What Are the Customs Bond Requirements to Import into the United States?
Before your goods CBP can release from CBP custody, a customs bond must be in place. Without one, CBP will not release your merchandise. Yet many first-time importers are caught off guard by this requirement — either because they did not know a bond was needed or because their bond amount was insufficient.
A customs bond is a financial guarantee — a contract among three parties: the importer (the principal), a licensed surety company, and CBP. If the importer fails to pay duties, taxes, or fees, or fails to comply with CBP requirements, CBP can claim against the bond to recover what is owed. The bond protects the government’s ability to collect.
Quick Answer
A customs bond is required before CBP will release any commercial shipment valued over $2,500. It is a financial guarantee contract among the importer, a licensed surety company, and CBP. A continuous (annual) bond starting at $50,000 or 10% of prior-year duties covers all entries for 12 months. A single-entry bond covers one transaction only. Without a valid bond in place, CBP will not release your merchandise.
Two Types of Customs Bonds
Continuous (annual) bond: Covers all entries made within a twelve-month period at any US port of entry. The minimum bond amount is the greater of $50,000 or 10% of the total duties, taxes, and fees paid in the prior year. CBP can require a higher amount based on your import profile or duty exposure. For businesses that import regularly, a continuous bond is typically the most cost-effective option.
Single-entry bond: Covers one specific import transaction. The bond amount must equal the total entered value plus all applicable duties, taxes, and fees. Generally more expensive per shipment than a continuous bond. Best suited for infrequent or one-time imports.
When a Bond Is Required
All formal entries — shipments with a commercial value over $2,500
All shipments involving regulated merchandise (FDA, EPA, USDA, and other Partner Government Agencies), regardless of value
Shipments subject to Anti-Dumping or Countervailing Duty orders Importers operating bonded warehouses or other CBP-bonded programs
Bond Sufficiency: When CBP Can Require an Increase
CBP has the authority to require an importer to increase their bond if the current amount is deemed insufficient. This can happen when import volume increases, when merchandise is subject to high AD/CVD rates, or following a compliance review. An insufficient bond can result in CBP holding cargo until the bond is corrected.
ACE Group can assist you in determining the appropriate bond type and amount for your import operation. Contact us at theacegroupinc.com/contact-us
What Is a Customs Bond?
A customs bond is a financial guarantee — a legally binding contract among three parties: the importer (the principal), a licensed surety company authorized by the U.S. Department of the Treasury, and CBP. If the importer fails to pay duties, taxes, or fees, or fails to comply with CBP requirements, CBP can make a claim against the bond to recover what is owed.
Two Types of Customs Bonds
Continuous (Annual) Bond
A continuous bond covers all entries made within a twelve-month period at any U.S. port of entry. The minimum bond amount is the greater of $50,000 or 10% of the total duties, taxes, and fees paid in the prior year. CBP can require a higher amount based on your import profile or duty exposure. For businesses that import regularly, a continuous bond is typically the most cost-effective option.
Single-Entry Bond
A single-entry bond covers one specific import transaction. The bond amount must equal the total entered value of the merchandise plus all applicable duties, taxes, and fees. Generally more expensive on a per-shipment basis than a continuous bond, single-entry bonds are best suited for infrequent or one-time imports.
When Is a Customs Bond Required?
- All formal entries — shipments with a commercial value exceeding $2,500
- All shipments involving merchandise regulated by a Partner Government Agency (FDA, EPA, USDA, and others), regardless of value
- Shipments involving merchandise subject to Anti-Dumping or Countervailing Duty orders
- Importers who operate bonded warehouses or use other CBP-bonded programs
Bond Sufficiency: When CBP Can Require an Increase
CBP has the authority to require an importer to increase their bond if the current amount is deemed insufficient. This can occur when import volume increases significantly, when merchandise is subject to high AD/CVD rates, or following a compliance review. An insufficient bond can result in CBP withholding cargo release until the bond is corrected.
Common Mistakes Importers Make With Customs Bonds
- Assuming a bond is only needed for the first shipment — a continuous bond must be renewed annually.
- Underestimating the bond amount required, particularly for merchandise subject to AD/CVD where rates can be extremely high.
- Waiting until cargo arrives to arrange a bond — the bond must be in place before CBP will release your merchandise.
- Assuming the customs broker automatically provides a bond — importers generally need their own bond for entries filed in their name.
How Customs Bonds Are Obtained
Customs bonds are issued by licensed surety companies authorized by the U.S. Department of the Treasury. Your customs broker can assist you in determining the appropriate bond type and amount for your import operation and connecting you with a licensed surety.
Frequently Asked Questions
Is a customs bond the same as cargo insurance? No. A customs bond protects the U.S. government’s ability to collect duties and fees. Cargo insurance protects the importer from loss or damage to the merchandise itself. They serve different purposes and both may be needed.
How long does a continuous bond last? A continuous bond is valid for a twelve-month period and must be renewed annually to maintain coverage for all entries.
What happens if my bond is insufficient? CBP has the authority to require a bond increase and can withhold cargo release until the sufficient bond amount is in place.
Can my customs broker hold a bond on my behalf? A licensed customs broker may hold a bond for entries where they serve as Importer of Record. However, importers generally need their own bond for entries filed in their name.
Protect Your Import Operations With the Right Bond
A customs bond is not optional for most commercial imports — it is a legal prerequisite for cargo release. Understanding the right bond type, maintaining sufficient coverage, and securing your bond before your shipment arrives are the three things that prevent the most common and most avoidable bond-related delays.
Important Notice
The information in this article is provided for general educational purposes only and does not constitute legal advice. ACE Group is a licensed customs broker, not a law firm. For matters involving potential penalties, enforcement actions, compliance concerns with legal consequences, or any question that requires legal guidance, ACE Group recommends consulting with a qualified customs and international trade attorney. ACE Group works in conjunction with legal counsel on all matters requiring legal representation.