CBP Lists Most Common Errors That Cause the Rejection of Continuous Bond Applications
U.S. Customs and Border Protection (CBP) has posted a list of the most common errors that cause the rejection of continuous transaction bond (continuous bond) applications and CBP's desired solutions for these errors.
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CBP sources state that this list was developed by its Bond Team and is the result of its review of the continuous bond applications that have been submitted as part of CBP's Pilot Bond Centralization Program.
(In September 2003 CBP began a Pilot Bond Centralization Program at its National Finance Center (NFC) in Indianapolis, IN for continuous bonds submitted to the ports of St. Albans, VT; Chicago, IL; Buffalo, NY; Los Angeles/Long Beach Seaport, CA; and Seattle, WA. Under the pilot, the participating ports fax the submitted continuous bond information to the Bond Team at the NFC so it can be reviewed, processed, and maintained in the automated system.
CBP has stated that this pilot is expected to continue until regulatory changes are in place and the program is implemented nationwide, which is targeted to occur during calendar year 2004. (See ITT's Online Archives or 10/14/03 news, 03101410, for previous BP summary on this pilot program.)
CBP's Bond Team states that the following are the most common errors it has found that lead to the rejection of continuous bond applications (see CBP notice for solutions, as applicable):
on bond applications, duties, taxes, and fees paid for the previous year or estimated duties, taxes, and fees for the next year are missing;
inappropriate signatures on the CF 301;
the bond application fails to disclose required information for all users listed on the bond;
illegible or incomplete bond applications by principals;
the importer number and information in the Automated Commercial System (ACS) does not agree with the information indicated on the CF 301 and/or bond application;
the back (2nd page) of the CF 301 is not received;
the witness requirement on the back of the CF 301 is not satisfied when required;
the execution date is missing on the CF 301 or is a future date;
a valid bond already exists for the principal listed on the CF 301 provided with the new bond application;
incorrect joinder of co-principals on the CF 301;
use of incorrect Canadian province codes on the CF 5106;
resubmission of rejected bond applications;
inappropriate "lining out" or alterations made to the CF 301;
bond applications do not include fax numbers for filers, principals, or users;
when the Bond Team mails the processed CF 301 to the address provided on the bond application, CF 301 and CF 5106, the address is incorrect and the mail is returned; and
the outdated version of the CF 5106 is being submitted with the bond application.
CBP's continuous bond application issue/solution paper (revised 01/02/04) available at http://www.cbp.gov/ImageCache/cgov/content/import/communications_5fto_5ftrade/pilot_5fprogram/bond_5fissue_2edoc/v1/bond_5fissue.doc.