Customs Bonds and Requirements Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Customs Bonds and Requirements flashcards as text
Under the Harmonized Tariff Schedule, antidumping (AD) and countervailing duty (CVD) deposits affect bond requirements because:
Answer: AD/CVD deposits can significantly increase the required bond amount beyond the standard 10% calculation
Because AD/CVD deposits can be substantial and subject to retroactive adjustment, they increase the importer's potential liability and therefore the required bond amount.
A Temporary Importation under Bond (TIB) allows goods to enter the U.S. duty-free provided they are exported within what maximum time period under most TIB categories?
Answer: One year, extendable up to three years total
TIB entries generally allow one year for re-exportation, with extensions possible up to a total of three years.
What penalty is assessed against a TIB importer who fails to re-export or destroy goods within the bond period?
Answer: Liquidated damages equal to twice the duties that would otherwise be owed
TIB bond conditions impose liquidated damages equal to twice the normal duties on goods not timely re-exported or destroyed.
An importer of record who is also the ultimate consignee may file which document to use the importer's continuous bond for a specific shipment without a separate single-entry bond?
Answer: Entry summary (CBP Form 7501) referencing the continuous bond on file
When a continuous bond is on file, the importer references it on the CBP Form 7501 entry summary, covering that entry under the existing bond.
Which CBP action can result in a surety being 'blacklisted' and no longer permitted to write U.S. customs bonds?
Answer: Removal from the Treasury Department's Circular 570 approved surety list
A surety that is removed from Treasury's Circular 570 list loses its authorization to write customs and other federal bonds.
Under CBP regulations, what is the bond requirement for goods entered under a Section 321 de minimis entry (value of $800 or less)?
Answer: No bond is required for Section 321 informal entries below the de minimis threshold
Section 321 de minimis shipments valued at $800 or less are released without formal entry and do not require a customs bond.
When CBP issues a 'notice of action' on a bond claim, within how many days must the principal or surety respond to avoid a default judgment?
Answer: 60 days from the date of the notice
Recipients of a CBP notice of action on a bond claim have 60 days to respond before CBP may issue a penalty or proceed to collection.