[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: 19CFR12.3]

[Page 215]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 12--SPECIAL CLASSES OF MERCHANDISE--Table of Contents
 
Sec. 12.3  Release under bond; liquidated damages.

    (a) Release. No food, drug, device, cosmetic, pesticide, hazardous 
substance or dangerous caustic or corrosive substance that is the 
subject of Sec. 12.1 will be released except in accordance with the laws 
and regulations applicable to the merchandise. When any merchandise that 
is the subject of Sec. 12.1 is to be released under bond pursuant to 
regulations applicable to that merchandise, a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter, 
will be required.
    (b) Bond amount. The bond referred to in paragraph (a) of this 
section must be in a specific amount prescribed by the port director 
based on the circumstances of the particular case that is either:
    (1) Equal to the domestic value (see Sec. 162.43(a) of this chapter) 
of the merchandise at the time of release as if the merchandise were 
admissible and otherwise in compliance; or
    (2) Equal to three times the value of the merchandise as provided in 
Sec. 113.62(l)(1) of this chapter.
    (c) Liquidated damages. Whenever liquidated damages arise with 
regard to any food, drug, device or cosmetic subject to Sec. 12.1(a) for 
failure to redeliver merchandise into Customs custody or for failure to 
rectify any noncompliance with the applicable provisions of admission, 
including the failure to export or destroy the merchandise within the 
time period prescribed by law after the merchandise has been refused 
admission pursuant to the provisions of the Food, Drug and Cosmetic Act, 
those liquidated damages will be assessed pursuant to Sec. 113.62(l)(1) 
of this chapter in the amount of the bond prescribed under paragraph (b) 
of this section.

[T.D. 01-26, 66 FR 16853, Mar. 28, 2001]