Every conveyance arriving in the United States from outside its customs territory arrives under a bond. Activity Code 3 is posted by the operator of the vessel, aircraft, truck or train and guarantees proper manifesting of cargo and crew, payment for overtime services rendered by CBP officers, compliance with advance manifest requirements, and every other CBP regulation attached to clearing the conveyance.
The conditions are codified at 19 CFR § 113.64 (international carrier bond conditions). Non-vessel-operating common carriers (NVOCCs) with advance manifest obligations post this bond as well.
Who must post it
- Ocean carriers and vessel operators.
- Air carriers and operators of commercial aircraft.
- Trucking companies and rail operators crossing land borders with international cargo.
- NVOCCs filing advance manifests in their own name.
What the bond guarantees
- Accurate and timely cargo and crew manifests, including advance electronic manifest filings.
- Payment of CBP overtime and reimbursable-services charges.
- Compliance with conveyance clearance, unlading and in-bond diversion rules.
- Payment of liquidated damages assessed for manifest discrepancies and unmanifested cargo.
How CBP sizes it
- Minimums vary by conveyance class; vessels, aircraft and land carriers each have their own schedule under CBP's bond-amount guide.
- Continuous bonds are the norm for scheduled carriers; a single transaction bond suits a one-time voyage or charter.
Practitioner notes
- Activity Code 3A (instruments of international traffic) is the one code CBP allows to be checked jointly with Activity Code 3 on Form 301. Carriers that own or lease containers usually file the combined bond.
- Manifest discrepancy claims are formulaic and frequent; the surety's value is in reviewing and mitigating them before payment.
Frequently asked questions
Does a trucking company crossing from Mexico or Canada need this bond?
Yes. Any carrier arriving with international cargo needs an Activity Code 3 bond on file, regardless of mode.
Can the carrier bond and the container bond be combined?
Yes. Activity Codes 3 and 3A may be filed together on one Form 301.
What triggers a claim on a carrier bond?
Most claims are liquidated damages for manifest errors, unmanifested cargo, or failure to pay overtime services.
Primary sources
