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ACTIVITY CODE 10

Court Costs for Condemned Goods Bond

When CBP seizes merchandise and the owner elects to contest the seizure in court rather than through administrative petition, the claimant must post a bond covering the court costs and related expenses the United States may incur in prosecuting the forfeiture. That is the Activity Code 10 bond.

When CBP seizes merchandise and the owner elects to contest the seizure in court rather than through administrative petition, the claimant must post a bond covering the court costs and related expenses the United States may incur in prosecuting the forfeiture. That is the Activity Code 10 bond.

The condition is at 19 CFR § 113.72 (bond condition to pay court costs). The bond references the specific seizure number.

Who must post it

  • Owners and interested parties contesting a CBP seizure through judicial forfeiture proceedings.

What the bond guarantees

  • Payment of court costs and related expenses of the United States if the forfeiture is sustained.

How CBP sizes it

  • Single transaction only.
  • The amount is set by CBP or the court for the particular seizure.

Practitioner notes

  • The bond is a procedural prerequisite; without it, the claimant cannot force the matter into court.
  • Seizure counsel and the surety should coordinate on timing, because the election window is short.

Frequently asked questions

Do I need this bond to petition CBP administratively?

No. It is required only when you elect judicial forfeiture proceedings.

Can it be continuous?

No. Single transaction only, referencing the seizure number.

What does it cover?

The government's court costs and related expenses if the seizure is upheld.

Primary sources

Poindexter fleur de lis

About the author

Written by C. Constantin Poindexter, JD, CPCU, AFSB, ARe, ASLI — founder of Surety One, Inc. and CEO of Janus Assurance Re. He has underwritten surety and reinsurance for more than thirty years and is the author of A Practitioner's Guide to U.S. Customs Bonds, on which these pages are based.