1. U.S. Customs and Border Protection Office of Administration Revenue Division ‘ISF’(Importer Security Filing) and IPR Sample Bonds January 19, 2010 Casey Horn Section Chief, Surety Bonds and Accounts

2. 2 Background  Interim rule published in Fed’l Register (73 FR 71730) on 11/25/08  Bonding coverage required for ISF effective January 26, 2010 pursuant to Fed’l Register notice

3. 3 “How to” Establish ISF Bond Coverage Single Transactions Bonds:  Stand-alone  ‘Unified’ Continuous Bonds:  Existing continuous bonds  ISF bond

4. Single Transaction Bonds Stand-alone  Unique bond reference number (generated by Trade)  $10,000 liability amount  Use revised Appendix D language found in Fed’l Register (74 FR 68377) on 12/24/09  Cannot use CBP 301 form 4

5. Single Transaction Bonds Stand-alone (cont.)  ISF transaction number and bond reference number are added to the bond document  Within 12 hours after the ISF filing is accepted by CBP, the bond document must be received by the Revenue Division via email to ISF_Bond@cbp.dhs.gov ISF_Bond@cbp.dhs.gov 5

6. Single Transaction Bonds Stand-alone (cont.)  In most cases, the only response from CBP will consist of an auto-reply if the submission is emailed to ISF_Bond@cbp.dhs.govISF_Bond@cbp.dhs.gov  Email submissions should include a subject line with ‘unique’ transaction identifiers  Bond Team may reject these STBs to filer for correction ‘after the fact’ 6

7. Single Transaction Bonds ‘Unified filing option’  Unique bond reference number  Liability amount = existing STB required amount + $10,000  Use CBP 301 form  Filed with entry 7

8. 8 Continuous Bonds  Can use existing activity code 1, 2, 3, or 4 bonds

9. 9 Continuous Bonds  Can use existing activity code 1, 2, 3, or 4 bonds for all your ISF ‘needs’  Bond riders not required  For the overwhelming majority of the Trade community, ISF designed to have minimal ‘bond repercussions’

10. 10 Continuous Bonds ISF ‘stand-alone’ continuous bond  Must contain revised Appendix D language found in Fed’l Register (74 FR 68377) on 12/24/09  Cannot use CBP 301 form  Liability amount = $50,000  Bond application letter not required

11. 11 Continuous Bonds ISF ‘stand-alone’ continuous bond (cont.)  Can obtain & use this bond for ISF filings even if have other active continuous bond coverage  Doing so will not necessarily preclude CBP from making claims against any other ‘eligible’ continuous bonds

12. 12 Continuous Bonds ISF ‘stand-alone’ continuous bond (cont.)  File these bonds with the Revenue Division via email to ISF_Bond@cbp.dhs.govISF_Bond@cbp.dhs.gov  You may file these bonds right now! Sooner is better given the effective date of January 26th  Processed under same rules / guidelines as activity code 1 submissions to our Team

13. 13 IPR Sample Bonds  Requested by the Trade  Obtained by IPR ‘owner’  Eliminates the need to provide multiple STBs  Bond template & related info posted at http://www.cbp.gov/xp/cgov/trade/priority_tra de/ipr/

14. 14 IPR Sample Bonds  Submit via email to cbp.bondquestions@dhs.gov or via fax to (317) 614-4517 cbp.bondquestions@dhs.gov  Processed under same rules / guidelines as activity code 1 submissions to our Team  Minimum bond liability amount is $5000

15. Bonding for ISF / IPR Sample Bonds ISF Bond Questions?  ISF_Bond@cbp.dhs.gov ISF_Bond@cbp.dhs.gov  Security_Filing_General@cbp.dhs.gov Security_Filing_General@cbp.dhs.gov  (317) 614-4880 (Bond Team voicemail)  http://www.cbp.gov/xp/cgov/trade/cargo_secur ity/carriers/security_filing/ http://www.cbp.gov/xp/cgov/trade/cargo_secur ity/carriers/security_filing/  Casey.Horn@dhs.gov 15

16. Bonding for ISF / IPR Sample Bonds Continuous IPR Sample Bond Questions?  (317) 614-4880 (Bond Team voicemail)  Cbp.bondquestions@dhs.gov Cbp.bondquestions@dhs.gov  Casey.Horn@dhs.gov 16