March 20, 2014 | Customs Bonds

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

Share This:
Featured Image

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:

Related


Upcoming ACE Deadlines

July 23, 2016 July 23 is next in CBP’s series of deadlines for filing cargo release and entry summary information in ACE. On that date, CBP will require entry types 02, 07, 12, 21, 22, 31, 32, 34 and 38 filings to be made in ACE. While some PGA data sets are not ready for ACE, the CBP portion is still required to be filed in ACE. For practical purposes, this means that all Activity Code 1 single transaction bonds will be eBonds by July 23 and not be submitted on Form 301 (by paper or email). eBond STBs must […]

Customs Bonds, Industry Insights

Save Money and Avoid Delays: Expert Tips for Customs Bond-Compliance

Written by Colleen Clarke, SVP, Surety Trade Relations and Business Development Driven by the onset of the trade remedy tariffs in Spring 2018, duties owed on imported goods more than doubled and continue to grow, especially due to by additional duties on goods imported from China. A Surge in Duties, Taxes, and Fees According to Customs and Border Protection’s (CBP) Trade Statistics, the total amount of duties, taxes and fees collected in FY 2023 was $92.3 billion.  This was a 17.46% decrease from FY 2022, however the amount of duties, taxes and fees increased over 220% compared to FY 2018.  […]

Customs Bonds

Critical CBSA Updates Ahead of CARM R3 and Recommended Next Steps

As the Canada Border Services Agency (CBSA) prepares for the upcoming CARM Release 3 (R3) on October 21, 2024, two important notices have been issued to guide businesses through this transition. These notices outline key measures and processes impacting trade operations and compliance. Customs Notice 24-27- Transition Measures for CARM R3 Customs Notice 24-27 details the transition measures that will be implemented with CARM R3. These measures are designed to ensure continued border fluidity and the timely submission of accounting information and payment of duties and taxes. Importers should take note of the Release to Prior Payment (RPP) financial security […]

Canada, 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.

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

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo