TRG is the direct source for your U.S. Customs Bond
We like to do things differently. TRG has worked with thousands of clients, setting up customs bonds for 1, 2, 3 and 5 years at a time. Forget about your bond for as long as you'd like. And, because we have a vested interest in your success, we'll handle the details and be here to support you if the need arises.
Flexible Multi-Year Billing Cycles
Pay for YOUR bond on YOUR terms. Choose smaller payments and pay annually or save big and pay up to five years upfront. We give you the option to choose. If you need to cancel or change your bond size later, our refund policy has you covered!
Claims & Customer Support
Receiving a penalty notice from CBP can be STRESSFUL, but you don't need to go it alone. We staff licensed Customs Brokers trained to assist with even the most difficult claim.
Liquidation & Sufficiency Monitoring
We know that keeping track of your bond sufficiency and liquidation status is the last thing you're thinking about. Enjoy the piece of mind that with us you can check your status online in minutes.
Rider & Confidentiality Assistance
We NEVER charge for updating your bond with a new name or address. We use the latest technology to file any changes accurately and electronically. Worried about your competition? We can assist you with filing manifest confidentiality.
What is a U.S. Customs Bond?
A U.S. Customs bond is a financial guaranty between the Principal (a U.S. importer or shipper), the Surety issuing the bond, and U.S. Customs & Border Protection (CBP). The Customs bond guarantees that any money owed to U.S. Customs & Border Protection by the Principal will be paid. Having a U.S. Customs bond on file is required to import into the United States.
If CBP is unable to collect monies due from the Principal they can seek remedy, up to the bond amount, from the Surety company that issued the bond. The U.S. Customs bond also indemnifies the Surety company, allowing them to use any legal means to collect from the Principal any monies that were paid to CBP on the Principal’s behalf.
Types of U.S. Customs bonds
There are many types of bonds required by U.S. Customs & Border Protection (CBP) for various reasons. While TRG has the experience and expertise to provide every type of U.S. Customs bonds, the following are the most common types issued:
- Activity Code 1 - Import Bond
- Activity Code 1a - Drawback Payment Refunds Bond
- Activity Code 2 - Custodian of Bonded Merchandise Bond
- Activity Code 3 - International Carrier Bond
- Activity Code 3a - Instruments of International Traffic
- Activity Code 4 - Foreign Trade Zone Bond
- Activity Code 11 - Airport Security Bond
- Activity Code 16 - Importer Security Filing Bond
Out of all the types of U.S. Customs bonds, the most common are Activity Code 1 - Import Bonds. These are so common that they are typically referred to as just a "U.S. Customs bond" despite there being many types of Customs bonds. This is due to the fact that CBP requires that all importers have a Customs import bond on file in order to import into the United States. An importer may file a “Single Entry” import bond or a “Continuous” import bond depending on their import frequency.
About TRG Bond
TRG is the world's largest client-direct supplier of U.S. Customs Bonds and Cargo Insurance. Over 13,000 global clients take advantage of TRG's focus on education and affordability to revolutionize their trade practices and break free of outdated traditions.
Through a rare combination of innovation and expertise, TRG has redefined how companies who partake in international trade purchase their insurance. TRG is known for unprecedented pricing, exceptional assistance, and remarkable results.
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Discover our Multi-Year Pricing Structure and how you can save money on your Customs bond.
Activity Code 1 - Import Bond
What is an Import Bond?
A Customs Import Bond is a financial guaranty between the Insurance/Surety Company issuing the Customs bond, the Importer of Record (also known as the Principal on the bond), and Customs & Border Protection (CBP). The import bond guarantees that CBP can collect all of the duties, taxes, fines, or penalties associated with importing into the United States. If the importer is not able to pay these amounts when they are dues, CBP will be able to collect payment from the Insurance/Surety Company that issued the bond.
Most Customs bonds filed are Activity Code 1 – Import Bonds since this is the standard bond for importing. CBP requires all importers to file an Import Bond in order to clear their entries, even if the goods are duty-free.
How is my Import Bond used?
An Import Bond can be used by any Customs Broker or Freight Forwarder you choose to clear your entries and is valid at any U.S. port. When a bond is placed, CBP issues it a unique bond number tying the bond to the company’s Importer Number (aka Tax ID). The Customs Broker or Freight Forwarder then files the import documents providing the bond number upon entry. Regardless of where the bond is purchased, it remains a policy of the surety and there is no ownership of this bond by a third party. An Importer may only have one continuous Import Bond on file with CBP at a time.
How to Calculate an Import Bond Amount
The Import bond amount is calculated based on the amount of duties and fees associated with the imported goods.
In most cases, the amount of the bond must be at least 10% of the total duties and taxes paid to CBP annually at a minimum of $50,000.
The typical Import bond amount is $50,000. This means that the duties, taxes, fines, and penalties the Insurance/Surety Company will cover within each 1-year bond term is $50,000. If you currently require a bond for an amount greater than $50,000, make sure you are aware of the details that could affect the price of larger bond.
| Total Duties & Taxes | Bond Size |
|---|---|
| $0 - $499,999 | $50,000 |
| $500,000 to $599,999 | $60,000 |
| $600,000 to $699,999 | $70,000 |
| $700,000 to $799,999 | $80,000 |
| $800,000 to $899,999 | $90,000 |
| $900,000 to $999,999 | $100,000 |
| $1,000,000 to $1,999,999 | $200,000 |
| $2,000,000 to $2,999,999 | $300,000 |
| $3,000,000 to $3,999,999 | $400,000 |
| $4,000,000 to $4,999,999 | $500,000 |
| $5,000,000 to $5,999,999 | $600,000 |
| $6,000,000 to $6,999,999 | $700,000 |
| $7,000,000 to $7,999,999 | $800,000 |
| $8,000,000 to $8,999,999 | $900,000 |
| $9,000,000 to $9,999,999 | $1,000,000 |
TRG Underwriting Requirements for an Import Bond
- Fully complete bond application form
- Completed power-of-attorney form
Activity Code 1a – Drawback Payment Refunds Bond
What is a Drawback Bond?
This type of Customs bond allows an importer to obtain a refund of 99% of the duties paid on imported goods upon providing proof these goods were exported back out of the United States
How to Calculate a Drawback Bond Amount
The bond amount for a Drawback Bond is the average of all estimated drawback claims in a 12 month period.
As with all Customs bonds, should your bond amount be inadequate according to Customs regulations, Customs will advise the importer and the surety company to increase the bond amount, and they will give a reasonable amount of time to do so.
TRG Underwriting Requirements for a Drawback Bond
- Fully complete bond application form
- Completed Power-of-attorney form
- The most recent company financial statements
Activity Code 2 – Custodian Bond
What is a Custodian Bond?
A Custodian bond covers the activities of bonded merchandise warehouses, carriers, cartmen, and container stations. All of these business types are responsible, in the course of their work, for merchandise which has not yet been officially “entered” into the commerce of the United States, and for which duties are still due. Such goods are referred to as being “in-bond”.
How to Calculate a Custodian Bond Amount
The proper bond amount for a custodian bond is determined by the District Director of Customs, depending on average loads and types of commodities to be in care of the bondholder. The minimum Activity Code 2 bond amount accepted by Customs is $50,000.
As with all Customs bonds, should your bond amount be inadequate according to Customs regulations, Customs will advise the importer and the surety company to increase the bond amount, and they will give a reasonable amount of time to do so.
TRG Underwriting Requirements for a Custodian Bond
- Fully complete bond application form
- Completed Power-of-attorney form
- The most recent company financial statements
- More documentation is required for First Time Activity Code 2 Bond Applicants
Activity Code 3 – International Carrier Bond
What is an International Carrier Bond?
An international carrier bond ensures operators properly manifest all goods and passengers they carry, pay for the overtime services of Customs officers and comply with all regulations related to the clearance of their vehicles.
How to Calculate an International Carrier Bond Amount
Activity 3 - International Carrier - Continuous: When the bond is to secure activities, including requested overtime services, related to the entry or clearance of vessels, vehicles, or aircraft which arrive directly or indirectly from any place outside the customs territory of the United States, the bond limit of liability amount shall be fixed in an amount the district director may deem necessary to accomplish the purpose for which the bond is given, but not less than $25,000. In addition, the district director has full responsibility for setting bond limits at higher amounts, up to $250,000 as deemed necessary, for carriers with past narcotics violations and/or those originating from high-risk drug areas.
As with all Customs bonds, should your bond amount be inadequate according to Customs regulations, Customs will advise the importer and the surety company to increase the bond amount, and they will give a reasonable amount of time to do so.
TRG Underwriting Requirements International Carrier Bond
- Fully completed bond application form
- Completed Power-of-attorney form
- Completed Customs Activity Code 3 bond application form
- Completed TRG C3 Bondholder Questionnaire
- The most recent company financial statements
- More documentation is required for First Time Activity Code 3 Bond Applicants
Activity Code 4 – Foreign Trade Zone Bond (FTZ Bond)
What is an FTZ Bond?
A Foreign Trade Zone is considered non-U.S. territory for Customs’ purposes and foreign goods placed into the FTZ may be manufactured, manipulated, repacked, or exported without paying duties. The continuous FTZ bond has been amended to secure Importer Security Filing.
TRG Underwriting Requirements for an FTZ Bond
FTZ bonds are strictly underwritten but are available to Trade Risk Guaranty if strong financial statements or an irrevocable letter of credit (I.L.O.C.) are supplied.
Activity Code 11 - Airport Security Bond (ASB)
What is an Airport Security Bond?
An Airport Security Bond (ASB) is a U.S. Customs bond needed for out sourced service companies to enter secured areas of airports (like cleaning services not employed by the airlines to clean planes or maintenance individuals not employed by the airlines to fix something).
Airport Security Bonds also apply to the employees of any business that operates beyond the security checkpoint within the airport. For example; restaurants, gift shops, bookstores, etc.
Airport Security Bond Size Requirements
The minimum size of an Airport Security Bond is $10,000. This is usually based on a calculation of $1000 per employee with Customs security area access. This amount may be adjusted at the discretion Port Director of the International Airport where the bond is filed.
Who Needs an Airport Security Bond?
Common companies requiring Airport Security Bonds include:
- Service Companies
- Restaurants
- Coffee Shops
- Vending Machine Operators
- Independent Retail Stores
- Custodial/Janitorial/Housekeeping firms
- Construction Companies
- General Contractors
- Sub-contractors
- Excavation Contractors
- Professionals
- Architects
- Engineers
Why Choose TRG for Your Airport Security Bond?
Since 1991, Trade Risk Guaranty has been working directly with contractors, construction, service, and maintenance companies to provide competitive pricing and peak client experience for their Airport Security Bonds. Our long relationships with top-rated sureties and industry expertise give us the ability to write the bonds that others simply cannot.