US Customs Bond Requirements

A customs bond (also called a surety bond or import bond) is a legal contract among three parties:

1. Principal: The importer of record (you or your company)

2. Surety: An insurance company or financial institution licensed by CBP to issue bonds

3. Obligee: US Customs and Border Protection

The bond guarantees that the principal will comply with all CBP laws and regulations, including payment of all duties, taxes, fees, fines, and penalties. If the principal fails to pay, CBP can make a claim against the surety — who then seeks reimbursement from the principal.

Customs bonds are not insurance for the importer — they're a guarantee to the government that CBP will be paid. Think of it as a credit facility backed by a surety company.

Mandatory for formal entries:

A customs bond is required for any shipment that requires a formal entry. Formal entry is required when:

• Shipment value exceeds $2,500

• Goods are subject to additional requirements (FDA, USDA, fish and wildlife, etc.) regardless of value

• Goods are subject to anti-dumping or countervailing duties

• Goods are textiles regulated by quota

• Commercial shipments of any value sent by a commercial entity

Not required for:

• Informal entries (shipments under $2,500 that aren't subject to other requirements)

• Section 321 de minimis shipments under $800

• Personal effects and unaccompanied baggage below the threshold

• Goods entering under certain government-to-government programs

For in-bond shipments:

Bonds are also required for in-bond (bonded) transportation, bonded warehouse operations, foreign trade zones, and other special customs procedures.

Single Entry Bond (SEB):

• Covers one specific shipment/entry

• Bond amount = value of the merchandise + estimated duties (often 3× the estimated duty, minimum $100)

• Obtained for each individual import entry

• Appropriate for: Occasional importers, one-time purchases, testing a new supplier

• Cost: Typically 1–15% of the bond amount, depending on the surety and your credit profile

• Advantage: No ongoing commitment

• Disadvantage: Must be obtained for every shipment; often more expensive per entry for frequent importers

Continuous (Annual) Bond:

• Covers all entries made by the importer for one year

• Bond amount: Greater of $50,000 or 10% of duties/taxes/fees paid in the prior 12 months (rounded up to nearest $10,000)

• Must be renewed annually

• Appropriate for: Regular importers making multiple shipments per year

• Cost: Typically $300–$1,000+/year depending on bond amount and surety rates

• Advantage: Simpler, less paperwork per entry, usually cheaper for frequent importers

• Disadvantage: Annual renewal requirement; bond amount may need to increase as import volume grows

Through a customs broker:

This is the most common path for importers. Licensed customs brokers typically have surety relationships and can obtain bonds on your behalf as part of their import services. Many brokers bundle bond fees into their overall customs clearance fee.

Directly from a surety company:

CBP maintains a list of approved surety companies at CBP.gov. Major players include: Roanoke Trade Services, Avalon Risk Management, International Fidelity, US Surety Services, and others. You can apply directly to these companies.

Through a freight forwarder:

Many freight forwarders offer bond services or have relationships with customs brokers who do.

Application process:

1. Complete the bond application (typically includes business information, financial statements, import history)

2. Surety underwrites your credit risk

3. Bond is issued and filed with CBP electronically via ACE

4. Bond number is used on your import entries

Timeline: Continuous bonds can typically be issued within 1–5 business days for established businesses. For new importers without credit history, the process may take longer or require collateral.

Minimum bond amounts:

• Continuous bond: Greater of $50,000 or 10% of prior year duties/fees

• Single entry bond: 3× the total entered value plus duties (minimum $100)

Bond sufficiency:

CBP monitors bond sufficiency and can terminate or require increases when the bond amount is insufficient relative to your import activity. This is called a "bond insufficiency" notice. Receiving one means you must increase your bond amount or your future entries will be rejected.

Bond insufficiency is a real operational risk for rapidly growing importers. If your import volumes increase significantly (from a small test program to full-scale sourcing), your $50,000 minimum continuous bond may quickly become insufficient.

When CBP increases the minimum:

CBP calculates sufficiency quarterly. If your duties paid in any rolling 12-month period exceed 10× your current bond amount, CBP will issue a demand for a higher bond.

Multiple bond riders:

Some activities require additional bond riders: carnets, in-bond movements, international carrier bonds, etc. Your customs broker can advise on what riders you need.

CBP makes bond claims when importers fail to meet their customs obligations — typically for:

• Non-payment of duties, taxes, or fees

• Failure to present/redeliver goods

• Violation of other customs regulations

• Anti-dumping or countervailing duty shortfalls

When CBP makes a claim, the surety must pay CBP within the timeframe specified in the bond terms. The surety then has the right to recover that amount from the importer (the principal).

Bond claims are serious: they can damage your credit, your relationship with your surety company, and your ability to get bonded in the future. Customs bonds are a financial liability — treat your customs compliance as you would any debt obligation.

For large duty liabilities (particularly from AD/CVD cases or Section 301 audits), bond claims can be substantial. Importers facing CBP audits should consult a trade attorney immediately.