Customs Bond

A customs bond, often called an import bond, is a three-party contract between the importer (the principal), a surety company and U.S. Customs and Border Protection (CBP). The surety guarantees that the importer will pay the duties, taxes and fees CBP assesses and will meet the conditions set out in 19 CFR part 113; if the importer defaults, CBP can collect from the surety. The bond is filed on CBP Form 301, and the conditions for importers are in 19 CFR 113.62.

Continuous bond vs single entry bond

• Continuous customs bond: one bond that covers all of the importer's entries, at every port, for as long as it stays in force. Because the 113.62 conditions include the ISF, it also covers the importer's Importer Security Filings. It suits anyone who imports more than a few times a year
• Single entry bond (CBP calls it a single-transaction bond): covers one entry. CBP's guidance sets it generally at no less than the total entered value plus all duties, taxes and fees, at 10% of the entered value for unconditionally duty-free goods, and at three times the value for restricted merchandise. It suits a one-off import; a new one is needed for every entry

When is a customs bond required?

• Formal entries: under 19 CFR 142.4, CBP will not release merchandise on a formal entry unless a single entry or continuous bond containing the 113.62 conditions is on file, or cash or U.S. government obligations are deposited in its place. Commercial shipments valued over $2,500, the informal entry ceiling in 19 CFR 143.21, and some lower-value goods go through formal entry
• Ocean shipments needing an ISF: see ISF bonds below
• Nonresident importers: a foreign corporation acting as importer of record must file a Form 301 bond with a resident corporate surety (19 CFR 141.18)

Separate bond types cover other activities, such as custodial, international carrier and foreign-trade zone operator bonds.

How CBP sizes a continuous bond

CBP's bond guidance (A Guide for the Public: How CBP Sets Bond Amounts, February 2024) sets the minimum continuous importation bond at the greater of $50,000 or 10% of the duties, taxes and fees the importer paid in the previous 12 months. Bonds are set in increments of $10,000 up to $100,000 and in increments of $100,000 above that. An importer with no imports in the previous year is sized on the duties, taxes and fees it estimates for the next 12 months, and never below $50,000. CBP reviews bonds periodically; if it finds one insufficient, the importer has 15 days from notice to increase it (19 CFR 113.13).

Who issues a customs bond

A surety company listed in the Treasury Department's Circular 570, the register of companies approved to write federal bonds (19 CFR 113.37). Importers usually arrange the bond through their licensed customs broker or a surety agent, who files it with CBP. What the surety charges is set between the importer and the surety, not by CBP.

ISF bonds

The Importer Security Filing (ISF) also needs a bond. Under 19 CFR 149.5(b) the ISF importer must hold a basic importation and entry bond with the 113.62 provisions, a custodial, international carrier or foreign-trade zone operator bond, or an ISF bond under Appendix D to part 113. If it has none, the agent submitting the ISF may post its own bond. CBP's guidance sets an ISF-only continuous bond at no less than $50,000 and an ISF single-transaction bond at no less than $10,000. An importer that already holds a continuous importation bond is normally covered. CBP claims liquidated damages for ISF violations against this bond (19 CFR 113.62(j)).

How Airlift fits in

Airlift is an FMC-licensed NVOCC, not a licensed customs broker, and it does not write bonds. On the shipments it books, Airlift arranges the ISF through its ISF filing service and coordinates the entry with a licensed customs broker through its customs clearance service. The broker or your own surety agent can arrange a continuous or single entry bond if you do not already have one.