How are your claims with U.S. Customs currently handled?

It can be stressful and confusing to receive a penalty notice from CBP, but you don't need to go it alone. With TRG's staff of licensed Customs Brokers, we are trained to assist with even the most difficult claim you may encounter when importing into the United States.

Types of Claims

Liquidated Damages

The conditions of a U.S. Customs bond are set forth in the Code of Federal regulations (CFR). If a principal defaults on these conditions, Customs assesses Liquidated Damages. Per the bond conditions, the principal and surety are jointly and severally liable for the payment of these damages.

Liquidated Damages may be disputed via a petition. Petitions need not be in any particular format, but must be submitted to the port where the case originated and should include any substantiating documentation to support the mitigation of the case. Unless the principal is able to demonstrate extenuating circumstances, cancellation will not be warranted. If a petition is submitted after the case is mitigated to an option 1 amount, the principal waives its right to the mitigation.

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Supplemental Duty Bills

When liquidated duties are greater than paid duties, Customs issues a Supplemental Duty bill for the difference. Supplemental Duty bills are due 30 days after the bill date pursuant to 19CFR§24.3a(a) and include a Liquidation Change Code, which indicates the reason for the increase in duties, taxes, and/or fees owed. Unless bill payment is received by Customs after 30 days, interest will accrue.

Per the bond conditions, the principal and surety are jointly and severally liable for the payment of these bills.

If a Supplemental Duty bill remains unresolved 60 days after the bill date, Customs will issue a demand for payment to the surety on its Formal Demand on Surety for Payment of Delinquent Amounts Due (612 report). If a Supplemental Duty bill remains unresolved after 180 days, the principle is placed in national sanction eligibility status.

Supplemental Duty bills cannot be directly disputed but may be canceled or voided upon the successful protest of an entry’s liquidation pursuant to 19CFR§174.11.

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Miscellaneous Bills

Customs also issues Miscellaneous bills to importers. Like Supplemental Duty bills, Miscellaneous bills are due 30 days after the bill date pursuant to 19CFR§24.3a(a).

Common Miscellaneous bill reasons include quarterly Harbor Maintenance fees, FDA Sampling fees, the overtime services of Customs employees, etc. The principal and surety are jointly and severally liable for the payment of these bills as though the fees are Customs duties.

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Debit Vouchers

If a payment made to Customs is dishonored, Customs issues a Debit Voucher. Unlike other bill types, Debit Voucher payment is due within 15 days pursuant to 19CFR§24.3(e). Unless payment is received by Customs after 15 days, interest will accrue.

Like Miscellaneous bills, the principal and surety are jointly and severally liable for the payment of Debit Vouchers as though they are Customs duties. If a Debit Voucher remains unresolved 15-45 days after the bill date, Customs will issue a demand for payment to the surety and will place the importer on national sanction. The number of days after the bill date depends on Customs’ perceived risk associated with the prin.

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Bond Conditions

A U.S. Customs bond is a surety bond in place as a contractual guarantee that the principal will pay all monies owed and abide by all pertinent regulations when conducting business with the beneficiary, U.S. Customs. Should the importer default on the agreement, Customs will look to the surety for satisfaction.

Importation and Entry (C1) Bonds

An importation and entry bond, commonly referred to as an import bond, is required by U.S. Customs to ensure that an importer abides by all pertinent regulations when entering goods into the United States.

19CFR§113.62: Importation and entry bond conditions include:

  • 19CFR§113.62(a): Agreement to pay duties, fees, taxes, and charges
  • 19CFR§113.62(b): Agreement to make or complete entry
  • 19CFR§113.62(d): Agreement to redeliver conditionally released merchandise into Customs custody
  • 19CFR§113.62(f): Agreement for examination of merchandise

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Repayment of Erroneous Drawback Payment (C1A) Bonds

A repayment of erroneous drawback payment bond, commonly referred to as a drawback bond, is required by U.S. Customs to ensure that an importer repays any over claimed accelerated drawback duty payments at the time of liquidation.

19CFR§113.65: Repayment of erroneous drawback payment bond conditions include:

  • 19CFR§113.65(a): Agreement to accurately file claim under the exporter’s summary procedure
  • 19CFR§113.62(b): Agreement to refund the full amount of any overpayment matter on demand, as determined upon liquidation of the drawback claim

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Basic Custodial (C2) Bonds

A basic custodial bond is required by U.S. Customs to ensure that a bonded warehouse, carrier, cartman, or container station abides by all pertinent regulations when handling in-bond merchandise.

19CFR§113.63: Basic custodial bond conditions include:

  • 19CFR§113.63(b): Agreement to use authorized means of conveyance and keep safe any merchandise
  • 19CFR§113.63(c): Agreement to dispose of merchandise in a manner authorized by Customs
  • 19CFR§113.63(d): Agreement to redeliver merchandise to Customs

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International Carrier (C3) Bonds

An international carrier bond is required by U.S. Customs to ensure that an international carrier abides by all pertinent regulations when transporting merchandise, passengers, or crew members.

19CFR§113.64: International carrier bond conditions include:

  • 19CFR§113.64(b): Agreement to comply with all laws and Customs regulations applicable to unlading, safekeeping, and disposition of merchandise, supplies, crew purchases, etc.
  • 19CFR§113.64(a): Agreement to pay penalties, duties , taxes, and charges
  • 19CFR§113.64(c): Agreement to provide cargo information
  • 19CFR§113.64(i): Agreement to comply with Customs regulations applicable to Customs security areas at airports

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Control of Containers and Instruments of International Traffic (C3A) Bonds

A control of containers and instruments of international traffic bond, commonly referred to as instruments of international traffic bond, is required by U.S. Customs to ensure the proper handling of bonded, reusable containers, pallets, drums, and other instruments incidental to the movement of foreign merchandise.

19CFR§113.66: Control of containers and instruments of international traffic bond conditions include:

  • 19CFR§113.66(a): Agreement to enter any diverted instrument of international traffic
  • 19CFR§113.66(b): Agreement to comply with the provisions of applicable HTSUS subheading
  • 19CFR§113.64(c): Agreement to comply with the application approved under 19CFR§10.41b(b)

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Foreign Trade Zone Operator (C4) Bonds

A foreign trade zone operator bond is required by U.S. Customs to ensure that a foreign trade zone operator abides by all pertinent regulations when handling merchandise placed in a foreign trade zone.

19CFR§113.73: Foreign trade zone operator bond conditions include:

  • 19CFR§113.73(a): Agreement to comply with all laws and Customs regulations applicable to receipt, handling, and disposition of merchandise.
  • 19CFR§113.73(b): Agreement to pay duties, taxes, and charges
  • 19CFR§113.73(e): Agreement to pay any annual fees.

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Airport Customs Security Area (C11) Bonds

An airport customs security area bond is required by U.S. Customs to ensure that any principal operating within the secured areas of an airport complies with all pertinent regulations.

Airport customs security area bond conditions are set forth in 19CFR§113.62, 19CFR§113.63, and 19CFR§113.64.

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