Customs and Excise Surety Bonds: A Practical Guide

customs and excise surety bonds guide

If you import goods into the United States, you need a customs bond. This is not optional. U.S. Customs and Border Protection (CBP) requires it as a condition of releasing cargo. Without a valid bond on file, your shipment does not move.

A customs bond is a financial guarantee to CBP that you will pay all duties, taxes, and fees owed on imported goods and that you will comply with all applicable customs laws and regulations. If you fail to pay or comply, CBP can file a claim against the bond to recover what it is owed.

Continuous Bond or Single-Entry Bond

Most regular importers use a continuous import bond (Activity Code 1). This bond covers all imports for 12 months at all U.S. ports of entry. The bond amount is the greater of $50,000 or 10% of the total duties, taxes, and fees paid in the prior calendar year. The annual premium for a $50,000 continuous bond typically ranges from $350 to $600.

A single-entry bond covers only one shipment. The bond amount equals the total value of the shipment plus all applicable duties and taxes. Single-entry bonds make sense for businesses that import rarely, but for anyone importing more than once or twice a year, the continuous bond is nearly always more economical.

ISF Bonds

Ocean cargo shipments to the U.S. must comply with the Importer Security Filing rule, commonly called the 10+2 rule. An ISF bond guarantees the timely and accurate filing of advance cargo information to CBP. If an importer does not already have a continuous bond that covers ISF obligations, a separate ISF bond is required. Single-entry ISF bonds typically cost between $85 and $150 per transaction.

Excise Tax Bonds

Manufacturers and distributors of alcohol, tobacco, fuel, and firearms are required to carry excise tax bonds. These bonds guarantee payment of federal excise taxes to the IRS and the Alcohol and Tobacco Tax and Trade Bureau (TTB). The bond amount is set by the relevant agency based on the volume and type of goods produced or distributed.

Bonded Warehouse Bonds

Operators of CBP-licensed bonded warehouses, where imported goods are stored before duties are paid, must carry a warehouse bond. The bond amount is based on warehouse capacity and throughput and must remain active as long as the warehouse holds goods under customs control.

Getting Your Customs Bond

Ai Surety Bonding USA issues continuous import bonds, single-entry bonds, ISF bonds, and excise tax bonds. Most standard customs bond requests are processed quickly. Call us with your import volume and the required bond type, and we will quote and issue in the same conversation for straightforward requests. We work with Liberty Mutual Surety and CNA Surety, both of which are listed on CBP’s approved surety list, so your bond will be accepted without issue.

Request a Customs Bond Quote

Request a Customs Bond Quote
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