CBP Posts Updated "Latest News and Developments" on Processing Bond Applications, Etc. (Activity Code 1 Continuous Bonds)

Highlights of Changes Made to the March 12, 2007 Version

The following are highlights of changes made to CBP's updated (March 12, 2007) version of its guidance document for Activity Code 1 continuous bonds:

Any rider or termination of an Activity Code 1 continuous bond can be processed by the Revenue Division. According to CBP sources and CBP's document, a newly added section indicates that any rider or termination of an Activity Code 1 continuous bond can be filed directly with and processed by the Revenue Division, Office of Finance.

(Sources explain that for valid bonds currently on file at the service ports, the rider or termination may be submitted either to the Port where the file is or to the Revenue Division. However, if the bond is on file at the Revenue Division, then the rider or termination must be submitted to the Revenue Division.)

Director of Revenue Division may accept cash in lieu of bonds. CBP's document has been amended to add a section on cash in lieu of surety bonds, which states that it is at the discretion of the Director of the Revenue Division, Office of Finance to accept cash or obligations of the U.S. in lieu of sureties on bonds. Per 19 CFR 113.40, CBP is authorized, but not required, to accept these instruments in lieu of sureties on bonds.

Rejected bond submission paperwork, inquiries. The Reject Team, which deals with bond applications that have been referred for rejection, has its own fax number for accepting corrections to rejected bond submissions ((317) 298-1042).

CBP has amended the document to add that any paperwork submitted to the Reject Team's fax number which is not related to a rejected bond submission, or is not in response to a specific request to use that number, may be discarded without being processed.

Bonds must be signed by an officer of the company or person with POA. The updated version has been amended to clarify that the bond (CBP Form 301) in a bond application package must be signed by an officer of the company, or any person holding a properly executed power of attorney (POA).

Fax cover sheet, email for submission to correct a bond. According to CBP's updated version, if the bond application submission is associated with an attempt to correct a bond that has been rendered insufficient, the fax cover sheet or email should indicate that this is the case. (A fax cover sheet or email listing the name, phone number, fax number, and email address of a point of contact for the application must be supplied.)

Bond Team will not return approved copies of U.S. Virgin Island bond riders. The section of the document regarding U.S. Virgin Islands bond riders has been amended to add that the Bond Team will not return "approved" copies of riders to Activity Code 1 continuous bonds required pursuant to Virgin Islands Area Port Information Notice 2005-15.

Insufficient bonds, incorrect mailing address sections removed. The "Insufficient Bonds" section that appeared in previous versions of the document is not included in this updated version. (This section provided a list of reasons for rendering bonds insufficient, where to direct questions, etc.)

Additionally, CBP's updated version does not include the "Incorrect Mailing Address" section that was part of previous versions. (The section described how the Bond Team would handle mail returned due to an incorrect address.)

CBP "Latest News and Developments" (updated 03/12/07) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_trade/pilot_program/latest_news.ctt/latest_news.doc