When it comes to custom bonds insurance, it can be daunting to try to figure out which types you need. This is especially true for those that are unfamiliar with the way that customs insurance works. For instance, do you know what drawback bonds insurance is? It’s important to know what each type of insurance is and what each is needed for. The following will dive into drawback bonds insurance and what it’s used for.
The basics of drawback bonds are that they are designed so that some goods can enter the U.S through customs but then can be shipped elsewhere later. This allows for a certain back and forth in the exchange process.
Purpose of Drawback
Drawback bonds insurance can be used in a few different ways. One of the most popular, however, is warehousing. Say that you own a clothing store and you allow your designs to go to the US. If the warehouse is in the U.S, but the clothing is going to be shipped out worldwide, then you’ll need this form of insurance.
When you run your own business, you never want to forget about what kinds of insurance you need. You especially want to remain under legal requirements and make sure that you don’t lose more money than you need to.