CBP Form 301 is the customs bond that U.S. Customs and Border Protection requires before it will release commercially imported goods into the United States. It binds three parties — you as the importer, a surety company, and CBP — into a financial guarantee that duties, taxes, fees, and compliance obligations tied to your imports will be paid. If your shipment’s value exceeds $2,500, or if the goods are regulated by another federal agency, you need one on file before the cargo can leave the port.
What the Bond Actually Guarantees
Form 301 is a contract. You promise CBP that every financial obligation connected to your imports will be satisfied, and a surety company backs that promise. If you fail to pay, CBP collects from the surety, and the surety comes after you for reimbursement.1U.S. Customs and Border Protection. Customs Form 301 – Customs Bond
The obligations covered go beyond writing a check for duties. Under the basic importation bond conditions, you agree to complete entry paperwork on time, produce any records CBP asks for, and redeliver merchandise to CBP on demand if it later turns out to violate import laws or needs further inspection. The redelivery obligation is the one importers most often overlook, and ignoring it triggers significant penalties.2eCFR. 19 CFR 113.62 – Basic Importation and Entry Bond Conditions
When You Need One
Federal regulations are explicit: merchandise cannot leave CBP custody unless a bond on Form 301 has already been filed, either as a single-entry bond or a continuous bond.3eCFR. 19 CFR 142.4 – Bond Requirements
A formal entry, which requires a bond, is triggered whenever a shipment’s total value exceeds $2,500. It is also required regardless of value when the goods are subject to quotas, antidumping or countervailing duties, or regulation by an agency such as the FDA or the Department of Transportation.4eCFR. 19 CFR 128.25 – Formal Entry Procedures
Shipments valued between $800 and $2,500 generally qualify for informal entry and do not need a bond, as long as the goods are not restricted or regulated.5eCFR. 19 CFR 143.26 – Party Who May Make Informal Entry of Merchandise If your goods fall in a regulated category, you need a bond even for low-value shipments.
Continuous Bond or Single Transaction Bond
CBP offers two bond structures. The choice comes down to how often you import.
A continuous bond covers all your import activity for a term of up to one year and renews automatically unless terminated. Only one continuous bond per activity type is permitted for each principal.6eCFR. 19 CFR 113.12 – Bond Approval File it once and every subsequent entry is covered.
A single transaction bond covers one specific shipment. It can be approved either by the Revenue Division or by the director of the port where it is filed.6eCFR. 19 CFR 113.12 – Bond Approval Practical for a one-off import. Costly if you plan to keep importing.
How the Bond Amount and Your Premium Are Set
The bond amount, officially called the “limit of liability,” is not what you pay out of pocket. It is the maximum CBP can claim against the bond. Your actual cost is the annual premium the surety charges, which is a fraction of that limit.
For a continuous Activity Code 1 bond (the standard importer bond), CBP calculates the amount from what you paid in duties, taxes, and fees during the prior calendar year:
- Up to $1,000,000 in annual duties: the bond amount is set at the nearest $10,000 multiple to 10 percent of your prior-year payments.
- Over $1,000,000 in annual duties: the bond amount is set at the nearest $100,000 multiple to 10 percent of your prior-year payments.
- Absolute minimum: no continuous Activity Code 1 bond can be set below $50,000, regardless of how little you paid in duties.
If you had no imports the prior year, CBP will base the bond on your reasonable estimate of expected duties for the coming year. CBP can also demand a higher bond than the formula produces when it sees elevated risk, and where duties are minimal but import values are high, it may set the bond at one-half of one percent of total import value instead.7U.S. Customs and Border Protection. Monetary Guidelines for Setting Bond Amounts
For most importers with clean records, premiums on a $50,000 continuous bond run in the range of a few hundred dollars per year. Higher bond amounts, compliance issues, or thin credit history push the premium up, and the surety may require collateral. Rates vary, so getting quotes from more than one surety is worthwhile.
Information You Have to Provide
Form 301 collects identifying and financial details about both the principal (the importer) and the surety. For the principal, that means:
- Full legal name and physical street address. P.O. boxes are not accepted, and the legal name must match any power of attorney on file.8U.S. Customs and Border Protection. General Guidelines for Completing the CBP Form 301 for Continuous Bonds
- Legal designation or state of incorporation, which may differ from the state where the business physically operates.
- CBP identification number. This is usually the IRS Employer Identification Number (EIN) with a two-digit suffix, a Social Security Number for individuals, or a Customs Assigned Number (CAN) for foreign-based principals.
- Authorized signature. The signer must be a company officer such as the owner, president, CEO, or vice president. A customs broker signing on behalf of the principal needs a separate power of attorney for each legal entity.
The form also requires the surety’s name, address, and surety code number assigned by CBP, plus a signature from the surety’s authorized representative.1U.S. Customs and Border Protection. Customs Form 301 – Customs Bond
Pick the Right Activity Code
Every Form 301 must specify a single activity code identifying what the bond covers. You check one box only. The common ones:
- Activity Code 1, Importer or Broker. The standard import bond under 19 CFR 113.62 and what most commercial importers need.
- Activity Code 2, Custodian of Bonded Merchandise. Covers bonded carriers, freight forwarders, warehouse operators, and container station operators. Available only for continuous bonds.
- Activity Code 3, International Carrier. Covers carriers transporting goods into or through the United States. Activity Code 3a (Instruments of International Traffic) can be checked alone or combined with Code 3.
Selecting the wrong activity code is a common filing mistake. The code has to match the bond conditions that apply to your role in the import chain.1U.S. Customs and Border Protection. Customs Form 301 – Customs Bond
How to File
CBP has centralized all bond processing away from individual ports. Both continuous and single transaction bonds are handled by CBP’s Office of Finance, Revenue Division. New bond applications are emailed to the Surety Bonds and Accounts Team at bondquestions@cbp.dhs.gov, following the naming conventions CBP publishes for the subject line.9U.S. Customs and Border Protection. Bond Centralization Program
Since January 2015, all continuous bonds must be filed electronically through CBP’s Automated Commercial Environment (ACE) eBond system, either submitted by a surety or surety agent via Electronic Data Interface or entered by CBP’s bond team through the eBond Portal. Single transaction bonds for ACE cargo release and entry summary transactions also require eBond filing.10U.S. Customs and Border Protection. ACE eBond Processing
Most importers do not file the bond themselves. A licensed customs broker usually prepares the form, coordinates with the surety, and submits it. Once approved, CBP assigns a bond number and the bond is active in the system.
Changing an Existing Bond With Riders
You do not need a new Form 301 every time something changes. CBP accepts bond riders to update an existing bond, filed with the Revenue Division on paper, by fax, or as an email attachment. Common riders cover a change of the principal’s legal name, a change of address for the principal or surety, and the addition or removal of trade names used by the principal so imports under those names stay covered.
Every rider must be signed and executed with the same formality as the original bond. Corporate principals must include a certificate as to corporate principal.
Sufficiency Reviews and Termination
CBP periodically reviews whether your bond’s limit of liability still fits your import volume. Regulations list the factors: your track record on paying duties on time, your compliance history, the value and nature of what you import, and whether you have honored past bond commitments including liquidated damages payments.11eCFR. 19 CFR 113.13 – Amount of Bond
If CBP finds your bond insufficient, you have to terminate the existing bond and replace it with one at a higher limit. The replacement window is narrow. An importer caught with an insufficient bond who does not move quickly risks having entries rejected at the port until a new bond is in place.
Either the principal or the surety can terminate a continuous bond, on different timelines. If you initiate the termination, send a written request to the Revenue Division by mail, fax, or email. The termination takes effect on the date you request, provided that date is at least 10 business days after CBP receives the request. If you do not specify a date, termination kicks in on the 10th business day automatically.12U.S. Customs and Border Protection. Terminating a Customs Bond
A surety can terminate its obligations with or without the principal’s consent, but must give notice to both CBP and the principal. Thirty days is considered reasonable notice unless the surety convinces CBP that a shorter timeframe is justified. The surety remains on the hook for obligations incurred before the termination date.
Once terminated, no new import transactions can be charged against the bond, and you must have a new Form 301 with sufficient coverage in place before making further entries. Any coverage gap means your goods sit at the port.
Liquidated Damages If You Violate Bond Conditions
When you breach a bond condition, CBP does not sue you for actual damages. It assesses liquidated damages, preset penalty amounts established by regulation, and those claims are charged against your bond so the surety is exposed alongside you.
Importer Security Filing (ISF) problems are among the most common triggers. A late ISF, inaccurate data, or a failure to withdraw an ISF when required can each draw a $5,000 claim per violation.13U.S. Customs and Border Protection. CBP Dec. 09-26 Guidelines for Assessment and Cancellation of Liquidated Damages Claims
Claims accumulate quickly if the underlying compliance problem is not fixed, and repeated claims affect the next sufficiency review, potentially forcing a higher bond amount. If you receive a liquidated damages notice, respond promptly. CBP runs a cancellation and mitigation process that can reduce or eliminate the claim in certain circumstances.