At J.O. Alvarez, Inc., part of our commitment to you is staying ahead of regulatory changes that may impact your operations. On February 13, U.S. Customs and Border Protection (CBP) published a proposed rule that would require most customs bonds to be filed electronically.

So, what’s changing?

Moving From Paper to Fully Electronic Bonds

CBP is proposing to officially replace the remaining paper-based bond process with a centralized electronic system. Under the proposed rule:

• The surety would electronically transmit the bond to CBP, or

• The principal would submit it electronically when posting a cash bond in lieu of a surety.

CBP’s goal is to further centralize and streamline the bond program as part of its broader automation efforts.

Why CBP Has the Authority to Do This

Under Section 623 of the Tariff Act of 1930 (19 U.S.C. § 1623), CBP has broad authority to require bonds when necessary to protect revenue and ensure compliance with customs laws and regulations. This proposal falls squarely within that authority.

What Does This Mean for Importers?

For many of you, bond activity is already largely electronic. However, formalizing this requirement could:

• Eliminate any remaining paper submissions

• Standardize transmission requirements

• Potentially affect internal compliance processes or coordination with sureties

At this stage, this is only a proposed rule. Industry comments are due by April 14, and we expect additional guidance if the rule is finalized.

If the rule moves forward, we will provide clear, practical guidance to ensure your bond coverage remains seamless and compliant.

If you have questions about your current bond structure or future requirements, our team is here to help.