Court / Judicial
Forfeiture Claim (Cost) Bond
A forfeiture claim bond, often called a cost bond, is posted by a person who wants to contest a customs seizure in federal court instead of letting the government forfeit the property administratively.
- Required by
- U.S. Customs and Border Protection under 19 U.S.C. 1608
- Bond amount
- $5,000 or 10 percent of the property's value, whichever is lower, but not less than $250 (19 U.S.C. 1608)
What this bond guarantees
The bond runs to the United States. It promises that if the property is condemned, the claimant will pay the costs and expenses of the condemnation proceedings. Posting it moves the case to federal court.
Who needs it
- Owners of goods or vehicles seized by U.S. Customs
- Attorneys filing claims on behalf of property owners
- Importers contesting a seizure
What the underwriter looks at
- Value of the seized property
- Claimant's credit
- Collateral available
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Do I need this bond in every forfeiture case?
No. Federal law dropped the cost bond for most civil forfeitures, but customs seizures under 19 U.S.C. 1608 still use it. Ask your attorney which rules apply to your seizure.
What happens if I lose?
The bond pays the government's costs of the condemnation case, and you must repay the surety.