CCS Customs Bonds and Requirements 4

Question 1

Under CBP regulations, a customs broker who files entries on behalf of importers must maintain which type of bond?

Accepted Answer

A customs broker's bond (Activity Code 4)

Answer

Licensed customs brokers are required to hold a customs broker's bond under Activity Code 4, which covers their brokerage activities.

Question 2

What is the term for the clause in a customs bond that limits the surety's total liability to a stated maximum dollar amount?

Accepted Answer

Penal sum

Answer

The penal sum is the maximum amount the surety can be required to pay under the bond, as stated on CBP Form 301.

Question 3

An airline acting as an international air carrier must file which type of CBP bond to cover in-bond merchandise it transports?

Accepted Answer

International carrier bond (Activity Code 3)

Answer

International carriers, including airlines, must hold an Activity Code 3 international carrier bond to cover their liability for in-bond shipments.

Question 4

When a continuous bond amount becomes insufficient due to increased import activity, how quickly must the importer file a superseding bond?

Accepted Answer

Within the timeframe specified in CBP's demand letter, typically 30 days

Answer

CBP's demand letter for a superseding bond specifies the deadline, which is typically 30 days from the notice date.

Question 5

Which regulatory provision allows CBP to 'demand' additional security from an importer whose bond no longer covers their liability exposure?

Accepted Answer

19 CFR 113.13 — right of CBP to require additional security

Answer

19 CFR 113.13 grants CBP the authority to demand additional security when existing bond coverage is deemed insufficient.

(CCS) Certified Customs Specialist Practice Test