[Federal Register Volume 67, Number 140 (Monday, July 22, 2002)]
[Notices]
[Pages 47888-47889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18341]


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DEPARTMENT OF THE TREASURY

Customs Service


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

AGENCY: Customs Service, Department of the Treasury.

ACTION: General notice.

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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.

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.

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).

[[Page 47889]]

    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.

    Dated: July 16, 2002.
Jayson P. Ahern,
Assistant Commissioner, Office of Field Operations.
[FR Doc. 02-18341 Filed 7-19-02; 8:45 am]
BILLING CODE 4820-02-P