Blog

A Disadvantage of Co-Principals on a Customs Bond from a Claim Perspective

To further expand on the disadvantages of co-principals on a customs bond, unfortunately, when Customs issues a notice of penalty, liquidated damage, supplemental duty bill or other violation notice on a bond with multiple co-principal’s, there may be confusion as to which entity on the bond is liable for the claim. In certain instances as … Read more

Listing Multiple Principals on the Same Bond

Occasionally, companies express an interest in listing more than one entity on a bond. In these situations, Customs does allow separately incorporated entities to be listed on the same bond as co-principals as long as the entities each have the same distinct legal status, such as corporations, partnerships or sole proprietorships.  It is important for a … Read more

Trade Alert: Late petitions to result in sharply higher claim payments as CBP issues amended guidelines for the acceptance of untimely petitions and mitigation of claims.

CBP has announced effective January 9, 2013 it will be amending the guidelines for the acceptance of untimely petitions and mitigation of claims replacing the previous guidelines.  After a liquidated damage claim is issued, an importer may file a petition for relief within 60 days to request the claim be lower based on mitigating circumstances … Read more

Annual Carnet Bonds

In our office’s November 3, 2011 newsletter our office included an article on Carnet bonds. As a reminder, the use of a Carnet allows a principal to avoid posting of financial security at the time of entry, eliminates value added taxes (VAT) and simplifies customs procedures. This is done under the premise that the goods … Read more

Shea Broadens It’s Surety Markets with the Addition of Three New Sureties

We are pleased to announce that Shea has been approached and has entered into relationships with Arch Insurance Group, Aspen Specialty Insurance and Philadelphia Insurance Companies to provide Customs bond support for their valued surety accounts and producers.  With the continued expansion of sureties into the marketplace, it has become increasingly important for the newer … Read more

Timely Compliance is Key to Avoiding Many Liquidated Damage Claims with CBP

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 … Read more

Terminating a Customs Bond

While many other lines of insurance can be terminated on any day the client chooses, Customs bonds require sufficient advance notice and some forethought before being cancelled. The two most common ways to terminate a Customs bond is by a request from the principal, or at the request of the surety. When a principal would … Read more