CBP to Reject Bond Forms, Bonder Riders Submitted with Any Liability Language Effective February 11, 2008
U.S. Customs and Border Protection's Revenue Division Bond Team has posted its February 1, 2008 issue of Current Issues, which has been updated to provide an effective date for the rejection of CBP 301 (bond) forms or bond riders submitted with extraneous liability limitation language.
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(In July 2007, the Revenue Division Bond Team issued a Current Issues informing the trade of concerns surrounding bond forms containing "liability limitation" language associated with the surety or surety agent. The Revenue Division advised at that time that all bond forms containing any extraneous liability limitation language would be rejected beginning on an undetermined future date.
At that time, CBP stated that any bond form submitted to the Revenue Division in which a printed limit of liability on the form is less than the liability amount of the bond or greater than the specific agent and surety limits recorded with CBP would be rejected. See ITT's Online Archives or 08/03/07 news, 07080305, for BP summary.)
Bonds/Riders Submitted with Liability Language to be Rejected Effective February 11th
The Revenue Division states that this updated Current Issues serves to inform the trade community that effective February 11, 2008, any bond form or bond rider submitted to the Revenue Division which contains any liability limitation language (whether or not that language matches the power of attorney information currently on file with CBP) will be rejected.
(Current Issues continues to contain information on the withdrawal of continuous bond submissions that have been in "reject" status for more than 30 days; riders and termination requests for all continuous bonds (activity code 1A, 2, 3, 4 and 5 bonds); Canadian province codes; bond submissions via fax; and continued use of insufficient bonds.)
CBP Revenue Division Bond Team's Current Issues (dated 02/01/08) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_trade/pilot_program/news_develop/current_issues.ctt/current_issues.doc