What Is a Customs Bond? Types, Costs & When You Need One

A customs bond is a legally binding contract between three parties — the importer (principal), a surety company, and CBP — that guarantees the importer will pay all duties, taxes, and fees owed on imported goods, and will comply with all US customs laws and regulations. If the importer fails to pay, the surety company pays CBP and then seeks reimbursement from the importer. A customs bond is required for any formal entry (goods valued over $2,500) and for any goods subject to FDA, USDA, or other partner government agency regulations regardless of value. Without a bond, your goods cannot clear customs.

Types of Customs Bonds

• Single-entry bond (STB) — Covers one specific import transaction. The bond amount must be equal to the total entered value of the goods plus all applicable duties, taxes, and fees. Costs $50-$100+ per bond depending on value. Best for companies that import infrequently — fewer than 3-4 shipments per year.
• Continuous bond (CB) — Covers all import transactions for a 12-month period. The standard amount is $50,000, though CBP can require higher amounts for importers with large duty liabilities or compliance issues. Costs $300-$600 per year for the standard $50,000 bond. Required for ISF filing, FTZ operations, and bonded warehouse use. Best for companies that import regularly.

Bond Amounts and Sufficiency

CBP requires that your bond be "sufficient" to cover your estimated annual duty liability. For most importers, the minimum $50,000 continuous bond works. However, if your annual duties, taxes, and fees exceed $50,000, CBP's Revenue Division will issue a bond insufficiency notice requiring you to increase the bond amount. The formula is typically 10% of duties, taxes, and fees paid in the prior 12 months, rounded up to the nearest $10,000, with a $50,000 minimum. For example, if you paid $800,000 in duties last year, your required bond amount would be $80,000.

What Does a Customs Bond Cover?

• Payment of duties, taxes, and fees — The primary obligation. If you don't pay, the surety pays CBP.
• Compliance with customs law — Including accurate entry filing, proper classification, correct valuation, and timely payment.
• Liquidated damages — Penalties assessed for violations such as late entry, missing ISF, or redelivery failure. These are claims against your bond.
• Redelivery obligation — If CBP requests goods be returned to customs custody (e.g., for marking violations or FDA refusal), the bond guarantees compliance.
• Recordkeeping — Your bond guarantees that you'll maintain import records for 5 years as required by law.

How to Purchase a Customs Bond

Customs bonds are issued by surety companies authorized by the US Treasury Department. You can purchase a bond through your customs broker (most common), directly from a surety company, or through a bond specialist/insurance agent. The application process typically requires your IRS EIN or Social Security Number, CBP importer number, estimated annual import value and duty payments, and basic business information. Approval takes 1-5 business days for standard applications. Importers with poor credit, prior customs violations, or high duty liabilities may face higher premiums or additional collateral requirements.

What Happens If Your Bond Is Insufficient?

If CBP determines your bond doesn't cover your obligations, they'll issue a bond insufficiency notice giving you 30 days to increase the bond amount. During this period, you can still import, but if you fail to respond, CBP may require single-entry bonds for every shipment — significantly increasing your costs and slowing down every import. Repeated insufficiency or claims against your bond can make it difficult to obtain bond coverage at all, effectively blocking your ability to import.

How Camtom Helps with Bond Planning

Understanding your total duty liability is essential for bond sufficiency. Camtom's platform calculates estimated duties for every product you import, including base tariffs, Section 301/232 surcharges, AD/CVD orders, and trade agreement preferences. With accurate duty projections, you can ensure your bond amount is sufficient, avoid insufficiency notices, and negotiate better premium rates with your surety by demonstrating a clear understanding of your import program.

Need to understand your duty exposure? Try Camtom's free tariff lookup or schedule a demo to see how our platform helps importers plan and manage their customs compliance costs.