Types of Custom Bonds:
- Import Bonds: Guarantees the payment of customs duties and taxes on goods entering the country.
- Export Bonds: Ensures compliance with export requirements, including deferred tax or duty liabilities.
- Transit Bonds: Provides a guarantee for goods moving through one or more countries to ensure customs compliance at each point.
Coverage: Generally covers 10% of the contract value, adaptable to meet specific project needs. The bond amount is usually equivalent to the value of duties and taxes owed on the goods.
Protection: Secures project owners against non-performance, ensuring continuity even in the event of contractor default.
Flexibility: Bond terms and amounts can be tailored to align with project milestones, timelines, and specific transaction requirements.
Process:
- Application: Contractors submit required documentation (e.g., contract details, financial statements) for bond issuance.
- Evaluation: Aptic Financial Group assesses the contractor’s financial standing and project risk.
- Issuance: Upon approval, the bond is issued to the project owner.
Risk Management: Comprehensive risk assessment of the client and transaction, ensuring compliance with customs laws and obligations.
