Customs Bonds: How Brokers Help You Get One

Customs Bonds: How Brokers Help You Get One

A customs bond is a financial guarantee required by U.S. Customs and Border Protection that ensures duties, taxes, and fees on imported goods will be paid. Yes — licensed customs brokers can assist with customs bond procurement, and for most importers, using a broker is the fastest and most reliable way to get a bond in place before goods arrive at port.

What Is a Customs Bond?

Customs bond: A legally binding three-party contract between an importer (the “principal”), a surety company licensed by the U.S. Department of the Treasury, and U.S. Customs and Border Protection (CBP) — guaranteeing that the importer will fulfill all legal obligations related to the importation of goods, including payment of duties, taxes, and fees.

The legal authority for customs bonds comes from 19 USC 1623, which grants the Secretary of the Treasury — and by delegation, CBP — the power to require bonds as a condition of entry. The implementing regulations are found in 19 CFR Part 113, which covers bond conditions, types, and required forms.

A bond does not reduce what you owe CBP. It guarantees that CBP will be paid, even if the importer defaults. The surety company underwrites that risk, which is why bond amounts matter: an underbonded importer creates exposure the surety may not cover.

CBP collected over $90 billion in duties, taxes, and fees in fiscal year 2023, according to CBP’s trade statistics. Bonds are the financial backbone that makes that collection system work at scale — there are tens of thousands of active importers at any given time, and CBP cannot audit every entry in real time.

Types of Customs Bonds

Not all bonds are the same. The two most common types importers encounter are the single-entry bond and the continuous bond, but several other bond types exist for specific activities.

For the vast majority of commercial importers, the choice is between a single-entry bond and a continuous bond. Importers bringing in more than roughly 4–5 shipments per year almost always save money and reduce friction by switching to a continuous bond.

Partner Government Agency (PGA) entries — goods regulated by the FDA, USDA, EPA, or other federal agencies — require a bond regardless of shipment value. If you’re importing food, pharmaceuticals, cosmetics, or agricultural products, you need a bond even on low-value shipments.

How a Customs Broker Assists with Bond Procurement

Licensed customs brokers operate at the intersection of importers and CBP. Their authority to act on behalf of importers — granted under 19 USC 1641 — explicitly includes bond-related activities. Here is the step-by-step process a broker typically follows:

Step 1: Assess Your Import Profile

Before recommending a bond type or amount, a broker reviews your import history, commodity types, annual duty liability, and any special compliance factors (antidumping exposure, PGA requirements, prior bond history). This determines whether a single-entry or continuous bond makes sense and sets the baseline for calculating the right bond amount.

Step 2: Calculate the Required Bond Amount

CBP’s formula for continuous bonds requires a minimum of 10% of duties, taxes, and fees paid in the prior calendar year, with an absolute floor of $50,000. A broker calculates this based on your actual or projected import activity. Importers subject to antidumping or countervailing duties (AD/CVD) typically need higher bond amounts because AD/CVD rates can be substantial and are often assessed retroactively. You can check current AD/CVD orders at enforcement.trade.gov/adcvd.

Step 3: Connect You with a CBP-Approved Surety

Only surety companies listed on the U.S. Treasury’s Circular 570 are approved to issue customs bonds. Most importers do not have a direct relationship with a surety company — brokers do. Established brokers maintain working relationships with multiple surety providers and can shop rates or expedite applications for importers with clean financial profiles.

Step 4: Complete CBP Form 301

The CBP Form 301 (Activity Code 1 for continuous bonds) is the standard customs bond form. It identifies the principal, the surety, the bond amount, and the activities covered. Completing this form correctly — including the correct activity codes and CBP bond suffixes — requires familiarity with CBP’s ACE Portal systems. Errors on Form 301 can delay bond activation or result in rejection.

Step 5: Submit and Activate the Bond via ACE

Bonds are activated through CBP’s Automated Commercial Environment (ACE) Portal. Once activated, the bond number becomes part of the importer’s ACE account and applies automatically to entries filed under that importer of record (IOR) number. A broker managing your customs filings ensures the bond is live before your first shipment arrives.

Step 6: Monitor and Renew

Continuous bonds renew annually. Brokers who manage your account will typically alert you 30–60 days before expiration and handle renewal paperwork. They also flag situations that might require a bond increase — for example, if your import volume grows significantly or CBP issues an “enhanced bond” requirement for your commodity.

Regulatory Framework for Customs Bonds

The primary legal framework for customs bonds is:

• 19 USC 1623 — Statutory authority for CBP to require bonds as a condition of entry
• 19 CFR Part 113 — The full regulatory framework: bond conditions, required forms, surety requirements, default procedures
• 19 CFR 113.62 — Specific conditions for import activity bonds (the most common type for commercial importers)
• 19 CFR 113.13 — Surety requirements; only Treasury-listed companies may issue bonds

CBP can demand that an importer increase their bond amount if it determines the existing bond is insufficient to protect revenue. This is called a bond sufficiency review, and it can be triggered by changes in import volume, commodity risk classification, or prior compliance issues. Failure to comply with a CBP bond sufficiency demand — within the timeframe CBP specifies — can result in entries being held or refused.

For importers dealing with regulated goods, the CBP.gov website maintains current guidance on bond requirements by commodity type and entry method.

Real-World Scenarios

Scenario 1: New E-Commerce Importer, Single SKU from China A small business owner begins importing 4 shipments per year of consumer electronics from Shenzhen, with dutiable values averaging $40,000 per shipment. Their total annual duty liability is approximately $12,000 (assuming a blended rate near 7.5%). A continuous bond at the $50,000 floor costs roughly $550/year — less than the cost of four single-entry bonds ($640–$800/year combined). A broker handles the setup in 2 business days. You can search all CBP-licensed customs brokers to find one who specializes in electronics imports.

Scenario 2: Pharmaceutical Importer, FDA-Regulated Goods A distributor importing finished pharmaceutical products faces both CBP bond requirements and FDA Prior Notice obligations. Because pharmaceutical entries involve PGA review, a bond is mandatory regardless of value. A broker familiar with FDA-regulated entries — find them by exploring brokers by specialty — can coordinate bond setup with the FDA entry filing process, reducing the chance of a hold at port.

Scenario 3: AD/CVD-Exposed Importer An importer bringing in steel pipe fittings from a country subject to antidumping duties discovers their broker has flagged potential AD/CVD exposure. The cash deposit rate is 47% — on a $200,000 shipment, that’s $94,000 in potential additional duties. A standard $50,000 bond is insufficient. The broker recommends and secures a $150,000 bond, protecting the importer from CBP bond sufficiency action. Current AD/CVD orders are searchable at enforcement.trade.gov/adcvd.

Scenario 4: Infrequent Importer at a Land Border Port A small manufacturer imports raw materials once or twice a year across the Texas-Mexico border. Given the low frequency, a single-entry bond makes more sense than a continuous bond. A broker licensed at a Texas land port — you can browse by U.S. port of entry — handles the bond and entry simultaneously, since single-entry bonds are secured at the time of filing.

Common Mistakes Importers Make with Customs Bonds

Underestimating the required bond amount. This is the most frequent error. CBP’s 10% minimum formula sounds simple, but importers often miscalculate by excluding AD/CVD cash deposits or merchandise processing fees. CBP will issue a bond sufficiency demand — and some importers learn about this only when entries start getting flagged. A broker runs these numbers before the bond is set.

Letting a continuous bond lapse. Continuous bonds must be renewed annually. An expired bond means CBP cannot accept formal entries under that IOR number. Importers who manage their own bond without broker oversight sometimes miss renewal notices, especially if they changed contact information. Brokers who manage your filing account typically handle renewal proactively.

Assuming a freight forwarder’s bond covers your entry. Freight forwarders may hold their own CBP bonds for their operational activities, but those bonds do not substitute for an importer’s bond on your entries. Your import entry requires a bond issued in your name as the importer of record. This is a persistent source of confusion, especially for first-time importers working with forwarders who also arrange customs clearance. For a clear breakdown of how these roles differ, see our guide to 3PL With Customs Clearance and Warehousing Explained.

Using a single-entry bond for high-frequency shipping. Some importers stick with single-entry bonds out of habit, not realizing the cost accumulates quickly. For any importer filing more than 5–6 entries per year, a continuous bond almost always costs less. More important, per-shipment bond application adds time at entry — something a continuous bond eliminates entirely.

Choosing a surety based on price alone. Not all surety companies have the same financial strength ratings or turnaround times. A low-cost surety with slow processing can delay entries just as much as an administrative error. Brokers who work with multiple surety providers can balance cost and service level appropriately.

Tools and Resources for Customs Bond Management

• CBP.gov — Official CBP guidance on bond requirements, Form 301 instructions, and bond activity codes
• ACE Portal — CBP’s electronic system where bonds are activated and tracked; accessible to importers with an ACE account
• U.S. Treasury Circular 570 — The official list of approved surety companies; updated annually and searchable online
• NCBFAA — The National Customs Brokers & Forwarders Association of America; a professional body for licensed brokers, useful for verifying broker credentials
• enforcement.trade.gov/adcvd — Antidumping and countervailing duty order database; essential for calculating bond sufficiency on at-risk commodities
• CBP Binding Rulings Database — Useful for confirming classification and duty rates, which directly affect bond amount calculations
• CustomsBrokerIndex.com — Browse brokers by state to find a licensed broker in your region who can manage your bond and entries end-to-end

Frequently Asked Questions

What is a customs bond?

A customs bond is a legally binding contract between an importer, a surety company, and U.S. Customs and Border Protection (CBP) that guarantees payment of duties, taxes, and fees on imported goods. If the importer fails to pay what is owed, the surety company is obligated to cover the amount. Most commercial importers are required by law to hold one under 19 USC 1623.

How does a customs broker help with bond procurement?

A licensed customs broker can assess which bond type you need, calculate an appropriate bond amount, connect you with CBP-approved surety companies, complete and submit the required CBP Form 301, and activate the bond through the ACE Portal. Brokers handle the entire process, typically turning around a continuous bond within 1–3 business days.

Who is required to have a customs bond?

Any commercial importer shipping goods valued over $2,500, or any shipment containing goods regulated by a Partner Government Agency (PGA) such as the FDA or USDA, is required to have a customs bond on file with CBP. Informal entries under $2,500 may use a single-entry bond at the time of entry. Frequent importers almost always benefit from a continuous bond.

How much does a customs bond cost?

A single-entry bond typically costs 0.4%–0.5