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A continuous bond is a surety bond that remains in force indefinitely until it is cancelled by the principal, the surety, or an obligee through proper written notice, rather than expiring at a fixed date. It does not require annual renewal. As long as the underlying obligation persists and the bond is not formally cancelled, the coverage continues without interruption. Continuous bonds are common in U.S. Customs and Border Protection import activity, court proceedings, and certain licensing requirements.
Think of it like a utility service that stays on until you call to shut it off, as opposed to a lease you must renew every year.
Continuous bonds appear most prominently in two settings: federal customs activity and court or fiduciary contexts.
Importers who bring goods into the United States frequently enough to make annual bonds impractical use a continuous import bond filed with U.S. Customs and Border Protection. The bond covers all entries made during the bond's active period. The minimum bond amount for a continuous customs bond is 10% of the duties, taxes, and fees paid by the importer in the previous year, with a minimum floor of $50,000.
A continuous customs bond stays active until CBP or the surety formally terminates it. New shipments do not require a separate bond filing. This saves significant time and administrative cost for high-volume importers who would otherwise need to file a single-entry bond for every shipment.
Some court bonds, such as an administrator's bond filed when administering an estate, are treated as continuous because the obligation to properly handle the estate persists until the estate is fully settled. Similarly, professional license bonds in regulated industries sometimes operate on a continuous basis, requiring a single bond filing that stays active for as long as the licensed party operates.
Cancellation procedures vary by bond type. For U.S. Customs and Border Protection continuous bonds, the surety typically provides at least 30 days written notice to the importer and to Customs before cancellation takes effect. During the notice period, the bond continues to cover any entries made before the cancellation effective date.
The importer who cancels a continuous bond and then resumes importing must file a new bond before making additional entries. Continuing to import after a bond is cancelled without securing new coverage can result in merchandise being detained or fines being imposed.
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