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April 2024, question 43

Entry / Entry Summary · Customs bonds

Yellow Submarine Brokerage (YSB), a Customs broker with filer code YS1 assisted its importer client, Classy Duds, in obtaining bond No. 24C001ZZZ (bond), pictured above. For which ONE of the following entries will Bond No. 24C001ZZZ be effective?

  1. Yellow Submarine Brokerage (YSB) files entry type 01 for Classy Duds on an air shipment of commercial goods valued at $25,000.00 that arrived on December 29, 2023, and cleared the next day.
  2. YSB receives documents for Classy Duds regarding an ocean shipment of commercial goods valued at $500,000.00 on January 31, 2024. The ocean shipment is due to arrive in ten (10) days. It arrives as scheduled and clears.
  3. YSB filed entry / entry summary information along with the payment of duties, taxes, and fees on a Classy Duds shipment valued at $245.00 on January 31, 2024 and the shipment liquidated on February 9, 2024.
  4. YSB pre-filed entry / entry summary information for Classy Duds on an ocean shipment valued at $300,000.00 on December 27, 2023. The ocean shipment is scheduled to arrive on January 20, 2024. The shipment arrives as scheduled and clears immediately.
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CBP's answer: B. B: YSB receives documents for Classy Duds regarding an ocean shipment of commercial goods valued at $500,000.00 on January 31, 2024. The ocean shipment is due to arrive in ten (10) days. It arrives as scheduled and clears.

A continuous bond is effective on the effective date shown on CBP Form 301, so the bond covers entries made on or after that date and not earlier ones. The answer is B, the shipment that arrives and clears after the bond's date. The bond picture was not available as an image here, so the dates in the other choices could not be re-checked against it.

A continuous bond is effective on the effective date identified on CBP Form 301. 19 CFR 113.26(c)

Search for: continuous bond effective date CBP Form 301

CBP's key cites: 19 CFR 113.26(c)

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).