CBP Elaborates on Problems with STB Uniformity, Expects Bond Rule Soon, Etc.
U.S. Customs and Border Protection officials have recently discussed Single Transaction Bond (STB) uniformity, its draft bond directive, and the status of its bond centralization rulemaking.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The following are additional details from the November 9, 2010 COAC1 meeting, as well as highlights from the minutes from an October 12, 2010 COAC Bond Subcommittee conference call. (See ITT’s Online Archives or 11/12/10 news, 10111226, for BP overview of meeting, which included highlights of bond issues.)
CBP Considering Further Guidance to Ports on STB Sufficiency
The COAC Bond Subcommittee leadership continued to express concern about a CBP memorandum on single transaction bonds (STBs), which apparently resulted in differing enforcement and interpretation in the field.
A CBP official tried to reassure COAC that the document it issued was nothing more than a general reminder of the field’s authority to request additional security, and did not provide any other instructions regarding STBs. CBP’s Office of Trade is considering issuing further guidance to the ports on STBs.
CBP Has Worked with Ports to Resolve STB Uniformity, Entry Date, Signature Issues
According to CBP, certain problems have arisen from CBP communications issued by the field on how STBs are being handled. At the COAC meeting, a CBP official noted that many of the problems could be related to CBP’s centralization of bonds.
HQ clarifies policy on problem issues. CBP states that COAC brought to its attention STB issues involving (i) discrepancies with the entry date, (ii) the acceptance of facsimile signatures, (iii) a lack of uniformity at the ports, and (iv) the “lining out” issue.
CBP states that it has clarified Headquarters policy on these issues to the field by:
- Explaining to the field that the date of transaction needs to be filled in. (CBP explained to CBP personnel that this field should show the date of entry);
- Instructing the field to accept facsimile signatures. (They only need to verify in CBP systems that the surety and agent are valid and they have sufficient bond liability coverage); and
- Instructing the field not to reject any STB involving lined out information. (CBP states that it is examining this issue in the context of its final bond centralization rulemaking and will have a determination on this issue once the rule is finalized, but was not able to discuss the outcome on which way the rule may go).
Issues with interpreting date of entry. In response to a question regarding date of entry, a CBP official stated that CBP recognizes a need for some leeway in the interpretation of date of entry, given that in the CBP regulations, there are several “date of entry” scenarios which can vary up to a week, depending on when the goods arrived. The official noted that CBP attorneys state that the date of entry depends on facts and circumstances, not what is necessarily written on the CBP Form 301.
CBP Reviewing Draft Bond Directive, COAC to Comment Further
COAC has submitted its initial comments regarding CBP’s draft bond directive rewrite and CBP will work to address those comments. The draft is being reviewed by CBP’s Office of International Trade and Office of Administration. CBP will continue to work with COAC and other interested trade associations on additional revisions to the draft.
According to one CBP official, the subcommittee can expect to see three or four more versions of the draft before the directive is finalized.
(In April 2010, a CBP official informed the COAC Bond Subcommittee that CBP was undertaking a re-write/update of current CBP bond directives (Monetary Guidelines for Setting Bond Amounts, #099 3510-004 and Bond Sufficiency, #099 3510-005), in order to consolidate all of the various amendments, telexes, and procedures that exist for managing the CBP bond process into one directive. See ITT’s Online Archives or 05/03/10 news, 10050306, for previous BP summary.)
Bond Centralization Final Rule Expected Soon
At the COAC meeting, a CBP official stated that CBP has addressed all of the comments it received regarding its January 5, 2010 proposed rule to update 19 CFR Parts 101, 113, and 133 to reflect the centralization of the continuous bond program at CBP’s Revenue Division. CBP hopes to issue a final rule soon.
(See ITT’s Online Archives or 03/26/10 news, 10032615, for BP summary of comments on CBP’s proposed rule.)
CBP Expects to Soon Provide Risk-Based Bonding Data to COAC
CBP stated that it has gathered the long-awaited data on risk-based bonding and will release to the COAC Bond Subcommittee as soon as it is vetted internally.
CBP has previously stated that it would provide the COAC Bond Subcommittee with data on risk based bonds to help the subcommittee determine whether it should recommend changes to bond amounts. The subcommittee has previously looked at issues such as temporary importation bonds and textile bonds.
1Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions.
(Conference call minutes, dated 10/12/10)