Which statement is TRUE concerning Customs Bonds?
A. The surety, as well as the port director, remains liable on a terminated bond for obligations incurred prior to termination.
B. A 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.
C. The 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.
D. A continuous bond is effective on the effective date identified on CBP Form 368.
E. Continuous bond applications must be submitted to the Commissioner of Customs.
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The Answer is: B
Citation:19 CFR ยง 113.38(b)
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