CBP Updates Bond Policies Document, Including ISF, IPR Bonds

The document has been revised to include additional information on the centralization of bonds at the Revenue Division in Indianapolis, information on the Importer Security Filing (ISF) and Intellectual Property Rights (IPR) bonds, foreign addresses, etc. (It is likely that the document was last revised in May 2008.)

The following is an overview of the updated document:

Current Rejection Rate for Incoming Bond Submissions is Less Than 10%

The current rejection rate on incoming bond submissions is less than 10%.

Bonds Centralized at RD, All New Continuous Bonds are Processed by RD

In an effort to establish a more efficient and effective bond program, the Continuous Transaction Bond program has been centralized at the Revenue Division in Indianapolis, Indiana. The bond centralization effort includes the filing, approval and maintenance of all Continuous Transaction and Airport Security bonds.

All new continuous bonds, including Airport Security, ISF, and IPR sample bonds are processed exclusively by the Revenue Division Bond Team. These bond submissions should be filed directly with the Revenue Division. They should not be accepted by Port personnel. Port personnel will no longer be involved in the processing of new continuous or term bonds, and will not be involved in resolving any issues that may arise with these applications.

Continuous ISF Bonds Processed by RD, Single ISF Bonds Received by RD

Continuous ISF bonds are currently processed by the Revenue Division. CBP sources note that both single and continuous ISF bonds should be submitted to the Revenue Division. The Revenue Division receives both types of bonds, but only processes and assigns a number to continuous ISF bonds.

Continuous ISF bonds are to be sent to the following email address: cbp.bondquestions@dhs.gov. ISF STBs are to be sent to: ISF_Bond@cbp.dhs.gov.

Single Transaction Bonds Processed at Port

At this time, there has been no change with regards to the processing of single transaction bonds. STBs - other than those specifically associated with ISF or ACE entry summaries - will continue to be processed by the Ports. The Revenue Division Bond Team will not process or even acknowledge erroneous submissions of any bonds which should be filed at the Port. It is the principal’s and/or bond filer’s responsibility to file bond documentation appropriately (that is, per the instructions contained in the document).

Rider, Termination of Bond Can be Processed by RD

Any rider or termination of any bond can be processed by the Revenue Division. Any rider or termination of any bond must be filed directly with the Revenue Division at the National Finance Center.

All Continuous, Term Bond Submissions Must be Submitted via Email

All continuous and term bond submissions must be submitted via email to cbp.bondquestions@dhs.gov. It is highly recommended that bond applications submitted as email attachments utilize the TIF formats with a dpi no larger than 300. The Bond Team recommends that filers submit bond applications via email and consolidate all documents in a single attachment. The Bond Team will accept bond applications up to 60 days before the desired effective date.

General questions about bond processing, as well as specific questions about the status of a particular bond application should be directed to (317) 614-4880, or via email to cbp.bondquestions@dhs.gov. After a bond application has been referred for rejection, any questions about that application should be directed to the Reject Team by leaving a voicemail at (317) 614-4881.

Complete Bond Application Packages Include Email, 301 & 5106 Forms, Etc.

A complete bond application package must include the following:

Email - An email listing the name, phone number, fax number, and email address of a point of contact for the application must be supplied. In addition, the email address of the principal(s) and surety must be a part of the contact information.

Application letter - An application letter must be provided pursuant to 19 CFR 113.12. This letter must include the signature, printed name and title of the person signing, the date the application letter was completed, the total duties/taxes/fees paid by all companies listed on the bond in the previous 12-month period, and the “I certify” statement. If the importer is new, or has no recent history of imports, then an estimate of the duties/taxes/fees that will be paid over the next 12 months should be provided.

CBP Form 301 (front and back) -- This form must be fully and accurately completed. It must show the legal designation of any corporate principals & sureties (see note #4 on the back side of the form).

CBP Form 5106 - A completed CBP Form 5106 is required if an importer record listed on the CBP Form 301 needs to be added to the CBP database or changed in any way.

Power of attorney - A power of attorney is not required for every bond application submission. However, a copy may be requested by the Bond Team. Providing the power of attorney as requested will expedite review and approval of the bond.

CBP to Send Bond Approval Emails within 5 Business Days After Approval

Notifications of bond approvals will be issued via email five business days after approval of the bond, if valid email addresses are provided for the principal(s) and surety. If valid email addresses are not provided, notifications of bond approvals will be issued within six months after approval of the bond via the U.S. Postal Service. The standard notification process for a new bond approval consists of mailing a copy of the approved CBP 301 to each principal, and providing a copy of the approved CBP 301 to the surety. Filers who provide their email address will receive a copy via email only. Parties with access to ABI or ACE should query via those systems for immediate notification of bond approvals.

Amendments and Withdrawals of Bond Submissions

Amendments to pending new bond applications (unless they are appropriately submitted in response to a rejection notice) will be ignored or treated as a new bond submission. The Bond Team will not attempt to match amendments or revisions with the original bond submission unless those amendments are submitted pursuant to a rejection.

The Bond Team has noticed an increase in the number of requested withdrawals of pending bond submissions. At this time, the Bond Team will ignore all such requests. It is the bond principal’s and/or bond filer’s responsibility to insure that a continuous bond is needed, and an application is accurate prior to submission of the bond paperwork to CBP. Some submissions may be formally withdrawn after they have been rejected.

RD Does Not Accept Continuation Certificates for Continuous Bonds

The Revenue Division does not accept continuation certificates for continuous bonds. Continuous bonds renew automatically until and unless terminated, pursuant to the appropriate regulation.

Tips for Filers to Submit Complete Foreign Addresses

ACE allows CBP to collect additional information with regard to foreign addresses. This additional information improves the likelihood of ‘successful’ mail delivery to foreign countries. When submitting a CBP Form 5106 for a foreign address, the filer should ensure they provided the complete address. As many countries have provinces and zip codes, the filer should ensure that this additional information is provided. CBP asks that filers utilize the second line of the address on the form to include these province names; especially for addresses in Mexico and China.

¹CBP sources have stated that this document, along with the "Current Issues" document, replaced its previously issued guidance entitled, "Latest News and Developments." The "Current Issues" document provides the latest news, while the "Policies and Procedures" offers information about polices and procedures that are in place.

(See ITT's Online Archives or 01/22/10 news, 10012205, for BP summary of CBP officials discussing the requirement to send certain ISF bonds to RD.)