Question 1

What is the difference between Single Entry Bond and Standing Bond?

Accepted Answer

A Single Entry Bond covers only one consignment and expires after goods clearance (typically 90 days). A Standing Bond covers multiple shipments over a period (usually 12 months) and is more economical for regular importers. Standing Bonds require higher initial security but eliminate per-shipment bond processing, making them suitable for importers with consistent customs compliance records.

Question 2

Can a Single Entry Bond be extended beyond 90 days?

Accepted Answer

Yes, most banks allow extension of Single Entry Bond validity by 30-day intervals, subject to Customs approval and payment of additional pro-rata premiums. However, extension is granted only if goods clearance is in progress and the importer provides justification. Extended bonds are capped at 180 days total; beyond this, importers must apply for a new bond or opt for Standing Bond.

Question 3

Who are authorized to issue Single Entry Bonds in India?

Accepted Answer

Only RBI-authorized scheduled banks (HDFC, ICICI, SBI, Axis, Kotak, etc.) and CBIC-approved surety/insurance companies (ICICI Lombard, IFFCO-Tokio, New India Assurance, etc.) can issue customs bonds. The bond must be issued on the prescribed CBIC form and bear the stamp and signature of authorized bank officials. Importers should verify the surety's CBIC approval status before engagement.

Question 4

What happens if bonded goods are not cleared within validity?

Accepted Answer

If goods remain uncleared after the bond expires, Customs authorities initiate recovery proceedings against the bond issuer. The importer faces confiscation of the bond amount under Section 110 of the Customs Act, 1962. To avoid this, importers must ensure timely clearance or apply for bond extension with valid justification before expiry. Repeated defaults can lead to debarment from customs clearance.

Question 5

Are Single Entry Bonds required for all import values?

Accepted Answer

Single Entry Bonds are mandatory for high-value imports (above ₹5-10 lakhs, threshold varies by port), restricted commodities, and first-time importers as per port authority assessment. Low-value personal or sample imports under ₹50,000 may be exempted. Port authorities publish bond thresholds; importers should consult their Customs Broker or the respective port's guidelines for specific requirements in {city}.

Single Entry Bond

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