March 29, 2022 | Customs Bonds

4 Ways to Evaluate a Customs Bond Provider: An Important Guide for Customs Brokers

Share This:

An import bond is more than a simple commodity. Choosing the right customs surety bond provider can add stability and certainty to your business as well as the flow of your import clients’ goods. Properly vetting your customs bond provider and the surety company they represent will help you deliver on your client’s service expectations.

Here are some  essential characteristics to consider  when making this critical decision.

1. Longevity, Experience, and Service

A good starting point in the vetting process is to look for a partner that demonstrates staying power in the industry and aligns with your company’s standards and principles. In addition to longevity, do they show a commitment to service and retain an experienced staff? Are resources in place to support you and your clients for as long as you need them? Finally, can they provide expertise and guidance to help you effectively manage the impact of regulatory and market changes?

2. Financial Strength of the Surety Company

A financially sound surety ensures stability for your customers, and knowing the company your provider selects is vital for the vetting process.

The primary goal of a customs bond is to assure compliance with all laws and regulations governing import transactions while also guaranteeing payment of duties and taxes to U.S. Customs & Border Protection (CBP). Consequently, the surety company provides the bond’s financial security, which means their role in the process is significant.

The U.S. Treasury Department determines if a surety company meets the financial standards needed to write U.S. Customs Bonds. Refer to  the Department of the Treasury’s list of certified  surety bond providers to view your surety information. You can also  review the surety’s  AM Best Rating for an overview of their financial strength, creditworthiness and ability to meet their obligations.

Other factors to consider when sizing up a  surety are longevity, sound underwriting practices and customs bond expertise. These standards directly  influence sustainability and stability. When a company fails to meet these standards or loses capacity your client may experience pricing fluctuations and additional underwriting scrutiny.

A best practice for long term stability is  to place the bond with a proven  surety through a qualified  agent at the onset.

3. High-End Technology for Fast and Secure Transactions

In the rapid pace of modern trade, customs brokers need access to a fast and secure portal to issue customs bonds. These portals should simplify your procedures and offer seamless software integration via an electronic data interface. Additional features to look for include reporting capabilities that help you manage risk and costs for your clients.

4. Flexible and Responsive

In the fast pace of trade, the ability to transact business efficiently and quickly is key to your success.

 

Why Roanoke may be the Customs Bond Provider for You

Established in 1935, Roanoke was the first company in the United States to serve the needs of customs brokers and their import clients. We are a subsidiary of Munich Re, one of the top 10 commercial insurers and one of the top 100 largest companies worldwide. Our stability in the marketplace attracts top-tier industry talent, including certified customs specialists, accredited insurance specialists, and certified risk management professionals.

We are uniquely positioned to place customs bonds through American Alternative Insurance Corporation (AAIC). AAIC is rated A+, XV (Superior) by A.M. Best Company and has an insurer financial strength rating of AA- (Very Strong) from Standard & Poor’s. Roanoke has been the managing general underwriter for this Munich Re company since 2011.

Roanoke is committed to an ongoing focus on exceptional customer service that incorporates our values of professional, responsive, and competent client care. We call it the “Roanoke Way”. We strive for a collaborative partnership, and we have the know-how and infrastructure to help navigate the entire landscape of surety bond procurement, management, and claims handling. Our cutting-edge, in-house bond portal, FastBondTM provides a streamlined user experience and comprehensive platform to save you time and enable your company’s growth.

If you’re ready to make a change in bond provider or just getting started in the business and looking for the best fit in service, technology, and reliability, please get in touch!

Disclaimer: This information is provided as a public service and for discussion of the subject in general. It is not to be construed as legal advice. Readers are urged to seek professional or legal guidance from appropriate parties on all matters mentioned herein.

Share This:

Related


Critical CBSA Updates Ahead of CARM R3 and Recommended Next Steps

As the Canada Border Services Agency (CBSA) prepares for the upcoming CARM Release 3 (R3) on October 21, 2024, two important notices have been issued to guide businesses through this transition. These notices outline key measures and processes impacting trade operations and compliance. Customs Notice 24-27- Transition Measures for CARM R3 Customs Notice 24-27 details […]

Canada, Customs Bonds

Save Money and Avoid Delays: Expert Tips for Customs Bond-Compliance

Written by Colleen Clarke, SVP, Surety Trade Relations and Business Development Driven by the onset of the trade remedy tariffs in Spring 2018, duties owed on imported goods more than doubled and continue to grow, especially due to by additional duties on goods imported from China. A Surge in Duties, Taxes, and Fees According to […]

Customs Bonds

Important CARM Update for Customs Brokers and Importers

On March 27th, the CBSA held a Trade Chain Partner Working Group meeting and announced the following changes related to CARM’s Release 2 (“R2”), coming May 13, 2024: The minimum bond amount requirement will change from $25,000 to $5,000 for all importers with the implementation of R2. The maximum bond amount will remain capped at […]

Canada, CARM, Customs Bonds

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc. A Munich Re company

Better Business Bureau logoCoverholder at Lloyd's logo