Draft Revised CBP Bond Form 301 with ISF, IPR Codes, Etc. Available

(The current CBP Form 301 is dated May 1998 and expires on December 31, 2010. See ITT’s Online Archives or 08/19/10 news, 10081919, for initial BP summary of CBP seeking comments on their proposed revisions to the CBP Form 301.)

CBP is Requesting Comments on Proposed Changes by Oct 18

In addition to extending the form beyond its 2010 expiration date, CBP states that it is proposing to revise the form to capture the new types of bonds that have been authorized by law and regulation, and to better harmonize the form with current and future automation requirements. Comments are these proposed changes are due by October 18, 2010.

Draft of Proposed New CBP Form 301 “to Date” Available

A copy of CBP’s proposed draft form is available from Broker Power. As CBP has not completed the Federal Register comment and notification process, CBP sources state that this draft form is subject to change.

The major proposed changes to the bond form (listed from “top to bottom” of the form) include:

Broker Filer Code and Surety Reference Number at Top

Space for the broker filer code and surety reference number would be provided at the top of the form. (The form would no longer have a field for the surety agent name, see below for details.)

Continuous Bond Only Activity Codes Would be Noted

The form would identify Activity Codes 2, 3a, 11, 14, 15, and 17 as “continuous bond only” activity codes. (STB only activity codes would continue to be noted.)

Activity Code 4 for FTZ Would be Edited

Activity Code 4 would be described as “foreign trade zone”, rather than the current “foreign trade zone operator”.

Activity Codes 11-20 for ISF, IPR, Etc., Would be Added

Activity codes 11 -- 20 would be added. These would be for:

• Airport security bond (code 11)
• International Trade Commission (ITC) exclusion bond (code 12)
• TBD (to be determined) (code 13)
• Miami In-Bond Export Consolidator Bond (code 14)
• Intellectual Property Rights (IPR) (code 15)
• Importer Security Filing (ISF) (code 16)
• Marine Terminal Operator (code 17)
• Dog and Cat Act (code 18)
• Other (TBD) (code 19)
• Other (TBD) (code 20)

“Complete Name” for Those Permitted to Obligate Bond

The “complete name” of all trade names or unincorporated divisions that will be permitted to obligate the bond would need to be listed.

“Physical Address” of Principal, Co-Principal and Surety

The physical address (as opposed to just the address) of the principal would be required. In addition, instead of providing for a second “principal”, a second entity would be called a “co-principal”. The physical address of the co-principal and surety would also be required.

One Surety and One Agent Would be Provided for on Form

The surety section of the form would only provide for a single surety and single agent, rather than two of each. The surety agent name would no longer be required, but the agent ID number would remain as a required data element.

Seals for Principal and Surety Would No Longer be Imprinted on Form

Instead of requiring the seals of the principal and surety to be imprinted on the form, the form would have a check box to indicate that these entities have a seal in accordance with regulations.

(The 301 bond is used (1) to assure that duties, taxes, charges, penalties, and reimbursable expenses owed to the Government are paid; (2) to facilitate the movement of merchandise through CBP, and (3) to provide legal recourse for the Government for noncompliance with CBP laws.

Without the Customs bond, all imported merchandise would have to remain in physical CBP custody until compliance with all applicable laws and regulations, and duties and taxes, had been determined, which CBP states would disrupt the orderly flow of cargo and increase the cost of importing.)

Draft revised CBP Form 301 and supporting statement available by emailing documents@brokerpower.com