feree of the right to withdraw merchandise from bonded warehouse is entitled to receive the refund under section 557(b), Tariff Act of 1930, as amended, or an owner's declaration has been filed in accordance with section 485 (d), Tariff Act of 1930, or a surety submits evidence of payment to Customs, upon default of the principal, of amounts previously determined to be due on the same entry or transaction. The certification of a refund for payment to a nominal consignee may be made prior to the expiration of the 90-day period within which an owner's declaration may be filed as prescribed in section 485 (d) of the tariff act, provided the nominal consignee waives in writing his right to file such declaration. If an owner's declaration has been duly filed, the refund shall be certified for payment to the actual owner who executed the declaration, except that, irrespective of whether an owner's declaration has been filed, refunds shall be certified for payment to a transferee provided for in section 557(b), Tariff Act of 1930, as amended, if the moneys with respect to which the refund was allowed were paid by such transferee. If a surety submits evidence of payment to Customs, upon default of the principal, for an amount previously determined to be due on an entry or transaction the refund shall be certified to that surety up to the amount paid by it or shall be applied to other obligations of the surety.

(c) If the nominal consignee has become bankrupt, refunds of duties or internal revenue taxes on merchandise entered in the name of such nominal consignee for the account of the actual owner shall be withheld from payment pending the receipt of a claim therefor and the establishment of rights thereto, unless the declaration of the actual owner has been filed with the collector under section 485 (d), Tariff Act of 1930.

(d) The authority of collectors of customs to make refunds pursuant to paragraphs (a), (b), and (c) of this section of excessive deposits of alcohol or tobacco taxes, as defined in section 6423 (e) (1), Internal Revenue Code of 1954 (26 U.S.C. 6423(e) (1)), is confined

to cases of the types which are excepted from the application of section 6423, Internal Revenue Code of 1954 (26 U.S.C. 6423). The excepted types of cases and, therefore, the types in which the collector of customs is authorized to make refunds of such taxes are those in which:

(1) The tax was paid or collected on an article imported for the personal or household use of the importer;

(2) The refund is made pursuant to provisions of laws and regulations for drawback;

(3) The tax was paid or collected on an imported article withdrawn from the market, returned to bond, or lost or destroyed, when any law expressly provides for refund in such case;

(4) The tax was paid or collected on an imported article which has been lost, where a suit or proceeding was instituted before June 15, 1957;

(5) The refund of tax is pursuant to a claim based solely on errors of computation of the quantity of the imported article, or on mathematical errors in computation of the tax due;

(6) The tax was paid or collected on an imported article sized and forfeited, or destroyed, as contraband;

(7) The tax was paid or collected on an imported article refused admission to customs territory and exported or destroyed in acordance with section 558, Tariff Act of 1930, as amended;

(8) The refund of tax is pursuant to a reliquidation of an entry under section 520 (c) (1), Tariff Act of 1930, as amended, and does not involve a rate of tax applicable to an imported article; or

(9) The tax was paid or collected on a greater quantity of imported articles than that actually imported and the fact of the deficiency is established to the collector of customs' satisfaction before liquidation of the entry becomes final.

(e) In any instance in which a refund of an alcohol or tobacco tax is not of a type covered by paragraph (d) of this section the following procedure shall apply:

(1) The collector shall issue a notice of refund for duty only and shall place

or by any corresponding provision of prior internal revenue laws, and

(B) In the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax." (26 U.S.C. 6423 (e) (1))

the following statement on the notice of refund issued for duty: "Claim or refund of any overpayment of internalrevenue tax on this entry must be executed and filed with the assistant regional commissioner (alcohol, tobacco and firearms) of the internal revenue region in which the claimant is located, in accordance with internal revenue regulations (Title 26 of the Code of Federal Regulations)." On request of the claimant, the collector shall issue a certified statement on customs letterhead identifying the entry, showing the amount of internal revenue tax deposited with respect to each entry for which a claim on internal revenue Form 843 is to be made, and showing the date of issuance of the notice of refund of duty.

(2) The claim shall be executed on internal revenue Form 843 (original only) which may be procured from offices of the Internal Revenue Service and shall be filed with the assistant regional commissioner (alcohol, tobacco and firearms) of the internal revenue region in which the claimant is located. The certified statement shall be attached to and filed in support of such claim which may include refunds under more than one entry but shall be limited to refunds under entries filed in the same customs collection district and the same internal revenue region. The data to be shown on the claim shall be as prescribed in internal revenue regulations, with the exception that any data on the certified statement also required to be shown in the claim need not be restated in the claim.

(3) The date of allowance of refund or credit in respect of such tax for the purposes of section 6407, Internal Revenue Code of 1954 (26 U.S.C. 6407) shall be that date on which a claim is perfected and the refund is authorized for scheduling under the applicable internal revenue regulations.

(72 Stat. 9; 26 U.S.C. 6423) [28 F.R. 14808, Dec. 31, 1963, as amended by T.D. 67-33, 32 F.R. 494, Jan. 18, 1967; T.D. 71-289, 36 F.R. 23150, Dec. 4, 1971]

tractors for articles furnished or services performed, and claims for payments due deceased importers or owners of merchandise on account of refunds of excessive duties, or taxes, or for payment of drawback, etc. Claims for payment of Government checks drawn on the Treasurer of the United States or other authorized Government depositary to the order of such public creditors, which cannot be paid because of the death of the payee, should be stated on standard Form 1055-Revised. Information should be furnished regarding the disposition of these checks in case they are not in possession of the claimant, otherwise they should accompany the claim.

(b) No form is prescribed for use of a guardian or committee of an estate of an incompetent in making claim for sums due from the United States. Such guardian or committee may submit in letter form, over his address and signature, an application for amounts due an estate of an incompetent, setting forth the incompetent's connection with the Bureau of Customs. This application should be supported by a short certificate of the court showing the appointment and qualification of the claimant as guardian or committee. In case the total amount due the estate of the incompetent is small, and no guardian or committee of the estate has been or will be appointed, the application may be submitted by the person or persons having care or custody of the incompetent, or by close relatives who will hold any amount found due for the use and benefit of the incompetent. Applications for recurring payments need not be accompanied by an additional certificate of the court, but should be supported by a statement that the appointment is still in full force and effect. All Government checks drawn on the Treasurer of the United States or other authorized Government depository to the order of individuals which cannot be paid because of incompetency of the payee should accompany the claim, otherwise an explanation should be given as to the disposition of the check.

(c) Claims for payments due deceased or incompetent contractors should be submitted to the customs field officer at whose order the articles were furnished or services performed. Claims for refunds of excessive duties, or taxes, or for payment of drawback and other similar claims due deceased or incompetent public creditors shall be submitted to the appropriate regional commissioner of

customs. The customs field officer may grant necessary assistance to claimants to insure proper execution of standard Form 1055-Revised in the case of deceased public creditors, and in the case of incompetent public creditors to insure submission of the application in proper form. The regional commissioner shall settle the claim unless there is a doubtful question of fact or law, in which case the claim shall be forwarded to the Assistant Director (Accounting), Division of Financial Management, Bureau of Customs, with originals or certified copies of any necessary documents and with an appropriate report and recommendation. [28 F.R. 14808, Dec. 31, 1963, as amended by T.D. 68-142, 33 F.R. 8225, June 1, 1968] § 24.71

Claims for personal injury or damages to or loss of privately owned property.

Procedures for the settlement of claims arising from actions of Treasury Department employees are published in 31 CFR Part 3.

§ 24.72 Claims; set-off.

When an importer of record or other party has a judgment or other claim allowed by legal authority against the United States, and he is indebted to the United States, either as prinicpal or surety, for an amount which is legally fixed and undisputed, the collector shall set off so much of the judgment or other claim as will equal the amount of the debt due the Government.

[T.D. 56388, 30 F.R. 4671, Apr. 10, 1965]

§ 24.73 Miscellaneous claims.

Every claim of whatever nature arising under the customs laws which is not otherwise provided for shall be forwarded directly to the Bureau, together with all supporting documents and information available.

1"(a) 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 collectors of customs 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) Whenever a bond is required or authorized by 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 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 or such bond, without regard to any general provision of law.

(Footnote continued on following page.)

provided for in Part 33 of this chapter are guaranteed by separate undertakings with the Government of the United States and, accordingly, are acceptable in appropriate cases without posting of further security under customs statutes or regulations requiring bonds.

[T.D. 69-146, 34 F.R. 9801, June 25, 1969]

§ 25.3 Bonds approved by the Bureau; form and execution.

(a) The following bonds, after execution by the principals and sureties shall be forwarded to the Bureau for approval:

(1) Proprietor's manufacturing warehouse bond, class 6, customs Form 3583, in an amount to be recommended by the collector, but not less than $5,000 on each building or area and not more than $50,000 on all buildings or areas, unless the Bureau believes additional security necessary. Buildings connected by loading platforms or sheds shall be considered as separate buildings. It shall

“(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) 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 penality or upon such other terms and conditions as he may deem sufficient.

"(d) 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 bonds. • *." (Tariff Act of 1930, sec. 623, as amended; 19 U.S.C. 1623)

be prepared in duplicate and after execution by the principal and surety, delivered to the collector of customs to be forwarded to the Bureau with his recommendation, together with all reports, documents, and drawings filed in connection therewith.

(2) Cartage contract bond, customs Form 3083, in an amount to be recommended in each case by the collector. The cartage contract and bond shall be executed in quadruplicate.

(3) Blanket smelting and refining bond in the form prescribed by T.D. 50267, as amended by T.D. 52403, in an amount to be recommended by the collector and fixed by the Bureau.

NOTE: The general bond for smelting and refining warehouses was revised by a document appearing at 37 F.R. 18724, Sept. 15, 1972.

(b) A blanket term bond shall be accompanied by a sufficient number of copies for transmittal, through the Bureau, to each port at which the principal seeks to conduct business.

§ 25.4

Bonds approved by collectors; form and execution.

(a) The following bonds shall be approved by the collector and remain on file in his office, except customs Form 4615, which shall be transmitted to the United States attorney:

(1) Bonds for the carriage of merchandise:

(i) Carrier's bond, customs Form 3587, for common carriers, contract carriers, and freight forwarders, in an amount to be determined by the district director of customs.

(ii) Private carrier's bond, customs Form 3588, in an amount to be determined by the district director of customs.

(2) Propietor's warehouse bond, customs Form 3581, in the amount of $5,000 on each building or area covered, but not to exceed $50,000 on all buildings or areas unless the collector believes additional security necessary. Buildings connected by loading platforms or sheds shall be considered as separate buildings. All reports, documents, and drawings submitted in connection with the bonding of the warehouse shall be filed with the bond.

(3) Bond of customs cartman or lighterman, customs Form 3855, in such amount as the collector deems, necessary, but not less than $5,000, and not more than $50,000, unless the collector

deems the latter amount insufficient and reports the matter to the Bureau for action in which case the bond shall be in the amount specified by the Bureau.

(4) Bond of claimant of seized goods for costs of judicial condemnation, customs Form 4615, in the amount of $250.

(5) Bond to produce manifest and shipper's export declarations for goods exported to Canada, customs Form 7303, in the amount of $1,000.

(6) Term bond to produce manifest and shipper's export declarations for goods exported to Canada, in such amount as the collector may deem necessary.

(7) Special single entry carpet wool and camel's hair bond, customs Form 7547, in an amount equal to the value of the wool or hair involved plus double the estimated duty, as determined at the time of entry.

(8) Special term carpet wool and camel's hair bond, customs Form 7549, in the amount of $10,000, or such larger amount as the collector may deem necessary.

(9) Immediate delivery and consumption entry bond (single entry), customs Form 7551, in an amount equal to the value of the articles, as set forth in the entry, plus the estimated duty 2 (including any taxes required by law to be treated as duties) and the estimated amount of any other taxes imposed upon or by reason of importation, as determined at the time of entry except:

(i) When the merchandise involved will remain in customs custody until (a) examination has been completed, (b) it is found to be truly and correctly invoiced, and (c) it is determined that its release is not precluded by law or regulation and it is entitled to admission into the commerce of the United States, the bond shall be in an amount equal to the aggregate sum of double the estimated amount of ordinary customs duty on the merchandise (including any taxes required by law to be treated as duties) plus the estimated amount of any other tax or taxes on the merchandise collectible by the collector.

(ii) When the merchandise appears to the satisfaction of the collector to be

2 When the bond is to cover merchandise granted a conditional right of entry at a reduced rate of duty, the amount of the bond shall be fixed on the basis of the maximum rate of duty prescribed by the law.

unconditionally free of duty and not prohibited from admission into the commerce of the United States, the amount of the bond may be in such lesser amount (disregarding the value of the articles) as, in the opinion of the collector, will be sufficient to accomplish the purpose for which the bond is given, but in no case less than $100.

(iii) When the bond relates to an application for immediate delivery prior to entry, the amount shall be fixed as above set forth on the basis of the information shown in the application.

(10) Immediate delivery and consumption entry bond (term), customs Form 7553, in the amount of $10,000, or such larger amount as the collector may deem necessary. This bond shall be taken to cover only entries to be made at a single port and shall not be modified to cover more than one port. The rules prescribed in subparagraph (9) of this paragraph for determining the amount of the single immediate delivery and consumption entry bond shall be applied in making charges against immediate delivery and consumption entry term bonds.

(11) Warehouse entry bond, customs, Form 7555, in an amount equal to the aggregate sum of double the estimated amount of ordinary customs duty on the merchandise (including any taxes required by law to be treated as duties) plus the estimated amount of any other tax or taxes on the merchandise collecible by the collector of customs.

(12) Single entry bond for exportation, or for transportation, or for transportation and exportation, customs Form 7557, in an amount equal to double the estimated duty.

(13) Term bond for exportation, or for transportation, or for transportation and exportation, customs Form 7559, in the amount of $10,000, or such larger amount as the collector may deem necessary to afford ample security to the revenue.