How to Become a Bonded Carrier: FMCSA Authority and Customs Bond

To become a bonded carrier in the United States, you need three things in this order: motor carrier operating authority from the Federal Motor Carrier Safety Administration, a continuous customs bond of at least $50,000 written by a Treasury-approved surety, and approval of that bond by U.S. Customs and Border Protection. Most carriers who have their paperwork ready can finish in a few weeks, though CBP’s bond review alone takes a minimum of five business days.

Step 1: Get FMCSA Operating Authority

Before you can haul bonded freight, you have to be legally authorized to haul any freight across state lines. That means registering with FMCSA and meeting its financial responsibility requirements. Three filings happen in sequence, and your authority won’t activate until all three are complete.

USDOT Number and MC Authority

Every company operating commercial vehicles in interstate commerce must obtain a USDOT number, the unique identifier FMCSA uses to track safety data from audits, inspections, and crash investigations.¹ Once you have that, you apply for Motor Carrier (MC) operating authority, which specifically authorizes for-hire interstate transportation of property.² Your MC authority exists on paper at this point but stays inactive until you meet the next two requirements.

Insurance and Process Agents

FMCSA will not activate your authority until you have the minimum financial responsibility on file. For non-hazardous property carriers operating vehicles over 10,001 pounds, that minimum is $750,000 in public liability coverage. Your insurer files proof using a BMC-91 or BMC-91X. If the filing doesn’t happen within 20 days of your authority application being published, FMCSA will notify you that it will dismiss the application unless you comply within 60 days.³

You also need a Form BOC-3 on file designating process agents in every state where you operate. A process agent accepts legal documents on your behalf. You can designate yourself in your home state, but every other state requires a resident agent. Only a process agent can file the BOC-3 on the carrier’s behalf, and only one completed form may be on file at a time.⁴ Most carriers use a blanket service that covers all states for a flat annual fee.

Unified Carrier Registration

Interstate motor carriers also register annually under the Unified Carrier Registration program, which funds state highway safety programs.⁵ Fees are based on fleet size, not per vehicle. For 2026, a carrier with two or fewer power units pays $46; fleets of six to twenty pay $276, and the schedule climbs from there.

Step 2: Buy a Continuous Customs Bond

The customs bond is what separates a bonded carrier from an ordinary freight hauler. It’s a financial guarantee to the federal government that duties, taxes, and penalties will be paid if you lose, damage, or fail to properly deliver in-bond merchandise. Without it, CBP will not let you touch imported goods that haven’t cleared customs.

What you need is a custodial bond under 19 CFR 113.63, classified as Activity Code 2 on CBP Form 301.⁶ The same activity code covers bonded carriers, freight forwarders, and warehouse operators. The minimum bond amount is $50,000, but CBP can require more based on the volume and value of goods you’ll transport.

The bond must come from a surety company listed on the Department of the Treasury’s Circular 570, the official roster of companies authorized to write federal bonds.⁷ You pay the surety an annual premium, not the full bond amount. Premiums vary with your credit and business history. A continuous bond renews automatically until you or the surety terminates it.

Step 3: File the Bond with CBP

Once your surety executes CBP Form 301, submit the application package to CBP’s Revenue Division. This is where carriers frequently stumble: continuous bond applications go to the Revenue Division, not the local port director.⁸ Single transaction bonds can go to the port director, but bonded carriers need a continuous bond, and those follow a centralized review. The Revenue Division needs a minimum of five business days and won’t respond to status inquiries before that window closes.⁹

Your package should include the executed bond, your USDOT and MC numbers, and any other documentation CBP requests. Only one continuous bond for a particular activity is authorized per principal, but that single bond covers your custodial operations nationally.⁸ On approval, CBP assigns your carrier code and grants access to the Automated Commercial Environment (ACE), the electronic system used to manage all in-bond movement data.¹⁰

SCAC Code

You’ll also need a Standard Carrier Alpha Code, a four-character identifier issued by the National Motor Freight Traffic Association. CBP uses SCAC codes to link in-bond transactions to the responsible carrier within ACE, and the ACE portal lets you pull reports of every in-bond tied to your SCAC. The code is also required if you plan to apply to border-crossing programs like C-TPAT.¹¹

Electronic Filing

All in-bond applications must be transmitted electronically through a CBP-approved Electronic Data Interchange (EDI) system.¹² Paper filings are not accepted except in narrow situations like pipeline shipments or when EDI functionality is temporarily unavailable and the Commissioner authorizes an alternative. You’ll need either your own EDI software or a third-party service. Setup costs and monthly fees vary by vendor, so get multiple quotes before committing.

What You’ll Be Authorized to Move

Once approved, you can handle three categories of in-bond transportation, each serving a different purpose.¹³ Immediate Transportation (IT) moves imported merchandise from the port of arrival to an inland port where it will be formally entered into U.S. commerce. Transportation and Exportation (T&E) moves merchandise through the United States for export at a different port, without formal entry. Immediate Exportation (IE) moves merchandise from the port of arrival for export at the same or a nearby port. Each type carries its own timing rules; T&E shipments, for example, must be fully exported within 15 calendar days after the last portion arrives at the export port, or the goods fall under general order and CBP takes control.¹⁴

Credentials Worth Planning For

Bonded carrier status alone lets you move in-bond freight. Two additional credentials aren’t required, but they matter for how much of the market you can actually serve.

Drivers who access secure port areas typically need a Transportation Worker Identification Credential (TWIC) from TSA. A new card costs $124 and is valid for five years; a reduced rate of $93 applies to holders of certain other credentials, and online renewals cost $116.¹⁵ If your drivers will be picking up or delivering at seaports, budget for TWIC before you start booking loads.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary program that gives trusted carriers expedited border processing. To qualify, a highway carrier must be actively crossing international borders, keep a staffed U.S. business office, hold a valid SCAC, and designate a company officer as the primary cargo security officer.¹¹ Applications go through CBP’s online portal only; paper applications are no longer accepted. Members get fewer inspections and faster processing.

Staying Compliant After Approval

Getting approved is the easy part. The reporting deadlines are tight enough that a single missed day can trigger penalties against your bond.

When in-bond merchandise arrives at the port of exportation, you must notify CBP electronically within two business days. Missing that window constitutes an “irregular delivery,” and CBP treats it as exactly that when assessing penalties.¹⁴ After the merchandise is exported, you have another two business days to update the in-bond record in EDI to reflect the exportation. Every report goes through CBP-approved EDI; there is no phone or email option.¹⁶

Keep every record related to bonded merchandise transportation in a retrievable format for five years from the date of the underlying activity.¹⁷ That covers manifests, in-bond entries, delivery receipts, seal records, and CBP correspondence about shipments. Retrievable means producible on demand during an audit.

CBP also reviews periodically whether your bond amount still protects the government’s revenue interest. If the value or volume of merchandise you’re transporting grows significantly, CBP can require you to increase the bond. If you can’t increase it promptly, your authorization to transport in-bond goods is at risk. Notify CBP promptly of any changes to your company’s name, address, or organizational structure.

What Non-Compliance Actually Costs

The party whose bond is obligated on the transportation entry is liable for shortages, irregular deliveries, non-delivery, failure to export, broken seals, and unauthorized seal removal.¹⁸ Any loss discovered at the destination or export port is presumed to have occurred while the merchandise was in your custody unless you can produce conclusive evidence otherwise.

CBP enforces violations through liquidated damages assessed against your bond, and you’re also liable for all duties, taxes, and fees on missing merchandise plus the government’s costs. The exposure carriers most often miss: those duties, taxes, and fees are not capped at the bond amount.¹⁸ A $50,000 bond doesn’t limit your liability to $50,000. Lose a container of high-value electronics and you owe the full duty regardless of what the bond covers. That’s why building reliable reporting systems matters more than any single form in the application file.

1
Federal Motor Carrier Safety Administration. Do I Need a USDOT Number
2
Federal Motor Carrier Safety Administration. Getting Started with Registration
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Federal Motor Carrier Safety Administration. Insurance Filing Requirements
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Federal Motor Carrier Safety Administration. Form BOC-3 – Designation of Agents for Service of Process
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Unified Carrier Registration. UCR Act
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U.S. Customs and Border Protection. CBP Form 301 – Customs Bond
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U.S. Department of the Treasury. Surety Bonds – List of Approved Sureties
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eCFR. 19 CFR 113.11 – Bond Application
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U.S. Customs and Border Protection. General Instructions for Filing CBP Continuous Bonds
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U.S. Customs and Border Protection. ACE Secure Data Portal In-Bond Arrival and Export Enhancement
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U.S. Customs and Border Protection. Application for Highway Carriers
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eCFR. 19 CFR 18.1 – In-Bond Application and Entry; General Rules
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eCFR. 19 CFR Part 18 – Transportation in Bond and Merchandise in Transit
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GovInfo. 19 CFR 18.7 – Lading for Exportation
15
Transportation Security Administration. TWIC
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eCFR. 19 CFR 18.1 – In-Bond Application and Entry; General Rules
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eCFR. 19 CFR 163.4 – Record Retention Period
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eCFR. 19 CFR 18.8 – Liability for Not Meeting In-Bond Requirements