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April 2026, question 48

Entry / Entry Summary · Customs bonds

HK Importers, Inc. (HKI) has a continuous basic importation and entry bond in the amount of $200,000.00 with Total Country Surety. HKI is a client of Best CHB (Best). Best has a continuous basic importation and entry bond with Thrift Surety in the amount of $200,000.00. Best filed entry on January 13, 2026, on behalf of HKI, with HKI listed as the importer of record, for a shipment of wooden chairs with an entered value of $40,000.00. The shipment was released on the same day. Best scheduled the duties, taxes and fees owed on the shipment for ACH payment to CBP nine business days after the date of entry. Best also prepared the entry summary information for transmission to CBP. Due to a computer error at Best, the entry summary information was not transmitted, nor was the payment made. CBP issued a liquidated damages demand in the amount of $100.00 for the failure to file the entry summary information. Which of the following statements is FALSE?

  1. Best is liable to CBP for the payment of the liquidated damage demand amount because Best’s computer error caused the failure to file the entry summary data.
  2. HKI is liable for the payment of the liquidated damage demand amount because it is the importer of record.
  3. If the liquidated damage amount is not paid within 60 days of the demand and the principal has not filed a petition for relief, CBP will make a demand for payment on Total Country Surety.
  4. Thrift Surety has legal responsibility as a surety for the importation of the wooden chairs and may be notified by CBP if the duties owed are not tendered by HKI.
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CBP's answer: A. A: Best is liable to CBP for the payment of the liquidated damage demand amount because Best’s computer error caused the failure to file the entry summary data.

The question asks for the FALSE statement, and CBP keyed A. The entry was filed with HKI as importer of record and principal on the bond, and 113.62(a)(1) says the principal and surety are jointly and severally bound, so the liquidated damages demand runs against the importer of record and its surety (Total Country Surety), not against the broker because of its own computer error. Under 142.12(b) the entry summary was due within 10 working days, and under 142.15 a late summary draws a liquidated damages demand equal to what would have been demanded under a single entry bond, which here was the $100 demand.

When the transaction has been charged against a continuous bond, the demand shall be for the amount that would have been demanded if the merchandise had been released under a single entry bond. 19 CFR 142.15
the obligors (principal and surety, jointly and severally) agree to 19 CFR 113.62(a)(1)

Search for: failure to file entry summary timely liquidated damages

CBP's key cites: 19 CFR 113.62(a)(1)(i); 19 CFR 142.12(b); 19 CFR 141.101(a); 19 CFR 142.15

Change watch: § 113.62 changed in the April 1, 2026 eCFR (the quoted text is unchanged).

Question and key from CBP's April 2026 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).