Update on CBP's Continuous Bond Option for IPR Samples
During a January 19, 2010 NCBFAA webinar, a U.S. Customs and Border Protection official discussed the new continuous bond option for intellectual property rights samples that was implemented by CBP in late 2009.
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Prior to the implementation of the IPR continuous bond option, CBP had required single transaction bonds (STBs) for IPR samples. With the new option, either a continuous bond or STB can be used for IPR samples.
(CBP provides samples to trademark, trade name, and copyright owners of certain merchandise suspected of bearing infringing trademarks, trade names, or copyrights, or imports seized for such violations. To obtain such a sample, right owners must provide a bond to hold CBP and the importer or owner of the article harmless from any loss resulting from providing the sample to the rights owners.
CBP has previously stated that a continuous IPR sample bond has the advantage of covering multiple IPR sample transactions, across all ports of entry with a single bond, while allowing CBP to centrally track and administer these bonds.)
Highlights of the CBP official's remarks during the webinar include:
Continuous IPR Sample Bond Number Can be Queried in ACE
After the continuous IPR sample bond is processed, the rights holder will receive a nine-digit bond number which can be queried through the Automated Commercial Environment. (CBP can query this number to confirm that the rights owner has a continuous IPR sample bond on file and can receive the sample.)
Minimum Bond Liability Amount is $5,000
The minimum bond liability amount is $5,000 for continuous IPR sample bonds.
Continuous IPR Sample Bonds Processed Like Other Continuous Bonds
CBP processes IPR sample bonds under the same rules and guidelines as other Activity Code 1 (basic importation) continuous bonds.
(CBP has previously stated that rights holders may obtain continuous IPR sample bonds at any time by contacting the Revenue Division, Office of Finance by email at cbp.bondquestions@dhs.gov, or by phone (317) 614-4880 or by fax at (317) 614-4517. CBP states that rights owners should specifically indicate that they are requesting a continuous IPR sample bond.)
Bond Template and Other Details Available on CBP's Web Site
A sample template and other information for the continuous IPR sample bond at www.cbp.gov/xp/cgov/trade/priority_trade/ipr/.
(See ITT's Online Archives or 11/06/09 news, 09110610, for BP summary on CBP's announcement of the new continuous bond option for IPR samples.
See ITT's Online Archives or 11/10/09 news, 09111015, for BP summary of COAC's IPR priorities, including implementation of continuous IPR sample bond.)
BP Note
The continuous IPR sample bond is one of seven projects proposed by the Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC) IPR Subcommittee.