Activity Code 2 is a single omnibus continuous bond covering every class of party that holds merchandise before it has been cleared into U.S. commerce. Bonded warehousemen of every class, domestic carriers moving goods in-bond between ports, cartmen and lightermen handling bonded cargo within a port, container freight station operators and centralized examination station operators all post it.
What unites these classes is a common obligation: safe custody of merchandise that CBP has not yet released, and full accounting for it when CBP asks. The conditions are codified at 19 CFR § 113.63 (basic custodial bond conditions).
Who must post it
- Bonded warehouse proprietors, Class 1 through Class 11.
- Bonded carriers performing in-bond movements (IT, T&E, IE) between U.S. ports.
- Cartmen and lightermen licensed to move bonded merchandise within a port of entry.
- Container freight station (CFS) and centralized examination station (CES) operators.
- Importers that transport their own bonded merchandise between facilities.
What the bond guarantees
- Receipt, custody, safekeeping and accounting for bonded merchandise until CBP releases it.
- Timely delivery of in-bond shipments to the destination port and proper reporting of arrival.
- Payment of duties, taxes and liquidated damages on merchandise that is lost, stolen, delivered without authorization or otherwise unaccounted for.
How CBP sizes it
- Continuous only; CBP does not accept a single transaction custodial bond.
- $25,000 minimum, sized upward according to the value of merchandise typically in custody and the sizing rules in CBP's bond-amount guide.
- Multi-facility operators are generally sized on aggregate inventory exposure rather than a single site.
Practitioner notes
- One Activity Code 2 bond can cover several custodial roles — a warehouse that also operates as a CFS does not need two bonds.
- Unaccounted-for in-bond movements are among the most common sources of liquidated damages claims. Disciplined arrival reporting protects the bond.
- Importers often discover they need this bond only when they begin trucking their own bonded goods; it is separate from and additional to Activity Code 1.
Frequently asked questions
Is there a single transaction custodial bond?
No. Activity Code 2 is available only as a continuous bond.
Does a bonded warehouse need a separate bond for each class?
No. One Activity Code 2 bond covers the proprietor's custodial obligations across classes and related custodial activities.
What is the minimum Activity Code 2 bond?
$25,000. CBP sizes upward from there based on merchandise exposure.
Primary sources
