Customs Bond Basics: Single Entry vs. Continuous Bonds Explained
If you're importing goods into the United States, CBP requires you to have a customs bond on file for any commercial shipment valued over $2,500. No bond, no release. It's that simple.
But not all bonds are the same. Choosing the wrong type — or sizing it incorrectly — can cost you thousands in delays, penalties, and re-bonding fees. This guide breaks down exactly how customs bonds work, when to use each type, and what most importers get wrong.
What a Customs Bond Actually Does
A customs bond is a three-party contract between you (the importer), a surety company, and U.S. Customs and Border Protection (CBP). The surety guarantees to CBP that if you fail to pay duties, taxes, or penalties, they will cover the obligation — up to the bond amount.
Think of it as a line of credit for CBP. You're not prepaying duties. You're giving the government a financial backstop so your goods can be released before full payment clears.
Bonds are governed under 19 CFR Part 113. Every importer of record must have one for formal entries. If you're using a customs broker, they may hold a bond on your behalf — but understand that their bond doesn't protect you from liability. You are still the importer of record.
Single Entry Bonds (SEB)
A single entry bond (SEB) covers exactly one import transaction. Once that shipment clears customs, the bond is done.
How the Bond Amount Is Calculated
The SEB amount must be equal to the total value of the goods plus all applicable duties and fees. CBP sets the minimum at the greater of $100 or the total of duties, taxes, and charges.
In practice: if you're importing $40,000 worth of furniture from Vietnam with a 25% tariff, your bond must cover at least $50,000 (goods value + duties).
When a Single Entry Bond Makes Sense
Use an SEB if:
- You import fewer than three shipments per year
- You're testing a new supplier and don't know if you'll reorder
- You're bringing in a one-time bulk purchase — trade show inventory, liquidation stock, a capital equipment buy
- Your goods are subject to quota or antidumping investigations and a broker recommends extra caution
The Real Cost of a Single Entry Bond
SEBs are priced as a percentage of the bond amount, typically 0.4% to 0.5% of the required coverage, with most sureties charging a minimum of $50 to $75 per bond.
On a $50,000 bond, that's roughly $200–$250 per shipment. Do that four times a year and you've spent $800–$1,000 on bond fees alone — before you've even looked at a continuous bond.
Continuous Bonds (CB)
A continuous bond covers all your imports under a single bond for a rolling 12-month period. It automatically renews unless cancelled. One bond, unlimited entries.
How Continuous Bond Amounts Are Calculated
CBP requires your continuous bond to be set at 10% of all duties, taxes, and fees paid in the prior calendar year, with a minimum of $50,000. The cap is generally $10 million for most standard importers.
If you paid $180,000 in duties last year, your continuous bond should be set at $50,000 (the minimum applies here since 10% = $18,000, which is below the floor).
If you paid $800,000 in duties last year, your bond needs to be at least $80,000.
Continuous Bond Annual Cost
Expect to pay roughly $500 to $600 per year for a $50,000 continuous bond. Higher bond amounts scale from there — a $100,000 bond runs approximately $800–$1,000 annually.
Compare that to the per-shipment cost of SEBs. If you're running even four to five shipments per year, the continuous bond almost always wins on cost.
When CBP Can Demand a Higher Bond Amount
This is where importers get surprised. Under 19 CFR 113.13, CBP can require you to increase your bond amount if:
- You've accumulated unpaid duties or penalties
- Your import volume spikes significantly mid-year
- You're flagged for an audit or compliance review
- You operate in high-risk commodity categories (electronics, apparel, steel, solar panels)
If CBP sends a Formal Demand for Increased Bond and you don't comply within 30 days, your entries can be held at the port. Act immediately if you receive one.
Single Entry vs. Continuous: Side-by-Side
| Factor | Single Entry Bond | Continuous Bond |
|---|---|---|
| Coverage | One shipment | All shipments, 12 months |
| Minimum cost | ~$50–$75 per entry | ~$500–$600/year |
| Break-even point | ~3–4 shipments/year | 4+ shipments/year |
| Setup time | Same day | 1–3 business days |
| Best for | Occasional importers | Regular importers |
| Bond amount basis | Value + duties of that entry | 10% of annual duties (min $50K) |
Common Mistakes Importers Make
1. Under-Bonding a Continuous Bond
If your duty payments grow 40% mid-year and your bond isn't updated, CBP can hold entries. Review your bond amount every January. If your duties increased significantly, notify your surety before CBP does.
2. Letting a Continuous Bond Lapse
Continuous bonds auto-renew, but only if your surety isn't cancelling coverage. If you switch brokers, change sureties, or miss a payment, there can be a gap in bond coverage. Any shipment arriving during that gap requires an SEB — and if your freight is already at the port, you're paying rush fees.
3. Assuming Your Broker's Bond Covers You
Many freight brokers and customs brokers hold their own continuous bonds to file entries on your behalf. That works — until there's a compliance issue. If CBP assesses a penalty against you as the importer of record, your broker's bond doesn't absorb it. Get your own.
4. Not Accounting for ISF Bond Requirements
Importer Security Filing (ISF) violations — late or inaccurate 10+2 filings — can trigger penalties of up to $5,000 per violation. These liquidated damages are charged against your bond. If you're on a $50,000 continuous bond and rack up 10 ISF penalties, that's $50,000 — wiping out your entire bond amount and triggering a deficiency.
5. Treating a Bond Like Insurance
A bond is not insurance. It's a guarantee of payment. If your surety pays CBP on your behalf, they will pursue you for full reimbursement. There is no "claim" to file. You owe the money.
Special Situations That Affect Your Bond
Antidumping and Countervailing Duties (AD/CVD)
If your goods fall under an AD/CVD order — think steel pipe from China, solar cells, wooden bedroom furniture — CBP can assess additional duties months or even years after your shipment clears. These retroactive assessments can far exceed the original entry value.
For AD/CVD-affected products, many bonding companies and CBP offices recommend sizing your bond at three to five times the standard 10% formula. A $50,000 bond may be dangerously insufficient if you're importing $1M/year of a subject product.
Section 301 Tariffs
Goods from China covered under Section 301 tariffs (25% or 7.5% depending on the list) significantly raise your duty liability. Importers who set their bond before 2018 and never updated it may be under-bonded by a factor of two or three.
Run your HTSUS codes through the current duty calculator and verify your bond amount reflects today's tariff environment, not 2017's.
Temporary Importation Under Bond (TIB)
If you're bringing goods in temporarily — for trade shows, testing, or repair — you can use a Temporary Importation Under Bond (TIB) under 19 CFR Part 10. The bond amount is double the estimated duties. You must re-export or destroy the goods within one year (extendable to three). Failure to comply converts the bond into a duty and penalty obligation.
How to Get a Customs Bond
- Through a licensed customs broker — Most brokers are also licensed bond agents. They can set up a continuous or single entry bond directly. This is the easiest path for most importers.
- Directly through a surety company — If you prefer to hold your own bond independently of your broker relationship, go directly to a CBP-approved surety. The full list is published in the Treasury Department's Circular 570.
- Through an online bond provider — Several platforms now issue continuous bonds same-day. Pricing is competitive, but verify they're reporting correctly to CBP's Automated Broker Interface (ABI).
Once issued, your bond is registered in CBP's system and tied to your importer of record number (typically your EIN or CBP-assigned number). Your broker references it on every entry filing.
The Bottom Line
If you're importing more than three or four times a year, get a continuous bond. The math is almost always in your favor. If you're a first-time importer testing a product, start with a single entry bond and convert once you're committed to the lane.
Either way, size your bond correctly. Review it annually. And understand that the bond is CBP's tool — not yours. Your job is to stay compliant so it never gets called.
Ready to get your import operations dialed in? Whether you're setting up your first bond or auditing your current coverage, our team can walk you through the numbers. Get started today →