We are often asked about this topic and there seems to be a great deal of confusion!
CUSTOMS BONDS DO NOT EXPIRE, AND THEREFORE, DO NOT RENEW.
Phew, I said it, it feels wrong, it doesn't make sense, but that's the way it works.
Ok, so now what? The continuous bond is sold for a period of time, typically one year. Some companies sell a "three year bond" to capture the revenue upfront, we don't do this and price our bonds at fair price ($200-$250 depending on forwarder subscription level for 50K bond).
At INLT, we issue a Net 90 invoice, due 30 days after the "anniversary date." We ask that our customers inform us within 30 days of receipt of the invoice if they desire to terminate, at which point we void the invoice and request the termination. Why? Because unless terminated, by either the IOR or the surety, the bond "continues" to remain in place.
So, why terminate? 1) IOR does not need a bond on file anymore (no longer importing), 2) IOR is switching bond providers, or 3) IOR did not pay the premium to their bond provider to keep their continuous bond on file so the surety terminates the bond.
Of course, Customs and Border Protection is the ultimate authority here, but I hope this clears up some confusion on this topic, it took me a bit to "get it." If you want to chat about how INLT can help make this process more convenient and cost-effective, shoot us a note and let's talk bonds.