Shippabo Blog

What is a Continuous Transaction Bond and When is it Required?

Written by Shippabo | May 17,2019
What are the bond amounts and how are they set?
 

All Continuous Transaction Bond are set by the Revenue Division of the National Finance Center in Indianapolis, Indiana.  Monetary Guidelines For Setting Bond Amounts are on the CBP website at 

https://www.cbp.gov/document/directives/3510-004-monetary-guidelines-setting-bond-amounts

The minimum bond amount for continuous bonds is generally $50,000. For importers, the minimum continuous bond amount is $50,000 or 10 percent of the total taxes and fees paid in the previous 12-month period, whichever is greater. The value of the imports not does factor into the required limits.

Please note that all bond amounts will be rounded up to the next whole dollar amount in multiples of $10,000 up to $100,000.  After that the limit is increased by $100,000.

Examples:  

• Up to $500,000 in annual duties and fees, a minimum $50,000 limit is adequate       

• Between $500,000 and $600,000 duties, then a $60,000 bond is required             

• Between $1,000,000 and $2,000,000 duties then a $200,000 bond is required.