Customs Bond for U.S. Importers
If you import goods into the United States, U.S. Customs and Border Protection (CBP) will not release most commercial shipments until you have a customs bond on file. It is one of the first things a customs broker will ask you for, and for many new importers it is the first surety bond they have ever needed. The good news is that, unlike a lot of the bonds we write, a customs bond is usually straightforward to obtain. We have been writing surety bonds since 1971, and we can get most importers bonded quickly so your freight keeps moving.
If you already know you need a continuous import bond and want to get started, call us at 800-333-7800 or request a free quote online. We will walk you through which bond you need and the amount that fits your import volume.
What is a customs bond?
A customs bond is a contract that guarantees you will comply with CBP regulations and pay all duties, taxes, and fees owed on the goods you import. It is required for most commercial importations and for a number of other regulated activities at the border. Without it, CBP will not clear your shipment.
Like every surety bond, a customs bond involves three parties. You, the importer, are the principal. CBP is the obligee, the government agency the bond protects. The surety is the company that guarantees your obligation. If you fail to pay the duties and taxes you owe, or you violate import regulations, CBP can make a claim against the bond. The surety pays CBP up to the bond amount, and you are then required to reimburse the surety. In practice, importers who pay their duties and follow the rules never see a claim, which is part of why these bonds are considered relatively low risk and are easy to obtain.
Who needs a customs bond?
You generally need a customs bond if any of the following apply to your business:
- You import commercial goods valued at $2,500 or more, which require a formal entry.
- Your imported goods are subject to the requirements of another federal agency, such as the FDA, USDA, EPA, or others, regardless of value.
- You file an Importer Security Filing (ISF), commonly called a "10+2," for goods arriving by ocean freight.
- You operate as a customs broker, an international carrier, or a foreign-trade zone operator.
One point that surprises many first-time importers: duty-free status does not remove the bond requirement. Even if your goods carry no duty, CBP still requires the bond for formal commercial entries. If you are importing for personal use in small quantities, you typically do not need one, but the moment you are importing commercially, the bond is almost always part of the process.
Single transaction bond vs. continuous bond
There are two ways to satisfy CBP's bond requirement, and choosing the right one is mostly a matter of how often you import.
A single transaction bond, sometimes called a single entry bond, covers one specific shipment at one port. It makes sense for a business that imports rarely, perhaps a one-time purchase or an occasional shipment. The bond amount is generally set at the value of the goods plus duties, taxes, and fees, and for goods regulated by other federal agencies it is often three times the shipment value.
A continuous bond covers all of your imports, at every U.S. port, for a full year, and it renews annually. For any business that imports with regularity, the continuous bond is almost always the better choice. It is more cost-effective per shipment, it covers ISF filings, and you are not arranging a new bond for every container. The large majority of active importers carry a continuous bond for exactly these reasons.
How much is a continuous import bond?
For a continuous import bond, CBP sets the bond amount at 10 percent of the total duties, taxes, and fees you paid over the previous 12 months, rounded up, with a minimum bond of $50,000. From there, the amounts step up in $10,000 increments up to $100,000, and then in $100,000 increments above that. So a new or lower-volume importer typically starts at the $50,000 minimum, while a high-volume importer paying significant duties will carry a larger bond sized to their activity.
It is important to understand that the bond amount is not what you pay. The bond amount is the coverage. What you pay is an annual premium, which is a small fraction of the bond amount. Because customs import bonds are considered low risk, the premium for a standard continuous bond is modest, and for most importers these bonds are among the more affordable and accessible surety bonds on the market. For a single transaction bond, the cost is tied to the value and duty of the specific shipment. Rather than guess at a number, call us at 800-333-7800 and we will give you a firm quote based on your situation.
Customs bond activity codes
CBP organizes customs bonds by "activity code," which simply describes what the bond covers. The one most importers need is Activity Code 1, the Importer or Broker bond. It covers the entry of merchandise, payment of duties and taxes, ISF compliance, and the general obligations of importing. When people say "customs bond" or "import bond," this is almost always the bond they mean.
There are other activity codes for specialized roles, including custodial bonds for bonded warehouses and carriers, international carrier bonds, foreign-trade zone operator bonds, and others. If your business falls into one of those categories, we can write that bond too. When you call, tell us what you do at the border and we will identify the exact bond and activity code you need.
How a customs bond fits with your broker and ISF
Most importers work with a licensed customs broker who handles entry filing and clearance. Your broker will ask whether you have your own continuous bond. You have two options: use the broker's bond on a single-entry basis, or carry your own continuous bond in your company's name. For anything more than occasional importing, having your own continuous bond is usually the smarter move. It is more economical across many shipments, it travels with you if you change brokers, and it keeps your import compliance in your own name.
If your goods arrive by ocean, you are also responsible for the Importer Security Filing, which must be transmitted to CBP before the cargo is laden aboard the vessel overseas. A continuous bond covers your ISF obligations, which is one more reason regular ocean importers prefer it. Late or missing ISF filings can trigger CBP penalties, and the bond stands behind those obligations.
How to get your customs bond
Getting a customs bond is refreshingly simple compared to many commercial bonds. Here is how it works with us:
- Tell us about your business. We will ask what you import, your approximate annual duties, and whether you import by ocean, air, or land. That tells us whether you need a single transaction or continuous bond and what amount.
- Complete a short application. Standard continuous import bonds at the $50,000 minimum are typically issued quickly with minimal underwriting. Larger bonds may involve a brief financial review.
- We file the bond with CBP. The bond is submitted to CBP electronically, and once it is active, your broker can clear your shipments.
- You are covered for the year. A continuous bond stays in force and renews annually. As your import volume grows and your duties rise, we will help you adjust the bond amount so you stay compliant.
Because these bonds are processed through CBP, it is smart to start a few business days before you need clearance, especially for a first-time bond. Once it is on file, future shipments move without the bond being a bottleneck.
Why work with Surety Bond Authority
We have spent more than 50 years placing surety bonds of every kind, from straightforward license bonds to complex financial guarantees. For importers, that means you get a bond issued correctly and filed properly the first time, so your freight is not sitting at a port waiting on paperwork. We work with the top-rated surety carriers in the country, we know CBP's requirements, and we explain everything in plain English. Whether you are a first-time importer getting your $50,000 continuous bond or a high-volume operation that needs a larger bond sized to your duties, we will get it handled quickly.
If you also act as a licensed customs broker and need your own broker bond, we write those as well. See our customs broker bond information, or simply call and we will sort out exactly which bond your role requires.
Frequently asked questions
Do I need a customs bond if my goods are duty-free?
Usually, yes. Duty-free status does not remove the bond requirement for formal commercial entries. CBP still requires a customs bond to clear most commercial shipments valued at $2,500 or more, and for goods regulated by other federal agencies regardless of value.
What is the difference between a single transaction bond and a continuous bond?
A single transaction bond covers one shipment at one port. A continuous bond covers all of your imports at every U.S. port for a year and renews annually. If you import regularly, the continuous bond is more cost-effective and also covers your ISF filings.
How much is a continuous import bond?
CBP sets the bond amount at 10 percent of the duties, taxes, and fees you paid over the prior 12 months, with a $50,000 minimum. You do not pay that amount. You pay an annual premium that is a small fraction of it. Call 800-333-7800 for a firm quote.
How fast can I get a customs bond?
Standard continuous import bonds at the minimum amount can often be issued quickly with minimal underwriting and filed electronically with CBP. It is wise to start a few business days ahead of a shipment, particularly for your first bond.
Should I use my customs broker's bond or get my own?
For occasional importing, using your broker's bond on a single-entry basis can work. For regular importing, your own continuous bond is usually better. It is more economical across many shipments, covers your ISF, stays in your name, and follows you if you change brokers.
Does the customs bond pay my duties for me?
No. The bond guarantees that your duties and taxes will be paid and that you will follow CBP rules. You remain responsible for paying what you owe. If CBP has to claim against the bond, you must reimburse the surety.
Get your customs bond today
Do not let a missing bond hold your shipment at the port. Whether you need a single transaction bond for a one-time import or a continuous import bond for an active import business, Surety Bond Authority can get you bonded and filed with CBP quickly. Call us at 800-333-7800 or contact us today for a free, no-obligation quote, and we will keep your goods moving.