April 2019 — Question 37
Which statement is TRUE concerning Customs Bonds?
- AThe surety, as well as the port director, remains liable on a terminated bond for obligations incurred prior to termination.
- BContinuous bond applications must be submitted to the Commissioner of Customs.
- CThe principal may list on the bond, trade names and the names of unincorporated divisions of the corporate principal which have a separate and distinct legal status who are authorized to use the bond in their own name.
- DA continuous bond is effective on the effective date identified on CBP Form 368.
- EA surety on a CBP bond, which is in default, may be accepted as surety on other CBP bonds only to the extent that the surety assets are unencumbered by the default.✓ CBP's answer
Why this answer
CBP publishes the key, not the reasoning. Our written explanation of why this answer is right — and which rule decides it — comes with a free account.
Read the explanation — freeNo password. One emailed code.
CBP's cited authority
§ 19CFR113.38(b)
Answer and citations as published in CBP's official answer key for the April 2019 examination.
Reading answers is easy. The exam is 80 of these in 4.5 hours.
Pass rates run 12–30%. Find out in 15 minutes whether you'd clear the 75% line today — free, no signup.