January 01, 2015
Important Changes to the 5106 due to eBond
Although there continues to be much discussion about the Federal Register Notice issued at the end of last year to substantially modify the 5106, the current form continues to be necessary in its current form. Due to the implementation of eBond effective January 3, 2015, name and address change bond riders are no longer required by CBP. Does this mean a 5106 is no longer required? No, a 5106 must still be processed with CBP so the importer’s name and address is correct within the ACE portal. eBond has also impacted how the 5106 can be processed by customs brokers. Here are some commonly received questions we are receiving that may assist you.
How Can Customs Brokers Update the 5106 Record?
With eBond, brokers can now use the 5106 to update a name and address for an importer. As per the recent CATAIR, “ABI filers can update Importer/Consignee File name and address data by placing a “U” in the Update Action Code data field of the T1 input record.” Filers can update this data for any entity that does not have a continuous bond on file. If name and address data needs to be changed for an importer/consignee already on file that has a continuous bond, this information must be updated by CBP and can be done by mailing or faxing a copy of the CBPF-5106 to CBP.
With the deployment of eBond, the Centralized CBP Bond Team in Indianapolis issued revised Procedures that include new instructions and naming conventions for how the 5106 can be filed. The new protocol to update with CBP is as follows:
- Complete and send the current 5106 as email attachment
- Email must contain a subject line that states Update IR#
- The email must be sent to email@example.com
- The email process can take up to 5 business days
When completing the 5106 record, it’s important to update both the physical and mailing address for the importer AND check the boxes to update the address for FP&F notices. Because the 5955A for a liquidated damage or penalty notice is issued by CBP from a separate database (SEACATS) that is not currently integrated with ACE, the FP&F address must also be current for the importer. If a 5955A gets returned due to a bad address, this can still render a continuous bond insufficient until the address is corrected by a 5106 (see below for proper procedure to follow when a bond is rendered insufficient).
What if my request for an eBond is rejected because there is “no importer record on file”?
This means CBP does not have a 5106 record on file for the unique importer number you have submitted, and you will need to submit a 5106 as outlined above. Any importer not already on file with CBP (which can be identified through a query of the ACE record) must file a 5106. If not filed and on record with CBP, sureties will not be able to process an eBond since there must be a match with an importer of record in ACE based on the unique FEIN#. Foreign importers will continue to receive a Customs-Assigned Number if they do not have a Federal Tax ID or Social Security Number that can be used.
Will CBP still render an importer’s bond insufficient for returned mail?
Yes, CBP will continue to do so in accordance with their Returned Mail Policy as notified by Avalon to take effect on April 8, 2014. Effective Jan. 3, 2015, a bond rider is no longer required, and CBP is updating the website to reflect these changes:
If the physical or mailing address is not correct: File a 5106 with the CBP Bond Team so the continuous bond will no longer be rendered insufficient. The following process should be followed:
- Email Subject Line: Update IR# /Attn: Dee Baskerville and Travis
- Include Importer of Record Number and Importer of Record Name
- Please see the attached UPDATED 5106 for the above mentioned principal.
- Please remove the insufficiency on this bond.
If the address is correct: The importer must prepare a letter on their letterhead and email to the CBP Bond team at firstname.lastname@example.org as outlined on website using the same protocol to send as outlined above.
What about Duty Refunds? Will CBP send to the importer of record on file per the 5106?
If importers routinely receive duty refunds, CBP also encourages the trade to complete a CBP 4811, otherwise CBP may not return the funds to the proper party.Back to Quest News™