Customs Bond Explained

What is a customs bond?

A customs bond is a contract with three parties. The principal is the importer. The surety is an insurance company that the Treasury Department lists in its Circular 570 (19 CFR 113.37). CBP is the beneficiary. The principal and the surety are liable "jointly and severally": CBP can collect from either one, up to the bond amount.

An import bond uses CBP Form 301 and contains the basic importation and entry conditions of 19 CFR 113.62. With it, the importer agrees to:

• Deposit estimated duties, taxes and fees on time, and pay any extra amount that CBP finds due at liquidation.
• Redeliver released goods to CBP on demand, for example goods that fail an agency rule or lack a country of origin marking.
• Produce the documents and evidence that CBP asks for, within the time limit.
• Comply with the Importer Security Filing rules in 19 CFR Part 149.

A bond is not insurance for the importer. It protects CBP. You still pay your own duties. The surety pays only when you do not.

Who needs a US customs bond?

Yes, if you are importing commercially into the US. A customs bond is required for:

• Any commercial import valued over $2,500. It needs a formal entry, and CBP does not release a formal entry without a bond (19 CFR 142.4).
• Goods over $250 classified in Chapter 99, Subchapter III or IV, HTSUS, for example many Section 232 and Section 301 goods. They cannot use an informal entry (19 CFR 143.21).
• Goods that CBP releases under bond for another agency, for example FDA-regulated food, drugs and cosmetics (19 CFR 12.3). CBP can require a formal entry for any shipment (19 CFR 143.22).
• Every ocean shipment with an Importer Security Filing. The ISF importer must have a bond (19 CFR 149.5).

Single entry bond vs. continuous customs bond

CBP now calls a single entry bond a single transaction bond (STB). It covers one entry. A continuous bond covers all entries of the principal for one year and renews automatically on each anniversary until it is terminated.

How much should a continuous customs bond be?

CBP's formula is 10% of the duties, taxes and fees paid in the previous 12 months, or $50,000, whichever is greater. CBP then rounds up to the next $10,000 up to $100,000, and to the next $100,000 above that. The total covers everyone on the bond: principals, co-principals and users.

• Duties, taxes and fees of $780,000: 10% is $78,000, so the bond is $80,000.
• Duties, taxes and fees of $1,230,000: 10% is $123,000, so the bond is $200,000.
• Duties, taxes and fees of $300,000: 10% is $30,000, so the minimum of $50,000 applies.

A new importer uses an estimate of the next 12 months. Unpaid CBP bills and unpaid debit vouchers increase the amount. Informal entries (type 11) and several warehouse and drawback entry types do not count. Section 232 and Section 301 duties do count. Try the numbers in the customs bond calculator.

How much is a single entry bond?

Generally, the amount is not less than the total entered value plus all duties, taxes and fees. CBP's bond guidance sets other amounts for some goods:

A single transaction bond amount can be increased only in the 10-day window between entry and entry summary. If a continuous bond is not enough for a risky entry, for example goods under an antidumping or countervailing duty order, CBP can ask for an extra single transaction bond.

How much does a customs bond cost?

The bond amount is not what you pay. You pay the surety a premium, which is a small part of the bond amount. A continuous bond has a premium for each bond year. A single entry bond has a premium for each entry, based on a bond amount that includes the value of the goods.

Each surety sets its own rates. The premium depends on the bond amount, the type of goods, your credit and your claim history. For goods with a higher risk, such as goods under an AD/CVD order, the surety can ask for collateral or a financial statement.

How to get a customs bond: the eBond process in ACE

1. Create or update your importer record with CBP Form 5106. A party that needs a bond must exist in ACE first.
2. Choose the bond type and the amount.
3. Apply to a surety, usually through your customs broker. A continuous bond application gives the kind of goods and the duties and taxes of the prior year (19 CFR 113.11).
4. The surety or its agent transmits the bond to ACE through eBond, with the data of CBP Form 301. ACE sends status messages about the bond back to the surety.
5. Your broker files the entry against the bond. Only one continuous bond for each activity is allowed for each importer number (19 CFR 113.12).

eBond has run in ACE since January 3, 2015. On February 13, 2026, CBP proposed a rule that would require sureties to transmit most bonds electronically. On September 28, 2026 the rule is not final.

What happens if your bond is insufficient?

CBP periodically reviews bond sufficiency (19 CFR 113.13). The review looks at your recent duties, taxes and fees, unpaid bills, liquidated damages history and the kind of goods. If the bond is too small, CBP's Revenue Division sends a written bond insufficiency notice to you and your surety. The regulation gives the principal 15 days from notification to fix the deficiency, and the notice gives the exact date.

The fix is a new continuous bond in at least the new amount and the termination of the old bond. Until then, CBP can require a single transaction bond or cash for each entry. Read what to do after an insufficient bond notice.

How do customs bond claims and liquidated damages work?

A bond claim is a CBP demand for liquidated damages after a breach of a bond condition. The amounts are in 19 CFR 113.62(n):

• Failure to redeliver goods or to meet another condition that involves goods: the value of the goods, or 3 times the value for restricted or prohibited goods, alcoholic beverages and FDA-regulated goods (19 CFR 141.113(c)).
• Late deposit of estimated duties, for example a payment that the bank returns: 2 times the unpaid amount or $1,000, whichever is greater.
• An ISF violation: $5,000 for each violation.
• Other defaults that do not involve goods: $1,000 for each default.

CBP notifies the principal in writing and demands payment. The surety gets its own notice at the same time (19 CFR 172.1). The principal can file a petition for relief with the Fines, Penalties and Forfeitures office within 60 days from the date the notice was mailed (19 CFR 172.3). CBP can cancel a claim on payment of a lower amount (19 CFR 113.51).

If the importer does not pay a claim or a duty bill, CBP collects from the surety up to the bond amount. The surety then recovers what it paid from the importer, usually under the indemnity agreement that the importer signed with the bond application. Claims also count in the next bond sufficiency review and can raise your premium.

How do you change or terminate a customs bond?

• A new company name (with the same legal form), a new address or a new trade name: the surety files a rider to the existing bond.
• A larger amount: the surety files a new continuous bond, and the old bond is terminated.
• Termination by the importer: send a written request to CBP's Revenue Division. It takes effect on the requested date if CBP receives it at least 10 business days before, otherwise on the tenth business day after receipt (19 CFR 113.27(a)).
• Termination by the surety: the surety gives reasonable notice to CBP and to you. Thirty days is reasonable notice unless CBP accepts a shorter time (19 CFR 113.27(b)).

After termination, no new transactions can be charged to the old bond. The old bond still answers for the entries it already covers. A new bond must be on file before your next entry.