What is Single Entry Bond?
A customs bond covering a single import transaction, required when no continuous bond is on file. In the context of U.S. customs and tariff recovery, understanding single entry bond is essential for navigating the CAPE refund process and ensuring accurate duty assessment.
Definition
A single entry bond (SEB) is a customs bond that covers a single import transaction. It is used when an importer does not have a continuous bond on file with CBP (or when the continuous bond is insufficient for a particularly large shipment). The SEB amount is typically set at the total entered value of the goods plus all duties, taxes, and fees. Single entry bonds are more expensive per-entry than continuous bonds and are generally used by infrequent importers or for one-time shipments.
How Single Entry Bond Relates to Tariff Refunds
The type of bond (single entry vs. continuous) does not affect CAPE refund eligibility. Duties paid under either bond type are equally eligible for CAPE claims. However, frequent importers should consider a continuous bond for cost savings and operational efficiency.
Example
A company makes a one-time import of machinery valued at $500,000 with $125,000 in duties. They purchase a single entry bond for $625,000 (value + duties) at a premium of approximately $5 per thousand, costing about $3,125.
Frequently Asked Questions
- When should I use a single entry bond vs. continuous?
- Single entry bonds make sense for one-off or very infrequent imports. If you import more than 2-3 times per year, a continuous bond is usually more cost-effective.
- How much does a single entry bond cost?
- Premiums are typically $4-$7 per $1,000 of bond amount, with a minimum premium of $50-$100 depending on the surety company.
Related Terms
Legal References
- 19 CFR Part 113 — CBP Bond Regulations
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