November 30, 2015
CBP Issues Final Rule on Continuous Bonds
U.S. Customs and Border Protection (CBP) issued a Final Rule for its bond program effective December 14, 2015. The updated bond regulations have shortened the bond insufficiency notification period from 30 days to 15 days. Significantly, however, CBP has informally advised that it will retain the existing 15 day buffer period (running from the date on which the new bond is due to be obtained to the actual date, 15 days later, when the old bond is deactivated). While the regulations provide for a much shortened period, the practical effect is that the amount of time an importer will have to obtain and activate the new bond goes from 45 days to 30 days (from the date of the notification letter) rather than from 45 days to 15 days.
This shortened timeframe requires principals to act quickly upon CBP’s request and gather any potential underwriting requirements that may be necessary for the bond increase. CBP may provide letters of insufficiency directly to principals at the address on file with CBP and a copy is typically provided to the surety. Avalon provides any copies of insufficiency letters to the existing broker of record on the bond to assist with managing this process timely.
Avalon encourages customers to act on insufficiency notices immediately. Web Merlin™ offers a bond sufficiency calculator and automated features to notify you of Activity code 1 import bonds that may have an inadequate limit. Avalon’s secure internet portal offers many valuable features to manage all your Customs bonds including integration with eBond. Web Merlin allows for electronic filing of continuous bonds, riders, termination, and single transaction bonds for ACE entries. Contact an Avalon representative to learn more or demo what Web Merlin can do for you.
Read the full Federal Register here.