A bond is a written contract in which one party called the surety usually a bank or an insurance company agrees to guarantee the performance of another party the client to a third party called the beneficiary following a contract between the client and beneficiary.
The main aim of customs bonds is to secure duty payable to the government. They can either be General bonds or Particular bonds.
The types of bonds as well as their rules of operation generally depend on the customs regime under which they are issued.
There are various types of customs bonds depending on specific situations under which goods are bonded
Types of Customs Bonds
- CB1 – Bond for delivery of perishable or other goods prior to payment of duty.
- CB2 – Bonds for removal of goods from one port or place to be examined and entered at another port or place.
- CB3 – Bond for the warehousing of goods or removal of warehoused goods.
- CB4 – Bond for exportation
- CB5 - Bond for Shipment of stores.
- CB6 - General bond for security of warehoused goods.
- CB7 – Bonds for goods to be shipped prior to entry.
- CB8 – Transit bond
- CB9 – Transhipment Bond
- CB10 – Bond for re-exportation of imported goods delivered without payment of duty.
- CB11 – Bonds for customs agent.
- CB12 – Bonds for the conveyance of goods subject to customs control.
- CB13 – General bond for ensuring compliance with customs laws and security duties on goods deposited in an Inland Container Depot (ICD).
- CB14 – Bond for removal of goods to or from an exporting process zone.
The wording on these bonds and procedures for obtaining and cancelling them may vary.
Specific types of bonds in a country depend on the provision of the customs regulation of the country.
Regional Customs Transit Guarantee (RCTG)
This is a scheme created by the PTA/COMESA member states in an effort to remove trade and transport barriers within the region.
It’s a transit bond that secures duties and taxes payable to the relevant revenue authority should goods be disposed of in a country of transit.
Under this scheme, only one bond, the RCTG Carnet, is issued and used in all countries of transit up to the final destination. This is in contrast to previous method whereby a different transit bond was required for each country of transit.
Goods are transported under secure seals.
Single, standard set of documents are used throughout the transit from point of initial loading up to the final destination.
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