Two filing bases, one form
Every customs bond CBP accepts on Form 301 is filed on one of two bases. A continuous bond is a self-renewing instrument covering all qualifying transactions through every port of entry for a year, until terminated. A single transaction bond (STB) covers exactly one customs transaction — one entry, one in-bond movement, one sample release, one seizure — and expires when that transaction is liquidated and every obligation is satisfied.
Some activity codes exist only in one form. Custodial bonds (Activity Code 2), FTZ operator bonds (4), gauger bonds (5), airport security bonds (11) and marine terminal operator bonds (17) are continuous only. Labeling (6), bill of lading (7), copyright detention (8), neutrality (9), court costs (10) and ITC exclusion (12) bonds are single transaction only. Importer (1), drawback (1A), carrier (3 and 3A), IPR sample (15) and ISF (16) bonds come either way.
Side-by-side
| Continuous bond | Single transaction bond | |
|---|---|---|
| Covers | All entries, all ports, 12 months, self-renewing | One transaction at one port |
| Typical user | Importers with recurring shipments, brokers, warehouses, carriers, FTZs | First-time or occasional importers, one-off movements |
| Sizing (Activity Code 1) | 10% of prior-year duties, taxes and fees; $50,000 minimum | Entered value plus duties, taxes and fees; 3× entered value for PGA merchandise |
| ISF coverage | Included for the importer of record | Separate single transaction ISF bond required |
| Renewal | Annual premium; bond stays in force until terminated | None; expires on liquidation |
| Break-even | Usually cheaper after 3–4 entries per year | Cheaper for a genuine one-off |
When the continuous bond wins
- You import more than three or four times a year.
- You enter at more than one port.
- Your cargo is ocean-borne and subject to ISF, because the continuous importer bond covers ISF and the STB does not.
- Your merchandise is PGA-regulated, where STBs are sized at three times entered value and become expensive quickly.
- You want one instrument your broker can reference on every entry without a new bond each time.
When the single transaction bond wins
- A first shipment while the company decides whether importing will continue.
- A sample run, a trade-show shipment or an infrequent capital-equipment purchase.
- A transaction that CBP only permits under a single transaction bond, such as an ITC exclusion entry or a court-costs bond.
- A shipment whose value is so large relative to your normal activity that a continuous bond would have to be resized to absorb it.
The sizing trap
The continuous bond is sized to a year of duties; the single transaction bond is sized to one shipment's value. Importers with a small duty history but occasional high-value shipments sometimes find that one container exceeds the penal sum of their continuous bond. CBP will not accept the entry on an insufficient bond. The cure is either a rider increasing the continuous bond or an STB for that shipment; which is cheaper depends on how often it will recur.
Frequently asked questions
Can I switch from single transaction bonds to a continuous bond mid-year?
Yes. A continuous bond becomes effective on the date stated on its face and covers entries from that date forward. Earlier STB-covered entries remain under their own bonds.
Does a continuous bond cover every port automatically?
Yes. One continuous bond is valid at every U.S. port of entry.
What is the minimum continuous importer bond?
$50,000, the CBP statutory floor for Activity Code 1.
