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19 CFR Part 113 · 9 questions

19 CFR 113.13 — Amount of bond.

Past customs broker license exam questions whose answer rests on 19 CFR 113.13. Drawn from 7 released sittings, April 2018 through October 2023. Every question below is a real released question with the answer CBP credited, the authority it rests on, and an explanation of why that answer is right.

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April 2018, Q17. If CBP believes that acceptance of an antidumping entry secured by a continuous bond would place the revenue in jeopardy or otherwise hamper the enforcement of applicable laws or regulations, CBP shall require additional security pursuant to _______________.

  1. A19 CFR 151.65
  2. B19 CFR 113.13(d)
  3. C19 CFR 152.101(3)
  4. D19 CFR 351.203(a)
  5. E19 CFR 351.205(b)(1)
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.13(d)

The correct answer is B because 19 CFR 113.13(d) explicitly states that CBP may require additional security if accepting a transaction secured by a continuous bond would jeopardize revenue or hinder enforcement of laws, directly aligning with the question’s scenario. Other options, such as 19 CFR 151.65 (entry procedures), 19 CFR 152.101(3) (bond requirements for specific transactions), and 19 CFR 351.203(a)/351.205(b)(1) (antidumping duty rules), address unrelated matters like entry processes, bond sufficiency, or duty calculations, not the specific authority for requiring additional security due to revenue jeopardy.

April 2019, Q38. In reference to Single Entry Bonds, choose the statement below that is TRUE.

  1. AThe termination date of a single entry bond is determined at the time of the submission of the bond.
  2. BA single entry bond may be used only for merchandise moving in bond from another port.
  3. CAs a general rule, the bond limit of liability on a single entry bond is 25% of the value of the merchandise.
  4. DThere is a minimum limit of liability of $100 on a single entry bond, except when the law or regulation expressly provides that a lesser amount may be taken.
  5. EA single entry bond should have an effective date that is 10 working days after release of the merchandise covered by the bond.
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.13(a)

The correct answer is D because 19 CFR 113.13(a) explicitly states that the minimum amount of any CBP bond must not be less than $100, except when the law or regulation expressly provides otherwise. This directly supports option D. Option A is incorrect because the termination date of a single entry bond is not addressed in the cited authority. Option B is incorrect because the text does not restrict single entry bonds to merchandise moving from another port. Option C is incorrect because the cited authority does not mention a 25% bond limit; it only specifies a minimum of $100. Option E is incorrect because the effective date of a bond is not discussed in the cited authority.

April 2025, Q41. If CBP determines a bond is inadequate, how many days does the principal have from the date of notification to remedy the deficiency?

  1. A15 days
  2. B30 days
  3. C60 days
  4. D90 days
Show the answer and explanation
Correct answer: A  · Authority: 19 CFR 113.13(c)

The correct answer is A) 15 days because 19 CFR 113.13(c) explicitly states that the principal has 15 days from the date of notification to remedy a bond deficiency. Options B, C, and D are not supported by the cited authority, which does not mention longer periods for remediation. The rule is strictly tied to the 15-day window outlined in the text.

October 2018, Q30. Which scenario regarding Customs Bond processing timeframes is NOT correct?

  1. AA continuous bond, and any associated application, or rider, may be filed up to 60 days prior to the effective date requested for the continuous bond or rider.
  2. BA written request by a principal or co-principal to terminate a bond must be mailed, faxed, or emailed to the Revenue Division or, in the case of a bond relating to repayment of erroneous drawback payment, to the drawback office where the bond was approved. The termination will take effect on the date requested if that date is at least 10 business days after the date CBP receives the request.
  3. CCorporate surety powers of attorney will continue in force and effect until revoked. Any surety desiring that a designated agent or attorney be divested of a power of attorney must execute a revocation on CBP Form 5297. The revocation will take effect on the close of business on the date requested provided the corporate surety power of attorney is received 5 days before the date requested; otherwise the revocation will be effective at the close of business 5 days after the request is received at the port office.
  4. DAny decision not to accept a given surety's bond shall remain in effect for a minimum of five days or until all outstanding delinquencies are resolved, whichever is later.
  5. ECBP will periodically review each bond on file to determine whether the bond is adequate to protect the revenue and ensure compliance with applicable law and regulations. If CBP determines that a bond is inadequate, the principal and surety will be promptly notified in writing. The principal will have 30 days from the date of notification to remedy the deficiency.
Show the answer and explanation
Correct answer: E  · Authority: 19 CFR 113.13(c)

The correct answer is E because 19 CFR 113.13(c) specifies that the principal has 15 days, not 30, to remedy a bond deficiency after written notification. The other options align with the cited authority: A references permissible early filing of continuous bonds, B and C describe proper procedures for termination and revocation with specified timeframes, and D outlines the minimum five-day review period for rejecting a surety’s bond. Option E incorrectly extends the 15-day period to 30 days, which is not supported by the text.

October 2020 (AM), Q34. Which of the following is NOT considered a guideline for CBP in determining the sufficient amount of bond?

  1. AThe prior record of the principal in timely payment of duties, taxes, and charges
  2. BThe value and nature of the merchandise involved
  3. CThe degree and type of supervision CBP will exercise over the transaction
  4. DThe number of years the principal has been doing business with CBP
  5. EThe prior record of the principal in honoring bond commitments such as liquidated damages
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.13(b)

The correct answer is D because 19 CFR 113.13(b) explicitly lists factors CBP considers, such as the principal’s payment history (A), merchandise value (B), supervision type (C), and compliance with bond commitments (E), but does not mention the number of years the principal has done business with CBP. The regulation focuses on performance-based criteria (e.g., prior compliance, transaction specifics) rather than tenure. The other options align with the cited guidelines, while D is not referenced in the text.

October 2020 (AM), Q35. Customs has determined that the principal’s continuous bond is inadequate. Customs has notified the principal and surety in writing. How many days from the date of notification will the principal have to remedy the deficiency?

  1. A10 days
  2. B15 days
  3. C30 days
  4. D60 days
  5. E90 days
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.13(c)

The correct answer is B) 15 days because 19 CFR 113.13(c) explicitly states that the principal has 15 days from the date of notification to remedy a bond deficiency. The other options are not mentioned in the cited text. While 19 CFR 113.13(a) and (b) discuss bond amounts and review criteria, they do not specify timeframes for remedying deficiencies. The 15-day period is the only timeframe directly stated in the regulation for this scenario.

October 2022, Q4. A bond principal receives written notice from Customs and Border Protection (CBP) that the bond amount is inadequate. How many days does the principal have to remedy the deficiency?

  1. A10 days from the date the principal received notification.
  2. B10 days from the date of the bond’s anniversary date.
  3. C15 days from the date of notification.
  4. D30 days from the date of filing of the principal’s last entry.
  5. E30 days from the date of notification.
Show the answer and explanation
Correct answer: C  · Authority: 19 CFR 113.13(c)

The correct answer is C because 19 CFR 113.13(c) explicitly states that the principal has 15 days from the date of notification to remedy the deficiency. Options A and E are incorrect because they reference 10 or 30 days, which are not mentioned in the cited text. Options B and D are irrelevant as they refer to anniversary dates or the last entry filing date, which are not tied to the remedy period outlined in the regulation.

October 2023, Q19. Using the formula (Previous 12 months ((duties+taxes+fees) multiplied by 10 percent) rounded up by increments of $10,000 up to $100,000 and then by increments of $100,000 with a minimum of $50,000), what is the minimum bond amount in the following scenario? A footwear importer is establishing a new continuous bond. The importer imported a total value of $9,412,039.00 during the prior 12 months. The importer's expectation is that it will have a steady increase of 10 percent in import value in each of the next five (5) years, which will result in an increase in duties and taxes and fees paid. The importer paid $1,120,032.64 in duty for the previous 12 months and $44,368.35 in taxes and fees over the same time period.

  1. A$50,000.00
  2. B$112,000.00
  3. C$120,000.00
  4. D$200,000.00
Show the answer and explanation
Correct answer: D  · Authority: 19 CFR 113.13 ACE BRPD Chapter 3

The minimum bond amount is calculated by summing the duties ($1,120,032.64) and taxes/fees ($44,368.35), totaling $1,164,301.00. Applying the 10% formula yields $116,430.10. According to 19 CFR 113.13, amounts above $100,000 are rounded up in increments of $100,000, resulting in $200,000. The minimum threshold of $50,000 is irrelevant here because the calculated amount exceeds it. Option C ($120,000) incorrectly assumes $10,000 increments beyond $100,000, but the rule explicitly states $100,000 increments for amounts over $100,000. Options A and B fail to account for taxes and fees or misapply the rounding increments.

October 2023, Q20. Upon periodic review of bond sufficiency, if CBP determines that a bond is inadequate and notifies the principal and surety in writing on April 26, 2023, what is the last day upon which the deficiency must be remedied or the principal faces additional consequences?

  1. AMay 3, 2023
  2. BMay 11, 2023
  3. CMay 17, 2023
  4. DMay 26, 2023
Show the answer and explanation
Correct answer: B  · Authority: 19 CFR 113.13(c)

The correct answer is B because 19 CFR 113.13(c) explicitly states the principal has 15 days from the date of written notification to remedy a bond deficiency. April 26 plus 15 days lands on May 11. Option A (May 3) incorrectly assumes a 7-day period, which is not supported by the cited authority. Option C (May 17) miscalculates the 15-day period by adding 21 days instead of 15. Option D (May 26) reflects a 30-day period, which is irrelevant to the rule in 19 CFR 113.13(c).

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