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Customs Bonds

Single entry bonds, continuous bonds, bond sufficiency, and surety requirements.

19 CFR 113

Structured from CBP-designated exam references; confirm the editions approved for your exam sitting.

The textbook layer behind Study Map

From learning route to full explanation

This guide explains what a CBP bond secures, how activity conditions control coverage, when single-transaction or continuous form is appropriate, how sufficiency is evaluated, and how principal, surety, effective date, and termination interact without erasing previously attached liability.

Study Map tells you what to learn and in what order; this page explains the rules, decision method, and boundaries. Reading completion is not proof of mastery.

1. Bond Purpose and Activity Codes2. Single-Transaction and Continuous Bonds3. Bond Amount and Sufficiency4. Surety, Principal, and Termination

Textbook chapter 1

Bond Purpose and Activity Codes

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Answer first

Identify the obligation CBP needs secured and select the bond activity whose conditions cover that obligation. A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction.

Rule breakdown

Controlling rule for Bond Purpose and Activity Codes

19 U.S.C. § 1623 ↗

The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.

Evidence route for Bond Purpose and Activity Codes

19 U.S.C. § 1623; 19 CFR §§ 113.31 and 113.62–113.75 ↗

Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: From § 113.31, select three activities and map each one to its conditions section in Part 113. For each, write the principal obligation, the event that creates exposure, and one obligation that the activity does not cover. Follow this source route: 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.

Decision path

  1. 1

    Set the gate for Bond Purpose and Activity Codes

    Identify the obligation CBP needs secured and select the bond activity whose conditions cover that obligation. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.

  2. 2

    Verify 19 U.S.C. § 1623

    Open 19 U.S.C. § 1623, complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75 rather than jumping directly to a remembered result.

  3. 3

    Test the boundary of Bond Purpose and Activity Codes

    Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: The § 113.62(a) payment condition is implicated. CBP may look to the bond if the principal fails to pay, subject to the bond terms, amount, and claim procedures. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.

Worked example

Scenario: After liquidation, CBP lawfully assesses $18,000 in additional duties on an entry covered by a basic importation and entry bond. Which bond purpose is implicated?

  1. 1.Identify the activity as the basic importation and entry bond under § 113.62.
  2. 2.Locate § 113.62(a), which conditions the bond on payment of duties, taxes, and charges legally fixed.
  3. 3.Treat the principal as still liable; the bond gives CBP security against nonperformance rather than substituting for the obligation.
  4. 4.Boundary check: change one decisive fact identified by “From § 113.31, select three activities and map each one to its conditions section in Part 113. For each, write the principal obligation, the event that creates exposure, and one obligation that the activity does not cover.” and explain whether the result changes under 19 U.S.C. § 1623; 19 CFR §§ 113.31 and 113.62–113.75.

Conclusion: The § 113.62(a) payment condition is implicated. CBP may look to the bond if the principal fails to pay, subject to the bond terms, amount, and claim procedures.

Common traps and corrections

× Treating a bond as insurance that eliminates the importer's underlying debt.

✓ The shortcut “Treating a bond as insurance that eliminates the importer's underlying debt.” skips a controlling distinction in Bond Purpose and Activity Codes. Return to 19 U.S.C. § 1623, follow 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75, and test the decisive fact against this boundary: A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction. Do not infer eligibility, release, or mastery from the shortcut.

× Selecting an activity code by label without reading its conditions section.

✓ The shortcut “Selecting an activity code by label without reading its conditions section.” skips a controlling distinction in Bond Purpose and Activity Codes. Return to 19 U.S.C. § 1623, follow 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75, and test the decisive fact against this boundary: A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction. Do not infer eligibility, release, or mastery from the shortcut.

× Assuming one bond activity secures every customs transaction or obligation.

✓ The shortcut “Assuming one bond activity secures every customs transaction or obligation.” skips a controlling distinction in Bond Purpose and Activity Codes. Return to 19 U.S.C. § 1623, follow 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75, and test the decisive fact against this boundary: A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction. Do not infer eligibility, release, or mastery from the shortcut.

× Confusing bond coverage with admissibility, licensing, or other independent legal requirements.

✓ The shortcut “Confusing bond coverage with admissibility, licensing, or other independent legal requirements.” skips a controlling distinction in Bond Purpose and Activity Codes. Return to 19 U.S.C. § 1623, follow 19 U.S.C. § 1623 → 19 CFR § 113.31 activity → corresponding conditions in §§ 113.62–113.75, and test the decisive fact against this boundary: A customs bond is security for performance of a specified customs obligation; it is not insurance for the importer and does not erase the principal's liability. Select the activity from 19 CFR § 113.31 and read that activity's exact conditions in §§ 113.62–113.75 before deciding that the bond covers the transaction. Do not infer eligibility, release, or mastery from the shortcut.

Frequently asked questions

Which fact controls first for Bond Purpose and Activity Codes?

Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Identify the obligation CBP needs secured and select the bond activity whose conditions cover that obligation. Then use 19 U.S.C. § 1623 and the remaining cited sources to test every required element before calculating or filing.

Where should I verify Bond Purpose and Activity Codes for the exam and live work?

For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 U.S.C. § 1623. For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.

Official sources and editions

Textbook chapter 2

Single-Transaction and Continuous Bonds

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Answer first

A continuous bond is not an automatically expiring one-calendar-year policy. It remains effective for qualifying future transactions until properly terminated, while liabilities attached before the effective termination date remain secured. A single-transaction bond covers the identified transaction; a continuous bond covers qualifying transactions within its activity and effective period until properly terminated. A continuous bond does not simply expire at the end of a calendar year, and termination generally affects future transactions rather than erasing liability already attached.

Rule breakdown

Controlling rule for Single-Transaction and Continuous Bonds

19 CFR §§ 113.11–113.13 ↗

The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. A single-transaction bond covers the identified transaction; a continuous bond covers qualifying transactions within its activity and effective period until properly terminated. A continuous bond does not simply expire at the end of a calendar year, and termination generally affects future transactions rather than erasing liability already attached. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.

Evidence route for Single-Transaction and Continuous Bonds

19 CFR §§ 113.11–113.13; 19 CFR §§ 113.26–113.27 ↗

Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: For one importer making monthly consumption entries and one importer making a single unusual entry, write the likely bond form, effective date needed, termination mechanism, and whether a pre-termination entry remains covered. Follow this source route: 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.

Decision path

  1. 1

    Set the gate for Single-Transaction and Continuous Bonds

    Choose between transaction-specific and continuous coverage and determine when coverage begins and ends. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.

  2. 2

    Verify 19 CFR §§ 113.11–113.13

    Open 19 CFR §§ 113.11–113.13, complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination rather than jumping directly to a remembered result.

  3. 3

    Test the boundary of Single-Transaction and Continuous Bonds

    Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: A continuous bond is the natural starting point for A; a single-transaction bond is the natural starting point for B. Actual acceptability and amount remain subject to CBP's activity, risk, and sufficiency requirements. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.

Worked example

Scenario: Importer A expects 60 ordinary consumption entries next year. Importer B expects one prototype shipment and no recurring entries. Which structure is the more natural starting point for each?

  1. 1.Confirm that both transactions fall under the same required bond activity; form does not replace activity analysis.
  2. 2.For A, compare recurring transactions with continuous coverage and one sufficiency amount.
  3. 3.For B, compare the isolated transaction with a single-transaction bond tailored to that entry.
  4. 4.Boundary check: change one decisive fact identified by “For one importer making monthly consumption entries and one importer making a single unusual entry, write the likely bond form, effective date needed, termination mechanism, and whether a pre-termination entry remains covered.” and explain whether the result changes under 19 CFR §§ 113.11–113.13; 19 CFR §§ 113.26–113.27.

Conclusion: A continuous bond is the natural starting point for A; a single-transaction bond is the natural starting point for B. Actual acceptability and amount remain subject to CBP's activity, risk, and sufficiency requirements.

Common traps and corrections

× Assuming a continuous bond automatically expires every year.

✓ The shortcut “Assuming a continuous bond automatically expires every year.” skips a controlling distinction in Single-Transaction and Continuous Bonds. Return to 19 CFR §§ 113.11–113.13, follow 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination, and test the decisive fact against this boundary: A continuous bond is not an automatically expiring one-calendar-year policy. It remains effective for qualifying future transactions until properly terminated, while liabilities attached before the effective termination date remain secured. Do not infer eligibility, release, or mastery from the shortcut.

× Treating termination as retroactively releasing transactions already covered.

✓ The shortcut “Treating termination as retroactively releasing transactions already covered.” skips a controlling distinction in Single-Transaction and Continuous Bonds. Return to 19 CFR §§ 113.11–113.13, follow 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination, and test the decisive fact against this boundary: A continuous bond is not an automatically expiring one-calendar-year policy. It remains effective for qualifying future transactions until properly terminated, while liabilities attached before the effective termination date remain secured. Do not infer eligibility, release, or mastery from the shortcut.

× Choosing single or continuous form without first selecting the correct activity.

✓ The shortcut “Choosing single or continuous form without first selecting the correct activity.” skips a controlling distinction in Single-Transaction and Continuous Bonds. Return to 19 CFR §§ 113.11–113.13, follow 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination, and test the decisive fact against this boundary: A continuous bond is not an automatically expiring one-calendar-year policy. It remains effective for qualifying future transactions until properly terminated, while liabilities attached before the effective termination date remain secured. Do not infer eligibility, release, or mastery from the shortcut.

× Assuming recurring entries are always cheaper or acceptable under a continuous bond without a sufficiency review.

✓ The shortcut “Assuming recurring entries are always cheaper or acceptable under a continuous bond without a sufficiency review.” skips a controlling distinction in Single-Transaction and Continuous Bonds. Return to 19 CFR §§ 113.11–113.13, follow 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination, and test the decisive fact against this boundary: A continuous bond is not an automatically expiring one-calendar-year policy. It remains effective for qualifying future transactions until properly terminated, while liabilities attached before the effective termination date remain secured. Do not infer eligibility, release, or mastery from the shortcut.

Frequently asked questions

Which fact controls first for Single-Transaction and Continuous Bonds?

Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Choose between transaction-specific and continuous coverage and determine when coverage begins and ends. Then use 19 CFR §§ 113.11–113.13 and the remaining cited sources to test every required element before calculating or filing.

Where should I verify Single-Transaction and Continuous Bonds for the exam and live work?

For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 CFR §§ 113.11–113.13. For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.

Official sources and editions

Textbook chapter 3

Bond Amount and Sufficiency

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Answer first

Calculate a working bond amount from the applicable rule or CBP guideline and then test whether CBP may require greater security. Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security.

Rule breakdown

Controlling rule for Bond Amount and Sufficiency

19 CFR § 113.13 ↗

The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.

Evidence route for Bond Amount and Sufficiency

19 CFR § 113.13; CBP Directive 3510-004, Monetary Guidelines for Setting Bond Amounts ↗

Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: Using CBP's current guidance, calculate a continuous import bond working amount for $420,000 of prior-12-month duties, taxes, and fees. Then list three facts under § 113.13 that could justify a different or larger amount. Follow this source route: Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.

Decision path

  1. 1

    Set the gate for Bond Amount and Sufficiency

    Calculate a working bond amount from the applicable rule or CBP guideline and then test whether CBP may require greater security. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.

  2. 2

    Verify 19 CFR § 113.13

    Open 19 CFR § 113.13, complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review rather than jumping directly to a remembered result.

  3. 3

    Test the boundary of Bond Amount and Sufficiency

    Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: $50,000 is the ordinary guidance-based starting amount because the 10% result falls below the published minimum. It is not a guarantee that CBP will accept that amount in every risk situation. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.

Worked example

Scenario: An importer paid $420,000 in duties, taxes, and fees during the prior 12 months and seeks a continuous import bond. What is the ordinary published-guidance starting amount?

  1. 1.Calculate 10% of $420,000: $42,000.
  2. 2.Compare $42,000 with the published $50,000 minimum.
  3. 3.Use $50,000 as the ordinary starting amount, then assess whether current activity or risk supports a higher amount under § 113.13.
  4. 4.Boundary check: change one decisive fact identified by “Using CBP's current guidance, calculate a continuous import bond working amount for $420,000 of prior-12-month duties, taxes, and fees. Then list three facts under § 113.13 that could justify a different or larger amount.” and explain whether the result changes under 19 CFR § 113.13; CBP Directive 3510-004, Monetary Guidelines for Setting Bond Amounts.

Conclusion: $50,000 is the ordinary guidance-based starting amount because the 10% result falls below the published minimum. It is not a guarantee that CBP will accept that amount in every risk situation.

Common traps and corrections

× Confusing the regulation's general minimum language with CBP's published $50,000 continuous-import operational minimum.

✓ The shortcut “Confusing the regulation's general minimum language with CBP's published $50,000 continuous-import operational minimum.” skips a controlling distinction in Bond Amount and Sufficiency. Return to 19 CFR § 113.13, follow Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review, and test the decisive fact against this boundary: Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security. Do not infer eligibility, release, or mastery from the shortcut.

× Treating 10% as a statutory ceiling or an amount that never changes.

✓ The shortcut “Treating 10% as a statutory ceiling or an amount that never changes.” skips a controlling distinction in Bond Amount and Sufficiency. Return to 19 CFR § 113.13, follow Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review, and test the decisive fact against this boundary: Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security. Do not infer eligibility, release, or mastery from the shortcut.

× Using prior duties alone while omitting taxes and fees included by the applicable guidance.

✓ The shortcut “Using prior duties alone while omitting taxes and fees included by the applicable guidance.” skips a controlling distinction in Bond Amount and Sufficiency. Return to 19 CFR § 113.13, follow Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review, and test the decisive fact against this boundary: Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security. Do not infer eligibility, release, or mastery from the shortcut.

× Applying the continuous-bond formula to a single-transaction bond.

✓ The shortcut “Applying the continuous-bond formula to a single-transaction bond.” skips a controlling distinction in Bond Amount and Sufficiency. Return to 19 CFR § 113.13, follow Identify bond activity and form → § 113.13 → current CBP amount guidance → risk and sufficiency review, and test the decisive fact against this boundary: Bond amount is activity- and risk-specific. Under CBP's published importer guidance, a continuous import bond is generally set at 10% of duties, taxes, and fees paid in the prior 12 months, with a $50,000 minimum; a single-transaction import bond is generally the entered value plus duties, taxes, and fees. These are operational baselines, not limits on CBP's authority to require additional security. Do not infer eligibility, release, or mastery from the shortcut.

Frequently asked questions

Which fact controls first for Bond Amount and Sufficiency?

Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Calculate a working bond amount from the applicable rule or CBP guideline and then test whether CBP may require greater security. Then use 19 CFR § 113.13 and the remaining cited sources to test every required element before calculating or filing.

Where should I verify Bond Amount and Sufficiency for the exam and live work?

For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 CFR § 113.13. For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.

Official sources and editions

Textbook chapter 4

Surety, Principal, and Termination

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Answer first

Distinguish principal and surety obligations, verify acceptable security, and determine the prospective effect of termination. The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective.

Rule breakdown

Controlling rule for Surety, Principal, and Termination

19 CFR §§ 113.37–113.40 ↗

The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.

Evidence route for Surety, Principal, and Termination

19 CFR §§ 113.37–113.40; 19 CFR § 113.27; CBP Form 301 ↗

Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: On a blank CBP Form 301, label the principal, surety, activity code, bond type, limit of liability, and effective date. Then use § 113.27 to draw a timeline showing notice, termination effectiveness, a pre-effective-date entry, and a post-effective-date entry. Follow this source route: CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.

Decision path

  1. 1

    Set the gate for Surety, Principal, and Termination

    Distinguish principal and surety obligations, verify acceptable security, and determine the prospective effect of termination. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.

  2. 2

    Verify 19 CFR §§ 113.37–113.40

    Open 19 CFR §§ 113.37–113.40, complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline rather than jumping directly to a remembered result.

  3. 3

    Test the boundary of Surety, Principal, and Termination

    Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: No. The September 20 transaction is not retroactively released merely by termination. The old continuous bond should not be relied on for the October 2 transaction after termination is effective. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.

Worked example

Scenario: A surety gives valid notice terminating a continuous bond effective September 30. An entry was made September 20, and another is planned October 2. Does termination erase both?

  1. 1.Verify the notice and effective date under § 113.27.
  2. 2.Place the September 20 entry before the termination effective date and preserve liabilities already attached under the bond.
  3. 3.Place the October 2 entry after termination and require replacement coverage before relying on the old bond.
  4. 4.Boundary check: change one decisive fact identified by “On a blank CBP Form 301, label the principal, surety, activity code, bond type, limit of liability, and effective date. Then use § 113.27 to draw a timeline showing notice, termination effectiveness, a pre-effective-date entry, and a post-effective-date entry.” and explain whether the result changes under 19 CFR §§ 113.37–113.40; 19 CFR § 113.27; CBP Form 301.

Conclusion: No. The September 20 transaction is not retroactively released merely by termination. The old continuous bond should not be relied on for the October 2 transaction after termination is effective.

Common traps and corrections

× Treating principal and surety as the same legal role.

✓ The shortcut “Treating principal and surety as the same legal role.” skips a controlling distinction in Surety, Principal, and Termination. Return to 19 CFR §§ 113.37–113.40, follow CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline, and test the decisive fact against this boundary: The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective. Do not infer eligibility, release, or mastery from the shortcut.

× Assuming termination retroactively cancels liability on prior covered transactions.

✓ The shortcut “Assuming termination retroactively cancels liability on prior covered transactions.” skips a controlling distinction in Surety, Principal, and Termination. Return to 19 CFR §§ 113.37–113.40, follow CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline, and test the decisive fact against this boundary: The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective. Do not infer eligibility, release, or mastery from the shortcut.

× Using a notice date as the effective termination date without reading § 113.27.

✓ The shortcut “Using a notice date as the effective termination date without reading § 113.27.” skips a controlling distinction in Surety, Principal, and Termination. Return to 19 CFR §§ 113.37–113.40, follow CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline, and test the decisive fact against this boundary: The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective. Do not infer eligibility, release, or mastery from the shortcut.

× Assuming any private guarantor or collateral form is automatically acceptable to CBP.

✓ The shortcut “Assuming any private guarantor or collateral form is automatically acceptable to CBP.” skips a controlling distinction in Surety, Principal, and Termination. Return to 19 CFR §§ 113.37–113.40, follow CBP Form 301 parties and terms → §§ 113.37–113.40 security → § 113.27 termination timeline, and test the decisive fact against this boundary: The principal promises performance and the surety secures that promise to CBP under the bond; liability is governed by the bond and Part 113. A surety's termination of a continuous bond follows the prescribed notice and effective-date rules and generally does not release obligations that attached before termination became effective. Do not infer eligibility, release, or mastery from the shortcut.

Frequently asked questions

Which fact controls first for Surety, Principal, and Termination?

Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Distinguish principal and surety obligations, verify acceptable security, and determine the prospective effect of termination. Then use 19 CFR §§ 113.37–113.40 and the remaining cited sources to test every required element before calculating or filing.

Where should I verify Surety, Principal, and Termination for the exam and live work?

For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 CFR §§ 113.37–113.40. For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.

Official sources and editions

Key Terms

Customs Bond|海关保证金
Single Entry Bond|单次报关保证金
Continuous Bond|连续保证金
Surety|担保人
$50,000 Minimum|$50,000 最低限额

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Back to Knowledge BaseUpdated 2026-08-19