Your import bond is not just a formality or a good-looking paper to wave around showing your friends. It’s your license to operate, it’s your bond, shaken not stirred. Ok, maybe a few too many 007 references, but let’s clear some things up about CUSTOMS BONDS!
An import bond is not just a box you get to check off so your shipment can move.
A bond is not a boring insurance document. It’s not “something the broker handles”. It’s not a guy in a bar asking for a shaken-not-stirred martini. (sorry, I had to!)
And it’s not something you can ignore until CBP sends you a demand letter.
Your customs bond is your financial handshake with the U.S. Government.
And what if your customs bond is wrong?
Your cargo stops. 🛑
Your supply chain is halted. 🛑
Your raw materials don’t arrive in time to produce.
So what do you do to fix the issue?
Let’s break down what a customs bond really is first.
A customs bond is a contract between three parties:
- The Principal (The importer, that’s you!)
- The Surety (The company backing you financially)
- U.S. Customs and Border Protection
The bond guarantees that you as the importer will:
- Pay duties, taxes and fees
- Comply with customs regulations such as re-delivery, examination of goods, etc.
- Correct errors if they arise with your imports
- Make a complete Customs Entry
- Produce Documentation
- Respond to CBP demands timely (which in this case is within 15 days)
If you as the importer do not carry out the payment obligations, the surety pays CBP and then requests reimbursement from you. The payment is your financial liability if this occurs.
The Types of Import Bonds
There are two types of basic import bonds
1. Single Entry Bond or Single Transaction Bond
Best Used for –
-
- One-off shipment (you’re not planning to import again)
- Low volume importers (1-2 imports a year)
- Irregular imports
The single entry bond or single transaction bond covers one shipment only. This kind of bond is normally calculated based off of the duties, taxes and fees plus any additional amounts involved in the transaction such as FDA or USDA.
This kind of bond is good if you don’t import often, but it can get quite costly if you’re importing regularly using a single transaction bond for each shipment.
2. Continuous Bond
Best Used for-
-
- Ongoing imports
- Growing businesses
- Anyone importing more than 3-4 times a year
The bond covers all entries for the course of 12 months and is valid up to the total bond amount. The minimum bond that can be taken out for a continuous bond is $50,000, however, CBP requires the bond to equal at least 10% of total duties, taxes and fees paid in the previous 12 months.
If your imports increase and your bond doesn’t, that’s where the trouble starts!
3. Custodial Bond – used for bonded warehouses & operators
4. International Carrier Bond – For carriers moving goods in and out of the U.S.
There’s more than what I’ve listed, but let’s refocus on the first two bonds I’ve mentioned, Single Transaction Bond & Continuous bond.
What does an importer do if they’ve been notified of an insufficient bond?
CBP is monitoring duty payments and will notify an importer if their bond is insufficient. This is done by issuing a Formal Demand for Bond Sufficiency.
A what? Let’s translate what CBP is saying in the formal demand “your financial guarantee is no longer adequate.”
When a Formal Demand for Bond Sufficiency is issued and not rectified by the date CBP requests, bad things happen!
- Entries can be rejected
- Cargo can be held
- Brokers cannot transmit
So, what’s the main cause of a bond being deemed insufficient?
You might have read the recent article written by my colleague Shawna regarding the tariff rollercoaster! These tariff changes have also inundated U.S. Customs with an influx of bonds being considered insufficient.
In fact, CNBC reported in February U.S. Customs and Border Protection reported data that insufficient bonds reached a total of 27,479 in fiscal 2025, with the combined value soaring to almost $3.6 billion. It is the highest number of bond insufficiencies and the highest total value across insufficiencies ever recorded. It doubles the 2019 level when tariffs enacted by Trump under Section 301 of the Trade Act of 1974 also fueled bond shortfalls.”
Other common triggers for insufficient bonds are an increase in importing volumes- maybe you’ve sourced a new part from a different country instead of sourcing locally, ADD/CVD exposures, etc.
How to Resolve an Insufficient Bond
If you receive the notice from CBP that your bond is insufficient, a slow reaction will not payoff!
Your bond can be amended in a couple of ways:
1. Working with your Licensed Customs Broker (LCB) who holds a POA (Power of Attorney) for your business to increase your bond. The broker then contacts the Surety.
or
2. Contact your Surety directly.
Either way, there may be a separate fee to get the bond amended.
When you’re adjusting your bond amount, it needs to meet CBP’s 10% threshold or the amount specified on the demand letter.
Additionally, you want to ensure that your bond becomes effective by CBP’s demand date, if it occurs after, you may see disruptions with your imports due to not having an active bond on file!
Did you know you can also verify whether your bond was accepted and active with CBP in the ACE Portal? By using the “REV-001” report in the Revenue tab, importers can confirm if CBP shows the importer’s bond as active and if it’s sufficient. It’s best to never assume that your bond rider (the change you made) was accepted.
As an importer, what can you do to be proactive to avoid having an insufficient bond in the first place?
- Monitor your imports and the duty totals you’re paying annually, with quarterly reviews
- Forecast your tariff exposures; reassess when changes occur (ie- IEEPA Cancellations & Section 122 implemented)
- Review bond levels annually
- Understand how ACC/CVD may impact bond calculations
Let’s summarize this, your import bond is your financial backup to importing your merchandise into the United States. It’s your financial backing for the duties and taxes you’ll owe as an importer. If you don’t monitor your bond for your business fluctuations, you could be looking at a halt to your imports and your supply chain.
Need help resolving a bond issue? Unsure how to consolidate all your imports into one continuous bond or just want to review your past import volumes to confirm what your bond value should be? Export Solutions can help! Reach out for a no-charge consultation to see whether we’re the right fit for your business!
Michelle Brown is a Trade Compliance Consultant for Export Solutions -- a full-service consulting firm specializing in U.S. import and export regulations.