What Is an ISF Bond? A Complete Guide for First-Time Importers

What Is an ISF Bond?

To understand the ISF bond, we need to start with the Importer Security Filing (ISF)—a regulatory requirement from U.S. Customs and Border Protection (CBP) that applies to goods imported into the U.S. by ocean freight.

Before cargo is loaded onto a vessel, the importer must electronically file 10 key data points with CBP, including details like the seller, buyer, country of origin, and product description. This filing must be completed at least 24 hours before the vessel departs from the port of origin.

U.S. Customs enforces this requirement to ensure compliance and enable proper risk assessment. To submit this information, importers are required to have a customs bond—specifically, an ISF bond. This bond acts as a financial guarantee that the importer will meet ISF regulations and avoid penalties.

Why Is the ISF Bond Important?

That’s the hiccup: If you don’t file the ISF or you file it late, CBP can fine you up to $5,000 per violation. Filing late may also result in additional costs or underwriting requirements for the ISF bond. On top of that, your shipment may be delayed, held, or even refused.

The ISF bond, also known as an importer security filing bond, exists to guarantee that your filing obligations will be met, and if not, that CBP will be financially covered against any financial liabilities resulting from non-compliance. It’s essentially a promise backed by a surety provider (an insurance company).

When is an ISF bond needed? If you’re importing via ocean freight and filing ISF, you need this bond before your goods are loaded onto the ship abroad.

ISF Bond vs Customs Bond: What’s the Difference?

One of the most common questions importers ask is: What’s the difference between an ISF bond and a customs bond?

No sugarcoating it:  Customs bonds are essential financial guarantees required by US Customs for import compliance. There’s no separate “ISF bond” product. What you need is a customs bond that covers ISF obligations.

There are two kinds of bonds that can do this: import bonds and entry bonds. Import bonds are used to ensure compliance with customs regulations and can cover multiple shipments, while entry bonds are typically required for the clearance process of single shipments. Both play a key role in the customs clearance process and help importers meet bonding requirements.

1. Single Transaction Bond (STB)

• Covers one specific shipment (single shipment)

• Often used by first-time or infrequent importers

• Also known as an ISF single entry bond or single transaction entry bond, providing coverage for ISF and customs entry requirements for a single shipment

2. Continuous Bond

• Covers all imports for one year as a continuous bond, making it ideal for high-volume importers

• Automatically covers both ISF filings and customs entries; an ISF continuous bond is a type of continuous bond that streamlines compliance and cost savings for frequent importers

• Required if you’re importing frequently or have high-value shipments; obtaining a new bond may be necessary if your import volume increases and a continuous bond becomes more cost-effective

So, in short: ISF bond vs customs bond is really a question of how the customs bond is structured. You’re still using a customs bond, just ensuring it covers your ISF needs too.

ISF Bond Requirements: What Do You Need to Provide?

To obtain an ISF bond, you’ll typically need to provide:

• Your business name and address (or personal details if importing as an individual)

• Importer of Record (IOR) number (usually your EIN or SSN)

• Estimated shipment value and frequency

• Type of bond requested (Single vs Continuous)

If you’re working with a customs broker, they can usually handle the bond setup on your behalf. Many freight forwarders also partner with surety companies to offer this service. A freight forwarder can advise you on ISF bond requirements, help ensure compliance with customs regulations, and facilitate a cost-effective and smooth importation process.

Determining Your ISF Bond Amount

One of the first questions new importers ask is, “How much bond coverage do I actually need for my ISF filing?” The answer depends on a few key factors, but understanding the basics can help you avoid overpaying—or worse, being underinsured.

How is the ISF bond amount determined?

For a single-entry bond (also called a single transaction bond), the bond amount is typically set at the value of your goods plus the estimated duties, taxes, and fees, often with a minimum required by customs authorities. For most ISF filings, the minimum bond amount is $10,000, which is the standard set by U.S. Customs and Border Protection (CBP) for ISF coverage.

If you opt for a continuous bond, the bond amount is usually based on 10% of the total duties, taxes, and fees you paid to CBP in the previous year, with a minimum of $50,000. This annual bond covers all your import shipments and ISF filings for a full year, making it a cost-effective option for frequent importers.

What should you consider?

• Shipment value: Higher-value shipments may require a higher bond amount.

• Frequency of imports: If you import regularly, a continuous bond may offer better value.

• Type of goods: Some products with higher duties or stricter regulations may require a larger bond.

Your customs broker or surety company can help you calculate the right bond amount for your needs, ensuring you meet all ISF bond requirements and avoid any hiccups in the customs clearance process.

How Bond Fees Impact ISF Filings

When budgeting for your import shipment, it’s important to understand the different fees associated with ISF bonds and filings. These costs can vary depending on the type of bond you choose and the service providers you work with.

Key fees to expect:

• ISF bond fee: For a single-entry bond, expect to pay between $50 and $150 per shipment. This fee covers the financial guarantee required by CBP for your ISF filing.

• Continuous bond fee: An annual continuous bond typically starts at around $500 per year, depending on your import volume and the bond amount required. This fee covers all your ISF filings and customs entries for the year.

• ISF filing fee: In addition to the bond itself, most customs brokers or freight forwarders charge a separate ISF filing fee, usually ranging from $30 to $100 per filing. This covers the administrative work of submitting your ISF form to CBP.

• Other fees: Depending on your provider, there may be additional costs for late ISF filing, bond renewals, or changes to your bond.

Who pays these fees? As the importer, you’re responsible for all fees paid to secure your customs bond and complete the ISF filing process. Working with a reputable customs broker can help you understand all potential costs upfront and avoid surprise charges.

How to Obtain an ISF Bond

Here’s how you can obtain an ISF bond in 3 simple steps if you are importing goods into the United States:

Step 1: Choose Your Bond Type

• Single Transaction Bond if you import once or twice a year

• Continuous Bond if you import regularly or want simplicity

Step 2: Work with a Licensed Broker or Surety Agent

• Most customs brokers will handle this for you

• Or you can contact a licensed surety company directly

Step 3: File the ISF

Once the bond is active, your broker can file the ISF using the bond. Make sure this is done before the container is loaded at the foreign port.

Benefits of Compliant ISF Filings

Staying on top of your ISF filing requirements and maintaining the right customs bond isn’t just about avoiding penalties-it’s about setting your business up for long-term success in the importing world.

Key outcomes of timely ISF filings:

• Faster customs clearance: Accurate and timely ISF filings, backed by the proper bond, help your shipments move smoothly through border protection CBP checks, reducing the risk of delays or holds.

• Lower risk of penalties: Meeting ISF bond requirements and filing on time means you avoid costly fines, demurrage, and other additional costs that can eat into your profits.

• Improved reputation: Consistent compliance signals to customs authorities and logistics partners that you’re a reliable importer, which can lead to fewer inspections and smoother future imports.

• Financial protection: Your ISF bond acts as a financial guarantee, covering potential liabilities and ensuring that customs duties and taxes are paid, even if something goes wrong.

• Peace of mind: With the right customs bond and ISF filing process in place, you can focus on growing your business, knowing your imports are protected and compliant.

In short, investing in proper ISF filings and the right customs bond isn’t just a legal requirement—it’s a smart business move that pays off with every successful shipment.

When a $50 Bond Could’ve Saved Thousands

A few years ago, friend of mine worked with a boutique furniture company importing handmade pieces from India. They were new to importing and hadn’t heard of ISF. Their first shipment got loaded before the ISF was filed.

What followed was a domino effect:

• The shipment was flagged for non-compliance

• They were fined $5,000

• The container was delayed by two weeks

• They had to pay demurrage charges

• They risked having to pay additional duty due to the compliance failure

The irony? A $50 single bond and a timely ISF filing could’ve prevented it all.

Quick Recap

Final Thoughts

Whether you’re importing electronics, furniture, or food, one thing stays the same. Timely ISF filing with the right bond in place is essential.

Don’t wait for a penalty or cargo delay to highlight its importance. Secure your bond, file early, and keep things moving smoothly.

If you're considering a digital approach, an ISF software solution can make the process easier without adding extra complexity.

Frequently Asked Questions (FAQs)

1. Is an ISF bond mandatory for every ocean shipment?

Yes, if you’re filing an ISF, you’ll need a bond to back it up—either a single transaction or a continuous customs bond.

2. Can a continuous bond be used for ISF and customs clearance?

Absolutely. A continuous bond covers both ISF and customs entries, making it ideal for frequent importers.

3. What’s the main difference between an ISF bond vs customs bond?

An ISF bond is not a separate product. It’s a customs bond that includes ISF coverage. The term “ISF bond” just refers to its function.

4. How much does an ISF bond cost?

A single ISF bond typically costs $50–$150 per shipment. A continuous bond starts around $500 per year, depending on shipment volume and value.

5. What happens if I don’t file an ISF or don’t have a bond?

CBP can issue a $5,000 penalty, delay your shipment, and increase inspection rates for future imports.