Cargo Systems Messaging Service

CSMS #47894086 - Bonds Securing Customs Activities for Suspended or Debarred Persons

When U.S. Customs and Border Protection (CBP), or any other Federal agency, suspends or debars a person (the word “person” means any individual, corporation, partnership, association, unit of government, or legal entity, however organized), it excludes that person from participating in certain procurement or nonprocurement Federal transactions, such as government contracts, subcontracts, grants, cooperative agreements, scholarships, fellowships, contracts of assistance, loans, loan guarantees, subsidies, and other Federal assistance programs, for the duration of his or her suspension and/or debarment. Such exclusion protects these Federal transactions from waste, fraud, abuse, poor performance, or noncompliance.

Effective May 11, 2021, pursuant to the authority granted by 19 U.S.C. § 1623 and 19 C.F.R. § 113.2, the Senior Official Performing the Duties of the Commissioner of CBP revoked the authority of all CBP officials to permit a person who is suspended or debarred by CBP to meet the bond requirements of any customs activity using a continuous bond, for the duration of that person’s suspension or debarment, unless a continuous bond is the only form of bond acceptable for that activity, such as operating a foreign trade zone (19 C.F.R. § 113.73). For persons who are suspended or debarred by another Federal agency, the Office of Trade, Trade Policy and Programs, is authorized to evaluate and decide, either categorically or on a case-by-case basis, whether to permit such persons who are suspended or debarred by another Federal agency to use a continuous bond to secure their customs activities during the period of their suspension or debarment.

The Office of Trade, Suspension and Debarment Branch, will ensure that persons suspended or debarred by CBP are listed as excluded by CBP on the System for Award Management (SAM) website (www.SAM.gov). See the attachment, “Finding CBP Exclusions in SAM”, for instructions on how to search for persons suspended or debarred by CBP on the SAM website.

The Office of Finance, Revenue Division, will provide written notice to any person suspended or debarred by CBP or any person suspended or debarred by another Federal agency that CBP has decided not to permit use of a continuous bond to secure that person’s customs activities, and that person’s continuous bond surety (as applicable), at least 15 calendar days prior to the first customs activity that cannot be secured by a continuous bond under this policy.

Sureties and surety filers are encouraged to ensure that new or replacement continuous bonds are not filed in the Automated Commercial Environment (ACE) eBond module and that any existing continuous bonds are terminated in ACE eBond for persons suspended or debarred by CBP and listed as excluded by CBP on the SAM website.

Sureties and surety filers are also encouraged to work with their clients to ensure that new or replacement continuous bonds are not filed in the ACE eBond module and that any existing continuous bonds are terminated in ACE eBond for persons who have been suspended or debarred by another Federal agency and listed as excluded by that Federal agency on the SAM website, where written notice has been issued to the person and that person’s continuous bond surety (as applicable) by the Office of Finance, Revenue Division, because CBP has decided not to permit use of a continuous bond to secure that person’s customs activities.

The Office of Finance, Revenue Division, will continue to monitor continuous bonds and will ensure that any continuous bonds that are not terminated after issuance of the written notice described above are rendered insufficient, as necessary, for persons suspended or debarred by CBP or for persons suspended or debarred by another Federal agency that CBP has decided not to permit use of a continuous bond to secure that person’s customs activities. In addition, any new or replacement continuous bonds will be rendered insufficient, as necessary, if filed for persons suspended or debarred by CBP or for persons suspended or debarred by another Federal agency that CBP has decided to not to permit use of a continuous bond to secure that person’s customs activities.

When a person’s suspension and/or debarment terminates, use of a continuous bond to secure customs activities may resume.

Consistent with existing CBP regulations and policy, persons not permitted to use a continuous bond are still permitted to use single transaction bonds or cash in lieu of surety (for single transactions only) to engage in customs activities. CBP officials remain authorized to take additional actions as authorized by law, regulation, or agency policy when the circumstances so warrant, such as requiring additional bonding to protect the revenue or to ensure legal compliance.

This new policy will be included in the next version (version 10.75) of the Automated Commercial Environment Entry Summary Business Process Document posted on CBP.gov.

CBP will post the language from this CSMS, the attachment, “Finding CBP Exclusions in SAM”, and a Frequently Asked Questions document to the Bond Policy section of CBP.gov.

Questions related to this new policy should be directed to Office of Trade, Trade Policy and Programs, Bond Policy at otbonds@cbp.dhs.gov.