Foreign Trade Zone (FTZ) Operator Bond
A Foreign Trade Zone operator bond is CBP's Activity Code 4 continuous bond, minimum $50,000, and it is the switch that turns your zone on. Under 19 CFR 146.6(d), once CBP approves your activation application, "a Foreign Trade Zone Operator's Bond shall be executed on Customs Form 301" — and 146.6(e) says the site is not considered activated until the port director accepts that executed bond.
Its conditions live in 19 CFR 113.73: you guarantee the receipt, admission, status, handling, transfer, removal, and recordkeeping of every item in the zone. The $50,000 is a floor set by CBP's Monetary Guidelines — the port director sets the real penal sum from the value at risk.
What You Are Actually Promising CBP
An FTZ operator holds duty-suspended goods on U.S. soil that CBP is not physically guarding. The bond is what makes that trust workable — 19 CFR 113.73 spells out five distinct conditions the operator and surety guarantee. This is not boilerplate; each one is a separate way the bond can be called.
Lawful handling of everything in the zone
§ 113.73(a)The operator agrees to comply with the law and CBP regulations governing the receipt, admission, status, handling, transfer, and removal of merchandise, and to maintain the required inventory-control and recordkeeping system. This is the core promise — CBP is not physically guarding your zone, so the bond backs your paperwork.
Duties on anything that goes missing
§ 113.73(b)If merchandise that should be in the zone cannot be accounted for, the operator and surety agree to pay any duties, taxes, and charges found due on it. A shrinkage or inventory-reconciliation gap becomes a bonded liability, not just a bookkeeping note.
Importer Security Filing compliance
§ 113.73(c)The bond folds in the ISF (10+2) condition — the operator agrees to comply with all Importer Security Filing requirements in 19 CFR Part 149, with $5,000 liquidated damages per violation. An FTZ operator bond is one of the qualifying bonds that satisfies the ISF filing requirement under 19 CFR 149.5.
Exoneration and reimbursement of CBP
§ 113.73(d)The operator agrees to hold the United States and its officers harmless from any risk, loss, or expense arising from zone operations, and to reimburse CBP for the compensation of officers when the regulations require it.
Timely payment of the annual FTZ fee
§ 113.73(e)The operator agrees to pay the annual foreign-trade-zone fee on time. The condition carries escalating penalty percentages for amounts left in arrears — a reminder that this is a continuous, year-over-year obligation, not a one-and-done filing.
Where the Bond Sits in the Activation Sequence
Foreign trade zones run under 19 CFR Part 146. Getting a grant of authority from the FTZ Board is only the first step — a zone produces no duty benefit until CBP activates the site, and the operator bond is the last thing that has to fall into place. Here is the order it actually happens in.
- 1
Grant of authority
The FTZ Board designates the zone or subzone. At this point the site exists on paper but cannot receive merchandise in FTZ status.
- 2
Application to activate (19 CFR 146.6)
The operator files the activation application with the port director, including the procedures and inventory-control system it will use to account for goods.
- 3
Bond executed on Form 301 (146.6(d))
On approval of the application, the Activity 4 operator bond "shall be executed on Customs Form 301" with the 113.73 conditions. This is your step — and the one this page exists to handle.
- 4
Activation (146.6(e))
Only "upon the port director's approval of the application and acceptance of the executed bond" is the site considered activated. Now merchandise can be admitted in zone status and the duty benefits begin.
The practical takeaway: an approved activation application is not the finish line. If the bond is not executed and accepted, the zone stays dark and every day of delay is a day you are paying duties you could have deferred. Line up the surety the moment approval is in sight.
$50,000 Is the Floor — Here Is How CBP Sizes It Up
CBP's Monetary Guidelines for Setting Bond Amounts (Directive 3510-004) set $50,000 as the Activity 4 minimum, but the port director scales the penal sum to the revenue at risk: the value of merchandise you hold and the duties that would be owed if it could not be accounted for. Premium is a fraction of the penal sum, so a right-sized bond keeps your cost honest. These are typical bands, not statutory figures.
The CBP Monetary Guidelines floor. Most new general-purpose zone operators start here.
The port director scales the penal sum to the revenue at risk once real volume moves through.
Large manufacturing subzones (auto, pharma, oil) are commonly bonded well into the six figures.
Penal-sum ranges are underwriting estimates from Treasury-listed sureties; only the $50,000 minimum is a fixed CBP guideline (Directive 3510-004). Premium depends on the final penal sum, the operator's financials, and the merchandise profile. Get an exact figure from the quote form.
The Regulation, Word for Word
Official CBP Requirements
"On approval of the application, a Foreign Trade Zone Operator's Bond shall be executed on Customs Form 301, containing the bond conditions set forth in § 113.73 of this chapter."U.S. Customs and Border Protection • 19 CFR § 146.6(d) — Bond Executed on Approval
Official CBP Requirements
"The zone or zone site will be considered activated when the port director... has approved the application, and has accepted the executed Foreign Trade Zone Operator's Bond."Electronic Code of Federal Regulations • 19 CFR § 146.6(e) — Zone Activation
Official CBP Requirements
"The principal agrees to comply with the law and Customs Regulations related to the receipt, admission, status, handling, transfer, and removal of merchandise... and to maintain the inventory control and recordkeeping system."Electronic Code of Federal Regulations • 19 CFR § 113.73(a) — FTZ Operator Bond Conditions
Official CBP Requirements
"If merchandise is found to be missing from the zone... the obligors (principal and surety) agree to pay any duties, taxes, and charges found to be due on that merchandise."Electronic Code of Federal Regulations • 19 CFR § 113.73(b) — Liability for Missing Merchandise
External .gov links open in a new tab and are marked rel="nofollow noopener noreferrer". Quotations are condensed from the eCFR conditions; read the full text at the linked sections.
Approval in sight? Get the Form 301 bond ready.
Tell us your zone type and inventory profile — we'll size the Activity 4 penal sum and have the bond ready to execute the day CBP approves your activation.
FTZ Operator Bond Questions
Why does CBP make me post this bond before it will activate my zone?
Is $50,000 the amount I will actually be bonded for, or can CBP require more?
Do general-purpose zones and subzones both need the operator bond?
If I already carry the FTZ operator bond, do I need a separate ISF bond for ocean cargo?
What happens to the bond if merchandise goes missing from the zone?
Is the FTZ operator bond a one-time filing or does it renew every year?
The Rest of the CBP Bond Picture
Other Customs and Border Protection bonds and the guides that tie them together.
Customs Bonds Guide (All Types)
Import, carrier, custodial, ISF, and FTZ bonds mapped to their CBP activity codes
International Carrier Bond
Activity Code 3 bond (19 CFR 113.64) for vessels, aircraft, and trucks entering the U.S.
ISF Bond (10+2)
When you need a standalone Importer Security Filing bond — and when 113.73(c) already covers it
Drawback Bond
Accelerated duty-drawback refunds backed by an Activity Code 1a bond
Customs Bonds for Amazon FBA
Continuous import bonds for sellers importing inventory into FBA warehouses
Get an FTZ Operator Bond Quote
Size your Activity 4 penal sum and have Form 301 ready for activation
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
Don't Let the Bond Be What Stalls Your Zone
Your zone isn't activated until CBP accepts the executed Form 301 bond. Get it sized and issued now so activation is a formality, not a bottleneck.
Prefer to talk it through? Call 1-844-810-BOND (2663)