[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR113.13]



[Page 539-540]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; 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 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;



[[Page 540]]



    (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.