CBP published new “How CBP Sets Bond Amounts” Guide for the Public

U.S. Customs & Border Protection (CBP) has published a new guide outlining the various aspects of how bond amounts are set.  This publication (Publication # 3569-0224) replaces the previously issued Directive 3510-004 dated 1991.

The new publication can be found here.  CBP has also published a “Summary of Changes” document comparing the old and new publications.  This can be found here.  The new publication has not brought about any changes to process or procedure, it simply has documented the many changes that have already been implemented over the 23-year period since the last publication.

There are, however, some notable differences between the US Surety Bond requirements, and those coming into effect in Canada due to CARM in May.

Notable differences are:

• The US has a minimum of $50k for continuous bond, with no maximum.  Canada will have a $25k minimum, with a $10M maximum.
• The calculations are slightly different to get to the bond amounts:
  • In the US, the calculation is based on 10% of the total duty, taxes, and fees for a past 12-month period.
  • CARM states the amount is based on the highest single month in the past 12-month period.
• The US manages continuous bonds in increments of $10k up to $100k, then $100k increments; CARM has no increments set.
• The review process is different.  In the US, the importer is responsible to review their bond based on past 12 months activity, but in CARM the review is automated with a “nudge” when adjustments are necessary.

Members whose staff deal with US and Canadian financial security requirements should be aware of the differences between the two regimes, especially as new CARM requirements come into effect.