During the in-bond movement, Exact Trucking's driver delivered the press directly to the importer's address instead of to the port of entry. Using this additional fact, which party will be liable for the breach resulting from mis-delivery of the press?
How to get there
From the facts: Fast created the CF 7512 naming Exact Trucking, "a carrier bonded under 19 CFR 113.63", as the bonded carrier for the Boston → Baltimore move.
19 CFR 18.8(a): LiabilityThe party whose bond is obligated on the transportation entry will be liable for breach of any of the requirements found in this part … This includes, but is not limited to shortages, irregular delivery, or non-delivery, at the port of destination … Any loss found to exist at the port of destination … will be presumed to have occurred while the merchandise was in the possession of the party whose bond was obligated …
Delivering to the importer's door instead of the port of destination is an irregular delivery. Exact Trucking's carrier bond is the one obligated on the in-bond entry. The answer is B.
Why the other choices are wrong
A) Shark Airlines: the airline carried the press into Boston and helped arrange the trucking, but it isn't the bonded carrier on the CF 7512.
C) Fast Brokers LLC: preparing the CF 7512 doesn't put the broker's bond on the movement. Liability follows the bond named on the transportation entry.
D) Baltimore Quick Printers: the importer received the goods but didn't obligate a bond on the in-bond entry.
Tip
In-bond liability = whose bond is on the 7512. The same party also owes the duties, taxes and fees on missing goods under § 18.8(c), and that isn't limited to the bond amount.
Sources: 19 CFR 18.8(a), (c); 113.63 (eCFR); exam exhibit p. 9.
CBP answer key: Answer B · 19 CFR 18.8(a)Source: CBP past exams ↗