Continuous Bond

AAA

DEFINITION of 'Continuous Bond '

A financial guarantee commonly used in international trade that renews automatically until it is canceled. Continuous bonds do not expire as long as the client makes the required payment for each renewal. In the United States, any number of insurance companies may sell continuous bonds under standardized terms established by the government. The Revenue Division of the U.S. Customs and Border Protection (CBP) agency approves continuous bond submissions. Information stated on the bond and rider (if applicable) should include the bond amount, principal name, importer name, importer number and CBP-assigned number.

INVESTOPEDIA EXPLAINS 'Continuous Bond '

Types of continuous bonds include customs bonds, airport security bonds, importer security filing bonds and intellectual property rights bonds. The $50,000 continuous import bond is the most common in the U.S. and requires up to 10 days to be put in place. The opposite of a continuous bond is a term bond or single transaction bond. A bond that is not continuous may be renewed using a continuation certificate.

RELATED TERMS
  1. Unlimited Bond Purchase

    A program undertaken by the European Central Bank in October ...
  2. Bond Violation

    A breach of the terms of a surety agreement. A bond violation ...
  3. United Nations Commission on International ...

    A United Nations-sponsored commission that seeks to create a ...
  4. Import Duty

    A tax collected on imports and some exports by the customs authorities ...
  5. Incoterms

    Trade terms published by the International Chamber of Commerce ...
  6. Surety

    The guarantee of the debts of one party by another. A surety ...
Related Articles
  1. Personal Finance

    What Is International Trade?

    Everyone's talking about globalization, so we explain what is it and why some oppose it.
  2. Economics

    Do Cheap Imported Goods Cost Americans Jobs?

    Flooding the market with cheap products can mean job losses and even market collapse - but dumping isn't as threatening as it seems.
  3. There are many ways to rank the word's most powerful companies. Looking at market value, brand value or sales revenue are all methods used to rank the biggest companies in the world.
    Economics

    Most Powerful And Influential Public Companies In 3 Metrics

    There are many ways to rank the word's most powerful companies. Looking at market value, brand value or sales revenue are all methods used to rank the biggest companies in the world.
  4. What's a Multinational Corporation?
    Investing

    What's a Multinational Corporation?

    A multinational corporation is just that – a corporation that operates in multiple nations, with a home office that coordinates global management. Being a multinational corporation is a complicated ...
  5. What does Free Carrier Mean?
    Investing

    What does Free Carrier Mean?

    Free carrier is a trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer ...
  6. A look at China's plan to control population growth and how it could change going forward.
    Economics

    China's One-Child Policy Explained

    A look at China's plan to control population growth and how it could change going forward.
  7. Economics

    What is the difference between loan syndication and a consortium?

    Learn about consortiums and loan syndications, two types of multiple banking arrangements designed to finance transactions that single lenders do not handle.
  8. With the second-largest economy in the world, China has significant (and growing) influence on the global economy. But how is that impact figured?
    Economics

    A Look At China's Growing Influence On The World

    With the second-largest economy in the world, China has significant (and growing) influence on the global economy. But how is that impact figured?
  9. What is globalization?
    Investing

    What is Globalization?

    As a business term, globalization refers to the tendency of international trade, investments, information technology and outsourced manufacturing to weave the economies of diverse countries together.
  10. Tips and strategies for users to trade in different exchanges around the world.
    Economics

    Ever Wanted to Own International Stocks? Here's How

    Tips and strategies for users to trade in different exchanges around the world.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center