Making the Move to ACE eBond-Enabled Software Ahead of Anticipated Deadlines

Importers, customs brokers and surety (insurance) companies are know the importance of electronic bond (eBond) processes within CBPs Automated Commercial Environment (ACE). The program provides an electronic mechanism for the submission of all bond types to CBP.

eBond processing allows sureties and agents to electronically submit electronic bond transactions into ACE as part of the Cargo Release program. An eBond is required for ACE cargo release and entry summary transactions.

The impetus for eBond was a 2011 audit by the Department of Homeland Security (DHS) Inspector General. The IG recommended that all bond transactions be centralized, citing execution errors and other issues that compromised CBP’s ability to collect on bonds. An audit estimated that $8 billion in importer/broker entries accepted by CBP during fiscal year 2009 contained errors that could have resulted in non-collection.

The eBond program builds on previously existing capabilities within ACE. The program already provides capabilities for filing electronic single transaction bonds (eSTBs). eBond expands that capability to include both eSTBs as well as continuous bonds.

Thanks to eBond, there is no longer a five- to ten-day waiting period for continuous bonds to go into effect. Other advantages include the ability to submit bonds 24x7 and the standardization of CBP bond practices across ports. This ends the need to physically provide paper bonds to the port to secure the release of cargo.

In eBond, the customs broker sends data to the surety, who then sends the approved bond to CBP. CBP sends an acceptance notification to the surety with a courtesy copy to a designated secondary party, usually the broker. After the broker transmits the entry filing in ACE, cargo release follows by matching the entry data with the bond data. Importer self-filers can receive notification of a bond by designating themselves as the secondary party for notification.

Additional Resources

Federal Register - eBond Test

Policies and Procedures for eBond

Instructions for Submitting Docs to CBP in Support of ACE Cargo Entries