Surety Bonds

Increase Your Credibility

Surety Bonds, much like guarantees, provide assurance against defaults or other causes for undelivered obligations between two parties.

United Aline offers a variety of surety bonds from Aegis Security Insurance, an A-rated carrier. All bonds are available at a variety of limits with minimal underwriting information required.

The bonds we issue include:

• U.S. Customs Bond (Single Entry Bonds and Continuous Bonds)
• ​Ocean Transportation Intermediary (OTI) Bonds
• New York Liquor Bonds
• NYC Laundry Bonds

U.S. Customs Bonds

Any corporation, company or individual wishing to import goods into the United States, or engage in other import related activities or operations, is required to post a surety bond or its cash equivalent with the U.S. Customs Service. This posting protects the Customs revenue and ensures compliance with the regulations of the United States pertaining to importing and related activities.

In most cases, the best alternative is the posting of a U.S. Customs Bond. Customs bonds are issued by surety companies on a Customs Form 301 and guarantee that the importer will comply with U.S. Customs regulations.

The bond is not designed or intended to protect the importer, nor does it relieve the importer of any of their obligations. The surety company will be called on for payment when the importers cannot or will not fulfill their obligations to the United States government. In turn, the surety company is entitled to full recovery of any loss from the importer. If the importer fails to honor the conditions set forth in the bond, the surety company can be obligated to do so in the importer's place.

Types of Customs Bonds

There are two types of bonds commonly used: Single Entry Bonds and Continuous Bonds. The Customs Bond Form 301 is used for both Continuous Bond and Single Entry Bond use.

• Single Entry Bond (SEB) - An SEB covers only one import entry. It is used by importers who infrequently import to the United States. The minimum amount for a SEB is $100.
• Continuous Bond - A continuous bond will normally cover all transactions by the principal while the bond is valid at all U.S. ports (excluding anti-dumping and countervailing duty entries). This bond remains in force for one year and must be renewed annually. This bond is useful to importers who are involved in trade throughout the year. The minimum amount for a Continuous Bond is $50,000.

Depending on the value of imports and type of commodity, the cost of using single transaction bonds can substantially exceed the cost of a continuous bond. The purchase of a continuous bond may be more cost effective after only one or two shipments rather than purchasing single transaction bonds for each shipment.

While the 301 Bond Form can cover up to ten specific, import-related activities, the needs of most principals typically fall into the first three activities which are covered in this overview. It is important that the bond be completed using the correct activity code to insure the proper coverage for the principal, so a brief description of these activity codes is provided for convenience. Please note that all Customs administration is subject to the discretion of each Port Director.

Different types of bonds are required for various activities coming under the jurisdiction of customs.

Click the chart below for an expanded summary.

Others

ACTIVITY 4 - FOREIGN TRADE ZONE OPERATOR
ACTIVITY 5 - PUBLIC GAUGER
ACTIVITY 6 - WOOL & FUR PRODUCTS LIABILITY ACT
ACTIVITY 7 - BILL OF LADING
ACTIVITY 8 - DETENTION OF COPYRIGHTED MATERIAL
ACTIVITY 9 - NEUTRALITY
ACTIVITY 10 - COURT COSTS OF CONDEMNED GOODS

Ocean Transportation Intermediary Bonds

Companies operating as ocean freight forwarders and Non-Vessel Operating Common Carriers (NVOCCs) in the United States are required to be licensed and bonded as Ocean Transportation Intermediaries (OTIs).

The bond guarantees that contractual relationships with shippers and carriers will be fulfilled. Additionally, the bond responds to claims filed by the shipping public to ensure compliance with Federal Maritime Commission regulations.

The Ocean Shipping Reform Act of 1998 (known as OSRA) resulted in a number of significant changes pertaining to the licensing and financial requirements of OTIs which include freight forwarders and NVOCCs.

These requirements are as follows (as of 2015):

• Licensed U.S.-based Freight Forwarders and NVOCCs: Minimum $50,000 bond and $10,000 for each additional branch office or location
• Licensed Foreign-based NVOCCs: Minimum $75,000 bond and $10,000 for each additional branch office or location
• Non-licensed Foreign-based NVOCCs: $150,000 bond, must use a licensed OTI for any OTI services conducted within the US

New York Liquor Bonds

Part of the process of obtaining a liquor license from the New York Division of Alcoholic Beverage Control (NYABC) requires a New York Liquor License Penal Bond, also known as a Liquor Bond. This bond is typically executed in the sum of $1,000, and can be issued for 1, 2, or 3 years at a time.

These Liquor Bonds indicate that you are willing to protect an obligee from financial damages due to faults or negligence on your part. The NYABC requirement for a New York Liquor Bond promotes reliability among liquor sellers, and ensure that you uphold proper business practices.

New York City Laundry Bonds

The NYC Department of Consumer Affairs requires that all businesses interested in obtaining a Laundry License must provide a properly signed copy of a NYC Laundry Bond.

NYC Laundry Bonds differ in execution amount depending on the number of employees within the business. These values are laid out as follows:

• for 0 to 25 employees: $500
• for 26 to 50 employees: $1,500
• for 51 to 75 employees: $2,500
• for 76 to 125 employees: $3,000
• for 126 or more employees: $5,000

If you are ordering a laundry bond online from United Aline, please ensure that you have selected the bond amount that correctly corresponds to the number of employees in your business.