The U.S. Customs and Border Protection (CBP) recently released detailed guidelines for determining minimum bond amounts. The guide can be found on their website here. This new guide is a step towards standardizing the process for setting bond amounts across most bond types. CBP has worked to streamline the methodology for determining bond amounts, collaborating with … Read more
One of the services C.A. Shea (Shea) has traditionally provided for our clients has been the filing of the Customs form 5106. On February 17, 2023, new Customs (CBP) regulations will become effective that will dramatically impact the way 5106 data may be presented to CBP.
Customs and Border Protection (CBP) has announced an update to the 5106 form effective March 18, 2019. CBP has been working on this new 5106 form for the past few years. Our office has provided input on this form several times, which has impacted the final form. This new form is quite different than the … Read more
On March 8, 2018 the President issued proclamations to increase the tariffs/duties owed on the importation of steel and aluminum articles into the United States. These changes have caused some concern in the U.S. Customs and Border Protection (CBP) world, especially regarding the bond amounts for continuous Importer bonds. Since these changes can be quite … Read more
CBP periodically monitors the sufficiency of active bonds they have on file. If they find that an active Importer bond is not sufficient according to it’s published directive, which is based on the import activity of the principal, they may do one of two things. (1) In the event that CBP feels the current bond … Read more
Do you have construction clients who work, or will be working, at an international airport? If so, they may need an Airport Security bond before they start the job. According to Customs: “Customs security area” means the Federal inspection services area at any airport accommodating international air commerce designated for processing passengers, crew, their baggage … Read more
A Custodian of Bonded Merchandise bond, activity code 2, covers various types of operations for companies transporting or holding goods that have not yet entered the commerce of the United States for export or entry at a later time or place; also known as “Bonded Merchandise.” Operations such as bonded warehouses, cartmen, carriers (long and … Read more
It has become ever more important for bond principals to keep their Customs bonds up to date. In the last few years, Customs and Border Protection (CBP) has initiated a number of policies that can have a serious effect on your client’s ability to operate. One of the most consequential policies is their “bad address” … Read more
Before eBond went into effect, an entity’s name and/or address on file with CBP for a continuous bond could only be updated by filing a rider along with the 5106 form. Neither the address, nor the name, could be changed without the consent and formal acknowledgement by the principal and surety company, as the rider … Read more
Given the impact that incorrect information on file with CBP can have, it is important that brokers and principals be aware of the options available to them. One such option is the “Freeze Program,” which CBP has had in effect for many years, which could help the principal control the information CBP has on file. … Read more
