The United States International Trade Commission (or ITC) is an independent, quasijudicial Federal agency with broad investigative responsibilities on matters of trade. The agency is charged with, amongst other things, adjudicating cases involving imports that allegedly infringe on intellectual property rights. When they have determined that imported goods do infringe on intellectual property rights, they may bar the importation of offending merchandise into the United States.
In many cases, the dispute on whether or not goods infringe on intellectual property rights may be elevated to the Presidential Review Commission, which makes the final determination on intellectual property rights infringement. The period in which this final determination is made is referred to as the “Presidential review period” and takes 60 days, during which the alleged infringing product may not be entered into the United States without the benefit of a bond (cash may also be used). The security guarantees that the offending goods will either be exported or destroyed in the event the Presidential Review Commission rules against the importer. Bonds must be posted for each transaction that contains offending goods up to 100% of the value of those goods (as determined by the ITC). This can amount to hundreds of bonds per day, depending on the nature of the product and volume of importation. If the ITC cannot be satisfied that the goods are exported or destroyed, the surety must pay the ITC up to the full penalty amount of the bonds (in the case of cash, it is surrendered to the ITC).
C.A. Shea has broad experience in the placement and issuance of ITC bonds. Our exclusive bond issuance platform has processed a large number of ITC bonds, with cumulative liability in the billions, across many thousands of entries, encompassing all manner of commodities. Because of the unique and complex nature of these bonds, many times clients do not even realize there is a bonding option and post cash security. The need for these bonds will often be immediate and it is critical that efficient delivery of these bonds occurs. C.A. Shea & Company, Inc, a proven leader in ITC bond underwriting and issuance technology, is committed to excellence and providing these bonds for the benefit of insurance brokers and their clients.