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
CBP's cited authority
§ 19CFR113.38(b)
Answer and citations as published in CBP's official answer key for the April 2019 examination.
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