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Notice

Use or Replacement of Continuous Bonds That Were Destroyed in New York

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

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AGENCY:

Customs Service, Department of the Treasury.

ACTION:

General notice.

SUMMARY:

This notice advises the public that importers will be afforded additional time to follow the procedures previously prescribed to ensure continuous bond coverage on future import transactions in the case of continuous bonds maintained by Customs in New York that were destroyed in the terrorist attack on September 11, 2001.

DATES:

A copy of a current bond must be provided to Customs, or a new bond must be filed with Customs, on or before August 12, 2002.

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FOR FURTHER INFORMATION CONTACT:

For questions regarding operational issues: The Entry and Drawback Management Branch, Office of Field Operations (202-927-0360).

For inquiries about specific bonds: The Customs Bond Unit, Elizabeth, New Jersey (201-443-0234). A party making a telephonic inquiry regarding a specific bond should be prepared to provide its importer name and identification number.

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SUPPLEMENTARY INFORMATION:

Background

The Customs laws and regulations require the posting of a surety bond to secure Customs transactions involving specific types of activities (for example, the importation and entry of merchandise, the custody of imported merchandise, the arrival and clearance of conveyances). A Customs bond may be approved by Customs for a particular activity involving one individual Customs transaction (for example, a single entry bond) or may be approved by Customs as a continuous bond for a particular activity involving multiple Customs transactions (for example, a continuous importation and entry bond). A single transaction bond normally is approved by Customs when presented in connection with the individual transaction to which it relates and remains in effect only for purposes of that one transaction. An application for a continuous transaction bond normally is filed with, and approved by, Customs before all of the transactions to which it relates arise, and the approved bond is retained on file by Customs and remains in effect until terminated by the parties to the bond.

The terrorist attack on the World Trade Center in New York on September 11, 2001, resulted in the destruction of Customs bonds and other documents that were being stored at the Customs offices at 6 World Trade Center. The destroyed bonds and other documents included, but were not limited to, continuous bonds which were filed for approval at the New York Seaport (port code 1001) and at the New York Regional Port (port code 7200).

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On May 13, 2002, Customs published in the Federal Register (67 FR 32082) a general notice setting forth procedures for importers to follow in order to ensure uninterrupted bond coverage and avoid the need to file an application for a new continuous bond. That notice provided that each party having a continuous bond of any type involving activity code 1 to 5 that has an effective date of September 11, 2001, or earlier and that was filed at either of the two ports referred to above and that was in effect on the date of publication of the notice must, within 30 days of the date of publication of the notice (that is, on or before June 12, 2002), provide Customs with a copy of that bond together with the Customs bond number and copies of any riders to the bond. The notice further stated that failure to provide a copy of the bond within the prescribed 30-day period would cause Customs to refuse to accept a reference to the bond to guarantee future transactions and that, if a copy of the bond could not be provided, the party must submit to Customs a new continuous bond application within the same 30-day period. For purposes of that notice, the term “party” referred to any individual or business association that prior to, or on or after, September 11, 2001, had engaged in activities secured by a continuous bond described above as having been destroyed on that date, either by virtue of being listed as a “Principal” on the bond or by virtue of being listed as a user in “Section III” on the bond. Finally, the May 13, 2002, notice stated that the copy of the continuous bond or the new continuous bond application should be sent to either of the following addresses:

U.S. Customs Service, Attention: Bond Desk, 1210 Corbin Street, Elizabeth, New Jersey 07201;

  or,

U.S. Customs Service, Attention: Bond Desk, Bldg. 77, JFK Airport,Jamaica, New York 11430.

Extension of Submission Period

Following publication of the May 13, 2002, notice, various trade associations advised Customs that additional time would be required for their members to comply with the procedures set forth in the notice. Moreover, Customs has, to date, received significantly fewer copies of bonds or new bond applications than it expected to receive. Customs therefore has determined that an additional 60 days should be allowed for submission of the prescribed bond information or a new bond application.

Accordingly, subject to the other terms and conditions of the May 13, 2002, notice as described above, Customs will continue to accept a copy of a destroyed bond or a new continuous bond application until August 12, 2002. Failure to provide a copy of a destroyed bond by that date will cause Customs to refuse to accept a reference to the bond to guarantee future transactions.

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Dated: July 16, 2002.

Jayson P. Ahern,

Assistant Commissioner, Office of Field Operations.

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[FR Doc. 02-18341 Filed 7-19-02; 8:45 am]

BILLING CODE 4820-02-P