Surety Bond

🔖 This article is part of the Customs Glossary Guide

Customs Surety Bonds Explained (Form 301)

The financial guarantee that allows carriers to move freight inland without paying duties at the border.

CBP Form 301 Financial Security In-Bond Movement

What is a Customs Bond?

A Customs Surety Bond (CBP Form 301) is a contract used to guarantee that a specific obligation will be fulfilled. It is essentially an insurance policy that protects the U.S. government against lost revenue.

For carriers, this bond guarantees that if they are allowed to move freight inland (in-bond) without paying duties at the first port of arrival, they will not let that freight disappear into U.S. commerce illegally. If the freight goes missing, the Surety company pays CBP, and then comes after the carrier for reimbursement.

Clarification:

• Bonded Carrier: A status granted by CBP allowing you to transport in-bond goods.
• Surety Bond: The physical/digital document (Form 301) that provides the financial backing required to get that status.

Types of Bonds

While there are many activity codes for bonds, carriers and importers typically deal with two main structures: Continuous and Single Transaction.

Bond Type	Best For...	Details
Continuous Bond (Activity Code 1, 2, or 3)	Carriers & Frequent Importers	Covers all transactions at all U.S. ports for one year. It renews automatically until cancelled. This is the standard required for "Bonded Carrier" status.
Single Transaction Bond (STB)	One-off Shipments	Covers only a single shipment at a specific port. Once the shipment is cleared, the bond is used up. This is rarely used by carriers for in-bond movements.

Why Do I Need One?

You cannot simply "drive past" the border with uncleared freight. You need a bond to act as a promise that the goods will eventually be cleared or exported.

1. To Move Goods "In-Bond"

If you want to transport goods from the border to a bonded warehouse inland (e.g., Detroit to Chicago) for clearance later, you must have a bond. This allows you to file an IT (Immediate Transportation) or T&E (Transportation & Exportation) manifest.

2. To Obtain a Filer Code

To file your own ACE eManifests effectively, you need a 4-character SCAC (Standard Carrier Alpha Code). However, to be a "bonded" carrier, CBP will assign you a bond number and often a unique Filer Code (different from your SCAC) that allows you to authorize in-bond moves.

How to Get a Bond & Filer Code

Carriers generally cannot buy a bond directly from the government. You must go through a Surety Agent or a Customs Broker licensed to write bonds.

• Step 1: Contact a Surety Agent. Many insurance companies specialize in logistics bonds.
• Step 2: Complete CBP Form 301. Your agent will help you fill this out, designating you as the "Principal".
• Step 3: Determine Bond Amount. For most carriers, the minimum bond amount is $25,000 or $50,000, depending on the types of goods hauled.
• Step 4: Request a Filer Code. Once the bond is filed with CBP, you (or your agent) must submit a letter of intent to the Port Director where you intend to conduct business to receive your unique filer code.

Setting Up in BorderConnect

Once you have your bond, you need to tell BorderConnect about it so the system can properly file your Type 61 (In-Bond) or Type 62 (QP/WP) entries.

1. Navigate to Account > Company Profile. 2. Scroll to the Customs (ACE) section. 3. Enter your Bond Number and Surety Code (found on your Form 301). 4. If you have a separate Filer Code, enter it in the Filer Code field. 5. Click Save.

For a full walkthrough on managing your bonded status, see the Bonded Carrier guide.

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