CBP Chicago Issues Policy on Customs Bonds with Facsimile Signatures, Pre-Printed Bond Amounts
U.S. Customs and Border Protection's Port of Chicago has issued a Pipeline announcing that it will reject customs bonds (CBP Form 301) with pre-printed or handstamped facsimile signatures of the attorney-in-fact under certain conditions.
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Problems with Facsimile Signatures and Pre-Printed Bond Limits
The Pipeline states that according to CBP's Revenue Division in Indianapolis, some surety companies are issuing to customs brokers, customs bonds pre-printed, or hand stamped, with the facsimile signature of the attorney-in-fact for the surety. Further, below the facsimile signature is printed a dollar amount limiting the amount the attorney-in-fact is authorized to underwrite, e.g., "Power of Attorney limited to $2,000,000. "
This practice is of concern as there have been instances when the amount of the customs bond exceeded the amount associated with the facsimile signature affixed to the bond.
"One-Time" Certification for Each Attorney-in-Fact Required
According to the Pipeline, a customs bond with a facsimile signature of the attorney-in- fact will not be accepted unless it has been verified that the surety has submitted to CBP a certified copy of the corporate resolution agreeing to be bound by the facsimile signature. Such certification is only required one time for each attorney-in-fact to the port where the bond is filed. CBP sources note that this policy is not new, but has previously been unevenly enforced.
Bond Amounts Greater than Power of Attorney Limit Will Not be Accepted
The Pipeline also states that a customs bond will not be accepted when the amount of the bond shown on CBP Form 301 is greater than the limit of the power of attorney shown with the pre-printed or hand-stamped facsimile signature. CBP sources again note that this policy is not new, but has previously been unevenly enforced.
(CBP's Revenue Division located in Indianapolis is the central repository for activity type 1 importer/broker continuous bonds, and new activity type 1 importer/broker continuous bonds have been processed there since early 2006.) Currently, all other activity types, 1A, 2, 3, 3A, 4, etc., as well as single transaction bonds (STBs), are submitted to and processed by the individual ports as determined by the principals and sureties.)
(See ITT's Online Archives or 07/13/07 news, 07071310, for BP summary announcing that CBP may reject CBP 301 bonds with pre-printed dollar limits for the surety attorney-in-fact.
See ITT's Online Archives or 08/03/07 news, 07080305, for BP summary announcing that CBP will reject bonds when the printed limit of liability on the form is less than the liability amount of the bond or greater than the specific agent and surety limits recorded with CBP.
See ITT's Online Archives or 02/21/06 news, 06022105, for BP summary of Revenue Division taking over the processing of new activity 1 importer/broker continuous bonds.)
CBP Chicago Pipeline (07-25, dated 07/03/07) available via email by sending a request to documents@brokerpower.com