Customs Bond Types Explained
Every US import requires a customs bond — it's CBP's financial guarantee that duties, taxes, and fees will be paid. Choose wrong and you're either overpaying per shipment or stuck without coverage when you need it.
What Is a Customs Bond?
A financial guarantee between the importer, CBP, and a surety company.
A customs bond is a legal contract between three parties: the principal (importer), the obligee (US Customs and Border Protection), and the surety (an insurance company). It guarantees that the importer will pay all duties, taxes, and fees owed to CBP — and comply with all US import regulations.
Think of it as an insurance policy for the government. If you fail to pay duties or violate import rules, CBP claims against the bond. The surety pays CBP, then comes after you for reimbursement. Without a valid bond, your cargo doesn't clear customs — period.
Bonds are required for ALL commercial imports into the US, regardless of value. Even if your shipment is duty-free, you still need a bond because CBP uses it to guarantee compliance with all regulations — not just duty payment.
Single Entry vs Continuous Bond
The two bond types serve different importer profiles. Here's how they compare.
| Feature | Single Entry Bond | Continuous Bond |
|---|---|---|
| Coverage | One shipment only | All shipments for 12 months |
| Cost | $50–150 per entry (+ surety fee) | $400–600 per year (typical premium) |
| Bond Amount | Duties + taxes + fees for that shipment | Minimum $50,000 (10% of prior year duties) |
| Break-Even | Best for 1–3 imports per year | Best for 4+ imports per year |
| Processing | Must be obtained before each entry | Filed once, valid for 12 months |
| ISF Coverage | Separate ISF bond may be needed | Covers ISF filing automatically |
| CBP Activity Code | Activity Code 1 — Single Transaction | Activity Code 1 — Continuous |
Single Entry Bond — When to Use
Best for infrequent importers. One bond per shipment.
How It Works
A single entry bond covers exactly one customs entry. You purchase it before the shipment arrives, it covers the duties and fees for that specific entry, and it expires once the entry is liquidated (typically 314 days after entry). You need a new bond for every shipment.
Cost Calculation
The bond amount must equal the total entered value of the goods plus all estimated duties, taxes, and fees — or $100, whichever is greater. The premium you pay the surety is typically $50–150, depending on the bond amount and your credit profile.
Best For
Importers with 1–3 shipments per year, one-time imports, sample shipments, personal imports, and companies testing a new product line before committing to regular importing.
Limitations
Cannot cover ISF filings (you need a separate ISF bond). More expensive per-shipment than continuous bonds for regular importers. Must be arranged before each entry — delays if your broker can't get one in time.
Continuous Bond — When to Use
Best for regular importers. One bond covers everything for 12 months.
How It Works
A continuous bond covers all customs entries at all US ports of entry for a 12-month period. It automatically renews annually unless cancelled. One bond covers formal entries, informal entries, ISF filings, and FTZ admissions — everything under your importer number.
Bond Amount
The minimum continuous bond amount is $50,000. CBP requires the bond be set at 10% of duties, taxes, and fees paid in the prior 12 months — but never less than $50,000. If you paid $800,000 in duties last year, your bond needs to be at least $80,000.
Best For
Any importer with 4+ shipments per year, companies importing regularly, anyone who files ISF (the bond covers it), and importers who want seamless processing without per-shipment bond arrangements.
Sufficiency Reviews
CBP reviews continuous bonds annually for sufficiency. If your import volume or duty payments increase significantly, CBP may require you to increase your bond amount. An insufficient bond can result in cargo holds until you obtain a rider or new bond.
Other Bond Types You Should Know
Beyond single and continuous entry bonds, there are specialized bonds for specific situations.
ISF Bond (Activity Code 2)
Required for ISF (10+2) filing if the importer doesn't have a continuous bond. Covers penalties for late or inaccurate ISF filings. A continuous entry bond automatically satisfies the ISF bond requirement.
Foreign Trade Zone Bond
Required for operators of Foreign Trade Zones. Covers duties on goods admitted to the FTZ. Amount determined by CBP based on the zone's activity level.
Drawback Bond
Required when claiming duty drawback (refund of duties on exported or destroyed imported goods). The bond guarantees that if the drawback claim is denied, duties will be repaid.
Custodian of Bonded Merchandise
Required for operators of bonded warehouses, container freight stations, and other facilities that hold imported goods before duty payment. The bond covers potential duty liability on stored goods.
International Carrier Bond
Required for ocean carriers, airlines, and other international carriers bringing cargo into the US. Covers potential penalties and duties on cargo transported by the carrier.