Each Friday, the Wizard joins us to share an answer to one of the questions asked during the week. This week’s question concerns single entry bond amounts.
Question:
Does the list of OGA’s found in CD 3510-004 requiring a single entry bond for 3 times the entered value encompass only the OGA’s listed or do all OGA’s require a single entry bond for three times the value? Would an imported product regulated by the DOT require a single entry bond for 3 times the value?
Does the list of OGA’s found in CD 3510-004 requiring a single entry bond for 3 times the entered value encompass only the OGA’s listed or do all OGA’s require a single entry bond for three times the value? Would an imported product regulated by the DOT require a single entry bond for 3 times the value?
Reading the directive, we find that CBP requires a bond for three times the entered value for “merchandise subject to other government agency requirement where failure to redeliver the goods could pose a threat to the public health and safety”. Notice that this heading doesn’t state “subject to ALL other government agency requirements”. It also states that failure to redeliver could pose a threat to public safety. Without reading more, one might assume that anything regulated by the DOT, such as seat belts and brake hoses, might pose a safety hazard if not redelivered if the reason for redelivery was non-compliance with standards. However, scanning the list we find the following government agencies listed FDA EPA, BATF, CBSC, USDA-AMS, FCC and TSCA. Noticeably missing are the FWS and DOT. Thus, it appears that articles regulated by the DOT are not subject to single entry bonds in the amount of three times the entered value.
Still not sure? Let’s take a look at Question 51 from the April 2008 Customs Broker Exam.
CBP requires a single entry bond in the amount of three times the total entered value for _____.
A. medical instruments
B. musical instruments
C. patent leather shoes
D. metal furniture
E. works of art
Generally, a single transaction bond is executed in an amount not less than the total entered value plus all duties, taxes, and fees that apply. If the merchandise falls into one of the categories of merchandise subject to other agency requirements (FDA, EPA, BATF, CPSC, Agriculture, FCC and TSCA) where failure to redeliver could pose a threat to the public health and safety, then the bond will be executed in an amount which is not less than three times the total entered value of the merchandise. Answer B is not regulated by these agencies, and failure to redeliver a musical instrument would not pose a threat to public health or safety. Even though Answer C may be regulated by the FWS, it is not regulated by the agencies listed, and the shoes would not pose a threat to public health or safety. Answers D and E are not regulated by these agencies, and failure to redeliver furniture and works of art would not pose a threat to public health or safety. Answer A is the most correct answer because medical instruments are regulated by the FDA and could pose a threat to public health and safety.
Still not sure? Let’s take a look at Question 51 from the April 2008 Customs Broker Exam.
CBP requires a single entry bond in the amount of three times the total entered value for _____.
A. medical instruments
B. musical instruments
C. patent leather shoes
D. metal furniture
E. works of art
Generally, a single transaction bond is executed in an amount not less than the total entered value plus all duties, taxes, and fees that apply. If the merchandise falls into one of the categories of merchandise subject to other agency requirements (FDA, EPA, BATF, CPSC, Agriculture, FCC and TSCA) where failure to redeliver could pose a threat to the public health and safety, then the bond will be executed in an amount which is not less than three times the total entered value of the merchandise. Answer B is not regulated by these agencies, and failure to redeliver a musical instrument would not pose a threat to public health or safety. Even though Answer C may be regulated by the FWS, it is not regulated by the agencies listed, and the shoes would not pose a threat to public health or safety. Answers D and E are not regulated by these agencies, and failure to redeliver furniture and works of art would not pose a threat to public health or safety. Answer A is the most correct answer because medical instruments are regulated by the FDA and could pose a threat to public health and safety.
Do you have a question for the Wizard? Submit your question by clicking on the link in the space for “Ask the Wizard.” See you next Friday!
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