U.S. Customs and Border Protection (CBP) has published a new public bond guidance—announced in a Cargo System Messaging Service (CSMS) on February 13. The change to the guidance provides updates to the official procedures for determining bond amounts.
The following are key highlights of the changes.
- All continuous bonds are set in increments of $10,000 up to $100,000 and then in increments of $100,000 for larger bonds (previously only applied to Activity Code 1 bonds).
- The minimum bond amount for a C3 bond has been increased from $25,000 to $50,000.
- The minimum bond amount for C4 bonds has been increased to $50,000 per FTZ activated location.
CBP states that “the guidance serves to address gaps, to clarify what CBP and the trading public are responsible for when setting and maintaining sufficient bond coverage, and make clear what factors are considered by CBP in setting a required bond amount in particular cases.” CBP has also provided a full summary of the updates for greater clarification.
If you have any questions about the changes or guidance, reach out to Mohawk Global Trade Advisors.