19 C.F.R. Subpart G—Customs Bond Conditions
Title 19 - Customs Duties
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. Basic Importation and Entry Bond Conditions (a) Agreement to Pay Duties, Taxes, and Charges. (1) If merchandise is imported and released from Customs custody or withdrawn from a Customs bonded warehouse into the commerce of, or for consumption in, the United States, or under §181.53 of this chapter is withdrawn from a duty-deferral program for exportation to Canada or Mexico or for entry into a duty-deferral program in Canada or Mexico, the obligors (principal and surety, jointly and severally) agree to: (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law; and (ii) That the obligation to pay duties, taxes, and charges on the merchandise applies whether it is properly withdrawn by the principal, or by the principal's transferee, or is unlawfully removed by the principal or any other person, without regard to whether the merchandise is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) Agreement to Make or Complete Entry. If all or part of imported merchandise is released before entry under the provisions of the special delivery permit procedures under 19 U.S.C. 1448(b), released before completion of the entry under 19 U.S.C. 1484(a), or withdrawn from warehouse under 19 U.S.C. 1557(a) (see §10.62b of this chapter), the principal agrees to file within the time and in the manner prescribed by law and regulation, documentation to enable Customs to: (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) Agreement to Produce Documents and Evidence. If merchandise is released conditionally to the principal before all required documents or other evidence is produced, the principal agrees to furnish Customs with any document or evidence as required by law or regulation, and within the time specified by law or regulations. (d) Agreement to Redeliver Merchandise. If merchandise is released conditionally from Customs custody to the principal before all required evidence is produced, before its quantity and value are determined, or before its right of admission into the United States is determined, the principal agrees to redeliver timely, on demand by Customs, the merchandise released if it: (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. It is understood that any demand for redelivery will be made no later than 30 days after the date that the merchandise was released or 30 days after the end of the conditional release period (whichever is later). (e) Agreement to Rectify Any Non-Compliance with Provisions of Admission. If merchandise is released conditionally to the principal before its right of admission into the United States is determined, the principal, after notification, agrees to mark, clean, fumigate, destroy, export or do any other thing to the merchandise in order to comply with the law and regulations governing its admission into the United States within the time period set in the notification. (f) Agreement for Examination of Merchandise. If the principal obtains permission to have any merchandise examined elsewhere than at a wharf or other place in charge of a Customs officer, the principal agrees to: (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) Reimbursement and Exoneration of the United States. The obligors agree to: (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) Agreement on Duty-Free Entries or Withdrawals. If the principal enters or withdraws any merchandise, without payment of duty and tax, or at a reduced rate of duty and tax, as permitted under the law, the principal agrees: (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) Agreement to comply with Customs Regulations applicable to Customs security areas at airports. If access to the Customs security areas at airports is desired, the principal (including its employees, agents, and contractors) agrees to comply with the Customs Regulations in this chapter applicable to Customs security areas at airports. If the principal defaults, the obligors (principal and surety, joint and severally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regulation. (j) Agreement to comply with electronic entry and/or advance cargo information filing requirements. (1) If the principal is qualified to utilize electronic entry filing as provided for in part 143, subpart D, of this chapter, the principal agrees to comply with all conditions set forth in that subpart and to send and accept electronic transmissions without the necessity of paper copies. (2) If the principal elects to provide advance inward air or truck cargo information to Customs and Border Protection (CBP) electronically, the principal agrees to provide such cargo information to CBP in the manner and in the time period required, respectively, under §122.48a or 123.92 of this chapter. If the principal defaults with regard to these obligations, the principal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each regulation violated. (k) Agreement to ensure and establish issuance of softwood lumber export permit and collection of export fees. In the case of a softwood lumber product imported from Canada that is subject to the requirement that the Government of Canada issue an export permit pursuant to the Softwood Lumber Agreement, the principal agrees, as set forth in §12.140(a) of this chapter, to assume the obligation to ensure within 20 working days of release of the merchandise, and establish to the satisfaction of Customs, that the applicable export permit has been issued by the Government of Canada. (l) Consequence of default. (1) If the principal defaults on agreements in this condition other than conditions in paragraphs (a), (g), (i), (j)(2), or (k) of this section the obligors 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. (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 obligors agree to pay liquidated damages equal to $100 per thousand board feet of the imported lumber. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–46, 53 FR 29230, Aug. 3, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 90–92, 55 FR 49884, Dec. 3, 1990; T.D. 93–37, 58 FR 30984, May 28, 1993; T.D. 96–14, 61 FR 2911, Jan. 30, 1996; T.D. 96–18, 61 FR 6780, Feb. 22, 1996; T.D. 97–9, 62 FR 8623, Feb. 26, 1997; T.D. 98–56, 63 FR 32945, June 16, 1998; T.D. 00–87, 65 FR 77815, Dec. 13, 2000; T.D. 01–26, 66 FR 16854, Mar. 28, 2001; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003] A basic custodial bond shall contain the conditions listed in this section and shall be a continuous bond. Basic Custodial Bond Conditions (a) Receipt of Merchandise. The principal agrees: (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) Carriage and Safekeeping of Merchandise. The principal agrees: (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) Disposition of Merchandise. The principal agrees: (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) Agreement to Redeliver Merchandise to Customs. If the principal is designated a bonded carrier, or licensed to operate a cartage or lighterage business, or authorized to use the alternative transfer procedure set forth in §144.34(c) of this chapter, the principal agrees to redeliver timely, on demand by Customs, any merchandise delivered to unauthorized locations or to the consignee without the permission of Customs. It is understood that the demand for redelivery shall be made no later than 30 days after Customs discovers the improper delivery. (e) Compliance with Licensing and Operating Requirements. The principal agrees to comply with all Customs laws and regulations relating to principal's facilities, conveyances, and employees. (f) Agreement to comply with Customs Regulations applicable to Customs security areas at airports. If access to Customs security areas at airports is desired, the principal (including its employee, agents, and contractors) agrees to comply with the Customs Regulations applicable to Customs security areas at airports. If the principal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regulation. (g) Reimbursement and Exoneration of the United States. The principal and surety agree to: (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) Consequence of Default. (1) If the principal defaults on conditions (a) through (e) in this agreement, 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. (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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984, as amended by T.D. 86–178, 51 FR 34959, Oct. 1, 1986; T.D. 88–46, 53 FR 29230, Aug. 3, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; 54 FR 33672, Aug. 16, 1989; T.D. 92–81, 57 FR 37701, Aug. 20, 1992; T.D. 94–81, 59 FR 51495, Oct. 12, 1994; T.D. 97–19, 62 FR 15840, Apr. 3, 1997; T.D. 01–26, 66 FR 16854, Mar. 28, 2001] A bond for international carriers shall contain the conditions listed in this section and may be either a single entry or continuous bond. International Carrier Bond Conditions (a) Agreement to Pay Penalties, Duties, Taxes, and Other Charges. If any vessel, vehicle, or aircraft, or any master, owner, or person in charge of a vessel, vehicle or aircraft, slot charterer, or any non-vessel operating common carrier as defined in §4.7(b)(3)(ii) of this chapter or other party as specified in §122.48a(c)(1)(ii)–(c)(1)(iv) of this chapter, incurs a penalty, duty, tax or other charge provided by law or regulation, the obligors (principal and surety, jointly and severally) agree to pay the sum upon demand by Customs and Border Protection (CBP). If the principal (carrier) fails to pay passenger processing fees to Customs no later than 31 days after the close of the calendar quarter in which they were collected pursuant to §24.22(g) of this chapter, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the passenger processing fees which have been collected but not timely paid to Customs as prescribed by regulation. (b) Agreement on Unlading, Safekeeping, and Disposition of Merchandise, Supplies, Crew Purchases, Etc. The principal agrees to comply with all laws and Customs Regulations applicable to unlading, safekeeping, and disposition of merchandise, supplies, crew purchases, and other articles on board the vehicle, vessel, or aircraft; and to redeliver the foregoing to Customs upon demand as provided by Customs Regulations. If principal defaults, obligors 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 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. (c) Non-vessel operating common carrier (NVOCC); other party. If a slot charterer, non-vessel operating common carrier (NVOCC) as defined in §4.7(b)(3)(ii) of this chapter, or other party specified in §122.48a(c)(1)(ii)–(c)(1)(iv) of this chapter, elects to provide advance cargo information to CBP electronically, the NVOCC or other party, as a principal under this bond, in addition to compliance with the other provisions of this bond, also agrees to provide such cargo information to CBP in the manner and in the time period required under those respective sections. If the NVOCC or other party, as principal, defaults with regard to these obligations, the principal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each regulation violated. (d) Agreement to Deliver Export Documents. If the principal's vessel, vehicle, or aircraft is granted clearance without filing a complete outward manifest and all required export documents, the principal agrees to file timely the required manifest and all required export documents. If the principal defaults, the obligors agree to pay liquidated damages of $50 per day for the first 3 days, and $100 per day thereafter, up to $1,000 in total. (e) Agreement to comply with Customs Regulations applicable to Customs security areas at airports. If access to Customs security areas at airports is desired, the principal (including its employees, agents, and contractors) agrees to comply with the Customs Regulations applicable to Customs security areas at airports. If the principal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regulation. (f) Exoneration of the United States. The obligors agree to exonerate the United States and its officers from any risk, loss, or expense arising out of entry or clearance of the carrier, or handling of the articles on board. (g) Unlawful disposition. (1) Principal agrees that it will not allow seized or detained merchandise, marked with warning labels of the fact of seizure or detention, to be placed on board a vessel, vehicle, or aircraft for exportation or to be otherwise disposed of without written permission from Customs, and that if it fails to prevent such placement or other disposition, it will redeliver the merchandise to Customs within 30 days, upon demand made within 10 days of Customs discovery of the unlawful placement or other disposition. (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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 85–123, 50 FR 29954, July 23, 1985; T.D. 87–124, 52 FR 37135, Oct. 5, 1987; T.D. 88–46, 53 FR 29230, Aug. 3, 1988; 53 FR 44186, Nov. 2, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 93–37, 58 FR 30984, May 28, 1993; T.D. 01–26, 66 FR 16854, Mar. 28, 2001; T.D. 02–62, 67 FR 66333, Oct. 31, 2002; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003] 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. Repayment of Erroneous Drawback Payment Bond Conditions (a) Agreement Under Exporter's Summary Procedure. If the principal is permitted to file drawback claims under the exporter's summary procedure and the principal's drawback claims are paid before a final determination that the principal: (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) Agreement Under Accelerated Payment of Drawback. If the principal receives an accelerated payment of drawback based on the principal's calculation of the drawback claim, the principal and surety, jointly and severally agree to refund on demand the full amount of any overpayment, as determined on liquidation of the drawback claim. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 86–178, 51 FR 34959, Oct. 1, 1986; T.D. 88–72, 53 FR 45902, Nov. 15, 1988] 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. Control of Containers and Instruments of International Traffic Bond Conditions (a) Agreement to Enter Any Diverted Instrument of International Traffic. If the principal brings in and takes out of the Customs territory of the United States an instrument of international traffic without entry and without payment of duty, as provided by the Customs Regulations and section 322(a), Tariff Act of 1930, as amended, the principal agrees to: (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) Agreement to Comply With the Provisions of subheading 9801.00.10, or 9803.00.50 Harmonized Tariff Schedule of the United States (HTSUS). If the principal gets free release of any serially numbered shipping container classifiable under subheading 9801.00.10 or 9803.00.50, HTSUS, the principal agrees: (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) Agreement to comply with application approved under 19 CFR 10.41b(b). If the principal establishes a program for the cross-border movements of shipping devices based upon an application approved as provided in §10.41b(b) of this chapter (19 CFR 10.41b(b)), the principal agrees: (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) Consequence of Default. (1) If the principal defaults on agreements in these conditions, 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 such other amount as may be authorized by law or regulation. (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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 96–20, 61 FR 7990, Mar. 1, 1996] Commercial Gauger Bond Conditions (a) Commercial gauger bond conditions. A commercial gauger's bond shall contain the conditions listed in this section and shall be a continuous bond. (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. Commercial Laboratory Bond Conditions (b) Commercial laboratory bond conditions. A commercial laboratory's bond shall contain the conditions listed in this subsection and shall be a continuous bond. (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. [T.D. 87–39, 52 FR 9787, Mar. 26, 1987, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 99–67, 64 FR 48534, Sept. 7, 1999; T.D. 01–26, 66 FR 16854, Mar. 28, 2001] 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. Wool and Fur Products Labeling Acts and Fiber Products Identification Act (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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988] A bond to produce a bill of lading shall contain the conditions listed in this section and shall be a single entry bond. Production of Bill of Lading Bond Conditions 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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988] 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. Bond Condition To Indemnify United States for Detention of Copyrighted Material 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 by the detention in the event it is finally determined that the articles are not a piratical copy of the material. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988] A bond to observe neutrality shall contain the conditions listed in this section and shall be a single entry bond. Bond Condition To Observe Neutrality (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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988] A bond to pay court costs (condemned goods) shall contain the condition listed in this section and shall be a single entry bond. Bond Condition To Pay Court Costs (Condemned Goods) 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. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988] A bond of a foreign trade zone operator shall contain the conditions listed in this section and shall be a continuous bond. Foreign Trade Zone Operator Bond Conditions If the principal is authorized to operate a foreign trade zone or subzone: (a) Receipt, Handling, and Disposition of Merchandise. The principal agrees to comply with: (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) Agreement to Pay Duties, Taxes, and Charges. The obligors agree to pay any duties, taxes, and charges found to be due on any merchandise, properly admitted to the foreign trade zone or subzone, which is found to be missing from the zone or cannot be accounted for in the zone, it being expressly understood and agreed that the amount of said duties, taxes, and charges shall be determined solely by Customs. (c) Reimbursement and Exoneration of the United States. The obligors agree to: (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) Payment of Annual Fee. The principal agrees to pay timely any annual fee or fees as provided in the Customs Regulations. If the principal defaults, the obligors agree to pay liquidated damages equal to the amount of the annual fee due but not paid and an amount equal to one percent of the annual fee for each of the first seven days the annual fee is in arrears, two percent of the annual fee for each of the succeeding seven days the annual fee is in arrears, and three percent of the annual fee for each day thereafter in which the annual fee is in arrears. [T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 86–16, 51 FR 5063, Feb. 11, 1986; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 94–81, 59 FR 51495, Oct. 12, 1994; T.D. 01–26, 66 FR 16854, Mar. 28, 2001] 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. [T.D. 00–87, 65 FR 77815, Dec. 13, 2000] 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. [68 FR 13626, Mar. 20, 2003] Airport Customs Security Area Bond (name of principal) (name of surety) are held and firmly bound unto 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 presents. 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; Now, Therefore, the Condition of this Obligation is Such That— 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 $1,000 for each default or such other amount as may be authorized by law or regulation. Signed, Sealed, and Delivered in the Presence of— Name Address Name Address Principal (SEAL) Name Address Name Address Name Address Surety (SEAL) Name Address [54 FR 10536, Mar. 14, 1989] This appendix contains the bond to indemnify a complainant under section 337 of the Tariff Act of 1930, as amended. The provisions contained in §§12.39(b)(2) and 113.74 of the Customs Regulations (19 CFR Chapter I) and §210.50(d) of the U.S. International Trade Commission Regulations (19 CFR Chapter II) apply. Bond Toto Indemnify Complainant Under Section 337, Tariff Act of 1930, As Amended ______ as principal and ____ as surety, are held and bound to ______, as the complainant in U.S. International Trade Commission case/investigation number ____, of unfair practices or methods of competition in import trade in violation of section 337, Tariff Act of 1930, as amended, in the sum of ____ dollars ($____), 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). ________ (seal) Principal ________ (seal) Surety [T.D. 00–87, 65 FR 77815, Dec. 13, 2000; 65 FR 80497, Dec. 21, 2000] Bond for Deferral of Duty on Large Yachts Imported for Sale at United States Boat Shows ____, 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 entry, within the 6-month bond period will give rise to a claim for liquidated damages unless the principal informs Customs of the exportation or completes the entry within the time limits prescribed in 19 CFR 4.94a. If the principal fails to comply with any condition of this obligation, which includes compliance with any requirement or condition set forth in 19 U.S.C. 1484b or 19 CFR 4.94a, the principal and surety jointly and severally agree to pay to Customs an amount of liquidated damages equal to twice the amount of duty on the large yacht that would otherwise be imposed under subheading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States. For purposes of this paragraph, the term duty includes any duties, taxes, fees and charges imposed by law. 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) _______________ [SEAL] (Principal) _______________ [SEAL] (Name) (Address) _______________ [SEAL] (Surety) Certificate as to Corporate Principal 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) (To be used when no power of attorney has been filed with the port director of customs.) *May be executed by the secretary, assistant secretary, or other officer of the corporation. [68 FR 13626, Mar. 20, 2003]
Title 19: Customs Duties
PART 113—CUSTOMS BONDS
Subpart G—Customs Bond Conditions
§ 113.61 General.
§ 113.62 Basic importation and entry bond conditions.
§ 113.63 Basic custodial bond conditions.
§ 113.64 International carrier bond conditions.
§ 113.65 Repayment of erroneous drawback payment bond conditions.
§ 113.66 Control of containers and instruments of international traffic bond conditions.
§ 113.67 Commercial gauger and commercial laboratory bond conditions.
§ 113.68 Wool and fur products labeling acts and fiber products identification act bond conditions.
§ 113.69 Production of bills of lading bond conditions.
§ 113.70 Bond condition to indemnify United States for detention of copyrighted material.
§ 113.71 Bond condition to observe neutrality.
§ 113.72 Bond condition to pay court costs (condemned goods).
§ 113.73 Foreign trade zone operator bond conditions.
§ 113.74 Bond conditions to indemnify a complainant under section 337 of Tariff Act of 1930, as amended.
§ 113.75 Bond conditions for deferral of duty on large yachts imported for sale at United States boat shows.
Appendix A to Part 113—Airport Customs Security Area Bond
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Appendix B to Part 113—Bond To Indemnify Complainant Under Section 337, Tariff Act of 1930, as Amended
Appendix C to Part 113—Bond for Deferral of Duty on Large Yachts Imported for Sale at United States Boat Shows
