cfr 113 - cbp bonds

Question 1

who has the authority to require security or execution of the bond, when not specifically required by law or regulation

Answer 1

Commissioner of CBP may require or authorize
1. Director, Revenue Division
or
2. Port director

Question 2

an international customs documents that serves simultaneously as
1. customs entry document
and
2. customs bond

Answer 2

carnet

Question 3

are bond applications required for single transaction bonds

Answer 3

no
port director may require person to file bond application

Question 4

if an application is submitted for a single transaction bond, the application must

Answer 4

identify the value and nature of merchandise

Question 5

when is an application of a single transaction not required

Answer 5

when the bond is filed with the entry summary or with the entry

Question 6

a continuous bond application must be submitted to

Answer 6

Director, Revenue Division

Question 7

what information is required for a continuous bond application

Answer 7

1. general character of merchandise
2. total amount of ordinary customs duties, including taxes

Question 8

I certify that the factual information contained in this application is true and accurate and any information provided which is
based upon estimates is based upon the best
information available on the date of this application.

Answer 8

certification for any bond application

Question 9

who can approve single transaction bonds

Answer 9

Revenue Division OR
Port Director, where bond is filed

Question 10

Who can approve continuous bond transactions

Answer 10

Only Revenue Division

Question 11

Only one continuous bond for a particular activity will be authorized for each principal

Answer 11

??? clarify

Question 12

what is the minimum amount of CBP bond

Answer 12

$100 unless the law expressly provides that a lesser amount may be taken

Question 13

Can fractional part of a dollar be regarded in a bond?

Answer 13

No, bond is sated as next highest dollar

Question 14

the CBP determines if a bond amount is sufficient by considering

Answer 14

1. prior record of principal in
   - timely payment
   - complying with CBP demands
   - honoring bond commitments
2. value and nature of merchandise
3. supervision CBP has on transaction

Question 16

if CBP determines a bond is inadequate, who is notified

Answer 16

principal and surety are notified in writing

Question 17

how many days does the principal have to remedy a bond inadequacy

Answer 17

15 days from date of notification

Question 18

is requiring additional security from the CBP for a continuous bond mandatory

Answer 18

no

Question 19

who drafts conditions to cover a bond

Answer 19

Director, revenue division
or
port director

whatever CBP seems appropriate

Question 20

before execution of the bond, conditions must be sent to who for approval

Answer 20

headquarters, attention: executive director, regulations and rulings, office of international trade

Question 21

bonds approved by the port director will be retained where

Answer 21

port office

Question 22

bonds approved by the revenue division will be retained where

Answer 22

revenue division

Question 23

bonds related to repayment of erroneous drawback payments in 113.65 are retained where

Answer 23

revenue division

Question 24

where do bonds containing an agreement to pay court costs (condemned goods) go

Answer 24

transmitted to US Attorney required by section 608, Tariff Act of 1930

Question 25

what identification must appear in a bond

Answer 25

names of principal and sureties AND respective residences date of execution amount statement

Question 26

are principals required to list the bond trade names and names of unincorporated divisions of the corporate principal

Answer 26

no, optional

Question 27

are abbreviations allowed to be used on the bond

Answer 27

no

Question 28

when are abbreviations allowed to be used on a bond

Answer 28

dates and inc. of principal or surety

Question 29

are blank spaces allowed on a bond

Answer 29

no, lines must be drawn through on all spaces and blocked on areas no filled

Question 30

bonds executed by a non corporate principal or surety must be witnessed by

Answer 30

two persons, who must sign names as witnesses and include addresses

Question 31

what must a witness acting a both principal and surety state on the bond

Answer 31

indicate on bond “as to both”

Question 32

are witnesses required for bonds executed by properly authorized officers or agents of a corporate principal or corporate surety

Answer 32

no

Question 33

changes that go to the substance of the bond or basic revisions of the bond

Answer 33

modification or interlineation changes

Question 34

minor changes such as correction of typographical errors or change of address that do not go to the substance or result in basic revision of the bond

Answer 34

alterations or erasure changes

Question 35

when erasures, alterations, modifications or interlineations are made on the bond prior to its signing by the parties of the bond, what is required

Answer 35

a statement by the agent of the surety company or by the personal sureties placed upon the bond

Question 36

if erasures or alterations are made after the bond is signed but prior to CBP approval

Answer 36

consent of all parties must be written on the bond

Question 37

can modification or interlineation be made on the bond after execution

Answer 37

no, new bond will be executed if changes are wanted or if unless a change is expressly authorized by Commissioner or by regulation

Question 38

can the port director permit a change after CBP approval of a bond

Answer 38

no, new bond is required

Question 39

a bond rider must be filed at

Answer 39

the Revenue Division submitted in paper, fax, or email

Question 40

a rider submitted to CBP in paper format must be attached

Answer 40

securely to the bond to prevent loss or misplacement

Question 41

riders must be

Answer 41

signed sealed witnessed executed with certificate to corporate principal

Question 42

when a seal is required, the seal must be placed

Answer 42

next to signatures of principal and surety corporate seal closest to person signing on behalf of corporation

Question 43

bonds must be under seal in accordance with the law of

Answer 43

which state it was executed

Question 44

a continuous bond or ride may be filed up to

Answer 44

60 days prior to effective date requested for the bond or rider

Question 45

a single transaction bond is effective on

Answer 45

the date of the transaction identified on CBP Form 301

Question 46

a continuous bond is effective on

Answer 46

the effective date identified on CBP Form 301

Question 47

a rider to delete trade names and unincorporated divisions of a corporate principal is effective on

Answer 47

the effective date identified on the rider if date is at least 10 business days after the date port receives the rider if not received 10 business days before the effective date, will be effective on the close of business of the tenth business day after it is received in the port

Question 48

how does the principal or co principal terminate a bond

Answer 48

a written request mailed, faxed or emailed to Revenue Division if repayment of erroneous drawback payment, sent to drawback office where bond was approved

Question 49

when does bond termination take place

Answer 49

on date requested if date is at least 10 business days after the date CBP receives the request if no termination date requested, effect on tenth business day following the date CBP receives the request

Question 50

can a surety terminate a bond

Answer 50

may not disavow already incurred bond but may terminate its agreement to accept future obligations on a bond

Question 51

does a surety require the consent of the principal to terminate a bond

Answer 51

no

Question 52

what must a surety provide to terminate future obligations on a bond

Answer 52

reasonable notice of termination notify Revenue Division (or drawback office) and principal state date termination will take effect

Question 53

what is considered reasonable notice by surety termination

Answer 53

30 days unless surety can show CBP shorter time frame is reasonable

Question 54

if a bond is terminated, can new customs transactions be charged against the bond

Answer 54

no

Question 55

can the same party, person, corporation be both principal and surety on a bond

Answer 55

no

Question 56

can an attorney be both principal and surety

Answer 56

yes

Question 57

can the surety and attorney act as principal

Answer 57

yes

Question 58

can principal and attorney act for the surety

Answer 58

yes

Question 59

partnership bonds must be executed under

Answer 59

the firm name name of member executing bond must appear below firm signature

Question 60

when a bond is executed by any member of the partnership, does it bind all other partners

Answer 60

yes section 495 tariff act 1930

Question 61

the name of a corporation executing a CBP bond as principal can be printed on a stamp

Answer 61

yes followed by written signature of authorized officer or attorney

Question 62

bond of a corporate principal must be signed by

Answer 62

authorized officer or attorney of corporation and corporate seal next to signature