Definition
A customs bond is a three-party contract between an importer (principal), a surety company, and CBP that guarantees payment of all duties, taxes, and fees owed on imported merchandise. If the importer fails to pay, the surety company is obligated to pay on their behalf. A customs bond is legally required for all commercial imports valued over $2,500.
Why It Matters for Importers
No bond means no entry. CBP will not release your goods without an active customs bond on file. This is a non-negotiable requirement for any commercial importer, and your customs broker will ensure you have the correct bond in place before your first shipment arrives.
The bond also covers more than just duty payment. It guarantees that you'll comply with all CBP requirements, including proper record-keeping, timely filing of entry summaries, marking requirements, and any other conditions CBP places on the import.
Key Details
- Two types: Single entry bonds (one shipment) and continuous bonds (all shipments for 12 months).
- Required threshold: Any commercial import valued over $2,500, or any import requiring a PGA filing, requires a bond.
- Bond amount: Minimum $50,000 for continuous bonds. CBP may require higher amounts based on your import volume and duty payments.
- Surety companies: Bonds must be issued by Treasury-approved surety companies.
Choosing the right bond for your situation is one of the first decisions you'll make as an importer. Read our complete guide to customs bonds.
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