Customs Brokers

Stay ahead of the curve with Avalon’s premier programs.

Custom Brokers

Our mix of specialized products, services, insurance markets and technology are the perfect fit for customs brokers.

Customs Bonds

You work hard to provide importers with smooth entry clearance, and we match that commitment by keeping our bond program easy and efficient. Our Centralized Bond Unit can file on your behalf with unparalleled accuracy and our Merlin secure Internet portal automates several value-added services for your importers, including fraud protection alerts and bond insufficiency email notifications.

Actual Claims Examples

To illustrate how valuable Avalon’s Combined Transit Liability program is in managing your business risks, read about these actual claims.

  Merchandise Cleared Incorrectly

Claim Example: Merchandise Cleared Incorrectly

All original documents were received by a customs broker to clear two containers entering the United States from Canada. The first container arrived at the border and was cleared by the customs broker that day. The second container arrived two days later. The broker refused to handle the shipment as the truck driver had no commercial invoice or any other documents.

In error, the customs broker attributed the whole commercial invoice to the first container and duty had been paid as if the whole shipment was in the first container. A claim was filed against the customs broker for storage, demurrage, lost profit and value of goods not sold. All legal fees are covered without deductible because the insured purchased First Dollar Defense coverage.

  • Claim Amount: $60,231
  • Settlement: $40,124
  • Legal Fees: $3,000
  • Insured’s Deductible: $0

  Misclassification of Goods

Claim Example: Misclassification of Goods

In classification, a customs broker entered jackets and pants as jackets only on the import form. The goods were cleared, but later Customs issued a notice for redelivery. It was discovered that the pants had to be broken out separately from the jackets for statistical purposes.

The importer had already sold the goods, so redelivery was not possible. The insurance broker suggested the customs broker appeal to Customs, who accepted the appeal for payment of 25 percent of the claim amount, which the insurance company paid minus the deductible.

  • Claim Amount: $70,683
  • Settlement: $17,657
  • Legal Fees $0
  • Insured’s Deductible: $5,000

  NAFTA Preferential Treatment

Claim Example: NAFTA Preferential Treatment

While rushing to complete documents on a Friday afternoon, a customs broker incorrectly advised an importer that his shipment was entitled to NAFTA preferential treatment.

Upon arrival, CBP demanded additional duties from the importer. The importer filed a lawsuit against the customs broker for the increased amount.

  • Claim Amount: $7,683
  • Settlement: $7,683
  • Legal Fees $2,000
  • Insured’s Deductible: $5,000

  Failure to File Timely

Claim Example: Failure to File Timely

A customs broker was hired to import and clear through Customs a shipment of household goods and personal effects for a member of management of an import client. The customs broker failed to file the entry timely to clear the goods because of a turnover in staff.

Per Customs regulations, the goods were destroyed after being held for 30 days in a general order warehouse while awaiting Customs clearance. The customs broker was held liable for the full value of the goods.

  • Claim Amount: $30,230
  • Settlement: $30,230
  • Legal Fees: $0
  • Insured’s Deductible: $5,000

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Cargo Insurance

If you aren’t discussing cargo coverage with importers, you’re missing revenue and relationship opportunities. Save time with our Merlin portal and insure shipments with the click of a button.

Professional Liability

When a customs broker accidentally misclassifies, fails to follow instructions or incorrectly clears a shipment, it can create costly losses and astronomical legal fees. Rely on Avalon’s broad coverage, quick claims handling and knowledgeable customer service to safeguard your business.

Business Insurance

Secure the full scope of your operations with premier coverage from Avalon. Beyond Property & Casualty coverage, we offer Workers’ Compensation, Umbrella, Commercial Auto and Executive Protection.

Download Applications
Surety Bonds
Customs Bond Application & Indemnity  Word  PDF
Miscellaneous Bond Application & Indemnity  Word  PDF
Avalon Carnet Bond Application  Word  PDF
Carnet Application  Word  PDF
General List  Word  PDF
Power of Attorney - For Exporter  Word  PDF
Power of Attorney - For Freight Forwarder  Word  PDF
Cargo Insurance
Cargo Insurance Application  Word  PDF
Special Quote Application  Word  PDF
Professional Liability
Professional Liability Application  Word  PDF
Regulatory Defense Contract Application  Word  PDF
Special Contract Application  Word  PDF
Business Insurance
Business Insurance Master Application  Word  PDF
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