CBP to Limit Use of Continuous Bonds by Debarred Entities

People or companies that are debarred or suspended by CBP aren't allowed to use a continuous bond for customs activity "unless a continuous bond is the only form of bond acceptable for that activity," CBP said in a May 21 CSMS message. Effective May 11, Acting CBP Commissioner Troy Miller "revoked the authority of all CBP officials to permit a person who is suspended or debarred by CBP to meet the bond requirements of any customs activity using a continuous bond, for the duration of that person’s suspension or debarment," CBP said. For entities debarred or suspend by other federal agencies, "the Office of Trade, Trade Policy and Programs, is authorized to evaluate and decide, either categorically or on a case-by-case basis," whether the use of a continuous bond is allowed.

The CBP "Office of Finance, Revenue Division, will provide written notice to any person suspended or debarred by CBP or any person suspended or debarred by another Federal agency that CBP has decided not to permit use of a continuous bond to secure that person’s customs activities, and that person’s continuous bond surety (as applicable), at least 15 calendar days prior to the first customs activity that cannot be secured by a continuous bond under this policy," the agency said. CBP said sureties and surety filers should make sure that new continuous bonds are not filed in the ACE eBond module for entities that aren't allowed to use such bonds.

The Revenue Division will also monitor for bonds "not terminated after issuance of the written notice" and for any new or replacement continuous bonds filed by the debarred or suspended entities. "Consistent with existing CBP regulations and policy, persons not permitted to use a continuous bond are still permitted to use single transaction bonds or cash in lieu of surety (for single transactions only) to engage in customs activities. CBP officials remain authorized to take additional actions as authorized by law, regulation, or agency policy when the circumstances so warrant, such as requiring additional bonding to protect the revenue or to ensure legal compliance," CBP said.

The CSMS message included an attachment on how to find excluded entities on System for Award Management. The agency plans to also issue a list of frequently asked questions and will update the ACE Entry Summary Business Process Document.