Demystifying the 102 Rule: Key to Customs Bond Requirements and ISF Compliance

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The 102 rule in customs brokerage is a critical regulation imposed by US Customs and Border Protection (CBP) that governs the amount of customs bond required for importers engaged in international trade. Compliance with this rule is crucial for importers to avoid penalties, delays, and loss of business opportunities. To determine bond sufficiency under the 102 rule, importers must calculate their 12-month duty, fee, and tax liability based on the value of goods imported during a specified period. They must maintain a bond amount equal to at least 10% of this liability, with a minimum bond amount of $50,000.

If an importer's bond is found to be insufficient, CBP may issue a 301 form, also known as a Bond Sufficiency Notice, which requires the importer to increase their bond coverage within a specified timeframe. Failure to comply can result in penalties and bond cancellation. Importers facing bond insufficiency have several remedies available, such as increasing the bond amount, obtaining a separate bond for certain activities, or utilizing a continuous bond.

The 102 rule also has implications for Importer Security Filing (ISF) compliance. Importers must have adequate bond coverage to meet ISF requirements, as it is a prerequisite for filing the ISF. Failure to file or timely file the ISF can result in penalties and delays at the port of entry. Understanding and adhering to the 102 rule is therefore essential for importers to ensure compliance, avoid penalties, and maintain a smooth flow of international trade.
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Video Disclaimer Here: This video is solely for education and is not endorsed by any US government agency.

00:40 The 102 rule, or bond sufficiency rule, is a crucial regulation by U.S. Customs and Border Protection (CBP) that governs the amount of customs bond required for importers in international trade.

01:04 Compliance with the 102 rule is vital to avoid penalties, delays, and loss of business opportunities. Importers must maintain a bond amount equal to at least 10% of their 12-month duty, fee, and tax liability.

01:48 If an importer's bond is found insufficient, CBP may issue a Bond Sufficiency Notice (301 form) requiring the importer to increase bond coverage. Importers have options like increasing bond amount, obtaining separate bonds, or using a continuous bond.

02:29 The 102 rule also impacts Importer Security Filing (ISF) compliance, where importers must provide shipment information to CBP. Adequate bond coverage is necessary for ISF filing, making understanding the 102 rule essential for smooth international trade operations.