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Bonds

April 2018 — Question 59

A principal is permitted to file drawback claims under the exporter's summary procedure and the principal’s claims are paid prior to final determination. The bond for that principle must include an agreement that contains all of the following conditions except:

Why this answer

Under 19 CFR 113.65 as in effect for this sitting, the bond of a principal paid drawback under the exporter's summary procedure before final determination must contain an agreement that the principal is entitled to the drawback claimed, correctly described the exported articles, correctly stated the facts of exportation, will pay any charges due CBP, and, jointly and severally with the surety, will refund on demand any money erroneously paid. An undertaking to provide proof of export upon request is not among the enumerated conditions, so B is the exception. The other options tempt because each restates one of the actual conditions almost verbatim. Watch for: Assuming a proof-of-export undertaking must be a bond condition because export documentation is central to drawback.

Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.

CBP's cited authority

§ 19 CFR 113.65

Answer and citations as published in CBP's official answer key for the April 2018 examination.

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