In December 2002, US Customs enacted the 24 Hour Rule. This rule requires NVOCCs to transmit certain required shipping information through the Sea AMS system to the US Customs 24 hours prior to the goods being laden on board an ocean vessel destined for the US. In order to comply with this rule, NVOCCs have 2 options:
1. They can provide the required shipping information to the carrier and have the carrier transmit this information to the US Customs via the carrier’s Sea AMS system
2. They can either build their own Sea AMS system or sign up through a 3rd Party Service Provider to report directly to US Customs
If the NVOCC decides to use their own Sea AMS System or subscribe to a 3rd Party Service Provider to transmit this information, they are required by US Customs to post a Customs bond, the International Carrier Bond (ICB or Activity Code 3 Bond) with a minimum bond amount of US $50,000.
As a US Bond specialist Risk Management is the leading US Customs bond provider in Asia. With our expertise and knowledge, we have helped hundreds of foreign NVOCCs located in Asia to comply with the bonding requirements of US Customs.
Application Procedures for the ICB:
1. A completed and signed Application Form
2. Current audited financial statements including balance sheet, profit/loss statement, and annual report (if applicable)
3. Copy of the applicant’s business registration certificate
Other required information:
• Standard Carrier Alpha Code (SCAC) Code – this code is needed for input into the Sea AMS system. If you do not already have one, you can apply for one through the website of the National Motor Freight Traffic Association at www.nmfta.org. The website will guide you through the application process.
• Importer Number / Tax ID Number – As a foreign NVOCC, you may not have a US Tax ID Number. In this case, you must apply for an Importer Number by completing the Form 5106 and sending the application to one of the US Customs offices
• If the financial statements are not acceptable, the surety may require full collateral in the form of an L/C. The L/C must be in the exact wording provided the surety company.
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