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

(28) Bond for entry and transportation of special delivery packages under the act of June 8, 1896, in the amount of $10,000.

(29) Special bond in the form prescribed in T. D. 45474 for exportation of convict-made goods, in an amount equal to the domestic value of the merchandise.

(30) 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.

(31) Superseding bond of the actual owner whose declaration has been filled pursuant to section 485 (d), Tariff Act of 1930, to pay increased and additional duties imposed upon or by reason of importation, to redeliver merchandise for marking and other purposes, and to perform all required acts with respect to merchandise not entitled to admission into the commerce of the United States, customs Form 7601, in an amount equal to the amount of the single-entry bond or the bond charge which it supersedes.

(b) The amount of any customs bond approved by the collector shall not be less than $100, except when the law or regulation expressly provides that a lesser amount may be taken. Fractional parts of a dollar shall be disregarded in computing the amount, which shall be stated always as the next higher dollar. The amount of the bond shall be stated both in words and figures. Abbreviations shall not be used, except in dates, descriptions of merchandise, and the marks and numbers on packages. Lines shall be drawn through all spaces not filled in.

(c) If a situation develops where the approved form of a bond is deemed to be inapplicable, the collector may draft a form which he believes will be sufficient, but before execution of the bond the case shall be submitted to the Bureau for its

268016-54-31

consideration and approval of the proposed form.

(R. S. 4197, as amended, 4200, as amended; 46 U. S. C. 91, 92) [13 F. R. 8112, Dec. 18, 1948, as amended by T. D. 52123, 14 F. R. 143, Jan. 12, 1949; T. D. 52403, 15 F. R. 794, Feb. 14, 1950; T. D. 52560, 15 F. R. 6325, Sept. 22, 1950; T. D. 52626, 15 F. R. 8965, Dec. 16, 1950; T. D. 53336, 18 F. R. 5425, Sept. 9, 1953; T. D. 53399, 18 F. R. 8691, Dec. 24, 1953]

(a) The

§ 25.5 General instructions. names of the principal and sureties and their respective places of residence shall appear in full in the body of the bond. The signature of each party to a bond executed by a non-corporate principal or surety shall be witnessed by two persons, who shall sign their names as witnesses, followed by their addresses. No witnesses are required where bonds are executed by properly authorized officers or agents of a corporate principal or a corporate surety. If the bond is executed by an authorized officer of a corporation, the officer's signature shall be properly attested under the corporate seal.

(b) When two persons signing as witnesses act for both principal and surety, they shall so indicate by stating "as to both," or a similar term.

(c) Each bond shall bear the date of the day it was actually executed. 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, 1940, to and including December 31, 1940, and not January 1, 1940, to January 1, 1941.

(d) A bond in which erasures, interlineations, or alterations occur shall have placed upon it a statement by an agent of the surety company or by the personal sureties that such erasures, interlineations, or alterations were made prior to this signing of the bond. If such alterations or erasures were made after the bond was signed, the consent of all the parties thereto shall be written in the bond.

[13 F. R. 8113, Dec. 18, 1948, as amended by T. D. 52508, 15 F. R. 4113, June 27, 1950]

§ 25.6 Seal. (a) The seal on a bond approved by the Secretary of the Treasury or the Bureau shall be affixed adjoining the signatures of principals and sureties, if individuals, and the corporate seal shall be affixed adjoining the signatures of persons signing on behalf of the corporation.

(b) Bonds approved by collectors of customs shall be sealed in accordance

Page 465

with the law of the state in which executed, and when the charter or governing statute of a corporation requires its acts to be evidenced by its corporate seal, such seal is required.

[13 F. R. 8114, Dec. 18, 1948, as amended by T. D. 52395, 15 F. R. 584, Feb. 2, 1950]

§ 25.7 Partnerships as principals. (a) 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.'

(b) Unless written notice of the full names of all partners in the firm have been previously filed with the collector, the names of all persons composing the partnership shall appear in the body of the bond; for example, “A, B, and C, composing the firm of A, B, and C." [13 F. R. 8114, Dec. 18, 1948]

§ 25.8 Corporations as principals. (a) When a corporation is the principal, its legal designation and the address of its principal place of business shall be inserted in the body of the bond. The bond shall be signed by an authorized officer or attorney of such corporation and the corporate seal shall be affixed immediately adjoining the signature of the person executing the bond, as provided for in § 25.6 (b). When the bond is to be approved by the Secretary of the Treasury or the Bureau, the official character and authority of the person or persons executing the bond for the principal may be certified by the secretary, assistant secretary, or other officer of the corporation. Such certification shall be made by executing the certificate as to corporate principal appearing in the bond. In lieu of such certificate, there may be attached to the bond so much of the records of the corporation as will show the official character and authority of the officer signing, such evidence to consist of:

(1) A certificate from the proper public officer showing the legal existence of the corporation.

"When any bond is required by law or regulation to be executed by any partnership for any purpose connected with the transaction of business at any customhouse, the execution of such bond by any member of such partnership shall bind the other partners in like manner and to the same extent as if such other partners had personally joined in the execution, and an action or suit may be instituted on such bond against all partners as if all had executed the same." (Tariff Act of 1930, sec. 495; 19 U. S. C. 1495)

(2) 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.

(3) A copy of the document authorizing such officer to sign such bonds, certified by the secretary of the corporation under the corporate seal, or a power of attorney executed in accordance with § 8.19 of this chapter containing such authority.

(b) When the bond is approved by the collector, the evidence prescribed in paragraph (a) of this section shall be filed with such officer. The collector may waive the production of evidence of incorporation when such fact is a matter of common knowledge and he shall so certify.

(c) When an attorney in fact executes a bond on behalf of a corporation and the bond is to be approved by the Secretary of the Treasury or the Bureau, 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 (a) of this section. If the bond is to be approved by the collector, the power of attorney shall be filed with him on the prescribed form.

(d) The name of a corporation executing a customs bond 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.

[13 F. R. 8114, Dec. 18, 1948, as amended by T. D. 52395, 15 F. R. 584, Feb. 2, 1950]

§ 25.9 Individual sureties. (a) If individuals sign as sureties, there shall be not less than two, except that, in the case of bonds approved by the collector, one surety may be accepted if the collector is satisfied that such surety is sufficient for the protection of the Government. Every surety on a customs bond must be both a resident and a citizen of the United States. Before being accepted as surety, he shall take oath on customs Form 3579, setting forth the amount of his assets over and above all his debts and liabilities and such exemptions as may be allowed by law, 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, and he shall

produce such evidence of solvency and financial responsibility as the collector may require.

(b) Each individual surety must have unencumbered property liable to execution, the current market value of which 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. The property must be located within the limits of the customs district in which the contract of suretyship is to be performed.

(c) An individual surety shall not be accepted on a bond until he has satisfied the collector as to his financial responsibility. The collector may refer the matter to the principal officer of the Customs Agency Service in his district for immediate investigation to verify the financial responsibility of the surety.

(d) In order to follow the continued solvency and sufficiency of individual sureties, the collector shall require a new oath and determine the sufficiency of each such surety as prescribed in paragraphs (a) and (c) of this section at least once every 6 months, and oftener if he deems it advisable.

(e) A married woman shall not be accepted as surety.

(f) Any individual other than a married woman may grant a power of attorney to sign as surety on customs bonds. If limited to bonds of one or several importers, the importers shall be named in the power.

[13 F. R. 8114, Dec. 18, 1848]

§ 25.10 Delinquent sureties. (a) No person shall be accepted as surety on any customs bond while he is in default as principal on any other customs bond.

(b) A surety on a customs bond which is in default may be accepted as surety on other customs bonds only to the extent that his assets are unencumbered by such default.

[13 F. R. 8114, Dec. 18, 1948]

§ 25.11 Partners as sureties. 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, but a member of a partnership shall not be accepted as surety on a bond executed by the firm as principal.

[13 F. R. 8114, Dec. 18, 1948]

§ 25.12 Corporate sureties. (a) A list of corporations authorized to act as sureties on bonds, with the amount in which each may be accepted, will be furnished semiannually to all collectors of customs by the Secretary of the Treasury. No corporation shall be accepted as a 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 31 CFR 223.12.

(b) Two or more companies may be accepted as sureties on any obligation the amount of which does not exceed the limitations of their aggregate qualifying power as fixed and determined by the Secretary of the Treasury. In such cases each company shall limit its liability, in terms, upon the face of the bond to a definite specified amount, using customs Form 3903 for that purpose, such amount to be in all cases within the limitation prescribed by the Secretary, unless such excess is protected as prescribed in 31 CFR 223.12.

(c) When a bond is executed by an authorized and approved corporate surety through its agent or attorney, a power of attorney on Treasury Form 272, showing the authority of such person to act for the surety company, shall be filed in the office of the collector approving such bond or shall be filed in the Treasury Department when the bond is to be approved by the Secretary of the Treasury or the Bureau.

(d) When a bond is executed in a customs district other than the one in which it is to be filed, the bond may be approved as to surety by the collector of customs in the district in which it was executed if evidence of the authority of each officer or agent executing the bond on behalf of the surety is on file in his office. If the bond is not to be approved by the collector in whose district it is executed, the authority of the person or persons executing the bond on behalf of the company shall be completed, as provided for in paragraph (c) of this section, and attached to the bond unless such evidence has been submitted to the collector at the port where the bond is to be approved and filed.

[13 F. R. 8114, Dec. 18, 1948, as amended by T. D. 52395, 15 F. R. 584, Feb. 2, 1950; T. D. 53399, 18 F. R. 8691, Dec. 24, 1953]

§ 25.13 Same party as principal and surety; attorney. The same person, partnership, or corporation cannot be both principal and surety on a bond, but a person may act as attorney in fact for both principal and surety. A person acting at attorney in fact for a principal may be accepted as surety on the same bond and, when acting as attorney for the surety, may be the principal on such bond.

[13 F. R. 8115, Dec. 18, 1948]

§ 25.14 Acceptance of cash deposits or obligations of the United States in lieu of sureties on bonds. In lieu of sureties on any bond required or authorized by any law, regulation, or instruction which the Secretary of the Treasury or the Customs Service is authorized to enforce, collectors of customs are authorized to accept United States money, United States bonds, United States certificates of indebtedness, Treasury notes, or Treasury bills in an amount equal to the amount of the bond. At the time of the deposit of any obligation of the United States, other than United States money, with the collector, the obligor shall deliver to such collector a duly executed power of attorney and agreement in favor of the collector in a form similar to that prescribed in Department Circular 154, dated February 6, 1935, authorizing such officer, in case of any default in the performance of any of the conditions or stipulations of the bond, to sell such obligation so deposited and to apply the proceeds of such sale, in whole or in part, to the satisfaction of any damages, demands, or deficiency arising by reason of such default. If cash is deposited in lieu of sureties on the bond, the collector is authorized to apply such cash, in whole or in part, to the satisfaction of any damages, demands, or deficiency arising by reason of a default under the bond. [13 F. R. 8115, Dec. 18, 1948, as amended by T. D. 53399, 18 F. R. 8691, Dec. 24, 1953]

"The Secretary of the Treasury is authorized to permit the deposit of money or obligations of the United States, in such amount and upon such conditions as he may by regulation prescribe, in lieu of sureties on any bond required or authorized by a law, regulation, or instruction which the Secretary of the Treasury or the Customs Service is authorized to enforce." (Tariff Act of 1930, sec. 623 (e), as amended; 19 U. S. C. 1623 (e))

§ 25.15 Export bonds; cancellation. (a) A bond to assure the exportation of merchandise may be canceled upon the specification of such merchandise on the outward manifest or outward bill of lading, the inspector's certificate of lading, the record of clearance of the vessel or of the departure of the vehicle, and the production of a foreign landing certificate if such certificate is required by the collector; or, if exportation or destruction is not timely in the case of articles entered under section 308, Tariff Act of 1930, as amended, upon the payment of liquidated damages in accordance with the provisions of $10.39 of this chapter. The requirements the vessel, vehicle, or aircraft bond, customs Form 7567 or 7569, may be considered as having been complied with upon the production of such of the abovementioned documents as may be applicable thereto; but to establish the exportation of narcotic drugs or any equipment, stores (except such articles as are placed on board vessels or aircraft under the provisions of section 309 or 317, Tariff Act of 1930, as amended), or machinery for vessels, a landing certificate shall be required in every case.

of

(b) This landing certificate shall be produced within 6 months from the date of exportation and shall be signed by a revenue officer of the foreign country to which the merchandise is exported, unless it is shown that such country has no customs administration, in which case the certificate may be signed by the consignee or by the vessel's agent at the place of landing.

(c) Except as provided for in § 4.88 of this chapter, in cases where landing certificates are required and they cannot be produced, an application for waiver thereof may be made to the Bureau through the collector, accompanied by

An exportation is a severance of goods from the mass of things belonging to this country with the intention of uniting them to the mass of things belonging to some foreign country. The shipment of merchandise abroad with the intention of returning it to the United States with a design to circumvent provisions of restriction or limitation in the tariff laws or to secure a benefit accruing to imported merchandise is not an exportation. Merchandise of foreign origin returned from abroad under these circumstances is dutiable according to its nature, weight, and value at the time of its original arrival in this country.

such proofs of exportation and landing abroad as may be available.

(d) In the case of articles for which the ordinary customs duty estimated at the time of entry did not exceed $10 and which are exported within the period of the bond (including any lawful extension) but without customs supervision, the bond may be canceled upon production of evidence of a bona fide exportation satisfactory to the collector.

(e) If any customs bond, except one given only for the production of freeentry or reduced-duty documents, is unsatisfied upon the expiration of 60 days after a liability has accrued thereunder, the matter shall be reported to the United States attorney for prosecution unless measures have been taken to file an application for relief or to effect a satisfactory settlement.

[13 F. R. 8115, Dec. 18, 1948, as amended by T. D. 53268, 18 F. R. 3095, May 29, 1953; T. D. 53336, 18 F. R. 5425, Sept. 9, 1953]

§ 25.16 Bonds and stipulations for production of missing documents; card memorandum; time for production of documents. (a) When entry is made prior to the production of a required document, whether the importer gives bond on customs Form 7551 or 7553, or other appropriate form, or stipulates to produce such documents, a card memorandum on customs Form 5101 shall be prepared by the importer and presented with the entry.

(b) When a charge for the production of a missing document is made against a term bond, the charge shall be in the amount of the single entry bond that would have been taken had the transaction been covered by a single entry bond.

(c) Except when another period is fixed by law or the regulations in this chapter any document for the production of which a bond or stipulation is given shall be delivered to the collector of customs within 6 months from the date of the transaction in connection with which the bond or stipulation was given, or within any extension of such time which may be granted pursuant to § 25.18 (a). If the period ends on a Saturday, Sunday, or holiday, delivery on the next business day shall be accepted as timely.

[T. D. 52111, 13 F. R. 8130, Dec. 21, 1948, as amended by T. D. 53399, 18 F. R. 8691, Dec. 24, 1953]

§ 25.17 Nonproduction of documents; failure to redeliver packages; sums to be

collected. (a) Collectors of customs are hereby authorized to treat any bond charge for the production of a missing document as satisfied upon payment by the principal or surety of the sum of $10 as liquidated damages for each missing declaration of the consignee or other document, except shippers' export declarations and certified and commercial invoices not produced within the time prescribed by law or regulations or any lawful extension of such time.

(b) When a required certified or commercial invoice is not produced on the date of entry or within 6 months thereafter, the bond charge for the production thereof may be canceled upon the payment of $10 as liquidated damages, provided the person who made the entry submits an application for relief from the full amount of the charge, explaining in detail why the certified or commercial invoice could not be produced within the prescribed period, and the collector of customs is satisfied by such application or otherwise that the failure to produce the invoice within the prescribed period was due to causes wholly beyond the control of the person making the entry and not to any purpose of the foreign seller or shipper to withhold information required by law, regulation, or special instruction to be shown on the invoice.

(c) For each shipper's export declaration covering goods exported to Canada or Mexico by car, vehicle, or ferry, which is not produced within the thne prescribed by the regulations or any lawful extension thereof, the sum of $50 shall be collected as liquidated damages.

(d) For failure to return to the collector on demand merchandise subject to return to customs custody, an amount equal to the value as set forth in the entry of the merchandise not returned plus the estimated duties and taxes imposed upon or by reason of importation, if any, on such merchandise as determined at the time of entry shall be demanded. When the demand for return to customs custody is made in the case. of merchandise entered under section 308, Tariff Act of 1930, as amended, liquidated damages in an amount equal to one and one-quarter times the estimated duties on the merchandise not returned shall be demanded. When the demand for return to customs custody is made pursuant to the Federal Seed Act and the regulations thereunder,

an