Importers (principals) who fail to perform their obligations may be assessed a claim by CBP under the terms and conditions of their bond. In this case, there may be a claim for breach of duty payment obligation. CBP may then make a claim under the bond for unpaid duties. CBP may also issue a claim for liquidated damages if the principal breaches a different condition of the bond. The amount of liquidated damages is set by the conditions of the bond. No claim for liquidated damages can exceed the bond amount on the CBP Form 301.

CBP may demand payment from both the principal and surety if the bond principal cannot or won’t perform its obligations. Any claims made under the bond, including claims for liquidated damages, are jointly and severally liable between the bond principal and surety. As a result, CBP will accept payment from either party in satisfaction of the claim. Sureties can make legal claims against bond principals when they pay CBP, but CBP is never involved in these actions. Importers can be placed on the CBP Sanctions List, which prevents further entry approvals.