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Customs Bonds

Customs Bond Definition: The Complete Guide to U.S. Import Bonds

Importing products successfully involves several steps, including the payment of import duties and taxes. A customs bond plays a crucial role in ensuring these payments are handled accurately and efficiently.

Last Modified: April 19, 2024

A customs bond functions as a formal agreement involving an importer, a surety company, and U.S. Customs and Border Protection (CBP). Its purpose is to guarantee the payment of all duties, taxes, and fees associated with a shipment. These bonds are mandatory for commercial imports exceeding $2,500 in value, including those with duty-free items.

Import Bonds Customs Entry Bond Customs Surety Bonds Activity Code 1 Bonds (C1 bonds)

The two types of activity code 1 bonds used by importers are known as single entry bonds and continuous bonds.

Customs Bond

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$225

*$50 processing fees

Get A Customs Bond

What is a Single Entry Bond?

A single entry bond is ideal for importers who have occasional shipments arriving at a specific port of entry. It's especially useful when dealing with low-cost goods.

The bond's value should at least cover the imported goods' value, including duties, taxes, and fees.

For imports regulated by other federal agencies, a bond worth three times the goods' value is necessary. For instance, if you import $8,000 worth of toys regulated by the Consumer Product Safety Commission, your bond should be at least $24,000.

When shipping by sea, additional bond coverage is required to comply with International Security Filing (ISF) requirements.

What is a Continuous Customs Bond?

A continuous customs bond provides comprehensive coverage for an importer's shipments across all U.S. ports of entry throughout a calendar year. For those requiring an annual customs bond, these can be conveniently set to renew automatically.

This type of bond is most beneficial for importers dealing with multiple shipments or utilizing various ports of entry within a 12-month period.

When obtaining a continuous bond, a minimum coverage of $50,000 is necessary. However, the total cost may increase based on the tariff rates and taxes applicable to your shipment.

The bond amount is typically calculated to cover at least ten percent of the duties and taxes collected by CBP. Additionally, a continuous customs bond also fulfills ISF bond requirements for shipments by sea.

How does a custom bond works?

Importer completes bond application through broker or surety. CBP releases shipments covered by the bond to importer. If importer doesn't pay duties and fees, broker or surety guarantees payment to CBP Importer must reimburse broker or surety if duties and fees aren't paid.

What Does a Customs Bond Cover?

A customs bond serves as a financial assurance for any charges, such as duties, taxes, and penalties, owed to CBP upon the arrival of a shipment in the U.S.

The bond coverage is determined based on the size required to cover the fees associated with the imported goods. Generally, the bond amount is set at a minimum of 10 percent of the total duties and fees payable to CBP, which typically amounts to at least $50,000.

For larger bond requirements, it is advisable to consult CBP's calculation table for accurate estimations.

Total Duties & Taxes Bond Size
$0 to $499,999 $50,000
$500,000 to $599,999 $60,000
$600,000 to $699,999 $70,000
$700,000 to $799,999 $80,000
$800,000 to $899,999 $90,000
$900,000 to $999,999 $100,000
$1,000,000 to $1,999,999 $200,000
$2,000,000 to $2,999,999 $300,000
$3,000,000 to $3,999,999 $400,000
$4,000,000 to $4,999,999 $500,000/td>
$5,000,000 to $5,999,999 $600,000
$6,000,000 to $6,999,999 $700,000
$7,000,000 to $7,999,999 $800,000

When Do I Need a Customs Bond?

Here are the two primary scenarios where a customs bond is necessary

  1. Commercial imports valued at $2,500 or more.
  2. Imports of goods regulated by U.S. government agencies (e.g., USDA for wood, CPSC for toys, FDA for pharmaceuticals). In such cases, the bond amount should be three times the shipment's value.

Think of a customs bond as your goods' entry ticket into the United States. Without it, your imported items will be held at customs until you provide proof of the bond. Acquiring the bond is crucial for obtaining final approval to release your goods.

How Much Does a Customs Bond Cost?

At HTS Lookup, a continuous customs bond costs $225* and provides you with $50,000 worth of coverage for 12 months from the date of purchase.

If you need more coverage, contact our team and we’ll be happy to accommodate your importing needs.

ONLY

$225

*$50 processing fees

Get A Customs Bond

How Do I Get a Customs Bond?

Customs bonds are typically secured through a Expert Customs Consultants, and the process involves filling out a customs bond application, usually in the form of CBP Form 301

At HTS Lookup, you can conveniently complete the application and obtain your customs bond directly on our website. Here's how it works

  1. Purchase your continuous customs bond from us.
  2. Complete the simple and quick online application.
  3. Receive approval for your application the same day.
  4. Start importing with your bond within 2 days of CBP application activation.

By working with a Expert Customs Consultants like us, you ensure that your bond is accurate, complete, and secure. Our experienced brokers handle the necessary tasks behind the scenes to acquire the bond for you.

Connect with our customs broker today, and our helpful and knowledgeable staff will assist you, answer your questions, and guide you through the customs bond application process.

ONLY

$225

*$50 processing fees

Get A Customs Bond

Frequently Asked Questions

Not seeing your question here? Contact us today! We’re ready to assist you.

That means you did the right thing and got a customs bond! In short, a bonded shipment means your goods are covered for customs charges, including all duties, taxes and any penalties that may occur during the import process.

When you are shipping goods in-bond, that means your products are moving within the United States, but are still waiting on official customs clearance from Customs before the goods can officially be sold. Customs Brokers can help your goods obtain official approval from CBP.

Import bonds are used by Customs Brokers to clear goods. The bond is critical because it:

  • Contains a unique bond number tied to your company’s importer number (Tax ID)
  • Is valid at all U.S. port of entry
  • Remains tied to all importing documents filed for your goods

Yes, there are many different types of customs bonds, used for a variety of situations. Each type of bond is labeled with a different Activity Code.

  • Activity Code 1 - Import Bond
  • Activity Code 1a - Drawback Payment Refunds Bond
  • Activity Code 2 - Custodian of Bonded Merchandise Bond
  • Activity Code 3 - International Carrier Bond
  • Activity Code 3a - Instruments of International Traffic
  • Activity Code 4 - Foreign Trade Zone Bond
  • Activity Code 11 - Airport Security Bond
  • Activity Code 16 - Importer Security Filing Bond

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