CBP Posts Another "Latest News and Developments" on Processing Bond Applications, Etc. (Activity Code 1 Continuous Bonds)
U.S. Customs and Border Protection (CBP) has recently posted a March 27, 2006 version of its guidance document entitled "Latest News and Developments," which provides information on the Pilot Bond Centralization Program and current issues, policies, and procedures for processing Activity Code 1 continuous bond applications. (See ITT's Online Archives or 03/08/06 news, 06030825, for Part VI, the final part of BP's series of summaries of CBP's February 13, 2006 version of its "Latest News and Developments" guidance document.)
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This is Part I of a multi-part series of summaries regarding CBP's March 27, 2006 version. See future issues of ITT for additional summaries.
Highlights from the March 27, 2006 Version
The following are "highlights" of the changes made in CBP's March 27, 2006 version of its guidance document for Activity Code 1 continuous bonds. Subscribers should consult the March 27, 2006 version for complete details.
CBP is experiencing approximately 80% bond approval rate. CBP has amended the general information in its guidance document by adding a paragraph stating that CBP is experiencing a high degree of bond approvals (approximately 80%) without further review or handling required. CBP states that each updated "Latest News and Developments" communication is meant to keep all interested parties up to date on the Activity Code 1 continuous bond business process and applicable changes and/or clarifications involved.
Rejection of bonds other than Activity 1 continuous bonds. CBP continues to state that at this time there has been no change regarding its processing of Activity Code 1A, 2, 3, 3A, 4, or 5 continuous bonds or processing of single transaction bonds, which will continue to be processed by the ports. CBP newly states that the Revenue Division Bond Team will reject erroneous submissions of these bonds through the normal bond rejection process.
(Previously, CBP had stated that this team would not acknowledge receipt of a bond application that had been incorrectly submitted to its office.)
Only two ports have transferred all underlying Activity Code 1 continuous bonds to the Revenue Division. CBP continues to state that port personnel will process bond rider requests when the underlying Activity Code 1 continuous bond is on file at that port. CBP newly states that to date, the only two ports that have transferred all underlying Activity Code 1 continuous bonds to the Revenue Division are St. Albans and Chicago. CBP notes that filers should contact the original port to determine if the bond has been transferred to the Revenue Division.
Activity Code 1 continuous bond submissions and inquiries may be made by mail (in addition to fax and email). CBP amends its previous instructions regarding bond submissions and inquiries by adding an address for submitting new Activity Code 1 bond submissions via mail (in addition to fax and email).
(Previously, CBP had only provided for bond submissions via email attachment and fax and stated that any submission to the Revenue Division Bond Team that was not received via fax or email per its instructions (with an exception for responses to rejected applications) would not be processed.)
Email page count, illegible faxes, ACE queries. CBP continues to recommend that filers submit bond applications as email attachments, and now further recommends that the number of pages of each attachment be provided in the body of the message.
CBP has also revised certain text to note that the Revenue Division Bond Team is receiving a high number of illegible faxed bond submissions requiring rejection to the respective filer.
In addition, CBP has amended its instructions to state that bond filers should utilize Automated Commercial Environment (ACE) queries, in addition to ABI queries, on a regular basis as the primary mechanism to learn of continuous bond approvals.
"Clarifying" instructions for submitting email correspondence. CBP also makes "clarifying" changes to its instructions for submitting email correspondence to the Bond Team. CBP also now states that for email regarding replacements, the subject line of the email must begin with the word "NEW."
Latest News and Developments (dated 03/27/06) available at