The Port Director in Buffalo, NY, notices that the Acme Steel Company has numerous Customs bills that are substantially past due. Moreover, the Port Director notices that Acme’s continuous Activity Code 1 bond liability coverage is now inadequate to protect the revenue of the United States. On March 3, 2003, the Buffalo Port Director informs Acme in writing that its immediate delivery privileges are suspended and that a new bond with increased liability is required. Acme uses immediate delivery releases because their clients do not carry any inventory and it relies on Acme to deliver just in time shipments. Acme calls you on the phone and asks what they must do to have their immediate delivery privileges reinstated. Which ONE of the following choices must Acme Steel do to have their immediate delivery privileges reinstated?
A) File a new CF 301 Activity Code 1 bond with an increase in liability within 10 working days from the date of the suspension notice.
B) Have current shipments released under immediate delivery in the broker’s name and under the broker’s bond.
C) File protests on the increased duty bills and the underlying entries (if appropriate).
D) Pay the delinquent Customs bills within 10 working days from the date of the suspension notice.
E) Apply for line release processing to take the place of immediate delivery release.
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The Answer is: D
Citation: 19 CFR 142.25; 142.26
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