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US customs bonds for Canadian businesses

A customs bond is one of the few genuinely knowable costs in this decision, and it is routinely left as an unknown that stalls the whole analysis. Here is the shape of it.

What a bond is for

A customs bond is a financial guarantee that duties, taxes and fees owed on your imports will be paid, and that you will comply with import requirements. It protects the government, not you.

You do not pay the bond amount. You pay a premium to a surety to issue a bond in that amount, which is a much smaller number — which is why brands who assume they must post the full value over-estimate this cost dramatically.

Single entry versus continuous

A single entry bond covers one shipment. Sensible if you import rarely.

A continuous bond covers all your entries over a period. For an ecommerce brand importing to a 3PL on a regular cadence, this is almost always the right instrument, and it is cheaper than buying single-entry bonds repeatedly.

The switch-over point is low — a handful of entries a year is often enough to favour continuous.

How the amount is determined

Continuous bond amounts are generally set in relation to the duties, taxes and fees you expect to pay over a period, subject to a minimum.

This means the bond scales with your import duty, not with your revenue. A brand importing CUSMA-qualifying goods at zero duty has a very different bond requirement from one importing dutiable goods at the same value — which is another reason the CUSMA determination comes before the import strategy.

Fitting it into the decision

Treat the bond premium as a fixed annual cost in your model, alongside 3PL onboarding and any entity maintenance. Then compare against what you currently pay in per-parcel brokerage.

Per-parcel brokerage on a few hundred orders a month is frequently larger than the entire fixed cost of a bonded bulk-import programme, which is the finding that usually decides this. But it depends on your numbers, which is the point of modelling it.

Next step

Want this checked against your own numbers?

Become importer of record as a foreign company, set up a US entity, or keep shipping parcel by parcel? Each path has different requirements, costs and break-even points. IORready models all three against your actual numbers before you commit to any of them.

Request details

Everyone has an opinion. Nobody has modelled it at your volume.

Become importer of record as a foreign company, set up a US entity, or keep shipping parcel by parcel? Each path has different requirements, costs and break-even points. IORready models all three against your actual numbers before you commit to any of them.

Request details