[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR113.39]

[Page 492-493]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 113--CUSTOMS BONDS--Table of Contents
 
                   Subpart D--Principals and Sureties
 
Sec. 113.39  Procedure to remove a surety from Treasury Department Circular 570.

    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) Report to Headquarters. A port director or Fines, Penalties, and 
Forfeitures Officer shall send the following evidence to Headquarters, 
Attn: Director, International Trade Compliance Division.
    (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, Penalties, and Forfeitures Officer showing the unsatisfactory 
performance by the surety company of the bond obligation(s).
    (b) Review by Headquarters. The Director, International Trade 
Compliance Division, shall review submitted evidence and determine 
whether further action against the surety company is warranted. If it is 
determined that further action is warranted, a report recommending 
appropriate action will be submitted to the Fiscal Assistant Secretary, 
Department of the Treasury, as

[[Page 493]]

required by Sec. 223.18(a), Bureau of Government Financial Operations 
Regulations (31 CFR 223.18(a)). The port director and Fines, Penalties, 
and Forfeitures Officer will be informed in writing of Headquarters 
action regarding their request for removal of the surety.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 91-77, 56 
FR 46115, Sept. 10, 1991; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 
99-27, 64 FR 13675, Mar. 22, 1999]