What is a customs bond?
A customs bond is a financial guarantee between three parties: the importer (the principal), US Customs and Border Protection (the obligee), and a surety company (the guarantor). The bond guarantees that the importer will fulfill all obligations related to importing goods, including paying duties, taxes, and fees, complying with all import laws and regulations, and providing accurate documentation.
If the importer fails to meet these obligations, CBP can make a claim against the bond, and the surety company pays CBP and then seeks reimbursement from the importer.
When is a bond required?
You need a customs bond for any formal entry, which includes all commercial shipments valued over $2,500, all shipments subject to quotas or special duties, all ISF filings for ocean cargo, and any entry where duties, taxes, or fees are owed.
In practice, almost every commercial import to the US requires a customs bond.
Types of customs bonds
Single entry bond
A single entry bond, also called a single transaction bond, covers one specific import entry. It expires once that entry is liquidated, which typically takes about one year.
The bond amount must be equal to the total entered value of the goods plus all duties, taxes, and fees owed, with a minimum of $100. Single entry bonds typically cost $5 to $15 per $1,000 of bond value.
Continuous bond
A continuous bond covers all import entries made by the same importer during a 12-month period. The standard minimum bond amount is $50,000, though CBP may require a higher amount based on import volume and duty payments.
Annual premiums for a continuous bond typically range from $400 to $2,000 depending on the bond amount and the importer's financial profile. For any importer making more than three entries per year, a continuous bond is almost always more cost-effective than individual single entry bonds.
How to obtain a customs bond
Your customs broker can arrange a bond through their surety company relationships. The process involves completing a bond application, providing financial information about your business, paying the premium, and having the bond filed electronically with CBP.
The application typically requires your business EIN, CBP importer of record number, financial statements or credit information, and estimated annual import volume and duty payments.
Bond sufficiency
CBP monitors whether your bond amount is sufficient to cover your actual import activity. If your duties consistently exceed the bond amount, CBP may issue an insufficiency notice requiring you to increase the bond. Failure to comply can result in your entries being rejected.
Let ASR set up your customs bond
Our team handles bond applications, renewals, and sufficiency monitoring for our clients. We work with top-rated surety companies to secure competitive premiums. Contact us at shipping@asrwe.com or +1 786 373 3003 to get your bond in place.
