CSMS Message: 05-000684

CUSTOMS BROKERS AND PERIODIC MONTHLY STATEMENT BOND RIDER
REQUIREMENT - CLARIFICATION

WITHIN THE LAST MONTH, WE HAVE RECEIVED CALLS FROM BROKERS
WITH AUTOMATED COMMERCIAL ENVIRONMENT (ACE) ACCOUNTS WHO
CLAIMED TO HAVE OBTAINED PERIODIC MONTHLY STATEMENT RIDERS
ON THEIR IMPORTER BONDS. THEY BELIEVED IT WAS A
REQUIREMENT IN ORDER TO FLAG ENTRY SUMMARIES FOR PERIODIC
MONTHLY STATEMENT ON BEHALF OF IMPORTER CLIENTS. WHEN
ASKED IF THEY INTENDED TO CLEAR THE CLIENT'S SHIPMENTS
UNDER THE BROKER'S IMPORTER BOND THEY RESPONDED THAT ALL
SHIPMENTS WOULD BE CLEARED UNDER THE CLIENT'S BOND. IN
THIS SCENARIO, THE BROKER DOES NOT NEED TO HAVE A PERIODIC
MONTHLY STATEMENT RIDER ON ITS IMPORTER BOND. ONLY THE
IMPORTER CLIENT WOULD NEED THE BOND RIDER. HOWEVER, THE
BROKER NEEDS HAVE AN ACE BROKER ACCOUNT.

WE HAVE ALSO HEARD FROM APPROXIMATELY TWENTY BROKERS WHO
HAD NOT YET OBTAINED RIDERS FOR THEIR IMPORTER BONDS BUT
THOUGHT THEY NEEDED TO OBTAIN RIDERS. A COUPLE OF THESE
DID NOT PRESENTLY HAVE IMPORTER BONDS AND CLAIMED TO HAVE
NO DESIRE TO OBTAIN AN IMPORTER BOND UNLESS IT IS A
REQUIREMENT TO FLAG CLIENT ENTRY SUMMARIES (USING THE
CLIENT'S BOND) FOR PERIODIC MONTHLY STATEMENT. ONCE AGAIN,
IN THIS CASE THE BROKER MUST HAVE AN ACE BROKER ACCOUNT BUT
DOES NOT NEED TO HAVE A PERIODIC MONTHLY STATEMENT RIDER ON
ITS IMPORTER BOND. ONLY THE IMPORTER CLIENT WOULD NEED THE
BOND RIDER.

DON YANDO
ACTING BUSINESS DIRECTOR,
ENTRY SUMMARY, ACCOUNTS AND REVENUE
CUSTOMS AND BORDER PROTECTION MODERNIZATION OFFICE

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