Bankruptcy Law Change: Priority for Customs Duty Claims for Sureties
This law modifies the rules for debt repayment when importing businesses file for bankruptcy. It allows entities that pay customs duties on behalf of a bankrupt company (such as surety bond providers) to inherit the high repayment priority normally reserved for the US government. This technical change aims to stabilize the market for customs bonds by improving recovery prospects for guarantors.
Key points
Changes the priority rules for customs duty claims in bankruptcy proceedings.
Entities that pay customs duties for bankrupt companies (sureties) gain the same high repayment priority as the federal government.
The change applies only to bankruptcy cases filed after the law takes effect.
Status:
Expired
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