What are the Different Types of Customs Bonds?

When you’re a small business owner or an entrepreneur, you must know the difference between different types of bonds. You may wonder what kind of bond you need for your new business venture or project. If so, read on to learn more about these bonds and why they’re essential.

customs bond is a piece of paper a court uses to ensure that the defendant shows up for their scheduled court date. A person in need of a bond is called the defendant. Defendants who can’t pay the total amount for their bond are allowed to pay in installments.

Discussed below are the different types of surety bonds used in custom. 

Form D-120 Bond

A Form D-120 Bond is a surety bond used to guarantee contractors’ work in the public sector. The bond protects the public from fraud and other misconduct by ensuring that money will be paid back if a contractor fails to complete their project or provide adequate service.

Custom Broker License

A customs broker license is a document that allows you to act as an intermediary between buyers and sellers of a wide variety of products. This type of bond is only available in some areas, but it can be obtained through the US Department of Commerce, granting you access to trade data and networks with other customs brokers.

Non-Resident GST or HST Bonds

  • Non-resident GST or HST bonds guarantee the payment of required taxes, such as the goods and services tax (GST) or harmonized sales tax (HST).
  • These bonds are used by individuals who are not residents of Canada when importing taxable goods into Canada. They need to be paid before you can import your goods into the country, but they can also be used if you’re importing capital property for business purposes.

Importer Direct Custom Bond

An Importer Direct Custom Bond is a specialized insurance product that provides coverage for importers shipping goods into the United States. This type of bond allows you to adjust your coverage amount, which can be helpful if your business volume changes over time or if you’re shipping different types of goods from one location to another.

Unlike other types of bonds, an Importer Direct Bond does not require a surety agent or broker on its policy. You will pay all premiums directly to the insurance company and apply for coverage online using a secure website provided by them.

Air Carrier Bonds

Air carrier bonds are used to guarantee that an airline will pay customs duties and taxes if they import goods into the United States. These bonds can be issued for a single flight or multiple flights, depending on the type of bond you choose.

Airlines typically use these bonds because of the high risk they face when importing goods into America. If an airline fails to properly declare their cargo and customs charges aren’t paid, they can end up owing thousands or even millions of dollars in unpaid taxes and duties.


Custom bonds are a great way to ensure people show up for court, and they’re also helpful for non-criminal offenses, such as traffic violations or parking tickets. Knowing the different types of bonds is essential to find one that fits your needs and budget!

Article by Born Realist