March 20, 2014 | Customs Bonds

eBond in ACE: Why is it Important to the Customs Broker Community?

Share This:

Background
The eBond concept has been discussed by CBP, the surety industry and the customs broker community since the mid 1980’s. A 2011 DHS audit report essentially mandated that CBP centralize STB filing. This is achievable only via an eBond system. After decades of discussion, many industry members may be skeptical that eBond will happen. However, CBP’s current level of urgency means that the time has come for the industry to embrace eBond. There will be no paper alternative for bond filing once CBP mandates ACE use for entries in November 2015.

Why Is This Important?
The development of eBond began in ACE Increment 5 on February 5, 2014. The filing of eSTBs will become mandatory for all ACE entries on January 3, 2015. ACE is scheduled to become the system of record for all entry filing in November 2015. It is vital that you work with your software vendor to ensure readiness for ACE entry filing by the deadline.

The eBond Process
In the eBond environment, the submission of all bond data to CBP will be via the surety. The surety industry has tentatively identified a standard set of STB data elements to approve a bond. Prior to entry filing, the customs broker sends STB data to the surety, who then sends the approved bond to CBP. Upon acceptance, CBP sends official notification to the surety and a courtesy notification to the designated Secondary Notify Party (broker). The broker then transmits the entry in ACE. Release follows the matching (validation) of the bond/entry data in ACE.

For continuous bonds, the customs broker files bond data with CBP via our existing bond issuing platform, FastBond™. Instead of printing a bond, you simply enter the data into FastBond™, which in turn handles the transmission to CBP. Continuous bond filing and CBP approval should become virtually immediate.

Issuing Authority
Customs brokers have issuing authority enabling them to file the vast majority of bonds required by their importer clients. We realize that bonds are a very important revenue stream to brokers. The authority you have today will be the authority you will have in the electronic world. We will not permit eBond to change that.

Benefits of eBond for All Parties
Bond issuance capability will be 24/7 and an electronic transmission of STB data will expedite the release of cargo. Also, ACE eSTB entries are eligible for RLF. Continuous bonds will be filed and accepted almost immediately. For CBP, eBond facilitates full customs bond centralization while furnishing the added benefit of explicit acknowledgment of liability by surety. Surety processing becomes more orderly and efficient. It reinforces relationships for all parties.

Moving Forward
CBP is serious and committed to meeting the deadline. In November 2015, all entries must be filed in ACE. The deadline is fast approaching, therefore, it is imperative to plan and work with your software vendor to ensure you will be ready when ACS is decommissioned.

Contact us at infospot@roanokegroup.com to learn more. We will be providing periodic updates as CBP moves further along with eBond development in the coming months

Share This:

Roanoke Whitepaper – An Importer’s Guide to Antidumping & Countervailing Duties

Many Customs and trade laws carry significant financial consequences for importers, and of these laws, antidumping and countervailing duties pose some of the most dangerous ramifications. These provisions exist to protect domestic industries and producers from unfair foreign competition. Under U.S. law, goods are subject to assessment of “ordinary duties” based on their classification under the Harmonized Tariff Schedule of the United States. However, U.S. law also defines certain situations in which goods are being sold to the U.S. at prices below cost of production or below “fair market value”. This is referred to as “dumping”. Like ADD, CVD is […]

Customs Bonds

Important Changes to ISF Regulations, Proposed Rule

The “interim final” rule that became effective on January, 26, 2009 has now – for practical purposes – become the final rule as to a great many ISF filings. However, for some time CBP and the trade have been discussing an urgent need for limited changes to Part 149 of the Customs Regulations, primarily to eliminate confusion as to ISF-5* and certain other filing responsibilities. The result has been the publication of a notice of proposed rulemaking in the July 6 Federal Register. The comment period expires on September 6, 2016. CBP has addressed the situation by drafting a new definition of […]

Customs Bonds, Industry Insights

Striking the Balance: Managing Tariffs and Bond Stacking Liability

By Matt Zehner, VP, Surety Information & Analysis, Roanoke Insurance Group Inc. Recently, my colleague Colleen introduced Tariffs and Bond Stacking Liability and the need for importers to monitor bond sufficiency on a regular basis, with the goal to avoid a short-notice demand from CBP to terminate and file a larger bond. One significant reason to planning the timing of when to make use of a larger continuous bond is that by reducing the number of times the bond amount changes over time, the bond principal is able to minimize the accumulation of bond liability. There are ancillary benefits to importers when […]

Customs Bonds

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Who We Serve

Resource Center

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

eBond in ACE: Why is it Important to the Customs Broker Community?

Related

Solutions that Go the Distance.