Customs is currently working on an overhaul to Customs bonds and how they will be filed. We are dedicating this newsletter to Customs new eBond filing system and what it will mean to our broker and principal clients.
What is eBond?
eBond, short for Electronic Bond, is the new process Customs will be using to process single transaction and continuous bonds. Instead of sending a paper bond to Customs, as we do today, bonds will be filed electronically with Customs, vastly reducing the approval time by Customs.
When does eBond take effect?
Customs has advised that they plan to have ebond deployed on January 3, 2015, with full implantation by November 2015. Customs plans to introduce eBond with single transaction bonds (please see the sidebar) but then quickly incorporate continuous bonds into the process. We do not have a specific launch date for continuous bonds.
How is the eBond process different than the current process for continuous bonds?
The goal of this new process is to be faster and more streamlined for the processing of the bonds by Customs.
Currently, the filing of a continuous bond with Customs includes the filing of many signed documents, including a 301 bond form, a 5106 form, letter of application etc. Once these forms are filed with Customs, Customs will then input the bond into their system. Currently it takes Customs about 5 to 10 business days to input a bond from the date the bond is filed. Once the bond is input by Customs, a Customs bond number is assigned as verification that the bond has been entered into the Customs database.
Can we still file bonds with the traditional bond forms using the existing system?
Customs has indicated that they will still accept the traditional bond forms and continue to process bonds filed using the current bond filing process.
Custom Bond Application -TO FILE C.F. 301 — CONTINUOUS