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ACTIVITY CODE 6

Wool, Fur & Textile Fiber Labeling Bond

The Wool Products Labeling Act, the Fur Products Labeling Act and the Textile Fiber Products Identification Act impose affirmative marking and disclosure requirements on imported textile and fur goods. When an importer cannot satisfy those requirements at the moment of entry, CBP may release the merchandise under an Activity Code 6 bond that guarantees compliance will follow.

The Wool Products Labeling Act, the Fur Products Labeling Act and the Textile Fiber Products Identification Act impose affirmative marking and disclosure requirements on imported textile and fur goods. When an importer cannot satisfy those requirements at the moment of entry, CBP may release the merchandise under an Activity Code 6 bond that guarantees compliance will follow.

The conditions are at 19 CFR § 113.68.

Who must post it

  • Importers of apparel, fabric, wool or fur products whose labeling is missing or non-compliant at the time of entry.

What the bond guarantees

  • That the merchandise will be marked, labeled and disclosed as the statutes require within the time CBP allows.
  • Alternatively, that the merchandise will be redelivered to CBP or exported.
  • Payment of liquidated damages if neither occurs.

How CBP sizes it

  • Single transaction only.
  • The amount is set by the port director based on the specific entry.

Practitioner notes

  • This bond is a cure mechanism, not a licence to import non-compliant goods; CBP expects the labeling deficiency to be fixed promptly.
  • Repeat use by the same importer draws scrutiny.

Frequently asked questions

Can I get a continuous labeling bond?

No. Activity Code 6 is single transaction only.

How is the amount determined?

By the port director, entry by entry.

What if I cannot relabel in time?

The goods must be redelivered to CBP or exported, or liquidated damages will be assessed against the bond.

Primary sources

Poindexter fleur de lis

About the author

Written by C. Constantin Poindexter, JD, CPCU, AFSB, ARe, ASLI — founder of Surety One, Inc. and CEO of Janus Assurance Re. He has underwritten surety and reinsurance for more than thirty years and is the author of A Practitioner's Guide to U.S. Customs Bonds, on which these pages are based.