A GUIDE FOR THE PUBLIC: HOW CBP SETS BOND AMOUNTS
The U.S. Customs Border Protection (CBP) agency recently released a Guide for the Public: How CBP Sets Bond Amounts updating the 1991 Directive – Monetary Guidelines for Setting Bond Amounts. The revised publication is an effort to update and standardize CBP’s bond policy and administration.
“Extensive changes have occurred over the last 30 years. This includes the transition of customs functions from the Department of Treasury to the Department of Homeland Security, creation of CBP, changes to CBP’s internal handling of various aspects of bond policy and procedure, the introduction of new, and termination of unnecessary, bond requirements, and the creation of the Automated Commercial Environment (ACE) eBond test. Due to these changes, publication of this guidance is an important step along the way to updating and standardizing CBP’s bond policy and administration across the agency.”
U.S. Customs and Border Protection | Cargo Systems Messaging Service
A GUIDE FOR THE PUBLIC: HOW CBP SETS BOND AMOUNTS – KEY CHANGES
The updated guidelines include forty revisions to its bond policy and administration. These updates range from the transition of customs functions to the Department of Homeland Security to the implementation of new bond requirements and the Automated Commercial Environment (ACE) eBond test.
What are bonds?
“Bonds are required for a wide range of transactions and activities, and are the primary tool used by U.S. Customs and Border Protection (CBP) to safeguard U.S. revenue and ensure compliance with applicable laws and regulations. It is imperative that the trading public have the information needed to properly submit those bonds to CBP.”
U.S. Customs and Border Protection Bulletin
CPB released a complete summary of changes with the updated guide. Key changes include:
Transition of Customs Functions: Customs functions shifted from the Department of Treasury to the Department of Homeland Security, implementing a strategic reorganization enhancing efficiency and oversight.
Establishment of CBP: The creation of CBP signifies a significant milestone in restructuring, reinforcing the agency’s commitment to optimizing its operations and adapting to evolving security and trade challenges.
Introduction of New Bond Requirements: CBP introduced new bond requirements while eliminating unnecessary ones, to align bond policies with changing regulatory landscapes and industry needs.
Adjustment of Bond Amounts: Changes to bond amounts and rounding methods for continuous bonds offers consistency and fairness in bond administration, ensuring equitable treatment of stakeholders. The rounding convention, once limited to activity code 1a, is now effective for all continuous bonds.
Emphasis on Record Retention: The addition of a subsection on record retention with the goal of maintaining accurate and reliable documentation to promote transparency and accountability in bond-related transactions.
Updates on Bond Activity Codes: The guidance includes new information on various bond activity codes, providing stakeholders insight into bond-related procedures and requirements.
Flexibility with Cash-in-lieu of Surety: The inclusion of this section offers principals alternative bonding options.
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