Commercial Surety Bonds
If you’re an importer/exporter, manufacturer, provide financial or legal services or in any number of commercial industries, managing your risks is part of doing business. Commercial surety bonds provide assurances that tasks get done properly and alleviate you of having to worry about them. They are also required in many cases in order to get a license or for transactions to be processed.
We’ve listed the commercial surety bonds that our ALIGNED Advocates have been securing for our clients for years with a brief explanation of some of the most popular ones.
Types of commercial surety bonds at ALIGNED
Transportation Industry Wholesale Industry Bonds
- Custom Bonds for various modes of Customs Bonded Warehouse Bond Transportation (Highway, Air, Rail) – guarantees that duties and taxes will be paid by the transporter while in their possession.
- Freight Forwarder / Logistics Bond – required by freight forwarders; guarantees payment of duties and taxes.
- License & Permit Bonds – for various states
- Customs Sufferance Warehouse Bond – required by the warehouse for its license; allows taxes and duties to be deferred while goods stored; goods must leave the warehouse within 30 days of arrival.
- US Property Broker Bond
- US Customs Bonds -301
- US Highway Toll Bond
- Fuel Tax Bonds – guarantees payment of provincial taxes.
Wholesale Industry Bonds
- Customs Bonded Warehouse Bond – required as part of the license; allows the warehouse to defer payment of taxes and duties while goods are stored there.
- Importer Bond (Release of Goods Bond) – required to guarantee payment of duties and taxes are made within a month of goods entering Canada; allows goods to enter immediately.
- Excise Tax Bond – required for brewers to get a license; guarantees payment of duties and taxes.
- Customs Sufferance Warehouse Bond
Import/Export Industry Bonds
- Custom Broker License Bond – required for a Custom Broker’s license and guarantees the license holder will comply with applicable laws; for those who process goods in Canada for importers or other third parties.
- Release of Goods Bond (for Importers or customs brokers)
- Freight Forwarder Bond
- Transportation Bond (freight, highway & air)
- Customs Bonded Warehouse Bond
- Customs Sufferance Warehouse Bond
Marine Industry Bonds
- Freight Forwarder Bond
- Carrier Bond
- Importer Bond (Release of Goods Bond)
Financial Institution Industry
- Lost Document Bond – if a financial document is lost, the financial institution will issue a replacement under this bond; reimburses the financial institution if both documents are cashed in.
- Waiver of Probate Bond – required by financial institutions when the owner of a stock certificate is deceased before they will issue another one in the executor or beneficiary’s name.
- STAMP Surety Bond – guarantees that the signature on a financial instrument is authentic prior to sale or transfer.
- Financial Institutions Bonds – Form 14, Form 24 & Form 25
Entertainment Industry
- Carnet Bond – required for goods taken out of the country; guarantees that applicable taxes and duties will be paid to the foreign country if the goods are sold there.
- Temporary Importation Bond – for goods not intended to be sold in the country and only here temporarily; if they are sold, this bond guarantees that applicable taxes and duties will be paid.
- Lottery License Bond – required for a license; guarantees winners of the lottery will receive their winnings within a specified time.
Bonds for Lawyers / Solicitors / Attorneys
- Administration / Estate Bond – guarantees that the estate trustee will pay creditors of the estate and disburse the remaining balance to the legal beneficiaries in compliance with provincial law.
- Foreign Executor Bond – legally required if the executor or trustee of the state is outside of Canada; guarantees the executor/trustee will comply with local legal requirements.
- Guardian / Committee Bond – legally required by guardians who manage the financial affairs of people they have guardianship over.
- Waiver of Probate Bond – required by financial institutions when the owner of a stock certificate is deceased before they will issue another one in the executor or beneficiary’s name.
- Lost Document Bond – if a financial document is lost, the financial institution will issue a replacement under this bond; reimburse the financial institution if both documents are cashed in.
- Missing Heir / Beneficiaries Bond
- Trustee in Bankruptcy Bond – required by the court-appointed trustee in bankruptcy; guarantees compliance with the Bankruptcy and Insolvency Act.
Manufacturing Industry
- Release of Goods Bond
- Importer Bond
- Customs Bonded Warehouse Bond
- Customs Sufferance Warehouse Bond
- Transportation Bond (freight, highway & air)
- Excise Bond – required for brewers to get a license; guarantees payment of duties and taxes.
- Non-Resident GST Bond – required of non-residents who do business in Canada; guarantees payment of GST/HST tax.
Commercial Surety Bonds for the Construction Industry
- Contractor License Bond – required for some contractors to get licensed, contact us to find out if you need a CLB; provides financial protection to consumers.
- Bid Bond – used when a contractor bids on a contract; guarantees contractor’s ability to complete the contract.
- Surety’s Consent Bond – guarantees the owner of the contract that if the contractor wins the bid, the issuer of the bond will issue the remaining bonds.
- Performance Bond – guarantees the owner of the contract that the contract will be completed as specified either by the original contractor or another.
- Labour and Material Payment Bond – issued together with a performance bond; guarantees payment to subcontractors and suppliers.
- Supply Bond – guarantees the contract owner that the supplier will deliver the materials as specified in the contract.
- Sewer Tapper Bond – required by the Municipality; guarantees the road will be restored to its original condition by the contractor.
- Road Cut Bond – required to get a license; protects consumers and guarantees legal compliance.
- Prepaid Contractor License Bond– required to get a license; protects consumers and guarantees legal compliance.
- Roofer’s License Bond – required to get a license to operate a collection agency; guarantees legal compliance; protects consumers financially.
- Electrical Contractor’s License Bond – required to get a license; protects consumers and guarantees legal compliance.
- Electrical / Gas Safety Act Bond – required to get a license; protects consumers and guarantees legal compliance.
- Gas Contractor’s License Bond – required to get a license; protects consumers and guarantees legal compliance.
- Gas Safety Act Bond – required to get a license; protects consumers and guarantees legal compliance.
U.S. Custom Bonds of various types, such as:
- Importer Bond
- Customs Broker Bond
- Custodian of Bonded Merchandise Bond (carriers, freight forwarders, warehouses)
- International Carrier Bonds
U.S. License & Permit Bonds of various types, such as:
- US. Property Broker Bond
- Oversize / Overweight Permit Bond
- Highway Toll Bond
- Excise Tax Bond
- Various State Tax Bonds
- Public Official Bonds
- Fiduciary Bonds, such as:
- Various Court Bonds
- Administrator Bond
- Estate Bond
Bonds For The Real Estate Industry
- Real Estate Agent / Broker Bond – required to get a license; protects consumers and guarantees legal compliance.
- Home Inspection Bond – required to get a license; protects consumers and guarantees legal compliance.
Various Other Business Types /Bonds
- Prepaid Funeral Bond – required to get a license; protects consumers, guaranteeing them they can recover prepaid amounts if the funeral home fails to perform funeral services; guarantees legal compliance.
- Insurance Adjuster’s Bond – required to get a license to operate a collection agency; guarantees legal compliance; protects consumers financially.
- Collection Agency Bond – required to get a license to operate a collection agency; guarantees legal compliance; protects consumers financially.
- Private Investigator / Security Guard Bond – required to get a license; protects consumers and guarantees legal compliance.
- Bailiff Bond – needed for a license; guarantees legal compliance
- Auctioneer License Bond
- Direct Seller Bond – required to get a license as a direct seller; protects consumers financially.
- Grain Dealer Bond – guarantees the dealer will pay amounts due to cash purchase ticket holders, grain elevator receipts and receipts related to grain sales.
- Automobile Recycler Bond – needed for an auto recycling license; guarantees compliance with license requirements; provides financial protection to consumers.
- Automobile Dealer Bond – is needed for a license to operate a dealership; financial protection to consumers.
- Electricity Marketer Bond – required for licensing; protects consumers and guarantees legal compliance.
- Natural Gas Marketer Bond – required for licensing; protects consumers and guarantees legal compliance.
- Excise Act (2001) Bond – required for a license to manufacture and package spirits and tobacco; guarantees payment of special excise duties on these products.
- Excise Stamp (Tobacco) Bond – required to import tobacco products in to the duty-paid market.
