A Surety is a company — typically a specialized insurance carrier — that issues a customs bond, guaranteeing to CBP that the importer of record (the principal) will pay all duties, taxes, fees, and penalties associated with the importation. If the principal fails to pay, the surety steps in and pays CBP directly, then seeks reimbursement from the principal.
Customs bonds come in two main forms:
- Single Entry Bond (SEB) — Covers a single import transaction. The bond amount is typically equal to the value of the merchandise plus duties and fees (or 3x value for restricted-merchandise entries).
- Continuous Bond — Covers all entries by an importer over a 12-month period. The minimum continuous bond amount is the greater of $50,000 or 10% of duties, taxes, and fees paid during the prior 12 months, rounded up.
Sureties on customs bonds must be authorized by the U.S. Treasury Department and listed on Treasury Circular 570 ("the Treasury List"). The list is updated annually and is the definitive source for acceptable sureties.
Sureties play a gatekeeping role in U.S. import compliance:
- They underwrite each principal's creditworthiness before issuing a bond
- They monitor the principal's CBP activity and may require collateral or terminate the bond for problematic accounts
- They are the party of last resort for CBP when an importer goes bankrupt or otherwise fails to pay duties — making them especially conservative about underwriting importers with significant Section 301 or antidumping exposure