What does a customs bond actually do?
A customs bond is a financial guarantee to the United States that covered obligations—such as duties, taxes, fees, and compliance with conditions—will be met. It is not ordinary cargo insurance.
The four-step journey
Understand how single-transaction and continuous customs bonds secure obligations owed to CBP and why bond sufficiency matters.
- Entry activity creates an obligation
- A surety backs the bond
- CBP checks coverage and sufficiency
- Claims may follow if obligations are not met
What the broker checks
- Single transaction or continuous coverage
- Bond amount and activity type
- Importer identity, surety, and unresolved claims
Why it matters
The bond protects the government. The importer still owns the underlying obligation.
- Surety: The company guaranteeing performance under the bond.
Official sources
- 19 CFR Part 113 — CBP Bonds
- 19 CFR Part 141 — Entry of Merchandise
- CBP — Customs Broker License Examination