Fisheries Inspection Fees Bond - NOAA in All States
Table of Contents
Brief Summary
NOAA will not start contract seafood inspection at your plant until a payment guarantee is in place, and the minimum is the greater of three months of inspection cost or $10,000. A surety bond lets you meet that requirement without tying up a non-interest bearing cash advance with NOAA Finance.
Processors and other participants who sign a contract with NOAA's Seafood Inspection Program must post a guarantee of payment before inspection begins. Under Chapter 11 of the Seafood Inspection Manual, the guarantee must equal at least three months of contracted inspection cost or $10,000, whichever is greater. A surety bond on NOAA form 89-801 is one of two accepted options. The other is a cash advance.
We can help with all All States bonds!
How to Apply for a Fisheries Inspection Fees Bond:
- Ask your regional Seafood Inspection office for the required guarantee amount under your contract.
- Confirm the amount is at least three months of contracted inspection cost or $10,000, whichever is greater.
- Complete the bond application with your business and owner information.
- Have the bond issued on NOAA form 89-801 with the surety's power of attorney attached.
- Deliver the signed and sealed bond to the regional office before inspection service starts.
Detailed Information About the All States Fisheries Inspection Fees Bond:
Figure out your amount first
The bond is not a flat figure. The Seafood Inspection Manual sets the floor at three months of the cost of the contracted inspection services or $10,000, whichever is greater. Your regional inspection office sets the guarantee based on the service you are contracting for. Contract inspection is billed by the hour, and the manual lists current contract rates of $238 for regular time, $357 for overtime and $476 for Sundays and holidays, plus a 10 percent night differential for hours between 6:00 p.m. and 6:00 a.m. A plant using a full time inspector will need a bond well above $10,000.
Why NOAA asks for it
The Seafood Inspection Program is a voluntary, fee for service program run by NOAA Fisheries under 50 CFR Part 260. Section 260.30 says fees, payment guarantees, charges and payments follow the regulations and the Financial Policy in the Seafood Inspection Manual. Contract participants are billed monthly and must pay within 30 days. If a bill goes unpaid, NOAA sends follow up letters at 60 and 90 days, and the second one warns that service will stop and the surety bond will be collected if payment does not arrive within 15 days.
NOAA also stops inspection at a contract establishment once unpaid receivables reach the amount of the guarantee. Service resumes only after the balance comes down. If your inspection hours grow, ask whether your bond should grow with them.
Two ways to comply
You can post an advance of funds of at least three months of cost by check, wire or credit card. That deposit earns no interest. Or you can post a surety bond for the same minimum. NOAA form 89-801, Surety Bond, may be used. The regional office checks that the bond is completed, signed and sealed, with the surety's power of attorney attached, keeps a copy and forwards the original with the contract to headquarters.
Cancellation
The bond requires the surety to give Seafood Inspection headquarters and the regional office 30 days written notice before it ends. If notice arrives, the regional office will tell you a new bond or other guarantee is needed by the termination date to keep inspection going.
Cost
The premium is a percentage of the bond amount. The surety weighs the business's credit, financial statements and payment history.
Eligibility and Requirements for an All States Fisheries Inspection Fees Bond:
- Obligee is NOAA, U.S. Department of Commerce, Seafood Inspection Program.
- Minimum of three months contracted inspection cost or $10,000, whichever is greater.
- NOAA form 89-801 Surety Bond may be used.
- Power of attorney from the surety attached.
- 30 days written notice from the surety before cancellation.
All States Fisheries Inspection Fees Bond FAQs:
At least three months of the cost of your contracted inspection services or $10,000, whichever is greater. Your regional inspection office sets the figure from your contract.
The manual ties the guarantee of payment to contract inspection services. Non-contract work is billed by individual invoice. Ask your regional office if you are unsure which applies.
Yes. NOAA accepts an advance of funds of at least three months cost by check, wire transfer or credit card. The deposit does not earn interest.
Inspection stops once unpaid receivables equal the guarantee. After the 90 day follow up letter, NOAA can collect on the surety bond if payment is not received within 15 days.
It is a percentage of the bond amount. The rate depends on the business's credit and financial strength. We quote it once you apply.
