CBP updates 301 bond form
New bill proposed to fight fraud in trucking
red-flag fraud, by Andrew Spector, Esq.
identifies cargo theft trends
proposes increase in FMC optional bond rider
Updates on liquidated damages for Periodic Monthly Statement
CBP updates mitigation guidelines for
advance cargo information violations
U.S. government urges companies to
strengthen Internet security
associations ask NHTSA to examine truck crashworthiness
CBP updates 301 bond form
In July 2011, U.S. Customs and Border
Protection (CBP) issued an update to its 301 form, the
multipurpose document used to issue Customs Bonds. To view
the updated form, visit
CBP will continue accepting existing
versions of the 301 bond form until Jan. 1, 2012. Avalon is
proactively updating our Web Merlin™ secure Internet portal
and printed bond forms to provide for use of the new bond
document on Monday, Dec. 5, 2011. Avalon will send an email
reminder to all Web Merlin users prior to implementing the
new bond form in our software. We are also coordinating with
various ABI vendors to ensure the new 301 bond will begin to
issue on Monday, Dec. 5.
We have been working closely with CBP’s
Revenue Division to answer any questions our clients have
about the new bond form and are building business rules in
Web Merlin to continue to proactively avoid bond rejections.
Avalon has consistently maintained rejection rates well
below the industry averages reported by CBP.
While Avalon will continue to provide
paper bond forms for those customers that need them, we
encourage you to “go green” and use our Web Merlin software
to issue and manage all single transaction, ISF and
continuous bonds seamlessly in one system. We currently
enjoy a 0% rejection rate on ISF bonds and are the surety
test pilot for eSTB in ACE.
As first reported in our
July 29, 2010 Special Quest, the various ports have been
rejecting single transaction bonds (STBs) for not being in
compliance with current regulations. Since then, the
Department of Homeland Security has issued an
OIG report that stated CBP did not have adequate
controls over the STB process. Web Merlin has been updated
to issue bonds in compliance with STB regulations and can
help you avoid costly and time sensitive rejections at the
Alternatively, we can work with your
ABI vendor to implement a PDF bond solution rather than a
pin-fed bond form and/or integrate your ABI with our Web
Merlin software. If you have any questions about updating
the new bond form within your ABI system, please contact
your local Avalon representative or our IT Department at
The most significant update to the new
301 bond form is the addition of Activity Codes, as the
previous form only included Activity Codes 1 through 10.
Going forward, the following Activity Codes can also be
bonded on the updated 301 form vs. a separate bond form that
was previously required by CBP:
- Activity Code 11: Airport Security Bond – Part 113,
Appendix A. CBP will soon issue a Federal Register
notice to allow this bond to be issued on a continuous
- Activity Code 12: International Trade Commission
(ITC) Exclusion Bond – Part 113, Appendix B.
- Activity Code 14: In-Bond Export Consolidation Bond
(IBEC bond required in Port of Miami).
- Activity Code 15: Intellectual Property Rights (IPR).
- Activity Code 16: Importer Security Filing (ISF) –
Part 113, Appendix D. After our bond forms are
updated in Web Merlin on Dec. 5, brokers will continue
to issue a separate ISF-D bond as they do now (unless
filing a unified entry) and the bond will issue on the
new 301 form and automatically email to the ISF inbox as
currently performed by Web Merlin.
changes include a new Co-Principal Addendum Form 301A that
must be used if more than one co-principal is to be included
on the bond. On Dec. 5, Web Merlin will also be updated with
this new addendum rider. This form can be found at
always taken a hands-on approach to understanding CBP
regulations and keeping our bond program as easy and
efficient as possible. To help you avoid bond rejections,
our CBU is also available to review bond application
packages prior to filing them with the Revenue Division.