What is a Customs Bond and do I need it?
A Customs Bond is an insurance policy that guarantees payment to U.S. Customs and Border Protection of all duties, taxes and fees due on an import shipment. All import entries valued at $2500 or more must be accompanied by a bond that sufficiently covers potential duties, taxes, and fees that may accrue.
There are two main types of importer bonds, also known as C1 bonds:
- Single Entry Bond
- Continuous (Annual) Bond
A Single Entry Bond only covers one entry and the amount is determined by the value of the merchandise plus the duties, taxes, and other fees. If you are importing an ocean shipment and you do not have a continuous bond on file, you are required to have an Importer Security Filing (ISF) bond filed regardless of the value.
A Continuous Bond (also known as an Annual Bond) is 10% of duties, taxes and fees paid to Customs in a 12 month period. The minimum amount is $50,000. A Continuous Bond also fulfills an importer’s obligations to have an Importer Security Filing (ISF) bond on file.
Customs Bond Pricing
C J offers our Clients the convenience of pre-paying for continuous bonds up to three years. The two and three year options provide a discount to the cost of the bond per year. The below rates are ONLY valid for a $50,000, C1 importer bond with no anti-dumping or countervailing entries.
1 year; $50,000 = $265.00
2 year; $50,000 (pre-paid) = $490.00 ($245.00 per year)
3 year; $50,000 (pre-paid) = $700.00 ($233.33 per year)
Please note, we also ask for a one-time Bond Application Fee of $90.
Apply for a Customs Bond
If you need to apply for a bond, get in touch with our team directly by phone, email, or contact form — if you’re applying for a continuous bond, get a jumpstart by also filling out the application form (as well as a Power of Attorney) here.
Why do you need to fill out a Power of Attorney? The Power of Attorney is a document that authorizes a licensed Customs broker to act as agent for the owner or purchaser of imported products. C J cannot legally act on your behalf as your Customs Broker without a valid Power of Attorney.
Even if you are not a current C J Client, we would be happy to discuss bond limits within the CBP guidelines and help you determine the best choice for your situation.