What is a customs bond?

What a customs bond actually is

A customs bond is a financial guarantee - a three-party agreement between you (the importer), a surety company, and US Customs and Border Protection (CBP). It guarantees that all duties, taxes and fees on your imports will be paid and that you will comply with customs regulations. If you do not pay, CBP can claim against the bond, the surety covers it, and then pursues you.

It is not insurance for your cargo - that is cargo insurance - and it does not reduce what you owe. It simply guarantees CBP gets paid. Treat it as a condition of entry for commercial goods, not an optional extra.

Single-entry vs continuous bonds

There are two kinds, and choosing the right one saves money:

• Single Transaction Bond (STB) - covers one specific shipment. Best for one-off or very occasional imports. The bond amount is typically at least the value of the goods plus duties and taxes.
• Continuous bond - covers all your import entries at every US port for 12 months, and also satisfies the ISF bond requirement. The minimum amount is $50,000, set at roughly 10% of the duties, taxes and fees you expect to pay over the year.

As a rule of thumb, if you import more than a few times a year, a continuous bond is cheaper and far less hassle than buying a single bond per shipment.

When US importers need one

You generally need a customs bond when:

• You are importing commercial goods valued over $2,500, which require a formal entry.
• Your goods are regulated by another agency - FDA, USDA, CPSC and others - in which case a bond is required regardless of value.
• You need to file an ISF (Importer Security Filing) for ocean shipments to the US.

Crucially, since the US ended the $800 de minimis exemption in 2025, many low-value shipments that once cleared informally now require a formal entry - and therefore a bond. If you are importing from Asia, our China-to-USA guide shows where the bond fits in the process.

How much it costs and how to get one

You do not buy a bond directly from CBP - you get it through a surety company, almost always arranged by your customs broker or freight forwarder. A continuous bond commonly costs a few hundred dollars a year for the typical $50,000 bond; single-entry bonds are priced per shipment and can require separate ISF coverage, which is part of why they add up for frequent importers.

To set one up you will need your importer details (an EIN or CBP-assigned number), an estimate of your annual duties, and a completed application. A broker can usually have a continuous bond active within a few business days.

How Baobab arranges your bond

We coordinate the bond as part of clearing your shipment - working with licensed brokers and sureties to put the right bond (single or continuous) in place, file your ISF and customs entry, and calculate duty so it is all in your landed cost from the start. You import; we handle the compliance plumbing.