Background

U.S. Customs and Border Protection has issued an internal memorandum providing agency personnel with guidance for verifying bond amounts for temporary importation under bond entries and requesting additional security under a single transaction bond when a continuous bond is on file but is not sufficient to cover TIB requirements.

According to CBP, the bond amounts required for TIB entries are as follows: (1) for all goods except the categories below, the bond will be in an amount equal to twice the estimated duties, including fees, determined at the time of entry; (2) for samples solely for use in taking orders entered under HTSUS 9813.00.20, motion-picture advertising films entered under HTSUS 9813.00.25, and professional equipment, tools of trade, and repair components for such equipment or tools entered under HTSUS 9813.00.50, the bond will be in an amount equal to 110 percent of the estimated duties, including fees, determined at the time of entry; and (3) for restricted/prohibited merchandise, the bond will be in an amount equal to the greater of twice the duty, including fees, or three times the value of the goods.

If a CB on file is not in an amount sufficient to meet these TIB bonding requirements, CBP may require an additional STB in an amount equal to the difference between the CB amount and the bond amount required for the TIB entry. For example, if the CB used to secure the TIB entry is for $50,000 and the bond amount required for the TIB entry is $150,000, an additional STB in the amount of $100,000 is required.

CBP further states that if an STB is needed the amount requested should be the difference between the CB and the TIB bond amount for that entry, regardless of how many entries are secured by the same valid CB. For example, if three TIB entries are submitted on the same $50,000 CB and the TIB bond amount required for each TIB entry is $100,000, the amount requested for the additional STB will be $50,000 for each TIB entry.

Notice of the required additional STB from CBP must be in writing to the importer and must contain the amount of the additional bond required as well as information about the reason for the additional bonding. Such notice can be provided via an entry summary reject notice, a cargo reject notice, a CBP Form 29 Notice of Action, or an insufficiency letter.

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