[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: 19CFR113.67]

[Page 513-514]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 113--CUSTOMS BONDS--Table of Contents
 
                   Subpart G--Customs Bond Conditions
 
Sec. 113.67  Commercial gauger and commercial laboratory bond conditions.

                    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 Sec. 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 Secs. 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.

[[Page 514]]

    (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]