Customs Bonds: Single Transaction vs. Continuous Bonds Explained
A customs bond is a financial guarantee required by U.S. Customs and Border Protection (CBP) to ensure payment of duties, taxes, and penalties. Learn when you need one, how much it costs, and which type is right for your business.
TL;DR — Quick Summary
- What it is: A customs bond is a surety contract guaranteeing you'll pay duties, taxes, and comply with CBP regulations. Required for most formal entries over $2,500.
- Two types: Single Transaction Bond (covers one shipment, ~$50-150) vs. Continuous Bond (covers unlimited shipments for one year, minimum $50,000 bond amount, ~$400-500 annual premium).
- When required: Formal entries, ISF filing, Foreign Trade Zones, temporary imports (TIBs), and certain regulated commodities always need a bond.
- Break-even point: If you import 4+ times per year, a continuous bond is more cost-effective than single transaction bonds.
What Is a Customs Bond?
A customs bond (officially called a "Customs Surety Bond" or "CBP Bond") is a three-party contract between:
- Principal: You, the importer
- Surety: The insurance company backing the bond
- Obligee: U.S. Customs and Border Protection (CBP)
The bond guarantees that if you fail to pay duties, taxes, or fees—or violate import regulations—the surety company will cover CBP's losses (up to the bond amount), and then seek repayment from you.
Think of it as insurance for CBP, not for you. It protects the government from revenue loss, ensuring they can collect even if an importer defaults. See official guidance at CBP Surety Bonds page.
Do You Need a Customs Bond?
You must have a customs bond if:
Exemption: Shipments under $2,500 entering under Section 321 (de minimis) typically do not require a bond—unless they contain regulated products (textiles, agriculture, alcohol, etc.).
Single Transaction vs. Continuous Bond
| Feature | Single Transaction Bond (STB) | Continuous Bond |
|---|---|---|
| Coverage | One shipment only | All entries for one year |
| Bond Amount | Typically 3x the duties/taxes/fees for that shipment | Minimum $50,000 (or 10% of annual duties paid, whichever is greater; capped at $10M for most importers) |
| Cost (Premium) | ~$50–$150 per shipment | ~$400–$500 per year for $50K bond (varies by credit/risk) |
| Renewal | New bond needed for each shipment | Annual renewal |
| Best For | One-time or infrequent importers (1–3 shipments/year) | Regular importers (4+ shipments/year), ISF filers, 3PLs |
Rule of thumb: If you import 4 or more times per year, a continuous bond will save you money compared to buying individual single transaction bonds.
How to Get a Customs Bond (Step-by-Step)
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1
Determine Which Type You Need
Use the comparison table above. For most businesses importing regularly, a continuous bond is the right choice.
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2
Calculate the Required Bond Amount
For continuous bonds, CBP requires the greater of $50,000 or 10% of the duties/taxes/fees you paid in the last 12 months.
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3
Apply Through a Surety Provider or Customs Broker
Most customs brokers can procure bonds on your behalf. You can also work directly with licensed surety companies.
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4
Submit Required Documentation
EIN, business financial info (credit check), import history, and power of attorney if using a broker.
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5
Receive Bond & File with CBP
The surety issues a bond certificate, which your broker files electronically with CBP via ACE (Automated Commercial Environment).
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6
Renew Annually (for Continuous Bonds)
Continuous bonds expire after one year and must be renewed. Your broker will notify you 30–60 days before expiration.
What It Costs
Typical Bond Premiums
- Single Transaction Bond: $50–$150 per shipment (depends on bond amount)
- Continuous Bond ($50,000 coverage): $400–$500/year
- Continuous Bond ($100,000 coverage): $700–$900/year
- Continuous Bond ($500,000+ coverage): $2,000–$5,000/year (varies by credit, import volume, compliance history)
Note: Premiums are non-refundable and paid annually in advance. Poor credit or compliance violations may increase rates.
Risks & Common Mistakes
❌ Letting Your Continuous Bond Expire
If your bond lapses, CBP will reject your entries. Set calendar reminders 60 days before renewal.
❌ Underestimating Bond Amount Needed
If your annual duties grow significantly, you may need to increase your bond amount mid-year to stay compliant.
❌ Not Understanding You're Personally Liable
If CBP makes a claim against your bond and the surety pays it, the surety will collect from you (plus interest and fees). The bond protects CBP, not you.
Get Bonded in 24 Hours with Williamsburg Customs
Fast, Affordable Customs Bonds
We work with top-rated surety providers to secure continuous and single transaction bonds at competitive rates. Most bonds processed same-day.
- ✓ Continuous bonds from $450/year
- ✓ No upfront credit check fees
- ✓ Automatic renewal reminders
- ✓ Integrated with our clearance services
Frequently Asked Questions
Can I use the same continuous bond at multiple ports?
Yes. A continuous bond covers all U.S. ports of entry for one year.
What happens if I don't pay duties on time?
CBP will make a claim against your bond. The surety pays CBP, then demands repayment from you (with interest). Repeated claims can make it difficult to renew your bond.
Do I need a separate bond for ISF filings?
No. A continuous customs bond covers both ISF (10+2) and entry filings. A single transaction bond does not cover ISF—you'd need a separate ISF bond or continuous bond.
Can I cancel my continuous bond and get a refund?
Bond premiums are generally non-refundable. Some providers may offer pro-rated refunds if you cancel early, but this varies by surety.