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Clarification on Using the In-Bond Authorization Functionality in ACE

05/31/2012

The following information is being provided to clarify the in-bond authorization functionality
 Partners Authorized and the Result
 
 1. PARTNER AUTHORIZED: Bond Owner authorizes no partners

RESULT: Anyone can obligate the bond. No SCAC or filer codes are present in the in-bond authorization file in the ACE Portal.

2 PARTNER AUTHORIZED: Bond Owner authorizes self as partner

RESULT: Only the SCAC of the bond owner is listed in the in-bond authorization file in the ACE Portal. The bond owner can obligate the bond; all other partners are blocked from using the bond even if they show in the ACE Portal as authorized partners.

3 PARTNER AUTHORIZED: Bond Owner authorizes others as partners

RESULT: Only the bond owner and the partners listed in the in-bond authorization file in the ACE Portal can obligate the bond. The bond owner must first remove themselves from the ACE Portal as a user of the bond if they previously added their SCAC as an authorized partner.

Note: The bond owner can always obligate their own bond.

Truck carriers are reminded not to use the in-bond authorization functionality. The ACE Truck application has not been enhanced at this time to function with the new “In-bond Authorization” file in ACE M1 and therefore for ACE Truck created in-bonds the system may accept a in-bond shipment in ACE truck but will not issue the movement authorized message.
 
This could result in a truck or shipment being delayed at the border until the issue is resolved. If the trade uses the QP functionality there should be no issues as all QP in-bonds use the ACE M1 “In-bond Authorization” function and therefore if the in-bond is accepted the movement authorized message will be generated as normal.

The attached “In-Bond Authorization ACE Rail and Sea Carriers” user guide has been updated to reflect the clarification as has the “Information Notice: e-Manifest: Rail and Sea (M1). Updated information has been posted to CBP.gov.

M1_Information_Notice_for_Trade (PDF)In_Bond_Authorization_User_Guide (PDF)

Thank you for your continued support,

Crowley

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