(z) Special bond for the entry of merchandise believed to involve unfair practices or unfair methods of competition.--Special bond for the entry of merchandise believed to involve unfair practices or methods of competition, taken under the provisions of section 337(f), Tariff Act of 1930, as amended (19 U.S.C. 1337(f)), in the form prescribed in T.D. 45474. This bond shall be in an amount equal to the domestic value of the merchandise, as defined in section 12.39(b) of this chapter.

(aa) Special bond for the clearance of vessel penalized for carrying narcotics.--Special bond for clearance of vessel penalized for carrying smoking opium or other narcotics under the provisions of section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584), in the form prescribed in T.D. 45474. This bond shall be in an amount satisfactory to the district director to guarantee the payment of any fine imposed against the owner or master of the vessel.

(bb) Special bond for the observance of neutrality.--Special bond for observance of neutrality in the form prescribed in T. D. 45474, in an amount equal to double the value of the vessel and cargo on board, including her armament. (cc) Containerized Cargo Bond.--Containerized Cargo Bond (Term), in the form prescribed in section 19.40 of this chapter, in the sum of $25,000, or such larger amount as the district director shall determine.

(dd) Trade Fair Bond.--Trade Fair Bond, in the form prescribed in section 147.3 of this chapter in an amount to be determined by the district director. (ee) Copyright bond.--Copyright bond, the form for which may be obtained from the district director, in an amount equal to the value of the articles, as set forth in the entry, plus the estimated duty. (See section 133.43 of this chapter.)

(ff) Special bond for the importation of flammable fabrics.--Special bond for the importation of flammable fabrics, the form for which may be obtained from the district director, in an amount equal to double the value of the merchandise.

(gg) Bond of Customs Cartman for Issuance of Temporary Identification Card.-- Bond of Customs Cartman for Issuance of Temporary Identification Card, in the form prescribed in section 112.49(d) of this chapter, in an amount determined by the district director.

The district director at the port where the bond is filed may approve any bonds described in section 113.14, if he is satisfied that:

(a) The amount of the bond is sufficient, and

(b) The bond is in proper form.

113.16 Amount of bond approved by the district director.

The amount of any Customs bond approved by the district director shall not be less than $100, except when the law or regulation expressly provides that a lesser amount be taken. Fractional parts of a dollar shall be disregarded in computing the amount of the bond, which shall be stated always as the next highest dollar.

113.17 Approved form of bond inadequate.

If a situation develops where the approved form of a bond, described in section 113.14, is deemed to be inapplicable, the district director may draft a form which he believes will be sufficient, but before the execution of the bond, the proposed form shall be submitted to the Commissioner of Customs for his consideration and approval.

113.18 Retention of approved bonds.

All the bonds approved by the district director described in section 113.14, except the Bond of Claimant of Seized Goods for Costs of Court, Customs Form 4615, shall remain on file in his office. The bond on Customs Form 4615, described in section 113.14(d), shall be transmitted to the United States attorney, as required by section 608, Tariff Act of 1930, as amended (19 U.S.C. 1608).

CR-113.6

Subpart C--GENERAL AND SPECIAL BOND REQUIREMENTS

113.21 Information required on the bond.

(a) Identification of principal and sureties.-- The names of the principal and sureties and their respective places of residence shall appear in full in the body of 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.

(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 both words and figures.

(d) Use of abbreviations.--Abbreviations shall not be used, except in dates, descriptions of merchandise, the marks and numbers on packages, and the State of incorporation of the principal or the surety.

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

(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, followed by 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" or a similar term.

(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 sections 113.34 and 113.37.

113.23 Changes made on the bond.

(a) Definition of the types of changes.--(1) Modification or interlineation. -- For the purpose of this section, 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 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 in 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 modification or interlineation is desired, a new bond will be executed.

(d) After approval of the bond by Customs.-- Except in cases where change in the bond is expressly authorized by regulations, or instructions from the Commissioner, the district 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.

(e) Stipulations.-- All stipulations expressly authorized by the Commissioner pursuant to this section shall be securely attached to the related bond to prevent their loss or misplacement.

(a) Bonds approved by the Commissioner of Customs.-- Bonds which are approved by the Commissioner of Customs must be under seal. The seal on such bonds shall be affixed adjoining the signatures of principal and sureties, if individuals, and the corporate seal shall be affixed adjoining the signatures of persons signing on behalf of a corporation.

CR-113.7

(b) Bonds approved by the district director.-- Bonds approved by the district director 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.

The termination date of every term bond shall be the last day of the period and not the first day of a succeeding period; for example, January 1, 19--, to and including December 31 of that same year, and not January 1, 19--, to January 1 of the next year.

113.26 Bond transcript for certain term bonds.

(a) Submission. There shall be furnished to the district director with each bond on Customs Forms 7553, 7563-A, 7569, 7595, and 7599 a completed Bond Transcript on Customs Form 53, in triplicate. The bond and bond transcript shall be furnished at least 60 days before the date on which the bond shows it is to become effective, except that a bond on Customs Form 7553 and the related bond transcript may be accepted on, or at any time before, the effective date of the bond. It shall be the responsibility of the importer or his agent to execute the bond transcript.

(b) Request for termination. Each request to terminate a bond of a type named in paragraph (a) of this section prior to the expiration date of the bond shall be filed with the district director of Customs in whose office the bond was approved. The request must be accompanied by a completed Customs Form 53, in triplicate, appropriately marked to terminate an existing bond.

(c) Submission of new bond to replace existing bond. When a new bond is submitted to replace an existing bond, two bond transcripts must be furnished. One must be submitted to initiate the new bond, as required by paragraph (a) of this section; the other must be submitted to terminate the existing bond, as required by paragraph (b) of this section.

(d) Date of termination.--(1) When filed at least 60 days in advance of requested termination date. The termination shall take effect on the date requested. If the request and bond transcript are filed at least 60 days in advance of the requested date.

(2) When filed less than 60 days in advance of termination date. If the request and bond transcript are not filed at least 60 days in advance of the requested date, the termination shall take effect on the 60th day after receipt by the district director.

(3) When termination requested by surety without consent of the principal. When termination of a bond is requested by the surety without the consent of the principal, it shall take effect on the 60th day after approval by the district director.

(4) When new bond cannot be initiated. When a new bond cannot be initiated because the Customs Form 53, as required by paragraph (a) of this section, is incorrect, any accompanying Customs Form 53 for termination of an existing bond shall not take effect until such time as both transcripts can take effect. 113.27 Copies of blanket smelting and refining bonds.

Blanket smelting and refining bonds, described in section 113.13(b), requiring the approval of the Commissioner of Customs, shall be accompanied by a sufficient number of copies for transmittal by the Commissioner to each port at which the principal seeks to conduct business.

113.31

Subpart D--PRINCIPALS AND SURETIES

Information pertaining to principals and sureties on the bond.

The general information pertaining to the principal and sureties which must be given in the body of the bond is set forth in section 113.21(a).

113.32 Same party as principal and surety; attorney in fact.

(a) Same party as principal and surety.-- The same person, partnership, or corporation cannot be both principal and surety on a bond.

(b) Attorney in fact for principal or surety.--In executing a bond, a person may act as: (1) Attorney in fact for both principal and surety;

CR-113.8

(a) Name of partners on the bond.--Unless written notice of the full names of all partners in the firm has been previously filed with the district director, the names of all persons composing the partnership shall appear in the body of the bonds; for example, "Aaron A. Abel, Bertrand B. Bell and Charles C. Cole, composing the firm of Abel, Bell and Co.

(b) Execution.-- Partnership bonds shall be executed in the firm name, with the name of the member or attorney of the firm executing it appearing immediately below the firm signature.

(c) Action of one principal binding on all principals of the partnership.--Pursuant to section 495 of the Tariff Act of 1930 (19 U.S.C. 1495), when a Customs bond is executed by any member of the partnership, the bond shall be binding on the other partners in like manner and to the same extent as if such other partners had personally joined in the execution.

113.34 Corporations as principals.

(a) Name of corporation on the bonds.-- The name of a corporation executing a Customs bond as a principal, may be printed or placed thereon by means of a rubber stamp or otherwise, followed by the written signature of the authorized officer or attorney.

(b) Signature and seal of the corporation on the bond.--The bond of a corporate principal shall be signed by an authorized officer or attorney of the corporation and the corporate seal shall be affixed immediately adjoining the signature of the person executing the bond, as provided for in section 113.24.

(c) Bond executed by an authorized officer of corporation.--When the bond is executed by an authorized officer of a corporation and no power of attorney has been filed with the district director, the following evidence of his authority to act shall be furnished:

(1) Execution of Certificate as to Corporate Principal.--The official character, authority, and signature of the person or persons executing the bond for the corporate principal may be certified by the secretary, assistant secretary, or other officer of the corporation. Such certification shall be made by executing, under corporate seal, the provision appearing in the bond entitled "Certificate as to Corporate Principal."

(2) Evidence in lieu of the certificate.--In lieu of the above certificate, there may be attached to the bond so much of the records of the corporation as will show the official character, authority, and signature of the officer signing. The following documents should be attached:

(i) A certificate from the proper public officer showing the legal existence of the corporation. The district director, on bonds which he approves (section 113.14), may waive the production of evidence of incorporation when such fact is a matter of common knowledge and he certifies this fact.

(ii) A copy of the bylaws, or so much thereof as authorizes the execution of such bonds, certified by the secretary of the corporation and authenticated by its corporate seal.

(iii) A copy of the document authorizing such officer to sign such bond, certified by the secretary of the corporation under the corporate seal, or a power of attorney executed in accordance with subpart C of Part 141 of this chapter containing such authority.

(iv) A document verifying the signature of the officer properly attested under the corporate seal.

(d) Bond executed by an attorney in fact.--When an attorney in fact executes a bond on behalf of a corporate principal and a power of attorney has not been filed with the district director (unless exempted from filing by section 141.46 of this chapter), there shall be attached a power of attorney executed under the corporate seal by an officer of the corporation whose authority to execute such power shall be shown as prescribed in paragraph (c) of this section. 113.35 Individual sureties.

(a) Number required.--If individuals sign as sureties, there shall be two sureties on the bond. In the case of bonds approved by the district director, however, one surety may be accepted if the district director is satisfied that such surety is sufficient for the protection of the Government.

CR-113.9

(b) Qualifications to act as surety.--(1) Residency and citizenship.-- Every surety on a Customs bond must be both a resident and citizen of the United States.

(2) Married women.--A married woman may be accepted as a surety, unless the State in which the bond is executed prohibits her from acting that capacity.

(3) Granting of power of attorney.--Any individual other than a married woman in a State where she is prohibited from acting as a surety may grant a power of attorney to sign as surety on Customs bonds. If the power of attorney is limited to bonds of one or several importers, the importers shall be named in the power.

(4) Property requirements.--Each individual surety must have unencumbered property liable to execution within the limits of the Customs district in which the contract of suretyship is to be performed. The current market value of such property must be equal to the penalty of any bond executed by him. If a single surety is accepted, he shall qualify in an amount equal to twice the penalty of the bond.

(c) Oath and evidence of solvency.--Before being accepted as a surety, the individual shall:

(1) Take an oath on Customs Form 3579, setting forth:

(i) The amount of his assets over and above all his debts and liabilities

and such exemptions as may be allowed by law; and

(ii) The general description and the location of one or more pieces of real estate owned by him within the limits of the Customs district and the value thereof over and above all encumbrances.

(2) Produce such evidence of solvency and financial responsibility as the district director may require.

(d) Determination of financial responsibility.--An individual surety shall not be accepted on a bond until he has satisfied the district director as to his financial responsibility. The district director may refer the matter to the special agent in charge for immediate investigation to verify the financial responsibility of the surety.

(e) Continuance of financial responsibility.--In order to follow the continued solvency and financial responsibility of individual sureties, the district director shall require a new oath and determine the financial responsibility of each such surety as prescribed in paragraphs (c) and (d) of this section at least once every 6 months, and more often if he deems it advisable.

113.36 Partners acting as surety in behalf of a partner or in behalf of a partnership.

A person may act as surety for a business partner when such person is acting with respect to his separate property and in his individual capacity and as such must qualify as an individual surety, in accordance with section 113.35. A member of a partnership shall not be accepted as surety on a bond executed by the firm as principal.

113.37 Corporate sureties.

(a) Lists of corporations and limits of their bonds.-- A list of corporations authorized to act as sureties on bonds, with the amount in which each may be accepted, shall be furnished annually to all district directors by the Secretary of the Treasury. No corporation shall be accepted as surety on a bond unless named in the current list and no bond shall be for a greater amount than the respective limit stated in such list, unless the excess is protected as prescribed in section 223.11 of the Bureau of Accounts Regulations (31 CFR 223.11).

(b) Name of corporation on the bond.-- The name of a corporation executing a Customs bond, as a surety, may be printed or placed thereon by means of a rubber stamp or otherwise, followed by the written signature of the authorized officer or attorney.

(c) Name of agent or attorney on the bond.-- The agent or attorney acting for a corporate surety shall have stamped, printed, or typed on each bond executed by him, below his signature, his full name as it appears on the bond.

(d) Signature and seal of the corporation on the bond.--A bond executed by a corporate surety shall be signed by an authorized officer or attorney of the corporation and the corporate seal shall be affixed immediately adjoining the signature of the person executing the bond, as provided for in section 113.24.

CR-113.10