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Short answer
A customs bond is a performance contract that protects the revenue of the United States and secures compliance with import rules. It is made between the importer (the principal) and a surety, with U.S. Customs and Border Protection (CBP) as the third-party beneficiary. A single transaction bond covers one entry; a continuous bond covers multiple entries over a one-year period and renews automatically.
Definition and scope
CBP’s own public guide describes bonds as “the primary tool used by U.S. Customs and Border Protection (CBP) to safeguard the revenue of the United States and ensure compliance with applicable laws and regulations.” A bond is “a contract between the principal and the surety, or an agreement by a principal secured by cash in lieu of surety.” CBP is the third-party beneficiary of most CBP bonds.
The term “customs bond” is therefore a family of instruments rather than one product. The rules sit in 19 CFR Part 113, and CBP sorts bonds by activity code (see the table below). This page is about the bond itself. Who counts as the importer of record, and what that party is liable for, is covered in the importer of record guide.
Single transaction bond vs continuous bond
CBP defines a single transaction bond (STB) as “a bond that secures a single transaction or activity.” A continuous bond “secures one or more transactions or activities over a one-year period, is renewed automatically on the anniversary of the effective date of the bond, and remains in effect until terminated.”
The regulations frame the same split: under 19 CFR 113.11, a port director may require a person engaged in a single customs transaction to file an application, while a continuous bond application is made to secure multiple transactions relating to the importation or entry of merchandise. Approval differs too (19 CFR 113.12): single transaction bonds are approved by the Revenue Division or the director of the port where filed, and continuous bonds must be approved by the Revenue Division.
CBP’s guide states that if an entry type requires a bond and a continuous bond is not on file, a single transaction bond is required. An STB can also be required as additional coverage when a continuous bond is insufficient.
How CBP sets the bond amount
No bond may be below $100 unless a law or regulation allows less (19 CFR 113.13(a)). Beyond that floor, the amount rules differ by bond type.
Continuous bond (Activity Code 1)
- Minimum: $50,000 or 10% of the total estimated duties, taxes and fees in the previous 12-month period, whichever is greater. CBP calls this the “Reviewer formula.”
- Increments: $10,000 up to $100,000, then $100,000 increments for larger bonds.
- No imports in the preceding year: the amount is set on the principal’s estimate for the next 12 months, and in no event can it be less than $50,000.
- Entry types not counted in the sufficiency computation include informal entries (types 11 and 12, under $2,500), drawback (47), Section 321 de minimis entries (86, under $800), and certain warehouse withdrawals.
Single transaction bond
The amount is generally not less than the total entered value plus all applicable duties, taxes and fees, with these exceptions stated in CBP’s guide:
| Merchandise or entry | STB amount |
|---|---|
| Standard entry | Entered value plus applicable duties, taxes and fees |
| Unconditionally duty-free merchandise | 10% of entered value |
| Restricted merchandise | 3 times the value, not less than $100 |
| Temporary importation under bond (TIB) | 2 times estimated duties including the merchandise processing fee |
| TIB: order-taking samples, advertising films, professional equipment (9813.00.20, .25, .50) | 110% of estimated duties |
Antidumping or countervailing duty cases can trigger an additional STB.
What happens when a bond is insufficient
CBP keeps reviewing bonds after they are issued. Under 19 CFR 113.13(b) it weighs the principal’s record of paying duties, taxes and charges on time, its record of complying with redelivery demands and other enforcement, the value and nature of the merchandise, the level of CBP supervision, its record of honoring bond commitments including liquidated damages, and the information in the application.
If a bond is inadequate, CBP notifies the principal and surety in writing and the principal has 15 days from notification to remedy the deficiency; in the meantime CBP may require a cash deposit or a single transaction bond (113.13(c)). CBP may require additional security immediately where accepting a transaction would place the revenue in jeopardy or hamper enforcement (113.13(d)). Its analytical formula also adds 10% of certain delinquent bills, 100% of bills more than 210 days past due and unprotested (or with a denied protest), and 100% of unpaid debit vouchers.
A bond is exhausted when its full amount (for a continuous bond, for that annual period) is paid as liquidated damages or by the surety. It is “not exhausted or reduced when duties or penalties have been paid by the principal.”
Bond types by activity code
| Activity code | Purpose | Regulation |
|---|---|---|
| 1 | Basic importation and entry | 19 CFR 113.62 |
| 1a | Drawback | 19 CFR 113.65 |
| 2 | Custodial | 19 CFR 113.63 |
| 3 | International carrier | 19 CFR 113.64 |
| 4 | Foreign trade zone operator | 19 CFR 113.73 |
| 5 | Commercial gauger and commercial laboratory (continuous only) | 19 CFR 113.67 |
| 6 | Wool, fur and fiber labeling (single transaction only) | 19 CFR 113.68 |
Activity Code 1 conditions include an agreement to pay duties, taxes and charges and an agreement to redeliver merchandise (19 CFR 113.62).
Where it matters for labs, clinics and supply decisions
CBP’s guide does not address laboratory goods specifically, but its rules apply to supply and procurement shipments in three ways. Whether a bond is needed at all depends on the entry type. The 10% single transaction rule applies to unconditionally duty-free merchandise. Temporarily imported equipment falls under the TIB multipliers above. Separately, commercial gauger and commercial laboratory bonds (Activity Code 5, 19 CFR 113.67) must be continuous bonds. For related procurement topics, see what an RFP covers in lab procurement, minimum order quantities, and hazmat shipping papers.
Common misunderstandings
- A customs bond is not insurance for the importer. It is a contract that protects CBP’s revenue; the principal remains responsible, and paying duties does not reduce or exhaust the bond.
- It is not one fixed product. Amount, term and conditions depend on bond type and activity code.
- The $50,000 figure is a floor for the continuous formula, not a universal price tag. Single transaction bonds follow the value-based rules above, and the general minimum for any CBP bond is $100.
- A bond is not the same as being the importer of record. The bond is a contract between principal and surety; importer-of-record status is covered in the importer of record guide.
FAQ
What is a customs bond?
A performance contract between an importer (principal) and a surety that protects U.S. revenue and secures compliance, with CBP as third-party beneficiary of most bonds.
Do I need a continuous bond?
CBP’s guide says that if an entry type requires a bond and no continuous bond is on file, a single transaction bond is required. Whether a given entry requires a bond depends on its entry type.
What is the minimum continuous bond amount?
For Activity Code 1, $50,000 or 10% of total estimated duties, taxes and fees in the previous 12 months, whichever is greater. With no imports in the preceding year, the amount is based on the estimate for the next 12 months and cannot be below $50,000.
Who approves a customs bond?
Single transaction bonds are approved by the Revenue Division or the port director where filed; continuous bonds must be approved by the Revenue Division (19 CFR 113.12).
Sources
- CBP, A Guide for the Public: How CBP Sets Bond Amounts, Publication 3569-0224, February 2024 (checked 2026-10-29).
- eCFR, 19 CFR Part 113, CBP Bonds (checked 2026-10-29).
- Cornell LII, 19 CFR 113.13, 113.12, 113.11 and 113.67 (checked 2026-10-29).
- CBP, Bonds program page, the starting point for CBP Form 301 and eBond (checked 2026-10-29).
