Textbook chapter 1
Bond Claims and Liquidated Damages
Answer first
Trace a breached bond condition to the correct damages provision and separate the demand, payment, petition, and mitigation stages. A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic.
Rule breakdown
Controlling rule for Bond Claims and Liquidated Damages
19 CFR § 113.62 ↗The result must be derived from the cited legal elements rather than from a label, commercial expectation, or memorized shortcut. A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic. Apply every stated condition to the documented facts and stop if an essential condition cannot be proved.
Evidence route for Bond Claims and Liquidated Damages
19 CFR § 113.62; 19 CFR §§ 113.51–113.52; 19 CFR Part 172 ↗Use the official source in the order required by the issue and record both the rule and the fact that satisfies it. The assigned lookup is: In § 113.62, compare the payment, document-production, and redelivery conditions. For each, record the triggering failure, the stated damages measure, any timing language, and the Part 172 path for requesting relief. Follow this source route: Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route. A technically accepted filing or a completed reading is not itself proof that the legal outcome is correct.
Decision path
- 1
Set the gate for Bond Claims and Liquidated Damages
Trace a breached bond condition to the correct damages provision and separate the demand, payment, petition, and mitigation stages. Identify the legally significant party, merchandise, event, date, value, status, and document before selecting a rule or performing a calculation.
- 2
Verify 19 CFR § 113.62
Open 19 CFR § 113.62, complete the chapter lookup task, and preserve the exact subsection, table, form, or agency guide used. Follow Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route rather than jumping directly to a remembered result.
- 3
Test the boundary of Bond Claims and Liquidated Damages
Apply each controlling element to the documented facts, calculate only after eligibility is established, and compare the result with the worked example conclusion: Begin with § 113.62(d)'s redelivery condition. Under the stated ordinary-case assumption, $30,000 is the worked-example damages measure, but the precise merchandise category, demand validity, bond limit, and any special formula control the real result. Record any unresolved fact instead of converting uncertainty into a pass or mastery claim.
Worked example
Scenario: Merchandise with a $30,000 value was released conditionally under a basic importation bond. CBP issues a valid demand for redelivery within the applicable period, but the principal does not redeliver. Assume no special three-times-value provision applies. What is the first damages rule to research?
- 1.Confirm that the bond is the § 113.62 basic importation and entry bond and that the redelivery demand was valid and timely.
- 2.Locate § 113.62(d) and distinguish ordinary redelivery damages from special restricted-merchandise or other stated formulas.
- 3.Use the $30,000 value as the ordinary worked-example measure under the stated assumption, then verify the bond limit and any applicable special rule before finalizing a claim.
- 4.Boundary check: change one decisive fact identified by “In § 113.62, compare the payment, document-production, and redelivery conditions. For each, record the triggering failure, the stated damages measure, any timing language, and the Part 172 path for requesting relief.” and explain whether the result changes under 19 CFR § 113.62; 19 CFR §§ 113.51–113.52; 19 CFR Part 172.
Conclusion: Begin with § 113.62(d)'s redelivery condition. Under the stated ordinary-case assumption, $30,000 is the worked-example damages measure, but the precise merchandise category, demand validity, bond limit, and any special formula control the real result.
Common traps and corrections
× Calling every bond breach an unpaid-duty claim without identifying the exact condition.
✓ The shortcut “Calling every bond breach an unpaid-duty claim without identifying the exact condition.” skips a controlling distinction in Bond Claims and Liquidated Damages. Return to 19 CFR § 113.62, follow Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route, and test the decisive fact against this boundary: A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic. Do not infer eligibility, release, or mastery from the shortcut.
× Ignoring whether a redelivery demand was issued within the applicable regulatory period.
✓ The shortcut “Ignoring whether a redelivery demand was issued within the applicable regulatory period.” skips a controlling distinction in Bond Claims and Liquidated Damages. Return to 19 CFR § 113.62, follow Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route, and test the decisive fact against this boundary: A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic. Do not infer eligibility, release, or mastery from the shortcut.
× Applying an ordinary value measure where § 113.62 states a special or multiple-value formula.
✓ The shortcut “Applying an ordinary value measure where § 113.62 states a special or multiple-value formula.” skips a controlling distinction in Bond Claims and Liquidated Damages. Return to 19 CFR § 113.62, follow Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route, and test the decisive fact against this boundary: A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic. Do not infer eligibility, release, or mastery from the shortcut.
× Assuming a Part 172 petition automatically suspends, cancels, or mitigates the claim.
✓ The shortcut “Assuming a Part 172 petition automatically suspends, cancels, or mitigates the claim.” skips a controlling distinction in Bond Claims and Liquidated Damages. Return to 19 CFR § 113.62, follow Bond activity → exact § 113.62 condition → demand and damages measure → Part 172 petition route, and test the decisive fact against this boundary: A bond claim begins with the exact breached condition, not with a generic penalty label. Under the basic importation and entry bond, different failures—payment, document production, redelivery, agreement to redeliver, and others—have different consequences; a principal or surety may seek relief under the applicable Part 172 procedure, but mitigation is not automatic. Do not infer eligibility, release, or mastery from the shortcut.
Frequently asked questions
Which fact controls first for Bond Claims and Liquidated Damages?
Begin with the chapter objective and the legally controlling facts, not with the desired commercial result. Trace a breached bond condition to the correct damages provision and separate the demand, payment, petition, and mitigation stages. Then use 19 CFR § 113.62 and the remaining cited sources to test every required element before calculating or filing.
Where should I verify Bond Claims and Liquidated Damages for the exam and live work?
For the October 28, 2026 CBLE, use the designated exam source card and pinpoint 19 CFR § 113.62. For live work, separately verify the dated current source cards for this chapter as of the transaction date; a current statute, eCFR, HTSUS, recordation, or agency guide does not silently amend the exam edition.
Official sources and editions
- CBP October 28, 2026 CBLE reference-material notice: CBP-designated reference set for the October 2026 license examination ↗
Exam-edition layer: 2026 HTSUS Basic Edition, 2025 Annual Title 19 CFR, and the CBP materials expressly designated for this sitting.
Last reviewed: 2026-08-19
- 19 CFR § 113.62: Exam-edition source: 19 CFR § 113.62 ↗
Exam-edition layer: Current legal baseline; confirm the edition designated for the exam sitting. Reviewed 2026-08-19; verify current law separately for live work.
Last reviewed: 2026-08-19
- 19 CFR §§ 113.51–113.52: Exam-edition source: 19 CFR §§ 113.51–113.52 ↗
Exam-edition layer: Current legal baseline; confirm the edition designated for the exam sitting. Reviewed 2026-08-19; verify current law separately for live work.
Last reviewed: 2026-08-19
- 19 CFR Part 172: Exam-edition source: 19 CFR Part 172 ↗
Exam-edition layer: Current legal baseline; confirm the edition designated for the exam sitting. Reviewed 2026-08-19; verify current law separately for live work.
Last reviewed: 2026-08-19