What Is a Bonded Carrier and What Does It Take to Become One?

If you haul freight across the U.S.–Mexico border or work in port cities like Nogales, AZ, you’ve probably heard the term “bonded carrier.” But many trucking companies don’t fully understand what it means — or why it affects their insurance, compliance, and ability to get loads.

Here’s a clear breakdown.

What is a bonded carrier?

A bonded carrier is a trucking company that is authorized by U.S. Customs and Border Protection (CBP) to transport cargo that has not yet cleared U.S. Customs.

This type of freight is called “in-bond cargo.”

Normally, imported freight must clear customs before it can move freely inside the United States. But bonded carriers are allowed to move that cargo while it is still under Customs control — for example:

• From the border to a bonded warehouse

• From a port to a rail yard

• From the port of entry to a distribution center

The government requires a customs bond to guarantee that duties, taxes, and penalties will be paid if something goes wrong.

What bond do bonded carriers need?

Bonded carriers must file a federal customs bond called:

CBP Form 301 – Customs Bond Activity Code: 3 (International Carrier Bond)

This bond is filed with U.S. Customs and Border Protection and is what legally allows the carrier to move uncleared freight.

What does the bond cover?

The bond guarantees that the carrier will:

• Deliver the cargo to the proper Customs-approved location

• Follow all CBP in-bond rules

• Pay duties, fines, or penalties if violations occur

• Not release freight before clearance

If the carrier fails to comply, CBP can make a claim against the bond.

What does a carrier need to qualify?

To become a bonded carrier, a trucking company must meet all of the following:

1. Be a legally authorized motor carrier

The company must have:

• A valid USDOT number

• MC operating authority (if hauling for hire)

• Required auto liability and cargo insurance

This proves the carrier is legally operating as a trucking company.

2. Obtain a Customs Bond

The carrier must purchase a continuous CBP bond from an approved surety company and file CBP Form 301 with CBP.

Typical bond amounts:

• $50,000 (small carriers)

• $100,000 (mid-size)

• $250,000+ (high-volume carriers)

The carrier only pays a small annual premium, not the full bond amount.

3. Pass surety underwriting

The surety company will review:

• Business credit

• Financial stability

• Operating history

This determines whether the bond is approved and what the premium will be.

4. Provide required company identifiers

The carrier must provide:

• Legal business name

• EIN

• USDOT & MC numbers

• SCAC code (Standard Carrier Alpha Code used by Customs)

• Surety information

  
  

5. Follow CBP in-bond rules

Once bonded, carriers must:

• Electronically file in-bond moves through CBP systems

• Report arrival and export of freight

• Deliver shipments within CBP time limits

• Keep accurate records

Violations can result in fines, bond claims, or loss of bonded status.

Why bonded carriers pay more for insurance

Bonded carriers have higher risk because:

• They haul uncleared international freight

• They operate in Customs-controlled zones

• They are exposed to federal penalties

Many standard insurance companies will decline bonded operations, which is why specialty trucking insurance is often required.

One thing every carrier should know

If you operate in Nogales, Rio Rico, or any border city, your bonded status directly affects:

• Your insurance eligibility

• Your cargo limits

• The loads you can legally haul.

  
  

We can issue bonded carrier CBP bonds at GLS Insurance

If you need to become a bonded carrier, GLS Insurance can help you obtain your U.S. Customs International Carrier Bond (CBP Form 301).

We work directly with federal surety markets that issue:

• $50,000

• $100,000

• $250,000+Continuous CBP carrier bonds

  
  

This allows your trucking company to legally move in-bond freight at ports of entry such as Nogales, AZ.

We handle:

• Bond application

• Underwriting submission

• CBP filing

• Renewal management

  
  

All in one place — so your carrier stays compliant, and your loads keep moving.

If you are unsure whether your company is already bonded, we can verify it and help you get approved.

📞 Contact GLS Insurance to apply for your bonded carrier CBP bond.