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Electronic Code of Federal Regulations

e-CFR Data is current as of August 21, 2014

Title 19Chapter IPart 113 → Subpart C


Title 19: Customs Duties
PART 113—CUSTOMS BONDS


Subpart C—Bond Requirements


Contents
§113.21   Information required on the bond.
§113.22   Witnesses required.
§113.23   Changes made on the bond.
§113.24   Riders.
§113.25   Seals.
§113.26   Effective dates of bonds and riders.
§113.27   Effective dates of termination of bond.

§113.21   Information required on the bond.

(a)(1) Identification of principal and sureties. The names of the principal and sureties and their respective places of residence shall appear in the bond. In the case of a corporate principal or surety, its legal designation and the address of its principal place of business shall appear.

(2) Identification of trade names and unincorporated divisions of a corporate principal. The principal may list on the bond trade names and the names of unincorporated divisions of the corporate principal which do not have a separate and distinct legal status who are authorized to use the bond in their own name.

(b) Date of execution. Each bond shall bear the date it was actually executed.

(c) Statement of the amount. The amount of the bond shall be stated in figures.

(d) Use of abbreviations. Abbreviations shall not be used except in dates and the state of incorporation of the principal or the surety.

(e) Blank spaces on the bond. Lines shall be drawn through all spaces and blocks on the bond which are not filled in.

§113.22   Witnesses required.

(a) Generally. The signature of each party to a bond executed by a noncorporate principal or surety shall be witnessed by two persons, who shall sign their names as witnesses, and include their addresses.

(b) Witness for both principal and surety. When two persons signing as witnesses act for both principal and surety, they shall so indicate by stating on the bond “as to both”.

(c) Corporate principal or surety. No witnesses are required where bonds are executed by properly authorized officers or agents of a corporate principal or corporate surety. For requirements concerning the execution of a bond by an authorized officer or agent of a corporate principal or surety, see §§113.33 and 113.37 of this part.

§113.23   Changes made on the bond.

(a) Definition of the types of changes—(1) Modification or interlineation. Modifications or interlineations are changes which go to the substance of the bond, or are basic revisions of the bond.

(2) Alterations or erasures. Alterations or erasures consist of minor changes, such as the correction of typographical errors, or change of address, which do not go to the substance, or result in basic revision of the bond.

(b) Prior to signing. When erasures, alterations, modifications, or interlineations are made on the bond prior to its signing by the parties to the bond, a statement by an agent of the surety company or by the personal sureties to that effect shall be placed upon the bond.

(c) After signing. If erasures or alterations are made after the bond is signed, but prior to the approval of the bond by Customs, the consent of all the parties shall be written on the bond. Except in cases where a change in the bond is expressly authorized by regulation, or by the Commissioner, no modification or interlineation shall be made on the bond after execution. When a modification or interlineation is desired, a new bond will be executed.

(d) After approval of the bond by Customs. Except in cases where a change in the bond is expressly authorized by regulations, or instructions from the Commissioner, the port director shall not permit a change as defined in paragraph (a) of this section after the bond has been approved by Customs. When changes are desired, a new bond is required, which, when approved, shall supersede the existing bond.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]

§113.24   Riders.

(a) Types of riders. The port director may accept the following types of bond riders.

(1) Name change of principal. A bond rider to change the name of a principal on a bond may be used only when the change in name does not change the legal identity or status of the principal. If a new corporation is created as a result of a merger, reorganization or similar action, a bond rider for a name change of the principal can not be used. A new bond would be required.

(2) Address change. A bond rider may be used to change the address of a principal on a bond.

(3) Addition and deletion of trade names and unincorporated divisions of a corporate principal. A bond rider may be used to add to or delete from a bond trade names and the names of unincorporated divisions of a corporate principal which do not have a separate and distinct legal status.

(b) Where filed. A rider must be filed at the port where the bond was approved.

(c) Attachment of rider to bond. All riders expressly authorized by the Commissioner shall be securely attached to the related bond to prevent their loss or misplacement.

(d) Format of rider. The riders shall be signed, sealed, witnessed, executed, include a certificate as to corporate principal, if applicable, and otherwise comply with the requirements of this part. The riders shall contain the following conditions:

(1) Name change of principal.

By this rider to the Customs Form 301,__ (bond number), dated __, executed by __, (former name), as principal, __, (importer number), the, __ (new name), hereby certifies that it is the same entity formerly known as __, (former name), and the principal and surety agree that they are responsible for any act secured by this bond done under principal's former name. Principal and surety agree to be bound under this bond to the same extent as if this bond had been executed in the principal's new name. This rider is effective on __ (date).

(2) Address change.

By this rider to Customs Form 301, __ (bond number) executed on __ (date), by __, (principal's name), as principal, __, (importer number), and __ (surety's name and code), as surety, which is effective on __ (date), the principal, surety or both, intend that the bond be amended to show __ (new address) as their address. The principal, surety or both, as may be appropriate agree to be bound as though this bond has been executed with the new address(s) shown.

(3) Addition or deletion of trade names and unincorporated divisions of a corporate principal—(i) Addition rider.

By this rider to the Customs Form 301, __, (bond number), executed on __, (date), by __, (principal's name), as principal, __, (importer number) and __, (surety's name and code), as surety, which is effective on __ (date), the principal and surety agree that the below listed names are unincorporated units of the principal or are trade or business names used by the principal in its business and that this bond covers its business and that this bond covers any act done in those names to the same extent as though done in the name of the principal. The principal and surety agree that any such act shall be considered to be the act of the principal.

(ii) Deletion rider.

By this rider to the Customs Form 301, __, (bond number), executed on __, (date), by __, (principals name) as principal, __, (importer number and __, (surety's name and surety code), as surety, which is effective on __, (date), the principal and surety agree that the below listed names of unincorporated units of the principal or trade or business names used by the principal in its business are deleted from the bond effective upon the date of approval of the rider by the appropriate Customs bond approval official.

§113.25   Seals.

When a seal is required, the seal shall be affixed adjoining the signatures of principal and surety, if individuals, and the corporate seal shall be affixed close to the signatures of persons signing on behalf of a corporation. Bonds shall be under seal in accordance with the law of the state in which executed. However, when the charter or governing statute of a corporation requires its acts to be evidenced by its corporate seal, such seal is required.

§113.26   Effective dates of bonds and riders.

(a) General. Bonds including the application, if required by §113.12, and riders may be filed up to 30 days before the effective date in order to provide adequate time for Customs administrative review and processing.

(b) Single transaction bond. A single transaction bond is effective on the date of the transaction identified on the Customs Bond, Customs Form 301.

(c) Continuous bond. A continuous bond is effective on the effective date identified on the Customs Bond, Customs Form 301.

(d) Riders for name change of principal, address change, and addition of trade names and unincorporated divisions of a corporate principal. Riders for a name change of principal, address change, and addition of trade names and unincorporated divisions of a corporate principal are effective on the effective date identified on the rider.

(e) Rider to delete trade names and unincorporated divisions of a corporate principal. A rider to delete trade names and unincorporated divisions of a corporate principal is effective on the effective date identified on the rider if the date is at least 10 business days after the date the port receives the rider. If the rider is not received 10 business days before the identified effective date or no effective date is identified on the rider, it will be effective on the close of business of the tenth business day after it is received in the port.

§113.27   Effective dates of termination of bond.

(a) Termination by principal. A request by a principal to terminate a bond shall be made in writing to the port director or drawback office in the case of a bond relating to repayment of erroneous drawback payment where the bond was approved. The termination shall take effect on the date requested if the date is at least 10 business days after the date of receipt of the request. Otherwise the termination shall be effective on the close of business 10 business days after the request is received at the port or drawback office. If no termination date is requested, the termination shall take effect on the tenth business day following the date of receipt of the request by the port director, or drawback office in the case of bonds relating to repayment of erroneous drawback payment.

(b) Termination by surety. A surety may, with or without the consent of the principal, terminate a Customs bond on which it is obligated. The surety shall provide reasonable written notice to both the director of the port where the bond was approved or appropriate drawback office in the case of bonds relating to repayment of an erroneous drawback payment and the principal of the intent to terminate. The written notice shall state the date on which the termination shall be effective and shall be sent to both Customs and the principal by certified mail, with a return receipt requested. Thirty days shall constitute reasonable notice unless the surety can show to the satisfaction of the port director, or drawback office in the case of bonds relating to repayment of an erroneous drawback payment, that a lesser time is reasonable under the facts and circumstances.

(c) Effect of termination. If a bond is terminated no new Customs transactions shall be charged against the bond. A new bond in an appropriate amount on Customs Form 301, containing the appropriate bond conditions set forth in subpart G of this part, shall be filed before further Customs activity may be transacted.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]



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