These bonds are given in varying penalties to insure the return to the Government for re-exportation or destruction of impure teas, unwholesome food products, etc., tentatively delivered to the importer pending the official examination of retained samples of the importations as to its purity, wholesomeness and freedom from infectious diseases, etc.

Warehouse Bond

SEC. 7. If the imported merchandise is to be warehoused, a bond to secure the payment of duties to the Government is required under Section 2962, Revised Statutes (Chapter XIV, Section 2). This bond is taken in an amount equal to double the estimated duties.

Common Carrier Bond

SEC. 8. Common carriers engaged in the transportation of imported merchandise in bond from one port to another in accordance with the provisions of Sections 3000, 3001, 3005 of the Revised Statutes and the Immediate Transportation Act of June 10, 1880, are required to file a bond for the faithful performance of that duty. (Chapter XVI, Section 1, and Chapter XVI, Section 5.)

These bonds are given for a lump sum, and run indefinitely. The conditions and penalties are prescribed under Regulations of the Secretary of the Treasury. (Chapter XVI, Section 6.)

Warehouse and Exportation Bond

SEC. 9. This bond is given on the withdrawal of merchandise from bonded warehouse for exportation within three years from date of importation. (Section 2971, R. S.) The condition of this bond is

that the merchandise be landed abroad and that a foreign landing certificate to that effect be produced. The penalty prescribed is in an amount equal to double the estimated duties. (Chapter XIV, Section 9.)

Manufacturing Warehouse Bond

SEC. 10. This is a general bond given in a lump sum pursuant to regulations prescribed by the Secretary of the Treasury to insure the proper accounting and exportation of merchandise manufactured in bond wholly or in part from imported materials. (Chapter XVIII, Section 6.)

Bond to Produce Foreign Landing Certificate

SEC. 11. This bond is given on the withdrawal for export of goods manufactured in bonded manufacturing warehouses. (Chapter XVIII, Section 6.) Also on the exportation, with the benefit of drawback of goods manufactured, not under bond, from imported materials, wholly or in part, under the drawback provisions of Paragraph O of Section III of the Tariff Act of October 3, 1913 (Chapter. XX, Section 1); also on the exportation from bonded warehouse of merchandise on which duties have or have not been paid. (Chapter XV, Sections 4 and 5.)

Bonds--By Whom Given

SEC. 12. Customs bonds may be given by the person, partnership or corporation in interest, or by a duly authorized attorney acting under proper power of attorney.

Sureties on Bonds

SEC. 13. Persons, partnerships and corporations other than those appearing as principals on the bond may qualify as sureties, provided they are both residents and citizens of the United States.

SEC. 14.

Cancellation of Bonds

Customs Bonds will be cancelled:

First. Upon specific performance of the conditions of the bond.

Second. On application to the Secretary of the Treasury where it is satisfactorily shown that after due and diligent effort on the part of the principal he has been unable to comply with the conditions thereof; provided, however, that it shall appear that full duties have been paid and that the interests of the Government have been fully safeguarded.

Under this category may be mentioned bonds to produce certified consular invoices and bonds to produce foreign landing certificates. (Chapter XIX, Sections 2 and 11.)

Extension of Bonds

SEC. 15. Where the time for which the bond may be given has not been limited by statute, it is within the discretion of the Secretary of the Treasury to grant an extension.

Under this category may be mentioned bonds to produce certified consular invoices; bonds to pro duce foreign landing certificates referred to in the preceding section, and the usual exhibition bonds given under Paragraphs 582 and 653 of the Tariff Act of October 3, 1913.

Bonds given for a fixed period limited by law cannot be extended, and the liability thereunder accrues. Among this class may be mentioned the six months animal exhibit bond given under Paragraph 398 of the tariff, and the six months repair and tourist bonds provided for under Paragraph J. Subsection 4 of Section IV of the Tariff Act of October 3, 1913.

Miscellaneous Customs Bonds

SEC. 16. In addition to the bonds referred to in the preceding sections of this chapter, various bonds are provided for under regulations of the Secretary of the Treasury in connection with various transactions growing out of the entry and withdrawal of imported merchandise.

These bonds are subject to the general rules hereinbefore referred to.

CHAPTER XX

MANUFACTURE FOR EXPORT NOT UNDER BOND

Manufacture With the Benefit of Drawback

SEC. 1. Manufacture for export not under bond is governed by Paragraph O of Section III of the Act of October 3, 1913, which provides:

"That upon the exportation of articles manufactured or produced in the United States by the use of imported merchandise or materials upon which customs duties have been paid, the full amount of such duties paid upon the quantity of materials used in the manufacture or production of the exported product shall be refunded as drawback, less 1 per centum of such duties: Provided, That where a principal product and a by-product result from the manipulation of imported material and only the byproduct is exported, the proportion of the drawback distributed to such by-product shall not exceed the duty assessable under this Act on a similar by-product of foreign origin if imported into the United States. Where no duty is assessable upon the importation of a corresponding by-product, no drawback shall be payable on such by-product produced from the imported material; if, however, the principal product is exported, then on the exportation thereof there shall be refunded as drawback the whole of the duty paid on the imported material used in the production of both the principal and the by-product, less 1 per cent., as hereinbefore provided: Provided further, That when the articles exported are manufactured in part from domestic materials, the imported materials or the parts of the articles manufactured from such materials, shall so appear in the completed articles that the quantity or measure thereof may be ascertained: And provided further, That the drawback on any article allowed under existing law shall be continued at the rate herein provided. That the imported materials used in the manufacture or production of articles entitled to drawback of customs duties when exported shall, in all cases where drawback of duties paid on such materials is claimed, be identified, the quantity of such materials used and the amount of duties paid thereon shall be ascertained, the facts of the manufacture or production of such articles in the United States and their exportation therefrom shall be determined, and the drawback due thereon shall be paid to the manu