What customs procedure allows an importer to post a cash bond equivalent to the duties and taxes due when an assessment is disputed, before release of the goods?

What customs procedure allows an importer to post a cash bond equivalent to the duties and taxes due when an assessment is disputed, before release of the goods?

• A. Tentative Release
• B. Bonded Release
• C. Immediate Release
• D. Release on Demand

Answer: (A)

When an assessment is disputed, authorities may allow tentative release by requiring a cash bond equal to the duties and taxes due. This lets the importer obtain release of the goods while the dispute is being resolved, with the bond providing security for the potential revenue. After the final determination, the bond is settled—any overpayment is refunded and any shortfall is paid. This approach specifically supports moving goods forward during a disagreement without leaving them held in customs custody. Bonded release involves releasing goods under bond within a bonded facility and isn’t tied to a disputed assessment. Immediate release means the goods come out without a security or dispute, and release on demand isn’t a standard term for this scenario.

When an assessment is disputed, authorities may allow tentative release by requiring a cash bond equal to the duties and taxes due. This lets the importer obtain release of the goods while the dispute is being resolved, with the bond providing security for the potential revenue. After the final determination, the bond is settled—any overpayment is refunded and any shortfall is paid. This approach specifically supports moving goods forward during a disagreement without leaving them held in customs custody.

Bonded release involves releasing goods under bond within a bonded facility and isn’t tied to a disputed assessment. Immediate release means the goods come out without a security or dispute, and release on demand isn’t a standard term for this scenario.