US import compliance
Customs bonds explained
A customs bond is a three-party contract between the importer of record, a Treasury-approved surety and US Customs and Border Protection. It guarantees that duties, taxes and fees get paid and that import rules are followed. The distinction that trips importers up: the bond protects CBP, not you. If the surety pays a claim, it comes back to the importer for the money.
When CBP requires a bond
- Commercial entries with a value above $2,500.
- Any goods subject to another federal agency’s requirements — FDA, USDA, EPA, DOT, quota — regardless of value.
- The Importer Security Filing on ocean shipments, filed 24 hours before lading.
- Bonded warehouses, container freight stations, cartmen and in-bond movements, under a custodial bond held by the custodian.
- Accelerated payment of drawback claims, under a drawback bond.
The bond types
Continuous (Activity Code 1)
Every entry filed at every US port for 12 months, and it rolls over automatically until terminated.
Also covers ISF filings, so importers who buy a separate ISF bond on top of a continuous bond are paying twice.
Single-entry (single transaction bond)
One entry, at one port, on one shipment.
Sized on the entered value plus duties, taxes and fees; goods under another agency’s rules are commonly written at three times entered value.
ISF bond (Appendix D)
The Importer Security Filing on an ocean shipment when no continuous bond is in place.
Only needed by importers without a continuous bond. Late or missing ISF is what triggers the liquidated-damages claim the bond secures.
Custodial / warehouse (Activity Code 2)
Bonded warehouses, container freight stations, cartmen and in-bond carriers.
Held by the custodian of the merchandise, not the importer of record.
Drawback (Activity Code 1a)
Accelerated payment of drawback claims before CBP finishes its review.
Secures repayment if a claim is later reduced or denied.
CBP Form 301
Form 301 is the bond itself. It names the principal (the importer of record), the Treasury-approved surety, the activity code — Activity Code 1 for importer/broker, 1a for drawback, 2 for custodial — and the bond amount, and carries both signatures. Most importers never touch the form directly because the broker files it electronically with CBP, but the amount and the activity code on it are worth checking: they are what determine whether entries clear and what you pay each year.
What a bond does not do
It is not insurance on your cargo. Physical loss and damage sit with marine cargo insurance, and neither instrument pays a cent of the delay charges — demurrage, detention, per diem, reefer power — that dominate most import invoices. Those are billing questions, which is what a freight audit and the accessorial decoder are for.
Customs bond FAQ
What is a customs bond?
A customs bond is a three-party contract between the importer (principal), a Treasury-approved surety and US Customs and Border Protection. It guarantees that duties, taxes and fees will be paid and that import regulations will be followed. It protects CBP, not the importer — if the surety pays a claim, it pursues the importer for the money.
When is a customs bond required?
A bond is required for commercial entries valued over $2,500, for any goods subject to another federal agency’s requirements regardless of value, and for the Importer Security Filing on ocean shipments. Bonded warehouses, in-bond carriers and accelerated drawback claims each need their own bond type.
What is CBP Form 301?
CBP Form 301 is the bond form itself. It records the principal, the surety, the activity code (Activity Code 1 covers importer/broker, 1a drawback, 2 custodial) and the bond amount, and it is signed by the principal and the surety.
Who files the bond?
Most importers obtain the bond through their customs broker, who is an agent of a surety. You can also go to a surety or a bond specialist directly. Either way the bond is in the importer of record’s name, and it stays in force until it is terminated.
How fast can a customs bond be issued?
A single-entry bond can normally be arranged the same day. A continuous bond is filed electronically with CBP and typically becomes effective within a few business days, which is why importers with a first shipment in transit often use a single-entry bond as a bridge.
Does a customs bond insure my cargo?
No. It secures your obligations to CBP. Physical loss or damage is marine cargo insurance, and delay charges such as demurrage, detention and reefer power are excluded from both.
Check what your entries are actually costing
Bond premium is small money. The duties, fees and accessorials filed alongside it are not. Send a recent set of entries and invoices and we will show you, at no charge, what was billed against the tariff and what is recoverable.
Start a free auditIndicative only. CBP sets the bond amount rules; the surety sets the premium after underwriting. Sellexio does not issue, broker or bind customs bonds.