US customs bond for China imports: single-entry vs continuous, costs, and who needs one

What a customs bond is

A customs bond is a contract between three parties: you (the importer, called the principal), a surety company (the bond provider), and CBP (the obligee). The bond guarantees that duties, taxes, and fees owed to CBP will be paid and that you will comply with customs law. If you fail to pay, the surety pays CBP up to the bond amount and then seeks reimbursement from you.

In practical terms, a customs bond protects the US government, not the importer. It is CBP's assurance that it will be paid even if an importer defaults. You pay a premium to the surety for that guarantee.

The bond does not pay your duties for you. You still owe the actual duty amount, which is set by your product's HS code and any tariffs that apply to goods of Chinese origin.

Who needs a customs bond

CBP requires a bond on formal customs entries. The line between informal and formal entry is $2,500: CBP's own rule text sets informal entry for merchandise valued at $2,500 or less (19 U.S.C. 1498) and formal entry above it (19 U.S.C. 1484). The bond requirement also reaches further than that one number:

• Any commercial import filed as a formal entry, which in practice means shipments valued at $2,500 or more.
• Goods regulated by another agency (FDA, CPSC, USDA, EPA, Fish and Wildlife) often need a formal entry and a bond regardless of value.
• Ocean shipments that need an Importer Security Filing (ISF). The ISF has to be covered by a bond: a continuous bond covers it, otherwise the filer buys a separate single-transaction ISF bond.
• Temporary importations under bond (TIB) and in-bond movements between ports.

One thing changed recently for low-value goods. Since CBP's interim final rule of 24 June 2026 (91 FR 37789), shipments valued at $800 or less arriving by air, ocean or truck must use formal or informal entry procedures; the old duty-free de minimis route is suspended indefinitely. Small shipments below $2,500 still usually clear on an informal entry without a bond, but they no longer skip customs altogether. The full sequence of rule changes is on our US import rules timeline.

Single-entry bond vs continuous bond

There are two types of customs bond for importers. Which one fits depends mainly on how often you import.

• Single-entry bond (also called a single transaction bond): covers one shipment only. It is commonly priced as a small percentage of the value of the goods plus duties and fees, with a minimum charge; for a typical small commercial shipment expect somewhere around $50 to $150. It suits importers who bring in one or two shipments a year, or who are testing a new product before committing to a regular program.
• Continuous bond (also called an annual bond): covers every entry at every US port for 12 months and renews automatically. The minimum bond amount CBP accepts is $50,000; for larger importers the amount is set at about 10% of the duties, taxes, and fees paid over the previous 12 months, with $50,000 as the floor. The annual premium is a fraction of a percent of that face value, commonly quoted in the range of roughly $200 to $500 a year for a $50,000 bond.

The break-even usually lands at 3 to 5 shipments a year. As a worked example: if single-entry bonds cost $75 each and a continuous bond costs $375 a year, the continuous bond pays for itself at the fifth shipment. If you plan to import regularly, a continuous bond from the start is usually the simpler and cheaper choice, and it also covers your ISF filings.

How a DDP forwarder handles the bond

If your shipment moves under DDP terms (Delivered Duty Paid), the customs bond is typically arranged by the forwarder or their licensed customs broker as part of the service. You do not need to buy or manage it separately.

The cost of the bond is usually built into the DDP quote. When comparing DDP quotes, the bond may be itemized or bundled, so ask the forwarder to confirm the quote includes bond coverage if it is not explicit. Also ask whose name the entry is filed under: on some bundled lanes the entry runs on the forwarder's or a partner's bond rather than yours.

If you are arranging customs separately from freight (FOB or EXW terms), you or your customs broker need to arrange the bond. Your broker will typically offer both single-entry and continuous options when they file your entry.

How to get a customs bond

Customs bonds are issued by surety companies authorized by the US Department of the Treasury. You rarely deal with the surety directly; bonds are bought through a licensed customs broker or a specialist bond agent.

• Through your customs broker: the most common route. For a continuous bond, the broker submits the application to a surety, and once it is approved the bond is filed electronically with CBP in ACE (the Automated Commercial Environment).
• Through a standalone bond agent: specialist surety agents issue customs bonds without a full brokerage relationship. This is useful if you want to hold your own continuous bond independently of any one broker.
• What you need to apply: your importer of record details (legal name, address, and EIN or other importer number), the bond type, and for a continuous bond an estimate of your annual import value and duty.

Timing: a continuous bond typically takes 1 to 3 business days to issue and file with CBP after approval. If an ocean shipment is about to load, the bond needs to be in place before the ISF is filed, which is at least 24 hours before your container is loaded in China.

For a DDP shipment with a forwarder that includes brokerage, you do not need to source a bond yourself. Confirm in writing before the shipment departs that the bond is covered.

What happens if a bond is not in place

Without a valid customs bond, CBP will not release a shipment that needs a formal entry. The broker cannot file the entry, the cargo stays in customs custody at the port, and storage charges start once the terminal's free time runs out. Free time at an ocean terminal is typically a few days after the container is available; after that, storage and demurrage commonly run from about $75 to $300 per day depending on the port.

This is one of the most common causes of unexpected costs for first-time importers: the goods arrive, the bond was not arranged in advance, and several days of port charges appear before the problem is resolved.

If you are caught without a bond on an arriving shipment, call your customs broker at once. Most brokers can obtain a single-entry bond quickly and file the entry the same day, which stops the charges before they grow. Better still, confirm before the shipment leaves China that the bond is arranged and that a licensed broker is filing the entry.

Customs bond vs cargo insurance

These two are often confused because both involve a third party and a financial guarantee. They do entirely different jobs:

• Customs bond: required by CBP. Guarantees that duties, taxes, and fees are paid to the US government. It does not protect your goods or your money.
• Cargo insurance: optional but strongly recommended. Bought by the importer to cover the value of the goods against loss or damage in transit. It has nothing to do with customs compliance.

You need both. The bond gets your shipment through customs; the insurance protects the value of what is inside.