle cargo to or from the United States? Bonds in the international transport industry are required by the Federal Maritime Commission. These bonds are an agreement between three sides: the bond principal, the FMC (Federal Maritime Commission), and the surety that issues and backs the bond.
There are various different types of bonds used in international trade. Customs bonds (C1, C3, C14) can include both single transaction and continuous transaction bonds, also known as single entry bonds or continuous bonds. OTI bonds are required for non-vessel-operating common carriers in order to provide proof of financial responsibility. There are bonds of many shapes and sizes, and it all depends on what you’re transporting and the other factors involved.
If you are transporting goods into the United States, you will need one of these types of bonds before you can do so. When you have a bond, you become a bonded carrier and are allowed to bring merchandise through a U.S. port of entry legally. If you’re a freight forwarder or NVOCC and you do not get the bond you need within 120 days of qualification, you will not be licensed by the FMC and cannot legally bring merchandise into the United States.