CBP Issues Final Rule on Centralization of Continuous Bond Program

CBP will adopt a final rule on the centralization of the agency's continuous bond program that doesn't include several previously proposed provisions, CBP said in a notice (here). A CBP proposal in 2010 (see 10011105) mentioned numerous changes that the agency decided to avoid due to other regulatory updates, it said. The agency also added some new changes in response to public comments it received, CBP said. The rule is effective Dec. 14.

CBP proposed in 2010 to revise CFR 113.11 and 113.12 to require additional information for continuous and single transaction bonds (STBs), but decided to change course, it said. "Upon consideration of comments received from the public in response to the proposed rulemaking, and in light of CBP’s ongoing efforts concerning the development of electronic bonds, CBP has determined not to proceed at this time with certain proposed regulatory changes relating to the application, approval, and execution of bonds," it said. Now, CBP will only change the regulations to say continuous bonds can be submitted by email or fax and will be approved by the director of CBP's Revenue Division. The regulations will also change to say paper STBs can be filed at the Revenue Division or port director and STBs can be approved by the Revenue Division director or the director of the port where filed, CBP said.

CBP also decided to forego a proposal to remove the time period for rectifying a bond insufficiency altogether, currently set at 30 days, it said. CBP will instead "reinstate a prescribed time period within which a principal must remedy the bond insufficiency," said the agency. "CBP views a 30-day response period as too lengthy to adequately protect the revenue and ensure compliance with applicable law and regulations, and therefore this provision is amended to prescribe a 15-day period." CBP also largely declined to adopt, other than some technical language changes, its proposed revisions for bond riders, effective date of bond terminations, replacement bonds and bond for suspected counterfeit goods sample, it said.

The final rule also liberalizes the existing procedure "by which agents or attorneys acting for a corporate surety may identify themselves to CBP by permitting the submission of a surety-generated 9-digit alphanumeric identification number as a substitute for submission of a social security number," CBP said. CBP also revised the regulations to say both STBs and continuous bonds can be submitted to CBP as an email attachment or by fax. CBP also updated its regulations to reflect a provision of the Miscellaneous Trade and Technical Corrections Act of 2004 that extended "the time to file and amend a protest from 90 days to 180 days after the date of liquidation or reliquidation, or date of the decision, order, or finding," said the agency.

CBP also noted that the ongoing "eBond test is separate and distinct from this bond final rule." The eBond test "pertains to electronic bonds that are not submitted on the CBP Form 301 and that are transmitted through an electronic data interchange to [the Automated Commercial Environment[ to secure a limited subset of ACE entry types," said CBP. "The bond regulations contained in this final rule, however, pertain to all entry types and provide for the filing of both continuous bonds and single transaction bonds primarily on the CBP Form 301." Participants in the eBond test (see 1411260026) are exempt from a number of regulatory provisions that conflict with the terms of the eBond test, said CBP.

(Federal Register 11/13/15)