Customs Continuous Bond Requirements: Types, Amounts, and Bond Calls

Key Points

• Every commercial import into the United States requires a customs bond; the two primary forms are the single-entry bond and the continuous transaction bond, both governed by 19 CFR Part 113.
• CBP sets a continuous bond at 10 percent of duties, taxes, and fees paid in the prior calendar year, subject to a minimum of $50,000.
• Importers subject to antidumping or countervailing duty (AD/CVD) orders face heightened sufficiency standards and may receive demands to increase bond amounts significantly above the standard formula.
• When CBP calls a bond, the surety company becomes directly liable for unpaid duties, taxes, fees, or liquidated damages up to the face amount of the bond.
• A bond that is found insufficient does not automatically suspend imports, but CBP can demand a higher bond or terminate the existing bond with relatively short notice.

On this page

1. What a customs bond is and why it is required
2. Single-entry bonds vs. continuous transaction bonds
3. How CBP calculates bond sufficiency and sets the continuous bond amount
4. Heightened bond requirements for AD/CVD importers
5. What happens when CBP calls the bond
6. What importers should do
7. Key references

A customs bond is a three-party contract among an importer (the principal), a surety company, and U.S. Customs and Border Protection (CBP). It guarantees that the importer will pay all duties, taxes, and fees owed on imported merchandise and comply with CBP regulations. Importers can choose between a single-entry bond covering one shipment or a continuous transaction bond covering all entries filed at any port during a 12-month period. The continuous bond is almost always more cost-effective for frequent importers, and CBP's formula ties the required amount directly to prior-year duty payments.

The links in this article go to the primary documents: the regulations, CBP guidance pages, and statutory text themselves. Read the source.

What a customs bond is and why it is required

CBP requires a bond on every formal entry of merchandise into U.S. commerce. The legal authority flows from the Tariff Act of 1930 and is implemented through 19 CFR Part 113, which sets out the bond conditions, approved surety requirements, and procedures for bond termination and calls.

The bond protects the government's revenue interest. If an importer fails to pay duties after liquidation, or violates a customs law that results in a liquidated damages claim, CBP can recover from the surety rather than pursuing only the importer. The bond is not insurance for the importer; it is a guarantee to the government.

Customs brokers who file entries on behalf of importers are also required to hold their own bonds. For details on the standard bond form used for most import transactions, see our companion article on CBP Form 301: Customs Bond Rules for Importers and Brokers.

Single-entry bonds vs. continuous transaction bonds

Single-entry bonds

A single-entry bond (sometimes called a single-transaction bond) covers exactly one entry at one port. The bond amount must equal the full value of the merchandise plus all duties, taxes, and fees estimated to be due, or the value of the merchandise, whichever is greater. Single-entry bonds are practical for:

• One-time or very infrequent importers
• Shipments of unusually high value where a continuous bond would need to be significantly increased anyway
• Certain specialized entries such as temporary importation under bond (TIB) or in-bond movements

Because a separate bond must be obtained and filed for each shipment, transaction costs add up quickly for regular importers.

Continuous transaction bonds

A continuous transaction bond covers all entries filed by the principal at all U.S. ports of entry for a rolling 12-month period. Once approved by CBP, the importer or broker submits the bond to CBP's bond management system, and the same bond number appears on every entry. The bond renews automatically each year unless it is terminated by the principal, the surety, or CBP.

The primary advantages are administrative simplicity and cost efficiency. Most active importers and all licensed customs brokers use continuous bonds as their default bond type.

How CBP calculates bond sufficiency and sets the continuous bond amount

CBP's standard formula for a continuous bond is 10 percent of the total duties, taxes, and fees paid in the prior calendar year, rounded up to the nearest $10,000, subject to a minimum of $50,000. An importer who paid $300,000 in duties last year would need a bond of at least $50,000 (10 percent of $300,000 = $30,000, which is below the minimum, so the $50,000 floor applies). An importer who paid $2 million in duties would need a bond of at least $200,000.

CBP reviews bond sufficiency periodically and can issue a formal demand for an increased bond at any time. If an importer's import volume or duty liability grows substantially, the existing bond may be declared insufficient even before the annual renewal date.

When CBP issues a bond-insufficiency notice

A bond-insufficiency notice from CBP gives the importer a short period, often 30 days, to replace the existing bond with one at the required higher amount. During this window, the importer can continue filing entries under the old bond. If the importer does not provide an adequate bond in time, CBP may refuse to accept new entries until a compliant bond is on file.

Heightened bond requirements for AD/CVD importers

Importers of merchandise subject to antidumping duty (AD) or countervailing duty (CVD) orders face significantly stricter bond sufficiency standards. AD/CVD liability can be retroactively adjusted upward through the annual administrative review process, sometimes years after entry. This creates a gap between estimated duties deposited at entry and the final assessed duties after review.

CBP has authority to require that continuous bond amounts for AD/CVD importers reflect not just the standard 10-percent formula but the full potential AD/CVD liability, including estimated duties that have not yet been liquidated. In practice, this means a bond for an AD/CVD importer can be many times larger than the standard formula would produce.

Enhanced continuous bonds and single-transaction bonds in AD/CVD cases

In some AD/CVD situations, CBP has directed importers to post single-transaction bonds for individual shipments rather than relying on a continuous bond, when the potential liability on a single shipment would itself exceed a reasonable continuous bond amount. CBP may also require that the continuous bond be set at the full value of expected AD/CVD deposits for the coming year.

Importers who receive a CBP bond-insufficiency demand related to AD/CVD exposure should treat it as urgent. Failure to respond can result in refusal of new entries and, in serious cases, referral to CBP's Revenue Division for collection action.

Penalties under 19 U.S.C. 1592 for material false statements or omissions that affect the assessment of duties interact directly with bond liability: a penalty claim can be pursued against both the importer and, up to the bond amount, against the surety. For more on how CBP distinguishes degrees of culpability in penalty cases, see CBP Gross Negligence vs Fraud in Customs Violations: How CBP Decides.

What happens when CBP calls the bond

A bond call occurs when CBP makes a formal demand on the surety company to pay an amount owed by the principal (the importer or broker). Bond calls arise in two main situations:

• Unpaid duties, taxes, or fees: After liquidation, if the importer does not pay the amount owed within the time CBP specifies, CBP issues a bill. If the bill goes unpaid, CBP can demand payment from the surety up to the bond amount.
• Liquidated damages: CBP issues a liquidated damages claim when an importer violates a bond condition, for example, failing to re-export a temporary importation under bond entry in time, or failing to file required documents. The claim is made against both the principal and the surety.

The surety's liability

Under 19 CFR Part 113, the surety's liability is joint and several with the importer's, but it is capped at the face amount of the bond. If duties owed exceed the bond amount, CBP can pursue the importer directly for the remainder but cannot collect more than the bond amount from the surety alone.

Once CBP calls the bond and the surety pays, the surety typically has a right of indemnification against the importer under the terms of the indemnity agreement signed when the bond was issued. This means the importer ultimately remains financially responsible; the surety is a guarantor, not an absorber of the loss.

Responding to a liquidated damages claim

Both the importer and the surety may petition CBP for cancellation or mitigation of a liquidated damages claim. CBP has authority to cancel or reduce a claim based on factors such as the circumstances of the violation, the importer's compliance history, and whether the government suffered actual financial harm. Petitions must be filed within the timeframe specified in the claim notice. Missing that deadline forecloses the mitigation option and leaves the surety with no choice but to pay or litigate.

Bond termination

Either the principal or the surety may terminate a continuous bond by providing written notice to CBP. The surety remains liable for all entries filed before the termination effective date, even if those entries are not liquidated until years later. This tail liability is a major reason sureties conduct ongoing underwriting reviews of their bond portfolios and may demand collateral or increased premiums when an importer's risk profile changes.

What importers should do

• Review your bond amount annually before your renewal date. Compare the face amount of your continuous bond against 10 percent of your prior-year duty payments, and proactively request an increase if the standard formula would require one. Waiting for a CBP insufficiency notice creates unnecessary risk.
• Flag AD/CVD exposure early. If you are importing merchandise subject to an AD/CVD order, or are considering doing so, discuss the bond implications with your customs broker and surety before the first shipment arrives. AD/CVD deposit rates and the potential for retroactive assessment can drive bond requirements far above the standard formula.
• Respond immediately to bond calls and liquidated damages claims. Both carry strict deadlines for petition and mitigation. Calendar every deadline in the claim notice and engage your broker or trade counsel right away, because missing the petition window eliminates your best options for reducing liability.
• Keep your importer identity information current with CBP. Bond sufficiency reviews and collection actions depend on accurate importer records; outdated information on file can complicate bond administration. See our guide on CBP Form 5106: Create/Update Importer Identity Form Explained.

Key references

• 19 CFR Part 113: CBP bond regulations, bond conditions, termination procedures, and surety requirements
• 19 U.S.C. 1592: Penalties for fraud, gross negligence, and negligence in entry; interacts with bond liability
• CBP.gov: Bonds: CBP's official bond program page, including guidance on continuous and single-entry bonds
• CBP.gov: Antidumping and Countervailing Duties: CBP's AD/CVD program page, relevant to heightened bond requirements
• CBP Form 301: Customs Bond Rules for Importers and Brokers: Companion article on the standard bond form
• CBP Gross Negligence vs Fraud in Customs Violations: How CBP Decides: Companion article on 19 U.S.C. 1592 penalty tiers and their bond implications