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Automated Bond Program Test Clarified, Modified

Wednesday, January 07, 2015
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a general notice making a number of changes to its newly launched test of the eBond automated bond system. These modifications and clarifications concern the method by which continuous bonds executed prior to or outside of the eBond test may be converted to eBonds, a surety or principal’s ability to terminate an eBond, the identification of the principal on an eBond by the filing identification number, and an email address correction.

The eBond test began Jan. 3 and is scheduled to run for approximately two years. The eBond system is intended to establish a single repository for the centralization of all eBonds within the Office of Administration’s Revenue Division, harmonize and enhance CBP’s bond processes, and eliminate flaws in the execution of customs bonds that may lead to increased legal risk for CBP. It is anticipated that the eBond test will reduce paper processing, expedite cargo release, allow for bonds to be transmitted beyond regular CBP business hours, and enhance traceability for audit purposes.

The modifications and clarifications being made to the eBond test are as follows.

- participating sureties and surety agents acting on behalf of the sureties and principals may convert pre-Jan. 3 continuous bonds and other continuous bonds executed outside of the eBond test (paper continuous bonds) into eBonds subject to specified rules

- a participating surety or surety agent may transmit, via EDI, the following types of limited changes to the terms and conditions of an active paper continuous bond accessible in the eBond system: an addition eBond rider, a deletion eBond rider, a U.S. Virgin Islands eBond rider, and termination of the eBond or a reconciliation eBond rider

- the CBP filing identification number, not a name, will be the method of identifying the principal on an eBond

- a surety wishing to terminate an eBond must notify the principal(s) at the same time notice of termination is sent to CBP

- a surety may request that a termination go into effect sooner than the prescribed 15 calendar days from the date of the termination notice if the surety can establish, to the director of the Revenue Division’s satisfaction, that good cause exists for terminating the eBond in lesser time

- a principal may terminate an eBond on which it is obligated by means of emailing a termination request to CBP

- technical questions may be emailed to John Everett, Entry Summary, Accounts and Revenue Branch, ACE Business Office, Office of International Trade

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