| Title: | NEW BOND REQUIREMENTS |
|---|---|
| Date: | 1997-07-30 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : CARLA ZZ-DONOFRIO
SUBJECT : NEW BOND REQUIREMENTS
DATE : 07/30/97
SPE-2 FO:TC:I:E JR
CATEGORY:TEX
TO: ALL PORT DIRECTORS, CUSTOMS MANAGEMENT CENTER (CMC)
DIRECTORS AND STRATEGIC TRADE CENTER (STC) DIRECTORS
FROM: DIRECTOR, TRADE COMPLIANCE DIVISION
PASS TO: ALL IMPORT SPECIALISTS, NATIONAL IMPORT SPECIALISTS,
ENTRY OFFICERS, INSPECTORS, INTERNATIONAL TRADE
SPECIALISTS, IMPORTERS, BROKERS AND OTHER INTERESTED
PARTIES
SUBJECT: TBT-97-060 - NEW BOND REQUIREMENTS
BACKGROUND:
BECAUSE OF THE INCREASING CONCERN IN THE TRADE COMMUNITY
REGARDING ILLEGAL TEXTILE TRANSSHIPMENT AND U.S. CUSTOMS
INCREASING VIGILANCE TO IDENTIFY THE ILLEGAL TRANSSHIPMENT OF
TEXTILE AND TEXTILE PRODUCTS, THE FOLLOWING GUIDELINES ARE TO BE
USED WHEN DETERMINING BOND REQUIREMENTS FOR ALL COMPANIES
IMPORTING TEXTILE AND TEXTILE PRODUCTS REGARDLESS OF COUNTRY OF
ORIGIN.
CUSTOMS DIRECTIVE 3510-04, DATED JULY 23, 1991, PROVIDES THAT THE
MINIMUM AMOUNT FOR A NON- DISCRETIONARY CONTINUOUS BOND BE SET AT
$50,000. THE CURRENT BOND LIMIT IS DETERMINED BASED ON THE TOTAL
DUTIES AND TAXES FROM THE PRECEDING YEAR AND POTENTIAL RISK WITH
THE TRANSACTION. BECAUSE ILLEGAL TEXTILE TRANSSHIPMENT INVOLVES
LIQUIDATED DAMAGE PENALTIES WHICH CONSISTS OF THE VALUE OF THE
SHIPMENT PLUS DUTY, BONDING REQUIREMENTS WILL BE REVIEWED FOR ALL
COMPANIES IMPORTING TEXTILES AND ASSESSED BASED ON CUMULATIVE
ENTERED VALUE FOR THE PREVIOUS CALENDAR YEAR.
ACTION:
THIS IS TO ANNOUNCE THAT EFFECTIVE JULY 1, 1997, U. S. CUSTOMS
WILL BEGIN CHANGING, AS APPROPRIATE, THE BOND SUFFICIENCY FOR NON-
DISCRETIONARY CONTINUOUS BONDS OF ALL IMPORTERS IMPORTING TEXTILE
AND TEXTILE PRODUCTS, REGARDLESS OF COUNTRY OF ORIGIN. IT IS
ANTICIPATED THAT THIS EFFORT WILL BE COMPLETED WITHIN 6-8 MONTHS
FOLLOWING IMPLEMENTATION. THE MINIMUM BOND REQUIREMENT FOR ALL
COMPANIES IMPORTING TEXTILE AND TEXTILE PRODUCTS WILL BE 2% OF
THE VALUE OF THEIR WORLD-WIDE IMPORTATIONS OF TEXTILES AND
TEXTILE PRODUCTS FOR THE PREVIOUS YEAR, OR THEIR CURRENT BOND,
WHICHEVER IS HIGHER. THE BOND COVERAGE WILL NOT EXCEED $30
MILLION (CEILING) OR FALL BELOW $50 THOUSAND FOR AN ANNUAL
PERIOD. THE ANNUAL PERIOD WILL BE BASED ON THE JANUARY-DECEMBER
CALENDAR YEAR IMPORT FIGURES FOR THE PREVIOUS CALENDAR YEAR. THE
REQUIREMENT WILL BE REVIEWED EVERY APRIL TO ENSURE THE APPROPRIATE
LEVEL OF RISK COVERAGE.
THIS MINIMUM BOND REQUIREMENT WILL REMAIN IN EFFECT UNLESS THE
FOLLOWING INSTANCES OCCUR WITH REGARD TO THE ILLEGAL TRANSSHIPMENT OF
TEXTILE AND TEXTILE PRODUCTS:
A COMPANY HAS:
1) BEEN INVOLVED IN A REDELIVERY NOTICE FOR MERCHANDISE THAT
WAS CONFIRMED TO BE ILLEGALLY TRANSSHIPPED.
2) BEEN ASSESSED LIQUIDATED DAMAGES PENALTIES FOR ENTERING
ILLEGALLY TRANSSHIPPED MERCHANDISE.
3) HAD MERCHANDISE EXCLUDED BECAUSE OF ILLEGAL
TRANSSHIPMENT.
4) ABANDONED MERCHANDISE THAT WAS ILLEGALLY TRANSSHIPPED.
5) HAD ILLEGALLY TRANSSHIPPED MERCHANDISE SEIZED OR
DETAINED.
6) BEEN CONVICTED IN A COURT PROCEEDING FOR ILLEGALLY
TRANSSHIPPING MERCHANDISE.
7) HAD EMPLOYEES ADMIT TO KNOWLEDGE OR PARTICIPATION IN THE
ILLEGAL TRANSSHIPMENT OF TEXTILE AND TEXTILE PRODUCTS.
8) A GENERAL PATTERN OF FACTS EXIST TO INDICATE COMPLICITY
ON THE PART OF THE COMPANY AND ITS EMPLOYEES IN ILLEGAL
TRANSSHIPMENT
9) INTERACTED WITH MANUFACTURERS WHO HAVE BEEN CONVICTED OF
ILLEGALLY TRANSSHIPPING TEXTILE AND TEXTILE PRODUCTS.
FOR INSTANCES WHERE ONE OR ANY COMBINATION OF FACTORS OCCURS,
PORT DIRECTORS MAY INCREASE THE REQUIRED BOND COVERAGE IN
INCREMENTS OF 1-5%, TO BE ADDED TO THE CURRENT 2% OF THE VALUE OF
THE COMPANY'S ANNUAL IMPORTATIONS OF TEXTILES AND TEXTILE
PRODUCTS. IN INSTANCES OF REPEATED VIOLATIONS AND NON-
COMPLIANCE, U.S. CUSTOMS MAY REQUIRE SINGLE ENTRY BONDS FOR ALL
ENTRIES OF ALL TEXTILE AND TEXTILE PRODUCTS UNTIL SATISFACTORY
COMPLIANCE IS REACHED.
CURRENTLY, A REVIEW OF COMPANIES WHICH IMPORT TEXTILE AND TEXTILE
PRODUCTS IS UNDERWAY AND ANY CHANGES NECESSARY TO THE BOND
COVERAGE WILL BE PROVIDED TO THE PORT DIRECTORS. THE REVIEW
INCLUDES THE CURRENT BOND COVERAGE, ASCERTAINING THE ANNUAL VALUE
OF IMPORTS OF TEXTILES AND TEXTILE PRODUCTS FOR CALENDAR YEAR
1996, CALCULATING THE NEW BOND AMOUNT, AND DETERMINING IF ANY
COMPANIES HAVE HAD REDELIVERIES, INVESTIGATIONS, ETC. THIS AND
ANY OTHER INFORMATION THAT THE TRADE COMPLIANCE DIVISION HAS
REGARDING INSTANCES OF ILLEGAL TRANSSHIPMENT WILL BE PROVIDED AND
SHOULD BE USED WHEN INCREASING THE BONDS ABOVE THE 2% RECOMMENDED
REQUIREMENT.
IN ADDITION, PORT DIRECTORS ARE TO ADVISE THE TRADE COMPLIANCE
DIVISION, COMMERCIAL ENFORCEMENT OF ANY ACTIONS TAKEN AGAINST ANY
IMPORTER FOUND TO BE INVOLVED IN ONE OF THE ABOVE ACTIVITIES THAT
RESULTED IN THEIR BOND BEING INCREASED. THESE ACTIONS CAN BE SENT
VIA FACSIMILE TO (202) 927-0708 OR SENT VIA CC:MAIL TO MARK LARIA,
ROBERT DORSETT, JUNE PERGOLA OR CARLA D'ONOFRIO. THIS IS TO ENSURE
UNIFORMITY IN THE ASSESSMENT OF THE CONTINUOUS BOND. THESE ACTIONS
WILL BE COMPILED AND FORWARDED TO THE TEXTILE CLEARINGHOUSE FOR USE BY
THE PORTS.
IN ADDITION, CUSTOMS WILL BE REVIEWING ALL BOND SUFFICIENCY BASED
ON THE CURRENT GUIDELINES FOR ALL TRANSACTIONS REGARDLESS OF
COMMODITY. IF, OVER THE COURSE OF PURSUING ITS COMPLIANCE GOALS,
CUSTOMS DETERMINES ANY COMPARABLE RISK WITH OTHER INDUSTRIES A
SIMILAR REVIEW OF BOND COVERAGE WILL BE PERFORMED.
IMPORTERS MAY WISH TO REVIEW THEIR OWN RECORDS TO DETERMINE IF
THEIR CURRENT BOND SUFFICIENCY IS ADEQUATE.
INFORMATION:
IF YOU HAVE ANY QUESTIONS CONCERNING THIS MATTER, PLEASE DO NOT
HESITATE TO CONTACT BOB DORSETT AT TELEPHONE NUMBER (202) 927-
7002 OR JUNE PERGOLA AT (202) 927-0705, COMMERCIAL ENFORCEMENT OR
ANGELA DOWNEY, ENTRY DRAWBACK BRANCH (202) 927-1082.
S
BYLLE PATTERSON FOR
PHILIP METZGER