CBLE CBLE Bonds and Surety Requirements 2 — Questions and Answers
Question 1: A licensed customs broker must maintain a bond with CBP in what minimum amount?
- $10,000
- $25,000
- $50,000 (Correct answer)
- $100,000
Correct answer: $50,000
Under 19 CFR Part 111, a licensed customs broker is required to maintain a $50,000 continuous bond as a condition of licensure.
Question 2: Under what authority does CBP require importers to post a bond?
- 19 U.S.C. § 1592
- 19 U.S.C. § 1623 (Correct answer)
- 19 U.S.C. § 1484
- 19 U.S.C. § 1401a
Correct answer: 19 U.S.C. § 1623
19 U.S.C. § 1623 grants CBP the authority to require bonds to secure compliance with customs laws and payment of duties.
Question 3: What is an 'in-bond' shipment?
- Goods that have been fully duty-paid
- Goods moving through U.S. customs territory without formal entry under a bond (Correct answer)
- Goods imported under an FTA preference
- Goods that are prohibited but temporarily allowed
Correct answer: Goods moving through U.S. customs territory without formal entry under a bond
An in-bond shipment moves through U.S. customs territory under a transportation and exportation or immediate transportation bond without paying duties at the point of arrival.
Question 4: If an importer cannot pay duties owed, what recourse does CBP have against the surety?
- CBP can only pursue the importer
- CBP can demand payment from the surety up to the bond amount (Correct answer)
- CBP must write off the debt
- CBP can only seize future shipments
Correct answer: CBP can demand payment from the surety up to the bond amount
The surety is jointly and severally liable with the principal up to the bond amount, so CBP can demand payment from the surety if the principal defaults.
Question 5: Which type of bond covers multiple entries over a 12-month period?
- Single-entry bond
- Blanket bond
- Continuous bond (Correct answer)
- Term bond
Correct answer: Continuous bond
A continuous bond remains in force for a 12-month period (renewable annually) and covers all entries made by the principal during that period.
Question 6: What is the consequence if a customs broker's bond is insufficient to cover a claim?
- CBP forgives the excess amount
- The broker is personally liable for the amount exceeding the bond (Correct answer)
- The surety covers the full amount regardless of bond limits
- CBP pursues the importer for the excess
Correct answer: The broker is personally liable for the amount exceeding the bond
The bond limits the surety's liability, but the broker as principal remains personally liable for any amounts owed that exceed the bond coverage.
CBLE CBLE Bonds and Surety Requirements 2
A licensed customs broker must maintain a bond with CBP in what minimum amount?