[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR113.13]

[Page 494-495]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 113--CUSTOMS BONDS--Table of Contents
 
            Subpart B--Bond Application and Approval of Bond
 
Sec. 113.13  Amount of bond.

    (a) Minimum amount of bond. The amount of any Customs bond shall not 
be less than $100, except when the law or regulation expressly provides 
that a lesser amount may be taken. Fractional parts of a dollar shall be 
disregarded in computing the amount of a bond. The bond always shall be 
stated as the next highest dollar.
    (b) Guidelines for determining amount of bond. In determining 
whether the amount of a bond is sufficient, the port director or 
drawback office in the case of a bond relating to repayment of erroneous 
drawback payment (see Sec. 113.11) should at least consider:
    (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

[[Page 495]]

for redelivery, the obligation to hold unexamined merchandise intact, 
and other requirements relating to enforcement and administration of 
Customs and other laws and regulations;
    (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) Periodic review of bond sufficiency. The port directors and 
drawback offices shall periodically review each bond filed in their 
respective port or drawback office in the case of a bond relating to 
repayment of erroneous drawback payment (see Sec. 113.11) to determine 
whether the bond is adequate to protect the revenue and insure 
compliance with the law and regulations. If the port director or 
drawback office determines that the bond is inadequate, the principal 
shall be immediately notified in writing. The principal shall have 30 
days from the date of notification to remedy the deficiency.
    (d) Additional security. Notwithstanding the provisions of this 
section or any other provision of this chapter, if a port director or 
drawback office believes that acceptance of a transaction secured by a 
continuous bond would place the revenue in jeopardy or otherwise hamper 
the enforcement of Customs laws or regulations, he shall require 
additional security.