How US Customs Bonds Work
What Is a Customs Bond?
A customs bond is a financial guarantee between the importer, a surety company, and US Customs and Border Protection (CBP). It guarantees that CBP will be paid the duties, taxes, and fees owed on your imports — even if your business fails or you vanish. It is not insurance for you. It is insurance for the government. The bond does not cover the value of lost or damaged goods, and it does not reduce your duty liability.
Under 19 CFR Part 113, every commercial importation into the United States valued over $2,500 — or any shipment subject to other agency requirements (FDA, EPA, DOT, etc.) — requires a customs bond. Informal entries under $2,500 may not require a bond, but commercial shipments virtually always do.
Single-Entry Bond (SEB)
A single-entry bond covers one customs entry at one port. The bond amount must equal at least the total entered value of the goods (CIF) plus all duties, taxes, and fees. If the shipment value is $10,000 and duties are $800, your bond must be at least $10,800. SEB premiums are typically 0.5% to 1.5% of the bond amount, with a minimum premium floor of around $50-$75 per entry. The surety writes a new bond for each shipment.
When SEB makes sense: You import fewer than 4-6 times per year, your per-shipment values are low, and you don't need a continuous bond for other CBP programs (C-TPAT, bonded warehousing, etc.).
Continuous Bond (CB)
A continuous bond covers unlimited entries at all US ports for 12 months. The minimum bond amount is set by CBP regulation: 10% of the total duties, taxes, and fees paid in the previous 12 months, or $50,000 — whichever is greater. If your estimated annual duties are $25,000, your minimum bond is $50,000 (the floor). If annual duties are $600,000, your minimum bond is $60,000 (10%).
Continuous bond premiums are typically $250-$500 per year for the minimum $50,000 bond, scaling up with the bond amount. A $100,000 bond might cost $800-$1,200/year. The continuous bond also satisfies bond requirements for C-TPAT, bonded warehouses, FTZ operations, and drawback claims — one bond covers everything.
Bond Riders
If your imports grow mid-year and your continuous bond is no longer sufficient (annual duties will exceed 10× the bond amount), CBP will require a bond rider — a supplemental bond that increases your coverage. Riders cost proportionally less than a new bond, typically $100-$300, and keep you compliant without replacing the whole bond.
The Break-Even Point
The rough rule: if you import more than 5-6 times per year, a continuous bond is almost always cheaper. At $75 per single-entry bond × 6 entries = $450 — about what a continuous bond costs. Above 6 entries, the continuous bond wins by an increasing margin. Below 4, single-entry bonds are usually the better deal.
Who Needs This Calculator?
- First-time importers who've never posted a bond and don't know where to start.
- E-commerce brands scaling from sporadic air freight to regular container shipments.
- DTC brands currently using Type 86 (Section 321) entry who are modeling what happens if de minimis is eliminated — formal entry requires a bond.
- 3PLs and fulfillment providers advising clients on bond requirements.
- Anyone switching from a customs broker's bond to their own continuous bond — broker bonds often carry a per-use markup that disappears once you have your own.
Limitations
This calculator provides general estimates based on standard surety market rates. Actual bond premiums vary by surety company, your credit profile, the commodity type, and whether you have an existing relationship with the surety. Bond amounts are set by CBP regulation (19 CFR 113.13). Always confirm your specific bond requirement with a licensed customs broker or surety agent. This calculator does not constitute a bond quote or offer.