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What Is The Difference Between A Bonded And Non-Bonded U.S. Highway Carrier (DIY Customs Consulting)

Last updated 5 August 2026

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This article is part of the Customs Compliance Guide
A CBP Form 301 Customs Bond Application

The main difference between a non-bonded and bonded U.S. highway carrier is where U.S.-bound shipments can be released and whether the carrier can move goods in-bond. A non-bonded carrier normally handles shipments that are released at the first U.S. port of entry, while a bonded carrier can move freight through or across the United States while duties, taxes, or fees remain secured by a customs bond for that part of the transportation.

A customs bond is a contract used to secure compliance with CBP requirements and payment of duties, taxes, charges, penalties, and other amounts owed to the U.S. government. CBP describes Form 301 as the customs bond form used to ensure that duties, taxes, charges, penalties, and reimbursable expenses owed to the government for imported goods are paid.[1]

Video Tutorial

What are the Differences Between a Bonded and Non-Bonded Highway Carrier?

What a Bonded Carrier Can Do

A bonded U.S. highway carrier can use customs procedures that are not normally available to non-bonded carriers, including:

  • Transiting through the United States, such as using the U.S. as a corridor for a Canada-to-U.S.-to-Canada movement.
  • Moving uncleared goods inland to a CBP port, bonded warehouse, or other authorized location for final clearance.
  • Moving goods under an ACE in-bond movement when authorized and properly reported.
  • Supporting operations that may be used with trusted-trader programs such as Customs Trade Partnership Against Terrorism (CTPAT) and Free and Secure Trade (FAST), where the carrier meets the program requirements.

For in-bond movements, CBP regulations require the carrier to report arrival and export events within specified timeframes and to comply with in-bond control requirements.[2]

Customs Bonds

To operate as a bonded carrier, the carrier must provide financial security to U.S. Customs and Border Protection (CBP). CBP Form 301 is the official customs bond form used for customs bond obligations.[1]

For recurring bonded-carrier activity, a continuous bond is normally used. A continuous bond can cover multiple transactions during the bond period, while a single transaction bond applies to a specific transaction.[1]

Highway carriers should work with a U.S. Treasury-approved surety company, insurance broker, customs broker, or other qualified advisor to determine the correct bond type, activity code, and amount for their operation. CBP's continuous bond instructions state that a bond filing packet generally includes the completed CBP Form 301, any required Form 301A addendum, a completed bond application, CBP Form 5106 if applicable, and other supporting documents such as partnership papers, power of attorney, or reinsurance documentation.[3]

CBP Form 301

CBP Form 301 is used for several customs bond activities, including importer, carrier, custodian, international carrier, and other bond activity types. The activity code and bond conditions determine what obligations the bond covers.

For a highway carrier, the applicant should confirm with the surety or customs advisor which activity code applies and whether any addendum is required. CBP's bond instructions state that continuous bonds are filed with CBP's Revenue Division Bond Team and that the bond application must include information such as the name and CBP identification number of parties to the bond, general character of merchandise, estimated duties, taxes, and fees, and a certification statement.[3]

Single Entry Bonds

Because a non-bonded carrier normally cannot move uncleared commercial goods inland or in-bond, a Single Entry Bond or Single Transaction Bond may be used in limited situations where a specific movement must be secured by a bond.

Single Entry Bonds can often be arranged through a customs broker or surety. Carriers should confirm the process with the broker, surety, or CBP port before accepting freight that must move in-bond.

Usage in BorderConnect

In BorderConnect ACE eManifest software, bonded status matters when the carrier files shipment types that involve uncleared goods moving under bond. For example, an ACE in-bond shipment requires in-bond details such as the in-bond type, bonded carrier information, destination port or bonded facility details, and a bond-enabled carrier setup.

BorderConnect can be used to create and transmit ACE eManifests with in-bond shipment information and to generate supporting documents such as a CBP Form 7512 when applicable. BorderConnect's ACE in-bond tutorial describes creating an ACE eManifest with in-bond information, assigning in-bond details, printing CBP Form 7512, and submitting the ACE eManifest to CBP.[4]

BorderConnect does not issue customs bonds, approve bonded-carrier status, or replace the surety and CBP bond process. The carrier must have the required CBP bond and authorization in place before using BorderConnect to transmit bonded or in-bond movements.

Common Mistakes

  • Accepting an in-bond load before confirming that the carrier has the correct U.S. bond.
  • Assuming an ACE eManifest service provider can make a carrier bonded.
  • Using a non-bonded carrier for freight that must move inland uncleared.
  • Filing a PAPS shipment when the shipment should be reported as an ACE in-bond movement.
  • Forgetting to report in-bond arrival, export, or other required status events.
  • Letting a continuous bond expire or lapse.
  • Entering the wrong bonded carrier, destination port, or in-bond number on the ACE eManifest.

References

  1. ↑ 1.0 1.1 1.2 CBP - CBP Form 301 Customs Bond
  2. ↑ 19 CFR 18.1 - In-bond application and entry; general rules
  3. ↑ 3.0 3.1 CBP - General Instructions for Filing CBP Continuous Bonds
  4. ↑ BorderConnect - How to Create an ACE eManifest with an ACE In-Bond
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