19 U.S.C. 66, 1623, 1624.
Subpart E also issued under 19 U.S.C. 1484, 1551, 1565.
Section 113.74 also issued under 19 U.S.C. 1337.
By T.D. 03-14, 68 FR 13626, Mar. 20, 2003, the authority was amended by adding specific authorities for § 113.75 and appendix C, effective Apr. 21, 2003. For the convenience of the user, the added text is set forth as follows:
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*****
Section 113.75 and Appendix C also issued under 19 U.S.C. 1484b.
This part sets forth the general requirements applicable to bonds. It contains the general authority and powers of the Commissioner of Customs in requiring bonds, bond approval and execution, bond conditions, general and special bond requirements, the requirements which must be met to be either a principal or a surety, the requirements concerning the production of documents, the authority and manner of assessing liquidated damages and requirements for cancelling the bond or charges against a bond.
Where a bond or other security is not specifically required by law, the Commissioner of Customs, pursuant to Treasury Department Order No. 165 Revised, as amended (T.D. 53654, 19 FR 7241, November 6, 1954), may by regulation or specific instruction require, or authorize the port director to require, such bonds or other security considered necessary for the protection of the revenue or to assure compliance with any pertinent law, regulation, or instruction.
Whenever a bond is required or authorized by law, regulation, or instruction, the Commissioner of Customs may:
(a) Prescribe the conditions and form of the bond and fix the amount of penalty, whether for the payment of liquidated damages, or of a penal sum, except as otherwise specifically provided by law.
(b) Provide for the approval of the sureties on the bond, without regard to any general provision of law.
(c) Authorize the execution of a term bond, the conditions of which shall extend to and cover similar cases of importations over a period of time, not to exceed one year or such longer period he may fix, when in his opinion special circumstances warrant a longer period.
(d) Authorize the taking of a consolidated bond (single entry or term) in lieu of separate bonds to assure compliance with two or more provisions of law, regulation, or instruction. Such a consolidated bond shall have the same force and effect as the separate bonds in lieu of which it was taken. The Commissioner of Customs may fix the penalty for violation of a consolidated bond without regard to any other provision of law, regulation, or instruction.
The surety, as well as the principal, remains liable on a terminated bond for obligations incurred prior to termination.
(a)
(b)
Each person who is required by law, regulation, or specific instruction to post a bond to secure a Customs transaction or multiple transactions must submit the bond on Customs Form 301. If the transaction(s) will occur at one Customs port, the bond shall be filed with and approved by the director of that port where the transaction(s) will
(a)
(b)
(1)
(i) The general character of the merchandise to be entered; and
(ii) The total amount of ordinary Customs duties (including any taxes required by law to be treated as duties) accruing on all merchandise imported by the principal during the calendar year preceding the date of the application, plus the estimated amount of any other tax or taxes on the merchandise to be collected by Customs. The total amount of duties and taxes shall be that which would have been required to be deposited had the merchandise been entered for consumption even though some or all of the merchandise may have been entered under bond. If the value or nature of the merchandise to be imported will change in any material respect during the next year the change shall be identified. If no imports were made during the calendar year prior to the application, a statement of the duties and taxes it is estimated will accrue on all importations during the current year shall be submitted.
(2)
(c)
I certify that the factual information contained in this application is true and accurate and any information provided which is based upon estimates is based upon the best information available on the date of this application.
(a)
(b)
(1) The prior record of the principal in timely payment of duties, taxes, and charges with respect to the transaction(s) involving such payments;
(2) The prior record of the principal in complying with Customs demands
(3) The value and nature of the merchandise involved in the transaction(s) to be secured;
(4) The degree and type of supervision that Customs will exercise over the transaction(s);
(5) The prior record of the principal in honoring bond commitments, including the payment of liquidated damages; and
(6) Any additional information contained in any application for a bond.
(c)
(d)
If the port director believes that none of the conditions contained in subpart G of this part is applicable to a transaction sought to be secured, the port director shall draft conditions which will cover the transaction, but before execution of the bond the conditions shall be submitted to Headquarters, Attention: Director, International Trade Compliance Division, for approval.
All bonds approved by the port director, except the bond containing the agreement to pay court costs (condemned goods) (see § 113.72) shall remain on file in the port office unless the port director is directed in writing by the Director, International Trade Compliance Division, as to other disposition. The bond containing the agreement to pay court costs (condemned goods), shall be transmitted to the United States attorney, as required by section 608, Tariff Act of 1930, as amended (19 U.S.C. 1608). The bond relating to repayment of erroneous drawback payment containing the conditions set forth in § 113.65 shall be retained in the appropriate drawback office.
(a)(1)
(2)
(b)
(c)
(d)
(e)
(a)
(b)
(c)
(a)
(2)
(b)
(c)
(d)
(a)
(1)
(2)
(3)
(b)
(c)
(d)
(1)
By this rider to the Customs Form 301,__ (bond number), dated __, executed by __, (former name), as principal, __, (importer number), the, __ (new name), hereby certifies that it is the same entity formerly known as __, (former name), and the principal and surety agree that they are responsible for any act secured by this bond done under principal's former name. Principal and surety agree to be bound under this bond to the same extent as if this bond had been executed in the principal's new name. This rider is effective on __ (date).
(2)
By this rider to Customs Form 301, __ (bond number) executed on __ (date), by __, (principal's name), as principal, __, (importer number), and __ (surety's name and code), as surety, which is effective on __ (date), the principal, surety or both, intend that the bond be amended to show __ (new address) as their address. The principal, surety or both, as may be appropriate agree to be bound as though this bond has been executed with the new address(s) shown.
(3)
By this rider to the Customs Form 301, __, (bond number), executed on __, (date), by __, (principal's name), as principal, __, (importer number) and __, (surety's name and code), as surety, which is effective on __ (date), the principal and surety agree that the below listed names are unincorporated units of the principal or are trade or business names used by the principal in its business and that this bond covers its business and that this bond covers any act done in those names to the same extent as though done in the name of the principal. The principal and surety agree that any such act shall be considered to be the act of the principal.
(ii)
By this rider to the Customs Form 301, __, (bond number), executed on __, (date), by __, (principals name) as principal, __, (importer number and __, (surety's name and surety code), as surety, which is effective on __, (date), the principal and surety agree that the below listed names of unincorporated units of the principal or trade or business names used by the principal in its business are deleted from the bond effective upon the date of approval of the rider by the appropriate Customs bond approval official.
When a seal is required, the seal shall be affixed adjoining the signatures of principal and surety, if individuals, and the corporate seal shall be affixed close to the signatures of persons signing on behalf of a corporation. Bonds shall be under seal in accordance with the law of the state in which executed. However, when the charter or governing statute of a corporation requires its acts to be evidenced by its corporate seal, such seal is required.
(a)
(b)
(c)
(d)
(e)
(a)
(b)
(c)
The general information pertaining to the principal and surety which must be given in the body of the bond is set forth in § 113.21.
(a)
(b)
(1) Attorney in fact for both principal and surety;
(2) Surety and attorney in fact for the principal; or
(3) Principal and attorney in fact for the surety.
(a)
(2)
(b)
(c)
(a)
(b)
(c)
(d)
(e)
A bond with a co-principal may be used by a person having a distinct legal status (e.g., individual, partnership, corporation) to join another person with the same distinct legal status on the bond. A bond with a co-principal shall not be used to join an entity which does not have a distinct legal status (e.g. an unincorporated division of a corporation). However, an entity which does not have a distinct legal status may use another bond if listed on the bond by the principal at the time of execution or by subsequent rider (see § 113.24). A bond with co-principal may not be used to join different legal entities (e.g. an individual and a corporation, a partnership and a corporation).
(a)
(b)
(2)
(3)
(4)
(c)
(1) Take an oath on Customs Form 3579, setting forth:
(i) The amount of assets over and above all debts and liabilities and such exemptions as may be allowed by law; and
(ii) The general description and the location of one or more pieces of real estate owned within the limits of the port and the value thereof over and above all encumbrances.
(2) Produce such evidence of solvency and financial responsibility as the port director may require.
(d)
(e)
A member of a partnership shall not be accepted as an individual surety on a bond executed by the partnership as principal. A partner may be an individual surety for a fellow partner on a bond if (a) the transaction is in an individual capacity and unrelated to the partnership, (b) sufficient unencumbered nonpartnership property is available as security, and (c) the individual qualifies as an individual surety under the provisions of § 113.35 of this part.
(a)
(b)
(c)
(d)
(e)
(f)
__ (name of surety), __ (surety code), a surety company incorporated under laws of the State of __, authorized to conduct a surety business in the State of __, and having its principal place of business at __ (address), and __ (names of surety), __ (surety code), a surety company incorporated under the laws of the State of __ and having its principal place of business at __ (address), as sureties, and __ (name of principal), as principal, are jointly and severally obligated to the United States in the amount of __ ($) on a bond executed on __ (date of execution) with each surety jointly and severally obligate with the principal in the amounts listed below and no more:
__ (name of surety) __
__ (name of surety) __
By this agreement the principal and sureties bind themselves and agree that for the purpose of allowing a joint action against any or all of them, and for that purpose only, this agreement and the bond under which they are obligated and which is incorporated by reference into this agreement, shall be treated as the joint and several as well as the several obligation of each of the parties.
Signed and sealed this __ day of __19__
(g)
(1)
(i) Corporate surety name and number,
(ii) Name and address of agent or attorney, and social security number of agent or attorney,
(iii) Port(s) where the agent or attorney is authorized to act,
(iv) Date of execution of power of attorney,
(v) Seal of the corporate surety,
(vi) Signature of any two principal officers of corporation, and
(vii) Dollar amount of authorization.
(2)
(3)
(4)
(5)
(a)
(b)
(c)(1)
(2)
(3)
(4)
(5)
(6)
If a port director or Fines, Penalties, and Forfeitures Officer is unsatisfied with a surety company because the company has neglected or refused to pay a valid demand made on the surety company's bond or otherwise has failed to honor an obligation on that bond, the port director may take the following steps to recommend that the surety company be removed from Treasury Department Circular 570.
(a)
(1) A copy of the bond in issue;
(2) A copy of the entry or other evidence which shows that there was a default on the bond;
(3) A copy of all notices, demands or correspondence sent to the surety company requesting the honoring of the bond obligation;
(4) A copy of all correspondence from the surety company; and
(5) A written report of the facts known to the port director or Fines,
(b)
(a)
(b)
__, (name of corporation) a corporation duly incorporated under the laws of the State of __, and having its principal office in the City of __, State of __, as authorized by a resolution of the board of directors of the corporation, passed on the __ day of __, 19—, a duly certified copy of which is attached, does constitute and appoint __ (name and official title of bond-approving officer), and his successors in office, as attorney for said corporation, for and in the name of the corporation to collect or to sell, assign, and transfer the securities described as follows:
Witnessed, signed, and sealed, this __ day of __ 19—.
Before me, the undersigned, a notary public within and for the County of __, in the State of __ (or the District of Columbia), personally appeared __ (name and title of officer) and for and in behalf of said __, a corporation, acknowledged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this — day of __, 19—.
Securities must be described by title, date of maturity, rate of interest, denomination, serial number, and whether coupon or registered. Failure to give a complete description will warrant rejection of this power of attorney.
(c)
When entry is made prior to the production of a required document, the importer shall indicate in the “Missing Documents” box (box 16) on Customs Form 7501 the missing document, whether the importer gives a bond or stipulates to produce the document.
Except when another period is fixed by law or regulations, any document for the production of which a bond or stipulation is given shall be delivered within 120 days from the date of notice from Customs requesting such document, or within any extension of such time which may be granted pursuant to § 133.43(a). If the period ends on a Saturday, Sunday, or holiday, delivery on the next business day shall be accepted as timely.
(a)
(b)
(c)
(a)
(b)
When a continuous bond secures the production of a missing document and the bond is breached by the principal's failure to timely produce that document, the claim for liquidated damages shall be in an amount equal to the amount of the single entry bond that would have been taken had the transaction been covered by a single entry bond.
The Commissioner of Customs may authorize the cancellation of any bond provided for in this part or any charge that may have been made against the bond, in the event of a breach of any condition of the bond, upon payment of a lesser amount or penalty or upon such other terms and conditions as may be deemed sufficient.
If any Customs bond, except one given only for the production of free-entry or reduced-duty documents (see §§ 113.43(c) of this chapter), is unsatisfied upon the expiration of 90 days after liability has accrued under the bond, the matter shall be reported to the Department of Justice for prosecution unless measures have been taken to file an application for relief or protest in accordance with the provisions of this chapter or to satisfactorily settle the matter.
(a)
(1) Unconditional, in which case the importer is relieved from the payment of liquidated damages;
(2) Conditioned upon prior settlement of the bond obligation by payment of liquidated damages; or
(3) Conditioned upon such other terms and conditions as the Commissioner may deem sufficient.
(b)
(a)
(b)
(a)
(1)
(2)
(b)
(c)
(1)
(2)
(3)
(d)
Each section in this subpart identifies specific coverage for a particular Customs activity. When an individual or organization files a bond with Customs the activity in which they plan on engaging will be identified on the bond. The bond conditions listed in this subpart which correspond to that activity will be incorporated by reference into the bond.
A bond for basic importation and entry shall contain the conditions listed in this section and may be either a single entry or a continuous bond.
(a)
(i) Deposit, within the time prescribed by law or regulation, any duties, taxes, and charges imposed, or estimated to be due, at the time of release or withdrawal; and
(ii) Pay, as demanded by Customs, all additional duties, taxes, and charges subsequently found due, legally fixed, and imposed on any entry secured by this bond.
(2) If the principal enters any merchandise into a Customs bonded warehouse, the obligors agree;
(i) To pay any duties, taxes, and charges found to be due on any of that merchandise which remains in the warehouse at the expiration of the warehousing time limit set by law; and
(ii) That the obligation to pay duties, taxes, and charges on the merchandise applies whether it is properly withdrawn by the principal, or by the principal's transferee, or is unlawfully removed by the principal or any other person, without regard to whether the merchandise is manipulated, unless payment was made or secured to be made by some other person.
(3) Under this agreement, the obligation to pay any and all duties, taxes, and charges due on any entry ceases on the date the principal timely files with the port director a bond of the owner in which the owner agrees to pay all duties, taxes, and charges found due on that entry; provided a declaration of the owner has also been properly filed.
(b)
(1) Determine whether the merchandise may be released from Customs custody;
(2) Properly assess duties on the merchandise;
(3) Collect accurate statistics with respect to the merchandise; and
(4) Determine whether applicable requirements of law and regulation are met.
(c)
(d)
(1) Fails to comply with the laws or regulations governing admission into the United States;
(2) Must be examined, inspected, or appraised as required by 19 U.S.C. 1499; or
(3) Must be marked with the country of origin as required by law or regulation.
(e)
(f)
(1) Hold the merchandise at the place of examination until the merchandise is properly released;
(2) Transfer the merchandise to another place on receipt of instructions from Customs made before release; and
(3) Keep any Customs seal or cording on the merchandise intact until the merchandise is examined by Customs.
(g)
(1) Pay the compensation and expenses of any Customs officer, as required by law or regulation; and
(2) Exonerate the United States and its officers from any risk, loss, or expense arising out of principal's importation, entry, or withdrawal of merchandise.
(h)
(1) To use and handle the merchandise in the manner and for the purpose entitling it to duty-free treatment;
(2) If a fishing vessel, to present the original approved application to Customs within 24 hours on each arrival of the vessel in the Customs territory of the United States from a fishing voyage;
(3) To furnish timely proof to Customs that any merchandise entered or withdrawn under any law permitting duty-free treatment was used in accordance with that law; and
(4) To keep safely all withdrawn beverages remaining on board while the vessel is in port, as may be required by Customs.
(i)
(j)
(k)
(l)
(2) It is understood and agreed that whether the default involves merchandise is determined by Customs and that the amount to be collected under these conditions shall be based upon the quantity and value of the merchandise as determined by Customs. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(3) If the principal defaults on agreements in this condition other than conditions (a) or (g) and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
(4) If the principal defaults on agreements in the condition set forth in paragraph (a)(1)(i) of this section only, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the unpaid duties, taxes and charges estimated to be due or $1,000, whichever is greater. A default on the condition set forth in paragraph (a)(1)(i) of this section shall be presumed if any monetary instrument authorized for the payment of estimated duties, taxes and charges by § 24.1(a) of this chapter is returned unpaid by a financial institution, or if a payment authorized under Automated Clearinghouse (see § 24.25 of this chapter) is not transmitted electronically to Customs in a timely manner. If the principal defaults on agreements in both of the conditions as set forth in paragraphs (a)(1)(i) and (b) of this section, the measure of liquidated damages assessed shall be as provided in paragraph (l)(1) of this section for a default of the agreements in the condition set forth in paragraph (b) of this section. For purposes of this paragraph, the phrase “unpaid duties, taxes and charges” shall include any appropriate ad valorem fees described in § 24.23 of this chapter, fees relating to dutiable mail described in § 24.22(f) of this chapter, and harbor maintenance fees described in § 24.24(e)(3) (i) and (ii) of this chapter.
(5) If the principal defaults on agreements in the condition set forth in paragraph (k) of this section only, the
A basic custodial bond shall contain the conditions listed in this section and shall be a continuous bond.
(a)
(1) To operate as a custodian of any bonded merchandise received, including merchandise collected for transport to his facility, and to comply with all regulations regarding the receipt, carriage, safekeeping, and disposition of such merchandise;
(2) To accept only merchandise authorized under Customs Regulations;
(3) To maintain all records required by regulations relating to merchandise received into bond, and to produce the records upon demand by an authorized Customs officer;
(4) If authorized to use the alternative transfer procedure set forth in § 144.34(c) of this chapter, to operate as constructive custodian for all merchandise transferred under those procedures, thereby assuming primary responsibility for the continued proper custody of the merchandise notwithstanding its geographical location;
(5) If authorized to operate a container station under the Customs Regulations, to report promptly to Customs each arrival of a container and its merchandise by delivery of the manifest and the application for transfer, or by other approved notice.
(b)
(1) If a bonded carrier, to use only authorized means of conveyance;
(2) To keep safe any merchandise placed in its custody including, when approved by Customs, repacking and transferring such merchandise when necessary for its safety or preservation;
(3) To comply with Customs Regulations relating to the handling of bonded merchandise; and
(4) If authorized to use the alternative transfer procedure set forth in § 144.34(c) of this chapter, to keep safe any merchandise so transferred.
(c)
(1) If a bonded carrier, to report promptly the arrival of merchandise at the destination port by delivering to Customs the manifest or other approved notice;
(2) If a cartage or lighterage business, to deliver promptly and safely to Customs any merchandise placed in the principal's custody together with any related cartage and lighterage ticket and manifest;
(3) To dispose of merchandise in a manner authorized by Customs Regulations; and
(4) To file timely with Customs any report required by Customs Regulations.
(5) In the case of Class 9 warehouses, to provide reasonable assurance of exportation of merchandise withdrawn under the sales ticket procedure of § 144.37(h) of this chapter.
(d)
(e)
(f)
(g)
(1) Pay the compensation and expenses of any Customs officer as required by law or regulation;
(2) Pay the cost of any locks, seals, and other fastenings required by Customs Regulations for securing merchandise placed in the principal's custody;
(3) Pay for any expenses connected with the suspension or termination of the bonded status of the premises;
(4) Exonerate the United States and its officers from any risk, loss, or expense arising out of the principal's custodial operation; and
(5) Pay any charges found to be due Customs arising out of the principal's custodial operation.
(h)
(2) It is understood and agreed that the amount to be collected under conditions (a) through (e) of this agreement shall be based upon the quantity and value of the merchandise as determined by Customs. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(3) If the principal defaults on conditions (a) through (e) in this agreement and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation. It is understood and agreed that whether the default involves merchandise is determined by Customs.
A bond for international carriers shall contain the conditions listed in this section and may be either a single entry or continuous bond.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(2) Principal agrees that it will act, in regard to merchandise in its possession on the date the redelivery demand is issued, in accordance with any Customs demand for redelivery made within 10 days of Customs discovery that there is reasonable cause to believe that the merchandise was exported in violation of the export control laws.
(3) Obligors agree that if the principal defaults in either of these obligations, they will pay, as liquidated damages, an amount equal to three times the value of the merchandise which was not redelivered.
A bond for repayment of erroneous drawback shall contain the conditions listed in this section and may be either a single entry or continuous bond.
(a)
(1) Is entitled to the drawback claimed.
(2) Correctly described the exported articles in the claim.
(3) Correctly stated the facts of exportation in the claim; the principal and surety, jointly and severally agree to refund, on demand, any money claimed by Customs to have been erroneously paid as a result of an incorrect statement on the drawback claim, and
(4) The principal agrees to pay any charges due Customs as provided by law or regulation.
(b)
A bond for control of containers and instruments of international traffic shall contain the conditions listed in this section and shall be a continuous bond.
(a)
(1) Report promptly to Customs when the instrument is diverted to point-to-point local traffic in the Customs territory of the United States or when the instrument is otherwise withdrawn in the Customs territory of the United States from its use as an instrument of international traffic;
(2) Promptly enter the instrument unless exempt from entry; and
(3) Pay any duty due on the instrument at the rate in effect and in its condition on the date of diversion or withdrawal.
(b)
(1) Not to advance the value or improve its condition abroad or claim (or make a previous claim) drawback on, any container released under subheading 9801.00.10, HTSUS;
(2) To pay the initial duty due and otherwise comply with every condition in subheading 9803.00.50, HTSUS, on any container released under that item;
(3) To mark that container in the manner required by Customs;
(4) To keep records which show the current status of that container in service and the disposition of that container if taken out of service; and
(5) To remove or strike out the markings on that container when it is taken out of service or when the principal transfers ownership of it.
(c)
(1) To timely file complete and accurate reports on the shipping devices, and to pay any applicable duty due on the devices and repairs made to such devices, as provided in the approved application;
(2) To retain complete and accurate records regarding the shipping devices, and to make such records available to Customs for inspection and audit upon reasonable notice, as also required in the approved application; and
(3) To otherwise comply with every other condition of the approved application.
(d)
(2) It is understood and agreed that the amount to be collected under these conditions shall be based upon the quantity and value of the merchandise as determined by Customs.
(3) If the principal defaults on the agreements in these conditions and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation. It is understood and agreed that whether the default involves merchandise is determined by Customs.
(a)
(1) If the principal is a commercial gauger whose reports of gauging or whose samples are accepted for Customs purposes, the principal agrees to:
(i) Gauge or sample merchandise according to the standards and procedures set out in the Customs Regulations;
(ii) Abide by the requirements set out in § 151.13(b) of this chapter; and
(iii) Submit properly any required report, proof, abstract, or sample to Customs.
(2)(i) If the principal defaults, the obligors (principal and surety) agree to pay liquidated damages equal to the value of the merchandise involved in the default or three times the value of the merchandise involved in the default if the merchandise is restricted or prohibited merchandise or alcoholic beverages or such other amount as may be authorized by law or regulation.
(ii) If the principal defaults on the agreements in these conditions and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
(iii) It is understood and agreed that whether the default involves merchandise is determined by Customs, that the amount to be collected under this condition shall be based on the quantity and value of the merchandise as determined by Customs and that value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(b)
(1) If the principal is a commercial laboratory whose laboratory analysis reports are accepted for Customs purposes, the principal agrees to:
(i) Conduct laboratory analyses according to the standards and procedures set out in the Customs Regulations;
(ii) Abide by the requirements set out in §§ 151.12(c) and 151.14 of this chapter; and
(iii) Submit properly any required report, proof, abstract, or sample to Customs.
(2)(i) If the principal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to the value of the merchandise involved in the default or three times the value of the merchandise involved in the default if the merchandise is restricted or prohibited merchandise or alcoholic beverages or such other amount as may be authorized by law or regulation.
(ii) If the principal defaults on the agreements in these conditions and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
(iii) It is understood and agreed that whether the default involves merchandise is determined by Customs, that the amount to be collected under this condition shall be based on the quantity and value of the merchandise as determined by Customs and that value as used in these provisions means value as determined under 19 U.S.C. 1401a.
A bond to comply with wool and fur products labeling acts and fiber products identification act shall contain the conditions listed in this section and shall be a single entry bond.
(a) If the principal obtains release from Customs custody of any wool or fur product (hereafter “merchandise”) that is subject to the provisions of the Wool Products Labeling Act of 1939, the Fur Products Labeling Act, or the Fiber Products Identification Act, the principal guarantees that the merchandise complies with every provision of those Acts, as applicable.
(b) If any of the released merchandise does not comply with each applicable provision of the Wool Products Labeling Act of 1939, the Fur Products Labeling Act, or the Fiber Products Identification Act, the obligors (principal or surety, jointly and severally) agree to pay liquidated damages equal to two times the value of the merchandise involved in the default and duty thereon. It is understood and agreed that the amount to be collected under this condition shall be based upon the quantity and value of the merchandise as determined by Customs. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
A bond to produce a bill of lading shall contain the conditions listed in this section and shall be a single entry bond.
If the principal obtains release of any merchandise before filing a valid bill of lading on that merchandise with Customs, the obligors (principal and surety, jointly and severally) agree to:
(a) Produce timely a valid bill of lading for the merchandise; and
(b) Relieve the United States and its employees from all liability, to indemnify the United States and its employees against loss, and defend any action brought on a claim for loss based on the release without production of a valid bill of lading.
A bond to indemnify the United States for detention of copyrighted material shall contain the conditions listed in this section and shall be a single entry bond.
If Customs detains any articles alleged by the principal to be a piratical copy of material covered by the principal's copyright pending a final determination whether the articles are prohibited entry under the copyright laws, the obligors (principal and surety, jointly and severally) agree to hold the United States and its employees, and the importer or owner of those articles, jointly and severally, harmless from any material depreciation of those articles and any loss or damage caused
A bond to observe neutrality shall contain the conditions listed in this section and shall be a single entry bond.
(a) If clearance is granted to the principal's vessel, which is armed or is built for a war-like purpose, with a cargo of arms and munitions, so that it is likely to be used to commit hostilities against people or countries with whom the Government of the United States is at peace, the principal guarantees that the vessel will not be used to commit hostilities against any country, state, colony, or people with whom the Government is at peace.
(b) If the principal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to twice the value of the vessel and cargo.
A bond to pay court costs (condemned goods) shall contain the condition listed in this section and shall be a single entry bond.
If any seized goods belonging to principal are condemned the obligors (principal and surety, jointly and severally) agree to pay all costs of the condemnation proceedings.
A bond of a foreign trade zone operator shall contain the conditions listed in this section and shall be a continuous bond.
If the principal is authorized to operate a foreign trade zone or subzone:
(a)
(1) The law and Customs Regulations relating to the receipt (including merchandise received and receipted for transport to his zone), admission, status, handling, transfer, and removal of merchandise from the foreign trade zone or subzone, and
(2) The Customs Regulations concerning the maintenance of inventory control and recordkeeping systems covering merchandise in the foreign trade zone or subzone. If the principal defaults and the default involves merchandise other than domestic merchandise for which no permit for admission is required, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to the value of the merchandise involved in the default, or three times the value of the merchandise involved in the default if the merchandise is restricted or prohibited merchandise or alcoholic beverages, or such other amount as may be authorized by law or regulation. It is understood and agreed that whether the default involves merchandise is a determination made by Customs, that the amount to be collected under this condition shall be based upon the quantity and value of the merchandise as determined by Customs, and that value as used in these provisions means value as determined under 19 U.S.C. 1401a. If the principal defaults and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default, or such other amount as may be authorized by law or regulations.
(b)
(c)
(1) Exonerate the United States and its officers from any risk, loss, or expense arising from the principal's operation of the foreign trade zone or subzone;
(2) Pay the compensation and expenses of any Customs officer, as required by law or regulations.
(d)
A bond to indemnify a complainant under section 337 of the Tariff Act of 1930, as amended, must contain the conditions listed in appendix B to this part. The bond must be a single entry bond and must be filed in accordance with the provisions set forth in 19 CFR 12.39(b)(2). For the forfeiture or return of this bond, the provisions of 19 CFR 210.50(d) will apply.
A bond for the deferral of entry completion and duty deposit pursuant to 19 U.S.C. 1484b for a dutiable large yacht imported for sale at a United States boat show must conform to the terms of appendix C to this part. The bond must be filed in accordance with the provisions set forth in § 4.94a of this chapter.
By T.D. 03-14, 68 FR 13626, Mar. 20, 2003, § 113.75 was added, effective Apr. 21, 2003.
WITNESS our hands and seals this ____ day of ____, 19____.
WHEREAS, the principal (including the principal's employees, agents, and contractors) desires access to Customs airports security areas located at ____ Airport during the period of one year beginning on the ____ day of ____, 19____, and ending on the ____ day of ____, 19____, both dates inclusive;
The principal agrees to comply with the Customs Regulations applicable to Customs security areas at airports.
If the principal defaults on the condition of this obligation, the principal and surety jointly and severally, agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
This appendix contains the bond to indemnify a complainant under section 337 of the Tariff Act of 1930, as amended. The provisions contained in §§ 12.39(b)(2) and 113.74 of the Customs Regulations (19 CFR Chapter I) and § 210.50(d) of the U.S. International Trade Commission Regulations (19 CFR Chapter II) apply.
______ as principal and ____ as surety, are held and bound to ______, as the complainant in U.S. International Trade Commission case/investigation number ____, of unfair practices or methods of competition in import trade in violation of section 337, Tariff Act of 1930, as amended, in the sum of ____ dollars ($____), for payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, by these conditions.
Pursuant to the provisions of section 337, Tariff Act of 1930, as amended, the principal and surety recognize that the Commission has, according to the conditions described in its order, excluded from, or authorized, entry into the United States of the following merchandise ____________________ under entry number ______, dated ______.
The principal and surety recognize that the Commission has excluded that merchandise from entry until its investigation is completed, or until its decision that there is a violation of section 337 becomes final.
The principal and surety recognize that certain merchandise excluded from entry by the Commission was, or may be, offered for entry into the United States while the Commission's prohibition is in effect.
The principal and surety recognize that the principal desires to obtain a release of that merchandise pending a final determination of the merchandise's admissibility into the United States, as provided under section 337, and, for that purpose, the principal and surety execute this stipulation:
If it is determined, as provided in section 337 of the Tariff Act of 1930, as amended, to exclude that merchandise from the United States, then, on notification from the port director of Customs, the principal is obligated to export or destroy under Customs supervision the merchandise released under this stipulation within 30 days from the date of the port director's notification.
The principal and surety, jointly and severally, agree that if the principal defaults on that obligation, the principal and surety shall pay to the complainant an amount equal to the face value of the bond as may be demanded by him/her under the applicable law and regulations.
Witness our hands and seals this ____ day of ______ (month), ____ (year).
____, as principal, and ____, as surety, are held and firmly bound to the UNITED STATES OF AMERICA in the sum of ____ dollars ($____), for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these conditions.
Pursuant to the provisions of 19 U.S.C. 1484b, the principal has imported at the port of ____ a dutiable large yacht (exceeding 79 feet in length, used primarily for recreation or pleasure, and previously sold by a manufacturer or dealer to a consumer) identified as ____ for sale at a boat show in the United States with deferral of entry completion and duty deposit and has executed this obligation as a condition precedent to that deferral.
A failure to inform Customs in writing of an exportation, or to complete the required
The principal will exonerate and hold harmless the United States and its officers from or on account of any risk, loss, or expense of any kind or description connected with or arising from the failure to store and deliver the large yacht as required, as well as from any loss or damage resulting from fraud or negligence on the part of any officer, agent, or other person employed by the principal.
WITNESS our hands and seals this ____ day of ____ (month), ____ (Year).
(Name)(Address)
(Principal)
(Name)(Address)
(Surety)
I, _____, certify that I am the* _____ of the corporation named as principal in the attached bond; that _____, who signed the bond on behalf of the principal, was then _____ of that corporation; that I know his signature, and his signature to the bond is genuine; and that the bond was duly signed, sealed, and attested for and in behalf of the corporation by authority to its governing body.
(CORPORATE SEAL)
*May be executed by the secretary, assistant secretary, or other officer of the corporation.
By T.D. 03-14, 68 FR 13626, Mar. 20, 2003, appendix C was added to part 113, effective Apr. 21, 2003.