Answer first
Core rule
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.
Authority and lookup route
Locate the rule before returning to the facts. Links point to government or official publications.
Reference lookup task
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.
Route: 19 CFR § 113.11 form → § 113.12 effective date → § 113.13 amount → §§ 113.26–113.27 termination
Worked example
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?
- 1Confirm that both transactions fall under the same required bond activity; form does not replace activity analysis.
- 2For A, compare recurring transactions with continuous coverage and one sufficiency amount.
- 3For B, compare the isolated transaction with a single-transaction bond tailored to that entry.
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
- Assuming a continuous bond automatically expires every year.
- Treating termination as retroactively releasing transactions already covered.
- Choosing single or continuous form without first selecting the correct activity.
- Assuming recurring entries are always cheaper or acceptable under a continuous bond without a sufficiency review.