NAS/WIIC: Press Releases

Customs Bond Centralization
01 Oct 2003

Backround
In an effort for the Bureau of Customs and Border Protection (“CBP”) to meet its objectives of uniformity, bond sufficiency and efficiency, they have established a prototype for the centralized filing of Customs bonds at the National Finance Center (“NFC”) in Indianapolis. Their mission statement states that the highest priority for this program is to provide superior customer service while maintaining the statutory and regulatory requirements related to the CBP mission.

The decision to move the bond filing to the NFC in Indianapolis is a result of a bond study performed by an outside contractor. The bond study found that many bonds were insufficient. The NFC has analysts that can perform sufficiency reviews to ensure that an importer’s bond amount is adequate. The sufficiency review will not only take account of the importer’s paid estimated duty in the past year, but will include anti-dumping duty, countervailing duty, liquidated damage claims, supplemental duty bills, and other agency requirements (i.e. FDA).

The Process
The centralized filing will include the filing, approval and maintenance of all Continuous Transaction bonds.

Ø Filers will submit the bond application, CF5106, and CF301 via fax, mail, or as an electronic attachment.(*i)

Ø Upon receipt of the above, CBP will perform a review of the application and CF301. (*ii)

Ø If all documents are acceptable, CBP will process the bond in the Automated Commercial System ("ACS") to establish a bond number (control number).

Ø CBP will then fax or mail the approved bond copy to the filer, surety, and principal.

Ø Anticipated turn around time for an approved bond is two business days (i.e. if a bond is filed on a Friday, it will be in effect on the following Tuesday).

Ø If a bond is rejected, the response time will be one business day. CBP will provide reasons for bond rejection so the bond may be re-filed.

Ø All approved bonds will be maintained in two locations after imaging by a local vendor. All bond records will be maintained indefinitely.

The Prototype
The following ports are included in the prototype: St. Albans, Chicago, Buffalo, Los Angeles Seaport/Long Beach, and Seattle.

The prototype will run through the end of 2003, with all ports moving into this process at the beginning of 2004.

Details

Ø CBP requires the front and back of the CF301 to be filed.

Ø All bond numbers will begin with “99” when they are filed at the NFC.

Ø The filer will retain the original bond copy. There is nothing in the regulations that states that CBP requires the original bond for claims and litigation purposes.

Ø If a bond copy is requested, CBP will provide a copy (through FOIA for third parties).

Ø All terminations, riders, termination/refiles will be included in the two day response time.

Ø Bonds may be filed up to 10 days prior to the effective date.

Ø CBP is in the process of re-writing 19CFR113. Once written, there will be a notice of proposed rulemaking and a 30-day comment period. The main purpose is to change the bond authorizing party to the NFC from the current authority of the port director

[*i] At this time, CBP is unable to retrieve an electronic image of a bond. This will be phased in at a later date.

[*ii] For purposes of the prototype, all bonds will still be filed in the port. The port will then fax the application, CF5106 and CF301 to the NFC after the port approves the bond. The NFC will respond directly to the filer. This is required until Customs and Border Protection re-writes 19CFR113.