DEFINITION of 'Continuous Bond '
A financial guarantee commonly used in international trade that renews automatically until it is canceled. Continuous bonds do not expire as long as the client makes the required payment for each renewal. In the United States, any number of insurance companies may sell continuous bonds under standardized terms established by the government. The Revenue Division of the U.S. Customs and Border Protection (CBP) agency approves continuous bond submissions. Information stated on the bond and rider (if applicable) should include the bond amount, principal name, importer name, importer number and CBP-assigned number.
BREAKING DOWN 'Continuous Bond '
Types of continuous bonds include customs bonds, airport security bonds, importer security filing bonds and intellectual property rights bonds. The $50,000 continuous import bond is the most common in the U.S. and requires up to 10 days to be put in place. The opposite of a continuous bond is a term bond or single transaction bond. A bond that is not continuous may be renewed using a continuation certificate.