CCS Customs Bonds and Requirements 3

Question 1

When a surety company wishes to terminate a continuous bond, what is the minimum advance notice required to be given to CBP?

Accepted Answer

30 days

Answer

A surety must provide CBP with at least 30 days' advance written notice before terminating a continuous customs bond.

Question 2

Which party to a customs bond is primarily responsible for paying any duties, penalties, or liquidated damages if an obligation is not met?

Accepted Answer

The principal

Answer

The principal is the primary obligor on the bond; the surety is secondarily liable if the principal fails to pay.

Question 3

A foreign trade zone (FTZ) operator bond covers which of the following obligations?

Accepted Answer

Accountability for all merchandise admitted to the FTZ and compliance with FTZ regulations

Answer

The FTZ operator bond ensures the operator is accountable for all merchandise in the zone and complies with CBP and FTZ Board regulations.

Question 4

For a single-entry bond on a commercial importation, the bond amount must be equal to at least what percentage of the total entered value?

Accepted Answer

The amount of all duties, taxes, and fees plus 3 times any estimated penalties

Answer

A single-entry bond must cover all duties, taxes, and fees, and in penalty cases CBP may require up to three times the penalty amount added.

Question 5

Which surety company qualification requirement must be met for a company to write customs bonds in the United States?

Accepted Answer

The surety must be listed on the Treasury Department's approved surety list (Circular 570)

Answer

Sureties writing customs bonds must be approved by the U.S. Treasury Department and appear on the current Circular 570 list.

(CCS) Certified Customs Specialist Practice Test