Customs Bonds: Single-Transaction vs Continuous

By ChinaManufacturers.com Editorial Desk · Updated 30 October 2026 · How this page was researched

What a customs bond is

A customs bond is a three-party contract in which a surety company guarantees to U.S. Customs and Border Protection (CBP) that an importer will pay its duties, taxes and fees and meet the other conditions of importing. Every formal entry requires one, and it can cover a single entry or all of an importer's entries for a year.

The three parties are the principal (the importer), the surety (an insurance company certified by the U.S. Treasury and listed on Treasury's Circular 570), and CBP as the obligee, the protected party. The importer pays the surety a premium, usually through its customs broker or a bond agent. Under the basic importation and entry bond, the principal and surety are jointly and severally liable, meaning CBP can collect the full amount owed from either of them (19 CFR 113.62).

The bond used for ordinary imports is the basic importation and entry bond, known by its activity code as Activity Code 1. It comes in two forms: a single-transaction bond (STB), which covers one entry, and a continuous bond, which covers every entry the importer files for twelve months. Both carry the same conditions.

A bond is not insurance for the importer. If the surety pays a claim, it will seek indemnity from the importer for the full amount.

What the bond guarantees

19 CFR 113.62 lists the conditions the principal agrees to when it takes out a basic importation and entry bond. In summary, the importer undertakes to:

pay estimated duties, taxes and charges at entry, and any additional amounts assessed later at liquidation;
file the entry and entry summary on time;
produce required documents;
redeliver goods to CBP on demand, where the demand is made within 30 days of release or of the end of the conditional release period;
comply with Importer Security Filing (ISF) requirements under 19 CFR Part 149;
comply with the rules for electronic entry filing.

The redelivery condition matters to China importers in particular. If CBP determines after release that goods should not have entered, it can demand that they be returned to customs custody. Failure to redeliver is a bond breach with its own liquidated damages.

Liquidated damages: what a breach costs

When a bond condition is breached, CBP assesses liquidated damages (a pre-set amount owed under the surety contract, rather than a penalty proven case by case). The amounts are fixed in 19 CFR 113.62:

Breach	Liquidated damages
ISF violation	$5,000 per violation (113.62(j))
Late payment of estimated duties	The greater of 2× the unpaid amount or $1,000
Failure to file entry or to redeliver	The value of the merchandise; 3× value for restricted or prohibited merchandise or alcohol
Electronic-data violations	$5,000

CBP can mitigate liquidated damages under its own guidelines, which are outside the scope of this page. The exposure is still real: a late ISF on a container from Shenzhen is a $5,000 claim against the surety before any question of whether the goods themselves were compliant.

Single-transaction or continuous bond

A single-transaction bond covers one entry. It suits an importer bringing in one shipment, or a few a year. Under CBP practice an STB is generally sized at the entered value plus duties, taxes and fees, and at three times the value for merchandise subject to partner-agency requirements such as FDA's; antidumping and countervailing duty goods require more. Those multiples come from CBP guidance that could not be re-checked for this page, so confirm them with the broker or surety writing the coverage.

A continuous bond covers all of an importer's entries for twelve months and renews. Importers who bring goods in regularly usually use one, because one premium covers every entry and the bond also satisfies the ISF bond requirement. A separate single-transaction ISF bond exists for importers without a continuous bond.

The ISF rule requires a qualifying bond on file for each ISF, which may be the ISF importer's own or the filing agent's (19 CFR 149.5(b)). For the entry itself, the importer of record needs a bond that covers entries filed in its name.

How a continuous bond is sized

CBP's stated formula for a continuous bond is 10% of the duties, taxes and fees the importer paid in the preceding twelve months (or is projected to pay, for a new importer), with a minimum of $50,000. Amounts are rounded up to the next $10,000 up to $100,000, and to the next $100,000 above that. The formula appears in CBP Directive 099 3510-004 (Monitoring of Bonds) and CBP's bond guidance; CBP's website could not be retrieved when this page was researched in October 2026, so the formula is stated as CBP has published it, not as re-checked on that date.

Two examples of the arithmetic:

$300,000 in duties, taxes and fees over twelve months × 10% = $30,000. That is below the minimum, so the bond is $50,000.
$1.2 million × 10% = $120,000. That is above $100,000, so it rounds up to the next $100,000: a $200,000 bond.

The regulation behind the formula is 19 CFR 113.13. It sets a floor of $100 for any bond unless law allows less, stated to the next highest dollar, and lists the factors CBP weighs in fixing a bond amount: the importer's payment history, its record on redelivery and enforcement, the value and nature of the goods, the degree of CBP supervision involved, and any history of liquidated damages.

Bond insufficiency when tariffs rise

Because the formula is driven by duties paid, a tariff increase raises the coverage an importer needs. A bond sized on last year's duties can become too small partway through the year, and on Chinese goods the duty base has moved repeatedly since 2025.

19 CFR 113.13 sets out what happens. CBP periodically reviews bonds. If it finds one inadequate, it must notify the principal and surety in writing, and the principal has 15 days to correct it, normally by filing a larger, superseding bond. If the bond is insufficient to protect the revenue, CBP may require cash deposits or single-transaction bonds for every transaction until the problem is fixed. Where a particular transaction would put revenue at risk, CBP can demand additional security immediately.

Recent changes to the duty base, dated:

2025: IEEPA, Section 232 and Section 301 increases raised duties paid. Large numbers of bond insufficiencies and surety collateral demands were widely reported, though no CBP statistic on them was found.
24 February 2026: CBP stopped collecting IEEPA duties after the Supreme Court's 20 February ruling in Learning Resources, Inc. v. Trump. Refunds through CBP's CAPE process, from 20 April 2026, may lower the twelve-month duty base, but how CBP treats refunded IEEPA duties in bond sufficiency reviews has not been published.
24 July 2026: the Section 301 forced-labor action added 12.5% on most products of China (USTR final action notice), raising the duty base again for affected importers.

An importer whose China volume or tariff exposure has grown should recompute the 10% figure on current duties, not wait for an insufficiency notice.

Common customs bond mistakes

Sizing at the $50,000 minimum and never revisiting it. Tariff growth can push the bond into insufficiency, and CBP can then require cash deposits or single-transaction bonds.
Treating the bond as insurance. The surety will seek indemnity from the importer for any claim it pays.
Overlooking liquidated damages exposure for ISF violations ($5,000 each) and for late entry or failure to redeliver.
Relying on a forwarder's bond as if it covered the importer's own entries. The importer of record needs its own bond for entries filed in its name.

Frequently asked questions

Do I need a customs bond to import from China?

Yes, for a formal entry. A customs bond guarantees to CBP that the importer will pay duties, taxes and fees and meet the other entry conditions in 19 CFR 113.62. It can be a single-transaction bond for one entry or a continuous bond for all entries over twelve months. Ocean shipments also need a bond on file for the Importer Security Filing.

Should I get a single-entry or continuous customs bond?

It depends on how often you import. A single-transaction bond covers one entry and suits occasional shipments. A continuous bond covers every entry for twelve months, also satisfies the ISF bond requirement, and is the usual choice for regular importers. A continuous bond is sized at 10% of the prior year's duties, taxes and fees, with a $50,000 minimum.

How much does my continuous bond need to be?

Under CBP's stated formula, 10% of the duties, taxes and fees paid in the previous twelve months, or projected for a new importer, with a $50,000 minimum. Results are rounded up to the next $10,000 up to $100,000 and to the next $100,000 above that. So $1.2 million in duties gives a $200,000 bond. This page states the formula as CBP published it.

What happens if my customs bond is insufficient?

CBP notifies the importer and surety in writing, and the importer has 15 days to correct the shortfall, usually by filing a larger superseding bond, under 19 CFR 113.13. If the bond does not protect the revenue, CBP may require cash deposits or single-transaction bonds for every entry until it is fixed, and can demand extra security immediately for a high-risk transaction.

Does a customs bond cover ISF penalties?

Yes. Compliance with the Importer Security Filing rules is a condition of the basic importation bond, and 19 CFR 113.62(j) sets liquidated damages of $5,000 per ISF violation. The surety can be made to pay CBP, but it will then seek indemnity from the importer. CBP can mitigate liquidated damages under its own guidelines.

Who issues customs bonds?

Surety companies certified by the U.S. Treasury and listed on Treasury's Circular 570 issue customs bonds, usually through customs brokers or bond agents. The importer pays a premium per shipment for a single-transaction bond or annually for a continuous bond. Premiums are market-priced; the bond amount is driven by the duties, taxes and fees the importer pays.

Customs bonds