How do I choose a surety company?

Select from Treasury's Circular 570 list of approved sureties. Your customs broker often has established relationships with surety companies and can recommend one.

What does a surety bond cost?

Continuous bond premiums typically range from $400-$1,200 per year for the standard $50,000 minimum. Higher bond amounts cost more. The premium depends on the importer's creditworthiness and import volume.

Compliance

What is Surety Bond?

A bond provided by a surety company guaranteeing an importer's duty, tax, and fee obligations to CBP. In the context of U.S. customs and tariff recovery, understanding surety bond is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

A surety bond in the customs context is a three-party agreement involving the principal (the importer), the obligee (CBP), and the surety (a Treasury-authorized insurance or bonding company). The surety guarantees that the importer will fulfill their obligations — paying duties, taxes, and fees, complying with customs laws, and redelivering goods if required. If the importer defaults, CBP claims against the surety, which then seeks reimbursement from the importer. Surety companies must be listed on the U.S. Treasury's Circular 570 to issue customs bonds.

How Surety Bond Relates to Tariff Refunds

The surety bond ensures CBP can collect duties even if the importer cannot pay. For CAPE refund purposes, the bond's existence does not affect eligibility — it is a separate compliance requirement. However, importers with insufficient or lapsed bonds may face issues with future imports.

Example

Surety company Berkley Customs Insurance issues a $100,000 continuous bond for an importer. When the importer fails to pay $30,000 in duties on a liquidated entry, CBP demands payment from Berkley, which then pursues the importer for reimbursement.

Frequently Asked Questions

How do I choose a surety company?: Select from Treasury's Circular 570 list of approved sureties. Your customs broker often has established relationships with surety companies and can recommend one.
What does a surety bond cost?: Continuous bond premiums typically range from $400-$1,200 per year for the standard $50,000 minimum. Higher bond amounts cost more. The premium depends on the importer's creditworthiness and import volume.

Legal References

19 U.S.C. § 1623 — Customs Bonds
31 CFR Part 223 — Treasury Circular 570

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