                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
                     Part V--Enforcement Provisions
 
Sec. 1623. Bonds and other security


(a) Requirement of bond by regulation

    In any case in which bond or other security is not specifically 
required by law, the Secretary of the Treasury may by regulation or 
specific instruction require, or authorize customs officers to require, 
such bonds or other security as he, or they, may deem necessary for the 
protection of the revenue or to assure compliance with any provision of 
law, regulation, or instruction which the Secretary of the Treasury or 
the Customs Service may be authorized to enforce.

(b) Conditions and form of bond

    Whenever a bond is required or authorized by a law, regulation, or 
instruction which the Secretary of the Treasury or the Customs Service 
is authorized to enforce, the Secretary of the Treasury may--
        (1) Except as otherwise specifically provided by law, prescribe 
    the conditions and form of such bond and the manner in which the 
    bond may be filed with or, pursuant to an authorized electronic data 
    interchange system, transmitted to the Customs Service, and fix the 
    amount of penalty thereof, whether for the payment of liquidated 
    damages or of a penal sum: Provided, That when a consolidated bond 
    authorized by paragraph 4 of this subsection is taken, the Secretary 
    of the Treasury may fix the penalty of such bond without regard to 
    any other provision of law, regulation, or instruction.
        (2) Provide for the approval of the sureties on such bond, 
    without regard to any general provision of law.
        (3) Authorize the execution of a term bond the conditions of 
    which shall extend to and cover similar cases of importations over 
    such period of time, not to exceed one year, or such longer period 
    as he may fix when in his opinion special circumstances existing in 
    a particular instance require such longer period.
        (4) Authorize, to the extent that he may deem necessary, the 
    taking of a consolidated bond (single entry or term), in lieu of 
    separate bonds to assure compliance with two or more provisions of 
    law, regulations, or instructions which the Secretary of the 
    Treasury or the Customs Service is authorized to enforce. A 
    consolidated bond taken pursuant to the authority contained in this 
    subsection shall have the same force and effect in respect of every 
    provision of law, regulation, or instruction for the purposes for 
    which it is required as though separate bonds had been taken to 
    assure compliance with each such provision.

(c) Cancellation of bond

    The Secretary of the Treasury may authorize the cancellation of any 
bond provided for in this section, or of any charge that may have been 
made against such bond, in the event of a breach of any condition of the 
bond, upon the payment of such lesser amount or penalty or upon such 
other terms and conditions as he may deem sufficient. In order to assure 
uniform, reasonable, and equitable decisions, the Secretary of the 
Treasury shall publish guidelines establishing standards for setting the 
terms and conditions for cancellation of bonds or charges thereunder.

(d) Validity of bond

    No condition in any bond taken to assure compliance with any law, 
regulation, or instruction which the Secretary of the Treasury or the 
Customs Service is authorized to enforce shall be held invalid on the 
ground that such condition is not specified in the law, regulation, or 
instruction authorizing or requiring the taking of such bond. Any bond 
transmitted to the Customs Service pursuant to an authorized electronic 
data interchange system shall have the same force and effect and be 
binding upon the parties thereto as if such bond were manually executed, 
signed, and filed.

(e) Deposit of money or obligation of United States in lieu of bond

    The Secretary of the Treasury is authorized to permit the deposit of 
money or obligations of the United States, in such amount and upon such 
conditions as he may by regulation prescribe, in lieu of sureties on any 
bond required or authorized by a law, regulation, or instruction which 
the Secretary of the Treasury or the Customs Service is authorized to 
enforce.

(June 17, 1930, ch. 497, title IV, Sec. 623, 46 Stat. 759; June 25, 
1938, ch. 679, Sec. 30, 52 Stat. 1089; Pub. L. 91-271, title III, 
Sec. 301(ii), June 2, 1970, 84 Stat. 291; Pub. L. 100--418, title I, 
Sec. 1904, Aug. 23, 1988, 102 Stat. 1313; Pub. L. 103-182, title VI, 
Sec. 647, Dec. 8, 1993, 107 Stat. 2207.)


                               Amendments

    1993--Subsec. (b)(1). Pub. L. 103-182, Sec. 647(1), inserted ``and 
the manner in which the bond may be filed with or, pursuant to an 
authorized electronic data interchange system, transmitted to the 
Customs Service'' after ``form of such bond''.
    Subsec. (d). Pub. L. 103-182, Sec. 647(2), inserted at end ``Any 
bond transmitted to the Customs Service pursuant to an authorized 
electronic data interchange system shall have the same force and effect 
and be binding upon the parties thereto as if such bond were manually 
executed, signed, and filed.''
    1988--Subsec. (c). Pub. L. 100-418 provided for publication of 
guidelines establishing customs bond cancellation standards.
    1970--Subsec. (a). Pub. L. 91-271 substituted reference to customs 
officers for reference to collectors of customs.
    1938--Act June 25, 1938, amended section generally, among other 
changes adding subsecs. (c) to (e).


                    Effective Date of 1970 Amendment

    For effective date of amendment by Pub. L. 91-271, see section 203 
of Pub. L. 91-271, set out as a note under section 1500 of this title.


                    Effective Date of 1938 Amendment

    Amendment by act June 25, 1938, effective on thirtieth day following 
June 25, 1938, except as otherwise specifically provided, see section 37 
of act June 25, 1938, set out as a note under section 1401 of this 
title.

                          Transfer of Functions

    Functions of all other officers of Department of the Treasury and 
functions of all agencies and employees of such Department transferred, 
with certain exceptions, to Secretary of the Treasury, with power vested 
in him to authorize their performance or performance of any of his 
functions, by any of such officers, agencies, and employees, by Reorg. 
Plan No. 26 of 1950, Secs. 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 
Stat. 1280, 1281, set out in the Appendix to Title 5, Government 
Organization and Employees. Customs Service is under Department of the 
Treasury.
