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April 2024, question 41

Entry / Entry Summary · Customs bonds

Sean Reno Fashion (Sean Reno) is a clothing manufacturer in Chicago that imports textiles and apparel products. As part of a planned expansion of its sportwear line, Sean Reno applies to CBP for a continuous bond to secure multiple entries of merchandise over the coming year. In the calendar year prior to filing its application, Sean Reno imported merchandise under single transaction bonds at several different ports of entry. Which of the following is information that Sean Reno must include in its continuous bond application?

  1. Copies of the single transaction bonds that Sean Reno used in the previous calendar year.
  2. A specific description of the merchandise to be entered under the continuous bond, including estimated value and anticipated classification.
  3. The total amount of ordinary customs duties (including any taxes required by law to be treated as duties), plus the estimated amount of any other tax or taxes on the merchandise to be collected by CBP, accruing on all merchandise Sean Reno has imported during the calendar year preceding the date of the application.
  4. A statement of the duties and taxes Sean Reno estimates will accrue on all importations during the current year.
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CBP's answer: C. C: The total amount of ordinary customs duties (including any taxes required by law to be treated as duties), plus the estimated amount of any other tax or taxes on the merchandise to be collected by CBP, accruing on all merchandise Sean Reno has imported during the calendar year preceding the date of the application.

A continuous bond application must state the general character of the merchandise and the total ordinary customs duties and taxes accruing on all merchandise the principal imported during the calendar year before the application. That is C. Copies of past single transaction bonds, a detailed value and classification list and a forecast for the current year are not required items.

accruing on all merchandise imported by the principal during the calendar year preceding the date of the application 19 CFR 113.11(b)(1)(ii)

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Question and key from CBP's April 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).