What is the typical validity period of a Running Bond?

A Running Bond is typically valid for 12 months from the date of issuance and registration with customs authorities. Upon expiry, the bond must be renewed if import-export operations continue. Renewal follows the same process as initial application but is expedited to 3-5 working days given existing compliance history.

Can I use a Running Bond across multiple ports in India?

A Running Bond is registered with a specific Principal Commissioner of Customs at your primary port of clearance (e.g., Mumbai Customs House or Chennai Port Customs). For operations at multiple ports, separate Running Bonds must be obtained and registered at each port, or you must apply for a pan-India bond variant if offered by your customs bond issuer, subject to CBIC approval.

What happens if my Running Bond amount is exceeded before renewal?

If cumulative transaction value exceeds the bond amount during the validity period, customs will not permit further clearance until the bond amount is increased. You must apply to your bank or insurer for a supplementary bond increase, typically processed within 3-5 working days, backed by updated financial justification and payment of additional premium on the increased amount.

Are Running Bonds mandatory for all importers and exporters?

Running Bonds are not universally mandatory but are strongly recommended for businesses engaged in regular, high-volume import-export activity. They are essential for entities availing special trade regimes such as EPCG schemes, SEZ operations, or duty-free imports. Small-scale traders with occasional shipments may opt for transaction-specific bonds instead.

What is the penalty for non-disclosure of goods cleared under a Running Bond?

Non-disclosure or misclassification of goods cleared under a Running Bond attracts penalties ranging from INR 10,000 to INR 50,000 or 10-25% of the duty amount involved (whichever is higher) under Section 114 of the Customs Act, 1962. Repeated violations can result in bond forfeiture, suspension of future bond privileges, and regulatory action by the DGFT.

Running Bond

Understand Running Bonds for import-export in India. Continuous customs security for frequent traders, faster clearance, and regulatory compliance under CBIC guidelines.

Verify IEC validity through DGFT portal and confirm banking relationship with an approved customs bond issuer
Determine bond amount (typically 5-15% of anticipated annual trade value) in consultation with your bank or insurance provider
Compile required documentation including IEC certificate, PAN, GST registration, audited financial statements, board resolutions, and detailed goods declaration with HS codes
Submit complete application package to bank or insurer along with bond request form; processing takes 5-10 working days including KYC and credit verification
Upon approval, the bank issues Running Bond certificate and registers it with the Principal Commissioner of Customs at your primary port; bond becomes operational immediately for customs clearance

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What is Running Bond?

A Running Bond is a financial guarantee instrument issued by a bank or insurance company on behalf of an importer or exporter, regulated under the Customs Act, 1962 and operationalized through the Central Board of Indirect Taxes and Customs (CBIC). It serves as a continuous security deposit that covers multiple shipments of imported or exported goods over a specified validity period, typically 12 months, without requiring a separate bond for each transaction.

Unlike a single transaction bond, a Running Bond accumulates liability across multiple consignments and is particularly valuable for businesses engaged in regular, high-volume trade activities. The bond amount is determined based on the importer's or exporter's anticipated transaction value, historical import-export patterns, and the nature of goods being traded. Under the Customs Valuation Rules, 2007, the bond is maintained as security for payment of applicable customs duties and taxes until final clearance of goods.

Pricing

Package	Price	Details
Standard	On request	Including document prep

Process

📋
Verify IEC validity through DGFT portal and confirm banking relationship with an approved customs bond issuer
🔍
Determine bond amount (typically 5-15% of anticipated annual trade value) in consultation with your bank or insurance provider
📝
Compile required documentation including IEC certificate, PAN, GST registration, audited financial statements, board resolutions, and detailed goods declaration with HS codes
✅
Submit complete application package to bank or insurer along with bond request form; processing takes 5-10 working days including KYC and credit verification
📤
Upon approval, the bank issues Running Bond certificate and registers it with the Principal Commissioner of Customs at your primary port; bond becomes operational immediately for customs clearance

Documents Required

Valid IEC (Importer-Exporter Code) certificate issued by DGFT
PAN certificate and GST registration certificate
Audited financial statements for preceding two financial years or CA-certified financial summary
Board resolution (for companies) or partnership deed/proprietorship undertaking authorizing bond application
Bank account statements for preceding 12 months and proof of banking relationship
Detailed declaration of goods to be imported/exported with HS codes, estimated monthly quantity, and import-export frequency

Frequently Asked Questions

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Running Bond

Understand Running Bonds for import-export in India. Continuous customs security for frequent traders, faster clearance, and regulatory compliance under CBIC guidelines.

Verify IEC validity through DGFT portal and confirm banking relationship with an approved customs bond issuer

Determine bond amount (typically 5-15% of anticipated annual trade value) in consultation with your bank or insurance provider

Compile required documentation including IEC certificate, PAN, GST registration, audited financial statements, board resolutions, and detailed goods declaration with HS codes

Submit complete application package to bank or insurer along with bond request form; processing takes 5-10 working days including KYC and credit verification

Upon approval, the bank issues Running Bond certificate and registers it with the Principal Commissioner of Customs at your primary port; bond becomes operational immediately for customs clearance

Google VerifiedBusiness

500+Export Clients Served

End-to-EndEXIM Support

What is Running Bond?

Package

Price

Details

Standard

On request

Including document prep

Process

📋

Verify IEC validity through DGFT portal and confirm banking relationship with an approved customs bond issuer

🔍

Determine bond amount (typically 5-15% of anticipated annual trade value) in consultation with your bank or insurance provider

📝

Compile required documentation including IEC certificate, PAN, GST registration, audited financial statements, board resolutions, and detailed goods declaration with HS codes

✅

Submit complete application package to bank or insurer along with bond request form; processing takes 5-10 working days including KYC and credit verification

📤

Upon approval, the bank issues Running Bond certificate and registers it with the Principal Commissioner of Customs at your primary port; bond becomes operational immediately for customs clearance

Documents Required

Valid IEC (Importer-Exporter Code) certificate issued by DGFT

PAN certificate and GST registration certificate

Audited financial statements for preceding two financial years or CA-certified financial summary

Board resolution (for companies) or partnership deed/proprietorship undertaking authorizing bond application

Bank account statements for preceding 12 months and proof of banking relationship

Detailed declaration of goods to be imported/exported with HS codes, estimated monthly quantity, and import-export frequency

Frequently Asked Questions