Customs bonds guarantee that an importer will meet obligations owed to U.S. Customs and Border Protection (CBP), including duties, taxes, fees, and applicable entry conditions. The bond does not replace accurate classification, valuation, admissibility checks, or agency filings. It provides financial security when those obligations are not met.
TL;DR:
- A single-entry bond covers one named transaction and port entry.
- A continuous Activity Code 1 bond covers eligible entries nationwide and remains effective until terminated, while the commercial premium is typically billed annually.
- CBP generally sets a continuous import bond at 10% of the prior 12 months' duties, taxes, and fees, subject to a $50,000 minimum.
- Shipment frequency, ISF coverage, regulated goods, antidumping or countervailing duties, and lead time can change the practical answer.
What single-entry and continuous bonds cover
A single transaction bond, often called a single-entry bond, is tied to one customs entry. The bond identifies the transaction and port, and a new bond is needed for the next entry. This can be economical for a business that imports once or only in exceptional circumstances.
A continuous bond under Activity Code 1 covers eligible import transactions at U.S. ports while the bond remains active. It reduces repeat paperwork and is usually the operationally simpler choice for importers who ship several times a year. Ocean importers should also account for Importer Security Filing coverage: a continuous bond commonly supports ISF obligations, while a single-entry workflow may require separate ISF bond arrangements.
| Question | Single-entry bond | Continuous bond |
|---|---|---|
| Coverage | One named customs entry | Eligible entries across U.S. ports while active |
| Best fit | One-off or very rare importer | Repeat importer with multiple annual entries |
| Administration | New bond for each entry | One active bond supports repeated entries |
| ISF planning | May require separate coverage | Commonly supports ISF obligations |
| Timing risk | Must be arranged for the shipment | Must be effective before the entry it is meant to cover |
How CBP sets the dollar amount
For a continuous Activity Code 1 import bond, CBP's public bond-amount guide generally uses 10% of the duties, taxes, and fees paid during the previous 12 months. The minimum is $50,000. Above that floor, CBP rounds the required amount according to its published review bands.
A single transaction bond is generally set at no less than the entered value plus duties, taxes, and fees for that shipment. The required amount can be higher where CBP or another government agency sees additional revenue or compliance risk.
The $50,000 figure is the bond's penal amount, not the premium an importer pays. A surety prices the premium based on its underwriting, the required bond amount, and the importer's risk profile.
Compare total cost and administrative friction
Do not compare premiums in isolation. Include every per-entry bond charge, any separate ISF coverage, broker handling, and the risk of a shipment waiting while new coverage is arranged. A single-entry bond may cost less for one shipment, but repeat entry charges can overtake an annual continuous-bond premium quickly.
- Forecast your entries for the next 12 months, including peak-season restocks.
- Estimate duties, taxes, and fees using realistic classifications and values.
- Ask the broker or surety for both options, including ISF and handling charges.
- Confirm the effective date and any underwriting documents before cargo departs.
- Recheck the bond amount when volume, duty rates, or product mix changes materially.
Practical rule: one isolated import may favor a single-entry bond. Multiple planned entries usually make a continuous bond easier to manage, but the surety quote and product risk remain decisive.
Three importer scenarios
One-off furniture container
A company importing one container with no repeat order planned may prefer a single-entry bond. The bond amount is linked to that entry's value and duties, so the importer avoids buying annual coverage it is unlikely to use again.
Monthly Amazon FBA replenishment
A seller with monthly or biweekly restocks normally benefits from a continuous bond. The active coverage removes a recurring pre-clearance task, and consistent ISF and customs workflows reduce avoidable handoffs between the seller, broker, and carrier.
Regulated or trade-remedy goods
An importer handling FDA-, EPA-, or CPSC-regulated merchandise—or products subject to antidumping or countervailing duties—should not rely on a simple shipment-count rule. CBP can require additional security, and the surety may need more underwriting information before issuing coverage.
Filing and timing: set coverage before arrival
Both bond types use CBP Form 301 and are normally filed through a licensed customs broker or surety. A single transaction bond identifies the entry and port. A continuous bond identifies its effective date and cannot be used retroactively for an earlier entry.
Have these inputs ready:
- Importer of record number and current legal entity name.
- Prior 12 months of duties, taxes, and fees.
- Expected shipment count, values, classifications, and countries of origin.
- Known antidumping, countervailing duty, or partner-agency requirements.
- Ocean ISF needs and the expected first arrival date.
A legal-entity change can require new bond work, so tell your broker before changing an importer name, tax identity, or business structure. For the wider entry workflow, see our U.S. customs clearance guide.
Temporary imports, warehouses, and bond failures
Temporary Importation under Bond, bonded-warehouse activity, and regulated merchandise carry conditions beyond an ordinary consumption entry. Missing a re-export deadline, failing to redeliver inadmissible merchandise, or leaving duties unpaid can lead CBP to make a claim against the bond.
Repeated defaults may also lead to a higher required bond amount or added security on future entries. Treat the bond as one control in a broader compliance process: accurate product classification, origin, valuation, agency clearance, recordkeeping, and prompt response to CBP notices still sit with the importer of record.
Decision checklist before you book freight
- Choose single-entry when the import is genuinely isolated and the per-entry quote is lower after ISF and handling are included.
- Choose continuous when repeat entries are planned and reducing clearance administration matters.
- Escalate for review when goods are regulated, subject to trade remedies, unusually valuable, or moving under a special entry type.
- File early enough for underwriting and CBP activation before the shipment needs coverage.
- Monitor sufficiency as annual duties and entry risk change.
FAQ
What are the main customs bond options for importers?
Most routine importers compare a single transaction bond with a continuous Activity Code 1 bond. Specialized transactions, including Temporary Importation under Bond and bonded-warehouse activity, have their own conditions and should be reviewed with a broker or surety.
What is a U.S. customs continuous bond?
It is an Activity Code 1 bond that supports eligible import entries at U.S. ports while it remains effective. CBP generally sets its amount at 10% of the prior 12 months' duties, taxes, and fees, with a $50,000 minimum.
Is $50,000 the price of a continuous bond?
No. It is the minimum penal amount for a continuous import bond. The importer pays a premium quoted by the surety, not the full $50,000 bond amount.
When should I start a continuous bond?
Start before the first entry that needs coverage and allow time for surety underwriting and CBP activation. A continuous bond cannot retroactively cover a shipment that arrived before its effective date.
Does a continuous bond cover ISF?
A continuous Activity Code 1 bond commonly supports Importer Security Filing obligations for ocean freight. Confirm the exact coverage and filing workflow with the broker or surety handling the entry.
Plan the bond and freight workflow together
ForwarderOne coordinates DDP freight, customs documentation, and final delivery for sellers importing from China to U.S. fulfillment centers.