Claims – The CF5955A

Posted on: July 28th, 2011 • In Claims

The CF5955A, Notice of Penalty or Liquidated Damages Incurred and Demand for Payment is one type of claim Customs can make against a US Customs bond. When initially issued, the principal has (60) days to either file a dispute in the form of a petition or make payment to Customs. If the case has not been responded to by the principal or resolved by expiration of the sixty days, Customs will issue a formal demand to the surety company on the bond securing the Customs transaction cited in the violation.

When a demand has been made against the surety, the surety will attempt to notify the principal of this obligation, since the surety is also given (60) days to respond to Customs from the date of the demand on surety. After a case has become a demand on surety, and the principal has received a notice of claim from the surety, it is essential the principal acknowledge the claim and provide a copy of a petition or proof of payment to Customs before the surety is required to make payment in accordance with the Customs bond. If the surety does pay a claim on behalf of the principal, there could be negative repercussions impacting the principal. Please remember, when communicating to Customs regarding a penalty or liquidated damage, it is advisable to reference the case number, entry number (if applicable), and obtain proof of delivery and follow up with Customs for a response.

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