Home › Discussion › Bonds › Quiz 7, Question 3
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Thanks in advance – Could you provide context as to where the question itself implied whether the articles were or were not subject to OGA/PGA requirements and those that did. The way it used only the word ‘restricted’ to describe the merchandise, I thought it may not be subject to OGA/PGA requirements (rather than that it did, as the correct answer would have one believe) and don’t want to make the same mistake on the exam!
Monetary Guidelines for Setting Bond Amounts: Activity 1 – Importer or Broker – Single Transaction
a. Generally, a single transaction, Activity Code 1, Importer or Broker bond (for a consumption entry, immediate delivery, to cover articles entered or withdrawn from a warehouse, etc.) will be executed in an amount not less than the total entered value plus all duties, taxes, and fees which apply, unless the merchandise being imported falls into one of the following categories. In these cases, the bond will be executed in an amount which is not less than three times the total entered value of the merchandise.3. Question 1 point
What is the correct amount for a single entry bond covering a shipment of restricted merchandise WITHOUT quota/visa requirements?A. The total entered value plus duties, taxes and fees
B. Ten percent of the total entered value
C. Three times the total entered value plus duties, taxes and fees
D. The amount of the duties, taxes and fees only
E. Three times the total entered valueCorrect choice is: E
Explanation: Directive 3510-004, Attachment, Activity 1Prohibited means the item is forbidden by law to enter the United States. Examples of prohibited items are dangerous toys, cars that don’t protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol. Restricted means that special licenses or permits are required from a federal agency before the item is allowed to enter the United States. Examples of restricted items include firearms, certain fruits and vegetables, animal products, animal by products, and some animals.
Activity 1 of the Attachment to Directive 3510-004 lists certain categories of imported merchandise where the bond will be executed in an amount which is not less than three times the total entered value of the merchandise. Para 1 lists 1. MERCHANDISE SUBJECT TO OTHER AGENCY REQUIREMENTS WHERE FAILURE TO REDELIVER COULD POSE A THREAT TO THE PUBLIC HEALTH AND SAFETY
These are restricted items where special licenses or permits are required from a federal agency before the item is allowed to enter the United States and therefore for these items the bond will be required to be executed in an amount which is not less than three times the total entered value of the merchandise.
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