What is a Texas Customs Broker Bond?

Learn what a Customs Broker Bond is and how to get it!    

ALTERNATIVE TITLE: The Texas Customs Broker License Bond

Texas Customs Broker BondThe surety bond will act as an assurance that the licensed customs broker will obey the rules of the Comptroller, as well as the provisions of the Tax Code. This will also guarantee the obligee that if the customs broker (principal) defies one of the aforementioned provisions or rules, the former will be justifiably compensated under the terms of the surety bond.

If there are any unpaid taxes, stamp fees, license fees, penalties, and other liabilities, the comptroller may forfeit a customs broker license bond as well.

 

What is a Customs Broker?

A Customs Broker is an importer and exporter agent that is licensed by the United States Customs and Border Protection. A Customs Broker may be an individual, partnership, or a corporation.

They are responsible for making sure that the laws and regulations governing exporting and importing are strictly followed that duties are properly paid, clearance of the goods are secured, and that customs transaction is properly recorded.

 

What is a Texas Customs Broker License?

Before a U.S. Customs Border and Protection-licensed Customs Broker can perform his professional duties in Texas, the state requires him to have a Texas Customs Broker License issued by the Office of the Comptroller. This license will be needed for each business location.

This purpose of this license is for the Customs Broker to be able to issue export certification forms to claim exemption from Texas sales and use taxes. You have to meet all the requirements below to obtain this license. Below are all of them:

  • Acquire a surety bond from a surety bond company authorized to conduct business in Texas.
  • The one applying should have a United States Customs Border and Protection license that is current.
  • Submit a complete AP-168 Application Form.
  • The customs broker is required to pay an annual license fee for each place of business from which the customs broker intends to issue export certification forms. The following are the Annual License Fee Schedules and amount:
    • $300 fee for a license with an effective date beginning January 1st until March 31st.
    • $225 fee for a license with an effective date beginning April 1st until June 30th.
    • $150 fee for a license with an effective date beginning July 1st until September 30th.
    • $75 fee for a license with an effective date beginning October 1st until December 31st of a calendar year.
  • All the necessary taxes and fees administered by the comptroller are paid on time.

 

How much is the bond amount?

The bond amount is $5,000 plus $1,000 for each place of business from which the licensed customs broker desires to issue export certification forms.

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