CBP Posts Another "Latest News and Developments" on Processing Bond Applications, Etc. (Activity Code 1 Continuous Bonds) (Part II - Final)
U.S. Customs and Border Protection (CBP) has recently posted a March 27, 2006 version of its guidance document entitled "Latest News and Developments," which provides information on the Pilot Bond Centralization Program and current issues, policies, and procedures for processing Activity Code 1 continuous bond applications. (See ITT's Online Archives or 03/08/06 news, 06030825, for Part VI, the final part of BP's series of summaries of CBP's February 13, 2006 version of its "Latest News and Developments" guidance document.)
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This is Part II, the final part of a multi-part series of summaries regarding CBP's March 27, 2006 version. (See ITT's Online Archives or 04/19/06 news, 06041905, for Part I.)
Highlights from the March 27, 2006 Version
The following are "highlights" of the changes made in CBP's March 27, 2006 version of its guidance document for Activity Code 1 continuous bonds. Subscribers should consult the March 27, 2006 version for complete details.
Formal demand letter to increase liability limit, from any CBP Office, must be part of application package, etc. CBP has amended its instructions for the application letter to state that a formal demand letter from any CBP office to increase the limit of liability on a continuous bond must be part of the bond application submission package to the Revenue Division Bond Team (19 CFR 113.12).
(Previously, CBP had stated that such a formal demand letter may act as a substitute for the application letter if it was provided as part of the bond submission package.)
CBP has also amended its instructions regarding complete bond application packages to add a statement that the "port code" and "date of transaction" fields on the CBP 301 form are used only for Single Entry Bonds, and should not be completed for a continuous bond.
Reject Team will issue a rejection notice at least two times. CBP amends its previous instructions to state that the Reject Team will issue a rejection notice at least two times. If a fully corrected bond is not submitted following receipt of at least two rejections, a final "bond withdrawal notice" will be issued to the filer and/or principal. Once a final "bond withdrawal notice" has been issued, the filer and/or principal must submit a new bond application.
(CBP had previously stated that the Reject Team would issue a rejection notice no more than two times and that failure to respond to all the requested corrections after the rejection notice has been issued twice would result in the withdrawal of the bond application without further notice to the bond filer and/or principal.)
Bond Team will deny requests for withdrawal of pending bond applications. CBP has amended its instructions regarding requests for withdrawal of pending bond applications. CBP now states that at this time, the Bond Team will deny all such requests. (CBP had previously stated that CBP reserved the right to accommodate or ignore such requests.)
Changes involving "frozen" importer records should be submitted to Bond Team. CBP newly states that if changes (for example, riders, addresses, etc.) are requested that involve a frozen importer record (per 19 CFR 24.5), these changes should be submitted to the Revenue Division Bond Team regardless of the location of the original bond.
Insufficient bonds to be rendered as such after 30 days (except for very large new bond amounts). CBP has added to its previous guidance on insufficient bonds a paragraph which notes that in general, bonds that are determined to be insufficient will be rendered as insufficient after 30 days. The principal will receive written correspondence from the Revenue Division Bond Team indicating the required new bond amount. The principal will have 30 days to file the new bond application. It is important to note, however, that there will be circumstances when the bond will be rendered insufficient immediately. This will occur when the Revenue Division Bond Team determines that the required new bond amount grossly exceeds the current bond amount. This determination will be made on a case-by-case basis.
Latest News and Developments (dated 03/27/06) available at