Definition
A drawback bond is a customs bond on CBP Form 301 under Activity Code 1a, Drawback Payments Refunds, in which the claimant and a surety promise to repay any accelerated drawback that turns out to be overpaid when CBP liquidates the claim (19 CFR 113.65). It is required only for accelerated payment: you do not need a bond to file a drawback claim or to get a waiver of prior notice.
Also known as: Drawback Payments Refunds bond
When do you need a drawback bond?
Only to receive accelerated payment, where CBP pays the estimated refund before it liquidates the claim (19 CFR 190.92(d)). Filing a drawback claim does not require a drawback bond, and neither does a waiver of prior notice. The bond protects CBP: if liquidation shows it paid too much, the claimant and the surety are jointly and severally liable for the excess (19 CFR 113.65(b)).
Which bond activity code is a drawback bond?
Activity Code 1a, Drawback Payments Refunds, on CBP Form 301 (the 04/24 edition is current). Activity Code 8 is something else (detention of copyrighted material); the mix-up likely comes from CBP's drawback filing specification, where bond type code 8 means a continuous bond and 9 a single transaction bond. The bond details go on each claim (19 CFR 190.51(a)(2)(iii)), and the bond must be on file electronically in eBonds.
How big does a drawback bond have to be?
Big enough to cover the drawback CBP pays you in advance. CBP's guide to bond amounts sets a continuous drawback bond at 100% of the accelerated payments you expect over the bond term, with a $50,000 minimum, and a single transaction bond at 100% of the claim's accelerated payment, with a $100 minimum. If the claims outstanding exceed the bond, CBP requires more coverage before it pays any more (19 CFR 190.92(d)). Each accelerated payment uses up part of a continuous bond's available amount.
Continuous or single transaction bond?
Either works (19 CFR 113.65). A continuous bond renews every year until terminated, must be in effect on or before the date of the accelerated payment request, and suits claimants filing regularly; each principal can hold only one continuous bond per activity (113.12(b)). A single transaction bond covers one claim and is required when no sufficient continuous bond is on file. Both are common: CBP counted 7,934 single transaction and 1,431 continuous drawback bonds on file between February 2024 and January 2025 (91 FR 7006). Sureties typically review the principal's finances and may ask for collateral, such as a letter of credit, held until the claims finally liquidate.
Where does Stable Software fit?
DrawbackAI by Stable Software is flat-license duty drawback software that U.S. customs brokers white-label for their importer clients and file under their own filer code and POA, including for clients on accelerated payment. Flat software license. No contingency, no percentage of the refund. See DrawbackAI.
Related
Platform modules
Glossary
Frequently asked questions
Do I need a bond to file duty drawback?
No. A drawback bond is required only for accelerated payment. You can file claims, and get a waiver of prior notice, without one.
How do I get a drawback bond, and what does it cost?
Through a customs surety, on CBP Form 301 under Activity Code 1a. The bond amount is 100% of the accelerated payments you expect, with a $50,000 minimum for a continuous bond; the surety sets the premium and any collateral after reviewing your finances.
What happens if CBP overpaid more than the bond amount?
The claimant still owes the full amount. The claimant and the surety are jointly liable up to the bond amount, and the claimant owes the rest (19 CFR 113.65(b)).
Is a drawback bond Activity Code 8?
No. A drawback bond is Activity Code 1a, Drawback Payments Refunds. Activity Code 8 on CBP Form 301 covers detention of copyrighted material.