When the U.S. International Trade Commission issues an exclusion order under Section 337 of the Tariff Act of 1930, the merchandise it covers is barred from entry. During the sixty-day presidential review period, and in any other period for which entry under bond is permitted, an importer may continue to bring the goods in by posting an Activity Code 12 bond in the amount the ITC sets.
The bond is filed under 19 CFR § 113.74 and the conditions and form in Appendix B to Part 113. CBP Form 301 cannot be used; a separate bond instrument is required.
Who must post it
- Importers of merchandise named in a Section 337 exclusion order who elect to enter goods during the presidential review period.
What the bond guarantees
- Payment to the complainant of the bond amount if the exclusion order becomes final and the entries are found to have caused the harm the order was meant to prevent.
How CBP sizes it
- Single transaction only, on the Appendix B instrument.
- The amount is set by the ITC in the exclusion order, often as a percentage of entered value and sometimes at 100 percent.
Practitioner notes
- The bond runs to the complainant in the ITC proceeding, not to CBP; the obligee structure is unusual and the instrument must be drafted accordingly.
- Coordinate with Section 337 counsel early. ITC bond amounts can be large and underwriting requires the order itself.
Frequently asked questions
Can I use Form 301 for an ITC bond?
No. Activity Code 12 requires a separate instrument in the form prescribed by Appendix B.
Who is the obligee?
The complainant in the Section 337 proceeding, which is why the bond is structured differently from other customs bonds.
How is the amount set?
By the ITC in the exclusion order.
Primary sources
