A customs bond is a legally binding contract that guarantees the U.S. government will receive all duties, taxes, and fees owed on imported goods. Every commercial import shipment valued over $2,500 entering the United States requires one. Without a valid customs bond, U.S. Customs and Border Protection (CBP) will not release your cargo.
The bond is not insurance for the importer. It is a guarantee to the federal government. If the importer fails to pay what they owe, the surety company that issued the bond pays CBP directly and then pursues the importer for reimbursement. This distinction matters because it determines who the bond actually protects: the government, not the importer.
For importers bringing goods into the United States regularly, understanding how customs bonds work, which type you need, and what they cost is foundational to running a compliant import operation.
How a Customs Bond Works
A customs bond involves three parties, each with a distinct role in the guarantee mechanism.
The principal. This is the importer of record — the person or business legally responsible for the imported goods. The principal is the party that owes duties, taxes, and fees to CBP and is obligated to comply with all U.S. customs laws and regulations. When you apply for a customs bond, you are the principal.
The surety company. This is a Treasury-listed insurance company authorized to issue customs bonds. The surety underwrites the bond, meaning it evaluates the importer's financial standing and import activity to determine whether to issue the bond and at what cost. If the importer fails to pay duties or comply with CBP requirements, the surety is liable for the bond amount. There are approximately 50 Treasury-listed sureties authorized to write customs bonds in the United States.
U.S. Customs and Border Protection (CBP). CBP is the obligee — the party the bond protects. The bond guarantees to CBP that the importer will pay all duties, taxes, and fees; comply with all laws and regulations governing the importation; and correct any deficiencies identified by CBP during the entry process.
The guarantee mechanism works like this: when an importer files a customs entry, CBP calculates the estimated duties owed. The customs bond secures that obligation. If the importer pays on time, the bond is never activated. If the importer defaults — fails to pay duties, provides inaccurate information, or violates import regulations — CBP issues a claim against the bond. The surety pays CBP and then seeks recovery from the importer through a process called indemnification.
This structure is governed by 19 CFR Part 113, which specifies the conditions, types, and requirements for customs bonds. The bond itself is documented on CBP Form 301.
Types of Customs Bonds
There are two primary types of customs bonds that importers use. The right choice depends on how frequently you import.
Single Entry Bond
A single entry bond (also called a single transaction bond) covers one specific import shipment at one specific port. It is valid only for the entry it is associated with and expires once that entry is fully liquidated by CBP, which typically takes 10 to 12 months after the entry date.
Single entry bonds are priced based on the value of the specific shipment plus the estimated duties, taxes, and fees. The bond amount must equal the total entered value of the goods plus all duties and fees, or $50,000, whichever is greater for certain types of entries. The cost to the importer is typically $50 to $100 per shipment, though this varies depending on the shipment value and commodity.
A single entry bond makes sense when you are importing one or two shipments per year, testing a new product or supplier before committing to regular imports, or importing a single large or unusual shipment outside your normal activity.
Continuous Bond
A continuous bond covers all import transactions at all U.S. ports of entry for a full 12-month period. It renews automatically each year unless terminated by the principal, the surety, or CBP. The minimum continuous bond amount is $50,000, though CBP may require a higher amount based on your import volume and duty payments.
For most importers, a continuous bond costs $400 to $500 per year. This is a single annual premium regardless of how many shipments you bring in. If you import 10 shipments per year, that works out to $40 to $50 per shipment — significantly less than purchasing 10 individual single entry bonds.
A continuous bond is the right choice when you import three or more shipments per year, you import at multiple ports, you import FDA-regulated goods or other products requiring ongoing bond coverage, or you want to avoid the delay of obtaining a new bond for each shipment.
| Feature | Single Entry Bond | Continuous Bond |
|---|---|---|
| Coverage | One shipment, one port | All shipments, all ports, 12 months |
| Typical cost | $50–$100 per shipment | $400–$500 per year |
| Best for | 1–2 shipments per year | 3+ shipments per year |
| Renewal | Expires after entry liquidation | Auto-renews annually |
| Processing time | Must be obtained per shipment | Set up once, valid all year |
The breakeven point is straightforward. If you plan to import more than three to four times in a 12-month period, a continuous bond saves money and eliminates the logistical overhead of arranging a new bond for each shipment.
When Is a Customs Bond Required?
The general rule is clear: any commercial import shipment valued over $2,500 requires a customs bond. But value is not the only trigger. Certain categories of goods require a bond regardless of shipment value.
FDA-regulated products — including food, pharmaceuticals, medical devices, and cosmetics — require a bond even when the shipment value falls below $2,500. Goods subject to antidumping or countervailing duties always require a bond due to the additional duty exposure. Shipments requiring Partner Government Agency (PGA) filings, items subject to quota restrictions, and in-bond shipments all require bond coverage.
For a detailed breakdown of every scenario that triggers a bond requirement, including thresholds, exceptions, and penalty exposure, read our complete guide: When Is a Customs Bond Required?
How Much Does a Customs Bond Cost?
The cost of a customs bond depends on the bond type, the surety company, the importer's financial profile, and the commodity being imported.
For a single entry bond, expect to pay $50 to $100 per shipment. For a continuous bond, the standard annual premium is $400 to $500 for importers with a clean compliance record and typical import volumes. Importers with higher duty obligations, compliance issues, or products subject to antidumping duties may face higher bond amounts and correspondingly higher premiums.
The bond premium is separate from customs brokerage fees. Your customs broker may charge an additional fee for bond procurement and filing, or this may be included in their per-entry rate. Greenwich Mercantile includes bond procurement assistance in our flat $100 per filing rate with no surcharges.
For a comprehensive breakdown of customs brokerage costs, including how bond costs fit into your total landed cost, see our pricing guide: How Much Does a Customs Broker Cost?
How to Get a Customs Bond
There are two primary ways to obtain a customs bond.
Through a Licensed Customs Broker
This is the most common and efficient approach. Your customs broker has established relationships with surety companies and can arrange your bond as part of the onboarding process. The broker handles the paperwork, submits CBP Form 301, and ensures the bond is active before your shipment arrives. Most brokers can have a continuous bond in place within 24 to 48 hours.
Working through a broker is particularly important if you are a first-time importer, since brokers can advise on the correct bond type and amount based on your specific import activity. Greenwich Mercantile handles bond procurement for all clients as part of our standard service.
Directly Through a Surety Company
You can apply for a customs bond directly with a Treasury-listed surety company. This requires completing CBP Form 301, providing financial documentation, and waiting for the surety to underwrite and approve the bond. This process typically takes longer than working through a broker, and you will still need a customs broker to file your entries with CBP.
Regardless of how you obtain the bond, the process requires the same information: your importer of record number (usually your IRS EIN or CBP-assigned number), the type of bond requested, the bond amount, and your estimated annual import volume and duty payments.
What Happens After You Get a Bond
Once your customs bond is active, CBP records it in the Automated Commercial Environment (ACE) system. Your customs broker references the bond number on every entry filing. For a continuous bond, there is no additional action required for individual shipments — the bond covers everything for the full 12-month term.
Your bond can be challenged by CBP if your import activity significantly exceeds the bond amount, if you accumulate unpaid duties, or if you have repeated compliance violations. In those cases, CBP may require a bond rider (an increase in the bond amount) or may instruct the surety to terminate the bond entirely. Maintaining a clean compliance record and paying duties on time keeps your bond in good standing.
For importers filing ISF (Importer Security Filing) entries, note that the ISF bond is typically covered by your continuous bond. If you are using a single entry bond, you will need to ensure ISF coverage is included.
If you are acting as the importer of record for goods on behalf of another party, the bond must be in your name as the IOR, not in the name of the foreign supplier or the ultimate consignee.
Frequently Asked Questions
Who needs a customs bond?
Any person or business importing commercial goods into the United States valued over $2,500 needs a customs bond. Bonds are also required regardless of value for FDA-regulated products, goods subject to antidumping or countervailing duties, and any shipment requiring a filing with a Partner Government Agency.
What's the difference between single entry and continuous bonds?
A single entry bond covers one specific import shipment and expires after that entry is liquidated. A continuous bond covers all imports at all U.S. ports for a 12-month period. If you import more than two or three times per year, a continuous bond is almost always more cost-effective.
Can I import without a customs bond?
No. CBP will not release any commercial shipment valued over $2,500 without a valid customs bond on file. Attempting to import without a bond results in your cargo being held at the port, incurring storage and demurrage charges until a bond is obtained.
How long does a continuous bond last?
A continuous bond is valid for one year from its effective date and renews automatically unless terminated by the principal, the surety, or CBP. Termination requires written notice at least 30 days before the anniversary date.
This guide reflects U.S. customs bond requirements as of April 2026. Bond requirements and regulations are subject to change. Importers should verify current requirements through CBP and consult with a licensed customs broker for situation-specific guidance.