CBP Posts Another "Latest News and Developments" on Processing Bond Applications, Etc. (Part V)
U.S. Customs and Border Protection (CBP) has recently posted to the Pilot Bond Centralization Program section of its Web site a February 13, 2006 version of its guidance document entitled "Latest News and Developments." According to CBP, this document provides information on the Pilot Bond Centralization Program and current issues, policies, and procedures for processing bond applications. (See ITT's Online Archives or 12/08/05 news, 05120805, for BP's summary of CBP's November 29, 2005 version of its "Latest News and Developments" guidance document.)
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(Subscribers should note that the February 13, 2006 version of this document appears to be more comprehensive treatment of bond applications, etc. than previous versions.)
This is Part V of a multi-part series of summaries of CBP's "Latest News and Developments" document and highlights the notification of approved bonds, amendments and withdrawals of bond submissions, importer record issues, periodic monthly statement, and incorrect mailing addresses. Part V builds upon the information summarized in Parts I, II, III, and IV regarding Activity Code 1 continuous bonds.
(See ITT's Online Archives or 02/21/06, 02/22/06, 02/23/06, and 02/24/06 news, 06022105, 06022210, 06022315, and 06022410, for Part I on the processing of new Activity Code 1 continuous bonds by the Revenue Division Bond Team, Part II on bond submissions and inquiries, Part III on bond application packages and bond rejects, and Part IV on bond termination requests and various kinds of bond riders. See ITT's Online Archives or 06/21/05 news, 05062105, for BP summary of CBP's notice announcing that centralized processing for all new Activity Code 1 continuous bonds took effect on June 20, 2005.)
Notification of Approved Bonds
CBP states that notifications of bond approvals will be issued within 10 business days after approval of the bond. The standard notification process for a new bond approval consists of: faxing a copy of the approved CBP 301 form to the bond filer, mailing a copy of the approved CBP 301 to each principal, and providing a copy of the approved CBP 301 to the surety.
According to CBP, parties with access to ABI may query that system for immediate notification of bond approvals. The Revenue Division Bond Team will not provide extra copies of these notifications. Upon request, additional copies of bond paperwork may be obtained through the Freedom of Information Act (FOIA) process. To make a FOIA request, CBP states that email requests should be submitted to cbp.bondquestions@dhs.gov.
Amendments and Withdrawals of Bond Submissions
Amendments to pending new bond applications (unless they are appropriately submitted in response to a rejection notice) will be treated as a submission of a new application. The Revenue Division Bond Team will not attempt to match amendments with the original bond submission. CBP notes that it is the principal's responsibility to insure any inaccurate or unnecessary continuous bonds are terminated or corrected in accordance with the Modernization Act of 1993 and reasonable care standards.
The Revenue Division Bond Team has noticed an increase in the number of requested withdrawals of pending bond applications. At this time, the Bond Team reserves the right to accommodate or ignore such requests. It is the bond principal's and/or bond filer's responsibility to insure that a continuous bond is needed, and an application is accurate, prior to submission of the bond application to CBP.
Importer Record Issues
Importer records cannot contain the letters 'I', 'O' or 'Z'. Alpha characters are allowed in the last 2 positions of the importer record if that record is based on an employer identification number (EIN), but the letters 'I', 'O' or 'Z' are never acceptable due to Automated Commercial System (ACS) limitations.
Importer records may be "frozen" per 19 CFR 24.5. Bond submissions related to "frozen" importer records may require special processing. A "frozen" importer record may be changed only if an authorized individual makes the request. CBP states that 19 CFR 24.5(f) should be reviewed for more information.
Requests to void importer records, or to reactivate voided importer records, should be faxed to 317-290-3275. Such requests should not be submitted to any other fax number or email address unless specifically advised by the Revenue Division.
Periodic Monthly Statement (PMS)
General questions, comments, or questions related to operational issues associated with the PMS program should be directed to the following email address: PMS.Mailbox@dhs.gov. Applications for participation in this program should be sent to: periodicstatement@dhs.gov.
Incorrect Mailing Addresses
The Revenue Division Bond Team will handle mail returned because of an incorrect address as follows:
Upon receipt of mail returned as 'undeliverable' by the U.S. Post Office, the Team will first confirm that the correct address was used by CBP.
The Team will fax or email the bond filer a short notification advising that the principal's mailing address on file with CBP must be corrected. The bond will be rendered insufficient 15 days from the date of the fax/email notification if the address has not been corrected.
If the bond has been rendered insufficient pursuant to this process, it will not be returned to sufficient status until the address correction has been completely processed.
Latest News and Developments (dated 02/13/06) available at http://www.cbp.gov/xp/cgov/import/communications_to_trade/pilot_program/latest_news_and_developments/.