Cited below are some the most common violations seen by our office by bond type. The majority of the violations giving rise to the issuance of liquidated damage penalties by CBP are the result of missed deadlines. Bond principals should always look for ways to create fail-safes and streamline compliance.
Activity Code 1: Importers, make sure your entries are filed and paid timely. Most claims stem from not filing entries or paying estimated duties late. A strict adherence to the deadlines given by Customs is essential in claim prevention.
Activity Code 2: Truckers, make sure your Immediate Transportation and Transportation for Exportation Entries have been closed out timely and properly.
Activity Code 3: Airlines make sure your Customs/passenger user fees are reported quarterly and timely. Also take steps to ensure personnel are not entering Customs secured areas without clearance. International Carriers, make sure your cargo manifests are transmitted accurately and timely.
It is also imperative for bond principals to timely respond to liquidated damage claims issued by CBP. Failure to do so will not only result in increased assessments by CBP for not timely responding to the claim but will cause CBP to make claim against the bond. Depending on the frequency and delinquency of claims against bonds, the claim activity may result in termination of the bond by the surety or additional underwriting requirements for future renewals. We can often assist brokers and their bond clients with questions or concerns regarding claims and understanding the claim process to aid in claim avoidance.