Liquidation is the process of final review of an entry by Customs which occurs approximately one year after the entry date for a typical consumption entry. In accordance with 19CFR 159.1, liquidation means the final computation, or assessment of duties on entries for consumption or drawback entries. Presently, the liquidation cycle utilized by CBP is … Read more
On January 4, 2015, our office filed the first continuous eBond with Customs and Border Protection (CBP) once the eBond process was released to the industry. Since eBond took effect, the landscape of filing and processing of CBP bonds has significantly changed. While the processing time of the continuous bonds has greatly decreased, there are a … Read more
Periodically, our office reviews our Customs bond application to ensure that it is up to date. The most recent application can be located on our website.
Companies that operate as ocean freight forwarders and Non-Vessel Operator Common Carriers (NVOCC) are required to be licensed as an OTI. This guarantees that the contractual relationships between shippers and carriers will be fulfilled. The OTI collects the transportation charges from the shipper for payment to the carrier. The bond is in place to help … Read more
The Federal Maritime Commission (FMC) has reviewed and believes the bond amounts, as currently required, are insufficient to demonstrate financial responsibility of the OTI (Ocean Transportation Intermediaries) due to the large number of bond saturations the FMC has seen. They have proposed that domestic NVOs increase their current bond requirement from $75,000 to $100,000 and … Read more
A foreign-trade zone is a secured area under U.S. Customs’ supervision that is generally considered outside United States territory (for commerce purposes) upon activation. A foreign-trade zone is typically located in or near a U.S. Customs port of entry and falls under the authority of that port. Foreign and domestic merchandise may be moved into … Read more
Customs will allow the filing of a single bond form to meet the bond requirement for both the International Carrier (type 3) and the Instrument of International Traffic (type 3A). If a single bond form is issued to combine these types of bonds, one bond number would be assigned by Customs; however the liability of … Read more
An Instrument of International Traffic bond, or Activity 3A, is used to cover the movements and clearances of containers which move internationally. Without this provision, each container moved into the United States would have to be entered as a standard consumption entry and duty would be due to Customs on the container. Containers commonly used … Read more
An International Carrier bond, or Activity 301-3, ensures that operators of ships, airlines and conveyors of international merchandise properly manifest their goods, pay for overtime services and comply with Customs regulations related to clearance of the vessel. Therefore, any entity operating a ship, airplane or railway in international areas wishing to gain entry to the … Read more
C.A. Shea provides a unique role in the world of customs bonds as a facilitator for brokers in many different ways. Our office’s primary role is to assist brokers with the placement of Customs bonds for accounts that are not part of a larger surety program. The broker can submit a request for a bond … Read more
