An import surety bond is a financial guarantee that U.S. Customs and Border Protection requires before it will release commercial goods into the country. It creates a three-party arrangement: the importer (the principal), a surety company that promises to pay CBP if the importer doesn’t, and CBP as the party protected by the promise. The bond covers the duties, taxes, and fees owed on a shipment and backs the importer’s compliance with customs rules. Any importer bringing in merchandise valued at $2,500 or more through a formal entry needs a bond or an equivalent cash deposit on file.
When a Bond Is Required
Federal regulations require a bond or equivalent security before any imported merchandise is released from customs custody.1eCFR. 19 CFR 142.4 – Bond Requirements The trigger is formal entry, which applies to shipments valued at $2,500 or more.2U.S. Customs and Border Protection. Filing a Formal Entry (for Goods Valued at $2500 or More) Shipments below that threshold can usually move through informal entry procedures that don’t require one.
Duty-free merchandise still needs a bond when it enters through formal entry. The bond isn’t only about collecting duties. It also guarantees that the importer will keep required records, file entry summaries on time, and comply with regulations from other federal agencies that may touch the goods. Without a valid bond on file, CBP will not release your shipment, and the cargo stays at the port until the issue is fixed.
Single Transaction and Continuous Bonds
Importers pick between two formats based on how often they ship. A single transaction bond covers one specific entry and has to be filed for each shipment.3U.S. Customs and Border Protection. Bonds – Types of Bonds That approach suits an importer who brings in goods once or twice a year. For anyone shipping regularly, the per-entry paperwork and premiums add up quickly.
A continuous bond secures multiple transactions and applies across all U.S. ports of entry.4eCFR. 19 CFR 113.11 – Bond Application CBP allows only one continuous bond per activity type for each principal, so an importer isn’t juggling overlapping bonds for the same activity.5eCFR. 19 CFR 113.12 – Bond Approval It stays active until the importer or the surety terminates it. For ocean shipments, a continuous bond is effectively necessary because it covers Importer Security Filing obligations, which require data to be transmitted to CBP at least 24 hours before cargo is loaded onto a U.S.-bound vessel.6U.S. Customs and Border Protection. Import Security Filing (ISF) – When to Submit to CBP
How the Bond Amount Is Set
Continuous Bonds
The standard formula for a continuous import bond is 10% of the total duties, taxes, and fees paid during the previous 12-month period.7U.S. Customs and Border Protection. Bonds – How Are Continuous and Single Entry Bond Amounts Determined? New importers without a 12-month history use projected duties for the coming year. The minimum amount is $50,000, and values round up to the nearest $10,000. A 10% calculation of $62,400 rounds up to a $70,000 bond.
The amount isn’t static. CBP’s Revenue Division runs monthly sufficiency reviews that compare each active bond against the importer’s rolling 12-month duty total.8U.S. Customs and Border Protection. CSMS 18-000664 – Continuous Bond Sufficiency Review If import volume rises or duty rates increase on the goods, CBP can demand a larger bond. Tariff increases since 2025 have pushed many importers’ duty obligations above their existing bond coverage, generating sufficiency notices they didn’t expect.
Single Transaction Bonds
A single transaction bond must equal the total entered value of the merchandise plus all applicable duties, taxes, and fees.7U.S. Customs and Border Protection. Bonds – How Are Continuous and Single Entry Bond Amounts Determined? For goods regulated by other federal agencies, such as FDA-regulated products, EPA-regulated chemicals, or USDA-inspected agricultural items, the port director can require a bond worth three times the merchandise value.9U.S. Customs and Border Protection. A Guide for the Public – How CBP Sets Bond Amounts That triple applies most often to food, cosmetics, and similar regulated categories, and it catches many first-time importers off guard.
Bond Amount vs. Premium
The bond amount and the premium are two different numbers. The bond amount is the ceiling CBP can collect if the importer defaults. The premium is the fee paid to the surety company for backing the obligation, usually a small percentage of the bond’s face value. For a standard $50,000 continuous bond, annual premiums generally fall in the range of a few hundred dollars. Higher-risk importers, or those requiring bonds well above $50,000, pay more. Premium pricing reflects the type of goods, the importer’s financial history, and trade volume.
Single transaction bond premiums are usually lower per entry because each bond covers only one shipment. Importers making more than a handful of entries per year generally spend less by switching to a continuous bond than paying separate premiums each time.
Getting the Bond in Place
Before a bond can be issued, the importer needs a formal identity on file with CBP. The baseline document is CBP Form 5106, the Create/Update Importer Identity Form, filed with the first formal entry.10eCFR. 19 CFR 24.5 – Filing Identification Number The form requires a legal business name and a tax identification number, either an EIN for businesses or a Social Security Number for individuals.11U.S. Customs and Border Protection. CBP Form 5106 – Create/Update Importer Identity Form An importer without either can request a CBP-assigned number. The form also collects information about business ownership and officers with financial control, and CBP uses it to assign an Importer of Record number that tracks future entries and liabilities.
The surety underwriting the bond will also want a clear picture of what you import. Harmonized Tariff Schedule codes for your goods and a realistic projection of annual import volume speed the underwriting.
Bonds are filed electronically through the Automated Commercial Environment system using the eBond process.12U.S. Customs and Border Protection. ACE eBond Processing Most importers don’t interact with ACE directly. A licensed customs broker or surety agent submits the bond on the importer’s behalf and can quote premiums from multiple surety companies. Once CBP accepts the bond, it receives a reference number used for all future entries. Electronic submissions are generally processed within a few business days when the information is accurate. A single transaction bond can be filed alongside the entry; a continuous bond needs to be active before any entry is filed against it, so first-time importers should arrange coverage well ahead of the arriving container.
What Happens If You Default
Defaulting on bond obligations triggers liquidated damages, which are penalty amounts written into the bond itself. The figure depends on the violation. For failing to pay duties, taxes, or fees, liquidated damages equal twice the unpaid amount or $1,000, whichever is greater. For defaults involving merchandise, such as failing to redeliver goods on CBP’s demand, damages equal the full value of the merchandise. That amount triples if the goods are restricted, prohibited, or alcoholic beverages.13eCFR. 19 CFR 113.62 – Basic Importation and Entry Bond Conditions
Importer Security Filing violations carry a separate $5,000-per-violation penalty.14eCFR. 19 CFR 113.64 – ISF Bond Conditions A single shipment with multiple ISF errors can generate tens of thousands in liquidated damages. The importer and the surety are jointly liable. The surety pays CBP, then pursues the importer for reimbursement. A pattern of defaults makes future bond coverage difficult or impossible to obtain.
Keeping the Bond Current
CBP doesn’t set the bond once and leave it alone. Monthly sufficiency reviews measure every active continuous bond against the importer’s rolling 12-month duty obligations. If the bond falls below 10% of actual duties paid, CBP issues a notice demanding an increase. The importer then has to terminate the insufficient bond and secure a new one at the higher amount within the timeframe CBP specifies. Missing that deadline can block the clearance of goods at the port.
This catches importers off guard when they start bringing in higher-value goods or when tariff rates on existing products rise, since duty obligations climb without any change in shipping volume. Forecasting the next 12 months of import activity and setting the bond amount with a buffer above the 10% floor is usually cheaper than scrambling to replace an insufficient bond mid-shipment.
Canceling or Replacing a Bond
Either side can terminate a continuous bond, but the notice rules differ. An importer who wants to cancel must send a written request to CBP’s Revenue Division at least 10 business days before the intended termination date.15eCFR. 19 CFR 113.27 – Termination of Bond If no date is specified, termination takes effect on the tenth business day after CBP receives the request.
A surety company can terminate its obligation on a bond with or without the importer’s consent, but it must give at least 30 days’ notice to both CBP and the importer.15eCFR. 19 CFR 113.27 – Termination of Bond The surety stays liable for obligations incurred before the termination date. If a surety cancels, the importer needs a replacement bond from another surety before the next entry, or the goods won’t clear customs. Sureties sometimes drop coverage after paying too many liquidated damages claims, which is one more reason compliance pays off from the start.