CBP Clarification Regarding Customs Brokers and the Periodic Monthly Statement Bond Rider Requirement
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message regarding Customs brokers and the Periodic Monthly Statement (PMS) bond rider requirement.
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CBP states that within the last month it has received calls from brokers with Automated Commercial Environment (ACE) accounts who have claimed to have obtained PMS riders on their importer bonds. CBP states that the brokers believed the rider was required in order to flag entry summaries for PMS on behalf of importer clients, even though the brokers intended to clear the shipments under the client's bond.
CBP states that in this scenario, the broker does not need to have a PMS rider on its importer bond. Only the importer client would a need the bond rider. However, CBP notes that the broker needs to have an ACE broker account.
CBP states that it has also heard from approximately 20 brokers who have not yet obtained riders for their importer bonds but thought they needed to obtain riders. A couple of these brokers did not presently have importer bonds and claimed to have no desire to obtain an importer bond unless it is a requirement to flag entry summaries (using the client's bond) for PMS. CBP states again that in this case although the broker must have an ACE broker account, it does not need to have a PMS rider on its importer bond - only the importer client would need the bond rider.
(CBP sources have previously stated that an importer that wants to participate in PMS must first be an ACE importer account and add the applicable rider to its bond. In addition, such importers may use any Customs broker that is an ACE broker account. See ITT's Online Archives or 09/14/04 news, 04091405, for BP summary on CBP's opening of the ACE portal test to all Customs brokers and the issue of bond riders.)
CBP Adm: 05-0684, dated 06/22/05, available at
http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2005/2005-0684.ADM.
BP Note
CBP has recently posted to its Web site its ACE status briefing (updated as of June 7, 2005) that was presented during the ACE Ambassadors Coordinator's Conference. According to this presentation, one of several changes being proposed to reduce the barriers to participation in PMS is the elimination of the requirement for the additional bond rider for PMS participation.
ACE Ambassadors Coordinator's Conference presentation, dated 06/7-8/05, available at