October 2022 — Question 3
What type of bond is needed to operate as a custodian of bonded merchandise?
- ABond Type 1
- BBond Type 2✓ CBP's answer
- CBond Type 3
- DBond Type 4
- EBond Type 14
Why this answer
The cited bond provisions and the ACE bond chapter map bond activity codes to activities: activity code 1 is the basic importation and entry bond, while activity code 2 is the custodian of bonded merchandise bond, whose custodial conditions cover parties such as bonded carriers, cartmen, lightermen, and warehouse and container station operators, all of whom hold merchandise in bond. Operating as a custodian of bonded merchandise therefore requires a type 2 bond. Type 1 is the tempting distractor because it is the bond most filers deal with daily, but it secures an importer's own entries, not custody of bonded goods, and type 3 is the international carrier bond. Watch for: Defaulting to the familiar type 1 importer bond instead of the custodial activity code 2.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2022 examination.
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