Marine terminal operators handling international cargo at U.S. seaports stand between the carrier and the importer, and CBP holds them to their own set of obligations: cargo accounting, honoring holds and releases, redelivery on demand, and recordkeeping and reporting. Activity Code 17 bonds those obligations.
The terms and conditions were established by Notice of Specific Instruction published at Customs Bulletin and Decisions, Vol. 40, No. 52 (December 20, 2006), p. 7. CBP Form 301 is not used; a separate marine terminal operator bond instrument is required.
Who must post it
- Operators of container, breakbulk, bulk and ro-ro marine terminals receiving international cargo.
- Port authorities operating terminals directly.
- Stevedoring companies acting as terminal operator of record.
What the bond guarantees
- Receipt, custody and accounting for cargo from discharge until CBP release.
- Compliance with CBP holds, examinations and release instructions.
- Redelivery of cargo on CBP demand and payment of liquidated damages for cargo released without authorization.
How CBP sizes it
- Continuous only.
- Sized to the terminal's throughput and the value of cargo typically on the terminal, on a schedule set by CBP.
Practitioner notes
- Because the instrument is bespoke, allow additional time for drafting and CBP review compared with a Form 301 bond.
- Terminals that also operate bonded warehouse or CFS space need Activity Code 2 coverage for that space in addition to Activity Code 17.
Frequently asked questions
Is Form 301 used for the marine terminal operator bond?
No. Activity Code 17 requires a separate bond instrument under CBP's 2006 Notice of Specific Instruction.
Is it continuous?
Yes, continuous only.
Does it cover a bonded warehouse on the terminal?
No. Bonded warehouse and CFS operations are bonded separately under Activity Code 2.
Primary sources
