19 CFR 113.63 - Basic custodial bond conditions.
A basic custodial bond must contain the conditions listed in this section and must be a continuous bond.
(a)Receipt of Merchandise. The principal agrees:
(1) To operate as a custodian of any bonded merchandise received, including merchandise collected for transport to his facility, and to comply with all regulations regarding the receipt, carriage, safekeeping, and disposition of such merchandise;
(2) To accept only merchandise authorized under CBP regulations;
(3) To maintain all records required by CBP regulations relating to merchandise received into bond, and to produce the records upon demand by an authorized CBP officer;
(4) If authorized to use the alternative transfer procedure set forth in § 144.34(c) of this chapter, to operate as constructive custodian for all merchandise transferred under those procedures, thereby assuming primary responsibility for the continued proper custody of the merchandise notwithstanding its geographical location;
(5) If authorized to operate a container station under the CBP regulations, to report promptly to CBP each arrival of a container and its merchandise by delivery of the manifest and the application for transfer, or by other approved notice.
(b)Carriage and Safekeeping of Merchandise. The principal agrees:
(1) If a bonded carrier, to use only authorized means of conveyance;
(2) To keep safe any merchandise placed in its custody including, when approved by CBP, repacking and transferring such merchandise when necessary for its safety or preservation;
(3) To comply with CBP regulations relating to the handling of bonded merchandise; and
(4) If authorized to use the alternative transfer procedure set forth in § 144.34(c) of this chapter, to keep safe any merchandise so transferred.
(c)Disposition of Merchandise. The principal agrees:
(1) If a bonded carrier, to report promptly the arrival of merchandise at the destination port by delivering to CBP the manifest or other approved notice;
(2) If a cartage or lighterage business, to deliver promptly and safely to CBP any merchandise placed in the principal's custody together with any related cartage and lighterage ticket and manifest;
(3) To dispose of merchandise in a manner authorized by CBP regulations; and
(4) To file timely with CBP any report required by CBP regulations.
(d)Agreement to Redeliver Merchandise to CBP. If the principal is designated a bonded carrier, or licensed to operate a cartage or lighterage business, or authorized to use the alternative transfer procedure set forth in § 144.34(c) of this chapter, the principal agrees to redeliver timely, on demand by CBP, any merchandise delivered to unauthorized locations or to the consignee without the permission of CBP. It is understood that the demand for redelivery shall be made no later than 30 days after CBP discovers the improper delivery.
(e)Compliance with Licensing and Operating Requirements. The principal agrees to comply with all customs laws and CBP regulations relating to principal's facilities, conveyances, and employees.
(f)Agreement to comply with CBP regulations applicable to customs security areas at airports. If access to customs security areas at airports is desired, the principal (including its employee, agents, and contractors) agrees to comply with the CBP regulations applicable to customs security areas at airports. If the principal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regulation.
(g) The principal agrees to comply with all Importer Security Filing requirements set forth in part 149 of this chapter including but not limited to providing security filing information to CBP in the manner and in the time period prescribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) agree to pay liquidated damages of $5,000 per violation.
(h)Reimbursement and Exoneration of the United States. The principal and surety agree to:
(1) Pay the compensation and expenses of any CBP officer as required by law or regulation;
(2) Pay the cost of any locks, seals, and other fastenings required by CBP regulations for securing merchandise placed in the principal's custody;
(3) Pay for any expenses connected with the suspension or termination of the bonded status of the premises;
(4) Exonerate the United States and its officers from any risk, loss, or expense arising out of the principal's custodial operation; and
(5) Pay any charges found to be due CBP arising out of the principal's custodial operation.
(i)Consequence of Default.
(1) If the principal defaults on conditions (a) through (e) in this agreement, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to the value of the merchandise involved in the default or three times the value of the merchandise involved in the default if the merchandise is restricted or prohibited merchandise or alcoholic beverages, or such other amount as may be authorized by law or regulation.
(2) It is understood and agreed that the amount to be collected under conditions (a) through (e) of this agreement will be based upon the quantity and value of the merchandise as determined by CBP. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(3) If the principal defaults on conditions (a) through (e) in this agreement and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation. It is understood and agreed that whether the default involves merchandise is determined by CBP.
- 19 CFR 149.5 — Eligibility to File an Importer Security Filing, Authorized Agents.
- 19 CFR 112.25 — Bonded Carriers.
- 19 CFR 112.49 — Temporary Identification Cards.
- 19 CFR 123.10 — General Order Merchandise.
- 19 CFR 112.12 — Application for Authorization.
- 19 CFR 128.22 — Bonds.
- 19 CFR 113.63 — Basic Custodial Bond Conditions.
- 19 CFR 122.50 — General Order Merchandise.
- 19 CFR 144.34 — Transfer to Another Warehouse.
- 19 CFR 112.22 — Application for License.
- 19 CFR 125.42 — Cancellation of Liability.
- 19 CFR 112.11 — Carriers Which May Be Authorized.
- 19 CFR 127.14 — Disposition of Merchandise in Customs Custody Beyond Time Fixed by Law.
- 19 CFR 122.182 — Security Provisions.
- 19 CFR 4.37 — General Order.
- 19 CFR 18.25 — Direct Exportation.
- 19 CFR 19.15 — Withdrawal for Exportation of Articles Manufactured in Bond; Waste or Byproducts for Consumption.
- 19 CFR 4.30 — Permits and Special Licenses for Unlading and Lading.
- 19 CFR 18.3 — Transshipment; Transfer by Bonded Cartmen.
- 19 CFR 19.40 — Establishment, Relocation or Alteration of Container Stations.
- 19 CFR 19.2 — Applications to Bond.