§ 1530.303 - Bond requirements.

(a) Unless the licensee has posted a performance bond with the U.S. Customs Service which is satisfactory to the Licensing Authority with respect to the requirements of this program, the licensee shall post a performance bond, which meets the requirements of this section, with the Licensing Authority.

(b) A bond may cover entries made either during the period of time specified in the bond (term bond) or for a specified entry (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 imported. 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 entry of the sugar.

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

(f) The appropriate customs official or the Licensing Authority, as appropriate, will release the obligation under the bond by 20 cents per pound for the quantity of sugar used in the production of polyhydric alcohols and credited to the license in accordance with § 1530.306, 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 production of polyhydric alcohols in a quantity sufficient to offset the charge to the license for the imported sugar used for producing such polyhydric alcohols, 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 market day before the end of the period during which production of polyhydric alcohol was required, whichever difference is greater, times the quantity of raw sugar that should have been, but was not, used in the production of polyhydric alcohol 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.