Customs Bonds

A customs bond is a surety bond that guarantees to U.S. Customs and Border Protection (CBP) that an importer will pay all duties, taxes, fees and penalties owed and follow the rules for bringing goods into the United States. Importers generally need a customs bond, or an equal cash deposit, for formal entries of commercial goods. The bond is filed on CBP Form 301 and must be issued by a surety approved by the U.S. Treasury Department.

How a customs bond works

The bond is an agreement among three parties: you, the importer (principal); CBP, which requires the bond on behalf of the U.S. government (obligee); and the surety that issues it. The bond protects the government, not the importer. If you don't pay duties, taxes, fees or penalties CBP assesses, or don't meet the bond's other conditions, CBP can make a claim against the bond. If the surety pays, you must repay the surety.

Single entry vs. continuous bonds

A single entry bond, also called a single transaction bond, covers one shipment through one port. A continuous bond covers all of your shipments through every U.S. port for 12 months and renews each year until it is canceled. Single entry bonds can make sense for occasional imports, while regular importers usually save time and money with a continuous bond.

Bond amount and your premium

CBP sets the bond amount. For a continuous importer bond, it is the greater of $50,000 or 10% of the duties, taxes and fees you paid or expect to pay over 12 months, rounded up in $10,000 steps to $100,000 and in $100,000 steps after that. A single entry bond is generally at least the value of the shipment plus duties, taxes and fees, and can be three times the value if other federal agencies regulate the goods. That amount is the coverage required, not the price you pay. Your premium depends on the surety's underwriting. Request a quote rather than relying on a fixed rate.

How to apply

Apply before your goods arrive, since CBP won't release a formal entry without a bond or cash deposit. Start the online application with your business information, importer number and expected shipment or duty amounts. WWIS will review your submission and help you with the quote, CBP Form 301 and issuance, and the bond is filed electronically with CBP. Approval and timing depend on the surety and a complete application.

Information needed to apply

What a customs bond secures

Beyond paying duties, a customs bond secures your other promises to CBP. These include making entry for your goods, producing required documents, keeping merchandise intact for examination, redelivering released goods when CBP demands it and bringing goods into compliance with U.S. requirements. It can also cover duty on goods in a bonded warehouse and proper use of goods entered duty-free or at a reduced rate.

Get help with your application

Call 888-518-8011 or email [email protected] for help selecting the bond and completing your application.