Texas Customs Broker Bond

Texas Customs Broker Bond

The State of Texas has 29 official U.S. ports of entry (this includes land, sea, and air). So if you are an owner of an importing or shipping business and are seeking a customs broker license, you will need to acquire a Customs Broker Bond that is to be filed with the State’s Comptroller of Public Accounts.

VIEW YOUR BOND PRICE

Jet Insurance Company provides the Customs Broker Bond to act as financial assurance for the Texas Comptroller that the licensee will follow import regulations, which include paying all taxes, stamp fees, penalties, and any other liabilities on time and in full. If the customs broker fails to fulfill these license obligations, the bond may be used as restitution to cover any overdue charges due to the State. 

What Is the Bond Limit and Cost of the Customs Broker Bond?

According to the Texas Comptroller of Public Accounts, the Customs Broker Bond limit must be $5,000 plus an additional $1,000 for each location for which the licensee intends to perform their business. 

At Jet, prices for the Customs Broker Bond are a small percentage of the bond limit and are based on a soft credit check of the customs broker. For instance, if you are simply seeking a minimum $5,000 bond limit, rates start at $100 for a one-year bond term. 

For additional custom bond limits, take a look at the price chart below for our various preferred credit tier rates. 

Bond LimitCost
$5,000$100
$10,000$150
$20,000$300
TX Customs Broker Bond Pricing

The Texas Customs Broker Bond Process With Jet

Jet’s application for the Customs Broker Bond was created to be quick and convenient, which means you can apply completely online in just minutes. To begin, we will ask for your contact details, the custom bond limit required, and your personal social security number for a soft credit check (this won’t affect your current score). Once submitted, a Jet underwriter will review your application. If necessary, we may give you a call seeking additional info regarding business financials. You’ll then receive approved rate options via email that are ready for immediate purchase. Just choose the right plan for you and fulfill the payment due. Once complete, a copy of your receipt and bond form will be sent to you instantly. 

The original signed and sealed Customs Broker Bond, along with your completed license application, must be submitted to the Texas Comptroller of Public Accounts at the mailing address listed below.

Texas Comptroller of Public Accounts
PO Box 149354
Austin, TX 78714

The customs broker license application can be found by searching the State’s Comptroller website.

Your license as a customs broker expires on December 31st each year. In order to renew, and maintain your license, you will need to have an active Customs Broker Bond on file with the Comptroller’s office.

No need to worry though! Jet will send you a renewal invoice for your bond prior to its official bond term expiration date via mail and email. To renew, all we require is the fulfillment of the standard payment due. Once paid, your bond will remain active with the State for another term.

If you need to cancel your Customs Broker Bond at any time, please send us a written cancellation request to [email protected]. Once received, Jet will send a 30-day cancellation notice to the Texas Comptroller’s office. Your bond will then be released once the mandatory liability period has officially ended. 

How Does a Customs Broker Avoid Texas Surety Bond Claims?

A customs broker helps manage the State’s import customs clearance by ensuring that all shipments coming into Texas’s ports of entry are in compliance with the U.S. Customs and Border Protection Program. On top of all that, customs brokers within Texas are also expected to follow all tax regulations in accordance with the Texas Tax Code, Title 2, Chapter 151, as it applies to the rules of your license. Failure to comply can lead to the Texas Comptroller of Public Accounts revoking your license, charging penalty fees up to $30,000, and/or a bond claim.

Penalties regarding your customs broker license can occur due to a number of reasons. However, a claim on your Customs Broker Bond will likely only take place if the licensee issues false documentation (exemption certificates) or fails to pay any taxes, stamp fees, license fees, penalties, and/or any other obligations to the Texas Comptroller fully and in a timely manner. This violation will result in the Comptroller filing a claim on your Customs Broker Bond. Funds from the surety bond can cover any fees that are past due, as well as the penalty fees charged upon the customs broker due to their license transgressions.

If the office of the Texas Comptroller of Public Accounts files a claim on your Customs Broker Bond, they will send a notice directly to your surety provider (Jet). Once received, Jet will contact you to request all available information regarding the claim. The Jet team will utilize these details for our own review and investigation of the alleged license violation.

Per the Texas Customs Broker Bond form, Jet is legally obligated to pay out valid claims up to the bond’s limit. Claim payouts will never exceed the amount of the surety bond. You, the customs broker, are responsible for your actions and the actions of your employees. Therefore, you are required to reimburse Jet for the claim payout made on behalf of your business’s license violations. Failure to do so can lead to future difficulties obtaining a surety bond in the State of Texas.

Texas Customs Broker Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: