8240 NW 52nd Ter, Doral, FL 33166, United States of America
I hope you're doing well. I wanted to take a moment to explain what a customs bond is and its importance in the import process. According to the CBP definition, a bond is a performance contract taken out by a party engaging in transactions or activities with CBP to adequately protect the revenue of the United States and to ensure compliance with any pertinent law, regulation, or instructions regarding the conduct of that business. The bond is a contract between the principal and the surety, or an agreement by a principal secured by cash in lieu of surety. CBP is the third-party beneficiary of most CBP bonds. If we are speaking about a continuous bond amount, this total is usually $50,000 at the minimum. It is a legal contract between an importer, a surety company, and U.S. Customs and Border Protection (CBP), ensuring that all duties, taxes, and fees owed on a shipment are paid. Customs bonds are required for all commercial imports valued at more than $2,500, including shipments containing duty-free items. U.S. customs bonds are also commonly known as: Import bonds Customs entry bond Customs surety bonds Activity code 1 bonds (C1 bonds) ISF bonds Activity Code 2 bonds (C2 bonds) A customs bond acts as a financial guarantee of any fees (including duties, taxes, and fines) owed to CBP on a shipment into the U.S. Bonds are not insurance policies. There are many more types of bonds. The CBP has a great publication which is a guide for the public on how CBP sets bond amounts. You can read it here . This is a very brief introduction to the definition of bonds. It is always best to check with your Licensed Custom House Broker on exactly what you need. A Custom House Broker is licensed, regulated, and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting federal requirements governing imports and exports.
Hi Ana, Hope you’re doing well today. Recently, I was talking with a client who didn’t know the full spectrum of services we provide. So, I thought I’d reach out to you and share a little more about my company, should you also be unaware of the full range of services we provide. Who We Are Global Insurance Network is a South Florida-based insurance agency specializing in insurance offerings for those in the international trade community. With 32 years of experience, we stand strategically positioned to serve the trade community because of our knowledge of its unique strengths and challenges. We work with freight forwarders, NVOCC, importers, exporters, customs brokers, shippers, and other types of businesses related to the logistic industry. We provide insurance solutions they need for: Property and casualty Insurance for your premises (normally required in lease) Cargo Insurance including Warehouse Coverage Customs Bonds Freight Legal Liability Including E&O Insurance OTI FMC & NVOCC bonds And more! Whether a one-time shipment or ongoing cargo, bonds, freight liability, E&O, or commercial package policies, our team customizes insurance products to meet all of our client’s diverse needs. How We Can Help Global Insurance Network is committed to helping you navigate and negotiate within the highly specialized international trade insurance marketplace, giving you the ability and confidence to compete on an equal basis, regardless of your expertise or current market share. Our mission is to provide you with a level of professionalism, expertise, and service unmatched anywhere in the world. When I founded Global Insurance Network back in 1990, I wanted to create a happy place for people to work, an environment that people were proud to be a part of. Over thirty two years later, I’m pleased to say we have done just that—and I couldn’t be more confident in our current team of industry experts. Our fully bilingual professional staff understands and embraces the diversity of our multicultural environment. And our close relationships with various London and domestic markets allow us to provide you with the insurance you need at the best rates available. If you’re interested in this type of service and support, please give me a call so we can set up a time to discuss your needs and go over any questions you may have. We’re here when you need us.
I hope you’re doing well this week. I thought I’d take a minute to touch base about freight legal liability insurance. As I review data rolling in from last year, it’s clear just how important it is for companies offering logistics services to have the right coverage. Consider the following: According to the World Shipping Council, ships transport about 226 million containers each year, with cargo valued at more than $4 trillion. Shipping companies lost an average of 1,382 containers between 2008 and 2019. Nearly double that amount, the highest in seven years, went overboard over a two-month period from November 30, 2020, to January 31, 2021, trade magazine American Shipper reported. This increase in losses can be attributed to things including container ships getting larger each year, thus carrying more cargo, winter winds being historically strong, and product demand surging as people spent time at home during the pandemic. Container ships are getting bigger every year , which means they're carrying more cargo. Winds last winter were stronger than usual. In fact, going back to 1948, last winter had the second strongest winds on record. At the same time, demand surged for products as people spent more time at home during the pandemic. So why are freight legal liability policies so important? They kick in if a client has elected not to purchase cargo insurance from you and/or they have their own insurance policy--and in this instance, their company is subrogating yours. Alternatively, freight legal liability comes into play if a client does not purchase cargo insurance and chooses to have none in place, thus accepting the risk for the full commercial value of their goods should something happen to their shipment. In all cases, the client would receive a limited reimbursement per their mode of transportation. A freight legal liability policy will cover the logistics provider from the following: Damaged goods based on the terms and conditions of the HBOL Subrogation claims by client’s insurer Errors or omissions made outside of your oversight Warehouse damages pre- and post-shipping (only if the client purchased coverage and has a warehouse) Motor truck cargo loss or damage (only if the client purchased coverage and owns trucks) The big picture is this: a freight legal liability policy covers you in the event you’re held legally liable for a shipment you handled by air, ocean, rail, or truck. This differs from freight cargo insurance, which one must purchase if they want 100% of the value of their goods protected. I hope these are helpful insights into how a freight legal liability policy can protect your assets. If you’d like a quote or would like to discuss this in more detail, feel free to reach out. Hope to connect with you soon.
Hope you are doing well! I know delivering top-notch customer service is what we all strive for - Excellence. I wanted to remind you about your warehouse coverage and cargo insurance limitations. I know sometimes in the rush of the day, as more pressing matters demand your time and attention sometimes a simple thing can have consequences. Your warehouse coverage under your IGI policy does not cover any container left loaded outside without the underwriter's approval. Also there is no outside storage included on the warehouse coverage. You would need to have the underwriter's approval prior to doing so otherwise it is not covered. With that in mind, I thought I’d share five tips to keep in your back pocket as you juggle the many demands of your workday. You may already be aware of them, but a good refresher never hurt anyone! Let your Management Team know so that they stay aware of these scenarios. Remember to know your policy limit on the warehouse coverage. If it needs to be increased for a short time, then with adequate notice we can approach underwriters for this. Containers left empty and unloaded are not covered by your cargo policy whatsoever. Be aware that some steamship lines have a clause (on their receipt) when that container is delivered to your premises, they make you responsible not only for the container but the chassis too. If they are stolen, you are responsible (look at the wording you sign for on their receipt) in most cases for the replacement cost of them not the actual cash value. Meaning if it's a 2015 Chassis and 2019 Container you will have to replace new for old. Some coverage for this is available added on to your package policy (normally required by the landlord). Also, if you carry a freight services liability policy through our office it has coverage available. As part of the insuring conditions your alarm system must always be fully functional and a serviced for maintenance in case of an inciden If you’d like to chat about these or other practices, give me a call. I’m here to help you in any way I can.
