A surety bond, in the context of customs, is a financial guarantee in which a surety company (typically a Treasury-listed insurance company) pledges to pay CBP if the importer fails to fulfill its legal obligations — including payment of duties, taxes, fees, and penalties. The surety bond is a three-party agreement between the importer (principal), CBP (obligee), and the surety company. It is functionally the same as a customs bond and is required for all formal import entries.
Why It Matters for Importers
Without a surety bond, you cannot file a formal customs entry. CBP requires this guarantee because duties are initially assessed as estimates — the final duty amount is not determined until liquidation, which can occur up to 314 days later. The bond ensures that if additional duties are assessed, or if penalties are levied for compliance violations, CBP has a financially responsible party to collect from.
The surety does not absorb the loss. If the surety pays CBP on your behalf, it will pursue you for reimbursement under the indemnity agreement you signed when obtaining the bond. In this sense, the surety bond is not insurance for the importer — it is insurance for CBP.
Key Details
- Customs bonds must be issued by surety companies listed on the U.S. Treasury Department's Circular 570.
- A continuous surety bond covers all entries for one year. The standard minimum amount is $50,000, though higher amounts may be required based on import volume and duty payments.
- A single entry surety bond covers one transaction and is set at the value of the goods plus estimated duties.
- The annual premium for a continuous bond is typically a small percentage of the bond amount — often $300-500 for a $50,000 bond.
- CBP can require bond amount increases if your duty payments grow or if compliance issues are identified.
Bond Sufficiency
CBP monitors whether your bond amount is sufficient relative to your actual duty payments. If your annual duties consistently exceed your bond amount, CBP will issue a bond insufficiency notice requiring you to obtain a higher bond. Failure to increase the bond can result in CBP refusing to process your entries until the bond is updated.
For a full explanation of how customs bonds work and which type you need, see our guide on customs bonds.