§ 1530.203 - Bond requirements.

(a) A licensee shall post a performance bond, which meets the requirements of this section, with the Licensing Authority. However, no bond will be required for the quantity of any sugar transferred under license that corresponds to a quantity of sugar that has been exported in sugar containing products prior to the transfer of such sugar and credited to the license in accordance with § 1530.206, provided that the Licensing Authority issues a written waiver of the bond requirement.

(b) A bond may cover transfers made either during the period of time specified in the bond (term bond) or for a specified transfer (single entry bond).

(c) Only the licensee who will use the sugar may be the principal on a bond to cover such sugar to be transferred. The surety or sureties shall be among those listed by the Secretary of the Treasury as acceptable on Federal bonds.

(d) The obligation under the bond shall be made effective as of the date of transfer of the corresponding sugar.

(e) The amount of the bond shall be equal to 20 cents per pound of sugar transferred under the license.

(f) The Licensing Authority will release the obligation under the bond for transferred sugar by 20 cents per pound for the quantity of sugar credited to the license in accordance with § 1530.206, as determined by the Licensing Authority.

(g) If the licensee fails to qualify for a credit to the license within 95 days of the date of export of sugar containing products or the last date on which such products should have been exported, whichever occurs first, in an amount sufficient to offset the charge to the license for corresponding sugar, or if such a credit initially granted is subsequently revoked, payment will be made to the United States of America under the bond of a monetary amount equal to the difference between the Number 11 contract price and the Number 14 contract price, per pound of raw sugar, in effect on the last market day before the date of entry of the sugar or the last marketday before the end of the period during which export was required, whichever difference is greater, times the quantity of refined sugar, converted to raw value, that should have been, but was not, exported in the form of sugar containing products in timely compliance with the requirements of this subpart. In the event no Number 11 contract price or Number 14 contract price is reported by the New York Coffee, Sugar and Cocoa Exchange, for the relevant market day, the Licensing Authority may estimate such price as he or she deems appropriate.

(h) Within 10 business days of the date of issuance of a license, the licensee shall submit to the Licensing Authority a copy of the performance bond.