Customs Custodian Bond (Activity 2)
Before CBP will let you take custody of bonded, duty-unpaid merchandise, you have to post a custodian bond — CBP Activity Code 2, written under the Basic Custodial Bond conditions of 19 CFR 113.63 and filed on CBP Form 301. The penal sum starts at a $25,000 minimum under CBP’s published bond guidelines (at least $25,000 per building or area for a bonded warehouse), and CBP sizes it up from there based on the value of merchandise you will hold at any one time.
It is a single, continuous bond that covers whichever custodian role you run — a bonded warehouse, a container freight station, a cartage or lighterage operation, a container station, or an in-bond carrier. Here is exactly who needs it, how CBP sets the amount, and what the bond puts you on the hook for.
“Custodian of Bonded Merchandise” Covers Five Different Operations
Activity Code 2 is not one narrow business — it is CBP’s umbrella for anyone who physically holds or moves merchandise that has not yet been entered and has duties still owing. If your operation appears below, the same 19 CFR 113.63 custodial bond is what CBP will ask for. What differs is the operating regulation behind your role and the penal sum the port director assigns.
Bonded warehouse proprietor
19 CFR Part 19Operates a Class 1–11 customs bonded warehouse where dutiable merchandise is stored, manipulated, or manufactured before entry. The bond guarantees the goods stay accounted for until they are withdrawn for consumption, export, or transfer.
Container Freight Station (CFS)
19 CFR 19.40–19.49Receives, breaks down, and consolidates less-than-container-load (LCL) cargo under CBP supervision. Because in-bond merchandise sits in the CFS before it clears, CBP requires the custodial bond before goods are released to the station.
Cartage / lighterage operator
19 CFR Part 112A licensed cartman or lighterman that moves bonded merchandise between the pier, the CFS, the bonded warehouse, and the exam site. The bond covers the goods while they are in transit in your trucks or on your barges.
Container station operator
19 CFR 19.40Unlades, sorts, and holds containerized cargo for the carrier or importer under bond. The custodial bond backs the operator’s duty to keep the merchandise intact and redeliver it on CBP’s demand.
Bonded carrier (in-bond movement)
19 CFR Part 18Transports merchandise in-bond between ports so duties are paid at the destination, not the port of arrival. When a carrier holds custody of merchandise that has not been entered, an Activity 2 custodial bond is the instrument that covers it.
How the Port Director Sizes Your Penal Sum
Unlike a notary or license bond with a fixed statutory amount, the custodial bond’s penal sum is set case by case. 19 CFR 113.13(a) puts a floor under it — “the amount of any CBP bond must not be less than $100” — but the practical floor for an Activity 2 custodial bond is the $25,000 minimum in CBP’s published bond guidelines (A Guide for the Public: How CBP Sets Bond Amounts, February 2024), or $25,000 per building or area for a bonded warehouse. From there, 19 CFR 113.13(b) tells the port director which factors drive the number up.
The single biggest driver — a warehouse holding millions in dutiable goods carries a far larger penal sum than a cartage operator moving a few loads a week.
Prior record of timely duty payment and of honoring CBP redelivery demands. A clean history helps; a spotty one can push the amount up.
How much oversight CBP will exercise over your transactions. Less-supervised operations shoulder more bond.
Whether you have paid liquidated damages and honored prior bond commitments, plus anything in your bond application.
Activity 2 Custodian Roles at a Glance
Same 19 CFR 113.63 bond on CBP Form 301 — the operating regulation and typical penal-sum driver differ
| Custodian role | Operating regulation | What the bond secures | Penal-sum driver |
|---|---|---|---|
| Bonded warehouse proprietor | 19 CFR Part 19 | Goods stored/manipulated in a Class 1–11 warehouse | Value of dutiable inventory held |
| Container Freight Station (CFS) | 19 CFR 19.40–19.49 | LCL cargo deconsolidated under CBP control | Throughput and value staged at the CFS |
| Cartage / lighterage | 19 CFR Part 112 | In-bond goods moving between pier, CFS & exam site | Value in transit at any one time |
| Container station | 19 CFR 19.40 | Containerized cargo unladen and held under bond | Value of containers on hand |
| Bonded carrier (in-bond) | 19 CFR Part 18 | Merchandise moved in-bond port-to-port | Value carried and route risk |
All five roles post the same Basic Custodial Bond (Activity Code 2) on CBP Form 301. The $25,000 minimum penal sum (per building or area for bonded warehouses) is the CBP bond-guidelines floor; the port director may set a higher amount under 19 CFR 113.13(b).
Sources: 19 CFR 113.63 (Basic custodial bond conditions); 19 CFR 113.13 (amount of bond); CBP, A Guide for the Public: How CBP Sets Bond Amounts (Feb. 2024); 19 CFR Parts 18, 19, and 112.
What You Are Actually Promising CBP
The custodial bond is not a fee — it is a set of enforceable promises. 19 CFR 113.63 spells them out, and the liquidated damages are steep because the government’s duty revenue and control over the border ride on custodians keeping their word.
Redeliver on demand — the big one
You agree to “redeliver timely, on demand by CBP, any merchandise delivered to unauthorized locations or to the consignee without the permission of CBP.” If you cannot produce the goods, the liquidated damages are equal to the value of the merchandise involved — three times value for restricted, prohibited, or alcoholic-beverage merchandise.
Operate as a custodian & keep goods safe
You agree to receive, carry, store, and dispose of bonded merchandise only as CBP regulations authorize — and to keep it safe while it is in your custody. Nothing leaves without CBP’s permission.
Pay duties, taxes & charges
Where merchandise in your custody is lost, stolen, or improperly released, the bond backs the duties, taxes, and charges the government would otherwise collect on those goods.
Keep records & account to CBP
You maintain the required inventory and control records and produce them on demand. Recordkeeping and reporting defaults that do not involve missing merchandise are assessed at $1,000 per default.
Because the redelivery exposure is measured against the value of the merchandise, not a capped fee, the tightest-run bonded warehouses treat inventory control and CBP reporting as a compliance function, not an afterthought. The bond is the backstop — your recordkeeping is what keeps it from ever being called.
The Regulatory Text Behind the Bond
Official CBP Requirements
"A basic custodial bond must contain the conditions listed in this section and must be a continuous bond."Electronic Code of Federal Regulations • 19 CFR § 113.63 — Basic Custodial Bond Conditions
Official CBP Requirements
"The principal agrees to redeliver timely, on demand by CBP, any merchandise delivered to unauthorized locations or to the consignee without the permission of CBP... and to pay liquidated damages equal to the value of the merchandise involved in the default."Electronic Code of Federal Regulations • 19 CFR § 113.63 — Redelivery & Liquidated Damages
Official CBP Requirements
"The amount of any CBP bond must not be less than $100, except when the law or regulation expressly provides that a lesser amount may be taken. In determining the sufficiency of the bond, the port director shall consider the value and nature of the merchandise involved in the transaction, the degree and type of supervision that CBP will exercise, and the prior record of the principal."Electronic Code of Federal Regulations • 19 CFR § 113.13 — Amount of Bond
Official CBP Requirements
"The minimum amount acceptable for a continuous Activity Code 2 bond is $25,000, unless otherwise specified."U.S. Customs and Border Protection — A Guide for the Public: How CBP Sets Bond Amounts (Feb. 2024) • CBP Bond Guidelines — Activity Code 2 (19 CFR 113.63)
External .gov links open in a new tab and are marked rel="nofollow noopener noreferrer". The custodial bond is filed on CBP Form 301, the same form used for other CBP activity-code bonds, with Activity Code 2 selected.
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Custodian Bond Questions, Answered
Is the custodian bond the same thing as the importer’s continuous customs bond?
How does CBP decide my custodian bond amount?
Is a custodial bond continuous, or do I renew it every year?
What actually triggers a claim on my custodian bond?
I run a container freight station, not a warehouse — do I still need this exact bond?
How is a customs custodial bond different from a state warehouse bond?
Related Customs Bonds & Guides
The custodial bond is one piece of a CBP bonding program. Here is the rest of the picture.
Customs Bonds Guide (All Types)
The CBP bonding hub — activity codes, forms, and which bond fits your role
FTZ Operator Bond (Activity 4)
The custodial cousin for foreign-trade-zone operators under 19 CFR 113.73
International Carrier Bond (Activity 3)
For carriers bringing merchandise and passengers into the U.S. under 19 CFR 113.64
Continuous Import Bond (Activity 1)
The importer's $50,000-minimum bond under 19 CFR 113.62 — a different activity code
ISF Bond (Activity 16)
Importer Security Filing bond for ocean importers without a continuous bond
Drawback Bond (Activity 1a)
Secures accelerated payment of duty drawback claims
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
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