Home Discussion Bonds Bonds – consequence of default

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  • Douglas Meadows
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    Post count: 25

    The answer reference 19 CFR 113.62(l)(4) currently deals with failure to follow security at airport areas. Is there a summary document that outlines all bond liquidated damage fees? I see that directive 3510-004 July 23,1991 details many of the damages. But it does not appear to cover all. Thank you!

    10. Question1 point
    The principal and surety to a basic importation and entry bond agree to pay liquidated damages equal to two times the unpaid duties, taxes and charges estimated to be due or $1,000, whichever is greater, upon default by the principal of which ONE of the following bond agreements?

    A. Agreement to deposit, within the time prescribed by law or regulation, any duties, taxes, and charges imposed, or estimated to be due, at the time of release or withdrawal
    B. Agreement to redeliver merchandise in a timely manner
    C. Agreement to rectify any noncompliance with the provisions of admission
    D. Agreement to pay, as demanded by Customs, all additional duties, taxes, and charges subsequently found to be due, legally fixed, and imposed on any entry secured by the bond
    E. Agreement to produce documents or evidence in a timely manner
    Incorrect. Correct choice is: A
    Explanation: 19 CFR 113.62(l)(4)

    admin
    Keymaster
    Post count: 26

    § 113.62 Basic importation and entry bond conditions.
    A bond for basic importation and entry must contain the conditions listed in this section and may be either a single transaction or a continuous bond.

    Basic Importation and Entry Bond Conditions
    (a) Agreement to Pay Duties, Taxes, and Charges.

    (1) If merchandise is imported and released from CBP custody or withdrawn from a CBP bonded warehouse into the commerce of, or for consumption in, the United States, or under § 181.53 of this chapter is withdrawn from a duty-deferral program for exportation to Canada or Mexico or for entry into a duty-deferral program in Canada or Mexico, the obligors (principal and surety, jointly and severally) agree to:

    (i) Deposit, within the time prescribed by law or regulation, any duties, taxes, and charges imposed, or estimated to be due, at the time of release or withdrawal; and

    (n) Consequence of default.
    (4) If the principal defaults on agreements in the condition set forth in paragraph (a)(1)(i) of this section only, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the unpaid duties, taxes and charges estimated to be due or $1,000, whichever is greater.

    The correct answer choice is A and the citation is 19 CFR 113.62(n)(4).

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