There are two structural types of customs bonds: a continuous bond, which covers all of an importer’s shipments at every U.S. port for a rolling 12-month period, and a single transaction bond, which covers one shipment at one port. Layered on top of that structural choice is an activity code that defines what the bond actually guarantees based on your role, whether you are the importer, a warehouse operator, an international carrier, a foreign trade zone operator, or an ocean importer filing advance security data. Picking the right bond means picking both: the structure that fits how often you import, and the activity code that fits what you do.
A customs bond itself is a three-party contract between the importer (the principal), a surety company, and U.S. Customs and Border Protection that guarantees the government will collect all duties, taxes, and fees on imported goods. Federal law gives CBP broad authority to require these bonds whenever necessary to protect revenue and enforce trade regulations.1Office of the Law Revision Counsel. 19 USC 1623 – Bonds and Other Security If the importer doesn’t pay, the surety covers the debt.
Continuous Bonds
A continuous bond is the standard choice for businesses that import regularly. It covers every transaction across all U.S. ports for twelve months and renews automatically each year unless one of the parties cancels it. One filing covers every entry during that year.
The bond amount is set at 10% of the total duties, taxes, and fees the importer paid during the previous calendar year, with a floor of $50,000. For amounts up to $1 million in annual duties, CBP rounds the bond to the nearest $10,000 increment. Above $1 million, the rounding jumps to $100,000 increments.2U.S. Customs and Border Protection. Monetary Guidelines for Setting Bond Amounts New importers without a payment history get a bond amount based on a reasonable estimate of projected duties for the coming year.
CBP reviews bond sufficiency periodically. If the agency decides a bond is inadequate, the importer gets written notice and 15 days to fix the shortfall. During that window, CBP can require additional security like cash deposits or single transaction bonds on every shipment until the deficiency is resolved.3eCFR. 19 CFR 113.13 – Bond Insufficiency Falling behind here can effectively halt your import operations, so it’s worth tracking your duty payments against your bond amount through the year.
Single Transaction Bonds
A single transaction bond covers one shipment at one port. It’s the practical option for a one-off shipment or for testing international sourcing before committing to a continuous bond. Once CBP fully liquidates that entry and all obligations are settled, the bond expires.
For a standard entry, the bond amount equals the total entered value of the merchandise plus all applicable duties, taxes, and fees. The math changes significantly when the goods are regulated by another federal agency. Merchandise subject to oversight by the FDA, EPA, FCC, Consumer Product Safety Commission, or several other agencies requires a bond set at three times the total entered value.2U.S. Customs and Border Protection. Monetary Guidelines for Setting Bond Amounts The same triple-value rule applies to goods subject to quota or visa requirements. The reasoning is straightforward: if CBP needs to recall those goods for inspection or redelivery and the importer can’t produce them, the government wants enough collateral to cover the fallout.
When a shipment includes a mix of agency-regulated and standard goods, CBP can split the calculation. The regulated portion gets the three-times multiplier, and the rest is bonded at face value plus duties.2U.S. Customs and Border Protection. Monetary Guidelines for Setting Bond Amounts The per-shipment cost of a single transaction bond scales with the bond amount, so triple-value bonds get expensive fast on high-value regulated goods.
Activity Codes: What the Bond Actually Covers
Every customs bond is assigned an activity code that defines the principal’s specific obligations. These codes are set out in 19 CFR Part 113, and the right one depends on your role in the supply chain.4eCFR. 19 CFR Part 113 – CBP Bonds The most common codes cover importing, warehousing, international transport, and trade zone operations. Some are available in both structural forms; others aren’t.
Activity Code 1: Importer or Broker
This is the code most importers will use. It guarantees that the importer of record will pay all duties, taxes, and charges on entered merchandise, report accurate entry data, and comply with redelivery demands if CBP needs the goods back for inspection.5eCFR. 19 CFR Part 113 – CBP Bonds – Section 113.62 Available as either continuous or single transaction.6U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
Activity Code 2: Custodian of Bonded Merchandise
Warehouse operators, bonded carriers, freight forwarders, and container station operators use this code. It covers the safe storage and movement of goods that haven’t cleared customs yet, ensuring the merchandise doesn’t enter domestic commerce before duties are paid.7eCFR. 19 CFR Part 113 – CBP Bonds – Section 113.63 Continuous only, which fits the ongoing nature of custody.6U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
Activity Code 3: International Carrier
Shipping lines, airlines, and trucking companies engaged in international trade use this code to cover the arrival and departure of vessels, aircraft, and vehicles. The bond guarantees compliance with manifest requirements and payment of any penalties related to cargo transport.8eCFR. 19 CFR Part 113 – CBP Bonds – Section 113.64 Available as both continuous and single transaction.6U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
Activity Code 4: Foreign Trade Zone Operator
Foreign trade zones are designated areas where goods can be stored, assembled, or processed without triggering immediate duty payments. Operators of these zones need an Activity Code 4 bond, which guarantees they’ll maintain the zone’s integrity and follow all reporting requirements.9eCFR. 19 CFR Part 113 – CBP Bonds – Section 113.73 Continuous only.6U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
Activity Code 16: Importer Security Filing
Importers bringing containerized ocean cargo into the United States must submit an Importer Security Filing (commonly called “10+2”) before the goods are loaded onto the vessel. Activity Code 16 guarantees that the importer will provide this advance data to CBP and pay any penalties for noncompliance. Single transaction only, and it can be filed on its own or combined with an Activity Code 1 bond as a unified filing.6U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
When a Bond Isn’t Required
Almost all commercial shipments entering the United States through a formal entry need a bond before CBP releases them. The port director can waive the surety requirement in a narrow set of cases: the merchandise is worth $2,500 or less, the entry summary and estimated duties are filed before the goods are released, and the importer has a clean record with CBP.10eCFR. 19 CFR 142.4 – Bond Requirements The waiver doesn’t apply to quota merchandise or goods that are difficult to appraise or classify, so even some low-value shipments still need a bond.
Choosing the Right Combination
Start with the activity code, because that’s dictated by what you do. If you’re the importer of record, that’s Code 1. If you run a bonded warehouse, Code 2. Carrier, Code 3. Trade zone operator, Code 4. Ocean importer needing to file 10+2, Code 16.
Then choose the structural type where you have a choice. For Code 1, the rule of thumb is arithmetic. A continuous bond starts at $50,000 and covers a year of imports; a single transaction bond runs face value plus duties for each shipment, tripled for agency-regulated or quota goods. Once you’re importing frequently enough that the per-shipment single-bond costs approach the annual cost of a continuous bond, continuous is the cheaper and simpler path. For a single test shipment or a genuinely one-off import, a single transaction bond keeps you out of a year-long commitment. For Codes 2 and 4, the choice is made for you: continuous. For Code 16, it’s single transaction, though pairing it with your Code 1 continuous bond as a unified filing is often the practical setup for regular ocean importers.