Customs bonds
Continuous Bond
A continuous bond is a customs bond that covers all of one importer's entries for a one-year period. It renews automatically each year until it is terminated.
What does Continuous Bond mean?
A continuous bond secures one or more transactions over a one-year period. It renews automatically on the anniversary of its effective date and stays in effect until it is terminated.
CBP approves continuous bonds centrally. A principal can have only one continuous bond for each type of activity (19 CFR 113.12).
For a basic importation and entry bond, the amount is generally 10 percent of the duties, taxes and fees paid in the previous 12 months. The minimum is $50,000.
A continuous bond can become insufficient when the duties rise. CBP can then require a larger bond or additional security (19 CFR 113.13).
What does it mean for your shipment?
For an importer with regular shipments, a continuous bond is usually simpler than a bond for each entry. Check the bond amount when your duty payments rise, because new tariffs can make a bond insufficient.
Allied CHB, licensed customs broker, CBP filer code 9AJ.
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All glossary terms · General information, not legal advice.