What is a customs bond, and when does a small importer need one?
Updated
A customs bond is a guarantee, issued by a surety company, that you will pay the duties, taxes and fees on your imports and follow customs rules. Most commercial imports into the US need one. You can buy a single-transaction bond for one shipment, or a continuous bond that covers many entries over a year. Importers who bring in goods regularly usually choose the continuous bond.
How a bond works
CBP wants assurance it will be paid and that you'll comply. A surety company issues the bond and promises CBP it will cover what you owe if you don't pay. You pay the surety a premium. If the surety has to pay CBP, it can then come to you for that money.
When you need one
Commercial entries generally require a bond, and CBP sets the amount. Very low-value shipments may be handled differently. A customs broker or your surety agent can tell you what applies to your shipments.
Single-transaction bond
- Covers one shipment.
- Makes sense if you import rarely.
- CBP's public guide on bond amounts says the amount generally will not be less than the total entered value plus all duties, taxes and fees that apply, with exceptions for certain goods (CBP guide, February 2024_0.pdf)).
Continuous bond
- Covers all your entries for a year and renews.
- CBP's guide says the minimum amount is $50,000 or 10% of the duties, taxes and fees over the previous 12 months, whichever is greater. For a new importer, CBP uses an estimate for the coming 12 months, and the bond can't be less than $50,000.
- The bond amount is not what you pay. The premium is a fraction of the bond amount, and it varies by surety and your profile. Get quotes.
Which is cheaper?
For one or two shipments a year, a single-transaction bond may cost less overall. If you import several times a year, a continuous bond usually costs less than buying a bond each time and saves delays at entry. Ask a broker to compare using your expected shipments.
How to get one
- Decide how often you'll import.
- Ask your customs broker. Many arrange the bond for clients.
- Or contact a surety company or agent that handles customs bonds.
- Provide your importer of record details and business information.
- The surety issues the bond and files it with CBP.
Other things to know
- A bond isn't insurance for your goods. It protects the government, not you.
- CBP can require a higher bond if your import history shows risk.
- A bond is separate from the Importer Security Filing (ISF) for ocean shipments, which may have its own bond.
Where Shield fits
Shield doesn't issue customs bonds or arrange them. It handles the payments around importing: US business accounts, a business credit card and supplier payments by wire. A bond premium is a business cost like any other, so keep the invoice with your landed-cost records.
FAQ
Is a customs bond the same as insurance? No. It guarantees payment to CBP. It doesn't cover loss or damage to your goods.
Can I change from single-transaction to continuous? Yes. If your import volume grows, ask your broker or surety about switching.
Does a small importer need a $50,000 bond? Under CBP's guide, the continuous bond minimum is $50,000 or 10% of prior-year duties and fees, whichever is more. You pay a premium, not the full amount.
Next step
To see how Shield supports small importers, visit Shield bank accounts.