The easiest and most common way to make a change to any bond is to file a rider, however, Customs only permits changes through four (4) specific riders. Changes not defined by these riders require the bond to be rewritten. Riders available to change the information on the bond are: an Address change rider, a Name change rider, an Addition rider and a Deletion rider. All riders must be signed and sealed by the principal and the surety before submission to Customs.
The Address change rider would be necessary to update the physical address on file with Customs for a principal listed on a bond. If the physical address remains the same for a principal and only the mailing address must be updated, a 5106 form would be sufficient to make this change. Also, if a user on a bond needs to have an address updated, a rider is not necessary and only a 5106 form would be needed. It is important to note that if Customs has an incorrect mailing address on file, Customs has the ability to render a bond insufficient, or unusable. Once this happens, the principal would be unable to utilize the bond until the necessary paperwork amending the information on file has been filed and accepted by Customs.
A Name change rider would be necessary to update the name of a principal on a bond. Please note if, in addition to the change in name, the principal’s IRS number changes, a new bond must be issued as Customs does not have a rider available to facilitate a change in IRS number. Therefore, if the name of the principal is changing, it is important to ask your client if the IRS number for the principal changed in addition to the name.
An Addition rider would be used if the principal would like to add unincorporated divisions or tradenames to the bond as users. In order to add a tradename or unincorporated division, Customs requires that the principal elect a a two digit identification number, which may consist of any two numbers or letters other than O, Z or I.
A Deletion rider would be used if the principal would like to delete users, unincorporated divisions or tradenames, currently listed on the bond. Customs does require a minimum of ten business days to remove users from a bond.
If your client believes they require any of these changes, please contact our office and we will provide all the necessary forms.