Bonds

Companies operating as ocean freight forwarders and Non-Vessel Operating Common Carriers (NVOCCs) in the U.S. 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.

FMC Bond

A freight forwarder is required to maintain a minimum bond amount of $50,000 plus $10,000 for each additional location

NVOCC Bond

The minimum NVOCC bond amount is $75,000, plus $10,000 for each additional branch office acting as an NVOCC.

If a forwarder also has an NVOCC operation within the same corporation, only one license is required; however, a separate bond must be filed.

NVOCC/FMC BOND APPLICATION

When submitting your application, be sure to include:

• Completed and signed bond application
• Previous Year end corporate financials
  (inclusive of balance sheet & income statement)
• Current year interim corporate financial statement
  (inclusive of balance sheet & income statement)
• Personal Financial Statement (blank form provided)
• If new corporation, provide most recent Income Tax Return

Upon receipt of your application, we will contact you should we require additional information.

Activity Code 1

Bond for an Importer or Broker
(most common type of customs bond)
Entries for Immediate Delivery; Temporary Importations; In-bond moves;
Warehouse Withdrawal/Entries; Consumption.

Single Entry Bond for an Importer or Broker
When completed for single transactions, the bond covers only one import entry.

Continuous Bond for an Importer or Broker
Continuous bonds will normally cover all import transactions at every U.S. Port.

Activity Code 2

Custodian of Bonded Merchandise
Bonded warehouse; container freight station; bonded cartman; bonded carriers

Activity Code 3

International Carrier
For clearance or entry of vessels or aircraft arriving from outside of the United States.

Other Customs Bonds – Not so Common

• Activity 3a – Instruments of International Traffic
• 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

Bond Application Form

When submitting your application, be sure to include:

• Completed and signed bond application
• Previous Year end corporate financials
  (inclusive of balance sheet & income statement)
• Current year interim corporate financial statement
  (inclusive of balance sheet & income statement)
• Personal Financial Statement
  (blank form provided)
• If new corporation, provide most recent Income Tax Return

Upon receipt of your application, we will be in touch with you should additional information be required.