Also known as Import Bond. It is a form of insurance that guarantees that the importer promises to pay necessary taxes and obey Customs regulations for importing goods. A Customs Bond is a contract between three parties:
- The importer
- The surety company (which provides the bond)
- The US Customs and Border Protection (CBP)
Types of Customs Bonds
There are two main types of customs bonds:
- Single Entry (Transaction) Bond
A Single Entry Bond (SEB) covers one shipment and applies to a single customs entry. Most bond companies limit SEBs to three per year to avoid additional scrutiny from CBP. - Continuous (Annual) Bond
An Annual Bond is valid for one year and linked to a company’s Tax ID/EIN number. It can be reused for multiple imports throughout the year and is not tied to a specific broker or freight forwarder. If you switch customs brokers, your bond remains valid.
How to Determine Your Bond Size
In most cases, your bond amount must be at least 10% of the total duties and taxes on your imports. The minimum bond amount is $50,000.