Do you need a customs bond to import from China?

What a customs bond is

A customs bond is a financial guarantee between three parties: you (the importer), a surety company, and US Customs and Border Protection. The bond guarantees that duties, taxes, and fees owed to CBP will be paid. If you fail to pay, the surety company is liable.

CBP requires a bond on all formal customs entries, which is any commercial shipment valued at $2,500 or more. Below $2,500, an informal entry (no bond required) is typically used instead.

The bond does not pay your duties for you. It is a guarantee that they will be paid. You still owe the actual duty amount, which is set by your product's HS code and any applicable tariffs.

Single-entry bond vs continuous bond

There are two types of customs bond for importers:

• Single-entry bond: covers one shipment only. Cost is typically 0.5% to 1% of the total value of goods plus duties and fees, with a minimum of around $50 to $75. Used when you import infrequently.
• Continuous bond: covers all shipments for one year. The minimum bond amount is $50,000, and the annual premium is typically 0.4% to 0.5% of that face value, so roughly $200 to $250 per year. Used when you import more than a few times per year, as it quickly becomes cheaper than buying a single-entry bond each time.

The breakeven is roughly 3 to 4 shipments per year. If you import more often than that, a continuous bond almost always costs less in total.

How a DDP forwarder handles the bond

If your shipment is moving 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 purchase or manage it separately.

The cost of the bond is usually built into the DDP quote. When comparing DDP quotes, the bond cost may be itemized or bundled, so ask the forwarder to confirm the quote includes customs bond coverage if it is not explicit.

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

What happens if a bond is not in place

Without a customs bond, CBP will not release a shipment requiring a formal entry. The goods stay at the port, and storage fees (demurrage and detention) start immediately. These can run $100 to $300 per day or more, and they accumulate until the bond is in place and the entry is filed.

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 storage fees appear before the problem is resolved.

If you are using a DDP forwarder who handles customs, confirm before the shipment departs China that the bond is included and that a licensed broker is filing the entry. Do not wait until the goods arrive at the US port to ask.

How to get a customs bond

If you need to arrange a bond yourself, licensed customs brokers and surety companies issue them. Your freight forwarder can usually refer you to one, or your broker can arrange it when they file the entry.

For a DDP shipment with a forwarder that includes brokerage, you do not need to source a bond separately. The forwarder's broker holds the continuous bond that covers your entry. Confirm this in writing before the shipment departs.