Customs Bond Guide: Single vs Continuous for FBA Sellers
Single entry vs continuous customs bond — a single entry bond covers one shipment at a time at roughly $175-$225 per entry, with CBP capping ISF filings at 5 per year. A continuous bond covers unlimited shipments across all US ports for 12 months at a flat annual cost of roughly $475. The breakeven point is 3 shipments: at 3 entries, single bonds cost $525 and a continuous bond costs $475. At 12 shipments per year, the continuous bond saves over $1,600. For FBA sellers importing from China, a continuous bond also eliminates the 48-hour ISF approval delay and the risk of mid-season surety rejection.
Many FBA sellers pay a bond fee on every shipment without questioning it. You see "Bond Fee: $100" or "ISF Bond: $75" on your freight bill and move on. But the choice between a single entry bond and a continuous customs bond can save you over $1,600 per year, or cost you your cargo if you pick wrong. This guide breaks down the numbers, the risks, and when each option makes sense.
What Is a Customs Bond? The $2,500 Rule
Every commercial import above $2,500 in value requires a customs bond before CBP will release your cargo. If your shipment is under $2,500 and an informal entry, a bond is not required. But if the goods are regulated by an agency like the FDA or FCC, a bond is mandatory regardless of value. For the full bond framework and maintenance rules, see our customs bond pillar guide and bond maintenance guide.
A customs bond is not cargo insurance. It is a three-party legal agreement:
- You, the importer, commit to paying duties and following import regulations.
- The surety company guarantees your payment to CBP. If you default, they pay first, then come after you.
- CBP holds the bond as collateral until your cargo clears.
Single Entry vs Continuous: The Comparison
| Feature | Single Entry Bond (SEB) | Continuous Bond (CB) |
|---|---|---|
| Coverage | One shipment only | Unlimited shipments / 12 months |
| Per-shipment cost | Roughly $175-$225 (bond + ISF) | About $40 (based on 12 shipments per year) |
| Annual fixed cost | Variable, pay as you go | Roughly $475 per year |
| ISF filing limit | Max 5 per year (hard CBP cap) | Unlimited |
| ISF approval time | 24-48 hours (slow) | Instant |
| PGA products (FDA/FCC/CPSC) | 3x bond amount required | No extra cost |
| Surety rejection risk | High (after 4-5 filings) | Very low |
| Best for | Testing the market (1-2 shipments per year) | Regular FBA sellers (3+ shipments per year) |
Cost figures are approximate. Surety pricing fluctuates with the insurance market. For a current quote, contact us with your expected annual shipment volume.
When to Switch: The Rule of 3
| Annual shipments | SEB cost (approx $175 each) | CB cost (approx $475 per year) | Savings with CB |
|---|---|---|---|
| 1 | $175 | $475 | -$300 (CB costs more) |
| 2 | $350 | $475 | -$125 |
| 3 | $525 | $475 | +$50 (breakeven) |
| 5 | $875 | $475 | +$400 |
| 12 | $2,100 | $475 | +$1,625 |
The math is simple: at 3 shipments per year, a continuous bond costs less than buying three single entry bonds. At 12 shipments (roughly one per month), the savings exceed $1,600. If you plan to ship FBA more than twice in a year, the continuous bond is the right choice.
3 Hidden Risks of Single Entry Bonds
Risk 1: The Rejection Trap After 4-5 Filings
After you buy 3 or 4 single entry bonds, the surety company identifies you as a regular importer and may refuse to issue more. This means you are mid-season with cargo on the water and no valid bond. You will be forced to buy a continuous bond at that point, and the money you already spent on single bonds is gone. CBP caps SEB ISF filings at 5 per year regardless.
Risk 2: PGA Collateral for Regulated Products
If your shipment includes electronics (FCC), cosmetics (FDA), or toys (CPSC), a single entry bond must cover 3 times the shipment value. The surety company may require an irrevocable letter of credit as collateral, freezing $1,000 to $3,000 of your cash. A continuous bond bypasses this requirement entirely. No collateral, no frozen cash.
Risk 3: ISF BOL Mismatch and Late Filing Penalties
ISF must be filed 24 hours before vessel departure. If the bill of lading number on your ISF does not match the carrier's BOL, the filing must be corrected. With a single entry bond, corrections require surety re-approval (24 hours), which can push you past the deadline. Late ISF triggers a CBP penalty of up to $5,000. With a continuous bond, corrections are instant. No re-approval needed.
Can I Get a Bond Without a US Company?
Yes. Non-resident importers, including Chinese companies and individuals, can obtain a customs bond by filing CBP Form 5106. The surety company evaluates the importer's financial standing and may require a higher collateral amount for non-resident applicants. Most FBA sellers without a US entity use their forwarder's DDP service to manage the IOR and bond under one agreement. For the full process, see our customs bond pillar guide.
How to Get a Bond
- Determine your expected annual shipment volume. Less than 2: single entry. 3 or more: continuous.
- Work with a surety company or through your freight forwarder's bond program.
- Provide your importer number (EIN for US entities, CBP-assigned number for non-residents).
- Pay the premium. Continuous bonds renew annually.
- Your bond is active across all US ports and shipping modes immediately.
Frequently Asked Questions
Can I get a refund on my Continuous Bond if I stop importing?
No. A customs bond is an insurance premium, not a deposit.
Does a Continuous Bond cover both air and ocean freight?
Yes. It covers all US ports and all transport modes: ocean, air, truck, and rail.
What happens if I ship without a valid customs bond?
CBP will not release your cargo. It sits at port accumulating demurrage charges until you secure a bond.
How many shipments can a Single Entry Bond cover?
CBP limits SEB ISF filings to 5 per year. After that, surety companies typically reject further applications.
Can a foreign company get a customs bond without a US entity?
Yes, via CBP Form 5106. A forwarder with DDP service can handle this on your behalf.
Stop Paying Per Shipment
If you ship FBA 3 or more times a year, you are overpaying with single entry bonds. A continuous bond costs less after the third shipment, eliminates the 5-ISF hard cap, and removes the risk of mid-season bond rejection. Our team handles the full process: bond setup, ISF filing, and customs clearance under one DDP contract.
