An Entry Bond — commonly called a customs bond — is a surety bond required by CBP for any formal entry of merchandise into the United States. The bond guarantees that the importer of record will pay all duties, taxes, fees, and penalties owed to the government, and will comply with all applicable trade regulations.
There are two main types of CBP bonds:
- Single Entry Bond (SEB) — Covers one specific entry. The bond amount is generally the value of the merchandise plus all estimated duties, taxes, and fees, with a minimum of $100. For goods regulated by other government agencies (FDA, USDA, EPA, etc.), the SEB is typically three times the entered value. Used for one-off importers, sample shipments, and entries above the importer's continuous bond limit.
- Continuous Bond — A 12-month rolling bond covering all entries by an importer. The minimum bond amount is $50,000 or 10% of the total duties, taxes, and fees paid in the preceding 12 months, whichever is greater. CBP can require larger amounts based on risk profile. Active importers almost always use continuous bonds — they are cheaper per entry and avoid the administrative burden of issuing a new SEB for every shipment.
The three parties on a customs bond:
- Principal — the importer of record
- Surety — the company issuing the bond (e.g., Roanoke, Avalon, Great American)
- Beneficiary — CBP
If the importer fails to pay duties or comply with regulations, CBP makes a claim against the surety, who then collects from the importer. Bond claims affect future bond pricing and availability.
CBP can issue a Notice to Increase Bond Sufficiency when an importer's activity outgrows their continuous bond — a common trigger when Section 301 tariffs landed on existing China importers in 2018–2019.