Notary Bond Application:
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A Customs Bond is a financial guarantee required by the U.S. Customs and Border Protection for importing, exporting, or storing international goods. The limit required is unique for each use of the bond, referred to as activity codes. Each code guarantees that the principal of the bond will pay all duties, taxes, penalties and fees assigned by the CBP. Securing the bond allows importers, exporters, carriers, warehouse operators, or other parties to participate in the movement of international trade.
Jet is a unique member of the surety bond industry. We work directly with YOU to secure your bond! By cutting the middleman, you can avoid unnecessary agency fees that boost the price of your bond and drag out timelines.
Our in-depth underwriting and streamlined communication help to expedite the process of obtaining your Customs Bond. Why risk losing business because you couldn’t get the bond fast enough? We’ve got you covered!
The lowest limit available for a Customs Bond is a Single Use Activity Code 1A import/export for $2,500. Because other limits can be set by the CBP for load volume, there is no maximum limit set. In many cases, we are able to quote the bond as low as 1% of the limit required, with a minimum transaction of $100. See the table below for rate examples based on the limit required.
| Bond Limit | Monthly | 1 Year |
|---|---|---|
| $2,500 | $10 | $100 |
| $50,000 | $50 | $500 |
| $200,000 | $200 | $2,000 |
In many cases, Jet offers a monthly payment option for the surety bond. This helps to reduce the large upfront cost that you’d see with other providers.
Activity Code 1 - Import/Export and Activity Code 1A - Drawback
Importers/Exporters are individuals or businesses that move merchandise goods across U.S. borders. The CBP requires an Activity Code 1 Customs Bond if the merchandise is valued at over $2,500 and is moved by airline, ocean, or vehicle transport. The bond can be purchased for a single shipment or annually.
The CBP sets the single-use bond limit using the value of the merchandise and adding all duties, taxes and fees that apply. The continuous bond has a minimum limit of $50,000 but can increase based on the amount of duties, taxes and fees based on the shipped goods. Activity Code 1a is filed by importers who ship goods into the US and pay the applied fees. The goods are then exported or destroyed. The Importer can then acquire a Drawback Bond (AC1a) and submit a request to the CBP for a 99% refund. The surety bond covers the risk to CBP by guaranteeing Customs will be reimbursed if the refund is incorrect or invalid. The bond term can also be purchased as single-use or continuous. The limit is set by the drawback amount for one entry or for the year.
Activity Code 2 - Warehouse
The Custodian of Bonded Merchandise surety bond is required for entities that carry or store imported items that have not been fully processed by Customs. For example, if a shipment is imported into the US and stored at a warehouse before duties and taxes are paid by the importer, the warehouse must hold an Activity Code 2 Customs Bond. If that same shipment is then scheduled to be moved to another warehouse for storage, the carrier moving this load must hold the same bond and Activity Code. The bond guarantees compliance with proper custody, control, and redelivery according to CBP regulations.
This Activity Code is continuous in nature, and the standard bond limit is $50,000. Similar to other Codes, the limit can vary based on the size and type of operation the warehouse or carrier is running.
Activity Code 3 - International Carrier and Activity Code 3A - International Traffic
The CBP requires ships, airlines, and other vessels of travel to acquire a Customs Bond for the transportation of goods intended for international trade. The Activity Code 3 guarantees that the transporter will properly track the goods carried, pay for overtime services, and comply with other CBP regulations. Activity Code 3a covers the containers used to move international goods and their clearances passing Customs. Without Code 3a, individual containers may require separate bond coverage and clearance.
Activity Code 3 and 3a can both be filed for continuous coverage, but only Code 3 can be filed for a single shipment. Code 3 has a standard limit of $25k and Code 3a is $20k, unless determined by Customs to be higher.
Activity Code 4 - Foreign Trade Zone
The Foreign Trade Zone Operator Code 4 (FTZ Bond), has a guarantee similar to a Bonded Warehouse in that it must comply with Customs Regulations and pay all duties, taxes, and fees associated with storing, moving, and processing imported and exported goods from the supervised zone. It does not cover damages to the goods like Activity Code 2 does. Many U.S. ports of entry are adjacent to Foreign Trade Zones. At an FTZ, merchandise can be sorted, inspected, or removed before official Customs entry. This helps reduce or defer duties and avoid filing for drawback on international merchandise.
The minimum FTZ Bond limit is $50k, but there is no standard bond limit for this Activity Code. It varies dramatically based on the volume of operations and is determined by Customs on approval.
Activity Code 11 - Airport Security
he Airport Customs Bond is for entities that access international inspection areas at airports. The bond limit is $1,000 per employee, and a minimum of $10k. Code 11 is filed continuously, and guarantees the principal will comply with employee access, registration and regulation.
If you still have questions about what activity quote you need, we suggest contacting your local Customs and Border Protection Agency office to confirm.
Jet keeps the application process short and sweet! Once completed, our underwriters will give you a call to provide a quote for your business or request any additional information. All Customs Bond applications will require basic business information and the owner's Social Security Number. Pricing for the bond is based on a financial review of the business and the owner, which does include a soft credit check.
Once the purchase is complete, Jet will file the new surety bond through the ACE (Automated Commercial Environment) portal. The bond is validated instantly by the CBP and sends confirmation back to us.
Because the bond covers multiple activity codes and each activity code has different requirements, there are many ways to avoid claims for your Customs Bond.