On October 9th, 2014 Customs and Border Protection (CBP) published a proposed directive which will significantly revise Form 5106 which identifies principals that carry a U.S. Customs bond and do business with the CBP. This form is the basis for establishing customs bond coverage, release and entry of merchandise, liquidation, and the issuance of bills and refunds. Each person, business firm, government agency, or other organization that files an import entry must file this form with his/its first formal entry or request for services. The CBP proposal’s purpose is to gather additional information about a company and its officers. As published in the Register, “This will enhance CBP’s ability to make an informative assessment of risk prior to the initial importation, and will provide CBP with improved awareness regarding the company and its officers who have chosen to conduct business with CBP. CBP is also requesting that the company officers whose information will be submitted on form 5106 have importing and financial business knowledge of the company, and that they have the legal authority to make decisions on behalf of the company. The revised form will capture more detailed company information which is in alignment with other U.S. Government data standards and business standards. In addition to collecting information about the business structure and its officers, this detailed information will provide CBP with a greater knowledge about the company and its previous business practices.”
A U.S. Customs bond principal will be responsible for providing detailed, true information on the enhanced form. The CBP has requested that all affected parties respond to the proposed changes by December 8th, 2014. You may review the proposal in full at http://www.gpo.gov/fdsys/pkg/FR-2014-10-09/pdf/2014-24199.pdf. All responses must be submitted as follows:
U.S. Customs and Border Protection,
Attn: Tracey Denning, Regulations and Rulings, Office of International Trade
90 K Street NE., 10th Floor,
Washington, DC 20229–1177
We encourage our current customs bond clients to review the proposal and submit comments as you see fit. The current Form 5106 may be viewed here. National surety bond leader, Surety One, Inc. provides customs bonds for all CBP activity codes and to individual and companies without regard to domicile or financial conditions. Visit https://suretyone.com or call (787) 333-0222 to discuss your particular need.
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