Activity Code 1 is the customs bond most people mean when they say "customs bond." It is posted by the importer of record, or by a licensed customs broker on the importer's behalf, and it guarantees to U.S. Customs and Border Protection that duties, taxes and fees will be paid and that every law and regulation governing the entry of merchandise will be honored. Without it on file, CBP will not release commercial cargo.
The bond conditions are codified at 19 CFR § 113.62, the "basic importation and entry bond conditions." They cover the agreement to pay duties, taxes and charges; to make or complete entry; to produce documents and evidence; to redeliver merchandise on CBP demand; to rectify non-compliance with admissibility provisions; and to comply with all Partner Government Agency requirements attached to the goods.
Who must post it
- Importers of record bringing commercial merchandise valued above the formal-entry threshold ($2,500) into U.S. commerce.
- Importers of any merchandise, regardless of value, that is regulated by a Partner Government Agency such as FDA, USDA, EPA, DOT, FCC, ATF or CPSC.
- Licensed customs brokers, who may post their own Activity Code 1 bond and may execute an importer's bond as attorney-in-fact.
- Any party CBP identifies as responsible for entry obligations, including consignees acting as importer of record.
What the bond guarantees
- Payment of all duties, taxes, fees and any liquidated damages assessed on covered entries.
- Timely completion of entry and production of invoices, packing lists and other required documents.
- Redelivery of merchandise to CBP custody when CBP demands it — for example, after a failed admissibility review.
- Compliance with Importer Security Filing (ISF / 10+2) requirements on ocean cargo, which the continuous Activity Code 1 bond absorbs.
How CBP sizes it
- Continuous: ten percent of the duties, taxes and fees paid to CBP in the prior twelve months, rounded up to the next $10,000 (below $1 million in duties) or the next $100,000 (at or above $1 million), subject to a $50,000 statutory minimum. The bond must also be large enough to cover the duty exposure on any single shipment.
- Single transaction: the entered value of the merchandise plus all duties, taxes and fees. Where the merchandise is subject to PGA requirements, CBP generally requires three times the entered value. Quota-class, antidumping and countervailing-duty merchandise carry their own rules.
- CBP publishes its methodology in A Guide for the Public: How CBP Sets Bond Amounts, and reviews continuous bonds for sufficiency on a rolling basis.
Practitioner notes
- A continuous Activity Code 1 bond satisfies the ISF bonding obligation on ocean cargo, so an importer of record does not separately need an Activity Code 16 bond.
- Importers whose duty history shifted during the 2024–2025 tariff actions, and again after the Supreme Court's February 2026 decision in Learning Resources, Inc. v. Trump, should expect CBP to revisit sufficiency. Renewal is the natural moment to resize before an insufficiency notice forces the issue.
- Importers that physically move their own bonded merchandise between facilities need an Activity Code 2 custodial bond in addition to Activity Code 1.
- Standard programs are underwritten on financial strength, claims history, ownership credit and time in business. Importers who fall outside those parameters are placed in our non-standard program, usually with collateral, and the bond remains fully CBP-acceptable.
Frequently asked questions
Do I need a customs bond for every import?
For commercial merchandise valued above $2,500, or any merchandise subject to a Partner Government Agency requirement, yes. Informal and personal entries below that threshold generally do not require a bond.
Does the Activity Code 1 bond cover ISF?
Yes. A continuous Activity Code 1 bond incorporates Importer Security Filing coverage for the importer of record. Standalone Activity Code 16 bonds are used mainly by parties that are not the importer of record.
How fast can an Activity Code 1 bond be filed with CBP?
Clean standard files typically move from application to bond-on-file at CBP within one to three business days. The bond is transmitted electronically by the surety.
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