What are the primary types of customs bonds?

The primary types of customs bonds are single transaction bonds and continuous bonds. Single transaction bonds are used for one-time shipments, securing the payment of duties and compliance with regulations on a specific entry. This type of bond is suitable for importers or exporters who do not conduct a large volume of trade or only occasionally import or export goods.

Continuous bonds, on the other hand, are designed for businesses that frequently import goods over a period of time. These bonds cover multiple transactions for a specified time, usually one year, allowing businesses to operate without needing to obtain a separate bond for each transaction. Continuous bonds typically provide a more efficient and cost-effective solution for high-volume importers and exporters.

By understanding these two primary types, one can see how they serve different purposes depending on the trading frequency and needs of the business involved in international trade.