CBP Notice on Resolving Insufficient Bonds Due to Undeliverable Mail
On November 1, 2010, U.S. Customs and Border Protection posted a notice about resolving issues related to continuous bonds rendered insufficient due to returned mail.
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The current policy of CBP’s Revenue Division is that upon receipt of mail returned as ‘undeliverable’ by the U.S. Postal Service, the Revenue Division renders the continuous bond insufficient immediately.
Instructions for Rectifying Insufficiencies Due to Bad Addresses
In order to rectify such an insufficiency, CBP states that the importer must take one of the following actions:
Verify mailing address via ABI, ACE. The importer may verify that the mailing address currently on file with CBP is correct by querying that address via ABI or ACE.
If address correct, write CBP. If the address currently on file with CBP is correct, the importer should submit a short letter to the Bond Team specifying their current address and certifying that they receive mail at that location. This letter should be on company letterhead and signed by an officer of the company. It should be faxed to (317) 298-1042, or emailed to cbp.bondquestions@dhs.gov.
Regardless of how it is submitted, this response should clearly indicate in the subject line "Bad Address / Bond Insufficient". When CBP receives this documentation, the Revenue Division will return the bond to sufficient status and make one more attempt to send mail to the address.
If address wrong, file CBP 5106/rider. If the mailing address currently on file with CBP is incorrect, the importer must file a properly executed CBP 5106 form and an Address Change bond rider (if there is any change to the physical address). The CBP 5106 form should show both a mailing and physical address even if they are identical. These documents should be faxed to (317) 614-4517, or emailed to cbp.bondquestions@dhs.gov.
Regardless of how they are submitted, the cover sheet should clearly indicate in the subject line "Bad Address / Bond Insufficient". Please note that a bond rider is only required if the physical address is being added or updated.
The bond will be returned to sufficient status after the processing of the above paperwork has been completed. CBP states that the trade should allow 5 business days from date of receipt for processing.
Trade Encouraged to Work with Sureties, Take Corrective Actions Promptly
CBP strongly encourages the trade community to work closely with their surety to receive notification of any pending issues which may impact their continuous bond sufficiency. Failure to receive those notifications, or to promptly take the necessary corrective actions, will lead to the insufficiency of the continuous bond.
Additional information can be located on CBP’s Cargo Systems Message Services (CSMS).
(CBP notice, dated 11/01/10)