Title 19 Customs Duties
Parts 0 to 140
Revised as of April 1, 2012
Containing a codification of documents of general applicability and future effect
As of April 1, 2012
Published by the Office of the Federal Register National Archives and Records Administration as a Special Edition of the Federal Register
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Table of Contents Page
Explanation ................................................................................................ v
Title 19:
Chapter I—U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury ....................... 3
Finding Aids:
Table of CFR Titles and Chapters ....................................................... 897
Alphabetical List of Agencies Appearing in the CFR ......................... 917
Chapter I Subject Index ...................................................................... 927
List of CFR Sections Affected ............................................................. 1045
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Cite this Code: CFR
To cite the regulations in this volume use title, part and section num- ber. Thus, 19 CFR 0.1 refers to title 19, part 0, section 1.
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Explanation
The Code of Federal Regulations is a codification of the general and permanent rules published in the Federal Register by the Executive departments and agen- cies of the Federal Government. The Code is divided into 50 titles which represent broad areas subject to Federal regulation. Each title is divided into chapters which usually bear the name of the issuing agency. Each chapter is further sub- divided into parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year and issued on a quarterly basis approximately as follows:
Title 1 through Title 16..............................................................as of January 1 Title 17 through Title 27 .................................................................as of April 1 Title 28 through Title 41 ..................................................................as of July 1 Title 42 through Title 50.............................................................as of October 1
The appropriate revision date is printed on the cover of each volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual issues of the Federal Register. These two publications must be used together to deter- mine the latest version of any given rule.
To determine whether a Code volume has been amended since its revision date (in this case, April 1, 2012), consult the ‘‘List of CFR Sections Affected (LSA),’’ which is issued monthly, and the ‘‘Cumulative List of Parts Affected,’’ which appears in the Reader Aids section of the daily Federal Register. These two lists will identify the Federal Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal Reg- ister since the last revision of that volume of the Code. Source citations for the regulations are referred to by volume number and page number of the Federal Register and date of publication. Publication dates and effective dates are usu- ally not the same and care must be exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cut- off date for the Code a note has been inserted to reflect the future effective date. In those instances where a regulation published in the Federal Register states a date certain for expiration, an appropriate note will be inserted following the text.
OMB CONTROL NUMBERS
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Many agencies have begun publishing numerous OMB control numbers as amend- ments to existing regulations in the CFR. These OMB numbers are placed as close as possible to the applicable recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on the cover of each volume are not carried. Code users may find the text of provisions in effect on a given date in the past by using the appropriate numerical list of sections affected. For the period before January 1, 2001, consult either the List of CFR Sections Affected, 1949–1963, 1964–1972, 1973–1985, or 1986–2000, published in eleven separate volumes. For the period beginning January 1, 2001, a ‘‘List of CFR Sections Affected’’ is published at the end of each CFR volume.
‘‘[RESERVED]’’ TERMINOLOGY
The term ‘‘[Reserved]’’ is used as a place holder within the Code of Federal Regulations. An agency may add regulatory information at a ‘‘[Reserved]’’ loca- tion at any time. Occasionally ‘‘[Reserved]’’ is used editorially to indicate that a portion of the CFR was left vacant and not accidentally dropped due to a print- ing or computer error.
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What is a proper incorporation by reference? The Director of the Federal Register will approve an incorporation by reference only when the requirements of 1 CFR part 51 are met. Some of the elements on which approval is based are:
(a) The incorporation will substantially reduce the volume of material pub- lished in the Federal Register.
(b) The matter incorporated is in fact available to the extent necessary to afford fairness and uniformity in the administrative process.
(c) The incorporating document is drafted and submitted for publication in accordance with 1 CFR part 51.
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CFR INDEXES AND TABULAR GUIDES
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The Federal Register Index is issued monthly in cumulative form. This index is based on a consolidation of the ‘‘Contents’’ entries in the daily Federal Reg- ister.
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INQUIRIES
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MICHAEL L. WHITE,
Acting Director,
Office of the Federal Register.
April 1, 2012.
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THIS TITLE
Title 19—CUSTOMS DUTIES is composed of three volumes. The first two volumes, parts 0—140 and parts 141—199 contain the regulations in Chapter I—U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury. The third volume, part 200 to end, contains the regulations in Chapter II—United States International Trade Commission; Chapter III—International Trade Administration, Department of Commerce; and Chapter IV—U.S. Immigra- tion and Customs Enforcement, Department of Homeland Security. The contents of these volumes represent all current regulations issued under this title of the CFR as of April 1, 2012.
A Subject Index to Chapter I—U.S. Customs and Border Protection, Depart- ment of Homeland Security; Department of the Treasury appears in the Finding Aids section of the first two volumes.
For this volume, Jonn V. Lilyea was Chief Editor. The Code of Federal Regula- tions publication program is under the direction of Michael L. White, assisted by Ann Worley.
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Title 19—Customs Duties
(This book contains parts 0 to 140)
Part
CHAPTER I—U.S. Customs and Border Protection, Depart- ment of Homeland Security; Department of the Treasury 3
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CHAPTER I—U.S. CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; DEPARTMENT OF THE TREASURY
EDITORIAL NOTE: Nomenclature changes to chapter I appear at CBP Dec. 07–82, 72 FR 59167, Oct. 19, 2007.
Part Page 0 Transferred or delegated authority ......................... 5 1–3 [Reserved] 4 Vessels in foreign and domestic trades ................... 7 7 Customs relations with insular possessions and
Guantanamo Bay Naval Station .......................... 79 10 Articles conditionally free, subject to a reduced
rate, etc. ............................................................... 84 11 Packing and stamping; marking ............................. 388 12 Special classes of merchandise ................................ 394 18 Transportation in bond and merchandise in transit 452 19 Customs warehouses, container stations and con-
trol of merchandise therein .................................. 470 24 Customs financial and accounting procedure .......... 507 54 Certain importations temporarily free of duty ....... 563 101 General provisions .................................................. 564 102 Rules of origin ......................................................... 577 103 Availability of information ..................................... 638 111 Customs brokers ...................................................... 660 112 Carriers, cartmen, and lightermen .......................... 683 113 Customs bonds ......................................................... 692 114 Carnets .................................................................... 720 115 Cargo container and road vehicle certification pur-
suant to international customs conventions ....... 724 118 Centralized examination stations ........................... 734 122 Air Commerce regulations ...................................... 739 123 CBP relations with Canada and Mexico .................. 815 125 Cartage and lighterage of merchandise ................... 839 127 General order, unclaimed, and abandoned merchan-
dise ....................................................................... 843 128 Express consignments ............................................. 851 132 Quotas ..................................................................... 855
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19 CFR Ch. I (4–1–12 Edition)
Part Page 133 Trademarks, trade names, and copyrights .............. 863 134 Country of origin marking ...................................... 879 135–140 [Reserved]
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PART 0—TRANSFERRED OR DELEGATED AUTHORITY
Sec. 0.1 Customs revenue function regulations
issued under the authority of the Depart- ments of the Treasury and Homeland Se- curity.
0.2 All other Customs Regulations issued under the authority of the Department of Homeland Security.
APPENDIX TO PART 0—TREASURY DEPARTMENT ORDER NO. 100–16
AUTHORITY: 5 U.S.C. 301, 6 U.S.C. 101 et seq., 19 U.S.C. 66, 19 U.S.C. 1624, 31 U.S.C. 321.
SOURCE: CBP Dec. 03–24, 68 FR 51869, Aug. 28, 2003, unless otherwise noted.
§ 0.1 Customs revenue function regula- tions issued under the authority of the Departments of the Treasury and Homeland Security.
(a) Regulations requiring signatures of Treasury and Homeland Security. (1) By Treasury Department Order No. 100–16, set forth in the appendix to this part, the Secretary of the Treasury has dele- gated to the Secretary of Homeland Se- curity the authority to prescribe all CBP regulations relating to customs revenue functions, except that the Sec- retary of the Treasury retains the sole authority to approve such CBP regula- tions concerning subject matters listed in paragraph 1(a)(i) of the order. Regu- lations for which the Secretary of the Treasury retains the sole authority to approve will be signed by the Secretary of Homeland Security (or his or her DHS delegate), and by the Secretary of the Treasury (or his or her Treasury delegate) to indicate approval.
(2) When a regulation described in paragraph (a)(1) of this section is pub- lished in the FEDERAL REGISTER, the preamble of the document accom- panying the regulation will clearly in- dicate that it is being issued in accord- ance with paragraph (a)(1) of this sec- tion.
(b) Regulations with respect to which the Department of Homeland Security is authorized to sign for the Department of the Treasury. (1) By Treasury Depart- ment Order No. 100–16, set forth in the appendix to this part, the Secretary of the Treasury delegated to the Sec- retary of Homeland Security the au- thority to prescribe and approve regu-
lations relating to customs revenue functions on behalf of the Secretary of the Treasury when the subject matter of the regulations is not listed in para- graph 1(a)(i) of the order. Such regula- tions are the official regulations of both Departments notwithstanding that they are not signed by an official of the Department of the Treasury. These regulations will be signed by the Secretary of Homeland Security (or his or her DHS delegate).
(2) When a regulation described in paragraph (b)(1) of this section is pub- lished in the FEDERAL REGISTER, the preamble of the document accom- panying the regulation will clearly in- dicate that it is being issued in accord- ance with paragraph (b)(1) of this sec- tion.
(c) Sole signature by Secretary of the Treasury. (1) Pursuant to Treasury De- partment Order No. 100–16, set forth in the appendix to this part, the Sec- retary of the Treasury reserves the right to promulgate regulations related to the customs revenue functions. Such regulations are signed by the Secretary of the Treasury (or his or her delegate) after consultation with the Secretary of Homeland Security (or his or her delegate), and are the official regula- tions of both Departments.
(2) When a regulation described in paragraph (c)(1) of this section is pub- lished in the FEDERAL REGISTER, the preamble of the document accom- panying the regulation will clearly in- dicate that the regulation is being issued in accordance with paragraph (c)(1) of this section.
[CBP Dec. 03–24, 68 FR 51869, Aug. 28, 2003, as amended at CBP Dec. 08-25, 73 FR 40724, July 16, 2008]
§ 0.2 All other CBP regulations issued under the authority of the Depart- ment of Homeland Security.
(a) The authority of the Secretary of the Treasury with respect to CBP regu- lations that are not related to customs revenue functions was transferred to the Secretary of Homeland Security pursuant to section 403(1) of the Home- land Security Act of 2002. Such regula- tions are signed by the Secretary of Homeland Security (or his or her dele- gate) and are the official regulations of the Department of Homeland Security.
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19 CFR Ch. I (4–1–12 Edition)Pt. 0, App.
(b) When a regulation described in paragraph (a) of this section is pub- lished in the FEDERAL REGISTER, the preamble accompanying the regulation shall clearly indicate that it is being issued in accordance with paragraph (a) of this section.
[CBP Dec. 03–24, 68 FR 51869, Aug. 28, 2003, as amended at CBP Dec. 08-25, 73 FR 40724, July 16, 2008]
APPENDIX TO 19 CFR PART 0—TREASURY DEPARTMENT ORDER NO. 100–16
Delegation from the Secretary of the Treasury to the Secretary of Homeland Se- curity of general authority over Customs revenue functions vested in the Secretary of the Treasury as set forth in the Homeland Security Act of 2002. Treasury Department, Washington, DC, May 15, 2003.
By virtue of the authority vested in me as the Secretary of the Treasury, including the authority vested by 31 U.S.C. 321(b) and sec- tion 412 of the Homeland Security Act of 2002 (Pub. L. 107–296) (Act), it is hereby ordered:
1. Consistent with the transfer of the func- tions, personnel, assets, and liabilities of the United States Customs Service to the De- partment of Homeland Security as set forth in section 403(1) of the Act, there is hereby delegated to the Secretary of Homeland Se- curity the authority related to the Customs revenue functions vested in the Secretary of the Treasury as set forth in sections 412 and 415 of the Act, subject to the following excep- tions and to paragraph 6 of this Delegation of Authority:
(a)(i) The Secretary of the Treasury re- tains the sole authority to approve any regu- lations concerning import quotas or trade bans, user fees, marking, labeling, copyright and trademark enforcement, and the comple- tion of entry or substance of entry summary including duty assessment and collection, classification, valuation, application of the U.S. Harmonized Tariff Schedules, eligibility or requirements for preferential trade pro- grams, and the establishment of record- keeping requirements relating thereto. The Secretary of Homeland Security shall pro- vide a copy of all regulations so approved to the Chairman and Ranking Member of the Committee on Ways and Means and the Chairman and Ranking Member of the Com- mittee on Finance every six months.
(ii) The Secretary of the Treasury shall re- tain the authority to review, modify, or re- voke any determination or ruling that falls within the criteria set forth in paragraph 1(a)(i), and that is under consideration pur- suant to the procedures set forth in sections 516 and 625(c) of the Tariff Act of 1930, as amended (19 U.S.C. 1516 and 1625(c)). The Sec-
retary of Homeland Security periodically shall identify and describe for the Secretary of the Treasury such determinations and rul- ings that are under consideration under sec- tions 516 and 625(c) of the Tariff Act of 1930, as amended, in an appropriate and timely manner, with consultation as necessary, prior to the Secretary of Homeland Secu- rity’s exercise of such authority. The Sec- retary of Homeland Security shall provide a copy of these identifications and descrip- tions so made to the Chairman and Ranking Member of the Committee on Ways and Means and the Chairman and Ranking Mem- ber of the Committee on Finance every six months. The Secretary of the Treasury shall list any case where Treasury modified or re- voked such a determination or ruling.
(b) Paragraph 1(a) notwithstanding, if the Secretary of Homeland Security finds an overriding, immediate, and extraordinary se- curity threat to public health and safety, the Secretary of Homeland Security may take action described in paragraph 1(a) without the prior approval of the Secretary of the Treasury. However, immediately after tak- ing any such action, the Secretary of Home- land Security shall certify in writing to the Secretary of the Treasury and to the Chair- man and Ranking Member of the Committee on Ways and Means and the Chairman and Ranking Member of the Committee on Fi- nance the specific reasons therefor. The ac- tion shall terminate within 14 days or as long as the overriding, immediate, and ex- traordinary security threat exists, whichever is shorter, unless the Secretary of the Treas- ury approves the continued action and pro- vides notice of such approval to the Sec- retary of Homeland Security.
(c) The Advisory Committee on Commer- cial Operations of the Customs Service (COAC) shall be jointly appointed by the Secretary of the Treasury and the Secretary of Homeland Security. Meetings of COAC shall be presided over jointly by the Sec- retary of the Treasury and the Secretary of Homeland Security. The COAC shall advise the Secretary of the Treasury and the Sec- retary of Homeland Security jointly.
2. Any references in this Delegation of Au- thority to the Secretary of the Treasury or the Secretary of Homeland Security are deemed to include their respective delegees, if any.
3. This Delegation of Authority is not in- tended to create or confer any right, privi- lege, or benefit on any private person, in- cluding any person in litigation with the United States.
4. Treasury Order No. 165–09, ‘‘Maintenance of delegation in respect to general authority over Customs Revenue functions vested in the Secretary of the Treasury, as set forth and defined in the Homeland Security Act of 2002,’’ dated February 28, 2003, is rescinded. To the extent this Delegation of Authority
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U.S. Customs and Border Protection, DHS; Treasury Pt. 4
requires any revocation of any other prior Order or Directive of the Secretary of the Treasury, such prior Order or Directive is hereby revoked.
5. This Delegation of Authority is effective May 15, 2003. This Delegation is subject to re- view on May 14, 2004. By March 15, 2004, the Secretary of the Treasury and the Secretary of Homeland Security shall consult with the Chairman and Ranking Member of the Com- mittee on Ways and Means and the Chairman and Ranking Member of the Committee on Finance to discuss the upcoming review of this Delegation.
6. The Secretary of the Treasury reserves the right to rescind or modify this Delega- tion of Authority, promulgate regulations, or exercise authority at any time based upon the statutory authority reserved to the Sec- retary by the Act. John W. Snow, Secretary of the Treasury.
PARTS 1–3 [RESERVED]
PART 4—VESSELS IN FOREIGN AND DOMESTIC TRADES
ARRIVAL AND ENTRY OF VESSELS
Sec. 4.0 General definitions. 4.1 Boarding of vessels; cutter and dock
passes. 4.2 Reports of arrival of vessels. 4.3 Vessels required to enter; place of entry. 4.3a Penalties for violation of vessel report-
ing and entry requirements. 4.4 Panama Canal; report of arrival re-
quired. 4.5 Government vessels. 4.6 Departure or unlading before report or
entry. 4.7 Inward foreign manifest; production on
demand; contents and form; advance fil- ing of cargo declaration.
4.7a Inward manifest; information required; alternative forms.
4.7b Electronic passenger and crew arrival manifests.
4.7c Vessel stow plan. 4.7d Container status messages. 4.8 Preliminary entry. 4.9 Formal entry. 4.10 Request for overtime services. 4.11 Sealing of stores. 4.12 Explanation of manifest discrepancy. 4.13 [Reserved] 4.14 Equipment purchases by, and repairs
to, American vessels. 4.15 Fishing vessels touching and trading at
foreign places. 4.16 [Reserved] 4.17 Vessels from discriminating countries.
TONNAGE TAX AND LIGHT MONEY
4.20 Tonnage taxes.
4.21 Exemptions from tonnage taxes. 4.22 Exemptions from special tonnage taxes. 4.23 Certificate of payment and cash re-
ceipt. 4.24 Application for refund of tonnage tax.
LANDING AND DELIVERY OF CARGO
4.30 Permits and special licenses for unlad- ing and lading.
4.31 Unlading or transshipment due to cas- ualty.
4.32 Vessels in distress, landing of cargo. 4.33 Diversion of cargo. 4.34 Prematurely discharged, overcarried,
and undelivered cargo. 4.35 Unlading outside port of entry. 4.36 Delayed discharge of cargo. 4.37 General order. 4.38 Release of cargo. 4.39 Stores and equipment of vessels and
crews’ effects; unlading or lading and re- tention on board.
4.40 Equipment, etc., from wrecked or dis- mantled vessels.
4.41 Cargo of wrecked vessel.
PASSENGERS ON VESSELS
4.50 Passenger lists. 4.51 Reporting requirements for individuals
arriving by vessel. 4.52 Penalties applicable to individuals.
FOREIGN CLEARANCES
4.60 Vessels required to clear. 4.61 Requirements for clearance. 4.62 Accounting for inward cargo. 4.63 Outward cargo declaration; shippers’
export declarations. 4.64 Electronic passenger and crew member
departure manifests. 4.65 Verification of nationality and ton-
nage. 4.65a Load lines. 4.66 Verification of inspection. 4.66a Illegal discharge of oil and hazardous
substances. 4.66b Pollution of coastal and navigable wa-
ters. 4.66c Oil pollution by oceangoing vessels. 4.67 Closed ports or places. 4.68 Federal Maritime Commission certifi-
cates for certain passengers vessels. 4.69 Shipping articles. 4.70 Public Health Service requirements. 4.71 Inspection of livestock. 4.72 Inspection of meat, meat-food products,
and inedible fats. 4.73 Neutrality; exportation of arms and
munitions. 4.74 Transportation orders. 4.75 Incomplete manifest; incomplete ex-
port declarations; bond. 4.76 Procedures and responsibilities of car-
riers filing outbound vessel manifest in- formation via the AES.
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19 CFR Ch. I (4–1–12 Edition)Pt. 4
COASTWISE PROCEDURE
4.80 Vessels entitled to engage in coastwise trade.
4.80a Coastwise transportation of pas- sengers.
4.80b Coastwise transportation of merchan- dise.
4.81 Reports of arrivals and departures in coastwise trade.
4.81a Certain barges carrying merchandise transferred from another barge.
4.82 Touching at foreign port while in coast- wise trade.
4.83 Trade between United States ports on the Great Lakes and other ports of the United States.
4.84 Trade with noncontiguous territory. 4.85 Vessels with residue cargo for domestic
ports. 4.86 Intercoastal residue—cargo procedure;
optional ports. 4.87 Vessels proceeding foreign via domestic
ports. 4.88 Vessels with residue cargo for foreign
ports. 4.89 Vessels in foreign trade proceeding via
domestic ports and touching at inter- mediate foreign ports.
4.90 Simultaneous vessel transactions. 4.91 Diversion of vessel; transshipment of
cargo. 4.92 Towing. 4.93 Coastwise transportation by certain
vessels of empty vans, tanks, and barges, equipment for use with vans and tanks; empty instruments of international traf- fic; stevedoring equipment and material; procedures.
GENERAL
4.94 Yacht privileges and obligations. 4.94a Large yachts imported for sale. 4.95 Records of entry and clearance of ves-
sels. 4.96 Fisheries. 4.97 Salvage vessels. 4.98 Navigation fees. 4.99 Forms; substitution. 4.100 Licensing of vessels of less than 30 net
tons. 4.101 Prohibitions against Customs officers
and employees.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 2071 note; 46 U.S.C. 501, 60105.
Section 4.1 also issued under 19 U.S.C. 1581(a); 46 U.S.C. 60101;
Section 4.2 also issued under 19 U.S.C. 1441, 1486;
Section 4.3 also issued under 19 U.S.C. 288, 1441;
Section 4.3a also issued under 19 U.S.C. 1433, 1436;
Section 4.5 also issued under 19 U.S.C. 1441; Section 4.7 also issued under 19 U.S.C.
1581(a);
Section 4.7a also issued under 19 U.S.C. 1498, 1584;
Section 4.7b also issued under 8 U.S.C. 1101, 1221;
Sections 4.7c and 4.7d also issued under 6 U.S.C. 943.
Section 4.8 also issued under 19 U.S.C. 1448, 1486;
Section 4.9 also issued under 42 U.S.C. 269; Section 4.10 also issued under 19 U.S.C.
1448, 1451; Section 4.12 also issued under 19 U.S.C.
1584; Section 4.14 also issued under 19 U.S.C.
1466, 1498; Section 4.20 also issued under 46 U.S.C.
2107(b), 8103, 14306, 14502, 14511–14513, 14701, 14702, 60301–60306, 60312;
Section 4.21 also issued under 19 U.S.C. 1441; 46 U.S.C. 60301–60310, 60312;
Section 4.22 also issued under 46 U.S.C. 60301, 60302, 60303, 60304, 60305, 60306, 60312, 60503;
Section 4.24 also issued under 46 U.S.C. 2108;
Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450–1454, 1490;
Section 4.31 also issued under 19 U.S.C. 1453, 1586;
Section 4.32 also issued under 19 U.S.C. 1449;
Section 4.35 also issued under 19 U.S.C. 1447;
Section 4.36 also issued under 19 U.S.C. 1431, 1457, 1458; 46 U.S.C. 60107;
Section 4.37 also issued under 19 U.S.C. 1448, 1457, 1490;
Section 4.38 also issued under 19 U.S.C. 1448, 1505;
Section 4.39 also issued under 19 U.S.C. 1446;
Section 4.40 also issued under 19 U.S.C. 1446;
Section 4.50 also issued under 19 U.S.C. 1431; 46 U.S.C. 3502;
Section 4.51 also issued under 19 U.S.C. 1433;
Section 4.52 also issued under 19 U.S.C. 1433;
Section 4.61 also issued under 46 U.S.C. 12101, 12120, 12132, 55102, 55105–55108, 55110, 55115–55117, 55119;
Section 4.64 also issued under 8 U.S.C. 1221; Section 4.65a also issued under 46 U.S.C.
5101–5102, 5106–5109, 5112–5114, 5116; Section 4.66 also issued under 46 U.S.C.
60105; Section 4.66a also issued under 33 U.S.C.
1321; 46 U.S.C. 60105; Section 4.66b also issued under 33 U.S.C.
407, 1321; Section 4.68 also issued under 46 U.S.C.
44101–44106; Section 4.69 also issued under 46 U.S.C.
10301, 10302, 10314, and 10315. Section 4.74 also issued under 46 U.S.C.
60105;
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U.S. Customs and Border Protection, DHS; Treasury § 4.0
Section 4.75 also issued under 46 U.S.C. 60105;
Sections 4.80, 4.80a, and 4.80b also issued under 19 U.S.C. 1706a; 28 U.S.C. 2461 note; 46 U.S.C. 12112, 12118, 50501–55106, 55107, 55108, 55110, 55114, 55115, 55116, 55117, 55119, 56101, 55121, 56101, 57109; Pub. L. 108–7, Division B, Title II, § 211;
Section 4.81 also issued under 19 U.S.C. 1442, 1486; 46 U.S.C. 12101, 12120, 12132, 55102, 55105–55108, 55110, 55114–55117, 55119;
Section 4.81a also issued under 46 U.S.C. 12101, 12120, 12132, 55102, 55105–55108, 55110, 55114–55117, 55119;
Section 4.82 also issued under 19 U.S.C. 293, 294; 46 U.S.C. 60308;
Section 4.83 also issued under 46 U.S.C. 60105, 60308;
Section 4.84 also issued under 46 U.S.C. 12118;
Section 4.85 also issued under 19 U.S.C. 1442, 1623;
Section 4.86 also issued under 19 U.S.C. 1442;
Section 4.88 also issued under 19 U.S.C. 1442, 1622, 1623;
Section 4.92 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 55111;
Section 4.93 also issued under 19 U.S.C. 1322(a); 46 U.S.C. 12101, 12120, 12132, 55102, 55105–55108, 55110, 55114–55117, 55119;
Section 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C. 60504;
Section 4.94a also issued under 19 U.S.C. 1484b;
Section 4.96 also issued under 46 U.S.C. 12101(a)(1), 12108, 55114;
Section 4.98 also issued under 31 U.S.C. 9701;
Section 4.100 also issued under 19 U.S.C. 1706.
EFFECTIVE DATE NOTE: At 77 FR 17332, Mar. 26, 2012, the authority citation was amended by adding a citation for section 4.14, effective Apr. 25, 2012. For the convenience of the user, the added text is set forth as follows:
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1431, 1433, 1434, 1624, 2071 note; 46 U.S.C. 501, 60105.
* * * * * Section 4.14 also issued under 19 U.S.C.
1466, 1498; 31 U.S.C. 9701. * * * * *
SOURCE: 28 FR 14596, Dec. 31, 1963, unless otherwise noted.
ARRIVAL AND ENTRY OF VESSELS
§ 4.0 General definitions. For the purposes of this part: (a) Vessel. The word vessel includes
every description of water craft or other contrivance used or capable of being used as a means of transpor- tation on water, but does not include aircraft. (19 U.S.C. 1401.)
(b) Vessel of the United States. The term vessel of the United States means any vessel documented under the laws of the United States.
(c) Documented. The term documented vessel means a vessel for which a valid Certificate of Documentation, form CG 1270, issued by the U.S. Coast Guard is outstanding. Upon qualification and proper application to the appropriate Coast Guard office, the Certificate of Documentation may be endorsed with a: (1) Registry endorsement (generally, available to a vessel to be employed in foreign trade, trade with Guam, Amer- ican Samoa, Wake, Midway, or King- man Reef, and other employments for which another endorsement is not re- quired), (2) coastwise endorsement (generally, entitles a vessel to employ- ment in the coastwise trade, and other employments for which another en- dorsement is not required), (3) fishery endorsement (generally, subject to fed- eral and state laws regulating the fish- eries, entitles a vessel to fish within the Exclusive Economic Zone (16 U.S.C. 1811) and landward of that zone and to land its catch) or (4) recreational en- dorsement (entitles a vessel to rec- reational use only). Any other termi- nology used elsewhere in this part to describe the particular documentation of a vessel shall be read as synonymous with the applicable terminology con- tained in this paragraph. Generally, any vessel of at least 5 net tons and wholly owned by a United States cit- izen or citizens is eligible for docu- mentation except that for a coastwise, or fisheries endorsement a vessel must also be built in the United States. De- tailed Coast Guard regulations on doc- umentation are set forth in Title 46, Code of Federal Regulations, § 67.01– 67.45.
(d) Noncontiguous territory of the United States. The term noncontiguous territory of the United States includes all the island territories and possessions of the United States, but does not include the Canal Zone.
(e) Citizen. The word citizen is as de- fined by the U.S. Coast Guard for pur- poses of vessel documentation (see sub- part 67.03 of title 46, Code of Federal Regulations.)
(f) Arrival of a vessel. The phrase ‘‘ar- rival of a vessel’’ means that time
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19 CFR Ch. I (4–1–12 Edition)§ 4.1
1-27 [Reserved]
when the vessel first comes to rest, whether at anchor or at a dock, in any harbor within the Customs territory of the U.S.
(g) Departure of a vessel. The phrase ‘‘departure of a vessel’’ means that time when the vessel gets under way on its outward voyage and proceeds on the voyage without thereafter coming to rest in the harbor from which it is going.
[T.D. 69–266, 34 FR 20422, Dec. 31, 1969, as amended by T.D. 83–214, 48 FR 46511, Oct. 13, 1983; T.D. 93–78, 58 FR 50256, Sept. 27, 1993; T.D. 93–96, 58 FR 67315, Dec. 21, 1993; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.1 Boarding of vessels; cutter and dock passes.
(a) Every vessel arriving at a Cus- toms port will be subject to such super- vision while in port as the port director considers necessary. The port director may detail Customs officers to remain on board a vessel to secure enforce- ment of the requirements set forth in this part. Customs may determine to board as many vessels as considered necessary to ensure compliance with the laws it enforces.
(b)(1) No person, with or without the consent of the master, except a pilot in connection with the navigation of the vessel, personnel from another vessel in connection with the navigation of an unmanned barge, an officer of Customs or the Coast Guard, an immigration or health officer, an inspector of the Ani- mal and Plant Health Inspection Serv- ice of the U.S. Department of Agri- culture, or an agent of the vessel or consular officer exclusively for pur- poses relating to Customs formalities, shall go on board any vessel arriving from outside the Customs territory of the United States without permission of the port director or the Customs of- ficer in charge until the vessel has been taken in charge by a Customs officer.
(2) A person may leave the vessel for the purpose of reporting its arrival as required by law (see § 4.2), but no other person, except those designated in paragraph (b)(1) of this section, shall leave any vessel arriving from outside the Customs territory of the United States, with or without the consent of
the master, without the permission of the port director or the Customs officer in charge until the vessel has been properly inspected by Customs and brought into the dock or anchorage at which cargo is to be unladen and until all passengers have been landed from the vessel (19 U.S.C. 1433).
(3) Every person permitted to go on board or to leave without the consent of a Customs officer under the provi- sions of this paragraph shall be subject to Customs and quarantine regula- tions.
(4) The master of any vessel shall not authorize the boarding or leaving of his vessel by any person in violation of this paragraph.
(c) A port director, in his discretion may issue a cutter pass on Customs Form 3093 to permit the holder to board an incoming vessel after it has been inspected by the quarantine au- thorities and taken in charge by an of- ficer of the Customs, as follows: (1) To persons on official business; (2) to news reporters, newspaper photographers, photographers of established motionpicture companies, and broad- casters of established radio broad- casting cmmpanies; and (3) in cases of special exigency in which the port di- rector is satisfied as to the urgent need for the boarding and that its allowance will not result in undue interference with the performance of official busi- ness.
(d) No person in charge of a tugboat, rowboat, or other vessel shall bring such conveyance alongside an incoming vessel heretofore described and put on board thereof any person, except as au- thorized by law or regulations.
(e) [Reserved] (f) Term cutter and dock passes, for a
period of not to exceed one year, may be issued in the discretion of the port director, to persons on official business and to duly accredited news reporters and newspaper photographers. Passes are not transferable and shall be for- feited upon presentation by others than those to whom issued.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 78–141, 43 FR 22174, May 24, 1978; T.D. 82– 224, 47 FR 35475, Aug. 16, 1982; T.D. 92–74, 57 FR 35751, Aug. 11, 1992; T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 00–4, 65 FR 2872, Jan. 19, 2000]
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U.S. Customs and Border Protection, DHS; Treasury § 4.3
§ 4.2 Reports of arrival of vessels. (a) Upon arrival in any port or place
within the U.S., including, for purposes of this section, the U.S. Virgin Islands, of any vessel from a foreign port or place, any foreign vessel from a port or place within the U.S., or any vessel of the U.S. carrying foreign merchandise for which entry has not been made, the master of the vessel must immediately report that arrival to the nearest CBP facility or other location designated by the port director. The report of arrival, except as supplemented in local in- structions issued by the port director and made available to interested par- ties by posting in CBP offices, publica- tion in a newspaper of general circula- tion, and other appropriate means, may be made by any means of commu- nication to the port director or to a CBP officer assigned to board the ves- sel. The CBP officer may require the production of any documents or papers deemed necessary for the proper in- spection/examination of the vessel, cargo, passenger, or crew.
(b) For purposes of this part, ‘‘foreign port or place’’ includes a hovering ves- sel, as defined in 19 U.S.C. 1401(k), and any point in customs waters beyond the territorial sea or on the high seas at which a vessel arriving in a port or place in the U.S. has received merchan- dise.
(c) In the case of certain vessels ar- riving either in distress or for the lim- ited purpose of taking on certain sup- plies and departing within a 24-hour time period without having landed or taken on any passengers or other mer- chandise (see section 441(4), Tariff Act of 1930, as amended), the report must be filed by either the master, owner, or agent, and must be in the form and give the information required by that statute, except that the report need not be under oath. A derelict vessel will be considered one in distress and any person bringing it into port must report its arrival.
(d) The report of baggage and mer- chandise required to be made by cer- tain passenger vessels making three or more trips a week between U.S. and foreign ports and vessels used exclu- sively as ferryboats carrying pas- sengers, baggage, or merchandise (see section 441(2), Tariff Act of 1930, as
amended), is in addition to the required report of arrival, and must be made within 24 hours of arrival.
[T.D. 93–96, 58 FR 67315, Dec. 21, 1993, as amended by T.D. 94–44, 59 FR 23795, May 9, 1994; CBP Dec. 10–33, 75 FR 69585, Nov. 15, 2010]
§ 4.3 Vessels required to enter; place of entry.
(a) Formal entry required. Unless spe- cifically excepted by law, within 48 hours after the arrival at any port or place in the United States, the fol- lowing vessels are required to make formal entry:
(1) Any vessel from a foreign port or place;
(2) Any foreign vessel from a domes- tic port;
(3) Any vessel of the United States having foreign merchandise on board for which entry has not been made; or
(4) Any vessel which has visited a hovering vessel as defined in 19 U.S.C. 1401(k), or has delivered or received merchandise or passengers while out- side the territorial sea.
(b) Completion of entry. (1) When ves- sel entry is to be made at the custom- house, either the master, licensed deck officer, or purser may appear in person during regular working hours to com- plete preliminary or formal vessel entry; or necessary documents properly executed by the master or other au- thorized officer may be delivered at the customhouse by the vessel agent or other personal representative of the master.
(2) The appropriate CBP port director may permit the entry of vessels to be accomplished at locations other than the customhouse, and services may be requested outside of normal business hours. CBP may take local resources into consideration in allowing formal entry to be transacted on board vessels or at other mutually convenient ap- proved sites and times within or out- side of port limits. When services are requested to be provided outside the limits of a CBP port, the appropriate port director to whom an application must be submitted is the director of the port located nearest to the point where the proposed services would be provided. That port director must be satisfied that the place designated for
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19 CFR Ch. I (4–1–12 Edition)§ 4.3a
formal entry will be sufficiently under CBP control at the time of entry, and that the expenses incurred by CBP will be reimbursed as authorized. It may be required that advance notice of vessel arrival be given as a condition for granting requests for optional entry lo- cations. A master, owner, or agent of a vessel who desires that entry be made at an optional location will file with the appropriate port director an appli- cation on CBP Form 3171 and a single entry or continuous bond on CBP Form 301 containing the bond conditions set forth in § 113.64 of this chapter, in such amount as that port director deems ap- propriate but not less than $1,000. If the application is approved, the port direc- tor or a designated CBP officer will for- mally enter the vessel. Nothing in this paragraph relieves any person or vessel from any requirement as to how, when and where they are to report, be in- spected or receive clearance from other Federal agencies upon arrival in the United States.
[T.D. 00–4, 65 FR 2872, Jan. 19, 2000, as amend- ed at CBP Dec. 10–33, 75 FR 69585, Nov. 15, 2010]
§ 4.3a Penalties for violation of vessel reporting and entry requirements.
Violation of the arrival or entry re- porting requirements provided for in this part may result in the master being liable for certain civil and crimi- nal penalties, as provided under 19 U.S.C. 1436, in addition to other pen- alties applicable under other provisions of law. The penalties include civil mon- etary penalties for failure to report ar- rival or make entry, and any convey- ance used in connection with any such violation is subject to seizure and for- feiture. Further, if any merchandise (other than sea stores or the equivalent for conveyances other than a vessel) is involved in the failure to report arrival or entry, additional penalties equal to the value of merchandise may be im- posed, and the merchandise may be seized and forfeited unless properly en- tered by the importer or consignee. The criminal penalties, applicable upon conviction, include fines and imprison- ment if the master intentionally com- mits any violation of these reporting and entry requirements or if prohibited
merchandise is involved in the failure to report arrival or make entry.
[T.D. 93–96, 58 FR 67316, Dec. 21, 1993]
§ 4.4 Panama Canal; report of arrival required.
Vessels which merely transit the Panama Canal without transacting any business there shall be required to re- port their arrival because of such tran- sit. The report of arrival shall be made in accordance with § 4.2(a).
[T.D. 79–276, 44 FR 61956, Oct. 29, 1979]
§ 4.5 Government vessels. (a) No report of arrival or entry shall
be required of any vessel owned by, or under the complete control and man- agement of the United States or any of its agencies, if such vessel is manned wholly by members of the uniformed services of the United States, by per- sonnel in the civil service of the United States, or by both, and is transporting only property of the United States or passengers traveling on official busi- ness of the United States, or it is bal- last. In addition, any vessel chartered by, and transporting only cargo that is the property of, the U.S. Department of Defense (DoD) will be treated as a Gov- ernment vessel for the purpose of being exempt from entry, where the DoD- chartered vessel is manned entirely by the civilian crew of the vessel carrier under contract to DoD. Notwith- standing § 4.60(b)(3) of this part, such DoD-chartered vessel is not exempt from vessel clearance requirements. However, if any cargo is on board, the master or commander of each such ves- sel arriving from abroad shall file a Cargo Declaration, Customs Form 1302, or an equivalent form issued by the De- partment of Defense, in duplicate. The original of each Cargo Declaration or equivalent form required under this paragraph shall be filed with the port director within 48 hours after the ar- rival of the vessel. The other copy shall be made available for use by the dis- charging inspector at the pier. See § 148.73 of this chapter with respect to baggage on carriers operated by the Department of Defense.
(b) The arrival of every vessel owned or controlled and manned as described in paragraph (a) of this section but
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U.S. Customs and Border Protection, DHS; Treasury § 4.7
transporting other property or pas- sengers, and every vessel so owned or controlled but not so manned, whether in ballast or transporting cargo or pas- sengers, shall be reported in accord- ance with § 4.2 and the vessel shall be entered in accordance with § 4.9.
(c) Every vessel owned by, or under the complete control and management of, any foreign nation shall be exempt from or subject to the laws relating to report of arrival and entry under the same conditions as a vessel owned or controlled by the United States.
[28 FR 14596, Dec. 31, 1963, as amended by 39 FR 10897, Mar. 22, 1974; T.D. 83–213, 48 FR 46978, Oct. 17, 1983; CBP Dec. 03–32, 68 FR 68168, Dec. 5, 2003]
§ 4.6 Departure or unlading before re- port or entry.
(a) No vessel which has arrived with- in the limits of any Customs port from a foreign port or place shall depart or attempt to depart, except from stress of weather or other necessity, without reporting and making entry as required in this part. These requirements shall not apply to vessels merely passing through waters within the limits of a Customs port in the ordinary course of a voyage.
(b) The ‘‘limits of any Customs port’’ as used herein are those described in § 101.3(b) of this chapter, including the marginal waters to the 3-mile limit on the seaboard and the waters to the boundary line on the northern and southern boundaries.
(c) Violation of this provision may result in the master being liable for certain civil penalties and the vessel to arrest and forfeiture, as provided under 19 U.S.C. 1436, in addition to other pen- alties applicable under other provisions of law.
[T.D. 93–96, 58 FR 67316, Dec. 21, 1993, as amended by T.D. 98–74, 63 FR 51287, Sept. 25, 1998]
§ 4.7 Inward foreign manifest; produc- tion on demand; contents and form; advance filing of cargo declaration.
(a) The master of every vessel arriv- ing in the United States and required to make entry shall have on board his vessel a manifest, as required by sec- tion 431, Tariff Act of 1930 (19 U.S.C. 1431), and by this section. The manifest
shall be legible and complete. If it is in a foreign language, an English trans- lation shall be furnished with the origi- nal and with any required copies. The manifest shall consist of a Vessel En- trance or Clearance Statement, CBP Form 1300, and the following docu- ments: (1) Cargo Declaration, CBP Form 1302, (2) Ship’s Stores Declara- tion, CBP Form 1303, (3) Crew’s Effects Declaration, CBP Form 1304, or, op- tionally, a copy of the Crew List, Cus- toms and Immigration Form I–418, to which are attached crewmember’s dec- larations on CBP Form 5129, (4) Crew List, Customs and Immigration Form I–418, and (5) Passenger List, Customs and Immigration Form I–418. Any doc- ument which is not required may be omitted from the manifest provided the word ‘‘None’’ is inserted in items 16, 18, and/or 19 of the Vessel Entrance or Clearance Statement, as appro- priate. If a vessel arrives in ballast and therefore the Cargo Declaration is omitted, the legend ‘‘No merchandise on board’’ shall be inserted in item 16 of the Vessel Entrance or Clearance Statment.
(b)(1) With the exception of any Cargo Declaration that has been filed in advance as prescribed in paragraph (b)(2) of this section, the original and one copy of the manifest must be ready for production on demand. The master shall deliver the original and one copy of the manifest to the CBP officer who shall first demand it. If the vessel is to proceed from the port of arrival to other United States ports with residue foreign cargo or passengers, an addi- tional copy of the manifest shall be available for certification as a trav- eling manifest (see § 4.85). The port di- rector may require an additional copy or additional copies of the manifest, but a reasonable time shall be allowed for the preparation of any copy which may be required in addition to the original and one copy.
(2) In addition to the vessel stow plan requirements pursuant to § 4.7c of this part and the container status message requirements pursuant to § 4.7d of this part, and with the exception of any bulk or authorized break bulk cargo as prescribed in paragraph (b)(4) of this
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19 CFR Ch. I (4–1–12 Edition)§ 4.7
section, Customs and Border Protec- tion (CBP) must receive from the in- coming carrier, for any vessel covered under paragraph (a) of this section, the CBP-approved electronic equivalent of the vessel’s Cargo Declaration (CBP Form 1302), 24 hours before the cargo is laden aboard the vessel at the foreign port (see § 4.30(n)). The electronic cargo declaration information must be trans- mitted through the CBP Automated Manifest System (AMS) or any elec- tronic data interchange system ap- proved by CBP to replace the AMS sys- tem for this purpose. Any such system change will be announced by notice in the Federal Register.
(3)(i) Where a non-vessel operating common carrier (NVOCC), as defined in paragraph (b)(3)(ii) of this section, de- livers cargo to the vessel carrier for lading aboard the vessel at the foreign port, the NVOCC, if licensed by or reg- istered with the Federal Maritime Commission and in possession of an International Carrier Bond containing the provisions of § 113.64 of this chap- ter, may electronically transmit the corresponding required cargo declara- tion information directly to CBP through the vessel AMS system (or other system approved by CBP for this purpose). The information must be re- ceived 24 or more hours before the re- lated cargo is laden aboard the vessel at the foreign port (see § 113.64(c) of this chapter), as provided in paragraph (b)(2) of this section, or in accordance with paragraph (b)(4) of this section ap- plicable to exempted bulk and break bulk cargo. In the alternative, the NVOCC must fully disclose and present the required cargo declaration infor- mation for the related cargo to the ves- sel carrier which is required to present this information to CBP, in accordance with this section, via the vessel AMS system (or other CBP-approved sys- tem).
(ii) A non-vessel operating common carrier (NVOCC) means a common car- rier that does not operate the vessels by which the ocean transportation is provided, and is a shipper in its rela- tionship with an ocean common car- rier. The term ‘‘non-vessel operating common carrier’’ does not include freight forwarders as defined in part 112 of this chapter.
(iii) Where the party electronically presenting to CBP the cargo informa- tion required in § 4.7a(c)(4) receives any of this information from another party, CBP will take into consideration how, in accordance with ordinary commer- cial practices, the presenting party ac- quired such information, and whether and how the presenting party is able to verify this information. Where the pre- senting party is not reasonably able to verify such information, CBP will per- mit the party to electronically present the information on the basis of what the party reasonably believes to be true.
(4) Carriers of bulk cargo as specified in paragraph (b)(4)(i) of this section and carriers of break bulk cargo to the extent provided in paragraph (b)
(i) Bulk cargo is defined for purposes of this section as homogeneous cargo that is stowed loose in the hold and is not enclosed in any container such as a box, bale, bag, cask, or the like. Such cargo is also described as bulk freight. Specifically, bulk cargo is composed of either:
(A) Free flowing articles such as oil, grain, coal, ore, and the like, which can be pumped or run through a chute or handled by dumping; or
(B) Articles that require mechanical handling such as bricks, pig iron, lum- ber, steel beams, and the like.
(ii) A carrier of break bulk cargo may apply for an exemption from the filing requirement of paragraph (b)(2) of this section with respect to the break bulk cargo it will be transporting. For pur- poses of this section, break bulk cargo is cargo that is not containerized, but which is otherwise packaged or bun- dled.
(A) To apply for an exemption, the carrier must submit a written request for exemption to the U.S. Customs and Border Protection, National Targeting Center, 1300 Pennsylvania Ave., NW., Washington, DC 20229. Until an applica- tion for an exemption is granted, the carrier must comply with the 24 hour advance cargo declaration requirement set out in paragraph (b)(2) of this sec- tion. The written request for exemp- tion must clearly set forth information such that CBP may assess whether any security concerns exist, such as: The
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U.S. Customs and Border Protection, DHS; Treasury § 4.7
carrier’s IRS number; the source, iden- tity and means of the packaging or bundling of the commodities being shipped; the ports of call, both foreign and domestic; the number of vessels the carrier uses to transport break bulk cargo, along with the names of these vessels and their International Maritime Organization numbers; and the list of the carrier’s importers and shippers, identifying any who are mem- bers of C-TPAT (The Customs-Trade Partnership Against Terrorism).
(B) CBP will evaluate each applica- tion for an exemption on a case by case basis. If CBP, by written response, pro- vides an exemption to a break bulk carrier, the exemption is only applica- ble under the circumstances clearly set forth in the application for exemption. If circumstances set forth in the ap- proved application change, it will be necessary to submit a new application.
(C) CBP may rescind an exemption granted to a carrier at any time.
(c) No Passenger List or Crew List shall be required in the case of a vessel arriving from Canada, otherwise than by sea, at a port on the Great Lakes or their connecting or tributary waters.
(d)(1) The master or owner of— (i) A vessel documented under the
laws of the United States with a reg- istry, coastwise license, or Great Lakes license endorsement, or a vessel not so documented but intended to be em- ployed in the foreign, coastwise, or Great Lakes trade, or
(ii) A documented vessel with a fish- ery license endorsement which has a permit to touch and trade (see § 4.15) or a vessel with a fishery license endorse- ment lacking a permit to touch and trade but intended to engage in trade— at the port of first arrival from a for- eign country shall declare on CBP Form 226 any equipment, repair parts, or materials purchased for the vessel, or any expense for repairs incurred, outside the United States, within the purview of section 466, Tariff Act of 1930, as amended (19 U.S.C. 1466). If no equipment, repair parts, or materials have been purchased, or repairs made, a declaration to that effect shall be made on CBP Form 226.
(2) If the vessel is at least 500 gross tons, the declaration shall include a statement that no work in the nature
of a rebuilding or alteration which might give rise to a reasonable belief that the vessel may have been rebuilt within the meaning of the second pro- viso to section 27, Merchant Marine Act, 1920, as amended (46 U.S.C. 883), has been effected which has not been either previously reported or sepa- rately reported simultaneously with the filing of such declaration. The port director shall notify the U.S. Coast Guard vessel documentation officer at the home port of the vessel of any work in the nature of a rebuilding or alter- ation, including the construction of any major component of the hull or su- perstructure of the vessel, which comes to his attention unless the port direc- tor is satisfied that the owner of the vessel has filed an application for re- built determination as required by 46 CFR 67.27–3.
(3) The declaration shall be ready for production on demand for inspection and shall be presented as part of the original manifest when formal entry of the vessel is made.
(e) Failure to provide manifest informa- tion; penalties/liquidated damages. Any master who fails to provide manifest information as required by this sec- tion, or who presents or transmits elec- tronically any document required by this section that is forged, altered or false, or who fails to present or trans- mit the information required by this section in a timely manner, may be lia- ble for civil penalties as provided under 19 U.S.C. 1436, in addition to damages under the international carrier bond of $5,000 for each violation discovered. In addition, if any non-vessel operating common carrier (NVOCC) as defined in paragraph (b)(3)(ii) of this section elects to transmit cargo declaration in- formation to CBP electronically and fails to do so in the manner and in the time period required by paragraph (b)(3)(i) of this section, or electroni- cally transmits any false, forged or al- tered document, paper, cargo declara- tion information to CBP, such NVOCC may be liable for the payment of liq- uidated damages as provided in
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19 CFR Ch. I (4–1–12 Edition)§ 4.7a
§ 113.64(c) of this chapter, of $5,000 for each violation discovered.
[T.D. 71–169, 36 FR 12602, July 2, 1971, as amended by T.D. 74–284, 39 FR 39718, Nov. 11, 1974; T.D. 77–255, 42 FR 56319, Oct. 25, 1977; T.D. 80–237, 45 FR 64565, Sept. 30, 1980; T.D. 83–214, 48 FR 46511, Oct. 13, 1983; T.D. 92–74, 57 FR 35751, Aug. 11, 1992; T.D. 00–22, 65 FR 16515, Mar. 29, 2000; T.D. 02–62, 67 FR 66331, Oct. 31, 2002; 68 FR 1801, Jan. 14, 2003; CBP Dec. 03–32, 68 FR 68168, Dec. 5, 2003; CBP Dec. 08–46, 73 FR 71779, Nov. 25, 2008; CBP Dec. 09– 39, 74 FR 52676, Oct. 14, 2009; CBP Dec. 11–10, 76 FR 27608, May 12, 2011]
§ 4.7a Inward manifest; information re- quired; alternative forms.
The forms designated by § 4.7(a) as comprising the inward manifest shall be completed as follows:
(a) Ship’s Stores Declaration. Articles to be retained aboard as sea or ship’s stores shall be listed on the Ship’s Stores Declaration, CBP Form 1303. Less than whole packages of sea or ship’s stores may be described as ‘‘sun- dry small and broken stores.’’
(b) Crew’s Effects Declaration. (CBP Form 1304). (1) The declaration number of the Crew Member’s Declaration, CBP Form 5129, prepared and signed by any officer or crewmember who intends to land articles in the United States, or the word ‘‘None,’’ shall be shown in item No. 7 on the Crew’s Effects Dec- laration, CBP Form 1304 opposite the respective crewmember’s name.
(2) In lieu of describing the articles on CBP Form 1304, the master may fur- nish a Crew List, CBP Form I–418, en- dorsed as follows:
I certify that this list, with its supporting crewmembers’ declarations, is a true and complete manifest of all articles on board the vessel acquired abroad by myself and the officers and crewmembers of this vessel, other than articles exclusively for use on the voyage or which have been duly cleared through CBP in the United States.
———————————— (Master.)
The Crew List on Form I–418 shall show, opposite the crewmember’s name, his shipping article number and, in column 5, the declaration number. If the crewmember has nothing to de- clare, the word ‘‘None’’ shall be placed opposite his name instead of a declara- tion number.
(3) For requirements concerning the preparation of CBP Form 5129, see sub- part G of part 148 of this chapter.
(4) Any articles which are required to be manifested and are not manifested shall be subject to forfeiture and the master shall be subjected to a penalty equal to the value thereof, as provided in section 584, Tariff Act of 1930, as amended.
(c) Cargo Declaration. (1) The Cargo Declaration (CBP Form 1302 submitted in accordance with paragraph (b)(2) or (b)(4) of this section) must list all the inward foreign cargo on board the ves- sel regardless of the U.S. port of dis- charge, and must separately list any other foreign cargo remaining on board (‘‘FROB’’). For the purposes of this part, ‘‘FROB’’ means cargo which is laden in a foreign port, is intended for discharge in a foreign port, and re- mains aboard a vessel during either di- rect or indirect stops at one or more intervening United States ports. The block designated ‘‘Arrival’’ at the top of the form shall be checked. The name of the shipper shall be set forth in the column calling for such information and on the same line where the bill of lading is listed for that shipper’s mer- chandise. When more than one bill of lading is listed for merchandise from the same shipper, ditto marks or the word ‘‘ditto’’ may be used to indicate the same shipper. The cargo described in column Nos. 6 and 7, and either col- umn No. 8 or 9, shall refer to the re- spective bills of lading. Either column No. 8 or column No. 9 shall be used, as appropriate. The gross weight in col- umn No. 8 shall be expressed in either pounds or kilograms. The measurement in column No. 9 shall be expressed ac- cording to the unit of measure speci- fied in the Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202).
(2)(i) When inward foreign cargo is being shipped by container, each bill of lading shall be listed in the column headed ‘‘B/L Nr.’’ in numerical se- quence according to the bill of lading number. The number of the container which contains the cargo covered by that bill of lading and the number of the container seal shall be listed in col- umn No. 6 opposite the bill of lading number. The number of any other bill
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U.S. Customs and Border Protection, DHS; Treasury § 4.7a
of lading for cargo in that container also shall be listed in column No. 6 im- mediately under the container and seal numbers. A description of the cargo shall be set forth in column No. 7 only if the covering bill of lading is listed in the column headed ‘‘B/L Nr.’’
(ii) As an alternative to the proce- dure described in paragraph (i), a sepa- rate list of the bills of lading covering each container on the vessel may be submitted on CBP Form 1302 or on a separate sheet. If this procedure is used:
(A) Each container number shall be listed in alphanumeric sequence by port of discharge in column No. 6 of CBP Form 1302, or on the separate sheet; and
(B) The number of each bill of lading covering cargo in a particular con- tainer, identifying the port of lading, shall be listed opposite the number of the container with that cargo in the column headed ‘‘B/L Nr.’’ if CBP Form 1302 is used, or either opposite or under the number of the container if a sepa- rate sheet is used.
(iii) All bills of lading, whether issued by a carrier, freight forwarder, or other issuer, shall contain a unique identifier consisting of up to 16 char- acters in length. The unique bill of lad- ing number will be composed of two elements. The first element will be the first four characters consisting of the carrier or issuer’s four digit Standard Carrier Alpha Code (SCAC) assigned to the carrier in the National Motor Freight Traffic Association, Inc., Di- rectory of Standard Multi-Modal Car- rier and Tariff Agent Codes, applicable supplements thereto and reissues thereof. The second element may be up to 12 characters in length and may be either alpha and/or numeric. The unique identifier shall not be used by the carrier, freight forwarder or issuer for another bill of lading for a period of 3 years after issuance. CBP processing of the unique identifier will be limited to checking the validity of the Stand- ard Carrier Alpha Codes (SCAC) and en- suring that the identifier has not been duplicated within a 3-year period. Car- riers and broker/importers will be re- sponsible for reconciliation of discrep- ancies between cargo declarations and entries. CBP will not perform any rec-
onciliation except in a post-audit proc- ess.
(3) For shipment of containerized or palletized cargo, CBP officers shall ac- cept a Cargo Declaration which indi- cates that it has been prepared on the basis of information furnished by the shipper. The use of words of qualifica- tion shall not limit the responsibility of a master to submit accurate Cargo Declarations or qualify the oath taken by the master as to the accuracy of his declaration.
(i) If Cargo Declaration covers only containerized or palletized cargo, the following statement may be placed on the declaration:
The information appearing on the declara- tion relating to the quantity and description of the cargo is in each instance based on the shipper’s load and count. I have no knowl- edge or information which would lead me to believe or to suspect that the information furnished by the shipper is incomplete, inac- curate, or false in any way.
(ii) If the Cargo Declaration covers conventional cargo and containerized or palletized cargo, or both, the use of the abbreviation ‘‘SLAC’’ for ‘‘ship- per’s load and count,’’ or an appro- priate abbreviation if similar words are used, is approved: Provided, That abbre- viation is placed next to each contain- erized or palletized shipment on the declaration and the following state- ment is placed on the delaration:
The information appearing on this declara- tion relating to the quantity and description of cargo preceded by the abbreviation ‘‘SLAC’’ is in each instance based on the shipper’s load and count. I have no informa- tion which would lead me to believe or to suspect that the information furnished by the shipper is incomplete, inaccurate, or false in any way.
(iii) The statements specified in para- graphs (c)(3) (i) and (ii) of this section shall be placed on the last page of the Cargo Declaration. Words similar to ‘‘the shipper’s load and count’’ may be substituted for those words in the statements. Vague expressions such as ‘‘said to contain’’ or ‘‘accepted as con- taining’’ are not acceptable. The use of an asterisk or other character instead of appropriate abbreviations, such as ‘‘SLAC’’, is not acceptable.
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19 CFR Ch. I (4–1–12 Edition)§ 4.7a
(4) In addition to the cargo declara- tion information required in para- graphs (c)(1)–(c)(3) of this section, for all inward foreign cargo, the Cargo Declaration, must state the following:
(i) The last foreign port before the vessel departs for the United States;
(ii) The carrier SCAC code (the unique Standard Carrier Alpha Code assigned for each carrier; see paragraph (c)(2)(iii) of this section);
(iii) The carrier-assigned voyage number;
(iv) The date the vessel is scheduled to arrive at the first U.S. port in CBP territory;
(v) The numbers and quantities from the carrier’s ocean bills of lading, ei- ther master or house, as applicable (this means that the carrier must transmit the quantity of the lowest ex- ternal packaging unit; containers and pallets are not acceptable manifested quantities; for example, a container containing 10 pallets with 200 cartons should be manifested as 200 cartons);
(vi) The first foreign port where the carrier takes possession of the cargo destined to the United States;
(vii) A precise description (or the Harmonized Tariff Schedule (HTS) numbers to the 6-digit level under which the cargo is classified if that in- formation is received from the shipper) and weight of the cargo or, for a sealed container, the shipper’s declared de- scription and weight of the cargo. Ge- neric descriptions, specifically those such as ‘‘FAK’’ (‘‘freight of all kinds’’), ‘‘general cargo’’, and ‘‘STC’’ (‘‘said to contain’’) are not acceptable;
(viii) The shipper’s complete name and address, or identification number, from all bills of lading. (At the master bill level, for consolidated shipments, the identity of the Non Vessel Oper- ating Common Carrier (NVOCC), freight forwarder, container station or other carrier is sufficient; for non-con- solidated shipments, and for each house bill in a consolidated shipment, the identity of the foreign vendor, sup- plier, manufacturer, or other similar party is acceptable (and the address of the foreign vendor, etc., must be a for- eign address); by contrast, the identity of the carrier, NVOCC, freight for- warder or consolidator is not accept- able; the identification number will be
a unique number assigned by CBP upon the implementation of the Automated Commercial Environment);
(ix) The complete name and address of the consignee, or identification number, from all bills of lading. (For consolidated shipments, at the master bill level, the NVOCC, freight for- warder, container station or other car- rier may be listed as the consignee. For non-consolidated shipments, and for each house bill in a consolidated ship- ment, the consignee is the party to whom the cargo will be delivered in the United States, with the exception of ‘‘FROB’’ (foreign cargo remaining on board). However, in the case of cargo shipped ‘‘to order of [a named party],’’ the carrier must report this named ‘‘to order’’ party as the consignee; and, if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial par- ty’s identity and contact information (address) in the ‘‘Notify Party’’ field of the advance electronic data trans- mission to CBP, to the extent that the CBP-approved electronic data inter- change system is capable of receiving this data. The identification number will be a unique number assigned by CBP upon implementation of the Auto- mated Commercial Environment);
(x) The vessel name, country of docu- mentation, and official vessel number. (The vessel number is the International Maritime Organization number as- signed to the vessen( �
(xi) The foreign port where the cargo is laden on board;
(xii) Internationally recognized haz- ardous material code when such mate- rials are being shipped;
(xiii) Container numbers (for con- tainerized shipments);
(xiv) The seal numbers for all seals affixed to containers; and
(xv) Date of departure from foreign, as reflected in the vessel log (this ele- ment relates to the departure of the vessel from the foreign port with re- spect to which the advance cargo dec- laration is filed (see § 4.7(b)(2) or § 4.7(b)(4)); the time frame for reporting this data element will be either:
(A) No later than 24 hours after de- parture from the foreign port of lading, for those vessels that will arrive in the
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U.S. Customs and Border Protection, DHS; Treasury § 4.7b
United States more than 24 hours after sailing from that foreign port; or
(B) No later than the presentation of the permit to unlade (CBP Form 3171, or electronic equivalent), for those ves- sels that will arrive less than 24 hours after sailing from the foreign port of lading); and
(xvi) Time of departure from foreign, as reflected in the vessel log (see § 4.7a(c)(4)(xv) for the applicable foreign port and the time frame within which this data element must be reported to CBP).
(d) Crew List. The Crew List shall be completed in accordance with the re- quirements of applicable Department of Homeland Security (DHS) regula- tions administered by CBP (8 CFR part 251).
(e) Passenger List. (1) The Passenger List shall be completed in accordance with § 4.50 and with the requirements of applicable DHS regulations adminis- tered by CBP (8 CFR part 231), and the following certification shall be placed on its last page:
I certify that CBP baggage declaration re- quirements have been made known to incom- ing passengers; that any required CBP bag- gage declarations have been or will simulta- neously herewith be filed as required by law and regulation with the proper CBP officer; and that the responsibilities devolving upon this vessel in connection therewith, if any, have been or will be discharged as required by law or regulation before the proper CBP officer. I further certify that there are no steerage passengers on board this vessel (46 U.S.C. 151–163).
———————————— Master
(2) If the vessel is carrying steerage passengers, the reference to steerage passengers shall be deleted from the certification, and the master shall comply with the requirements of § 4.50.
(3) If there are no steerage passengers aboard upon arrival, the listing of the passengers may be in the form of a ves- sel ‘‘souvenir passenger list,’’ or simi- lar list, in which the names of the pas- sengers are listed alphabetically and to which the certificate referred to in paragraph (e)(1) of this section is at- tached.
(4) All baggage on board a vessel not accompanying a passenger and the marks or addresses thereof shall be
listed on the last sheet of the passenger list under the caption ‘‘Unaccompanied baggage.’’
(f) Failure to provide manifest informa- tion; penalties/liquidated damages. Any master who fails to provide manifest information as required by this sec- tion, or who presents or transmits elec- tronically any document required by this section that is forged, altered or false, may be liable for civil penalties as provided under 19 U.S.C. 1436, in ad- dition to damages under the inter- national carrier bond of $5,000 for each violation discovered. In addition, if any non-vessel operating common carrier (NVOCC) as defined in § 4.7(b)(3)(ii) elects to transmit cargo declaration in- formation to CBP electronically, and fails to do so as required by this sec- tion, or transmits electronically any document required by this section that is forged, altered or false, such NVOCC may be liable for liquidated damages as provided in § 113.64(c) of this chapter of $5,000 for each violation discovered.
[T.D. 71–169, 36 FR 12602, July 2, 1971, as amended by T.D. 73–27, 38 FR 2448, Jan. 26, 1973; T.D. 77–255, 42 FR 56320, Oct. 25, 1977; T.D. 79–31, 44 FR 5649, Jan. 29, 1979; T.D. 85– 123, 50 FR 29952, July 23, 1985; T.D. 89–58, 54 FR 20381, May 11, 1989; T.D. 93–66, 58 FR 44130, Aug. 19, 1993; T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 98–74, 63 FR 51287, Sept. 25, 1998; T.D. 02–62, 67 FR 66332, Oct. 31, 2002; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003; CBP Dec. 08– 46, 73 FR 71779, Nov. 25, 2008; CBP Dec. 11–10, 76 FR 27609, May 12, 2011]
§ 4.7b Electronic passenger and crew arrival manifests.
(a) Definitions. The following defini- tions apply for purposes of this section:
Appropriate official. ‘‘Appropriate offi- cial’’ means the master or commanding officer, or authorized agent, owner, or consignee, of a commercial vessel; this term and the term ‘‘carrier’’ are some- times used interchangeably.
Carrier. See ‘‘Appropriate official.’’ Commercial vessel. ‘‘Commercial ves-
sel’’ means any civilian vessel being used to transport persons or property for compensation or hire.
Crew member. ‘‘Crew member’’ means a person serving on board a vessel in good faith in any capacity required for normal operation and service of the voyage. In addition, the definition of
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19 CFR Ch. I (4–1–12 Edition)§ 4.7b
‘‘crew member’’ applicable to this sec- tion should not be applied in the con- text of other customs laws, to the ex- tent this definition differs from the meaning of ‘‘crew member’’ con- templated in such other customs laws.
Emergency. ‘‘Emergency’’ means, with respect to a vessel arriving at a U.S. port due to an emergency, an ur- gent situation due to a mechanical, medical, or security problem affecting the voyage, or to an urgent situation affecting the non-U.S. port of destina- tion that necessitates a detour to a U.S. port.
Ferry. ‘‘Ferry’’ means any vessel which is being used to provide trans- portation only between places that are no more than 300 miles apart and which is being used to transport only pas- sengers and/or vehicles, or railroad cars, which are being used, or have been used, in transporting passengers or goods.
Passenger. ‘‘Passenger’’ means any person being transported on a commer- cial vessel who is not a crew member.
United States. ‘‘United States’’ means the continental United States, Alaska, Hawaii, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mar- iana Islands (beginning November 28, 2009).
(b) Electronic arrival manifest—(1) Gen- eral requirement. Except as provided in paragraph (c) of this section, an appro- priate official of each commercial ves- sel arriving in the United States from any place outside the United States must transmit to Customs and Border Protection (CBP) an electronic pas- senger arrival manifest and an elec- tronic crew member arrival manifest. Each electronic arrival manifest:
(i) Must be transmitted to CPB at the place and time specified in paragraph (b)(2) of this section by means of an electronic data interchange system ap- proved by CBP. If the transmission is in US EDIFACT format, the passenger manifest and the crew member mani- fest must be transmitted separately; and
(ii) Must set forth the information specified in paragraph (b)(3) of this sec- tion.
(2) Place and time for submission—(i) General requirement. The appropriate of-
ficial must transmit each electronic arrival manifest required under para- graph (b)(1) of this section to the CBP Data Center, CBP Headquarters:
(A) In the case of a voyage of 96 hours or more, at least 96 hours before enter- ing the first United States port or place of destination;
(B) In the case of a voyage of less than 96 hours but at least 24 hours, prior to departure of the vessel;
(C) In the case of a voyage of less than 24 hours, at least 24 hours before entering the first U.S. port or place of destination; and
(D) In the case of a vessel that was not destined to the United States but was diverted to a U.S. port due to an emergency, before the vessel enters the U.S. port or place to which diverted; in cases of non-compliance, CBP will take into consideration that the carrier was not equipped to make the transmission and the circumstances of the emer- gency situation.
(ii) Amendment of crew member mani- fests. In any instance where a crew member boards the vessel after initial submission of the manifest under para- graph (b)(2)(i) of this section, the ap- propriate official must transmit amended manifest information to CBP reflecting the data required under paragraph (b)(3) of this section for the additional crew member. The amended manifest information must be trans- mitted to the CBP data Center, CBP Headquarters:
(A) If the remaining voyage time after initial submission of the manifest is 24 hours or more, at least 24 hours before entering the first U.S. port or place of destination; or
(B) In any other case, at least 12 hours before the vessel enters the first U.S. port or place of destination.
(3) Information required. Each elec- tronic arrival manifest required under paragraph (b)(1) of this section must contain the following information for all passengers and crew members, ex- cept that for commercial passenger vessels, the information specified in paragraphs (b)(3)(iv), (v), (x), (xii), (xiii), (xiv), (xvi), (xviii), and (xix) of this section must be included on the manifest only on or after October 4, 2005:
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U.S. Customs and Border Protection, DHS; Treasury § 4.7c
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F = female; M = male); (iv) Citizenship; (v) Country of residence; (vi) Status on board the vessel; (vii) Travel document type (e.g., P =
passport, A = alien registration); (viii) Passport number, if a passport
is required; (ix) Passport country of issuance, if a
passport is required; (x) Passport expiration date, if a
passport is required; (xi) Alien registration number, where
applicable; (xii) Address while in the United
States (number and street, city, state, and zip code), except that this informa- tion is not required for U.S. citizens, lawful permanent residents, crew mem- bers, or persons who are in transit to a location outside the United States;
(xiii) Passenger Name Record loca- tor, if available;
(xiv) Foreign port/place where trans- portation to the United States began (foreign port code);
(xv) Port/place of first arrival (CBP port code);
(xvi) Final foreign port/place of des- tination for in-transit passenger and crew member (foreign port code);
(xvii) Vessel name; (xviii) Vessel country of registry/flag; (xix) International Maritime Organi-
zation number or other official number of the vessel;
(xx) Voyage number (applicable only for multiple arrivals on the same cal- endar day); and
(xxi) Date of vessel arrival. (c) Exceptions. The electronic arrival
manifest requirement specified in para- graph (b) of this section is subject to the following conditions:
(1) No passenger or crew member manifest is required if the arriving commercial vessel is operating as a ferry;
(2) If the arriving commercial vessel is not transporting passengers, only a crew member manifest is required; and
(3) No passenger manifest is required for active duty U.S. military personnel onboard an arriving Department of De- fense commercial chartered vessel.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the passenger or crew member with the travel document information it is transmitting to CBP in accordance with this section in order to ensure that the information transmitted is correct, the document appears to be valid for travel to the United States, and the passenger or crew member is the person to whom the travel docu- ment was issued.
(e) Sharing of manifest information. In- formation contained in passenger and crew member manifests that is re- ceived by CBP electronically may, upon request, be shared with other Federal agencies for the purpose of pro- tecting national security. CBP may also share such information as other- wise authorized by law.
[CBP Dec. 05–12, 70 FR 17850, Apr. 7, 2005, as amended at CBP Dec.09–02, 74 FR 2836, Jan. 16, 2009; CBP Dec. 09–14, 74 FR 25388, May 28, 2009]
§ 4.7c Vessel stow plan. Vessel stow plan required. In addition
to the advance filing requirements pur- suant to §§ 4.7 and 4.7a of this part and the container status message require- ments pursuant to § 4.7d of this part, for all vessels subject to § 4.7(a) of this part, except for any vessel exclusively carrying break bulk cargo or bulk cargo as prescribed in § 4.7(b)(4) of this part, the incoming carrier must submit a vessel stow plan consisting of vessel and container information as specified in paragraphs (b) and (c) of this section within the time prescribed in para- graph (a) of this section via the CBP- approved electronic data interchange system.
(a) Time of transmission. Customs and Border Protection (CBP) must receive the stow plan no later than 48 hours after the vessel departs from the last foreign port. For voyages less than 48 hours in duration, CBP must receive the stow plan prior to arrival at the first U.S. port.
(b) Vessel information required to be re- ported. The following information must be reported for each vessel:
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19 CFR Ch. I (4–1–12 Edition)§ 4.7d
(1) Vessel name (including inter- national maritime organization (IMO) number);
(2) Vessel operator; and (3) Voyage number. (c) Container information required to be
reported. The following information must be reported for each container carried on each vessel:
(1) Container operator; (2) Equipment number; (3) Equipment size and type; (4) Stow position; (5) Hazmat code (if applicable); (6) Port of lading; and (7) Port of discharge. (d) Compliance date of this section. (1)
General. Subject to paragraph (d)(2) of this section, all affected ocean carriers must comply with the requirements of this section on and after January 26, 2010.
(2) Delay in compliance date of section. CBP may, at its sole discretion, delay the general compliance date set forth in paragraph (d)(1) of this section in the event that any necessary modifica- tions to the approved electronic data interchange system are not yet in place or for any other reason. Notice of any such delay will be provided in the FEDERAL REGISTER.
[CBP Dec. 08–46, 73 FR 71779, Nov. 25, 2008]
§ 4.7d Container status messages. (a) Container status messages required.
In addition to the advance filing re- quirements pursuant to §§ 4.7 and 4.7a of this part and the vessel stow plan re- quirements pursuant to § 4.7c of this part, for all containers destined to ar- rive within the limits of a port in the United States from a foreign port by vessel, the incoming carrier must sub- mit messages regarding the status of the events as specified in paragraph (b) of this section if the carrier creates or collects a container status message (CSM) in its equipment tracking sys- tem reporting that event. CSMs must be transmitted to Customs and Border Protection (CBP) within the time pre- scribed in paragraph (c) of this section via a CBP-approved electronic data interchange system. There is no re- quirement that a carrier create or col- lect any CSMs under this paragraph that the carrier does not otherwise cre- ate or collect on its own and maintain
in its electronic equipment tracking system.
(b) Events required to be reported. The following events must be reported if the carrier creates or collects a con- tainer status message in its equipment tracking system reporting that event:
(1) When the booking relating to a container which is destined to arrive within the limits of a port in the United States by vessel is confirmed;
(2) When a container which is des- tined to arrive within the limits of a port in the United States by vessel un- dergoes a terminal gate inspection;
(3) When a container, which is des- tined to arrive within the limits of a port in the United States by vessel, ar- rives or departs a facility (These events take place when a container enters or exits a port, container yard, or other facility. Generally, these CSMs are re- ferred to as ‘‘gate-in’’ and ‘‘gate-out’’ messages.);
(4) When a container, which is des- tined to arrive within the limits of a port in the United States by vessel, is loaded on or unloaded from a convey- ance (This includes vessel, feeder ves- sel, barge, rail and truck movements. Generally, these CSMs are referred to as ‘‘loaded on’’ and ‘‘unloaded from’’ messages);
(5) When a vessel transporting a con- tainer, which is destined to arrive within the limits of a port in the United States by vessel, departs from or arrives at a port (These events are commonly referred to as ‘‘vessel depar- ture’’ and ‘‘vessel arrival’’ notices);
(6) When a container which is des- tined to arrive within the limits of a port in the United States by vessel un- dergoes an intra-terminal movement;
(7) When a container which is des- tined to arrive within the limits of a port in the United States by vessel is ordered stuffed or stripped;
(8) When a container which is des- tined to arrive within the limits of a port in the United States by vessel is confirmed stuffed or stripped; and
(9) When a container which is des- tined to arrive within the limits of a port in the United States by vessel is stopped for heavy repair.
(c) Time of transmission. For each event specified in paragraph (b) of this section that has occurred, and for
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which the carrier creates or collects a container status message (CSM) in its equipment tracking system reporting that event, the carrier must transmit the CSM to CBP no later than 24 hours after the CSM is entered into the equipment tracking system.
(d) Contents of report. The report of each event must include the following:
(1) Event code being reported, as de- fined in the ANSI X.12 or UN EDIFACT standards;
(2) Container number; (3) Date and time of the event being
reported; (4) Status of the container (empty or
fuln( � (5) Location where the event took
place; and (6) Vessel identification associated
with the message if the container is as- sociated with a specific vessel.
(e) A carrier may transmit other con- tainer status messages in addition to those required pursuant to paragraph (b) of this section. By transmitting ad- ditional container status messages, the carrier authorizes Customs and Border Protection (CBP) to access and use those data.
(f) Compliance date of this section. (1) General. Subject to paragraph (f)(2) of this section, all affected ocean carriers must comply with the requirements of this section on and after January 26, 2010.
(2) Delay in compliance date of section. CBP may, at its sole discretion, delay the general compliance date set forth in paragraph (f)(1) of this section in the event that any necessary modifications to the approved electronic data inter- change system are not yet in place or for any other reason. Notice of any such delay will be provided in the FED- ERAL REGISTER.
[CBP Dec. 08–46, 73 FR 71779, Nov. 25, 2008]
§ 4.8 Preliminary entry. (a) Generally. Preliminary entry al-
lows a U.S. or foreign vessel arriving under circumstances that require it to formally enter, to commence lading and unlading operations prior to mak- ing formal entry. Preliminary entry may be accomplished electronically pursuant to an authorized electronic data interchange system, or by any other means of communication ap-
proved by the Customs and Border Pro- tection (CBP).
(b) Requirements and conditions. Pre- liminary entry must be made in com- pliance with § 4.30, and may be granted prior to, at, or subsequent to arrival of the vessel. The granting of preliminary vessel entry by Customs at or subse- quent to arrival of the vessel, is condi- tioned upon the presentation to and ac- ceptance by Customs of all forms, elec- tronically or otherwise, comprising a complete manifest as provided in § 4.7, except that the Cargo Declaration, CBP Form 1302, must be presented to Customs electronically in the manner provided in § 4.7(b)(2) or (4). Vessels seeking preliminary entry in advance of arrival must do so: By presenting to Customs the electronic equivalent of a complete CBP Form 1302 (Cargo Dec- laration), in the manner provided in § 4.7(b)(2) or (4), showing all cargo on board the vessel; and by presenting CBP Form 3171 electronically no less than 48 hours prior to vessel arrival. The CBP Form 3171 will also serve as notice of intended date of arrival. The port director may allow for the presen- tation of the CBP Form 1302 and CBP Form 3171 less than 48 hours prior to arrival in order to grant advanced pre- liminary entry if a vessel voyage takes less than 48 hours to complete from the last foreign port to the first U.S. port, or if other reasonable circumstances warrant. Preliminary entry granted in advance of arrival will become effec- tive upon arrival at the port granting preliminary entry. Additionally, Cus- toms must receive confirmation of a vessel’s estimated time of arrival in a manner acceptable to the port director.
[T.D. 00–4, 65 FR 2872, Jan. 19, 2000, as amend- ed by T.D. 02–62, 67 FR 66332, Oct. 31, 2002; CBP Dec. 11–10, 76 FR 27609, May 12, 2011]
§ 4.9 Formal entry. (a) General. Section 4.3 provides
which vessels are subject to formal entry and where and when entry must be made. The formal entry of an Amer- ican vessel is governed by section 434, Tariff Act of 1930 (19 U.S.C. 1434). The term ‘‘American vessel’’ means a vessel of the United States (see § 4.0(b)) as well as, when arriving by sea, a vessel entitled to be documented except for its size (see § 4.0(c)). The formal entry
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19 CFR Ch. I (4–1–12 Edition)§ 4.10
of a foreign vessel arriving within the limits of any CBP port is also governed by section 434, Tariff Act of 1930 (19 U.S.C. 1434). Alternatively, information necessary for formal entry may be transmitted electronically pursuant to a system authorized by CBP.
(b) Procedures for American vessels. Under certain circumstances, Amer- ican vessels arriving in ports of the United States directly from other United States ports must make entry. Entry of such vessels is required when they have unentered foreign merchan- dise aboard. Report of arrival as pro- vided in § 4.2 of this part, together with presenting a completed CBP Form 1300 (Vessel Entrance or Clearance State- ment), satisfies all entry requirements for the subject vessels.
(c) Delivery of foreign vessel document. The master of any foreign vessel will exhibit the vessel’s document to the port director on or before the entry of the vessel. After the net tonnage has been noted, the document may be de- livered to the consul of the nation to which such vessel belongs, in which event the vessel master will certify to the port director the fact of such deliv- ery (see section 434, Tariff Act of 1930, as amended (19 U.S.C. 1434), as applied through section 438, Tariff Act of 1930, as amended (19 U.S.C. 1438)). If not de- livered to the consul, the document will be deposited in the customhouse. Whether delivered to the foreign consul or deposited at the customhouse, the document will not be delivered to the master of the foreign vessel until clear- ance is granted under § 4.61. It will not be lawful for any foreign consul to de- liver to the master of any foreign ves- sel the register, or document in lieu thereof, deposited with him in accord- ance with the provisions of 19 U.S.C. 1434 until such master will produce to him a clearance in due form from the director of the port where such vessel has been entered. Any consul violating the provisions of this section is liable to a fine of not more than $5,000 (sec- tion 438, Tariff Act of 1930, as amended; 19 U.S.C. 1438).
(d) Failure to make required entry; pen- alties. Any master who fails to make entry as required by this section or who presents or transmits electroni- cally any document required by this
section that is forged, altered, or false, may be liable for certain civil penalties as provided under 19 U.S.C. 1436, in ad- dition to penalties applicable under other provisions of law. Further, any vessel used in connection with any such violation is subject to seizure and forfeiture.
[T.D. 00–4, 65 FR 2873, Jan. 19, 2000; T.D. 00– 22, 65 FR 16515, Mar. 29, 2000; CBP Dec. 10–33, 75 FR 69585, Nov. 15, 2010]
§ 4.10 Request for overtime services. Request for overtime services in con-
nection with entry or clearance of a vessel, including the boarding of a ves- sel in accordance with § 4.1 shall be made on Customs Form 3171. (See § 24.16 of this chapter regarding pleas- ure vessels.) Such request for overtime services must specify the nature of the services desired and the exact times when they will be needed, unless a term special license (unlimited or lim- ited to the service requested) has been issued (see § 4.30(g)) and arrangements are made locally so that the proper Customs officer will be notified during official hours in advance of the ren- dering of the services as to the nature of the services desired and the exact times they will be needed. Such request shall not be approved (previously issued term special licenses shall be re- voked) unless the carrier complies with the provisions of paragraphs (l) and (m) of § 4.30 regarding terminal facilities and employee lists, respectively, and the required cash deposit or bond, on Customs Form 301, containing the bond conditions set forth in § 113.64 of this chapter, has been received. Separate bonds shall be required if overtime services are requested by different principals.
[T.D. 72–189, 37 FR 13975, July 15, 1972, as amended by T.D. 84–213, 49 FR 41163, Oct. 19, 1984; T.D. 92–74, 57 FR 35751, Aug. 11, 1992]
§ 4.11 Sealing of stores. Upon the arrival of a vessel from a
foreign port, or a vessel engaged in the foreign trade from a domestic port, sea stores and ship’s stores not required for immediate use or consumption on board while the vessel is in port and ar- ticles acquired abroad by officers and members of the crew, for which no per- mit to land has been issued, shall be
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U.S. Customs and Border Protection, DHS; Treasury § 4.14
placed under seal, unless the Customs officer is of the opinion that the cir- cumstances do not require such action. Customs inspectors in charge of the vessel, from time to time, as in their judgment the necessity of the case re- quires, may issue stores from under seal for consumption on board the ves- sel by its passengers and crew. (See § 4.39.)
§ 4.12 Explanation of manifest discrep- ancy.
(a)(1) Vessel masters or agents shall notify the port director on Customs Form 5931 of shortages (merchandise manifested, but not found) or overages (merchandise found, but not mani- fested) of merchandise.
(2) Shortages shall be reported to the port direct by the master or agent of the vessel by endorsement on the im- porter’s claim for shortage on Customs Form 5931 as provided for in § 158.3 of this chapter, or within 60 days after the date of entry of the vessel, whichever is later. Satisfactory evidence to support the claim of nonimportation or of prop- er disposition or other corrective ac- tion (see § 4.34) shall be obtained by the master or agent and shall be retained in the carrier’s file for one year.
(3) Overages shall be reported to the port director within 60 days after the date of entry of the vessel by comple- tion of a post entry or suitable expla- nation of corrective action (see § 4.34) on the Customs Form 5931.
(4) The port director shall imme- diately advise the master or agent of those discrepancies which are not re- ported by the master or agent. Notifi- cation may be in any appropriate man- ner, including the furnishing of a copy of Customs Form 5931 to the master or agent. The master or agent shall satis- factorily resolve the matter within 30 days after the date of such notifica- tion, or within 60 days after entry of the vessel, whichever is later.
(5) Unless the required notification and explanation is made timely and the port director is satisfied that the dis- crepancies resulted from clerical error or other mistake and that there has been no loss of revenue (and in the case of a discrepancy not initially reported by the master or agent that there was a valid reason for failing to so report),
applicable penalties under section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584), shall be assessed (see § 162.31 of this chapter). For purposes of this section, the term ‘‘clerical error’’ is defined as a non-negligent, inad- vertent, or typographical mistake in the preparation, assembly, or submis- sion (electronically or otherwise) of the manifest. However, repeated simi- lar manifest discrepancies by the same parties may be deemed the result of negligence and not clerical error or other mistake. For the purpose of as- sessing applicable penalties, the value of the merchandise shall be determined as prescribed in § 162.43 of this chapter. The fact that the master or owner had no knowledge of a discrepancy shall not relieve him from the penalty.
(b) Except as provided in paragraph (c) of this section, a correction in the manifest shall not be required in the case of bulk merchandise if the port di- rector is satisfied that the difference between the manifested quantity and the quantity unladen, whether the dif- ference constitutes an overage or a shortage, is an ordinary and usual dif- ference properly attributable to ab- sorption of moisture, temperature, faulty weighing at the port of lading, or other similar reason. A correction in the manifest shall not be required be- cause of discrepancies between marks or numbers on packages of merchan- dise and the marks or numbers for the same packages as shown on the mani- fest of the importing vessel when the quantity and description of the mer- chandise in such packages are cor- rectly given.
(c) Manifest discrepancies (shortages and overages) of petroleum and petro- leum products imported in bulk shall be reported on Customs Form 5931, if the discrepancy exceeds one percent.
[T.D. 80–142, 45 FR 36383, May 30, 1980, as amended by T.D. 99–64, 64 FR 43265, Aug. 10, 1999; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 4.13 [Reserved]
§ 4.14 Equipment purchases by, and re- pairs to, American vessels.
(a) General provisions and applica- bility—(1) General. Under section 466, Tariff Act of 1930, as amended (19
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U.S.C. 1466), purchases for or repairs made to certain vessels while they are outside the United States are subject to declaration, entry, and payment of ad valorem duty. These requirements are effective upon the first arrival of affected vessels in the United States or Puerto Rico. The vessels subject to these requirements include those docu- mented under the U.S. law for the for- eign or coastwise trades, as well as those which were previously docu- mented under the laws of some foreign nation or are undocumented at the time that foreign shipyard repairs are performed, but which exhibit an intent to engage in those trades under CBP interpretations. Duty is based on ac- tual foreign cost. This includes the original foreign purchase price of arti- cles that have been imported into the United States and are later sent abroad for use.
(2) Expenditures not subject to declara- tion, entry, or duty. The following vessel repair expenditures are not subject to declaration, entry, or duty:
(i) Expenditures made in American Samoa, the Guantanamo Bay Naval Station, Guam, Puerto Rico, or the U.S. Virgin Islands because they are considered to have been made in the United States;
(ii) Reimbursements paid to members of the regular crew of a vessel for labor expended in making repairs to vessels; and
(iii) The cost of equipment, repair parts, and materials that are installed on a vessel documented under the laws of the United States and engaged in the foreign or coasting trade, if the instal- lation is done by members of the reg- ular crew of such vessel while the ves- sel is on the high seas, in foreign wa- ters, or in a foreign port, and does not involve foreign shipyard repairs by for- eign labor.
(3) Expenditures subject to declaration and entry but not duty. Under separate provisions of law, the cost of labor per- formed, and of parts and materials pro- duced and purchased in Israel are not subject to duty under the vessel repair statute. Additionally, expenditures made in Canada or in Mexico are not subject to any vessel repair duties. Furthermore, certain free trade agree- ments between the United States and
other countries also may reduce the duties on vessel repair expenditures made in foreign countries that are par- ties to those agreements, although the final duty amount may depend on each agreement’s schedule for phasing in those reductions. In these situations and others where there is no liability for duty, it is still required, except as otherwise required by law, that all re- pairs and purchases be declared and en- tered.
(b) Applicability to specific types of ves- sels—(1) Fishing vessels. As provided in § 4.15, vessels documented under U.S. law with a fishery endorsement are subject to vessel repair duties for cov- ered foreign expenditures. Undocu- mented American fishing vessels which are repaired, or for which parts, nets or equipment are purchased outside the U.S. are also liable for duty.
(2) Government-owned or chartered ves- sels. Vessels normally subject to the vessel repair statute because of docu- mentation or intended use are not ex- cused from duty liability merely be- cause they are either owned or char- tered by the U.S. Government.
(3) Vessels continuously away for two years or longer—(i) Liability for expendi- tures throughout entire absence from U.S. Vessels that continuously remain out- side the United States for two years or longer are liable for duty on any fish nets and netting purchased at any time during the entire absence. Vessels de- signed and used primarily for trans- porting passengers or merchandise, which depart the United States for the sole purpose of obtaining equipment, parts, materials or repairs remain fully liable for duty regardless of the dura- tion of their absence from the United States.
(ii) Liability for expenditures made dur- ing first six months of absence. Except as provided in paragraph (b)(3)(i) of this section, vessels that continuously re- main outside the United States for two years or longer are liable for duty only on those expenditures which are made during the first six months of their ab- sence. See paragraph (h)(3) of this sec- tion. However, even though some costs might not be dutiable because of the six-month rule, all repairs, materials, parts and equipment-related expendi- tures must be declared and entered.
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(c) Estimated duty deposit and bond re- quirements. Generally, the person au- thorized to submit a vessel repair dec- laration and entry must either deposit or transmit estimated duties or produce evidence of a bond on CBP Form 301 at the first United States port of arrival before the vessel will be permitted to depart from that port. A continuous or single entry bond of suf- ficient value to cover all potential duty on the foreign repairs and pur- chases must be identified by surety, number and amount on the vessel re- pair declaration which is submitted at the port of first arrival. At the time the vessel repair entry is submitted by the vessel operator to the appropriate VRU port of entry as defined in para- graph (g) of this section, that same identifying information must be identi- fied on the entry form. Sufficiency of the amount of the bond is within the discretion of CBP at the arrival port with claims for reduction in duty li- ability necessarily being subject to full consideration of evidence by CBP. CBP officials at the port of arrival may con- sult the appropriate Vessel Repair Unit (VRU) port of entry as identified in paragraph (g) of this section or the staff of the Cargo Security, Carriers & Immigration Branch, Office of Inter- national Trade in CBP Headquarters in setting sufficient bond amounts. These duty, deposit, and bond requirements do not apply to vessels which are owned or chartered by the United States Government and are actually being operated by employees of an agency of the Government. If operated by a private party for a Federal agency under terms whereby that private party is liable under the contract for payment of the duty, there must be a deposit or a bond filed in an amount adequate to cover the estimated duty.
(d) Declaration required. When a vessel subject to this section first arrives in the United States following a foreign voyage, the owner, master, or author- ized agent must submit a vessel repair declaration on CBP Form 226, a dual- use form used both for declaration and entry purposes, or must transmit its electronic equivalent. The declaration must be ready for presentation in the event that a CBP officer boards the vessel. If no foreign repair-related ex-
penses were incurred, that fact must be reported either on the declaration form or by approved electronic means. The CBP port of arrival receiving either a positive or negative vessel repair dec- laration or electronic equivalent will immediately forward it to the appro- priate VRU port of entry as identified in paragraph (g) of this section.
(e) Entry required. The owner, master, or authorized representative of the owner of any vessel subject to this sec- tion for which a positive declaration has been filed must submit a vessel re- pair entry on CBP Form 226 or trans- mit its electronic equivalent. The entry must show all foreign voyage ex- penditures for equipment, parts of equipment, repair parts, materials and labor. The entry submission must indi- cate whether it provides a complete or incomplete account of covered expendi- tures. The entry must be presented or electronically transmitted by the ves- sel operator to the appropriate VRU port of entry as identified in paragraph (g) of this section, so that it is received within ten calendar days after arrival of the vessel. Claims for relief from duty should be made generally as part of the initial submission, and evidence must later be provided to support those claims. Failure to submit full sup- porting evidence of cost within stated time limits, including any extensions granted under this section, is consid- ered to be a failure to enter.
(f) Time limit for submitting evidence of cost. A complete vessel repair entry must be supported by evidence showing the cost of each item entered. If the entry is incomplete when submitted, evidence to make it complete must be received by the appropriate VRU port of entry as identified in paragraph (g) of this section within 90 calendar days from the date of vessel arrival. That evidence must include either the final cost of repairs or, if the operator sub- mits acceptable evidence that final cost information is not yet available, initial or interim cost estimates given prior to or after the work was author- ized by the operator. The proper VRU port of entry may grant one 30-day ex- tension of time to submit final cost evidence if a satisfactory written ex- planation of the need for an extension is received before the expiration of the
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original 90-day submission period. All extensions will be issued in writing. In- adequate, vague, or open-ended re- quests will not be granted. Questions as to whether an extension should be granted may be referred to the Cargo Security, Carriers & Immigration Branch, Office of International Trade in CBP Headquarters by the VRU ports of entry. Any request for an extension beyond a 30-day grant issued by a VRU must be submitted through that unit to the Cargo Security, Carriers & Im- migration Branch, Office of Inter- national Trade, CBP Headquarters. In the event that all cost evidence is not furnished within the specified time limit, or is of doubtful authenticity, the VRU may refer the matter to the U.S. Immigration and Customs En- forcement to begin procedures to ob- tain the needed evidence. That agency may also investigate the reason for a failure to file or for an untimely sub- mission. Unexplained or unjustified delays in providing CBP with sufficient information to properly determine duty may result in penalty action as specified in paragraph (j) of this sec- tion. Extensions granted for the filing of necessary evidence may also extend the time for filing Applications for Re- lief (see paragraph (i)(1) of this sec- tion).
(g) Location and jurisdiction of vessel repair unit ports of entry. Vessel Repair Units (VRUs) are responsible for proc- essing vessel repair entries. VRUs are located in New York, New York; New Orleans, Louisiana; and San Francisco, California. The New York unit proc- esses vessel repair entries received from ports of arrival on the Great Lakes and the Atlantic Coast of the United States north of, but not includ- ing, those located in the State of Vir- ginia. The New Orleans unit processes vessel repair entries received from ports of arrival on the Atlantic Coast from and including those in the State of Virginia, southward, and from all United States ports of arrival on the Gulf of Mexico including ports in Puer- to Rico. The San Francisco unit proc- esses vessel repair entries received from all ports of entry on the Pacific Coast including those in Alaska and Hawaii.
(h) Justifications for relief from duty. Claims for relief from the assessment of vessel repair duties may be sub- mitted to CBP. Relief may be sought under paragraphs (a), (d), (e), or (h) of the vessel repair statute (19 U.S.C. 1466(a), (d), (e), or (h)), each paragraph of which relates to a different type of claim as further specified in para- graphs (h)(1)–(h)(4) of this section.
(1) Relief under 19 U.S.C. 1466(a). Re- quests for relief from duty under 19 U.S.C. 1466(a) consist of claims that a foreign shipyard operation or expendi- ture is not considered to be a repair or purchase within the terms of the vessel repair statute or as determined under judicial or administrative interpreta- tions. Example: a claim that the ship- yard operation is a vessel modification.
(2) Relief from duty under 19 U.S.C. 1466(d). Requests for relief from duty under 19 U.S.C. 1466(d) consist of claims that a foreign shipyard operation or ex- penditure involves any of the fol- lowing:
(i) Stress of weather or other casualty. Relief will be granted if good and suffi- cient evidence supports a finding that the vessel, while in the regular course of its voyage, was forced by stress of weather or other casualty, while out- side the United States, to purchase such equipment or make those repairs as are necessary to secure the safety and seaworthiness of the vessel in order to enable it to reach its port of destination in the United States. For the purposes of this paragraph, a ‘‘cas- ualty’’ does not include any purchase or repair made necessary by ordinary wear and tear, but does include the failure of a part to function if it is proven that the specific part was re- paired, serviced, or replaced in the United States immediately before the start of the voyage in question, and then failed within six months of that date.
(ii) U.S. parts installed by regular crew or residents. Relief will be granted if equipment, parts of equipment, repair parts, or materials used on a vessel were manufactured or produced in the United States and were purchased in the United States by the owner of the vessel. It is required under the statute that residents of the United States or
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members of the regular crew of the ves- sel perform any necessary labor in con- nection with such installations.
(iii) Dunnage. Relief will be granted if any equipment, equipment parts, ma- terials, or labor were used for the pur- pose of providing dunnage for the pack- ing or shoring of cargo, for erecting temporary bulkheads or other similar devices for the control of bulk cargo, or for temporarily preparing tanks for carrying liquid cargoes.
(3) Relief under 19 U.S.C. 1466(e). Re- quests for relief from duty under 19 U.S.C. 1466(e) relate in pertinent part to matters involving vessels normally subject to the vessel repair statute, but that continuously remain outside the United States for two years or longer. Vessels that continuously remain out- side the United States for two years or longer may qualify for relief from duty on expenditures made later than the first six months of their absence. See paragraph (b)(3)(ii) of this section.
(4) Relief under 19 U.S.C. 1466(h). Re- quests for relief from duty under 19 U.S.C. 1466(h) consist of claims that a foreign shipyard operation or expendi- ture involves any of the following:
(i) Expenditures on LASH barges. Re- lief will be granted with respect to the cost of equipment, parts, materials, or repair labor for Lighter Aboard Ship (LASH) operations accomplished abroad.
(ii) Certain spare repair parts or mate- rials. Relief will be granted with re- spect to the cost of spare repair parts or materials which are certified by the vessel owner or master to be for use on a cargo vessel, but only if duty was previously paid under the appropriate commodity classification(s) as found in the Harmonized Tariff Schedule of the United States when the article first en- tered the United States.
(iii) Certain spare parts necessarily in- stalled on a vessel prior to their first entry into the United States. Relief will be granted with respect to the cost of spare parts only, which have been nec- essarily installed prior to their first entry into the United States with duty payment under the appropriate com- modity classification(s) as found in the Harmonized Tariff Schedule of the United States.
(i) General procedures for seeking re- lief—(1) Applications for Relief. Relief from the assessment of vessel repair duty will not be granted unless an Ap- plication for Relief is filed with CBP. Relief will not be granted based merely upon a claim for relief made at the time of entry under paragraph (e) of this section. The filing of an Applica- tion for Relief is not required, nor is one required to be presented in any particular format, but if filed it must clearly present the legal basis for granting relief, as specified in para- graph (h) of this section. An Applica- tion must also state that all repair op- erations performed aboard a vessel dur- ing the one-year period prior to the current submission have been declared and entered. A valid Application is re- quired to be supported by complete evi- dence as detailed in paragraphs (i)(1)(i)–(vi) and (i)(2) of this section. Except as further provided in this para- graph, the deadline for receipt of an Application and supporting evidence is 90 calendar days from the date that the vessel first arrived in the United States following foreign operations. The pro- visions for extension of the period for filing required evidence in support of an entry, as set forth in paragraph (f) of this section, are applicable to exten- sion of the time period for filing Appli- cations for Relief as well. Applications must be addressed and submitted by the vessel operator to the appropriate VRU port of entry and will be decided in that unit. The VRUs may seek the advice of the Cargo Security, Carriers & Immigration Branch, Office of Inter- national Trade in CBP Headquarters with regard to any specific item or issue which has not been addressed by clear precedent. If no Application is filed or if a submission which does not meet the minimal standards of an Ap- plication for Relief is received, the duty amount will be determined with- out regard to any potential claims for relief from duty (see paragraph (h) of this section). Each Application for Re- lief must include copies of:
(i) Itemized bills, receipts, and in- voices for items shown in paragraph (e) of this section. The cost of items for which a request for relief is made must be segregated from the cost of the
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19 CFR Ch. I (4–1–12 Edition)§ 4.14
other items listed in the vessel repair entry;
(ii) Photocopies of relevant parts of vessel logs, as well as of any classifica- tion society reports which detail dam- age and remedies;
(iii) A certification by the senior offi- cer with personal knowledge of all rel- evant circumstances relating to cas- ualty damage (time, place, cause, and nature of damage);
(iv) A certification by the senior offi- cer with personal knowledge of all rel- evant circumstances relating to foreign repair expenditures (time, place, and nature of purchases and work per- formed);
(v) A certification by the master that casualty-related expenditures were necessary to ensure the safety and sea- worthiness of the vessel in reaching its United States port of destination; and
(vi) Any permits or other documents filed with or issued by any United States Government agency other than CBP regarding the operation of the ves- sel that are relevant to the request for relief.
(2) Additional evidence. In addition, copies of any other evidence and docu- ments the applicant may wish to pro- vide as evidentiary support may be submitted. Elements of applications which are not supported by required evidentiary elements will be considered fully dutiable. All documents sub- mitted must be certified by the master, owner, or authorized corporate officer to be originals or copies of originals, and if in a foreign language, they must be accompanied by an English trans- lation, certified by the translator to be accurate. Upon receipt of an Applica- tion for Relief by the VRU within the prescribed time limits, a determination of duties owed will be made. After a de- cision is made on an Application for Relief by a VRU, the applicant will be notified of the right to protest any ad- verse decision.
(3) Administrative protest. Following the determination of duty owing on a vessel repair entry, a protest may be filed under 19 U.S.C. 1514(a)(2) as the only and final administrative appeal. The procedures and time limits appli- cable to protests filed in connection with vessel repair entries are the same as those provided in part 174 of this
chapter. In particular, the applicable protest period will begin on the date of the issuance of the decision giving rise to the protest as reflected on the rel- evant correspondence from the appro- priate VRU.
(j) Penalties—(1) Failure to report, enter, or pay duty. It is a violation of the vessel repair statute if the owner or master of a vessel subject to this section willfully or knowingly neglects or fails to report, make entry, and pay duties as required; makes any false statements regarding purchases or re- pairs described in this section without reasonable cause to believe the truth of the statements; or aids or procures any false statements regarding any mate- rial matter without reasonable cause to believe the truth of the statement. If a violation occurs, the vessel, its tackle, apparel, and furniture, or a monetary amount up to their value as determined by CBP, is subject to sei- zure and forfeiture and is recoverable from the owner (see § 162.72 of this chapter).
(2) False declaration. If any person re- quired to file a vessel repair declara- tion or entry under this section, know- ingly and willfully falsifies, conceals or covers up by any trick, scheme, or de- vice a material fact, or makes any ma- terially false, fictitious or fraudulent statement or representation, or makes or uses any false writing or document knowing the same to contain any ma- terially false, fictitious or fraudulent statement, that person will be subject to the criminal penalties provided for in 18 U.S.C. 1001.
[66 FR 16397, Mar. 26, 2001, as amended at 74 FR 53651, Oct. 20, 2009]
EFFECTIVE DATE NOTE: At 77 FR 17332, Mar. 26, 2012, § 4.15 was amended by revising the section heading; paragraph (i)(3) is redesig- nated as paragraph (i)(4) and a new para- graph (i)(3) is added; andparagraph (j)(1) is amended by adding a new third sentence, ef- fective April 25, 2012. For the convenience of the user, the added and revised text is set forth as follows:
§ 4.14 Equipment purchases for, and repairs to, American vessels.
* * * * *
(i) * * * (3) Application for Relief; failure to file or de-
nial in whole or in part. If no Application for
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U.S. Customs and Border Protection, DHS; Treasury § 4.20
28 If such a vessel puts into a foreign port or place and only obtains bunkers, stores, or supplies suitable for a fishing voyage, it is not considered to have touched and traded there. Fish nets and netting are considered vessel equipment and not vessel supplies.
29-61 [Reserved]
Relief is filed, or if a timely filed Application for Relief is denied in whole or in part, the VRU will determine the amount of duty due and issue a bill to the party who filed the vessel repair entry. If the bill is not timely paid, interest will accrue as provided in § 24.3a(b)(1) of this chapter.
(j) * * * (1) * * * The owner or master of the vessel
who fails to timely pay the duty determined to be due is liable for interest as provided in § 24.3a(b)(1) of this chapter.
* * * * *
§ 4.15 Fishing vessels touching and trading at foreign places.
(a) Before any vessel documented with a fishery license endorsement shall touch and trade at a foreign port or place, the master shall obtain from the port director a permit on Customs Form 1379 to touch and trade. When a fishing vessel departs from the United States and there is an intent to stop at a foreign port (1) to lade vessel equipment which was preordered, (2) to purchase and lade vessel equipment, or (3) to purchase and lade vessel equip- ment to replace existing vessel equip- ment, the master of the vessel must ei- ther clear for that foreign port or ob- tain a permit to touch and trade, whether or not the vessel will engage in fishing on that voyage. 28 Purchases of such equipment, whether intended at the time of departure or not, are sub- ject to declaration, entry, and payment of duty pursuant to section 466 of the Tariff Act of 1930, as amended (19 U.S.C. 1466). The duty may be remitted if it is established that the purchases resulted from stress of weather or other casualty.
(b) Upon the arrival of a documented vessel with a fishery endorsement which has put into a foreign port or place, the master shall report its ar- rival, make entry, and conform in all respects to the regulations applicable in the case of a vessel arriving from a foreign port.
(c) If a vessel which has been granted a permit to touch and trade arrives at a port in the United States, whether or not the vessel has touched at a foreign port or place, such permit shall forth- with be surrendered to the port direc- tor.
(d) No permit to touch and trade shall be issued to a vessel which does not have a Certificate of Documenta- tion with a fishery license endorse- ment.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77–28, 42 FR 3161, Jan. 17, 1977; T.D. 83– 214, 48 FR 46512, Oct. 13, 1983; T.D. 94–24, 59 FR 13200, Mar. 21, 1994; T.D. 95–77, 60 FR 50010, Sept. 27, 1995]
§ 4.16 [Reserved]
§ 4.17 Vessels from discriminating countries.
The prohibition against imports in, and the penalty of forfeiture of, certain vessels from countries which discrimi- nate against American vessels provided for in subsections 2 and 3 of paragraph J, section IV, Tariff Act of 1913, as amended by the act of March 4, 1915 (19 U.S.C. 130, 131), shall be enforced only in pursuance of specific instructions issued and published from time to time by the Secretary of the Treasury or such other officer as the Secretary may designate. (See also §§ 4.20(c) and 159.42 of this chapter.)
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17444, July 2, 1973]
TONNAGE TAX AND LIGHT MONEY
§ 4.20 Tonnage taxes. (a) Except as specified in § 4.21, a reg-
ular tonnage tax or duty of 2 cents per net ton, not to exceed in the aggregate 10 cents per net ton in any 1 year, shall be imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Cen- tral America, the West Indies, the Ba- hama Islands, the Bermuda Islands, the coast of South America bordering on the Caribbean Sea (considered to in- clude the mouth of the Orinoco River), or the high seas adjacent to the U.S. or the above listed foreign locations, and on all vessels (except vessels of the U.S., recreational vessels, and barges,
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19 CFR Ch. I (4–1–12 Edition)§ 4.20
as defined in § 2101 of Title 46) that de- part a U.S. port or place and return to the same port or place without being entered in the United States from an- other port or place, and regular ton- nage tax of 6 cents per net ton, not to exceed 30 cents per net ton per annum, shall be imposed at each entry on all vessels which shall be entered in any port of the United States from any other foreign port. In determining the port of origin of a voyage to the United States and the rate of tonnage tax, the following shall be used as a guide:
(1) When the vessel has proceeded in ballast from a port to which the 6-cent rate is applicable to a port to which the 2-cent rate applies and there has laden cargo or taken passengers, ton- nage tax upon entry in the United States shall be assessed at the 2-cent rate.
(2) The same rate shall be applied in a case in which the vessel has trans- ported cargo or passengers from a 6- cent port to a 2-cent port when all such cargo or passengers have been unladen or discharged at the 2-cent port, with- out regard to whether the vessel there- after has proceeded to the United States in ballast or with cargo or pas- sengers laden or taken on board at the 2-cent port.
(3) The 6-cent rate shall be applied when the vessel proceeds from a 2-cent port to a 6-cent port en route to the United States under circumstances similar to paragraph (a) (1) or (2) of this section.
(4) If the vessel arrives in the United States with cargo or passengers taken at two or more ports to which different rates are applicable, tonnage tax shall be collected at the higher rate.
(b) The tonnage year shall be com- puted from the date of the first entry of the vessel concerned, without regard to the rate of the payment made at that entry, and shall expire on the day preceding the corresponding date of the following year. There may be 5 pay- ments at the maximum (6 cent) and 5 at the minimum (2-cent) rate during a tonnage year, so that the maximum as- sessment of tonnage duty may amount to 40 cent per net ton for the tonnage year of a vessel engaged in alternating trade.
(c) A vessel shall also be subject on every entry from a foreign port or place, whether or not regular tonnage tax is payable on the particular entry, to the payment of a special tonnage tax and to the payment of light money at the rates and under the cir- cumstances specified in the following table:
Classes of vessels
Rate per net ton
Regular tax Special tax Lightmoney
Vessels of the United States: 1. Under provisional register, without regard to citizenship of officers ................. $.02 or $.06 .................. .................. 2. All others:
(i) If all the officers are citizens ...................................................................... .02 or .06 .................. .................. (ii) If any officer is not a citizen ...................................................................... .02 or .06 1 0.50 1 .50
Undocumented vessels which are owned by citizens 2 ................................................ .02 or .06 .50 3 .50 Foreign vessels:
1. Of nations whose vessels are exempted from special tax or light money ....... .02 or .06 .................. .................. 2. All others:
(i) Built in the U.S ........................................................................................... .02 or .06 .30 .50 (ii) Not built in the U.S .................................................................................... .02 or .06 .50 .50 (iii) In addition to (i) or (ii) of 2., Foreign Vessels, when entering from a for-
eign port or place where vessels of the U.S. are not ordinarily permitted to enter and trade 3a .................................................................................... .02 or .06 4 2.00 4 .50
1 This does not apply on the first arrival of a vessel in a port of the United States from a foreign or intercoastal voyage if all the officers who are not citizens are below the grade of master and are filling vacancies which occurred on the voyage.
2 This special tax and light money do not apply if the vessel is documented as a vessel of the United States before leaving the port.
3 This does not apply if the vessel is under a certificate of protection and the owner or master files with the port director the oath required by 46 U.S.C. App. 129. An unrecorded bill of sale is not such a document as will exempt a vessel from the pay- ment of light money under 46 U.S.C. App. 128, and the recording of such bill of sale after the arrival of the vessel is not suffi- cient to relieve it from the payment of the tax.
3a The Democratic People’s Republic of Korea (North Korea), does not ordinarily permit vessels of the United States to enter and trade.
4 This is to be collected on each entry of a vessel from such a port or place.
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U.S. Customs and Border Protection, DHS; Treasury § 4.21
(d) Tonnage tax shall be imposed upon a vessel even though she enters a port of the United States only for or- ders.
(e) The fact that a vessel passes through the Panama Canal does not af- fect the rate of tonnage tax otherwise applicable to the vessel.
(f) For the purpose of computing ton- nage tax, the net tonnage of a vessel stated in the vessel’s marine document shall be accepted unless (1) such state- ment is manifestly wrong, in which case the net tonnage shall be esti- mated, pending admeasurement of the vessel, or the tonnage reported for her by any recognized classification soci- ety may be accepted, or (2) an appendix is attached to the marine document showing a net tonnage ascertained under the so-called ‘‘British rules’’ or the rules of any foreign country which have been accepted as substantially in accord with the rules of the United States, in which case the tonnage so shown may be accepted and the date the appendix was issued shall be noted on the tonnage tax certificate, Cus- toms Form 1002, and on the Vessel En- trance or Clearance Statement, Cus- toms Form 1300. For the purpose of computing tonnage tax on a vessel with a tonnage mark and dual ton- nages, the higher of the net tonnages stated in the vessel’s marine document or tonnage certificate shall be used un- less the Customs officer concerned is satisfied by report of the boarding offi- cer, statement or certificate of the master, or otherwise that the tonnage mark was not submerged at the time of arrival. Whether the vessel has a ton- nage mark, and if so, whether the mark was submerged on arrival, shall be noted on Customs Form 1300 by the boarding officer.
(g) The decision of the Commissioner of Customs is the final administrative decision on any question of interpreta- tion relating to the collection of ton- nage tax or to the refund of such tax when collected erroneously or illegally, and any question of doubt shall be re- ferred to him for instructions.
(h) Any person adversely affected by a decision of the Commissioner of Cus- toms relating to the collection of ton- nage tax, or to the refund of such tax when collected erroneously or illegally,
may appeal the decision in the Court of International Trade provided that the appeal action is commenced in accord- ance with the rules of the Court within 2 years after the cause of action first accrues.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71–169, 36 FR 12603, July 2, 1971; T.D. 75– 110, 40 FR 21027, May 15, 1975; T.D. 76–280, 41 FR 42647, Sept. 28, 1976; T.D. 79–276, 44 FR 61956, Oct. 29, 1979; T.D. 82–145, 47 FR 35475, Aug. 16, 1982; T.D. 85–91, 50 FR 21429, May 24, 1985; T.D. 85–90, 50 FR 21430, May 24, 1985; T.D. 93–12, 58 FR 13196, Mar. 10, 1993; T.D. 95– 76, 60 FR 48028, Sept. 18, 1995; T.D. 97–82, 62 FR 51769, Oct. 3, 1997; T.D. 00–22, 65 FR 16515, Mar. 29, 2000; CBP Dec. 03–16, 68 FR 48280, Aug. 13, 2003]
§ 4.21 Exemptions from tonnage taxes. (a) Tonnage taxes and light money
shall be suspended in whole or in part whenever the President by proclama- tion shall so direct.
(b) The following vessels, or vessels arriving in the circumstances as de- fined below, shall be exempt from ton- nage tax and light money:
(1) It comes into port for bunkers (in- cluding water), sea stores, or ship’s stores; transacts no other business in the port; and departs within 24 hours after its arrival.
(2) It arrives in distress, even though required to enter.
(3) It is brought into port by orders of United States naval authorities and transacts no business while in port other than the taking on of bunkers, sea stores, or ship’s stores.
(4) It is a vessel of war or other vessel which is owned by, or under the com- plete control and management of the United States or the government of a foreign country, and which is not car- rying passengers or merchandise in trade or, if in ballast, which is not ar- riving from a foreign port during the usual course of its employment as a vessel engaged in trade.
(5) It is a yacht or other pleasure ves- sel not carrying passengers or mer- chandise in trade.
(6) It is engaged exclusively in sci- entific activities.
(7) It is engaged exclusively in laying or repairing cables.
(8) It is engaged in whaling or other fisheries, even though it may have en- tered a foreign port for fuel or supplies,
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19 CFR Ch. I (4–1–12 Edition)§ 4.22
if it did not carry passengers or mer- chandise in trade.
(9) It is a passenger vessel making three trips or more a week between a port of the United States and a foreign port.
(10) It is used exclusively as a ferry boat, including a car ferry.
(11) It is a tug with a Great Lakes li- cense endorsement on its vessel docu- ment, when towing vessels which are required to make entry.
(12) It is a documented vessel with a Great Lakes license endorsement which has touched at an intermediate foreign port or ports during a coastwise voyage.
(13) It enters otherwise than by sea from a foreign port at which tonnage or lighthouse duties or equivalent taxes are not imposed on vessels of the United States (applicable only where the vessel arrives from a port in the province of Ontario, Canada).
(14) It is a coastwise-qualified vessel solely engaged in the coastwise trade (although arriving from a foreign port or place, it is engaged in the transpor- tation of merchandise or passengers, or the towing of a vessel other than a ves- sel in distress, between points in the U.S. via a foreign point) (see §§ 4.80, 4.80a, 4.80b, and 4.92).
(15) It is a vessel entering directly from the Virgin Islands (U.S.), Amer- ican Samoa, the islands of Guam, Wake, Midway, Canton, or Kingman Reef, or Guantanamo Bay Naval Sta- tion.
(16) It is a vessel making regular daily trips between any port of the United States and any port in Canada wholly upon interior waters not navi- gable to the ocean, except that such a vessel shall pay tonnage taxes upon her first arrival in each calendar year.
(17) It is a vessel arriving at a port in the United States which, while pro- ceeding between ports in the United States, touched at a foreign port under circumstances which would have ex- empted it from making entry under section 441(4), Tariff Act of 1930, as
amended (19 U.S.C. 1441(4)), had it touched at a United States port.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 72–264, 37 FR 20317, Sept. 29, 1972; T.D. 75–110, 40 FR 21027, May 15, 1975; T.D. 75–206, 40 FR 34586, Aug. 18, 1975; T.D. 79–276, 44 FR 61956, Oct. 29, 1979; T.D. 83–214, 48 FR 46512, Oct. 13, 1983; T.D. 93–12, 58 FR 13197, Mar. 10, 1993]
§ 4.22 Exemptions from special ton- nage taxes.
Vessels of the following nations are exempted by treaties, Presidential proclamations, or orders of the Sec- retary of the Treasury from the pay- ment of any higher tonnage duties than are applicable to vessels of the United States and are exempted from the payment of light money:
Algeria Antigua and Barbuda Arab Republic of
Egypt Argentina Australia Austria Bahamas, The Bahrain Bangladesh Barbados Belgium Belize Bermuda Bolivia Brazil Bulgaria Burma Canada Chile Colombia Cook Islands Costa Rica Cuba Cyprus Czechoslovakia Denmark (including
the Faeroe Islands) Dominica Dominican Republic Ecuador El Salvador Estonia Ethiopia Fiji Finland France Gambia, The German Democratic
Republic German Federal
Republic Ghana
Great Britain (including the Cayman Islands)
Greece Greenland Guatemala Guinea, Republic of Guyana Haiti Honduras Hong Kong Hungarian People’s
Republic Iceland India Indonesia Iran Iraq Ireland (Eire) Israel Italy Ivory Coast, Republic
of Jamaica Japan Kenya Korea Kuwait Latvia Lebanon Liberia Libya Lithuania Luxembourg Malaysia Malta Marshall Islands,
Republic of Mauritius Mexico Monaco Morocco Nauru, Republic of
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U.S. Customs and Border Protection, DHS; Treasury § 4.24
Netherlands Netherlands Antilles New Zealand Nicaragua Nigeria Norway Oman Pakistan Panama Papua New Guinea Paraguay People’s Republic of
China Peru Philippines Poland Portugal Qatar Rumania Saudi Arabia Senegal Singapore, Republic Somali, Republic Spain Sri Lanka St. Vincent and The
Grenadines
Surinam, Republic of Sweden Switzerland Syrian Arab Republic Taiwan Thailand Togo Tonga Tunisia Turkey Tuvalu Union of South
Africa Union of Soviet
Socialist Republics United Arab
Emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Qaiwain)
Uruguay Vanuatu, Republic of Venezuela Yugoslavia Zaire
[28 FR 14596, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 4.22, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 4.23 Certificate of payment and cash receipt.
Upon each payment of tonnage tax or light money, the master of the vessel shall be given a certificate on Customs Form 1002 on which the control number of the cash receipt (Customs Form 368 or 368A) upon which payment was re- corded shall be written. This certifi- cate shall constitute the official evi- dence of such payment and shall be presented upon each entry during the tonnage year to establish the date of commencement of the tonnage year and to insure against overpayment. In the absence of the certificate, evidence of payment of tonnage tax shall be ob- tained from the port director to whom the payment was made.
[T.D. 85–71, 50 FR 15415, Apr. 18, 1985, as amended by T.D. 92–56, 57 FR 24943, June 12, 1992]
§ 4.24 Application for refund of ton- nage tax.
(a) The authority to make refunds in accordance with section 26 of the Act of June 26, 1884 (46 U.S.C. 8) of regular
tonnage taxes described in § 4.20(a) is delegated to the Directors of the ports where the collections were made. If any doubt exists, the case shall first be re- ferred to Headquarters, U.S. Customs Service for advice.
(b) Each application for refund of regular or special tonnage tax or light money prepared in accordance with this section shall be filed with the Cus- toms officer to whom payment was made. After verification of the perti- nent facts asserted in the claim, the application shall be forwarded with any necessary report or recommendation to the appropriate port director. Applica- tions for refund of special tonnage tax and light money (see § 4.20(c)) with the reports and recommendations sub- mitted therewith shall be forwarded by the port director to the Commissioner of Customs for decision. Any refund au- thorized by the Port Director under paragraph (a) of this section or any re- fund of special tonnae tax or light money authorized by the Commissioner of Customs shall be made by the appro- priate Customs officer. The records of tonnage tax shall be clearly noted to show each refund authorized.
(c) The application shall be a direct request for the refund of a definite sum, showing concisely the reasons therefor, the nationality and name of the vessel, and the date, place, and amount of each payment for which re- fund is requested. The application shall be made within 1 year from date of the payment. A protest against a payment shall not be accepted as an application for its refund.
(d) When the application is based upon a claim that more than five pay- ments of regular tax at either the 2- cent or the 6-cent rate have been made during a tonnage year, the application shall be supported by a statement from the appropriate Customs officer at the port where the application is submitted and from the appropriate Customs offi- cer at each port at which any claimed payment was made verifying the facts and showing in each case whether re- funds have been authorized.
(e) The application shall include a certificate by the owner or by the own- er’s agent that payment of tonnage tax at the applicable rate has been or will be made for each entry of the vessel on
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19 CFR Ch. I (4–1–12 Edition)§ 4.30
a voyage on which that rate is applica- ble before the end of the current ton- nage year, exclusive of any payment which has been refunded or which may be refunded as a result of such applica- tion.
(f) The owner or operator of the ves- sel involved, or other party in interest, may file with the port Director a peti- tion addressed to the Commissioner of Customs for a review of the port direc- tor’s decision on an application for re- fund of regular tonnage tax. Such peti- tion shall be filed in duplicate within 30 days from the date of notice of the initial decision, shall completely iden- tify the case, and shall set forth in de- tail the exceptions to the decision.
[T.D. 71–274, 36 FR 21025, Nov. 3, 1971, as amended by T.D. 95–77, 60 FR 50010, Sept. 27, 1995]
LANDING AND DELIVERY OF CARGO
§ 4.30 Permits and special licenses for unlading and lading.
(a) Except as prescribed in paragraph (f), (g), or (k) of this section or in § 123.8 of this chapter, and except in the case of a vessel exempt from entry or clear- ance fees under 19 U.S.C. 288, no pas- sengers, cargo, baggage, or other arti- cle shall be unladen from a vessel which arrives directly or indirectly from any port or place outside the Cus- toms territory of the U.S., including the adjacent waters (see § 4.6 of this part), or from a vessel which transits the Panama Canal and no cargo, bag- gage, or other article shall be laden on a vessel destined to a port or place out- side the Customs territory of the U.S., including the adjacent waters (see § 4.6 of this part) if Customs supervision of such lading is required, until the port director shall have issued a permit or special license therefore on Customs Form 3171 or electronically pursuant to an authorized electronic data inter- change system or other means of com- munication approved by the Customs Service.
(1) U.S. and foreign vessels arriving at a U.S. port directly from a foreign port or place are required to make entry, whether it be formal or, as pro- vided in § 4.8, preliminary, before the port director may issue a permit or special license to lade or unlade.
(2) U.S. vessels arriving at a U.S. port from another U.S. port at which formal entry was made may be issued a permit or special license to lade or unlade without having to make either prelimi- nary or formal entry at the second and subsequent ports. Foreign vessels ar- riving at a U.S. port from another U.S. port at which formal entry was made may be issued a permit or special li- cense to lade or unlade at the second and subsequent ports prior to formal entry without the necessity of making preliminary entry. In these cir- cumstances, after the master has re- ported arrival of the vessel, the port di- rector may issue the permit or special license or may, in his discretion, re- quire the vessel to be boarded, the mas- ter to make an oath or affirmation to the truth of the statements contained in the vessel’s manifest to the Customs officer who boards the vessel, and re- quire delivery of the manifest prior to issuing the permit.
(b) Application for a permit or spe- cial license will be made by the master, owner, or agent of the vessel on Cus- toms Form 3171, or electronically pur- suant to an authorized electronic data interchange system or other means of communication approved by the Cus- toms Service, and will specifically indi- cate the type of service desired at that time, unless a term permit or term spe- cial license has been issued. Vessels that arrive in a Customs port with more than one vessel carrier sharing or leasing space on board the vessel (such as under a vessel sharing or slot char- ter arrangement) are required to indi- cate on the CF 3171 all carriers on board the vessel and indicate whether each carrier is transmitting its cargo declaration electronically or is pre- senting it on the Customs Form 1302. In the case of a term permit or term spe- cial license, upon entry of each vessel, a copy of the term permit or special li- cense must be submitted to Customs during official hours in advance of the rendering of services so as to update the nature of the services desired and the exact times they will be needed. Permits must also be updated to reflect any other needed changes including those in the name of the vessel as well as the slot charter or vessel sharing parties. An agent of a vessel may limit
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U.S. Customs and Border Protection, DHS; Treasury § 4.30
62 ‘‘Before any such special license to unlade shall be granted, the master, owner, or agent of such vessel or vehicle, or the per- son in charge of such vehicle, shall be re- quired to deposit sufficient money to pay, or to give a bond in an amount to be fixed by the Secretary conditioned to pay, the com- pensation and expenses of the customs offi- cers and employees assigned to duty in con- nection with such unlading at night or on Sunday or a holiday, in accordance with the provisions of section 5 of the act of February 13, 1911, as amended (U.S.C. 1952 edition, title 19 sec. 267). In lieu of such deposit or bond the owner or agent of any vessel or vehicle or line of vessels or vehicles may execute a bond in an amount to be fixed by the Sec- retary of the Treasury to cover and include the issuance of special licenses for the unlad- ing of such vessels or vehicles for a period not to exceed one year. * * *’’ (Tariff Act of 1930, section 451, as amended, 19 U.S.C. 1451)
63-66 [Reserved]
his application to operations involved in the entry and unlading of the vessel or to operations involved in its lading and clearance. Such limitation will be specifically noted on the application.
(c) The request for a permit or a spe- cial license shall not be approved (pre- viously issued term permits or special licenses shall be revoked) unless the carrier complies with the provisions of paragraphs (l) and (m) of this section regarding terminal facilities and em- ployee lists, and the required cash de- posit or bond has been filed on Customs Form 301, containing the bond condi- tions set forth in § 113.64 of this chapter relating to international carriers. 62 When a carrier has on file a bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter relating to basic custodial bond conditions, no further bond shall be required solely by reason of the un- lading or lading at night or on a Sun- day or holiday of merchandise or bag- gage covered by bonded transportation entries. Separate bonds shall be re- quired if overtime services are re- quested by different principals.
(d) Except as prescribed in paragraph (f) or (g) of this section, a separate ap- plication for a permit or special license shall be filed in the case of each ar- rival.
(e) Stevedoring companies and others concerned in lading or unlading mer- chandise, or in removing or otherwise securing it, shall ascertain that the ap-
plicable preliminary Customs require- ments have been complied with before commencing such operation, since per- formance in the absence of such com- pliance render them severally liable to the penalties prescribed in section 453, Tariff Act of 1930, even though they may not be responsible for taking the action necessary to secure compliance.
(f) The port director may issue a term permit on Customs Form 3171, which will remain in effect until re- voked by the port director, terminated by the carrier, or automatically can- celled by termination of the supporting continuous bond, to unlade merchan- dise, passengers, or baggage, or to lade merchandise or baggage during official hours.
(g) The port director may issue a term special license on Customs Form 3171, which will remain in effect until revoked by the port director, termi- nated by the carrier, or automatically cancelled by termination of the sup- porting continuous bond, to unlade merchandise, passengers, or baggage, or to lade merchandise or baggage dur- ing overtime hours or on a Sunday or holiday when Customs supervision is required. (See § 24.16 of this chapter re- garding pleasure vessels.)
(h) A special license for the unlading or lading of a vessel at night or on a Sunday or holiday shall be refused by the port director if the character of the merchandise or the conditions or facili- ties at the place of unlading or lading render the issuance of such special li- cense dangerous to the revenue. In no case shall a special license for unlading or lading at night or on a Sunday or holiday be granted except on the ground of commercial necessity.
(i) The port director shall not issue a permit or special license to unlade cargo or equipment of vessels arriving directly or indirectly from any port or place outside the United States, except on compliance with one or more of the following conditions:
(1) The merchandise shall have been duly entered and permits issued; or
(2) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.64 of this chapter relating to inter- national carriers, or cash deposit shall have been given; or
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19 CFR Ch. I (4–1–12 Edition)§ 4.31
(3) The merchandise is to be dis- charged into the custody of the port di- rector as provided for in section 490(b), Tariff Act of 1930.
(j) Bonds are not required under this section for vessels owned by the United States and operated for its account.
(k) In the case of vessels of 5 net tons or over which are used exclusively as pleasure vessels and which arrive from any country, the port director in his discretion and under such conditions as he deems advisable may allow the re- quired application for unlading pas- sengers and baggage to be made orally, and may authorize his inspectors to grant oral permission for unlading at any time, and to grant requests on Cus- toms Form 3171 for overtime services.
(l) A permit to unlade pursuant to this part 4 or part 122 of this chapter shall not be granted unless the port di- rector determines that the applicant provides or the terminal at which the applicant will unlade the cargo pro- vides (1) sufficient space, capable of being locked, sealed, or otherwise se- cured, for the storage immediately upon unlading of cargo whose weight- to-value ratio renders it susceptible to theft or pilferage and of packages which have been broken prior to or in the course of unlading; and (2) an ade- quate number of vehicles, capable of being locked, sealed, or otherwise se- cured, for the transportation of such cargo or packages between the point of unlading and the point of storage. A term permit to unlade shall be revoked if the port director determines subse- quent to such issuance that the re- quirements of this paragraph have not been met.
(m) A permit to unlade pursuant to this part 4 or part 122 of this chapter shall not be granted to an importing carrier, and a term permit to unlade previously granted to such a carrier shall be revoked, (1) if such carrier, within 30 days after the date of receipt of a written demand by the port direc- tor, does not furnish a written list of the names, addresses, social security numbers, and dates and places of birth of persons it employs in connection with the unlading, storage and delivery of imported merchandise; or (2) if, hav- ing furnished such a list, the carrier does not advise the port director in
writing of the names, addresses, social security numbers, and dates and places of birth of any new personnel employed in connection with the unlading, stor- age and delivery of imported merchan- dise within 10 days after such employ- ment. If the employment of any such person is terminated, the carrier shall promptly advise the port director. For the purposes of this part, a person shall not be deemed to be employed by a car- rier if he is an officer or employee of an independent contractor engaged by a carrier to load, unload, transport or otherwise handle cargo.
(n) CBP will not issue a permit to unlade before it has received the cargo declaration information pursuant to § 4.7(b)(2) or (4) of this part. In cases in which CBP does not receive complete cargo declaration information from the carrier or a NVOCC in the manner, for- mat, and time frame required by § 4.7(b)(2) or (4), as appropriate, CBP may delay issuance of the permit to unlade the entire vessel until all re- quired information is received. CBP may also decline to issue a permit to unlade the specific cargo for which a cargo declaration is not received in a timely manner under § 4.7(b)(2) or (4). Further, where a carrier does not transmit a cargo declaration in the manner required by § 4.7(b)(2) or (4), preliminary entry pursuant to § 4.8(b) will be denied.
[28 FR 14596, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 4.30, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 4.31 Unlading or transshipment due to casualty.
(a) When any cargo or stores of a ves- sel have been unladen or transshipped at any place in the United States or its Customs waters other than a port of entry because of accident, stress of weather, or other necessity, no penalty shall be imposed under section 453 or 586(a), Tariff Act of 1930, if due notice is given to the director of the port at which the vessel thereafter first arrives and satisfactory proof is submitted to him as provided for in section 586(f), Tariff Act of 1930, as amended, regard- ing such accident, stress of weather, or
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U.S. Customs and Border Protection, DHS; Treasury § 4.33
other necessity. The port director may accept the certificates of the master and two or more officers or members of the crew of the vessel, of whom the per- son next to the master in command shall be one, as proof that the unlading or transshipment was necessary by rea- son of unavoidable cause.
(b) The port director may then per- mit entry of the vessel and its cargo and permit the unlading of the cargo in such place at the port as he may deem proper. Unless its transportation has been in violation of the coastwise laws, the cargo may be cleared through Cus- toms at the port where it is discharged or forwarded to the port of original destination under an entry for imme- diate transportation or for transpor- tation and exportation, as the case may be. All regulations shall apply in such cases as if the unlading and deliv- ery took place at the port of original destination.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 95–77, 60 FR 50010, Sept. 27, 1995]
§ 4.32 Vessels in distress; landing of cargo.
(a) When a vessel from a foreign port arrives in distress at a port other than that to which it is destined, a permit to land merchandise or baggage may be issued if such action is necessary. Mer- chandise and baggage so unladen shall be taken into Customs custody and, if it has not been transported in violation of the coastwise laws, may be entered and disposed of in the same manner as any other imported merchandise or may be reladen without entry to be carried to its destination on the vessel from which it was unladen, subject only to charges for storage and safe- keeping.
(b) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.64 of this chapter relating to inter- national carriers shall be given in an amount to be determined by the port director to insure the proper disposi- tion of the cargo, whether such cargo be dutiable or free.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41164, Oct. 19, 1984]
§ 4.33 Diversion of cargo. (a) Unlading at other than original port
of destination. A vessel may unlade cargo or baggage at an alternative port of entry to the port of original destina- tion if:
(1) It is compelled by any cause to put into the alternative port and the director of that port issues a permit for the unlading of cargo or baggage; or
(2) As a result of an emergency exist- ing at the port of destination, the port director authorizes the vessel to pro- ceed in accordance with the residue cargo bond procedure to the alter- native port. The owner or agent of the vessel shall apply for such authoriza- tion in writing, stating the reasons and agreeing to hold the port director and the Government harmless for the diver- sion.
(b) Disposition of cargo or baggage at emergency port. Cargo and baggage un- laden at the alternative port under the circumstances set forth in paragraph (a) of this section may be:
(1) Entered in the same manner as other imported cargo or baggage;
(2) Treated as unclaimed and stored at the risk and expense of its owner; or
(3) Reladen upon the same vessel without entry, for transportation to its original destination.
(c) Substitution of ports of discharge on manifest. After entry, the Cargo Dec- laration, Customs Form 1302, of a ves- sel may be changed at any time to per- mit discharge of manifested cargo at any domestic port in lieu of any other port shown on the Cargo Declaration, if:
(1) A written application for the di- version is made on the amended Cargo Declaration by the master, owner, or agent of the vessel to the director of the port where the vessel is located, after entry of the vessel at that port;
(2) An amended Cargo Declaration, under oath, covering the cargo, which it is desired to divert, is furnished in support of the application and is filed in such number of copies as the port di- rector shall require for local Customs purposes; and
(3) The certified traveling manifest is not altered or added to in any way by the master, owner, or agent of the ves- sel. When an application under para- graph (c)(1) of this section is approved,
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19 CFR Ch. I (4–1–12 Edition)§ 4.34
67 See § 141.69(c) of this chapter for the con- ditions under which such merchandise and goods removed from a port of intended entry under these or certain other circumstances may subsequently be cleared under a con- sumption entry which had been filed there- fore before the merchandise was removed from the port of intended entry.
68-69 [Reserved]
the port director shall securely attach an approved copy of the amended mani- fest to the traveling manifest and shall send one copy of the amended Cargo Declaration to the director of the port where the vessel’s bond was filed.
(d) Retention of cargo on board for later return to the United States. If, as the re- sult of a strike or other emergency at a United States port for which inward foreign cargo is manifested, it is de- sired to retain the cargo on board the vessel for discharge at a foreign port but with the purpose of having the cargo returned to the United States, an application may be made by the mas- ter, owner, or agent of the vessel to amend the vessel’s Cargo Declaration, Customs Form 1302, under a procedure similar to that described in paragraph (c) of this section, except that a foreign port shall be substituted for the domes- tic port of discharge. If the application is approved, it shall be handled in the same manner as an application filed under paragraph (c) of this section. However, before approving the applica- tion, the port director is authorized to require such bond as he deems nec- essary to insure that export control laws and regulations are not cir- cumvented.
[T.D. 77–255, 42 FR 56320, Oct. 25, 1977]
§ 4.34 Prematurely discharged, over- carried, and undelivered cargo.
(a) Prematurely landed cargo. Upon re- ceipt of a satisfactory written applica- tion from the owner or agent of a ves- sel establishing that cargo was pre- maturely landed and left behind by the importing vessel through error or emergency, the port director may per- mit inward foreign cargo remaining on the dock to be reladen on the next available vessel owned or chartered by the owner of the importing vessel for transportation to the destination shown on the Cargo Declaration, Cus- toms Form 1302, of the first vessel, pro- vided the importing vessel actually en- tered the port of destination of the pre- maturely landed cargo. Unless so for- warded within 30 days from the date of landing, the cargo shall be appro- priately entered for Customs clearance or for forwarding in bond; otherwise, it shall be sent to general order as un- claimed. If the merchandise is so en-
tered for Customs clearance at the port of unlading, or if it is so forwarded in bond, other than by the importing ves- sel or by another vessel owned or char- tered by the owner of the importing vessel, representatives of the import- ing vessel shall file at the port of un- lading a Cargo Declaration in duplicate listing the cargo. The port director shall retain the original and forward the duplicate to the director of the originally intended port of discharge.
(b) Overcarried cargo. Upon receipt of a satisfactory written application by the owner or agent of a vessel estab- lishing that cargo was not landed at its destination and was overcarried to an- other domestic port through error or emergency, the port director may per- mit the cargo to be returned in the im- porting vessel, or in another vessel owned or chartered by the owner of the importing vessel, to the destination shown on the Cargo Declaration, Cus- toms Form 1302, of the importing ves- sel, provided the importing vessel actu- ally entered the port of destination. 67
(c) Inaccessibly stowed cargo. Cargo so stowed as to be inaccessible upon ar- rival at destination may be retained on board, carried forward to another do- mestic port or ports, and returned to the port of destination in the import- ing vessel or in another vessel owned or chartered by the owner of the import- ing vessel in the same manner as other overcarried cargo.
(d) Application for forwarding cargo. When it is desired that prematurely landed cargo, overcarried cargo, or cargo so stowed as to be inaccessible, be forwarded to its destination by the importing vessel or by another vessel owned or chartered by the owner of the importing vessel in accordance with paragraph (a), (b), or (c) of this section, the required application shall be filed with the local director of the port of premature landing or overcarriage by the owner or agent of the vessel. The
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U.S. Customs and Border Protection, DHS; Treasury § 4.36
application shall be supported by a Cargo Declaration, Customs Form 1302, in such number of copies as the port di- rector may require. Whenever prac- ticable, the application shall be made on the face of the Cargo Declaration below the description of the merchan- dise. The application shall specify the vessel on which the cargo was im- ported, even though the forwarding to destination is by another vessel owned or chartered by the owner of the im- porting vessel, and all ports of depar- ture and dates of sailing of the import- ing vessel. The application shall be stamped and signed to show that it has been approved.
(e) Manifesting prematurely landed or overcarried cargo. One copy of the Cargo Declaration, Customs Form 1302, shall be certified by Customs for use as a substitute traveling manifest for the prematurely landed or overcarried cargo being forwarded as residue cargo, whether or not the forwarding vessel is also carrying other residue cargo. If the application for forwarding is made on the Cargo Declaration, the new sub- stitute traveling manifest shall be stamped to show the approval of the application. If the application is on a separate document, a copy thereof, stamped to show its approval, shall be attached to the substitute traveling manifest. An appropriate cross-ref- erence shall be placed on the original traveling manifest to show that the vessel has one or more substitute trav- eling manifests. A permit to proceed endorsed on a Vessel Entrance or Clearance Statement, Customs Form 1300, issued to the vessel transporting the prematurely landed or overcarried cargo to its destination shall make ref- erence to the nature of such cargo, identifying it with the importing ves- sel.
(f) Residue cargo procedure. A vessel with prematurely landed or overcarried cargo on board shall comply upon ar- rival at all domestic ports of call with all the requirements of part 4 relating to foreign residue cargo for domestic ports. The substitute traveling mani- fest, carried forward from port to port by the oncarrying vessel, shall be fi- nally surrendered at the port where the last portion of the prematurely landed or overcarried cargo is discharged.
(g) Cargo undelivered at foreign port and returned to the U.S. Merchandise shipped from a domestic port, but un- delivered at the foreign destination and returned, shall be manifested as ‘‘Un- delivered-to be returned to original for- eign destination,’’ if such a return is intended. The port director may issue a permit to retain the merchandise on board, or he may, upon written applica- tion of the steamship company, issue a permit on a Delivery Ticket, Customs Form 6043, allowing the merchandise to be transferred to another vessel for re- turn to the original foreign destina- tion. No charge shall be made against the bond on Customs Form 301, con- taining the bond conditions relating to international carriers set forth in § 113.64 of this chapter. The items shall be remanifested outward and an ex- planatory reference of the attending circumstances and compliance with ex- port requirements noted.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77–255, 42 FR 56321, Oct. 25, 1977; T.D. 85– 123, 50 FR 29952, July 23, 1985; T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 00–22, 65 FR 16515, Mar. 29, 2000]
§ 4.35 Unlading outside port of entry.
(a) Upon written application from the interested party, the port director con- cerned, if he considers it necessary, may permit any vessel laden with mer- chandise in bulk to proceed, after entry, to any place outside the port where the vessel entered which such port director may designate for the purpose of unlading such cargo.
(b) In such case a deposit of a sum sufficient to reimburse the Govern- ment for the compensation, travel, and subsistence expenses of the officers de- tailed to supervise the unlading and de- livery of the cargo may be required by the port director.
[28 FR 14596, Dec. 31, 1963, as amended at T.D. 95–77, 60 FR 50010, Sept. 27, 1995]
§ 4.36 Delayed discharge of cargo.
(a) When pursuant to section 457, Tariff Act of 1930, customs officers are placed on a vessel which has retained merchandise on board more than 25 days after the date of the vessel’s ar- rival, their compensation and subsist- ence expenses shall be reimbursed to
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19 CFR Ch. I (4–1–12 Edition)§ 4.37
70 ‘‘The limitation of time for unlading shall not extend to vessels laden exclusively with merchandise in bulk consigned to one consignee and arriving at a port for orders, but if the master of such vessel requests a longer time to discharge its cargo, the com- pensation of the inspectors or other customs officers whose services are required in con- nection with the unlading shall, for every day consumed in unlading in excess of twen- ty-five (25) days from the date of the vessel’s entry, be reimbursed by the master or owner of such vessel.’’ (Tariff Act of 1930, sec. 458; 19 U.S.C. 1458)
71-75 [Reserved]
the Government by the owner or mas- ter.
(b) The compensation of all Customs officers and employees assigned to su- pervise the discharge of a cargo within the purview of section 458, Tariff Act of 1930, 70 after the expiration of 25 days after the date of the vessel’s entry shall be reimbursed to the Government by the owner or master of the vessel.
(c) When cargo is manifested ‘‘for or- ders’’ upon the arrival of the vessel, no amendment of the manifest to show an- other port of discharge shall be per- mitted after 15 days after the date of the vessel’s arrival, except as provided for in § 4.33.
(d) All reimbursements payable in ac- cordance with this section shall be paid or secured to the port director before clearance is granted to the vessel.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 98– 74, 63 FR 51287, Sept. 25, 1998]
§ 4.37 General order. (a) Any merchandise or baggage regu-
larly landed but not covered by a per- mit for its release shall be allowed to remain at the place of unlading until the fifteenth calendar day after land- ing. No later than 20 calendar days after landing, the master or owner of the vessel or the agent thereof shall notify Customs of any such merchan- dise or baggage for which entry has not been made. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system. Failure to provide such notification may result in assessment of a monetary penalty of up to $1,000 per bill of lading against the master or owner of the vessel or the
agent thereof. If the value of the mer- chandise on the bill is less than $1,000, the penalty shall be equal to the value of such merchandise.
(b) Any merchandise or baggage that is taken into custody from an arriving carrier by any party under a Customs- authorized permit to transfer or in- bond entry may remain in the custody of that party for 15 calendar days after receipt under such permit to transfer or 15 calendar days after arrival at the port of destination. No later than 20 calendar days after receipt under the permit to transfer or 20 calendar days after arrival under bond at the port of destination, the party shall notify Cus- toms of any such merchandise or bag- gage for which entry has not been made. Such notification shall be pro- vided in writing or by any appropriate Customs-authorized electronic data interchange system. If the party fails to notify Customs of the unentered merchandise or baggage in the allotted time, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(c)(4) of this chapter).
(c) In addition to the notification to Customs required under paragraphs (a) and (b) of this section, the carrier (or any other party to whom custody of the unentered merchandise has been transferred by a Customs authorized permit to transfer or in-bond entry) shall provide notification of the pres- ence of such unreleased and unentered merchandise or baggage to a bonded warehouse certified by the port direc- tor as qualified to receive general order merchandise. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system and shall be provided within the applicable 20-day period specified in paragraph (a) or (b) of this section. It shall then be the re- sponsibility of the bonded warehouse proprietor to arrange for the transpor- tation and storage of the merchandise or baggage at the risk and expense of the consignee. The arriving carrier (or other party to whom custody of the merchandise was transferred by the ar- riving carrier under a Customs-author- ized permit to transfer or in-bond entry) is responsible for preparing a Customs Form (CF) 6043 (Delivery
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U.S. Customs and Border Protection, DHS; Treasury § 4.38
Ticket), or other similar Customs doc- ument designated by the port director or an electronic equivalent as author- ized by Customs, to cover the propri- etor’s receiptof the merchandise and its transport to the warehouse from the custody of the arriving carrier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry) (see § 19.9 of this chapter). Any unentered merchandise or baggage shall remain the responsibility of the carrier, master, or person in charge of the importing vessel or the agent thereof or party to whom the merchan- dise has been transferred under a Cus- toms authorized permit to transfer or in-bond entry, until it is properly transferred from his control in accord- ance with this paragraph. If the party to whom custody of the unentered mer- chandise or baggage has been trans- ferred by a Customs-authorized permit to transfer or in-bond entry fails to no- tify a Customs-approved bonded ware- house of such merchandise or baggage within the applicable 20-calendar-day period, he may be liable for the pay- ment of liquidated damages of $1,000 per bill of lading under the terms and conditions of his international carrier or custodial bond (see §§ 113.63(b), 113.63(c) and 113.64(b) of this chapter).
(d) If a carrier or any other party to whom custody of the unentered mer- chandise has been transferred by means of a Customs-authorized permit to transfer or in-bond entry fails to time- ly relinquish custody of the merchan- dise to a Customs-approved bonded General Order warehouse, the carrier or other party may be liable for liq- uidated damages equal to the value of that merchandise under the terms and conditions of his international carrier or custodial bond, as applicable.
(e) If the bonded warehouse operator fails to take possession of unentered and unreleased merchandise or baggage within five calendar days after receipt of notification of the presence of such merchandise or baggage under this sec- tion, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(a)(1) of this chapter). If the port director finds that the warehouse
operator cannot accept the goods be- cause they are required by law to be exported or destroyed (see § 127.28 of this chapter), or for other good cause, the goods will remain in the custody of the arriving carrier or other party to whom the goods have been transferred under a Customs-authorized permit to transfer or in-bond entry. In this event, the carrier or other party will be re- sponsible under bond for exporting or destroying the goods, as necessary (see §§ 113.63(c)(3) and 113.64(b) of this chap- ter).
(f) In ports where there is no bonded warehouse authorized to accept general order merchandise or if merchandise requires specialized storage facilities which are unavailable in a bonded fa- cility, the port director, after having received notice of the presence of unentered merchandise or baggage in accordance with the provisions of this section, shall direct the storage of the merchandise by the carrier or by any other appropriate means.
(g) Whenever merchandise remains on board any vessel from a foreign port more than 25 days after the date on which report of arrival of such vessel was made, the port director, as pre- scribed in section 457, Tariff Act of 1930, as amended (19 U.S.C. 1457), may take possession of such merchandise and cause it to be unladen at the ex- pense and risk of the owners of the merchandise. Any merchandise so un- laden shall be sent forthwith by the port director to a general order ware- house and stored at the risk and ex- pense of the owners of the merchan- dise.
(h) Merchandise taken into the cus- tody of the port director pursuant to section 490(b), Tariff Act of 1930, as amended (19 U.S.C. 1490(b)), shall be sent to a general order warehouse after 1 day after the day the vessel was en- tered, to be held there at the risk and expense of the consignee.
[T.D. 98–74, 63 FR 51287, Sept. 25, 1998, as amended by T.D. 02–65, 67 FR 68032, Nov. 8, 2002]
§ 4.38 Release of cargo. (a) No imported merchandise shall be
released from Customs custody until a permit to release such merchandise has been granted. Such permit shall be
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19 CFR Ch. I (4–1–12 Edition)§ 4.38
issued by the port director only after the merchandise has been entered and, except as provided for in § 141.102(d) or part 142 of this chapter, the duties thereon, if any, have been estimated and paid. Generally, the permit shall consist of a document authorizing de- livery of a particular shipment or an electronic equivalent. Alternatively, the permit may consist of a report which lists those shipments which have been authorized for release. This alter- native cargo release notification may be used when the manifest is not filed by the carrier through the Automated Manifest System, the entry has been filed through the Automated Broker Interface, and Customs has approved the cargo for release without submis- sion of paper documents after review- ing the entry data submitted electroni- cally through ABI and its selectivity criteria (see § 143.34). The report shall be posted in a conspicuous area to which the public has access in the cus- tomhouse at the port of entry where the cargo was imported.
(1) Where the cargo arrives by vessel, the report shall consist of the following data elements:
(i) Vessel name or code, if trans- mitted by the entry filer;
(ii) Carrier code; (iii) Voyage number, if transmitted
by the entry filer; (iv) Bill of lading number; (v) Quantity released; and (vi) Entry number (including filer
code). (2) Where the cargo arrives by air,
the report shall consist of the following data elements:
(i) Air waybill number; (ii) Quantity released; (iii) Entry number (including filer
code); (iv) Carrier code; and (v) Flight number, if transmitted by
the entry filer. (3) In the case of merchandise trav-
eling via in-bond movement, the report will contain the following data ele- ments:
(i) Immediate transportation bond number;
(ii) Carrier code; (iii) Quantity released; and (iv) Entry number (including filer
code).
When merchandise is released without proper permit before entry has been made, the port director shall issue a written demand for redelivery. The car- rier or facility operator shall redeliver the merchandise to Customs within 30 days after the demand is made. The port director may authorize unentered merchandise brought in by one carrier for the account of another carrier to be transferred within the port to the lat- ter carrier’s facility. Upon receipt of the merchandise the latter carrier as- sumes liability for the merchandise to the same extent as though the mer- chandise had arrived on its own vessel.
(b) When packages of merchandise bear marks or numbers which differ from those appearing on the Cargo Dec- laration, Customs Form 1302, of the im- porting vessel for the same packages and the importer or a receiving bonded carrier, with the concurrence of the importing carrier, makes application for their release under such marks or numbers, either for consumption or for transportation in bond under an entry filed therefor at the port of discharge from the importing vessel, the port di- rector may approve the application upon condition that (1) the contents of the packages be identified with an in- voice or transportation entry as set forth below and (2) the applicant fur- nish at his own expense any bonded cartage or lighterage service which the granting of the application may re- quire. The application shall be in writ- ing in such number of copies as may be required for local Customs purposes. Before permitting delivery of packages under such an application, the port di- rector shall cause such examination thereof to be made as will reasonably identify the contents with the invoice filed with the consumption entry. If the merchandise is entered for trans- portation in bond without the filing of an invoice, such examination shall be made as will reasonably identify the contents of the packages with the transportation entry.
(c) If the port director determines that, in a port or portion of a port, the volume of cargo handled, the incidence of theft or pilferage, or any other fac- tor related to the protection of mer- chandise in Customs custody requires such measures, he shall require as a
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U.S. Customs and Border Protection, DHS; Treasury § 4.39
condition to the granting of a permit to release imported merchandise that the importer or his agent present to the carrier or his agent a fully exe-
cuted pickup order in substantially the following format, in triplicate, to ob- tain delivery of any imported merchan- dise:
The pickup order shall contain a duly authenticated customhouse broker’s signature, unless it is presented by a person properly identified as an em- ployee or agent of the ultimate con- signee. When delivered quantities are verified by a Customs officer, he shall certify all copies of the pickup order, returning one to the importer or his agent and two to the carrier making delivery.
(d) When the provisions of paragraph (c) of this section are invoked by the port director and verification of deliv- ered quantities by Customs is required, a permit to release merchandise shall be effective as a release from Customs custody at the time that the delivery of the merchandise covered by the pickup order into the physical posses- sion of a subsequent carrier or an im- porter or the agent of either is com- pleted under the supervision of a Cus- toms officer, and only to the extent of the actual delivery of merchandise de-
scribed in such pickup order as verified by such Customs officer.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71–39, 36 FR 1892, Feb. 3, 1971; T.D. 77– 255, 42 FR 56321, Oct. 25, 1977; T.D. 91–46, 56 FR 22330, May 15, 1991; 56 FR 27559, June 14, 1991]
§ 4.39 Stores and equipment of vessels and crews’ effects; unlading or lad- ing and retention on board.
(a) The provisions of § 4.30 relating to unlading under a permit on Customs Form 3171 are applicable to the unlad- ing of articles, other than cargo or bag- gage, which have been laden on a vessel outside the Customs territory of the United States, regardless of the trade in which the vessel may be engaged at the time of unlading, except that such provisions do not apply to such articles which have already been entered.
(b) Any articles other than cargo or baggage landed for delivery for con- sumption in the United States shall be treated in the same manner as other imported articles. A notation as to the landing of such articles, together with
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19 CFR Ch. I (4–1–12 Edition)§ 4.40
76 ‘‘* * * The underwriters of abandoned merchandise and the salvors of merchandise saved from a wreck at sea or on or along a coast of the United States may be regarded as the consignees.’’* * * (Tariff Act of 1930, sec. 483; 19 U.S.C. 1483)
the number of the entry made therefor, shall be made on the vessel’s store list, but such notation shall not subject the articles to the requirement of being in- cluded in a post entry to the manifest.
(c) Bags or dunnage constituting equipment of a vessel may be landed temporarily and reladen on such vessel under Customs supervision without entry.
(d) Articles claimed to be sea or ships’ stores which are in excess of the reasonable requirements of the vessel on which they are found shall be treat- ed as cargo of such vessel.
(e) Under section 446, Tariff Act of 1930, port directors may permit nar- cotic drugs, except smoking opium, in reasonable quantities and properly list- ed as medical stores to remain on board vessels if satisfied that such drugs are adequately safeguarded and used only as medical supplies.
(f) Application for permission to transfer bunkers, stores or equipment as provided for in the proviso to sec- tion 446, Tariff Act of 1930, shall be made and the permit therefor granted on Customs Form 3171.
(g) Equipment of a vessel arriving ei- ther directly or indirectly from a for- eign port or place, if in need of repairs in the United States, may be unladen from and reladen upon the same vessel under the procedures set forth in § 4.30 relating to the granting of permits and special licenses on Customs Form 3171 (CF 3171). Adequate protection of the revenue is insured under the appro- priate International Carrier Bond dur- ing the period that equipment is tem- porarily landed for repairs (see § 113.64(b) of this chapter), and so resort to the procedures established for the temporary importation of merchandise under bond is unnecessary. Once equip- ment which has been unladen under the terms of a CF 3171 has been reladen on the same vessel, potential liability for that transaction existing under the bond will be extinguished.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 93–66, 58 FR 44130, Aug. 19, 1993; T.D. 00– 61, 65 FR 56790, Sept. 20, 2000]
§ 4.40 Equipment, etc., from wrecked or dismantled vessels.
Ship’s or sea stores, supplies, and equipment of a vessel wrecked either in
the waters of the United States or out- side such waters, on being recovered and brought into a United States port, and like articles landed from a vessel dismantled in a United States port shall be subject to the same Customs treatment as would apply if the arti- cles were landed from a vessel arriving in the ordinary course of trade. Parts of the hull and fittings recovered from a vessel which arrived in the United States in the course of navigation and was wrecked in the waters of the United States or was dismantled in this country are free of duties and im- port taxes, but if such articles are re- covered from vessels outside the waters of the United States and brought into a United States port, they shall be treat- ed as imported merchandise.
§ 4.41 Cargo of wrecked vessel. (a) Any cargo landed from a vessel
wrecked in the waters of the United States or on the high seas shall be sub- ject at the port of entry to the same entry requirements and privileges as the cargo of a vessel regularly arriving in the foreign trade. In lieu of a Cargo Declaration, Customs Form 1302, to cover such cargo, the owner, under- writer (if the merchandise has been abandoned to him), or the salvor of the merchandise shall make entry on Cus- toms Form 7501, and any such appli- cant shall be regarded as the consignee of the merchandise for Customs pur- poses. 76
(b) All such merchandise shall be taken into possession by the director of the port where it shall first arrive and be retained in his custody pending entry. If it is not entered by the person entitled to make entry, or is not dis- posed of pursuant to court order, it shall be subject to sale as unclaimed merchandise.
(c) If such merchandise is from a ves- sel which has been sunk in waters of the United States for 2 years or more and has been abandoned by the owner, any person who has salvaged the cargo
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U.S. Customs and Border Protection, DHS; Treasury § 4.52
77 ‘‘Whenever any vessel laden with mer- chandise, in whole or in part subject to duty, has been sunk in any river, harbor, bay, or waters subject to the jurisdiction of the United States, and within its limits, for the period of two years and is abandoned by the owner thereof, any person who may raise such vessel shall be permitted to bring any merchandise recovered therefrom into the port nearest to the place where such vessel was so raised free from the payment of any duty thereupon, but under such regulations as the Secretary of the Treasury may pre- scribe.’’ (Tariff Act of 1930, sec. 310; 19 U.S.C. 1310)
78 Salvors have an uncertain interest in the goods salved, dependent upon the decree of a competent tribunal, and have a presumptive right without such decree to possession of merchandise salved by them from abandoned wrecks. The salvors are entitled in either case to make entry of derelict or wrecked goods.
79-103 [Reserved]
shall be permitted to enter the mer- chandise at the port where the vessel was wrecked free of duty upon the facts being established to the satisfaction of the director of the port of entry. 77 Any other such merchandise is subject to the same tariff classification as like merchandise regularly imported in the ordinary course of trade.
(d) If the merchandise is libeled for salvage, 78 the port director shall notify the United States attorney of the claim of the United States for duties, and request him to intervene for such duties.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77–255, 42 FR 56321, Oct. 25, 1977; T.D. 87– 75, 52 FR 20066, May 29, 1987; T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
PASSENGERS ON VESSELS
§ 4.50 Passenger lists. (a) The master of every vessel arriv-
ing at a port of the United States from a port or place outside the Customs territory (see § 4.6 of this part) and re- quired to make entry, except a vessel arriving from Canada, otherwise than by sea, at a port on the Great Lakes, or their connections or tributary waters, shall submit passenger and crew lists, as required by § 4.7(a) of this part. If the vessel is arriving from noncontig- uous foreign territory and is carrying steerage passengers, the additional in-
formation respecting such passengers required by Customs and Immigration Form I–418 shall be included therein.
(b) A passenger within the meaning of this part is any person carried on a vessel who is not connected with the operation of such vessel, her naviga- tion, ownership, or business.
[28 FR 14596, Dec. 31, 1963 as amended by T.D. 71–169, 36 FR 12603, July 2, 1971; T.D. 82–145, 47 FR 35475, Aug. 16, 1982; T.D. 93–96, 58 FR 67316, Dec. 21, 1993]
§ 4.51 Reporting requirements for indi- viduals arriving by vessel.
(a) Arrival of vessel reported. Individ- uals on vessels, which have reported their arrival to Customs in accordance with19 U.S.C. 1433 and § 4.2 of this part, shall remain on board until authorized by Customs to depart. Upon departing the vessel, such individuals shall im- mediately report to a designated Cus- toms location together with all of their accompanying articles.
(b) Arrival of vessel not reported. Indi- viduals on vessels, which have not re- ported their arrival to Customs in ac- cordance with 19 U.S.C. 1433 and § 4.2 of this part, shall immediately notify Customs and report their arrival to- gether with appropriate information regarding the vessel, and shall present themselves and their accompanying ar- ticles at a designated Customs loca- tion.
(c) Departure from designated Customs location. Individuals required to report to designated Customs locations under this section shall not depart from such locations until authorized to do so by any appropriate Customs officer.
[T.D. 93–96, 58 FR 67316, Dec. 21, 1993]
§ 4.52 Penalties applicable to individ- uals.
Individuals violating any of the re- porting requirements of § 4.51 of this part or who present any forged, al- tered, or false document or paper to Customs in connection with this sec- tion, may be liable for certain civil penalties, as provided under 19 U.S.C. 1459, in addition to other penalties ap- plicable under other provisions of law. Further, if the violation of these re- porting requirements is intentional, upon conviction, additional criminal
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19 CFR Ch. I (4–1–12 Edition)§ 4.60
penalties may be applicable, as pro- vided by under 19 U.S.C. 1459, in addi- tion to other penalties applicable under other provisions of law.
[T.D. 93–96, 58 FR 67317, Dec. 21, 1993; 59 FR 1918, Jan. 13, 1994]
FOREIGN CLEARANCES
§ 4.60 Vessels required to clear.
(a) Unless specifically excepted by law, the following vessels must obtain clearance from CBP before departing from a port or place in the United States:
(1) All vessels departing for a foreign port or place;
(2) All foreign vessels departing for another port or place in the United States;
(3) All American vessels departing for another port or place in the United States that have foreign merchandise for which entry has not been made; and
(4) All vessels departing for points outside the territorial sea to visit a hovering vessel or to receive merchan- dise or passengers while outside the territorial sea, as well as foreign ves- sels delivering merchandise or pas- sengers while outside the territorial sea.
(b) The following vessels are not re- quired to clear:
(1) A documented vessel with a pleas- ure license endorsement or an undocu- mented American pleasure vessel (i.e., an undocumented vessel wholly owned by a United States citizen or citizens, whether or not it has a certificate of number issued by the State in which the vessel is principally used under 46 U.S.C. 1466–1467 and not engaged in trade nor violating the customs or navigation laws of the United States and not having visited any hovering vessel (see 19 U.S.C. 1709(d)).
(2) A vessel exempted from entry by section 441, Tariff Act of 1930. (See § 4.5.)
(3) A vessel of less than 5 net tons which departs from the United States to proceed to a contiguous country otherwise than by sea.
(c) Vessels which will merely transit the Panama Canal without transacting any business there will not be required to be cleared because of such transit.
(d) In the event that departure is de- layed beyond the second day after clearance, the delay must be reported within 72 hours after clearance to the port director who will note the fact of detention on the certificate of clear- ance and on the official record of clear- ance. When the proposed voyage is can- celed after clearance, the reason there- for must be reported in writing within 24 hours after such cancellation and the certificate of clearance and related papers must be surrendered.
(e) No vessel will be cleared for the high seas except, a vessel bound to an- other vessel on the high seas to—
(1) Transship export merchandise which it has transported from the U.S. to the vessel on the high seas; or
(2) Receive import merchandise from the vessel on the high seas and trans- port the merchandise to the U.S.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 79–276, 44 FR 61956, Oct. 29, 1979; T.D. 83– 214, 48 FR 46512, Oct. 13, 1983; T.D. 85–91, 50 FR 21429, May 24, 1985; T.D. 94–24, 59 FR 13200, Mar. 21, 1994; T.D. 95–77, 60 FR 50010, Sept. 27, 1995; T.D. 00–4, 65 FR 2873, Jan. 19, 2000; CBP Dec. 08-25, 73 FR 40725, July 16, 2008; CBP Dec. 10–33, 75 FR 69585, Nov. 15, 2010]
§ 4.61 Requirements for clearance. (a) Application for clearance. A clear-
ance application for a vessel intending to depart for a foreign port must be made by filing Customs Form 1300 (Vessel Entrance or Clearance State- ment) executed by the vessel master or other proper officer. The master, li- censed deck officer, or purser may ap- pear in person to clear the vessel, or the properly executed Customs Form 1300 may be delivered to the custom- house by the vessel agent or other per- sonal representative of the master. Necessary information may also be transmitted electronically pursuant to a system authorized by Customs. Clear- ance will be granted by Customs either on the Customs Form 1300 or by ap- proved electronic means. Customs port directors may permit the clearance of vessels at locations other than the cus- tomhouse, and at times outside of nor- mal business hours. Customs may take local resources into consideration in allowing clearance to be transacted on board vessels themselves or at other mutually convenient sites and times
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U.S. Customs and Border Protection, DHS; Treasury § 4.61
either within or outside of port limits. Customs must be satisfied that the place designated for clearance is suffi- ciently under Customs control at the time of clearance, and that the ex- penses incurred by Customs will be re- imbursed as authorized. Customs may require that advance notice of vessel departure be given prior to granting re- quests for optional clearance locations.
(b) When clearance required. Under certain circumstances, American ves- sels departing from ports of the United States directly for other United States ports must obtain Customs clearance. The clearance of such vessels is re- quired when they have merchandise aboard which is being transported in- bond, or when they have unentered for- eign merchandise aboard. For the pur- poses of the vessel clearance require- ments, merchandise transported in- bond does not include bonded ship’s stores or supplies. While American ves- sels transporting unentered foreign merchandise must fully comply with usual clearance procedures, American vessels carrying no unentered foreign merchandise but that have in-bond merchandise aboard may satisfy vessel clearance requirements by reporting intended departure within 72 hours prior thereto by any means of commu- nication that is satisfactory to the local Customs port director, and by presenting a completed Customs Form 1300 (Vessel Entrance or Clearance Statement). Also, the Customs officer may require the production of any doc- uments or papers deemed necessary for the proper inspection/examination of the vessel, cargo, passenger, or crew. Report of departure together with pro- viding information to Customs as spec- ified in this paragraph satisfies all clearance requirements for the subject vessels.
(c) Verification of compliance. Before clearance is granted to a vessel bound to a foreign port as provided in § 4.60 and this section, the port director will verify compliance with respect to the following matters:
(1) Accounting for inward cargo (see § 4.62).
(2) Outward Cargo Declarations; ship- pers export declarations (see § 4.63).
(3) Documentation (see § 4.0(c)).
(4) Verification of nationality and tonnage (see § 4.65).
(5) Verification of inspection (see § 4.66).
(6) Inspection under State laws (46 U.S.C. App. 97).
(7) Closed ports or places (see § 4.67). (8) Passengers (see § 4.68). (9) Shipping articles and enforcement
of Seamen’s Act (see § 4.69). (10) Medicine and slop chests. (11) Load line regulations (see § 4.65a). (12) Carriage of United States securi-
ties, etc. (46 U.S.C. App. 98). (13) Carriage of mail. (14) Public Health regulations (see
§ 4.70). (15) Inspection of vessels carrying
livestock (see § 4.71). (16) Inspection of meat, meat-food
products, and inedible fats (see § 4.72). (17) Neutrality exportation of arms
and munitions (see § 4.73). (18) Payment of State and Federal
fees and fees due the Government of the Virgin Islands of the United States (46 U.S.C. App. 100).
(19) Orders restricting shipping (see § 4.74).
(20) Estimated duties deposited or a bond given to cover duties on foreign repairs and equipment for vessels of the United States (see § 4.14).
(21) Illegal discharge of oil (see § 4.66a).
(22) Attached or arrested vessel. (23) Immigration laws. (24) Electronic receipt of required
vessel cargo information (see § 192.14(c) of this chapter).
(d) Vessel built for foreign account. A new vessel built in the United States for foreign account will be cleared under a certificate of record, Coast Guard Form 1316, in lieu of a marine document.
(e) Clearance not granted. Clearance will not be granted to any foreign ves- sel using the flag of the United States or any distinctive signs or markings indicating that the vessel is an Amer- ican vessel (22 U.S.C. 454a).
(f) Clearance in order of itinerary. Un- less otherwise provided in this section, every vessel bound for a foreign port or ports will be cleared for a definite port or ports in the order of its itinerary, but an application to clear for a port or
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19 CFR Ch. I (4–1–12 Edition)§ 4.62
place for orders, that is, for instruc- tions to masters as to destination of the vessel, may be accepted if the ves- sel is in ballast or if any cargo on board is to be discharged in a port of the same country as the port for which clearance is sought.
[T.D. 00–4, 65 FR 2874, Jan. 19, 2000; T.D. 00– 22, 65 FR 16515, Mar. 29, 2000; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003]
§ 4.62 Accounting for inward cargo. Inward cargo discrepancies shall be
accounted for and adjusted by correc- tion of the Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A, but the vessel may be cleared and the adjustment deferred if the discharging officer’s report has not been received. (See § 4.12.)
[T.D. 77–255, 42 FR 56322, Oct. 25, 1977, as amended by T.D. 84–193, 49 FR 35485, Sept. 10, 1984]
§ 4.63 Outward cargo declaration; shippers’ export declarations.
(a) No vessel shall be cleared directly for a foreign port, or for a foreign port by way of another domestic port or other domestic ports (see § 4.87(b)), un- less there has been filed with the ap- propriate Customs officer at the port from which clearance is being sought:
(1) A Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A. Copies of bills of lading or equivalent commercial documents relating to all cargo encompassed by the manifest must be attached in such manner as to constitute one document, together with a Vessel Entrance or Clearance Statement, Customs Form 1300, and export declarations as are re- quired by pertinent regulations of the Bureau of the Census, Department of Commerce; or
(2) An incomplete Cargo Declaration as provided for in § 4.75.
(b) Except as hereafter stated, the number of the export declaration cov- ering each shipment for which an au- thenticated export declaration is re- quired shall be shown on the Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A, in the marginal column headed ‘‘B/L No.’’ If an export declaration is not required for a shipment, a notation shall be made on the Cargo Declaration Out-
ward With Commercial Forms (Cus- toms Form 1302–A) describing the basis for the exemption with a reference to the number of the section in the Cen- sus Regulations (see 15 CFR 30.39, 30.50 through 30.57) where the particular ex- emption is provided. If shipments are exempt on the basis of value and des- tination, the appearance of the value and destination on a bill of lading or other commercial documents is accept- able as evidence of the exemption and reference to the applicable section in the Census Regulations is not required.
(c) The following minimal informa- tion shall be included on the Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A (other in- formation required to be on a Customs Form 1302–A as shown on the form itself must also be included thereon) or on attached copies of bills of lading or equivalent commercial documents:
(1) Name and address of shipper; (2) Description of the cargo (see para-
graph (d) of this section); (3) Number of packages and gross
weight (see paragraph (d) of this sec- tion);
(4) Name of vessel or carrier; (5) Port of exit (this shall be the port
where the merchandise is loaded on the vessen( � and
(6) Port of destination (this shall be the foreign port of discharge of the merchandise).
(d) If the bills of lading or equivalent commercial documents attached to the Customs Form 1302–A show on their face the cargo information required by columns 6, 7, and either column 8 or 9, of the Customs Form 1302–A, that in- formation need not be shown again on the Customs Form 1302–A. However, in that case, the cargo information must be incorporated by a suitable reference on the face of the Customs Form 1302– A such as ‘‘Cargo as per attached com- mercial documents.’’
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U.S. Customs and Border Protection, DHS; Treasury § 4.64
(e) For each shipment to be exported under an entry or withdrawal for ex- portation or for transportation and ex- portation, the Cargo Declaration Out- ward With Commercial Forms, Cus- toms Form 1302–A, or commercial doc- ument attached to the Cargo Declara- tion and made a part thereof in accord- ance with paragraph (a)(1) of this sec- tion, shall clearly show for such ship- ment the number, date, and class of such Customs entry or withdrawal (i.e., T. & E., Wd. T. & E., I. E., Wd. Ex., or Wd. T., as applicable) and the name of the port where the merchandise is laden for exportation.
(f) Customs officers shall accept a Cargo Declaration Outward With Com- mercial Forms, Customs Form 1302–A, covering containerized or palletized cargo which indicates by the use of ap- propriate words of qualification (see § 4.7a(c)(3)) that the declaration has been prepared on the basis of informa- tion furnished by the shipper.
[T.D. 84–193, 49 FR 35484, Sept. 10, 1984; T.D. 00–22, 65 FR 16515, Mar. 29, 2000]
§ 4.64 Electronic passenger and crew member departure manifests.
(a) Definitions. The definitions con- tained in § 4.7b(a) also apply for pur- poses of this section.
(b) Electronic departure manifest—(1) General requirement. Except as provided in paragraph (c) of this section, an ap- propriate official of each commercial vessel departing from the United States to any port or place outside the United States must transmit to Cus- toms and Border Protection (CBP) an electronic passenger departure mani- fest and an electronic crew member de- parture manifest. Each electronic de- parture manifest:
(i) Must be transmitted to CPB at the place and time specified in paragraph (b)(2) of this section by means of an electronic data interchange system ap- proved by CBP. If the transmission is in US EDIFACT format, the passenger manifest and the crew member mani- fest must be transmitted separately; and
(ii) Must set forth the information specified in paragraph (b)(3) of this sec- tion.
(2) Place and time for submission—(i) General requirement. The appropriate of-
ficial must transmit each electronic departure manifest required under paragraph (b)(1) of this section to the CBP Data Center, CBP Headquarters, no later than 60 minutes before the ves- sel departs from the United States.
(ii) Amended crew member manifests. If a crew member boards the vessel after submission of the manifest under para- graph (b)(2)(i) of this section, the ap- propriate official must transmit amended manifest information to CBP reflecting the data required under paragraph (b)(3) of this section for the additional crew member. The amended manifest information must be trans- mitted to the CBP Data Center, CBP Headquarters, no later than 12 hours after the vessel has departed from the United States.
(3) Information required. Each elec- tronic departure manifest required under paragraph (b)(1) of this section must contain the following informa- tion for all passengers and crew mem- bers, except that the information speci- fied in paragraphs (b)(3)(iv), (ix), (xi), (xv), and (xvi), of this section must be included on the manifest only on or after October 4, 2005:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F = female; M = male); (iv) Citizenship; (v) Status on board the vessel; (vi) Travel document type (e.g., P =
passport; A = alien registration card); (vii) Passport number, if a passport is
required; (viii) Passport country of issuance, if
a passport is required; (ix) Passport expiration date, if a
passport is required; (x) Alien registration number, where
applicable; (xi) Passenger Name Record locator,
if available; (xii) Departure port code (CBP port
code); (xiii) Port/place of final arrival (for-
eign port code); (xiv) Vessel name; (xv) Vessel country of registry/flag; (xvi) International Maritime Organi-
zation number or other official number of the vessel;
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19 CFR Ch. I (4–1–12 Edition)§ 4.65
(xvii) Voyage number (applicable only for multiple departures on the same calendar day); and
(xviii) Date of vessel departure. (c) Exceptions. The electronic depar-
ture manifest requirement specified in paragraph (b) of this section is subject to the following conditions:
(1) No passenger or crew member de- parture manifest is required if the de- parting commercial vessel is operating as a ferry;
(2) If the departing commercial vessel is not transporting passengers, only a crew member departure manifest is re- quired;
(3) No passenger departure manifest is required for active duty U.S. mili- tary personnel on board a departing Department of Defense commercial chartered vessel.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the passenger or crew member with the travel document information it is transmitting to CBP in accordance with this section in order to ensure that the information is correct, the document appears to be valid for travel purposes, and the passenger or crew member is the person to whom the travel document was issued.
(e) Sharing of manifest information. In- formation contained in passenger and crew member manifests that is re- ceived by CBP electronically may, upon request, be shared with other Federal agencies for the purpose of pro- tecting national security. CBP may also share such information as other- wise authorized by law.
[CBP Dec. 05–12, 70 FR 17851, Apr. 7, 2005, as amended by CBP Dec. 07–64, 72 FR 48342, Aug. 23, 2007]
§ 4.65 Verification of nationality and tonnage.
The nationality and tonnage of a ves- sel shall be verified by examination of its marine document. If such examina- tion discloses that insufficient tonnage tax was collected on entry of the ves- sel, no clearance shall be granted until the deficiency is paid.
§ 4.65a Load lines.
(a) If a port director is notified by an officer of the United States Coast Guard that a detention order has been issued against a vessel engaged in the foreign trade under the International Voyage Load Line Act of 1973, clear- ance shall not be granted until the order is withdrawn.
(b) If a port director issues a deten- tion order under the Coastwise Load Line Act, 1935, as amended, or is noti- fied by an officer of the United States Coast Guard that a detention order has been issued against a vessel under the aforesaid Act, clearance shall not be granted until the order is withdrawn.
[T.D. 75–133, 40 FR 24518, June 9, 1975]
§ 4.66 Verification of inspection.
(a) No clearance shall be granted un- less the port director is satisfied that a proper certificate of inspection is in force and the vessel is in compliance with such certificate, if the vessel is:
(1) A vessel of the United States re- quired to be inspected as specified in Title 46, Code of Federal Regulations.
(2) A foreign vessel carrying pas- sengers from the United States.
(b) In the case of vessels of foreign nations which are signatories of the International Convention for the Safe- ty of Life at Sea, 1948, carrying pas- sengers from the United States, an un- expired Certificate of Examination for Foreign Passenger Vessel, Form CG– 989, or an unexpired Certificate for For- eign Vessel to Carry Persons in Addi- tion to Crew, Form CG–3463, issued by the United States Coast Guard, may be accepted as evidence that a proper cer- tificate of inspection is in force and the vessel is in compliance with such cer- tificate.
(c) In the case of vessels of the United States subject to inspection proceeding to another port for repairs, a valid Permit to Proceed to Another Port for Repairs, Form CG–948, issued by the United States Coast Guard, shall be accepted in lieu of the certifi- cate of inspection required by this sec- tion.
[T.D. 56173, 29 FR 6681, May 22, 1964, as amended by T.D. 69–266, 34 FR 20422, Dec. 31, 1969]
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U.S. Customs and Border Protection, DHS; Treasury § 4.66c
§ 4.66a Illegal discharge of oil and haz- ardous substances.
If a port director receives a request from an officer of the U.S. Coast Guard to withhold clearance of a vessel whose owner or operator is subject to a civil penalty for discharging oil or a haz- ardous substance into or upon the navi- gable waters of the United States, ad- joining shorelines, or into or upon the waters of the contiguous zone in quan- tities determined to be harmful by ap- propriate authorities, such clearance shall not be granted until the port di- rector is informed that a bond or other surety satisfactory to the Coast Guard has been filed.
[T.D. 82–28, 47 FR 5226, Feb. 4, 1982]
§ 4.66b Pollution of coastal and navi- gable waters.
(a) If any Customs officer has reason to believe that any refuse matter is being or has been deposited in navi- gable waters or any tributary of any navigable waters in violation of section 13 of the Act of March 3, 1899 (30 Stat. 1152; 33 U.S.C. 407), or oil or a haz- ardous substance is being or has been discharged into or upon the navigable waters of the United States, adjoining shorelines, or into or upon the waters of the contiguous zone in violation of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251, 1321), he shall promptly furnish to the port director a full report of the incident, together with the names of witnesses and, when practicable, a sample of the material discharged from the vessel in question.
(b) The port director shall forward this report immediately, without rec- ommendation, to the district com- mander of the Coast Guard district concerned and a copy of such report shall be furnished to Headquarters, U.S. Customs Service.
[T.D. 73–18, 38 FR 1587, Jan. 16, 1973, as amended by T.D. 82–28, 47 FR 5226, Feb. 4, 1982]
§ 4.66c Oil pollution by oceangoing vessels.
(a) If a port director receives a re- quest from a Coast Guard officer to refuse or revoke the clearance or per- mit to proceed of a vessel because the
vessel, its owner, operator, or person in charge, is liable for a fine or civil pen- alty, or reasonable cause exists to be- lieve that they may be subject to a fine or civil penalty under the provisions of 33 U.S.C. 1908 for violating the Protocol of 1978 Relating to the International Convention for the Prevention of Pol- lution from Ships, 1973 (MARPOL Pro- tocol), the Act to Prevent Pollution from Ships, 1980 (33 U.S.C. 1901–1911), or regulations issued thereunder, such clearance or a permit to proceed shall be refused or revoked. Clearance or a permit to proceed may be granted when the port director is informed that a bond or other security satisfactory to the Coast Guard has been filed.
(b) If a port director receives a notifi- cation from a Coast Guard officer that an order has been issued to detain a vessel required to have an Inter- national Oil Pollution Prevention (IOPP) Certificate which does not have a valid certificate on board, or whose condition or whose equipment’s condi- tion does not substantially agree with the particulars of the certificate on board, or which presents an unreason- able threat of harm to the marine envi- ronment, the port director shall refuse or revoke the clearance or permit to proceed of the vessel if requested to do so by a Coast Guard officer. The port director shall not grant clearance or issue a permit to proceed to the vessel until notified by a Coast Guard officer that detention of the vessel is no longer required.
(c) If a port director receives a notifi- cation from a Coast Guard officer to detain a vessel operated under the au- thority of a country not a party to the MARPOL Protocol which does not have a valid certificate on board showing that the vessel has been surveyed in ac- cordance with and complies with the requirements of the MARPOL Pro- tocol, or whose condition or whose equipment’s condition does not sub- stantially agree with the particulars of the certificate on board, or which pre- sents an unreasonable threat of harm to the marine environment, the port director shall refuse or revoke the clearance or permit to proceed of the vessel if requested to do so by a Coast Guard officer. The port director shall not grant clearance or issue a permit
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19 CFR Ch. I (4–1–12 Edition)§ 4.67
to proceed to the vessel until notified by a Coast Guard officer that detention of the vessel is no longer required.
[T.D. 81–148, 49 FR 28695, July 16, 1984]
§ 4.67 Closed ports or places. No foreign vessel shall be granted a
clearance or permit to proceed to any port or place from which such vessels are excluded by orders or regulations of the United States Navy Department except with the prior approval of that Department.
§ 4.68 Federal Maritime Commission certificates for certain passenger vessels.
No vessel having berth or stateroom accommodations for 50 or more pas- sengers and embarking passengers at U.S. ports will be granted a clearance at the port or place of departure from the United States unless it is estab- lished that the vessel has valid certifi- cates issued by the Federal Maritime Commission.
[T.D. 00–4, 65 FR 2874, Jan. 19, 2000]
§ 4.69 Shipping articles. No vessel of the U.S. on a voyage be-
tween a U.S. port and a foreign port (except a port in Canada, Mexico, or the West Indies), or if of at least 75 gross tons, on a voyage between a U.S. port on the Atlantic Ocean and a U.S. port on the Pacific Ocean, shall be granted clearance before presentation, to the appropriate Customs officer, of the shipping articles agreements, in- cluding any seaman’s allotment agree- ment, required by 46 U.S.C. chapter 103, in the form provided for in 46 CFR 14.05–1.
[T.D. 92–52, 57 FR 23945, June 5, 1992]
§ 4.70 Public Health Service require- ments.
No clearance will be granted to a ves- sel subject to the foreign quarantine regulations of the Public Health Serv- ice.
[T.D. 00–4, 65 FR 2874, Jan. 19, 2000]
§ 4.71 Inspection of livestock. A proper export inspection certifi-
cate issued by the Veterinary Services, Animal and Plant Health Inspection
Service, Department of Agriculture, shall be filed before the clearance of a vessel carrying horses, mules, asses, cattle, sheep, swine, or goats (9 CFR part 91)
[T.D. 79–32, 44 FR 5650, Jan. 29, 1979]
§ 4.72 Inspection of meat, meat-food products, and inedible fats.
(a) No clearance shall be granted to any vessel carrying meat or meat-food products, as defined and classified by the U.S. Department of Agriculture, Food Safety and Inspection Service, Meat and Poultry Inspection until there have been filed with the port di- rector such copies of export certifi- cates concerning such meat or meat- food products as are required by the pertinent regulations of the U.S. De- partment of Agriculture, Food Safety and Inspection Service, Meat and Poul- try Inspection (9 CFR part 322). If such certificate has been obtained but is un- available at the scheduled time of a vessel’s departure, the vessel may be cleared on the basis of the receipt of a statement, under the shipper’s or ship- per’s agent’s letterhead, certifying the number of boxes, the number of pounds, the product name and the U.S. Department of Agriculture export cer- tificate number that covers the ship- ment of the product. If such statement has been used as the basis for obtaining vessel clearance, the duplicate of the certificate must be filed with Customs within the time period prescribed by § 4.75.
(b) No clearance shall be granted to any vessel carrying tallow, stearin, oleo oil, or other rendered fat derived from cattle, sheep, swine, or goats for export from the United States, which has not been inspected, passed, and marked by the United States Depart- ment of Agriculture, unless the port di- rector is furnished with a certificate by the exporter that the article is ined- ible.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13059, Mar. 29, 1978; T.D. 91– 77, 56 FR 46114, Sept. 10, 1991;T.D. 95–54, 60 FR 35838, July 12, 1995]
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55
U.S. Customs and Border Protection, DHS; Treasury § 4.75
104 See 18 U.S.C. 961 through 967 and 22 U.S.C. 441 through 457.
105 Clearance for vessel shall not be denied for the sole reason that her cargo contains contraband of war.
106-110 [Reserved]
§ 4.73 Neutrality; exportation of arms and munitions.
(a) Clearance shall not be granted to any vessel if the port director has rea- son to believe that her departure or in- tended voyage would be in violation of any provision of the Neutrality Act of 1939 or other neutrality law of the United States, 104 or of any regulation or instruction issued pursuant to any such law.
(b) The port director shall refuse clearance for and detain any vessel manifestly built for warlike purposes and about to depart from the United States with a cargo consisting prin- cipally of arms and munitions of war 105 when the number of men intending to sail or other circumstances render it probable that the vessel is intended to commit hostilities against the sub- jects, citizens, or property or any for- eign country, with which the United States is at peace, until the decision of the President thereon is received, or until the owners shall have given bond or security in double the value of the vessel and its cargo that she will not be so employed.
(c) A port director shall promptly communicate all the facts to Head- quarters, U.S. Customs Service, if he learns while the United States is at peace that any vessel of a belligerent power which has arrived as a merchant vessel is altering, or will attempt to alter, her status as a merchant vessel so as to become an armed vessel or an auxiliary to armed vessels of a foreign power.
(d) If a port director has reason to be- lieve during the existence of a war to which the United States is not a party that any vessel at his port is about to carry arms, munitions, supplies, dis- patches, information, or men to any warship or tender or supply ship of a belligerent nation, he shall withhold the clearance of such vessel and report the facts promptly to Headquarters, U.S. Customs Service.
§ 4.74 Transportation orders. Clearance shall not be granted to any
vessel if the port director has reason to believe that her departure or intended voyage would be in violation of any provision of any transportation order, regulation, or restriction issued under authority of the Defense Production Act of 1950 (50 U.S.C. App. 2061–2066).
§ 4.75 Incomplete manifest; incomplete export declarations; bond.
(a) Pro forma manifest. Except as pro- vided for in § 4.75(c), if a master desir- ing to clear his vessel for a foreign port does not have available for filing with the port director a complete Cargo Declaration Outward with Commercial Forms, Customs Form 1302–A (see § 4.63) in accordance with 46 U.S.C. 91, or all required shipper’s export declara- tions (see 15 CFR 30.24), the port direc- tor may accept in lieu thereof an in- complete manifest (referred to as a pro forma manifest) on the Vessel En- trance or Clearance Statement, Cus- toms Form 1300, if there is on file in his office a bond on Customs Form 301, containing the bond conditions set forth in § 113.64 of this chapter relating to international carriers, executed by the vessel owner or other person as at- torney in fact of the vessel owner. The ‘‘Incomplete Manifest for Export’’ box in item 17 of the Vessel Entrance or Clearance Statement form must be checked.
(b) Time in which to file complete mani- fest and export declarations. Not later than the fourth business day after clearance from each port in the vessel’s itinerary, the master, or the vessel’s agent on behalf of the master, shall de- liver to the director of each port a complete Cargo Declaration Outward with Commercial Forms, Customs Form 1302–A, in accordance with § 4.63, of the cargo laden at such port to- gether with duplicate copies of all re- quired shipper’s export declarations for such cargo and a Vessel Entrance or Clearance Statement, Customs Form 1300. The statutory grace period of 4 days for filing the complete manifest and missing export declarations begins to run on the first day (exclusive of any day on which the customhouse is not open for marine business) following the date on which clearance is granted.
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19 CFR Ch. I (4–1–12 Edition)§ 4.76
(c) Countries for which vessels may not be cleared until complete manifests and shipper’s export declarations are filed. To aid the Customs Service in the enforce- ment of export laws and regulations, no vessel shall be cleared for any port in the following countries until a com- plete outward foreign manifest and all required shipper’s export declarations have been filed with the port director:
Albania Bulgaria Cambodia China, People’s
Republic of Cuba Czechoslovakia Estonia German Democratic
Republic (Soviet Zone of Germany and Soviet Zone sector of Berlin)
Hungary Iran Iraq
Laos Latvia Libya Lithuania Mongolian People’s
Republic North Korea Polish People’s
Republic (Including Danzig)
Rumania South Yemen Union of Soviet
Socialist Republics Viet Nam
[T.D. 87–1, 52 FR 255, Jan. 5, 1987, as amended by T.D. 91–60, 56 FR 32085, July 15, 1991; T.D. 00–22, 65 FR 16515, Mar. 29, 2000]
§ 4.76 Procedures and responsibilities of carriers filing outbound vessel manifest information via the AES.
(a) The sea carrier’s module. The Sea Carrier’s Module is a component of the Automated Export System (AES) (see, part 192, subpart B, of this chapter) that allows for the filing of outbound vessel manifest information electroni- cally (see, 15 CFR part 30). All sea car- riers are eligible to apply for participa- tion in the Sea Carrier’s Module. Appli- cation and certification procedures for AES are found at 15 CFR 30.60. A sea carrier certified to use the module that adheres to the procedures set forth in this section and the Census Regula- tions (15 CFR part 30) concerning the electronic submission of an outbound vessel manifest information meets the outward cargo declaration filing re- quirements (CF 1302–A) of §§ 4.63 and 4.75, except as otherwise provided in §§ 4.75 and 4.84.
(b) Responsibilities. The performance requirements and operational stand- ards and procedures for electronic sub- mission of outbound vessel manifest in- formation are detailed in the AES Trade Interface Requirements hand-
book (available on the Customs inter- net web site (www.customs.gov)). Car- riers and their agents are responsible for reporting accurate and timely in- formation and for responding to all no- tifications concerning the status of their transmissions and the detention and release of freight in accordance with the procedures set forth in the AES Trade Interface Requirements handbook. Customs will send messages to participant carriers regarding the accuracy of their transmissions. AES participants are required to comply with the recordkeeping requirements contained at § 30.66 of the Census Regu- lations (15 CFR 30.66) and any other ap- plicable recordkeeping requirements. Where paper SEDs have been submitted by exporters prior to departure, partic- ipant carriers will be responsible for submitting those SEDs to Customs within four (4) business days after the departure of the vessel from each port, unless a different time requirement is specified by §§ 4.75 or 4.84. Upon written agreement with participant sea car- riers, Customs and Census can provide for an alternative to the location filing requirement for paper SEDs set forth in § 4.75(b) by which the participant carriers are otherwise bound.
(c) Messages required to be filed within the sea carrier’s module. Participant car- riers will be responsible for transmit- ting and responding to the following messages:
(1) Booking. Booking information identifies all the freight that is sched- uled for export. Booking information will be transmitted to Customs via AES for each shipment as far in ad- vance of departure as practical, but no later than seventy-two hours prior to departure for all information available at that time. Bookings received within seventy-two hours of departure will be transmitted to Customs via AES as re- ceived;
(2) Receipt of booking. When the car- rier receives the cargo or portion of the cargo that was booked, the carrier will inform Customs so that Customs can determine if an examination of the cargo is necessary. Customs will notify the carrier of shipments designated for examination. Customs will also notify
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U.S. Customs and Border Protection, DHS; Treasury § 4.80
the carrier when the shipment des- ignated for inspection is released and may be loaded on the vessel;
(3) Departure. No later than the first calendar day following the actual de- parture of the vessel, the carrier will notify Customs of the date and time of departure; and
(4) Manifest. Within ten (10) calendar days after the departure of the vessel from each port, the carrier will submit the manifest information to Customs via AES for each booking loaded on the departed vessel. However, if the des- tination of the vessel is a foreign port listed in § 4.75(c), the carrier must transmit complete manifest informa- tion before vessel departure. Time re- quirements for transmission of com- plete manifest information for carriers destined to Puerto Rico and U.S. pos- sessions are the same as the require- ment for the submission of the com- plete manifest as found in § 4.84.
(d) All penalties and liquidated dam- ages that apply to the submission of paper manifests (see, applicable provi- sions in this part) apply to the elec- tronic submission of outbound vessel manifest information through the Sea Carrier’s Module.
[T.D. 99–57, 64 FR 40986, July 28, 1999]
COASTWISE PROCEDURE
§ 4.80 Vessels entitled to engage in coastwise trade.
(a) No vessel shall transport, either directly or by way of a foreign port, any passenger or merchandise between points in the United States embraced within the coastwise laws, including points within a harbor, or merchandise for any part of the transportation be- tween such points, unless it is:
(1) Owned by a citizen and is so docu- mented under the laws of the United States as to permit it to engage in the coastwise trade;
(2) Owned by a citizen, is exempt from documentation, and is entitled to or, except for its tonnage, would be en- titled to be documented with a coast- wise endorsement.
(3) Owned by a partnership or asso- ciation in which at least a 75 percent interest is owned by such a citizen, is exempt from documentation and is en- titled to or, except for its tonnage, or
citizenship of its owner, or both, would be entitled to be documented for the coastwise trade. The term ‘‘citizen’’ for vessel documentation purposes, wheth- er for an individual, partnership, or corporation owner, is defined in 46 CFR 67.3.
(b) Penalties for violating coastwise laws. (1) The penalty imposed for the il- legal transportation of merchandise be- tween coastwise points is forfeiture of the merchandise or, in the discretion of the port director, forfeiture of a mone- tary amount up to the value of the merchandise to be recovered from the consignor, seller, owner, importer, con- signee, agent, or other person or per- sons so transporting or causing the merchandise to be transported (46 U.S.C. 883).
(2) The penalty imposed for the un- lawful transportation of passengers be- tween coastwise points is $300 for each passenger so transported and landed (46 U.S.C. App. 289, as adjusted by the Fed- eral Civil Penalties Inflation Adjust- ment Act of 1990).
(c) Any vessel of the United States, whether or not entitled under para- graph (a) of this section to engage in the coastwise trade, and any foreign vessel may proceed between points in the United States embraced within the coastwise laws to discharge cargo or passengers laden at a foreign port, to lade cargo or passengers for a foreign port, in ballast, or to transport certain articles in accordance with § 4.93. Cargo laden at a foreign port may be retained onboard during such movements. Fur- thermore, certain barges of United States or foreign flag may transport transferred merchandise between points in the United States embraced within the coastwise laws, excluding transportation between the continental United States and a noncontiguous point in the United States embraced within the coastwise laws, in accord- ance with § 4.81a.
(d) No vessel owned by a corporation which is a citizen of the United States under the Act of September 2, 1958 (46 U.S.C. 12118), shall be used in any trade other than the coastwise and shall not be used in that trade unless it is prop- erly documented for such use or is ex- empt from documentation and is enti- tled to or, except for its tonnage, would
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19 CFR Ch. I (4–1–12 Edition)§ 4.80
be entitled to a coastwise license. Such a vessel shall not be documented for nor engage in the foreign trade or the fisheries and shall not transport mer- chandise or passengers coastwise for hire except as a service for a parent or a subsidiary corporation as defined in the aforesaid Act or while under de- mise or bareboat charter at prevailing rates for use otherwise than in trade with noncontiguous territory of the United States to a common or contract carrier subject to part III of the Inter- state Commerce Act, as amended (49 U.S.C. 901 through 923), which other- wise qualifies as a citizen of the United States under section 2 of the Shipping Act, 1916, as amended (46 U.S.C. 50501), and which is not connected, directly or indirectly, by way of ownership or con- trol with such owning corporation.
(e) No vessel which has acquired the lawful right to engage in the coastwise trade, by virtue of having been built or documented under the laws of the United States, will have the right to engage in such trade if it:
(1) Thereafter has been sold foreign in whole or in part or placed under for- eign registry, unless such vessel is 200 gross tons or less (as measured under chapter 143 of title 46, United States Code); or
(2) Has been rebuilt, unless the entire rebuilding, including the construction of any major components of the hull or superstructure of the vessel, was ef- fected within the United States.
(f) No foreign-built vessel owned and documented as a vessel of the United States prior to February 1, 1920, by a citizen nor one owned by the United States on June 5, 1920, and sold to and owned by a citizen, shall engage in the American fisheries, but it is otherwise unlimited as to trade so long as it con- tinues in such ownership (section 22, Merchant Marine Act, of June 5, 1920; 46 U.S.C. 13). No foreign-built vessel which is owned by a citizen, but which was not so owned and documented on February 1, 1920, or which was not owned by the United States on June 5, 1920, shall engage in the coastwise trade or the American fisheries. No for- eign-built vessel which has been sold, leased, or chartered by the Secretary of Commerce to any citizen, shall engage in the American fisheries, but it is oth-
erwise unlimited as to trade so long as it continues in such ownership, lease, or charter (section 9 of the Act of Sept. 7, 1916, as amended, 46 U.S.C. 808). A vessel engaged in taking out fishing parties for hire, unless it intends to proceed to a foreign port, is considered to be engaged in the coastwise trade and not the fisheries.
(g) Certain vessels not documented under the laws of the United States which are acquired by or made avail- able to the Secretary of Commerce may be documented under section 3 of the Act of August 9, 1954 (50 U.S.C. 198). Such vessels shall not engage in the coastwise trade unless in possession of a valid unexpired permit to engage in that trade issued by the Secretary of Commerce under authority of section 3(c) of the said Act.
(h) A vessel which is at least 50 per- cent owned by a citizen as defined in 46 CFR subpart 68.05, and which, except for citizenship requirements, is other- wise entitled to be documented with a coastwise endorsement, may be docu- mented with a limited coastwise en- dorsement, provided the vessel is owned by a not-for-profit oil spill re- sponse cooperative or by one or more members of such a cooperative who dedicate the vessel to the use of the co- operative (46 U.S.C. 12106(d)). Notwith- standing 46 U.S.C. App. 883, a vessel may be documented with such a lim- ited endorsement even if formerly owned by a not-for-profit oil spill re- sponse cooperative or by one or more members thereof, as long as the citi- zenship criteria of 46 CFR subpart 68.05 are met. A vessel so documented may operate on the navigable waters of the United States or in the Exclusive Eco- nomic Zone only for the purpose of training for oil spill cleanup oper- ations; deploying equipment, supplies and personnel for cleanup operations; and recovering and/or transporting oil discharged in a spill. Such vessel may also engage in any other employment for which a registry, fishery, or Great Lakes endorsement is not required, and may qualify to operate for other pur- poses by meeting the applicable re- quirements of 46 CFR part 67.
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U.S. Customs and Border Protection, DHS; Treasury § 4.80b
(i) Any vessel, entitled to be docu- mented and not so documented, em- ployed in a trade for which a Certifi- cate of Documentation is issued under the vessel documentation laws (see § 4.0(c)), other than a trade covered by a registry, is liable to a civil penalty of $500 for each port at which it arrives without the proper Certificate of Docu- mentation. If such a vessel has on board any foreign merchandise (sea stores excepted), or any domestic tax- able alcoholic beverages, on which the duty and taxes have not been paid or secured to be paid, the vessel and its cargo are subject to seizure and for- feiture.
[T.D. 69–266, 34 FR 20422, Dec. 31, 1969, as amended by T.D. 79–160, 44 FR 31956, June 4, 1979; T.D. 83–214, 48 FR 46512, Oct. 13, 1983; T.D. 93–78, 58 FR 50257, Sept. 27, 1993; T.D. 97– 82, 62 FR 51769, Oct. 3, 1997; T.D. 03–11, 68 FR 13820, Mar. 21, 2003; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.80a Coastwise transportation of passengers.
(a) For the purposes of this section, the following terms will have the meaning set forth below:
(1) Coastwise port means a port in the U.S., its territories, or possessions em- braced within the coastwise laws.
(2) Nearby foreign port means any for- eign port in North America, Central America, the Bermuda Islands, or the West Indies (including the Bahama Is- lands, but not including the Leeward Islands of the Netherlands Antilles, i.e., Aruba, Bonaire, and Curacao). A port in the U.S. Virgin Islands shall be treated as a nearby foreign port.
(3) Distant foreign port means any for- eign port that is not a nearby port.
(4) Embark means a passenger board- ing a vessel for the duration of a spe- cific voyage and disembark means a pas- senger leaving a vessel at the conclu- sion of a specific voyage. The terms em- bark and disembark are not applicable to a passenger going ashore tempo- rarily at a coastwise port who reboards the vessel and departs with it on sail- ing from the port.
(5) Passenger has the meaning defined in § 4.50(b).
(b) The applicability of the coastwise law (46 U.S.C. 289) to a vessel not quali- fied to engage in the coastwise trade
(i.e., either a foreign-flag vessel or a U.S.-flag vessel that is foreign-built or at one time has been under foreign- flag) which embarks a passenger at a coastwise port is as follows:
(1) If the passenger is on a voyage solely to one or more coastwise ports and the passenger disembarks or goes ashore temporarily at a coastwise port, there is a violation of the coastwise law.
(2) If the passenger is on a voyage to one or more coastwise ports and a nearby foreign port or ports (but at no other foreign port) and the passenger disembarks at a coastwise port other than the port of embarkation, there is a violation of the coastwise law.
(3) If the passenger is on a voyage to one or more coastwise ports and a dis- tant foreign port or ports (whether or not the voyage includes a nearby for- eign port or ports) and the passenger disembarks at a coastwise port, there is no violation of the coastwise law provided the passenger has proceeded with the vessel to a distant foreign port.
(c) An exception to the prohibition in this section is the transportation of passengers between ports in Puerto Rico and other ports in the U.S. on pas- senger vessels not qualified to engage in the coastwise trade. Such transpor- tation is permitted until there is a finding under 46 U.S.C. 289c that a qualified U.S.-flag passenger vessel is available for such service.
(d) The owner or charterer of a for- eign vessel or any other interested per- son may request from Headquarters, U.S. Customs and Border Protection, Attention: Cargo Security, Carriers & Immigration Branch, Office of Inter- national Trade, an advisory ruling as to whether a contemplated voyage would be considered to be coastwise transportation in violation of 46 U.S.C. 289. Such a request shall be filed in ac- cordance with the provisions of part 177, CBP Regulations (19 CFR part 177).
[T.D. 85–109, 50 FR 26984, July 1, 1985, as amended by T.D. 85–109, 50 FR 37519, Sept. 16, 1985; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 4.80b Coastwise transportation of merchandise.
(a) Effect of manufacturing or proc- essing at intermediate port or place. A
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111 See § 4.84. 112-114 [Reserved]
coastwise transportation of merchan- dise takes place, within the meaning of the coastwise laws, when merchandise laden at a point embraced within the coastwise laws (‘‘coastwise point’’) is unladen at another coastwise point, re- gardless of the origin or ultimate des- tination of the merchandise. However, merchandise is not transported coast- wise if at an intermediate port or place other than a coastwise point (that is at a foreign port or place, or at a port or place in a territory or possession of the United States not subject to the coast- wise laws), it is manufactured or proc- essed into a new and different product, and the new and different product thereafter is transported to a coastwise point.
(b) Request for ruling. Interested par- ties may request an advisory ruling from Headquarters, U.S. Customs and Border Protection, Attention: Cargo Security, Carriers & Immigration Branch, Office of International Trade, as to whether a specific action taken or to be taken with respect to merchan- dise at the intermediate port or place will result in its becoming a new and different product for purposes of this section. The request shall be filed in accordance with the provisions of part 177 of this chapter.
[T.D. 79–193, 44 FR 42178, July 19, 1979, as amended by T.D. 91–77, 56 FR 46114, Sept. 10, 1991; 56 FR 47268, Sept. 18, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 4.81 Reports of arrivals and depar- tures in coastwise trade.
(a) No vessel which is documented with a coastwise license or registry en- dorsement or is owned by a citizen and exempt from documentation, and which is in ballast or laden only with domestic products or passengers being carried only between points in the United States shall be required to re- port arrival or to enter when coming into one port of the United States from any other such port, except as provided for in sections 4.83 and 4.84, nor to ob- tain a clearance, permit to proceed, or permission to depart when going from one port in the United States to any other such port except when trans-
porting merchandise to a port in noncontinguous territory. 111
(b) When the facts are as above stat- ed except that the vessel is carrying bonded merchandise, the master shall report its arrival as provided for in § 4.2.
(c) [Reserved] (d) The traveling Crew’s Effects Dec-
laration, Customs Form 1304, or Cus- toms and Immigration Form I–418 with attached Customs Form 5129, referred to in § 4.85 (b), (c), and (e) shall be de- posited with the port director upon ar- rival at each port in the United States and finally surrendered to the appro- priate Customs officer or director of the port where the vessel first departs directly for a foreign port.
(e) Before any foreign vessel departs in ballast, or solely with articles to be transported in accordance with § 4.93, from any port in the United States for any other such port, the master must apply to the port director for a permit to proceed by filing a Vessel Entrance or Clearance Statement, Customs Form 1300, in duplicate. If a vessel is proceeding in ballast and therefore the Cargo Declaration (Customs Form 1302) is omitted, the words ‘‘No merchandise on board’’ shall be inserted in item 16 of the Vessel Entrance or Clearance Statement. However, articles to be transported in accordance with § 4.93 must be manifested on the Cargo Dec- laration, as required by § 4.93(c). Three copies of the Cargo Declaration must be filed with the port director. When the port director grants the permit by making an appropriate endorsement on the Vessel Entrance or Clearance Statement (see § 4.85(b)), the duplicate copy, together with two copies of the Cargo Declaration covering articles to be transported in accordance with § 4.93, must be returned to the master. The traveling Crew’s Effects Declara- tion, Customs Form 1304, and all un- used crewmembers’ declarations on Customs Form 5129 will be placed in a sealed envelope addressed to the appro- priate Customs officer at the next in- tended domestic port and returned to the master for delivery. The master must execute a receipt for all unused
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crewmembers’ declarations which are returned to him. Immediately upon ar- rival at the next United States port the master must report his arrival to the port director. He must make entry within 48 hours by filing with the port director the permit to proceed on the Vessel Entrance or Clearance State- ment received at the previous port, a newly executed Vessel Entrance or Clearance Statement, a Crew’s Effects Declaration of all unentered articles acquired abroad by crewmembers which are still on board, a Ship’s Stores Declaration, Customs Form 1303, in duplicate of the stores remain- ing on board, both copies of the Cargo Declaration covering articles trans- ported in accordance with § 4.93, and the document of the vessel. The trav- eling Crew’s Effects Declaration and all unused crewmembers’ declarations on Customs Form 5129 returned at the prior port to the master must be deliv- ered by him to the appropriate Cus- toms officer.
(f) The master, licensed deck officer, or purser who enters or clears a vessel, or who obtains permission for a vessel to depart, when required under the pro- visions of this section or of §§ 4.82, 4.84, 4.85, 4.87, 4.89, or 4.91 of the regulations of this part, may appear in person at the customhouse for that purpose, or any required oaths, related documents, and other papers properly executed by the master or other proper officer may be delivered at the customhouse by the vessel agent or other personal rep- resentative of the master.
(g) In lieu of the procedures stated in §§ 4.85 and 4.87 and at the option of the owner or operator, unmanned non-self- propelled barges specifically designed for carriage aboard a vessel and regu- larly carried aboard a vessel in the for- eign trade, hereinafter referred to as LASH-type barges, may move under a simplified permit-to-proceed procedure as follows:
(1) At the port where a LASH-type barge begins a coastwise movement with inward foreign cargo, a permit to proceed on the Vessel Entrance or Clearance Statement, Customs Form 1300, must be obtained. A single permit to proceed may be used for all the barges proceeding to the same port of unlading in the same town. An inward
foreign manifest of the cargo in each barge, destined to the port of unlading shown on the permit to proceed, must be attached to each permit. At the port of unlading of the barge, report of ar- rival and entry must be made imme- diately upon arrival to the appropriate Customs officer by presentation of the permit to proceed, manifests, and a new Vessel Entrance or Clearance Statement, Customs Form 1300. If only part of the inward foreign cargo is un- laden, a new permit to proceed must be obtained and the inward foreign mani- fests must be attached to it.
(2) At the port where a LASH-type barge begins a coastwise movement with export cargo, a permit to proceed on the Vessel Entrance or Clearance Statement, Customs Form 1300, must be presented to the appropriate Cus- toms officer. A single permit to pro- ceed may be presented for all the barges proceeding from the same port of lading in the same tow. Required shipper’s export declarations for LASH-type barges must be filed at the port where the barges will be taken aboard a barge-carrying vessel. At the next port, a report of arrival must be made immediately upon arrival and entry must be made within 48 hours by presentation of the permit to proceed received upon departure from the prior port and a newly executed Vessel En- trance or Clearance Statement, Cus- toms Form 1300.
(3) When foreign LASH-type barges are proceeding between ports of the United States under paragraph (e) of this section, a single permit to proceed may be used for all the barges pro- ceeding to the same port in the same tow.
(4) In lieu of the master of the towing vessel executing and delivering docu- ments required under permit-to-pro- ceed procedures (see § 4.81(f)) at the port where a LASH-type barge begins a coastwise movement, the master of the towing vessel may designate in writing the owner or operator of the barges as his representative with authority to execute and deliver such documents at the customhouse. The owner or oper- ator of the barges may designate rep- resentatives to perform such functions at ports or places where permit-to-pro- ceed documents must be delivered.
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Documents obtained from Customs of- ficers at one place by such a represent- ative may be forwarded by any suitable means to the representative who must present them to Customs officers at an- other place, the only requirement being that the forms are properly com- pleted and are presented within the prescribed time periods. Moreover, in- stead of a written designation from each master of a towing vessel, a blan- ket designation in writing from the owner or operator of one or more tow- ing vessels on behalf of masters of their towing vessels, designating the owner or operator of the barges to be the rep- resentative of the master for purposes of executing and delivering permit-to- proceed documents, is authorized.
(5) [Reserved] (6) When a LASH-type barge is pro-
ceeding to a place in the United States that is not a port of entry, § 101.4(a) and (b) of this chapter are applicable. No merchandise shall be unladen from a LASH-type barge until a permit or spe- cial license therefor is obtained in ac- cordance with § 4.30 except that a single permit to unlade may be used for all barges that arrived at the port of un- lading in the same tow.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71–169, 36 FR 12604, July 2, 1971; T.D. 74– 63, 39 FR 6108, Feb. 19, 1974; T.D. 74–284, 39 FR 39718, Nov. 11, 1974; T.D. 75–315, 40 FR 58852, Dec. 19, 1975; T.D. 77–241, 42 FR 54936, Oct. 12, 1977; T.D. 77–255, 42 FR 56322, Oct. 25, 1977; T.D. 83–214, 48 FR 46512, Oct. 13, 1983; T.D. 92– 74, 57 FR 35752, Aug. 11, 1992; T.D. 93–96, 58 FR 67317, Dec. 21, 1993; T.D. 00–22, 65 FR 16515, Mar. 29, 2000]
§ 4.81a Certain barges carrying mer- chandise transferred from another barge.
(a) A LASH-type barge (as defined in § 4.81(g)) documented as a vessel of the United States but not qualified to en- gage in the coastwise trade or a LASH- type barge of a nation found to grant reciprocal privileges to United States- flag LASH-type barges may transport inward foreign and export cargo be- tween points embraced within the coastwise laws of the United States after the merchandise has been trans- ferred to it from another LASH-type barge owned or leased by the same owner or operator. This section is not applicable to transportation between
the continental United States and non- contiguous States, districts, terri- tories, and possessions embraced with- in the coastwise laws. The permit to proceed shall include a statement that the unqualified LASH-type barge is owned or leased by the owner or oper- ator of the LASH-type barge from which the merchandise was trans- ferred.
(b) The following nations have been found to extend privileges reciprocal to those provided in paragraph (a) of this section to LASH-type barges of the United States:
Federal Republic of Germany. Netherlands. Sweden. Union of Soviet Socialist Republics.
[T.D. 74–63, 39 FR 6108, Feb. 19, 1974, as amended by T.D. 74–292, 39 FR 41360, Nov. 27, 1974; T.D. 75–7, 39 FR 44660, Dec. 26, 1974; T.D. 75–315, 40 FR 58852, Dec. 19, 1975; T.D. 78–492, 43 FR 58814, Dec. 18, 1978]
§ 4.82 Touching at foreign port while in coastwise trade.
(a) A United States documented ves- sel with a registry or, coastwise en- dorsement, or both which, during a voyage between ports in the United States, touches at one or more foreign ports and there discharges or takes on merchandise, passengers, baggages, or mail shall obtain a permit to proceed or clearance at each port of lading in the United States for the foreign port or ports at which it is intended to touch. The Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A (see § 4.63), shall show only the cargo for foreign destination. (See §§ 4.61 and 4.87.)
(b) The master shall also present to the port director a coastwise Cargo Declaration in triplicate of the mer- chandise to be transported via the for- eign port or ports to the subsequent ports in the United States. It shall de- scribe the merchandise and show the marks and numbers of the packages, the names of the shippers and con- signees, and the destinations. The port director shall certify the two copies and return them to the master. Mer- chandise carried by the vessel in bond under a transportation entry and mani- fest, Customs Form 7512, shall not be
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U.S. Customs and Border Protection, DHS; Treasury § 4.84
shown on the coastwise Cargo Declara- tion.
(c) Upon arrival from the foreign port or ports at the subsequent port in the United States, a report of arrival and entry of the vessel shall be made, and tonnage taxes shall be paid. The mas- ter shall present Cargo Declaration in accordance with § 4.7 and the certified copies of the coastwise Cargo Declara- tion, Customs Form 1302.
(d) All merchandise on the vessel upon its arrival at the subsequent port in the United States is subject to such Customs examination and treatment as may be necessary to protect the rev- enue. Any article on board which is not identified to the satisfaction of the port director, by the coastwise Cargo Declaration, Customs Form 1302, or otherwise, as part of the coastwise cargo, shall be treated as imported merchandise.
[T.D. 77–255, 42 FR 56322, Oct. 25, 1977, as amended by T.D. 83–214, 48 FR 46513, Oct. 13, 1983; T.D. 84–193, 49 FR 35485, Sept. 10, 1984; T.D. 99–64, 64 FR 43265, Aug. 10, 1999; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.83 Trade between United States ports on the Great Lakes and other ports of the United States.
(a) If a vessel proceeding from or to a port of the United States on the Great Lakes to or from any other port of the United States via the St. Lawrence River is intended to touch at any for- eign port and does so touch, it will be subject to the usual requirements for manifesting, clearing, report of arrival, entry, payment of fees for entry and clearance, and tonnage taxes. Vessels which are boarded on the St. Lawrence River by Canadian authorities for the purposes of inspecting the vessel and taking a passing report are not deemed to have touched at a foreign port, pro- vided that no ship’s stores are landed or taken aboard and no other business is transacted at the port or place of boarding.
(b) A vessel in the coastwise trade only, which is proceeding from a port of the United States on the Great Lakes via the Hudson River and other- wise than by sea, may operate under a document with a Great Lakes license endorsement and shall not be subject
to the requirements for clearance, re- port of arrival, or entry.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69–266, 34 FR 20423, Dec. 31, 1969; T.D. 83– 214, 48 FR 46513, Oct. 13, 1983]
§ 4.84 Trade with noncontiguous terri- tory.
(a) No foreign vessel shall depart from a port in noncontiguous territory of the United States for any other port in noncontiguous territory or for any port in any State or the District of Co- lumbia, nor from any port in any State or the District of Columbia for any port in noncontiguous territory, until a clearance for the vessel has been granted. Such a clearance shall be granted in accordance with the applica- ble provisions of § 4.61 of the regula- tions of this part, including clearance of a vessel simultaneously engaged in one or more of the transactions listed in § 4.90(a)(4), (5), or (6) of this part. When merchandise is laden on a foreign vessel in noncontiguous territory other than Puerto Rico, for transportation on that vessel to a port in any State, the District of Columbia, or noncontig- uous territory, and when this transpor- tation is not forbidden by the coast- wise laws, the merchandise may be laden and shipped without shipper’s ex- port declarations.
(b) The master of every foreign vessel arriving at a port in any State or the District of Columbia or in noncontig- uous territory of the United States from a port in noncontiguous territory to which the coastwise laws do not apply (e.g., Virgin Islands and Amer- ican Samoa), or arriving at any port in noncontiguous territory to which the coastwise laws do not apply from any place embraced within the coastwise laws, shall immediately report its ar- rival and make entry for the vessel within 48 hours after its arrival.
(c)(1) A vessel which is not required to clear but which is transporting mer- chandise from a port in any State or the District of Columbia to any non- contiguous territory of the United States (excluding Puerto Rico), or from
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Puerto Rico to any State or the Dis- trict of Columbia, or any other non- contiguous territory, shall not be per- mitted to depart without filing a com- plete manifest, when required by regu- lations of the Bureau of the Census (15 CFR part 30), and all required Shipper’s Export Declarations, unless before the vessel departs an approved bond is filed for the timely production of the re- quired documents, as specified in 15 CFR 30.24. Requests for permission to depart may be written or oral and per- mission to depart shall be granted oral- ly by the appropriate Customs officer. However, if the request is to depart prior to the filing of the required mani- fest and export declarations, permis- sion shall not be granted unless the ap- propriate bond is on file. In the latter case, the Customs officer shall keep a simplified record of the necessary in- formation in order to assure that the manifest and export declarations are filed within the required time period. The Vessel Entrance or Clearance Statement, Customs Form 1300 (see § 4.63(a)), required at the time of clear- ance is not required to be taken to ob- tain permission to depart.
(2) A vessel which is not required to clear but which is transporting mer- chandise from a port in any State or the District of Columbia to Puerto Rico shall file a complete manifest, when required by the regulations of the Bureau of the Census (15 CFR part 30), and all required Shipper’s Export Dec- larations within one business day after arrival, as defined in § 4.2(b) of this part, with the appropriate Customs of- ficer in Puerto Rico. If the complete manifest and all required Shipper’s Ex- port Declarations are not filed with the appropriate Customs officer within that time frame, an appropriate bond shall be filed with the Customs officer for the timely production of the re- quired documents as specified in 15 CFR 30.24. In these instances when a bond is filed, the Customs officer shall keep a simplified record of the nec- essary information in order to ensure that the manifest and export declara- tions are filed not later than the sev- enth business day after arrival in Puer- to Rico.
(d) Upon arrival of a vessel of the United States at a port in any State,
the District of Columbia, or Puerto Rico from a port in noncontiguous ter- ritory other than Puerto Rico, the master shall immediately report its ar- rival and shall prepare, produce, and file a Cargo Declaration in the form and manner and at the times specified in §§ 4.7 and 4.9 but shall not be re- quired to make entry. If the vessel pro- ceeds directly to another port in any State, the District of Columbia, or Puerto Rico, the master shall prepare, produce, and file a Cargo Declaration in the form and manner and at the times specified in § 4.85 but no permit to proceed on the Vessel Entrance or Clearance Statement, Customs Form 1300, shall be required for the purposes of this paragraph. No cargo shall be un- laden from any such vessel until Cargo Declarations have been filed and a per- mit to unlade has been issued in ac- cordance with the procedure specified in § 4.30.
(e) No vessel shall bring guano to the United States from a guano island ap- pertaining to the United States (see 48 U.S.C. 1411) unless such a vessel is enti- tled to engage in the coastwide trade.
(f) No vessel owned by a corporation which qualifies as a citizen under the Act of September 2, 1958 (46 U.S.C. 883– 1) shall, while under demise or bareboat charter from such corpora- tion, be granted clearance or permitted to depart in trade with noncontiguous territory.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69–266, 34 FR 20423, Dec. 31, 1969: T.D. 71– 169, 36 FR 12604, July 2, 1971; T.D. 77–255, 42 FR 56323, Oct. 25, 1977; T.D. 79–276, 44 FR 61956, Oct. 29, 1979; T.D. 93–61, 58 FR 41425, Aug. 4, 1993; T.D. 93–96, 58 FR 67317, Dec. 21, 1993; T.D. 00–22, 65 FR 16516, Mar. 29, 2000]
§ 4.85 Vessels with residue cargo for domestic ports.
(a) Any foreign vessel or documented vessel with a registry or, where appro- priate, a Great Lakes license endorse- ment, arriving from a foreign port with cargo or passengers manifested for ports in the United States other than the port of first arrival, may proceed with such cargo or passengers from port to port, provided a bond on Cus- toms Form 301, containing the bond conditions set forth in § 113.64 of this
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115 ‘‘* * * Any vessel arriving from a foreign port or place having on board merchandise shown by the manifest to be destined to a port or ports in the United States other than the port of entry at which such vessel first arrived and made entry may proceed with such merchandise from port to lading there- of.’’ (Tariff Act of 1930, sec. 442; 19 U.S.C. 1442)
116-118 [Reserved]
chapter relating to international car- riers in a suitable amount is on file with the director of the port of first entry. 115 No additional bond shall be required at subsequent ports of entry. Before the vessel departs from the port of first arrival, the master shall obtain from the port director a certified copy of the complete inward foreign mani- fest (hereinafter referred to as the traveling manifest). The certified copy shall have a legend similar to the fol- lowing endorsed on the Vessel En- trance or Clearance Statement, Cus- toms Form 1300:
llllllllllllllllllllllll
Port Date Certified to be a true copy of the original
inward foreign manifest.
———————————— Signature and title
(b)(1) Before a vessel proceeds from one domestic port to another with cargo or passengers on board as de- scribed in paragraph (a) of this section, the master must present to the direc- tor of such port of departure an appli- cation in triplicate on Customs Form 1300 for a permit to proceed to the next port. When a port director grants the permit on Customs Form 1300, the fol- lowing legend must be endorsed on the form:
Port Date Permission is granted to proceed to the
port named in item 12. llll
Signature and title
(2) The duplicate must be attached to the traveling manifest and the trip- licate (the permit to proceed to be de- livered at the next port) must be re- turned to the master, together with the traveling manifest and the vessel’s document, if on deposit. If no inward foreign cargo or passengers are to be discharged at the next port, that fact
must be indicated on Customs Form 1300 by inserting ‘‘To load only’’ in pa- rentheses after the name of the port to which the vessel is to proceed. The traveling Crew’s Effects Declaration covering articles acquired abroad by officers and members of the crew, to- gether with the unused crewmembers’ declarations prepared for such articles, will be placed in a sealed envelope ad- dressed to the appropriate Customs of- ficer at the next port and given to the master for delivery.
(c)(1) Upon the arrival of a vessel at the next and each succeeding domestic port with inward foreign cargo or pas- sengers still on board, the master must immediately report its arrival and make entry within 48 hours. To make such entry, he must deliver to the port director the vessel’s document, the per- mit to proceed (Customs Form 1300 en- dorsed in accordance with paragraph (b) of this section), the traveling mani- fest, and the traveling Crew’s Effects Declaration (Customs Form 1304), to- gether with the crewmembers’ declara- tions received on departure from the previous port. The master must also present an abstract manifest consisting of a newly executed Vessel Entrance or Clearance Statement, Customs Form 1300, a Cargo Declaration, Customs Form 1302, and a Passenger List, Cus- toms and Immigration Form I–418, in such number of copies as may be re- quired for local Customs purposes, of any cargo or passengers on board mani- fested for discharge at that port, a Crew’s Effects Declaration in duplicate of all unentered articles acquired abroad by officers and crewmembers which are still on board, a Ship’s Stores Declaration, Customs Form 1303, in duplicate of the sea or ship’s stores remaining on board, and if appli- cable, the Cargo Declaration required by § 4.86. If no inward foreign cargo or passengers are to be discharged, the Cargo Declaration or Passenger List may be omitted from the abstract manifest, and the following legend must be placed in item 15 of the Vessel Entrance or Clearance Statement:
Vessel on an inward foreign voyage with residue cargo/passengers for llll. No cargo or passengers for discharge at this port.
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(2) The traveling manifest, together with a copy of the newly executed Ves- sel Entrance or Clearance Statement, will serve the purpose of a copy of an abstract manifest at the port where it is finally surrendered.
(d) If boarding is required before the port director will issue a permit or spe- cial license to lade or unlade, the ab- stract manifest described in paragraph (c) of this section shall be ready for presentation to the boarding officer.
(e) The traveling manifest shall be surrendered to the director of the final domestic port of discharge of the cargo, except that if residue foreign cargo re- mains on board for discharge at a for- eign port or ports, the traveling mani- fest shall be surrendered at the final port of departure from the United States. However, it shall not be surren- dered at the port from which the vessel departs for another United States port, via an intermediate foreign port, under § 4.89 if residue foreign cargo remains on board for discharge at a subsequent U.S. port. The traveling Crew’s Effects Declaration shall be finally surren- dered to the director of any port from which the vessel will depart directly for a foreign port.
[T.D. 71–169, 36 FR 12604, July 2, 1971, as amended by T.D. 77–255, 42 FR 56323, Oct. 25, 1977; T.D. 83–214, 48 FR 46513, Oct. 13, 1983; T.D. 84–213, 49 FR 41164, Oct. 19, 1984; T.D. 92– 74, 57 FR 35752, Aug. 11, 1992; T.D. 93–96, 58 FR 67317, Dec. 21, 1993; T.D. 94–24, 59 FR 13200, Mar. 21, 1994; T.D. 00–22, 65 FR 16516, Mar. 29, 2000]
§ 4.86 Intercoastal residue—cargo pro- cedure; optional ports.
(a) When a vessel arrives at an Atlan- tic or Pacific coast port from a foreign port or ports with residue cargo for de- livery at a port or ports on the oppo- site coast or on the Great Lakes, or where such arrival is at a port on the Great Lakes, with residue cargo for de- livery at a port or ports on the Atlan- tic or Pacific coasts, or both, and the master, owner, or agent is unable at that time to designate the specific port or ports of discharge of that residue cargo, the Cargo Declaration, Customs Form 1302, filed on entry in accordance with § 4.7(b) shall show such cargo as destined for ‘‘optional ports, Atlantic coast,’’ or ‘‘optional ports, Pacific coast,’’ or ‘‘optional ports, Great Lakes
coast,’’ as the case may be. The trav- eling manifest shall be similarly noted. Upon arrival of the vessel at the first port on the next coast, the master, owner, or agent must designate the port or ports of discharge of residue cargo as required by section 431, Tariff Act of 1930.
(b) For this purpose, the master shall furnish with the other papers required upon entry a Cargo Declaration, Cus- toms Form 1302 in original only of in- ward foreign cargo remaining on board for discharge at optional ports on that coast, and the Cargo Declaration, must designate the specific ports of intended discharge for that cargo. The traveling manifest shall be amended to agree with that Cargo Declaration so as to show the newly designated ports of dis- charge on that coast and shall be used to verify the abstract Cargo Declara- tions surrendered at subsequent ports on that coast.
[T.D. 77–255, 42 FR 56323, Oct 25, 1977]
§ 4.87 Vessels proceeding foreign via domestic ports.
(a) Any foreign vessel or documented vessel with a registry may proceed from port to port in the United States to lade cargo or passengers for foreign ports.
(b) When applying for a clearance from the first and each succeeding port of lading, the master must present to the port director a Vessel Entrance or Clearance Statement, Customs Form 1300, in duplicate and a Cargo Declara- tion Outward With Commercial Forms, Customs Form 1302–A, in accordance with § 4.63(a), of all the cargo laden for export at that port. The Vessel En- trance or Clearance Statement must clearly indicate all previous ports of lading.
(c) Upon compliance with the appli- cable provisions of § 4.61, the port direc- tor will grant the permit to proceed by making the endorsement prescribed by § 4.85(b) on the Vessel Entrance or Clearance Statement, Customs Form 1300. One copy will be returned to the master, together with the vessel’s doc- ument if on deposit. The traveling Crew’s Effects Declaration, Customs Form 1304, together with any unused crewmembers’ declarations, will be placed in a sealed envelope addressed
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U.S. Customs and Border Protection, DHS; Treasury § 4.88
119 ‘‘Any vessel having on board merchan- dise shown by the manifest to be destined to a foreign port or place may, after the report and entry of such vessel under the provisions of this Act, proceed to such foreign port of destination with the cargo so destined there- for, without unlading the same and without the payment of duty thereon. * * *’’ (Tariff Act of 1930, sec. 442; 19 U.S.C. 1442)
120 ‘‘The Secretary of the Treasury may by regulations require the production of landing certificates in respect of merchandise ex- ported from the United States, or in respect of residue cargo, in cases in which he deems it necessary for the protection of the rev- enue.’’ (Tariff Act of 1930, sec. 622; 19 U.S.C. 1622)
to the appropriate Customs officer at the next domestic port and returned to the master.
(d) On arrival at the next and each succeeding domestic port, the master must immediately report arrival. He must also make entry within 48 hours by presenting the vessel’s document, the permit to proceed on the Vessel En- trance or Clearance Statement, Cus- toms Form 1300, received by him upon departure from the last port, a Crew’s Effects Declaration, Customs Form 1304, in duplicate listing all unentered articles acquired aboard by officers and crew of the vessel which are still re- tained on board, and a Ship’s Stores Declaration, Customs Form 1303, in du- plicate of the stores remaining aboard. The master must also execute a Vessel Entrance or Clearance Statement. The traveling Crew’s Effects Declaration, together with any unused crew- members’ declarations returned to the master at the prior port, will be deliv- ered by him to the port director.
(e) Clearance shall be granted at the final port of departure from the United States in accordance with § 4.61.
(f) If a complete Cargo Declaration Outward With Commercial Forms, Cus- toms Form 1302–A (see § 4.63), and all required shipper’s export declarations are not available for filing before de- parture of a vessel from any port, clearance on the Vessel Entrance or Clearance Statement, Customs Form 1300, may be granted in accordance with § 4.75, subject to the limitation specified in § 4.75(c).
(g) When the procedure outlined in paragraph (f) of this section is followed at any port, the owner or agent of the vessel must deliver to the director of that port within 4 business days after the vessel’s clearance a Cargo Declara- tion Outward With Commercial Forms, Customs Form 1302–A (see § 4.63), and the export declarations to cover the cargo laden for export at that port.
[T.D. 77–255, 42 FR 56324, Oct. 25 1977, as amended by T.D. 83–214, 48 FR 46513, Oct. 13, 1983; T.D. 84–193, 49 FR 35485, Sept. 10, 1984; T.D. 92–74, 57 FR 35752, Aug. 11, 1992; T.D. 93– 96, 58 FR 67317, Dec. 21, 1993; T.D. 00–22, 65 FR 16517, Mar. 29, 2000; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.88 Vessels with residue cargo for foreign ports.
(a) Any foreign vessel or documented vessel with a registry which arrives at a port in the United States from a for- eign port shall not be required to unlade any merchandise manifested for a foreign destination provided a bond on Customs Form 301, containing the bond conditions set forth in § 113.64 of this chapter relating to international carriers in a suitable amount is on file with the director of the port of first entry. 119
(b) The port director shall designate the items of such merchandise, if any, for which foreign landing certifi- cates 120 will be required.
(c) If the vessel clears directly for- eign from the first port of arrival, cargo brought in from foreign ports and retained on board may be declared on the Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A (see § 4.63), by the inser- tion of the following statement:
All cargo declared on entry in this port as cargo for discharge at foreign ports and so shown on the Cargo Declaration filed upon entry has been and is retained on board.
If any such cargo has been landed, the Cargo Declaration shall describe each item of the cargo from a foreign port which has been retained on board (see § 4.63(a).
(d) If the vessel is proceeding to other ports in the United States with foreign residue cargo on board manifested for discharge at a foreign port or ports, a
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19 CFR Ch. I (4–1–12 Edition)§ 4.89
121 For the purposes of this part, an inward foreign voyage is completed at the port of final discharge of inbound passengers or cargo, and an outward foreign voyage begins at the port where cargo or passengers are first laden for carriage to a foreign destina- tion.
procedure like that set forth in § 4.85 shall be followed with respect thereto.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 77–255, 42 FR 56324, Oct. 25, 1977; T.D. 83– 214, 48 FR 46513, Oct. 13, 1983; T.D. 84–193, 49 FR 35485, Sept. 10, 1984; 49 FR 41164, Oct. 19, 1984; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.89 Vessels in foreign trade pro- ceeding via domestic ports and touching at intermediate foreign ports.
(a) A vessel proceeding from port to port in the United States in accordance with §§ 4.85, 4.86, or 4.87 may touch at an intermediate foreign port or ports to lade or discharge cargo or pas- sengers. In such a case the vessel shall obtain clearance from the last port of departure in the United States before proceeding to the intermediate foreign port or ports at which it is intended to touch. The Cargo Declaration Outward With Commercial Forms, Customs Form 1302–A (see § 4.63), shall show the cargo for such foreign destination in the manner provided in § 4.88(c).
(b) The master shall also present to the port director the Cargo Declaration or Cargo Declarations required by §§ 4.85, 4.86, or 4.87, and obtain a permit to proceed on the Vessel Entrance or Clearance Statement, Customs Form 1300, to the next port in the United States at which the vessel will touch.
(c) Upon arrival at the next port in the United States after touching at a foreign port or ports a report of arrival and entry shall be made. The Cargo Declaration, Customs Form 1302, filed at time of entry shall list the cargo laden at the intermediate foreign port or ports.
(d) The master shall also present to the port director the permit to proceed on the Vessel Entrance or Clearance Statement, Customs Form 1300, and the Cargo Declaration from the last previous port in the United States as provided for in §§ 4.85, 4.86, or 4.87.
[T.D. 77–255, 42 FR 56324, Oct. 25, 1977, as amended by T.D. 84–193, 49 FR 35485, Sept. 10, 1984; T.D. 00–22, 65 FR 16517, Mar. 29, 2000]
§ 4.90 Simultaneous vessel trans- actions.
(a) A vessel may proceed from port to port in the United States for the pur-
pose of engaging in two or more of the following transactions simulta- neously, 121 subject to the limitations hereafter mentioned in this section and the conditions stated in the sections indicated in the list:
(1) Coastwise trade (§ 4.80). (2) Touching at a foreign port while
in coastwise trade (§ 4.82). (3) Trade with noncontiguous terri-
tory of the United States (§ 4.84). (4) Carriage of residue cargo or pas-
sengers from foreign ports (§§ 4.85–4.86). (5) Carriage of cargo or passengers
laden for foreign ports (§ 4.87). (6) Carriage of residue cargo for for-
eign ports (§ 4.88). (b) When a vessel is engaged simulta-
neously in two or more such trans- actions, the master shall indicate each type of transaction in which the vessel is engaged in his application for clear- ance on Customs Form 1300. The mas- ter shall conform simultaneously to all requirements of these regulations with respect to each transaction in which the vessel is engaged.
(c) A foreign vessel is not authorized by this section to engage in the coast- wise trade, including trade with non- contiguous territory embraced within the coastwise laws.
(d) A documented vessel may engage in transactions (2), (4), (5), or (6) only if the vessel’s document has a registry. Such a vessel shall not engage in trans- actions (1) or (3) unless permitted by the endorsement on its Certificate of Documentation to do so.
(e) When a single entry bond, con- taining the bond conditions set forth in § 113.64, relating to international car- riers, is filed at any port and it is ap- plicable to the current voyage of the vessel, it shall cover all other trans- actions engaged in on that voyage of a
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U.S. Customs and Border Protection, DHS; Treasury § 4.92
122 See § 4.33. 123 See § 4.31. 124 [Reserved]
like nature and another bond con- taining the international carrier bond conditions need not be filed.
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 71–169, 36 FR 12605, July 2, 1971; T.D. 83– 214, 48 FR 46513, Oct. 13, 1983; T.D. 84–213, 49 FR 41164, Oct. 19, 1984; T.D. 00–22, 65 FR 16517, Mar. 29, 2000; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.91 Diversion of vessel; trans- shipment of cargo.
(a) If any vessel granted a permit to proceed from one port in the United States for another such port as pro- vided for in §§ 4.81(e), 4.85, 4.87, or 4.88, is, while en route, diverted to a port in the United States other than the one specified in the permit to proceed (Cus- toms Form 1300), 122 the owner or agent of the vessel immediately shall give notice of the diversion to the port di- rector who granted the permit, inform- ing him of the new destination of the vessel and requesting him to notify the director of the latter port. Such notifi- cation by the port director shall con- stitute an amendment of the permit previously granted, shall authorize the vessel to proceed to the new destina- tion, and shall be filed by the director of the latter port with the Form 1300 submitted on entry of the vessel.
(b) If any vessel cleared from a port in the United States for a foreign port as provided for in § 4.60 is diverted, while en route, to a port in the United States other than that from which it was cleared, the owner or agent of the vessel immediately shall give notice of the diversion to the port director who granted the clearance, informing him of the new destination of the vessel and requesting him to notify the director of the latter port. Such notification by the port director shall constitute a per- mit to proceed coastwise, and shall au- thorize the vessel to proceed to the new destination. On arrival at the new des- tination, the master shall immediately report arrival. He shall also make entry within 48 hours by presenting (1) the vessel’s document, (2) the foreign clearance on Form 1300 granted by the director of the port of departure, (3) a certificate that when the vessel was cleared from the last previous port in
the United States there were on board cargo and/or passengers for the ports named in the foreign clearance certifi- cate only and that additional cargo or passengers (have) (have not) been taken on board or discharged since such clearance was granted (specifying the particulars if any passengers or cargo were taken on board or dis- charged), (4) a Crew’s Effects Declara- tion in duplicate of all unentered arti- cles acquired abroad by the officers and crew of the vessel which are still re- tained on board, and (5) a Ship’s Stores Declaration in duplicate of the stores on board.
(c) In a case of necessity, a port di- rector may grant an application on Customs Form 3171 of the owner or agent of an established line for permis- sion to transship 123 all cargo and pas- sengers from one vessel of the United States to another such vessel under Customs supervision, if the first vessel is transporting residue cargo for do- mestic or foreign ports or is on an out- ward foreign voyage or a voyage to noncontiguous territory of the United States, and is following the procedure prescribed in §§ 4.85, 4.87, or 4.88. When inward foreign cargo or passengers are so transshipped to another vessel, a separate traveling manifest (Cargo Declaration, Customs Form 1302, or Passenger List, Customs and Immigra- tion Form I–418) shall be used for the transshipped cargo or passengers, whether or not the forwarding vessel is also carrying other residue cargo or passengers. An appropriate cross-ref- erence shall be made on the separate traveling manifest to show whether any other traveling manifest is being carried forward on the same vessel.
[T.D. 71–169, 36 FR 12605, July 2, 1971, as amended by T.D. 77–255, 42 FR 56324, Oct. 25, 1977; T.D. 93–96, 58 FR 67317, Dec. 21, 1993; T.D. 00–22, 65 FR 16517, Mar. 29, 2000]
§ 4.92 Towing. No vessel other than a vessel docu-
mented for the coastwise trade, or which would be entitled to be so docu- mented except for its tonnage (see § 4.80), may tow a vessel other than a vessel in distress between points in the
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19 CFR Ch. I (4–1–12 Edition)§ 4.93
125 ‘‘* * * Provided further, That upon such terms and conditions as the Secretary of the
Treasury by regulation may prescribe, and, if the transporting vessel is of foreign reg- istry, upon a finding by the Secretary of the Treasury, pursuant to information obtained and furnished by the Secretary of State, that the government of the nation of registry ex- tends reciprocal privileges to vessels of the United States, this section shall not apply to the transportation by vessels of the United States not qualified to engage in the coast- wise trade, or by vessels of foreign registry, of (a) empty cargo vans, empty lift vans, and empty shipping tanks, (b) equipment for use with cargo vans, lift vans, or shipping tanks, (c) empty barges specifically designed for carriage aboard a vessel, and (d) any empty instrument for international traffic exempt- ed from application of the customs laws by the Secretary of the Treasury pursuant to the provisions of section 322(a), Tariff Act of 1930 (19 U.S.C. 1322(a)), if the articles de- scribed in clauses (a) through (d) are owned or leased by the owner or operator of the transporting vessel and are transported for his use in handling his cargo in foreign trade; and (e) stevedoring equipment and material, if such equipment and material is owned or leased by the owner or operator of the transported vessel, or is owned or leased by the stevedoring company contracting for the lading or unlading of that vessel, and is transported without charge for use in the handling of cargo in foreign trade.’’ (46 U.S.C. 883).
126-130 [Reserved]
U.S. embraced within the coastwise laws, or for any part of such towing (46 U.S.C. App. 316(a)). The penalties for violation of this provision are a fine of from $350 to $1100 against the owner or master of the towing vessel and a fur- ther penalty against the towing vessel of $60 per ton of the towed vessel (46 U.S.C. App. 316(a), as adjusted by the Federal Civil Penalties Inflation Ad- justment Act of 1990).
[T.D. 93–12, 58 FR 13197, Mar. 10, 1993, as amended by T.D. 03–11, 68 FR 13820, Mar. 21, 2003; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 4.93 Coastwise transportation by cer- tain vessels of empty vans, tanks, and barges, equipment for use with vans and tanks; empty instruments of international traffic; stevedoring equipment and material; proce- dures.
(a) Vessels of the United States pro- hibited from engaging in the coastwise trade and vessels of nations found to grant reciprocal privileges to vessels of the United States may transport the following articles between points em- braced within the coastwise laws of the United States:
(1) Empty cargo vans, empty lift vans, and empty shipping tanks; equip- ment for use with cargo vans, lift vans, or shipping tanks; empty barges spe- cifically designed for carriage aboard a vessel and equipment, excluding pro- pulsion equipment, for use with such barges; and empty instruments of international traffic exempted from ap- plication of the Customs laws by the Secretary of the Treasury pursuant to the provisions of section 322(a), Tariff Act of 1930 (19 U.S.C. 1322(a)), if such articles are owned or leased by the owner or operator of the transporting vessel and are transported for his use in handling his cargo in foreign trade.
(2) Stevedoring equipment and mate- rial, if such equipment and material is owned or leased by the owner or oper- ator of the transporting vessel, or is owned or leased by the stevedoring company contracting for the lading or unlading of that vessel, and is trans- ported without charge for use in the handling of cargo in foreign trade. 125
(b)(1) The following nations have been found to extend privileges recip- rocal to those provided in paragraph (a) of this section for empty cargo vans, empty lift vans, and empty shipping tanks to vessels of the United States:
Antigua and Barbuda Australia Austria Bahamas, The Bahrain Belgium Bermuda Brazil Canada Chile China* Colombia Cyprus Denmark Ecuador Finland France Guatemala Germany, Federal
Republic of Greece Iceland
India Iran Ireland Israel Italy Ivory Coast Japan Kuwait Liberia Luxembourg Malta Marshall Islands,
Republic of the Mexico Netherlands Netherlands Antilles Norway Pakistan Philippines Polish People’s
Republic Portugal
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U.S. Customs and Border Protection, DHS; Treasury § 4.94
Republic of Korea Republic of Panama Republic of
Singapore Republic of Zaire St. Vincent and the
Grenadines Saudi Arabia South Africa Spain Sweden Taiwan
Union of Soviet Socialist Republics
United Arab Emirates
United Kingdom (including The Cayman Islands and Hong Kong)
Vanuatu, Republic of Yugoslavia, Socialist
Federal Republic of
*See also Taiwan
(2) The following nations have been found to extend similar reciprocal privileges in respect to the other arti- cles mentioned in paragraph (a) of this section:
Antigua and Barbuda Australia Austria Bahamas, The Bahrain Belgium Bermuda Brazil Chile Colombia Denmark Federal Republic of
Germany Finland France Greece Guatemala Iceland India Ireland Israel Italy Ivory Coast Kuwait Liberia Luxembourg Malta
Mexico Netherlands Netherlands Antilles Norway Polish People’s
Republic Portugal Republic of Korea Republic of Panama Republic of
Singapore Republic of Zaire St. Vincent and the
Grenadines South Africa Spain Sweden Taiwan Union of Soviet
Socialist Republics United Arab
Emirates United Kingdom
(including The Cayman Islands and Hong Kong)
Vanuatu, Republic of
(c) Any Cargo Declaration, Customs Form 1302, required to be filed under this part by any foreign vessel shall de- scribe any article mentioned in para- graph (a) of this section laden aboard and transported from one United States port to another, giving its iden- tifying number or symbol, if any, or such other identifying data as may be appropriate, the names of the shipper and consignee, and the destination. The Cargo Declaration shall also in- clude a statement (1) that the articles specified in paragraph (a)(1) of this sec- tion are owned or leased by the owner or operator of the transporting vessel and are transported for his use in hand-
ing his cargo in foreign trade; or (2) that the stevedoring equipment and material specified in paragraph (a)(2) of this section is owned or leased by the owner or operator of the transporting vessel, or is owned or leased by the ste- vedoring company contracting for the lading or unlading of that vessel, and is transported without charge for his use in handling his cargo in foreign trade. If the director of the port of lading is satisfied that there will be sufficient control over the coastwise transpor- tation of the article without identi- fying it by number or symbol or such other identifying data on the Cargo Declaration, he may permit the use of a Cargo Declaration that does not in- clude such information provided the Cargo Declaration includes a state- ment, that the director of the port of unlading will be presented with a state- ment at the time of entry of the vessel that will list the identifying number or symbol or other appropriate identi- fying data for the article to be unladen at that port. Applicable penalties under section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584), shall be as- sessed for violation of this paragraph.
[T.D. 68–302, 33 FR 18436, Dec. 12, 1968]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 4.93, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
GENERAL
§ 4.94 Yacht privileges and obligations. (a) Any documented vessel with a
pleasure license endorsement, as well as any undocumented American pleas- ure vessel, shall be used exclusively for pleasure and shall not transport mer- chandise nor carry passengers for pay. Such a vessel which is not engaged in any trade nor in any way violating the Customs or navigation laws of the U.S. may proceed from port to port in the U.S. or to foreign ports without clear- ing and is not subject to entry upon its arrival in a port of the U.S., provided it has not visited a hovering vessel, re- ceived merchandise while in the cus- toms waters beyond the territorial sea, or received merchandise while on the high seas. Such a vessel shall imme- diately report arrival to Customs when
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19 CFR Ch. I (4–1–12 Edition)§ 4.94
arriving in any port or place within the U.S., including the U.S. Virgin Islands, from a foreign port or place.
(b) A cruising license may be issued to a yacht of a foreign country only if it has been made to appear to the satis- faction of the Secretary of the Treas- ury that yachts of the United States are allowed to arrive at and depart from ports in such foreign country and to cruise in the waters of such ports without entering or clearing at the customhouse thereof and without the payment of any charges for entering or clearing, dues, duty per ton, tonnage, taxes, or charges for cruising licenses. It has been made to appear to the satis- faction of the Secretary of the Treas- ury that yachts of the United States are granted such privileges in the fol- lowing countries:
Argentina Australia Austria Bahama Islands Belgium Bermuda Canada Denmark Finland France Germany, Federal
Republic of Greece Honduras Ireland Italy Jamaica Liberia Marshall Islands
Netherlands New Zealand Norway Saint Kitts and Nevis Saint Vincent and
the Grenadines Sweden Switzerland Turkey United Kingdom and
the Dependencies: the Anguilla Islands, the Isle of Man, the British Virgin Islands, the Cayman Islands, and the Turks and Caicos Islands
(c) In order to obtain a cruising li- cense for a yacht of any country listed in paragraph (b) of this section, there shall be filed with the port director an application therefor executed by either the yacht owner or the master which shall set forth the owner’s name and address and identify the vessel by flag, rig, name, and such other matters as are usually descriptive of a vessel. The application shall also include a descrip- tion of the waters in which the yacht will cruise, and a statement of the probable time it will remain in such waters. Upon approval of the applica- tion, the port director will issue a cruising license in the form prescribed by paragraph (d) of this section permit- ting the yacht, for a stated period not to exceed one year, to arrive and de-
part from the United States and to cruise in specified waters of the United States without entering and clearing, without filing manifests and obtaining or delivering permits to proceed, and without the payment of entrance and clearance fees, or fees for receiving manifests and granting permits to pro- ceed, duty on tonnage, tonnage tax, or light money. The license shall be granted subject to the condition that the vessel shall not engage in trade or violate the laws of the United States in any respect. Upon the vessel’s arrival at any port or place within the U.S. or the U.S. Virgin Islands, the master shall comply with 19 U.S.C. 1433 by im- mediately reporting arrival at the nearest Customs facility or other place designated by the port director. Indi- viduals shall remain on board until di- rected otherwise by the appropriate Customs officer, as provided in 19 U.S.C. 1459.
(d) Cruising licenses shall be in the following form:
LICENSE TO CRUISE IN THE WATERS OF THE UNITED STATES
To Port Directors: For a period of llll from llll(Date)
the llll(Flag) llll (Rig) yacht llll(Name) belonging to llllllll of (Owner’s name) llllllll(Address) shall be permitted to arrive at and depart from the United States and to cruise in the waters of the Customs port of llllllllllllllllllllllll
(Name of port or ports) without entering and clearing, without filing manifests and obtaining or delivering per- mits to proceed, and without the payment of entry and clearance fees, or fees for receiv- ing manifests and granting permits to pro- ceed, duty on tonnage, tonnage tax, or light money.
This license is granted subject to the con- dition that the yacht named herein shall not engage in trade or violate the laws of the United States in any respect. Upon arrival at each port or place in the United States, the master shall report the fact of arrival to the Customs officer at the nearest customhouse. Such report shall be immediately made.
Issued this lllll day of lllllll, 19ll llllllllllllllllllllllll
(Port Director of Customs)
WARNING: This vessel is dutiable: (1) If owned by a resident of the United
States (including Puerto Rico), or brought into the United States (including Puerto
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U.S. Customs and Border Protection, DHS; Treasury § 4.94a
Rico), for sale or charter to a resident there- of, or
(2) If brought into the United States (in- cluding Puerto Rico) by a nonresident free of duty as part of personal effects and sold or chartered within one year from date of entry.
Any offer to sell or charter (for example, a listing with yacht brokers or agents) is con- sidered evidence that the vessel was brought in for sale or charter to a resident or, if made within one year of entry of a vessel brought in free of duty as personal effects, that the vessel no longer is for the personal use of the non-resident.
If the vessel is sold or chartered, or offered for sale or charter, in the circumstances de- scribed, without the owner first having filed a consumption entry and having paid duty, the vessel may be subject to seizure or to a monetary claim equal to the value of the vessel. See Chapter 89, Additional U.S. Note 1, HTSUS, and subheadings 8903.10, 8903.91, 8903.92, 8903.99.10, 8903.99.20, and 8903.99.90, HTSUS.
(e) A foreign-flag yacht which is not in possession of a cruising license shall be required to comply with the laws ap- plicable to foreign vessels arriving at, departing from, and proceeding be- tween ports of the United States.
[T.D. 69–266, 34 FR 20423, Dec. 31, 1969]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 4.94, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 4.94a Large yachts imported for sale. (a) General. An otherwise dutiable
vessel used primarily for recreation or pleasure and exceeding 79 feet in length that has been previously sold by a manufacturer or dealer to a retail con- sumer and that is imported with the intention to offer for sale at a boat show in the United States may qualify at the time of importation for a defer- ral of entry completion and deposit of duty. The following requirements and conditions will apply in connection with a deferral of entry completion and duty deposit under this section:
(1) The importer of record must cer- tify to Customs in writing that the ves- sel is being imported pursuant to 19 U.S.C. 1484b for sale at a boat show in the United States;
(2) The certification referred to in paragraph (a)(1) of this section must be accompanied by the posting of a single
entry bond containing the terms and conditions set forth in appendix C of part 113 of this chapter. The bond will have a duration of 6 months after the date of importation of the vessel, and no extensions of the bond period will be allowed;
(3) The filing of the certification and the posting of the bond in accordance with this section will permit Customs to determine whether the vessel may be released;
(4) All subsequent transactions with Customs involving the vessel in ques- tion, including any transaction re- ferred to in paragraphs (b) through (d) of this section, must be carried out in the same port of entry in which the certification was filed and the bond was posted under this section; and
(5) The vessel in question will not be eligible for issuance of a cruising li- cense under § 4.94 and must comply with the laws respecting vessel entry and clearance when moving between ports of entry during the 6-month bond period prescribed under this section.
(b) Exportation within 6-month period. If a vessel for which entry completion and duty payment are deferred under paragraph (a) of this section is not sold but is exported within the 6-month bond period specified in paragraph (a)(2) of this section, the importer of record must inform Customs in writing of that fact within 30 calendar days after the date of exportation. The bond posted with Customs will be returned to the importer of record and no entry completion and duty payment will be required. The exported vessel will be precluded from reentry under the terms of paragraph (a) of this section for a period of 3 months after the date of exportation.
(c) Sale within 6-month period. If the sale of a vessel for which entry comple- tion and duty payment are deferred under paragraph (a) of this section is completed within the 6-month bond pe- riod specified in paragraph (a)(2) of this section, the importer of record within 15 calendar days after completion of the sale must complete the entry by filing an Entry Summary (Customs Form 7501) and must deposit the appro- priate duty (calculated at the applica- ble rates provided for under subheading
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131a Except as otherwise provided by treaty or convention to which the United States is a party, no foreign-flag vessel shall, whether documented as a cargo vessel or otherwise, land in a port of the United States its catch of fish taken on board such vessels on the high seas or fish products processed there- from, or any fish or fish products taken on board such vessel on the high seas from a vessel engaged in fishing operations or in the processing of fish or fish products.’’ (46 U.S.C. 251)
132 [Reserved]
8903.91.00 or 8903.92.00 of the Har- monized Tariff Schedule of the United States and based upon the value of the vessel at the time of importation). Upon entry completion and deposit of duty under this paragraph, the bond posted with Customs will be returned to the importer of record.
(d) Expiration of bond period. If the 6- month bond period specified in para- graph (a)(2) of this section expires without either the completed sale or the exportation of a vessel for which entry completion and duty payment are deferred under paragraph (a) of this section, the importer of record within 15 calendar days after expiration of that 6-month period must complete the entry by filing an Entry Summary (Customs Form 7501) and must deposit the appropriate duty (calculated at the applicable rates provided for under sub- heading 8903.91.00 or 8903.92.00 of the Harmonized Tariff Schedule of the United States and based upon the value of the vessel at the time of importa- tion). Upon entry completion and de- posit of duty under this paragraph, the bond posted with Customs will be re- turned to the importer of record, and a new bond on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter, may be required by the appropriate port director.
[68 FR 13625, Mar. 20, 2003]
§ 4.95 Records of entry and clearance of vessels.
Permanent records shall be prepared at each customhouse of all entries of vessels on Customs Form 1400 and of all clearances and permits to proceed on Customs Form 1401. Whenever a vessel is diverted, as provided for in § 4.91 (a) or (b), Customs Form 1401 shall be amended to show the new destination. These records shall be open to public inspection.
[T.D. 82–224, 47 FR 53727, Nov. 29, 1982]
§ 4.96 Fisheries. (a) As used in this section: (1) The term ‘‘convention vessel’’
means a Canadian fishing vessel which, at the time of its arrival in the United States, is engaged only in the North Pacific halibut fishery and which is therefore entitled to the privileges pro-
vided for by the Halibut Fishing Ves- sels Convention between the United States and Canada signed at Ottawa, Canada, on March 24, 1950 (T.D. 52862);
(2) The term ‘‘nonconvention fishing vessel’’ means any vessel other than a convention vessel which is employed in whole or in part in fishing at the time of its arrival in the United States and
(i) Which is documented under the laws of a foreign county,
(ii) Which is undocumented, of 5 net tons or over, and owned in whole or in part by a person other than a citizen of the United States, or
(iii) Which is undocumented, of less than 5 net tons, and owned in whole or in part by a person who is neither a cit- izen nor a resident of the United States;
(3) The term ‘‘nonconvention cargo vessel’’ means any vessel which is not employed in fishing at the time of its arrival in the United States, but which is engaged in whole or in part in the transportation of fish or fish prod- ucts 131a and
(i) Which is documented under the laws of a foreign country or
(ii) Which is undocumented and owned by a person other than a citizen of the United States;
(4) The term ‘‘treaty vessel’’ means a Canadian fishing vessel which at the time of its arrival in the United States is engaged in the albacore tuna fishery and which is therefore entitled to the privileges provided for by the treaty with Canada on Pacific Coast Albacore Tuna Vessels and Port Privileges, en- tered into force at Ottawa, Canada, on July 29, 1981 (T.D. 81–227); and
(5) The term ‘‘fishing’’ means the planting, cultivation, or taking of fish, shell fish, marine animals, pearls, shells, or marine vegetation, or the transportation of any of those marine
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products to the United States by the taking vessel or another vessel under the complete control and management of a common owner or bareboat charterer.
(b) Except as otherwise provided by treaty or convention to which the United States is a party (see para- graphs (d) and (g) of this section), no foreign-flag vessel shall, whether docu- mented as a cargo vessel or otherwise, land in a port of the United States its catch of fish taken on board such ves- sel on the high seas or fish products processed therefrom, or any fish or fish products taken on board such vessel on the high seas from a vessel engaged in fishing operations or in the processing of fish or fish products. (46 U.S.C. 251). This prohibition applies regardless of the intended ultimate disposition of the fish or fish products (e.g., it applies to transshipments from the foreign vessel to another vessel in United States territorial waters; it applies to landing for transshipment in bond to Canada or Mexico; it applies to landing for exportation under bond; and it ap- plies to landing in a Foreign Trade Zone). However, the prohibition is lim- ited to fish, or fish products processed therefrom, taken on board the foreign vessel on the high seas.
(c) A vessel of the United States to be employed in the fisheries must have a Certificate of Documentation endorsed with a fishery license. ‘‘Fisheries’’ in- cludes processing, storing, transporting (except in foreign commerce), planting, cultivating, catching, taking, or har- vesting fish, shellfish, marine animals, pearls, shells, or marine vegetation in the navigable waters of the United States or the exclusive economic zone.
(d) A convention vessel may come into a port of entry on the Pacific coast of the United States, including Alaska, to land its catch of halibut and incidentally-caught sable fish, or to se- cure supplies, equipment, or repairs. Such a vessel may come into any other port of entry or, if properly authorized to do so under § 101.4(b) of this chapter, into any place other than a port of entry, for the purpose of securing sup- plies, equipment, or repairs only, but shall not land its catch. A convention vessel which comes into the United States as provided for in this para-
graph shall comply with the usual re- quirements applicable to foreign ves- sels arriving at and departing from ports of the United States.
(e) A nonconvention fishing vessel, other than a treaty vessel, may come into a port of entry in the United States or, if granted permission under § 101.4(b) of this chapter, into a place other than a port of entry for the pur- pose of securing supplies, equipment, or repairs, but shall not land its catch. A nonconvention fishing vessel which comes into the United States as pro- vided for in this paragraph shall com- ply with the usual requirements appli- cable to foreign vessels arriving at and departing from ports of the United States.
(f) A nonconvention cargo vessel, al- though not prohibited by law from coming into the United States, shall not be permitted to land in the United States its catch of fish taken on the high seas or any fish or fish products taken on board on the high seas from a vessel employed in fishing or in the processing of fish or fish products, but may land fish taken on board at any place other than the high seas upon compliance with the usual require- ments. Before any such fish may be landed the master shall satisfy the port director that the fish were not taken on board on the high seas by presenting declarations of the master and two or more officers or members of the crew of the vessel, of whom the person next in authority to the master shall be one, or other evidence acceptable to the port director which establishes the place of lading to his satisfaction.
(g) A treaty vessel may come into a port or place of the United States named in Annex B of the Treaty with Canada on Pacific Coast Albacore Tuna Vessels and Port Privileges to land its catch of albacore tuna, or to secure fuel, supplies, equipment and repairs. Such a vessel may come into any other port of entry or, if properly authorized to do so under § 101.4(b) of this chapter, into any place other than a port of entry, for the purpose of securing sup- plies, equipment, or repairs only, but shall not land its catch. A treaty vessel which comes into the United States as provided for in this paragraph shall comply with the usual requirements
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133 ‘‘No foreign vessel shall, under penalty of forfeiture, engage in salvaging operations on the Atlantic or Pacific coast of the
United States, in any portion of the Great Lakes or their connecting or tributary wa- ters, including any portion of the Saint Law- rence River through which the international boundary line extends, or in territorial wa- ters of the United States on the Gulf of Mex- ico, except when authorized by a treaty or in accordance with the provisions of section 725 of this title: Provided, however, That if, on in- vestigation, the Secretary of the Treasury is satisfied that no suitable vessel wholly owned by a person who is a citizen of the United States and documented under the laws of the United States or numbered pur- suant to section 288 of this title, is available in any particular locality he may authorize the use of a foreign vessel or vessels in sal- vaging operations in that locality and no penalty shall be incurred for such authorized use.’’ (46 U.S.C. 316(d))
‘‘Nothing in this section shall be held or construed to prohibit or restrict any assist- ance to vessels or salvage operations author- ized by Article II of the treaty between the United States and Great Britain ‘concerning reciprocal rights for United States and Can- ada in the conveyance of prisoners and wrecking and salvage’ signed at Washington, May 18, 1908 (35 Stat. 2036), or by the treaty between the United States and Mexico ‘to fa- cilitate assistance to and salvage of vessels in territorial waters,’ signed at Mexico City, June 13, 1935 (49 Stat. 3359).’’ (46 U.S.C. 316(e))
134 ‘‘The High Contracting Parties agree that vessels and wrecking appliances, either from the United States or from the Domin- ion of Canada, may salve any property wrecked and may render aid and assistance
applicable to foreign vessels arriving at and departing from ports of the United States.
(h) A convention vessel, a nonconven- tion fishing vessel, a nonconvention cargo vessel, or a treaty vessel, which arrives in the United States in distress shall be subject to the usual require- ments applicable to foreign vessels ar- riving in distress. While in the United States, supplies, equipment, or repairs may be secured, but, except as speci- fied in the next sentence, fish shall not be landed unless the vessel’s master, or other authorized representative of the owner, shows to the satisfaction of the port director that it will not be pos- sible, by the exercise of due diligence, for the vessel to transport its catch to a foreign port without spoilage, in which event the port director may allow the vessel upon compliance with all applicable requirements, to land, transship, or otherwise dispose of its catch. Nothing herein shall prevent, upon compliance with normal Customs procedures, a convention vessel arriv- ing in distress from landing its catch of halibut and incidentally-caught sable fish at a port of entry on the Pacific coast, including Alaska; a foreign cargo vessel arriving in distress from landing its cargo of fish taken on board at any place not on the high seas; or a treaty vessel arriving in distress from landing its catch of albacore tuna at a port of entry on the Pacific coast, in- cluding Alaska.
[T.D. 82–144, 47 FR 35182, Aug. 13, 1982, as amended by T.D. 83–214, 48 FR 46513, Oct. 13, 1983; T.D. 83–214, 48 FR 50075, Oct. 31, 1983; T.D. 93–12, 58 FR 13197, Mar. 10, 1993]
§ 4.97 Salvage vessels. (a) Only a vessel of the United
States, a numbered motorboat owned by a citizen, or a vessel operating with- in the purview of paragraph (d) or (e) of this section, shall engage in any sal- vage operation in territorial waters of the United States unless an application addressed to the Commissioner of Cus- toms to use another specified vessel in a completely described operation has been granted. 133
(b) Upon receipt of such an applica- tion, the Commissioner of Customs will cause an investigation to be made im- mediately to determine whether a suit- able vessel of the United States or a suitable numbered motorboat owned by a citizen is available for the operation. If he finds that no such vessel is avail- able and that the facts otherwise war- rant favorable action, he will grant the application.
(c) If the application is granted, the applicant shall make a full report of the operation as soon as possible to the director of the port nearest the place where the operation was conducted.
(d) A Canadian vessel may engage in salvage operations on any vessel in any territorial waters of the United States in which Canadian vessels are per- mitted to conduct such operations by article II of the treaty between the United States and Great Britain signed on May 18, 1908, 134 or by section 725,
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to any vessels wrecked, disabled or in dis- tress in the waters or on the shores of the other country in that portion of the St. Law- rence River through which the International Boundary line extends, and, in Lake Ontario, Lake Erie, Lake St. Clair, Lake Huron, and Lake Superior, and in the Rivers Niagara, Detroit, St. Clair, and Ste. Marie, and the Canals at Sault Ste. Marie, and on the shores and in the waters of the other country along the Atlantic and Pacific Coasts within a dis- tance of thirty miles from the International Boundary on such Coasts.
‘‘It is further agreed that such reciprocal wrecking and salvage privileges shall include all necessary towing incident thereto, and that nothing in the Customs, Coasting or other laws or regulations of either country shall restrict in any manner the salving op- erations of such vessels or wrecking appli- ances.
‘‘Vessels from either country employed in salving in the waters of the other shall, as soon as practicable afterwards, make full re- port at the nearest custom house of the country in whose waters such salving takes place.’’ (35 Stat. 2036)
135 ‘‘Canadian vessels and wrecking appur- tenance may render aid and assistance to Ca- nadian or other vessels and property wrecked, disabled, or in distress in the wa- ters of the United States contiguous to the Dominion of Canada.
‘‘This section shall be construed to apply to the canal and improvement of the waters between Lake Erie and Lake Huron, and to the waters of the Saint Mary’s River and Canal: * * *.’’ (46 U.S.C. 725)
The waters of Lake Michigan are not con- tiguous to the Dominion of Canada within the meaning of this statute.
136 ‘‘The High Contracting Parties agree that vessels and rescue apparatus, public or private, of either country, may aid or assist vessels of their own nationality, including
the passengers and crews thereof, which may be disabled or in distress on the shores or within the territorial waters of the other country within a radius of seven hundred and twenty nautical miles of the intersection of the International Boundary Line and the coast of the Pacific Ocean, or within a radius of two hundred nautical miles of the inter- section of the International Boundary Line and the coast of the Gulf of Mexico.’’ (49 Stat. 3360)
title 46, United States Code. 135 If any such vessel engages in a salvage oper- ation in territorial waters of the United States, the owner or master of the vessel shall make a full report of the operation as soon as possible to the director of the port nearest the place where the operation was conducted.
(e) A Mexican vessel may engage in a salvage operation on a Mexican vessel in any territorial waters of the United States in which Mexican vessels are permitted to conduct such operations by the treaty between the United States and Mexico signed on June 13, 1935. 136
[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69–266, 34 FR 20423, Dec. 31, 1969]
§ 4.98 Navigation fees.
(a)(1) The Customs Service shall pub- lish a General Notice in the FEDERAL REGISTER and Customs Bulletin peri- odically, setting forth a revised sched- ule of navigation fees for the following services:
Fee No. and description of services
1 Entry of vessel, including American, from foreign port:
(a) Less than 100 net tons. (b) 100 net tons and over.
2 Clearance of vessel, including American, to foreign port:
(a) Less than 100 net tons. (b) 100 net tons or over.
3 Issuing permit to foreign vessel to proceed from port to port, and receiving mani- fest.
4 Receiving manifest of foreign vessel on arrival from another port, and granting a permit to unlade.
5 Receiving post entry. 6 [Reserved] 7 Certifying payment of tonnage tax for for-
eign vessels only. 8 Furnishing copy of official document, in-
cluding certified outward foreign mani- fest, and others not elsewhere enumer- ated.
The published revised fee schedule shall remain in effect until changed.
(2) The fees shall be calculated in ac- cordance with § 24.17(d) Customs Regu- lations (19 CFR 24.17(d)), and be based upon the amount of time the average service requires of a Customs officer in the fifth step of GS–9.
(3) The party requesting a vessel service described in paragraph (a)(1) of this section for which reimbursable overtime compensation is payable under 19 U.S.C. 267 or 19 U.S.C. 1451 and § 24.16 of this chapter shall pay only the applicable overtime charge, and not both the overtime charge and the fee specified in the fee schedule.
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(4) The revised fee schedule shall be made available to the public in Cus- toms offices.
(5) The respective fees shall be des- ignated in correspondence and reports by the applicable fee number.
(b) Fee 1 shall be collected at the first port of entry only. It shall not be collected from a vessel entering di- rectly from a port in noncontiguous territory of the United States nor from one entering at a port on a northern, northeastern, or northwestern frontier otherwise than by sea.
(c) Fee 2 shall be collected at the final port of departure from the United States. It shall be collected from a yacht or public vessel which obtains a clearance, but shall not be collected from a vessel clearing directly for a port in noncontiguous territory of the United States nor from one clearing from a port on the northern, north- eastern, or northwestern frontier oth- erwise than by sea. It shall be collected only upon the first clearance each year of a vessel making regular daily trips between a port of the United States and a port in Canada wholly upon inte- rior waters not navigable to the ocean.
(d) Fee 3 shall be collected for grant- ing a permit to a foreign vessel to pro- ceed to another Customs port. It shall be collected from a foreign vessel clear- ing directly for a port in noncontig- uous territory of the United States outside its Customs territory. This fee shall not be collected in the case of a foreign vessel proceeding on a voyage by sea from one port in the United States to another port via a foreign port. Only one fee shall be collected in case of simultaneous vessel trans- actions.
(e) Fee 4 shall be collected for receiv- ing the manifest of a foreign vessel ar- riving from another Customs port. It shall be collected from a foreign vessel entering directly from a port in non- contiguous territory of the United States outside its Customs territory. This fee shall not be collected in the case of a foreign vessel which arrives at one port in the United States from an- other port on a voyage by sea via a for- eign port. Only one fee shall be col- lected in the case of simultaneous ves- sel transactions.
(e–1) Fee 5 shall be collected from a foreign or American vessel at each port where the vessel is required to file a post entry in accordance with the pro- visions of § 4.12(a)(3). An original post entry may be supplemented by addi- tional post entries in instances where items were omitted from the original post entry. A separate fee shall be col- lected for each supplemental post entry made to the original post entry.
(f) [Reserved] (g) Fee 7 shall be collected from for-
eign vessels only. (h) Fee 8 shall be collected for each
copy of any official document, whether certified or not, furnished to any per- son other than a Government officer.
(i) Private and commercial vessels, and passengers aboard commercial ves- sels, may be subject to the payment of fees for services provided in connection with their arrival as set forth in § 24.22 of this chapter.
(j) The loading or unloading of mer- chandise or passengers from a commer- cial vessel at a U.S. port may cause the harbor maintenance fee set forth in § 24.24 of this chapter to be assessed.
[T.D. 69–266, 34 FR 20423, Dec. 31, 1969, as amended by T.D. 74–194, 39 FR 26153, July 17, 1974; T.D. 80–25, 45 FR 3572, Jan. 18, 1980; T.D. 82–224, 47 FR 53727, Nov. 29, 1982; T.D. 84–149, 49 FR 28698, July 16, 1984; T.D. 86–109, 51 FR 21155, June 11, 1986; T.D. 87–44, 52 FR 10211, Mar. 30, 1987; T.D. 93–85, 58 FR 54282, Oct. 21, 1993]
§ 4.99 Forms; substitution. (a) Customs Forms 1300, 1302, 1302–A,
1303, and 1304 printed by private parties or foreign governments shall be accept- ed provided the forms so printed:
(1) Conform to the official Customs forms in wording arrangement, style, size of type, and paper specifications;
(2) Conform to the official Customs forms in size, except that:
(i) Each form may be printed on met- ric A4 size paper, 210 by 297 millimeters (approximately 81⁄4 by 112⁄3 inches).
(ii) The vertical format of Customs Forms 1300, 1302–A, 1303, and 1304 may be increased in size up to a maximum of 14 inches.
(iii) Customs Form 1302 may be re- duced in size to not less than either 81⁄2 by 11 inches or 210 by 297 millimeters (metric A4 size). If Customs Form 1302
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is reduced in size, the size of type used may be reduced proportionately.
(b) If instructions are printed on the reverse side of the official Customs form, the instructions may be omitted from the privately printed forms, but the instructions shall be followed.
(c) The port director, in his discre- tion, may accept a computer printout instead of Customs Form 1302 for use at a specific port. However, to ensure that computer printouts may be used at all ports, the private party or foreign gov- ernment first must obtain specific ap- proval from Headquarters, U.S. Cus- toms Service.
(d) Forms which do not comply with the requirements of this section are not acceptable without the specific ap- proval of the Commissioner of Cus- toms.
[T.D. 79–255, 44 FR 57088, Oct. 4, 1979; T.D. 00– 22, 65 FR 16517, Mar. 29, 2000]
§ 4.100 Licensing of vessels of less than 30 net tons.
(a) The application for a license to import merchandise in a vessel of less than 30 net tons in accordance with section 6, Anti-Smuggling Act of Au- gust 5, 1935, shall be addressed to the Secretary of the Treasury and deliv- ered to the directors of the ports where foreign merchandise is to be imported in such vessel.
(b) The application shall contain the following information:
(1) Name of the vessel, rig, motive power, and home port.
(2) Name and address of the owner. (3) Name and address of the master. (4) Net tonnage of the vessel. (5) Kind of merchandise to be im-
ported. (6) Country or countries of expor-
tation. (7) Ports of the United States where
the merchandise will be imported. (8) Whether the vessel will be used to
transport and import merchandise from a hovering vessel.
(9) Kind of document under which the vessel is operating.
(c) If the port director finds that the applicant is a reputable person and that the revenue would not be jeopard- ized by the issuance of a license, he may issue the license for a period not to exceed 12 months, incorporating
therein any special conditions he be- lieves to be necessary or desirable, and deliver it to the licensee.
(d) The master or owner shall keep the license on board the vessel at all times and exhibit it upon demand of any duly authorized officer of the United States. This license is personal to the licensee and is not transferable.
(e) The Secretary of the Treasury or the port director at whose office the li- cense was issued may revoke the li- cense if any of its terms have been will- fully or intentionally violated or for any other cause which may be consid- ered prejudicial to the revenue or oth- erwise against the interest of the United States.
[T.D. 72–211, 37 FR 16486, Aug. 15, 1972]
§ 4.101 Prohibitions against Customs officers and employees.
No Customs officer or employee shall:
(a) Own, in whole or in part, any ves- sel except a yacht or other pleasure boat;
(b) Act as agent, attorney, or con- signee for the owner or owners of any vessel, or of any cargo or lading on board the vessel; or
(c) Import or be concerned directly or indirectly in the importation of any merchandise for sale into the United States
[T.D. 78–394, 43 FR 49787, Oct. 25, 1978]
PART 7—CUSTOMS RELATIONS WITH INSULAR POSSESSIONS AND GUANTANAMO BAY NAVAL STA- TION
Sec. 7.1 Puerto Rico; spirits and wines with-
drawn from warehouse for shipment to; duty on foreign-grown coffee.
7.2 Insular possessions of the United States other than Puerto Rico.
7.3 Duty-free treatment of goods imported from insular possessions of the United States other than Puerto Rico.
7.4 Watches and watch movements from U.S. insular possessions.
7.11 Guantanamo Bay Naval Station.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1623, 1624; 48 U.S.C. 1406i.
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1 [Reserved] 2 ‘‘* * * Distilled spirits and wines which
are rectified in bonded manufacturing ware- houses, class six, and distilled spirits which are reduced in proof and bottled in such warehouses, shall be deemed to have been manufactured within the meaning of this section and may be withdrawn as herein- before provided, and likewise for shipment in bond to Puerto Rico, subject to the provi- sions of this section, and under such regula- tions as the Secretary of the Treasury may prescribe, there to be withdrawn for con- sumption or be rewarehoused and subse- quently withdrawn for consumption: Pro- vided, That upon withdrawal in Puerto Rico for consumption, the duties imposed by the customs laws of the United States shall be collected on all imported merchandise (in its condition as imported) and imported con- tainers used in the manufacture and putting up of such spirits and wines in such ware- houses: Provided further, That no internal- revenue tax shall be imposed on distilled spirits and wines rectified in class six ware- houses if such distilled spirits and wines are exported or shipped in accordance with the provisions of this section, * * *.’’ (Tariff Act of 1930, sec. 311, as amended; 19 U.S.C. 1311)
3 Section 319, Tariff Act of 1930, authorizes the Legislature of Puerto Rico to impose a duty on coffee imported into Puerto Rico, in- cluding coffee grown in a foreign country coming into Puerto Rico from the United States, and the Legislature of Puerto Rico has imposed such a duty.
§ 7.1 Puerto Rico; spirits and wines withdrawn from warehouse for shipment to; duty on foreign-grown coffee.
(a) When spirits and wines are with- drawn from a bonded manufacturing warehouse for shipment in bond to Puerto Rico pursuant to section 311, Tariff Act of 1930, as amended, 1,2 the warehouse withdrawal shall contain on the face thereof a statement of the kind and quantity of all imported mer- chandise (in its condition as imported) and imported containers used in the manufacture and putting up of such spirits and wines. The duty assessed on the imported merchandise and con- tainers so used, and their classification and value, shall be shown on the with- drawal in accordance with § 144.41 of this chapter. If no imported merchan- dise or containers have been used, the warehouse withdrawal shall bear an en- dorsement to that effect. (See §§ 191.105 and 191.106 of this chapter.)
(b) The spirits and wines shall be for- warded in accordance with the general provisions of the regulations governing the transportation of merchandise in bond, part 18 of this chapter.
(c) A regular entry shall be made for all foreign-grown coffee shipped to
Puerto Rico from the United States, but special Customs invoices shall not be required for such shipments. 3
(Secs. 311, 319, 484(a), 46 Stat. 691, as amend- ed, 696, 722, as amended; 19 U.S.C. 1311, 1319, 1484(a); R.S. 251, as amended, sec. 624, 46 Stat. 759 (19 U.S.C. 66, 1624))
[28 FR 14636, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17445, July 2, 1973; T.D. 83– 212, 48 FR 46770, Oct. 14, 1983; T.D. 98–16, 63 FR 11004, Mar. 5, 1998]
§ 7.2 Insular possessions of the United States other than Puerto Rico.
(a) Insular possessions of the United States other than Puerto Rico are also American territory but, because those insular possessions are outside the cus- toms territory of the United States, goods imported therefrom are subject to the rates of duty set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTSUS) except as otherwise provided in § 7.3 or in part 148 of this chapter. The principal such in- sular possessions are the U.S. Virgin Islands, Guam, American Samoa, Wake Island, Midway Islands, and Johnston Atoll. Pursuant to section 603(c) of the Covenant to Establish a Common- wealth of the Northern Mariana Islands in Political Union With the United States of America, Public Law 94–241, 90 Stat. 263, 270, goods imported from the Commonwealth of the Northern Mariana Islands are entitled to the same tariff treatment as imports from Guam and thus are also subject to the provisions of § 7.3 and of part 148 of this chapter.
(b) Importations into Guam, Amer- ican Samoa, Wake Island, Midway Is- lands, Johnston Atoll, and the Com- monwealth of the Northern Mariana Is- lands are not governed by the Tariff Act of 1930, as amended, or the regula- tions contained in this chapter. The customs administration of Guam is under the Government of Guam. The customs administration of American Samoa is under the Government of
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American Samoa. The customs admin- istration of Wake Island is under the jurisdiction of the Department of the Air Force (General Counsel). The cus- toms administration of Midway Islands is under the jurisdiction of the Depart- ment of the Navy. There is no customs authority on Johnston Atoll, which is under the operational control of the Defense Nuclear Agency. The customs administration of the Commonwealth of the Northern Mariana Islands is under the Government of the Common- wealth.
(c) The Secretary of the Treasury ad- ministers the customs laws of the U.S. Virgin Islands through the U.S. Cus- toms and Border Protection. The im- portation of goods into the U.S. Virgin Islands is governed by Virgin Islands law; however, in situations where there is no applicable Virgin Islands law or no U.S. law specifically made applica- ble to the Virgin Islands, U.S. laws and regulations shall be used as a guide and be complied with as nearly as possible. Tariff classification of, and rates of duty applicable to, goods imported into the U.S. Virgin Islands are established by the Virgin Islands legislature.
[T.D. 97–75, 62 FR 46439, Sept. 3, 1997, as amended by CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 7.3 Duty-free treatment of goods im- ported from insular possessions of the United States other than Puerto Rico.
(a) General. Under the provisions of General Note 3(a)(iv), Harmonized Tar- iff Schedule of the United States (HTSUS), the following goods may be eligible for duty-free treatment when imported into the customs territory of the United States from an insular pos- session of the United States:
(1) Except as provided in Additional U.S. Note 5 to Chapter 91, HTSUS, and except as provided in Additional U.S. Note 2 to Chapter 96, HTSUS, and ex- cept as provided in section 423 of the Tax Reform Act of 1986, as amended (19 U.S.C. 2703 note), goods which are the growth or product of any such insular possession, and goods which were man- ufactured or produced in any such insu- lar possession from materials that were the growth, product or manufacture of any such insular possession or of the
customs territory of the United States, or of both, provided that such goods:
(i) Do not contain foreign materials valued at either more than 70 percent of the total value of the goods or, in the case of goods described in section 213(b) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)), more than 50 percent of the total value of the goods; and
(ii) Come to the customs territory of the United States directly from any such insular possession; and
(2) Goods previously imported into the customs territory of the United States with payment of all applicable duties and taxes imposed upon or by reason of importation, provided that:
(i) The goods were shipped from the United States directly to the insular possession and are returned from the insular possession to the United States by direct shipment; and
(ii) There was no remission, refund or drawback of such duties or taxes in connection with the shipment of the goods from the United States to the in- sular possession.
(b) Origin of goods. For purposes of this section, goods shall be considered to be the growth or product of, or man- ufactured or produced in, an insular possession if:
(1) The goods are wholly the growth or product of the insular possession; or
(2) The goods became a new and dif- ferent article of commerce as a result of production or manufacture per- formed in the insular possession.
(c) Foreign materials. For purposes of this section, the term ‘‘foreign mate- rials’’ covers any material incor- porated in goods described in para- graph (b)(2) of this section other than:
(1) A material which was wholly the growth or product of an insular posses- sion or of the customs territory of the United States;
(2) A material which was substan- tially transformed in an insular posses- sion or in the customs territory of the United States into a new and different article of commerce which was then used in an insular possession in the production or manufacture of a new and different article which is shipped directly to the United States; or
(3) A material which may be im- ported into the customs territory of
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19 CFR Ch. I (4–1–12 Edition)§ 7.3
the United States from a foreign coun- try and entered free of duty either:
(i) At the time the goods which incor- porate the material are entered; or
(ii) At the time the material is im- ported into the insular possession, pro- vided that the material was incor- porated into the goods during the 18- month period after the date on which the material was imported into the in- sular possession.
(d) Foreign materials value limitation. For purposes of this section, the deter- mination of whether goods contain for- eign materials valued at more than 70 or 50 percent of the total value of the goods shall be made based on a com- parison between:
(1) The landed cost of the foreign ma- terials, consisting of:
(i) The manufacturer’s actual cost for the materials or, where a material is provided to the manufacturer without charge or at less than fair market value, the sum of all expenses incurred in the growth, production, or manufac- ture of the material, including general expenses, plus an amount for profit; and
(ii) The cost of transporting those materials to the insular possession, but excluding any duties or taxes assessed on the materials by the insular posses- sion and any charges which may accrue after landing; and
(2) The final appraised value of the goods imported into the customs terri- tory of the United States, as deter- mined in accordance with section 402 of the Tariff Act of 1930, as amended (19 U.S.C. 1401a).
(e) Direct shipment—(1) General. For purposes of this section, goods shall be considered to come to the United States directly from an insular posses- sion, or to be shipped from the United States directly to an insular possession and returned from the insular posses- sion to the United States by direct shipment, only if:
(i) The goods proceed directly to or from the insular possession without passing through any foreign territory or country;
(ii) The goods proceed to or from the insular possession through a foreign territory or country, the goods do not enter into the commerce of the foreign territory or country while en route to
the insular possession or the United States, and the invoices, bills of lading, and other shipping documents show the insular possession or the United States as the final destination; or
(iii) The goods proceed to or from the insular possession through a foreign territory or country, the invoices and other shipping documents do not show the insular possession or the United States as the final destination, and the goods:
(A) Remained under the control of the customs authority of the foreign territory or country;
(B) Did not enter into the commerce of the foreign territory or country ex- cept for the purpose of sale other than at retail, and the port director is satis- fied that the importation into the insu- lar possession or the United States re- sults from the original commercial transaction between the importer and the producer or the latter’s sales agent; and
(C) Were not subjected to operations in the foreign territory or country other than loading and unloading and other activities necessary to preserve the goods in good condition.
(2) Evidence of direct shipment. The port director may require that appro- priate shipping papers, invoices, or other documents be submitted within 60 days of the date of entry as evidence that the goods were shipped to the United States directly from an insular possession or shipped from the United States directly to an insular possession and returned from the insular posses- sion to the United States by direct shipment within the meaning of para- graph (e)(1) of this section, and such evidence of direct shipment shall be subject to such verification as deemed necessary by the port director. Evi- dence of direct shipment shall not be required when the port director is oth- erwise satisfied, taking into consider- ation the kind and value of the mer- chandise, that the goods qualify for duty-free treatment under General Note 3(a)(iv), HTSUS, and paragraph (a) of this section.
(f) Documentation. (1) When goods are sought to be admitted free of duty as provided in paragraph (a)(1) of this sec- tion, there shall be filed with the
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U.S. Customs and Border Protection, DHS; Treasury § 7.3
entry/entry summary a properly com- pleted certificate of origin on CBP Form 3229, signed by the chief or as- sistant chief customs officer or other official responsible for customs admin- istration at the port of shipment, showing that the goods comply with the requirements for duty-free entry set forth in paragraph (a)(1) of this sec- tion. Except in the case of goods which incorporate a material described in paragraph (c)(3)(ii) of this section, a certificate of origin shall not be re- quired for any shipment eligible for in- formal entry under § 143.21 of this chap- ter or in any case where the port direc- tor is otherwise satisfied that the goods qualify for duty-free treatment under paragraph (a)(1) of this section.
(2) When goods in a shipment not eli- gible for informal entry under § 143.21 of this chapter are sought to be admit- ted free of duty as provided in para-
graph (a)(2) of this section, the fol- lowing declarations shall be filed with the entry/entry summary unless the port director is satisfied by reason of the nature of the goods or otherwise that the goods qualify for such duty- free entry:
(i) A declaration by the shipper in the insular possession in substantially the following form:
I, llllllllll (name) of llllllllll (organization) do hereby declare that to the best of my knowledge and belief the goods identified below were sent directly from the United States on llllll, 19ll, to llllllllll (name) of llllllllll (organization) on llllllllll (insular possession) via the llllllllll (name of carrier) and that the goods remained in said insular possession until shipped by me directly to the United States via the llllllllll (name of carrier) on llllll, 19ll.
Marks Numbers Quantity Description Value
Dated at llllllll, this llll day of llllll, 19ll. Signature: llllllllllllllllll
(ii) A declaration by the importer in the United States in substantially the following form:
I, llllllllll (name), of llllllllll (organization) declare that the (above) (attached) declaration by the shipper in the insular possession is true and correct to the best of my knowledge and belief, that the goods in question were pre- viously imported into the customs territory of the United States and were shipped to the insular possession from the United States without remission, refund or drawback of any duties or taxes paid in connection with that prior importation, and that the goods arrived in the United States directly from the insular possession via the llllllllll (name of carrier) on llllll, 19ll.
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Signature)
(g) Warehouse withdrawals; drawback. Merchandise may be withdrawn from a bonded warehouse under section 557 of the Tariff Act of 1930, as amended (19 U.S.C. 1557), for shipment to any insu- lar possession of the United States other than Puerto Rico without pay- ment of duty, or with a refund of duty if the duties have been paid, in like manner as for exportation to foreign countries. No drawback may be allowed under section 313 of the Tariff Act of 1930, as amended (19 U.S.C. 1313), on goods manufactured or produced in the United States and shipped to any insu- lar possession. No drawback of inter- nal-revenue tax is allowable under 19 U.S.C. 1313 on goods manufactured or produced in the United States with the use of domestic tax-paid alcohol and shipped to Wake Island, Midway Is- lands or Johnston Atoll.
[T.D. 97–75, 62 FR 46439, Sept. 3, 1997, as amended by CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
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19 CFR Ch. I (4–1–12 Edition)§ 7.4
§ 7.4 Watches and watch movements from U.S. insular possessions.
(a) The issuance of an International Trade Administration Form ITA–360, Certificate of Entitlement to Secure the Refund of Duties on Watches and Watch Movements, by the Department of Commerce, authorizes a producer of watches in the U.S. insular possessions to file requests with CBP for the refund of duties paid on imports of watches, watch movements (including solid state watches and watch movements), and watch parts (excepting separate watch cases and any articles con- taining any materials to which rates of duty set forth in Column 2, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) apply). The amount of the refund requested may be up to the value specified in the certificate, pro- vided that the articles for which re- funds are requested were entered dur- ing a 3-year period beginning 2 years before the date of issuance of the Form ITA–360 certificate from the Depart- ment of Commerce.
(b) The Form ITA–360 may not be used to secure refunds. To secure a re- fund, the party requesting the refund of duties (claimant) must present to CBP Form ITA–361, Request for Refund of Duties on Watches and Watch Move- ments, properly executed, and authen- ticated by the Department of Com- merce.
(c) By completing Form ITA–361, the insular producer may either:
(1) Transfer its entitlement, in whole or in part, to any other party for any consideration agreed to by the insular producer and the transferee, or
(2) Request the refund of duties to itself.
(d) A claimant must file Form ITA– 361 with CBP at the same port where the watch import entry was originally filed and duties paid. The documenta- tion accompanying Form ITA–361 shall include a copy of the import entry, pro- viding proof that duty was paid on the watches and watch movements.
(e) When requesting the refund of du- ties on Form ITA–361, the claimant also must complete and submit to CBP the declaration on the form which reads as follows:
I declare that the information given above is true and correct to the best of my knowl-
edge and belief; that no notices of expor- tation of articles with benefit of drawback were filed upon exportation of this merchan- dise from the United States; that no liq- uidated refunds on the articles relating to the present claim have been paid; and that no protest or request for litigation for refund of duties paid and herewith claimed has been made.
(f) A fee of 1 percent will be deducted from each refund request as reimburse- ment to salaries and expenses of those CBP personnel processing the request.
(g) Form ITA–360 expires 1 year from its date of issuance. Any refund request on Form ITA–361 made by either the insular producer itself or any trans- feree named on Form ITA–360 must be filed within this 1-year period. This ex- piration date applies equally to all re- fund requests, whether a single request for the entire amount specified in the Form ITA–361 certificate or multiple requests for partial amounts. Refund requests will be accepted until either the amount specified in the certificate is depleted or until the certificate ex- pires 1 year from its date of issuance.
(h) CBP will process only those re- fund requests made in accordance with the joint rules of the Departments of Commerce and the Interior governing the issuance and handling of certifi- cates and the transfer of entitlements as contained in 15 CFR part 303.
[T.D. 84–16, 49 FR 1481, Jan. 12, 1984, as amended by T.D. 84–211, 49 FR 39044, Oct. 3, 1984; T.D. 89–1, 53 FR 51252, Dec. 21, 1988. Re- designated and amended by T.D. 97–75, 62 FR 46441, Sept. 3, 1997 ; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 7.11 Guantanamo Bay Naval Station. Articles of foreign origin may enter
the area (both land and water) of the Guantanamo Bay Naval Station free of duty, but such articles shall be subject to duty upon their subsequent entry into the United States.
[28 FR 14636, Dec. 31, 1963]
PART 10—ARTICLES CONDI- TIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.
Subpart A—General Provisions
ARTICLES EXPORTED AND RETURNED
Sec.
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10.1 Domestic products; requirements on entry.
10.3 Drawback; internal-revenue tax. 10.4 Internal-revenue marks; erasure. 10.5 Shooks and staves; cloth boards; port
director’s account. 10.6 Shooks and staves; claim for duty ex-
emption. 10.7 Substantial containers or holders. 10.8 Articles exported for repairs or alter-
ations. 10.8a Imported articles exported and re-
imported. 10.9 Articles exported for processing. 10.10 [Reserved]
ARTICLES ASSEMBLED ABROAD WITH UNITED STATES COMPONENTS
10.11 General. 10.12 Definitions. 10.13 Statutory provision: Subheading
9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
10.14 Fabricated components subject to the exemption.
10.15 Fabricated components not subject to the exemption.
10.16 Assembly abroad. 10.17 Valuation of exempted components. 10.18 Valuation of assembled articles. 10.19–10.20 [Reserved] 10.21 Updating cost data and other informa-
tion. 10.23 Standards, quotas, and visas. 10.24 Documentation. 10.25 Textile components cut to shape in
the United States and assembled abroad. 10.26 Articles assembled or processed in a
beneficiary country in whole of U.S. components or ingredients; articles as- sembled in a beneficiary country from textile components cut to shape in the United States.
FREE ENTRY—ARTICLES FOR THE USE OF FOREIGN MILITARY PERSONNEL
10.30c [Reserved]
TEMPORARY IMPORTATIONS UNDER BOND
10.31 Entry; bond. 10.33 Theatrical effects. 10.35 Models of women’s wearing apparel. 10.36 Commercial travelers’ samples; profes-
sional equipment and tools of trade; the- atrical effects and other articles.
10.36a Vehicles, pleasure boats and aircraft brought in for repair or alteration.
10.37 Extension of time for exportation. 10.38 Exportation. 10.39 Cancellation of bond charges. 10.40 Refund of cash deposits.
INTERNATIONAL TRAFFIC
10.41 Instruments; exceptions.
10.41a Lift vans, cargo vans, shipping tanks, skids, pallets, and similar instruments of international traffic; repair components.
10.41b Clearance of serially numbered sub- stantial holders or outer containers.
ARTICLES FOR INSTITUTIONS
10.43 Duty-free status. 10.46 Articles for the United States. 10.47 [Reserved]
WORKS OF ART
10.48 Engravings, sculptures, etc. 10.49 Articles for exhibition; requirements
on entry. 10.50 [Reserved] 10.52 Painted, colored or stained glass win-
dows for religious institutions. 10.53 Antiques. 10.54 Gobelin and other hand-woven tap-
estries.
VEGETABLE OILS
10.56 Vegetable oils, denaturing; release.
POTATOES, CORN, OR MAIZE
10.57 Certified seed potatoes, and seed corn or maize.
BOLTING CLOTHS
10.58 Bolting cloths; marking.
WITHDRAWAL OF SUPPLIES AND EQUIPMENT FOR VESSELS
10.59 Exemption from customs duties and internal-revenue tax.
10.60 Forms of withdrawals; bond. 10.61 Withdrawal permit. 10.62 Bunker fuel oil. 10.62a Blanket withdrawals for certain mer-
chandise. 10.62b Aircraft turbine fuel. 10.63 Landing of supplies and stores from re-
ceiving vessel in the United States. 10.64 Crediting or cancellation of bonds. 10.64a [Reserved] 10.65 Cigars and cigarettes.
ARTICLES EXPORTED FOR EXHIBITION, ETC.
10.66 Articles exported for temporary exhi- bition and returned; horses exported for horse racing and returned; procedure on entry.
10.67 Articles exported for scientific or edu- cational purposes and returned; proce- dure on entry.
THEATRICAL EFFECTS, MOTION-PICTURE FILMS, COMMERCIAL TRAVELERS’ SAMPLES, AND TOOLS OF TRADE
10.68 Procedure. 10.69 Samples to Great Britain and Ireland
under reciprocal agreement.
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19 CFR Ch. I (4–1–12 Edition)Pt. 10
ANIMALS AND BIRDS
10.70 Purebred animals for breeding pur- poses; certificate.
10.71 Purebred animals; bond for production of evidence; deposit of estimated duties; stipulation.
10.72–10.73 [Reserved] 10.74 Animals straying across boundary for
pasturage; offspring. 10.75 Wild animals and birds; zoological col-
lections. 10.76 Game animals and birds. 10.77 [Reserved]
PRODUCTS OF AMERICAN FISHERIES
10.78 Entry. 10.79 [Reserved]
SALT FOR CURING FISH
10.80 Remission of duty; withdrawal; bond. 10.81 Use in any port. 10.82 [Reserved] 10.83 Bond; cancellation; extension.
AUTOMOTIVE PRODUCTS
10.84 Automotive vehicles and articles for use as original equipment in the manu- facture of automotive vehicles.
MASTER RECORDS, AND METAL MATRICES
10.90 Master records and metal matrices.
PROTOTYPES
10.91 Prototypes used exclusively for prod- uct development and testing.
10.92–10.97 [Reserved]
FLUXING MATERIAL
10.98 Copper-bearing fluxing material.
ETHYL ALCOHOL
10.99 Importation of ethyl alcohol for non- beverage purposes.
UNITED STATES GOVERNMENT IMPORTATIONS
10.100 Entry, examination, and tariff status. 10.101 Immediate delivery. 10.102 Duty-free entries. 10.103 American goods returned. 10.104 Temporary importation entries for
United States Government agencies.
WHEAT
10.106 [Reserved]
RESCUE AND RELIEF WORK
10.107 Equipment and supplies; admission.
PRODUCTS EXPORTED UNDER LEASE AND REIMPORTED
10.108 Entry of reimported articles exported under lease.
STRATEGIC MATERIALS OBTAINED BY BARTER OR EXCHANGE
10.110 [Reserved]
LATE FILING OF FREE ENTRY AND REDUCED DUTY DOCUMENTS
10.112 Filing free entry documents or re- duced duty documents after entry.
INSTRUMENTS AND APPARATUS FOR EDUCATIONAL AND SCIENTIFIC INSTITUTIONS
10.114 General provisions. 10.115–10.119 [Reserved]
VISUAL OR AUDITORY MATERIALS
10.121 Visual or auditory materials of an educational, scientific, or cultural char- acter.
RATE OF DUTY DEPENDENT UPON ACTUAL USE
10.131 Circumstances in which applicable. 10.132 [Reserved] 10.133 Conditions required to be met. 10.134 Declaration of intent. 10.135 Deposit of duties. 10.136 Suspension of liquidation. 10.137 Records of use. 10.138 Proof of use. 10.139 Liquidation.
IMPORTATIONS NOT OVER $200 AND BONA FIDE GIFTS
10.151 Importations not over $200. 10.152 Bona-fide gifts. 10.153 Conditions for exemption.
GENERALIZED SYSTEM OF PREFERENCES
10.171 General. 10.172 Claim for exemption from duty under
the Generalized System of Preferences. 10.173 Evidence of country of origin. 10.174 Evidence of direct shipment. 10.175 Imported directly defined. 10.176 Country of origin criteria. 10.177 Cost or value of materials produced
in the beneficiary developing country. 10.178 Direct costs of processing operations
performed in the beneficiary developing country.
10.178a Special duty-free treatment for sub- Saharan African countries.
CANADIAN CRUDE PETROLEUM
10.179 Canadian crude petroleum subject to a commercial exchange agreement be- tween United States and Canadian refin- ers.
CERTAIN FRESH, CHILLED, OR FROZEN BEEF
10.180 Certification.
WATCHES AND WATCH MOVEMENTS FROM U.S. INSULAR POSSESSIONS
10.181–10.182 [Reserved]
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U.S. Customs and Border Protection, DHS; Treasury Pt. 10
CIVIL AIRCRAFT
10.183 Duty-free entry of civil aircraft, air- craft engines, ground flight simulators, parts, components, and subassemblies.
Subpart B—Caribbean Basin Initiative
10.191 General. 10.192 Claim for exemption from duty under
the CBI. 10.193 Imported directly. 10.194 Evidence of direct shipment. 10.195 Country of origin criteria. 10.196 Cost or value of materials produced
in a beneficiary country or countries. 10.197 Direct costs of processing operations
performed in a beneficiary country or countries.
10.198 Evidence of country of origin. 10.198a Duty reduction for certain leather-
related articles. 10.198b Products of Puerto Rico processed in
a beneficiary country. 10.199 Duty-free entry for certain beverages
produced in Canada from Caribbean rum.
Subpart C—Andean Trade Preference
10.201 Applicability. 10.202 Definitions. 10.203 Eligibility criteria in general. 10.204 Imported directly. 10.205 Country of origin criteria. 10.206 Value content requirement. 10.207 Procedures for filing duty-free treat-
ment claim and submitting supporting documentation.
Subpart D—Textile and Apparel Articles Under the African Growth and Oppor- tunity Act
10.211 Applicability. 10.212 Definitions. 10.213 Articles eligible for preferential
treatment. 10.214 Certificate of Origin. 10.215 Filing of claim for preferential treat-
ment. 10.216 Maintenance of records and submis-
sion of Certificate by importer. 10.217 Verification and justification of
claim for preferential treatment.
Subpart E—United States-Caribbean Basin Trade Partnership Act
TEXTILE AND APPAREL ARTICLES UNDER THE UNITED STATES-CARIBBEAN BASIN TRADE PARTNERSHIP ACT
10.221 Applicability. 10.222 Definitions. 10.223 Articles eligible for preferential
treatment. 10.224 Certificate of Origin. 10.225 Filing of claim for preferential treat-
ment.
10.226 Maintenance of records and submis- sion of Certificate by importer.
10.227 Verification and justification of claim for preferential treatment.
10.228 Additional requirements for pref- erential treatment of brassieres.
NON-TEXTILE ARTICLES UNDER THE UNITED STATES-CARIBBEAN BASIN TRADE PARTNER- SHIP ACT
10.231 Applicability. 10.232 Definitions. 10.233 Articles eligible for preferential tariff
treatment. 10.234 Certificate of Origin. 10.235 Filing of claim for preferential tariff
treatment. 10.236 Maintenance of records and submis-
sion of Certificate by importer. 10.237 Verification and justification of
claim for preferential tariff treatment.
Subpart F—Andean Trade Promotion and Drug Eradication Act
APPAREL AND OTHER TEXTILE ARTICLES UNDER THE ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT
10.241 Applicability. 10.242 Definitions. 10.243 Articles eligible for preferential
treatment. 10.244 Certificate of Origin. 10.245 Filing of claim for preferential treat-
ment. 10.246 Maintenance of records and submis-
sion of Certificate by importer. 10.247 Verification and justification of
claim for preferential treatment. 10.248 Additional requirements for pref-
erential treatment of brassieres.
EXTENSION OF ATPA BENEFITS TO TUNA AND CERTAIN OTHER NON-TEXTILE ARTICLES
10.251 Applicability. 10.252 Definitions. 10.253 Articles eligible for preferential
treatment. 10.254 Certificate of Origin. 10.255 Filing of claim for preferential treat-
ment. 10.256 Maintenance of records and submis-
sion of Certificate by importer. 10.257 Verification and justification of
claim for preferential treatment.
Subpart G—United States-Canada Free Trade Agreement
10.301 Scope and applicability. 10.302 Eligibility criteria in general. 10.303 Originating goods. 10.304 Exclusions. 10.305 Value content requirement. 10.306 Direct shipment to the United States. 10.307 Documentation.
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19 CFR Ch. I (4–1–12 Edition)Pt. 10
10.308 Records retention. 10.309 Verification of documentation. 10.310 Election to average for motor vehi-
cles. 10.311 Documentation for election to aver-
age for motor vehicles.
Subpart H—United States-Chile Free Trade Agreement
GENERAL PROVISIONS
10.401 Scope. 10.402 General definitions.
IMPORT REQUIREMENTS
10.410 Filing of claim for preferential tariff treatment upon importation.
10.411 Certification of origin or other infor- mation.
10.412 Importer obligations. 10.413 Validity of certification. 10.414 Certification or other information
not required. 10.415 Maintenance of records. 10.416 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
TARIFF PREFERENCE LEVEL
10.420 Filing of claim for tariff preference level.
10.421 Goods eligible for tariff preference claims.
10.422 Submission of certificate of eligi- bility.
10.423 Certificate of eligibility not required. 10.424 Effect of noncompliance; failure to
provide documentation regarding trans- shipment of non-originating cotton or man-made fiber fabric or apparel goods.
10.425 Transit and transshipment of non- originating cotton or man-made fiber fabric or apparel goods.
EXPORT REQUIREMENTS
10.430 Export requirements. 10.431 Failure to comply with requirements.
POST-IMPORTATION DUTY REFUND CLAIMS
10.440 Right to make post-importation claim and refund duties.
10.441 Filing procedures. 10.442 CBP processing procedures.
RULES OF ORIGIN
10.450 Definitions. 10.451 Originating goods. 10.452 Exclusions. 10.453 Treatment of textile and apparel sets. 10.454 Regional value content. 10.455 Value of materials. 10.456 Accessories, spare parts or tools. 10.457 Fungible goods and materials. 10.458 Accumulation. 10.459 De minimis.
10.460 Indirect materials. 10.461 Retail packaging materials and con-
tainers. 10.462 Packing materials and containers for
shipment. 10.463 Transit and transshipment.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.470 Verification and justification of claim for preferential treatment.
10.471 Special rule for verification in Chile of U.S. imports of textile and apparel products.
10.472 Verification in the United States of textile and apparel goods.
10.473 Issuance of negative origin deter- minations.
10.474 Repeated false or unsupported pref- erence claims.
PENALTIES
10.480 General. 10.481 Corrected declaration by importers. 10.482 Corrected certification of origin by
exporters or producers. 10.483 Framework for correcting declara-
tions and certifications.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.490 Goods re-entered after repair or alter- ation in Chile.
Subpart I—United States-Singapore Free Trade Agreement
GENERAL PROVISIONS
10.501 Scope. 10.502 General definitions.
IMPORT REQUIREMENTS
10.510 Filing of claim for preferential tariff treatment upon importation.
10.511 Supporting statement. 10.512 Importer obligations. 10.513 Supporting statement not required. 10.514 Maintenance of records. 10.515 Effect of noncompliance; failure to
provide documentation regarding third country transportation.
TARIFF PREFERENCE LEVEL
10.520 Filing of claim for tariff preference level.
10.521 Goods eligible for tariff preference level claims.
10.522 Submission of certificate of eligi- bility.
RULES OF ORIGIN
10.530 Definitions. 10.531 Originating goods. 10.532 Integrated Sourcing Initiative. 10.533 De minimis. 10.534 Accumulation.
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10.535 Regional value content. 10.536 Value of materials. 10.537 Accessories, spare parts, or tools. 10.538 Fungible goods and materials. 10.539 Retail packaging materials and con-
tainers. 10.540 Packing materials and containers for
shipment. 10.541 Indirect materials. 10.542 Third country transportation. 10.543 Certain apparel goods made from fab-
ric or yarn not available in commercial quantities.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.550 Verification and justification of claim for preferential treatment.
10.551 Issuance of negative origin deter- minations.
10.552 Information sharing by CBP regard- ing textile and apparel goods produced in the United States.
10.553 Textile and apparel site visits. 10.554 Exclusion of textile or apparel goods
for intentional circumvention.
PENALTIES
10.560 General. 10.561 Corrected claim or supporting state-
ment. 10.562 Framework for correcting claims or
supporting statements.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.570 Goods re-entered after repair or alter- ation in Singapore.
Subpart J—Dominican Republic-Central America-United States Free Trade Agreement
GENERAL PROVISIONS
10.581 Scope. 10.582 General definitions.
IMPORT REQUIREMENTS
10.583 Filing of claim for preferential tariff treatment upon importation.
10.584 Certification. 10.585 Importer obligations. 10.586 Certification not required. 10.587 Maintenance of records. 10.588 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
EXPORT REQUIREMENTS
10.589 Certification for goods exported to a Party.
POST-IMPORTATION DUTY REFUND CLAIMS
10.590 Right to make post-importation claim and refund duties.
10.591 Filing procedures.
10.592 CBP processing procedures.
RULES OF ORIGIN
10.593 Definitions. 10.594 Originating goods. 10.595 Regional value content. 10.596 Value of materials. 10.597 Accumulation. 10.598 De minimis. 10.599 Fungible goods and materials. 10.600 Accessories, spare parts, or tools. 10.601 Retail packaging materials and con-
tainers. 10.602 Packing materials and containers for
shipment. 10.603 Indirect materials. 10.604 Transit and transshipment. 10.605 Goods classifiable as goods put up in
sets.
TARIFF PREFERENCE LEVEL
10.606 Filing of claim for tariff preference level.
10.607 Goods eligible for tariff preference level claims.
10.608 Submission of certificate of eligi- bility for certain apparel goods of Nica- ragua.
10.609 Transshipment of non-originating cotton or man-made fiber apparel goods.
10.610 Effect of noncompliance; failure to provide documentation regarding trans- shipment of non-originating cotton or man-made fiber apparel goods.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.616 Verification and justification of claim for preferential tariff treatment.
10.617 Special rule for verifications in a Party of U.S. imports of textile and ap- parel goods.
10.618 Issuance of negative origin deter- minations.
10.619 Repeated false or unsupported pref- erence claims.
PENALTIES
10.620 General. 10.621 Corrected claim or certification by
importers. 10.622 Corrected certification by exporters
or producers. 10.623 Framework for correcting claims or
certifications.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.624 Goods re-entered after repair or alter- ation in a Party.
RETROACTIVE PREFERENTIAL TARIFF TREATMENT FOR TEXTILE AND APPAREL GOODS
10.625 Refunds of excess customs duties.
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Subpart K—United States-Jordan Free Trade Agreement
GENERAL PROVISIONS
10.701 Scope. 10.702 Definitions.
IMPORT REQUIREMENTS
10.703 Filing of claim for preferential tariff treatment.
10.704 Declaration. 10.705 Importer obligations. 10.706 Declaration not required. 10.707 Maintenance of records. 10.708 Effect of noncompliance; failure to
provide documentation regarding third- country transportation.
RULES OF ORIGIN
10.709 Country of origin criteria. 10.710 Value-content requirement. 10.711 Imported directly.
ORIGIN VERIFICATIONS
10.712 Verification of claim for preferential tariff treatment.
Subpart L [Reserved]
Subpart M—United States-Morocco Free Trade Agreement
GENERAL PROVISIONS
10.761 Scope. 10.762 General definitions.
IMPORT REQUIREMENTS
10.763 Filing of claim for preferential tariff treatment upon importation.
10.764 Declaration. 10.765 Importer obligations. 10.766 Declaration not required. 10.767 Maintenance of records. 10.768 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
RULES OF ORIGIN
10.769 Definitions. 10.770 Originating goods. 10.771 Textile or apparel goods. 10.772 Accumulation. 10.773 Value of materials. 10.774 Direct costs of processing operations. 10.775 Packaging and packing materials and
containers for retail sale and for ship- ment.
10.776 Indirect materials. 10.777 Imported directly.
TARIFF PREFERENCE LEVEL
10.778 Filing of claim for tariff preference level.
10.779 Goods eligible for tariff preference claims.
10.780 Transshipment of non-originating fabric or apparel goods.
10.781 Effect of noncompliance; failure to provide documentation regarding trans- shipment of non-originating fabric or ap- parel goods.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.784 Verification and justification of claim for preferential treatment.
10.785 Issuance of negative origin deter- minations.
PENALTIES
10.786 Violations relating to the MFTA.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.787 Goods re-entered after repair or alter- ation in Morocco.
Subpart N—United States-Bahrain Free Trade Agreement
GENERAL PROVISIONS
10.801 Scope. 10.802 General definitions.
IMPORT REQUIREMENTS
10.803 Filing of claim for preferential tariff treatment upon importation.
10.804 Declaration. 10.805 Importer obligations. 10.806 Declaration not required. 10.807 Maintenance of records. 10.808 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
RULES OF ORIGIN
10.809 Definitions. 10.810 Originating goods. 10.811 Textile or apparel goods. 10.812 Accumulation. 10.813 Value of materials. 10.814 Direct costs of processing operations. 10.815 Packaging and packing materials and
containers for retail sale and for ship- ment.
10.816 Indirect materials. 10.817 Imported directly.
TARIFF PREFERENCE LEVEL
10.818 Filing of claim for tariff preference level.
10.819 Goods eligible for tariff preference claims.
10.820 Certificate of eligibility. 10.821 Declaration. 10.822 Transshipment of non-originating
fabric or apparel goods. 10.823 Effect of non-compliance; failure to
provide documentation regarding trans- shipment of non-originating fabric or ap- parel goods.
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ORIGIN VERIFICATIONS AND DETERMINATIONS
10.824 Verification and justification of claim for preferential treatment.
10.825 Issuance of negative origin deter- minations.
PENALTIES
10.826 Violations relating to the BFTA.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.827 Goods re-entered after repair or alter- ation in Bahrain.
Subpart O—Haitian Hemispheric Oppor- tunity through Partnership Encourage- ment Act of 2006 and 2008
10.841 Applicability. 10.842 Definitions. 10.843 Articles eligible for duty-free treat-
ment. 10.844 Value-content requirement. 10.845 Retroactive application of duty-free
treatment for certain apparel articles. 10.846 Imported directly. 10.847 Filing of claim for duty-free treat-
ment. 10.848 Declaration of compliance. 10.849 Importer obligations. 10.850 Verification of claim for duty-free
treatment.
Subpart P—United States-Oman Free Trade Agreement
GENERAL PROVISIONS
10.861 Scope. 10.862 General definitions.
IMPORT REQUIREMENTS
10.863 Filing of claim for preferential tariff treatment upon importation.
10.864 Declaration. 10.865 Importer obligations. 10.866 Declaration not required. 10.867 Maintenance of records. 10.868 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
POST-IMPORTATION DUTY REFUND CLAIMS
10.869 Right to make post-importation claim and refund duties.
10.870 Filing procedures. 10.871 CBP processing procedures.
RULES OF ORIGIN
10.872 Definitions. 10.873 Originating goods. 10.874 Textile or apparel goods. 10.875 Accumulation. 10.876 Value of materials. 10.877 Direct costs of processing operations.
10.878 Packaging and packing materials and containers for retail sale and for ship- ment.
10.879 Indirect materials. 10.880 Imported directly.
TARIFF PREFERENCE LEVEL
10.881 Filing of claim for tariff preference level.
10.882 Goods eligible for tariff preference claims.
10.883 [Reserved] 10.884 Declaration. 10.885 Transshipment of non-originating ap-
parel goods. 10.886 Effect of non-compliance; failure to
provide documentation regarding trans- shipment of non-originating apparel goods.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.887 Verification and justification of claim for preferential treatment.
10.888 Issuance of negative origin deter- minations.
PENALTIES
10.889 Violations relating to the OFTA.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.890 Goods re-entered after repair or alter- ation in Oman.
Subpart Q—United States-Peru Trade Promotion Agreement
GENERAL PROVISIONS
10.901 Scope. 10.902 General definitions.
IMPORT REQUIREMENTS
10.903 Filing of claim for preferential tariff treatment upon importation.
10.904 Certification. 10.905 Importer obligations. 10.906 Certification not required. 10.907 Maintenance of records. 10.908 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
EXPORT REQUIREMENTS
10.909 Certification for goods exported to Peru.
POST-IMPORTATION DUTY REFUND CLAIMS
10.910 Right to make post-importation claim and refund duties.
10.911 Filing procedures. 10.912 CBP processing procedures.
RULES OF ORIGIN
10.913 Definitions.
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10.914 Originating goods. 10.915 Regional value content. 10.916 Value of materials. 10.917 Accumulation. 10.918 De minimis. 10.919 Fungible goods and materials. 10.920 Accessories, spare parts, or tools. 10.921 Goods classifiable as goods put up in
sets. 10.922 Retail packaging materials and con-
tainers. 10.923 Packing materials and containers for
shipment. 10.924 Indirect materials. 10.925 Transit and transshipment.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.926 Verification and justification of claim for preferential tariff treatment.
10.927 Special rule for verifications in Peru of U.S. imports of textile and apparel goods.
10.928 Issuance of negative origin deter- minations.
10.929 Repeated false or unsupported pref- erence claims.
PENALTIES
10.930 General. 10.931 Corrected claim or certification by
importers. 10.932 Corrected certification by U.S. ex-
porters or producers. 10.933 Framework for correcting claims or
certifications.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.934 Goods re-entered after repair or alter- ation in Peru.
Subpart R—United States-Korea Free Trade Agreement
GENERAL PROVISIONS
10.1001 Scope. 10.1002 General definitions.
IMPORT REQUIREMENTS
10.1003 Filing of claim for preferential tariff treatment upon importation.
10.1004 Certification. 10.1005 Importer obligations. 10.1006 Certification not required. 10.1007 Maintenance of records. 10.1008 Effect of noncompliance; failure to
provide documentation regarding trans- shipment.
EXPORT REQUIREMENTS
10.1009 Certification for goods exported to Korea.
Post-Importation Duty Refund Claims
10.1010 Right to make post-importation claim and refund duties.
10.1011 Filing procedures. 10.1012 CBP processing procedures.
RULES OF ORIGIN
10.1013 Definitions. 10.1014 Originating goods. 10.1015 Regional value content. 10.1016 Value of materials. 10.1017 Accumulation. 10.1018 De minimis. 10.1019 Fungible goods and materials. 10.1020 Accessories, spare parts, or tools. 10.1021 Goods classifiable as goods put up in
sets. 10.1022 Retail packaging materials and con-
tainers. 10.1023 Packing materials and containers
for shipment. 10.1024 Indirect materials. 10.1025 Transit and transshipment.
ORIGIN VERIFICATIONS AND DETERMINATIONS
10.1026 Verification and justification of claim for preferential tariff treatment.
10.1027 Special rule for verifications in Korea of U.S. imports of textile and ap- parel goods.
10.1028 Issuance of negative origin deter- minations.
10.1029 Repeated false or unsupported pref- erence claims.
PENALTIES
10.1030 General. 10.1031 Corrected claim or certification by
importers. 10.1032 Corrected certification by U.S. ex-
porters or producers. 10.1033 Framework for correcting claims or
certifications.
GOODS RETURNED AFTER REPAIR OR ALTERATION
10.1034 Goods re-entered after repair or al- teration in Korea.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 1498, 1508, 1623, 1624, 3314.
Section 10.17 also issued under 19 U.S.C. 1401a, 1402;
Sections 10.25 and 10.26 also issued under 19 U.S.C. 3592;
Sections 10.41, 10.41a, 10.107 also issued under 19 U.S.C. 1322;
Section 10.41b also issued under 19 U.S.C. 1202 (Chapter 98, Subchapter III, U.S. Note 3, HTSUS);
Section 10.53 also issued under 16 U.S.C. 1521, et seq.;
Section 10.59 also issued under 19 U.S.C. 1309, 1317;
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Sections 10.61, 10.62, 10.63, 10.64, 10.64a also issued under 19 U.S.C. 1309;
Sections 10.62a, 10.65 also issued under 19 U.S.C. 1309, 1317, 1555, 1556, 1557, 1646a;
§ 10.62b also issued under 19 U.S.C. 1557; Sections 10.70, 10.71 also issued under 19
U.S.C. 1486; Sections 10.80, 10.81, 10.82, 10.83 also issued
under 19 U.S.C. 1313 (e) and (i); Section 10.91 also issued under Pub. L. 106–
476 (114 Stat. 2101), sections 1434, 1435; Section 10.121 also issued under 19 U.S.C.
2501. Sections 10.171 through 10.178a also issued
under 19 U.S.C. 2461 et seq.; Section 10.183 also issued under 19 U.S.C.
1202 (General Note 6, HTSUS); Sections 10.191 through 10.199 also issued
under 19 U.S.C. 2701 et seq.; Sections 10.201 through 10.207 also issued
under 19 U.S.C. 3203; Sections 10.211 through 10.217 also issued
under 19 U.S.C. 3721; Sections 10.221 through 10.228 and §§ 10.231
through 10.237 also issued under 19 U.S.C. 2701 et seq.
Sections 10.241 through 10.248 and §§ 10.251 through 10.257 also issued under 19 U.S.C. 3203.
Sections 10.401 through 10.490 also issued under Pub. L. 108–77, 117 Stat. 909 (19 U.S.C. 3805 note).
Sections 10.501 through 10.570 also issued under 19 U.S.C. 1202 (General Note 25, HTSUS) and Pub. L. 108–78, 117 Stat. 948 (19 U.S.C. 3805 note).
Sections 10.581 through 10.625 also issued under 19 U.S.C. 1202 (General Note 29, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 109–53, 119 Stat. 462 (19 U.S.C. 4001 note).
Section 10.699 also issued under Pub. L. 109–53, 119 Stat. 462.
Sections 10.701 through 10.712 also issued under 19 U.S.C. 1202 (General Note 18, HTSUS) and Pub. L. 107–43, 115 Stat. 243 (19 U.S.C. 2112 note).
Sections 10.761 through 10.789 also issued under Pub. L. 108–302, 118 Stat. 1103 (19 U.S.C. 3805 note).
Sections 10.801 through 10.829 also issued under 19 U.S.C. 1202 (General Note 30,
HTSUS) and Pub. L. 109–169, 119 Stat. 3581 (19 U.S.C. 3805 note).
Sections 10.841 through 10.850 also issued under 19 U.S.C. 2703A.
Sections 10.861 through 10.890 also issued under 19 U.S.C. 1202 (General Note 31, HTSUS) and Pub. L. 109–283, 120 Stat. 1191 (19 U.S.C. 3805 note).
Sections 10.901 through 10.934 also issued under 19 U.S.C. 1202 (General Note 32, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 110– 138, 121 Stat. 1455 (19 U.S.C. 3805 note).
Sections 10.1001 through 10.1034 also issued under 19 U.S.C. 1202 (General Note 33, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112–41, 125 Stat. 428 (19 U.S.C. 3805 note).
SOURCE: 28 FR 14663, Dec. 31, 1963, unless otherwise noted.
Subpart A—General Provisions
ARTICLES EXPORTED AND RETURNED
§ 10.1 Domestic products; require- ments on entry.
(a) Except as otherwise provided for in paragraph (g), (h), (i) or (j) of this section or elsewhere in this part or in § 145.35 of this chapter, the following documents shall be filed in connection with the entry of articles in a shipment valued over $2,000 and claimed to be free of duty under subheading 9801.00.10 or 9802.00.20, Harmonized Tariff Sched- ule of the United States (HTSUS):
(1) A declaration by the foreign ship- per in substantially the following form:
I, lllllllllll, declare that to the best of my knowledge and belief the articles herein specified were ex- ported from the United States, from the port of llllllll on or about llllllll, 19ll, and that they are re- turned without having been advanced in value or improved in condition by any proc- ess of manufacture or other means.
Marks Number Quantity Description Value, in U.S. coin
.......................... .......................... ........................................................ ........................................................
.......................... .......................... ........................................................ ........................................................
.......................... .......................... ........................................................ ........................................................
.......................... .......................... ........................................................ ........................................................
.......................... .......................... ........................................................ (Date) (Signature)
.......................... .......................... ........................................................ (Address) (Capacity)
(2) A declaration by the owner, im- porter, consignee, or agent having knowledge of the facts regarding the
claim for free entry. If the owner or ul- timate consignee is a corporation, such
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declaration may be signed by the presi- dent, vice president, secretary, or treasurer of the corporation, or may be signed by any employee or agent of the corporation who holds a power of attor- ney executed under the conditions out- lined in subpart C, part 141 of this chapter and a certification by the cor- poration that such employee or other agent has or will have knowledge of the pertinent facts. This declaration shall be in substantially the following form:
I, lllllll, declare that the (above) (attached) declara- tion by the foreign shipper is true and cor- rect to the best of my knowledge and belief, that the articles were manufactured by llllllll (name of manufacturer) lo- cated in llllllll (city and state), that the articles were not manufactured or pro- duced in the United States under subheading 9813.00.05, HTSUS, and that the articles were exported from the United States without benefit of drawback.
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Address)
llllllllllllllllllllllll
(Signature)
llllllllllllllllllllllll
(Capacity)
(b) In any case in which the value of the returned articles exceeds $2,000 and the articles are not clearly marked with the name and address of the U.S. manufacturer, the port director may require, in addition to the declarations required in paragraph (a) of this sec- tion, such other documentation or evi- dence as may be necessary to substan- tiate the claim for duty-free treat- ment. Such other documentation or evidence may include a statement from the U.S. manufacturer verifying that the articles were made in the United States, or a U.S. export invoice, bill of lading or airway bill evidencing the U.S. origin of the articles and/or the reason for the exportation of the arti- cles.
(c) A certificate from the master of a vessel stating that products of the United States are returned without having been unladen from the export- ing vessel may be accepted in lieu of the declaration of the foreign shipper required by paragraph (a)(1) of this sec- tion.
(d) If the port director is reasonably satisfied, because of the nature of the articles or production of other evi- dence, that the articles are imported in circumstances meeting the require- ments of subheading 9801.00.10 or 9802.00.20, HTSUS, and related section and additional U.S. notes, he may waive the requirements for producing the documents specified in paragraph (a) of this section.
(e) No evidence relative to the condi- tions of subheading 9801.00.10, HTSUS, shall be required in the case of articles the product of the U.S. in use at the time of importation as the usual cov- erings or containers of merchandise not subject to an ad valorem rate of duty unless such articles would be du- tiable if not products of the U.S. under General Rule of Interpretation 5, HTSUS.
(f) In the case of photographic films and dry plates manufactured in the United States (except motion picture films to be used for commercial pur- poses) exposed abroad and entered under subheading 9802.00.20, HTSUS, the requirements of paragraphs (a) and (c) of this section are applicable except that the declaration by the foreign shipper provided for in paragraph (a)(1) to the effect that the articles ‘‘are re- turned without having been advanced in value or improved in condition by any process of manufacture or other means’’ shall be crossed out, and the entrant shall show on the declaration provided for in paragraph (a)(2) that the subject articles when exported were of U.S. manufacture and are returned after having been exposed, or exposed and developed, and, in the case of mo- tion picture films, that they will not be used for commercial purposes.
(g) Aircraft and aircraft parts and equipment. (1) In the case of aircraft and aircraft parts and equipment re- turned to the United States under sub- heading 9801.00.10, HTSUS, by or for the account of an aircraft owner or oper- ator and intended for use in his own aircraft operations, within or outside the United States, the entry summary may be made on Customs Form 3311. The entry summary on Customs Form 3311 shall be executed by the entrant and supported by the entry documenta- tion required by § 142.3 of this chapter.
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U.S. Customs and Border Protection, DHS; Treasury § 10.1
If the Customs officer is satisfied that the articles are products of the United States, that they have not been im- proved in condition or advanced in value while abroad, and that no draw- back has been or will be paid, the other documents described in this section shall not be required, and no bond need be filed for their production.
(2) The entrant shall show on Cus- toms Form 3311:
(i) The name and address of the air- craft owner or operator by whom or for whose account the articles are re- turned to the United States, in the block headed ‘‘Articles Returned To (Name and Address)’’,
(ii) The name of the importing vessel or conveyance,
(iii) The date of its arrival, (iv) A description of the articles, (v) The value of the articles, and (vi) That the articles are intended for
use by the aircraft owner or operator in his own aircraft operations.
(3) If Customs Form 3311 is filed at time of entry, it shall serve as both the entry and the entry summary.
(h) Nonconsumable vessel stores and equipment. (1) In the case of nonconsumable vessel stores and equip- ment returned to the United States under subheading 9801.00.10, HTSUS, the entry summary may be made on Customs Form 3311. The entry sum- mary on Customs Form 3311 shall be executed in duplicate by the entrant and supported by the entry documenta- tion required by § 142.3 of this chapter. Before an entry summary on Customs Form 3311 may be accepted for nonconsumable vessel stores and equip- ment, the Customs officer shall be sat- isfied that:
(i) The articles are products of the United States.
(ii) The articles have not been im- proved in condition or advanced in value while abroad.
(iii) No drawback has been or will be paid, and
(iv) No duty equal to an internal rev- enue tax is payable under subheading 9801.00.80, HTSUS.
(2) The documentation described in paragraph (a) of this section shall not be required in connection with an entry for nonconsumable vessel stores and equipment on Customs Form 3311.
(3) To satisfy the Customs officer that no drawback has been or will be paid on the articles in connection with their removal from the United States, the master of the vessel or other per- son having knowledge of the facts shall furnish a written declaration which may be made on the reverse side of Customs Form 3311 showing that the articles were:
(i) Exported as stores or equipment on a United States vessel or a vessel operated by the United States Govern- ment,
(ii) Not landed in a foreign country, except for any needed repairs, adjust- ments, or refilling and return to the vessel from which landed or,
(iii) For transshipment as stores or equipment to another vessel.
(4) The entrant also shall show: (i) The name of the importing vessel, (ii) The date of its arrival, (iii) A description of the articles, and (iv) The value of the articles. (5) If Customs Form 3311 is filed at
time of entry, it shall serve as both the entry and the entry summary.
(i) When the total value of articles of claimed American origin contained in any shipment does not exceed $250 and such articles are found to be unques- tionably products of the United States and do not appear to have been ad- vanced in value or improved in condi- tion while abroad and no quota is in- volved, free entry thereof may be made under subheading 9801.00.10 on Customs Form 3311, executed by the owner, im- porter, consignee, or agent and filed in duplicate, without regard to the re- quirement of filing the documentation provided for in paragraph (a) of this section, unless the Customs officer has reason to believe that Customs draw- back or exemption from internal rev- enue tax, or both, were probably al- lowed on exportation of the articles or that they are otherwise subject to duty. The entrant shall show on Cus- toms Form 3311 the name of the im- porting conveyance, the date of its ar- rival, the name of the country from which the articles were returned to the United States, and the value of the ar- ticles. The entrant shall also produce evidence of his right to make entry (ex- cept as provided in § 141.11(b) of this chapter). If the Customs officer is not
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19 CFR Ch. I (4–1–12 Edition)§ 10.3
entirely certain that the articles to be entered under this paragraph by a nominal consignee are products of the United States, the actual owner or ul- timate consignee thereof may be re- quired to execute a Customs Form 3311.
(j) In the case of products of the United States, when the aggregate value of the shipment does not exceed $10,000 and the products are imported—
(1) For the purposes of repair or al- teration, prior to reexportation, or
(2) After having been either rejected or returned by the foreign purchaser to the United States for credit, free entry thereof may be made under subheading 9801.00.10, HTSUS, on Customs Form 3311 (a Customs Form 7501 must be sub- mitted as well for such articles as pro- vided in § 143.23(h) of this chapter), exe- cuted by the owner, importer, con- signee, or agent and filed in duplicate, without regard to the requirement of filing the documentation provided for in paragraph (a) of this section, unless the Customs officer has reason to be- lieve that Customs drawback or exemp- tion from internal revenue tax, or both, were probably allowed on expor- tation of the articles or that they are otherwise subject to duty. The person making entry shall show on Customs Form 3311 the name of the importing conveyance, the date of its arrival, the name of the country from which the ar- ticles were returned to the United States, and the value of the articles. The person making entry shall also produce evidence of his right to make entry (except as provided in § 141.11(b) of this chapter). If the Customs officer is not entirely certain that the articles to be entered under this paragraph by a nominal consignee are products of the United States, the actual owner or ul- timate consignee thereof may be re- quired to execute a Customs Form 3311.
[T.D. 72–119, 37 FR 8867, May 2, 1972 as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; 43 FR 20003, May 10, 1978; T.D. 79–221, 44 FR 46812, Aug. 9, 1979; T.D. 83–82, 48 FR 14596, Apr. 5, 1983; T.D. 89–1, 53 FR 51246, Dec. 21, 1988; T.D. 94–47, 59 FR 25566, May 17, 1994; T.D. 97–82, 62 FR 51769, Oct. 3, 1997; T.D. 98– 28, 63 FR 16416, Apr. 3, 1998]
§ 10.3 Drawback; internal-revenue tax. (a) Except as prescribed in § 10.1(f) or
in paragraphs (c) and (f) of this section,
no free entry shall be allowed under Chapter 98, Subchapter 1, Harmonized Tariff Schedule of the United States (HTSUS), in the final liquidation of an entry unless the port director is satis- fied by the certificate of exportation or other evidence or information that no drawback was allowed in connection with the exportation from the United States, and unless no internal-revenue tax is imposed on the importation of like articles not previously exported from the United States or, if such tax is being imposed at the time of entry for consumption or withdrawal from warehouse for consumption, the port director is satisfied that an internal- revenue tax on production or importa- tion was paid in respect of the im- ported article before it was exported from the United States and was not re- funded. Except as provided for in § 10.1(f), when it is impracticable, be- cause of the destruction of Customs records or other circumstances, to de- termine whether drawback was al- lowed, or the amount of drawback al- lowed, with respect to an article estab- lished to be a returned product of the United States which has not been ad- vanced in value or improved in condi- tion while abroad, there shall be as- sessed on the returned article an amount of duty determined as follows:
(1) If there is any likelihood that drawback was allowable on the expor- tation of like articles at any time when the imported article may have been ex- ported from the United States, the es- timated amount of any drawback which would have been allowable if duty had been paid on any foreign mer- chandise likely to have been used in the manufacture of the returned article at the rate or rates applicable to such foreign merchandise on the date of im- portation of the returned article (see paragraph (b) of this section), and
(2) If there is any likelihood that a refund or remission of tax was allowed on the exportation of the returned arti- cle, the amount of any internal-rev- enue tax which would be payable at the time of importation if the returned ar- ticle were wholly of foreign origin, but in no such case shall there be assessed more than an amount equal to the duty and tax that would apply if the re- turned article were wholly of foreign
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origin and originally imported. (See § 10.7(a).) Except as provided for in § 10.1(f), if the imported article is of a kind which would be subject to an in- ternal-revenue tax if of foreign origin and payment of an internal-revenue tax before exportation without refund thereof is not established, duty shall be assessed on the imported article in an amount equal to the internal-revenue tax imposed at the time of entry for consumption or withdrawal from ware- house for consumption on like articles of foreign origin, plus the amount of any drawback allowed on the expor- tation of the article from the United States; but if no drawback was allowed, the duty equal to internal-revenue tax shall be the total duty to be assessed. If an allowance of drawback on the ex- portation from the United States of the imported article is established, duty shall be assessed in an amount equal to such drawback, plus an amount equal
to any internal-revenue tax which may be assessable in accordance with this paragraph; but in no case shall duty equal to drawback, or to drawback and internal-revenue tax, be assessed in an amount in excess of the ordinary Cus- toms duty and internal-revenue tax ap- plicable to like articles of foreign ori- gin. In any case, where payment of in- ternal-revenue tax before exportation without refund thereof is established, no duty equal to an internal-revenue tax currently in force shall be assessed.
(b) In the absence of satisfactory evi- dence as to the nonallowance of draw- back or the amount thereof allowed on the following articles of American manufacture or production, duty shall be assessed thereon in the amounts re- spectively indicated, the amount shown in each case being considered the fair average amount of drawback allowed on such articles:
Article Duty assessment
Drums, metal (when not exempted from duty in accordance with sec. 10.3(c)) ............... 24 cents each. Hosiery, nylon ..................................................................................................................... 45 cents per dozen. Lead compound, tetraethyl ................................................................................................. $0.003 per kilogram. Lithopone ............................................................................................................................ $0.00065 per kilogram. Oxide, zinc .......................................................................................................................... $0.0029 per kilogram. Piece goods, cotton:
Bleached ...................................................................................................................... $0.03199 per square meter. Dyed ............................................................................................................................ $0.03454 per square meter. Printed ......................................................................................................................... $0.03226 per square meter.
Piece goods, nylon: Dyed $0.29086 per square meter. Piece goods, rayon:
Printed ......................................................................................................................... $0.04867 per square meter. Other than printed (white, piece dyed or yarn dyed) .................................................. $0.08478 per square meter.
Tallow, refined, inedible ...................................................................................................... $0.003 per kilogram.
(c) The following articles shall be ad- mitted free of duty, even though ex- ported from the United States with benefit of drawback:
(1) Any article of a kind which would be admitted free of duty otherwise than under Chapter 98, Subchapter 1, HTSUS, if of foreign origin;
(2) Substantial containers or holders of domestic manufacture, including shooks and staves when returned as boxes or barrels, when in use at the time of importation as the usual con- tainers of merchandise;
(3) Any article provided for in sub- headings 9801.00.70 or 9801.00.80, HTSUS, with respect to which the port director has determined that the collection of duty under such subheadings 9801.00.70
or 9801.00.80, HTSUS, would involve an expense and inconvenience to the Gov- ernment disproportionate to the prob- able amount of such duty; and
(4) Other articles of domestic manu- facture which are in use at the time of importation as the usual coverings or containers of merchandise not subject to an ad valorem rate of duty, and which have not been advanced in value or improved in condition while abroad by any process of manufacture or other means.
(d) Articles manufactured or pro- duced in the United States in a Cus- toms bonded warehouse and exported shall be subject on reimportation to a duty equal to the total duty and inter- nal-revenue tax, if any, imposed at the
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time of entry for consumption or with- drawal from warehouse for consump- tion with respect to the importation of like articles not previously exported from the United States.
(e) Animals straying across the bor- der or driven across the border for pas- turage purposes or for feeding to im- prove them for the market and not re- turned within 8 months are excluded from free entry as domestic products returned.
(f) Tobacco products and cigarette papers and tubes classifiable under sub- heading 9801.00.80, HTSUS, may be re- leased from customs custody without the payment of that part of the duty attributable to the internal-revenue tax for return to internal-revenue bond as provided by section 5704(d) of the In- ternal Revenue Code of 1954.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68–104, 33 FR 5616, Apr. 11, 1968; T.D. 83– 240, 48 FR 53098, Nov. 25, 1983; T.D. 89–1, 53 FR 51246, Dec. 21, 1988; T.D. 93–66, 58 FR 44130, Aug. 19, 1993]
§ 10.4 Internal-revenue marks; erasure. Internal-revenue brands or marks on
casks or other containers previously exported from the United States must be erased at the importer’s expense under Customs supervision before their delivery from Customs custody.
§ 10.5 Shooks and staves; cloth boards; port director’s account.
(a) Shooks and staves produced in the United States and returned in the form of complete boxes or barrels in use as the usual containers of merchandise are exempt from any duties imposed by the tariff laws upon similar containers made of foreign shooks or staves, pro- vided their identity is established under the regulations in this part.
(b) The term ‘‘shook’’ embraces only shooks which at the time of expor- tation from this country are ready to be assembled into boxes or barrels without further cutting to size; except that box shooks may be exported in double lengths and cut abroad. The number of boxes made from such shooks which may be imported into this country free of duty cannot exceed the number of complete sets of shooks exported.
(c) [Reserved]
(d) An exporter of shooks or staves in respect of which free entry is to be claimed when returned as boxes or bar- rels shall file in triplicate with the di- rector of the port of exportation, at least 6 hours before the landing of the articles on the exporting vessel, a Cer- tificate of Registration, Customs Form 4455.
(e) The Certificate of Registration, CF 4455, shall be completed in trip- licate by the port director after verification from the manifest of the exporting vessel and the return of the lading officer. The original shall be for- warded by the port director to the con- signee. The duplicate copy shall be given to the exporter and the triplicate copy shall be retained.
(f) Whenever boxes or barrels alleged to have been manufactured from Amer- ican shooks or staves are shipped to the United States from a person abroad other than the one to whom they were exported from the United States, the importer shall be required to obtain from the foreign consignee to whom the shooks or staves were originally exported from this country the certifi- cate or certificates, Customs Form 4455, covering the exportation of the shooks or staves from the United States, or an extract therefrom signed by such consignee, showing the number of shooks or staves covered by such certificate or certificates, together with the number of superficial feet of such shooks or staves. Such Form 4455, or extract therefrom, shall be filed by the importer in connection with the entry of the boxes or barrels.
(g) Accounts shall be kept by the di- rector of the port of exportation of the shooks and staves as to each expor- tation thereof and as to the returns thereof in boxes, barrels, etc. Notifica- tions of such returns shall be given to the port of exportation by the director of the port of importation. When re- turns in the form of boxes, barrels, etc., entirely account for the shooks and staves exported as shown on the appropriate Customs Form 4455, the port director maintaining the account shall so inform the port director mak- ing inquiry about the merchandise being imported and alleged to contain shooks or staves covered by the par- ticular exportation.
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U.S. Customs and Border Protection, DHS; Treasury § 10.7
*Cross out inapplicable words.
(h) A record of cloth boards of domes- tic manufacture exported to be wrapped with foreign textiles shall be kept by the port director in a similar manner as for shooks and staves. Cloth boards of domestic manufacture are conditionally free of duty under Chap- ter 98, subchapter 1, Harmonized Tariff Schedule of the United States (HTSUS). If such boards are advanced in value or improved in condition while abroad, free entry shall be denied on importation.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 89– 1, 53 FR 51247, Dec. 21, 1988; T.D. 98–52, 63 FR 29954, June 2, 1998]
§ 10.6 Shooks and staves; claim for duty exemption.
An importer, seeking an exemption from duty on account of boxes or bar- rels made from American shooks or staves, must make such a claim on Customs Form 4455 at the time of filing the entry. Upon receipt, from the direc- tor of the port of exportation of the shooks and staves, of corroboration that the records of exportation do not conflict materially with such a claim, the exemption may be allowed. If the claim for an exemption is disallowed in full or in part, the importer may file a request within 15 days of the date of the port director’s notice to him of any disallowance, for referral of the ques- tion to the Commissioner of Customs for review.
[T.D. 87–75, 52 FR 20066, May 29, 1987, as amended by T.D. 98–52, 63 FR 29954, June 2, 1998]
§ 10.7 Substantial containers or hold- ers.
(a) Substantial containers or holders, which are products of the United States, which are of the usual and ordi- nary types used in the shipment or transportation of goods, which are re- usable for such purposes, and which are imported containing or holding mer- chandise, shall be entered under the general regulations governing the free entry of domestic products exported and returned. When such containers or holders are imported not containing or holding merchandise they may be ad- mitted without entry if readily identi- fiable as products of the United States.
(b) Substantial containers or holders, which are of foreign production and previously imported duty paid, which are of the usual or ordinary types used in the shipment or transportation of goods, which are reusable for such pur- pose, and which are imported con- taining or holding merchandise, shall be exempt from duty if (1) exported in accordance with the regulations con- tained in § 10.5 (d) and (e), and (2) there is filed in connection with the entry a certificate of the foreign shipper in the form prescribed by paragraph (c) of this section.
(c) The certificate to be furnished by the foreign shipper for the use of the director of the port of entry shall be in the following form:
I, llllllll, of llllllll, do hereby certify that to the best of my knowl- edge and belief the substantial containers and holders mentioned in (the annexed in- voice) (invoice No. llll of llll, 19ll) * are of the manufacture of llllllll and were exported from the United States at the port of llllll, per S.S. llllllll on lllll, 19ll, and that the same are being returned to the United States (empty) filled with llll) (holdings lllllll).*
——————————————————————— Shipper
(d) The port director, after verification of the foreign shipper’s certificate with the records of the di- rector of the port of exportation in this country, shall allow free entry to the extent the basis for such allowance is verified. The procedure in the last two sentences of § 10.6 shall be applicable.
(e) If claim for exemption from duty for such containers or holders of for- eign production previously imported duty paid is made at the time of entry, the certificate of the foreign shipper may be accepted if produced at any time prior to the liquidation of the entry.
(f) When such containers or holders of foreign production previously im- ported duty paid are reimported empty, they may be admitted without entry if
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readily identifiable as having been pre- viously imported duty paid.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35475, Aug. 16, 1982; T.D. 86– 118, 51 FR 22515, June 20, 1986; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.8 Articles exported for repairs or alterations.
(a) Except as otherwise provided for in this section and except in the case of goods covered by § 181.64 of this chap- ter, the following documents shall be filed in connection with the entry of articles which are returned after hav- ing been exported for repairs or alter- ations and which are claimed to be sub- ject to duty only on the value of the re- pairs or alterations performed abroad under subheading 9802.00.40 or 9802.00.50, Harmonized Tariff Schedule of the United States (HTSUS):
(1) A declaration from the person who performed such repairs or alterations, in substantially the following form:
I,llllllll, declare that the articles herein specified are the articles which, in the condition in which they were exported from the United States, were received by me (us) on llllllll, 19ll, fromllllllll (name and address of owner or exporter in the United States); that they were received by me (us) for the sole purpose of being repaired or altered; that only the repairs or alterations described below were performed by me (us); that the full cost or (when no charge is made) value of such repairs or alterations are correctly stated below; and that no substitution what- ever has been made to replace any of the ar- ticles originally received by me (us) from the owner or exporter thereof mentioned above.
Marks and numbers
Description of articles and of re- pairs or al- terations
Full cost or (when no charge is
made) value of
repairs or alterations (see sub- chapter II, chapter 98,
HTSUS)
Total value of articles after re-
pairs or al- terations
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Address)
llllllllllllllllllllllll
(Signature)
llllllllllllllllllllllll
(Capacity)
(2) A declaration by the owner, im- porter, consignee, or agent having knowledge of the pertinent facts in substantially the following form:
I, lllll, declare that the (above) (attached) declara- tion by the person who performed the repairs or alterations abroad is true and correct to the best of my knowledge and belief; that the articles were not manufactured or produced in the United States under subheading 9813.00.05, HTSUS; that such articles were ex- ported from the United States for repairs or alterations and without benefit of drawback from llllllll (port) on llllllll, 19ll; and that the articles entered in their repaired or altered condition are the same articles that were exported on the above date and that are identified in the (above) (attached) declaration. llllllllllllllllllllllll
(Date) llllllllllllllllllllllll
(Address) llllllllllllllllllllllll
(Signature) llllllllllllllllllllllll
(Capacity)
(b) The port director may require such additional documentation as is deemed necessary to prove actual ex- portation of the articles from the United States for repairs or alter- ations, such as a foreign customs entry, foreign customs invoice, foreign landing certificate, bill of lading, or an airway bill.
(c) If the port director concerned is satisfied, because of the nature of the articles or production of other evi- dence, that the articles are imported under circumstances meeting the re- quirements of subheading 9802.00.40 or 9802.00.50, HTSUS, and related section and additional U.S. notes, he may waive submission of the declarations provided for in paragraph (a) of this section.
(d) The port director shall require at the time of entry a deposit of esti- mated duties based upon the full cost or value of the repairs or alterations. The cost or value of the repairs or al- terations outside the United States, which is to be set forth in the invoice and entry papers as the basis for the assessment of duty under subheading 9802.00.40 or 9802.00.50, HTSUS, shall be
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limited to the cost or value of the re- pairs or alterations actually performed abroad, which will include all domestic and foreign articles furnished for the repairs or alterations but shall not in- clude any of the expenses incurred in this country whether by way of engi- neering costs, preparation of plans or specifications, furnishing of tools or equipment for doing the repairs or al- terations abroad, or otherwise.
[T.D. 94–47, 59 FR 25567, May 17, 1994, as amended by T.D. 95–68, 60 FR 46361, Sept. 6, 1995]
§ 10.8a Imported articles exported and reimported.
(a) In addition to regular entry pro- cedures, supplementary documentation is required in connection with duty- free entries under subheading 9801.00.25, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), of arti- cles which were originally entered duty paid, removed from Customs custody, and subsequently exported, if:
(1) The articles were exported within 3 years after the date of the previous importation.
(2) The articles were not advanced in value or improved in condition by any process of manufacture or other means while abroad.
(3) The articles did not conform to sample or specifications abroad.
(4) The articles are reimported by or for the account of the person who im- ported them into and exported them from the United States.
(b) The following supplementary doc- uments shall be filed in connection with the entry of articles claimed to be free of duty under subheading 9801.00.25, Harmonized Tariff Schedule of the United States:
(1) A declaration by the person abroad who received and is returning the merchandise to the United States, in substantially the following form:
I declare that thelllllllllll (De- scription of articles) were received by me from lllllllllllllllll (Name and address of U.S. exporter), that they have not been advanced in value or improved in condition by any process of manufacture or other means and are being returned to llllllllllllllll(Name and ad- dress of consignee in the United States) be- cause they do not conform to sample or spec- ifications for the following reasons:
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
(Date) (Signature) llllllllllllllllllllllll
(Address) (Title)
(2) A declaration by the owner, im- porter, consignee, or agent, in substan- tially the following form:
I declare that the lllllllllll (Description of articles) were previously im- ported into the United States at the Port of llllllll (Name of port), Entry No.lll, on lllllll (Date of entry) by lllllllllll (Name and address of importer) at which time duty was paid; that they were exported from the United States at the Port of llllllll (Name of port) on llllllllll (Date of exportation) by lllllllllll (Name and address of exporter) without benefit of drawback; that the articles are being reimported by or for the account of llllllll, and, that the attached declaration from llllllllllllllll (Name of for- eign shipper) is correct in every respect. llllllllllllllllllllllll
(Date) (Signature) llllllllllllllllllllllll
(Address) (Title)
(c) If the port director concerned is reasonably satisfied because of the na- ture of the articles or production of other evidence that the requirements of subheading 9801.00.25, Harmonized Tariff Schedule of the United States, and the related section and additional U.S. notes have been met, he may waive the production of the documents provided for in paragraph (b) of this section.
[T.D. 72–221, 37 FR 17469, Aug. 29, 1972, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988]
§ 10.9 Articles exported for processing. (a) Except as otherwise provided for
in this section, the following docu- ments shall be filed in connection with the entry of articles which are re- turned after having been exported for further processing and which are claimed to be subject to duty only on the value of the processing performed abroad under subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS):
(1) A declaration by the person who performed the processing abroad, in substantially the following form:
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I, lllll, declare that the articles here- in specified are the articles which, in the condition in which they were exported from the United States, were received by me (us) on llllll, 19 lll, from llllllll (name and address of owner or exporter in the United States); that they were received by me (us) for the sole purpose of being processed; that only the processing described below was effected by me (us); that the full cost or (when no charge is made) value of such processing and the value of the articles after processing are correctly stated below; and that no substitution whatever has been made to replace any of the articles originally received by me (us) from the owner or exporter thereof mentioned above.
Marks and numbers
Description of articles
and of processing
Full cost or (when no charge is
made) value of
processing (see sub- chapter II, chapter 98,
HTSUS)
Total value of articles after proc-
essing
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Address)
llllllllllllllllllllllll
(Signature)
llllllllllllllllllllllll
(Capacity)
(2) A declaration by the owner, im- porter, consignee, or agent having knowledge of the pertinent facts in substantially the following form:
I, lllll, declare that the (above) (at- tached) declaration by the person who per- formed the processing abroad is true and correct to the best of my knowledge and belief; that the articles were manufactured in the United States by llllllll (name and address) or, if of foreign origin, were subjected to llllllll (show processes of manufacture, such as molding, casting, machining) in the United States by llllllll (name and address); that the articles were not manufactured or pro- duced in the United States under sub- heading 9813.00.05, HTSUS; that the arti- cles were exported for processing and with- out benefit of drawback from llllllll (port) on llllll, 19 lll; that the articles entered in their processed condition are otherwise the same articles that were exported on the above date and that are identified in the (above) (attached) declaration; and that the re-
turned articles will be subjected to llllllll (describe processing to be performed in the United States) by llllllll (name and address of U.S. processor). llllllllllllllll
llllllllllllllllllllllll
(Date)
llllllllllllllllllllllll
(Address)
llllllllllllllllllllllll
(Signature)
llllllllllllllllllllllll
(Capacity)
(b) The port director may require such additional documentation as is deemed necessary to prove actual ex- portation of the articles from the United States for processing, such as a foreign customs entry, foreign customs invoice, foreign landing certificate, bill of lading, or an airway bill.
(c) If the port director concerned is satisfied, because of the nature of the articles or production of other evi- dence, that the articles are imported under circumstances meeting the re- quirements of subheading 9802.00.60, HTSUS, and related section and addi- tional U.S. notes, he may waive sub- mission of the declarations provided for in paragraph (a) of this section.
(d) The port director shall require at the time of entry a deposit of esti- mated duties based upon the full cost or value of the processing. The cost or value of the processing outside the United States, which is to be set forth in the invoice and entry papers as the basis for the assessment of duty under subheading 9802.00.60, HTSUS, shall be limited to the cost or value of the proc- essing actually performed abroad, which will include all domestic and for- eign articles used in the processing but shall not include the exported United States metal article or any of the ex- penses incurred in this country wheth- er by way of engineering costs, prepa- ration of plans or specifications, fur- nishing of tools or equipment for doing the processing abroad, or otherwise.
[T.D. 94–47, 59 FR 25568, May 17, 1994]
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U.S. Customs and Border Protection, DHS; Treasury § 10.13
§ 10.10 [Reserved]
ARTICLES ASSEMBLED ABROAD WITH UNITED STATES COMPONENTS
§ 10.11 General.
(a) Sections 10.12 through 10.23 set forth definitions and interpretative regulations adopted by the Commis- sioner of Customs pertaining to the construction of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and re- lated provisions of law. These provi- sions concern claims for the exemption from duty provided by subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), for American-made fabricated components which are returned to the United States as parts of articles assembled abroad. The examples included in these sections describe specific situations in which the exemption may or may not be applicable. The definitions and regu- lations that follow are promulgated to inform the public of the constructions and interpretations that the United States Customs Service shall give to relevant statutory terms and to assure the impartial and uniform assessment of duties upon merchandise claimed to be partially exempt from duty under subheading 9802.00.80, Harmonized Tar- iff Schedule of the United States (19 U.S.C. 1202), at the various ports of entry. Nothing in these regulations purports or is intended to restrict the legal right of importers or others to a judicial review of the matters con- tained therein.
(b) Section 10.24 sets forth the docu- mentary requirements applicable to the entry of assembled articles claimed to be subject to the exemption provided under subheading 9802.00.80, Har- monized Tariff Schedule of the United States (19 U.S.C. 1202). Allowance of an importer’s claim is dependent upon meeting the statutory requirements for the exemption under subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) and his complying with the documen- tary requirements set forth in § 10.24.
[T.D. 75–230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.12 Definitions. As used in §§ 10.11 through 10.24, the
following terms shall have the mean- ings indicated:
(a) American-made. The term ‘‘Amer- ican-made’’ is used to refer to a prod- uct of the United States as defined in paragraph (e) of this section.
(b) Assembly. ‘‘Assembly’’ means the fitting or joining together of fabricated components.
(c) Exemption. ‘‘Exemption’’ means the deduction of the cost or value of products of the United States which were assembled abroad in accordance with the requirements of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), from the full value of the assembled ar- ticle.
(d) Fabricated component. ‘‘Fabricated component’’ means a manufactured ar- ticle ready for assembly in the condi- tion as exported except for operations incidental to the assembly.
(e) Product of the United States. A ‘‘product of the United States’’ is an article manufactured within the Cus- toms territory of the United States and may consist wholly of United States components or materials, of United States and foreign components or ma- terials, or wholly of foreign compo- nents or materials. If the article con- sists wholly or partially of foreign components or materials, the manufac- turing process must be such that the foreign components or materials have been substantially transformed into a new and different article, or have been merged into a new and different arti- cle.
[T.D. 75–230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988]
§ 10.13 Statutory provision: Sub- heading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
Subheading 9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS), (19 U.S.C. 1202), provides that articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity
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19 CFR Ch. I (4–1–12 Edition)§ 10.14
in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being as- sembled and except by operations inci- dental to the assembly process such as cleaning, lubricating, and painting, are subject to a duty upon the full value of the imported article, less the cost or, if no charge is made, the value of such products of the United States. The rate of duty which is assessed upon the du- tiable portion of the imported article is that which is applicable to the im- ported article as a whole under the ap- propriate provision of the HTSUS (19 U.S.C. 1202) for such article. If that provision requires a specific or com- pound rate of duty, the total duties as- sessed on the imported article are re- duced in such proportion as the cost or value of the returned United States components which qualify for the ex- emption bears to the full value of the assembled article.
Example 1. A transistor radio is assembled abroad from foreign-made components and American-made transistors. Upon importa- tion, the transistor radio is subject to the ad valorem rate of duty applicable to transistor radios upon the value of the radio less the cost or value of the American-made transis- tors assembled therein.
Example 2. A solid-state watch movement is assembled abroad from foreign-made com- ponents and an American-made integrated circuit. If the movement in question is sub- ject to the specific rate of duty of 75 cents if the value of the assembled movement is $30, and if the value of the American-made inte- grated circuit is $10, then the value of the in- tegrated circuit represents one third of the total value of the assembled article and the duty on the assembled article will be reduced by one third ($.25). Therefore, the duty on the assembled movement is 50 cents.
[T.D. 75–230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988]
§ 10.14 Fabricated components subject to the exemption.
(a) Fabricated components, the product of the United States. Except as provided in § 10.15, the exemption provided under subheading 9802.00.80, Harmonized Tar- iff Schedule of the United States (HTSUS) (19 U.S.C. 1202), applies to fab- ricated components, the product of the United States. The components must be in condition ready for assembly
without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitle- ment to the exemption by being sub- jected to operations incidental to the assembly either before, during, or after their assembly with other components. Materials undefined in final dimen- sions and shapes, which are cut into specific shapes or patterns abroad are not considered fabricated components.
Example 1. Articles identifiable in their ex- ported condition as components or parts of the article into which they will be assem- bled, such as transistors, diodes, integrated circuits, machinery parts, or precut parts of wearing apparel, are regarded as fabricated components.
Example 2. Prestamped metal lead frames for semiconductor devices exported in mul- tiple unit strips in which the individual frame units are connected to each other, or integrated circuit wafers containing indi- vidual integrated circuit dice which have been scribed or scored in the United States, are regarded as fabricated components. The separation of the individual frames by cut- ting, or the segmentation of the wafer into individual dice by flexing and breaking along scribed or scored lines, is regarded as an op- eration incidental to the assembly process.
Example 3. Wires of various type, electrical conductors, metal foils, insulating tapes, rib- bons, findings used in dressmaking, and simi- lar products, which are in a finished state when exported from the United States, and are ready for use in the assembly of the im- ported article, are regarded as fabricated components if they are only cut to length or subjected to operations incidental to the as- sembly process while abroad.
Example 4. Uncut textile fabrics exported in bolts from which wearing apparel compo- nents will be cut according to a pattern are not regarded as fabricated components. Similarly, other materials, such as lumber, leather, sheet metal, plastic sheeting, ex- ported in basic shapes and forms to be fab- ricated into components for assembly, are not eligible for treatment as fabricated com- ponents.
(b) Substantial transformation of for- eign-made articles or materials. Foreign- made articles or materials may become products of the United States if they undergo a process of manufacture in the United States which results in their substantial transformation. Sub- stantial transformation occurs when, as a result of manufacturing processes, a new and different article emerges, having a distinctive name, character,
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U.S. Customs and Border Protection, DHS; Treasury § 10.16
or use, which is different from that originally possessed by the article or material before being subject to the manufacturing process. The mere fin- ishing or modification of a partially or nearly complete foreign product in the United States will not result in the substantial transformation of such product and it remains the product of a foreign country.
Example 1. A cast metal housing for a valve is made in the United States from imported copper ingots, the product of a foreign coun- try. The housing is a product of the United States because the manufacturing operations performed in the United States to produce the housing resulted in a substantial trans- formation of the foreign copper ingots.
Example 2. An integrated circuit device is assembled in a foreign country and imported into the United States where its leads are formed by bending them to a specified angle. It is then tested and marked. The imported article does not become a product of the United States because the operations per- formed in the United States do not result in a substantial transformation of the foreign integrated circuit device.
Example 3. A circuit board assembly for a computer is assembled in the United States by soldering American-made and foreign- made components onto an American-made printed circuit board. The finished circuit board assembly has a distinct electronic function and is ready for incorporation into the computer. The foreign-made components have undergone a substantial transformation by becoming permanent parts of the circuit board assembly. The circuit board assembly, including all of its parts is regarded as a fab- ricated component, the product of the United States, for purposes of subheading 9802.00.80, HTSUS (19 U.S.C. 1202).
[T.D. 75–230, 40 FR 43022, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988]
§ 10.15 Fabricated components not subject to the exemption.
Fabricated components which are not products of the United States are ex- cluded from the exemption. In addi- tion, the exemption is not applicable to any component exported from the Cus- toms territory of the United States:
(a) From continuous Customs cus- tody with remission, abatement, or re- fund of duty;
(b) With benefit of drawback; (c) To comply with any law of the
United States or regulation of any Fed- eral agency requiring exportation; or
(d) After manufacture or production in the United States under subheading 9813.00.05, HTSUS (19 U.S.C. 1202).
Example. Partially completed components of an electric motor are imported in several separate shipments and are entered under a temporary importation bond to be manufac- tured into finished motors under the provi- sions of subheading 9813.00.05, HTSUS (19 U.S.C. 1202). The components are completed and assembled into finished electric motors. The finished motors are exported and are as- sembled abroad into electric fans which are subsequently imported into the United States. Irrespective of the fact that the as- sembly of the motors might involve such a substantial change that the motor could be considered a product of the United States, no exemption may be given for the value of the electric motors, since they were exported after manufacture or production in the United States under the provision of sub- heading 9813.00.05, HTSUS (19 U.S.C. 1202).
[T.D. 75–230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51247, Dec. 21, 1988]
§ 10.16 Assembly abroad.
(a) Assembly operations. The assembly operations performed abroad may con- sist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fit- ting, gluing, laminating, sewing, or the use of fasteners, and may be preceded, accompanied, or followed by operations incidental to the assembly as illus- trated in paragraph (b) of this section. The mixing or combining of liquids, gases, chemicals, food ingredients, and amorphous solids with each other or with solid components is not regarded as an assembly.
Example 1. A television yoke is assembled abroad from American-made magnet wire. In the foreign assembly plant the wire is despooled and wound into a coil, the wire cut from the spool, and the coil united with other components, including a terminal panel and housing which are also American- made. The completed article upon importa- tion would be subject to the ad valorem rate of duty applicable to television parts upon the value of the yoke less the cost or value of the American-made wire, terminal panel and housing, assembled therein. The winding and cutting of the wire are either assembly steps or steps incidental to assembly.
Example 2. An aluminum electrolytic ca- pacitor is assembled abroad from American- made aluminum foil, paper, tape, and Mylar
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film. In the foreign assembly plant the alu- minum foil is trimmed to the desired width, cut to the desired length, interleaved with paper, which may or may not be cut to length or despooled from a continuous length, and rolled into a cylinder wherein the foil and paper are cut and a section of sealing tape fastened to the surface to pre- vent these components from unwinding. Wire or other electric connectors are bonded at appropriate intervals to the aluminum foil of the cylinder which is then inserted into a metal can, and the ends closed with a protec- tive washer. As imported, the capacitor is subject to the ad valorem rate of duty appli- cable to capacitors upon the value less the cost or value of the American-made foil, paper, tape, and Mylar film. The operations performed on these components are all ei- ther assembly steps or steps incidental to as- sembly.
Example 3. The manufacture abroad of cloth on a loom using thread or yarn ex- ported from the United States on spools, cops, or pirns is not considered an assembly but a weaving operation, and the thread or yarn does not qualify for the exemption. However, American-made thread used to sew buttons or garment components is qualified for the exemption because it is used in an op- eration involving the assembly of solid com- ponents.
(b) Operations incidental to the assem- bly process. Operations incidental to the assembly process whether performed before, during, or after assembly, do not constitute further fabrication, and will not preclude the application of the exemption. The following are examples of operations which are incidental to the assembly process:
(1) Cleaning; (2) Removal of rust, grease, paint, or
other preservative coating; (3) Application of paint or preserva-
tive coating, including preservative metallic coating, lubricants, or protec- tive encapsulation;
(4) Trimming, filing, or cutting off of small amounts of excess materials;
(5) Adjustments in the shape or form of a component to the extent required by the assembly being performed abroad;
(6) Cutting to length of wire, thread, tape, foil, and similar products ex- ported in continuous length; separation by cutting of finished components, such as prestamped integrated circuit lead frames exported in multiple unit strips; and
(7) Final calibration, testing, mark- ing, sorting, pressing, and folding of as- sembled articles.
(c) Operations not incidental to the as- sembly process. Any significant process, operation, or treatment other than as- sembly whose primary purpose is the fabrication, completion, physical or chemical improvement of a component, or which is not related to the assembly process, whether or not it effects a sub- stantial transformation of the article, will not be regarded as incidental to the assembly and will preclude the ap- plication of the exemption to such arti- cle. The following are examples of op- erations not considered incidental to the assembly as provided under sub- heading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202):
(1) Melting of exported ingots and pouring of the metal into molds to produce cast metal parts;
(2) Cutting of garment parts accord- ing to pattern from exported material;
(3) Chemical treatment of compo- nents or assembled articles to impart new characteristics, such as showerproofing, permapressing, sanforizing, dying or bleaching of tex- tiles;
(4) Machining, polishing, burnishing, peening, plating (other than plating in- cidental to the assembly), embossing, pressing, stamping, extruding, drawing, annealing, tempering, case hardening, and any other operation, treatment or process which imparts significant new characteristics or qualities to the arti- cle affected.
(d) Joining of American-made and for- eign-made components. An assembly op- eration may involve the use of Amer- ican-made components and foreign- made components. The various require- ments for establishing entitlement to the exemption apply only to the Amer- ican-made components of the assem- bly.
Example. Diodes are assembled abroad from American-made components. The process in- cludes the encapsulation of the assembled components in a plastic shell. The plastic used for the encapsulation is in the form of a pellet, and is of foreign origin. After the prefabricated diode components are assem- bled, the assembled unit is placed in a trans- fer molding machine, where, by use of the pellet, molten epoxy is caused to flow around
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the perimeters of the assembled components, forming upon solidification a plastic body for the diode. Upon importation, exemption may be granted for the value of the Amer- ican-made components, but not for the value of the plastic pellet. If the plastic pellet used for encapsulation was of United States ori- gin, its value would still be a part of the du- tiable value of the diode, because the plastic pellet is not a fabricated component of a type designed to be fitted together by assem- bly, but merely a premeasured quantity of material which was applied to the assembled unit by a process not constituting an assem- bly.
(e) Subassembly. An assembly oper- ation may involve the joining or fitting of American-made components into a part or subassembly of an article, fol- lowed by the installation of the part or subassembly into the complete article.
Example. Rolls of foil and rolls of paper are exported and cut to specific length abroad and interleaved and rolled to form the elec- trodes and dielectric of a capacitor. Fol- lowing this procedure, the rolls are assem- bled with cans and other parts to form a complete capacitor. The foil and paper are entitled to the exemption.
(f) Packing. The packing abroad of merchandise into containers does not in itself qualify either the containers or their contents for the exemption. However, assembled articles which oth- erwise qualify for the exemption and which are packaged abroad following their assembly will not be disqualified from the exemption by reason of their having been so packaged, whether for retail sale or for bulk shipment. The tariff status of the packing materials or containers will be determined in ac- cordance with General Rule of Inter- pretation 5, HTSUS (19 U.S.C. 1202).
[T.D. 75–230, 40 FR 43023, Sept. 18, 1975, as amended by T.D. 89–1, 53 FR 51248, Dec. 21, 1988; CBP Dec. 08-21, 73 FR 33300, June 12, 2008]
§ 10.17 Valuation of exempted compo- nents.
The value of fabricated components to be subtracted from the full value of the assembled article is the cost of the components when last purchased, f.o.b. United States port of exportation or point of border crossing as set out in the invoice and entry papers, or, if no purchase was made, the value of the components at the time of their ship-
ment for exportation, f.o.b. United States port of exportation or point of border crossing, as set out in the in- voice and entry papers. However, if the appraising officer concludes that the cost or value of the fabricated compo- nents so ascertained does not represent a reasonable cost or value, then the value of the components shall be deter- mined in accordance with section 402 or section 402a, Tariff Act of 1930, as amended (19 U.S.C. 1401a, 1402).
[T.D. 75–230, 40 FR 43024, Sept. 18, 1975]
§ 10.18 Valuation of assembled articles.
As in the case of the appraisement of any other import merchandise (see sub- part C of part 152 of this chapter), the full value of assembled articles im- ported under subheading 9802.00.80, Har- monized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), is de- termined in accordance with 19 CFR 152.100 et seq.
[T.D. 87–89, 52 FR 24445, July 1, 1987, as amended by T.D. 89–1, 53 FR 51248, Dec. 21, 1988]
§§ 10.19–10.20 [Reserved]
§ 10.21 Updating cost data and other information.
When a claim for the exemption is predicated on estimated cost data fur- nished either in advance of or at the time of entry, this fact should be clear- ly stated in writing at the time of entry, and suspension of liquidation may be requested by the importer or his agent pending the furnishing of ac- tual cost data. Actual cost data must be submitted as soon as accounting procedures permit. To insure that in- formation used for Customs purposes is reasonably current, the importer shall ordinarily be required to furnish up- dated cost and assembly data at least every six months, regardless of wheth- er he considers that significant changes have occurred. The 6-month period for the submission of updated cost or other data may be extended by the port director if such extension is appropriate for the type of merchan- dise involved, or because of the ac- counting period normally used in the
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19 CFR Ch. I (4–1–12 Edition)§ 10.23
trade, or because of other relevant cir- cumstances.
[T.D. 75–230, 40 FR 43025, Sept. 18, 1975]
§ 10.23 Standards, quotas, and visas.
All requirements and restrictions ap- plicable to imported merchandise, such as labeling, radiation standards, flame- retarding properties, quotas, and visas, apply to assembled articles eligible for the exemption in the same manner as they would apply to all other imported merchandise.
[T.D. 75–230, 40 FR 43025, Sept. 18, 1975]
§ 10.24 Documentation. (a) Documents required. The following
documents shall be filed in connection with the entry of assembled articles claimed to be subject to the exemption under subheading 9802.00.80, Har- monized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202).
(1) Declaration by the assembler. A dec- laration by the person who performed the assembly operations abroad shall be filed in substantially the following form:
I, lllll, declare that to the best of my knowledge and belief the lllll were as- sembled in whole or in part from fabricated components listed and described below, which are products of the United States:
Marks of identifica- tion, numbers
Description of com- ponent Quantity
Unit value at time and place of export
from United States 1
Port and date of export from United
States
Name and address of manufacturer
1 In accordance with U.S. Note 4 to Subchapter II of Chapter 98, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
Description of the operations performed abroad on the exported components (in sufficient detail to enable Customs officers to determine whether the operations performed are within the preview of subheading 9802.00.80, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) (attach supplemental sheet if more space is required)):
llllllllllllllllllllllll
Date Signature llllllllllllllllllllllll
Address Capacity
(2) Endorsement by the importer. An en- dorsement, in substantially the fol- lowing form, shall be signed by the im- porter:
I declare that to the best of my knowledge and belief the (above), (attached) declara- tion, and any other information submitted herewith, or otherwise supplied or referred to, is correct in every respect and there has been compliance with all pertinent legal notes to the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202). llllllllllllllllllllllll
Date Signature
llllllllllllllllllllllll
Address Capacity
(b) Revision of format. In specific cases, the port director may revise the format of either of the documents spec- ified in paragraph (a) of this section and may make such changes as condi- tions warrant, provided the data and information required to be supplied in these documents are presented. For ex-
ample, if the components were fur- nished by the importer, the informa- tion on components may be supplied as part of the importer’s endorsement, rather than as part of the assembler’s declaration.
(c) Reference to previously filed docu- ments. In lieu of filing duplicate lists of components and descriptions of assem- bly operations with each entry, the documents specified in paragraph (a) of this section may refer to assembly de- scriptions and lists of components pre- viously filed with and approved by the port director, or to records showing costs, names of manufacturers, and other necessary data on components, provided the importer has arranged with the port director to maintain such records and keep them available for ex- amination by authorized Customs offi- cers.
(d) Waiver of specific details for each entry. There are cases where large quantities of United States compo- nents are purchased from various sources or exported at various ports and dates on a continuing basis, so that
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it is impractical to identify the exact source, port and date of export for each particular component included in an entry of merchandise claimed to be subject to the exemption under sub- heading 9802.00.80, HTSUS (19 U.S.C. 1202). In these cases, specific details such as the port and date of export and the name of the manufacturer of the United States components may be waived if the port director is satisfied that the importer and assembler have established reliable controls to insure that all components for which the ex- emption is claimed are in fact products of the United States. These controls shall include strict physical segrega- tion of United States and foreign com- ponents, as well as records of United States components showing quantities, sources, costs, dates shipped abroad, and other necessary information. These records shall be maintained by the im- porter and assembler for 5 years from the date of the released entry in a man- ner so that they are readily available for audit, inspection, copying, repro- duction or other official use by author- ized Customs officers.
(e) Waiver of documents. When the port director is satisfied that unusual circumstances make the production of either or both of the documents speci- fied in paragraph (a) of this section, or of any of the information set forth therein, impractical and is further sat- isfied that the requirements of sub- heading 9802.00.80, HTSUS, and related legal notes have been met, he may waive the production of such docu- ment(s) or information.
(f) Unavailability of documents at time of entry. If either or both of the docu- ments specified in paragraph (a) of this section are not available at the time of entry, a bond on Customs Form 301 containing the bond conditions set forth in § 113.62 of this chapter for the production of the document(s) may be given pursuant to §§ 113.41–113.46 and 141.66 of this chapter.
(g) Responsibility of correctness. Sub- ject to the civil and criminal sanctions provided by law for false or fraudulent entries, the importer has the ultimate responsibility for supplying all infor- mation needed by the Customs Service to process an entry, and for the com- pleteness and truthfulness of such in-
formation. If certain information can- not be supplied by the assembler, it must be provided by the importer.
[T.D. 75–230, 40 FR 43025, Sept. 18, 1975, as amended by T.D. 79–159, 44 FR 31967, June 4, 1979; T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51248, Dec. 21, 1988]
§ 10.25 Textile components cut to shape in the United States and as- sembled abroad.
Where a textile component is cut to shape (but not to length, width, or both) in the United States from foreign fabric and exported to another country, territory, or insular possession for as- sembly into an article that is then re- turned to the United States and en- tered, or withdrawn from warehouse, for consumption on or after July 1, 1996, the value of the textile component shall not be included in the dutiable value of the article. For purposes of de- termining whether a reduction in the dutiable value of an imported article may be allowed under this section:
(a) The terms ‘‘textile component’’ and ‘‘fabric’’ have reference only to goods covered by the definition of ‘‘textile or apparel product’’ set forth in § 102.21(b)(5) of this chapter;
(b) The operations performed abroad on the textile component shall conform to the requirements and examples set forth in § 10.16 insofar as they may be applicable to a textile component; and
(c) The valuation and documentation provisions of §§ 10.17, 10.18, 10.21 and 10.24 shall apply.
[T.D. 95–69, 60 FR 46196, Sept. 5, 1995; T.D. 95– 69, 60 FR 55995, Nov. 6, 1995]
§ 10.26 Articles assembled or processed in a beneficiary country in whole of U.S. components or ingredients; ar- ticles assembled in a beneficiary country from textile components cut to shape in the United States.
(a) No article (except a textile arti- cle, apparel article, or petroleum, or any product derived from petroleum, provided for in heading 2709 or 2710, Harmonized Tariff Schedule of the United States (HTSUS)) shall be treat- ed as a foreign article or as subject to duty:
(1) If the article is assembled or proc- essed in a beneficiary country in whole
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of fabricated components that are a product of the United States; or
(2) If the article is processed in a ben- eficiary country in whole of ingredi- ents (other than water) that are a prod- uct of the United States; and
(3) Neither the fabricated compo- nents, materials or ingredients after their exportation from the United States, nor the article before its impor- tation into the United States, enters into the commerce of any foreign coun- try other than a beneficiary country.
(b) No article (except a textile or ap- parel product) entered, or withdrawn from warehouse, for consumption on or after July 1, 1996, shall be treated as a foreign article or as subject to duty:
(1) If the article is assembled in a beneficiary country in whole of textile components cut to shape (but not to length, width, or both) in the United States from foreign fabric; or
(2) If the article is assembled in a beneficiary country in whole of both textile components described in para- graph (b)(1) of this section and compo- nents that are products of the United States; and
(3) Neither the components after their exportation from the United States, nor the article before its impor- tation into the United States, enters into the commerce of any foreign coun- try other than a beneficiary country.
(c) For purposes of this section: (1) The terms ‘‘textile article’’, ‘‘ap-
parel article’’, and ‘‘textile or apparel product’’ cover all articles, other than footwear and parts of footwear, that are classifiable in an HTSUS sub- heading which carries a textile and ap- parel category number designation;
(2) The term ‘‘beneficiary country’’ has the meaning set forth in § 10.191(b)(1); and
(3) A component, material, ingre- dient, or article shall be deemed to have not entered into the commerce of any foreign country other than a bene- ficiary country if:
(i) The component, material, or in- gredient was shipped directly from the United States to a beneficiary country, or the article was shipped directly to the United States from a beneficiary country, without passing through the territory of any non-beneficiary coun- try; or
(ii) Where the component, material, ingredient, or article passed through the territory of a non-beneficiary coun- try while en route to a beneficiary country or the United States:
(A) The invoices, bills of lading, and other shipping documents pertaining to the component, material, ingredient, or article show a beneficiary country or the United States as the final des- tination and the component, material, ingredient, or article was neither sold at wholesale or retail nor subjected to any processing or other operation in the non-beneficiary country; or
(B) The component, material, ingre- dient, or article remained under the control of the customs authority of the non-beneficiary country and was not subjected to operations in that non- beneficiary country other than loading and unloading and activities necessary to preserve the component, material, ingredient, or article in good condition.
[T.D. 95–69, 60 FR 46197, Sept. 5, 1995]
FREE ENTRY—ARTICLES FOR THE USE OF FOREIGN MILITARY PERSONNEL
§ 10.30c [Reserved]
TEMPORARY IMPORTATIONS UNDER BOND
§ 10.31 Entry; bond.
(a)(1) Entry of articles brought into the United States temporarily and claimed to be exempt from duty under Chapter 98, Subchapter XIII, Har- monized Tariff Schedule of the United States (HTSUS), unless covered by an A.T.A. carnet or a TECRO/AIT carnet as provided in part 114 of this chapter, shall be made on Customs Form 3461 or 7533, supported by the documentation required by § 142.3 of this chapter. How- ever, when § 10.36 or § 10.36a is applica- ble, or the aggregate value of the arti- cle is not over $250, the form prescribed for the informal entry of importations by mail, in baggage, or by other means, may be used. When entry is made on Customs Form 3461 or 7533, an entry summary, Customs Form 7501, shall be filed within 10 days after time of entry, in accordance with subpart B, part 142 of this chapter.
(2) If Customs Form 7501 is filed at time of entry, it shall serve as both the
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entry and entry summary, and Cus- toms Form 3461 or 7533 shall not be re- quired. Customs Form 7501 shall be in original only, except for entries under subheading 9813.00.05, HTSUS, which require a duplicate copy for statistical purposes. When articles are entered under an A.T.A. carnet or a TECRO/ AIT carnet, the importation voucher of the carnet shall serve as the entry.
(3) In addition to the data usually shown on a regular consumption entry summary, each temporary importation bond entry summary shall include:
(i) The HTSUS subheading number under which entry is claimed.
(ii) A statement of the use to be made of the articles in sufficient detail to enable the port director to deter- mine whether they are entitled to entry as claimed, and
(iii) A declaration that the articles are not to be put to any other use and that they are not imported for sale or sale on approval.
(b) The port director, if he is satisfied as to the importer’s identity and good faith, may admit a vehicle or craft brought in by a nonresident to take part in a race or other specific contest for which no money purse is awarded, under the provisions of subheading 9813.00.35, HTSUS, without formal entry or security for exportation. If at the time of arrival it appears that the article is likely to remain in the United States beyond 90 days, formal entry and bond shall be taken.
(c) When any article has been admit- ted without formal entry or security for exportation and the importer there- after desires to prolong his stay beyond 90 days, an entry covering the article and security for its exportation shall be accepted at any port where the arti- cle may be presented for entry. The time during which the imported article may remain in the United States under the entry shall be computed from the date of its original arrival in the United States. The estimated duties for the purpose of fixing the amount of any bond required by paragraph (f) of this section shall be the estimated duties which would have been required to be deposited had the article been entered under an ordinary consumption entry on the date of the original arrival.
(d) [Reserved]
(e) The entry or invoice shall: (1) De- scribe each article in detail; (2) set forth the value of each article; and (3) set forth any marks or numbers there- on or other distinguishing features thereof. In the case of a vehicle, air- craft, or pleasure boat entered under subheading 9813.00.05, HTSUS and § 10.36a, the registration number, and engine or motor number, and the body number (if available) shall also be shown on the entry. Examination of the imported articles shall be made whenever the circumstances warrant, and occasionally in any event to an ex- tent which will enable the Customs of- ficer to determine that the importation is in agreement with the invoice or entry as to identity and quantity and for the purpose of accepting the entry under the applicable provisions of Chapter 98, Subchapter XIII, HTSUS. No examination for the purpose of ap- praisement and no appraisement of the articles shall be made.
(f) With the exceptions stated herein, a bond shall be given on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, in an amount equal to double the duties, in- cluding fees, which it is estimated would accrue (or such larger amount as the port director shall state in writing or by the electronic equivalent to the entrant is necessary to protect the rev- enue) had all the articles covered by the entry been entered under an ordi- nary consumption entry. In the case of samples solely for use in taking orders entered under subheading 9813.00.20, HTSUS, motion-picture advertising films entered under subheading 9813.00.25, HTSUS, and professional equipment, tools of trade and repair components for such equipment or tools entered under subheading 9813.00.50, HTSUS, the bond required to be given shall be in an amount equal to 110 percent of the estimated duties, in- cluding fees, determined at the time of entry. If appropriate a carnet, under the provisions of part 114 of this chap- ter, may be filed in lieu of a bond on Customs Form 301 (containing the bond conditions set forth in § 113.62 of this chapter). Cash deposits in the amount of the bond may be accepted in lieu of sureties. When the articles are entered under subheading 9813.00.05, 9813.00.20,
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or 9813.00.50, HTSUS without formal entry, as provided for in §§ 10.36 and 10.36a, or the amount of the bond taken under any subheading of Chapter 98, Subchapter XIII, HTSUS, is less than $25, the bond shall be without surety or cash deposit, and the bond shall be modified to so indicate. In addition, notwithstanding any other provision of this paragraph, in the case of profes- sional equipment necessary for car- rying out the business activity, trade or profession of a business person, equipment for the press or for sound or television broadcasting, cinemato- graphic equipment, articles imported for sports purposes and articles in- tended for display or demonstration, if brought into the United States by a resident of Canada, Mexico, Singapore, Chile, Morocco, El Salvador, Guate- mala, Honduras, Nicaragua, the Do- minican Republic, Costa Rica, Bahrain, Oman, Peru, or the Republic of Korea and entered under Chapter 98, Sub- chapter XIII, HTSUS, no bond or other security will be required if the entered article is a good originating, within the meaning of General Note 12, 25, 26, 27, 29, 30, 31, 32, and 33, HTSUS, in the country of which the importer is a resi- dent.
(g) Claim for free entry under Chap- ter 98, Subchapter XIII, HTSUS may be made for articles of any character de- scribed therein which have been pre- viously entered under any other provi- sion of law and the entry amended ac- cordingly upon compliance with the re- quirements of this section, provided the articles have not been released from CBP custody, or even though re- leased from CBP custody if it is estab- lished that the original entry was made on the basis of a clerical error, mistake of fact, or other inadvertence within the meaning of section 514(a), Tariff Act of 1930, as amended, and was brought to the attention of CBP within the time limits of that section. If an entry is so amended, the period of time during which the merchandise may re- main in the customs territory of the United States under bond shall be com- puted from the date of importation. In the case of articles covered by an infor- mal mail entry, such a claim may be made within a reasonable time either
before or after the articles have been released from CBP custody.
(h) After the entry and bond have been accepted, the articles may be re- leased to the importer. The entry shall not be liquidated as the transaction does not involve liquidated duties. However, a TIB importer may be re- quired to file an entry for consumption and pay duties, or pay liquidated dam- ages under its bond for a failure to do so, in the case of merchandise imported under subheading 9813.00.05, HTSUS, and subsequently exported to Canada or Mexico (see § 181.53 of this chapter).
[28 FR 14663, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 10.31, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 10.33 Theatrical effects.
For purposes of the entry of theat- rical scenery, properties and apparel under subheading 9817.00.98, Har- monized Tariff Schedule of the United States:
(a) Animals imported for use or exhi- bition in theaters or menageries may be classified as theatrical properties; and
(b) The term ‘‘theatrical scenery, properties and apparel’’ shall not be construed to include motion-picture films.
For provisions relating to the return without formal entry of theatrical ef- fects taken from the United States, see § 10.68 of this part.
[T.D. 92–85, 57 FR 40605, Sept. 4, 1992, as amended by CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004]
§ 10.35 Models of women’s wearing ap- parel.
(a) Models of women’s wearing ap- parel admitted under subheading 9813.00.10, Harmonized Tariff Schedule of the United States (HTSUS), shall not be removed from the importer’s es- tablishment for reproducing, copying, painting, sketching, or for any other use by others, nor be used in the im- porter’s establishment for such pur- poses except by the importer or his em- ployees.
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(b) Invoices covering models of wom- en’s wearing apparel entered under sub- heading 9813.00.10 or 9813.00.25, HTSUS shall state the kind and color of the principal material from which the ap- parel is made, and shall contain a de- scription of the lining and the trim- ming, stating whether composed of fur, lace, embroidery, or other material. In- voices shall also contain a statement as to how the trimming is applied, that is, whether on the cuffs, collar, sleeves, or elsewhere, and the total value of each completed garment or article.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87–75, 52 FR 20066, May 29, 1987; T.D. 89– 1, 53 FR 51248, Dec. 21, 1988]
§ 10.36 Commercial travelers’ samples; professional equipment and tools of trade; theatrical effects and other articles.
(a) Samples accompanying a com- mercial traveler who presents an ade- quate descriptive list or a special CBP invoice, and professional equipment, tools of trade, and repair components for such equipment or tools imported in his baggage for his own use by a nonresident sojourning temporarily in the United States may be entered on the importer’s baggage declaration in lieu of formal entry and examination and may be passed under subheadings 9813.00.20 or 9813.00.50, Harmonized Tar- iff Schedule of the United States, (HTSUS), at the place of arrival in the same manner as other passengers’ bag- gage. The examination may be made by an inspector who is qualified, in the opinion of the port director, to deter- mine the amount of the bond required by § 10.31(c) to be filed in support of the entry. If the articles are a commercial traveler’s samples and exceed $500 in value, a special Customs invoice or a descriptive list shall be furnished.
(b) When the proprietor or manager of a theatrical exhibition arriving from abroad who has entered his scenery, properties, and apparel under sub- heading 9817.00.98, HTSUS, con- templates side trips to a contiguous country with the exhibition within the period of time during which the mer- chandise may remain in the customs territory of the United States under bond, including any lawful extension, a copy of the entry covering the effects
and a copy of a descriptive list of such effects or invoice furnished by him may be certified by the examining offi- cer and returned to the proprietor or manager for use in registering the ef- fects with the CBP officers at the port of exit, and in clearing them through CBP on his return. Cancellation of the bond shall be effected by exportation in accordance with the provisions of § 10.38 at the time the theatrical effects are finally taken out of the United States before the expiration of the pe- riod of time during which the merchan- dise may remain in the customs terri- tory of the United States under bond, including any lawful extension. Simi- lar treatment may be accorded articles entered under other subheadings in chapter 98, subchapter XIII, HTSUS, upon approval by Headquarters, U.S. Customs and Border Protection.
(c) When a commercial traveler con- templates side trips to a contiguous country within the period of time dur- ing which the merchandise may remain in the customs territory of the United States under bond, including any law- ful extension, a copy of his baggage declaration and a copy of the descrip- tive list or special CBP invoice fur- nished by him may be certified by the examining officer and returned to the traveler for use in registering the sam- ples with CBP officers at the port of exit, and in clearing them through CBP upon his return. Cancellation of the bond shall be effected by exportation in accordance with the provisions of § 10.38 at the time the samples are fi- nally taken out of the United States before the expiration of the period of time during which the merchandise may remain in the customs territory of the United States under bond, includ- ing any lawful extension.
(d) The privilege of clearance of com- mercial travelers’ samples or profes- sional equipment, tools of trade, and repair components for such equipment or tools imported for his own use by a nonresident sojourning temporarily in the United States on a baggage dec- laration under bond without surety or cash deposit shall not be accorded to a commercial traveler or such non- resident who, through fraud or culpable negligence, has failed to comply with
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the provisions of such a bond in con- nection with a prior arrival. Such a commercial traveler or non- resident shall be required to file a for- mal entry under subheading 9813.00.20 or subheading 9813.00.50, HTSUS with a bond supported by a surety or cash de- posit in lieu of surety.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69–146, 34 FR 9799, June 25, 1969; T.D. 84– 213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51248, Dec. 21, 1988; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.36a Vehicles, pleasure boats and aircraft brought in for repair or al- teration.
(a) A vehicle (such as an automobile, truck, bus, motorcycle, tractor, trail- er), pleasure boat, or aircraft brought into the United States by an operator of such vehicle, pleasure boat, or air- craft for repair or alteration (as de- fined in §§ 10.8, 10.490, 10.570, and 181.64 of this chapter) may be entered on the operator’s baggage declaration, in lieu of formal entry and examination, and may be passed under subheading 9813.00.05, Harmonized Tariff Schedule of the United States (HTSUS), at the place of arrival in the same manner as passengers’ baggage. When the vehicle, aircraft, or pleasure boat to be entered is being towed by or transported on an- other vehicle, the operator of the tow- ing or transporting vehicle may make entry for the vehicle, aircraft or pleas- ure boat to be repaired or altered. The bond, prescribed by § 10.31(f), filed to support entry under this section shall be without surety or cash deposit ex- cept as provided by this paragraph and paragraph (d) of this section. The ex- amination may be made by an inspec- tor who is qualified to determine the amount of such bond to be filed in sup- port of the entry. The privilege ac- corded by this paragraph shall not apply when two or more vehicles, pleasure boats, or aircraft are to be en- tered by the same importer under sub- heading 9813.00.05, HTSUS, at the same time. In that event, the importer must file a formal entry supported by bond with surety or cash deposit in lieu of surety.
(b) Each vehicle, pleasure boat, or aircraft to which paragraph (a) of this section is applicable shall be identified
on the operator’s baggage declaration, which must include the data prescribed in paragraphs (a) and (e) of § 10.31.
(c) Exportation shall be effected in accordance with the provisions of § 10.38.
(d) The privilege of clearance of a ve- hicle, pleasure boat, or aircraft brought in by the operator of such ve- hicle, pleasure boat, or aircraft, for re- pair or alteration on his baggage dec- laration under bond without surety or cash deposit shall not be granted to an individual who has failed to comply with the provisions of such a bond in connection with any prior arrival. Such individual shall be required to file a formal entry under subheading 9813.00.05, HTSUS, with a bond sup- ported by a surety or cash deposit in lieu of surety.
[T.D. 66–39, 31 FR 2817, Feb. 17, 1966, as amended by T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51248, Dec. 21, 1988; T.D. 94–1, 58 FR 69470, Dec. 30, 1993; CBP Dec. 05– 07, 70 FR 10872, Mar. 7, 2005; CBP Dec. 07–28, 72 FR 31995, June 11, 2007]
§ 10.37 Extension of time for expor- tation.
The period of time during which mer- chandise entered under bond under chapter 98, subchapter XIII, Har- monized Tariff Schedule of the United States (19 U.S.C. 1202), may remain in the customs territory of the United States, may be extended for not more than two further periods of 1 year each, or such shorter period as may be appro- priate. Extensions may be granted by the director of the port where the entry was filed upon written applica- tion on CBP Form 3173, provided the articles have not been exported or de- stroyed before the receipt of the appli- cation, and liquidated damages have not been assessed under the bond be- fore receipt of the application. Any un- timely request for an extension of time for exportation shall be referred to the Director, Commercial and Trade Fa- cilitation Division, Office of Inter- national Trade, CBP Headquarters, for disposition. Any request for relief from a liquidated damage assessment in ex- cess of a Fines, Penalties, and Forfeit- ures Officer’s delegated authority shall be referred to the Director, Border Se- curity and Trade Compliance Division,
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Office of International Trade, CBP Headquarters, for disposition. No ex- tension of the period for which a carnet is valid shall be granted.
[T.D. 69–146, 34 FR 9799, June 25, 1969, as amended by T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51249, Dec. 21, 1988; T.D. 91–77, 56 FR 46114, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 10.38 Exportation. (a) Articles entered under chapter 98,
subchapter XIII, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202) may be exported at the port of entry or at another port. An ap- plication on Customs Form 3495 shall be filed in duplicate with the port di- rector a sufficient length of time in ad- vance of exportation to permit the ex- amination and identification of the ar- ticles if circumstances warrant such action and, in such event, the applicant shall be notified on a copy of Customs Form 3495 where the articles are to be sent for identification. If a carnet was used for entry purposes, the reexpor- tation voucher of the carnet shall be filed, in addition to Customs Form 3495, and the carnet shall be presented for certification.
(b) All expenses in connection with the delivery of the articles for exam- ination, the cording and sealing of such articles, and their transfer for expor- tation shall be paid by the parties in interest.
(c) If exportation is to be made at a port other than the one at which the merchandise was entered, the applica- tion on Customs Form 3495 shall be filed in triplicate. There shall also be filed with the application a certified copy of the import entry or a certified copy of the invoice used on entry.
(d) If the goods are examined at one port and are to be exported from an- other port, they shall be forwarded to the port of exportation under a trans- portation and exportation entry. In such cases Customs Form 3495 shall be filed in triplicate. Articles entered under a carnet shall not be examined elsewhere than at the port from which they are to be exported.
(e) If the articles are to be exported by mail or parcel post, the package containing the articles must be mailed under Customs supervision after exam-
ination. Waiver of the right to with- draw the package from the mails shall be endorsed on each package to be so exported and signed by the exporter.
(f) Whenever the circumstances war- rant, and occasionally in any event, port directors shall cause the fact of exportation to be verified by the Office of Enforcement in harmony with the procedures provided for in §§ 18.7 and 191.61 of this chapter.
(g) Upon the presentation of satisfac- tory evidence to the director of the port at which samples were entered under subheading 9813.00.20, HTSUS, or professional equipment or tools of trade were entered under subheading 9813.00.50, HTSUS, that such articles cannot be exported for the reason that they have been seized (other than by seizure at the suit of private persons), the requirement of exportation shall be suspended for the duration of the sei- zure. The articles shall be exported promptly after release from seizure.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69–146, 34 FR 9799, June 25, 1969; T.D. 83– 212, 48 FR 46771, Oct. 14, 1983; T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51249, Dec. 21, 1988; T.D. 91–77, 56 FR 46114, Sept. 10, 1991; T.D. 98–16, 63 FR 11004, Mar. 5, 1998]
§ 10.39 Cancellation of bond charges. (a) Charges against bonds taken pur-
suant to Chapter 98, Subchapter XIII, Harmonized Tariff Schedule of the United States, (HTSUS), may be can- celed in the manner prescribed in § 113.55 of this chapter. A completed re- exportation counterfoil on a carnet es- tablishes that the articles covered by the carnet have been exported, and no claim shall be brought against the guaranteeing association under the carnet for failure to export, except under the provisions of § 114.26 of this chapter. In the case of articles entered under subheading 9813.00.30, HTSUS, which are destroyed because of their use for the purposes of importation, the bond charge shall not be canceled unless there is submitted to the port director a certificate of the importer that the articles were destroyed during the course of a specifically described use, and the port director is satisfied that the articles were so destroyed as articles of commerce within the period of time during which the articles may
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remain in the Customs territory of the United States under bond (including any lawful extension). Bonds covering articles entered under other provisions of law shall not be canceled upon proof of destruction, except as provided for in paragraph (c) of this section, unless the articles are destroyed under Cus- toms supervision in accordance with section 557, Tariff Act of 1930, as amended, and § 158.43 of this chapter.
(b) Where exportation has been made at a port other than the port of entry, the bond may be canceled upon the cer- tificate of lading received from the port of exportation, showing that such exportation was made within the pe- riod of time during which the articles may remain in the Customs territory of the United States under bond. In ad- dition, the port director may require the production of a landing certificate signed by a revenue officer of the coun- try to which the merchandise is ex- ported.
(c) When articles entered temporarily free of duty under bond are destroyed within the bond period by death, acci- dental fire, or other casualty, petition for relief from liability under the bond shall be made to the United States Cus- toms Service. The petition shall be ac- companied by a statement of the im- porter, or other person having knowl- edge of the facts, setting forth the cir- cumstances of the destruction of the articles.
(d)(1) If any article entered under Chapter 98, subchapter XIII, HTSUS, except those entered under a carnet, has not been exported or destroyed in accordance with the regulations in this part within the period of time during which the articles may remain in the Customs territory of the United States under bond (including any lawful ex- tension), the Fines, Penalties, and For- feitures Officer shall make a demand in writing under the bond for the pay- ment of liquidated damages equal to double the estimated duties applicable to such entry, unless a different amount is prescribed by § 10.31(f). The demand shall include a statement that a written petition for relief from the payment of the full liquidated damages may be filed with the Fines, Penalties, and Forfeitures Officer within 60 days after the date of the demand. For pur-
poses of this section, the term esti- mated duties shall include any mer- chandise processing fees applicable to such entry.
(2) If articles entered under a carnet have not been exported or destroyed in accordance with the regulations in this part within the carnet period, the port director shall promptly after expira- tion of that period make demand in writing upon the importer and guaran- teeing association for the payment of liquidated damages in the amount of 110 percent of the estimated duties on the articles not exported or destroyed. The guaranteeing association shall have a period of 6 months from the date of claim in which to furnish proof of the exportation or destruction of the articles under conditions set forth in the Convention or Agreement under which the carnet is issued. If such proof is not furnished within the 6– month period, the guaranteeing asso- ciation shall forthwith pay the liq- uidated damages provided for above. The payment shall be refunded if the guaranteeing association within 3 months from the date of payment fur- nishes the proof referred to above. No claim for payment under a carnet cov- ering a temporary importation may be made against the guaranteeing associa- tion more than 1 year after the expira- tion of the period for which the carnet was valid.
(3) Demand for return to Customs custody. When the demand for return to Customs custody is made in the case of merchandise entered under Chapter 98, subchapter XIII, HTSUS (19 U.S.C. 1202), liquidated damages in an amount equal to double the estimated duties on the merchandise not returned shall be demanded, except that in the case of samples solely for use in taking orders, motion-picture advertising films, pro- fessional equipment, tools of trade, and repair components for professional equipment and tools of trade, the liq- uidated damages demanded shall be in an amount equal to 110 percent of the estimated duties.
(e) If there has been a default with respect to any or all of the articles cov- ered by the bond and a written petition for relief is filed as provided in part 172 of this chapter, it will be reviewed by the Fines, Penalties, and Forfeitures
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Officer having jurisdiction in the port where the entry was filed. If the Fines, Penalties, and Forfeitures Officer is satisfied that the importation was properly entered under Chapter 98, sub- chapter XIII, and that there was no in- tent to defraud the revenue or delay the payment of duty, the Fines, Pen- alties, and Forfeitures Officer may can- cel the liability for the payment of liq- uidated damages in any case in his or her delegated authority as follows:
(1) If evidence is furnished which sat- isfies the Fines, Penalties, and Forfeit- ures Officer that the article would have been entitled to free entry as domestic products exported and returned had the evidence been furnished at the time of entry, without the collection of liq- uidated damages.
(2) If the article has been exported or destroyed under Customs supervision but not within the period of time dur- ing which the articles may remain in the Customs territory of the United States under bond, upon the payment of such lesser amount as the port direc- tor may deem appropriate under the law and in view of the circumstances, or without the collection of liquidated damages if the Fines, Penalties, and Forfeitures Officer is satisfied that the delay in exportation or destruction was for the benefit of the United States or was occasioned wholly by cir- cumstances reasonably beyond the con- trol of the parties concerned and which could not have been anticipated by a reasonably prudent person.
(3) If the article was exported or de- stroyed within the period of time dur- ing which the articles may remain in the Customs territory of the United States under bond but not under Cus- toms supervision and satisfactory doc- umentary evidence of actual expor- tation, such as a foreign landing cer- tificate, or of death or other complete destruction, such as a veterinarian’s certificate or certificates of two disin- terested witnesses, are furnished to- gether with a complete explanation by the applicant of the failure to obtain Customs supervision, upon the pay- ment of such lesser amount as the Fines, Penalties, and Forfeitures Offi- cer may deem appropriate under the law and in view of the circumstances, or without the collection of liquidated
damages if the port director is satisfied that the merchandise was destroyed under circumstances which precluded any arrangement to obtain Customs supervision. Satisfactory documentary evidence of exportation, in the case of carnets, would include the particulars regarding importation or reimporta- tion entered in the carnet by the Cus- toms authorities of another con- tracting party, or a certificate with re- spect to importation or reimportation issued by those authorities, based on the particulars shown on a voucher which was detached from the carnet on importation or reimportation into their territory, provided it is shown that the importation or reimportation took place after the exportation which it is intended to establish.
(4) Upon the payment of an amount equal to double the duty which would have accrued on the articles had they been entered under an ordinary con- sumption entry, or equal to 110 percent of such duties where that percentage is prescribed in § 10.31(f), if such amount is determined to be less than the full amount of the bond.
(f) Anticipatory breach. If an importer anticipates that the merchandise en- tered under a Temporary Importation Bond will not be exported or destroyed in accordance with the terms of the bond, the importer may indicate to Customs in writing before the bond pe- riod has expired of the anticipatory breach. At the time of written notifica- tion of the breach, the importer shall pay to Customs the full amount of liq- uidated damages that would be as- sessed at the time of breach of the bond, and the entry will be closed. The importer shall notify the surety in writing of the breach and payment. By this payment, the importer waives his right to receive a notice of claim for liquidated damages as required by § 172.1(a) of this chapter.
(g) If the petitioner is not satisfied with the port director’s action under this section and submits a supple- mental petition, both the original and the supplemental petitions shall be
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transmitted to the designated Head- quarters official with a full report on the case.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69–146, 34 FR 9799, June 25, 1969; T.D. 70– 249, 35 FR 18265, Dec. 1, 1970; T.D. 71–70, 36 FR 4485, Mar. 6, 1971; T.D. 73–308, 38 FR 30549, Nov. 6, 1973; T.D. 74–227, 39 FR 32015, Sept. 4, 1974; T.D. 75–36, 40 FR 5146, Feb. 4, 1975; T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89–1, 53 FR 51249, Dec. 21, 1988; T.D. 91–71, 56 FR 40779, Aug. 16, 1991; T.D. 95–22, 60 FR 14632, Mar. 20, 1995; T.D. 98–10, 63 FR 4167, Jan. 28, 1998; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 00–57, 65 FR 53574, Sept. 5, 2000]
§ 10.40 Refund of cash deposits.
(a) When a cash deposit is made in lieu of surety, it shall be refunded to the person in whose name the entry is made upon exportation in compliance with § 10.38.
(b) If any article entered under Chap- ter 98, subchapter XIII, Harmonized Tariff Schedule of the United States, is not exported or destroyed within the period of time during which articles may remain in the Customs territory of the United States under bond (in- cluding any lawful extension), the port director shall notify the importer in writing that the entire cash deposit will be transferred to the regular ac- count as liquidated damages unless a written application for relief from the payment of the full liquidated damages is filed with the port director within 60 days after the date of the notice. If such an application is timely filed, the transfer of the cash deposit to the reg- ular account as liquidated damages shall be deferred pending the decision of the Headquarters, U.S. Customs Service or, in appropriate cases, the port director on the application.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 89– 1, 53 FR 41249, Dec. 21, 1988]
INTERNATIONAL TRAFFIC
§ 10.41 Instruments; exceptions.
(a) Locomotives and other railroad equipment, trucks, buses, taxicabs, and other vehicles used in international traffic shall be subject to the treat- ment provided for in part 123 of this chapter.
(b) [Reserved]
(c) Foreign-owned aircraft arriving in the United States shall be subject to the treatment provided for in part 122 of this chapter, unless entered under the provisions of §§ 10.31, 10.183, or para- graph (d) of this section.
(d) Any foreign-owned locomotive or other railroad equipment, truck, bus, taxicab, or other vehicle, aircraft, or undocumented boat brought into the United States for the purpose of car- rying merchandise or passengers be- tween points in the United States for hire or as an element of a commercial transaction, except as provided at §§ 123.12 (a) and (b), 123.14(c), and 141.4(b)(4), is subject to treatment as an importation of merchandise from a for- eign country and a regular entry for such vehicle, aircraft or boat will be made. The use of any such vehicle, air- craft, or boat without a proper entry having been made may result in liabil- ities being incurred under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592).
(e) [Reserved] (f) Material for the maintenance or
repair of international cables under the high seas, if requiring storage in spe- cial tanks for preservation, may be placed in tanks specially bonded for the purpose and withdrawn therefrom for high-seas installation without the payment of duty and without limita- tion of the storage period to the usual 3-year warehousing period. Inter- national cables laid under the terri- torial waters of the United States but not brought on shore in the United States shall be admitted without entry or the payment of duty. With respect to international cables laid under the territorial waters of the United States but brought on shore in the United States, only that part of the cable in the United States between the point of entry into the territorial waters of the United States and the first point of support on land in the United States shall be admitted without the payment of duty.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 70–121, 35 FR 8222, May 26, 1970; T.D. 79– 160, 44 FR 31956, June 4, 1979; T.D. 84–109, 49 FR 19450, May 8, 1984; T.D. 88–12, 53 FR 9315, Mar. 22, 1988; T.D. 93–66, 58 FR 44130, Aug. 19, 1993; T.D. 99–79, 64 FR 61205, Nov. 10, 1999]
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U.S. Customs and Border Protection, DHS; Treasury § 10.41a
§ 10.41a Lift vans, cargo vans, shipping tanks, skids, pallets, and similar in- struments of international traffic; repair components.
(a)(1) Lift vans, cargo vans, shipping tanks, skids, pallets, caul boards, and cores for textile fabrics, arriving (whether loaded or empty) in use or to be used in the shipment of merchandise in international traffic are hereby des- ignated as ‘‘instruments of inter- national traffic’’ within the meaning of section 322(a), Tariff Act of 1930, as amended. The Commissioner of Cus- toms is authorized to designate as in- struments of international traffic, in decisions to be published in the weekly Customs Bulletin, such additional arti- cles or classes of articles as he shall find should be so designated. Such in- struments may be released without entry or the payment of duty, subject to the provisions of this section.
(2) Repair components, accessories, and equipment for any container of for- eign production which is an instrument of international traffic may be entered or withdrawn from warehouse for con- sumption without the deposit of duty if the person making the entry or with- drawal from warehouse files a declara- tion that the repair component was im- ported to be used in the repair of a con- tainer of foreign production which is an instrument of international traffic, or that the accessory or equipment is for a container of foreign production which is an instrument of inter- national traffic. The port director must be satisfied that the importer of the re- pair component, accessory, or equip- ment had the declared intention at the time of importation.
(3) As used in this section, ‘‘instru- ments of international traffic’’ in- cludes the normal accessories and equipment imported with any such in- strument which is a ‘‘container’’ as de- fined in Article 1 of the Customs Con- vention on Containers.
(b) The reexportation of a container, as defined in Article 1 of the Customs Convention on Containers, which has become badly damaged, shall not be re- quired in the case of a duly authenti- cated accident if the container (1) is subjected to applicable import duties and import taxes, or (2) is abandoned free of all expense to the Government
or destroyed under Customs super- vision at the expense of the parties concerned, following the procedure outlined in § 158.43(c) of this chapter. Any salvaged parts and materials shall be subjected to applicable import du- ties and import taxes. Replaced parts which are not reexported shall be sub- jected to import duties and import taxes except where abandoned free of expense to the Government or de- stroyed under Customs supervision at the expense of the parties concerned.
(c) The instruments of international traffic designated in paragraph (a) of this section may be released in accord- ance with the provisions of that para- graph only after the applicant for such release has filed a bond on Customs Form 301, containing the bond condi- tions set forth in § 113.66 of this chap- ter. The required application may be filed at the port of arrival or at a sub- sequent port to which an instrument shall have been transported in bond or to which a container shall have been moved under cover of a TIR carnet (see part 114 of this chapter) showing the characteristics and value of the con- tainer on the Goods Manifest of the carnet. If the container is listed on the Goods Manifest of the carnet, the ap- plication may be filed at the port of ar- rival or at the subsequent port. If the container is not listed on the Goods Manifest, the application shall be filed at the port of arrival. When the appli- cation is filed at a port other than the port at which the bond is on file, the following procedure applies:
(1) When the application is filed be- fore the fact of approval of the appli- cant’s bond has been established, the applicant must submit with the appli- cation, or the Customs officer to whom the application is made must obtain, evidence that a current bond is on file at another port. That evidence may consist of a certified copy of the bond, or any other evidence which will sat- isfy the Customs officer to whom the application is made that a current bond is on file at another port.
(2) If the application is filed after the fact of approval of the applicant’s bond has been established, a certified copy of that bond need not be filed at the port of release. Upon determination by the appropriate Customs officer that
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the fact of approval of the applicant’s bond has been established, and the bond has not been subsequently discon- tinued, the instruments of inter- national traffic will be released as pro- vided for in paragraph (a) of this sec- tion.
(3) Upon the request of the applicant, the appropriate Customs officer at the port at which the instruments of inter- national traffic are to be released will determine whether or not the fact of approval of the applicant’s bond has been established. If the approval has not been established, the Customs offi- cer with whom the application has been filed will advise the applicant of the nature of the evidence required to establish the fact that a current bond is on file at another port.
(d) If an instrument of foreign origin, or of United States origin which has been increased in value or improved in condition by a process of manufacture or other means while abroad, is re- leased under this section and is subse- quently diverted to point-to-point local traffic within the United States, or is otherwise withdrawn in the United States from its use as an instrument of international traffic, it becomes sub- ject to entry and the payment of any applicable duties. An instrument of United States origin which has not been increased in value or improved in condition by a process of manufacture or other means while abroad and which is released under this section shall not be subject to entry or the payment of duty if it is so diverted or otherwise withdrawn.
(e) The person who filed the applica- tion for release under paragraph (a)(1) of this section shall promptly notify a director of a port of entry in the United States as defined in Section 401(k), Tariff Act of 1930, as amended, (1) that the container is to be aban- doned or destroyed, as described in paragraph (b) of this section, or (2) that the instrument is the subject of a di- version or withdrawal as described in paragraph (d) of this section, in which event he shall file with the port direc- tor a consumption entry for the instru- ment and pay all import duties and im- port taxes due on the container or in- strument at the rate or rates in effect
and in its condition on the date of such diversion or withdrawal.
(f)(1) Except as provided in paragraph (j) of this section, an instrument of international traffic (other than a con- tainer as defined in Article 1 of the Customs Convention on Containers that is governed by paragraphs (g) (1)– (3) of this section) may be used as fol- lows in point-to-point traffic, provided such traffic is incidental to the effi- cient and economical utilization of the instrument in the course of its use in international traffic:
(i) Picking up and delivering loads at intervening points in the United States while en route between the port of ar- rival and the point of destination of its imported cargo; or
(ii) Picking up and delivering loads at intervening points in the United States while en route from the point of destination of imported cargo to a point where export cargo is to be load- ed or to an exterior port of departure by a reasonably direct route to, or nearer to, the place of such loading or departure.
(2) Neither use as enumerated in paragraph (f)(1)(i) or (ii) of this section constitutes a diversion to unpermitted point-to-point local traffic within the United States or a withdrawal of an in- strument in the United States from its use as an instrument of international traffic under this section.
(g)(1) Except as provided in para- graph (j) of this section, a container (as defined in Article 1 of the Customs Convention on Containers) that is des- ignated as an instrument of inter- national traffic is deemed to remain in international traffic provided that the container exits the U.S. within 365 days of the date on that it was admitted under this section. An exit from the U.S. in this context means a movement across the border of the United States into a foreign country where either:
(i) All merchandise is unladen from the container; or
(ii) Merchandise is laden aboard the container (if the container is empty).
(2) The person who filed the applica- tion for release under paragraph (a)(1) of this section is responsible for keep- ing and maintaining such records, oth- erwise generated and retained in the ordinary course of business, as may be
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necessary to establish the inter- national movements of the containers. Such records shall be made available for inspection by Customs officials upon reasonable notice.
(3) If the container does not exit the U.S. within 365 days of the date on which it is admitted under this section, such container shall be considered to have been removed from international traffic, and entry for consumption must be made within 10 business days after the end of the month in which the container is deemed removed from international traffic. When entry is re- quired under this section, any con- tainers considered removed from inter- national traffic in the same month may be listed on one entry. Such entry may be made at any port of entry. Under 19 U.S.C. 1484(a)(1)(B), the im- porter of record is required, using rea- sonable care, to complete the entry by filing with Customs the declared value, classification and rate of duty applica- ble to the merchandise. The importer of record must use the value of the con- tainer as determined in accordance with section 402, Tariff Act of 1930 (19 U.S.C. 1401a), as amended by the Trade Agreements Act of 1979 (TAA).
(h) For failure promptly to report the diversion or withdrawal or promptly to make the required entry and pay the duties due, the applicant shall be liable for the payment of liquidated damages equal to the domestic value of the in- strument established in accordance with Section 606, Tariff Act of 1930.
(i) When an instrument of inter- national traffic, as provided in para- graph (a) of this section, is returned to the United States and released in ac- cordance with the provisions of that paragraph, any repairs which may have been made to the instrument while it was abroad are not subject to entry or the payment of duty whether the in- strument is of foreign or domestic manufacture, whether it left the United States empty or loaded, and whether or not the repairs made abroad were in contemplation when the instru- ment left the United States.
(j) Containers and other articles des- ignated as instruments of international traffic in accordance with this section are nevertheless subject to the applica- tion of the coastwise laws of the United
States, with particular reference to Section 883, Title 46, United States Code (see § 4.93 of this chapter).
[28 FR 14663, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 10.41a, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 10.41b Clearance of serially num- bered substantial holders or outer containers.
(a) The holders and containers de- scribed in this section may be released without entry or the payment of duty, subject to the provisions of this sec- tion.
(b) Subject to the approval of a port director pursuant to the procedures de- scribed in this paragraph, certain foreign- or U.S.-made shipping devices arriving from Canada or Mexico, in- cluding racks, holders, pallets, totes, boxes and cans, need not be serially numbered or marked if they are always transported on or within either inter- modal and similar containers or con- tainers which are themselves vehicles or vehicle appurtenances and acces- sories such as twenty and forty foot containers of general use and ‘‘igloo’’ air freight containers. The following or similar notation shall appear on the vehicle or vessel manifest in relation to such shipping devices which are ex- empt from serial numbering or mark- ing requirements pursuant to this paragraph: ‘‘The shipping devices transported herein, which are not seri- ally numbered or marked, have been exempted from such requirement pur- suant to an application approved under 19 CFR 10.41b(b).’’ Also, pallets and other solid wood shipping devices must be accompanied by an importer docu- ment, to the extent that this is re- quired by the U.S. Department of Agri- culture, Animal and Plant Health In- spection Service, attesting to the ad- missibility of such devices as regards plant pest risk, as provided for in 7 CFR 319.40–3.
(1) An importer or his agent, regard- less of whether the importer is the owner of the foreign- or U.S.-manufac- tured shipping devices, may apply to a port director of Customs at one of the importer’s chiefly utilized Customs
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ports or the port within which the im- porter’s or agent’s recordkeeping cen- ter is located for permission to have such shipping devices arriving from Canada or Mexico released without entry and payment of duty at the time of arrival and without the devices being serially numbered or marked. Application may be filed in only one port. Although no particular format is specified for the application, it must contain the information enumerated in paragraph (b)(2) of this section. Any duty which may be due on these ship- ping devices shall be tendered and paid cumulatively at the time specified in an approved application, which may be either before or after the arrival of the shipping devices in the U.S. (such as, at the time a contract, purchase order or lease agreement is issued).
(2) The application shall: (i) Describe the types of shipping de-
vices covered, their classification under the Harmonized Tariff Schedule of the U.S. (HTSUS), their countries of origin, and whether and to whom re- quired duty was paid for them or when it will be paid for them, including du- ties for repair and modifications to such shipping devices while outside the U.S.;
(ii) Identify the intended ports where it is anticipated the shipping devices will be arriving and departing the U.S., as well as the particular movements and conveyances in which they are in- tended to be utilized;
(iii) Describe the applicant’s pro- posed program for accounting for and reporting these shipping devices;
(iv) Identify the reporting period (which shall in no event be less fre- quent than annual), as well as the pay- ment period within which applicable duty and fees must be tendered (which shall in no event exceed 90 days fol- lowing the close of the related report- ing period);
(v) Describe the type of inventory control and recordkeeping, including the specific records, to be maintained to support the reports of the shipping devices; and
(vi) Provide the location in the United States, including the name and address, where the records supporting the reports will be retained by law and will be made available for inspection
and audit upon reasonable notice. (The records supporting the reports of the shipping devices must be kept for a pe- riod of at least 3 years from the date such reports are filed with the port di- rector.)
(3) The application shall be filed along with a continuous bond con- taining the conditions set forth in § 113.66(c) of this chapter. If the applica- tion is approved by the port director and the conditions set forth in the ap- plication or of the bond are violated, the port director may issue a claim for liquidated damages equal to the domes- tic value of the container. If the do- mestic value exceeds the amount of the bond, the claim for liquidated damages will be equal to the amount of the bond.
(4) The port director receiving the ap- plication shall evaluate the program proposed to account for, report and maintain records of the shipping de- vices. The port director may suggest amendments to the applicant’s pro- posal. The port director shall notify the applicant in writing of his decision on the application within 90 days of its receipt, unless this period is extended for good cause and the applicant is so informed in writing. Approval of the application by the port director with whom it is filed shall be binding on all Customs ports nationwide.
(5) If the decision is to deny the ap- plication, in whole or in part, the port director shall specify the reason for the denial in a written reply, and inform the applicant that such denial may be appealed to the Assistant Commis- sioner, Office of Field Operations, Cus- toms Headquarters, within 21 days of its date. The Assistant Commissioner’s decision shall be issued, in writing, within 30 days of the receipt of the ap- peal, and shall constitute the final Cus- toms determination concerning the ap- plication.
(6) If the application is approved, an importer may later apply to amend his application to add or delete particular types of shipping devices listed in the application in which the procedures set forth in the application may be uti- lized. If a requested amendment to an approved application should be denied, or if an approved application should be revoked, in whole or in part, by the
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port director, the procedures described in paragraph (b)(5) of this section shall apply.
(7) Application for and approval of a reporting program shall not limit or restrict the use of other alternative means for obtaining the release of holders, containers and shipping de- vices.
(c) In the case of serially numbered holders or containers of United States manufacture for which free clearance under subheading 9801.00.10, Har- monized Tariff Schedule of the United States, is claimed, the owner shall place thereon the following markings:
(1) 9801.00.10, unless the holder or con- tainer has permanently attached there- to the manufacturer’s metal tag or plate showing, among other things, the name and address of the manufacturer who is located in the United States.
(2) The name of the owner, either po- sitioned as indicated in the example below, or elsewhere conspicuously shown on the holder or container.
(3) The serial number assigned by the owner, which shall be one of consecu- tive numbers and not to be duplicated. For example: 9801.00.10 * * * Zenda * * * 2468.
(d)(1) In the case of serially num- bered holders or containers of foreign manufacture, other than those pro- vided for in paragraph (d)(2) of this sec- tion, for which free clearance under the second provision in subheading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, the owner shall place thereon the following markings:
(i) 9803.00.50. (ii) The district and port code num-
bers of the port of entry, the entry number, and the last two digits of the fiscal year of entry covering the impor- tation of the holders and containers on which duty was paid.
(iii) The name of the owner, either positioned as indicated in the example below, or elsewhere conspicuously shown on the holder or container.
(iv) The serial number assigned by the owner, which shall be one of con- secutive numbers and not to be dupli- cated. For example: 9803.00.50 * * * 10– 1–366–63 * * * Zenda * * * 2468.
(2) In the case of substantial holders or containers of either U.S. or foreign manufacture, specially designed and
equipped to facilitate the carriage of goods by one or more modes of trans- port without intermediate reloading, each having a gross mass rating of at least 18,120 kilograms, for which duty- free entry is requested under either the first or the second proviso in sub- heading 9803.00.50, HTSUS (19 U.S.C. 1202), is claimed, only the following clear, conspicuous and durable mark- ings are required to be on the con- tainer:
(i) The identity of the owner or oper- ator of the container.
(ii) The serial number assigned by the owner or operator of the container, which shall be one of consecutive num- bers and shall not be duplicated.
(e) The prescribed markings shall be clear and conspicuous, that is, they shall appear on an exposed side of the holder or container in letters and fig- ures of such size as to be readily dis- cernible. The markings will be stricken out or removed when the holders or containers are taken out of service or when ownership is transferred, except that appropriate changes may be made if a new owner wishes to use the hold- ers and containers under this proce- dure.
(f) The owner shall keep adequate records open to inspection by Customs officers, which shall show the current status of the serially numbered holders and containers in service and the dis- position made of such holders and con- tainers taken out of service.
(g) Nothing in this procedure shall be deemed to affect:
(1) The requirements for outward or inward manifesting of such holders or containers. The manifests will show for each holder or container its markings as provided for herein.
(2) The requirements of the Depart- ment of Commerce on exportation with respect to the filing of ‘‘Shipper’s Ex- port Declaration,’’ Form 7525–V.
(3) The treatment of articles covered herein under the coastwise laws of the United States, with particular ref- erence to section 883, Title 46, United States Code.
(h) If the holder or container and its contents are to move in bond or under cover of a TIR carnet (see part 114 of this chapter) from the port of arrival intact, the holder or container shall
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appear on the inward foreign manifest so as to be related to the cargo con- tained therein and will be released under this procedure at a subsequent port. If the holder or container is to move in bond or under cover of a TIR carnet from the port of arrival not in- tact with its contents, the holder or container may appear on the inward foreign manifest separate from and not related to the cargo contained therein and will be released under this proce- dure at the port of arrival before it moves forward and will not appear on the in-bond document.
(i) A continuous bond containing the conditions set forth in § 113.66 of this chapter shall be filed with the port di- rector. If the conditions are violated the port director shall issue a claim for liquidated damages equal to the domes- tic value of the holder or container es- tablished in accordance with section 606, Tariff Act of 1930, as amended (19 U.S.C. 1606). If the domestic value ex- ceeds the amount of the bond the claim for liquidated damages will be equal to the amount of the bond.
[T.D. 56542, 30 FR 15143, Dec. 8, 1965, as amended by T.D. 71–70, 36 FR 4485, Mar. 6, 1971; T.D. 84–213, 49 FR 41165, Oct. 19, 1984; T.D. 86–13, 51 FR 4164, Feb. 3, 1986; T.D. 89–1, 53 FR 51249, Dec. 21, 1988; T.D. 96–20, 61 FR 7989, Mar. 1, 1996; T.D. 97–82, 62 FR 51769, Oct. 3, 1997; T.D. 99–64, 64 FR 43265, Aug. 10, 1999]
ARTICLES FOR INSTITUTIONS
§ 10.43 Duty-free status. (a) The port director may, at his dis-
cretion, require appropriate proof of duty-free status for articles for institu- tions claimed to be exempt from duty under subheadings 9810.00.05, 9810.00.15, 9810.00.25, 9810.00.30, 9810.00.40, 9810.00.45, 9810.00.50, 9810.00.55, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
(b) Appropriate proof may be a copy of the charter or other evidence of the character of the institution for the use of which the articles are imported.
[T.D. 85–123, 50 FR 29953, July 23, 1985, as amended by T.D. 89–1, 53 FR 51249, Dec. 21, 1988]
§ 10.46 Articles for the United States. Pursuant to subheadings 9808.00.10
and 9808.00.20, books, engravings, and
other articles therein enumerated, which are imported by authority or for the use of the United States or for the use of the Library of Congress, shall be admitted free of duty upon the written request of the head of the bureau or ex- ecutive department concerned.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 67–108, 32 FR 6392, Apr. 25, 1967; T.D. 89– 1, 53 FR 51249, Dec. 21, 1988; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.47 [Reserved]
WORKS OF ART
§ 10.48 Engravings, sculptures, etc. (a) Invoices covering works of art
claimed to be free of duty under sub- headings 9702.00.00 and 9703.00.00, HTSUS, shall show whether they are originals, replicas, reproductions, or copies, and also the name of the artist who produced them, unless upon exam- ination the Customs officer is satisfied that such statement is not necessary to a proper determination of the facts.
(b) The following evidence shall be filed in connection with the entry: A declaration in the following form by the artist who produced the article, or by the seller, shipper or importer, showing whether it is original, or in the case of sculpture, the original work or model, or one of the first twelve castings, replicas, or reproductions made from the original work or model; and in the case of etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes, that they were printed by hand from hand- etched, hand-drawn, or hand-engraved plates, stones, or blocks:
I, llll, do hereby declare that I am the producer, seller, shipper or importer of cer- tain works of art, namely llll covered by the annexed invoice dated llll; that any sculptures or statuary included in that in- voice are the original works or models or one of the first twelve castings, replicas, or re- productions made from the sculptor’s origi- nal work or model; and that any etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes in- cluded in that invoice were printed by hand from hand-etched, hand-drawn, or hand-en- graved plates, stones, or blocks.
(c) The port director may waive the declaration requirement set forth in paragraph (b) of this section.
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U.S. Customs and Border Protection, DHS; Treasury § 10.53
(d) Artists’ proof etchings, engravings, woodcuts, lithographs, or prints made by other hand-transfer processes should bear the genuine sig- nature or mark of the artist as evi- dence of their authenticity. In the ab- sence of such a signature or mark, other evidence shall be required which will establish the authenticity of the work to the satisfaction of the port di- rector.
[T.D. 94–3, 58 FR 68742, Dec. 29, 1993]
§ 10.49 Articles for exhibition; require- ments on entry.
(a) There shall be filed in connection with the entry of works of art and other articles claimed to be free of duty under Chapter 98, Subchapter XII, Harmonized Tariff Schedule of the United States (HTSUS), a declaration by a qualified officer of the institution in sufficient detail to demonstrate en- titlement to entry as claimed, and a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. Claim for free entry under Chapter 98, Subchapter XII may be made for articles of the character described therein which have been pre- viously entered under any other provi- sion of law and the entry amended ac- cordingly upon compliance with the re- quirements of this section, provided the articles have not been released from Customs custody.
(b) The port director may require a copy of the charter or other evidence of the character of the institution for which the articles are imported, and may also require the production of the original of any order given by such so- ciety or institution to any importing agent or dealer for such articles. The society or institution shall file, within 6 months after the date of filing the entry, any document or proof de- manded by the port director in connec- tion with the entry.
(c) Articles entered under subheading 9812.00.20, HTSUS, may be transferred from one institution to another upon an application in writing in the case of each transfer describing the articles and stating the name of the institution to which transfer is to be made, pro- vided the sureties to the bond assent in writing under seal or a new bond is
filed. No entry or withdrawal shall be required for such a transfer.
(d) If any of the articles accorded free entry under Chapter 98, Subchapter XII shall be sold, offered or exposed for sale, transferred, or used in any man- ner contrary to the provisions of the regulations in this part, within 5 years after the date of entry under such part, the amount of the duties shall be col- lected immediately by the director of the port of entry and deposited as du- ties. If the articles are exported or de- stroyed under Customs supervision within such 5-year period, the liability under the bond shall be treated as ter- minated.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 89– 1, 53 FR 51249, Dec. 21, 1988; T.D. 92–85, 57 FR 40605, Sept. 4, 1992]
§ 10.50 [Reserved]
§ 10.52 Painted, colored or stained glass windows for religious institu- tions.
When painted, colored, or stained glass windows or parts thereof, are claimed free of duty under subheading 9810.00.10, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), the port director may, at his discre- tion, require appropriate proof that the importation was designed by, and pro- duced by or under the direction of, a professional artist, and that it is for the use of an institution established solely for religious purposes.
[T.D. 85–123, 50 FR 29953, July 23, 1985, as amended by T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
§ 10.53 Antiques.
(a) Articles accompanying a pas- senger and entitled to entry under the passenger’s declaration and entry, or articles entered under an informal entry which are claimed to be free of duty under subheading 9706.00.00, Har- monized Tariff Schedule of the United States (HTSUS), may be admitted free of duty upon the execution of a dec- laration on the face of the entry pro- vided that the passenger or person fil- ing the informal entry is the owner of the articles and that they are for his personal use and not for sale or other
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commercial use and provided the Cus- toms officer concerned is satisfied that the articles are of the requisite age.
(b) Antiques of the age prescribed by subheading 9706.00.00, HTSUS, or ad- mitted under the provisions of para- graph (e) of this section, shall be ad- mitted free of duty though repaired or renovated. If, however, an antique has been repaired with a substantial amount of additional material, without changing the original form or shape, the original and added portions shall be appraised and reported as separate en- tities and the basis for such report shall be plainly indicated on the in- voice by the appraiser. In such cases duty shall be assessed on the portion added. If the repairs consist of an addi- tion to an article of a feature which changes it substantially from the arti- cle originally produced, or if the an- tique portion has otherwise been so changed as to lose its identity as the article which was in existence prior to the time prescribed in subheading 9706.00.00, HTSUS, the entire article shall be excluded from free entry under subheading 9706.00.00, HTSUS.
(c) Except for furniture admitted under the provisions of paragraph (e) of this section, furniture claimed to be free of duty under subheading 9706.00.00, Harmonized Tariff Schedule of the United States (HTSUS) may be entered for consumption at any port of entry within the customs territory of the United States. Furniture as used in this section of the regulations is de- fined as ‘movable articles of conven- ience or decoration for use in fur- nishing a house, apartment, place of business or accommodation’. This defi- nition embraces most articles claimed to be free of duty as antiques.
(d) A claim for the free entry of an article under subheading 9706.00.00, HTSUS on the basis of antiquity may be made on the entry, or filed after entry at any time prior to liquidation of the entry, provided the article has not been released from Customs cus- tody or it has been found upon exam- ination before such release to be de- scribed in subheading 9706.00.00, HTSUS.
(e) Antique articles otherwise prohib- ited entry by the Endangered Species
Act of 1973 (16 U.S.C. 1521, et seq.) may be entered if:
(1) The article is composed in whole or in part of any endangered or threat- ened species listed in 50 CFR 17.11 or 17.12,
(2) The article is not less than 100 years of age,
(3) The article has not been repaired or modified with any part of any such endangered or threatened species, on or after December 28, 1973,
(4) The article is entered at a port designated in § 12.26 of this chapter,
(5) A Declaration for Importation or Exportation of Fish or Wildlife (USFWS Form 3–177) is filed at the time of entry with the port director who will forward the form to the U.S. Fish and Wildlife Service, and
(6) The importer meets the require- ments of paragraph (a) of this section.
(f) The additional duty imposed by additional U.S. Note 2, Chapter 97, HTSUS, shall apply to any article which is imported for sale and claimed, either at the time of entry or at a later date, to be free of duty under sub- heading 9706.00.00, HTSUS, if such arti- cle is later found to be unauthentic in respect of the antiquity claimed as a basis for such free entry, unless the claim under subheading 9706.00.00, HTSUS, is withdrawn in writing before the examination of the article for the purpose of appraisement or classifica- tion has begun.
(g) The additional duty provided for in additional U.S. Note 2, Chapter 97, HTSUS shall not be assessed if the im- porter established by evidence satisfac- tory to the port director that the arti- cle was not imported for sale. In the case of any article imported in a pas- senger’s baggage or entered under an informal entry, the Customs officer concerned may accept the statement of the owner that the article was not im- ported for sale if he is satisfied of the truth of such statement.
[28 FR 14663, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 10.53, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
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U.S. Customs and Border Protection, DHS; Treasury § 10.58
§ 10.54 Gobelin and other hand-woven tapestries.
Pursuant to subheading 5805.00.10, Harmonized Tariff Schedule of the United States, Gobelin tapestries pro- duced in the Manufacture Nationale des Gobelins factories at Paris and Beauvais under the direction and con- trol of the French Government, and other hand-woven tapestries, shall be accorded free entry if of a kind fit only for use as wall hangings, and valued over $215 per square meter.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87–75, 52 FR 20066, May 29, 1987; T.D. 89– 1, 53 FR 51250, Dec. 21, 1988]
VEGETABLE OILS
§ 10.56 Vegetable oils, denaturing; re- lease.
(a) Olive, palm-kernel, rapeseed, sun- flower, and sesame oil shall be classifi- able under subheadings 1509.10.20, 1509.10.40, 1509.90.20, 1509.90.40, 1510.00.20, 1512.19.20, 1513.29.00, 1514.90.10, 1514.90.50, 1515.50.00, Harmonized Tariff Schedule of the United States, if denatured abroad or under Customs supervision after importation but before release from Customs custody, at the request and expense of the importer, by a for- mula prescribed by Headquarters, U.S. Customs Service, or if by their method of production abroad they are rendered unfit for use as food or for any but me- chanical or manufacturing purposes.
(b) Each cask or package of oil claimed to have been before importa- tion denatured or otherwise rendered unfit for use as food or for any but me- chanical or manufacturing purposes shall be sampled and tested by an ap- praising officer.
(c) Formulas prescribed by Head- quarters, U.S. Customs Service, except proprietary mixtures, will be cir- culated to all Customs officers and will appear as abstracts of United States Customs Service decisions published in the weekly Customs Bulletins. Propri- etary mixtures approved by the Com- missioner of Customs will not be pub- lished but appropriate notice of their approval will be given to all Customs officers.
(d) The Headquarters, U.S. Customs Service, will from time to time pre- scribe additional formulas, and will
consider any formula for special dena- turing that may be submitted.
(e) The port director may, if he deems it advisable, require an importer requesting permission to use any au- thorized denaturant to submit to the appraiser an adequate sample of such denaturant, in order that the appraiser may report to the port director wheth- er or not such denaturant is suitable for rendering the oil unfit for use as food or for any but mechanical or man- ufacturing purposes.
(f) No such oil shall be released free of duty until the appraiser shall have made a special report that it has been properly denatured.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 66–182, 31 FR 11416, Aug. 30, 1966; T.D. 87– 75, 52 FR 20066, May 29, 1987; T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
POTATOES, CORN, OR MAIZE
§ 10.57 Certified seed potatoes, and seed corn or maize.
Claim for classification as seed pota- toes under subheading 0701.10.00, as seed corn (maize) under subheading 1005.10., HTSUS, shall be made at the time of entry. Such classification shall be allowed only if the articles are white or Irish potatoes, or maize or corn, imported in containers and if, at the time of importation, there is firmly affixed to each container an official tag supplied by the government of the country in which the contents were grown, or an agency of such govern- ment. The tag shall bear a certificate to the effect that the specified contents of the container were grown, and have been approved, especially for use as seed. The tag shall also bear a number or other symbol identifying the pota- toes or corn in the container with an inspection record of the foreign govern- ment or its agency on the basis of which the certificate was issued.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
BOLTING CLOTHS
§ 10.58 Bolting cloths; marking. (a) As a prerequisite to the free entry
of bolting cloth for milling purposes under subheading 5911.20.20, Har- monized Tariff Schedule of the United
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19 CFR Ch. I (4–1–12 Edition)§ 10.59
States, the cloth shall be indelibly marked from selvage to selvage at in- tervals of not more then 10.16 centi- meters with ‘‘bolting cloth expressly for milling purposes’’ in block letters 7.62 centimeters in height. Bolting cloths composed of silk imported ex- pressly for milling purposes shall be considered only such cloths as are suit- able for and are used in the act or proc- ess of grading, screening, bolting, sepa- rating, classifying, or sifting dry mate- rials, or dry materials mixed with water, if the water is merely a carrying medium.
(b) Bolting cloths not marked in the manner above indicated at the time of importation may be so marked by the importers in public stores under the su- pervision of customs officers.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87–75, 52 FR 20066, May 29, 1987; T.D. 89– 1, 53 FR 51250, Dec. 21, 1988]
WITHDRAWAL OF SUPPLIES AND EQUIPMENT FOR VESSELS
§ 10.59 Exemption from customs duties and internal-revenue tax.
(a) A vessel shall not be considered to be actually engaged in the foreign trade, or in trade between the Atlantic and Pacific ports of the United States, or between the United States and its possessions, or between Hawaii and any other part of the United States or be- tween Alaska and any other part of the United States, as the case may be, for the purpose of withdrawing supplies free of duty and internal-revenue tax pursuant to section 309(a), Tariff Act of 1930, as amended, unless it is—
(1) Operating on a regular schedule in a class of trade which entitles it to the privilege;
(2) Actually transporting passengers or merchandise to or from a foreign port, a port on the opposite coast of the United States, or between a port in a possession of the United States and a port in the United States or in another of its possessions, or between Hawaii and any other part of the United States or between Alaska and any other part of the United States;
(3) Departing in ballast (without cargo or passengers) from one port for another, domestic or foreign, for the purpose of lading passengers or cargo
at the port of destination for carriage in a class of trade specified in section 309(a), Tariff Act of 1930, as amended, for which class of trade the vessel is suitable and substantially ready for service with necessary fittings, outfit, and equipment already installed on its departure in ballast, and from which it is not diverted prior to carriage of pas- sengers or cargo in such trade. A writ- ten declaration of the owner or agent of the vessel may be required in con- nection with the withdrawal, certifying to the vessel’s suitableness and sub- stantial readiness with necessary fit- tings, outfit, and equipment already in- stalled on its departure in ballast for service in a class of trade specified in section 309 and agreeing to notify the port director if it is laid up or diverted from such class of trade prior to the carriage of cargo or passengers in such trade.
(b) A withdrawal of articles may not be made under section 309, Tariff Act of 1930, as amended, for use on a trial or test trip of a vessel preparatory to its actually engaging in trades.
(c) The classes of articles which may be withdrawn as provided for by sec- tion 309, Tariff Act of 1930, as amended, include the containers in which the ar- ticles are withdrawn and laden even though for tariff purposes the con- tainers are classifiable separately from their contents, except unusual con- tainers within the purview of General Rule of Interpretation 5, Harmonized Tariff Schedule of the United States (HTSUS).
(d) For the purpose of allowing the privileges of section 309, Tariff Act of 1930, as amended, to aircraft as pro- vided for therein, an aircraft shall be deemed to be a vessel within the mean- ing of each provision of this section and of §§ 10.60 through 10.64 which may be applied to aircraft.
(e) A documented vessel with a fish- eries license endorsement and foreign fishing vessels of 5 net tons or over may be allowed to withdraw distilled spirits (including alcohol), wines, and beer conditionally free under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309), if the port director is sat- isfied from the quantity requested, in the light of (1) whether the vessel is employed in substantially continuous
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fishing activities, and (2) the vessel’s complement, that none of the with- drawn articles is intended to be re- moved from the vessel in, or otherwise returned to, the United States without the payment of duty or tax. Such with- drawal shall be permitted only after the approval by the port director of a special written application, in trip- licate, on Customs Form 5125, of the withdrawer, supported by a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter executed by the withdrawer. Such application shall be filed with Customs Form 7501 or 7512, as the case may be. The original and the triplicate copy of the application, after approval, shall be stamped with the withdrawal number and date thereof and shall be returned to the withdrawer for use as prescribed below. Approval of each such application shall be subject to the condition that the original and the triplicate copy shall be presented thereafter by the withdrawer or the vessel’s master to the port director within 24 hours (excluding Saturday, Sunday, and holidays) after each subse- quent arrival of the vessel at a Cus- toms port or station and that an ac- counting shall be made at the time of such presentation of the disposition of the articles until the port director is satisfied that all of them have been consumed on board, or landed under Custom’s supervision, and takes up the original application. (The withdrawer shall retain the triplicate copy as evi- dence of consumption on board or land- ing under Customs supervision.) The approval shall be subject to the further conditions that any such withdrawn ar- ticle remaining on board while the ves- sel is in port shall be safeguarded in the manner and to such extent as the district director for the port or place of arrival shall deem necessary and that failure to comply with the conditions upon which a conditionally free with- drawal is approved shall subject the total quantity of withdrawn articles to the assessment and collection of an amount equal to the duties and taxes that would have been assessed on the entire quantity of supplies withdrawn had such supplies been regularly en- tered, or withdrawn, for consumption.
Exemption from internal-revenue tax on distilled spirits, alcohol, wines, and beer removed from any internal-rev- enue bonded warehouse, industrial al- cohol premises, bonded wine cellar, or brewery; and drawback on taxpaid dis- tilled spirits or wines removed from an export storage room, or on taxpaid beer removed from a brewery (or place of storage elsewhere), for use as supplies on vessels under section 309, Tariff Act of 1930, as amended, are governed by regulations of the Internal Revenue Service.
(f) Pursuant to section 309(d) of the Tariff Act of 1930, as amended, the De- partment of Commerce has found and advised the Secretary of the Treasury of the foreign countries which allow privileges to aircraft registered in the United States substantially reciprocal to those described in sections 309 and 317 of the Tariff Act of 1930, as amend- ed. Advices also have been received of changes and limitations of privileges allowed. In accordance with these ad- vices, Treasury decisions are issued ex- tending to the aircraft of foreign coun- tries free withdrawal privileges recip- rocal to those found by the Secretary of Commerce to be extended by those countries to aircraft registered in the United States or making changes in such privileges on the basis of new findings. Listed below by countries are the Treasury decisions issued pursuant to such findings which are currently in effect:
Country TreasuryDecision(s) Exceptions if any, as
noted—
Abu Dhabi ............ 95–45 Argentina ............. 54925 (1)
92–20 Applicable only as to air-
craft equipment, spare parts, and supplies.
Australia ............... 54747 (1) Not applicable to ground equipment.
Austria .................. 80–68 Bahamas .............. 52798 (3) Bahrain ................ 95–45 Belgium ................ 52846 (2) Benin .................... 71–215,93- Bermuda .............. 49944 (4) Brazil .................... 53281 (2) Canada ................ 69–149
69–245 Not applicable to ground
equipment during period May 1 to September 16, 1969, inclusive.
Chile ..................... 66–128 (2) China* .................. 82–91 Colombia .............. 70–107 (1) Costa Rica ........... 53658 (1) Cuba .................... 81–198 Applicable only as to air-
craft supplies. Czechoslovakia .... 70–107 (1)
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Country TreasuryDecision(s) Exceptions if any, as
noted—
Denmark .............. 51966 (3) Dominican Repub-
lic. 54522 (1)
Ecuador ............... 52510 (4) Egypt .................... 74–3
85–141 El Salvador .......... 54675 (1) Finland ................. 69–120 (2) France .................. 67–96 (1) Not applicable to tobacco
products under section 317 of the tariff act. Not applicable to ground equipment.
Federal Republic of Germany.
69–150 Not applicable to ground equipment.
Greece ................. 54847 (1) Guyana ................ 78–28 Honduras ............. 71–154 Iceland ................. 67–265 (1) India ..................... 55155 (1) Indonesia ............. 90–61 Applicable only as to avia-
tion fuels and lubricants. Iran ....................... 75–254 Ireland .................. 55291 (1) Israel .................... 52831 (3) Italy ...................... 69–223 Not applicable to ground
equipment. Ivory Coast .......... 71–215 Jamaica ............... 70–250 Japan ................... 53550 (1),
88–45 Not applicable to ground
support equipment as of August 1, 1986
Jordan .................. 74–102 Kenya ................... 71–102 Applicable only as to air-
craft fuels and lubricants. Lebanon ............... 53902 (1) Luxembourg ......... 89–77 Applicable only as to avia-
tion fuels. Mexico ................. 54506 (5) Morocco ............... 75–254 Netherlands ......... 52494 (2) Netherlands Antil-
les. 71–211
New Zealand ....... 73–52 Not applicable to ground equipment.
Nicaragua ............ 54640 (1) Norway ................. 51966 (3) Oman ................... 95–45 Pakistan ............... 55416 (1) Panama ............... 55453 (1) Peru ..................... 52911 (2) Poland .................. 72–153 Portugal ............... 68–107 (1) Not applicable to ground
equipment. Qatar .................... 95–45 Republic of Korea 71–140 Republic of the
Philippines. 71–197
Romania .............. 75–35 Saudi Arabia ........ 73–307,
92–68 Senegal ................ 71–215 Singapore ............ 93–25 South Africa ......... 69–162 Not applicable to ground
equipment. Spain .................... 54522 (2) Sweden ................ 51966 (3) Switzerland .......... 56047 Taiwan ................. 70–107 (1),
82–91 Not applicable to ground
equipment. Tanzania .............. 71–102 Applicable only as to air-
craft fuels and lubricants. Thailand ............... 71–138,
89–6
Country TreasuryDecision(s) Exceptions if any, as
noted—
Trinidad and To- bago.
56441 (1)
Turkey .................. 89–7 Uganda ................ 71–102 Applicable only as to air-
craft fuels and lubricants. Union of Soviet
Socialist Repub- lics.
67–123 (1)
United Kingdom ... 69–176 Not applicable to ground equipment.
Venezuela ............ 55425 (1) Yugoslavia ........... 71–138 Zambia ................. 89–5
*See also Taiwan
[28 FR 14663, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 10.59, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 10.60 Forms of withdrawals; bond. (a) Withdrawals from warehouse shall
be made on Customs Form 7501. Each withdrawal shall contain the state- ment prescribed for withdrawals in § 144.32 of this chapter and all of the statistical information as provided in § 141.61(e) of this chapter. Withdrawals from continuous Customs custody else- where than in a bonded warehouse shall be made on Customs Form 7512, except as provided for by paragraph (h) of this section. When a withdrawal of supplies or other articles is made which may be used on a vessel while it is proceeding in ballast to another port as provided for by § 10.59(a)(3), a nota- tion of this fact shall be made on the withdrawal and the name of the other port given if known.
(b) If the withdrawal is made by other than the principal on the ware- house or rewarehouse entry, as the case may be, the assent of such prin- cipal shall be endorsed on the with- drawal, unless the principal has other- wise authorized such withdrawal in writing.
(c) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter shall be taken when the withdrawal from warehouse is made by a person other than the principal on the warehouse or reware- house entry, as provided for in para- graph (b) of this section.
(d) Except as otherwise provided in § 10.62b, relating to withdrawals from
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U.S. Customs and Border Protection, DHS; Treasury § 10.62
warehouse of aircraft turbine fuel to be used within 30 days of such withdrawal as supplies on aircraft under § 309, Tar- iff Act of 1930, as amended, when the supplies are to be laden at a port other than the port of withdrawal from ware- house, they shall be withdrawn for transportation in bond to the port of lading. Three copies of the manifest on Customs Form 7512, in addition to six copies of the withdrawal on Customs Form 7501, shall be required. The proce- dure shall be the same as that pre- scribed in § 144.37 of this chapter (the six copies of Customs Form 7501 taking the place of the entry copies of Cus- toms Form 7512).
(e) No bond shall be required in the case of war vessels.
(f) Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are withdrawn from continuous Customs custody else- where than in a bonded warehouse for lading at the port of withdrawal, the procedure provided for in § 18.25 of this chapter shall be followed, except that the bond required shall be on Customs Form 301, containing the bond condi- tions set forth in § 113.62 of this chap- ter. Unless transfer is permitted under the provisions of paragraph (h) of this section, when articles are withdrawn from continuous Customs custody else- where than in a bonded warehouse for lading at another port, the procedure set forth in § 18.26 of this chapter shall be followed, except that the withdrawal when filed shall be supported by a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. There shall be such exam- ination of the articles as may be nec- essary to satisfy the port director that they are subject to the privileges of section 309, Tariff Act of 1930, as amended, and that the value and quan- tity declared for them are correct.
(g) A withdrawal under § 10.59(e) shall be supported by a bond on Customs Form 301, containing the bond condi- tions set forth in § 113.62 of this chap- ter.
(h) If a request is made for permis- sion to transfer supplies or stores from one vessel to another which would be entitled to withdraw them free of duty and tax under section 309 or 317, Tariff Act of 1930, as amended, the port direc-
tor in his discretion may permit the ar- ticles to be so transferred under Cus- toms supervision under a permit on Customs Form 3171 in lieu of a formal withdrawal under the pertinent stat- ute. In such a case, the pertinent stat- ute shall be indicated by an endorse- ment made on the permit by the port director.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17445, July 2, 1973; T.D. 73– 312, 38 FR 30882, Nov. 8, 1973; T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 95–81, 60 FR 52295, Oct. 6, 1995; T.D. 96–18, 61 FR 6777, Feb. 22, 1996]
§ 10.61 Withdrawal permit.
Upon the filing of the withdrawal and the execution of the bond, when re- quired, the port director shall issue a permit on Customs Form 7501 or 7512.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 95–81, 60 FR 52295, Oct. 6, 1995]
§ 10.62 Bunker fuel oil.
(a) Withdrawal under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309). Except as otherwise provided in § 10.62b, relating to withdrawals from warehouse of aircraft turbine fuel to be used within 30 days of such withdrawal as supplies on aircraft under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309), when all the bunker fuel oil in a Customs bonded tank is in- tended only for lading duty free as sup- plies on vessels under section 309 at the port where the tank is located, delivery of the oil, by Customs bonded carrier, cartman, or lighterman (including bonded pipelines), under withdrawals on Customs Form 7501, either single or blanket, may be made without the presence of a Customs officer. When a blanket withdrawal is filed and a par- tial release takes place, the partial re- lease procedure set forth in § 19.6(d) of this chapter shall be followed for each partial release. However, each abstract copy of Customs Form 7501 shall in- clude the following additional informa- tion:
(1) Type of oil withdrawn. (2) Number or other identification of
sales order therefor. (3) Name of bonded carrier, date it re-
ceived oil.
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19 CFR Ch. I (4–1–12 Edition)§ 10.62
(4) Receipt signed by master or other person in charge of delivering convey- ance identified by number, or name, and if Customs bonded lighterman or cartman, by the carrier’s license num- ber.
(5) Name and location of vessel ob- taining oil.
(6) Quantity and identification of each type of oil received with date, and signature and title of receiving officer. If all the oil is laden on the receiving vessel at the port of withdrawal via pipeline from the bonded storage tank, paragraphs (a) (3) and (4) of this section shall be deemed to be inapplicable.
(b) If a blanket free withdrawal of bunker fuel oil is filed, to comply with Bureau of the Census requirements the withdrawal on Customs Form 7501 shall be endorsed ‘‘Estimated Withdrawals’’ and limited to the aggregate quantity and value of fuel oil which it is esti- mated will be physically removed from Customs bond during the calendar month in which the withdrawal is filed for lading on vessels entitled to duty- free vessel supplies under section 309 of the Tariff Act of 1930, as amended.
(c)(1) As an incident of the delivery of fuel oils classifiable at different rates of duty to a vessel or vessels under sec- tion 309 of the tariff act, the port direc- tor may, when necessary to enable a supplier to meet fuel specifications, permit the blending of the oils in the delivering conveyance or in other suit- able facilities after withdrawal from the bonded tanks, upon the condition that, to the extent of the amount of oil withdrawn classifiable at the higher rate, duty at the higher rate will be paid on any portion of the blended fuel oil not delivered within a reasonable time to a qualified vessel. The with- drawer shall be required to file a with- drawal for consumption for the excess quantity withdrawn. For example, if the quantity withdrawn consists of 1,500 barrels of bunker C fuel oil classi- fiable at the rate of one-eighth cent per gallon and 500 barrels of diesel oil clas- sifiable at the rate of one-fourth cent per gallon but only 1,400 barrels of the blended oil are actually laden as fuel supplies on qualified vessels, with- drawals for consumption are required for 500 barrels of diesel oil at the high-
er rate and for 100 barrels of bunker C fuel oil at the lower rate.
(2) Delivering transferer receipt. The re- ceipt of the delivering carrier on a copy of Customs Form 7501 for fuel oil which has been blended under paragraph (c)(1) of this section with components classi- fiable at different rates of duty shall show, for each warehouse entry number and withdrawal number involved, the types and quantity of oil received.
(d) Fuel oil withdrawn as vessel sup- plies at one port may be laden at an- other port on a vessel or vessels enti- tled to the free withdrawal privileges of section 309 of the tariff act, under procedures prescribed in this section, provided the movement to the receiv- ing vessel or vessels is under the bond of a qualified carrier as described in § 18.1(a) of this chapter. In such cases, the provisions of § 10.60(d) of this chap- ter shall be deemed inapplicable.
(e) If a vessel not entitled to duty- free withdrawal of supplies from Cus- toms bonded warehouses under section 309 of the Tariff Act of 1930, as amend- ed, should be supplied with fuel oil from a Customs bonded tank described in paragraph (a) of this section because of an emergency, a duty paid with- drawal therefor shall be filed on the first day that the customhouse is open for the general transaction of business after the day on which the oil is laden on the using vessel. If there should be willful or repeated instances of late fil- ing of a duty-paid withdrawal in such cases, the port director shall require a duty-paid withdrawal to be filed prior to the removal of fuel oil from the bonded tank.
(f) When the procedures prescribed in this section are followed, representa- tives of the port director will from time to time verify various with- drawals against all pertinent records, including financial records, of the withdrawers, deliverers, and receivers of the oil. The withdrawer shall main- tain all pertinent records relating to the withdrawal, delivery, or receipt of the fuel oil for 5 years from the date of
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U.S. Customs and Border Protection, DHS; Treasury § 10.62b
liquidation of the related fuel oil entry.
[T.D. 69–99, 34 FR 6520, Apr. 16, 1969, as amended by T.D. 79–159, 44 FR 31967, June 4, 1979; T.D. 82–204, 47 FR 49367, Nov. 1, 1982; T.D. 95–81, 60 FR 52295, Oct. 6, 1995; T.D. 96– 18, 61 FR 6777, Feb. 22, 1996; T.D. 96–51, 61 FR 31395, June 20, 1996; T.D. 99–33, 64 FR 16347, Apr. 5, 1999]
§ 10.62a Blanket withdrawals for cer- tain merchandise.
(a) Generally. Under this section, a blanket withdrawal on Customs Form 7501 may be filed for all or part of any merchandise withdrawn from ware- house except fuel oil covered under § 10.62, for use on qualified vessels. Such a withdrawal shall be made only for lading on board vessels at the port where the warehouse is located. The procedure for the blanket withdrawal and partial releases after the initial re- lease are the same as those provided in § 19.6(d) of this chapter, except as noted in paragraph (b).
(b) Partial release. A partial release on Customs Form 7501, in duplicate, or in triplicate if an extra copy is required by the port director, shall be presented to the warehouse proprietor and placed in the proprietor’s permit file folder under the partial release procedure set forth in § 19.6(d) of this chapter, as mer- chandise is needed for delivery to a using vessel. The original of the partial release document shall accompany the merchandise for delivery to the Cus- toms officer who will supervise lading, or if a Customs officer does not phys- ically supervise lading, to the master of the vessel. The original shall be re- turned to the proprietor for record pur- poses after the Customs officer or mas- ter of the vessel, as appropriate, has certified lading of the goods described in the document.
[T.D. 82–204, 47 FR 49367, Nov. 1, 1982, as amended by T.D. 95–81, 60 FR 52295, Oct. 6, 1995]
§ 10.62b Aircraft turbine fuel. (a) General. Unless otherwise pro-
vided, aircraft turbine fuel withdrawn from a Customs bonded warehouse for use under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309), may be commingled with domestic or other aircraft turbine fuel after such with-
drawal only if such commingling is ap- proved by the appropriate Customs of- ficial for the port where the commin- gling occurs. The appropriate Customs official may approve such commingling if the fueling system in which the com- mingling will occur contains adequate physical safeguards to prevent the pos- sible unauthorized entry into the Cus- toms territory of the bonded fuel. Such commingled fuel must be accounted for in the same 24-hour period in which it was commingled and must be—
(1) Exported within that 24-hour pe- riod;
(2) Used under section 309 within that 24-hour period; or
(3) Entered or withdrawn for con- sumption, with duty deposited, as re- quired under the applicable regulations (see part 144 of this chapter).
(b) Duty-free withdrawal from ware- house of aircraft turbine fuel under sec- tion 557(a), Tariff Act of 1930, as amended (19 U.S.C. 1557(a)). Turbine fuel in- tended for use as supplies on aircraft under section 309, Tariff Act of 1930, as amended, and withdrawn from a Cus- toms bonded warehouse shall be enti- tled to the privileges provided for in section 309 if an amount equal to or ex- ceeding the quantity of such fuel is es- tablished, as provided for in paragraph (c) of this section, to have been used on aircraft qualifying for the privileges provided for in section 309 within 30 days after the withdrawal of the fuel from the Customs bonded warehouse. Withdrawal of aircraft turbine fuel under this paragraph shall be in ac- cordance with the procedures in §§ 10.59 through 10.64, unless otherwise pro- vided in this section. Withdrawals under this paragraph shall be anno- tated with the term ‘‘Withdrawal under 19 CFR 10.62b(b)’’.
(c) Establishment of use of fuel by qualifying aircraft. (1) The person with- drawing aircraft turbine fuel under paragraph (b) of this section must es- tablish that an aircraft qualifying for the privileges provided for in section 309, Tariff Act of 1930, as amended, used fuel in an amount equal to or exceeding the quantity of the fuel withdrawn that is not entered and upon which duties are not paid by submitting to Customs, at the port where the bonded ware- house entry was filed, within the time
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19 CFR Ch. I (4–1–12 Edition)§ 10.62b
provided in paragraph (d) of this sec- tion, either—
(i) Records prepared in the normal course of business effecting the trans- fer to identified (e.g., by aircraft com- pany name, flight number, flight origin and destination, and date of flight) air- craft of fuel in an amount equal to or exceeding the quantity of the fuel withdrawn which is not entered and on which duties are not paid and objective evidence that the aircraft to which the fuel was transferred were actually used in trade qualifying for the privileges provided in section 309, Tariff Act of 1930, as amended; or
(ii) A certification (documentary or electronic) that:
(A) All of the fuel withdrawn was in- tended for use on aircraft entitled to the privileges provided for in section 309;
(B) Within 30 days of the date of withdrawal from warehouse, an amount of fuel equal to or exceeding the quantity of the fuel withdrawn which is not entered and on which du- ties are not paid was transferred as supplies to aircraft entitled to the privileges provided for in section 309;
(C) All of the aircraft into which fuel is loaded hereunder were used in a trade provided for in section 309; and
(D) The person making the certifi- cation possesses evidence (documen- tary or electronic) available for Cus- toms inspection at a named place which supports each of the above state- ments.
(2) Upon request by Customs, the per- son who submits the certification pro- vided for in paragraph (c)(1) of this sec- tion shall promptly provide the evi- dence required to support the claim for treatment under this section (including the records described in § 10.62b(c)(1)(i)) and §§ 10.62 and 19.6(d) and each of the statements in the certification.
(d) Time for establishment of use of fuel by qualifying aircraft. The person with- drawing aircraft turbine fuel under paragraph (b) of this section shall sub- mit the records or certification pro- vided for in paragraph (c) of this sec- tion by the 40th day after the date of withdrawal of the fuel unless the fuel was withdrawn under a blanket with- drawal under paragraph (g) of this sec- tion. If the fuel was withdrawn under a
blanket withdrawal, the person with- drawing aircraft turbine fuel under this section shall submit the records or cer- tification provided for in paragraph (c) of this section by the 40th day after all of the fuel covered by the blanket per- mit to withdraw has been withdrawn.
(e) Treatment of turbine fuel withdrawn but not used on qualifying aircraft within 30 days. If turbine fuel is withdrawn from a Customs bonded warehouse under paragraph (b) of this section but fuel in an amount less than the quan- tity withdrawn is established to have been used within 30 days of the date of withdrawal from warehouse on aircraft qualifying for the privileges provided for in section 309, Tariff Act of 1930, as amended, a withdrawal for consump- tion shall be filed and duties shall be deposited for the excess of fuel so with- drawn over that used on aircraft so qualifying. Such withdrawal shall be filed and such duties shall be deposited by the 40th day after the date of with- drawal of the fuel in accordance with the procedures in § 144.38 of this chap- ter. Interest shall be payable and de- posited with such duties, calculated from the date of withdrawal at the rate of interest established under 26 U.S.C. 6621.
(f) Liquidated damages. Failure to ac- count for turbine fuel withdrawn under paragraphs (b) through (h) of this sec- tion shall result in liquidated damages against the person withdrawing the turbine fuel, as provided for under § 113.62 of this chapter. Such failure to account for turbine fuel includes:
(1) The failure to timely file the withdrawal for consumption and pay- ment of duty, with interest, on the quantity of fuel so withdrawn in excess of the quantity of fuel established to have been used on qualifying aircraft within 30 days of withdrawal, as pro- vided for in paragraph (e) of this sec- tion;
(2) The failure to timely file the evi- dence or certification establishing such use of the fuel which is not entered and on which duties are not paid, as pro- vided for in paragraph (c) of this sec- tion; or
(3) The failure to promptly provide the evidence required to support the claim for treatment under paragraph
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U.S. Customs and Border Protection, DHS; Treasury § 10.63
(b) of this section, upon request by Cus- toms, as provided for in paragraph (c)(2) of this section.
(g) Blanket withdrawals. Blanket withdrawals, as provided for in §§ 10.62 and 19.6(d), may be used for with- drawals from warehouse under section 557(a), Tariff Act of 1930, as amended, and paragraphs (b) through (h) of this section, under the procedures provided in §§ 10.62 and 19.6(d) except that—
(1) Application by the withdrawer for a blanket permit to withdraw shall be on the warehouse entry, or on the warehouse entry/entry summary when used as an entry, annotated with the words ‘‘Some or all of the merchandise will be withdrawn under blanket per- mit per §§ 10.62, 10.62b, and 19.6(d).’’;
(2) Turbine fuel withdrawn under a blanket permit as authorized in this paragraph may be delivered at a port other than the port of withdrawal;
(3) Customs acceptance of a properly completed application for a blanket permit to withdraw, on the warehouse entry or warehouse entry/entry sum- mary, will constitute approval of the blanket permit to withdraw;
(4) A copy of the approved blanket permit to withdraw will be delivered to the warehouse proprietor, whereupon fuel may be withdrawn under the terms of the blanket permit;
(5) The withdrawal document to be placed in the proprietor’s permit file folder (see § 19.6(d)(2)) will be a com- mercially acceptable document of re- ceipt (such as a ‘‘withdrawal ticket’’) issued by the warehouse proprietor, identified with a unique alpha-numeric code and containing the following in- formation:
(i) Identity of withdrawer; (ii) Identity of warehouse and tank
from which fuel is withdrawn; (iii) Date of withdrawal; (iv) Type of merchandise withdrawn;
and (v) Quantity of merchandise with-
drawn. (6) The date of withdrawal, for pur-
poses of calculating the 30-day period in which fuel must be used on quali- fying aircraft under this section, shall be the date on which physical removal of the fuel from the warehouse com- mences;
(7) The blanket permit summary pre- pared by the proprietor as provided for in § 19.6(d)(4) shall be prepared when all of the fuel covered by the blanket per- mit has been withdrawn and shall ac- count for all merchandise withdrawn under the blanket permit, as required by § 19.6(d)(4), by stating, in summary form, the unique alpha-numeric codes and information required in paragraph (g)(5) of this section, as well as the identity of the warehouse entry to which the withdrawal is attributed;
(8) The certification on the blanket permit summary (see § 19.6(d)(4)) shall be that the merchandise listed there- under was withdrawn in compliance with §§ 10.62, 10.62b, and 19.6(d); and
(9) The person withdrawing aircraft turbine fuel under these blanket proce- dures shall submit the records or cer- tification provided for in § 10.62b(c) by the 40th day after all of the fuel cov- ered by the blanket permit has been withdrawn (see § 10.62b(d)). At the dis- cretion of the port director for the port where blanket withdrawal was ap- proved, submission of the records and evidence required to establish use of the fuel on qualifying aircraft may be required to be submitted electroni- cally, in a format compatible with Cus- toms electronic record-keeping sys- tems.
(h) Recordkeeping. The person with- drawing aircraft turbine fuel from warehouse under this section is subject to the recordkeeping requirements in 19 U.S.C. 1508 and 1509, as provided for in part 162 of this chapter.
[T.D. 96–18, 61 FR 6778, Feb. 22, 1996, as amended by T.D. 99–33, 64 FR 16347, Apr. 5, 1999]
§ 10.63 Landing of supplies and stores from receiving vessel in the United States.
Supplies or stores laden on a vessel duty and tax free under section 309, Tariff Act of 1930, as amended, may be landed under Customs supervision under proper permit, the same as if they had been laden in a foreign coun- try. See § 4.39 of this chapter. Except when transfer to another vessel enti- tled to the free withdrawal privilege is permitted under the original with- drawal under section 309, Tariff Act of 1930, as amended, the landed articles
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19 CFR Ch. I (4–1–12 Edition)§ 10.64
shall be treated as an importation from a foreign country.
[28 FR 14663, Dec. 31, 12963, as amended by T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 97– 82, 62 FR 51769, Oct. 3, 1997]
§ 10.64 Crediting or cancellation of bonds.
(a) Except as stated below, a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter may be credited or canceled in respect of such articles upon the ves- sel’s departure from the port of lading in a class of trade or business entitling the articles to exemption from duty and tax under the statute. The with- drawer shall cause the merchandise to be delivered to the lading vessel, and shall provide such evidence of lading as required by the port director within 30 days after lading, except as provided in this section. If the vessel is not oper- ated by the United States and proceeds in ballast from the port where the arti- cles are laden to another port to lade passengers or cargo for carriage in a class of trade specified in section 309, Tariff Act of 1930, as amended, the bond may be credited or canceled upon the filing with the director of the port of withdrawal within 3 months after the date of withdrawal of a proper declara- tion as prescribed below. The declara- tion shall be executed by one of the fol- lowing who has knowledge of the facts:
(1) The operations manager or port captain for the vessel on which the ar- ticles are laden but not a representa- tive of the supplier.
(2) The master or other officer of the vessel on which the articles are laden. The declaration shall be in substan- tially the following form:
I, ————————————————————— (Operations manager, port captain, master, or other officer) of the vessel llllll de- clare that I have knowledge of the facts set forth herein, and that upon the lading of the articles described below covered by with- drawal No. llll, filed at llllllll(Name of port), the vessel then proceeded in ballast to llllllll(Name of port) to lade cargo or passengers; that the vessel was suitable for service in the class of trade checked below with fittings, outfit, and equipment for such trade already installed when it so departed in ballast; and that upon arrival it proceeded to engage in the carriage of cargo
or passengers in such trade, except as stated below: llllllllllllllllllllllll
(If no exception, note ‘‘None’’)
1. Foreign Trade. 2. Trade between Atlantic and Pacific ports
of the United States, when such trade is not prohibited by coastwise laws.
3. Trade between the United States and any of its possessions, when such trade is not prohibited by coastwise laws.
4. Trade between Alaska or Hawaii and any other part of the United States, when such trade is not prohibited by coastwise laws.
Description of articles: llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
———————————— (Name and title)
(b) A declaration as to the intended business or trade of a vessel may, in the discretion of the port director, be accepted in lieu of a declaration pre- scribed in paragraph (a) of this section when the amount of duty or tax, or both, involved in a single lading is less than $100.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41166, Oct. 19, 1984]
§ 10.64a [Reserved]
§ 10.65 Cigars and cigarettes. (a) Imported cigars and cigarettes in
bonded warehouse or otherwise in Cus- toms custody, and such articles manu- factured with the use of imported ma- terials in a bonded manufacturing warehouse of class 6, may be with- drawn under section 317, Tariff Act of 1930, as amended, for consumption be- ginning beyond the 3-mile limit or international boundary, as the case may be, (1) on vessels actually engaged in the foreign, intercoastal, or non- contiguous territory trade within the purview of § 10.59(a); (2) on vessels de- parting from the port where the with- drawal is made directly for a foreign port, a port on the opposite coast, or a port in one of the possessions of the United States; or (3) on vessels of war or other governmental activity.
(b) The privilege shall not be granted to vessels stationed in American wa- ters for an indefinite period without
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U.S. Customs and Border Protection, DHS; Treasury § 10.66
sailing schedules, nor shall it be grant- ed to aircraft of foreign registry of a country for which there is not in effect a finding and advice by the Department of Commerce under section 309(d), Tar- iff Act of 1930, as amended, that such country allows privileges to aircraft registered in the United States sub- stantially reciprocal to those described in section 317, Tariff Act of 1930, as amended. See section 10.59(f).
(c) With the following additions and exceptions, the same procedure shall be followed as in the case of withdrawals under section 309(a), Tariff Act of 1930, as amended.
(1) No bond shall be required in the case of vessels operated by the United States Government.
(2) When a shipping case containing cigars and cigarettes is made up of a number of units, each in a separate package, such units may be withdrawn separately, provided each unit is marked and numbered for identifica- tion and contains not less than 250 ci- gars or 1,000 cigarettes. In the case of imported cigars and cigarettes so packed, only one unit from each ship- ping case shall be opened for examina- tion, unless the port director shall deem it necessary for the protection of the revenue to examine a greater quan- tity. Imported tobacco products on which the duty or internal-revenue tax has been paid may not be withdrawn under section 317, Tariff Act of 1930, as amended, with a drawback of such duty or internal-revenue tax.
(3) When all the units in such ship- ping case are not to be withdrawn at the same time or for use on the same vessel, a blanket withdrawal may be filed for the entire case in lieu of a sep- arate withdrawal for each unit. In such event, the withdrawal shall be retained by the warehouse proprietor until de- livery receipts are obtained for the en- tire quantity covered by the with- drawal, provided the total period of time prior to delivery to the using ves- sel or aircraft does not exceed 5 years. A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter, when required, shall be filed at the time of or prior to the removal of any of the merchandise from the warehouse for delivery to the vessel on which it is to be used.
(4) Merchandise for which blanket withdrawals are filed shall be stored in a separate room or enclosure in a bond- ed warehouse under separate locks, and the merchandise clearly marked to show that it has been withdrawn. If, at the time of any such inventory, any merchandise is missing and not prop- erly accounted for, duties shall be paid thereon before any further withdrawals are permitted.
(5) The declaration of use, when re- quired, shall include a statement that consumption of the articles covered by the withdrawal did not begin until the withdrawing vessel or aircraft had pro- ceeded beyond the 3 mile limit or the international boundary.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 67–193, 32 FR 11764, Aug. 16, 1967; T.D. 70– 73, 35 FR 5400, Apr. 1, 1970; T.D. 82–204, 47 FR 49368, Nov. 1, 1982; T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
ARTICLES EXPORTED FOR EXHIBITION, ETC.
§ 10.66 Articles exported for temporary exhibition and returned; horses ex- ported for horse racing and re- turned; procedure on entry.
(a) In connection with the entry of articles, including livestock or other animals, exported for temporary exhi- bition and returned and claimed to be exempt from duty under subheading 9801.00.50 or 9801.00.60, Harmonized Tar- iff Schedule of the United States (HTSUS), there shall be filed:
(1) A certificate of exportation on Customs Form 3311;
(2) A declaration of the importer on Customs Form 4455 for articles of ei- ther domestic or foreign origin; and
(3) In the case of animals of foreign origin taken abroad for exhibition in connection with a circus or menagerie, a copy of an inventory of these animals filed prior to their leaving the country with the director of the port of their departure.
(b) If it is shown to be impracticable to produce the certificate of expor- tation required under paragraph (a)(1) of this section, the port director may accept other satisfactory evidence of exportation, or may take a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this
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19 CFR Ch. I (4–1–12 Edition)§ 10.67
chapter to secure the production of such certificate or other evidence.
(c) Articles claimed to be exempt from duty under subheading 9801.00.50 or 9801.00.60, Harmonized Tariff Sched- ule of the United States (HTSUS) (19 U.S.C. 1202), may be returned free of duty without formal entry and without regard to the requirements of para- graph (a) or (b) of this section if:
(1) Prior to the exportation of such articles, an application on Customs Form 4455 (accompanied by an appro- priate inventory, when required by law or by the port director) is filed with a declaration thereon that:
(i) Any right to drawback of Customs duties with respect to that shipment was waived;
(ii) Any internal revenue tax due has been paid and no refund thereof will be sought; and
(iii) The merchandise was identified, registered, and exported in accordance with the regulations set forth in §§ 10.8(e), (g), (h), and (i), governing the exportation of articles sent abroad for repairs, and
(2) Upon return, a duplicate Customs Form 4455 (with accompanying inven- tory where one was required) is filed.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 74–242, 39 FR 33794, Sept. 20, 1974; T.D. 75–235, 40 FR 44319, Sept. 26, 1975; T.D. 78–153, 43 FR 23709, June 1, 1978; T.D. 82–224, 47 FR 53727, Nov. 29, 1982; T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 87–75, 52 FR 20066, May 29, 1987; T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 94–1, 58 FR 69470, Dec. 30, 1993]
§ 10.67 Articles exported for scientific or educational purposes and re- turned; procedure on entry.
(a) In connection with each entry of articles exported for scientific or edu- cational purposes and returned under subheading 9801.00.40, Harmonized Tar- iff Schedule of the United States (HTSUS), the following shall be re- quired, irrespective of the value of the shipment:
(1) A certificate of exportation on Customs Form 3311;
(2) A declaration by the foreign ship- per in the same form as that prescribed in § 10.66(a)(2) but stating that such ar- ticles were sent from the United States solely for temporary scientific or edu- cational use and describing the specific
use to which they were put while abroad.
(3) A declaration of the ultimate con- signee in substantially the following form:
Port of llllllll, Port Director’s Of- fice, lllllllll, 19ll.
I, llllllllll, declare that the sev- eral articles described in the annexed entry are, to the best of my knowledge and belief, the identical articles exported from the United States on the llllll day of llllll, 19ll, by lllllllll (Ac- tual shipper) address llllllll, for the account of llllllll, address llllllllthat they are returned to llllllll, address llllllll, for the account of llllllll, address lllllll that the said articles were ex- ported solely for temporary scientific or edu- cational purposes and for no other use abroad than for exhibition, examination, or experimentation; that they are being re- turned without having been changed in con- dition in any manner, except by reason of their bona fide use as follows: llllllllllllllllllllllll
(Describe change in condition) llllllllllllllllllllllll
———————————— (Ultimate consignee)
(b) If it is shown to be impracticable to produce the certificate of expor- tation required by paragraph (a)(1) of this section, the port director may ac- cept other satisfactory evidence of ex- portation. The port director may take a bond on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter to secure the subsequent production of any of the evidence or documents required by paragraph (a) of this section which are not available at the time of entry.
(c) If, prior to the exportation of arti- cles claimed to be exempt from duty under subheading 9801.00.40, Har- monized Tariff Schedule of the United States (HTSUS), an application on Cus- toms Form 4455 (accompanied by an ap- propriate inventory when, in the dis- cretion of the port director, such in- ventory is deemed necessary) was filed, such articles may be returned for the account of the exporter free of duty without formal entry, without regard to the requirements of paragraphs (a) and (b) of this section, upon the filing of the duplicate Customs Form 4455 (with accompanying inventory, if one was required), and a declaration of the
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ultimate consignee in substantially the form set forth in paragraph (a)(3) of this section.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 74–242, 39 FR 33794, Sept. 20, 1974; T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 94–1, 58 FR 69470, Dec. 30, 1993; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
THEATRICAL EFFECTS, MOTION-PICTURE FILMS, COMMERCIAL TRAVELERS’ SAM- PLES, AND TOOLS OF TRADE
§ 10.68 Procedure.
(a) Theatrical scenery, properties, and effects, motion-picture films (in- cluding motion-picture films taken aboard a vessel for exhibition only dur- ing an outward voyage and returned for the same purpose during an inward voyage on the same or another vessel), commercial travelers’ samples, and professional books, implements, instru- ments, and tools of trade, occupation, or employment (see § 148.53 of this chapter), of domestic or foreign origin, taken abroad may be returned without formal entry and without payment of duty if an exportation voucher from a carnet, when applicable, or an applica- tion on Customs Form 4455 was filed, and the merchandise was identified as set forth in § 10.8, before exportation of the articles. Articles exported under cover of an A.T.A. carnet (where the carnet serves as the control document) may, in accordance with this para- graph, be returned without entry or the payment of duty. If Customs Form 4455 is utilized, commercial travelers’ sam- ples, professional books, implements, instruments, and tools of trade, occu- pation, or employment may be re- turned with either an informal entry or a declaration on Customs Form 3299; theatrical scenery, properties, and ef- fects and motion-picture films may be returned only with an informal entry. When articles other than those ex- ported by mail or parcel post are exam- ined and registered at one port and ex- ported through another port, the port director may require proof of expor- tation in those cases where the carnet or Customs Form 4455 does not reflect that these articles were exported under Customs supervision. In the case of commercial travelers’ samples taken
abroad for temporary use, except where exportation involves certification of a carnet, port directors may waive exam- ination of the samples at the time of exportation. When motion-picture films are to be taken aboard a vessel for exhibition only during an outward voyage and are to be returned for the same purpose during an inward voyage on the same or another vessel, port di- rectors may waive examination and su- pervision at the time of exportation. When theatrical scenery, properties, and effects are taken abroad in sealed carload lots by rail for temporary use, the cars must be sealed by U.S. Cus- toms officers for entry at any Canadian or Mexican port where U.S. Customs officers are stationed. Application and examination before the time of expor- tation is waived if a Customs Form 4455 is filed with the U.S. Customs officer in the appropriate Canadian or Mexican port, and that officer examines the ar- ticles before they are released from for- eign customs custody by the foreign customs officer.
(b) When any such articles are to be returned to the United States from a contiguous foreign country in which a United States Customs officer is sta- tioned, the articles may be presented to such officer with the duplicate copy of the application for examination and comparison with the descriptive list. Upon completion of such examination, the packages containing the articles shall be corded and sealed or forwarded in cars sealed by Customs officers and shall be manifested in the same man- ner as personal baggage. Articles so treated shall be released upon arrival in the United States and removal of the seals by Customs officers.
(c) When commercial travelers’ sam- ples consisting of raw cotton are taken to and returned from Canada, the ap- plication on Customs Form 4455 shall be executed in triplicate, two copies thereof to be returned to the traveler for surrender to the Customs officer on the return of the samples from Canada.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 69–146, 34 FR 9801, June 25, 1969; T.D. 75– 41, 40 FR 6646, Feb. 13, 1975; T.D. 82–49, 47 FR 12160, Mar. 22, 1980; T.D. 82–116, 47 FR 27261, June 24, 1982]
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§ 10.69 Samples to Great Britain and Ireland under reciprocal agree- ment.
Descriptive lists of samples taken to Great Britain and Ireland by commer- cial travelers of the United States under the joint declarations of Decem- ber 3 and 8, 1910 (State Department treaty series 552), shall be required in triplicate, verified by the affidavit of the commercial traveler before a Cus- toms officer, and shall show that the samples are for use as models or pat- terns for the purpose of obtaining or- ders and not for sale and that the lists contain a full description of the arti- cles. One copy shall be retained and the others shall be delivered to the com- mercial traveler—one for the identi- fication of the samples on their return to the United States and one for the use of the foreign customs authorities. The latter copy must have been at- tested by a consular officer of the country concerned in the United States.
ANIMALS AND BIRDS
CROSS REFERENCE: For regulations with re- spect to recognition of breeds and purebred animals, see 9 CFR part 151.
§ 10.70 Purebred animals for breeding purposes; certificate.
(a) In connection with the entry of purebred animals for breeding purposes under subheading 0101.11.00, Har- monized Tariff Schedule of the United States (HTSUS), no claim for free entry shall be allowed in liquidation of the entry until the port director has received from the Department of Agri- culture a certificate that the animal is purebred of a recognized breed and duly registered in a book of record recog- nized by the Secretary of Agriculture for that breed. Importers are required by regulation of the Department of Ag- riculture to make application for a cer- tificate of pure breeding to the U.S. De- partment of Agriculture, Animal and Plant Health Inspection Service, Vet- erinary Services, on ANH Form 17–338 before the animal will be examined as required by 9 CFR 151.7. Application for the certificate must be executed by the owner agent, or importer and filed at a port of entry designated in the regula-
tions of the Department of Agriculture for the importation of animals (9 CFR 92.3). However, applications for certifi- cates for dogs (other than dogs for han- dling livestock regulated under 9 CFR 92.18) and cats may be filed either at a designated port of entry or at any other port where Customs entry is made. The regulations of the Depart- ment of Agriculture prescribing the re- quirements for the issuance of certifi- cates of pure breeding provide that all animals imported under such regula- tions must be accompanied to the port at which examination is to be made by certificates of pedigree and transfer of ownership in order that identification may be accomplished, and that, if such animals are moved from such port prior to the presentation of such cer- tificates and transfers, such action shall constitute a waiver of any further claim to certification under such regu- lations.
(b) In the cases of cats and dogs ar- riving at Canadian border ports, Cus- toms officers and employees are hereby authorized and directed to make the examination required by such regula- tions of the Department of Agriculture. Customs officers and employees are also authorized and directed to make such examinations at the ports of New York and Boston, provided the dog or cat is brought into the United States by a passenger. At all airports, Cus- toms officers shall make the examina- tion of dogs and cats, whether or not accompanied by the owners, if there is no inspector of the Department of Ag- riculture stationed there or on duty at the time of arrival.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68–154, 33 FR 8730, June 14, 1968; T.D. 78– 99, 43 FR 13060, Mar. 29, 1978; T.D. 87–75, 52 FR 20066, May 29, 1987; T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
§ 10.71 Purebred animals; bond for production of evidence; deposit of estimated duties; stipulation.
(a) The animal may be released from Customs custody upon the furnishing by the importer of a bond on Customs Form 301, containing the bond condi- tions set forth in § 113.62 of this chapter for the production within 6 months of (1) a certificate of pure breeding issued by the Department of Agriculture, and
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(2) the declaration required by § 10.70(a) submitted in letter form if such dec- laration was not filed at the time of entry. The release of the animal from customs custody requires the presen- tation of the pedigree certificate and evidence of transfer of ownership in ac- cordance with the regulations of the Department of Agriculture mentioned in § 10.70(b).
(b) Charges against the bond shall be canceled only upon the production of the required evidence or on payment of duties.
(c) In cases where the pedigree cer- tificate and evidence of transfer of ownership have been presented in ac- cordance with the regulations of the Department of Agriculture, the im- porter, if he so elects, may, in lieu of giving a bond, deposit estimated duties and file a stipulation with the port di- rector within 10 days after the date of entry to produce the declaration and certificate of pure breeding within 6 months from the date of entry, where- upon the liquidation of the entry shall be suspended. (See § 113.42 of this chap- ter.)
(d) If the pedigree certificate and evi- dence of transfer of ownership were not presented in accordance with such reg- ulations of the Department of Agri- culture, a deposit of estimated duties, in addition to the regular entry bond, shall be required.
(e) When a passenger arriving in the United States with one or more dogs or cats and with the required certificates of pedigree and transfers of ownership in his possession furnishes a properly executed declaration as required by § 10.70(a) along with an application to the Department of Agriculture on ANH Form 17–338 for a certificate of pure breeding, the entry of the animal(s) as duty-free under subheading 0106.00.50, Harmonized Tariff Schedule of the United States (HTSUS), may be made on the passenger’s baggage declaration if the value of the animals does not ex- ceed $500. In such case the entry shall be supported by a bond on Customs Form 301, containing the bond condi- tions set forth in § 113.62 of this chapter for the production within 6 months of a certificate of pure breeding. The bond shall be without surety or cash deposit unless the port director on the basis of
information before him finds that a bond with surety or a cash deposit is necessary to protect the revenue.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 68–79, 33 FR 4461, Mar. 13, 1968; T.D. 68– 154, 33 FR 8731, June 14, 1968; T.D. 74–227, 39 FR 32015, Sept. 4, 1974; T.D. 78–99 43 FR 13060, Mar. 29, 1978; T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 87–75, 52 FR 26142, July 13, 1987; T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 93– 66, 58 FR 44130, Aug. 19, 1993]
§§ 10.72–10.73 [Reserved]
§ 10.74 Animals straying across bound- ary for pasturage; offspring.
When domestic animals for which free entry is to be claimed under sub- heading 9801.00.90, Harmonized Tariff Schedule of the United States, have strayed across the boundary line, they may be returned, together with their offspring, without entry if brought back within 30 days; otherwise entry shall be required. The owner of any such animal shall report its return to the nearest Customs office and hold it for such inspection and treatment as may be deemed necessary by a rep- resentative of the Animal and Plant Health Inspection Service of the De- partment of Agriculture. Any such ar- rival found not to have been so re- ported or held shall be subject to sei- zure and forfeiture pursuant to 18 U.S.C. 545.
[T.D. 87–75, 52 FR 20067, May 29, 1987, as amended by T.D. 89–1, 53 FR 51250, Dec. 21, 1988]
§ 10.75 Wild animals and birds; zoolog- ical collections.
When wild animals or birds are claimed to be free of duty under sub- heading 9810.00.70, Harmonized Tariff Schedule of the United States (HTSUS), (19 U.S.C. 1202), the port di- rector may, at his discretion, require appropriate proof that the animals or birds were specially imported pursuant to negotiations conducted prior to im- portation for the delivery of animals or birds of a named species meeting agreed specifications of reasonable par- ticularity and that they are intended at the time of importation for public exhibition in a collection maintained for scientific or educational purposes and not for sale or for use in connec- tion with any enterprise conducted for
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profit. The fact that an animal or bird may have been sent on approval shall not preclude free entry under sub- heading 9810.00.70, HTSUS, when it is actually accepted as a part of the zoo- logical collection and so exhibited.
[T.D. 85–123, 50 FR 29953, July 23, 1985, as amended by T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.76 Game animals and birds.
(a) The following classes of live game animals and birds may be admitted free of duty for stocking purposes under the provisions of subheading 9817.00.70 without reference to the United States Customs Service, if the requirements of the Fish and Wildlife Service, De- partment of the Interior, have been complied with.
ANIMALS
1. Cervidae, commonly known as deer and elk.
2. Leporidae, commonly known as rabbits. 3. Sciuridae, commonly known as squirrels.
BIRDS
1. Anatidae, commonly known as ducks and geese.
2. Gallinae, commonly known as turkeys, grouse, pheasants, partridges, and quail.
3. Otididae, commonly known as bustards. 4. Tinamidae, commonly known as
tinamous.
(b) Application for the free entry of other live animals or birds under sub- heading 9817.00.70, Harmonized Tariff Schedule of the United States shall be referred to the United States Customs Service for consideration. Animals im- ported for fur-farming purposes shall not be admitted free of duty under that paragraph.
(c) [Reserved] (d) Game animals and birds killed in
foreign countries by residents of the United States, if not imported for sale or other commercial purposes, may be admitted free of duty without entry, if the person has no merchandise requir- ing a written declaration upon the fil- ing of a declaration on U.S. Fish and Wildlife Service Form 3–177, Declara- tion for Importation or Exportation of Fish or Wildlife. No bond or cash de- posit to insure the destruction or ex-
portation of the plumage of such birds shall be required.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35475, Aug. 16, 1982; T.D. 86– 118, 51 FR 22515, June 20, 1986; T.D. 89–1, 53 FR 51250, Dec. 21, 1988; T.D. 90–78, 55 FR 40166, Oct. 2, 1990]
§ 10.77 [Reserved]
PRODUCTS OF AMERICAN FISHERIES
§ 10.78 Entry.
(a) No entry shall be required for fish or other marine products taken on the high seas by vessels of the U.S. or by residents of the U.S. in undocumented vessels owned in the U.S. when such fish or other products are brought into port by the taking vessel or are trans- ferred at sea to another fishing vessel of the same fleet and brought into port.
(b) An American fishery, within the meaning of Subchapter XV of Chapter 98, Harmonized Tariff Schedule of the United States, is defined as a fishing enterprise conducted under the Amer- ican flag by vessels of the United States on the high seas or in foreign waters in which such vessels have the right by treaty or otherwise, to take fish or other marine products and may include a shore station operated in con- junction with such vessels by the owner or master thereof.
(c) The employment of citizens of a foreign country by an American fishery is permissible but the purchase by an American fishery of fish or other ma- rine products taken by citizens of a for- eign country on the high seas or in for- eign waters will subject such fish or other marine products to treatment as foreign merchandise.
(d) Products of an American fishery shall be entitled to free entry although prepared, preserved, or otherwise changed in condition, provided the work is done at sea by the master or crew of the fishery or by persons em- ployed by and under the supervision of the master or owner of the fishery. Fish (except cod, haddock, hake, pol- lock, cusk, mackerel, and swordfish) the product of an American fishery landed in a foreign country and there not further advanced than beheaded, eviscerated, packed in ice, frozen and with fins removed, shall be entitled to
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free entry, whether or not such proc- essing is done by the American fishery. Products of an American fishery pre- pared or preserved on the treaty coasts of Newfoundland, Magdalen Islands, or Labrador, as such coasts are defined in the Convention of 1818 between the United States and Great Britain, shall be entitled to free entry only if the preparation or preservation is done by an American fishery.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87–75, 52 FR 20067, May 29, 1987; T.D. 89– 1, 53 FR 51250, Dec. 21, 1988]
§ 10.79 [Reserved]
SALT FOR CURING FISH
§ 10.80 Remission of duty; withdrawal; bond.
Imported salt in bond may be used in curing fish taken by vessels licensed to engage in the fisheries, and in curing fish in the shores of the navigable wa- ters of the U.S., whether such fish are taken by licensed or unlicensed vessels, and upon proof that the sale has been used for either of such purposes, the duties on the same shall be remitted. (Section 313(e), Tariff Act of 1930, 19 U.S.C. 1313(e)). Imported salt entered for warehouse may be withdrawn under bond for use in curing fish. Upon proof that the salt has been so used, the du- ties thereon shall be remitted. In no case shall the quantity of salt with- drawn exceed the reasonable require- ments of the case. Withdrawal shall be made on Customs Form 7501. Each withdrawal shall contain the state- ment prescribed for withdrawals in § 144.32 of this chapter. When the with- drawal is made by a person other than the importer of record, a bond on Cus- toms Form 301, containing the bond conditions set forth in § 113.62 of this chapter for the production of proof of proper use shall be filed. Upon accept- ance of the bond, a withdrawal permit shall be issued on Customs Form 7501.
[T.D. 89–1, 53 FR 51251, Dec. 21, 1988, as amended by T.D 95–81, 60 FR 52295, Oct. 6, 1995]
§ 10.81 Use in any port. (a) Salt withdrawn under bond for
use in curing fish on the shores of navi- gable waters may be used for such pur-
pose at any port, but the evidence of use in such cases shall be submitted through the director of the port where the salt was used.
(b) If desired, salt to be used in cur- ing fish on shore at another port than that in which it is warehoused in bond may be withdrawn under a transpor- tation entry and shipped in bond to the other port at which it is to be used, where it may be entered on Customs Form 7501 which shall show withdrawal of the salt for use in curing fish. There- upon, and upon the filing of a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, such salt may be used without being sent to a bonded warehouse or public store. In such a case the proof of use shall be filed at the latter port.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 87– 75, 52 FR 20067, May 29, 1987; T.D 95–81, 60 FR 52295, Oct. 6, 1995]
§ 10.82 [Reserved]
§ 10.83 Bond; cancellation; extension. (a) If it shall appear to the satisfac-
tion of the port director holding the bond referred to in § 10.80, that the en- tire quantity of salt covered by the bond has been duly accounted for, ei- ther by having been used in curing fish or by the payment of duty, the port di- rector may cancel the charges against the bond. The port director may re- quire additional evidence in corrobora- tion of the proof of use produced.
(b) On application of the person mak- ing the withdrawal, the period of the bond may be extended 1 year so as to allow the salt to be used during the time of extension in curing fish with the same privileges as if used during the original period.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 87–75, 52 FR 20067, May 29, 1987]
AUTOMOTIVE PRODUCTS
§ 10.84 Automotive vehicles and arti- cles for use as original equipment in the manufacture of automotive vehicles.
(a)(1) Certain motor vehicles and motor vehicle equipment are eligible for duty-free entry as proclaimed by the President under the Automotive
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Products Trade Act of 1965. The arti- cles designated for such duty-free treatment are defined in General Note 3(c)(iii), HTSUS (19 U.S.C. 1202). Spe- cifically, such articles are those des- ignated [as ‘‘Free (B)’’] in the ‘‘Spe- cial’’ subcolumn in Chapter 87, HTSUS, and must qualify as ‘‘Canadian arti- cles’’ as defined in General Note 3(c)(iii)(A)(1), HTSUS. To claim exemp- tion from duty under the Automotive Products Trade Act of 1965, an im- porter must establish, to the satisfac- tion of the appropriate Customs officer, that the article in question qualifies as a ‘‘Canadian article’’ for purposes of General Note 3(c)(iii)A)(1), HTSUS. The Customs officer may accept as satisfac- tory evidence a certificate executed by the exporter as set forth in paragraph (b) of this section, subject to any verification he may deem necessary. Alternatively, the Customs officer may determine that under the cir- cumstances of the importation a cer- tificate is unnecessary.
(2) Under the United States-Canada Free-Trade Agreement and imple- menting legislation (Pub. L. 100–449, 102 Stat. 1851) a manufacturer of motor ve- hicles may elect to average, over its 12- month financial year, its calculation of the value-content requirement for ve- hicles in establishing its eligibility for tariff preference. Requirements for averaging are set forth in § 10.310 and 10.311.
(b)(1) When all materials used at any stage in the production of the imported article are wholly obtained or produced in Canada or the United States, or both, a certificate in the following form may be accepted as evidence that the commodity is a ‘‘Canadian article’’:
All materials contained in the product cov- ered by the lllll (Describe the invoice, bill of lading, or other document or state- ment identifying the shipment) annexed or appended to this certificate of Canadian ori- gin at the time it was subscribed were whol- ly obtained or produced in Canada or the United States, or both. No materials other than those which were wholly obtained or produced in Canada or the United States, or both, were incorporated into this product or any of its components at any stage of pro- duction or in the production of any inter- mediate product used at any stage in the chain of production in Canada or the United States, or both.
(2) When any material used at any stage in the production of an imported article or any of its components is not wholly obtained or produced in Canada or the United States, or both, a certifi- cate in the following form may be ac- cepted as evidence that the commodity is nevertheless a ‘‘Canadian article’’:
The product covered by the lllll (De- scribe the invoice, bill of lading, or other document or statement identifying the ship- ment) annexed or appended to this certifi- cate of Canadian origin at the time it was subscribed is an originating good so as to be a Canadian article. There were used in its production in Canada lllll (Description sufficient for tariff classification of the ma- terials, and number of units) of third coun- try materials of which the price paid was lllll per unit of quantity, plus lllll which represents all costs incurred in transporting the materials to the location of the producer and the duties, taxes, and brokerage fees on the materials, if such costs were not included in the price paid.
(3) If such Customs officer is satisfied that the revenue will be protected ade- quately thereby, he may accept in lieu of the certificate specified in paragraph (b)(2) of this section a certificate in the following form when the merchandise covered thereby has been produced with third country material but is an originating good under a specific rule of origin for the merchandise:
The product covered by the lllll (De- scribe the invoice, bill of lading, or other document or statement identifying the ship- ment) annexed or appended to this certifi- cate of Canadian origin at the time it was subscribed is an originating good so as to be a Canadian article. There were or may have been used in its production in Canada or the United States, or both, materials of a third country.
It is impractical to ascertain the exact number of units of third country material, if any, used in its production or the price paid (and other costs required to be included in the price paid) of such materials but to the best of (my) (our) (its) knowledge the mate- rials are described (sufficient for tariff clas- sification purposes) as follows: lllll.
(4) The certificates described in para- graphs (b)(2) and (b)(3) of this section shall not be accepted if the statements therein make it evident that the im- portation is not a ‘‘Canadian article’’ within the meaning of General Note 3(c), HTSUS.
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(5) If more than one kind of article is covered by a certificate provided for in paragraph (b) (1), (2), or (3) of this sec- tion, the information required by the certificate shall be shown with respect to each kind. When more than one kind of material, other than originating ma- terial, is used in the production of an article covered by such a certificate, the certificate shall state the number of units, a description sufficient for tariff classification purposes, the price paid, and, if not included in the price paid, the costs incurred in transporting the materials to the location of the producer and duties, taxes and broker- age fees paid in Canada and/or the United States on the material, per unit of each kind of materials.
(6) A certificate conforming to para- graph (b) (1), (2), or (3) of this section shall be accepted as evidence of the facts alleged therein only if:
(i) There is annexed thereto a copy of the commercial invoice or bill of lading covering the articles or other documen- tary evidence which identifies the arti- cle to which the certificate pertains,
(ii) The certificate is signed by the manufacturer or producer of the article to which it pertains, or by the person who exported the articles from Canada, and
(iii) It clearly appears that such copy or other documentary evidence was an- nexed to the certificate when it was signed.
(c) In lieu of the certification in paragraph (b) (1), (2), or (3) of this sec- tion, a manufacturer of motor vehicles who claims a preference under the United States-Canada Free-Trade Agreement and elects to average pursu- ant to § 10.310(a), shall be subject to the requirements of §§ 10.301 to 10.311 of this part.
(d) When an importer makes an entry, or withdrawal from warehouse, for consumption of articles for use as ‘‘original motor-vehicle equipment’’ as that term is defined in General Note 3(c)(iii), HTSUS, he shall file in con- nection therewith his declaration that the articles are being imported for use as original equipment in the manufac- ture in the United States of the kinds of motor vehicles specified in the Gen- eral Note and furnish the name and ad- dress of the motor vehicle manufac-
turer. A copy of the written order, con- tract, or letter of intent shall be at- tached to the importer’s declaration except that if the port director is satis- fied that a copy of the written order, contract, or letter of intent will be made available by the importer or ulti- mate consignee for inspection by cus- toms officials upon request during a pe- riod of 3 years from the date of such entry or withdrawal from warehouse, the production of such documents will not be required. Proof of use need not be furnished.
(e) If, after a Canadian article has been accorded the status of original motor-vehicle equipment, it is decided to divert the article from its intended use in the manufacture in the United States of motor vehicles, the importer or other person deciding to divert the article from such intended use shall give notice in writing of the decision to the director of the port where entry was made or where the offices of the importer are located and either make arrangements for its destruction or ex- portation under Customs supervision or pay duties in accordance with Gen- eral Note 3(c)(iii)(B)(2), HTSUS. If such article is not destroyed or exported under Customs supervision or the du- ties paid, the article, or its value, shall be subject to forfeiture.
[T.D. 89–3, 53 FR 51765, Dec. 23, 1988, as amended by T.D. 92–8, 57 FR 2453, Jan. 22, 1992; T.D. 93–66, 58 FR 44130, Aug. 19, 1993]
MASTER RECORDS, AND METAL MATRICES
§ 10.90 Master records and metal mat- rices.
(a) Consumption entries covering im- portations under subheading 8524.99.20, HTSUS, shall be filed at a port in the Customs district in which the factory where the articles will be used is lo- cated.
(b) The invoice filed with the entry shall contain or be supported by a de- tailed statement of the cost of produc- tion, in the country where made, of each master record or metal matrix covered thereby.
(c) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter shall be filed for importations under this section.
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(d) Entries already filed and future entries shall be liquidated in due course without the assessment of duty, but liability on bonds given with the entries shall be discontinued with re- spect to any article covered thereby only upon payment of liquidated dam- ages in an amount equal to the duties which would have accrued had the mas- ter records or metal matrices been im- ported for use otherwise than in the manufacture of sound records for ex- port purposes, or upon satisfactory proof that the master records or metal matrices obtained therefrom have been exported or destroyed under Customs supervision, and that all sound records made with the use of such articles have been exported.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41166, Oct. 19, 1984; T.D. 87– 75, 52 FR 20067, May 29, 1987; T.D. 89–1, 53 FR 51251, Dec. 21, 1988; T.D. 90–78, 55 FR 40166, Oct. 2, 1990; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
PROTOTYPES
§ 10.91 Prototypes used exclusively for product development and testing.
(a) Duty-free entry; declaration of use; extension of liquidation—(1) Entry or withdrawal for consumption. Articles de- fined as ‘‘prototypes’’ and meeting the other requirements prescribed in para- graph (b) of this section may be en- tered or withdrawn from warehouse for consumption, duty-free, under sub- heading 9817.85.01, Harmonized Tariff Schedule of the United States (HTSUS), on CBP Form 7501 or an elec- tronic equivalent. A separate entry or withdrawal must be made for a quali- fying prototype article each time the article is imported/reimported to the United States.
(2) Importer declaration. (i) Entry ac- cepted as declaration. Entry or with- drawal from warehouse for consump- tion under HTSUS subheading 9817.85.01 may be accepted by the port director as an effective declaration that the arti- cles will be used solely for the purposes stated in the subheading.
(ii) Proof (declaration) of actual use. If it is believed the circumstances so war- rant, the port director may request the submission of proof of actual use, exe- cuted and dated by the importer. The title of the party executing the proof of
actual use must be set forth. If proof of actual use is requested, the importer must provide it within three years after the date the article is entered or withdrawn from warehouse for con- sumption. Liquidation of the related entry may be extended until the re- quested proof or declaration of actual use is received or until the three-year period from the date of entry allowed for the receipt of such proof has ex- pired. While requested proof of use must be given to CBP within three years of the date of entry, the proto- type may continue to be used there- after for the purposes enumerated in HTSUS subheading 9817.85.01. If re- quested proof of use is not timely re- ceived, the entry will be liquidated as dutiable under the tariff provision that would otherwise apply to the imported article. While there is no particular form for this declaration, it may either be submitted in writing, or electroni- cally as authorized by CBP, and must include the following:
(A) A description of the use that is being and/or that has been made of the articles set forth in sufficient detail so as to enable the port director to deter- mine whether the articles have been entitled to entry as claimed;
(B) A statement that the articles have not and are not to be put to any other use after the articles have been entered or withdrawn from warehouse for consumption and prior to the com- pletion of their use under HTSUS 9817.85.01 (also see paragraphs (c) and (d) of this section concerning the dis- position(s) to which the articles may be put following their use under HTSUS subheading 9817.85.01); and
(C) A statement that the articles or any parts of the articles have not been and are not intended to be sold, or in- corporated into other products that are sold, after the articles have been en- tered or withdrawn from warehouse for consumption and prior to the comple- tion of their use as provided in HTSUS subheading 9817.85.01 (see paragraph (b)(2)(ii) of this section).
(b) Articles classifiable as prototypes— (1) Prototypes defined. In accordance with U.S. Note 6(a) to subchapter XVII of chapter 98, HTSUS, applicable to
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subheading 9817.85.01, the term ‘‘proto- types’’ means originals or models of ar- ticles pertaining to any industry that:
(i) Are either in the preproduction, production or postproduction stage and are to be used exclusively for develop- ment, testing, product evaluation, or quality control purposes (not including automobile racing for purse, prize or commercial competition); and
(ii) In the case of originals or models of articles that are either in the pro- duction or postproduction stage, are associated with a design change from current production (including a refine- ment, advancement, improvement, de- velopment or quality control in either the product itself or the means of pro- ducing the product).
(2) Additional requirements. In accord- ance with U.S. Note 6(b) and (c) to sub- chapter XVII of chapter 98, HTSUS, ap- plicable to subheading 9817.85.01, the following additional restrictions apply to articles that may be classified as prototypes:
(i) Importations limited. Prototypes may be imported pursuant to this sec- tion only in limited noncommercial quantities in accordance with industry practice.
(ii) Sale prohibited after entry and prior to use. Prototypes or parts of proto- types may not be sold, or be incor- porated into other products that are sold into the commerce of the United States, after the prototypes have been entered or withdrawn from warehouse for consumption under HTSUS sub- heading 9817.85.01, except that, after having been used for the purposes for which they were entered or withdrawn from warehouse under HTSUS sub- heading 9817.85.01, such prototypes or any part(s) of the prototypes may be sold as scrap, waste, or for recycling, as prescribed in paragraph (c) of this section.
(iii) Articles subject to laws of another agency. Articles that are subject to li- censing requirements, or that must comply with laws, rules or regulations administered by an agency other than CBP before being imported, may be en- tered as prototypes pursuant to this section if they meet all applicable pro- visions of law and otherwise meet the definition of prototypes in paragraph (b)(1) of this section.
(iv) Articles excluded from being proto- types. Articles that are in fact subject at the time of entry to quantitative re- strictions, antidumping orders or coun- tervailing duty orders are excluded from being classified as prototypes under this section.
(c) Sale of prototype following use—(1) Sale. Prototypes or any part(s) of pro- totypes, after having been used for the purposes for which they were entered or withdrawn under HTSUS subheading 9817.85.01, may only be sold as scrap, waste, or for recycling. This includes a prototype or any part thereof that is incorporated into another product, as scrap, waste, or recycled material. If sold as scrap, waste, or for recycling, applicable duty must be paid on the prototypes or parts as provided in para- graph (c)(3) of this section, at the rate of duty in effect for such scrap, waste, or recycled materials at the time the prototypes were entered or withdrawn for consumption.
(2) Notice of sale required. If, after a prototype has been used for the pur- poses contemplated in HTSUS sub- heading 9817.85.01, the prototype or any part(s) of the prototype (including a prototype or any part that is incor- porated into another product) is sold as scrap, waste, or for recycling, the im- porter must provide notice of such sale to the port director where the entry or withdrawal of the prototype was made. A notice, in the manner authorized in paragraph (c)(3) of this section, must be submitted in connection with the sale, whether or not duty is payable. The notice should not be submitted prior to the submission of proof of ac- tual use, should such proof of actual use be requested by the port director (see paragraph (a)(2)(ii) of this section).
(3) Form and content of notice; tender of duty. While no particular form is re- quired for the notice of sale, a con- sumption entry (CBP Form 7501), ap- propriately modified, or an electronic equivalent as authorized by CBP, may be used for this purpose. The notice may be a blanket notice covering all those sales described in paragraph (c)(2) of this section that occur over a quarterly (3-month) calendar period. Such notice must be filed within 10 business days of the end of the related quarterly period in which the sale(s)
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occurred. If an article sold is dutiable, the payment of any duty due must be forwarded together with the notice (see paragraph (c)(1) of this section). If the notice is filed electronically, payment of any duty owed will be handled through the Automated Clearinghouse (see § 24.25 of this chapter). The notice of sale must be executed by the im- porter, or other person having knowl- edge of the facts surrounding the sale, and must include the following:
(i) The identity of the prototype; the consumption entry number under which it was imported; a copy of the declaration of actual use, if proof of ac- tual use was requested under paragraph (a)(2)(ii) of this section; and a detailed description of the condition of the pro- totype following use for the intended permissible purposes, including any damage, degradation or deterioration to the article resulting from such use and/or otherwise resulting to the arti- cle from any other cause prior to its sale for scrap, waste, or recycling;
(ii) The name and address of the party to whom the article was sold, and (if known) the use to which the party intends to put the article;
(iii) The HTSUS subheading number for scrap, waste, or recycled material, as applicable, claimed in connection with the sale of the prototype, together with the corresponding rate of duty in effect at the time the prototype was originally imported for consumption;
(iv) The value of the prototype arti- cle (if dutiable and the duty owed is based upon value) (see paragraph (e)(2) of this section); and
(v) The title of the party executing the declaration and the date of execu- tion.
(d) Prototypes not sold following use. As to those prototypes or parts of pro- totypes that, after having been used as prescribed under HTSUS subheading 9817.85.01, are disposed of otherwise than by sale (see paragraph (c)(1) of this section), there is no requirement that the importer notify CBP of any such alternative disposition. Nor are there any dutiable consequences that ensue from any disposition of the mer- chandise after the merchandise’s use under HTSUS subheading 9817.85.01 other than sale to the extent author-
ized under paragraph (c)(1) of this sec- tion.
(e) Recordkeeping; retention and pro- duction—(1) Recordkeeping. The im- porter must be prepared to submit to the CBP officer, if requested, any infor- mation, including any supporting docu- ments, reports and records, as was nec- essary for the preparation of the dec- laration of use, if the declaration of use was requested under paragraph (a)(2)(ii) of this section, and the notice of sale, if applicable under paragraph (c)(3) of this section. The notices, together with any related supporting evidence, may be subject to such verification as the port director reasonably deems nec- essary. Supporting documentary evi- dence must be made available to the CBP officer, upon request, for a period of five years (see § 163.4(a) of this chap- ter) from the date of filing in complete and proper form, the declaration of use, if requested, and, if applicable, the no- tice of sale. The supporting records must be made available to the CBP of- ficer upon request in accordance with § 163.6 of this chapter.
(i) Documents supporting the proof (declaration) of actual use must:
(A) Establish that the identity and description of the prototype article is the same article that the consumption entry was made for under subheading 9817.85.01, HTSUS; and
(B) Describe the circumstances of the use of the article; the operations, test- ing, review, manipulation, experimen- tation, and/or other exercises that are being and/or that have been conducted in connection with the prototype; and the location, such as the plant or pro- duction facility, where these activities occurred, sufficient to demonstrate that the purposes enumerated in HTSUS subheading 9817.85.01 are tak- ing and/or have actually taken place.
(ii) Documents supporting the notice of sale must establish that:
(A) The identity of the prototype sold is the same article for which a con- sumption entry was made under sub- heading 9817.85.01 HTSUS when it was imported, and that the article was in the condition described in the notice of sale;
(B) The article was sold to the party identified in the notice of sale;
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(C) The HTSUS subheading number for scrap, waste, or recycled material, as applicable, claimed in connection with the sale of the prototype is accu- rate;
(D) The date that the prototype was originally imported for consumption, and the corresponding rate of duty in effect at the time for the applicable HTSUS subheading; and
(E) The value of the prototype article (if dutiable and the duty owed is based upon value) (see paragraph (e)(2) of this section) as claimed in the notice of sale is accurate.
(2) Relevant value for used prototype or parts sold. For purposes of this section, with respect to any duty owed on pro- totypes or parts of prototypes that are sold as scrap, or waste, or for recy- cling, where the duty owed is based upon value, the relevant value is the market value of the prototypes or parts, based upon their character and condition following use for the pur- poses prescribed in HTSUS subheading 9817.85.01. The relevant value should take into consideration any damage, degradation or deterioration to the prototypes or parts resulting from their use as a prototype and/or other- wise resulting to the articles from any other cause prior to their sale as scrap, waste, or for recycling. The market value will generally be measured by the selling price. Should a prototype or part of a prototype become a compo- nent of another product that is sold as scrap, waste, or recycled material, the relevant market value would be that portion of the selling price attributable to the component (prototype or part) as provided in this paragraph.
(f) Articles admitted under TIB—(1) Duty-free entry available. Under the pro- cedure presented in paragraph (f)(2) of this section, an entry of an article made under a temporary importation bond (TIB) solely for testing, experi- mental or review purposes under HTSUS subheading 9813.00.30 may be converted into a duty-free entry under HTSUS subheading 9817.85.01, if the fol- lowing conditions exist:
(i) The article meets the definition for ‘‘prototypes’’ in paragraph (b) of this section (U.S. Note 6(a) to sub- chapter XVII, chapter 98, HTSUS); and
(ii) The TIB entry for the article was in effect and had not been closed, and the TIB period for the article had not expired, as of November 9, 2000.
(2) Procedure for converting TIB entry to duty-free entry—(i) Importer request. The importer must submit a written request, or an electronic equivalent as authorized by CBP, that a TIB entry made under HTSUS subheading 9813.00.30, which was in effect and had not been closed, and for which the TIB period had not expired, as of November 9, 2000, be converted instead into a duty-free consumption entry under HTSUS subheading 9817.85.01.
(ii) Action by CBP. CBP will convert the TIB entry under HTSUS sub- heading 9813.00.30 to a duty-free entry under HTSUS subheading 9817.85.01, provided that the port director is satis- fied that the conditions set forth in paragraphs (f)(1)(i) and (f)(1)(ii) of this section have been met. When the TIB entry is converted, the bond will be cancelled and the entry closed. Once the conversion is complete, the port di- rector will provide a courtesy acknowl- edgment to this effect to the importer in writing or electronically.
[CBP Dec. 04–36, 69 FR 63449, Nov. 2, 2004]
§§ 10.92–10.97 [Reserved]
FLUXING MATERIAL
§ 10.98 Copper-bearing fluxing mate- rial.
(a) For the purpose of this section, ores usable as a flux or sulphur rea- gent, mentioned in the provision for such ores in subheading 2603.00.00, Har- monized Tariff Schedule of the United States, shall include only ores which contain by weight not over 15 percent copper.
(b) [Reserved] (c) There shall be filed in connection
with the entry of such copper-bearing ores, either for consumption or ware- house, a declaration of the importer that the material is to be used for fluxing purposes only. In the case of a consumption entry, the estimated tax shall be deposited at the time of entry. Liquidation of entries shall be sus- pended pending proof of use for fluxing purposes as hereinafter provided.
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(d) Samples of the material shall be taken in accordance with the commer- cial method in effect at the plant if to be used in a bonded smelting ware- house, or in accordance with §§ 151.52 through 151.55 of this chapter if entered for consumption, and the copper con- tent thereof shall be determined by the Government chemist in accordance with the assay.
(e) The management of the smelting or converting plant shall file with the appropriate Customs officer at the port or ports where the entries are to be liq- uidated, a statement based on its records of operation for each quarterly period showing for each furnace or con- verter the total quantity of material charged during each month or part thereof of each quarter, the total quan- tity of material used for fluxing pur- poses, and the quantity of imported ores used for fluxing purposes for which free entry was claimed under the above-mentioned provision, together with the copper content of such im- ported ores computed in accordance with the Government assay. If the quantity of ores used for fluxing pur- poses in any furnace or converter dur- ing any month or part thereof of any quarter is in excess of 25 percent of the charge of such furnace or converter, the quarterly statement shall be ac- companied by an explanation of the ne- cessity for using such quantity for fluxing purposes.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17445, July 2, 1973; T.D. 87– 75, 52 FR 20067, May 29, 1987; T.D. 89–1, 53 FR 51251, Dec. 21, 1988]
ETHYL ALCOHOL
§ 10.99 Importation of ethyl alcohol for nonbeverage purposes.
(a) If claim is made by an importer other than the United States or a gov- ernmental agency thereof for the clas- sification of ethyl alcohol of an alco- holic strength by volume of 80 percent volume or higher under subheading 2207.10.60, Harmonized Tariff Schedules of the United States, the importer or his agent shall file in connection with the entry a declaration that the alco- hol is to be used for nonbeverage pur- poses only and whether the alcohol is to be used for fuel purposes. Customs
shall release the alcohol for transfer, under internal revenue bond, to a dis- tilled spirits plant upon deposit of esti- mated duty, if any, and without the payment of the internal revenue tax upon receipt of a transfer record for bulk spirits. In addition, a package gauge record must be submitted to Customs if the alcohol is in packages, as specified in subpart I of part 251, Bu- reau of Alcohol, Tobacco and Firearms (BATF) Regulations (27 CFR part 251, subpart I). The transfer shall be accom- plished in accordance with subpart L of part 251, Bureau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart L).
(b) An appropriate BATF permit shall be filed with Customs in connec- tion with the withdrawal of ethyl alco- hol from Customs custody by the United States or any governmental agency thereof for its own use for non- beverage purposes. Such permit shall be filed before release under the entry without the deposit of estimated du- ties, if any, and internal revenue tax, or before release in accordance with the provisions of § 141.102(d) of this chapter. (See subpart M of part 251, Bu- reau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 251, subpart M)).
(c) The procedures for the withdrawal free of tax on the entry of ethyl alcohol for nonbeverage purposes from the Vir- gin Islands are found in subpart O of part 250, Bureau of Alcohol, Tobacco and Firearms Regulations (27 CFR part 250, subpart O).
[T.D. 89–65, 54 FR 28413, July 6, 1989]
UNITED STATES GOVERNMENT IMPORTATIONS
§ 10.100 Entry, examination, and tariff status.
Except as otherwise provided for in §§ 10.101, 10.102, 10.104, 141.83(d)(8), 141.102(d), or elsewhere in this chapter, importations made by or for the ac- count of any agency or office of the United States Government are subject to the usual Customs entry and exam- ination requirements. In the absence of express exemptions from duty, such as are contained in subheadings 9808.00.10, 9808.00.20, 9808.00.30, 9808.00.40, 9808.00.50,
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9808.00.60, 9808.00.70, or other sub- headings in the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) providing for free entry, such importations are also subject to duty.
[T.D. 77–23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 89–1, 53 FR 51251, Dec. 21, 1988; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.101 Immediate delivery. (a) Shipments entitled to immediate de-
livery. Shipments consigned to or for the account of any agency or office of the United States Government, or to an officer or official of any such agency in his official capacity, shall be re- garded for purposes of these regula- tions as shipments the immediate de- livery of which is necessary within the purview of section 448(b), Tariff Act of 1930, as amended (19 U.S.C. 1448(b)).
(b) Immediate delivery applications. The shipments described in the pre- ceding paragraph may be released upon the filing of immediate delivery appli- cations on Customs Form 3461 as set forth in subpart A of part 142 of this chapter. Such applications may be lim- ited to particular shipments or may cover all shipments imported by the Government agency making the appli- cation. They may be approved for spe- cific periods of time or for indefinite periods of time, provided in either case they are supported by carrier’s certifi- cates and stipulations as provided for in paragraph (c) of this section.
(c) Carrier’s certificates and stipula- tions. Before the release of a shipment under an immediate delivery permit, evidence of the right of the applicant to make entry for the articles shall be furnished the port director in accord- ance with the provisions of §§ 141.11 and 141.12 of this chapter.
(d) Bond. No bond shall be required in support of an immediate delivery appli- cation provided for in this section if a stipulation in the form as set forth below is filed with the port director in connection with the application:
I, llll, llll (Title), a duly author- ized representative of the —————————— llllllllllllllllllllllll
(Name of United States Government depart- ment or agency) stipulate and agree on be- half of such department or agency that all applicable provisions of the Tariff Act of
1930, as amended, and the regulations there- under, and all other laws and regulations, re- lating to the release and entry of merchan- dise will be observed and complied with in all respects.
———————————— (Signature)
(e) Timely entries required. If proper entries for consumption for importa- tions released under these regulations are not filed within a reasonable time, appropriate steps shall be taken to in- sure the prompt filing of such entries.
[T.D. 77–23, 42 FR 2310, Jan. 11, 1977, as amended by T.D. 87–75, 52 FR 20067, May 29, 1987]
§ 10.102 Duty-free entries.
(a) Invoice or declaration. No invoice or other declaration of the shipper shall be required for shipments ex- pressly exempt from duty as provided in subheadings 9808.00.10, 9808.00.20, 9808.00.30, 9808.00.40, 9808.00.50, 9808.00.60, 9808.00.70, or other subheadings in the Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202) providing for free entry. However, the importing Government agency or office shall present any invoice, memo- randum invoice, or bill pertaining to the merchandise in its possession or available to it, or, if no such invoice or bill is available, a pro forma invoice prepared in accordance with § 141.85 of this chapter, setting forth adequate in- formation for examination and deter- mination of the dutiable status of the merchandise. In addition, the port di- rector shall only admit articles free of duty under subheadings 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 U.S.C. 1202), upon the receipt of a certificate executed in the manner and form de- scribed in paragraph (b) of this section.
(b) Certification. One of the following certificates executed by a duly author- ized officer or official of the appro- priate Government agency or office is required for free entry of articles under subheadings 9808.00.30, 9808.00.40, or 9808.00.50, HTSUS (19 U.S.C. 1202). The certificates may be printed, stamped, or typewritten on the Customs entry or withdrawal form, Customs Form 7501, or on a separate paper attached to the entry or withdrawal form filed by the Government agency or office, provided
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the certification is clearly and unmis- takably identified with the articles covered by the entry or withdrawal.
(1) Articles for military departments, subheading 9808.00.30, HTSUS. I certify that the procurement of this material constituted an emergency purchase of war material abroad by the Depart- ment of the (name of military depart- ment), and it is accordingly requested that such material be admitted free of duty pursuant to subheading 9808.00.30, HTSUS.
llllllllllllllllllllllll
(Name) llllllllllllllllllllllll
(Title), who has been designated to execute free-entry certificates for the above-named department.
llllllllllllllllllllllll
(Grade or Rank) (Organization)
(2) Articles for the Defense Logistics Agency, subheading 9808.00.40, HTSUS. Pursuant to subheading 9808.00.40, HTSUS, I hereby certify that the above-described materials are strategic and critical materials procured under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e).
llllllllllllllllllllllll
(Name) llllllllllllllllllllllll
(Title), Defense Logistics Agency, who has been duly authorized to execute the above certificate.
(3) Articles for the Department of En- ergy, subheading 9808.00.50, HTSUS. I certify to the Secretary of the Treas- ury that the above-described materials are source materials purchased abroad, the admittance of which is necessary in the interest of the common defense and security, in accordance with sub- heading 9808.00.50, HTSUS.
llllllllllllllllllllllll
(Name) llllllllllllllllllllllll
(Title), who has been authorized to execute free-entry certificates for the Department of Energy.
(c) Release of shipments. Shipments for which free entry has been or will be claimed under subheading 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 U.S.C. 1202), shall be released after only such examination as is necessary to identify them.
(d) Entry in Government name. All ma- terials for which free entry is claimed
under subheading 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 U.S.C. 1202), shall be entered, or withdrawn from ware- house, for consumption in the name of the Government department whose rep- resentative executes the certificate set forth in § 10.102(b) unless exemption from this requirement is specifically authorized by the port director.
[T.D. 77–23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 85–123, 50 FR 29953, July 23, 1985; T.D. 89–1, 53 FR 51251, Dec. 21, 1988; T.D. 93–44, 58 FR 34523, June 28, 1993; T.D 95–81, 60 FR 52295, Oct. 6, 1995]
§ 10.103 American goods returned.
(a) Certificate required. Articles en- tered, or withdrawn from warehouse, for consumption in the name of an agency or office of the United States Government (with the exception of military scrap belonging to the Depart- ment of Defense) may be admitted free of duty under subheading 9801.00.10, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202), upon the filing of a certificate on the letterhead of the agency or office in the following form in lieu of other entry documentation:
I hereby certify: 1. That the following articles imported in
the llllllllllll (Name of Carrier) at the port of llllllllllll (Port) on llllll (Date) consist of returned products which are the growth, produce, or manufacture of the United States, and have been returned to the United States without having been advanced in value or improved in condition by any process of manufacture or other means, and that no drawback has been or will be claimed on such articles, and that the articles currently belonging to and are for the further use of llllllllllll (Agency or Office)
Number of con- tainers
Bill of lading No. 1
General description of articles
1 If shipment arrives in the United States on a commercial carrier.
2. That the shipment does not contain military scrap.
3. That the shipment is entitled to entry under subheading 9801.00.10, Harmonized Tar- iff Schedule of the United States (HTSUS) free of duty.
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4. That I am a military installation trans- portation officer having knowledge of the facts involved in this certificate.
or I am an officer or official authorized by
llllllll (Agency or Office) (Which- ever is applicable) to execute this certificate. llllllllllllllllllllllll
(Name) llllllllllllllllllllllll
(Rank and branch of service or Agency or Office)
(b) Combined certificate when articles are intermingled. When articles claimed to be free under subheading 9801.00.10 and other articles claimed to be free under subheadings 9808.00.30, 9808.00.40, 9808.00.50, HTSUS (19 U.S.C. 1202), are intermingled in a single shipment in a manner which precludes separation for the purpose of making claims for free entry under the separate categories, all the articles may be covered by a com- bined certificate which follows the re- quirements of § 10.102(b) and paragraph (a) of this section.
(c) Execution of certificate. The certifi- cate required by paragraph (a) of this section may be executed by any mili- tary installation transportation officer having knowledge of the facts or by any other officer or official specifically designated or authorized to execute such certificates by the importing Gov- ernment agency or office. If the mer- chandise arrived on a commercial car- rier, the entry shall be supported by evidence of the right to make it.
[T.D. 77–23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89–1, 53 FR 51251, Dec. 21, 1988]
§ 10.104 Temporary importation en- tries for United States Government agencies.
The entry of articles brought into the United States temporarily by an agency or office of the United States Government and claimed to be exempt from duty under Chapter 98, Sub- chapter XIII, Heading 9813, Harmonized Tariff Schedule of the United States (HTSUS), shall be made on Customs Form 7501. No bond shall be required if the agency or office files a stipulation in the form set forth in § 141.102(d) of this chapter. In those cases in which the provisions of Chapter 98, Sub- chapter XIII, HTSUS (19 U.S.C. 1202),
are not met, however, the port director will proceed as if a bond had been filed to cover the particular importation. Articles temporarily imported by a Government agency or office under this section are entitled to immediate de- livery under the procedures set forth in § 10.101.
[T.D. 77–23, 42 FR 2311, Jan. 11, 1977, as amended by T.D. 89–1, 53 FR 51251, Dec. 21, 1988]
WHEAT
§ 10.106 [Reserved]
RESCUE AND RELIEF WORK
§ 10.107 Equipment and supplies; ad- mission.
(a) There shall be admitted without entry and without the payment of duty or any tax imposed upon or by reason of importation of any article described in section 322(b), Tariff Act of 1930, as amended, subject to compliance with the following conditions:
(1) Before importation or as soon thereafter as possible, and in every case before the expiration of 10 days after importation, a report shall be made to the nearest Customs officer by the person in charge of sending the ar- ticle from the foreign country, or by the person for whose account it was brought into the United States, stating the character, quantity, destination, and use to be made of the article.
(2) If practicable, the article shall be exported under Customs supervision. In any other case a report shall be made by the person in charge of the expor- tation as soon as possible after expor- tation to the Customs officer to whom the arrival was reported, stating the character, quantity, and circumstances of the exportation.
(b) In the case of each article admit- ted under paragraph (a) of this section, the port director shall satisfy himself as to whether the article was exported within a reasonable time, or that it has been properly expended or destroyed. If an article is so far destroyed, in con- nection with a use contemplated for it by section 322 (b) that it has only a sal- vage value, it shall not be required to be exported.
(c) Any article admitted under para- graph (a) of this section which is used
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in the United States otherwise than for a purpose contemplated for it by sec- tion 322(b), or which is not exported within 90 days after its arrival in the United States, or within such longer time as may be specially authorized by the port director or Headquarters, U.S. Customs Service, shall be seized and forfeited to the United States.
[28 FR 14663, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988]
PRODUCTS EXPORTED UNDER LEASE AND REIMPORTED
§ 10.108 Entry of reimported articles exported under lease.
Free entry shall be accorded under subheading 9801.00.20, Harmonized Tar- iff Schedule of the United States (HTSUS), whenever it is established to the satisfaction of the port director that the article for which free entry is claimed was duty paid on a previous importation or was previously entered free of duty pursuant to the Caribbean Basin Economic Recovery Act or Title V of the Trade Act of 1974, is being re- imported without having been ad- vanced in value or improved in condi- tion by any process of manufacture or other means, was exported from the United States under a lease or similar use agreement, and is being reimported by or for the account of the person who imported it into, and exported it from, the United States.
[T.D. 94–40, 59 FR 17474, Apr. 13, 1994]
STRATEGIC MATERIALS OBTAINED BY BARTER OR EXCHANGE
§ 10.110 [Reserved]
LATE FILING OF FREE ENTRY AND REDUCED DUTY DOCUMENTS
§ 10.112 Filing free entry documents or reduced duty documents after entry.
Whenever a free entry or a reduced duty document, form, or statement re- quired to be filed in connection with the entry is not filed at the time of the entry or within the period for which a bond was filed for its production, but failure to file it was not due to willful negligence or fraudulent intent, such document, form, or statement may be
filed at any time prior to liquidation of the entry or, if the entry was liq- uidated, before the liquidation becomes final. See § 113.43(c) of this chapter for satisfaction of the bond and cancella- tion of the bond charge.
[T.D. 74–227, 39 FR 32015, Sept. 4, 1974]
INSTRUMENTS AND APPARATUS FOR EDU- CATIONAL AND SCIENTIFIC INSTITU- TIONS
§ 10.114 General provisions.
The consolidated regulations of the Commerce and Treasury Departments relating to the entry of instruments and apparatus for educational and sci- entific institutions are contained in 15 CFR part 301.
[T.D. 82–224, 47 FR 53727, Nov. 29, 1982]
§§ 10.115–10.119 [Reserved]
VISUAL OR AUDITORY MATERIALS
§ 10.121 Visual or auditory materials of an educational, scientific, or cul- tural character.
(a) Where photographic film and other articles described in subheading 9817.00.40, Harmonized Tariff Schedule of the United States (HTSUS), are claimed to be free of duty under sub- heading 9817.00.40, HTSUS, there must be filed, in connection with the entry covering such articles, a document issued by the U.S. Department of State certifying that it has determined that the articles are visual or auditory ma- terials of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character as required by U.S. note 1(a)(i), Sub- chapter XVII, chapter 98, HTSUS.
(b) Articles entered under subheading 9817.00.40, HTSUS, will be released from CBP custody prior to submission of the document required in paragraph (a) of this section only upon the deposit of estimated duties with the port direc- tor. Liquidation of an entry which has been released under this procedure will be suspended for a period of 314 days
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from the date of entry or until the re- quired document is submitted, which- ever comes first. In the event that doc- umentation is not submitted before liq- uidation, the merchandise will be clas- sified and liquidated in the ordinary course, without regard to subheading 9817.00.40, HTSUS.
[CBP Dec. 10–33, 75 FR 69585, Nov. 15, 2010; CBP Dec. 12–02, 77 FR 10369, Feb. 22, 2012]
RATE OF DUTY DEPENDENT UPON ACTUAL USE
§ 10.131 Circumstances in which appli- cable.
The provisions of §§ 10.131 through 10.139 are applicable in those cir- cumstances in which the rate of duty applicable to merchandise is dependent upon actual use, unless there is a spe- cific provision in this part which gov- erns the treatment of the merchandise. However, specific marking or certifi- cation requirements, such as those for bolting cloths in section 10.58, may be applicable to merchandise subject to the provisions of sections 10.131–10.139.
[T.D. 71–139, 36 FR 10726, June 2, 1971, as amended by T.D. 86–118, 51 FR 22515, June 20, 1986]
§ 10.132 [Reserved]
§ 10.133 Conditions required to be met. When the tariff classification of any
article is controlled by its actual use in the United States, three conditions must be met in order to qualify for free entry or a lower rate of duty unless the language of the particular subheading of the Harmonized Tariff Schedule of the United States applicable to the merchandise specifies other conditions. The conditions are that:
(a) Such use is intended at the time of importation.
(b) The article is so used. (c) Proof of use is furnished within 3
years after the date the article is en- tered or withdrawn from warehouse for consumption.
[T.D. 71–139, 36 FR 10726, June 2, 1971, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988]
§ 10.134 Declaration of intent. A showing of intent by the importer
as to the actual use of imported mer-
chandise shall be made by filing with the entry for consumption or for ware- house a declaration as to the intended use of the merchandise, or by entering the proper subheading of an actual use provision of the Harmonized Tariff Schedule of the United States (HTSUS) and the reduced or free rate of duty on the entry form. Entry made under an actual use provision of the HTSUS may be construed as a declaration that the merchandise is entered to be used for the purpose stated in the HTSUS, pro- vided the port director is satisfied the merchandise will be so used. However, the port director shall require a writ- ten declaration to be filed if he is not satisfied that merchandise entered under an actual use provision will be used for the purposes stated in the HTSUS.
[T.D. 71–139, 36 FR 10726, June 2, 1971, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988]
§ 10.135 Deposit of duties. When the requirement of § 10.134 has
been met the merchandise may be en- tered or withdrawn from warehouse for consumption without deposit of duty when proof of use will result in free entry, or with deposit of duty at the lower rate when proof of use will result in a lower rate of duty.
[T.D. 71–139, 36 FR 10726, June 2, 1971, as amended by T.D. 84–213, 49 FR 41166, Oct. 19, 1984]
§ 10.136 Suspension of liquidation. Liquidation of an entry covering
merchandise for which a declaration of intent has been made pursuant to § 10.134 and any required deposit of du- ties made, shall be suspended until proof of use is furnished or the 3-year period allowed for production thereof has expired.
[T.D. 71–139, 36 FR 10726, June 2, 1971]
§ 10.137 Records of use. (a) Maintenance by importer. The im-
porter shall maintain accurate and de- tailed records showing the use or other disposition of the imported merchan- dise. The burden shall be on the im- porter to keep records so that the claim of actual use can be readily es- tablished.
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(b) Retention of records. The importer shall retain records of use or disposi- tion for a period of 3 years from the date of liquidation of the entry.
(c) Examination of records. The rec- ords required to be kept by paragraph (a) of this section shall be available at all times for examination and inspec- tion by an authorized Customs officer.
[T.D. 71–139, 36 FR 10726, June 2, 1971]
§ 10.138 Proof of use. Within 3 years from the date of entry
or withdrawal from warehouse for con- sumption, the importer shall submit in duplicate in support of his claim for free entry or for a reduced rate of duty a certificate executed by (1) the super- intendent or manager of the manufac- turing plant, or (2) the individual end- user or other person having knowledge of the actual use of the imported arti- cle. The certificate shall include a de- scription of the processing in sufficient detail to show that the use con- templated by the law has actually taken place. A blanket certificate cov- ering all purchases of a given type of merchandise from a particular im- porter during a given period, or all such purchases with specified excep- tions, may be accepted for this pur- pose, provided the importer shall fur- nish a statement showing in detail, in such manner as to be readily identified with each entry, the merchandise which he sold to such manufacturer or end-user during such period.
[T.D. 71–139, 36 FR 10727, June 2, 1971]
§ 10.139 Liquidation. (a) In general. Upon satisfactory proof
of timely use of the merchandise for the purpose specified by law, the entry shall be liquidated free of duty or at the lower rate of duty specified by law. When such proof is not filed within 3 years from the date of entry or with- drawal from warehouse for consump- tion, the entry shall be liquidated duti- able under the appropriate subheading of the Harmonized Tariff Schedule of the United States.
(b) Exception for blackstrap molasses. An entry covering blackstrap molasses, as hereinafter defined, may be accepted and liquidated with duty at the lower rate after the filing of the declaration
of intent required by § 10.134 and the de- posit of estimated duties required by § 10.135 without compliance with §§ 10.136, 10.137, and 10.138. Blackstrap molasses is ‘‘final’’ molasses prac- tically free from sugar crystals, con- taining not over 58 percent total sugars and having a ratio of
total sugars × 100/Brix
not in excess of 71. In the event of doubt, an ash determination may be made. An ash content of not less than 7 percent indicates a blackstrap molas- ses within the meaning of this para- graph.
[T.D. 71–139, 36 FR 10727, June 2, 1971, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988]
IMPORTATIONS NOT OVER $200 AND BONA FIDE GIFTS
§ 10.151 Importations not over $200. Subject to the conditions in § 10.153 of
this part, the port director shall pass free of duty and tax any shipment of merchandise, as defined in § 101.1 of this chapter, imported by one person on one day having a fair retail value, as evi- denced by an oral declaration or the bill of lading (or other document filed as the entry) or manifest listing each bill of lading, in the country of ship- ment not exceeding $200, unless he has reason to believe that the shipment is one of several lots covered by a single order or contract and that it was sent separately for the express purpose of securing free entry therefor or of avoiding compliance with any perti- nent law or regulation. Merchandise subject to this exemption shall be en- tered under the informal entry proce- dures (see subpart C, part 143, and §§ 128.24, 145.31, 148.12, and 148.62, of this chapter).
[T.D. 94–51, 59 FR 30293, June 13, 1994, as amended by T.D. 95–31, 60 FR 18990, Apr. 14, 1995; T.D. 95–31, 60 FR 37875, July 24, 1995; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
§ 10.152 Bona-fide gifts. Subject to the conditions in § 10.153 of
this part, the port director shall pass free of duty and tax any article sent as a bona-fide gift from a person in a for- eign country to a person in the United States, provided that the aggregate
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fair retail value in the country of ship- ment of such articles received by one person on one day does not exceed $100 or, in the case of articles sent from a person in the Virgin Islands, Guam, and American Samoa, $200. Articles subject to this exemption shall be en- tered under the informal entry proce- dures (see subpart C, part 143, and §§ 145.32, 148.12, 148.51, and 148.64, of this chapter). An article is ‘‘sent’’ for pur- poses of this section if it is conveyed in any manner other than on the person or in the accompanied or unaccom- panied baggage of the donor or donee.
[T.D. 94–51, 59 FR 30293, June 13, 1994]
§ 10.153 Conditions for exemption. Customs officers shall be further
guided as follows in determining whether an article or parcel shall be exempted from duty and tax under § 10.151 or § 10.152:
(a) A ‘‘bona fide gift’’ for purposes of § 10.152 is an article formerly owned by a donor (may be a commercial firm) who gave it outright in its entirety to a donee without compensation or promise of compensation. It does not include articles acquired by purchase, barter, promissory exchange, or similar transaction, nor does it include articles said to be ‘‘given’’ in conjunction with a purchase, barter, promissory ex- change, or similar transaction, such as a so-called bonus article.
(b) A parcel addressed to a person in the United States from an individual in a foreign country which contains a gift should be clearly marked on the out- side to indicate that it contains a gift. Such marking is not conclusive evi- dence of a gift nor is the absence of such marking conclusive evidence that an article is not a gift. Ordinarily an article not exceeding $100 in fair retail value in the country of shipment sent from a person in a foreign country to a person in the United States ($200, in the case of an article sent from a per- son in the Virgin Islands, Guam, and American Samoa) will be recognizable as a gift from the nature of the article and obvious facts surrounding the ship- ment.
(c) A parcel addressed to a person in the United States from a business firm in a foreign country would ordinarily not contain a gift from a donor in the
foreign country. When such a parcel in fact contains an article entitled to free entry under § 10.152, the parcel should be clearly marked to indicate that it contains such a gift and a statement to this effect should be enclosed in the parcel.
(d) Consolidated shipments addressed to one consignee shall be treated for purposes of §§ 10.151 and 10.152 as one importation. The foregoing shall not apply to shipments of bona fide gifts consolidated abroad for shipment to the United States when:
(1) The consolidation for shipment to the United States is in a cargo van or similar containerization which is con- signed to a common carrier, freight forwarder, freight handler, or other public service agency for distribution of the gift packages;
(2) The separate gifts not exceeding $100 in fair retail value in the country of shipment ($200, in the case of arti- cles sent from persons in the Virgin Is- lands, Guam, and American Samoa) in- cluded in the consolidated shipment are before shipment individually wrapped and addressed to the donee in the United States;
(3) Each gift package is marked on the outside to indicate that it contains a gift not exceeding $100 in fair retail value in the country of shipment ($200, in the case of packages sent from per- sons in the Virgin Islands, Guam, and American Samoa); and
(4) Each gift package is separately listed in the name of the addressee- donee on a packing list, manifest, bill of lading, or other shipping document.
(e) No alcoholic beverage, perfume containing alcohol (except where the aggregate fair retail value in the coun- try of shipment of all merchandise con- tained in the shipment does not exceed $5), cigars, or cigarettes shall be ex- empted from the payment of duty and tax under § 10.151 or § 10.152.
(f) The exemptions provided for in § 10.151 or § 10.152 are not to be allowed in respect of any shipment containing one or more gifts having an aggregate fair retail value in the country of ship- ment in excess of $100 ($200, in the case of articles sent from persons in the Vir- gin Islands, Guam, and American Samoa), except as indicated in para- graph (d) of this section. For example,
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an article ordinarily subject to an ad valorem rate of duty but sent as a gift, if the fair retail value exceeds the $100 (or $200) exemption, would be subject to a duty based upon its value under the provisions of section 402 or 402(a), Tar- iff Act of 1930, as amended (19 U.S.C. 1401a or 1402), even though the dutiable value is less than the $100 (or $200) ex- emption.
(g) The exemption referred to in § 10.151 is not to be allowed in the case of any merchandise of a class or kind provided for in any absolute or tariff- rate quota, whether the quota is open or closed. In the case of merchandise of a class or kind provided for in a tariff- rate quota, the merchandise is subject to the rate of duty in effect on the date of entry.
[T.D. 73–175, 38 FR 17445, July 2, 1973, as amended by T.D. 75–185, 40 FR 31753, July 29, 1975; T.D. 78–394, 43 FR 49787, Oct. 25, 1978; T.D. 85–123, 50 FR 29953, July 23, 1985; T.D. 94– 51, 59 FR 30293, June 13, 1994]
GENERALIZED SYSTEM OF PREFERENCES
§ 10.171 General. (a) Statutory authority. Title V of the
Trade Act of 1974 as amended (19 U.S.C. 2461–2467) authorizes the President to establish a Generalized System of Pref- erences (GSP) to provide duty-free treatment for eligible articles im- ported directly from designated bene- ficiary developing countries. Bene- ficiary developing countries and arti- cles eligible for duty-free treatment are designated by the President by Ex- ecutive order in accordance with sec- tions 502(a)(1) and 503(a) of the Trade Act of 1974 as amended (19 U.S.C. 2462(a)(1), 2463(a)).
(b) Country defined. For purposes of §§ 10.171 through 10.178, except as other- wise provided in § 10.176(a), the term ‘‘country’’ means any foreign country, any overseas dependent territory or possession of a foreign country, or the Trust Territory of the Pacific Islands. In the case of an association of coun- tries which is a free trade area or cus- toms union or which is contributing to comprehensive regional economic inte- gration among its members through appropriate means, including but not limited to, the reduction of duties, the President may by Executive order pro-
vide that all members of such associa- tion other than members which are barred from designation under section 502(b) of the Trade Act of 1974 (19 U.S.C. 2462(b)) shall be treated as one country for purposes of §§ 10.171 through 10.178.
[T.D. 76–2, 40 FR 60047, Dec. 31, 1975, as amended by T.D. 80–271, 45 FR 75641, Nov. 17, 1980; T.D. 00–67, 65 FR 59675, Oct. 5, 2000]
§ 10.172 Claim for exemption from duty under the Generalized System of Preferences.
A claim for an exemption from duty on the ground that the Generalized System of Preferences applies shall be allowed by the port director only if he is satisfied that the requirements set forth in this section and §§ 10.173 through 10.178 have been met. If duty- free treatment is claimed at the time of entry, a written claim shall be filed on the entry document by placing the symbol ‘‘A’’ as a prefix to the sub- heading of the Harmonized Tariff Schedule of the United States for each article for which such treatment is claimed.
[T.D. 76–2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77–36, 42 FR 5041, Jan. 27, 1977; T.D. 89–1, 53 FR 51252, Dec. 21, 1988; T.D. 94–47, 59 FR 25569, May 17, 1994; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 10.173 Evidence of country of origin.
(a) Shipments covered by a formal entry—(1) Merchandise not wholly the growth, product, or manufacture of a ben- eficiary developing country. (i) Declara- tion. In a case involving merchandise covered by a formal entry which is not wholly the growth, product, or manu- facture of a single beneficiary devel- oping country, the exporter of the mer- chandise or other appropriate party having knowledge of the relevant facts shall be prepared to submit directly to the port director, upon request, a dec- laration setting forth all pertinent de- tailed information concerning the pro- duction or manufacture of the mer- chandise. When requested by the port director, the declaration shall be pre- pared in substantially the following form:
GSP DECLARATION
I, lllllllllllllllllllll
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(name), hereby declare that the articles de- scribed below were produced or manufac- tured in llllllll (country) by means of processing operations performed in that country as set forth below and were also sub- jected to processing operations in the other country or countries which are members of
the same association of countries as set forth below and incorporate materials pro- duced in the country named above or in any other country or countries which are mem- bers of the same association of countries as set forth below:
Number and date of invoices Description of articles and
quantity
Processing operations per- formed on articles
Materials produced in a bene- ficiary developing country or
members of the same associa- tion
Description of processing op- erations and
country of processing
Direct costs of processing op-
erations
Description of material, pro- duction proc-
ess, and coun- try of produc-
tion
Cost or value of material
Date lllllllllllllllllllll Address lllllllllllllllllll Signature llllllllllllllllll Title lllllllllllllllllllll
(ii) Retention of records and submission of declaration. The information nec- essary for preparation of the declara- tion shall be retained in the files of the party responsible for its preparation and submission for a period of 5 years. In the event that the port director re- quests submission of the declaration during the 5-year period, it shall be submitted by the appropriate party di- rectly to the port director within 60 days of the date of the request or such additional period as the port director may allow for good cause shown. Fail- ure to submit the declaration in a timely fashion will result in a denial of duty-free treatment.
(2) Merchandise wholly the growth, product, or manufacture of a beneficiary developing country. In a case involving merchandise covered by a formal entry which is wholly the growth, product, or manufacture of a single beneficiary de- veloping country, a statement to that effect shall be included on the commer- cial invoice provided to Customs.
(b) Shipments covered by an informal entry. Although the filing of the dec- laration provided for in paragraph (a)(1)(i) of this section will not be re- quired for a shipment covered by an in- formal entry, the port director may re- quire such other evidence of country of origin as deemed necessary.
(c) Verification of documentation. Any evidence of country of origin submitted under this section shall be subject to such verification as the port director deems necessary. In the event that the port director is prevented from obtain- ing the necessary verification, the port director may treat the entry as duti- able.
[T.D. 94–47, 59 FR 25569, May 17, 1994]
§ 10.174 Evidence of direct shipment.
(a) Documents constituting evidence of direct shipment. The port director may require that appropriate shipping pa- pers, invoices, or other documents be submitted within 60 days of the date of entry as evidence that the articles were ‘‘imported directly’’, as that term is defined in § 10.175. Any evidence of di- rect shipment required by the port di- rector shall be subject to such verification as he deems necessary.
(b) Waiver of evidence of direct ship- ment. The port director may waive the submission of evidence of direct ship- ment when he is otherwise satisfied, taking into consideration the kind and value of the merchandise, that the merchandise clearly qualifies for treat- ment under the Generalized System of Preferences.
[T.D. 76–2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 77–27, 42 FR 3162, Jan. 17, 1977]
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§ 10.175 Imported directly defined. Eligible articles shall be imported di-
rectly from a beneficiary developing country to qualify for treatment under the Generalized System of Preferences. For purposes of §§ 10.171 through 10.178 the words ‘‘imported directly’’ mean:
(a) Direct shipment from the bene- ficiary country to the United States without passing through the territory of any other country; or
(b) If the shipment is from a bene- ficiary developing country to the U.S. through the territory of any other country, the merchandise in the ship- ment does not enter into the commerce of any other country while en route to the U.S., and the invoice, bills of lad- ing, and other shipping documents show the U.S. as the final destination; or
(c) If shipped from the beneficiary de- veloping country to the United States through a free trade zone in a bene- ficiary developing country, the mer- chandise shall not enter into the com- merce of the country maintaining the free trade zone, and
(1) The eligible articles must not un- dergo any operation other than:
(i) Sorting, grading, or testing, (ii) Packing, unpacking, changes of
packing, decanting or repacking into other containers,
(iii) Affixing marks, labels, or other like distinguishing signs on articles or their packing, if incidental to oper- ations allowed under this section, or
(iv) Operations necessary to ensure the preservation of merchandise in its condition as introduced into the free trade zone.
(2) Merchandise may be purchased and resold, other than at retail, for ex- port within the free trade zone.
(3) For the purposes of this section, a free trade zone is a predetermined area or region declared and secured by or under governmental authority, where certain operations may be performed with respect to articles, without such articles having entered into the com- merce of the country maintaining the free trade zone; or
(d) If the shipment is from any bene- ficiary developing country to the U.S through the territory of any other country and the invoices and other documents do not show the U.S as the
final destination, the articles in the shipment upon arrival in the U.S. are imported directly only if they:
(1) Remained under the control of the customs authority of the intermediate country;
(2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the latter’s sales agent; and
(3) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition; or
(e)(1) Shipment to the U.S. from a beneficiary developing country which is a member of an association of coun- tries treated as one country under sec- tion 507(2), Trade Act of 1974, as amend- ed (19 U.S.C. 2467(2)), through the terri- tory of a former beneficiary developing country whose designation as a mem- ber of the same association for GSP purposes was terminated by the Presi- dent pursuant to section 502(d), Trade Act of 1974, as amended (19 U.S.C. 2462(d)), provided the articles in the shipment did not enter into the com- merce of the former beneficiary devel- oping country except for purposes of performing one or more of the oper- ations specified in paragraph (c)(1) of this section and except for purposes of purchase or resale, other than at retail, for export.
(2) The designation of the following countries as members of an association of countries for GSP purposes has been terminated by the President pursuant to section 502(d) of the Trade Act of 1974 (19 U.S.C. 2462(d)):
The Bahamas Brunei Darussalam Malaysia Singapore
[T.D. 76–2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 83–144, 48 FR 29684, June 28, 1983; T.D. 84–237, 49 FR 47992, Dec. 7, 1984; T.D. 86–107, 51 FR 20816, June 9, 1986; T.D. 92– 6, 57 FR 2018, Jan. 17, 1992; T.D. 94–47, 59 FR 25569, May 17, 1994; T.D. 95–30, 60 FR 18543, Apr. 12, 1995; T.D. 00–67, 65 FR 59675, Oct. 5, 2000]
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§ 10.176 Country of origin criteria. (a) Merchandise produced in a bene-
ficiary developing country or any two or more countries which are members of the same association of countries—(1) Gen- eral. Except as otherwise provided in this section, any article which either is wholly the growth, product, or manu- facture of, or is a new or different arti- cle of commerce that has been grown, produced, or manufactured in, a bene- ficiary developing country may qualify for duty-free entry under the General- ized System of Preferences (GSP). No article will be considered to have been grown, produced, or manufactured in a beneficiary developing country by vir- tue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations or mere dilution with water or mere dilu- tion with another substance that does not materially alter the characteristics of the article. Duty-free entry under the GSP may be accorded to an article only if the sum of the cost or value of the materials produced in the bene- ficiary developing country or any two or more countries that are members of the same association of countries and are treated as one country under sec- tion 507(2) of the Trade Act of 1974, as amended (19 U.S.C. 2467(2)), plus the di- rect costs of processing operations per- formed in the beneficiary developing country or member countries, is not less than 35 percent of the appraised value of the article at the time it is en- tered.
(2) Combining, packaging, and diluting operations. No article which has under- gone only a simple combining or pack- aging operation or a mere dilution in a beneficiary developing country within the meaning of paragraph (a)(1) of this section will be entitled to duty-free treatment even though the processing operation causes the article to meet the value requirement set forth in that paragraph. For purposes of this sec- tion:
(i) Simple combining or packaging operations and mere dilution include, but are not limited to, the following:
(A) The addition of batteries to de- vices;
(B) Fitting together a small number of components by bolting, glueing, sol- dering, etc.;
(C) Blending foreign and beneficiary developing country tobacco;
(D) The addition of substances such as anticaking agents, preservatives, wetting agents, etc.;
(E) Repacking or packaging compo- nents together;
(F) Reconstituting orange juice by adding water to orange juice con- centrate; and
(G) Diluting chemicals with inert in- gredients to bring them to standard de- grees of strength;
(ii) Simple combining or packaging operations and mere dilution will not be taken to include processes such as the following:
(A) The assembly of a large number of discrete components onto a printed circuit board;
(B) The mixing together of two bulk medicinal substances followed by the packaging of the mixed product into individual doses for retail sale;
(C) The addition of water or another substance to a chemical compound under pressure which results in a reac- tion creating a new chemical com- pound; and
(D) A simple combining or packaging operation or mere dilution coupled with any other type of processing such as testing or fabrication (for example, a simple assembly of a small number of components, one of which was fab- ricated in the beneficiary developing country where the assembly took place); and
(iii) The fact that an article has un- dergone more than a simple combining or packaging operation or mere dilu- tion is not necessarily dispositive of the question of whether that proc- essing constitutes a substantial trans- formation for purposes of determining the country of origin of the article.
(b) [Reserved] (c) Merchandise grown, produced, or
manufactured in a beneficiary developing country. Merchandise which is wholly the growth, product, or manufacture of a beneficiary developing country, or an association of countries treated as one country under section 507(2) of the Trade Act of 1974 (19 U.S.C. 2467(2)) and § 10.171(b), and manufactured products consisting of materials produced only
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in such country or countries, shall nor- mally be presumed to meet the require- ments set forth in this section.
[T.D. 76–2, 40 FR 60048, Dec. 31, 1975, as amended by T.D. 80–271, 45 FR 75641, Nov. 17, 1980; T.D. 00–67, 65 FR 59675, Oct. 5, 2000]
§ 10.177 Cost or value of materials pro- duced in the beneficiary developing country.
(a) ‘‘Produced in the beneficiary devel- oping country’’ defined. For purposes of §§ 10.171 through 10.178, the words ‘‘pro- duced in the beneficiary developing country’’ refer to the constituent ma- terials of which the eligible article is composed which are either:
(1) Wholly the growth, product, or manufacture of the beneficiary devel- oping country; or
(2) Substantially transformed in the beneficiary developing country into a new and different article of commerce.
(b) Questionable origin. When the ori- gin of an article either is not ascertain- able or not satisfactorily demonstrated to the port director, the article shall not be considered to have been pro- duced in the beneficiary developing country.
(c) Determination of cost or value of materials produced in the beneficiary de- veloping country. (1) The cost or value of materials produced in the bene- ficiary developing country includes:
(i) The manufacturer’s actual cost for the materials;
(ii) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(iii) The actual cost of waste or spoil- age (material list), less the value of re- coverable scrap; and
(iv) Taxes and/or duties imposed on the materials by the beneficiary devel- oping country, or an association of countries treated as one country, pro- vided they are not remitted upon ex- portation.
(2) Where the material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by com- puting the sum of:
(i) All expenses incurred in the growth, production, manufacture or as-
sembly of the material, including gen- eral expenses;
(ii) An amount for profit; and (iii) Freight, insurance, packing, and
all other costs incurred in transporting the materials to the manufacturer’s plant.
If the pertinent information needed to compute the cost or value of the mate- rials is not available, the appraising of- ficer may ascertain or estimate the value thereof using all reasonable ways and means at his disposal.
[T.D. 76–2, 40 FR 60049, Dec. 31, 1975, as amended by T.D. 86–118, 51 FR 22515, June 20, 1986]
§ 10.178 Direct costs of processing op- erations performed in the bene- ficiary developing country.
(a) Items included in the direct costs of processing operations. As used in § 10.176, the words ‘‘direct costs of processing operations’’ means those costs either directly incurred in, or which can be reasonably allocated to, the growth, production, manufacture, or assembly of the specific merchandise under con- sideration. Such costs include, but are not limited to:
(1) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchan- dise, including fringe benefits, on-the- job training, and the cost of engineer- ing, supervisory, quality control, and similar personnel;
(2) Dies, molds, tooling, and deprecia- tion on machinery and equipment which are allocable to the specific mer- chandise;
(3) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific merchandise; and
(4) Costs of inspecting and testing the specific merchandise.
(b) Items not included in the direct costs of processing operations. Those items which are not included within the meaning of the words ‘‘direct costs of processing operations’’ are those which are not directly attributable to the merchandise under consideration or are not ‘‘costs’’ of manufacturing the prod- uct. These include, but are not limited to:
(1) Profit; and
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(2) General expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufac- ture, or assembly of the merchandise, such as administrative salaries, cas- ualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
[T.D. 76–2, 40 FR 60049, Dec. 31, 1975]
§ 10.178a Special duty-free treatment for sub-Saharan African countries.
(a) General. Section 506A of the Trade Act of 1974 (19 U.S.C. 2466a) authorizes the President to provide duty-free treatment for certain articles other- wise excluded from duty-free treat- ment under the Generalized System of Preferences (GSP) pursuant to section 503(b)(1)(B) through (G) of the Trade Act of 1974 (19 U.S.C. 2463(b)(1)(B) through (G)) and authorizes the Presi- dent to designate a country listed in section 107 of the African Growth and Opportunity Act (19 U.S.C. 3706) as an eligible beneficiary sub-Saharan Afri- can country for purposes of that duty- free treatment.
(b) Eligible articles. The duty-free treatment referred to in paragraph (a) of this section will apply to any article within any of the following classes of articles, provided that the article in question has been designated by the President for that purpose and is the growth, product, or manufacture of an eligible beneficiary sub-Saharan Afri- can country and meets the require- ments specified or referred to in para- graph (d) of this section:
(1) Watches, except those watches en- tered after June 30, 1989, that the Presi- dent specifically determines, after pub- lic notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions;
(2) Certain electronic articles; (3) Certain steel articles; (4) Footwear, handbags, luggage, flat
goods, work gloves, and leather wear- ing apparel which were not eligible ar- ticles for purposes of the GSP on Janu- ary 1, 1995, as the GSP was in effect on that date;
(5) Certain semimanufactured and manufactured glass products; and
(6) Any other articles which the President determines to be import-sen- sitive in the context of the GSP.
(c) Claim for duty-free treatment. A claim for the duty-free treatment re- ferred to in paragraph (a) of this sec- tion must be made by placing on the entry document the symbol ‘‘D’’ as a prefix to the subheading of the Har- monized Tariff Schedule of the United States for each article for which duty- free treatment is claimed;
(d) Origin and related rules. The provi- sions of §§ 10.171, 10.173, and 10.175 through 10.178 will apply for purposes of duty-free treatment under this sec- tion. However, application of those pro- visions in the context of this section will be subject to the following rules:
(1) The term ‘‘beneficiary developing country,’’ wherever it appears, means ‘‘beneficiary sub-Saharan African country;’
(2) In the GSP declaration set forth in § 10.173(a)(1)(i), the column heading ‘‘Materials produced in a beneficiary developing country or members of the same association’’ should read ‘‘Mate- rial produced in a beneficiary sub-Sa- haran African country or in the U.S.;’’
(3) The provisions of § 10.175(c) will not apply; and
(4) For purposes of determining com- pliance with the 35 percent value con- tent requirement set forth in § 10.176(a):
(i) An amount not to exceed 15 per- cent of the appraised value of the arti- cle at the time it is entered may be at- tributed to the cost or value of mate- rials produced in the customs territory of the United States, and the provi- sions of § 10.177 will apply for purposes of identifying materials produced in the customs territory of the United States and the cost or value of those materials; and
(ii) The cost or value of materials in- cluded in the article that are produced in more than one beneficiary sub-Saha- ran African country may be applied without regard to whether those coun- tries are members of the same associa- tion of countries.
(e) Importer requirements. In order to make a claim for duty-free treatment under this section, the importer:
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(1) Must have records that explain how the importer came to the conclu- sion that the article qualifies for duty- free treatment;
(2) Must have records that dem- onstrate that the importer is claiming that the article qualifies for duty-free treatment because it is the growth of a beneficiary sub-Saharan African coun- try or because it is the product of a beneficiary sub-Saharan African coun- try or because it is the manufacture of a beneficiary sub-Saharan African country. If the importer is claiming that the article is the growth of a bene- ficiary sub-Saharan African country, the importer must have records that indicate that the product was grown in that country, such as a record of re- ceipt from a farmer whose crops are grown in that country. If the importer is claiming that the article is the prod- uct of, or the manufacture of, a bene- ficiary sub-Saharan African country, the importer must have records that indicate that the manufacturing or processing operations reflected in or applied to the article meet the country of origin rules set forth in § 10.176(a) and paragraph (d) of this section. A properly completed GSP declaration in the form set forth in § 10.173(a)(1) is one example of a record that would serve this purpose;
(3) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the declarations or other records referred to in paragraph (e)(2) of this section;
(4) Must have shipping papers that show how the article moved from the beneficiary sub-Saharan African coun- try to the United States. If the im- ported article was shipped through a country other than a beneficiary sub- Saharan African country and the in- voices and other documents from the beneficiary sub-Saharan African coun- try do not show the United States as the final destination, the importer also must have documentation that dem- onstrates that the conditions set forth in § 10.175(d)(1) through (3) were met;
(5) Must have records that dem- onstrate the cost or value of the mate- rials produced in the United States and the cost or value of the materials pro- duced in a beneficiary sub-Saharan Af- rican country or countries and the di-
rect costs of processing operations in- curred in the beneficiary sub-Saharan African country that were relied upon by the importer to determine that the article met the 35 percent value con- tent requirement set forth in § 10.176(a) and paragraph (c) of this section. A properly completed GSP declaration in the form set forth in § 10.173(a)(1) is one example of a record that would serve this purpose; and
(6) Must be prepared to produce the records referred to in paragraphs (e)(1), (e)(2), (e)(4), and (e)(5) of this section within 30 days of a request from Cus- toms and must be prepared to explain how those records and the internal con- trols referred to in paragraph (e)(3) of this section justify the importer’s claim for duty-free treatment.
[T.D. 00–67, 65 FR 59675, Oct. 5, 2000]
CANADIAN CRUDE PETROLEUM
§ 10.179 Canadian crude petroleum subject to a commercial exchange agreement between United States and Canadian refiners.
(a) Crude petroleum (as defined in Chapter 27, Additional U.S. Note 1, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)) produced in Canada may be admitted free of duty if the entry is accompanied by a cer- tificate from the importer establishing that:
(1) The petroleum is imported pursu- ant to a commercial exchange agree- ment between United States and Cana- dian refiners which has been approved by the Secretary of Energy;
(2) An equivalent amount of domestic or duty-paid foreign crude petroleum on which the importer has executed a written waiver of drawback, has been exported to Canada pursuant to the ex- port license and previously has not been used to effect the duty-free entry of like Canadian products; and,
(3) An export license has been issued by the Secretary of Commerce for the petroleum which has been exported to Canada.
(b) The provisions of this section may be applied to:
(1) Liquidated or reliquidated entries if the required certification is filed with the director of the port where the original entry was made on or before
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the 180th day after the date of entry; and
(2) Articles entered, or withdrawn from warehouse, for consumption, pur- suant to a commercial exchange agree- ment.
(c) Verification of the quantities of crude petroleum exported to or im- ported from Canada under such a com- mercial exchange agreement shall be made in accordance with import verification provided in Part 151, Sub- part C, Customs Regulations (19 CFR part 151, subpart C).
[T.D. 81–292, 46 FR 58069, Nov. 30, 1981, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988; T.D. 91–82, 56 FR 49845, Oct. 2, 1991]
CERTAIN FRESH, CHILLED, OR FROZEN BEEF
§ 10.180 Certification. (a) The foreign official’s meat-inspec-
tion certificate required by U.S. De- partment of Agriculture regulations (9 CFR 327.4) shall be modified to include the certification below when fresh, chilled, or frozen beef is to be entered under the provisions of subheadings 0201.20.10, 0201.30.02, 0202.20.02, 0202.20.10, Harmonized Tariff Schedule of the United States (HTSUS). The certifi- cation shall be made, prior to expor- tation of the beef, by an official of the government of the exporting country and filed with Customs with the entry summary or with the entry when the entry summary is filed at the time of entry. The requirements of this section shall be in addition to those require- ments contained in 9 CFR 327.4. Appro- priate officials of the exporting coun- try should consult with the U.S. De- partment of Agriculture as to the beef grades or standards within their coun- try that satisfy the certification re- quirement. Exporters or importers of beef to be entered under the provisions of subheadings 0201.20.10, 0201.30.02, 0202.20.02, 0202.20.10, HTSUS, should consult with the U.S. Department of Agriculture prior to exportation in order to insure that the beef will sat- isfy the certification requirements. This certification is relevant only to U.S. Customs tariff classification and is not applicable to marketing of beef under U.S. Department of Agriculture grading standards, a matter within
U.S. Department of Agriculture’s juris- diction.
CERTIFICATION
I hereby certify to the best of my knowl- edge and belief that the herein described fresh, chilled, or frozen beef, meets the speci- fications prescribed in regulations issued by the U.S. Department of Agriculture (7 CFR 2853.106 (a) and (b)).
(b) Appropriate officials of the fol- lowing countries have agreed with the U.S. Department of Agriculture as to the grades or standards for fresh, chilled, or frozen beef within their re- spective countries which will satisfy the certification requirements of para- graph (a) of this section: Canada.
[T.D. 82–8, 47 FR 945, Jan. 8, 1982, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988; T.D. 97–82, 62 FR 51769, Oct. 3, 1997]
WATCHES AND WATCH MOVEMENTS FROM U.S. INSULAR POSSESSIONS
§§ 10.181–10.182 [Reserved]
CIVIL AIRCRAFT
§ 10.183 Duty-free entry of civil air- craft, aircraft engines, ground flight simulators, parts, components, and subassemblies.
(a) Applicability. Except as provided in paragraph (b) of this section, this section applies to aircraft, aircraft en- gines, and ground flight simulators, in- cluding their parts, components, and subassemblies, that qualify as civil air- craft under General Note 6(b) ofthe Harmonized Tariff Schedule of the United States (HTSUS) by meeting the following requirements:
(1) The aircraft, aircraft engines, ground flight simulators, or their parts, components, and subassemblies, are used as original or replacement equipment in the design, development, testing, evaluation, manufacture, re- pair, maintenance, rebuilding, modi- fication, or conversion of aircraft; and
(2) They are either: (i) Manufactured or operated pursu-
ant to a certificate issued by the Ad- ministrator of the Federal Aviation Administration (FAA) under 49 U.S.C. 44704 or pursuant to the approval of the airworthiness authority in the country of exportation, if that approval is rec- ognized by the FAA as an acceptable substitute for the FAA certificate;
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(ii) Covered by an application for such certificate, submitted to and ac- cepted by the FAA, filed by an existing type and production certificate holder pursuant to 49 U.S.C. 44702 and imple- menting regulations (Federal Aviation Administration Regulations, title 14, Code of Federal Regulations); or
(iii) Covered by an application for such approval or certificate which will be submitted in the future by an exist- ing type and production certificate holder, pending the completion of de- sign or other technical requirements stipulated by the FAA (applicable only to the quantities of parts, components, and subassemblies as are required to meet the stipulation).
(b) Department of Defense or U.S. Coast Guard use. If purchased for use by the Department of Defense or the United States Coast Guard, aircraft, aircraft engines, and ground flight simulators, including their parts, components, and subassemblies, are subject to this sec- tion only if they are used as original or replacement equipment in the design, development, testing, evaluation, man- ufacture, repair, maintenance, rebuild- ing, modification, or conversion of air- craft and meet the requirements of ei- ther paragraph (a)(2)(i) or (a)(2)(ii) of this section.
(c) Claim for admission free of duty. Merchandise qualifying under para- graph (a) or paragraph (b) of this sec- tion is entitled to duty-free admission in accordance with General Note 6, HTSUS, upon meeting the require- ments of this section. An importer will make a claim for duty-free admission under this section and General Note 6, HTSUS, by properly entering quali- fying merchandise under a provision for which the rate of duty ‘‘Free (C)’’ appears in the ‘‘Special’’ subcolumn of the HTSUS and by placing the special indicator ‘‘C’’ on the entry summary. The fact that qualifying merchandise has previously been exported with ben- efit of drawback does not preclude free entry under this section.
(d) Importer certification. In making a claim for duty-free admission as pro- vided for under paragraph (c) of this section, the importer is deemed to cer- tify, in accordance with General Note 6(a)(ii), HTSUS, that the imported mer- chandise is, as described in paragraph
(a) or paragraph (b) of this section, a civil aircraft or has been imported for use in a civil aircraft and will be so used.
(e) Documentation. Each entry sum- mary claiming duty-free admission for imported merchandise in accordance with paragraph (c) of this section must be supported by documentation to verify the claim for duty-free admis- sion, including the written order or contract and other evidence that the merchandise entered qualifies under General Note 6, HTSUS, as a civil air- craft, aircraft engine, or ground flight simulator, or their parts, components, and subassemblies. Evidence that the merchandise qualifies under the gen- eral note includes evidence of compli- ance with paragraph (a)(1) of this sec- tion concerning use of the merchandise and evidence of compliance with the airworthiness certification require- ment of paragraph (a)(2)(i), (a)(2)(ii), or (a)(2)(iii) of this section, including, as appropriate in the circumstances, an FAA certification; approval of air- worthiness by an airworthiness author- ity in the country of export and evi- dence that the FAA recognizes that ap- proval as an acceptable substitute for an FAA certification; an application for a certification submitted to and ac- cepted by the FAA; a type and produc- tion certificate issued by the FAA; and/ or evidence that a type and production certificate holder will submit an appli- cation for certification or approval in the future pending completion of de- sign or other technical requirements stipulated by the FAA and of estimates of quantities of parts, components, and subassemblies as are required to meet design and technical requirements stip- ulated by the FAA. This documenta- tion need not be filed with the entry summary but must be maintained in accordance with the general note and with the recordkeeping provisions of part 163 of this chapter. Customs may request production of documentation at any time to verify the claim for duty-free admission. Failure to produce documentation sufficient to satisfy the port director that the merchandise qualifies for duty-free admission will result in a denial of duty-free treat- ment and may result in such other
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measures permitted under the regula- tions as the port director finds nec- essary to more closely monitor the im- porter’s importations of merchandise claimed to be duty-free under this sec- tion. Proof of end use of the entered merchandise need not be maintained.
(f) Post-entry claim. An importer may file a claim for duty-free treatment under General Note 6, HTSUS, after fil- ing an entry that made no such duty- free claim, by filing a written state- ment with Customs any time prior to liquidation of the entry or prior to the liquidation becoming final. When filed, the written statement constitutes the importer=s claim for duty-free treat- ment under the general note and its certification that the entered merchan- dise is a civil aircraft or has been im- ported for use in a civil aircraft and will be so used. In accordance with General Note 6, HTSUS, any refund re- sulting from a claim made under this paragraph will be without interest, notwithstanding the provision of 19 U.S.C. 1505(c).
(g) Verification. The port director will monitor and periodically audit selected entries made under this section.
[T.D. 02–31, 67 FR 39289, June 7, 2002]
Subpart B—Caribbean Basin Initiative
SOURCE: Sections 10.191 through 10.197 issued by T.D. 84–237, 49 FR 47993, Dec. 7, 1984, unless otherwise noted.
§ 10.191 General. (a) Statutory authority. Subtitle A,
Title II, Pub. L. 98–67, entitled the Car- ibbean Basin Economic Recovery Act (19 U.S.C. 2701–2706) and referred to as the Caribbean Basin Initiative (CBI), authorizes the President to proclaim duty-free treatment for all eligible ar- ticles from any beneficiary country.
(b) Definitions—(1) Beneficiary coun- try. For purposes of § 10.191 through § 10.199 and except as otherwise pro- vided in § 10.195(b), the term ‘‘bene- ficiary country’’ means any country or territory or successor political entity with respect to which there is in effect a proclamation by the President desig- nating such country, territory or suc- cessor political entity as a beneficiary
country in accordance with section 212(a)(1)(A) of the Caribbean Basin Eco- nomic Recovery Act (19 U.S.C. 2702(a)(1)(A)). See General Note 7(a), Harmonized Tariff Schedule of the United States (HTSUS). For purposes of this paragraph, when the word ‘‘former’’ is used in conjunction with the term ‘‘beneficiary country’’, it means a country that ceases to be des- ignated as a beneficiary country under the CBERA because the country has become a party to a free trade agree- ment with the United States. See Gen- eral Note 7(b)(i)(C), HTSUS.
(2) Eligible articles. Except as provided herein, for purposes of § 10.191(a), the term ‘‘eligible articles’’ means any merchandise which is imported di- rectly from a beneficiary country as provided in § 10.193 and which meets the country of origin criteria set forth in § 10.195 or in § 10.198b. The following merchandise shall not be considered el- igible articles entitled to duty-free treatment under the CBI.
(i) Textile and apparel articles which were not eligible articles for purposes of the CBI on January 1, 1994, as the CBI was in effect on that date.
(ii) Footwear not designated on Au- gust 5, 1983, as eligible articles for the purpose of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467).
(iii) Tuna, prepared or preserved in any manner, in airtight containers.
(iv) Petroleum, or any product de- rived from petroleum, provided for in headings 2709 and 2710, HTSUS.
(v) Watches and watch parts (includ- ing cases, bracelets and straps), of whatever type including, but not lim- ited to, mechanical, quartz digital or quartz analog, if such watches or watch parts contain any material which is the product of any country with re- spect to which HTSUS column 2 rates of duty apply.
(vi) Articles to which reduced rates of duty apply under § 10.198a.
(vii) Sugars, sirups, and molasses, provided for in subheadings 1701.11.00 and 1701.12.00, HTSUS, to the extent that importation and duty-free treat- ment of such articles are limited by Additional U.S. Note 4, Chapter 17, HTSUS.
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19 CFR Ch. I (4–1–12 Edition)§ 10.192
(viii) Articles subject to the provi- sions of the subheadings of Subchapter III, from the beginning through 9903.85.21, Chapter 99, HTSUS, to the extent that such provisions have not been modified or terminated by the President pursuant to section 213(e)(5) of the Caribbean Basin Economic Re- covery Act (19 U.S.C. 2703(e)(5)).
(ix) Merchandise for which duty-free treatment under the CBI is suspended or withdrawn by the President pursu- ant to sections 213 (c)(2), (e)(1), or (f)(3) of the Caribbean Basin Economic Re- covery Act (19 U.S.C. 2703 (c)(2), (e)(1), or (f)(3)).
(3) Wholly the growth, product, or man- ufacture of a beneficiary country. For purposes of § 10.191 through § 10.199, the expression ‘‘wholly the growth, prod- uct, or manufacture of a beneficiary country’’ refers both to any article which has been entirely grown, pro- duced, or manufactured in a bene- ficiary country or two or more bene- ficiary countries and to all materials incorporated in an article which have been entirely grown, produced, or man- ufactured in any beneficiary country or two or more beneficary countries, as distinguished from articles or mate- rials imported into a beneficiary coun- try from a non-beneficiary country whether or not such articles or mate- rials were substantially transformed into new or different articles of com- merce after their importation into the beneficiary country.
(4) Entered. For purposes of § 10.191 through § 10.199, the term ‘‘entered’’ means entered, or withdrawn from warehouse for consumption, in the cus- toms territory of the U.S.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988; T.D. 00–68, 65 FR 59657, Oct. 5, 2000; T.D. 01–17, 66 FR 9645, Feb. 9, 2001; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.192 Claim for exemption from duty under the CBI.
A claim for an exemption from duty on the ground that the CBI applies shall be allowed by the port director only if he is satisfied that the require- ments set forth in this section and § 10.193 through § 10.198b have been met. Duty-free treatment may be claimed at the time of filing the entry summary
by placing the symbol ‘‘E’’ as a prefix to the HTSUS subheading number for each article for which such treatment is claimed on that document.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 89–1, 53 FR 51252, Dec. 21, 1988; T.D. 94–47, 59 FR 25570, May 17, 1994; T.D. 00–68, 65 FR 59658, Oct. 5, 2000]
§ 10.193 Imported directly.
To qualify for treatment under the CBI, an article shall be imported di- rectly from a beneficiary country into the customs territory of the U.S. For purposes of § 10.191 through § 10.198b the words ‘‘imported directly’’ mean:
(a) Direct shipment from any bene- ficiary country to the U.S. without passing through the territory of any non-beneficiary country; or
(b) If the shipment is from any bene- ficiary country to the U.S. through the territory of any non-beneficiary coun- try, the articles in the shipment do not enter into the commerce of any non- beneficiary country while en route to the U.S. and the invoices, bills of lad- ing, and other shipping documents show the U.S. as the final destination; or
(c) If the shipment is from any bene- ficiary country to the U.S. through the territory of any non-beneficiary coun- try, and the invoices and other docu- ments do not show the U.S. as the final destination, the articles in the ship- ment upon arrival in the U.S. are im- ported directly only if they:
(1) Remained under the control of the customs authority of the intermediate country;
(2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commericial transaction between the importer and the producer or the latter’s sales agent; and
(3) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984, as amended by T.D. 00–68, 65 FR 59658, Oct. 5, 2000]
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§ 10.194 Evidence of direct shipment. (a) Documents constituting evidence of
direct shipment. The port director may require that appropriate shipping pa- pers, invoices, or other documents be submitted within 60 days of the date of entry as evidence that the articles were ‘‘imported directly’’, as that term is defined in § 10.193. Any evidence of di- rect shipment required shall be subject to such verification as deemed nec- essary by the port director.
(b) Waiver of evidence of direct ship- ment. The port director may waive the submission of evidence of direct ship- ment when otherwise satisfied, taking into consideration the kind and value of the merchandise, that the merchan- dise was, in fact, imported directly and that it otherwise clearly qualifies for treatment under the CBI.
§ 10.195 Country of origin criteria. (a) Articles produced in a beneficiary
country—(1) General. Except as provided herein, any article which is either wholly the growth, product, or manu- facture of a beneficiary country or a new or different article of commerce which has been grown, produced, or manufactured in a beneficiary country, may qualify for duty-free entry under the CBI. No article or material shall be considered to have been grown, pro- duced, or manufactured in a bene- ficiary country by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilu- tion with water or mere dilution with another substance that does not mate- rially alter the characteristics of the article. Duty-free entry under the CBI may be accorded to an article only if the sum of the cost or value of the ma- terial produced in a beneficiary coun- try or countries, plus the direct costs of processing operations performed in a beneficiary country or countries, is not less than 35 percent of the appraised value of the article at the time it is en- tered.
(2) Combining, packaging, and diluting operations. No article which has under- gone only a simple combining or pack- aging operation or a mere dilution in a beneficiary country within the mean- ing of paragraph (a)(1) of this section shall be entitled to duty-free treatment
even though the processing operation causes the article to meet the value re- quirement set forth in that paragraph.
(i) For purposes of this section, sim- ple combining or packaging operations and mere dilution include, but are not limited to, the following processes:
(A) The addition of batteries to de- vices;
(B) Fitting together a small number of components by bolting, glueing, sol- dering etc.;
(C) Blending foreign and beneficiary country tobacco;
(D) The addition of substances such as anticaking agents, preservatives, wetting agents, etc.;
(E) Repacking or packaging compo- nents together;
(F) Reconstituting orange juice by adding water to orange juice con- centrate; and
(G) Diluting chemicals with inert in- gredients to bring them to standard de- grees of strength.
(ii) For purposes of this section, sim- ple combining or packaging operations and mere dilution shall not be taken to include processes such as the following:
(A) The assembly of a large number of discrete components onto a printed circuit board;
(B) The mixing together of two bulk medicinal substances followed by the packaging of the mixed product into individual doses for retail sale;
(C) The addition of water or another substance to a chemical compound under pressure which results in a reac- tion creating a new chemical com- pound; and
(D) A simple combining or packaging operation or mere dilution coupled with any other type of processing such as testing or fabrication (e.g., a simple assembly of a small number of compo- nents, one of which was fabricated in the beneficiary country where the as- sembly took place).
The fact that an article or material has undergone more than a simple com- bining or packaging operation or mere dilution is not necessarily dispositive of the question of whether that proc- essing constitutes a substantial trans- formation for purposes of determining the country of origin of the article or material.
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19 CFR Ch. I (4–1–12 Edition)§ 10.196
(b) Commonwealth of Puerto Rico, U.S. Virgin Islands, and former beneficiary countries—(1) General. For purposes of determining the percentage referred to in paragraph (a) of this section, the term ‘‘beneficiary country’’ includes the Commonwealth of Puerto Rico, U.S. Virgin Islands, and any former beneficiary countries. Any cost or value of materials or direct costs of processing operations attributable to the U.S. Virgin Islands or any former beneficiary country must be included in the article prior to its final expor- tation from a beneficiary country to the United States.
(2) Manufacture in the Commonwealth of Puerto Rico after final exportation. Notwithstanding the provisions of 19 U.S.C. 1311, if an article from a bene- ficiary country is entered under bond for processing or use in manufacturing in the Commonwealth of Puerto Rico, no duty will be imposed on the with- drawal from warehouse for consump- tion of the product of that processing or manufacturing provided that:
(i) The article entered in the ware- house in the Commonwealth of Puerto Rico was grown, produced, or manufac- tured in a beneficiary country within the meaning of paragraph (a) of this section and was imported directly from a beneficiary country within the mean- ing of § 10.193; and
(ii) At the time of its withdrawal from the warehouse, the product of the processing or manufacturing in the Commonwealth of Puerto Rico meets the 35 percent value-content require- ment prescribed in paragraph (a) of this section.
(c) Materials produced in the U.S. For purposes of determining the percentage referred to in paragraph (a) of this sec- tion, an amount not to exceed 15 per- cent of the appraised value of the arti- cle at the time it is entered may be at- tributed to the cost or value of mate- rials produced in the customs territory of the U.S. (other than the Common- wealth of Puerto Rico). In the case of materials produced in the customs ter- ritory of the U.S., the provisions of § 10.196 shall apply.
(d) Textile components cut to shape in the U.S. The percentage referred to in paragraph (c) of this section may be at- tributed in whole or in part to the cost
or value of a textile component that is cut to shape (but not to length, width, or both) in the U.S. (including the Commonwealth of Puerto Rico) from foreign fabric and exported to a bene- ficiary country for assembly into an article that is then returned to the U.S. and entered, or withdrawn from warehouse, for consumption on or after July 1, 1996. For purposes of this para- graph, the terms ‘‘textile component’’ and ‘‘fabric’’ have reference only to goods covered by the definition of ‘‘textile or apparel product’’ set forth in § 102.21(b)(5) of this chapter.
(e) Articles wholly grown, produced, or manufactured in a beneficiary country. Any article which is wholly the growth, product, or manufacture of a beneficiary country, including articles produced or manufactured in a bene- ficiary country exclusively from mate- rials which are wholly the growth, product, or manufacture of a bene- ficiary country or countries, shall nor- mally be presumed to meet the require- ments set forth in paragraph (a) of this section.
(f) Country of origin marking. The gen- eral country of origin marking require- ments that apply to all importations are also applicable to articles imported under the CBI.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984, as amended by T.D. 95–69, 60 FR 46197, Sept. 5, 1995; T.D. 95–69, 60 FR 55995, Nov. 6, 1996; T.D. 00–68, 65 FR 59658, Oct. 5, 2000; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.196 Cost or value of materials pro- duced in a beneficiary country or countries.
(a) ‘‘Materials produced in a bene- ficiary country or countries’’ defined. For purposes of § 10.195, the words ‘‘mate- rials produced in a beneficiary country or countries’’ refer to those materials incorporated in an article which are ei- ther:
(1) Wholly the growth, product, or manufacture of a beneficiary country or two or more beneficiary countries; or
(2) Subject to the limitations set forth in § 10.195(a), substantially trans- formed in any beneficiary country or two or more beneficiary countries into a new or different article of commerce
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which is then used in any beneficiary country in the production or manufac- ture of a new or different article which is imported directly into the U.S.
Example 1. A raw, perishable skin of an ani- mal grown in one beneficiary country is sent to another beneficiary country where it is tanned to create nonperishable ‘‘crust leath- er’’. The tanned product is then imported di- rectly into the U.S. Because the material of which the imported article is composed is wholly the growth, product, or manufacture of one of more beneficiary countries, the en- tire cost or value of that material may be counted toward the 35 percent value require- ment set forth in § 10.195.
Example 2. A raw, perishable skin of an ani- mal grown in a non-beneficiary country is sent to a beneficiary country where it is tanned to create nonperishable ‘‘crust leath- er’’. The tanned skin is then imported di- rectly into the U.S. Although the tanned skin represents a new or different article of commerce produced in a beneficiary country within the meaning of § 10.195(a), the cost or value of the raw skin may not be counted to- ward the 35 percent value requirement be- cause (1) the tanned material of which the imported article is composed is not wholly the growth, product, or manufacture of a beneficiary country and (2) the tanning oper- ation creates the imported article itself rather than an intermediate article which is then used in the beneficiary country in the production or manufacture of an article im- ported into the U.S. The tanned skin would be eligible for duty-free treatment only if the direct costs attributable to the tanning operation represent at least 35 percent of the appraised value of the imported article.
Example 3. A raw, perishable skin of an ani- mal grown in a non-beneficiary country is sent to a beneficiary country where it is tanned to create nonperishable ‘‘crust leath- er’’. The tanned material is then cut, sewn and assembled with a metal buckle imported from a non-beneficiary country to create a finished belt which is imported directly into the U.S. Because the operations performed in the beneficiary country involved both the substantial transformation of the raw skin into a new or different article and the use of that intermediate article in the production or manufacture of a new or different article imported into the U.S., the cost or value of the tanned material used to make the im- ported article may be counted toward the 35 percent value requirement. The cost or value of the metal buckle imported into the bene- ficiary country may not be counted toward the 35 percent value requirement because the buckle was not substantially transformed in the beneficiary country into a new or dif- ferent article prior to its incorporation in the finished belt.
Example 4. A raw, perishable skin of an ani- mal grown in the U.S. Virgin Islands is sent to a beneficiary country where it is tanned to create nonperishable ‘‘crust leather’’, which is then imported directly into the U.S. The tanned skin represents a new or dif- ferent article of commerce produced in a beneficiary country within the meaning of § 10.195(a), and under § 10.195(b), the raw skin from which the tanned product was made is considered to have been grown in a bene- ficiary country for the purpose of applying the 35 percent value requirement. The tanned material of which the imported arti- cle is composed is considered to be wholly the growth, product, or manufacture of one or more beneficiary countries with the result that the entire cost or value of that material may be counted toward the 35 percent value requirement.
(b) Questionable origin. When the ori- gin of a material either is not ascer- tainable or is not satisfactorily dem- onstrated to the port director, the ma- terial shall not be considered to have been grown, produced, or manufactured in a beneficiary country.
(c) Determination of cost or value of materials produced in a beneficiary coun- try. (1) The cost or value of materials produced in a beneficiary country or countries includes:
(i) The manufacturer’s actual cost for the materials;
(ii) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(iii) The actual cost of waste or spoil- age (material list), less the value of re- coverable scrap; and
(iv) Taxes and/or duties imposed on the materials by any beneficiary coun- try, provided they are not remitted upon exportation.
(2) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by com- puting the sum of:
(i) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(ii) An amount for profit; and (iii) Freight, insurance, packing, and
all other costs incurred in transporting the material to the manufacturer’s plant.
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19 CFR Ch. I (4–1–12 Edition)§ 10.197
If the pertinent information needed to compute the cost or value of a material is not available, the appraising officer may ascertain or estimate the value thereof using all reasonable ways and means at his disposal.
§ 10.197 Direct costs of processing op- erations performed in a beneficiary country or countries.
(a) Items included in the direct costs of processing operations. As used in § 10.195 and § 10.198, the words ‘‘direct costs of processing operations’’ mean those costs either directly incurred in, or which can be reasonably allocated to, the growth, production, manufacture, or assembly of the specific merchan- dise under consideration. Such costs include, but are not limited to the fol- lowing, to the extent that they are in- cludable in the appraised value of the imported merchandise:
(1) All actual labor costs involved in the growth, production, manufacture or assembly of the specific merchan- dise, including fringe benefits, on-the- job training, and the cost of engineer- ing, supervisory, quality control, and similar personnel;
(2) Dies, molds, tooling, and deprecia- tion on machinery and equipment which are allocable to the specific mer- chandise;
(3) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific merchandise and;
(4) Costs of inspecting and testing the specific merchandise.
(b) Items not included in the direct costs of processing operations. Those items which are not included within the meaning of the words ‘‘direct costs of processing operations’’ are those which are not directly attributable to the merchandise under consideration or are not ‘‘costs’’ of manufacturing the prod- uct. These include, but are not limited to:
(1) Profit; and
(2) General expenses of doing business which are either not allocable to the specific merchandise or are not related to the growth, production, manufac- ture, or assembly of the merchandise, such as administrative salaries, cas- ualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
[T.D. 84–237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984]
§ 10.198 Evidence of country of origin. (a) Shipments covered by a formal
entry—(1) Articles not wholly the growth, product, or manufacture of a beneficiary country—(i) Declaration. In a case in- volving an article covered by a formal entry which is not wholly the growth, product, or manufacture of a single beneficiary country, the exporter or other appropriate party having knowl- edge of the relevant facts in the bene- ficiary country where the article was produced or last processed shall be pre- pared to submit directly to the port di- rector, upon request, a declaration set- ting forth all pertinent detailed infor- mation concerning the production or manufacture of the article. When re- quested by the port director, the dec- laration shall be prepared in substan- tially the following form:
CBI DECLARATION
I, llllllllllllll, (name), hereby declare that the articles de- scribed below (a) were produced or manufac- tured in llllllll (country) by means of processing operations performed in that country as set forth below and were also sub- jected to processing operations in the other beneficiary country or countries (including the Commonwealth of Puerto Rico and the U.S. Virgin Islands) as set forth below and (b) incorporate materials produced in the country named above or in any other bene- ficiary country or countries (including the Commonwealth of Puerto Rico and the U.S. Virgin Islands) or in the customs territory of the United States (other than the Common- wealth of Puerto Rico) as set forth below:
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Number and date of invoices Description of articles and
quantity
Processing operations per- formed on articles
Material produced in a bene- ficiary country or in the U.S.
Description of processing op- erations and
country of processing
Direct costs of processing op-
erations
Description of material, pro- duction proc-
ess, and coun- try of produc-
tion
Cost or value of material
Date lllllllllllllllllllll Address lllllllllllllllllll Signature llllllllllllllllll Title lllllllllllllllllllll
(ii) Retention of records and submission of declaration. The information nec- essary for preparation of the declara- tion shall be retained in the files of the party responsible for its preparation and submission for a period of 5 years. In the event that the port director re- quests submission of the declaration during the 5-year period, it shall be submitted by the appropriate party di- rectly to the port director within 60 days of the date of the request or such additional period as the port director may allow for good cause shown. Fail- ure to submit the declaration in a timely fashion will result in a denial of duty-free treatment.
(iii) Value added after final expor- tation. In a case in which value is added to an article in a bonded warehouse or in a foreign-trade zone in the Common- wealth of Puerto Rico or in the U.S. after final exportation of the article from a beneficiary country, in order to ensure compliance with the value re- quirement under § 10.195(a), the declara- tion provided for in paragraph (a)(1)(i) of this section shall be filed by the im- porter or consignee with the entry summary as evidence of the country of origin. The declaration shall be prop- erly completed by the party respon- sible for the addition of such value.
(2) Merchandise wholly the growth, product, or manufacture of a beneficiary country. In a case involving merchan- dise covered by a formal entry which is wholly the growth, product, or manu- facture of a single beneficiary country, a statement to that effect shall be in- cluded on the commercial invoice pro- vided to Customs.
(b) Shipments covered by an informal entry. Although the filing of the dec- laration provided for in paragraph (a)(1)(i) of this section will not be re- quired for a shipment covered by an in- formal entry, the port director may re- quire such other evidence of country of origin as deemed necessary.
(c) Verification of documentation. Any evidence of country of origin submitted under this section shall be subject to such verification as the port director deems necessary. In the event that the port director is prevented from obtain- ing the necessary verification, the port director may treat the entry as duti- able.
[T.D. 94–47, 59 FR 25570, May 17, 1994]
§ 10.198a Duty reduction for certain leather-related articles.
Except as otherwise provided in § 10.233, reduced rates of duty as pro- claimed by the President will apply to handbags, luggage, flat goods, work gloves, and leather wearing apparel that were not designated on August 5, 1983, as eligible articles for purposes of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467), provided that the article in question at the time it is entered:
(a) Was grown, produced, or manufac- tured in a beneficiary country within the meaning of § 10.195;
(b) Meets the 35 percent value-con- tent requirement prescribed in § 10.195; and
(c) Was imported directly from a ben- eficiary country within the meaning of § 10.193.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000]
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19 CFR Ch. I (4–1–12 Edition)§ 10.198b
§ 10.198b Products of Puerto Rico processed in a beneficiary country.
Except in the case of any article de- scribed in § 10.191(b)(2)(i) through (vi), the duty-free treatment provided for under the CBI will apply to an article that is the growth, product, or manu- facture of the Commonwealth of Puer- to Rico and that is by any means ad- vanced in value or improved in condi- tion in a beneficiary country, provided that:
(a) If any materials are added to the article in the beneficiary country, those materials consist only of mate- rials that are a product of a beneficiary country or the United States; and
(b) The article is imported directly from the beneficiary country into the customs territory of the United States within the meaning of § 10.193.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000]
§ 10.199 Duty-free entry for certain beverages produced in Canada from Caribbean rum.
(a) General. A spirituous beverage that is imported directly from the ter- ritory of Canada and that is classifi- able under subheading 2208.40 or 2208.90, Harmonized Tariff Schedule of the United States (HTSUS), will be enti- tled, upon entry or withdrawal from warehouse for consumption, to duty- free treatment under section 213(a)(6) of the Caribbean Basin Economic Re- covery Act (19 U.S.C. 2703(a)(6)), also known as the Caribbean Basin Initia- tive (CBI), if the spirituous beverage has been produced in the territory of Canada from rum, provided that the rum:
(1) Is the growth, product, or manu- facture either of a beneficiary country or of the U.S. Virgin Islands;
(2) Was imported directly into the territory of Canada from a beneficiary country or from the U.S. Virgin Is- lands; and
(3) Accounts for at least 90 percent of the alcoholic content by volume of the spirituous beverage.
(b) Claim for exemption from duty under CBI. A claim for an exemption from duty for a spirituous beverage under section 213(a)(6) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(6)) may be made by en- tering such beverage under subheading
9817.22.05, HTSUS, on the entry sum- mary document or its electronic equiv- alent. In order to claim the exemption, the importer must have the records de- scribed in paragraphs (d), (e), (f) and (g) of this section so that, upon Customs request, the importer can establish that:
(1) The rum used to produce the bev- erage is the growth, product or manu- facture either of a beneficiary country or of the U.S. Virgin Islands;
(2) The rum was shipped directly from a beneficiary country or from the U.S. Virgin Islands to Canada;
(3) The beverage was produced in Canada;
(4) The rum accounts for at least 90% of the alcohol content of the beverage; and
(5) The beverage was shipped directly from Canada to the United States.
(c) Imported directly. For a spirituous beverage imported from Canada to qualify for duty-free entry under the CBI, the spirituous beverage must be imported directly into the customs ter- ritory of the United States from Can- ada; and the rum used in its production must have been imported directly into the territory of Canada either from a beneficiary country or from the U.S. Virgin Islands.
(1) ‘‘Imported directly’’ into the cus- toms territory of the United States from Canada means:
(i) Direct shipment from the terri- tory of Canada to the U.S. without passing through the territory of any other country; or
(ii) If the shipment is from the terri- tory of Canada to the U.S. through the territory of any other country, the spirituous beverages do not enter into the commerce of any other country while en route to the U.S.; or
(iii) If the shipment is from the terri- tory of Canada to the U.S. through the territory of another country, and the invoices and other documents do not show the U.S. as the final destination, the spirituous beverages in the ship- ment are imported directly only if they:
(A) Remained under the control of the customs authority of the inter- mediate country;
(B) Did not enter into the commerce of the intermediate country except for
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the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the latter’s sales agent; and
(C) Were not subjected to operations other than loading and unloading, and other activities necessary to preserve the products in good condition.
(2) ‘‘Imported directly’’ from a bene- ficiary country or from the U.S. Virgin Islands into the territory of Canada means:
(i) Direct shipment from a bene- ficiary country or from the U.S. Virgin Islands into the territory of Canada without passing through the territory of any non-beneficiary country; or
(ii) If the shipment is from a bene- ficiary country or from the U.S. Virgin Islands into the territory of Canada through the territory of any non-bene- ficiary country, the rum does not enter into the commerce of any non-bene- ficiary country while en route to Can- ada; or
(iii) If the shipment is from a bene- ficiary country or from the U.S. Virgin Islands into the territory of Canada through the territory of any non-bene- ficiary country, the rum in the ship- ment is imported directly into the ter- ritory of Canada only if it:
(A) Remained under the control of the customs authority of the inter- mediate country;
(B) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail; and
(C) Was not subjected to operations in the intermediate country other than loading and unloading, and other ac- tivities necessary to preserve the prod- uct in good condition.
(d) Evidence of direct shipment—(1) Spirituous beverages imported from Can- ada. The importer must be prepared to provide to the port director, if re- quested, documentary evidence that the spirituous beverages were imported directly from the territory of Canada, as described in paragraph (c)(1) of this section. This evidence may include documents such as a bill of lading, in- voice, air waybill, freight waybill, or cargo manifest. Any evidence of the di- rect shipment of these spirituous bev-
erages from Canada into the U.S. may be subject to such verification as deemed necessary by the port director.
(2) Rum imported into Canada from beneficiary country or U.S. Virgin Is- lands. The importer must be prepared to provide to the port director, if re- quested, evidence that the rum used in producing the spirituous beverages was imported directly into the territory of Canada from a beneficiary country or from the U.S. Virgin Islands, as de- scribed in paragraph (c)(2) of this sec- tion. This evidence may include docu- ments such as a Canadian customs entry, Canadian customs invoice, Cana- dian customs manifest, cargo manifest, bill of lading, landing certificate, air- way bill, or freight waybill. Any evi- dence of the direct shipment of the rum from a beneficiary country or from the U.S. Virgin Islands into the territory of Canada for use there in producing the spirituous beverages may be sub- ject to such verification as deemed nec- essary by the port director.
(e) Origin of rum used in production of the spirituous beverage—(1) Origin cri- teria. In order for a spirituous beverage covered by this section to be entitled to duty-free entry under the CBI, the rum used in producing the spirituous beverage in the territory of Canada must be wholly the growth, product, or manufacture either of a beneficiary country under the CBI or of the U.S. Virgin Islands, or must constitute a new or different article of commerce that was produced or manufactured in a beneficiary country or in the U.S. Virgin Islands. Such rum will not be considered to have been grown, pro- duced, or manufactured in a bene- ficiary country or in the U.S. Virgin Is- lands by virtue of having merely under- gone blending, combining or packaging operations, or mere dilution with water or mere dilution with another sub- stance that does not materially alter the characteristics of the product.
(2) Evidence of origin of rum—(i) Dec- laration. The importer must be pre- pared to submit directly to the port di- rector, if requested, a declaration pre- pared and signed by the person who produced or manufactured the rum, af- firming that the rum is the growth,
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product or manufacture of a bene- ficiary country or of the U.S. Virgin Is- lands. While no particular form is pre- scribed for the declaration, it must in- clude all pertinent information con- cerning the processing operations by which the rum was produced or manu- factured, the address of the producer or manufacturer, the title of the party signing the declaration, and the date it is signed.
(ii) Records supporting declaration. The supporting records, including those production records, that are necessary for the preparation of the declaration must also be available for submission to the port director if requested. The declaration and any supporting evi- dence as to the origin of the rum may be subject to such verification as deemed necessary by the port director.
(f) Canadian processor declaration; sup- porting documentation—(1) Canadian processor declaration. The importer must be prepared to submit directly to the port director, if requested, a dec- laration prepared by the person who produced the spirituous beverage(s) in Canada, setting forth all pertinent in- formation concerning the production of the beverages. The declaration will be in substantially the following form:
I, llll declare that the spirituous bev- erages here specified are the products that were produced by me (us), as described below, with the use of rum that was received by me (us); that the rum used in producing the beverages was received by me (us) on
llll (date), from llll (name and ad- dress of owner or exporter in the beneficiary country or in the U.S. Virgin Islands, as ap- plicable); and that such rum accounts for at least 90 percent of the alcoholic content by volume, as shown below, of each spirituous beverage so produced.
Marks and numbers Description of prod-
ucts and of proc- essing
Alcoholic con- tent of prod-
ucts; alcoholic content (%) at-
tributable to rum 1
.................................. ................................. ........................
.................................. ................................. ........................
Marks and numbers Description of prod-
ucts and of proc- essing
Alcoholic con- tent of prod-
ucts; alcoholic content (%) at-
tributable to rum 1
.................................. ................................. ........................
1 The production records must establish, for each lot of bev- erage produced, the quantity of rum the growth, product or manufacture of a CBI beneficiary country or of the U.S. Virgin Islands under 19 U.S.C. 2703(a)(6) that is used in producing the finished beverage; the alcoholic content by volume of the finished beverage; and the alcoholic content by volume of the finished beverage, expressed as a percentage, that is attrib- utable to the qualifying rum. If rum from two or more quali- fying sources (e.g., rum the growth, product or manufacture of a CBI beneficiary country or of the U.S. Virgin Islands and other rum the growth, product or manufacture of another CBI country) are used in processing the beverage, the alcoholic content requirement may be met by aggregating the alcoholic content of the finished beverage that is attributable to rum from each of the qualifying sources used in processing the fin- ished beverage, as reflected in the production records.
Date lllllllllllllllllllll Address lllllllllllllllllll Signature llllllllllllllllll Title lllllllllllllllllllll
(2) Availability of supporting docu- ments. The information, including any supporting documents and records, nec- essary for the preparation of the dec- laration, as described in paragraph (f)(1) of this section, must be available for submission to the port director, if requested. The declaration and any supporting evidence may be subject to such verification as deemed necessary by the port director. The specific docu- mentary evidence necessary to support the declaration consists of those docu- ments and records which satisfactorily establish:
(i) The receipt of the rum by the Ca- nadian processor, including the date of receipt and the name and address of the party from whom the rum was re- ceived (the owner or exporter in the beneficiary country or the U.S. Virgin Islands); and
(ii) For each lot of beverage produced and included in the declaration, the specific identification of the produc- tion lot(s) involved; the quantity of qualifying rum that is used in pro- ducing the finished beverage, including a description of the processing and of the finished products; the alcoholic content by volume of the finished bev- erage; and the alcoholic content by vol- ume of the finished beverage, expressed as a percentage, that is attributable to the qualifying rum.
(g) Importer system for review of nec- essary recordkeeping. The importer will
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establish and implement a system of internal controls which demonstrate that reasonable care was exercised in its claim for duty-free treatment under the CBI. These controls should include tests to assure the accuracy and avail- ability of records that establish:
(1) The origin of the rum; (2) The direct shipment of the rum
from a beneficiary country or from the U.S. Virgin Islands to Canada;
(3) The alcohol content of the fin- ished beverage imported from Canada; and
(4) The direct shipment of the fin- ished beverage from Canada to the United States.
(h) Submission of documents to Cus- toms. The importer must be prepared to submit directly to the port director, if requested, those documents and/or sup- porting records as described in para- graphs (d), (e) and (f) of this section, for a period of 5 years from the date of entry of the related spirituous bev- erages under section 213(a)(6) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(6)), as provided in § 163.4(a) of this chapter. If requested, the importer must submit such docu- ments and/or supporting records to the port director within 60 calendar days of the date of the request or such addi- tional period as the port director may allow for good cause shown.
[T.D. 02–59, 67 FR 62882, Oct. 9, 2002]
Subpart C—Andean Trade Preference
SOURCE: Sections 10.201 through 10.208 ap- pear at T.D. 98–76, 63 FR 51292, Sept. 25, 1998, unless otherwise noted.
§ 10.201 Applicability. Title II of Pub. L. 102–182 (105 Stat.
1233), entitled the Andean Trade Pref- erence Act (ATPA) and codified at 19 U.S.C. 3201 through 3206, authorizes the President to proclaim duty-free treat- ment for all eligible articles from any beneficiary country and to designate countries as beneficiary countries. The provisions of §§ 10.202 through 10.207 set forth the legal requirements and proce- dures that apply for purposes of obtain- ing that duty-free treatment for cer- tain articles from a beneficiary coun-
try which are identified for purposes of that treatment in General Note 11, Harmonized Tariff Schedule of the United States (HTSUS), and in the ‘‘Special’’ rate of duty column of the HTSUS. Provisions regarding pref- erential treatment of apparel and other textile articles under the ATPA are contained in §§ 10.241 through 10.248, and provisions regarding preferential treatment of tuna and certain other non-textile articles under the ATPA are contained in §§ 10.251 through 10.257.
[T.D. 03–16, 68 FR 14486, Mar. 25, 2003; 68 FR 67338, Dec. 1, 2003]
§ 10.202 Definitions. The following definitions apply for
purposes of §§ 10.201 through 10.207: (a) Beneficiary country. Except as oth-
erwise provided in § 10.206(b), the term ‘‘beneficiary country’’ refers to any country or successor political entity with respect to which there is in effect a proclamation by the President desig- nating such country or successor polit- ical entity as a beneficiary country in accordance with section 203 of the ATPA (19 U.S.C. 3202).
(b) Eligible articles. The term ‘‘eligi- ble’’ when used with reference to an ar- ticle means merchandise which is im- ported directly from a beneficiary country as provided in § 10.204, which meets the country of origin criteria set forth in § 10.205 and the value-content requirement set forth in § 10.206, and which, if the requirements of § 10.207 are met, is therefore entitled to duty- free treatment under the ATPA. How- ever, the following merchandise shall not be considered eligible articles enti- tled to duty-free treatment under the ATPA:
(1) Textiles and apparel articles which were not eligible articles for purposes of the ATPA on January 1, 1994, as the ATPA was in effect on that date, except as otherwise provided in §§ 10.241 through 10.248;
(2) Rum and tafia classified in sub- heading 2208.40, Harmonized Tariff Schedule of the United States;
(3) Sugars, syrups, and sugar-con- taining products subject to over-quota duty rates under applicable tariff-rate quotas; or
(4) Tuna prepared or preserved in any manner in airtight containers, except
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as otherwise provided in §§ 10.251 through 10.257.
(c) Entered. The term ‘‘entered’’ means entered, or withdrawn from warehouse for consumption, in the cus- toms territory of the United States.
(d) Wholly the growth, product, or man- ufacture of a beneficiary country. The ex- pression ‘‘wholly the growth, product, or manufacture of a beneficiary coun- try’’ has the same meaning as that set forth in § 10.191(b)(3) of this part.
[T.D. 98–76, 63 FR 51292, Sept. 25, 1998, as amended by T.D. 03–16, 68 FR 14486, Mar. 25, 2003; 68 FR 67338, Dec. 1, 2003]
§ 10.203 Eligibility criteria in general. An article classifiable under a sub-
heading of the Harmonized Tariff Schedule of the United States for which a rate of duty of ‘‘Free’’ appears in the ‘‘Special’’ subcolumn followed by the symbol ‘‘J’’ or ‘‘J*’’ in paren- theses is eligible for duty-free treat- ment, and will be accorded such treat- ment, if each of the following require- ments is met:
(a) Imported directly. The article is imported directly from a beneficiary country as provided in § 10.204.
(b) Country of origin criteria. The arti- cle complies with the country of origin criteria set forth in § 10.205.
(c) Value content requirement. The ar- ticle complies with the value content requirement set forth in § 10.206.
(d) Filing of claim and submission of supporting documentation. The claim for duty-free treatment is filed, and any required documentation in support of the claim is submitted, in accordance with the procedures set forth in § 10.207.
§ 10.204 Imported directly. In order to be eligible for duty-free
treatment under the ATPA, an article shall be imported directly from a bene- ficiary country into the customs terri- tory of the United States. For purposes of this requirement, the words ‘‘im- ported directly’’ mean:
(a) Direct shipment from any bene- ficiary country to the United States without passing through the territory of any non-beneficiary country; or
(b) If shipment from any beneficiary country to the United States was through the territory of a non-bene- ficiary country, the articles in the
shipment did not enter into the com- merce of the non-beneficiary country while en route to the United States, and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or
(c) If shipment from any beneficiary country to the United States was through the territory of a non-bene- ficiary country and the invoices and other documents do not show the United States as the final destination, then the articles in the shipment, upon arrival in the United States, are im- ported directly only if they:
(1) Remained under the control of the customs authority in the intermediate country;
(2) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the articles are imported into the United States as a result of the origi- nal commercial transaction between the importer and the producer or the latter’s sales agent; and
(3) Were not subjected to operations in the intermediate country other than loading and unloading, and other ac- tivities necessary to preserve the arti- cles in good condition.
§ 10.205 Country of origin criteria.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an article may be eligible for duty-free treatment under the ATPA if the arti- cle is either:
(1) Wholly the growth, product, or manufacture of a beneficiary country; or
(2) A new or different article of com- merce which has been grown, produced, or manufactured in a beneficiary coun- try.
(b) Exceptions. No article shall be eli- gible for duty-free treatment under the ATPA by virtue of having merely un- dergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with another sub- stance that does not materially alter the characteristics of the article. The principles and examples set forth in § 10.195(a)(2) of this part shall apply equally for purposes of this paragraph.
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§ 10.206 Value content requirement. (a) General. An article may be eligible
for duty-free treatment under the ATPA only if the sum of the cost or value of the materials produced in a beneficiary country or countries, plus the direct costs of processing oper- ations performed in a beneficiary coun- try or countries, is not less than 35 per- cent of the appraised value of the arti- cle at the time it is entered.
(b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI beneficiary coun- tries. For purposes of determining the percentage referred to in paragraph (a) of this section, the term ‘‘beneficiary country’’ includes the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country as de- fined in § 10.191(b)(1) of this part. Any cost or value of materials or direct costs of processing operations attrib- utable to the Virgin Islands or any CBI beneficiary country must be included in the article prior to its final expor- tation to the United States from a ben- eficiary country as defined in § 10.202(a).
(c) Materials produced in the United States. For purposes of determining the percentage referred to in paragraph (a) of this section, an amount not to ex- ceed 15 percent of the appraised value of the article at the time it is entered may be attributed to the cost or value of materials produced in the customs territory of the United States (other than the Commonwealth of Puerto Rico). The principles set forth in para- graph (d)(1) of this section shall apply in determining whether a material is ‘‘produced in the customs territory of the United States’’ for purposes of this paragraph.
(d) Cost or value of materials—(1) ‘‘Ma- terials produced in a beneficiary country or countries’’ defined. For purposes of paragraph (a) of this section, the words materials produced in a beneficiary coun- try or countries refer to those materials incorporated in an article which are ei- ther:
(i) Wholly the growth, product, or manufacture of a beneficiary country or two or more beneficiary countries; or
(ii) Substantially transformed in any beneficiary country or two or more beneficiary countries into a new or dif-
ferent article of commerce which is then used in any beneficiary country as defined in § 10.202(a) in the production or manufacture of a new or different article which is imported directly into the United States. For purposes of this paragraph (d)(1)(ii), no material shall be considered to be substantially trans- formed into a new or different article of commerce by virtue of having mere- ly undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with an- other substance that does not materi- ally alter the characteristics of the ar- ticle. The examples set forth in § 10.196(a) of this part, and the prin- ciples and examples set forth in § 10.195(a)(2) of this part, shall apply for purposes of the corresponding context under paragraph (d)(1) of this section.
(2) Questionable origin. When the ori- gin of a material either is not ascer- tainable or is not satisfactorily dem- onstrated to the appropriate port direc- tor, the material shall not be consid- ered to have been grown, produced, or manufactured in a beneficiary country or in the customs territory of the United States.
(3) Determination of cost or value of materials. (i) The cost or value of mate- rials produced in a beneficiary country or countries or in the customs terri- tory of the United States includes:
(A) The manufacturer’s actual cost for the materials;
(B) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(C) The actual cost of waste or spoil- age, less the value of recoverable scrap; and
(D) Taxes and/or duties imposed on the materials by any beneficiary coun- try or by the United States, provided they are not remitted upon expor- tation.
(ii) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value shall be determined by com- puting the sum of:
(A) All expenses incurred in the growth, production, or manufacture of
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the material, including general ex- penses;
(B) An amount for profit; and (C) Freight, insurance, packing, and
all other costs incurred in transporting the material to the manufacturer’s plant.
(iii) If the pertinent information needed to compute the cost or value of a material is not available, the ap- praising officer may ascertain or esti- mate the value thereof using all rea- sonable ways and means at his dis- posal.
(e) Direct costs of processing oper- ations—(1) Items included. For purposes of paragraph (a) of this section, the words direct costs of processing oper- ations mean those costs either directly incurred in, or which can be reasonably allocated to, the growth, production, manufacture, or assembly of the spe- cific merchandise under consideration. Such costs include, but are not limited to the following, to the extent that they are includable in the appraised value of the imported merchandise:
(i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchan- dise, including fringe benefits, on-the- job training, and the cost of engineer- ing, supervisory, quality control, and similar personnel;
(ii) Dies, molds, tooling, and depre- ciation on machinery and equipment which are allocable to the specific mer- chandise;
(iii) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific merchandise; and
(iv) Costs of inspecting and testing the specific merchandise.
(2) Items not included. For purposes of paragraph (a) of this section, the words ‘‘direct costs of processing operations’’ do not include items which are not di- rectly attributable to the merchandise under consideration or are not costs of manufacturing the product. These in- clude, but are not limited to:
(i) Profit; and (ii) General expenses of doing busi-
ness which either are not allocable to the specific merchandise or are not re- lated to the growth, production, manu- facture, or assembly of the merchan- dise, such as administrative salaries,
casualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
(f) Articles wholly the growth, product, or manufacture of a beneficiary country. Any article which is wholly the growth, product, or manufacture of a beneficiary country as defined in § 10.202(a), and any article produced or manufactured in a beneficiary country as defined in § 10.202(a) exclusively from materials which are wholly the growth, product, or manufacture of a bene- ficiary country or countries, shall nor- mally be presumed to meet the require- ment set forth in paragraph (a) of this section.
§ 10.207 Procedures for filing duty-free treatment claim and submitting supporting documentation.
(a) Filing claim for duty-free treatment. Except as provided in paragraph (c) of this section, a claim for duty-free treatment under the ATPA may be made at the time of filing the entry summary by placing the symbol ‘‘J’’ as a prefix to the Harmonized Tariff Schedule of the United States sub- heading number applicable to each ar- ticle for which duty-free treatment is claimed on that document.
(b) Shipments covered by a formal entry—(1) Articles not wholly the growth, product, or manufacture of a beneficiary country—(i) Declaration. In a case in- volving an article covered by a formal entry for which duty-free treatment is claimed under the ATPA and which is not wholly the growth, product, or manufacture of a single beneficiary country as defined in § 10.202(a), the ex- porter or other appropriate party hav- ing knowledge of the relevant facts in the beneficiary country as defined in § 10.202(a) where the article was pro- duced or last processed shall be pre- pared to submit directly to the port di- rector, upon request, a declaration set- ting forth all pertinent detailed infor- mation concerning the production or manufacture of the article. When re- quested by the port director, the dec- laration shall be prepared in substan- tially the following form:
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U.S. Customs and Border Protection, DHS; Treasury § 10.207
ATPA DECLARATION
I, llllll (name), hereby declare that the articles described below (a) were pro- duced or manufactured in llllll (coun- try) by means of processing operations per- formed in that country as set forth below and were also subjected to processing oper- ations in the other beneficiary country or countries (including the Commonwealth of
Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country) as set forth below and (b) incorporate materials produced in the country named above or in any other beneficiary country or countries (including the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and any CBI beneficiary country) or in the customs territory of the United States (other than the Common- wealth of Puerto Rico) as set forth below:
Number and date of invoices
Description of arti- cles and quantity
Processing operations performed on arti- cles
Material produced in a beneficiary coun- try or in the U.S.
Description of processing oper-
ations and country of processing
Direct costs of processing oper-
ations
Description of ma- terial, production
process, and coun- try of production
Cost or value of material
Date lllllllllllllllllllll Address lllllllllllllllllll Signature llllllllllllllllll Title lllllllllllllllllllll
(ii) Retention of records and submission of declaration. The information nec- essary for the preparation of the dec- laration shall be retained in the files of the party responsible for its prepara- tion and submission for a period of 5 years. In the event that the port direc- tor requests submission of the declara- tion during the 5-year period, it shall be submitted by the appropriate party directly to the port director within 60 days of the date of the request or such additional period as the port director may allow for good cause shown. Fail- ure to submit the declaration in a timely fashion will result in a denial of duty-free treatment.
(iii) Value added after final expor- tation. In a case in which value is added to an article in the Commonwealth of Puerto Rico or in the United States after final exportation of the article from a beneficiary country as defined in § 10.202(a), in order to ensure compli- ance with the value requirement under § 10.206(a), the declaration provided for in paragraph (b)(1)(i) of this section shall be filed by the importer or con- signee with the entry summary. The declaration shall be completed by the party responsible for the addition of such value.
(2) Articles wholly the growth, product, or manufacture of a beneficiary country. In a case involving an article covered by a formal entry for which duty-free treatment is claimed under the ATPA
and which is wholly the growth, prod- uct, or manufacture of a single bene- ficiary country as defined in § 10.202(a), a statement to that effect shall be in- cluded on the commercial invoice pro- vided to Customs.
(c) Shipments covered by an informal entry. The normal procedure for filing a claim for duty-free treatment as set forth in paragraph (a) of this section need not be followed, and the filing of the declaration provided for in para- graph (b)(1)(i) of this section will not be required, in a case involving a ship- ment covered by an informal entry. However, the port director may require submission of such other evidence of entitlement to duty-free treatment as deemed necessary.
(d) Evidence of direct importation—(1) Submission. The port director may re- quire that appropriate shipping papers, invoices, or other documents be sub- mitted within 60 days of the date of entry as evidence that the articles were ‘‘imported directly’’, as that term is defined in § 10.204.
(2) Waiver. The port director may waive the submission of evidence of di- rect importation when otherwise satis- fied, taking into consideration the kind and value of the merchandise, that the merchandise was, in fact, imported di- rectly and that it otherwise clearly qualifies for duty-free treatment under the ATPA.
(e) Verification of documentation. The documentation submitted under this section to demonstrate compliance with the requirements for duty-free treatment under the ATPA shall be
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subject to such verification as the port director deems necessary. In the event that the port director is prevented from obtaining the necessary verification, the port director may treat the entry as fully dutiable.
Subpart D—Textile and Apparel Articles Under the African Growth and Opportunity Act
SOURCE: T.D. 00–67, 65 FR 59676, Oct. 5, 2000, unless otherwise noted.
§ 10.211 Applicability. Title I of Public Law 106–200 (114
Stat. 251), entitled the African Growth and Opportunity Act (AGOA), author- izes the President to extend certain trade benefits to designated countries in sub-Saharan Africa. Section 112 of the AGOA, codified at 19 U.S.C. 3721, provides for the preferential treatment of certain textile and apparel articles from beneficiary countries. The provi- sions of §§ 10.211–10.217 of this part set forth the legal requirements and proce- dures that apply for purposes of obtain- ing preferential treatment pursuant to section 112.
§ 10.212 Definitions. When used in §§ 10.211 through 10.217,
the following terms have the meanings indicated:
Apparel articles. ‘‘Apparel articles’’ means goods classifiable in Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and subheadings 6406.99 and 6505.90 of the HTSUS.
Assembled in one or more beneficiary countries. ‘‘Assembled in one or more beneficiary countries’’ when used in the context of a textile or apparel arti- cle has reference to a joining together of two or more components that oc- curred in one or more beneficiary coun- tries, whether or not a prior joining op- eration was performed on the article or any of its components in the United States.
Beneficiary country. ‘‘Beneficiary country’’ means a country listed in section 107 of the African Growth and Opportunity Act (19 U.S.C. 3706) which has been the subject of a finding by the President or his designee, published in the FEDERAL REGISTER, that the coun-
try has satisfied the requirements of section 113 of the African Growth and Opportunity Act (19 U.S.C. 3722) and which the President has designated as a beneficiary sub-Saharan African country under section 506A of the Trade Act of 1974 (19 U.S.C. 2466a).
Cut in one or more beneficiary coun- tries. ‘‘Cut in one or more beneficiary countries’’ when used with reference to apparel articles means that all fabric components used in the assembly of the article were cut from fabric in one or more beneficiary countries.
Foreign. ‘‘Foreign’’ means of a coun- try other than the United States or a beneficiary country.
HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States.
Knit-to-shape articles. ‘‘Knit-to- shape,’’ when used with reference to sweaters or other apparel articles, means any apparel article of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the apparel arti- cle, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sew- ing of those major parts will not affect the determination of whether an ap- parel article is ‘‘knit-to-shape.’’
Knit-to-shape components. ‘‘Knit-to- shape,’’ when used with reference to textile components, means components that are knitted or crocheted from a yarn directly to a specific shape con- taining a self-start edge. Minor cutting or trimming will not affect the deter- mination of whether a component is ‘‘knit-to-shape.’’
Major parts. ‘‘Major parts’’ means in- tegral components of an apparel article but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts or components.
NAFTA. ‘‘NAFTA’’ means the North American Free Trade Agreement en- tered into by the United States, Can- ada, and Mexico on December 17, 1992.
Originating. ‘‘Originating’’ means having the country of origin deter- mined by application of the provisions of § 102.21 of this chapter.
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Preferential treatment. ‘‘Preferential treatment’’ means entry, or with- drawal from warehouse for consump- tion, in the customs territory of the United States free of duty and free of any quantitative limitations as pro- vided in 19 U.S.C. 3721.
Wholly assembled in. When used with reference to a textile or apparel article in the context of one or more bene- ficiary countries or one or more lesser developed beneficiary countries, the expression ‘‘wholly assembled in’’ means that all of the components of the textile or apparel article (including thread, decorative embellishments, buttons, zippers, or similar compo- nents) were joined together in one or more beneficiary countries or one or more lesser developed beneficiary countries.
Wholly formed fabrics. ‘‘Wholly formed,’’ when used with reference to fabric(s), means that all of the produc- tion processes, starting with polymers, fibers, filaments, textile strips, yarns, twine, cordage, rope, or strips of fabric and ending with a fabric by a weaving, knitting, needling, tufting, felting, en- tangling or other process, took place in the United States or in one or more beneficiary countries.
Wholly formed on seamless knitting ma- chines. ‘‘Wholly formed on seamless knitting machines,’’ when used to de- scribe apparel articles, has reference to a process that created a knit-to-shape apparel article by feeding yarn(s) into a knitting machine to result in that ar- ticle. When taken from the knitting machine, an apparel article created by this process either is in its final form or requires only minor cutting or trim- ming or the addition of minor compo- nents or parts such as patch pockets, appliques, capping, or elastic strip.
Wholly formed yarns. ‘‘Wholly formed,’’ when used with reference to yarns, means that all of the production processes, starting with the extrusion of filament, strip, film, or sheet and in- cluding slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a yarn or plied yarn, took place in a single country.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000; 65 FR 67260, Nov. 9, 2000, as amended by T.D. 03–15, 68 FR 13824, Mar. 21, 2003]
§ 10.213 Articles eligible for pref- erential treatment.
(a) General. The preferential treat- ment referred to in § 10.211 applies to the following textile and apparel arti- cles that are imported directly into the customs territory of the United States from a beneficiary country:
(1) Apparel articles sewn or otherwise assembled in one or more beneficiary countries from fabrics wholly formed and cut, or from components knit-to- shape, in the United States, from yarns wholly formed in the United States, (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under subheading 9802.00.80 of the HTSUS;
(2) Apparel articles sewn or otherwise assembled in one or more beneficiary countries from fabrics wholly formed and cut, or from components knit-to- shape, in the United States, from yarns wholly formed in the United States, (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under Chapter 61 or 62 of the HTSUS, if, after that assembly, the articles would have qualified for entry under subheading 9802.00.80 of the HTSUS but for the fact that the articles were em- broidered or subjected to stone-wash- ing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleach- ing, garment-dyeing, screen printing, or other similar processes in a bene- ficiary country;
(3) Apparel articles sewn or otherwise assembled in one or more beneficiary countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more beneficiary countries from yarns wholly formed in the United States, or from components knit-to- shape in the United States from yarns wholly formed in the United States, or both (including fabrics not formed from yarns, if those fabrics are classifi- able under heading 5602 or 5603 of the HTSUS and are wholly formed in the United States).
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(4) Apparel articles wholly assembled in one or more beneficiary countries from fabric wholly formed in one or more beneficiary countries from yarns originating either in the United States or one or more beneficiary countries (including fabrics not formed from yarns, if those fabrics are classified under heading 5602 or 5603 of the HTSUS and are wholly formed in one or more beneficiary countries), or from components knit-to-shape in one or more beneficiary countries from yarns originating either in the United States or in one or more beneficiary coun- tries, or apparel articles wholly formed on seamless knitting machines in a beneficiary country from yarns origi- nating either in the United States or in one or more beneficiary countries, sub- ject to the applicable quantitative limit published in the FEDERAL REG- ISTER pursuant to U.S. Note 2, Sub- chapter XIX, Chapter 98, HTSUS;
(5) Apparel articles wholly assem- bled, or knit-to-shape and wholly as- sembled, or both, in one or more lesser developed beneficiary countries regard- less of the country of origin of the fab- ric or the yarn used to make the arti- cles, subject to the applicable quan- titative limit published in the FEDERAL REGISTER pursuant to U.S. Note 2, Sub- chapter XIX, Chapter 98, HTSUS;
(6) Sweaters, in chief weight of cash- mere, knit-to-shape in one or more beneficiary countries and classifiable under subheading 6110.10 of the HTSUS;
(7) Sweaters, containing 50 percent or more by weight of wool measuring 21.5 microns in diameter or finer, knit-to- shape in one or more beneficiary coun- tries;
(8) Apparel articles, other than bras- sieres classifiable under subheading 6212.10, HTSUS, that are both cut (or knit-to-shape) and sewn or otherwise assembled in one or more beneficiary countries, from fabrics or yarn that is not formed in the United States or a beneficiary country, provided that ap- parel articles of those fabrics or yarn would be considered an originating good under General Note 12(t), HTSUS, if the apparel articles had been im- ported directly from Canada or Mexico;
(9) Apparel articles that are both cut (or knit-to-shape) and sewn or other- wise assembled in one or more bene-
ficiary countries from fabrics or yarn that the President or his designee has designated in the FEDERAL REGISTER as not available in commercial quantities in the United States;
(10) A handloomed, handmade, or folklore article of a beneficiary coun- try or countries that is certified as a handloomed, handmade, or folklore ar- ticle by the competent authority of the beneficiary country or countries, pro- vided that the President or his des- ignee has determined that the article in question will be treated as being a handloomed, handmade, or folklore ar- ticle.
(11) Apparel articles sewn or other- wise assembled in one or more bene- ficiary countries with thread formed in the United States:
(i) From components cut in the United States and in one or more bene- ficiary countries from fabric wholly formed in the United States from yarns wholly formed in the United States (in- cluding fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS);
(ii) From components knit-to-shape in the United States and one or more beneficiary countries from yarns whol- ly formed in the United States; or
(iii) From any combination of two or more of the cutting or knitting-to- shape operations described in para- graph (a)(11)(i) or paragraph (a)(11)(ii) of this section.
(b) Special rules for certain component materials—(1) General. An article other- wise described under paragraph (a) of this section will not be ineligible for the preferential treatment referred to in § 10.211 because the article contains:
(i) Findings and trimmings of foreign origin, if the value of those findings and trimmings does not exceed 25 per- cent of the cost of the components of the assembled article. For purposes of this section ‘‘findings and trimmings’’ include, but are not limited to, hooks and eyes, snaps, buttons, ‘‘bow buds,’’ decorative lace trim, elastic strips (but only if they are each less than 1 inch in width and are used in the production of brassieres), zippers (including zipper tapes), labels, and sewing thread except in the case of an article described in paragraph (a)(3) of this section;
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(ii) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section ‘‘inter- linings’’ include only a chest type plate, a ‘‘hymo’’ piece, or ‘‘sleeve head- er,’’ of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments;
(iii) Any combination of findings and trimmings of foreign origin and inter- linings of foreign origin, if the total value of those findings and trimmings and interlinings does not exceed 25 per- cent of the cost of the components of the assembled article; or
(iv) Fibers or yarns not wholly formed in the United States or one or more beneficiary countries if the total weight of all those fibers and yarns is not more than 7 percent of the total weight of the article.
(2) ‘‘Cost’’and ‘‘value’’ defined. The ‘‘cost’’ of components and the ‘‘value’’ of findings and trimmings or inter- linings referred to in paragraph (b)(1) of this section means:
(i) The price of the components, find- ings and trimmings, or interlinings when last purchased, f.o.b. port of ex- portation, as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of expor- tation:
(A) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price; or
(B) If no exportation to a beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the freight, insurance, packing and other costs incurred in transporting the components, findings and trimmings, or interlinings to the place of production if included in that price; or
(ii) If the price cannot be determined under paragraph (b)(2)(i) of this section or if Customs finds that price to be un- reasonable, all reasonable expenses in- curred in the growth, production, man- ufacture, or other processing of the components, findings and trimmings, or interlinings, including the cost or value of materials and general ex- penses, plus a reasonable amount for profit, and the freight, insurance, pack-
ing, and other costs, if any, incurred in transporting the components, findings and trimmings, or interlinings to the port of exportation.
(3) Treatment of fibers and yarns as findings or trimmings. If any fibers or yarns not wholly formed in the United States or one or more beneficiary coun- tries are used in an article as a finding or trimming described in paragraph (b)(1)(i) of this section, the fibers or yarns will be considered to be a finding or trimming for purposes of paragraph (b)(1) of this section.
(c) Imported directly defined. For pur- poses of paragraph (a) of this section, the words ‘‘imported directly’’ mean:
(1) Direct shipment from any bene- ficiary country to the United States without passing through the territory of any non-beneficiary country;
(2) If the shipment is from any bene- ficiary country to the United States through the territory of any non-bene- ficiary country, the articles in the shipment do not enter into the com- merce of any non-beneficiary country while en route to the United States and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or
(3) If the shipment is from any bene- ficiary country to the United States through the territory of any non-bene- ficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon ar- rival in the United States are imported directly only if they:
(i) Remained under the control of the customs authority of the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the producer’s sales agent; and
(iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000; 65 FR 67260, Nov. 9, 2000, as amended by T.D. 03–15, 68 FR 13824, Mar. 21, 2003]
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§ 10.214 Certificate of Origin.
(a) General. A Certificate of Origin must be employed to certify that a tex- tile or apparel article being exported from a beneficiary country to the United States qualifies for the pref- erential treatment referred to in § 10.211. The Certificate of Origin must be prepared by the exporter in the ben- eficiary country in the form specified in paragraph (b) of this section. Where the beneficiary country exporter is not the producer of the article, that ex-
porter may complete and sign a Certifi- cate of Origin on the basis of:
(1) Its reasonable reliance on the pro- ducer’s written representation that the article qualifies for preferential treat- ment; or
(2) A completed and signed Certifi- cate of Origin for the article volun- tarily provided to the exporter by the producer.
(b) Form of Certificate. The Certificate of Origin referred to in paragraph (a) of this section must be in the following format:
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U.S. Customs and Border Protection, DHS; Treasury § 10.214
(c) Preparation of Certificate. The fol- lowing rules will apply for purposes of completing the Certificate of Origin set forth in paragraph (b) of this section:
(1) Blocks 1 through 5 pertain only to the final article exported to the United
States for which preferential treat- ment may be claimed;
(2) Block 1 should state the legal name and address (including country) of the exporter;
(3) Block 2 should state the legal name and address (including country)
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M R
03 .0
01 <
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H >
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19 CFR Ch. I (4–1–12 Edition)§ 10.215
of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state ‘‘available to Cus- toms upon request’’ in block 2. If the producer and the exporter are the same, state ‘‘same’’ in block 2;
(4) Block 3 should state the legal name and address (including country) of the importer;
(5) In block 4, insert the number and/ or letter that identifies the preference group which applies to the article ac- cording to the description contained in the CFR provision cited on the Certifi- cate for that group;
(6) Block 5 should provide a full de- scription of each article. The descrip- tion should be sufficient to relate it to the invoice description and to the de- scription of the article in the inter- national Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number;
(7) Blocks 6 through 10 must be com- pleted only when the block in question calls for information that is relevant to the preference group identified in block 4;
(8) Block 6 should state the legal name and address (including country) of the fabric producer;
(9) Block 7 should state the legal name and address (including country) of the yarn producer;
(10) Block 8 should state the legal name and address (including country) of the thread producer;
(11) Block 9 should state the name of the folklore article or should state that the article is handloomed or handmade;
(12) Block 10 should be completed only when the preference group identi- fier ‘‘8’’ and/or ‘‘H’’ is inserted in block 4 and should state the name of the fab- ric or yarn that is in short supply in the NAFTA or that has been designated as not available in commercial quan- tities in the United States;
(13) Block 11 must contain the signa- ture of the exporter or of the exporter’s authorized agent having knowledge of the relevant facts;
(14) Block 15 should reflect the date on which the Certificate was completed and signed;
(15) Block 16 should be completed if the Certificate is intended to cover multiple shipments of identical arti- cles as described in block 5 that are im- ported into the United States during a specified period of up to one year (see § 10.216(b)(4)(ii)). The ‘‘from’’ date is the date on which the Certificate became applicable to the article covered by the blanket Certificate (this date may be prior to the date reflected in block 15). The ‘‘to’’ date is the date on which the blanket period expires;
(16) The telephone and facsimile numbers included in block 17 should be those at which the person who signed the Certificate may be contacted; and
(17) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, at- tach a continuation sheet.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000, as amended by T.D. 03–15, 68 FR 13825, Mar. 21, 2003]
§ 10.215 Filing of claim for preferential treatment.
(a) Declaration. In connection with a claim for preferential treatment for a textile or apparel article described in § 10.213, the importer must make a written declaration that the article qualifies for that treatment. The inclu- sion on the entry summary, or equiva- lent documentation, of the subheading within Chapter 98 of the HTSUS under which the article is classified will con- stitute the written declaration. Except in any of the circumstances described in § 10.216(d)(1), the declaration re- quired under this paragraph must be based on an original Certificate of Ori- gin that has been completed and prop- erly executed in accordance with § 10.214, that covers the article being imported, and that is in the possession of the importer.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the im- porter has reason to believe that a Cer- tificate of Origin on which a declara- tion was based contains information that is not correct, the importer must within 30 calendar days after the date
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of discovery of the error make a cor- rected declaration and pay any duties that may be due. A corrected declara- tion will be effected by submission of a letter or other written statement to the Customs port where the declara- tion was originally filed.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000, as amended by T.D. 03–15, 68 FR 13827, Mar. 21, 2003]
§ 10.216 Maintenance of records and submission of Certificate by im- porter.
(a) Maintenance of records. Each im- porter claiming preferential treatment for an article under § 10.215 must main- tain in the United States, in accord- ance with the provisions of part 163 of this chapter, all records relating to the importation of the article. Those records must include the original Cer- tificate of Origin referred to in § 10.215(a) and any other relevant docu- ments or other records as specified in § 163.1(a) of this chapter.
(b) Submission of Certificate. An im- porter who claims preferential treat- ment on a textile or apparel article under § 10.215(a) must provide, at the request of the port director, a copy of the Certificate of Origin pertaining to the article. A Certificate of Origin sub- mitted to Customs under this para- graph:
(1) Must be in writing or must be transmitted electronically pursuant to any electronic data interchange system authorized by Customs for that pur- pose;
(2) Must be signed by the exporter or by the exporter’s authorized agent hav- ing knowledge of the relevant facts;
(3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is com- pleted in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
(4) May be applicable to: (i) A single importation of an article
into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(ii) Multiple importations of iden- tical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.214(c)(15), ‘‘identical articles’’ means articles that are the same in all material respects, including physical characteristics, quality, and reputa- tion.
(c) Correction and nonacceptance of Certificate. If the port director deter- mines that a Certificate of Origin is il- legible or defective or has not been completed in accordance with para- graph (b) of this section, the importer will be given a period of not less than five working days to submit a cor- rected Certificate. A Certificate will not be accepted in connection with sub- sequent importations during a period referred to in paragraph (b)(4)(ii) of this section if the port director deter- mined that a previously imported iden- tical article covered by the Certificate did not qualify for preferential treat- ment.
(d) Certificate not required—(1) Gen- eral. Except as otherwise provided in paragraph (d)(2) of this section, an im- porter is not required to have a Certifi- cate of Origin in his possession for:
(i) An importation of an article for which the port director has in writing waived the requirement for a Certifi- cate of Origin because the port director is otherwise satisfied that the article qualifies for preferential treatment;
(ii) A non-commercial importation of an article; or
(iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the port director, the producer, ex- porter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed state- ment:
I hereby certify that the article covered by this shipment qualifies for preferential treatment under the AGOA.
Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent
llllllllllllllllllllllll
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Name llllllllllllllllllllllll
Title llllllllllllllllllllllll
Address llllllllllllllllllllllll
Signature and Date
(2) Exception. If the port director de- termines that an importation described in paragraph (d)(1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Or- igin requirement under §§ 10.214 through 10.216, the port director will notify the importer in writing that for that importation the importer must have in his possession a valid Certifi- cate of Origin to support the claim for preferential treatment. The importer will have 30 calendar days from the date of the written notice to obtain a valid Certificate of Origin, and a fail- ure to timely obtain the Certificate of Origin will result in denial of the claim for preferential treatment. For pur- poses of this paragraph, a ‘‘series of im- portations’’ means two or more entries covering articles arriving on the same day from the same exporter and con- signed to the same person.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000, as amended by T.D. 03–15, 68 FR 13827, Mar. 21, 2003]
§ 10.217 Verification and justification of claim for preferential treatment.
(a) Verification by Customs. A claim for preferential treatment made under § 10.215, including any statements or other information contained on a Cer- tificate of Origin submitted to Customs under § 10.216, will be subject to what- ever verification the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, the port director may deny the claim for preferential treatment. A verification of a claim for preferential treatment may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation regarding the country of origin
of an article and its constituent mate- rials, including, but not limited to, production records, information relat- ing to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
(3) Evidence to document the use of U.S. materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents.
(b) Importer requirements. In order to make a claim for preferential treat- ment under § 10.215, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the textile or apparel article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it is specifically de- scribed in one of the provisions under § 10.213(a). If the importer is claiming that the article incorporates fabric or yarn that originated or was wholly formed in the United States, the im- porter must have records that identify the U.S. producer of the fabric or yarn. A properly completed Certificate of Or- igin in the form set forth in § 10.214(b) is a record that would serve these pur- poses;
(2) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from the beneficiary country to the United States. If the imported article was shipped through a country other than a beneficiary country and the invoices and other documents from the bene- ficiary country do not show the United States as the final destination, the im- porter also must have documentation that demonstrates that the conditions set forth in § 10.213(c)(3) (i) through (iii) were met; and
(4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this
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section justify the importer’s claim for preferential treatment.
[T.D. 00–67, 65 FR 59676, Oct. 5, 2000, as amended by T.D. 03–15, 68 FR 13827, Mar. 21, 2003]
Subpart E—United States-Carib- bean Basin Trade Partnership Act
TEXTILE AND APPAREL ARTICLES UNDER THE UNITED STATES-CARIBBEAN BASIN TRADE PARTNERSHIP ACT
SOURCE: T.D. 00–68, 65 FR 59658, Oct. 5, 2000, unless otherwise noted.
§ 10.221 Applicability. Title II of Public Law 106–200 (114
Stat. 251), entitled the United States- Caribbean Basin Trade Partnership Act (CBTPA), amended section 213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 2701–2707) to authorize the President to extend addi- tional trade benefits to countries that have been designated as beneficiary countries under the CBERA. Section 213(b)(2) of the CBERA (19 U.S.C. 2703(b)(2)) provides for the preferential treatment of certain textile and ap- parel articles from CBERA beneficiary countries. The provisions of §§ 10.221– 10.227 of this part set forth the legal re- quirements and procedures that apply for purposes of obtaining preferential treatment pursuant to CBERA section 213(b)(2).
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000]
§ 10.222 Definitions. When used in §§ 10.221 through 10.228,
the following terms have the meanings indicated:
Apparel articles. ‘‘Apparel articles’’ means goods classifiable in Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and subheadings 6406.99 and 6505.90 of the HTSUS.
Assembled in one or more CBTPA bene- ficiary countries. ‘‘Assembled in one or more CBTPA beneficiary countries’’ when used in the context of a textile or apparel article has reference to a join- ing together of two or more compo- nents that occurred in one or more CBTPA beneficiary countries, whether
or not a prior joining operation was performed on the article or any of its components in the United States.
CBERA. ‘‘CBERA’’ means the Carib- bean Basin Economic Recovery Act, 19 U.S.C. 2701–2707.
CBTPA beneficiary country. ‘‘CBTPA beneficiary country’’ means a ‘‘bene- ficiary country’’ as defined in § 10.191(b)(1) for purposes of the CBERA which the President also has des- ignated as a beneficiary country for purposes of preferential treatment of textile and apparel articles under 19 U.S.C. 2703(b)(2) and which has been the subject of a finding by the President or his designee, published in the FEDERAL REGISTER, that the beneficiary country has satisfied the requirements of 19 U.S.C. 2703(b)(4)(A)(ii).
Cut in one or more CBTPA beneficiary countries. ‘‘Cut in one or more CBTPA beneficiary countries’’ when used with reference to apparel articles means that all fabric components used in the assembly of the article were cut from fabric in one or more CBTPA bene- ficiary countries.
Foreign. ‘‘Foreign’’ means of a coun- try other than the United States or a CBTPA beneficiary country.
HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States.
Knit-to-shape. The term ‘‘knit-to- shape’’ applies to any apparel article of which 50 percent or more of the exte- rior surface area is formed by major parts that have been knitted or cro- cheted directly to the shape used in the apparel article, with no consideration being given to patch pockets, appli- ques, or the like. Minor cutting, trim- ming, or sewing of those major parts will not affect the determination of whether an apparel article is ‘‘knit-to- shape.’’
Luggage. ‘‘Luggage’’ means travel goods (such as trunks, hand trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight bags, pull- man bags, gladstone bags, traveling bags, knapsacks, kitbags, haversacks, duffle bags, and like articles designed to contain clothing or other personal effects during travel) and brief cases, portfolios, school bags, photographic equipment bags, golf bags, camera
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cases, binocular cases, gun cases, occu- pational luggage cases (for example, physicians’ cases, sample cases), and like containers and cases designed to be carried with the person. The term ‘‘luggage’’ does not include handbags (that is, pocketbooks, purses, shoulder bags, clutch bags, and all similar arti- cles, by whatever name known, cus- tomarily carried by women or girls). The term ‘‘luggage’’ also does not in- clude flat goods (that is, small flatware designed to be carried on the person, such as banknote cases, bill cases, bill- folds, bill purses, bill rolls, card cases, change cases, cigarette cases, coin purses, coin holders, compacts, cur- rency cases, key cases, letter cases, li- cense cases, money cases, pass cases, passport cases, powder cases, spectacle cases, stamp cases, vanity cases, to- bacco pouches, and similar articles).
Made in one or more CBTPA bene- ficiary countries. ‘‘Made in one or more CBTPA beneficiary countries’’ when used with reference to non-underwear t-shirts means cut in one or more CBTPA beneficiary countries and whol- ly assembled in one or more CBTPA beneficiary countries.
Major parts. ‘‘Major parts’’ means in- tegral components of an apparel article but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts or components.
NAFTA. ‘‘NAFTA’’ means the North American Free Trade Agreement en- tered into by the United States, Can- ada, and Mexico on December 17, 1992.
Preferential treatment. ‘‘Preferential treatment’’ means entry, or with- drawal from warehouse for consump- tion, in the customs territory of the United States free of duty and free of any quantitative restrictions, limita- tions, or consultation levels as pro- vided in 19 U.S.C. 2703(b)(2).
Wholly assembled in one or more CBTPA beneficiary countries. ‘‘Wholly assembled in one or more CBTPA bene- ficiary countries’’ when used in the context of a textile or apparel article has reference to a joining together of all components (including thread, deco- rative embellishments, buttons, zip- pers, or similar components) that oc- curred only in one or more CBTPA ben- eficiary countries.
Wholly formed. ‘‘Wholly formed,’’ when used with reference to yarns, means that all of the production proc- esses, starting with the extrusion of filament, strip, film, or sheet and in- cluding slitting a film or sheet into strip or the spinning of all fibers into yarn or both and ending with a yarn or plied yarn, took place in a single coun- try, and, when used with reference to fabric(s), means that all of the produc- tion processes, starting with polymers, fibers, filaments, textile strips, yarns, twine, cordage, rope, or strips of fabric and ending with a fabric by a weaving, knitting, needling, tufting, felting, en- tangling or other process, took place in a single country.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000; T.D. 01–74, 66 FR 50537, Oct. 4, 2001, as amended by T.D. 03–12, 68 FR 13831, Mar. 21, 2003]
§ 10.223 Articles eligible for pref- erential treatment.
(a) General. The preferential treat- ment referred to in § 10.221 applies to the following textile and apparel arti- cles that are imported directly into the customs territory of the United States from a CBTPA beneficiary country:
(1) Apparel articles sewn or otherwise assembled in one or more CBTPA bene- ficiary countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States, from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under subheading 9802.00.80 of the HTSUS, and provided that any other processing involving the article conforms to the rules set forth in para- graph (b) of this section;
(2) Apparel articles sewn or otherwise assembled in one or more CBTPA bene- ficiary countries from fabrics wholly formed and cut, or from components knit-to-shape, in the United States, from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are wholly formed and cut in the United States) that are entered under Chapter 61 or 62 of the
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HTSUS, if, after that assembly, the ar- ticles would have qualified for entry under subheading 9802.00.80 of the HTSUS but for the fact that the arti- cles were embroidered or subjected to stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing, screen printing, or other similar processes in a CBTPA beneficiary country, and pro- vided that any other processing involv- ing the article conforms to the rules set forth in paragraph (b) of this sec- tion;
(3) Apparel articles sewn or otherwise assembled in one or more CBTPA bene- ficiary countries with thread formed in the United States from fabrics wholly formed in the United States and cut in one or more CBTPA beneficiary coun- tries from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fab- rics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are whol- ly formed in the United States), and provided that any other processing in- volving the article conforms to the rules set forth in paragraph (b) of this section;
(4) Apparel articles (other than socks provided for in heading 6115 of the HTSUS) knit to shape in a CBTPA ben- eficiary country from yarns wholly formed in the United States, and knit- ted or crocheted apparel articles (other than non-underwear t-shirts classifi- able under subheadings 6109.10.00 and 6109.90.10 of the HTSUS and described in paragraph (a)(5) of this section) cut and wholly assembled in one or more CBTPA beneficiary countries from fab- rics formed in one or more CBTPA ben- eficiary countries or in one or more CBTPA beneficiary countries and the United States from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more CBTPA bene- ficiary countries);
(5) Non-underwear t-shirts, classifi- able under subheadings 6109.10.00 and 6109.90.10 of the HTSUS, made in one or more CBTPA beneficiary countries
from fabric formed in one or more CBTPA beneficiary countries from yarns wholly formed in the United States;
(6) Brassieres classifiable under sub- heading 6212.10 of the HTSUS, if both cut and sewn or otherwise assembled in the United States, or in one or more CBTPA beneficiary countries, or in both, other than articles entered as ar- ticles described in paragraphs (a)(1) through (a)(5), paragraphs (a)(7) through (a)(9), or paragraph (a)(12), and provided that any applicable additional requirements set forth in § 10.228 are met;
(7) Apparel articles, other than arti- cles described in paragraph (a)(6) of this section, that are both cut (or knit- to-shape) and sewn or otherwise assem- bled in one or more CBTPA beneficiary countries, from fabrics or yarn that is not formed in the United States or in one or more CBTPA beneficiary coun- tries, to the extent that apparel arti- cles of those fabrics or yarn would be eligible for preferential treatment, without regard to the source of the fab- rics or yarn, under Annex 401 of the NAFTA;
(8) Apparel articles that are both cut (or knit-to-shape) and sewn or other- wise assembled in one or more CBTPA beneficiary countries from fabrics or yarn that the President or his designee has designated in the FEDERAL REG- ISTER as not available in commercial quantities in the United States;
(9) A handloomed, handmade, or folk- lore textile or apparel article of a CBTPA beneficiary country that the President or his designee and rep- resentatives of the CBTPA beneficiary country mutually agree is a handloomed, handmade, or folklore ar- ticle and that is certified as a handloomed, handmade, or folklore ar- ticle by the competent authority of the CBTPA beneficiary country;
(10) Textile luggage assembled in a CBTPA beneficiary country from fabric wholly formed and cut in the United States, from yarns wholly formed in the United States, that is entered under subheading 9802.00.80 of the HTSUS;
(11) Textile luggage assembled in a CBTPA beneficiary country from fabric cut in a CBTPA beneficiary country
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from fabric wholly formed in the United States from yarns wholly formed in the United States;
(12) Knitted or crocheted apparel ar- ticles cut and assembled in one or more CBTPA beneficiary countries from fab- rics wholly formed in the United States from yarns wholly formed in the United States, or from components knit-to-shape in the United States from yarns wholly formed in the United States, or both (including fab- rics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed wholly in the United States), provided that the assembly is with thread formed in the United States, and provided that any other processing involving the article conforms to the rules set forth in paragraph (b) of this section; and
(13) Apparel articles sewn or other- wise assembled in one or more CBTPA beneficiary countries with thread formed in the United States:
(i) From components cut in the United States and in one or more CBTPA beneficiary countries from fab- ric wholly formed in the United States from yarns wholly formed in the United States (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS);
(ii) From components knit-to-shape in the United States and one or more CBTPA beneficiary countries from yarns wholly formed in the United States; or
(iii) From any combination of two or more of the cutting or knitting-to- shape operations described in para- graph (a)(13)(i) or paragraph (a)(13)(ii) of this section; and
(iv) Provided that any processing not described in this paragraph (a)(13) con- forms to the rules set forth in para- graph (b) of this section.
(b) Dyeing, printing, finishing and other operations—(1) Dyeing, printing and finishing operations. Dyeing, print- ing, and finishing operations may be performed on any yarn, fabric, or knit- to-shape or other component used in the production of any article described under paragraph (a) of this section without affecting the eligibility of the article for preferential treatment, pro-
vided that the operation is performed in the United States or in a CBTPA beneficiary country and not in any other country and subject to the fol- lowing additional conditions:
(i) In the case of an article described in paragraph (a)(1), (a)(2), (a)(3), (a)(12), or (a)(13) of this section that is entered on or after September 1, 2002, and that contains a knitted or crocheted or woven fabric, or a knitted or crocheted or woven fabric component produced from fabric, that was wholly formed in the United States from yarns wholly formed in the United States, any dye- ing, printing, or finishing of that knit- ted or crocheted or woven fabric or component must have been carried out in the United States; and
(ii) In the case of assembled luggage described in paragraph (a)(10) of this section, an operation may be performed in a CBTPA beneficiary country only if that operation is incidental to the as- sembly process within the meaning of § 10.16.
(2) Other operations. An article de- scribed under paragraph (a) of this sec- tion that is otherwise eligible for pref- erential treatment will not be disquali- fied from receiving that treatment by virtue of having undergone one or more operations such as embroidering, stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing or screen printing, provided that the operation is performed in the United States or in a CBTPA beneficiary country and not in any other country. However, in the case of assembled luggage described in paragraph (a)(10) of this section, an op- eration may be performed in a CBTPA beneficiary country without affecting the eligibility of the article for pref- erential treatment only if it is inci- dental to the assembly process within the meaning of § 10.16.
(c) Special rules for certain component materials—(1) Foreign findings, trim- mings, interlinings, fibers and yarns—(i) General. An article otherwise described under paragraph (a) of this section will not be ineligible for the preferential treatment referred to in § 10.221 because the article contains:
(A) Findings and trimmings of for- eign origin, if the value of those find- ings and trimmings does not exceed 25
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percent of the cost of the components of the assembled article. For purposes of this section ‘‘findings and trim- mings’’ include, but are not limited to, hooks and eyes, snaps, buttons, ‘‘bow buds,’’ decorative lace trim, elastic strips (but only if they are each less than 1 inch in width and are used in the production of brassieres), zippers (in- cluding zipper tapes), labels, and sew- ing thread except in the case of an arti- cle described in paragraph (a)(3) or (a)(12) of this section;
(B) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section ‘‘inter- linings’’ include only a chest type plate, a ‘‘hymo’’ piece, or ‘‘sleeve head- er,’’ of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments;
(C) Any combination of findings and trimmings of foreign origin and inter- linings of foreign origin, if the total value of those findings and trimmings and interlinings does not exceed 25 per- cent of the cost of the components of the assembled article; or
(D) Fibers or yarns not wholly formed in the United States or in one or more CBTPA beneficiary countries if the total weight of all those fibers and yarns is not more than 7 percent of the total weight of the article, except in the case of any apparel article de- scribed in paragraph (a)(1) through (a)(5) or (a)(12) of this section con- taining elastomeric yarns which will be eligible for preferential treatment only if those yarns are wholly formed in the United States.
(ii) ‘‘Cost’’ and ‘‘value’’ defined. The ‘‘cost’’ of components and the ‘‘value’’ of findings and trimmings or inter- linings referred to in paragraph (c)(1)(i) of this section means:
(A) The price of the components, findings and trimmings, or interlinings when last purchased, f.o.b. port of ex- portation, as set out in the invoice or other commercial documents, or, if the price is other than f.o.b. port of expor- tation:
(1) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price; or
(2) If no exportation to a CBTPA ben- eficiary country is involved, the price as set out in the invoice or other com- mercial documents, less the freight, in- surance, packing, and other costs in- curred in transporting the components, findings and trimmings, or interlinings to the place of production if included in that price; or
(B) If the price cannot be determined under paragraph (c)(1)(ii)(A) of this sec- tion or if Customs finds that price to be unreasonable, all reasonable ex- penses incurred in the growth, produc- tion, manufacture, or other processing of the components, findings and trim- mings, or interlinings, including the cost or value of materials and general expenses, plus a reasonable amount for profit, and the freight, insurance, pack- ing, and other costs, if any, incurred in transporting the components, findings and trimmings, or interlinings to the port of exportation.
(iii) Treatment of fibers and yarns as findings or trimmings. If any fibers or yarns not wholly formed in the United States or one or more beneficiary coun- tries are used in an article as a finding or trimming described in paragraph (c)(1)(i)(A) of this section, the fibers or yarns will be considered to be a finding or trimming for purposes of paragraph (c)(1)(i) of this section.
(2) Special rule for nylon filament yarn. An article otherwise described under paragraph (a)(1), (a)(2), (a)(3) or (a)(12) of this section will not be ineligible for the preferential treatment referred to in § 10.221 because the article contains nylon filament yarn (other than elas- tomeric yarn) that is classifiable under subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the HTSUS duty-free from Canada, Mexico or Israel.
(3) Dyed, printed, or finished thread. An article otherwise described under paragraph (a) of this section will not be ineligible for the preferential treat- ment referred to in § 10.221 because the thread used to assemble the article is dyed, printed, or finished in one or more CBTPA beneficiary countries.
(d) Imported directly defined. For pur- poses of paragraph (a) of this section, the words ‘‘imported directly’’ mean:
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(1) Direct shipment from any CBTPA beneficiary country to the United States without passing through the territory of any country that is not a CBTPA beneficiary country;
(2) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA bene- ficiary country, the articles in the shipment do not enter into the com- merce of any country that is not a CBTPA beneficiary country while en route to the United States and the in- voices, bills of lading, and other ship- ping documents show the United States as the final destination; or
(3) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA bene- ficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon ar- rival in the United States are imported directly only if they:
(i) Remained under the control of the customs authority of the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the producer’s sales agent; and
(iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000; 65 FR 67262, Nov. 9, 2000, as amended by T.D. 01–74, 66 FR 50537, Oct. 4, 2001; T.D. 03–12, 68 FR 13832, Mar. 21, 2003]
§ 10.224 Certificate of Origin.
(a) General. A Certificate of Origin must be employed to certify that a tex- tile or apparel article being exported from a CBTPA beneficiary country to the United States qualifies for the pref- erential treatment referred to in § 10.221. The Certificate of Origin must be prepared by the exporter in the CBTPA beneficiary country in the form specified in paragraph (b) of this sec- tion. Where the CBTPA beneficiary country exporter is not the producer of the article, that exporter may com- plete and sign a Certificate of Origin on the basis of:
(1) Its reasonable reliance on the pro- ducer’s written representation that the article qualifies for preferential treat- ment; or
(2) A completed and signed Certifi- cate of Origin for the article volun- tarily provided to the exporter by the producer.
(b) Form of Certificate. The Certificate of Origin referred to in paragraph (a) of this section must be in the following format:
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(c) Preparation of Certificate. The fol- lowing rules will apply for purposes of completing the Certificate of Origin set forth in paragraph (b) of this section:
(1) Blocks 1 through 5 pertain only to the final article exported to the United
States for which preferential treat- ment may be claimed;
(2) Block 1 should state the legal name and address (including country) of the exporter;
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(3) Block 2 should state the legal name and address (including country) of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state ‘‘available to Cus- toms upon request’’ in block 2. If the producer and the exporter are the same, state ‘‘same’’ in block 2;
(4) Block 3 should state the legal name and address (including country) of the importer;
(5) In block 4, insert the letter that designates the preference group which applies to the article according to the description contained in the CFR pro- vision cited on the Certificate for that group;
(6) Block 5 should provide a full de- scription of each article. The descrip- tion should be sufficient to relate it to the invoice description and to the de- scription of the article in the inter- national Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number;
(7) Blocks 6 through 10 must be com- pleted only when the block in question calls for information that is relevant to the preference group identified in block 4;
(8) Block 6 should state the legal name and address (including country) of the fabric producer;
(9) Block 7 should state the legal name and address (including country) of the yarn producer;
(10) Block 8 should state the legal name and address (including country) of the thread producer;
(11) Block 9 should state the name of the folklore article or should state that the article is handloomed or handmade of handloomed fabric;
(12) Block 10 should be completed if the article described in block 5 incor- porates a fabric or yarn described in preference group G and should state the name of the fabric or yarn that has been considered as being in short sup- ply in the NAFTA or that has been des- ignated as not available in commercial quantities in the United States;
(13) Block 11 must contain the signa- ture of the exporter or of the exporter’s authorized agent having knowledge of the relevant facts;
(14) Block 15 should reflect the date on which the Certificate was completed and signed;
(15) Block 16 should be completed if the Certificate is intended to cover multiple shipments of identical arti- cles as described in block 5 that are im- ported into the United States during a specified period of up to one year (see § 10.226(b)(4)(ii)). The ‘‘from’’ date is the date on which the Certificate became applicable to the article covered by the blanket Certificate (this date may be prior to the date reflected in block 15). The ‘‘to’’ date is the date on which the blanket period expires; and
(16) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, at- tach a continuation sheet.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000, as amended by T.D. 03–12, 68 FR 13833, Mar. 21, 2003]
§ 10.225 Filing of claim for preferential treatment.
(a) Declaration. In connection with a claim for preferential treatment for a textile or apparel article described in § 10.223, the importer must make a written declaration that the article qualifies for that treatment. The inclu- sion on the entry summary, or equiva- lent documentation, of the subheading within Chapter 98 of the HTSUS under which the article is classified will con- stitute the written declaration. Except in any of the circumstances described in § 10.226(d)(1), the declaration re- quired under this paragraph must be based on a Certificate of Origin that has been completed and properly exe- cuted in accordance with § 10.224 and that covers the article being imported.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the im- porter has reason to believe that a Cer- tificate of Origin on which a declara- tion was based contains information that is not correct, the importer must within 30 calendar days after the date of discovery of the error make a cor- rected declaration and pay any duties
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that may be due. A corrected declara- tion will be effected by submission of a letter or other written statement to the Customs port where the declara- tion was originally filed.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000, as amended by T.D. 03–12, 68 FR 13835, Mar. 21, 2003]
§ 10.226 Maintenance of records and submission of Certificate by im- porter.
(a) Maintenance of records. Each im- porter claiming preferential treatment for an article under § 10.225 must main- tain in the United States, in accord- ance with the provisions of part 163 of this chapter, all records relating to the importation of the article. Those records must include the original Cer- tificate of Origin referred to in § 10.225(a) and any other relevant docu- ments or other records as specified in § 163.1(a) of this chapter.
(b) Submission of Certificate. An im- porter who claims preferential treat- ment on a textile or apparel article under § 10.225(a) must provide, at the request of the port director, a copy of the Certificate of Origin pertaining to the article. A Certificate of Origin sub- mitted to Customs under this para- graph:
(1) Must be in writing or must be transmitted electronically pursuant to any electronic data interchange system authorized by Customs for that pur- pose;
(2) Must be signed by the exporter or by the exporter’s authorized agent hav- ing knowledge of the relevant facts;
(3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is com- pleted in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
(4) May be applicable to: (i) A single importation of an article
into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(ii) Multiple importations of iden- tical articles into the United States
that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.224(c)(15), ‘‘identical articles’’ means articles that are the same in all material respects, including physical characteristics, quality, and reputa- tion.
(c) Correction and nonacceptance of Certificate. If the port director deter- mines that a Certificate of Origin is il- legible or defective or has not been completed in accordance with para- graph (b) of this section, the importer will be given a period of not less than five working days to submit a cor- rected Certificate. A Certificate will not be accepted in connection with sub- sequent importations during a period referred to in paragraph (b)(4)(ii) of this section if the port director deter- mined that a previously imported iden- tical article covered by the Certificate did not qualify for preferential treat- ment.
(d) Certificate not required—(1) Gen- eral. Except as otherwise provided in paragraph (d)(2) of this section, an im- porter is not required to have a Certifi- cate of Origin in his possession for:
(i) An importation of an article for which the port director has in writing waived the requirement for a Certifi- cate of Origin because the port director is otherwise satisfied that the article qualifies for preferential treatment;
(ii) A non-commercial importation of an article; or
(iii) A commercial importation of an article whose value does not exceed US $2,500, provided that, unless waived by the port director, the producer, ex- porter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed state- ment:
I hereby certify that the article covered by this shipment qualifies for preferential treatment under the CBTPA.
Check One:
( ) Producer ( ) Exporter ( ) Importer ( ) Agent
llllllllllllllllllllllll
Name
llllllllllllllllllllllll
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Title llllllllllllllllllllllll
Address llllllllllllllllllllllll
Signature and Date
(2) Exception. If the port director de- termines that an importation described in paragraph (d)(1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Or- igin requirement under §§ 10.224 through 10.226, the port director will notify the importer in writing that for that importation the importer must have in his possession a valid Certifi- cate of Origin to support the claim for preferential treatment. The importer will have 30 calendar days from the date of the written notice to obtain a valid Certificate of Origin, and a fail- ure to timely obtain the Certificate of Origin will result in denial of the claim for preferential treatment. For pur- poses of this paragraph, a ‘‘series of im- portations’’ means two or more entries covering articles arriving on the same day from the same exporter and con- signed to the same person.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000, as amended by T.D. 03–12, 68 FR 13835, Mar. 21, 2003]
§ 10.227 Verification and justification of claim for preferential treatment.
(a) Verification by Customs. A claim for preferential treatment made under § 10.225, including any statements or other information contained on a Cer- tificate of Origin submitted to Customs under § 10.226, will be subject to what- ever verification the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, the port director may deny the claim for preferential treatment. A verification of a claim for preferential treatment may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation regarding the country of origin of an article and its constituent mate- rials, including, but not limited to,
production records, information relat- ing to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
(3) Evidence to document the use of U.S. materials in the production of the article in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents.
(b) Importer requirements. In order to make a claim for preferential treat- ment under § 10.225, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the textile or apparel article qualifies for preferential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment because it is specifically de- scribed in one of the provisions under § 10.223(a). If the importer is claiming that the article incorporates fabric or yarn that was wholly formed in the United States, the importer must have records that identify the U.S. producer of the fabric or yarn. A properly com- pleted Certificate of Origin in the form set forth in § 10.224(b) is a record that would serve these purposes;
(2) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the Certificates of Origin or other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from the CBTPA beneficiary country to the United States. If the imported article was shipped through a country other than a CBTPA beneficiary country and the invoices and other documents from the CBTPA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.223(d)(3)(i) through (iii) were met; and
(4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this
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section justify the importer’s claim for preferential treatment.
[T.D. 00–68, 65 FR 59658, Oct. 5, 2000, as amended by T.D. 03–12, 68 FR 13835, Mar. 21, 2003]
§ 10.228 Additional requirements for preferential treatment of bras- sieres.
(a) Definitions. When used in this sec- tion, the following terms have the meanings indicated:
(1) Producer. ‘‘Producer’’ means an in- dividual, corporation, partnership, as- sociation, or other entity or group that exercises direct, daily operational con- trol over the production process in a CBTPA beneficiary country.
(2) Entity controlling production. ‘‘En- tity controlling production’’ means an individual, corporation, partnership, association, or other entity or group that is not a producer and that con- trols the production process in a CBTPA beneficiary country through a contractual relationship or other indi- rect means.
(3) Fabrics formed in the United States. ‘‘Fabrics formed in the United States’’ means fabrics that were produced by a weaving, knitting, needling, tufting, felting, entangling or other fabric- making process performed in the United States.
(4) Cost. ‘‘Cost’’ when used with ref- erence to fabrics formed in the United States means:
(i) The price of the fabrics when last purchased, f.o.b. port of exportation, as set out in the invoice or other commer- cial documents, or, if the price is other than f.o.b. port of exportation:
(A) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price; or
(B) If no exportation to a CBTPA beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the freight, insurance, packing, and other costs incurred in transporting the fab- rics to the place of production if in- cluded in that price; or
(ii) If the price cannot be determined under paragraph (a)(4)(i) of this section or if CBP finds that price to be unrea- sonable, all reasonable expenses in- curred in the growth, production, man-
ufacture, or other processing of the fabrics, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in forming the fabrics) and general ex- penses, plus a reasonable amount for profit, and the freight, insurance, pack- ing, and other costs, if any, incurred in transporting the fabrics to the port of exportation.
(5) Declared customs value. ‘‘Declared customs value’’ when used with ref- erence to fabric contained in an article means the sum of:
(i) The cost of fabrics formed in the United States that the producer or en- tity controlling production can verify; and
(ii) The cost of all other fabric con- tained in the article, exclusive of all findings and trimmings, determined as follows:
(A) In the case of fabric purchased by the producer or entity controlling pro- duction, the f.o.b. port of exportation price of the fabric as set out in the in- voice or other commercial documents, or, if the price is other than f.o.b. port of exportation:
(1) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price, plus expenses for em- broidering and dyeing, printing, and finishing operations applied to the fab- ric if not included in that price; or
(2) If no exportation to a CBTPA ben- eficiary country is involved, the price as set out in the invoice or other com- mercial documents, plus expenses for embroidering and dyeing, printing, and finishing operations applied to the fab- ric if not included in that price, but less the freight, insurance, packing, and other costs incurred in trans- porting the fabric to the place of pro- duction if included in that price;
(B) In the case of fabric for which the cost cannot be determined under para- graph (a)(5)(ii)(A) of this section or if CBP finds that cost to be unreasonable, all reasonable expenses incurred in the growth, production, or manufacture of the fabric, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in the growth, production, or manufacture of the fabric), general expenses and em- broidering and dyeing, printing, and
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finishing expenses, plus a reasonable amount for profit, and the freight, in- surance, packing, and other costs, if any, incurred in transporting the fabric to the port of exportation;
(C) In the case of fabric components purchased by the producer or entity controlling production, the f.o.b. port of exportation price of those fabric components as set out in the invoice or other commercial documents, less the cost or value of any non-textile mate- rials, and less expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity con- trolling production can verify, or, if the price is other than f.o.b. port of ex- portation:
(1) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price, less the cost or value of any non-textile materials, and less expenses for cutting or other proc- essing to create the fabric components other than knitting to shape, that the producer or entity controlling produc- tion can verify; or
(2) If no exportation to a CBTPA ben- eficiary country is involved, the price as set out in the invoice or other com- mercial documents, less the cost or value of any non-textile materials, and less expenses for cutting or other proc- essing to create the fabric components other than knitting to shape, that the producer or entity controlling produc- tion can verify, and less the freight, in- surance, packing, and other costs in- curred in transporting the fabric com- ponents to the place of production if included in that price; and
(D) In the case of fabric components for which a fabric cost cannot be deter- mined under paragraph (a)(5)(ii)(C) of this section or if CBP finds that cost to be unreasonable: all reasonable ex- penses incurred in the growth, produc- tion, or manufacture of the fabric com- ponents, including the cost or value of materials (which does not include the cost of recoverable scrap generated in the growth, production, or manufac- ture of the fabric components) and gen- eral expenses, but excluding the cost or value of any non-textile materials, and excluding expenses for cutting or other processing to create the fabric compo-
nents other than knitting to shape, that the producer or entity controlling production can verify, plus a reason- able amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric components to the port of exportation.
(6) Year. ‘‘Year’’ means a 12-month period beginning on October 1 and end- ing on September 30 but does not in- clude any 12-month period that began prior to October 1, 2000.
(7) Entered. ‘‘Entered’’ means entered, or withdrawn from warehouse for con- sumption, in the customs territory of the United States.
(b) Limitations on preferential treat- ment—(1) General. During the year that begins on October 1, 2002, and during any subsequent year, articles of a pro- ducer or an entity controlling produc- tion that conform to the production standards set forth in § 10.223(a)(6) will be eligible for preferential treatment only if:
(i) The aggregate cost of fabrics (ex- clusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.223(a)(6) during the immediately preceding year was at least 75 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trim- mings) contained in all of those arti- cles of that producer or that entity controlling production that are entered as articles described in § 10.223(a)(6) during that year; or
(ii) In a case in which the 75 percent requirement set forth in paragraph (b)(1)(i) of this section was not met during a year and therefore those arti- cles of that producer or that entity controlling production were not eligi- ble for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the produc- tion of all of those articles of that pro- ducer or that entity controlling pro- duction that conform to the production standards set forth in § 10.223(a)(6) and that were entered during the imme- diately preceding year was at least 85
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percent of the aggregate declared cus- toms value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production stand- ards set forth in § 10.223(a)(6) and that were entered during that year; and
(iii) In conjunction with the filing of the claim for preferential treatment under § 10.225, the importer records on the entry summary or warehouse with- drawal for consumption (CBP Form 7501, column 34), or its electronic equivalent, the distinct and unique identifier assigned by CBP to the appli- cable documentation prescribed under paragraph (c) of this section.
(2) Rules of application—(i) General. For purposes of paragraphs (b)(1)(i) and (b)(1)(ii) of this section and for pur- poses of preparing and filing the docu- mentation prescribed in paragraph (c) of this section, the following rules will apply:
(A) The articles in question must have been produced in the manner specified in § 10.223(a)(6) and the arti- cles in question must be entered within the same year;
(B) Articles that are exported to countries other than the United States and are never entered are not to be considered in determining compliance with the 75 or 85 percent standard spec- ified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section;
(C) Articles that are entered under an HTSUS subheading other than the HTSUS subheading which pertains to articles described in § 10.223(a)(6) are not to be considered in determining compliance with the 75 percent stand- ard specified in paragraph (b)(1)(i) of this section;
(D) For purposes of determining com- pliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section, all articles that conform to the production standards set forth in § 10.223(a)(6) must be considered, re- gardless of the HTSUS subheading under which they were entered;
(E) Fabric components and fabrics that constitute findings or trimmings are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section;
(F) Beginning October 1, 2002, in order for articles to be eligible for pref- erential treatment in a given year, a producer of, or entity controlling pro- duction of, those articles must have met the 75 percent standard specified in paragraph (b)(1)(i) of this section during the immediately preceding year. If articles of a producer or entity controlling production fail to meet the 75 percent standard specified in para- graph (b)(1)(i) of this section during a year, articles of that producer or enti- ty controlling production:
(1) Will not be eligible for pref- erential treatment during the fol- lowing year;
(2) Will remain ineligible for pref- erential treatment until the year that follows a year in which articles of that producer or entity controlling produc- tion met the 85 percent standard speci- fied in paragraph (b)(1)(ii) of this sec- tion; and
(3) After the 85 percent standard specified in paragraph (b)(1)(ii) of this section has been met, will again be sub- ject to the 75 percent standard speci- fied in paragraph (b)(1)(i) of this sec- tion during the following year for pur- poses of determining eligibility for preferential treatment in the next year.
(G) A new producer or new entity controlling production, that is, a pro- ducer or entity controlling production which did not produce or control pro- duction of articles that were entered as articles described in § 10.223(a)(6) during the immediately preceding year, must first establish compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section as a pre- requisite to preparation of the declara- tion of compliance referred to in para- graph (c) of this section;
(H) A declaration of compliance pre- pared by a producer or by an entity controlling production must cover all production of that producer or all pro- duction that the entity controls for the year in question;
(I) A producer is not required to pre- pare a declaration of compliance if all of its production is covered by a dec- laration of compliance prepared by an entity controlling production;
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(J) In the case of a producer, the 75 or 85 percent standard specified in para- graph (b)(1)(i) or paragraph (b)(1)(ii) of this section and the declaration of compliance procedure under paragraph (c) of this section apply to all articles of that producer for the year in ques- tion, even if some but not all of that production is also covered by a declara- tion of compliance prepared by an enti- ty controlling production;
(K) The U.S. importer does not have to be the producer or the entity con- trolling production who prepared the declaration of compliance; and
(L) The exclusion references regard- ing findings and trimmings in para- graph (b)(1)(i) and paragraph (b)(1)(ii) of this section apply to all findings and trimmings, whether or not they are of foreign origin.
(ii) Examples. The following examples will illustrate application of the prin- ciples set forth in paragraph (b)(2)(i) of this section.
Example 1. A CBTPA beneficiary country producer of articles that meet the produc- tion standards specified in § 10.223(a)(6) in the first year sends 50 percent of that production to CBTPA region markets and the other 50 percent to the U.S. market; the cost of the fabrics formed in the United States equals 100 percent of the value of all of the fabric in the articles sent to the CBTPA region and 60 percent of the value of all of the fabric in the articles sent to the United States. Although the cost of fabrics formed in the United States is more than 75 percent of the value of all of the fabric used in all of the articles produced, this producer could not prepare a valid declaration of compliance because the articles sent to the United States did not meet the minimum 75 percent standard.
Example 2. A producer sends to the United States in the first year three shipments of articles that meet the description in § 10.223(a)(6); one of those shipments is en- tered under the HTSUS subheading that cov- ers articles described in § 10.223(a)(6), the sec- ond shipment is entered under the HTSUS subheading that covers articles described in § 10.223(a)(12), and the third shipment is en- tered under subheading 9802.00.80, HTSUS. In determining whether the minimum 75 per- cent standard has been met in the first year for purposes of entry of articles under the HTSUS subheading that covers articles de- scribed in § 10.223(a)(6) during the following (that is, second) year, consideration must be restricted to the articles in the first ship- ment and therefore must not include the ar- ticles in the second and third shipments.
Example 3. A producer in the second year begins production of articles that conform to the production standards specified in § 10.223(a)(6); some of those articles are en- tered in that year under HTSUS subheading 6212.10 and others under HTSUS subheading 9802.00.80 but none are entered in that year under the HTSUS subheading which pertains to articles described in § 10.223(a)(6) because the 75 percent standard had not been met in the preceding (that is, first) year. In this case the 85 percent standard applies, and all of the articles that were entered under the various HTSUS provisions in the second year must be taken into account in determining whether that 85 percent standard has been met. If the 85 percent was met in the aggre- gate for all of the articles entered in the sec- ond year, in the next (that is, third) year ar- ticles of that producer may receive pref- erential treatment under the HTSUS sub- heading which pertains to articles described in § 10.223(a)(6).
Example 4. An entity controlling produc- tion of articles that meet the description in § 10.223(a)(6) buys for the U.S., Canadian and Mexican markets; the articles in each case are first sent to the United States where they are entered for consumption and then placed in a commercial warehouse from which they are shipped to various stores in the United States, Canada and Mexico. Not- withstanding the fact that some of the arti- cles ultimately ended up in Canada or Mex- ico, a declaration of compliance prepared by the entity controlling production must cover all of the articles rather than only those that remained in the United States because all of those articles had been entered for con- sumption.
Example 5. Fabric is cut and sewn in the United States with other U.S. materials to form cups which are joined together to form brassiere front subassemblies in the United States, and those front subassemblies are then placed in a warehouse in the United States where they are held until the fol- lowing year; during that following year all of the front subassemblies are shipped to a CBTPA beneficiary country where they are assembled with elastic strips and labels pro- duced in an Asian country and other fabrics, components or materials produced in the CBTPA beneficiary country to form articles that meet the production standards specified in § 10.223(a)(6) and that are then shipped to the United States and entered during that same year. In determining whether the en- tered articles meet the minimum 75 or 85 percent standard, the fabric in the elastic strips and labels is to be disregarded entirely because the strips and labels constitute find- ings or trimmings for purposes of this sec- tion, and all of the fabric in the front sub- assemblies is countable because it was all formed in the United States and used in the
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production of articles that were entered in the same year.
Example 6. A CBTPA beneficiary country producer’s entire production of articles that meet the description in § 10.223(a)(6) is sent to a U.S. importer in two separate ship- ments, one in February and the other in June of the same calendar year; the articles shipped in February do not meet the min- imum 75 percent standard, the articles shipped in June exceed the 85 percent stand- ard, and the articles in the two shipments, taken together, do meet the 75 percent standard; the articles covered by the Feb- ruary shipment are entered for consumption on March 1 of that calendar year, and the ar- ticles covered by the June shipment are placed in a CBP bonded warehouse upon ar- rival and are subsequently withdrawn from warehouse for consumption on November 1 of that calendar year. The CBTPA beneficiary country producer may not prepare a valid declaration of compliance covering the arti- cles in the first shipment because those arti- cles did not meet the minimum 75 percent standard and because those articles cannot be included with the articles of the second shipment on the same declaration of compli- ance since they were entered in a different year. However, the CBTPA beneficiary coun- try producer may prepare a valid declaration of compliance covering the articles in the second shipment because those articles did meet the requisite 85 percent standard which would apply for purposes of entry of articles in the following year.
Example 7. A producer in the second year begins production of articles exclusively for the U.S. market that meet the production standards specified in § 10.223(a)(6), but the entered articles do not meet the requisite 85 percent standard until the third year; the en- tered articles fail to meet the 75 percent standard in the fourth year; and the entered articles do not attain the 85 percent standard until the sixth year. The producer’s articles may not receive preferential treatment dur- ing the second year because there was no production (and thus there were no entered articles) in the immediately preceding (that is, first) year on which to assess compliance with the 75 percent standard. The producer’s articles also may not receive preferential treatment during the third year because the 85 percent standard was not met in the im- mediately preceding (that is, second) year. However, the producer’s articles are eligible for preferential treatment during the fourth year based on compliance with the 85 percent standard in the immediately preceding (that is, third) year. The producer’s articles may not receive preferential treatment during the fifth year because the 75 percent stand- ard was not met in the immediately pre- ceding (that is, fourth) year. The producer’s articles may not receive preferential treat- ment during the sixth year because the 85
percent standard has become applicable and was not met in the immediately preceding (that is, fifth) year. The producer’s articles are eligible for preferential treatment during the seventh year because the 85 percent standard was met in the immediately pre- ceding (that is, sixth) year, and during that seventh year the 75 percent standard is appli- cable for purposes of determining whether the producer’s articles are eligible for pref- erential treatment in the following (that is, eighth) year.
Example 8. An entity controlling produc- tion (Entity A) uses five CBTPA beneficiary country producers (Producers 1–5), all of which produce only articles that meet the description in § 10.223(a)(6); Producers 1–4 send all of their production to the United States and Producer 5 sends 10 percent of its production to the United States and the rest to Europe; Producers 1–3 and Producer 5 produce only pursuant to contracts with En- tity A, but Producer 4 also operates inde- pendently of Entity A by producing for sev- eral U.S. importers, one of which is an entity controlling production (Entity B) that also controls all of the production of articles of one other producer (Producer 6) which sends all of its production to the United States. A declaration of compliance prepared by Enti- ty A must cover all of the articles of Pro- ducers 1–3 and the 10 percent of articles of Producer 5 that are sent to the United States and that portion of the articles of Producer 4 that are produced pursuant to the contract with Entity A, because Entity A controls the production of those articles. There is no need for Producers 1–3 and Producer 5 to prepare a declaration of compliance because they have no production that is not covered by a declaration of compliance prepared by an en- tity controlling production. A declaration of compliance prepared by Producer 4 would cover all of its production, that is, articles produced for Entity A, articles produced for Entity B, and articles produced independ- ently for other U.S. importers; a declaration of compliance prepared by Entity B must cover that portion of the production of Pro- ducer 4 that it controls as well as all of the production of Producer 6 because Entity B also controls all of the production of Pro- ducer 6. Producer 6 would not prepare a dec- laration of compliance because all of its pro- duction is covered by the declaration of com- pliance prepared by Entity B.
(c) Documentation—(1) Initial declara- tion of compliance. In order for an im- porter to comply with the requirement set forth in paragraph (b)(1)(iii) of this section, the producer or the entity con- trolling production must have filed with CBP, in accordance with para- graph (c)(4) of this section, a declara- tion of compliance with the applicable
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75 or 85 percent requirement prescribed in paragraph (b)(1)(i) or (b)(1)(ii) of this section. After filing of the declaration of compliance has been completed, CBP will advise the producer or the entity controlling production of the distinct and unique identifier assigned to that declaration. The producer or the entity controlling production will then be re- sponsible for advising each appropriate U.S. importer of that distinct and unique identifier for purposes of re- cording that identifier on the entry summary or warehouse withdrawal. In order to provide sufficient time for ad- vising the U.S. importer of that dis- tinct and unique identifier prior to the arrival of the articles in the United States, the producer or the entity con- trolling production should file the dec- laration of compliance with CBP at least 10 calendar days prior to the date of the first shipment of the articles to the United States.
(2) Amended declaration of compliance. If the information on the declaration of compliance referred to in paragraph (c)(1) of this section is based on an esti- mate because final year-end informa- tion was not available at that time and the final data differs from the esti-
mate, or if the producer or the entity controlling production has reason to believe for any other reason that the declaration of compliance that was filed contained erroneous information, within 30 calendar days after the final year-end information becomes avail- able or within 30 calendar days after the date of discovery of the error:
(i) The producer or the entity con- trolling production must file with the CBP office identified in paragraph (c)(4) of this section an amended dec- laration of compliance containing that final year-end information or other corrected information; or
(ii) If that final year-end information or other corrected information dem- onstrates noncompliance with the ap- plicable 75 or 85 percent requirement, the producer or the entity controlling production must in writing advise both the CBP office identified in paragraph (c)(4) of this section and each appro- priate U.S. importer of that fact.
(3) Form and preparation of declaration of compliance—(i) Form. The declaration of compliance referred to in paragraph (c)(1) of this section may be printed and reproduced locally and must be in the following format:
CARIBBEAN BASIN TRADE PARTNERSHIP ACT DECLARATION OF COMPLIANCE FOR BRASSIERES [19 CFR 10.223(a)(6) and 10.228]
1. Year beginning date: October 1, llll Official U.S. Customs and Border Year ending date: September 30, llll Protection Use Only
Assigned number: lllll Assignment date: lllll
2. Identity of preparer (producer or entity controlling production): Full name and address: Telephone number: lllll
Facsimile number: lllll Importer identification number: lllll
3. If the preparer is an entity controlling production, provide the following for each producer: Full name and address: Telephone number: lllll
Facsimile number: lllll 4. Aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the produc-
tion of brassieres that were entered during the year: lllll 5. Aggregate declared customs value of the fabric (exclusive of all findings and trimmings) contained in brassieres that were en-
tered during the year: lllll 6. I declare that the aggregate cost of fabric (exclusive of all findings and trimmings) formed in the United States was at least
75 percent (or 85 percent, if applicable under 19 CFR 10.228(b)(1)(ii)) of the aggregate declared customs value of the fabric contained in brassieres entered during the year.
7. Authorized signature: 8. Name and title (print or type): lllllllll
Date:
(ii) Preparation. The following rules will apply for purposes of completing the declaration of compliance set forth in paragraph (c)(3)(i) of this section:
(A) In block 1, fill in the year com- mencing October 1 and ending Sep-
tember 30 of the calendar year during which the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was met;
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(B) Block 2 should state the legal name and address (including country) of the preparer and should also include the preparer’s importer identification number (see § 24.5 of this chapter), if the preparer has one;
(C) Block 3 should state the legal name and address (including country) of the CBTPA beneficiary country pro- ducer if that producer is not already identified in block 2. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers;
(D) Blocks 4 and 5 apply only to arti- cles that were entered during the year identified in block 1; and
(E) In block 7, the signature must be that of an authorized officer, employee, agent or other person having knowl- edge of the relevant facts and the date must be the date on which the declara- tion of compliance was completed and signed.
(4) Filing of declaration of compliance. The declaration of compliance referred to in paragraph (c)(1) of this section:
(i) Must be completed either in the English language or in the language of the country in which the articles cov- ered by the declaration were produced. If the declaration is completed in a language other than English, the pro- ducer or the entity controlling produc- tion must provide to CBP upon request a written English translation of the declaration; and
(ii) Must be filed with the New York Strategic Trade Center, Customs and Border Protection, 1 Penn Plaza, New York, New York 10119.
(d) Verification of declaration of compli- ance—(1) Verification procedure. A dec- laration of compliance filed under this section will be subject to whatever verification CBP deems necessary. In the event that CBP for any reason is prevented from verifying the state- ments made on a declaration of compli- ance, CBP may deny any claim for preferential treatment made under § 10.225 that is based on that declara- tion. A verification of a declaration of compliance may involve, but need not be limited to, a review of:
(i) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity con-
trolling production, or any other per- son under part 163 of this chapter;
(ii) Documentation and other infor- mation regarding all articles that meet the production standards specified in § 10.223(a)(6) that were exported to the United States and that were entered during the year in question, whether or not a claim for preferential treatment was made under § 10.225. Those records and other information include, but are not limited to, work orders and other production records, purchase orders, invoices, bills of lading and other ship- ping documents;
(iii) Evidence to document the cost of fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work orders and other production records, and inventory control records;
(iv) Evidence to document the cost or value of all fabric other than fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other ship- ping documents, and customs import and clearance documents, work orders and other production records, and in- ventory control records; and
(v) Accounting books and documents to verify the records and information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of this section. The verification of purchase orders, in- voices and bills of lading will be ac- complished through the review of a dis- tinct audit trail. The audit trail docu- ments must consist of a cash disburse- ment or purchase journal or equivalent records to establish the purchase of the fabric. The headings in each of these journals or other records must contain the date, vendor name, and amount paid for the fabric. The verification of production records and work orders will be accomplished through analysis of the inventory records of the pro- ducer or entity controlling production. The inventory records must reflect the production of the finished article which must be referenced to the original pur- chase order or lot number covering the fabric used in production. In the inven- tory production records, the inventory
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should show the opening balance of the inventory plus the purchases made dur- ing the accounting period and the in- ventory closing balance.
(2) Notice of determination. If, based on a verification of a declaration of com- pliance filed under this section, CBP determines that the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was not met, CBP will publish a notice of that determination in the FEDERAL REGISTER.
[CBP Dec. 04–40, 69 FR 69518, Nov. 30, 2004]
NON-TEXTILE ARTICLES UNDER THE UNITED STATES-CARIBBEAN BASIN TRADE PARTNERSHIP ACT
SOURCE: T.D. 00–68, 65 FR 59663, Oct. 5, 2000, unless otherwise noted.
§ 10.231 Applicability. Title II of Public Law 106–200 (114
Stat. 251), entitled the United States- Caribbean Basin Trade Partnership Act (CBTPA), amended section 213(b) of the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 2701–2707) to authorize the President to extend addi- tional trade benefits to countries that have been designated as beneficiary countries under the CBERA. Section 213(b)(3) of the CBERA (19 U.S.C. 2703(b)(3)) provides for special pref- erential tariff treatment of certain non-textile articles that are otherwise excluded from duty-free treatment under the CBERA. The provisions of §§ 10.231–10.237 of this part set forth the legal requirements and procedures that apply for purposes of obtaining pref- erential tariff treatment pursuant to CBERA section 213(b)(3).
[T.D. 00–68, 65 FR 59663, Oct. 5, 2000; 65 FR 67263, Nov. 9, 2000]
§ 10.232 Definitions. When used in §§ 10.231 through 10.237,
the following terms have the meanings indicated:
CBERA. ‘‘CBERA’’ means the Carib- bean Basin Economic Recovery Act, 19 U.S.C. 2701–2707.
CBTPA beneficiary country. ‘‘CBTPA beneficiary country’’ means a ‘‘bene- ficiary country’’ as defined in § 10.191(b)(1) for purposes of the CBERA which the President also has des-
ignated as a beneficiary country for purposes of preferential duty treat- ment of articles under 19 U.S.C. 2703(b)(3) and which has been the sub- ject of a finding by the President or his designee, published in the FEDERAL REGISTER, that the beneficiary country has satisfied the requirements of 19 U.S.C. 2703(b)(4)(A)(ii).
CBTPA originating good. ‘‘CBTPA originating good’’ means a good that meets the rules of origin for a good as set forth in General Note 12, HTSUS, and in the appendix to part 181 of this chapter and as applied under § 10.233(b).
HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States.
NAFTA. ‘‘NAFTA’’ means the North American Free Trade Agreement en- tered into by the United States, Can- ada, and Mexico on December 17, 1992.
Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ when used with reference to an imported article means entry, or withdrawal from ware- house for consumption, in the customs territory of the United States with duty and other tariff treatment that is identical to the tariff treatment that would be accorded at that time under Annex 302.2 of the NAFTA to an im- ported article described in the same 8- digit subheading of the HTSUS that is a good of Mexico.
[T.D. 00–68, 65 FR 59663, Oct. 5, 2000; 65 FR 67264, Nov. 9, 2000]
§ 10.233 Articles eligible for pref- erential tariff treatment.
(a) General. The preferential tariff treatment referred to in § 10.231 applies to any of the following articles, pro- vided that the article in question is a CBTPA originating good, is imported directly into the customs territory of the United States from a CBTPA bene- ficiary country, and is not accorded duty-free treatment under U.S. Note 2(b), Subchapter II, Chapter 98, HTSUS (see § 10.26):
(1) Footwear not designated on Au- gust 5, 1983, as eligible articles for the purpose of the Generalized System of Preferences under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467);
(2) Tuna, prepared or preserved in any manner, in airtight containers;
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(3) Petroleum, or any product derived from petroleum, provided for in head- ings 2709 and 2710 of the HTSUS;
(4) Watches and watch parts (includ- ing cases, bracelets, and straps), of whatever type including, but not lim- ited to, mechanical, quartz digital or quartz analog, if those watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply; and
(5) Articles to which reduced rates of duty apply under § 10.198a, except as otherwise provided in paragraph (c) of this section.
(b) Application of NAFTA rules of ori- gin. In determining whether an article is a CBTPA originating good for pur- poses of paragraph (a) of this section, application of the provisions of General Note 12 of the HTSUS and the appendix to part 181 of this chapter will be sub- ject to the following rules:
(1) No country other than the United States and a CBTPA beneficiary coun- try may be treated as being a party to the NAFTA;
(2) Any reference to trade between the United States and Mexico will be deemed to refer to trade between the United States and a CBTPA beneficiary country;
(3) Any reference to a party will be deemed to refer to a CBTPA bene- ficiary country or the United States; and
(4) Any reference to parties will be deemed to refer to any combination of CBTPA beneficiary countries or to the United States and one or more CBTPA beneficiary countries (or any combina- tion involving the United States and CBTPA beneficiary countries).
(c) Duty reductions for leather-related articles. If, after it is determined that an article described in paragraph (a)(5) of this section qualifies as a CBTPA originating good and is eligible for preferential tariff treatment under this section, it is determined that the arti- cle in question also would otherwise qualify for a reduced rate of duty under § 10.198a and that reduced rate of duty is lower than the rate of duty that would apply under this section, that lower rate of duty will apply to the ar- ticle for purposes of preferential tariff treatment under this section.
(d) Imported directly defined. For pur- poses of paragraph (a) of this section, the words ‘‘imported directly’’ mean:
(1) Direct shipment from any CBTPA beneficiary country to the United States without passing through the territory of any country that is not a CBTPA beneficiary country;
(2) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA bene- ficiary country, the articles in the shipment do not enter into the com- merce of any country that is not a CBTPA beneficiary country while en route to the United States and the in- voices, bills of lading, and other ship- ping documents show the United States as the final destination; or
(3) If the shipment is from any CBTPA beneficiary country to the United States through the territory of any country that is not a CBTPA bene- ficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon ar- rival in the United States are imported directly only if they:
(i) Remained under the control of the customs authority of the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the producer’s sales agent; and
(iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
§ 10.234 Certificate of Origin.
A Certificate of Origin as specified in § 10.236 must be employed to certify that an article described in § 10.233(a)(1) through (5) being exported from a CBTPA beneficiary country to the United States qualifies for the pref- erential tariff treatment referred to in § 10.231. The Certificate of Origin must be prepared by the exporter in the CBTPA beneficiary country. Where the CBTPA beneficiary country exporter is
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not the producer of the article, that ex- porter may complete and sign a Certifi- cate of Origin on the basis of:
(a) Its reasonable reliance on the pro- ducer’s written representation that the article qualifies for preferential tariff treatment; or
(b) A completed and signed Certifi- cate of Origin for the article volun- tarily provided to the exporter by the producer.
§ 10.235 Filing of claim for preferential tariff treatment.
(a) Declaration. In connection with a claim for preferential tariff treatment for an article described in § 10.233(a)(1) through (5), the importer must make a written declaration that the article qualifies for that treatment. The writ- ten declaration should be made by in- cluding on the entry summary, or equivalent documentation, the symbol ‘‘R’’ as a prefix to the subheading of the HTSUS under which the article in question is classified. Except in any of the circumstances described in § 10.236(d)(1), the declaration required under this paragraph must be based on a complete and properly executed original Certificate of Origin that cov- ers the article being imported and that is in the possession of the importer.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the im- porter has reason to believe that a Cer- tificate of Origin on which a declara- tion was based contains information that is not correct, the importer must within 30 calendar days after the date of discovery of the error make a cor- rected declaration and pay any duties that may be due. A corrected declara- tion will be effected by submission of a letter or other written statement to the Customs port where the declara- tion was originally filed.
§ 10.236 Maintenance of records and submission of Certificate by im- porter.
(a) Maintenance of records. Each im- porter claiming preferential tariff treatment for an article under § 10.235 must maintain in the United States, in accordance with the provisions of part 163 of this chapter, all records relating to the importation of the article. Those
records must include the original Cer- tificate of Origin referred to in § 10.235(a) and any other relevant docu- ments or other records as specified in § 163.1(a) of this chapter.
(b) Submission of Certificate. An im- porter who claims preferential tariff treatment on an article under § 10.235(a) must provide, at the request of the port director, a copy of the Cer- tificate of Origin pertaining to the ar- ticle. A Certificate of Origin submitted to CBP under this paragraph:
(1) Must be on CBP Form 450, includ- ing privately-printed copies of that Form, or, as an alternative to CBP Form 450, in an approved computerized format or other medium or format as is approved by the Office of International Trade, U.S. Customs and Border Pro- tection, Washington, DC 20229. An al- ternative format must contain the same information and certification set forth on CBP Form 450;
(2) Must be signed by the exporter or by the exporter’s authorized agent hav- ing knowledge of the relevant facts;
(3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is com- pleted in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
(4) May be applicable to: (i) A single importation of an article
into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(ii) Multiple importations of iden- tical articles into the United States that occur within a specified period, not to exceed 12 months, set out in the Certificate by the exporter.
(c) Correction and nonacceptance of Certificate. If the port director deter- mines that a Certificate of Origin is il- legible or defective or has not been completed in accordance with para- graph (b) of this section, the importer will be given a period of not less than five working days to submit a cor- rected Certificate. A Certificate will not be accepted in connection with sub- sequent importations during a period
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referred to in paragraph (b)(4)(ii) of this section if the port director deter- mined that a previously imported iden- tical article covered by the Certificate did not qualify for preferential treat- ment.
(d) Certificate not required—(1) Gen- eral. Except as otherwise provided in paragraph (d)(2) of this section, an im- porter is not required to have a Certifi- cate of Origin in his possession for:
(i) An importation of an article for which the port director has in writing waived the requirement for a Certifi- cate of Origin because the port director is otherwise satisfied that the article qualifies for preferential tariff treat- ment;
(ii) A non-commercial importation of an article; or
(iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the port director, the producer, ex- porter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed state- ment:
I hereby certify that the article covered by this shipment qualifies for preferential tariff treatment under the CBTPA.
Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent llllllllllllllllllllllll
Name llllllllllllllllllllllll
Title llllllllllllllllllllllll
Address llllllllllllllllllllllll
Signature and Date
(2) Exception. If the port director de- termines that an importation described in paragraph (d)(1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Or- igin requirement under §§ 10.234 through 10.236, the port director will notify the importer in writing that for that importation the importer must have in his possession a valid Certifi- cate of Origin to support the claim for preferential tariff treatment. The im- porter will have 30 calendar days from
the date of the written notice to obtain a valid Certificate of Origin, and a fail- ure to timely obtain the Certificate of Origin will result in denial of the claim for preferential tariff treatment. For purposes of this paragraph, a ‘‘series of importations’’ means two or more en- tries covering articles arriving on the same day from the same exporter and consigned to the same person.
§ 10.237 Verification and justification of claim for preferential tariff treat- ment.
(a) Verification by Customs. A claim for preferential tariff treatment made under § 10.235, including any statements or other information contained on a Certificate of Origin submitted to Cus- toms under § 10.236, will be subject to whatever verification the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, the port director may deny the claim for preferential tariff treatment. A verification of a claim for preferential tariff treatment may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation in a CBTPA beneficiary coun- try regarding the country of origin of an article and its constituent mate- rials, including, but not limited to, production records, information relat- ing to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
(3) Evidence in a CBTPA beneficiary country to document the use of U.S. materials in the production of the arti- cle in question, such as purchase or- ders, invoices, bills of lading and other shipping documents, and customs im- port and clearance documents.
(b) Importer requirements. In order to make a claim for preferential tariff treatment under § 10.235, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the article qualifies for pref- erential tariff treatment. Those records must include documents that
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support a claim that the article in question qualifies for preferential tariff treatment because it meets the appli- cable rule of origin set forth in General Note 12, HTSUS, and in the appendix to part 181 of this chapter. A properly completed Certificate of Origin in the form prescribed in § 10.236(b) is a record that would serve this purpose;
(2) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from the CBTPA beneficiary country to the United States. If the imported article was shipped through a country other than a CBTPA beneficiary country and the invoices and other documents from the CBTPA beneficiary country do not show the United States as the final destination, the importer also must have documentation that demonstrates that the conditions set forth in § 10.233(d)(3)(i) through (iii) were met; and
(4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this section justify the importer’s claim for preferential tariff treatment.
Subpart F—Andean Trade Pro- motion and Drug Eradication Act
APPAREL AND OTHER TEXTILE ARTICLES UNDER THE ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT
SOURCE: Sections 10.241 through 10.248 issued by CBP Dec. 06–21, 71 FR 44574, Aug. 7, 2006, unless otherwise noted.
§ 10.241 Applicability. Title XXXI of Public Law 107–210 (116
Stat. 933), entitled the Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended sections 202, 203, 204, and 208 of the Andean Trade Pref- erence Act (the ATPA, 19 U.S.C. 3201– 3206) to authorize the President to ex- tend additional trade benefits to coun- tries that are designated as beneficiary countries under the ATPA. Section
204(b)(3) of the ATPA (19 U.S.C. 3203(b)(3)) provides for the preferential treatment of certain apparel and other textile articles from those ATPA bene- ficiary countries which the President designates as ATPDEA beneficiary countries. The provisions of §§ 10.241 through 10.248 of this part set forth the legal requirements and procedures that apply for purposes of obtaining pref- erential treatment pursuant to ATPA section 204(b)(3) and Subchapter XXI, Chapter 98, HTSUS.
§ 10.242 Definitions.
When used in §§ 10.241 through 10.248, the following terms have the meanings indicated:
Apparel articles. ‘‘Apparel articles’’ means goods classifiable in Chapters 61 and 62 and headings 6501, 6502, 6503, and 6504 and subheadings 6406.99.15 and 6505.90 of the HTSUS.
Assembled or sewn or otherwise assem- bled in one or more ATPDEA beneficiary countries. ‘‘Assembled’’ and ‘‘sewn or otherwise assembled’’ when used in the context of production of an apparel or other textile article in one or more ATPDEA beneficiary countries has ref- erence to a joining together of two or more components that occurred in one or more ATPDEA beneficiary coun- tries, whether or not a prior joining op- eration was performed on the article or any of its components in the United States.
ATPA. ‘‘ATPA’’ means the Andean Trade Preference Act, 19 U.S.C. 3201– 3206.
ATPDEA beneficiary country. ‘‘ATPDEA beneficiary country’’ means a ‘‘beneficiary country’’ as defined in § 10.202(a) for purposes of the ATPA which the President also has des- ignated as a beneficiary country for purposes of preferential treatment of apparel and other textile articles under 19 U.S.C. 3203(b)(3) and which has been the subject of a determination by the President or his designee, published in the FEDERAL REGISTER, that the bene- ficiary country has satisfied the re- quirements of 19 U.S.C. 3203(b)(5)(A)(ii).
Chief value. ‘‘Chief value’’ when used with reference to llama, alpaca, and vicuña means that the value of those materials exceeds the value of any
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other single textile material in the fab- ric or component under consideration, with the value in each case determined by application of the principles set forth in § 10.243(c)(1)(ii).
Cut in one or more ATPDEA beneficiary countries. ‘‘Cut’’ when used in the con- text of production of textile luggage in one or more ATPDEA beneficiary coun- tries means that all fabric components used in the assembly of the article were cut from fabric in one or more ATPDEA beneficiary countries, or were cut from fabric in the United States and used in a partial assembly oper- ation in the United States prior to cut- ting of fabric and assembly of the arti- cle in one or more ATPDEA beneficiary countries, or both.
Foreign origin. ‘‘Foreign origin’’ means, in the case of a finding or trim- ming of non-textile materials, that the finding or trimming is a product of a country other than the United States or a ATPDEA beneficiary country and, in the case of a finding, trimming, or interlining of textile materials, that the finding, trimming, or interlining does not meet all of the U.S. and ATPDEA beneficiary country produc- tion requirements for yarns, fabrics, and/or components specified under § 10.243(a) for the article in which it is incorporated.
HTSUS. ‘‘HTSUS’’means the Har- monized Tariff Schedule of the United States.
Knit-to-Shape Components. ‘‘Knit-to- shape,’’ when used with reference to textile components, means components that are knitted or crocheted from a yarn directly to a specific shape, that is, the shape or form of the component as it is used in the apparel article, con- taining at least one self-start edge. Minor cutting or trimming will not af- fect the determination of whether a component is ‘‘knit-to-shape.’’
Luggage. ‘‘Luggage’’ means travel goods (such as trunks, hand trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight bags, pull- man bags, gladstone bags, traveling bags, knapsacks, kitbags, haversacks, duffle bags, and like articles designed to contain clothing or other personal effects during travel) and brief cases, portfolios, school bags, photographic equipment bags, golf bags, camera
cases, binocular cases, gun cases, occu- pational luggage cases (for example, physicians’ cases, sample cases), and like containers and cases designed to be carried with the person. The term ‘‘luggage’’ does not include handbags (that is, pocketbooks, purses, shoulder bags, clutch bags, and all similar arti- cles, by whatever name known, cus- tomarily carried by women or girls). The term ‘‘luggage’’ also does not in- clude flat goods (that is, small flatware designed to be carried on the person, such as banknote cases, bill cases, bill- folds, bill purses, bill rolls, card cases, change cases, cigarette cases, coin purses, coin holders, compacts, cur- rency cases, key cases, letter cases, li- cense cases, money cases, pass cases, passport cases, powder cases, spectacle cases, stamp cases, vanity cases, to- bacco pouches, and similar articles).
NAFTA. ‘‘NAFTA’’ means the North American Free Trade Agreement en- tered into by the United States, Can- ada, and Mexico on December 17, 1992.
Preferential treatment. ‘‘Preferential treatment’’ means entry, or with- drawal from warehouse for consump- tion, in the customs territory of the United States free of duty and free of any quantitative restrictions, limita- tions, or consultation levels as pro- vided in 19 U.S.C. 3203(b)(3).
Self-start edge. ‘‘Self-start edge’’ when used with reference to knit-to-shape components means a finished edge which is finished as the component comes off the knitting machine. Sev- eral components with finished edges may be linked by yarn or thread as they are produced from the knitting machine.
Wholly formed fabric components. ‘‘Wholly formed,’’ when used with ref- erence to fabric components, means that all of the production processes, starting with the production of wholly formed fabric and ending with a com- ponent that is ready for incorporation into an apparel article, took place in a single country.
Wholly formed fabrics. ‘‘Wholly formed,’’ when used with reference to fabric(s), means that all of the produc- tion processes, starting with polymers, fibers, filaments, textile strips, yarns, twine, cordage, rope, or strips of fabric and ending with a fabric by a weaving,
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knitting, needling, tufting, felting, en- tangling or other process, took place in a single country.
Wholly formed yarns. ‘‘Wholly formed,’’ when used with reference to yarns, means that all of the production processes, starting with the extrusion of filament, strip, film, or sheet and in- cluding drawing to fully orient a fila- ment or slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a yarn or plied yarn, took place in the United States or in one or more ATPDEA ben- eficiary countries.
§ 10.243 Articles eligible for pref- erential treatment.
(a) General. Subject to paragraphs (b) and (c) of this section, preferential treatment applies to the following ap- parel and other textile articles that are imported directly into the customs ter- ritory of the United States from an ATPDEA beneficiary country:
(1) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries, or in the United States, or in both, exclusively from any one of the following:
(i) Fabrics or fabric components wholly formed, or components knit-to- shape, in the United States, from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries (including fabrics not formed from yarns, if those fabrics are classifi- able under heading 5602 or 5603 of the HTSUS and are formed in the United States), provided that, if the apparel article is assembled from knitted or crocheted or woven wholly formed fab- rics or from knitted or crocheted or woven wholly formed fabric compo- nents produced from fabric, all dyeing, printing, and finishing of that knitted or crocheted or woven fabric or compo- nent was carried out in the United States;
(ii) Fabrics or fabric components formed, or components knit-to-shape, in one or more ATPDEA beneficiary countries from yarns wholly formed in one or more ATPDEA beneficiary coun- tries, if those fabrics (including fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA beneficiary coun-
tries) or components are in chief value of llama, alpaca, and/or vicuña;
(iii) Fabrics or yarns, provided that apparel articles (except articles classi- fiable under subheading 6212.10 of the HTSUS) of those fabrics or yarns would be considered an originating good under General Note 12(t), HTSUS, if the apparel articles had been imported directly from Canada or Mexico; or
(iv) Fabrics or yarns that the Presi- dent or his designee has designated in the FEDERAL REGISTER as fabrics or yarns that cannot be supplied by the domestic industry in commercial quan- tities in a timely manner;
(2) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries, or in the United States, or in both, exclusively from a combination of fabrics, fabric compo- nents, knit-to-shape components or yarns described in two or more of para- graphs (a)(1)(i) through (a)(1)(iv) of this section;
(3) A handloomed, handmade, or folk- lore apparel or other textile article of an ATPDEA beneficiary country that the President or his designee and rep- resentatives of the ATPDEA bene- ficiary country mutually agree is a handloomed, handmade, or folklore ar- ticle and that is certified as a handloomed, handmade, or folklore ar- ticle by the competent authority of the ATPDEA beneficiary country;
(4) Brassieres classifiable under sub- heading 6212.10 of the HTSUS, if both cut and sewn or otherwise assembled in the United States, or in one or more ATPDEA beneficiary countries, or in both, other than articles entered as ar- ticles described in paragraphs (a)(1) through (a)(3) and (a)(7) of this section, and provided that any applicable addi- tional requirements set forth in § 10.248 are met;
(5) Textile luggage assembled in an ATPDEA beneficiary country from fab- ric wholly formed and cut in the United States, from yarns wholly formed in the United States, that is en- tered under subheading 9802.00.80 of the HTSUS;
(6) Textile luggage assembled in one or more ATPDEA beneficiary countries from fabric cut in one or more ATPDEA beneficiary countries from fabric wholly formed in the United
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States from yarns wholly formed in the United States; and
(7) Apparel articles sewn or otherwise assembled in one or more ATPDEA beneficiary countries from fabrics or from fabric components formed, or from components knit-to-shape, in one or more ATPDEA beneficiary countries from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries (includ- ing fabrics not formed from yarns, if those fabrics are classifiable under heading 5602 or 5603 of the HTSUS and are formed in one or more ATPDEA beneficiary countries), including ap- parel articles sewn or otherwise assem- bled in part but not exclusively from any of the fabrics, fabric components formed, or components knit-to-shape described in paragraph (a)(1) of this section.
(b) Dyeing, printing, finishing and other operations—(1) Dyeing, printing and finishing operations. Dyeing, print- ing, and finishing operations may be performed on any yarn, fabric, or knit- to-shape or other component used in the production of any article described under paragraph (a) of this section without affecting the eligibility of the article for preferential treatment, pro- vided that the operation is performed in the United States or in an ATPDEA beneficiary country and not in any other country and subject to the fol- lowing additional conditions:
(i) In the case of an article described in paragraph (a)(1), (a)(2), or (a)(7) of this section that contains a knitted or crocheted or woven fabric, or a knitted or crocheted or woven fabric compo- nent produced from fabric, that was wholly formed in the United States from yarns wholly formed in the United States or in one or more ATPDEA beneficiary countries, as de- scribed in paragraph (a)(1)(i) of this section, any dyeing, printing, or fin- ishing of that knitted or crocheted or woven fabric or component must have been carried out in the United States; and
(ii) In the case of assembled luggage described in paragraph (a)(5) of this section, an operation may be performed in an ATPDEA beneficiary country only if that operation is incidental to
the assembly process within the mean- ing of § 10.16.
(2) Other operations. An article de- scribed under paragraph (a) of this sec- tion that is otherwise eligible for pref- erential treatment will not be disquali- fied from receiving that treatment by virtue of having undergone one or more operations such as embroidering, stone-washing, enzyme-washing, acid washing, perma-pressing, oven-baking, bleaching, garment-dyeing or screen printing, provided that the operation is performed in the United States or in an ATPDEA beneficiary country and not in any other country. However, in the case of assembled luggage described in paragraph (a)(5) of this section, an op- eration may be performed in an ATPDEA beneficiary country without affecting the eligibility of the article for preferential treatment only if it is incidental to the assembly process within the meaning of § 10.16.
(c) Special rules for certain component materials—(1) Foreign findings, trim- mings, interlinings, and yarns—(i) Gen- eral. An article otherwise described under paragraph (a) of this section will not be ineligible for the preferential treatment referred to in § 10.241 because the article contains:
(A) Findings and trimmings of for- eign origin, if the value of those find- ings and trimmings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section ‘‘findings and trim- mings’’ include, but are not limited to, sewing thread, hooks and eyes, snaps, buttons, ‘‘bow buds,’’ decorative lace trim, elastic strips, zippers (including zipper tapes), and labels;
(B) Interlinings of foreign origin, if the value of those interlinings does not exceed 25 percent of the cost of the components of the assembled article. For purposes of this section ‘‘inter- linings’’ include only a chest type plate, a ‘‘hymo’’ piece, or ‘‘sleeve head- er,’’ of woven or weft-inserted warp knit construction and of coarse animal hair or man-made filaments;
(C) Any combination of findings and trimmings of foreign origin and inter- linings of foreign origin, if the total value of those findings and trimmings
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and interlinings does not exceed 25 per- cent of the cost of the components of the assembled article; or
(D) Yarns not wholly formed in the United States or in one or more ATPDEA beneficiary countries if the total weight of all those yarns is not more than 7 percent of the total weight of the article.
(ii) ‘‘Cost’’ and ‘‘value’’ defined. The ‘‘cost’’ of components and the ‘‘value’’ of findings and trimmings or inter- linings referred to in paragraph (c)(1)(i) of this section means:
(A) The ex-factory price of the com- ponents, findings and trimmings, or interlinings as set out in the invoice or other commercial documents, or, if the price is other than ex-factory, the price as set out in the invoice or other com- mercial documents adjusted to arrive at an ex-factory price; or
(B) If the price cannot be determined under paragraph (c)(1)(ii)(A) of this sec- tion or if CBP finds that price to be un- reasonable, all reasonable expenses in- curred in the growth, production, man- ufacture, or other processing of the components, findings and trimmings, or interlinings, including the cost or value of materials and general ex- penses, plus a reasonable amount for profit.
(iii) Treatment of yarns as findings or trimmings. If any yarns not wholly formed in the United States or one or more ATPDEA beneficiary countries are used in an article as a finding or trimming described in paragraph (c)(1)(i)(A) of this section, the yarns will be considered to be a finding or trimming for purposes of paragraph (c)(1)(i) of this section.
(2) Special rule for nylon filament yarn. An article otherwise described under paragraph (a)(1)(i) through (iii), (a)(2), or (a)(7) of this section will not be in- eligible for the preferential treatment referred to in § 10.241 because the arti- cle contains nylon filament yarn (other than elastomeric yarn) that is classifi- able in subheading 5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 of the HTSUS and that is en- tered free of duty from Canada, Mexico, or Israel.
(d) Imported directly defined. For pur- poses of paragraph (a) of this section, the words ‘‘imported directly’’ mean:
(1) Direct shipment from any ATPDEA beneficiary country to the United States without passing through the territory of any country that is not an ATPDEA beneficiary country;
(2) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, the articles in the shipment do not enter into the com- merce of any country that is not an ATPDEA beneficiary country while en route to the United States and the in- voices, bills of lading, and other ship- ping documents show the United States as the final destination; or
(3) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon ar- rival in the United States are imported directly only if they:
(i) Remained under the control of the customs authority of the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the producer’s sales agent; and
(iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
§ 10.244 Certificate of Origin.
(a) General. A Certificate of Origin must be employed to certify that an apparel or other textile article being exported from an ATPDEA beneficiary country to the United States qualifies for the preferential treatment referred to in § 10.241. The Certificate of Origin must be prepared in the ATPDEA bene- ficiary country by the producer or ex- porter or by the producer’s or export- er’s authorized agent in the format
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specified in paragraph (b) of this sec- tion. If the person preparing the Cer- tificate of Origin is not the producer of the article, the person may complete and sign a Certificate of Origin on the basis of:
(1) The person’s reasonable reliance on the producer’s written representa- tion that the article qualifies for pref- erential treatment; or
(2) A completed and signed Certifi- cate of Origin for the article volun- tarily provided to the person by the producer.
(b) Form of Certificate. The Certificate of Origin referred to in paragraph (a) of this section must be in the following format:
ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT TEXTILE CERTIFICATE OF ORIGIN
1. Exporter Name & Address:
2. Producer Name & Address:
3. Importer Name & Address:
4. Description of Article:
5. Preference Group:
Group Each Description Below Is Only a Summary of the Cited CFR Provision.
19 CFR
A ........ Apparel assembled from U.S. formed, dyed, printed and finished fabrics or fabric components, or U.S. formed knit-to-shape components from U.S. or Andean yarns.
10.243(a)(1)(i).
B ........ Apparel assembled from Andean chief value llama, alpaca or vicuña fabrics, fabric components, or knit-to-shape components, from Andean yarns.
10.243(a)(1)(ii).
C ........ Apparel assembled from fabrics or yarns considered as being in short supply in the NAFTA.
10.243(a)(1)(iii).
D ........ Apparel assembled from fabrics or yarns des- ignated as not available in commercial quan- tities in the United States.
10.243(a)(1)(iv).
E ........ Apparel assembled from a combination of two or more yarns, fabrics, fabric components, or knit- to-shape components described in preference groups A though D.
10.243(a)(2).
F ........ Handloomed, handmade, or folklore textile and ap- parel goods.
10.243(a)(3).
G ........ Brassieres assembled in the U.S. and/or one or more Andean beneficiary countries.
10.243(a)(4).
H ........ Textile luggage assembled from U.S. formed fabrics from U.S. yarns.
10.243(a)(5)&(6).
I ......... Apparel assembled from Andean formed fabrics, fabric components, or knit-to-shape components from U.S. or Andean yarns, whether or not also assembled, in part, from yarns, fabrics and fabric components described in preference groups A through D.
10.243(a)(7).
6. U.S./Andean Fabric Producer Name & Address:
7. U.S./Andean Yarn Producer Name & Address:
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ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT TEXTILE CERTIFICATE OF ORIGIN— Continued
8. Handloomed, Handmade, or Folklore Article:
9. Name of Short Supply Fabric or Yarn:
I certify that the information on this document is complete and accurate and I assume the responsibility for proving such representations. I understand that I am liable for any false statements or material omissions made on or in con- nection with this document. I agree to maintain, and present upon request, documentation necessary to support this certificate.
10. Authorized Signature:
11. Company:
12. Name: (Print or Type)
13. Title:
14. Date: (DD/MM/YY)
15. Blanket Period: From: To:
16. Telephone: Facsimile:
(c) Preparation of Certificate. The fol- lowing rules will apply for purposes of completing the Certificate of Origin set forth in paragraph (b) of this section:
(1) Blocks 1 through 5 pertain only to the final article exported to the United States for which preferential treat- ment may be claimed;
(2) Block 1 should state the legal name and address (including country) of the exporter;
(3) Block 2 should state the legal name and address (including country) of the producer. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers. If this information is confidential, it is acceptable to state ‘‘available to Cus- toms and Border Protection (CBP) upon request’’ in block 2. If the pro- ducer and the exporter are the same, state ‘‘same’’ in block 2;
(4) Block 3 should state the legal name and address (including country) of the importer;
(5) Block 4 should provide a full de- scription of each article. The descrip-
tion should be sufficient to relate it to the invoice description and to the de- scription of the article in the inter- national Harmonized System. Include the invoice number as shown on the commercial invoice or, if the invoice number is not known, include another unique reference number such as the shipping order number;
(6) In block 5, insert the letter that designates the preference group which applies to the article according to the description contained in the CFR pro- vision cited on the Certificate for that group;
(7) Blocks 6 through 9 must be com- pleted only when the block in question calls for information that is relevant to the preference group identified in block 5;
(8) Block 6 should state the legal name and address (including country) of the fabric producer;
(9) Block 7 should state the legal name and address (including country) of the yarn producer;
(10) Block 8 should state the name of the folklore article or should state that
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the article is handloomed or handmade of handloomed fabric;
(11) Block 9 should be completed if the article described in block 4 incor- porates a fabric or yarn described in preference group C or D and should state the name of the fabric or yarn that has been considered as being in short supply in the NAFTA or that has been designated as not available in commercial quantities in the United States. Block 9 also should be com- pleted if preference group E or I applies to the article described in block 4 and the article incorporates a fabric or yarn described in preference group C or D;
(12) Block 10 must contain the signa- ture of the producer or exporter or the producer’s or exporter’s authorized agent having knowledge of the relevant facts;
(13) Block 14 should reflect the date on which the Certificate was completed and signed;
(14) Block 15 should be completed if the Certificate is intended to cover multiple shipments of identical arti- cles as described in block 4 that are im- ported into the United States during a specified period of up to one year (see § 10.246(b)(4)(ii)). The ‘‘from’’ date is the date on which the Certificate became applicable to the article covered by the blanket Certificate (this date may be prior to the date reflected in block 14). The ‘‘to’’ date is the date on which the blanket period expires; and
(15) The Certificate may be printed and reproduced locally. If more space is needed to complete the Certificate, at- tach a continuation sheet.
§ 10.245 Filing of claim for preferential treatment.
(a) Declaration. In connection with a claim for preferential treatment for an apparel or other textile article de- scribed in § 10.243, the importer must make a written declaration that the article qualifies for that treatment. The inclusion on the entry summary, or equivalent documentation, of the subheading within Chapter 98 of the HTSUS under which the article is clas- sified will constitute the written dec- laration. Except in any of the cir- cumstances described in § 10.246(d)(1), the declaration required under this
paragraph must be based on a Certifi- cate of Origin that has been completed and properly executed in accordance with § 10.244, that covers the article being imported, and that is in the pos- session of the importer.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the im- porter has reason to believe that a Cer- tificate of Origin on which a declara- tion was based contains information that is not correct, the importer must within 30 calendar days after the date of discovery of the error make a cor- rected declaration and pay any duties that may be due. A corrected declara- tion will be effected by submission of a letter or other written statement to the CBP port where the declaration was originally filed.
§ 10.246 Maintenance of records and submission of Certificate by im- porter.
(a) Maintenance of records. Each im- porter claiming preferential treatment for an article under § 10.245 must main- tain in the United States, in accord- ance with the provisions of part 163 of this chapter, all records relating to the importation of the article. Those records must include a copy of the Cer- tificate of Origin referred to in § 10.245(a) and any other relevant docu- ments or other records as specified in § 163.1(a) of this chapter.
(b) Submission of Certificate. An im- porter who claims preferential treat- ment on an apparel or other textile ar- ticle under § 10.245(a) must provide, at the request of the port director, a copy of the Certificate of Origin pertaining to the article. A Certificate of Origin submitted to CBP under this para- graph:
(1) Must be in writing or must be transmitted electronically through any electronic data interchange system au- thorized by CBP for that purpose;
(2) If in writing, must be signed by the producer or exporter or the pro- ducer’s or exporter’s authorized agent having knowledge of the relevant facts;
(3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is com- pleted in a language other than
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English, the importer must provide to CBP upon request a written English translation of the Certificate; and
(4) May be applicable to: (i) A single importation of an article
into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(ii) Multiple importations of iden- tical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph and § 10.244(c)(14), ‘‘identical articles’’ means articles that are the same in all material respects, including physical characteristics, quality, and reputa- tion.
(c) Correction and nonacceptance of Certificate. If the port director deter- mines that a Certificate of Origin is il- legible or defective or has not been completed in accordance with para- graph (b) of this section, the importer will be given a period of not less than five working days to submit a cor- rected Certificate. A Certificate will not be accepted in connection with sub- sequent importations during a period referred to in paragraph (b)(4)(ii) of this section if the port director deter- mined that a previously imported iden- tical article covered by the Certificate did not qualify for preferential treat- ment.
(d) Certificate not required—(1) Gen- eral. Except as otherwise provided in paragraph (d)(2) of this section, an im- porter is not required to have a Certifi- cate of Origin in his possession for:
(i) An importation of an article for which the port director has in writing waived the requirement for a Certifi- cate of Origin because the port director is otherwise satisfied that the article qualifies for preferential treatment;
(ii) A non-commercial importation of an article; or
(iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the port director, the producer, ex- porter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the
shipment the following signed state- ment:
I hereby certify that the article covered by this shipment qualifies for preferential treatment under the ATPDEA. Check One: ( ) Producer ( ) Exporter ( ) Importer ( ) Agent llllllllllllllllllllllll
Name llllllllllllllllllllllll
Title llllllllllllllllllllllll
Address llllllllllllllllllllllll
Signature and Date
(2) Exception. If the port director de- termines that an importation described in paragraph (d)(1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Or- igin requirement under §§ 10.244 through 10.246, the port director will notify the importer in writing that for that importation the importer must have in his possession a valid Certifi- cate of Origin to support the claim for preferential treatment. The importer will have 30 calendar days from the date of the written notice to obtain a valid Certificate of Origin, and a fail- ure to timely obtain the Certificate of Origin will result in denial of the claim for preferential treatment. For pur- poses of this paragraph, a ‘‘series of im- portations’’ means two or more entries covering articles arriving on the same day from the same exporter and con- signed to the same person.
§ 10.247 Verification and justification of claim for preferential treatment.
(a) Verification by CBP. A claim for preferential treatment made under § 10.245, including any statements or other information contained on a Cer- tificate of Origin submitted to CBP under § 10.246, will be subject to what- ever verification the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, the port director may deny the claim for preferential treatment. A verification of a claim for preferential treatment
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may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to CBP by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation regarding the country of origin of an article and its constituent mate- rials, including, but not limited to, production records, information relat- ing to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
(3) Evidence to document the use of U.S. or ATPDEA beneficiary country materials in the production of the arti- cle in question, such as purchase or- ders, invoices, bills of lading and other shipping documents, and customs im- port and clearance documents.
(b) Importer requirements. In order to make a claim for preferential treat- ment under § 10.245, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the apparel or other textile article qualifies for preferential treat- ment. Those records must include doc- uments that support a claim that the article in question qualifies for pref- erential treatment because it is specifi- cally described in one of the provisions under § 10.243(a). If the importer is claiming that the article incorporates fabric or yarn that was wholly formed in the United States or in an ATPDEA beneficiary country, the importer must have records that identify the producer of the fabric or yarn. A properly com- pleted Certificate of Origin in the form set forth in § 10.244(b) is a record that would serve these purposes;
(2) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the Certificates of Origin or other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from the ATPDEA beneficiary country to the United States. If the imported article was shipped through a country other than an ATPDEA beneficiary country and the invoices and other documents from the ATPDEA beneficiary country
do not show the United States as the final destination, the importer also must have documentation that dem- onstrates that the conditions set forth in § 10.243(d)(3)(i) through (iii) were met; and
(4) Must be prepared to explain, upon request from CBP, how the records and internal controls referred to in para- graphs (b)(1) through (b)(3) of this sec- tion justify the importer’s claim for preferential treatment.
§ 10.248 Additional requirements for preferential treatment of bras- sieres.
(a) Definitions. When used in this sec- tion, the following terms have the meanings indicated:
(1) Producer. ‘‘Producer’’ means an in- dividual, corporation, partnership, as- sociation, or other entity or group that exercises direct, daily operational con- trol over the production process in an ATPDEA beneficiary country.
(2) Entity controlling production. ‘‘En- tity controlling production’’ means an individual, corporation, partnership, association, or other entity or group that is not a producer and that con- trols the production process in an ATPDEA beneficiary country through a contractual relationship or other in- direct means.
(3) Fabrics formed in the United States. ‘‘Fabrics formed in the United States’’ means fabrics that were produced by a weaving, knitting, needling, tufting, felting, entangling or other fabric- making process performed in the United States.
(4) Cost. ‘‘Cost’’ when used with ref- erence to fabrics formed in the United States means:
(i) The price of the fabrics when last purchased, f.o.b. port of exportation, as set out in the invoice or other commer- cial documents, or, if the price is other than f.o.b. port of exportation:
(A) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price; or
(B) If no exportation to an ATPDEA beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the freight, insurance, packing, and other
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costs incurred in transporting the fab- rics to the place of production if in- cluded in that price; or
(ii) If the price cannot be determined under paragraph (a)(4)(i) of this section or if CBP finds that price to be unrea- sonable, all reasonable expenses in- curred in the growth, production, man- ufacture, or other processing of the fabrics, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in forming the fabrics) and general ex- penses, plus a reasonable amount for profit, and the freight, insurance, pack- ing, and other costs, if any, incurred in transporting the fabrics to the port of exportation.
(5) Declared customs value. ‘‘Declared customs value’’ when used with ref- erence to fabric contained in an article means the sum of:
(i) The cost of fabrics formed in the United States that the producer or en- tity controlling production can verify; and
(ii) The cost of all other fabric con- tained in the article, exclusive of all findings and trimmings, determined as follows:
(A) In the case of fabric purchased by the producer or entity controlling pro- duction, the f.o.b. port of exportation price of the fabric as set out in the in- voice or other commercial documents, or, if the price is other than f.o.b. port of exportation:
(1) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price, plus expenses for em- broidering and dyeing, printing, and finishing operations applied to the fab- ric if not included in that price; or
(2) If no exportation to an ATPDEA beneficiary country is involved, the price as set out in the invoice or other commercial documents, plus expenses for embroidering and dyeing, printing, and finishing operations applied to the fabric if not included in that price, but less the freight, insurance, packing, and other costs incurred in trans- porting the fabric to the place of pro- duction if included in that price;
(B) In the case of fabric for which the cost cannot be determined under para- graph (a)(5)(ii)(A) of this section or if CBP finds that cost to be unreasonable,
all reasonable expenses incurred in the growth, production, or manufacture of the fabric, including the cost or value of materials (which includes the cost of non-recoverable scrap generated in the growth, production, or manufacture of the fabric), general expenses and em- broidering and dyeing, printing, and finishing expenses, plus a reasonable amount for profit, and the freight, in- surance, packing, and other costs, if any, incurred in transporting the fabric to the port of exportation;
(C) In the case of fabric components purchased by the producer or entity controlling production, the f.o.b. port of exportation price of those fabric components as set out in the invoice or other commercial documents, less the cost or value of any non-textile mate- rials, and less expenses for cutting or other processing to create the fabric components other than knitting to shape, that the producer or entity con- trolling production can verify, or, if the price is other than f.o.b. port of ex- portation:
(1) The price as set out in the invoice or other commercial documents ad- justed to arrive at an f.o.b. port of ex- portation price, less the cost or value of any non-textile materials, and less expenses for cutting or other proc- essing to create the fabric components other than knitting to shape, that the producer or entity controlling produc- tion can verify; or
(2) If no exportation to an ATPDEA beneficiary country is involved, the price as set out in the invoice or other commercial documents, less the cost or value of any non-textile materials, and less expenses for cutting or other proc- essing to create the fabric components other than knitting to shape, that the producer or entity controlling produc- tion can verify, and less the freight, in- surance, packing, and other costs in- curred in transporting the fabric com- ponents to the place of production if included in that price; and
(D) In the case of fabric components for which a fabric cost cannot be deter- mined under paragraph (a)(5)(ii)(C) of this section or if CBP finds that cost to be unreasonable: All reasonable ex- penses incurred in the growth, produc- tion, or manufacture of the fabric com- ponents, including the cost or value of
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materials (which does not include the cost of recoverable scrap generated in the growth, production, or manufac- ture of the fabric components) and gen- eral expenses, but excluding the cost or value of any non-textile materials, and excluding expenses for cutting or other processing to create the fabric compo- nents other than knitting to shape, that the producer or entity controlling production can verify, plus a reason- able amount for profit, and the freight, insurance, packing, and other costs, if any, incurred in transporting the fabric components to the port of exportation.
(6) Year. ‘‘Year’’ means a 12-month period beginning on October 1 and end- ing on September 30 but does not in- clude any 12-month period that began prior to October 1, 2002.
(7) Entered. ‘‘Entered’’ means entered, or withdrawn from warehouse for con- sumption, in the customs territory of the United States.
(b) Limitations on preferential treat- ment—(1) General. During the year that begins on October 1, 2003, and during any subsequent year, articles of a pro- ducer or an entity controlling produc- tion that conform to the production standards set forth in § 10.243(a)(4) will be eligible for preferential treatment only if:
(i) The aggregate cost of fabrics (ex- clusive of all findings and trimmings) formed in the United States that were used in the production of all of those articles of that producer or that entity controlling production that are entered as articles described in § 10.243(a)(4) during the immediately preceding year was at least 75 percent of the aggregate declared customs value of the fabric (exclusive of all findings and trim- mings) contained in all of those arti- cles of that producer or that entity controlling production that are entered as articles described in § 10.243(a)(4) during that year; or
(ii) In a case in which the 75 percent requirement set forth in paragraph (b)(1)(i) of this section was not met during a year and therefore those arti- cles of that producer or that entity controlling production were not eligi- ble for preferential treatment during the following year, the aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United
States that were used in the produc- tion of all of those articles of that pro- ducer or that entity controlling pro- duction that conform to the production standards set forth in § 10.243(a)(4) and that were entered during the imme- diately preceding year was at least 85 percent of the aggregate declared cus- toms value of the fabric (exclusive of all findings and trimmings) contained in all of those articles of that producer or that entity controlling production that conform to the production stand- ards set forth in § 10.243(a)(4) and that were entered during that year; and
(iii) In conjunction with the filing of the claim for preferential treatment under § 10.245, the importer records on the entry summary or warehouse with- drawal for consumption (CBP Form 7501, column 34), or its electronic equivalent, the distinct and unique identifier assigned by CBP to the appli- cable documentation prescribed under paragraph (c) of this section.
(2) Rules of application—(i) General. For purposes of paragraphs (b)(1)(i) and (b)(1)(ii) of this section and for pur- poses of preparing and filing the docu- mentation prescribed in paragraph (c) of this section, the following rules will apply:
(A) The articles in question must have been produced in the manner specified in § 10.243(a)(4) and the arti- cles in question must be entered within the same year;
(B) Articles that are exported to countries other than the United States and are never entered are not to be considered in determining compliance with the 75 or 85 percent standard spec- ified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section;
(C) Articles that are entered under an HTSUS subheading other than the HTSUS subheading which pertains to articles described in § 10.243(a)(4) are not to be considered in determining compliance with the 75 percent stand- ard specified in paragraph (b)(1)(i) of this section;
(D) For purposes of determining com- pliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section, all articles that conform to the production standards set forth in
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§ 10.243(a)(4) must be considered, re- gardless of the HTSUS subheading under which they were entered;
(E) Fabric components and fabrics that constitute findings or trimmings are not to be considered in determining compliance with the 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section;
(F) Beginning October 1, 2003, in order for articles to be eligible for pref- erential treatment in a given year, a producer of, or entity controlling pro- duction of, those articles must have met the 75 percent standard specified in paragraph (b)(1)(i) of this section during the immediately preceding year. If articles of a producer or entity controlling production fail to meet the 75 percent standard specified in para- graph (b)(1)(i) of this section during a year, articles of that producer or enti- ty controlling production:
(1) Will not be eligible for pref- erential treatment during the fol- lowing year;
(2) Will remain ineligible for pref- erential treatment until the year that follows a year in which articles of that producer or entity controlling produc- tion met the 85 percent standard speci- fied in paragraph (b)(1)(ii) of this sec- tion; and
(3) After the 85 percent standard specified in paragraph (b)(1)(ii) of this section has been met, will again be sub- ject to the 75 percent standard speci- fied in paragraph (b)(1)(i) of this sec- tion during the following year for pur- poses of determining eligibility for preferential treatment in the next year.
(G) A new producer or new entity controlling production, that is, a pro- ducer or entity controlling production who did not produce or control produc- tion of articles that were entered as ar- ticles described in § 10.243(a)(4) during the immediately preceding year, must first establish compliance with the 85 percent standard specified in paragraph (b)(1)(ii) of this section as a pre- requisite to preparation of the declara- tion of compliance referred to in para- graph (c) of this section;
(H) A declaration of compliance pre- pared by a producer or by an entity controlling production must cover all production of that producer or all pro-
duction that the entity controls for the year in question;
(I) A producer would not prepare a declaration of compliance if all of its production is covered by a declaration of compliance prepared by an entity controlling production;
(J) In the case of a producer, the 75 or 85 percent standard specified in para- graph (b)(1)(i) or paragraph (b)(1)(ii) of this section and the declaration of compliance procedure under paragraph (c) of this section apply to all articles of that producer for the year in ques- tion, even if some but not all of that production is also covered by a declara- tion of compliance prepared by an enti- ty controlling production;
(K) The U.S. importer does not have to be the producer or the entity con- trolling production who prepared the declaration of compliance; and
(L) The exclusion references regard- ing findings and trimmings in para- graph (b)(1)(i) and paragraph (b)(1)(ii) of this section apply to all findings and trimmings, whether or not they are of foreign origin.
(ii) Examples. The following examples will illustrate application of the prin- ciples set forth in paragraph (b)(2)(i) of this section.
Example 1. An ATPDEA beneficiary coun- try producer of articles that meet the pro- duction standards specified in § 10.243(a)(4) in the first year sends 50 percent of that pro- duction to ATPDEA region markets and the other 50 percent to the U.S. market; the cost of the fabrics formed in the United States equals 100 percent of the value of all of the fabric in the articles sent to the ATPDEA re- gion and 60 percent of the value of all of the fabric in the articles sent to the United States. Although the cost of fabrics formed in the United States is more than 75 percent of the value of all of the fabric used in all of the articles produced, this producer could not prepare a valid declaration of compli- ance because the articles sent to the United States did not meet the minimum 75 percent standard.
Example 2. A producer sends to the United States in the first year three shipments of articles that meet the description in § 10.243(a)(4); one of those shipments is en- tered under the HTSUS subheading that cov- ers articles described in § 10.243(a)(4), the sec- ond shipment is entered under the HTSUS subheading that covers articles described in § 10.243(a)(7), and the third shipment is en- tered under subheading 9802.00.80, HTSUS. In
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determining whether the minimum 75 per- cent standard has been met in the first year for purposes of entry of articles under the HTSUS subheading that covers articles de- scribed in § 10.243(a)(4) during the following (that is, second) year, consideration must be restricted to the articles in the first ship- ment and therefore must not include the ar- ticles in the second and third shipments.
Example 3. A producer in the second year begins production of articles that conform to the production standards specified in § 10.243(a)(4); some of those articles are en- tered in that year under HTSUS subheading 6212.10 and others under HTSUS subheading 9802.00.80 but none are entered in that year under the HTSUS subheading which pertains to articles described in § 10.243(a)(4) because the 75 percent standard had not been met in the preceding (that is, first) year. In this case the 85 percent standard applies, and all of the articles that were entered under the various HTSUS provisions in the second year must be taken into account in determining whether that 85 percent standard has been met. If the 85 percent was met in the aggre- gate for all of the articles entered in the sec- ond year, in the next (that is, third) year ar- ticles of that producer may receive pref- erential treatment under the HTSUS sub- heading which pertains to articles described in § 10.243(a)(4).
Example 4. An entity controlling produc- tion of articles that meet the description in § 10.243(a)(4) buys for the U.S., Canadian and Mexican markets; the articles in each case are first sent to the United States where they are entered for consumption and then placed in a commercial warehouse from which they are shipped to various stores in the United States, Canada and Mexico. Not- withstanding the fact that some of the arti- cles ultimately ended up in Canada or Mex- ico, a declaration of compliance prepared by the entity controlling production must cover all of the articles rather than only those that remained in the United States because all of those articles had been entered for con- sumption.
Example 5. Fabric is cut and sewn in the United States with other U.S. materials to form cups which are joined together to form brassiere front subassemblies in the United States, and those front subassemblies are then placed in a warehouse in the United States where they are held until the fol- lowing year; during that following year all of the front subassemblies are shipped to an ATPDEA beneficiary country where they are assembled with elastic strips for use as bras- siere straps and labels produced in an Asian country and other fabrics, components or materials produced in the ATPDEA bene- ficiary country to form articles that meet the production standards specified in § 10.243(a)(4) and that are then shipped to the United States and entered during that same
year. In determining whether the entered ar- ticles meet the minimum 75 or 85 percent standard, the fabric in the labels is to be dis- regarded entirely because the labels con- stitute findings or trimmings for purposes of this section, and all of the fabric in the front subassemblies is countable because it was all formed in the United States and used in the production of articles that were entered in the same year.
Example 6. An ATPDEA beneficiary coun- try producer’s entire production of articles that meet the description in § 10.243(a)(4) is sent to a U.S. importer in two separate ship- ments, one in February and the other in June of the same calendar year; the articles shipped in February do not meet the min- imum 75 percent standard, the articles shipped in June exceed the 85 percent stand- ard, and the articles in the two shipments, taken together, do meet the 75 percent standard; the articles covered by the Feb- ruary shipment are entered for consumption on March 1 of that calendar year, and the ar- ticles covered by the June shipment are placed in a CBP bonded warehouse upon ar- rival and are subsequently withdrawn from warehouse for consumption on November 1 of that calendar year. The ATPDEA beneficiary country producer may not prepare a valid declaration of compliance covering the arti- cles in the first shipment because those arti- cles did not meet the minimum 75 percent standard and because those articles cannot be included with the articles of the second shipment on the same declaration of compli- ance since they were entered in a different year. However, the ATPDEA beneficiary country producer may prepare a valid dec- laration of compliance covering the articles in the second shipment because those arti- cles did meet the requisite 85 percent stand- ard which would apply for purposes of entry of articles in the following year.
Example 7. A producer in the second year begins production of articles exclusively for the U.S. market that meet the production standards specified in § 10.243(a)(4), but the entered articles do not meet the requisite 85 percent standard until the third year. The producer’s articles may not receive pref- erential treatment during the second year because there was no production (and thus there were no entered articles) in the imme- diately preceding (that is, first) year on which to assess compliance with the 75 per- cent standard. The producer’s articles also may not receive preferential treatment dur- ing the third year because the 85 percent standard was not met in the immediately preceding (that is, second) year. However, the producer’s articles are eligible for pref- erential treatment during the fourth year based on compliance with the 85 percent standard in the immediately preceding (that is, third) year.
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Example 8. An entity controlling produc- tion (Entity A) uses five ATPDEA bene- ficiary country producers (Producers 1–5), all of which produce only articles that meet the description in § 10.243(a)(4); Producers 1–4 send all of their production to the United States and Producer 5 sends 10 percent of its production to the United States and the rest to Europe; Producers 1–3 and Producer 5 produce only pursuant to contracts with En- tity A, but Producer 4 also operates inde- pendently of Entity A by producing for sev- eral U.S. importers, one of which is an entity controlling production (Entity B) that also controls all of the production of articles of one other producer (Producer 6) which sends all of its production to the United States. A declaration of compliance prepared by Enti- ty A must cover all of the articles of Pro- ducers 1–3 and the 10 percent of articles of Producer 5 that are sent to the United States and that portion of the articles of Producer 4 that are produced pursuant to the contract with Entity A, because Entity A controls the production of those articles. There is no need for Producers 1–3 and Producer 5 to prepare a declaration of compliance because they have no production that is not covered by a declaration of compliance prepared by an en- tity controlling production. A declaration of compliance prepared by Producer 4 would cover all of its production, that is, articles produced for Entity A, articles produced for Entity B, and articles produced independ- ently for other U.S. importers; a declaration of compliance prepared by Entity B must cover that portion of the production of Pro- ducer 4 that it controls as well as all of the production of Producer 6 because Entity B also controls all of the production of Pro- ducer 6. Producer 6 would not prepare a dec- laration of compliance because all of its pro- duction is covered by the declaration of com- pliance prepared by Entity B.
(c) Documentation—(1) Initial declara- tion of compliance. In order for an im- porter to comply with the requirement set forth in paragraph (b)(1)(iii) of this section, the producer or the entity con- trolling production must have filed with CBP, in accordance with para- graph (c)(4) of this section, a declara- tion of compliance with the applicable 75 or 85 percent requirement prescribed in paragraph (b)(1)(i) or (b)(1)(ii) of this section. After filing of the declaration of compliance has been completed, CBP will advise the producer or the entity controlling production of the distinct and unique identifier assigned to that
declaration. The producer or the entity controlling production will then be re- sponsible for advising each appropriate U.S. importer of that distinct and unique identifier for purposes of re- cording that identifier on the entry summary or warehouse withdrawal. In order to provide sufficient time for ad- vising the U.S. importer of that dis- tinct and unique identifier prior to the arrival of the articles in the United States, the producer or the entity con- trolling production should file the dec- laration of compliance with CBP at least 10 calendar days prior to the date of the first shipment of the articles to the United States.
(2) Amended declaration of compliance. If the information on the declaration of compliance referred to in paragraph (c)(1) of this section is based on an esti- mate because final year-end informa- tion was not available at that time and the final data differs from the esti- mate, or if the producer or the entity controlling production has reason to believe for any other reason that the declaration of compliance that was filed contained erroneous information, within 30 calendar days after the final year-end information becomes avail- able or within 30 calendar days after the date of discovery of the error:
(i) The producer or the entity con- trolling production must file with the CBP office identified in paragraph (c)(4) of this section an amended dec- laration of compliance containing that final year-end information or other corrected information; or
(ii) If that final year-end information or other corrected information dem- onstrates noncompliance with the ap- plicable 75 or 85 percent requirement, the producer or the entity controlling production must in writing advise both the CBP office identified in paragraph (c)(4) of this section and each appro- priate U.S. importer of that fact.
(3) Form and preparation of declaration of compliance—(i) Form. The declaration of compliance referred to in paragraph (c)(1) of this section may be printed and reproduced locally and must be in the following format:
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ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT DECLARATION OF COMPLIANCE FOR BRASSIERES
[19 CFR 10.243(a)(4) and 10.248]
1. Year beginning date: October 1, llllllllllll
Official U.S. CBP Use Only
Year ending date: September 30, llllllllllll
Assigned number: llllllllllll
Assignment date:llllllllllll
2. Identity of preparer (producer or entity con- trolling production):
Full name and address: Telephone number: llllllllllll Facsimile number: llllllllllll Importer identification number:llllll
3. If the preparer is an entity controlling production, provide the following for each producer:
Full name and address: llllllllllll
Telephone number: llllllllllll
Facsimile number: llllllllllll
4. Aggregate cost of fabrics (exclusive of all findings and trimmings) formed in the United States that were used in the production of brassieres that were entered during the year:
llllllllllll
5. Aggregate declared customs value of the fabric (exclusive of all findings and trimmings) con- tained in brassieres that were entered during the year:
llllllllllll
6. I declare that the aggregate cost of fabric (exclusive of all findings and trimmings) formed in the United States was at least 75 percent (or 85 percent, if applicable under 19 CFR 10.248(b)(1)(ii)) of the aggregate declared customs value of the fabric contained in bras- sieres entered during the year.
7. Authorized signa- ture:llllllllllll
8. Name and title (print or type):llllllllllll
Date:
(ii) Preparation. The following rules will apply for purposes of completing the declaration of compliance set forth in paragraph (c)(3)(i) of this section:
(A) In block 1, fill in the year com- mencing October 1 and ending Sep- tember 30 of the calendar year during which the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was met;
(B) Block 2 should state the legal name and address (including country) of the preparer and should also include the preparer’s importer identification number (see § 24.5 of this chapter), if the preparer has one;
(C) Block 3 should state the legal name and address (including country) of the ATPDEA beneficiary country producer if that producer is not already identified in block 2. If there is more than one producer, attach a list stating the legal name and address (including country) of all additional producers;
(D) Blocks 4 and 5 apply only to arti- cles that were entered during the year identified in block 1; and
(E) In block 7, the signature must be that of an authorized officer, employee, agent or other person having knowl- edge of the relevant facts and the date
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must be the date on which the declara- tion of compliance was completed and signed.
(4) Filing of declaration of compliance. The declaration of compliance referred to in paragraph (c)(1) of this section:
(i) Must be completed either in the English language or in the language of the country in which the articles cov- ered by the declaration were produced. If the declaration is completed in a language other than English, the pro- ducer or the entity controlling produc- tion must provide to CBP upon request a written English translation of the declaration; and
(ii) Must be filed with the New York Strategic Trade Center, Customs and Border Protection, 1 Penn Plaza, New York, New York 10119.
(d) Verification of declaration of compli- ance—(1) Verification procedure. A dec- laration of compliance filed under this section will be subject to whatever verification CBP deems necessary. In the event that CBP for any reason is prevented from verifying the state- ments made on a declaration of compli- ance, CBP may deny any claim for preferential treatment made under § 10.245 that is based on that declara- tion. A verification of a declaration of compliance may involve, but need not be limited to, a review of:
(i) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity con- trolling production, or any other per- son under part 163 of this chapter;
(ii) Documentation and other infor- mation regarding all articles that meet the production standards specified in § 10.243(a)(4) that were exported to the United States and that were entered during the year in question, whether or not a claim for preferential treatment was made under § 10.245. Those records and other information include, but are not limited to, work orders and other production records, purchase orders, invoices, bills of lading and other ship- ping documents;
(iii) Evidence to document the cost of fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other shipping documents, and customs import and clearance documents, work
orders and other production records, and inventory control records;
(iv) Evidence to document the cost or value of all fabric other than fabrics formed in the United States that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other ship- ping documents, and customs import and clearance documents, work orders and other production records, and in- ventory control records; and
(v) Accounting books and documents to verify the records and information referred to in paragraphs (d)(1)(ii) through (d)(1)(iv) of this section. The verification of purchase orders, in- voices and bills of lading will be ac- complished through the review of a dis- tinct audit trail. The audit trail docu- ments must consist of a cash disburse- ment or purchase journal or equivalent records to establish the purchase of the fabric. The headings in each of these journals or other records must contain the date, vendor name, and amount paid for the fabric. The verification of production records and work orders will be accomplished through analysis of the inventory records of the pro- ducer or entity controlling production. The inventory records must reflect the production of the finished article which must be referenced to the original pur- chase order or lot number covering the fabric used in production. In the inven- tory production records, the inventory should show the opening balance of the inventory plus the purchases made dur- ing the accounting period and the in- ventory closing balance.
(2) Notice of determination. If, based on a verification of a declaration of com- pliance filed under this section, CBP determines that the applicable 75 or 85 percent standard specified in paragraph (b)(1)(i) or paragraph (b)(1)(ii) of this section was not met, CBP will publish a notice of that determination in the FEDERAL REGISTER.
EXTENSION OF ATPA BENEFITS TO TUNA AND CERTAIN OTHER NON-TEXTILE AR- TICLES
SOURCE: Sections 10.251 through 10.257 issued by T.D. 03–16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, unless other- wise noted.
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§ 10.251 Applicability. Title XXXI of Public Law 107–210 (116
Stat. 933), entitled the Andean Trade Promotion and Drug Eradication Act (ATPDEA), amended sections 202, 203, 204, and 208 of the Andean Trade Pref- erence Act (the ATPA, 19 U.S.C. 3201– 3206) to authorize the President to ex- tend additional trade benefits to ATPA beneficiary countries that have been designated as ATPDEA beneficiary countries. Sections 204(b)(1) and (b)(4) of the ATPA (19 U.S.C. 3203(b)(1) and (b)(4)) provide for the preferential treatment of certain non-textile arti- cles that were not entitled to duty-free treatment under the ATPA prior to en- actment of the ATPDEA. The provi- sions of §§ 10.251–10.257 of this part set forth the legal requirements and proce- dures that apply for purposes of obtain- ing preferential treatment pursuant to ATPA sections 204(b)(1) and (b)(4).
§ 10.252 Definitions. When used in §§ 10.251 through 10.257,
the following terms have the meanings indicated:
ATPA. ‘‘ATPA’’ means the Andean Trade Preference Act, 19 U.S.C. 3201– 3206.
ATPDEA beneficiary country. ‘‘ATPDEA beneficiary country’’ means a ‘‘beneficiary country’’ as defined in § 10.202(a) for purposes of the ATPA which the President also has des- ignated as a beneficiary country for purposes of preferential treatment of products under 19 U.S.C. 3203(b)(1) and (b)(4) and which has been the subject of a finding by the President or his des- ignee, published in the FEDERAL REG- ISTER, that the beneficiary country has satisfied the requirements of 19 U.S.C. 3203(b)(5)(A)(ii).
ATPDEA beneficiary country vessel. ‘‘ATPDEA beneficiary country vessel’’ means a vessel:
(a) Which is registered or recorded in an ATPDEA beneficiary country;
(b) Which sails under the flag of an ATPDEA beneficiary country;
(c) Which is at least 75 percent owned by nationals of an ATPDEA beneficiary country or by a company having its principal place of business in an ATPDEA beneficiary country, of which the manager or managers, chairman of the board of directors or of the super-
visory board, and the majority of the members of those boards are nationals of an ATPDEA beneficiary country and of which, in the case of a company, at least 50 percent of the capital is owned by an ATPDEA beneficiary country or by public bodies or nationals of an ATPDEA beneficiary country;
(d) Of which the master and officers are nationals of an ATPDEA bene- ficiary country; and
(e) Of which at least 75 percent of the crew are nationals of an ATPDEA ben- eficiary country.
HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States.
Preferential treatment. ‘‘Preferential treatment’’ means entry, or with- drawal from warehouse for consump- tion, in the customs territory of the United States free of duty and free of any quantitative restrictions in the case of tuna described in § 10.253(a)(1) and free of duty in the case of any arti- cle described in § 10.253(a)(2).
United States vessel. ‘‘United States vessel’’ means either: a vessel having a certificate of documentation with a fishery endorsement under chapter 121 of title 46 of the United States Code; or a vessel that is documented under the laws of the United States and for which a license has been issued pursuant to section 9 of the South Pacific Tuna Act of 1988.
[T.D. 03–16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, as amended by CBP Dec. 06–21, 71 FR 44583, Aug. 7, 2006]
§ 10.253 Articles eligible for pref- erential treatment.
(a) General. Preferential treatment applies to any of the following articles, provided that the article in question is imported directly into the customs ter- ritory of the United States from an ATPDEA beneficiary country within the meaning of paragraph (b) of this section:
(1) Tuna that is harvested by United States vessels or ATPDEA beneficiary country vessels, that is prepared or preserved in any manner, in an ATPDEA beneficiary country, in foil or other flexible airtight containers weighing with their contents not more than 6.8 kilograms each; and
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19 CFR Ch. I (4–1–12 Edition)§ 10.253
(2) Any of the following articles that the President has determined are not import-sensitive in the context of im- ports from ATPDEA beneficiary coun- tries, provided that the article in ques- tion meets the country of origin and value content requirements set forth in paragraphs (c) and (d) of this section:
(i) Footwear not designated on De- cember 4, 1991, as eligible articles for the purpose of the Generalized System of Preferences (GSP) under Title V, Trade Act of 1974, as amended (19 U.S.C. 2461 through 2467);
(ii) Petroleum, or any product de- rived from petroleum, provided for in headings 2709 and 2710 of the HTSUS;
(iii) Watches and watch parts (includ- ing cases, bracelets, and straps), of whatever type including, but not lim- ited to, mechanical, quartz digital or quartz analog, if those watches or watch parts contain any material which is the product of any country with respect to which HTSUS column 2 rates of duty apply; and
(iv) Handbags, luggage, flat goods, work gloves, and leather wearing ap- parel that were not designated on Au- gust 5, 1983, as eligible articles for pur- poses of the GSP.
(b) Imported directly defined. For pur- poses of paragraph (a) of this section, the words ‘‘imported directly’’ mean:
(1) Direct shipment from any ATPDEA beneficiary country to the United States without passing through the territory of any country that is not an ATPDEA beneficiary country;
(2) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, the articles in the shipment do not enter into the com- merce of any country that is not an ATPDEA beneficiary country while en route to the United States and the in- voices, bills of lading, and other ship- ping documents show the United States as the final destination; or
(3) If the shipment is from any ATPDEA beneficiary country to the United States through the territory of any country that is not an ATPDEA beneficiary country, and the invoices and other documents do not show the United States as the final destination, the articles in the shipment upon ar-
rival in the United States are imported directly only if they:
(i) Remained under the control of the customs authority of the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the origi- nal commercial transaction between the importer and the producer or the producer’s sales agent; and
(iii) Were not subjected to operations other than loading or unloading, and other activities necessary to preserve the articles in good condition.
(c) Country of origin criteria—(1) Gen- eral. Except as otherwise provided in paragraph (c)(2) of this section, an arti- cle described in paragraph (a)(2) of this section may be eligible for preferential treatment if the article is either:
(i) Wholly the growth, product, or manufacture of an ATPDEA bene- ficiary country; or
(ii) A new or different article of com- merce which has been grown, produced, or manufactured in an ATPDEA bene- ficiary country.
(2) Exceptions. No article will be eligi- ble for preferential treatment by virtue of having merely undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilu- tion with another substance that does not materially alter the characteristics of the article. The principles and exam- ples set forth in § 10.195(a)(2) will apply equally for purposes of this paragraph.
(d) Value content requirement—(1) Gen- eral. An article may be eligible for pref- erential treatment only if the sum of the cost or value of the materials pro- duced in an ATPDEA beneficiary coun- try or countries, plus the direct costs of processing operations performed in an ATPDEA beneficiary country or countries, is not less than 35 percent of the appraised value of the article at the time it is entered.
(2) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI beneficiary coun- tries. For the specific purpose of deter- mining the percentage referred to in paragraph (d)(1) of this section, the term ‘‘ATPDEA beneficiary country’’ includes the Commonwealth of Puerto
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Rico, the U.S. Virgin Islands, and any CBI beneficiary country as defined in § 10.191(b)(1). Any cost or value of mate- rials or direct costs of processing oper- ations attributable to the Virgin Is- lands or any CBI beneficiary country must be included in the article prior to its final exportation to the United States from an ATPDEA beneficiary country as defined in § 10.252.
(3) Materials produced in the United States. For purposes of determining the percentage referred to in paragraph (d)(1) of this section, an amount not to exceed 15 percent of the appraised value of the article at the time it is en- tered may be attributed to the cost or value of materials produced in the cus- toms territory of the United States (other than the Commonwealth of Puerto Rico). The principles set forth in paragraph (d)(4)(i) of this section will apply in determining whether a material is ‘‘produced in the customs territory of the United States’’ for pur- poses of this paragraph.
(4) Cost or value of materials—(i) ‘‘Ma- terials produced in an ATPDEA bene- ficiary country or countries’’ defined. For purposes of paragraph (d)(1) of this sec- tion, the words ‘‘materials produced in an ATPDEA beneficiary country or countries’’ refer to those materials in- corporated in an article which are ei- ther:
(A) Wholly the growth, product, or manufacture of an ATPDEA bene- ficiary country or two or more ATPDEA beneficiary countries; or
(B) Substantially transformed in any ATPDEA beneficiary country or two or more ATPDEA beneficiary countries into a new or different article of com- merce which is then used in any ATPDEA beneficiary country as de- fined in § 10.252 in the production or manufacture of a new or different arti- cle which is imported directly into the United States. For purposes of this paragraph (d)(4)(i)(B), no material will be considered to be substantially trans- formed into a new or different article of commerce by virtue of having mere- ly undergone simple (as opposed to complex or meaningful) combining or packaging operations, or mere dilution with water or mere dilution with an- other substance that does not materi- ally alter the characteristics of the ar-
ticle. The examples set forth in § 10.196(a), and the principles and exam- ples set forth in § 10.195(a)(2), will apply for purposes of the corresponding con- text under paragraph (d)(4)(i) of this section.
(ii) Failure to establish origin. If the importer fails to maintain adequate records to establish the origin of a ma- terial, that material may not be con- sidered to have been grown, produced, or manufactured in an ATPDEA bene- ficiary country or in the customs terri- tory of the United States for purposes of determining the percentage referred to in paragraph (d)(1) of this section.
(iii) Determination of cost or value of materials. (A) The cost or value of ma- terials produced in an ATPDEA bene- ficiary country or countries or in the customs territory of the United States includes:
(1) The manufacturer’s actual cost for the materials;
(2) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(3) The actual cost of waste or spoil- age, less the value of recoverable scrap; and
(4) Taxes and/or duties imposed on the materials by any ATPDEA bene- ficiary country or by the United States, provided they are not remitted upon exportation.
(B) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of:
(1) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(2) An amount for profit; and (3) Freight, insurance, packing, and
all other costs incurred in transporting the material to the manufacturer’s plant.
(5) Direct costs of processing oper- ations—(i) Items included. For purposes of paragraph (d)(1) of this section, the
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words ‘‘direct costs of processing oper- ations’’ mean those costs either di- rectly incurred in, or which can be rea- sonably allocated to, the growth, pro- duction, manufacture, or assembly of the specific merchandise under consid- eration. Those costs include, but are not limited to the following, to the ex- tent that they are includable in the ap- praised value of the imported merchan- dise:
(A) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific merchan- dise, including fringe benefits, on-the- job training, and the cost of engineer- ing, supervisory, quality control, and similar personnel;
(B) Dies, molds, tooling, and depre- ciation on machinery and equipment which are allocable to the specific mer- chandise;
(C) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific merchandise; and
(D) Costs of inspecting and testing the specific merchandise.
(ii) Items not included. For purposes of paragraph (d)(1) of this section, the words ‘‘direct costs of processing oper- ations’’ do not include items which are not directly attributable to the mer- chandise under consideration or are not costs of manufacturing the prod- uct. These include, but are not limited to:
(A) Profit; and (B) General expenses of doing busi-
ness which either are not allocable to the specific merchandise or are not re- lated to the growth, production, manu- facture, or assembly of the merchan- dise, such as administrative salaries, casualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
(6) Articles wholly the growth, product, or manufacture of an ATPDEA bene- ficiary country. Any article which is wholly the growth, product, or manu- facture of an ATPDEA beneficiary country as defined in § 10.252, and any article produced or manufactured in an ATPDEA beneficiary country as de- fined in § 10.252 exclusively from mate- rials which are wholly the growth, product, or manufacture of an ATPDEA beneficiary country or coun-
tries, will normally be presumed to meet the requirement set forth in para- graph (d)(1) of this section.
§ 10.254 Certificate of Origin. A Certificate of Origin as specified in
§ 10.256 must be employed to certify that an article described in § 10.253(a) being exported from an ATPDEA bene- ficiary country to the United States qualifies for the preferential treatment referred to in § 10.251. The Certificate of Origin must be prepared in the ATPDEA beneficiary country by the producer or exporter or by the pro- ducer’s or exporter’s authorized agent. If the person preparing the Certificate of Origin is not the producer of the ar- ticle, the person may complete and sign a Certificate on the basis of:
(a) The person’s reasonable reliance on the producer’s written representa- tion that the article qualifies for pref- erential treatment; or
(b) A completed and signed Certifi- cate of Origin for the article volun- tarily provided to the person by the producer.
[CBP Dec. 06–21, 71 FR 44583, Aug. 7, 2006]
§ 10.255 Filing of claim for preferential treatment.
(a) Declaration. In connection with a claim for preferential treatment for an article described in § 10.253(a), the im- porter must make a written declara- tion that the article qualifies for that treatment. The written declaration should be made by including on the entry summary, or equivalent docu- mentation, the symbol ‘‘J+’’ as a prefix to the subheading of the HTSUS in which the article in question is classi- fied. Except in any of the cir- cumstances described in § 10.256(d)(1), the declaration required under this paragraph must be based on a complete and properly executed original Certifi- cate of Origin that covers the article being imported and that is in the pos- session of the importer.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the im- porter has reason to believe that a Cer- tificate of Origin on which a declara- tion was based contains information that is not correct, the importer must within 30 calendar days after the date
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of discovery of the error make a cor- rected declaration and pay any duties that may be due. A corrected declara- tion will be effected by submission of a letter or other written statement to the Customs port where the declara- tion was originally filed.
§ 10.256 Maintenance of records and submission of Certificate by im- porter.
(a) Maintenance of records. Each im- porter claiming preferential treatment for an article under § 10.255 must main- tain in the United States, in accord- ance with the provisions of part 163 of this chapter, all records relating to the importation of the article. Those records must include the original Cer- tificate of Origin referred to in § 10.255(a) and any other relevant docu- ments or other records as specified in § 163.1(a) of this chapter.
(b) Submission of Certificate. An im- porter who claims preferential treat- ment on an article under § 10.255(a) must provide, at the request of the port director, a copy of the Certificate of Origin pertaining to the article. A Cer- tificate of Origin submitted to Customs under this paragraph:
(1) Must be on CBP Form 449, includ- ing privately-printed copies of that Form, or, as an alternative to CBP Form 449, in an approved computerized format or other medium or format as is approved by the Office of International Trade, U.S. Customs and Border Pro- tection, Washington, DC 20229. An al- ternative format must contain the same information and certification set forth on CBP Form 449;
(2) Must be signed by the producer or exporter or by the producer’s or export- er’s authorized agent having knowledge of the relevant facts;
(3) Must be completed either in the English language or in the language of the country from which the article is exported. If the Certificate is com- pleted in a language other than English, the importer must provide to Customs upon request a written English translation of the Certificate; and
(4) May be applicable to: (i) A single importation of an article
into the United States, including a sin- gle shipment that results in the filing
of one or more entries and a series of shipments that results in the filing of one entry; or
(ii) Multiple importations of iden- tical articles into the United States that occur within a specified blanket period, not to exceed 12 months, set out in the Certificate by the exporter. For purposes of this paragraph, ‘‘identical articles’’ means articles that are the same in all material respects, includ- ing physical characteristics, quality, and reputation.
(c) Correction and nonacceptance of Certificate. If the port director deter- mines that a Certificate of Origin is il- legible or defective or has not been completed in accordance with para- graph (b) of this section, the importer will be given a period of not less than five working days to submit a cor- rected Certificate. A Certificate will not be accepted in connection with sub- sequent importations during a period referred to in paragraph (b)(4)(ii) of this section if the port director deter- mined that a previously imported iden- tical article covered by the Certificate did not qualify for preferential treat- ment.
(d) Certificate not required—(1) Gen- eral. Except as otherwise provided in paragraph (d)(2) of this section, an im- porter is not required to have a Certifi- cate of Origin in his possession for:
(i) An importation of an article for which the port director has in writing waived the requirement for a Certifi- cate of Origin because the port director is otherwise satisfied that the article qualifies for preferential treatment;
(ii) A non-commercial importation of an article; or
(iii) A commercial importation of an article whose value does not exceed US$2,500, provided that, unless waived by the port director, the producer, ex- porter, importer or authorized agent includes on, or attaches to, the invoice or other document accompanying the shipment the following signed state- ment:
I hereby certify that the article covered by this shipment qualifies for preferential tariff treatment under the ATPDEA.
Check One:
( ) Producer ( ) Exporter ( ) Importer
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( ) Agent lllllllllllllllll
Name lllllllllllllllll
Title lllllllllllllllll
Address lllllllllllllllll
Signature and Date
(2) Exception. If the port director de- termines that an importation described in paragraph (d)(1) of this section forms part of a series of importations that may reasonably be considered to have been undertaken or arranged for the purpose of avoiding a Certificate of Or- igin requirement under §§ 10.254 through 10.256, the port director will notify the importer in writing that for that importation the importer must have in his possession a valid Certifi- cate of Origin to support the claim for preferential treatment. The importer will have 30 calendar days from the date of the written notice to obtain a valid Certificate of Origin, and a fail- ure to timely obtain the Certificate of Origin will result in denial of the claim for preferential treatment. For pur- poses of this paragraph, a ‘‘series of im- portations’’ means two or more entries covering articles arriving on the same day from the same exporter and con- signed to the same person.
[T.D. 03–16, 68 FR 14497, Mar. 25, 2003; 68 FR 67349, Dec. 1, 2003, as amended by CBP Dec. 06–21, 71 FR 44583, Aug. 7, 2006]
§ 10.257 Verification and justification of claim for preferential treatment.
(a) Verification by Customs. A claim for preferential treatment made under § 10.255, including any statements or other information contained on a Cer- tificate of Origin submitted to Customs under § 10.256, will be subject to what- ever verification the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, the port director may deny the claim for preferential treatment. A verification of a claim for preferential treatment may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to Customs by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation regarding the country of origin of an article and its constituent mate- rials, including, but not limited to, production records, information relat- ing to the place of production, the number and identification of the types of machinery used in production, and the number of workers employed in production; and
(3) Evidence to document the use of U.S. or ATPDEA beneficiary country materials in the production of the arti- cle in question, such as purchase or- ders, invoices, bills of lading and other shipping documents, and customs im- port and clearance documents.
(b) Importer requirements. In order to make a claim for preferential treat- ment under § 10.255, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the article qualifies for pref- erential treatment. Those records must include documents that support a claim that the article in question qualifies for preferential treatment be- cause it meets the country of origin and value content requirements set forth in § 10.253(c) and (d). A properly completed Certificate of Origin in the form prescribed in § 10.254(b) is a record that would serve this purpose;
(2) Must establish and implement in- ternal controls which provide for the periodic review of the accuracy of the Certificate of Origin or other records referred to in paragraph (b)(1) of this section;
(3) Must have shipping papers that show how the article moved from the ATPDEA beneficiary country to the United States. If the imported article was shipped through a country other than an ATPDEA beneficiary country and the invoices and other documents from the ATPDEA beneficiary country do not show the United States as the final destination, the importer also must have documentation that dem- onstrates that the conditions set forth in § 10.253(b)(3)(i) through (iii) were met; and
(4) Must be prepared to explain, upon request from Customs, how the records and internal controls referred to in paragraphs (b)(1) through (b)(3) of this section justify the importer’s claim for preferential treatment.
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U.S. Customs and Border Protection, DHS; Treasury § 10.303
Subpart G—United States-Canada Free Trade Agreement
SOURCE: Sections 10.301 through 10.311 issued by T.D. 89–3, 53 FR 51766, Dec. 23, 1988, unless otherwise noted.
§ 10.301 Scope and applicability.
The provisions of §§ 10.302 through 10.311 of this part relate to the proce- dures for obtaining duty preferences on imported goods under the United States-Canada Free-Trade Agreement (the Agreement) entered into on Janu- ary 2, 1988, and the United States-Can- ada Free-Trade Agreement Implemen- tation Act of 1988 (102 Stat. 1851). The United States and Canada agreed to suspend operation of the Agreement with effect from January 1, 1994, to co- incide with the entry into force of the North American Free Trade Agreement (see part 181 of this chapter) and, ac- cordingly, the provisions of §§ 10.302 through 10.311 of this part apply only to goods imported from Canada that were entered for consumption, or with- drawn from warehouse for consump- tion, during the period January 1, 1989, through December 31, 1993. In situa- tions involving goods subject to bilat- eral restrictions or prohibitions, or country of origin marking, other cri- teria for determining origin may be ap- plicable pursuant to Article 407 of the Agreement.
[T.D. 96–35, 61 FR 19835, May 3, 1996]
§ 10.302 Eligibility criteria in general.
Subject to the more specific expla- nations of the criteria in §§ 10.303 and 10.305 of this part, goods classifiable under an HTSUS heading or sub- heading for which the symbol ‘‘CA’’ ap- pears in the ‘‘special’’ column are eligi- ble for a preference if:
(a) Originating goods. The goods origi- nate in Canada or the United States, or both, and
(b) Direct shipment required. Except as provided in § 10.306(b), are directly shipped to the United States from Can- ada.
§ 10.303 Originating goods.
(a) General. For purposes of eligi- bility for a preference under the Agree-
ment, goods may be regarded as origi- nating goods if:
(1) Wholly of Canadian or United States origin. The goods are wholly obtained or produced in the Territory of Canada or the United States, or both, as set forth in General Note 3(c), HTSUS;
(2) Transformed with a change in classi- fication. The goods have been trans- formed by a processing which results in a change in classification and, if re- quired, a sufficient value-content, as set forth in General Note 3(c), HTSUS; or
(3) Transformed without a change in classification. An assembly of goods, other than goods of chapters 61 to 63 of the HTSUS, which does not result in a change in classification because the goods were imported in an unassembled or disassembled form and classified as the goods, unassembled or disassem- bled, pursuant to General Rule of In- terpretation 2(a), HTSUS, or because the tariff subheading for the goods pro- vides for both the goods themselves and their parts, shall nonetheless be treated as originating goods if:
(i) The value of originating materials and the direct cost of assembling in Canada or the United States, or both, as defined in § 10.305 constitute not less than 50 percent of the value of the goods when exported to the United States;
(ii) The assembled goods are not sub- sequently processed or further assem- bled in a third country; and
(iii) The goods satisfy the require- ment in § 10.306.
(b) Originating materials. For purposes of this section and § 10.305, the term ‘‘materials’’ means goods, other than those included as part of the direct cost of processing or assembling, used or consumed in the production of other goods, and the term ‘‘orginating’’ when used with reference to such materials means that the materials satisfy one of the criteria for originating goods set forth in paragraph (a) of this section.
(c) Change in classification. For pur- poses of paragraph (a) of this section, the expression ‘‘change in classifica- tion’’ means a change of classification within the Harmonized Commodity De- scription and Coding System (Har- monized System) as published and
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amended from time to time by the Cus- toms Cooperation Council.
(d) Articles of feather. The goods are eligible to be treated as originating in Canada pursuant to General Note 3(c)(vii)(R)(12)(ee), HTSUS.
[T.D. 92–8, 57 FR 2453, Jan. 22, 1992]
§ 10.304 Exclusions. (a) Changes based on simple processing.
No goods shall be considered origi- nating for purposes of eligibility under the Agreement if they have merely un- dergone simple packaging or simple combining operations, or have under- gone mere dilution with water or with another substance that does not mate- rially alter the characteristics of the goods.
(b) Other excluded processing. No goods shall be considered to be origi- nating merely by virtue of having un- dergone any process or work in which the facts clearly justify the presump- tion that the sole object was to cir- cumvent the provisions of Chapter 3 of the Agreement.
§ 10.305 Value content requirement. (a) Direct cost of processing or assem-
bling—(1) Definition. For purposes of ap- plying a specific rule of origin under the Agreement which requires a value content determination, the terms ‘‘di- rect cost of processing’’ and ‘‘direct cost of assembling’’ mean the costs di- rectly incurred in, or that can be rea- sonably allocated to, the production of goods, including:
(i) The cost of all labor, including benefits and on-the-job training, labor provided in connection with super- vision, quality control, shipping, re- ceiving, storage, packaging, manage- ment at the location of the process or assembly, and other like labor, wheth- er provided by employees or inde- pendent contractors;
(ii) The cost of inspecting and testing the goods;
(iii) The cost of energy, fuel, dies, molds, tooling, and the depreciation and maintenance of machinery and equipment, without regard to whether they originate within the territory of the United States or Canada;
(iv) Development, design, and engi- neering costs;
(v) Rent, mortgage interest, deprecia- tion on buildings, property insurance premiums, maintenance, taxes and the cost of utilities for real property used in the production of the goods; and
(vi) Royalty, licensing, or other like payments for the right to the goods.
(2) Exclusions from direct costs of proc- essing or assembling. Excluded from the direct costs of processing or assembling are:
(i) Costs relating to the general ex- pense of doing business, such as the cost of providing executive, financial, sales, advertising, marketing, account- ing and legal services, and insurance;
(ii) Brokerage charges relating to the importation and exportation of goods;
(iii) Costs for telephone, mail, and other means of communication;
(iv) Packing costs for exporting the goods;
(v) Royalty payments related to a li- censing agreement to distribute or sell the goods;
(vi) Rent, mortgage interest, depre- ciation on buildings, property insur- ance premiums, maintenance, taxes, and the cost of utilities for real prop- erty used by personnel charged with administrative functions; and
(vii) Profit on the goods. (3) Interpretation—(i) Indirect mate-
rials. Under the definition of ‘‘mate- rials’’ set forth in § 10.303(b), certain types of materials are treated as direct costs of processing or assembling under paragraph (a) of this section. This ap- plies principally to materials used or consumed indirectly in the production of exported goods, where no portion of those materials is physically incor- porated in the exported goods. In addi- tion to the items specified in paragraph (a)(1)(iii) of this section, such mate- rials include items such as gloves and safety glasses worn by production workers, tape used in painting proc- esses, and tools, materials and spare parts used in the repair and mainte- nance of machinery and equipment used in the production of the exported goods. Such materials are to be distin- guished from waste and spoilage speci- fied in paragraph (b)(1)(ii)(C) of this section, which relate to materials that are physically incorporated in the ex- ported goods.
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(ii) Directly incurred. In order for costs incurred by a production facility to be treated as direct costs of proc- essing or assembling, those costs must be directly incurred in the production of the exported goods and not merely associated with the production facility as peripheral costs necessary to oper- ate the facility. In addition to the ex- clusions set forth in paragraph (a)(2) of this section, such peripheral costs in- clude labor costs for nurses tending to employees, for accounting personnel involved in physical inventory taking, for personnel responsible for pur- chasing or requisitioning materials to be used or consumed in the production process, and for second level super- visors and above who are not directly involved in the production process.
(iii) Labor costs. Under paragraph (a)(1)(i) of this section, labor costs in- cludable as direct costs of processing or assembling are limited to labor pro- vided by the producer’s employees or by independent contractors. Thus, for example, where processing operations are performed on components in the United States and those components are sold to a manufacturer in Canada where they are incorporated in goods exported to the United States, the cost of those processing operations in the United States cannot be separately counted as a direct cost of processing attributable to the finished goods ex- ported to the United States.
(iv) Interest expense. Bona fide inter- est payments on debt of any form, se- cured or unsecured, undertaken on arm’s length terms in the ordinary course of business to finance the acqui- sition of fixed assets such as real prop- erty, a plant, and/or equipment used in the production of goods in the territory of Canada or the U.S. are includable in the direct cost of processing or direct cost of assembling. Interest will be treated as a direct cost of processing or assembling, but only that portion of the interest which is related to a fixed asset directly used in the production of the goods exported; thus, where an en- tire production facility is covered by a mortgage and incorporates both pro- duction and administrative or other general expense space, an appropriate allocation must be made in order to en- sure that only that portion of the in-
terest allocated to the production area is counted toward the value-content re- quirement. Interest expenses attrib- utable to general and administrative costs or expenses, including interest on funds borrowed to meet the payroll of personnel directly involved in the pro- duction of goods, are not considered di- rect costs of processing or assembly.
(b) Value of originating materials—(1) Definition. The term ‘‘value of mate- rials originating in the United States or Canada or both’’ means the aggre- gate of:
(i) The price paid by the producer of exported goods for materials origi- nating in either the United States or Canada, or both, or for materials im- ported from a third country used or consumed in the production of such originating materials; and
(ii) When not included in that price, the following costs related thereto:
(A) Freight, insurance, packing and all other costs incurred in transporting any of the materials referred to in paragraph (b)(1)(i) of this section to the location of the producer;
(B) Duties, taxes and brokerage fees on such materials paid in the United States, or Canada, or both;
(C) The cost of waste or spoilage re- sulting from the use or consumption of such materials, less the value of renew- able scrap or by-product; and
(D) The value of goods and services relating to such materials determined in accordance with subparagraph 1(b) of Article 8 of the Agreement on Imple- mentation of Article VII of the General Agreement on Tariffs and Trade.
(2) Directly attributable. Whenever a value-content determination is re- quired by the rules of the Agreement and whenever originating materials and materials obtained or produced in a third country are used or consumed together in the production of goods in the United States or Canada, the value of originating materials may be treat- ed as such only to the extent that the value is directly attributable to the goods under consideration.
(3) Interpretation. (i) Price paid. As provided in paragraph (b)(1) of this sec- tion, the ‘‘price paid’’ for materials by the producer of exported goods forms the basis for determining the value of such materials when incorporated in
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the exported goods. The actual price paid for such materials will determine the value of those materials for pur- poses of the value-content require- ment, even though a relationship be- tween the producer and the seller of the materials may have influenced the price, except where the price did not include items specified in paragraph (b)(1)(ii) of this section that relate to the materials. The following examples will illustrate these principles. Not- withstanding these examples, the to- tality of the facts must be examined in each case to determine whether § 10.304(b) is applicable.
Example 1. Non-originating materials are sold by Company X (a foreign corporation lo- cated outside the United States or Canada) to Company Y (a Canadian corporation) for $100; Company X also sold identical mate- rials to Company Z (a U.S. corporation) for $200 which was the price Company Z had paid to Company X for similar materials prior to implementation of the Agreement; and those non-originating materials sold by Company X to Company Y are then incorporated by Company Y into goods exported to the United States. In this case the $100 price paid by Company Y to Company X constitutes the value of those materials for purposes of the value-content requirement.
Example 2. Company X purchased materials for $100, added a four percent mark-up to the price paid to defray purchasing expenses, and then sold the marked-up materials to Com- pany Y (a Canadian corporation) which in- corporated the materials in goods exported to the United States. In this case the $104 price paid by Company Y to Company X con- stitutes the value of the materials for pur- poses of the value-content requirement.
Example 3. Company X (a foreign corpora- tion located outside the United States) sold non-originating materials to Company Y (a U.S. corporation) for $200, and Company Y then sold those materials for $100 to Com- pany Z (a Canadian corporation) which in- corporated the materials in goods which were imported into the United States by Company P (the U.S. parent company of Company Y). In this case, in accordance with paragraph (b)(1)(ii)(D) of this section, $100 would be added to the price paid by Company Z for purposes of the value-content require- ment because the materials were sold at a reduced cost within the meaning of subpara- graph 1(b) of Article 8 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade.
(ii) Originating materials for which no price paid. In cases involving a vertically integrated producer (that is,
an entity which produces goods for ex- port from materials which that pro- ducer has also made) a ‘‘price paid’’ for such originating materials normally does not exist. Even in the absence of a ‘‘price paid’’, such a vertically inte- grated producer may still claim the materials as originating materials for purposes of qualifying the finished goods exported to the United States as goods originating in Canada. However, under paragraph (b)(1)(i) of this section the value of those materials for pur- poses of applying the value-content re- quirement is limited to the price paid for those materials imported from the third country plus any costs added thereto under paragraph (b)(1)(ii) of this section. The following examples will illustrate these principles.
Example 1. If an automobile producer in the United States or Canada fabricates body pan- els wholly from third country steel coil, those body panels can qualify as originating materials without having to satisfy a value- content requirement because steel coil is classified in chapter 72 of the Harmonized System and body panels are classified in chapter 87 and the change in classification rules in chapter 87 do not incorporate a value-content requirement in this context. Thus, the producer can claim the body pan- els fabricated from the third country steel as originating materials for purposes of the value-content requirement applicable to the finished automobile which will be exported to the United States. The value of those originating materials is the price paid for the steel coil imported from the third coun- try and used or consumed in the production of the body panels.
Example 2. An automobile exporter in Can- ada purchases and imports body panels fab- ricated in a third country in order to join them with vertically (locally) fabricated body panels to form an automobile body. If the body qualifies as an originating mate- rial, the exporter has two options. Under the first option, the exporter can claim the body as originating material, in which case the value of originating material is the price paid for the foreign body panels. Under the second option, the exporter may elect not to claim the body as originating material; but, rather, the exporter may claim as origi- nating material any domestic steel coil used in producing the vertically (locally) fab- ricated body panels, in which case the value of originating material is the price paid for the domestic steel coil.
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(c) Value of goods when exported. The term ‘‘value of the goods when ex- ported to the United States’’ means the aggregate of:
(1) The price paid by the producer for all materials, whether or not the mate- rials originate in the United States, or Canada, or both, and, when not in- cluded in the price paid for the mate- rials, the following costs related there- to:
(i) Freight, insurance, packing, and all other costs incurred in transporting all materials to the location of the pro- ducer;
(ii) Duties, taxes, and brokerage fees on all materials paid in the United States, or Canada, or both;
(iii) The cost of waste or spoilage re- sulting from the use or consumption of such materials, less the value of renew- able scrap or by-product; and
(iv) The value of goods and services relating to all materials determined in accordance with subparagraph 1(b) of Article 8 of the Agreement on Imple- mentation of Article VII of the General Agreement on Tariffs Trade; and
(2) The direct cost of processing or the direct cost of assembling the goods.
[T.D. 92–8, 57 FR 2453, Jan. 22, 1992; 57 FR 4793, Feb. 7, 1992, as amended by T.D. 92–98, 57 FR 46504, Oct. 9, 1992]
§ 10.306 Direct shipment to the United States.
Goods shall be considered as directly shipped to the United States from Can- ada for the purpose of eligibility for preferences under the Agreement only under the following circumstances:
(a) Through shipment. The goods have been shipped directly from Canada to the United States without passage through the territory of any third country; or
(b) Shipment through a third country. The goods were shipped through the territory of a third country but:
(1) The goods did not enter the com- merce of any third country;
(2) The goods did not undergo any op- eration other than unloading, reload- ing, or any operation necessary to transport them to the United States or to preserve them in good condition; and
(3) All shipping and export docu- ments show the United States as the final destination.
§ 10.307 Documentation. (a) Claims for a preference. A pref-
erence in accordance with the Agree- ment may be claimed by including on the entry summary, or equivalent doc- umentation, the symbol ‘‘CA’’ as a pre- fix to the subheading of the HTSUS under which each eligible good is clas- sified.
(b) Failure to claim a preference. Fail- ure to make a timely claim for a pref- erence under the Agreement will result in liquidation at the rate which would otherwise be applicable.
(c) Documentation showing origin. A claim for a preference under the Agree- ment shall be based on the Exporter’s Certificate of Origin, properly com- pleted and signed by the person who ex- ports or knowingly causes the goods to be exported from Canada. The Export- er’s Certificate of Origin must be avail- able at the time the preference is claimed and shall be presented to the port director upon request.
(d) Exporter’s Certificate of Origin—(1) General. The Exporter’s Certificate of Origin shall be prepared on Customs Form 353. In lieu of the Customs Form 353, the exporter may use an approved computerized format or such other for- mat as is approved by the Head- quarters, U.S. Customs Service, Office of Trade Operations, Washington, DC 20229. Alternative formats must con- tain the same information and certifi- cation set forth on Customs Form 353.
(2) Blanket certifications. A blanket Exporter’s Certificate of Origin, not to exceed a period of 12 months, issued for goods claimed as originating goods under the Agreement, can only be used if the certifying exporter is able to verify that the goods in each shipment to be covered by the blanket certifi- cation actually qualify for treatment under the Agreement. A blanket cer- tification does not allow an exporter to average its costs over the blanket cer- tification period in order to establish that the exported goods meet the cri- teria for originating goods under the Agreement. Under § 10.308, the exporter must retain supporting records that will permit a review of the eligibility
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of the goods in each shipment covered by a blanket certification.
(e) Exceptions to documentation re- quirements. Exceptions to the foregoing documentation requirements may be authorized at the discretion of the port director in the following cir- cumstances:
(1) Exception for informal entries. As set forth in paragraphs (e)(1) (i) and (ii) of this section, an Exporter’s Certifi- cate of Origin may be waived in con- nection with an entry entitled to infor- mal entry procedures as authorized in §§ 143.21 and 143.22 of this chapter if:
(i) Commercial goods which qualify for informal entry. The invoice, or an ap- propriate Customs release document, for commercial goods which qualify both for informal entry and a pref- erence must include the following statement, on the invoice or appro- priate Customs document:
I hereby certify that the goods described herein are eligible for a preference based upon the rules of origin enumerated in the United States-Canada Free-Trade Agree- ment.
Check One:
( ) Manufacturer ( ) Supplier ( ) Exporter llllllllllllllllllllllll
Signature llllllllllllllllllllllll
Title Date: llllllllllllllllllll
(ii) Noncommercial goods which qualify for informal entry. The importation of goods from Canada by a person for non- commercial use may be exempt from documentation requirements if the goods are legally marked ‘‘Made in Canada’’, or it can otherwise be shown that they are originating goods under the Agreement and there is no evidence to the contrary.
(2) Waiver of evidence of direct ship- ment. The port director may waive the submission of evidence of direct ship- ment when otherwise satisfied, taking into consideration the kind and value of the goods, that the goods were, in fact, imported directly from Canada, and that they otherwise qualify for a
preference in accordance with the Agreement.
[T.D. 89–3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92–8, 57 FR 2455, Jan. 22, 1992]
§ 10.308 Records retention. (a) Importer. The importer of record
shall retain the exporter’s certificate of origin required by § 10.307(d) for a pe- riod of 5 years and it must be made available upon request by the appro- priate Customs official.
(b) Exporter. Any person who exports, or who knowlingly causes to be ex- ported, any merchandise to Canada shall make, keep, and render for exam- ination and inspection, such records (including certifications of origin or copies thereof), which pertain to such exportation for a period of 5 years from the date of exportation. In the event that the appropriate Customs official requests submission of the records, they shall be submitted directly to the requesting official.
§ 10.309 Verification of documentation. Any evidence of country of origin or
of direct shipment submitted in sup- port of a preference under the Agree- ment shall be subject to such verification as the appropriate Cus- toms official may deem necessary. If the U.S. importer or U.S. exporter or their agent does not provide the infor- mation requested by the appropriate Customs officer, the port director may refuse to grant the claim for pref- erence, in addition to other available sanctions.
§ 10.310 Election to average for motor vehicles.
(a) Election. In determining whether a motor vehicle is originating for pur- poses of the preferences under the Agreement or a Canadian article under the Automotive Products Trade Act of 1965 (APTA), a manufacturer may elect to average, over its 12-month financial year, its calculation of the value-con- tent requirement for vehicles of the same class or sister vehicles which are assembled in the same plant as pro- vided for in the Agreement. A manufac- turer must declare its election to aver- age before the importation of any vehi- cles produced within the identified 12-
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month period. The election to average is subject to the conditions and re- quirements set forth in §§ 10.310 and 10.311.
(b) Effect of election. An election to average shall be binding at the time of the first entry of vehicles for which the election has been made and shall re- main binding for the plant for the en- tire period covered by the election. If a manufacturer’s annual report, required by § 10.311, does not verify the claim that the vehicles are originating goods under the Agreement or Canadian arti- cles under APTA, or if a manufacturer otherwise fails to comply with the re- porting requirements, entries of the ve- hicles identified in the averaging dec- laration will be subject to liquidation in accordance with the rate of duty which would otherwise apply.
(c) Election in lieu of certificate of ori- gin. In lieu of the Exporter’s Certificate of Origin required in § 10.307(c), an im- porter of vehicles covered by an elec- tion to average under this section may have its claim for preference based on a copy of the declaration of election.
[T.D. 89–3, 53 FR 51766, Dec. 23, 1988, as amended by T.D. 92–8, 57 FR 2455, Jan. 22, 1992]
§ 10.311 Documentation for election to average for motor vehicles.
A manufacturer who elects to aver- age for motor vehicles shall submit a declaration of election to average, quarterly reports, and an annual report in the form and manner as follows:
(a) Declaration of election. A declara- tion of election to average, signed by an authorized company official, shall be submitted by the manufacturer to the U.S. Customs and Border Protec- tion, Office of International Trade, Regulatory Audit, Detroit, Michigan 48226–2568 on CBP Form 355, Declara- tion of Election to Average.
(b) Quarterly Report. A quarterly re- port shall be submitted to the Office of International Trade, Regulatory Audit, at the above address, on CBP Form 356, Vehicle Cost Report (Quarterly), with- in 30 days after the end of each quarter. In lieu of the CBP Form 356, the manu- facturer may submit the information required on the form in an approved computerized format or such other for- mat as is approved by the U.S. Customs
and Border Protection, Office of Inter- national Trade, Regulatory Audit, De- troit, Michigan 48226–2568. Alternative formats must contain the same infor- mation set forth on the CBP Form 356. Negative quarterly reports are re- quired.
(c) Annual Report. An annual report shall be submitted to the U.S. Customs and Border Protection, Office of Inter- national Trade, Regulatory Audit, De- troit, Michigan 48226–2568, on CBP Form 357, Vehicle Cost Report (An- nual), within 90 days of the end of the financial year identified in the Elec- tion to Average, CBP Form 355. In lieu of the CBP Form 357, Vehicle Cost Re- port (Annual), the manufacturer may submit the information required on the form in an approved computerized for- mat or such other format as is ap- proved by the U.S. Customs and Border Protection, Office of International Trade, Regulatory Audit, Detroit, Michigan 48226–2568. Alternative for- mats must contain the same informa- tion set forth on CBP Form 357.
Subpart H—United States-Chile Free Trade Agreement
SOURCE: CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, unless otherwise noted.
GENERAL PROVISIONS
§ 10.401 Scope.
This subpart implements the duty preference and related customs provi- sions applicable to imported goods under the United States-Chile Free Trade Agreement (the US-CFTA) signed on June 6, 2003, and under the United States-Chile Free Trade Agree- ment Implementation Act (the Act; 117 Stat. 909). Except as otherwise speci- fied in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions imple- menting certain aspects of the US- CFTA and the Act are contained in parts 12, 24, 162, and 163 of this chapter.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76131, Dec. 20, 2006]
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§ 10.402 General definitions.
As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Certification. ‘‘Certification’’ means, either when used by itself or in the expression ‘‘certification of ori- gin’’, the certification established under article 4.13 of the US-CFTA, that a good qualifies as an originating good under the US-CFTA;
(b) Claim of origin. ‘‘Claim of origin’’ means a claim that a textile or apparel good is an originating good or a good of a Party;
(c) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the US–CFTA and to an exemp- tion from the merchandise processing fee;
(d) Customs authority. ‘‘Customs au- thority’’ means the competent author- ity that is responsible under the law of a Party for the administration of cus- toms laws and regulations;
(e) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(f) Days. ‘‘Days’’ means calendar days;
(g) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but, for purposes of imple- menting the US-CFTA, does not in- clude any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994; in respect of like, directly competitive, or substitut- able goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty; and
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered;
(h) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
(i) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(j) Goods. ‘‘Goods’’ means domestic products as these are understood in the GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party. A good of a Party may include materials of other coun- tries;
(k) Harmonized System. ‘‘Harmonized System (HS)’’ means the Harmonized Commodity Description and Coding Sys- tem, including its General Rules of In- terpretation, Section Notes, and Chap- ter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(l) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(m) HTSUS. ‘‘HTSUS’’ means the Harmonized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(n) Identical goods. ‘‘Identical goods’’ means goods that are the same in all respects relevant to the particular rule of origin that qualifies the goods as originating;
(o) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the produc- tion, testing, or inspection of a good in the territory of the United States or Chile but not physically incorporated into the good, or a good used in the maintenance of buildings or the oper- ation of equipment associated with the production of a good in the territory of the United States or Chile, including—
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
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(4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the goods;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but whose use in the production of the good can rea- sonably be demonstrated to be a part of that production;
(p) Originating. ‘‘Originating’’ means qualifying under the rules of origin set out in Chapter Four (Rules of Origin and Origin Procedures) of the US- CFTA;
(q) Party. ‘‘Party’’ means the United States or the Republic of Chile;
(r) Person. ‘‘Person’’ means a natural person or an enterprise;
(s) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable to an originating good under the US–CFTA, and an ex- emption from the merchandise proc- essing fee.
(t) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(u) Tariff preference level. ‘‘Tariff pref- erence level’’ means a quantitative limit for certain non-originating tex- tiles and textile apparel goods that may be entitled to preferential tariff treatment as if such goods were origi- nating based on the goods meeting the production requirements set forth in § 10.421 of this subpart.
(v) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ATC), which is part of the WTO Agreement;
(w) Territory. ‘‘Territory’’ means: (1) With respect to Chile, the land,
maritime and air space under its sov- ereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with inter- national law and its domestic law; and
(2) With respect to the United States,
(i) The customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico,
(ii) The foreign trade zones located in the United States and Puerto Rico, and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources;
(x) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76131, Dec. 20, 2006]
IMPORT REQUIREMENTS
§ 10.410 Filing of claim for preferential tariff treatment upon importation.
(a) Declaration. In connection with a claim for preferential tariff treatment for an originating good under the US- CFTA, including an exemption from the merchandise processing fee, the U.S. importer must make a written declaration that the good qualifies for such treatment. The written declara- tion is made by including on the entry summary, or equivalent documenta- tion, the symbol ‘‘CL’’ as a prefix to the subheading of the HTSUS under which each qualifying good is classi- fied, or by the method specified for equivalent reporting via electronic interchange.
(b) Corrected declaration. If, after making the declaration required under paragraph (a) of this section, the U.S. importer has reason to believe that the declaration or the certification or other information on which the dec- laration was based contains informa- tion that is not correct, the importer must, within 30 calendar days after the date of discovery of the error, make a corrected declaration and pay any du- ties that may be due. A corrected dec- laration will be effected by submission of a letter or other statement either in writing or via an authorized electronic data interchange system to the CBP of- fice where the original declaration was
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filed specifying the correction (see §§ 10.482 and 10.483 of this subpart).
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76131, Dec. 20, 2006]
§ 10.411 Certification of origin or other information.
(a) Contents. An importer who claims preferential tariff treatment on a good must submit, at the request of the port director, a certification of origin or other information demonstrating that the good qualifies as originating. A cer- tification or other information sub- mitted to CBP under this paragraph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone and e-mail address of the im- porter of record of the good (if known);
(ii) The legal name, address, tele- phone and e-mail address of the ex- porter of the good (if different from the producer);
(iii) The legal name, address, tele- phone and e-mail address of the pro- ducer of the good (if known);
(iv) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently de- tailed to relate it to the invoice and the HS nomenclature;
(v) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classifica- tion rule for the good set forth in Gen- eral Note 26(n), HTSUS;
(vi) The preference criterion as set forth in paragraph (f) of this section.
(b) Statement. A certification sub- mitted to CBP under paragraph (a) of this section must include a statement, in substantially the following form:
‘‘I Certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain, and present upon re- quest, documentation necessary to support this certification, and to inform, in writing, all persons to whom the certification was
given of any changes that could affect the accuracy or validity of this certification; and
The goods originated in the territory of one or more of the parties, and comply with the origin requirements specified for those goods in the United States-Chile Free Trade Agreement; there has been no further pro- duction or any other operation outside the territories of the parties, other than unload- ing, reloading, or any other operation nec- essary to preserve it in good condition or to transport the good to the United States; and
This document consists of ll pages, in- cluding all attachments.’’
(c) Responsible official or agent. A cer- tification submitted under paragraph (a) of this section must be signed and dated by a responsible official of the importer; exporter; or producer; or by the importer’s, exporter’s, or pro- ducer’s authorized agent having knowl- edge of the relevant facts. The certifi- cation must include the legal name and address of the responsible official or authorized agent signing the certifi- cation, and should include that per- son’s telephone and e-mail address, if available. If the person making the cer- tification is not the producer of the good, or the producer’s authorized agent, the person may sign the certifi- cation of origin based on:
(1) A certification that the good qualifies as originating issued by the producer; or
(2) Knowledge of the exporter or im- porter that the good qualifies as an originating good.
(d) Language. The certification or other information submitted under paragraph (a) of this section must be completed either in the English or Spanish language. If the certification or other information is completed in Spanish, the importer must also pro- vide to the port director, upon request, a written English translation of the certification or other information.
(e) Applicability of certification. A cer- tification may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period,
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not exceeding 12 months. In the case of multiple shipments of identical goods, the certification must specify the blan- ket period in ‘‘mm/dd/yyyy to mm/dd/ yyyy’’ format.
(f) Preference criteria. The preference criterion to be included on the certifi- cation or other information as required in paragraph (a)(2)(vi) of this section is as follows:
(1) Preference criterion ‘‘A’’, refers to a good that is wholly obtained or pro- duced entirely in the territory of Chile or of the United States, or both (see General Note 26(b)(i), HTSUS);
(2) Preference criterion ‘‘B’’, refers to a good that is produced entirely in the territory of Chile or the United States, or both (see General Note 26(b)(ii), HTSUS), and
(i) Each of the non-originating mate- rials used in the production of the good undergoes an applicable change in tar- iff classification specified in General Note 26(n), HTSUS, or
(ii) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 26(n), HTSUS;
(3) Preference criterion ‘‘C’’ refers to a good that is produced entirely in the territory of Chile or the United States, or both, exclusively from originating materials (see General Note 26(b)(iii), HTSUS).
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76132, Dec. 20, 2006; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.412 Importer obligations.
(a) General. An importer who makes a declaration under § 10.410(a) of this sub- part is responsible for the truthfulness of the declaration and of all the infor- mation and data contained in the cer- tification or other information sub- mitted to CBP under § 10.411(a) of this subpart, for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. CBP will allow for the direct submission by the exporter or producer of business confidential or other sensitive informa- tion, including cost and sourcing infor- mation.
(b) Compliance. In order to make a claim for preferential treatment under § 10.410 of this subpart, the importer:
(1) Must have records that explain how the importer came to the conclu- sion that the good qualifies for pref- erential tariff treatment. Those records must include documents that support a claim that the article in question qualifies for preferential tariff treatment because it meets the appli- cable rules of origin set forth in Gen- eral Note 26, HTSUS, and in this sub- part. Those records may include a properly completed certification or other information as set forth in § 10.411 of this subpart; and
(2) May be required to demonstrate that the conditions set forth in § 10.463 of this subpart were met if the im- ported article was shipped through an intermediate country.
(c) Information provided by exporter or producer. The fact that the importer has issued a certification based on in- formation provided by the exporter or producer will not relieve the importer of the responsibility referred to in paragraph (a) of this section. A U.S. importer who voluntarily makes a cor- rected declaration will not be subject to penalties for having made an incor- rect declaration (see § 10.481 of this sub- part).
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76132, Dec. 20, 2006]
§ 10.413 Validity of certification.
A certification that is completed, signed and dated in accordance with the requirements listed in § 10.411 of this subpart will be accepted by CBP as valid for four years from the date on which the certification was signed. If the port director determines that a cer- tification is illegible or defective or has not been completed in accordance with § 10.411 of this subpart, the im- porter will be given a period of not less than five business days to submit a corrected certification.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76132, Dec. 20, 2006]
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19 CFR Ch. I (4–1–12 Edition)§ 10.414
§ 10.414 Certification or other informa- tion not required.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a certification or other informa- tion demonstrating that the good qualifies as originating under § 10.411(a) of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation of a good whose value does not exceed U.S. $2,500, or the equivalent amount in Chilean currency.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the US-CFTA, the port director will notify the importer in writing that for that importation the importer must submit to CBP a valid certification or other information demonstrating that the good qualifies as originating. The importer must sub- mit such a certification or other infor- mation within 30 calendar days from the date of the written notice. Failure to timely submit the certification or other information will result in denial of the claim for preferential tariff treatment.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76132, Dec. 20, 2006]
§ 10.415 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good imported into the United States must maintain, for five years after the date of importation of the good, a certifi- cation (or a copy thereof) or other in- formation demonstrating that the good qualifies as originating, and any records and documents that the im- porter has relating to the origin of the good, including records and documents associated with:
(1) The purchase of, cost of, value of, and payment for, the good;
(2) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered
goods and indirect materials, used in the production of the good; and,
(3) Where appropriate, the production of the good in the form in which the good was exported.
(b) Method of maintenance. The records referred to in paragraph (a) of this section must be maintained by im- porters as provided in § 163.5 of this chapter.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.416 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) Effect of noncompliance. If the im- porter fails to comply with any re- quirement under this subpart, includ- ing submission of a certification of ori- gin or other information dem- onstrating that the good qualifies as originating under § 10.411(a) of this sub- part or submission of a corrected cer- tification under § 10.413 of this subpart, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to an originating good if the good is shipped through or trans- shipped in a country other than Chile or the United States, and the importer of the good does not provide, at the re- quest of the port director, copies of documents demonstrating to the satis- faction of the port director that the re- quirements set forth in § 10.463 of this subpart were met.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
TARIFF PREFERENCE LEVEL
§ 10.420 Filing of claim for tariff pref- erence level.
A cotton or man-made fiber fabric or apparel good described in § 10.421 of this subpart that does not qualify as an originating good under § 10.451 of this subpart may nevertheless be entitled to preferential tariff treatment under the US-CFTA under an applicable tariff
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U.S. Customs and Border Protection, DHS; Treasury § 10.422
1 The relevant HTSUS subheadings for fab- ric goods in Chapters 58 or 60 eligible under HTSUS 9911.99.20 are as follows: 5801.21, 5801.22, 5801.23, 5801.24, 5801.25, 5801.26, 5801.31, 5801.32, 5801.33, 5801.34, 5801.35, 5801.36, 5802.11, 5802.19, 5802.20.0020, 5802.30.0030, 5803.10, 5803.90.30, 5804.10.10, 5804.21, 5804.29.10, 5804.30.0020, 5805.00.30, 5805.00.4010, 5806.10.10, 5806.10.24, 5806.10.28, 5806.20, 5806.31, 5806.32, 5807.10.05, 5807.10.2010, 5807.10.2020, 5807.90.05, 5807.90.2010, 5807.90.2020, 5808.10.40, 5808.10.70, 5808.90.0010, 5809.00, 5810.10, 5810.91, 5810.92, 5811.00.20, 5811.00.30, 6001.10, 6001.21, 6001.22, 6001.91, 6001.92, 6002.40, 6002.90, 6003.20, 6003.30,
6003.40, 6004.10, 6004.90, 6005.21, 6005.22, 6005.23, 6005.24, 6005.31, 6005.32, 6005.33, 6005.34, 6005.41, 6005.42, 6005.43, 6005.44, 6006.21, 6006.22, 6006.23, 6006.24, 6006.31, 6006.32, 6006.33, 6006.34, 6006.41, 6006.42, 6006.43, 6006.44.
preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent doc- umentation, the applicable subheading in Chapter 99 of the HTSUS (9911.99.20 for a good described in § 10.421(a) or (b) of this subpart or 9911.99.40 for a good described in § 10.421(c) of this subpart) immediately above the applicable sub- heading in Chapter 52 through 62 of the HTSUS under which each non-origi- nating cotton or man-made fiber fabric or apparel good is classified.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.421 Goods eligible for tariff pref- erence claims.
The following goods are eligible for a TPL claim filed under § 10.420 of this subpart:
(a) Woven fabrics. Certain woven fab- rics of Chapters 52, 54 and 55 of the HTSUS (Headings 5208 to 5212; 5407 and 5408; 5512 to 5516) that meet the appli- cable conditions for preferential tariff treatment under the US-CFTA other than the condition that they are origi- nating goods, if they are wholly formed in the U.S. or Chile regardless of the origin of the yarn used to produce these fabrics.
(b) Cotton or man-made fabric goods. Certain cotton or man-made fabric goods of Chapters 58 and 60 of the HTSUS that meet the applicable condi- tions for preferential tariff treatment under the US-CFTA other than the condition that they are originating goods if they are wholly formed in the U.S. or Chile regardless of the origin of the fibers used to produce the spun yarn or the yarn used to produce the fabrics. 1
(c) Cotton or man-made apparel goods. Cotton or man-made apparel goods in Chapters 61 and 62 of the HTSUS that are both cut (or knit-to-shape) and sewn or otherwise assembled in the U.S. or Chile regardless of the origin of the fabric or yarn, provided that they meet the applicable conditions for pref- erential tariff treatment under the US- CFTA, other than the condition that they are originating goods.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.422 Submission of certificate of eligibility.
(a) Contents. An importer who claims preferential tariff treatment on a non- originating cotton or man-made fiber fabric or apparel good must submit, at the request of the port director, a cer- tificate of eligibility containing infor- mation demonstrating that the good satisfies the requirements for entry under the applicable TPL, as set forth in § 10.421 of this subpart. A certificate of eligibility submitted to CBP under this section:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone and e-mail address of the im- porter of record of the good;
(ii) The legal name and address of the responsible official or authorized agent of the importer signing the certificate (if different from the importer of record), and that person’s telephone and e-mail address, if available;
(iii) The legal name, address, tele- phone and e-mail address of the ex- porter of the good (if different from the producer);
(iv) The legal name, address, tele- phone and e-mail address of the pro- ducer of the good (if known);
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(v) A description of the good, which must be sufficiently detailed to relate it to the invoice and the HS nomen- clature;
(vi) The HTSUS tariff classification of the good, to six or more digits, as well as the applicable subheading in Chapter 99 of the HTSUS (9911.99.20 or 9911.99.40);
(vii) For a single shipment, the com- mercial invoice number;
(viii) For multiple shipments of iden- tical goods, the blanket period in ‘‘mm/ dd/yyyy to mm/dd/yyyy’’ format (12- month maximum); and
(3) Must include a statement, in sub- stantially the following form:
‘‘I Certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support this certificate, and to inform, in writing, all persons to whom the certificate was given of any changes that could affect the accuracy or validity of this certificate; and
The goods were produced in the territory of one or more of the parties, and comply with the preference requirements specified for those goods in the United States-Chile Free Trade Agreement and Chapter 99, sub- chapter XI of the HTSUS. There has been no further production or any other operation outside the territories of the parties, other than unloading, reloading, or any other oper- ation necessary to preserve it in good condi- tion or to transport the good to the United States; and
This document consists of ll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The certificate of eligibility required to be submitted under this section must be signed and dated by a responsible offi- cial of the importer or by the import- er’s authorized agent having knowledge of the relevant facts.
(c) Language. The certificate of eligi- bility must be completed either in the English or Spanish language. If the cer- tificate is completed in Spanish, the importer must also provide to the port director, upon request, a written English translation of the certificate;
(d) Applicability of certificate of eligi- bility. A certificate of eligibility may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certificate.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.423 Certificate of eligibility not re- quired.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a certificate of eligibility for:
(1) A non-commercial importation of a good; or
(2) A commercial importation of a good whose value does not exceed U.S. $2,500, or the equivalent amount in Chilean currency.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing TPL claims for preference under the US-CFTA, the port director will notify the importer in writing that for that importation the importer must submit to CBP a valid certificate of eligibility. The im- porter must submit such a certificate within 30 calendar days from the date of the written notice. Failure to timely submit the certificate will result in de- nial of the claim for preferential tariff treatment.
§ 10.424 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment of non-origi- nating cotton or man-made fiber fabric or apparel goods.
(a) Effect of noncompliance. If the im- porter fails to comply with any re- quirement under this subpart, includ- ing submission of a certificate of eligi- bility under § 10.422 of this subpart, the port director may deny preferential tariff treatment to the imported good.
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U.S. Customs and Border Protection, DHS; Treasury § 10.430
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than Chile or the United States, and the importer of the good does not provide, at the request of the port di- rector, copies of documents dem- onstrating to the satisfaction of the port director that the requirements set forth in § 10.425 of this subpart were met.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.425 Transit and transshipment of non-originating cotton or man- made fiber fabric or apparel goods.
(a) General. A good will not be consid- ered eligible for preferential tariff treatment under an applicable TPL by reason of having undergone production that occurs entirely in the territory of Chile, the United States, or both, that would enable the good to qualify for preferential tariff treatment if subse- quent to that production the good un- dergoes further production or any other operation outside the territories of Chile and the United States, other than unloading, reloading, or any other process necessary to preserve the good in good condition or to transport the good to the territory of Chile or the United States.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment may be required to demonstrate, to CBP’s satisfaction, that no further production or subse- quent operation, other than permitted under paragraph (a) of this section, oc- curred outside the territories of Chile or the United States. An importer may demonstrate compliance with this sec- tion by submitting documentary evi- dence. Such evidence may include, but is not limited to, bills of lading, pack- ing lists, commercial invoices, and cus- toms entry and exit documents.
EXPORT REQUIREMENTS
§ 10.430 Export requirements. (a) Submission of certification to CBP.
An exporter or producer in the United States that signs a certification of ori- gin for a good exported from the United States to Chile must provide a copy of the certification (or such other me- dium or format approved by the Chile customs authority for that purpose) to CBP upon request.
(b) Notification of errors in certifi- cation. An exporter or producer in the United States who has completed and signed a certification of origin, and who has reason to believe that the cer- tification contains or is based on infor- mation that is not correct, must imme- diately after the date of discovery of the error notify in writing all persons to whom the certification was given by the exporter or producer of any change that could affect the accuracy or valid- ity of the certification.
(c) Maintenance of records—(1) Gen- eral. An exporter or producer in the United States that signs a certification of origin for a good exported from the United States to Chile must maintain in the United States, for a period of at least five years after the date the cer- tification was signed, all records and supporting documents relating to the origin of a good for which the certifi- cation was issued, including records and documents associated with:
(i) The purchase of, cost of, value of, and payment for, the good;
(ii) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and
(iii) Where appropriate, the produc- tion of the good in the form in which the good was exported.
(2) Method of maintenance. The records referred to in paragraph (c) of this section must be maintained in ac- cordance with the Generally Accepted Accounting Principles applied in the country of production and in the case of exporters or producers in the United States must be maintained in the same manner as provided in § 163.5 of this chapter.
(3) Availability of records. For pur- poses of determining compliance with
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the provisions of this part, the export- er’s or producer’s records required to be maintained under this section must be stored and made available for exam- ination and inspection by the port di- rector or other appropriate CBP officer in the same manner as provided in part 163 of this chapter.
§ 10.431 Failure to comply with re- quirements.
The port director may apply such measures as the circumstances may warrant where an exporter or a pro- ducer in the United States fails to com- ply with any requirement of this part. Such measures may include the impo- sition of penalties pursuant to 19 U.S.C. 1508(g) for failure to retain records required to be maintained under § 10.430.
POST-IMPORTATION DUTY REFUND CLAIMS
§ 10.440 Right to make post-importa- tion claim and refund duties.
Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the pro- cedures set forth in § 10.441 of this sub- part. Subject to the provisions of § 10.416 of this subpart, CBP may refund any excess duties by liquidation or re- liquidation of the entry covering the good in accordance with § 10.442(c) of this part.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.441 Filing procedures. (a) Place of filing. A post-importation
claim for a refund under § 10.440 of this subpart must be filed with the director of the port at which the entry covering the good was filed.
(b) Contents of claim. A post-importa- tion claim for a refund must be filed by presentation of the following:
(1) A written declaration stating that the good qualified as an originating
good at the time of importation and setting forth the number and date of the entry or entries covering the good;
(2) Subject to § 10.413 of this subpart, a copy of a certification of origin or other information demonstrating that the good qualifies for preferential tariff treatment;
(3) A written statement indicating whether or not the importer of the good provided a copy of the entry sum- mary or equivalent documentation to any other person. If such documenta- tion was so provided, the statement must identify each recipient by name, CBP identification number and address and must specify the date on which the documentation was provided; and
(4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such pro- test has been filed, the statement must identify the protest by number and date.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.442 CBP processing procedures.
(a) Status determination. After receipt of a post-importation claim under § 10.441 of this subpart, the port direc- tor will determine whether the entry covering the good has been liquidated and, if liquidation has taken place, whether the liquidation has become final.
(b) Pending protest or judicial review. If the port director determines that any protest relating to the good has not been finally decided, the port director will suspend action on the claim for re- fund filed under this subpart until the decision on the protest becomes final. If a summons involving the tariff clas- sification or dutiability of the good is filed in the Court of International Trade, the port director will suspend action on the claim for refund filed under this subpart until judicial review has been completed.
(c) Allowance of claim—(1) Unliqui- dated entry. If the port director deter- mines that a claim for a refund filed under this subpart should be allowed and the entry covering the good has not been liquidated, the port director
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will take into account the claim for re- fund under this subpart in connection with the liquidation of the entry.
(2) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be allowed and the entry covering the good has been liquidated, whether or not the liquidation has become final, the entry must be reliquidated in order to effect a refund of duties pursuant to this subpart. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, the port director will reliquidate the entry taking into ac- count the claim for refund under this subpart.
(d) Denial of claim—(1) General. The port director may deny a claim for a refund filed under § 10.441 of this sub- part if the claim was not filed timely, if the importer has not complied with the requirements of § 10.441 of this sub- part, if the certification submitted under § 10.441(b)(2) of this subpart can- not be accepted as valid (see § 10.413 of this subpart), or if, following an origin verification under § 10.470 of this sub- part, the port director determines ei- ther that the imported good did not qualify as an originating good at the time of importation or that a basis ex- ists upon which preferential tariff treatment may be denied under § 10.470 of this subpart.
(2) Unliquidated entry. If the port di- rector determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has not been liquidated, the port direc- tor will deny the claim in connection with the liquidation of the entry, and notice of the denial and the reason for the denial will be provided to the im- porter in writing or via an authorized electronic data interchange system.
(3) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has been liquidated, whether or not the liquidation has become final, the claim may be denied without reliquidation of the entry. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, such reliquidation may include denial of the claim filed under
this subpart. In either case, the port di- rector will give the importer notice of the denial and the reason for the denial in writing or via an authorized elec- tronic data interchange system.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
RULES OF ORIGIN
§ 10.450 Definitions.
For purposes of §§ 10.450 through 10.463 of this subpart:
(a) Adjusted value. ‘‘Adjusted value’’ means the value determined in accord- ance with Articles 1 through 8, Article 15, and the corresponding interpreta- tive notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the mer- chandise from the country of expor- tation to the place of importation and the value of packing materials and containers for shipment as defined in § 10.450(m) of this subpart;
(b) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(c) Fungible goods or materials. ‘‘Fun- gible goods or materials’’ means goods or materials that are interchangeable for commercial purposes and whose properties are essentially identical;
(d) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the prin- ciples, rules, and procedures, including both broad and specific guidelines, that define the accounting practices accept- ed in the territory of a Party;
(e) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(f) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. ‘‘Goods wholly obtained or produced entirely in the territory of one or both of the Parties’’ means:
(1) Mineral goods extracted in the territory of one or both of the Parties;
(2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties;
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(3) Live animals born and raised in the territory of one or both of the Par- ties;
(4) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the Parties;
(5) Goods (fish, shellfish, and other marine life) taken from the sea by ves- sels registered or recorded with a Party and flying its flag;
(6) Goods produced on board factory ships from the goods referred to in paragraph (f)(5) provided such factory ships are registered or recorded with that Party and fly its flag;
(7) Goods taken by a Party or a per- son of a Party from the seabed or be- neath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
(8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(9) Waste and scrap derived from: (i) Production in the territory of one
or both of the Parties, or (ii) Used goods collected in the terri-
tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(10) Recovered goods derived in the territory of a Party from used goods, and utilized in the Party’s territory in the production of remanufactured goods; and
(11) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in para- graphs (f)(1) through (f)(10) of this sec- tion, or from their derivatives, at any stage of production;
(g) Importer. ‘‘Importer’’ means a per- son who imports goods into the terri- tory of a Party;
(h) Issued. ‘‘Issued’’ means prepared by and, where required under a Party’s domestic law or regulation, signed by the importer, exporter, or producer of the good;
(i) Location of the producer. ‘‘Location of the producer’’ means site of produc- tion of a good;
(j) Material. ‘‘Material’’ means a good that is used in the production of an- other good, including a part, ingre- dient, or indirect material;
(k) Non-originating good. ‘‘Non-origi- nating good’’ means a good that does
not qualify as originating under this subpart;
(l) Non-originating material. ‘‘Non- originating material’’ means a mate- rial that does not qualify as origi- nating under this subpart;
(m) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(n) Producer. ‘‘Producer’’ means a person who engages in the production of a good in the territory of a Party;
(o) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, raising, trapping, hunting, manufac- turing, processing, assembling, or dis- assembling a good;
(p) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that are the result of:
(1) The complete disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition by one or more of the following processes: welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding in order for such parts to be assembled with other parts, including other re- covered parts in the production of a re- manufactured good of Annex 4.18, US- CFTA;
(q) Remanufactured goods. ‘‘Remanu- factured goods’’ means industrial goods assembled in the territory of a Party, listed in Annex 4.18, US-CFTA, that:
(1) Are entirely or partially com- prised of recovered goods;
(2) Have the same life expectancy and meet the same performance standards as new goods; and
(3) Enjoy the same factory warranty as such new goods; and
(r) Self-produced material. ‘‘Self-pro- duced material’’ means a material that is produced by the producer of a good and used in the production of that good; and
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(s) Value. ‘‘Value’’ means the value of a good or material for purposes of cal- culating customs duties or for purposes of applying this subpart.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.451 Originating goods. A good imported into the customs
territory of the United States will be considered an originating good under the US-CFTA only if:
(a) The good is wholly obtained or produced entirely in the territory of Chile or of the United States, or both; or
(b) The good is produced entirely in the territory of Chile or of the United States, or both, satisfies all other ap- plicable requirements of this subpart, and
(1) Each of the non-originating mate- rials used in the production of the good undergoes an applicable change in tar- iff classification specified in General Note 26(n), HTSUS, and
(2) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 26(n), HTSUS; or
(c) The good is produced entirely in the territory of Chile or the United States, or both, exclusively from origi- nating materials.
§ 10.452 Exclusions. A good will not be considered to be
an originating good and a material will not be considered to be an originating material by virtue of having under- gone:
(a) Simple combining or packaging operations; or
(b) Mere dilution with water or with another substance that does not mate- rially alter the characteristics of the good or material.
§ 10.453 Treatment of textile and ap- parel sets.
Notwithstanding the specific rules specified in General Note 26(n), HTSUS, textile and apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Inter- pretation 3, HTSUS, will not be re- garded as originating goods unless each of the goods in the set is an originating
good or the non-originating goods in the set do not exceed 10 percent of the adjusted value of the set.
§ 10.454 Regional value content.
Where General Note 26, subdivision (n), HTSUS, sets forth a rule that specifies a regional value content test for a good, the regional value content of such good may be calculated, at the choice of the person claiming the tariff treatment authorized by this note for such good, on the basis of the build- down method or the build-up method described in this section, unless other- wise specified in the note.
(a) Build-down method. For the build- down method, the regional value con- tent must be calculated on the basis of the formula RVC = ((AV–VNM)/AV) × 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value; and VNM is the value of non-originating materials used by the producer in the production of the good; or
(b) Build-up method. For the build-up method, the regional value content must be calculated on the basis of the formula RVC = (VOM/AV) × 100, where RVC is the regional value content, ex- pressed as a percentage; AV is the ad- justed value; and VOM is the value of originating materials used by the pro- ducer in the production of the good.
§ 10.455 Value of materials.
(a) Calculating the regional value con- tent. For purposes of calculating the re- gional value content of a good under General Note 26(n), HTSUS, and for purposes of applying the de minimis (see § 10.459) provisions of subdivision (e) of the note, the value of a material is:
(1) In the case of a material imported by the producer of the good, the ad- justed value of the material with re- spect to that importation;
(2) In the case of a material acquired in the territory where the good is pro- duced, except for a material to which paragraph (a)(3) of this section applies, the producer’s price actually paid or payable for the material;
(3) In the case of a material provided to the producer without charge, or at a price reflecting a discount or similar reduction, the sum of—
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(i) All expenses incurred in the growth, production or manufacture of the material, including general ex- penses, and
(ii) A reasonable amount for profit; or
(4) In the case of a material that is self-produced, the sum of—
(i) All expenses incurred in the pro- duction of the material, including gen- eral expenses, and
(ii) A reasonable amount for profit. (b) Permissible additions to, and deduc-
tions from, the value of materials. The value of materials may be adjusted as follows:
(1) For originating materials, the fol- lowing expenses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing and all other costs incurred in transporting the material to the loca- tion of the producer;
(ii) Duties, taxes and customs broker- age fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, re- fundable or otherwise recoverable, in- cluding credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and
(2) For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non- originating material:
(i) The costs of freight, insurance, packing and all other costs incurred in transporting the material to the loca- tion of the producer;
(ii) Duties, taxes and customs broker- age fees on the material paid in the territory of Chile or of the United States, or both, other than duties and taxes that are waived, refunded, re- fundable or otherwise recoverable, in- cluding credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the
value of renewable scrap or by-prod- ucts; and
(iv) The cost of originating materials used in the production of the non-origi- nating material in the territory of Chile or of the United States.
(c) Accounting method. Any cost or value referenced in General Note 26(n), HTSUS, and this subpart, must be re- corded and maintained in accordance with the generally accepted accounting principles applicable in the territory of the Party in which the good is pro- duced (whether Chile or the United States).
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76133, Dec. 20, 2006]
§ 10.456 Accessories, spare parts or tools.
Accessories, spare parts or tools that form part of the good’s standard acces- sories, spare parts or tools and are de- livered with the good will be treated as a material used in the production of the good, if—
(a) The accessories, spare parts or tools are classified with and not invoiced separately from the good; and
(b) The quantities and value of the accessories, spare parts or tools are customary for the good.
§ 10.457 Fungible goods and materials. (a) A person claiming preferential
tariff treatment under the US-CFTA for a good may claim that a fungible good or material is originating either based on the physical segregation of each fungible good or material or by using an inventory management meth- od. For purposes of this subpart, the term ‘‘inventory management method’’ means—
(1) Averaging, (2) ‘‘Last-in, first-out,’’ (3) ‘‘First-in, first-out,’’ or (4) Any other method that is recog-
nized in the generally accepted ac- counting principles of the Party in which the production is performed (whether Chile or the United States) or otherwise accepted by that Party.
(b) A person selecting an inventory management method under paragraph (a) of this section for particular fun- gible goods or materials must continue to use that method for those fungible
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goods or materials throughout the fis- cal year of that person.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
§ 10.458 Accumulation. (a) Originating goods or materials of
Chile or the United States that are in- corporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party for purposes of determining the eligibility of the goods or materials for preferential tariff treatment under the US-CFTA.
(b) A good that is produced in the territory of Chile, the United States, or both, by one or more producers, will be considered as an originating good if the good satisfies the applicable require- ments of § 10.451 and General Note 26, HTSUS.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
§ 10.459 De minimis. (a) Except as provided in paragraphs
(b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 26(n), HTSUS, will nonetheless be con- sidered to be an originating good if—
(1) The value of all non-originating materials that are used in the produc- tion of the good and do not undergo the applicable change in tariff classifica- tion does not exceed 10 percent of the adjusted value of the good;
(2) The value of such non-originating materials is included in calculating the value of non-originating materials for any applicable regional value-content requirement under this note; and
(3) The good meets all other applica- ble requirements of General Note 26(n), HTSUS.
(b) Paragraph (a) of this section does not apply to:
(1) A non-originating material pro- vided for in Chapter 4 of the Har- monized System, or a non-originating dairy preparation containing over 10 percent by weight of milk solids pro- vided for in subheadings 1901.90 or 2106.90 of the Harmonized System, that is used in the production of a good pro-
vided for in Chapter 4 of the Har- monized System;
(2) A non-originating material pro- vided for in Chapter 4 of the Har- monized System, or non-originating dairy preparations containing over 10 percent by weight of milk solids pro- vided for in subheading 1901.90 of the Harmonized System, that are used in the production of the following goods: infant preparations containing over 10 percent in weight of milk solids pro- vided for in subheading 1901.10 of the Harmonized System; mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20 of the Harmonized System; dairy prepara- tions containing over 10 percent by weight of milk solids provided for in subheadings 1901.90 or 2106.90 of the Harmonized System; goods provided for in heading 2105 of the Harmonized Sys- tem; beverages containing milk pro- vided for in subheading 2202.90 of the Harmonized System; or animal feeds containing over 10 percent by weight of milk solids provided for in subheading 2309.90 of the Harmonized System;
(3) A non-originating material pro- vided for in heading 0805 of the Har- monized System or subheadings 2009.11 through 2009.30 of the Harmonized Sys- tem that is used in the production of a good provided for in subheadings 2009.11 through 2009.30 of the Harmonized Sys- tem, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, con- centrated or unconcentrated, provided for in subheadings 2106.90 or 2202.90 of the Harmonized System;
(4) A non-originating material pro- vided for in Chapter 15 of the Har- monized System that is used in the production of a good provided for in headings 1501 through 1508, 1512, 1514, or 1515 of the Harmonized System;
(5) A non-originating material pro- vided for in heading 1701 of the Har- monized System that is used in the production of a good provided for in headings 1701 through 1703 of the Har- monized System;
(6) A non-originating material pro- vided for in Chapter 17 or in heading 1805 of the Harmonized System that is
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used in the production of a good pro- vided for in subheading 1806.10 of the Harmonized System;
(7) A non-originating material pro- vided for in headings 2203 through 2208 of the Harmonized System that is used in the production of a good provided for in heading 2207 or 2208 of the Har- monized System; and
(8) A non-originating material used in the production of a good provided for in Chapters 1 through 21 of the Har- monized System unless the non-origi- nating material is provided for in a dif- ferent subheading than the good for which origin is being determined under this section.
(c) A textile or apparel good provided for in Chapters 50 through 63 of the Harmonized System that is not an originating good because certain fibers or yarns used in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 26(n), HTSUS, shall nonetheless be considered to be an originating good if the total weight of all such fibers or yarns in that component is not more than seven percent of the total weight of that component. A good containing elastomeric yarns in the component of the good that determines the tariff classification of the good shall be con- sidered to be an originating good only if such yarns are wholly formed in the territory of a Party. For purposes of this paragraph, if a good is a fiber, yarn or fabric, the component of the good that determines the tariff classi- fication of the good is all of the fibers in the yarn, fabric or group of fibers.
§ 10.460 Indirect materials. An indirect material, as defined in
§ 10.402(o), will be considered to be an originating material without regard to where it is produced.
Example. Chilean Producer C produces good C using non-originating material A. Pro- ducer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.451(b)(1) and General Note 26(n), each of the non-origi- nating materials in good C must undergo the specified change in tariff classification in order for good C to be considered originating. Although non-originating material A must
undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indi- rect materials and are considered origi- nating without regard to where they are pro- duced.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
§ 10.461 Retail packaging materials and containers.
Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential tariff treatment under the US-CFTA is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the ap- plicable change in tariff classification set out in General Note 26(n), HTSUS. If the good is subject to a regional value content requirement, the value of such packaging materials and con- tainers will be taken into account as originating or non-originating mate- rials, as the case may be, in calculating the regional value content of the good.
Example 1. Chilean Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.455(a)(1), the value of the blis- ter packages is their adjusted value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV–VNM)/AV) × 100 (see § 10.454(a) of this subpart), in deter- mining whether good C satisfies the regional value content requirement. In applying this method, the non-originating blister packages are taken into account as non-originating. As such, their $10 adjusted value is included in the VNM, value of non-originating mate- rials, of good C.
Example 2. Same facts as in Example 1, but the blister packages are originating. In this case, the adjusted value of the originating blister packages would not be included as part of the VNM of good C under the build- down method. However, if the United States importer had used the build-up method, RVC = (VOM/AV) × 100 (see § 10.454(b)), the adjusted value of the blister packaging would be in- cluded as part of the VOM, value of origi- nating material.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
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§ 10.462 Packing materials and con- tainers for shipment.
(a) Packing materials and containers for shipment, as defined in § 10.450(m), are to be disregarded in determining whether the non-originating materials used in the production of the good un- dergo an applicable change in tariff classification set out in General Note 26(n), HTSUS. Accordingly, such mate- rials and containers do not have to un- dergo the applicable change in tariff classification even if they are non-orig- inating.
(b) Packing materials and containers for shipment, as defined in § 10.450(m), are to be disregarded in determining the regional value content of a good imported into the United States. Ac- cordingly, in applying either the build- down or build-up method for deter- mining the regional value content of the good imported into the United States, the value of such packing mate- rials and containers for shipment (whether originating or non-origi- nating) is disregarded and not included in AV, adjusted value, VNM, value of non-originating materials, or VOM, value of originating materials.
Example. Chilean Producer A produces good C. Producer A ships good C to the United States in a shipping container which it pur- chased from Company B in Chile. The ship- ping container is originating. The value of the shipping container determined under sec- tion § 10.455(a)(2) is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which in- cludes the $3 shipping container. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 (see § 10.454(b)), in de- termining whether good C satisfies the re- gional value content requirement. In deter- mining the AV, adjusted value, of good C im- ported into the U.S., paragraph (b) of this section requires a $3 deduction for the value of the shipping container. Therefore, the AV is $97 ($100–$3). In addition, the value of the shipping container is disregarded and not in- cluded in the VOM, value of originating ma- terials.
§ 10.463 Transit and transshipment. (a) General. A good will not be consid-
ered an originating good by reason of having undergone production that oc- curs entirely in the territory of Chile, the United States, or both, that would enable the good to qualify as an origi- nating good if subsequent to that pro-
duction the good undergoes further production or any other operation out- side the territories of Chile and the United States, other than unloading, reloading, or any other process nec- essary to preserve the good in good condition or to transport the good to the territory of Chile or the United States.
(b) Documentary evidence. An im- porter making a claim that a good is originating may be required to dem- onstrate, to CBP’s satisfaction, that no further production or subsequent oper- ation, other than permitted under paragraph (a) of this section, occurred outside the territories of Chile or the United States. An importer may dem- onstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, packing lists, commercial invoices, and cus- toms entry and exit documents.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.470 Verification and justification of claim for preferential treatment.
(a) Verification. A claim for pref- erential tariff treatment made under § 10.410 or § 10.442 of this subpart, in- cluding any statements or other infor- mation submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, the port director may deny the claim for preferential tariff treat- ment. A verification of a claim for preferential treatment may involve, but is not limited to, a review of:
(1) All records required to be made, kept, and made available to CBP by the importer or any other person under part 163 of this chapter;
(2) Documentation and other infor- mation regarding the country of origin of an article and its constituent mate- rials, including, but not limited to, production records, supporting ac- counting and financial records, infor- mation relating to the place of produc- tion, the number and identification of
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the types of machinery used in produc- tion, and the number of workers em- ployed in production; and
(3) Evidence that documents the use of U.S. or Chilean materials in the pro- duction of the article subject to the verification, such as purchase orders, invoices, bills of lading and other ship- ping documents, customs import and clearance documents, and bills of ma- terial and inventory records.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.471 Special rule for verifications in Chile of U.S. imports of textile and apparel products.
(a) Procedures to determine whether a claim of origin is accurate. For the pur- pose of determining that a claim of ori- gin for a textile or apparel good is ac- curate, CBP may request that the gov- ernment of Chile conduct a verification, regardless of whether a claim is made for preferential tariff treatment. While a verification under this paragraph is being conducted, CBP may take appropriate action, as di- rected by The Committee for the Im- plementation of Textile Agreements (CITA), which may include suspending the application of preferential treat- ment to the textile or apparel good for which a claim of origin has been made. If CBP is unable to make the deter- mination described in this paragraph within 12 months after a request for a verification, CBP may take appro- priate action with respect to the tex- tile and apparel good subject to the verification, and with respect to simi- lar goods exported or produced by the entity that exported or produced the good, if directed by CITA.
(b) Procedures to determine compliance with applicable customs laws and regula- tions of the U.S. For purposes of ena- bling CBP to determine that an ex- porter or producer is complying with
applicable customs laws, regulations, and procedures in cases in which CBP has a reasonable suspicion that a Chil- ean exporter or producer is engaging in unlawful activity relating to trade in textile and apparel goods, CBP may re- quest that the government of Chile conduct a verification, regardless of whether a claim is made for pref- erential tariff treatment. A ‘‘reason- able suspicion’’ for the purpose of this paragraph will be based on relevant factual information, including infor- mation of the type set forth in Article 5.5 of the US-CFTA, that indicates cir- cumvention of applicable laws, regula- tions or procedures regarding trade in textile and apparel goods. CBP may un- dertake or assist in a verification under this paragraph by conducting visits in Chile, along with the com- petent authorities of Chile, to the premises of an exporter, producer or any other enterprise involved in the movement of textile or apparel goods from Chile to the United States. While a verification under this paragraph is being conducted, CBP may take appro- priate action, as directed by CITA, which may include suspending the ap- plication of preferential tariff treat- ment to the textile and apparel goods exported or produced by the Chilean entity where the reasonable suspicion of unlawful activity relates to those goods. If CBP is unable to make the de- termination described in this para- graph within 12 months after a request for a verification, CBP may take appro- priate action with respect to any tex- tile or apparel goods exported or pro- duced by the entity subject to the verification, if directed by CITA.
(c) Assistance by CBP to Chilean au- thorities. CBP may undertake or assist in a verification under this section by conducting visits in Chile, along with the competent authorities of Chile, to the premises of an exporter, producer or any other enterprise involved in the movement of textile or apparel goods from Chile to the United States.
(d) Treatment of documents and infor- mation provided to CBP. Any produc- tion, trade and transit documents and other information necessary to conduct a verification under this section, pro- vided to CBP by the government of
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Chile consistent with the laws, regula- tions, and procedures of Chile, will be considered confidential as provided for in Article 5.6 of the US-CFTA.
(e) Notification to Chile. Prior to com- mencing appropriate action under paragraph (a) or (b) of this section, CBP will notify the government of Chile. CBP may continue to take ap- propriate action under paragraph (a) or (b) of this section until it receives in- formation sufficient to enable it to make the determination described in paragraphs (a) and (b) of this section.
(f) Retention of authority by CBP. If CBP requests a verification before Chile fully implements its obligations under Article 3.21 of the US-CFTA, the verification will be conducted prin- cipally by CBP, including through means described in paragraphs (a) and (b) of this section. CBP retains the au- thority to exercise its rights under paragraphs (a) and (b) of this section.
§ 10.472 Verification in the United States of textile and apparel goods.
(a) Procedures to determine whether a claim of origin is accurate. CBP will en- deavor, at the request of the govern- ment of Chile, to conduct a verification for the purpose of determining that a claim of origin for a textile or apparel good is accurate. A verification will be conducted under this paragraph regard- less of whether a claim is made for preferential tariff treatment. If the government of Chile is unable to make the determination described in this paragraph within 12 months after a re- quest for a verification, Chile may take appropriate action with respect to the textile and apparel good subject to the verification, and with respect to simi- lar goods exported or produced by the entity that exported or produced the good.
(b) Procedures to determine compliance with applicable customs laws and regula- tions of Chile. CBP will endeavor to con- duct a verification at the request of the government of Chile for purposes of en- abling Chile to determine that the U.S. exporter or producer is complying with applicable customs laws, regulations, and procedures, if Chile has a reason- able suspicion that a U.S. exporter or producer is engaging in unlawful activ- ity relating to trade in textile and ap-
parel goods. A verification will be con- ducted under this paragraph regardless of whether a claim is made for pref- erential tariff treatment. A ‘‘reason- able suspicion’’ for the purpose of this paragraph will be based on relevant factual information, including infor- mation of the type set forth in Article 5.5 of the US-CFTA, that indicates cir- cumvention of applicable laws, regula- tions or procedures regarding trade in textile and apparel goods. If the gov- ernment of Chile is unable to make the determination described in this para- graph within 12 months after a request for a verification, it may take action as permitted under its laws with re- spect to any textile or apparel goods exported or produced by the entity sub- ject to the verification.
(c) Visits by CBP. CBP may conduct visits to the premises of a U.S. ex- porter or producer or any other enter- prise involved in the movement of tex- tile or apparel goods from the United States to Chile in order to undertake or assist in a verification pursuant to paragraphs (a) and (b) of this section.
(d) Initiation of verification by CBP. CBP may conduct, on its own initia- tive, a verification for the purpose of determining that a claim of origin for a textile or apparel good is accurate.
(e) Treatment of documents and infor- mation. CBP will endeavor to provide to the government of Chile, consistent with U.S. laws, regulations, and proce- dures, production, trade, and transit documents and other information nec- essary to conduct a verification under paragraphs (a) and (b) of this section. Such information will be considered confidential as provided for in Article 5.6 of the US-CFTA.
§ 10.473 Issuance of negative origin de- terminations.
If CBP determines, as a result of an origin verification initiated under this subpart, that the good which is the subject of the verification does not qualify as an originating good, it will issue a determination in writing or via an authorized electronic data inter- change system to the importer that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates
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of the export and import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based;
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 26, HTSUS, and in §§ 10.450 through 10.463 of this subpart, the legal basis for the deter- mination; and
(d) A notice of intent to deny pref- erential tariff treatment on the good which is the subject of the determina- tion.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
§ 10.474 Repeated false or unsupported preference claims.
Where verification or other informa- tion reveals indications of a pattern of conduct by an importer of false or un- supported representations that a good imported into the United States quali- fies as originating, CBP may deny sub- sequent claims for preferential tariff treatment on identical goods imported by that person until compliance with the rules applicable to originating goods as set forth in General Note 26, HTSUS is established to the satisfac- tion of CBP.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
PENALTIES
§ 10.480 General. Except as otherwise provided in this
subpart, all criminal, civil or adminis- trative penalties which may be im- posed on U.S. importers, exporters and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters and producers for violations of the laws and regulations relating to the US- CFTA.
§ 10.481 Corrected declaration by im- porters.
A U.S. importer who makes a cor- rected declaration under § 10.410(b) will not be subject to civil or administra- tive penalties for having made an in-
correct declaration, provided that the corrected declaration was voluntarily made.
§ 10.482 Corrected certifications of ori- gin by exporters or producers.
Civil or administrative penalties pro- vided for under the U.S. customs laws and regulations will not be imposed on an exporter or producer in the United States who voluntarily provides writ- ten notification pursuant to § 10.430(b) with respect to the making of an incor- rect certification.
§ 10.483 Framework for correcting dec- larations and certifications.
(a) ‘‘Voluntarily’’ defined. For pur- poses of this subpart, the making of a corrected declaration or the providing of written notification of an incorrect certification will be deemed to have been done voluntarily if:
(1) Done before the commencement of a formal investigation; or
(2) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or
(3) Done within 30 calendar days after either the U.S. importer, exporter or producer had reason to believe that the declaration or certification was not correct; and is
(4) Accompanied by a written state- ment setting forth the information specified in paragraph (c) of this sec- tion; and
(5) In the case of a corrected declara- tion, accompanied or followed by a ten- der of any actual loss of duties and merchandise processing fees, if applica- ble, in accordance with paragraph (e) of this section.
(b) Cases involving fraud. Notwith- standing paragraph (a) of this section, a person who acted fraudulently in making an incorrect declaration or certification may not make a vol- untary correction. For purposes of this paragraph, the term ‘‘fraud’’ will have the meaning set forth in paragraph (B)(3) of appendix B to part 171 of this chapter.
(c) Statement. For purposes of this subpart, each corrected declaration or notification of an incorrect certifi- cation must be accompanied by a state- ment, submitted in writing or via an
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authorized electronic data interchange system, which:
(1) Identifies the class or kind of good to which the incorrect declaration or certification relates;
(2) In the case of a corrected declara- tion, identifies each affected import transaction, including each port of im- portation and the approximate date of each importation, and in the case of a notification of an incorrect certifi- cation, identifies each affected expor- tation transaction, including each port of exportation and the approximate date of each exportation. A U.S. pro- ducer who provides written notifica- tion that certain information in a cer- tification of origin is incorrect and who is unable to identify the specific export transactions under this paragraph must provide as much information con- cerning those transactions as the pro- ducer, by the exercise of good faith and due diligence, is able to obtain;
(3) Specifies the nature of the incor- rect statements or omissions regarding the declaration or certification; and
(4) Sets forth, to the best of the per- son’s knowledge, the true and accurate information or data which should have been covered by or provided in the dec- laration or certification, and states that the person will provide any addi- tional pertinent information or data which is unknown at the time of mak- ing the corrected declaration or certifi- cation within 30 calendar days or with- in any extension of that 30-day period as CBP may permit in order for the person to obtain the information or data.
(d) Substantial compliance. For pur- poses of this section, a person will be deemed to have voluntarily corrected a declaration or certification even though that person provides corrected information in a manner which does not conform to the requirements of the written statement specified in para- graph (c) of this section, provided that:
(1) CBP is satisfied that the informa- tion was provided before the com- mencement of a formal investigation; and
(2) The information provided in- cludes, orally or in writing, substan- tially the same information as that specified in paragraph (c) of this sec- tion.
(e) Tender of actual loss of duties. A U.S. importer who makes a corrected declaration must tender any actual loss of duties at the time of making the corrected declaration, or within 30 cal- endar days thereafter, or within any extension of that 30-day period as CBP may allow in order for the importer to obtain the information or data nec- essary to calculate the duties owed.
(f) Applicability of prior disclosure pro- visions. Where a person fails to meet the requirements of this section be- cause the correction of the declaration or the written notification of an incor- rect certification is not considered to be done voluntarily as provided in this section, that person may nevertheless qualify for prior disclosure treatment under 19 U.S.C. 1592(c)(4) and § 162.74 of this chapter.
[CBP Dec. 05–07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06–39, 71 FR 76134, Dec. 20, 2006]
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.490 Goods re-entered after repair or alteration in Chile.
(a) General. This section sets forth the rules which apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Chile as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Chile, whether or not pursu- ant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different good from, the good exported from the United States.
(b) Goods not eligible for treatment. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Chile, are incomplete for their intended use and for which the processing operation performed in Chile constitutes an operation that is performed as a matter of course in the
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preparation or manufacture of finished goods.
(c) Documentation. The provisions of § 10.8(a), (b), and (c) of this part, relat- ing to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Chile after having been exported for repairs or alterations and which are claimed to be duty free.
Subpart I—United States- Singapore Free Trade Agreement
SOURCE: CBP Dec. 07–28, 72 FR 31995, June 11, 2007, unless otherwise noted.
GENERAL PROVISIONS
§ 10.501 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported goods under the United States-Singapore Free Trade Agreement (the SFTA) signed on May 6, 2003, and under the United States-Singapore Free Trade Agreement Implementation Act (the Act; 117 Stat. 948). Except as otherwise specified in this subpart, the proce- dures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained else- where in this chapter. Additional pro- visions implementing certain aspects of the SFTA and the Act are contained in parts 24, 162, and 163 of this chapter.
§ 10.502 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the SFTA to an originating good or other good specified in the SFTA, and to an exemption from the mer- chandise processing fee;
(b) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con-
nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but, for purposes of imple- menting the SFTA, does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of the like domestic good or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty that is applied pursuant to a Par- ty’s domestic law;
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered; or
(4) Duty imposed pursuant to Article 5 of the WTO Agreement on Agri- culture.
(c) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(d) Days. ‘‘Days’’ means calendar days;
(e) Enterprise. ‘‘Enterprise’’ means an entity constituted or organized under applicable law, whether or not for prof- it, and whether privately-owned or gov- ernmentally-owned, including any cor- poration, trust, partnership, sole pro- prietorship, joint venture, or other as- sociation;
(f) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(g) Harmonized System. ‘‘Harmonized System (HS)’’ means the Harmonized Commodity Description and Coding Sys- tem, including its General Rules of In- terpretation, Section Notes, and Chap- ter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(h) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(i) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
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(j) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the produc- tion, testing, or inspection of a good in the territory of the United States or Singapore but not physically incor- porated into the good, or a good used in the maintenance of buildings or the op- eration of equipment associated with the production of a good in the terri- tory of the United States or Singapore, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
(4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but whose use in the production of the good can rea- sonably be demonstrated to be a part of that production;
(k) Originating. ‘‘Originating’’ means qualifying for preferential tariff treat- ment under the rules of origin set out in SFTA Chapter Three (Rules of Ori- gin) and General Note 25, HTSUS;
(l) Party. ‘‘Party’’ means the United States or the Republic of Singapore;
(m) Person. ‘‘Person’’ means a nat- ural person or an enterprise;
(n) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable under the SFTA to an originating good, and an exemption from the merchandise processing fee;
(o) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(p) Tariff preference level. ‘‘Tariff pref- erence level’’ means a quantitative limit for certain non-originating tex- tiles and textile apparel goods that may be entitled to preferential tariff treatment based on the goods meeting the production requirements set forth in § 10.521 of this subpart;
(q) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex-
tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement;
(r) Territory. ‘‘Territory’’ means: (1) With respect to Singapore, its
land territory, internal waters and ter- ritorial sea as well as the maritime zones beyond the territorial sea, in- cluding the seabed and subsoil over which the Republic of Singapore exer- cises sovereign rights or jurisdiction under its national laws and inter- national law for the purpose of explo- ration and exploitation of the natural resources of such areas; and
(2) With respect to the United States; (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico;
(ii) The foreign trade zones located in the United States and Puerto Rico; and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources; and
(s) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.510 Filing of claim for preferential tariff treatment upon importation.
(a) Claim. An importer may make a claim for SFTA preferential tariff treatment, including an exemption from the merchandise processing fee, based on the importer’s knowledge or information in the importer’s posses- sion that the good qualifies as an origi- nating good. For goods that qualify as originating goods under the Integrated Sourcing Initiative (see subdivisions (b)(ii) and (m) of General Note 25, HTSUS, and § 10.532 of this subpart), the claim is made by including on the entry summary, or equivalent docu- mentation, the tariff item 9999.00.84, HTSUS, or by the method specified for equivalent reporting via an authorized electronic data interchange system. For all other qualifying goods, the claim is made by including on the
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entry summary, or equivalent docu- mentation, the letters ‘‘SG’’ as a prefix to the subheading of the HTSUS under which each qualifying good is classi- fied, or by the method specified for equivalent reporting via an authorized electronic data interchange system.
(b) Corrected claim. If, after making the claim required under paragraph (a) of this section, the importer becomes aware that the claim is invalid, the im- porter must promptly correct the claim and pay any duties that may be due. The importer must submit a state- ment either in writing or via an au- thorized electronic data interchange system to the CBP office where the original claim was filed specifying the correction (see §§ 10.561 and 10.562 of this subpart).
§ 10.511 Supporting statement.
(a) Contents. An importer who makes a claim under § 10.510(a) of this subpart must submit, at the request of the port director, a statement setting forth the reasons that the good qualifies as an originating good, including pertinent cost and manufacturing data. A state- ment submitted to CBP under this paragraph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the sup- porting statement (if different from the information required by paragraph (a)(2)(i) of this section);
(iii) The legal name, address, tele- phone, and e-mail address (if any) of the exporter of the good (if different from the producer);
(iv) The legal name, address, tele- phone, and e-mail address (if any) of the producer of the good (if known);
(v) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently de-
tailed to relate it to the invoice and the HS nomenclature;
(vi) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classifica- tion rule for the good set forth in Gen- eral Note 25(o), HTSUS;
(vii) The applicable rule of origin set forth in General Note 25, HTSUS, under which the good qualifies as an origi- nating good; and
(3) Must include a statement, in sub- stantially the following form:
I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
The goods originated or are considered to have originated in the territory of one or more of the Parties, and comply with the or- igin requirements specified for those goods in the United States-Singapore Free Trade Agreement; there has been no further pro- duction or any other operation outside the territories of the parties, other than unload- ing, reloading, or any other operation nec- essary to preserve the goods in good condi- tion or to transport the goods to the United States; and
This document consists of lll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The supporting statement required to be submitted under paragraph (a) of this section must be signed and dated by a responsible official of the importer or by the importer’s authorized agent having knowledge of the relevant facts.
(c) Language. The supporting state- ment required to be submitted under paragraph (a) of this section must be completed in the English language.
(d) Applicability of supporting state- ment. The supporting statement re- quired to be submitted under para- graph (a) of this section may be appli- cable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that
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occur within a specified blanket period, not exceeding 12 months, set out in the statement. For purposes of this para- graph, ‘‘identical goods’’ means goods that are the same in all respects rel- evant to the particular rule of origin that qualifies the goods as originating.
§ 10.512 Importer obligations.
(a) General. An importer who makes a claim under § 10.510(a) of this subpart is responsible for the truthfulness of the claim and of all the information and data contained in the supporting state- ment provided for in § 10.511 of this sub- part, for submitting any supporting documents requested by CBP, and for the truthfulness of the information contained in those documents. How- ever, an importer will not be subject to civil or administrative penalties under 19 U.S.C. 1592 for making an invalid claim for preferential tariff treatment or submitting an incorrect supporting statement, provided that the importer promptly and voluntarily corrects the claim or supporting statement and pays any duty owing (see §§ 10.561 and 10.562 of this subpart). In instances in which CBP requests the submission of supporting documents, CBP will allow for the direct submission by the ex- porter or producer of business confiden- tial or other sensitive information, in- cluding cost and sourcing information.
(b) Compliance. In order to make a claim for preferential tariff treatment under § 10.510(a) of this subpart, the im- porter:
(1) Must have records that explain how the importer came to the conclu- sion that the good qualifies for pref- erential tariff treatment. Those records must include documents that support a claim that the article in question qualifies for preferential tariff treatment because it meets the appli- cable rules of origin set forth in Gen- eral Note 25, HTSUS, and in this sub- part. Those records may include a properly completed importer’s sup- porting statement as set forth in § 10.511 of this subpart; and
(2) May be required to present evi- dence that the conditions set forth in § 10.542 of this subpart were met if the imported article was shipped through an intermediate country.
(c) Information provided by exporter or producer. The fact that the importer has made a claim or supporting state- ment based on information provided by an exporter or producer will not relieve the importer of the responsibility re- ferred to in the first sentence of para- graph (a) of this section.
§ 10.513 Supporting statement not re- quired.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a supporting statement under § 10.511 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the SFTA, the port director will notify the importer that for that importation the importer must submit to CBP a supporting statement. The importer must submit such a statement within 30 days from the date of the notice. Failure to timely submit the supporting statement will result in denial of the claim for preferential treatment.
§ 10.514 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good imported into the United States under § 10.510(a) of this subpart must main- tain, for five years after the date of im- portation of the good, any records and documents that the importer has relat- ing to the origin of the good, including records and documents associated with:
(1) The purchase of, cost of, value of, and payment for, the good;
(2) Where appropriate, the purchase of, cost of, value of, and payment for, all materials, including recovered goods and indirect materials, used in the production of the good; and
(3) Where appropriate, the production of the good in the form in which the good was exported.
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(b) Applicability of other recordkeeping requirements. The records and docu- ments referred to in paragraph (a) of this section are in addition to any other records that the importer is re- quired to prepare, maintain, or make available to CBP under part 163 of this chapter.
(c) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.515 Effect of noncompliance; fail- ure to provide documentation re- garding third country transpor- tation.
(a) Effect of noncompliance. If the im- porter fails to comply with any re- quirement under this subpart, includ- ing submission of a complete sup- porting statement under § 10.511 of this subpart, when requested, the port di- rector may deny preferential treat- ment to the imported good.
(b) Failure to provide documentation re- garding third country transportation. Where the requirements for pref- erential treatment set forth elsewhere in this subpart are met, the port direc- tor nevertheless may deny preferential treatment to an originating good if the good is shipped through or trans- shipped in a country other than Singa- pore or the United States, and the im- porter of the good does not provide, at the request of the port director, evi- dence demonstrating to the satisfac- tion of the port director that the condi- tions set forth in § 10.542 of this subpart were met.
TARIFF PREFERENCE LEVEL
§ 10.520 Filing of claim for tariff pref- erence level.
A cotton or man-made fiber apparel good described in § 10.521 of this subpart that does not qualify as an originating good under § 10.531 of this subpart may nevertheless be entitled to preferential tariff treatment under the SFTA under an applicable tariff preference level (TPL). To make a TPL claim, the im- porter must include on the entry sum- mary, or equivalent documentation, the applicable tariff item in Chapter 99 of the HTSUS (9910.61.01 through 9910.61.89) and the applicable sub-
heading in Chapter 61 or 62 of the HTSUS under which each non-origi- nating cotton or man-made fiber ap- parel good is classified. For TPL goods, the letters ‘‘SG’’ must be inserted as a prefix to the applicable HTSUS 9910 tariff item when the entry is filed. The importer must also submit a certifi- cate of eligibility as set forth in § 10.522 of this subpart.
§ 10.521 Goods eligible for tariff pref- erence level claims.
Goods eligible for a TPL claim con- sist of cotton or man-made fiber ap- parel goods provided for in Chapters 61 and 62 of the HTSUS that are both cut (or knit-to-shape) and sewn or other- wise assembled in Singapore from fab- ric or yarn produced or obtained out- side the territory of Singapore or the United States, and that meet the appli- cable conditions for preferential tariff treatment under the SFTA, other than the condition that they are originating goods. The preferential tariff treat- ment is limited to the quantities speci- fied in U.S. Note 13, Subchapter X, Chapter 99, HTSUS.
§ 10.522 Submission of certificate of eligibility.
An importer who claims preferential tariff treatment on a non-originating cotton or man-made fiber apparel good must submit a certificate of eligibility issued by the Government of Singa- pore, demonstrating that the good is eligible for entry under the applicable TPL, as set forth in § 10.521 of this sub- part.
RULES OF ORIGIN
§ 10.530 Definitions.
For purposes of §§ 10.530 through 10.542:
(a) Adjusted value. ‘‘Adjusted value’’ means the value determined in accord- ance with Articles 1 through 8, Article 15, and the corresponding interpreta- tive notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude:
(1) Any costs, charges, or expenses in- curred for transportation, insurance and related services incident to the
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international shipment of the mer- chandise from the country of expor- tation to the place of importation; and
(2) The value of packing materials and containers for shipment as defined in paragraph (j) of this section;
(b) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(c) Fungible goods or materials. ‘‘Fun- gible goods or materials’’ means goods or materials, as the case may be, that are interchangeable for commercial purposes and the properties of which are essentially identical;
(d) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These standards may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(e) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(f) Goods wholly obtained or produced entirely in the territory of one or both of the Parties. ‘‘Goods wholly obtained or produced entirely in the territory of one or both of the Parties’’ means:
(1) Mineral goods extracted in the territory of one or both of the Parties;
(2) Vegetable goods, as such goods are defined in the Harmonized System, harvested in the territory of one or both of the Parties;
(3) Live animals born and raised in the territory of one or both of the Par- ties;
(4) Goods obtained from hunting, trapping, fishing, or aquaculture con- ducted in the territory of one or both of the Parties;
(5) Goods (fish, shellfish and other marine life) taken from the sea by ves- sels registered or recorded with a Party and flying its flag;
(6) Goods produced exclusively from products referred to in subparagraph (f)(5) of this section on board factory ships registered or recorded with a Party and flying its flag;
(7) Goods taken by a Party or a per- son of a Party from the seabed or be-
neath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
(8) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(9) Waste and scrap derived from: (i) Production in the territory of one
or both of the Parties; or (ii) Used goods collected in the terri-
tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(10) Recovered goods derived in the territory of one or both of the Parties from used goods; or
(11) Goods produced in one or both of the Parties exclusively from goods re- ferred to in paragraphs (f)(1) through (f)(9) of this section or from the deriva- tives of such goods;
(g) Material. ‘‘Material’’ means a good that is used in the production of an- other good;
(h) Non-originating good. ‘‘Non-origi- nating good’’ means a good that does not qualify as originating under Gen- eral Note 25, HTSUS;
(i) Non-originating material. ‘‘Non- originating material’’ means a mate- rial that does not qualify as origi- nating under General Note 25, HTSUS;
(j) Packing materials and containers for shipment. ‘‘Packing materials and con- tainers for shipment’’ means the goods used to protect a good during its trans- portation to the United States, and does not include the packaging mate- rials and containers in which a good is packaged for retail sale;
(k) Producer. ‘‘Producer’’ means a person who grows, raises, mines, har- vests, fishes, traps, hunts, manufac- tures, processes, assembles or dis- assembles a good;
(l) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, raising, trapping, hunting, manufac- turing, processing, assembling, or dis- assembling a good;
(m) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that are the result of:
(1) The complete disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound
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working condition by one or more of the following processes: Welding, flame spraying, surface machining, knurling, plating, sleeving, and rewinding, in order for such parts to be assembled with other parts, including other re- covered parts, in the production of a remanufactured good as defined in paragraph (o) of this section;
(n) Relationship. ‘‘Relationship’’ means whether the buyer and seller are related parties in accordance with Ar- ticle 15.4 of the Customs Valuation Agreement;
(o) Remanufactured good. ‘‘Remanu- factured good’’ means an industrial good assembled in the territory of Singapore or the United States that is enumerated in Annex 3C, SFTA, and:
(1) Is entirely or partially comprised of recovered goods;
(2) Has the same life expectancy and meets the same performance standards as a new good; and
(3) Enjoys the same factory warranty as such a new good;
(p) Self-produced material. ‘‘Self-pro- duced material’’ means a good, such as a part or ingredient, produced by the producer and used by the producer in the production of another good; and
(q) Value. ‘‘Value’’ means the value of a good or material for purposes of cal- culating customs duties or for purposes of applying this subpart.
§ 10.531 Originating goods. Except as provided in § 10.543 of this
subpart, a good imported into the cus- toms territory of the United States will be considered an originating good under the SFTA only if:
(a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties;
(b) The good is transformed in one or both of the Parties so that:
(1) Each non-originating material un- dergoes an applicable change in tariff classification specified in General Note 25(o), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; and
(2) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 25(o), HTSUS; or
(c) The good, in its condition as im- ported into the United States, is enu-
merated as an Integrated Sourcing Ini- tiative good in General Note 25(m), HTSUS, and is imported from the terri- tory of Singapore.
§ 10.532 Integrated Sourcing Initiative.
(a) For purposes of General Note 25(b)(ii), HTSUS, a good is eligible for treatment as an originating good under the Integrated Sourcing Initiative if:
(1) The good, in its condition as im- ported, is both classified in a tariff pro- vision enumerated in the first column of General Note 25(m), HTSUS, and de- scribed opposite that tariff provision in the list of information technology arti- cles set forth in the second column of General Note 25(m), HTSUS;
(2) The good, regardless of its origin, is imported into the territory of the United States from the territory of Singapore. If a product of a non-Party, the good must have been imported into Singapore prior to its importation into the territory of the United States; and
(3) The good satisfies the conditions and requirements of § 10.542 relating to third country transportation.
(b) A good enumerated in General Note 25(m), HTSUS, that is used in the production of another good in Singa- pore will not be considered an origi- nating material for purposes of deter- mining the eligibility for preferential tariff treatment of such other good un- less:
(1) The good enumerated in General Note 25(m), HTSUS, satisfies an appli- cable rule of origin set out in General Note 25(o), HTSUS; or
(2) The good enumerated in General Note 25(m), HTSUS, is imported into the territory of Singapore from the ter- ritory of the United States prior to being used in the production of a good in Singapore.
§ 10.533 De minimis.
(a) Except as provided in paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to General Note 25(o), HTSUS, will nonetheless be con- sidered to be an originating good if:
(1) The value of all non-originating materials used in the production of the good that do not undergo the applica- ble change in tariff classification does
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not exceed 10 percent of the adjusted value of the good;
(2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in calcu- lating the value of non-originating ma- terials for any applicable regional value content requirement for the good under General Note 25(o), HTSUS; and
(3) The good meets all other applica- ble requirements of General Note 25, HTSUS.
(b) Paragraph (a) does not apply to: (1) A non-originating material pro-
vided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS;
(2) A non-originating material pro- vided for in Chapter 4, HTSUS, or in subheading 1901.90, HTSUS, that is used in the production of a good provided for in one of the following HTSUS provi- sions: Subheading 1901.10, 1901.20 or 1901.90; heading 2105; or subheading 2106.90, 2202.90 or 2309.90;
(3) A non-originating material pro- vided for in heading 0805, HTSUS, or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for in subheadings 2009.11 through 2009.39, HTSUS, or in subheading 2106.90 or 2202.90, HTSUS;
(4) A non-originating material pro- vided for in Chapter 15, HTSUS, that is used in the production of a good pro- vided for in headings 1501 through 1508, 1512, 1514 or 1515, HTSUS;
(5) A non-originating material pro- vided for in heading 1701, HTSUS, that is used in the production of a good pro- vided for in headings 1701 through 1703, HTSUS;
(6) A non-originating material pro- vided for in Chapter 17, HTSUS, or heading 1805, HTSUS, that is used in the production of a good provided for in subheading 1806.10, HTSUS;
(7) A non-originating material pro- vided for in headings 2203 through 2208, HTSUS, that is used in the production of a good provided for in heading 2207 or 2208, HTSUS; and
(8) A non-originating material used in the production of a good provided for in Chapters 1 through 21, HTSUS, un- less the non-originating material is provided for in a different subheading
than the good for which origin is being determined.
(c) A textile or apparel good provided for in Chapters 50 through 63, HTSUS, that is not an originating good because certain fibers or yarns used in the pro- duction of the component of the good that determines the tariff classifica- tion of the good do not undergo an ap- plicable change in tariff classification set out in General Note 25(o), HTSUS, will nevertheless be considered to be an originating good if the total weight of all such fibers or yarns in that compo- nent is not more than 7 percent of the total weight of that component. Not- withstanding the preceding sentence, a textile or apparel good containing elas- tomeric yarns in the component of the good that determines the tariff classi- fication of the good will be considered an originating good only if such yarns are wholly formed in the territory of a Party.
§ 10.534 Accumulation. (a) Originating materials of Singa-
pore or the United States that are used in the production of a good in the terri- tory of the other party will be consid- ered to originate in the territory of the other party.
(b) A good that is produced in the territory of one or both of the Parties by one or more producers, will be con- sidered an originating good if the good satisfies:
(1) The applicable requirements of § 10.531 of this subpart and General Note 25, HTSUS; or
(2) The provisions of § 10.532 of this subpart.
§ 10.535 Regional value content. (a) General. Where General Note 25(o),
HTSUS, sets forth a rule that specifies a regional value content test for a good, the regional value content of such good must be calculated, at the choice of the person claiming the pref- erential tariff treatment for such good, on the basis of the build-down method or the build-up method described in paragraphs (b) and (c) of this section, unless otherwise specified in General Note 25(o), HTSUS.
(b) Build-down method. Under the build-down method, the regional value content must be calculated on the
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basis of the formula RVC = ((AV ¥VNM)/AV) × 100, where RVC is the re- gional value content, expressed as a percentage; AV is the adjusted value; and VNM is the value of non-origi- nating materials that are acquired and used by the producer in the production of the good.
(c) Build-up method. Under the build- up method, the regional value content must be calculated on the basis of the formula RVC = (VOM /AV) × 100, where RVC is the regional value content, ex- pressed as a percentage; AV is the ad- justed value; and VOM is the value of originating materials that are acquired or self-produced and used by the pro- ducer in the production of the good.
§ 10.536 Value of materials. (a) Calculating the value of materials.
Except as provided in § 10.541, for pur- poses of calculating the regional value content of a good under General Note 25(o), HTSUS, and for purposes of ap- plying the de minimis (see § 10.533 of this subpart) provisions of General Note 25(o), HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good, the ad- justed value of the material;
(2) In the case of a material acquired by the producer in the territory where the good is produced, except for a ma- terial to which paragraph (a)(3) of this section applies, the adjusted value of the material with reasonable modifica- tions to the provisions of the Customs Valuation Agreement so as to permit their application to the domestic ac- quisition by the producer. Such reason- able modifications include, but are not limited to, treating a domestic pur- chase by the producer as if it were a sale for export to the country of impor- tation; or
Example 1. The producer in Singapore pur- chases material x from an unrelated seller in Singapore for $100. Under the provisions of Article 1 of the Customs Valuation Agree- ment, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation ad- justed in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such pur- chase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value
of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Singapore ($100), adjusted in accordance with the provi- sions of Article 8. In this example, it is irrel- evant whether material x was initially im- ported into Singapore by the seller (or by anyone else). So long as the producer ac- quired material x in Singapore, it is intended that the value of material x will be deter- mined on the basis of the price actually paid or payable by the producer adjusted in ac- cordance with the provisions of Article 8.
Example 2. Same facts as in Example 1, ex- cept the sale between the seller and the pro- ducer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agree- ment, the value is the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being val- ued. In order to permit the application of Ar- ticle 2 to the domestic acquisition by the producer, it should be modified so that the value is the transaction value of identical goods sold within Singapore at or about the same time the goods were sold to the pro- ducer in Singapore. Thus, if the seller of ma- terial x also sold an identical material to an- other buyer in Singapore without restric- tions, that other sale would be used to deter- mine the adjusted value of material x.
(3) In the case of a self-produced ma- terial, or in a case in which the rela- tionship between the producer of the good and the seller of the material in- fluenced the price actually paid or pay- able for the material, including a ma- terial obtained without charge, the sum of:
(i) All expenses incurred in the pro- duction of the material, including gen- eral expenses; and
(ii) A reasonable amount for profit. (b) Permissible additions to, and deduc-
tions from, the value of materials—(1) Ad- ditions to originating materials. For orig- inating materials, the following ex- penses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the loca- tion of the producer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable or other- wise recoverable, including credit
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against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-product; and
(2) Deductions from non-originating ma- terials. For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non- originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material to the loca- tion of the producer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in one or both of the Parties, other than du- ties and taxes that are waived, re- funded, refundable or otherwise recov- erable, including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-prod- ucts;
(iv) The cost of processing incurred in the territory of Singapore or the United States in the production of the non-originating material; and
(v) The cost of originating materials used in the production of the non-origi- nating material in the territory of Singapore or the United States.
(c) Accounting method. Any cost or value referenced in General Note 25, HTSUS and this subpart, must be re- corded and maintained in accordance with the Generally Accepted Account- ing Principles applicable in the terri- tory of the country in which the good is produced (whether Singapore or the United States).
§ 10.537 Accessories, spare parts, or tools.
Accessories, spare parts, or tools that are delivered with a good and that form part of the good’s standard accessories, spare parts, or tools will be treated as originating goods if the good is an orig- inating good, and will be disregarded in determining whether all the non-origi- nating materials used in the produc- tion of the good undergo an applicable change in tariff classification specified
in General Note 25(o), HTSUS, provided that:
(a) The accessories, spare parts, or tools are not invoiced separately from the good;
(b) The quantities and value of the accessories, spare parts, or tools are customary for the good; and
(c) If the good is subject to a regional value content requirement, the value of the accessories, spare parts, or tools will be taken into account as origi- nating or non-originating materials, as the case may be, in calculating the re- gional value content of the good under § 10.535 of this subpart.
§ 10.538 Fungible goods and materials.
(a) A person claiming preferential treatment under the SFTA for a good may claim that a fungible good or ma- terial is originating either based on the physical segregation of each fungible good or material or by using an inven- tory management method. For pur- poses of this subpart, the term ‘‘inven- tory management method’’ means:
(1) Averaging; (2) ‘‘Last-in, first-out;’’ (3) ‘‘First-in, first-out;’’ or (4) Any other method that is recog-
nized in the Generally Accepted Ac- counting Principles of the Party in which the production is performed or otherwise accepted by that country.
(b) A person selecting an inventory management method under paragraph (a) of this section for particular fun- gible goods or materials must continue to use that method for those fungible goods or materials throughout the fis- cal year of that person.
§ 10.539 Retail packaging materials and containers.
Packaging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential treatment under the SFTA is claimed, will be disregarded in determining whether all non-origi- nating materials used in the produc- tion of the good undergo the applicable change in tariff classification set out in General Note 25(o), HTSUS. If the good is subject to a regional value con- tent requirement, the value of such packaging materials and containers
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will be taken into account as origi- nating or non-originating materials, as the case may be, in calculating the re- gional value content of the good.
Example 1. Singaporean Producer A of good C imports 100 non-originating blister pack- ages to be used as retail packaging for good C. As provided in § 10.536(a)(1) of this subpart, the value of the blister packages is their ad- justed value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC=((AV¥VNM)/AV) × 100 (see § 10.535(b) of this subpart), in determining whether good C satisfies the regional value content require- ment. In applying this method, the non-orig- inating blister packages are taken into ac- count as non-originating. As such, their $10 adjusted value is included in the VNM, value of non-originating materials, of good C.
Example 2. Same facts as in Example 1, but the blister packages are originating. In this case, the adjusted value of the originating blister packages would not be included as part of the VNM of good C under the build- down method. However, if the U.S. importer had used the build-up method, RVC=(VOM/ AV) × 100 (see § 10.535(c) of this subpart), the adjusted value of the blister packaging would be included as part of the VOM, value of originating material.
§ 10.540 Packing materials and con- tainers for shipment.
(a) Packing materials and containers for shipment, as defined in § 10.530(j) of this subpart, are to be disregarded in determining whether the non-origi- nating materials used in the produc- tion of the good undergo an applicable change in tariff classification set out in General Note 25(o), HTSUS. Accord- ingly, such materials and containers are not required to undergo the appli- cable change in tariff classification even if they are non-originating.
(b) Packing materials and containers for shipment, as defined in § 10.530(j) of this subpart, are to be disregarded in determining the regional value content of a good imported into the United States. Accordingly, in applying either the build-down or build-up method for determining the regional value content of the good imported into the United States, the value of such packing mate- rials and containers for shipment (whether originating or non-origi- nating) is disregarded and not included in AV, adjusted value, VNM, value of
non-originating materials, or VOM, value of originating materials.
Example. Singaporean Producer A produces good C. Producer A ships good C to the U.S. in a shipping container which it purchased from Company B in Singapore. The shipping container is originating. The value of the shipping container determined under section § 10.536(a)(2) of this subpart is $3. Good C is subject to a regional value content require- ment. The transaction value of good C is $100, which includes the $3 shipping con- tainer. The United States importer decides to use the build-up method, RVC=(VOM/AV) × 100 (see § 10.535(c) of this subpart), in deter- mining whether good C satisfies the regional value content requirement. In determining the AV, adjusted value, of good C imported into the U.S., paragraph (b) of this section requires a $3 deduction for the value of the shipping container. Therefore, the AV is $97 ($100¥$3). In addition, the value of the ship- ping container is disregarded and not in- cluded in the VOM, value of originating ma- terials.
§ 10.541 Indirect materials. An indirect material, as defined in
§ 10.502(j) of this subpart, will be consid- ered to be an originating material without regard to where it is produced, and its value will be the cost registered in the accounting records of the pro- ducer of the good.
Example. Singaporean Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.531(b)(1) of this subpart and General Note 25(o), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be con- sidered originating. Although non-origi- nating material A must undergo the applica- ble tariff shift in order for good C to be con- sidered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced.
§ 10.542 Third country transportation. (a) General. A good will not be consid-
ered an originating good by reason of having undergone production that would enable the good to qualify as an originating good if subsequent to that production the good undergoes further production or any other operation out- side the territories of the Parties, other than unloading, reloading, or any
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1 These designations are set forth in no- tices published in the FEDERAL REGISTER on September 25, 2001 (66 FR 49005), November 19, 2001 (66 FR 57942), April 10, 2002 (67 FR 17412), May 28, 2002 (67 FR 36858), and Sep- tember 5, 2002 (67 FR 56806).
other process necessary to preserve the good in good condition or to transport the good to the territory of a Party.
(b) Documentary evidence. An im- porter making a claim that a good is originating may be required to dem- onstrate, to CBP’s satisfaction, that no further production or subsequent oper- ation, other than permitted under paragraph (a) of this section, occurred outside the territories of the Parties. An importer may demonstrate compli- ance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, receiving and in- ventory records, and customs entry and exit documents.
§ 10.543 Certain apparel goods made from fabric or yarn not available in commercial quantities.
Notwithstanding the provisions of § 10.531 of this subpart, a textile apparel article of Chapter 61 or 62, HTSUS, will be considered an originating good under the SFTA if it is both cut (or knit to shape) and sewn or otherwise assembled in one or both of the Parties from fabric or yarn, regardless of ori- gin, designated by the Committee for the Implementation of Textile Agree- ments (‘‘CITA’’) as not available in commercial quantities in a timely manner in the United States. Such des- ignations by CITA, identifying apparel goods made from such fabric or yarn as eligible for entry under subheading 9819.11.24 or 9820.11.27, HTSUS, must have been made by notices published in the FEDERAL REGISTER no later than November 15, 2002. 1 For purposes of this section, any reference in these no- tices to fabric or yarn formed in the United States will be interpreted as also including fabric or yarn formed in Singapore.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.550 Verification and justification of claim for preferential treatment.
(a) Verification. A claim for pref- erential treatment made under § 10.510(a) of this subpart, including any statements or other information sub- mitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is pro- vided with insufficient information to verify or substantiate the claim, the port director may deny the claim for preferential treatment. A verification of a claim for preferential tariff treat- ment may be conducted by means of one or more of the following:
(1) Requests for information from the importer;
(2) Written requests for information to the exporter or producer;
(3) Requests for the importer to ar- range for the exporter or producer to provide information directly to CBP;
(4) Visits to the premises of the ex- porter or producer in Singapore, in ac- cordance with procedures that the Par- ties adopt pertaining to verification; and
(5) Such other procedures as the Par- ties may agree.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.551 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under § 10.550 of this subpart, CBP denies a claim for preferential treatment made under § 10.510(a) of this subpart, it will issue a determination in writing or via an au- thorized electronic data interchange system to the importer that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good;
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(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 25, HTSUS, and in §§ 10.530 through 10.543 of this subpart, the legal basis for the deter- mination.
§ 10.552 Information sharing by CBP regarding textile and apparel goods produced in the United States.
(a) Documents or information in the possession of U.S. enterprises. Upon writ- ten request from the Government of Singapore containing a brief statement of the matter at issue and the coopera- tion requested, CBP will promptly re- quest from a U.S. enterprise and pro- vide to the Government of Singapore, to the extent available, all correspond- ence, reports, bills of lading, invoices, order confirmations, and other docu- ments or information relevant to cir- cumvention that the Government of Singapore considers may have taken place.
(b) Circumvention defined. For pur- poses of this section and § 10.554 of this subpart, ‘‘circumvention’’ means pro- viding a false claim or false informa- tion for the purpose of, or with the ef- fect of, violating or evading existing customs, country of origin labeling, or trade laws of the Party into which the textile or apparel goods are imported, if such action results in the avoidance of tariffs, quotas, embargoes, prohibi- tions, restrictions, trade remedies, in- cluding antidumping or countervailing duties, or safeguard measures, or in ob- taining preferential tariff treatment. Examples of circumvention include: Il- legal transshipment; rerouting; fraud; false claims concerning country of ori- gin, fiber content, quantities, descrip- tion, or classification; falsification of documents; and smuggling.
§ 10.553 Textile and apparel site visits.
(a) Visits to enterprises of Singapore. U.S. officials may undertake to con- duct site visits to enterprises in the territory of Singapore. U.S. officials will conduct such visits together with responsible officials of the Government
of Singapore and in accordance with the laws of Singapore.
(b) Denial of permission to visit. If the responsible officials of an enterprise of Singapore that is proposed to be visited do not consent to the site visit, CBP will, if directed by The Committee for the Implementation of Textile Agree- ments (CITA), exclude from the terri- tory of the United States textile or ap- parel goods produced or exported by the enterprise until CITA determines that the enterprise’s production of, and capability to produce, such goods is consistent with statements by the en- terprise that textile or apparel goods it produces or has produced are origi- nating goods or products of Singapore.
§ 10.554 Exclusion of textile or apparel goods for intentional circumven- tion.
(a) General. If CITA finds that an en- terprise of Singapore has knowingly or willfully engaged in circumvention, CBP will, if directed by CITA, exclude from the customs territory of the United States textile or apparel goods produced or exported by that enter- prise for a period no longer than the applicable period described in para- graph (b) of this section.
(b) Time periods. An exclusion from entry imposed under paragraph (a) of this section will begin on the date a finding of knowing or willful cir- cumvention is made by CITA and will remain in effect for the following appli- cable time period:
(1) With respect to a first finding, the applicable period is six months;
(2) With respect to a second finding, the applicable period is two years; or
(3) With respect to a third or subse- quent finding, the applicable period is two years. If, at the time of a third or subsequent finding, an exclusion of goods with respect to an enterprise is in effect as a result of a previous find- ing, the two-year period applicable to the third or subsequent finding will begin on the day after the day on which the previous exclusion period terminates.
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PENALTIES
§ 10.560 General. Except as otherwise provided in this
subpart, all criminal, civil or adminis- trative penalties which may be im- posed on U.S. importers for violations of the customs and related laws and regulations will also apply to U.S. im- porters for violations of the laws and regulations relating to the SFTA.
§ 10.561 Corrected claim or supporting statement.
An importer who makes a corrected claim under § 10.510(b) will not be sub- ject to civil or administrative penalties under 19 U.S.C. 1592 for having made an incorrect claim or supporting state- ment, provided that the corrected claim is promptly and voluntarily made.
§ 10.562 Framework for correcting claims or supporting statements.
(a) ‘‘Promptly and voluntarily’’ defined. Except as provided for in paragraph (b) of this section, for purposes of this sub- part, the making of a corrected claim or supporting statement will be deemed to have been done promptly and volun- tarily if:
(1)(i) Done within one year following the date on which the importer made the incorrect claim; or
(ii) Done later than one year fol- lowing the date on which the importer made the incorrect claim, provided that the corrected claim is made:
(A) Before the commencement of a formal investigation, within the mean- ing of § 162.74(g) of this chapter; or
(B) Before any of the events specified in § 162.74(i) of this chapter has oc- curred; or
(C) Within 30 days after the importer initially becomes aware that the incor- rect claim is not valid; and
(2) Accompanied by a statement set- ting forth the information specified in paragraph (c) of this section; and
(3) Accompanied or followed by a ten- der of any actual loss of duties and merchandise processing fees, if applica- ble, in accordance with paragraph (e) of this section.
(b) Exception in cases involving fraud or subsequent incorrect claims—(1) Fraud. An importer who acted fraudulently in
making an incorrect claim may not make a voluntary correction of that claim. For purposes of this paragraph, the term ‘‘fraud’’ will have the mean- ing set forth in paragraph (C)(3) of ap- pendix B to part 171 of this chapter.
(2) Subsequent incorrect claims. An im- porter who makes one or more incor- rect claims after becoming aware that a claim involving the same merchan- dise and circumstances is invalid may not make a voluntary correction of the subsequent claims pursuant to para- graph (a)(1)(ii)(C) of this section.
(c) Statement. For purposes of this subpart, each corrected claim must be accompanied by a statement, sub- mitted in writing or via an authorized electronic data interchange system, which:
(1) Identifies the class or kind of good to which the incorrect claim relates;
(2) Identifies each affected import transaction, including each port of im- portation and the approximate date of each importation.
(3) Specifies the nature of the incor- rect statements or omissions regarding the claim; and
(4) Sets forth, to the best of the per- son’s knowledge, the true and accurate information or data which should have been covered by or provided in the claim, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim within 30 days or within any extension of that 30- day period as CBP may permit in order for the person to obtain the informa- tion or data.
(d) Substantial compliance. For pur- poses of this section, a person will be deemed to have submitted the state- ment described in paragraph (c) of this section even though that person pro- vided corrected information in a man- ner which does not conform to the re- quirements of the statement specified in paragraph (c) of this section, pro- vided that the information submitted includes, orally or otherwise, substan- tially the same information as that specified in paragraph (c) of this sec- tion.
(e) Tender of actual loss of duties. A U.S. importer who makes a corrected claim must tender any actual loss of
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duties at the time of making the cor- rected claim, or within 30 days there- after, or within any extension of that 30-day period as CBP may allow in order for the importer to obtain the in- formation or data necessary to cal- culate the duties owed.
(f) Applicability of prior disclosure pro- visions. Where a person fails to meet the requirements of this section, that person may nevertheless qualify for prior disclosure treatment under 19 U.S.C. 1592(c)(4) and 162.74 of this chap- ter.
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.570 Goods re-entered after repair or alteration in Singapore.
(a) General. This section sets forth the rules which apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Singapore as provided for in sub- headings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Singapore, whether or not pursuant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, addition, renovation, re- dyeing, cleaning, re-sterilizing, or other treatment which does not de- stroy the essential characteristics of, or create a new or commercially dif- ferent good from, the good exported from the United States.
(b) Goods not eligible for duty-free treatment after repair or alteration. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Singapore, are incomplete for their intended use and for which the processing operation performed in Singapore constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of paragraphs (a), (b), and (c) of § 10.8 of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with
the entry of goods which are returned from Singapore after having been ex- ported for repairs or alterations and which are claimed to be duty free.
Subpart J—Dominican Republic— Central America—United States Free Trade Agreement
SOURCE: CBP Dec. 08-22, 73 FR 33678, June 13, 2008, unless otherwise noted.
GENERAL PROVISIONS
§ 10.581 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported and ex- ported goods under the Dominican Re- public—Central America—United States Free Trade Agreement (the CAFTA–DR) signed on August 5, 2004, and under the Dominican Republic— Central America—United States Free Trade Agreement Implementation Act (the Act; Pub. L. 109–53, 119 Stat. 462 (19 U.S.C. 4001 et seq.), as amended by sec- tion 1634 of the Pension Protection Act of 2006 (Pub. L. 109–280, 120 Stat. 1167). Except as otherwise specified in this subpart, the procedures and other re- quirements set forth in this subpart are in addition to the customs proce- dures and requirements of general ap- plication contained elsewhere in this chapter. Additional provisions imple- menting certain aspects of the CAFTA– DR and the Act are contained in parts 24, 162, and 163 of this chapter.
§ 10.582 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the CAFTA–DR to an originating good or other good specified in the CAFTA–DR, and to an exemption from the merchandise processing fee;
(b) Claim of origin. ‘‘Claim of origin’’ means a claim that a textile or apparel good is an originating good or a good of a Party;
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(c) Customs authority. ‘‘Customs au- thority’’ means the competent govern- mental unit that is responsible under the law of a Party for the administra- tion of customs laws and regulations;
(d) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but, for purposes of imple- menting the CAFTA–DR, does not in- clude any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, di- rectly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty that is applied pursuant to a Par- ty’s domestic law; or
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered;
(e) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(f) Days. ‘‘Days’’ means calendar days;
(g) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately owned or governmentally owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
(h) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(i) Harmonized System. ‘‘Harmonized System’’ means the Harmonized Com- modity Description and Coding System, including its General Rules of Interpre- tation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(j) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica-
tion number under the Harmonized System;
(k) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(l) Identical goods. ‘‘Identical goods’’ means goods that are produced in the same country and are the same in all respects, including physical character- istics, quality, and reputation, but ex- cluding minor differences in appear- ance.
(m) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the produc- tion, testing, or inspection of a good in the territory of one or more of the Par- ties but not physically incorporated into the good, or a good used in the maintenance of buildings or the oper- ation of equipment associated with the production of a good in the territory of one or more of the Parties, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment or buildings;
(4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equip- ment or buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but the use of which in the production of the good can reasonably be demonstrated to be a part of that production;
(n) Originating. ‘‘Originating’’ means qualifying for preferential tariff treat- ment under the rules of origin set out in CAFTA–DR Chapter Four (Rules of Origin and Origin Procedures) and Gen- eral Note 29, HTSUS;
(o) Party. ‘‘Party’’ means: (1) The United States; and (2) Costa Rica, the Dominican Repub-
lic, El Salvador, Guatemala, Honduras, or Nicaragua, for such time as the CAFTA–DR is in force between the United States and that country;
(p) Person. ‘‘Person’’ means a natural person or an enterprise;
(q) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the
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duty rate applicable under the CAFTA– DR to an originating good or other good specified in the CAFTA–DR, and an exemption from the merchandise processing fee;
(r) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(s) Tariff preference level. ‘‘Tariff pref- erence level’’ means a quantitative limit for certain non-originating ap- parel goods that may be entitled to preferential tariff treatment based on the goods meeting the requirements set forth in §§ 10.606 through 10.610 of this subpart.
(t) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement, except for those goods listed in Annex 3.29 of the CAFTA–DR;
(u) Territory. ‘‘Territory’’ means: (1) With respect to each Party other
than the United States, the land, mari- time, and air space under its sov- ereignty and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with inter- national law and its domestic law;
(2) With respect to the United States: (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico;
(ii) The foreign trade zones located in the United States and Puerto Rico; and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources;
(v) WTO. ‘‘WTO’’ means the World Trade Organization; and
(w) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50698, Aug. 17, 2010]
IMPORT REQUIREMENTS
§ 10.583 Filing of claim for preferential tariff treatment upon importation.
(a) Basis of claim. An importer may make a claim for CAFTA–DR pref- erential tariff treatment, including an exemption from the merchandise proc- essing fee, based on:
(1) A certification, as specified in § 10.584 of this subpart, that is prepared by the importer, exporter, or producer of the good; or
(2) The importer’s knowledge that the good qualifies as an originating good, including reasonable reliance on information in the importer’s posses- sion that the good is an originating good.
(b) Making a claim. The claim is made by including on the entry summary, or equivalent documentation, the letter ‘‘P’’ or ‘‘P+’’ as a prefix to the sub- heading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent re- porting via an authorized electronic data interchange system.
(c) Corrected claim. If, after making the claim specified in paragraph (b) of this section, the importer has reason to believe that the claim is based on inac- curate information or is otherwise in- valid, the importer must, within 30 cal- endar days after the date of discovery of the error, correct the claim and pay any duties that may be due. The im- porter must submit a statement either in writing or via an authorized elec- tronic data interchange system to the CBP office where the original claim was filed specifying the correction (see §§ 10.621 and 10.623 of this subpart).
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.584 Certification. (a) General. An importer who makes a
claim under § 10.583(b) of this subpart based on a certification of the im- porter, exporter, or producer that the good qualifies as originating must sub- mit, at the request of the port director, a copy of the certification. The certifi- cation:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to
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any electronic means authorized by CBP for that purpose;
(2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim;
(3) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good, the exporter of the good (if different from the producer), and the producer of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer, exporter, or pro- ducer signing the certification (if dif- ferent from the information required by paragraph (a)(3)(i) of this section);
(iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently de- tailed to relate it to the invoice and the HS nomenclature;
(iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classifica- tion rule for the good set forth in Gen- eral Note 29(n), HTSUS; and
(v) The applicable rule of origin set forth in General Note 29, HTSUS, under which the good qualifies as an origi- nating good; and
(4) Must include a statement, in sub- stantially the following form:
‘‘I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
The goods originated or are considered to have originated in the territory of one or more of the Parties, and comply with the or- igin requirements specified for those goods in the Dominican Republic—Central Amer- ica—United States Free Trade Agreement; there has been no further production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the goods in good condition or to transport the goods to the United States; the goods re- mained under the control of customs au-
thorities while in the territory of a non- Party; and
This document consists of ll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The certification provided for in paragraph (a) of this section must be signed and dated by a responsible official of the importer, exporter, or producer, or by the importer’s, exporter’s, or pro- ducer’s authorized agent having knowl- edge of the relevant facts.
(c) Language. The certification pro- vided for in paragraph (a) of this sec- tion must be completed in either the English language or the language of the exporting Party. In the latter case, the port director may require the im- porter to submit an English trans- lation of the certification.
(d) Certification by the exporter or pro- ducer. A certification may be prepared by the exporter or producer of the good on the basis of:
(1) The exporter’s or producer’s knowledge that the good is originating; or
(2) In the case of an exporter, reason- able reliance on the producer’s certifi- cation that the good is originating.
(e) Applicability of certification. The certification provided for in paragraph (a) of this section may be applicable to:
(1) A single shipment of a good into the United States; or
(2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification.
(f) Validity of certification. A certifi- cation that is properly completed, signed, and dated in accordance with the requirements of this section will be accepted as valid for four years fol- lowing the date on which it was signed.
§ 10.585 Importer obligations. (a) General. An importer who makes a
claim for preferential tariff treatment under § 10.583(b) of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the CAFTA–DR;
(2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.584 of this subpart;
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(3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the in- formation contained in those docu- ments. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the sub- mission of supporting documents, the importer will provide to CBP, or ar- range for the direct submission by the exporter or producer, all information relied on by the exporter or producer in preparing the certification.
(b) Information provided by exporter or producer. The fact that the importer has made a claim or submitted a cer- tification based on information pro- vided by an exporter or producer will not relieve the importer of the respon- sibility referred to in paragraph (a) of this section.
(c) Exemption from penalties. An im- porter will not be subject to civil or ad- ministrative penalties under 19 U.S.C. 1592 for making an incorrect claim for preferential tariff treatment or sub- mitting an incorrect certification, pro- vided that the importer promptly and voluntarily corrects the claim or cer- tification and pays any duty owing (see §§ 10.621 and 10.623 of this subpart).
§ 10.586 Certification not required.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a copy of a certification under § 10.584 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section is part of a series of importations carried out or planned for the purpose of evading compliance with the certification re- quirements of § 10.584 of this subpart, the port director will notify the im- porter that for that importation the importer must submit to CBP a copy of the certification. The importer must submit such a copy within 30 days from the date of the notice. Failure to time- ly submit a copy of the certification
will result in denial of the claim for preferential tariff treatment.
§ 10.587 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good imported into the United States under § 10.583(b) of this subpart must main- tain, for a minimum of five years after the date of importation of the good, all records and documents that the im- porter has demonstrating that the good qualifies for preferential tariff treat- ment under the CAFTA–DR. These records are in addition to any other records that the importer is required to prepare, maintain, or make available to CBP under part 163 of this chapter.
(b) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.588 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete certification prepared in ac- cordance with § 10.584 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to an originating good if the good is shipped through or trans- shipped in a country other than a Party to the CAFTA–DR, and the im- porter of the good does not provide, at the request of the port director, evi- dence demonstrating to the satisfac- tion of the port director that the condi- tions set forth in § 10.604(a) of this sub- part were met.
EXPORT REQUIREMENTS
§ 10.589 Certification for goods ex- ported to a Party.
(a) Submission of certification to CBP. Any person who completes and issues a certification for a good exported from
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the United States to a Party must pro- vide a copy of the certification (or such other medium or format approved by the Party’s customs authority for that purpose) to CBP upon request.
(b) Notification of errors in certifi- cation. Any person who completes and issues a certification for a good ex- ported from the United States to a Party and who has reason to believe that the certification contains or is based on incorrect information must promptly notify every person to whom the certification was provided of any change that could affect the accuracy or validity of the certification. Notifi- cation of an incorrect certification must also be given either in writing or via an authorized electronic data inter- change system to CBP specifying the correction (see §§ 10.622 and 10.623 of this subpart).
(c) Maintenance of records—(1) Gen- eral. Any person who completes and issues a certification for a good ex- ported from the United States to a Party must maintain, for a period of at least five years after the date the cer- tification was signed, all records and supporting documents relating to the origin of a good for which the certifi- cation was issued, including the certifi- cation or copies thereof and records and documents associated with:
(i) The purchase, cost, and value of, and payment for, the good;
(ii) The purchase, cost, and value of, and payment for, all materials, includ- ing indirect materials, used in the pro- duction of the good; and
(iii) The production of the good in the form in which the good was ex- ported.
(2) Method of maintenance. The records referred to in paragraph (c) of this section must be maintained as pro- vided in § 163.5 of this chapter.
(3) Availability of records. For pur- poses of determining compliance with the provisions of this part, the records required to be maintained under this section must be stored and made avail- able for examination and inspection by the port director or other appropriate CBP officer in the same manner as pro- vided in part 163 of this chapter.
POST-IMPORTATION DUTY REFUND CLAIMS
§ 10.590 Right to make post-importa- tion claim and refund duties.
Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the pro- cedures set forth in § 10.591 of this sub- part. Subject to the provisions of § 10.588 of this subpart, CBP may refund any excess duties by liquidation or re- liquidation of the entry covering the good in accordance with § 10.592(c) of this subpart.
§ 10.591 Filing procedures. (a) Place of filing. A post-importation
claim for a refund must be filed with the director of the port at which the entry covering the good was filed.
(b) Contents of claim. A post-importa- tion claim for a refund must be filed by presentation of the following:
(1) A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good;
(2) A copy of a certification prepared in accordance with § 10.584 of this sub- part if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment;
(3) A written statement indicating whether the importer of the good pro- vided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identi- fication number, and address and must specify the date on which the docu- mentation was provided; and
(4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such pro- test has been filed, the statement must identify the protest by number and date.
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§ 10.592 CBP processing procedures. (a) Status determination. After receipt
of a post-importation claim under § 10.591 of this subpart, the port direc- tor will determine whether the entry covering the good has been liquidated and, if liquidation has taken place, whether the liquidation has become final.
(b) Pending protest or judicial review. If the port director determines that any protest relating to the good has not been finally decided, the port director will suspend action on the claim filed under § 10.591 of this subpart until the decision on the protest becomes final. If a summons involving the tariff clas- sification or dutiability of the good is filed in the Court of International Trade, the port director will suspend action on the claim filed under § 10.591 of this subpart until judicial review has been completed.
(c) Allowance of claim—(1) Unliqui- dated entry. If the port director deter- mines that a claim for a refund filed under § 10.591 of this subpart should be allowed and the entry covering the good has not been liquidated, the port director will take into account the claim for refund in connection with the liquidation of the entry.
(2) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under § 10.591 of this subpart should be allowed and the entry cov- ering the good has been liquidated, whether or not the liquidation has be- come final, the entry must be reliq- uidated in order to effect a refund of duties under this section. If the entry is otherwise to be reliquidated based on administrative review of a protest or as a result of judicial review, the port di- rector will reliquidate the entry taking into account the claim for refund under § 10.591 of this subpart.
(d) Denial of claim—(1) General. The port director may deny a claim for a refund filed under § 10.591 of this sub- part if the claim was not filed timely, if the importer has not complied with the requirements of §§ 10.588 and 10.591 of this subpart, or if, following an ori- gin verification under § 10.616 of this subpart, the port director determines either that the imported good did not qualify as an originating good at the time of importation or that a basis ex-
ists upon which preferential tariff treatment may be denied under § 10.616 of this subpart.
(2) Unliquidated entry. If the port di- rector determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has not been liquidated, the port direc- tor will deny the claim in connection with the liquidation of the entry, and notice of the denial and the reason for the denial will be provided to the im- porter in writing or via an authorized electronic data interchange system.
(3) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has been liquidated, whether or not the liquidation has become final, the claim may be denied without reliquidation of the entry. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, such reliquidation may include denial of the claim filed under this subpart. In either case, the port di- rector will provide notice of the denial and the reason for the denial to the im- porter in writing or via an authorized electronic data interchange system.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
RULES OF ORIGIN
§ 10.593 Definitions. For purposes of §§ 10.593 through
10.605: (a) Adjusted value. ‘‘Adjusted value’’
means the value determined in accord- ance with Articles 1 through 8, Article 15, and the corresponding interpreta- tive notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude:
(1) Any costs, charges, or expenses in- curred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and
(2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section;
(b) Class of motor vehicles. ‘‘Class of motor vehicles’’ means any one of the following categories of motor vehicles:
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(1) Motor vehicles provided for in subheading 8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS, or motor vehicles for the transport of 16 or more persons provided for in subheading 8702.10 or 8702.90, HTSUS;
(2) Motor vehicles provided for in subheading 8701.10 or any of sub- headings 8701.30 through 8701.90, HTSUS;
(3) Motor vehicles for the transport of 15 or fewer persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor vehicles provided for in sub- heading 8704.21 or 8704.31, HTSUS; or
(4) Motor vehicles provided for in subheadings 8703.21 through 8703.90, HTSUS;
(c) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(d) Fungible good or material. ‘‘Fun- gible good or material’’ means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or mate- rial;
(e) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These principles may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(f) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. ‘‘Goods wholly obtained or produced entirely in the territory of one or more of the Parties’’ means:
(1) Plants and plant products har- vested or gathered in the territory of one or more of the Parties;
(2) Live animals born and raised in the territory of one or more of the Par- ties;
(3) Goods obtained in the territory of one or more of the Parties from live animals;
(4) Goods obtained from hunting, trapping, fishing, or aquaculture con- ducted in the territory of one or more of the Parties;
(5) Minerals and other natural re- sources not included in paragraphs (g)(1) through (g)(4) of this section that are extracted or taken in the territory of one or more of the Parties;
(6) Fish, shellfish, and other marine life taken from the sea, seabed, or sub- soil outside the territory of one or more of the Parties by vessels reg- istered or recorded with a Party and flying its flag;
(7) Goods produced on board factory ships from the goods referred to in paragraph (g)(6) of this section, if such factory ships are registered or recorded with a Party and flying its flag;
(8) Goods taken by a Party or a per- son of a Party from the seabed or sub- soil outside territorial waters, if a Party has rights to exploit such seabed or subsoil;
(9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Manufacturing or processing oper-
ations in the territory of one or more of the Parties; or
(ii) Used goods collected in the terri- tory of one or more of the Parties, if such goods are fit only for the recovery of raw materials;
(11) Recovered goods derived in the territory of one or more of the Parties from used goods, and used in the terri- tory of a Party in the production of re- manufactured goods; and
(12) Goods produced in the territory of one or more of the Parties exclu- sively from goods referred to in any of paragraphs (g)(1) through (g)(10) of this section, or from the derivatives of such goods, at any stage of production;
(h) Material. ‘‘Material’’ means a good that is used in the production of another good, including a part or an in- gredient;
(i) Model line. ‘‘Model line’’ means a group of motor vehicles having the same platform or model name;
(j) Net cost. ‘‘Net cost’’ means total cost minus sales promotion, mar- keting, and after-sales service costs, royalties, shipping and packing costs,
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and non-allowable interest costs that are included in the total cost;
(k) Non-allowable interest costs. ‘‘Non- allowable interest costs’’ means inter- est costs incurred by a producer that exceed 700 basis points above the appli- cable official interest rates for com- parable maturities of the Party in which the producer is located;
(l) Non-originating good or non-origi- nating material. ‘‘Non-originating good’’ or ‘‘non-originating material’’ means a good or material, as the case may be, that does not qualify as originating under General Note 29, HTSUS, or this subpart;
(m) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(n) Producer. ‘‘Producer’’ means a person who engages in the production of a good in the territory of a Party;
(o) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, raising, trapping, hunting, manufac- turing, processing, assembling, or dis- assembling a good;
(p) Reasonably allocate. ‘‘Reasonably allocate’’ means to apportion in a man- ner that would be appropriate under Generally Accepted Accounting Prin- ciples;
(q) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that are the result of:
(1) The disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition;
(r) Remanufactured good. ‘‘Remanu- factured good’’ means a good that is classified in Chapter 84, 85, or 87, or heading 9026, 9031, or 9032, HTSUS, other than a good classified in heading 8418 or 8516, HTSUS, and that:
(1) Is entirely or partially comprised of recovered goods; and
(2) Has a similar life expectancy and enjoys a factory warranty similar to a new good that is classified in one of the enumerated HTSUS chapters or head- ings;
(s) Royalties. ‘‘Royalties’’ means pay- ments of any kind, including payments under technical assistance agreements or similar agreements, made as consid- eration for the use of, or right to use, any copyright, literary, artistic, or sci- entific work, patent, trademark, de- sign, model, plan, secret formula or process, excluding those payments under technical assistance agreements or similar agreements that can be re- lated to specific services such as:
(1) Personnel training, without re- gard to where performed; and
(2) If performed in the territory of one or more of the Parties, engineer- ing, tooling, die-setting, software de- sign and similar computer services;
(t) Sales promotion, marketing, and after-sales service costs. ‘‘Sales pro- motion, marketing, and after-sales service costs’’ means the following costs related to sales promotion, mar- keting, and after-sales service:
(1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and con- ventions; banners; marketing displays; free samples; sales, marketing and after-sales service literature (product brochures, catalogs, technical lit- erature, price lists, service manuals, sales aid information); establishment and protection of logos and trade- marks; sponsorships; wholesale and re- tail restocking charges; entertainment;
(2) Sales and marketing incentives; consumer, retailer or wholesaler re- bates; merchandise incentives;
(3) Salaries and wages, sales commis- sions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing and after-sales service per- sonnel;
(4) Recruiting and training of sales promotion, marketing and after-sales service personnel, and after-sales train- ing of customers’ employees, where such costs are identified separately for sales promotion, marketing and after- sales service of goods on the financial statements or cost accounts of the pro- ducer;
(5) Product liability insurance;
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(6) Office supplies for sales pro- motion, marketing and after-sales service of goods, where such costs are identified separately for sales pro- motion, marketing and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(7) Telephone, mail and other com- munications, where such costs are identified separately for sales pro- motion, marketing and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(8) Rent and depreciation of sales promotion, marketing and after-sales service offices and distribution centers;
(9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, mar- keting and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing and after-sales service of goods on the financial state- ments or cost accounts of the producer; and
(10) Payments by the producer to other persons for warranty repairs;
(u) Self-produced material. ‘‘Self-pro- duced material’’ means an originating material that is produced by a pro- ducer of a good and used in the produc- tion of that good;
(v) Shipping and packing costs. ‘‘Ship- ping and packing costs’’ means the costs incurred in packing a good for shipment and shipping the good from the point of direct shipment to the buyer, excluding the costs of preparing and packaging the good for retail sale;
(w) Total cost. ‘‘Total cost’’ means all product costs, period costs, and other costs for a good incurred in the terri- tory of one or more of the Parties. Product costs are costs that are associ- ated with the production of a good and include the value of materials, direct labor costs, and direct overhead. Period costs are costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and ad- ministrative expenses. Other costs are all costs recorded on the books of the producer that are not product costs or period costs, such as interest. Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the pro-
ducer or paid out to other persons as dividends, or taxes paid on those prof- its, including capital gains taxes;
(x) Used. ‘‘Used’’ means used or con- sumed in the production of goods; and
(y) Value. ‘‘Value’’ means the value of a good or material for purposes of calculating customs duties or for pur- poses of applying this subpart.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.594 Originating goods. Except as otherwise provided in this
subpart and General Note 29(m), HTSUS, a good imported into the cus- toms territory of the United States will be considered an originating good under the CAFTA-DR only if:
(a) The good is wholly obtained or produced entirely in the territory of one or more of the Parties;
(b) The good is produced entirely in the territory of one or more of the Par- ties and:
(1) Each non-originating material used in the production of the good un- dergoes an applicable change in tariff classification specified in General Note 29(n), HTSUS, and the good satisfies all other applicable requirements of Gen- eral Note 29, HTSUS; or
(2) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 29(n), HTSUS, and satisfies all other applicable requirements of General Note 29, HTSUS; or
(c) The good is produced entirely in the territory of one or more of the Par- ties exclusively from originating mate- rials.
§ 10.595 Regional value content. (a) General. Except for goods to which
paragraph (d) of this section applies, where General Note 29(n), HTSUS, sets forth a rule that specifies a regional value content test for a good, the re- gional value content of such good must be calculated by the importer, ex- porter, or producer of the good on the basis of the build-down method de- scribed in paragraph (b) of this section or the build-up method described in paragraph (c) of this section.
(b) Build-down method. Under the build-down method, the regional value
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content must be calculated on the basis of the formula RVC = ((AV¥VNM)/AV) × 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value of the good; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-produced.
(c) Build-up method. Under the build- up method, the regional value content must be calculated on the basis of the formula RVC = (VOM/AV) × 100, where RVC is the regional value content, ex- pressed as a percentage; AV is the ad- justed value of the good; and VOM is the value of originating materials that are acquired or self-produced and used by the producer in the production of the good.
(d) Special rule for certain automotive goods—(1) General. Where General Note 29(n), HTSUS, sets forth a rule that specifies a regional value content test for an automotive good provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, or headings 8701 through 8708, HTSUS, the regional value content of such good may be calculated by the im- porter, exporter, or producer of the good on the basis of the net cost meth- od described in paragraph (d)(2) of this section.
(2) Net cost method. Under the net cost method, the regional value content is calculated on the basis of the formula RVC = ((NC–VNM)/NC) × 100, where RVC is the regional value content, ex- pressed as a percentage; NC is the net cost of the good; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-produced. Consistent with the provisions regarding allocation of costs set out in Generally Accepted Ac- counting Principles, the net cost of the good must be determined by:
(i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, mar- keting and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that
are included in the total cost of all such goods, and then reasonably allo- cating the resulting net cost of those goods to the automotive good;
(ii) Calculating the total cost in- curred with respect to all goods pro- duced by the producer of the auto- motive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or
(iii) Reasonably allocating each cost that forms part of the total costs in- curred with respect to the automotive good so that the aggregate of these costs does not include any sales pro- motion, marketing and after-sales service costs, royalties, shipping and packing costs, or non-allowable inter- est costs.
(3) Motor vehicles—(i) General. For purposes of calculating the regional value content under the net cost meth- od for an automotive good that is a motor vehicle provided for in any of headings 8701 through 8705, an im- porter, exporter, or producer may aver- age the amounts calculated under the formula set forth in paragraph (d)(2) of this section over the producer’s fiscal year using any one of the categories described in paragraph (d)(3)(ii) of this section either on the basis of all motor vehicles in the category or those motor vehicles in the category that are ex- ported to the territory of one or more Parties.
(ii) Categories. The categories referred to in paragraph (d)(3)(i) of this section are as follows:
(A) The same model line of motor ve- hicles, in the same class of vehicles, produced in the same plant in the terri- tory of a Party, as the motor vehicle for which the regional value content is being calculated;
(B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehi- cle for which the regional value con- tent is being calculated; and
(C) The same model line of motor ve- hicles produced in the territory of a Party as the motor vehicle for which
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the regional value content is being cal- culated.
(4) Other automotive goods—(i) General. For purposes of calculating the re- gional value content under the net cost method for automotive goods provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, 8706, 8707, or 8708, HTSUS, that are produced in the same plant, an importer, exporter, or producer may:
(A) Average the amounts calculated under the formula set forth in para- graph (d)(2) of this section over any of the following: The fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quar- ter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation;
(B) Determine the average referred to in paragraph (d)(4)(i) of this section separately for such goods sold to one or more motor vehicle producers; or
(C) Make a separate determination under paragraph (d)(4)(i) or (d)(4)(ii) for automotive goods that are exported to the territory of one or more Parties.
(ii) Duration of use. A person select- ing an averaging period of one month or quarter under paragraph (d)(4)(i)(A) of this section must continue to use that method for that category of auto- motive goods throughout the fiscal year.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.596 Value of materials. (a) Calculating the value of materials.
Except as provided in § 10.603, for pur- poses of calculating the regional value content of a good under General Note 29(n), HTSUS, and for purposes of ap- plying the de minimis (see § 10.598 of this subpart) provisions of General Note 29(n), HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good, the ad- justed value of the material;
(2) In the case of a material acquired by the producer in the territory where the good is produced, the value, deter- mined in accordance with Articles 1
through 8, Article 15, and the cor- responding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valu- ation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic pur- chase by the producer as if it were a sale for export to the country of impor- tation); or
(3) In the case of a self-produced ma- terial, the sum of:
(i) All expenses incurred in the pro- duction of the material, including gen- eral expenses; and
(ii) An amount for profit equivalent to the profit added in the normal course of trade.
(b) Examples. The following examples illustrate application of the principles set forth in paragraph (a)(2) of this sec- tion:
Example 1. A producer in El Salvador pur- chases material x from an unrelated seller in El Salvador for $100. Under the provisions of Article 1 of the Customs Valuation Agree- ment, transaction value is the price actually paid or payable for the goods when sold for export to the country of importation ad- justed in accordance with the provisions of Article 8. In order to apply Article 1 to this domestic purchase by the producer, such pur- chase is treated as if it were a sale for export to the country of importation. Therefore, for purposes of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in El Sal- vador ($100), adjusted in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into El Salvador by the seller (or by anyone else). So long as the producer ac- quired material x in El Salvador, it is in- tended that the value of material x will be determined on the basis of the price actually paid or payable by the producer adjusted in accordance with the provisions of Article 8.
Example 2. Same facts as in Example 1, ex- cept that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and ex- ported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic ac- quisition by the producer, it should be modi- fied so that the value is the transaction
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value of identical goods sold within El Sal- vador at or about the same time the goods were sold to the producer in El Salvador. Thus, if the seller of material x also sold an identical material to another buyer in El Salvador without restrictions, that other sale would be used to determine the adjusted value of material x.
(c) Permissible additions to, and deduc- tions from, the value of materials—(1) Ad- ditions to originating materials. For orig- inating materials, the following ex- penses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or be- tween the territory of one or more of the Parties to the location of the pro- ducer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts.
(2) Deductions from non-originating ma- terials. For non-originating materials, if included under paragraph (a) of this section, the following expenses may be deducted from the value of the non- originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or be- tween the territory of one or more of the Parties to the location of the pro- ducer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or more of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-prod- ucts; and
(iv) The cost of originating materials used in the production of the non-origi-
nating material in the territory of one or more of the Parties.
(d) Accounting method. Any cost or value referenced in General Note 29, HTSUS, and this subpart, must be re- corded and maintained in accordance with the Generally Accepted Account- ing Principles applicable in the terri- tory of the Party in which the good is produced.
§ 10.597 Accumulation. (a) Originating materials from the
territory of one or more of the Parties that are used in the production of a good in the territory of another Party will be considered to originate in the territory of that other Party.
(b) A good that is produced in the territory of one or more of the Parties by one or more producers is an origi- nating good if the good satisfies the re- quirements of § 10.594 of this subpart and all other applicable requirements of General Note 29, HTSUS.
§ 10.598 De minimis. (a) General. Except as provided in
paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to Gen- eral Note 29(n), HTSUS, is an origi- nating good if:
(1) The value of all non-originating materials used in the production of the good that do not undergo the applica- ble change in tariff classification does not exceed 10 percent of the adjusted value of the good;
(2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content re- quirement for the good under General Note 29(n), HTSUS; and
(3) The good meets all other applica- ble requirements of General Note 29, HTSUS.
(b) Exceptions. Paragraph (a) does not apply to:
(1) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS;
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(2) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, that is used in the pro- duction of the following goods:
(i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS;
(ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS;
(iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS;
(iv) Goods provided for in heading 2105, HTSUS;
(v) Beverages containing milk pro- vided for in subheading 2202.90, HTSUS; and
(vi) Animal feeds containing over 10 percent by weight of milk solids pro- vided for in subheading 2309.90, HTSUS; and
(3) A non-originating material pro- vided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the pro- duction of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, con- centrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS;
(4) A non-originating material pro- vided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS;
(5) A non-originating material pro- vided for in heading 1006, HTSUS, that is used in the production of a good pro- vided for in heading 1102 or 1103, HTSUS, or subheading 1904.90, HTSUS;
(6) A non-originating material pro- vided for in Chapter 15, HTSUS, that is used in the production of a good pro- vided for in Chapter 15, HTSUS;
(7) A non-originating material pro- vided for in heading 1701, HTSUS, that is used in the production of a good pro- vided for in any of headings 1701 through 1703, HTSUS;
(8) A non-originating material pro- vided for in Chapter 17, HTSUS, that is used in the production of a good pro- vided for in subheading 1806.10, HTSUS; and
(9) Except as provided in paragraphs (b)(1) through (b)(8) of this section and General Note 29(n), HTSUS, a non-orig- inating material used in the production of a good provided for in any of Chap- ters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being deter- mined under this subpart.
(c) Textile and apparel goods—(1) Gen- eral. Except as provided in paragraph (c)(2) of this section, a textile or ap- parel good that is not an originating good because certain fibers or yarns used in the production of the compo- nent of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 29(n), HTSUS, will nevertheless be con- sidered to be an originating good if:
(i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or
(ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel.
(2) Exception for goods containing elas- tomeric yarns. A textile or apparel good containing elastomeric yarns (exclud- ing latex) in the component of the good that determines the tariff classifica- tion of the good will be considered an originating good only if such yarns are wholly formed in the territory of a Party. For purposes of this paragraph, ‘‘wholly formed’’ means that all the production processes and finishing op- erations, starting with the extrusion of filaments, strips, film, or sheet, and in- cluding slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and ending with a fin- ished yarn or plied yarn, took place in the territory of a Party.
(3) Yarn, fabric, or fiber. For purposes of paragraph (c) of this section, in the
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case of a textile or apparel good that is a yarn, fabric, or fiber, the term ‘‘com- ponent of the good that determines the tariff classification of the good’’ means all of the fibers in the good.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.599 Fungible goods and materials.
(a) General. A person claiming that a fungible good or material is an origi- nating good may base the claim either on the physical segregation of the fun- gible good or material or by using an inventory management method with respect to the fungible good or mate- rial. For purposes of this section, the term ‘‘inventory management method’’ means:
(1) Averaging; (2) ‘‘Last-in, first-out;’’ (3) ‘‘First-in, first-out;’’ or (4) Any other method that is recog-
nized in the Generally Accepted Ac- counting Principles of the Party in which the production is performed or otherwise accepted by that country.
(b) Duration of use. A person selecting an inventory management method under paragraph (a) of this section for a particular fungible good or material must continue to use that method for that fungible good or material throughout the fiscal year of that per- son.
§ 10.600 Accessories, spare parts, or tools.
(a) General. Accessories, spare parts, or tools that are delivered with a good and that form part of the good’s stand- ard accessories, spare parts, or tools will be treated as originating goods if the good is an originating good, and will be disregarded in determining whether all the non-originating mate- rials used in the production of the good undergo an applicable change in tariff classification specified in General Note 29(n), HTSUS, provided that:
(1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, re- gardless of whether they appear speci- fied or separately identified in the in- voice for the good; and
(2) The quantities and value of the accessories, spare parts, or tools are customary for the good.
(a) Regional value content. If the good is subject to a regional value content requirement, the value of the acces- sories, spare parts, or tools is taken into account as originating or non- originating materials, as the case may be, in calculating the regional value content of the good under § 10.595 of this subpart.
§ 10.601 Retail packaging materials and containers.
(a) Effect on tariff shift rule. Pack- aging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential tariff treatment under the CAFTA–DR is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the applicable change in tariff classifica- tion set out in General Note 29(n), HTSUS.
(b) Effect on regional value content cal- culation. If the good is subject to a re- gional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating mate- rials, as the case may be, in calculating the regional value content of the good.
Example 1. Guatemalan Producer A of good C imports 100 non-originating blister pack- ages to be used as retail packaging for good C. As provided in § 10.596(a)(1) of this subpart, the value of the blister packages is their ad- justed value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV– VNM)/AV) × 100 (see § 10.595(b) of this sub- part), in determining whether good C satis- fies the regional value content requirement. In applying this method, the non-originating blister packages are taken into account as non-originating. As such, their $10 adjusted value is included in the VNM, value of non- originating materials, of good C.
Example 2. Same facts as in Example 1, ex- cept that the blister packages are origi- nating. In this case, the adjusted value of the originating blister packages would not be in- cluded as part of the VNM of good C under the build-down method. However, if the U.S. importer had used the build-up method, RVC
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= (VOM/AV) ×100 (see § 10.595(c) of this sub- part), the adjusted value of the blister pack- aging would be included as part of the VOM, value of originating material.
§ 10.602 Packing materials and con- tainers for shipment.
(a) Effect on tariff shift rule. Packing materials and containers for shipment, as defined in § 10.593(m) of this subpart, are to be disregarded in determining whether the non-originating materials used in the production of the good un- dergo an applicable change in tariff classification set out in General Note 29(n), HTSUS. Accordingly, such mate- rials and containers are not required to undergo the applicable change in tariff classification even if they are non-orig- inating.
(b) Effect on regional value content cal- culation. Packing materials and con- tainers for shipment, as defined in § 10.593(m) of this subpart, are to be dis- regarded in determining the regional value content of a good imported into the United States. Accordingly, in ap- plying the build-down, build-up, or net cost method for determining the re- gional value content of a good im- ported into the United States, the value of such packing materials and containers for shipment (whether origi- nating or non-originating) is dis- regarded and not included in AV, ad- justed value, VNM, value of non-origi- nating materials, VOM, value of origi- nating materials, or NC, net cost of a good.
Example. Producer A of the Dominican Re- public produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in the Dominican Republic. The shipping container is originating. The value of the shipping container determined under section § 10.596(a)(2) of this subpart is $3. Good C is subject to a regional value content require- ment. The transaction value of good C is $100, which includes the $3 shipping con- tainer. The United States importer decides to use the build-up method, RVC = (VOM/AV) × 100 (see § 10.595(c) of this subpart), in deter- mining whether good C satisfies the regional value content requirement. In determining the AV, adjusted value, of good C imported into the U.S., paragraph (b) of this section and the definition of AV require a $3 deduc- tion for the value of the shipping container. Therefore, the AV is $97 ($100¥$3). In addi- tion, the value of the shipping container is
disregarded and not included in the VOM, value of originating materials.
§ 10.603 Indirect materials.
An indirect material, as defined in § 10.582(m) of this subpart, will be con- sidered to be an originating material without regard to where it is produced.
Example. Honduran Producer C produces good C using non-originating material A. Producer C imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.594(b)(1) of this subpart and General Note 29(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be con- sidered originating. Although non-origi- nating material A must undergo the applica- ble tariff shift in order for good C to be con- sidered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced.
§ 10.604 Transit and transshipment.
(a) General. A good that has under- gone production necessary to qualify as an originating good under § 10.594 of this subpart will not be considered an originating good if, subsequent to that production, the good:
(1) Undergoes further production or any other operation outside the terri- tories of the Parties, other than un- loading, reloading, or any other oper- ation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the territory of a non-Party.
(b) Documentary evidence. An im- porter making a claim that a good is originating may be required to dem- onstrate, to CBP’s satisfaction, that the conditions and requirements set forth in paragraph (a) of this section were met. An importer may dem- onstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
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§ 10.605 Goods classifiable as goods put up in sets.
Notwithstanding the specific rules set forth in General Note 29(n), HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless:
(a) Each of the goods in the set is an originating good; or
(b) The total value of the non-origi- nating goods in the set does not exceed;
(1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or
(2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set.
TARIFF PREFERENCE LEVEL
§ 10.606 Filing of claim for tariff pref- erence level.
Apparel goods of a Party described in § 10.607 of this subpart that do not qual- ify as originating goods under § 10.594 of this subpart may nevertheless be enti- tled to preferential tariff treatment under the CAFTA–DR under an appli- cable tariff preference level (TPL). To make a TPL claim, the importer must include on the entry summary, or equivalent documentation, the applica- ble subheading in Chapter 98 or 99 of the HTSUS immediately above the ap- plicable subheading in Chapter 61 or 62 of the HTSUS under which each non- originating apparel good is classified. The applicable Chapter 98 and 99 sub- headings are:
(a) Subheading 9822.05.11 or 9822.05.13 for goods described in § 10.607(a);
(b) Subheading 9915.61.01 for goods de- scribed in § 10.607(b) and (c);
(c) Subheading 9915.62.05 for goods de- scribed in § 10.607(d);
(d) Subheading 9915.62.15 for goods de- scribed in § 10.607(e); and
(e) Subheading 9915.61.03 or 9915.61.04 for goods described in § 10.607(f);
[CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.607 Goods eligible for tariff pref- erence level claims.
The following goods are eligible for a TPL claim filed under § 10.606 of this subpart:
(a) Cumulation for certain woven ap- parel goods of a Party. In accordance with General Note 29(d)(vii), HTSUS, for purposes of determining whether a good of Chapter 62, HTSUS, is an origi- nating good, materials used in the pro- duction of the good produced in the territory of Mexico that would have been considered originating if produced in the territory of a Party, will be con- sidered as having been produced in the territory of a Party. The applicable product-specific and chapter rules for Chapter 62, HTSUS, set forth in Gen- eral Note 29, HTSUS, must be satisfied. The preferential tariff treatment is limited to the quantities specified in U.S. Note 21(b), Subchapter XXII, Chapter 98, HTSUS, except that the fol- lowing goods made from wool fabric are not subject to these limits: men’s and boys’ and women’s and girls’ suits, trousers, suit-type jackets and blazers and vests and women’s and girls’ skirts, provided that such goods are not made of carded wool fabric or made from wool yarn having an average fiber diameter of not over 18.5 microns. Sub- heading 9822.05.11, HTSUS, applies to the goods described above that are sub- ject to quantitative limits while sub- heading 9822.05.13, HTSUS, applies to the goods described above that are not subject to such limits;
(b) Cotton or man-made fiber apparel goods of Nicaragua. Cotton or man- made fiber apparel goods described in U.S. Note 15(b), Subchapter XV, Chap- ter 99, HTSUS, that are both cut (or knit-to-shape) and sewn or otherwise assembled in the territory of Nica- ragua, and that meet the applicable conditions for preferential tariff treat- ment under the CAFTA–DR, other than the condition that they are originating goods. The preferential tariff treat- ment is limited to the quantities speci- fied in U.S. Note 15(c), Subchapter XV, Chapter 99, HTSUS;
(c) Men’s wool sport coats of Nicaragua. Men’s sport coats described in U.S. Note 15(b), Subchapter XV, Chapter 99, HTSUS, provided that the component that determines the tariff classifica- tion of the good is of carded wool fabric of subheading 5111.11.70, 5111.19.60, or 5111.90.90, HTSUS, the goods are both cut (or knit-to-shape) and sewn or oth- erwise assembled in the territory of
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Nicaragua, and the goods meet the ap- plicable conditions for preferential tar- iff treatment under the CAFTA–DR, other than the condition that they are originating goods. The preferential tar- iff treatment is limited to the quan- tities specified in U.S. Note 15(c), Sub- chapter XV, Chapter 99, HTSUS;
(d) Apparel goods of Costa Rica, not knitted or crocheted. Apparel goods de- scribed in U.S. Note 16(b), Subchapter XV, Chapter 99, HTSUS, not knitted or crocheted, containing 36 percent or more by weight of wool or subject to wool restraints, provided that the goods are both cut and sewn or other- wise assembled in the territory of Costa Rica, meet the applicable condi- tions for preferential tariff treatment under the CAFTA–DR, other than the condition that they are originating goods, and comply with the require- ments set forth in chapter rules 1, 3, 4, and 5 for Chapter 62 of General Note 29, HTSUS. The preferential tariff treat- ment is limited to the quantities speci- fied in U.S. Note 16(a), Subchapter XV, Chapter 99, HTSUS.;
(e) Apparel goods of Costa Rica made from wool fabric. Apparel goods de- scribed in U.S. Note 16(d), Subchapter XV, Chapter 99, HTSUS, made from fabric of wool (except fabric of carded wool or fabric made from wool yarn having an average fiber diameter of less than or equal to 18.5 microns), pro- vided that the goods are both cut and sewn or otherwise assembled in the ter- ritory of Costa Rica, and meet the ap- plicable conditions for preferential tar- iff treatment under the CAFTA–DR, other than the condition that they are originating goods. The preferential tar- iff treatment is limited to the quan- tities specified in U.S. Note 16(c), Sub- chapter XV, Chapter 99, HTSUS; and
(f) Mastectomy swimsuits of Costa Rica. Women’s knitted or crocheted swim- wear, classified in subheading 6112.41.00 (of synthetic fibers) or 6112.49.00, HTSUS (of other textile fibers), spe- cially designed to accommodate post- mastectomy breast prostheses, con- taining two full size interior pockets with side openings, two preformed cups, a supporting elastic band below the breast and vertical center stitching to separate the two pockets, provided that the goods are both cut (or knit-to-
shape) and sewn or otherwise assem- bled in the territory of Costa Rica, and meet the applicable conditions for pref- erential tariff treatment under the CAFTA–DR, other than the condition that they are originating goods. Sub- heading 9915.61.03, HTSUS, applies to the swimsuits described above classi- fied in subheading 6112.41.00, HTSUS, while subheading 9915.61.04, HTSUS, ap- plies to the swimsuits described above classified in subheading 6112.49.00, HTSUS. The preferential tariff treat- ment is limited to the quantities speci- fied in U.S. Note 17(a), Subchapter XV, Chapter 99, HTSUS.
[CBP Dec. 10-26, 75 FR 50699, Aug. 17, 2010]
§ 10.608 Submission of certificate of eligibility for certain apparel goods of Nicaragua.
An importer who claims preferential tariff treatment on a non-originating apparel good of Nicaragua specified in paragraphs (b) and (c) of § 10.607 of this subpart must submit a certificate of eligibility issued by an authorized offi- cial of the Government of Nicaragua, demonstrating that the good is eligible for entry under the applicable TPL. The certificate of eligibility must be in writing or must be transmitted elec- tronically pursuant to any electronic means authorized by CBP for that pur- pose.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010]
§ 10.609 Transshipment of non-origi- nating cotton or man-made fiber ap- parel goods.
(a) General. A good will not be consid- ered eligible for preferential tariff treatment under an applicable TPL by reason of having undergone production that would enable the good to qualify for preferential tariff treatment if sub- sequent to that production the good:
(1) Undergoes production or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation nec- essary to preserve the good in good condition or to transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the territory of a non-Party.
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(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under an applicable TPL may be required to demonstrate, to CBP’s satisfaction, that the require- ments set forth in paragraph (a) of this section were met. An importer may demonstrate compliance with these re- quirements by submitting documen- tary evidence. Such evidence may in- clude, but is not limited to, bills of lad- ing, airway bills, packing lists, com- mercial invoices, receiving and inven- tory records, and customs entry and exit documents.
§ 10.610 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment of non-origi- nating cotton or man-made fiber ap- parel goods.
(a) Effect of noncompliance. If an im- porter of a good for which a TPL claim is made fails to comply with any appli- cable requirement under this subpart, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than a Party, and the importer of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the requirements set forth in § 10.609(a) of this subpart were met.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.616 Verification and justification of claim for preferential tariff treat- ment.
(a) Verification. A claim for pref- erential tariff treatment made under § 10.583(b) or § 10.591 of this subpart, in- cluding any statements or other infor- mation submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate
the claim, or the exporter or producer fails to consent to a verification visit, the port director may deny the claim for preferential treatment. A verification of a claim for preferential tariff treatment under CAFTA–DR for goods imported into the United States may be conducted by means of one or more of the following:
(1) Written requests for information from the importer, exporter, or pro- ducer;
(2) Written questionnaires to the im- porter, exporter, or producer;
(3) Visits to the premises of the ex- porter or producer in the territory of the Party in which the good is pro- duced, to review the records of the type referred to in § 10.589(c)(1) of this sub- part or to observe the facilities used in the production of the good, in accord- ance with the framework that the Par- ties develop for conducting verifications; and
(4) Such other procedures to which the United States and the exporting Party may agree.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010]
§ 10.617 Special rule for verifications in a Party of U.S. imports of textile and apparel goods.
(a) Procedures to determine whether a claim of origin is accurate—(1) General. For the purpose of determining that a claim of origin for a textile or apparel good is accurate, CBP may request that the government of a Party con- duct a verification, regardless of whether a claim is made for pref- erential tariff treatment.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP may take appro- priate action, which may include:
(i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment
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has been made, if CBP determines there is insufficient information to support the claim;
(ii) Denying the application of pref- erential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that an enterprise has provided incorrect infor- mation to support the claim;
(iii) Detention of any textile or ap- parel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and
(iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation as to the country of origin of any such good.
(3) Actions following a verification. On completion of a verification under this paragraph, CBP may take appropriate action, which may include:
(i) Denying the application of pref- erential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect infor- mation, to support the claim; and
(ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided in- correct information as to, the country of origin of any such good.
(b) Procedures to determine compliance with applicable customs laws and regula- tions of the U.S.—(1) General. For pur- poses of enabling CBP to determine that an exporter or producer is com- plying with applicable customs laws, regulations, and procedures regarding trade in textile and apparel goods, CBP may request that the government of a Party conduct a verification.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP may take appro- priate action, which may include:
(i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or pro- duced by the enterprise subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good;
(ii) Denying the application of pref- erential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation to support a claim for pref- erential tariff treatment with respect to any such good;
(iii) Detention of any textile or ap- parel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and
(iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation as to the country of origin of any such good.
(3) Actions following a verification. On completion of a verification under this paragraph, CBP may take appropriate action, which may include:
(i) Denying the application of pref- erential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect infor- mation, to support a claim for pref- erential tariff treatment with respect to any such good; and
(ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided in- correct information as to, the country of origin of any such good.
(c) Denial of permission to conduct a verification. If an enterprise does not consent to a verification under this section, CBP may deny preferential tariff treatment to the type of goods of the enterprise that would have been the subject of the verification.
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(d) Assistance by U.S. officials in con- ducting a verification abroad. U.S. offi- cials may undertake or assist in a verification under this section by con- ducting visits in the territory of a Party, along with the competent au- thorities of the Party, to the premises of an exporter, producer or any other enterprise involved in the movement of textile or apparel goods from a Party to the United States.
(e) Continuation of appropriate action. CBP may continue to take appropriate action under paragraph (a) or (b) of this section until it receives informa- tion sufficient to enable it to make the determination described in paragraphs (a) and (b) of this section.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010]
§ 10.618 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment made under § 10.583(b) of this subpart should be denied, it will issue a determination in writing or via an authorized elec- tronic data interchange system to the importer that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 29, HTSUS, and in §§ 10.593 through 10.605 of this subpart, the legal basis for the deter- mination.
§ 10.619 Repeated false or unsupported preference claims.
Where verification or other informa- tion reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the CAFTA–DR rules of origin set forth in General Note 29, HTSUS, CBP may suspend preferential tariff treatment under the
CAFTA–DR to entries of identical goods covered by subsequent represen- tations by that importer, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 29, HTSUS.
PENALTIES
§ 10.620 General.
Except as otherwise provided in this subpart, all criminal, civil, or adminis- trative penalties which may be im- posed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the CAFTA–DR.
§ 10.621 Corrected claim or certifi- cation by importers.
An importer who makes a corrected claim under § 10.583(c) of this subpart will not be subject to civil or adminis- trative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certifi- cation, provided that the corrected claim is promptly and voluntarily made.
§ 10.622 Corrected certification by U.S. exporters or producers.
Civil or administrative penalties pro- vided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notifica- tion pursuant to § 10.589(b) with respect to the making of an incorrect certifi- cation.
§ 10.623 Framework for correcting claims or certifications.
(a) ‘‘Promptly and voluntarily’’ defined. Except as provided for in paragraph (b) of this section, for purposes of this sub- part, the making of a corrected claim or certification by an importer or the providing of written notification of an incorrect certification by an exporter or producer in the United States will be deemed to have been done promptly and voluntarily if:
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(1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or
(ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or
(iii) Done within 30 days after the im- porter, exporter, or producer initially becomes aware that the claim or cer- tification is incorrect; and
(2) Accompanied by a statement set- ting forth the information specified in paragraph (c) of this section; and
(3) In the case of a corrected claim or certification by an importer, accom- panied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accord- ance with paragraph (d) of this section.
(b) Exception in cases involving fraud or subsequent incorrect claims—(1) Fraud. Notwithstanding paragraph (a) of this section, a person who acted fraudu- lently in making an incorrect claim or certification may not make a vol- untary correction of that claim or cer- tification. For purposes of this para- graph, the term ‘‘fraud’’ will have the meaning set forth in paragraph (C)(3) of appendix B to part 171 of this chapter.
(2) Subsequent incorrect claims. An im- porter who makes one or more incor- rect claims after becoming aware that a claim involving the same merchan- dise and circumstances is invalid may not make a voluntary correction of the subsequent claims pursuant to para- graph (a) of this section.
(c) Statement. For purposes of this subpart, each corrected claim or cer- tification must be accompanied by a statement, submitted in writing or via an authorized electronic data inter- change system, which:
(1) Identifies the class or kind of good to which the incorrect claim or certifi- cation relates;
(2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, in- cluding each port of importation and the approximate date of each importa- tion;
(3) Specifies the nature of the incor- rect statements or omissions regarding the claim or certification; and
(4) Sets forth, to the best of the per- son’s knowledge, the true and accurate information or data which should have
been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which are un- known at the time of making the cor- rected claim or certification within 30 days or within any extension of that 30- day period as CBP may permit in order for the person to obtain the informa- tion or data.
(d) Tender of actual loss of duties. A U.S. importer who makes a corrected claim must tender any actual loss of duties at the time of making the cor- rected claim, or within 30 days there- after, or within any extension of that 30-day period as CBP may allow in order for the importer to obtain the in- formation or data necessary to cal- culate the duties owed.
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.624 Goods re-entered after repair or alteration in a Party.
(a) General. This section sets forth the rules which apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in a Party as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in a Party, whether or not pur- suant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment that does not destroy the essential charac- teristics of, or create a new or commer- cially different good from, the good ex- ported from the United States.
(b) Goods not eligible for duty-free treatment after repair or alteration. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to a Party, are incomplete for their intended use and for which the processing operation performed in the Party constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
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(c) Documentation. The provisions of paragraphs (a), (b), and (c) of § 10.8 of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from a Party after having been ex- ported for repairs or alterations and which are claimed to be duty free.
RETROACTIVE PREFERENTIAL TARIFF TREATMENT FOR TEXTILE AND AP- PAREL GOODS
§ 10.625 Refunds of excess customs du- ties.
(a) Applicability. Section 205 of the Dominican Republic—Central Amer- ica—United States Free Trade Agree- ment Implementation Act, as amended by section 1634(d) of the Pension Pro- tection Act of 2006, provides for the ret- roactive application of the Agreement and payment of refunds for any excess duties paid with respect to entries of textile and apparel goods of eligible CAFTA–DR countries that meet cer- tain conditions and requirements. Those conditions and requirements are set forth in paragraphs (b) and (c) of this section.
(b) General. Notwithstanding 19 U.S.C. 1514 or any other provision of law, and subject to paragraph (c) of this section, a textile or apparel good of an eligible CAFTA–DR country that was entered or withdrawn from ware- house for consumption on or after Jan- uary 1, 2004, and before January 1, 2009, will be liquidated or reliquidated at the applicable rate of duty for that good set out in the Schedule of the United States to Annex 3.3 of the Agreement, and CBP will refund any excess cus- toms duties paid with respect to such entry, with interest accrued from the date of entry, provided:
(1) The good would have qualified as an originating good under section 203 of the Act if the good had been entered after the date of entry into force of the Agreement for that country; and
(2) Customs duties in excess of the applicable rate of duty for that good set out in the Schedule of the United States to Annex 3.3 of the Agreement were paid.
(c) Request for liquidation or reliquida- tion. Liquidation or reliquidation may be made under paragraph (b) of this section with respect to an entry of a textile or apparel good of an eligible CAFTA–DR country only if a request for liquidation or reliquidation is filed with the CBP port where the entry was originally filed by April 1, 2009, and the request contains sufficient information to enable CBP:
(1) To locate the entry or to recon- struct the entry if it cannot be located; and
(2) To determine that the good satis- fies the conditions set forth in para- graph (b) of this section.
(d) Eligible CAFTA–DR country de- fined. For purposes of this section, the term ‘‘eligible CAFTA–DR country’’ means a country that the United States Trade Representative has deter- mined, by notice published in the FED- ERAL REGISTER, to be an eligible coun- try for purposes of section 205 of the Act.
[CBP Dec. 08-22, 73 FR 33678, June 13, 2008, as amended by CBP Dec. 10-26, 75 FR 50700, Aug. 17, 2010]
Subpart K—United States-Jordan Free Trade Agreement
SOURCE: CBP Dec. 07–50, 72 FR 35156, June 27, 2007, unless otherwise noted.
GENERAL PROVISIONS
§ 10.701 Scope.
This subpart implements the duty preference and related customs provi- sions applicable to imported goods under the United States-Jordan Free Trade Agreement (the US–JFTA) signed on October 24, 2000, and under the United States-Jordan Free Trade Area Implementation Act (the Act; 115 Stat. 243). Except as otherwise speci- fied in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained elsewhere in this chapter. Additional provisions imple- menting certain aspects of the US– JFTA are contained in part 163 of this chapter.
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§ 10.702 Definitions. The following definitions apply for
purposes of §§ 10.701 through 10.712: (a) Claim for preferential tariff treat-
ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the US–JFTA;
(b) Customs authority. ‘‘Customs au- thority’’ means the competent author- ity that is responsible under the law of a country for the administration of customs laws and regulations;
(c) Customs territory of the United States. ‘‘Customs territory of the United States’’ means the 50 states, the District of Columbia, and Puerto Rico;
(d) Days. ‘‘Days’’ means calendar days unless otherwise specified;
(e) Entered. ‘‘Entered’’ means en- tered, or withdrawn from warehouse for consumption, in the customs terri- tory of the United States;
(f) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(g) Harmonized System. ‘‘Harmonized System’’ means the Harmonized Com- modity Description and Coding System, including its General Rules of Interpre- tation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(h) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(i) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(j) Material. ‘‘Material’’ means a good that is used in the production of an- other good;
(k) New or different article of commerce. ‘‘New or different article of commerce’’ means a good that has been substan- tially transformed into a new and dif- ferent article of commerce having a new name, character, or use distinct from the good or material from which it was so transformed;
(l) Party. ‘‘Party’’ means the United States or the Hashemite Kingdom of Jordan;
(m) Preferential tariff treatment. ‘‘Preferential tariff treatment’’ means the duty rate applicable under the US– JFTA;
(n) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(o) Territory. ‘‘Territory’’ means: (1) With respect to Jordan, the land,
maritime and air space under its sov- ereignty, and the exclusive economic zone within which it exercises sov- ereign rights and jurisdiction in ac- cordance with international law and its domestic law; and
(2) With respect to the United States, (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico,
(ii) The foreign trade zones located in the United States and Puerto Rico, and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources;
(p) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement;
(q) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994;
(r) Wholly the growth, product, or man- ufacture of Jordan. ‘‘Wholly the growth, product, or manufacture of Jordan’’ re- fers both to any good which has been entirely grown, produced, or manufac- tured in Jordan and to all materials in- corporated in a good which have been entirely grown, produced, or manufac- tured in Jordan, as distinguished from goods or materials imported into Jor- dan from another country, whether or not such goods or materials were sub- stantially transformed into new or dif- ferent articles of commerce after their importation into Jordan.
IMPORT REQUIREMENTS
§ 10.703 Filing of claim for preferential tariff treatment.
An importer may make a claim for US–JFTA preferential tariff treatment by including on the entry summary, or
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equivalent documentation, the symbol ‘‘JO’’ as a prefix to the subheading of the HTSUS under which each quali- fying good is classified, or by the meth- od specified for equivalent reporting via an authorized electronic data inter- change system.
§ 10.704 Declaration. (a) Contents. An importer who claims
preferential tariff treatment for a good under the US–JFTA must submit, at the request of the port director, a dec- laration setting forth all pertinent in- formation concerning the production or manufacture of the good. A declara- tion submitted to CBP under this para- graph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the dec- laration (if different from the informa- tion required by paragraph (a)(2)(i) of this section);
(iii) The legal name, address, tele- phone and e-mail address (if any) of the exporter of the good (if different from the producer);
(iv) The legal name, address, tele- phone and e-mail address (if any) of the producer of the good (if known);
(v) A description of the good, quan- tity, numbers, and marks of packages, invoice numbers, and bills of lading;
(vi) A description of the operations performed in the production of the good in Jordan and identification of the direct costs of processing oper- ations;
(vii) A description of any materials used in the production of the good that are wholly the growth, product, or manufacture of Jordan or the United States, and a statement as to the cost or value of such materials;
(viii) A description of the operations performed on, and a statement as to the origin and cost or value of, any for-
eign materials used in the good that are claimed to have been sufficiently processed in Jordan so as to be mate- rials produced in Jordan; and
(ix) A description of the origin and cost or value of any foreign materials used in the good that have not been substantially transformed in Jordan.
(3) Must include a statement, in sub- stantially the following form:
‘‘I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain, and present upon re- quest, documentation necessary to support these representations;
The goods comply with all the require- ments for preferential tariff treatment speci- fied for those goods in the United States-Jor- dan Free Trade Agreement; and
This document consists of ll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The declaration must be signed and dated by a responsible official of the im- porter or by the importer’s authorized agent having knowledge of the relevant facts.
(c) Language. The declaration must be completed in the English language.
(d) Applicability of declaration. The declaration may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this para- graph, ‘‘identical goods’’ means goods that are the same in all respects rel- evant to the production that qualifies the goods for preferential tariff treat- ment.
§ 10.705 Importer obligations.
(a) General. An importer who makes a claim for preferential tariff treatment under § 10.703 of this subpart:
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(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the US– JFTA:
(2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.704 of this subpart;
(3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the in- formation contained in those docu- ments. CBP will allow for the direct submission by the exporter or producer of business confidential or other sen- sitive information, including cost and sourcing information.
(b) Information provided by exporter or producer. The fact that the importer has made a claim for preferential tariff treatment or prepared a declaration based on information provided by an exporter or producer will not relieve the importer of the responsibility re- ferred to in paragraph (a) of this sec- tion.
§ 10.706 Declaration not required. (a) General. Except as otherwise pro-
vided in paragraph (b) of this section, an importer will not be required to sub- mit a declaration under § 10.704 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the US–JFTA, the port director will notify the importer that for that importation the importer must submit to CBP a declaration. The importer must submit such a declara- tion within 30 days from the date of the notice. Failure to timely submit the declaration will result in denial of the claim for preferential tariff treatment.
§ 10.707 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good under § 10.703 of this subpart must
maintain, for five years after the date of the claim for preferential tariff treatment, all records and documents necessary for the preparation of the declaration.
(b) Applicability of other recordkeeping requirements. The records and docu- ments referred to in paragraph (a) of this section are in addition to any other records required to be made, kept, and made available to CBP under part 163 of this chapter.
(c) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.708 Effect of noncompliance; fail- ure to provide documentation re- garding third-country transpor- tation.
(a) Effect of noncompliance. If the im- porter fails to comply with any re- quirement under this subpart, includ- ing submission of a complete declara- tion under § 10.704 of this subpart, when requested, the port director may deny preferential tariff treatment to the im- ported good.
(b) Failure to provide documentation re- garding third country transportation. Where the requirements for pref- erential tariff treatment set forth else- where in this subpart are met, the port director nevertheless may deny pref- erential treatment to a good if the good is shipped through or trans- shipped in a country other than Jordan or the United States, and the importer of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the good was ‘‘imported directly’’, as that term is defined in § 10.711(a) of this subpart.
RULES OF ORIGIN
§ 10.709 Country of origin criteria. (a) General. Except as otherwise pro-
vided in paragraph (b) of this section, a good imported directly from Jordan into the customs territory of the United States will be eligible for pref- erential tariff treatment under the US– JFTA only if:
(1) The good is either: (i) Wholly the growth, product, or
manufacture of Jordan; or
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(ii) A new or different article of com- merce that has been grown, produced, or manufactured in Jordan; and
(2) With respect to a good described in paragraph (a)(1)(ii) of this section, the good satisfies the value-content re- quirement specified in § 10.710 of this subpart.
(b) Exceptions—(1) Combining, pack- aging, and diluting operations. No good will be considered to meet the require- ments of paragraph (a)(1) of this sec- tion by virtue of having merely under- gone simple combining or packaging operations, or mere dilution with water or mere dilution with another sub- stance that does not materially alter the characteristics of the good. The principles and examples set forth in § 10.195(a)(2) of this part will apply equally for purposes of this paragraph.
(2) Certain juices. A good will not be considered to meet the requirements of paragraph (a)(1) of this section if the good:
(i) Is imported into Jordan, and, at the time of importation, would be clas- sified in heading 0805, HTSUS; and
(ii) Is processed in Jordan into a good classified in any of subheadings 2009.11 through 2009.30, HTSUS.
(c) Textile and apparel goods. For pur- poses of determining whether a textile or apparel good meets the require- ments of paragraph (a)(1) of this sec- tion, the provisions of § 102.21 of this chapter will apply.
§ 10.710 Value-content requirement. (a) General. A good described in
§ 10.709(a)(1)(ii) may be eligible for pref- erential tariff treatment under the US– JFTA only if the sum of the cost or value of the materials produced in Jor- dan, plus the direct costs of processing operations performed in Jordan, is not less than 35 percent of the appraised value of the good at the time it is en- tered.
(b) Materials produced in the United States. For purposes of determining the percentage referred to paragraph (a) of this section, an amount not to exceed 15 percent of the appraised value of the good at the time it is entered may be attributed to the cost or value of mate- rials produced in the customs territory of the United States. A material is ‘‘produced in the customs territory of
the United States’’ for purposes of this paragraph if it is either:
(1) Wholly the growth, product, or manufacture of the United States; or
(2) Subject to the exceptions speci- fied in § 10.709(b) of this subpart, sub- stantially transformed in the United States into a new and different article of commerce that has a new name, character, or use, which is then used in Jordan in the production or manufac- ture of a new or different article of commerce that is imported into the United States. Except where the con- text otherwise requires, the examples set forth in § 10.196(a) of this part will apply for purposes of this paragraph.
(c) Cost or value of materials—(1) Mate- rials produced in Jordan defined. For purposes of paragraph (a) of this sec- tion, the words ‘‘materials produced in Jordan’’ refer to those materials incor- porated into a good that are either:
(i) Wholly the growth, product, or manufacture of Jordan; or
(ii) Subject to the exceptions speci- fied in § 10.709(b) of this subpart, sub- stantially transformed in Jordan into a new and different article of commerce that has a new name, character, or use, which is then used in Jordan in the production or manufacture of a new or different article of commerce that is imported into the United States. Ex- cept where the context otherwise re- quires, the examples set forth in § 10.196(a) of this part will apply for purposes of this paragraph.
(2) Determination of cost or value of materials. (i) Except as provided in paragraph (c)(2)(ii) of this section, the cost or value of materials produced in Jordan or in the United States in- cludes:
(A) The manufacturer’s actual cost for the materials;
(B) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(C) The actual cost of waste or spoil- age, less the value of recoverable scrap; and
(D) Taxes and/or duties imposed on the materials by a Party, provided they are not remitted upon expor- tation.
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(ii) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of:
(A) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(B) An amount for profit; and (C) Freight, insurance, packing, and
all other costs incurred in transporting the material to the manufacturer’s plant.
(iii) If the pertinent information needed to compute the cost or value of a material is not available, the port di- rector may ascertain or estimate the value thereof using all reasonable ways and means at his or her disposal.
(d) Direct costs of processing oper- ations—(1) Items included. For purposes of paragraph (a) of this section, the words ‘‘direct costs of processing oper- ations’’ mean those costs either di- rectly incurred in, or which can be rea- sonably allocated to, the growth, pro- duction, manufacture, or assembly of the specific goods under consideration. Such costs include, but are not limited to the following, to the extent that they are includable in the appraised value of the imported goods:
(i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific goods, in- cluding fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and simi- lar personnel;
(ii) Dies, molds, tooling, and depre- ciation on machinery and equipment which are allocable to the specific goods;
(iii) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific goods; and
(iv) Costs of inspecting and testing the specific goods.
(2) Items not included. For purposes of paragraph (a) of this section, the words ‘‘direct costs of processing operations’’ do not include items that are not di- rectly attributable to the goods under consideration or are not costs of manu- facturing the product. These include, but are not limited to:
(i) Profit; and
(ii) General expenses of doing busi- ness that either are not allocable to the specific goods or are not related to the growth, production, manufacture, or assembly of the goods, such as ad- ministrative salaries, casualty and li- ability insurance, advertising, and salesmen’s salaries, commissions, or expenses.
§ 10.711 Imported directly. (a) General. To be eligible for pref-
erential tariff treatment under the US– JFTA, a good must be imported di- rectly from Jordan into the customs territory of the United States. For pur- poses of this requirement, the words ‘‘imported directly’’ mean:
(1) Direct shipment from Jordan to the United States without passing through the territory of any inter- mediate country;
(2) If shipment is from Jordan to the United States through the territory of an intermediate country, the goods in the shipment do not enter into the commerce of the intermediate country and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or
(3) If shipment is through an inter- mediate country and the invoices and other documents do not show the United States as the final destination, the goods in the shipment are imported directly only if they:
(i) Remained under the control of the customs authority in the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of a sale other than at re- tail, provided that the goods are im- ported as a result of the original com- mercial transaction between the im- porter and the producer or the pro- ducer’s sales agent; and
(iii) Have not been subjected to oper- ations other than loading and unload- ing, and other activities necessary to preserve the goods in good condition.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under the US–JFTA may be required to demonstrate, to CBP’s satisfaction, that the goods were ‘‘imported directly’’ as that term is de- fined in paragraph (a) of this section.
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An importer may demonstrate compli- ance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, receiving and in- ventory records, and customs entry and exit documents.
ORIGIN VERIFICATIONS
§ 10.712 Verification of claim for pref- erential tariff treatment.
A claim for preferential tariff treat- ment made under § 10.703 of this sub- part, including any statements or other information submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director for any reason is pre- vented from verifying the claim, or is provided with insufficient information to verify or substantiate the claim, the port director may deny the claim for preferential tariff treatment.
Subpart L [Reserved]
Subpart M—United States- Morocco Free Trade Agreement
SOURCE: CBP Dec. 07–51, 72 FR 35651, June 29, 2007, unless otherwise noted.
GENERAL PROVISIONS
§ 10.761 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported goods under the United States-Morocco Free Trade Agreement (the MFTA) signed on June 15, 2004, and under the United States-Morocco Free Trade Agreement Implementation Act (the Act; 118 Stat. 1103). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs proce- dures and requirements of general ap- plication contained elsewhere in this chapter. Additional provisions imple- menting certain aspects of the MFTA and the Act are contained in Parts 102, 162, and 163 of this chapter.
CBP Dec. 07–51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
§ 10.762 General definitions.
As used in this subpart, the following terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim of origin. ‘‘Claim of origin’’ means a claim that a good is an origi- nating good;
(b) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the MFTA to an originating good;
(c) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(d) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994 in respect of like, directly competitive, or substitut- able goods of the Party or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty; and
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered;
(e) Days. ‘‘Days’’ means calendar days.
(f) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
(g) Foreign material. ‘‘Foreign mate- rial’’ means a material other than a material produced in the territory of one or both of the Parties;
(h) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and
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Trade 1994, which is part of the WTO Agreement;
(i) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(j) Harmonized System. ‘‘Harmonized System (HS)’’ means the Harmonized Commodity Description and Coding Sys- tem, including its General Rules of In- terpretation, Section Notes, and Chap- ter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(k) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(l) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(m) Originating. ‘‘Originating’’ means a good qualifying under the rules of or- igin set forth in General Note 27, HTSUS, and MFTA Chapter Four (Tex- tiles and apparel) or Chapter Five (Rules of Origin);
(n) Party. ‘‘Party’’ means the United States or the Kingdom of Morocco;
(o) Person. ‘‘Person’’ means a natural person or an enterprise;
(p) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable under the MFTA to an originating good;
(q) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(r) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ATC), which is part of the WTO Agreement;
(s) Territory. ‘‘Territory’’ means: (1) With respect to Morocco, the land,
maritime and air space under its sov- ereignty, and the exclusive economic zone and the continental shelf within which it exercises sovereign rights and jurisdiction in accordance with inter- national law and its domestic law; and
(2) With respect to the United States, (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico,
(ii) The foreign trade zones located in the United States and Puerto Rico, and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources;
(t) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.763 Filing of claim for preferential tariff treatment upon importation.
An importer may make a claim for MFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent docu- mentation, the symbol ‘‘MA’’ as a pre- fix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an author- ized electronic data interchange sys- tem.
§ 10.764 Declaration. (a) Contents. An importer who claims
preferential tariff treatment for a good under the MFTA must submit to CBP, at the request of the port director, a declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. A declaration submitted to CBP under this paragraph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the dec- laration (if different from the informa- tion required by paragraph (a)(2)(i) of this section);
(iii) The legal name, address, tele- phone, and e-mail address (if any) of the exporter of the good (if different from the producer);
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(iv) The legal name, address, tele- phone, and e-mail address (if any) of the producer of the good (if known);
(v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading;
(vi) A description of the operations performed in the growth, production, or manufacture of the good in the ter- ritory of one or both of the Parties and, where applicable, identification of the direct costs of processing oper- ations;
(vii) A description of any materials used in the growth, production, or manufacture of the good that are whol- ly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such ma- terials;
(viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 27(h), HTSUS; and
(ix) A description of the origin and value of any foreign materials used in the good that have not been substan- tially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tar- iff classification specified in General Note 27(h), HTSUS;
(3) Must include a statement, in sub- stantially the following form:
‘‘I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
The goods comply with all the require- ments for preferential tariff treatment speci- fied for those goods in the United States-Mo- rocco Free Trade Agreement; and
This document consists of llpages, in- cluding all attachments.’’
(b) Responsible official or agent. The declaration must be signed and dated by a responsible official of the im- porter or by the importer’s authorized agent having knowledge of the relevant facts.
(c) Language. The declaration must be completed in the English language.
(d) Applicability of declaration. The declaration may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this para- graph, ‘‘identical goods’’ means goods that are the same in all respects rel- evant to the production that qualifies the goods for preferential tariff treat- ment.
§ 10.765 Importer obligations.
(a) General. An importer who makes a claim for preferential tariff treatment under § 10.763 of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the MFTA;
(2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.764 of this subpart; and
(3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the in- formation contained in those docu- ments. CBP will allow for the direct submission by the exporter or producer of business confidential or other sen- sitive information, including cost and sourcing information.
(b) Information provided by exporter or producer. The fact that the importer has made a claim for preferential tariff treatment or prepared a declaration based on information provided by an exporter or producer will not relieve the importer of the responsibility re- ferred to in paragraph (a) of this sec- tion.
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§ 10.766 Declaration not required.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a declaration under § 10.764 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the MFTA, the port director will notify the importer that for that importation the importer must submit to CBP a declaration. The im- porter must submit such a declaration within 30 days from the date of the no- tice. Failure to timely submit the dec- laration will result in denial of the claim for preferential tariff treatment.
§ 10.767 Maintenance of records.
(a) General. An importer claiming preferential tariff treatment for a good under § 10.763 of this subpart must maintain, for five years after the date of the claim for preferential tariff treatment, all records and documents necessary for the preparation of the declaration.
(b) Applicability of other recordkeeping requirements. The records and docu- ments referred to in paragraph (a) of this section are in addition to any other records required to be made, kept, and made available to CBP under part 163 of this chapter.
(c) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.768 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete declaration under § 10.764 of this subpart, when requested, the port
director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential treat- ment to a good if the good is shipped through or transshipped in the terri- tory of a country other than a Party, and the importer of the good does not provide, at the request of the port di- rector, evidence demonstrating to the satisfaction of the port director that the good was imported directly from the territory of a Party into the terri- tory of the other Party (see § 10.777 of this subpart).
RULES OF ORIGIN
§ 10.769 Definitions. For purposes of §§ 10.769 through
10.777: (a) Exporter. ‘‘Exporter’’ means a per-
son who exports goods from the terri- tory of a Party;
(b) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These standards may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(c) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(d) Goods wholly the growth, product, or manufacture of one or both of the Par- ties. ‘‘Goods wholly the growth, prod- uct, or manufacture of one or both of the Parties’’ means:
(1) Mineral goods extracted in the territory of one or both of the Parties;
(2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties;
(3) Live animals born and raised in the territory of one or both of the Par- ties;
(4) Goods obtained from live animals raised in the territory of one or both of the Parties;
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(5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the parties;
(6) Goods (fish, shellfish, and other marine life) taken from the sea by ves- sels registered or recorded with a Party and flying its flag;
(7) Goods produced from goods re- ferred to in paragraph (d)(5) on board factory ships registered or recorded with that Party and flying its flag;
(8) Goods taken by a Party or a per- son of a Party from the seabed or be- neath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
(9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Production or manufacture in the
territory of one or both of the Parties, or
(ii) Used goods collected in the terri- tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufac- tured goods; and
(12) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in para- graphs (d)(1) through (d)(10) of this sec- tion, or from their derivatives, at any stage of production;
(e) Importer. Importer means a person who imports goods into the territory of a Party;
(f) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the growth, production, manufacture, testing, or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the growth, production, or manu- facture of a good, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
(4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufac-
ture of a good or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but the use of which in the growth, production, or manufacture of the good can reason- ably be demonstrated to be a part of that growth, production, or manufac- ture;
(g) Material. ‘‘Material’’ means a good, including a part or ingredient, that is used in the growth, production, or manufacture of another good that is a new or different article of commerce that has been grown, produced, or man- ufactured in one or both of the Parties;
(h) Material produced in the territory of one or both of the Parties. ‘‘Material pro- duced in the territory of one or both of the Parties’’ means a good that is ei- ther wholly the growth, product, or manufacture of one or both of the Par- ties, or a new or different article of commerce that has been grown, pro- duced, or manufactured in the terri- tory of one or both of the Parties;
(i) New or different article of commerce. A ‘‘new or different article of com- merce’’ exists when the country of ori- gin of a good which is produced in a Party from foreign materials is deter- mined to be that country under the provisions of §§ 102.1 through 102.21 of this chapter;
(j) Non-originating material. ‘‘Non- originating material’’ means a mate- rial that does not qualify as origi- nating under this subpart or General Note 27, HTSUS;
(k) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(l) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that result from:
(1) The complete disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing of those parts as
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necessary for improvement to sound working condition;
(m) Remanufactured good. ‘‘Remanu- factured good’’ means an industrial good that is assembled in the territory of a Party and that:
(1) Is entirely or partially comprised of recovered goods;
(2) Has a similar life expectancy to, and meets the similar performance standards as, a like good that is new; and
(3) Enjoys the factory warranty simi- lar to that of a like good that is new;
(n) Simple combining or packaging oper- ations. ‘‘Simple combining or pack- aging operations’’ means operations such as adding batteries to electronic devices, fitting together a small num- ber of components by bolting, gluing, or soldering, or packing or repacking components together;
CBP Dec. 07–51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
§ 10.770 Originating goods.
(a) General. A good will be considered an originating good under the MFTA when imported directly from the terri- tory of a Party into the territory of the other Party only if:
(1) The good is wholly the growth, product, or manufacture of one or both of the Parties;
(2) The good is a new or different ar- ticle of commerce, as defined in § 10.769(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Par- ties, is provided for in a heading or sub- heading of the HTSUS that is not cov- ered by the product-specific rules set forth in General Note 27(h), HTSUS, and meets the value-content require- ment specified in paragraph (b) of this section; or
(3) The good is provided for in a head- ing or subheading of the HTSUS cov- ered by the product-specific rules set forth in General Note 27(h), HTSUS, and:
(i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in Gen- eral Note 27(h), HTSUS, as a result of production occurring entirely in the
territory of one or both of the Parties; or
(B) The good otherwise satisfies the requirements specified in General Note 27(h), HTSUS; and
(ii) The good meets any other re- quirements specified in General Note 27, HTSUS.
(b) Value-content requirement. A good described in paragraph (a)(2) of this section will be considered an origi- nating good under the MFTA only if the sum of the value of materials pro- duced in one or both of the Parties, plus the direct costs of processing oper- ations (see § 10.774 of this subpart) per- formed in one or both of the Parties, is not less than 35 percent of the ap- praised value of the good at the time the good is entered into the territory of the United States.
(c) Combining, packaging, and diluting operations. For purposes of this sub- part, a good will not be considered a new or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. The principles and examples set forth in § 10.195(a)(2) of this part will apply equally for purposes of this paragraph.
CBP Dec. 07–51, 72 FR 35651, June 29, 2007, as amended at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
§ 10.771 Textile or apparel goods.
(a) De minimis. Except as provided in paragraph (a)(1) of this section, a tex- tile or apparel good that is not an orig- inating good under the MFTA because certain fibers or yarns used in the pro- duction of the component of the good that determines the tariff classifica- tion of the good do not undergo an ap- plicable change in tariff classification set out in General Note 27(h), HTSUS, will be considered to be an originating good if the total weight of all such fi- bers is not more than seven percent of the total weight of that component.
(1) Exception. A textile or apparel good containing elastomeric yarns in the component of the good that deter- mines the tariff classification of the good will be considered to be an origi- nating good only if such yarns are
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wholly formed in the territory of a Party.
(2) Yarn, fabric, or group of fibers. For purposes of paragraph (a) of this sec- tion, in the case of a textile or apparel good that is a yarn, fabric, or group of fibers, the term ‘‘component of the good that determines the tariff classi- fication of the good’’ means all of the fibers in the yarn, fabric, or group of fi- bers.
(b) Textile or apparel goods put up in sets. Notwithstanding the specific rules specified in General Note 27(h), HTSUS, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Inter- pretation 3, HTSUS, will not be consid- ered to be originating goods under the MFTA unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed ten percent of the appraised value of the set.
§ 10.772 Accumulation. (a) An originating good or material
produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party.
(b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more pro- ducers is an originating good if the good satisfies the requirements of § 10.770 of this subpart and all other ap- plicable requirements of General Note 27, HTSUS.
§ 10.773 Value of materials. (a) General. For purposes of § 10.770(b)
of this subpart and, except as provided in paragraph (b) of this section, the value of a material produced in the ter- ritory of one or both of the Parties in- cludes the following:
(1) The price actually paid or payable for the material by the producer of the good;
(2) The freight, insurance, packing and all other costs incurred in trans- porting the material to the producer’s plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section;
(3) The cost of waste or spoilage re- sulting from the use of the material in
the growth, production, or manufac- ture of the good, less the value of re- coverable scrap; and
(4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party.
(b) Exception. If the relationship be- tween the producer of a good and the seller of a material influenced the price actually paid or payable for the mate- rial, or if there is no price actually paid or payable by the producer for the material, the value of the material pro- duced in the territory of one or both of the Parties, includes the following:
(1) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(2) A reasonable amount for profit; and
(3) The freight, insurance, packing, and all other costs incurred in trans- porting the material to the producer’s plant.
§ 10.774 Direct costs of processing op- erations.
(a) Items included. For purposes of § 10.770(b) of this subpart, the words ‘‘direct costs of processing operations’’, with respect to a good, mean those costs either directly incurred in, or that can be reasonably allocated to, the growth, production, or manufac- ture of the good in the territory of one or both of the Parties. Such costs in- clude, to the extent they are includable in the appraised value of the good when imported into a Party, the following:
(1) All actual labor costs involved in the growth, production, or manufac- ture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel;
(2) Tools, dies, molds, and other indi- rect materials, and depreciation on machinery and equipment that are al- locable to the specific good;
(3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good;
(4) Costs of inspecting and testing the specific good; and
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(5) Costs of packaging the specific good for export to the territory of the other Party.
(b) Items not included. For purposes of § 10.770(b) of this subpart, the words ‘‘direct costs of processing operations’’ do not include items that are not di- rectly attributable to the good or are not costs of growth, production, or manufacture of the good. These in- clude, but are not limited to:
(1) Profit; and (2) General expenses of doing business
that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
§ 10.775 Packaging and packing mate- rials and containers for retail sale and for shipment.
Packaging materials and containers in which a good is packaged for retail sale and packing materials and con- tainers for shipment are to be dis- regarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and Gen- eral Note 27, HTSUS, except to the ex- tent that the value of such packaging and packing materials and containers may be included in meeting the value- content requirement specified in § 10.770(b) of this subpart.
§ 10.776 Indirect materials. Indirect materials are to be dis-
regarded in determining whether a good qualifies as an originating good under § 10.770 of this subpart and Gen- eral Note 27, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.770(b) of this subpart.
§ 10.777 Imported directly. (a) General. To qualify as an origi-
nating good under the MFTA, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the
other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac- turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed out- side the territories of the Parties in- clude inspection, removal of dust that accumulates during shipment, ventila- tion, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aque- ous solutions, replacing damaged pack- ing materials and containers, and re- moval of units of the good that are spoiled or damaged and present a dan- ger to the remaining units of the good, or to transport the good to the terri- tory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under the MFTA for an originating good may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the territory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An importer may demonstrate compliance with this section by sub- mitting documentary evidence. Such evidence may include, but is not lim- ited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
TARIFF PREFERENCE LEVEL
§ 10.778 Filing of claim for tariff pref- erence level.
A fabric or apparel good described in § 10.779 of this subpart that does not qualify as an originating good under § 10.770 of this subpart may neverthe- less be entitled to preferential tariff treatment under the MFTA under an applicable tariff preference level (TPL). To make a TPL claim, the im- porter must include on the entry sum- mary, or equivalent documentation,
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the applicable subheading in Chapter 99 of the HTSUS (9912.99.20) immediately above the applicable subheading in Chapters 51 through 62 of the HTSUS under which each non-originating fab- ric or apparel good is classified.
§ 10.779 Goods eligible for tariff pref- erence claims.
The following goods are eligible for a TPL claim filed under § 10.778 of this subpart:
(a) Fabric goods. Fabric goods pro- vided for in Chapters 51, 52, 54, 55, 58, and 60 of the HTSUS that are wholly formed in Morocco, regardless of the origin of the fiber or yarn used to produce the goods, provided that they meet the applicable conditions for pref- erential tariff treatment under the MFTA, other than the condition that they are originating; and
(b) Apparel goods. Apparel goods pro- vided for in Chapters 61 and 62 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assem- bled in Morocco, regardless of the ori- gin of the fabric or yarn used to produce the goods, provided that they meet the applicable conditions for pref- erential tariff treatment under the MFTA, other than the condition that they are originating goods.
§ 10.780 Transshipment of non-origi- nating fabric or apparel goods.
(a) General. To qualify for pref- erential tariff treatment under an ap- plicable TPL, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac- turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve it in good condition or to transport the good to the territory of a Party. Operations
that may be performed outside the ter- ritories of the Parties include inspec- tion, removal of dust that accumulates during shipment, ventilation, spread- ing out or drying, chilling, replacing salt, sulfur dioxide, or other aqueous solutions, replacing damaged packing materials and containers, and removal of units of the good that are spoiled or damaged and present a danger to the remaining units of the good, or to transport the good to the territory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under an applicable TPL may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the ter- ritory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An im- porter may demonstrate compliance with this section by submitting docu- mentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, com- mercial invoices, receiving and inven- tory records, and customs entry and exit documents.
§ 10.781 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment of non-origi- nating fabric or apparel goods.
(a) Effect of noncompliance. If an im- porter of a good for which a TPL claim is made fails to comply with any appli- cable requirement under this subpart, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than a Party, and the importer of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the requirements set forth in § 10.780 of this subpart were met.
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ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.784 Verification and justification of claim for preferential treatment.
(a) Verification. A claim for pref- erential treatment made under § 10.763 of this subpart, including any declara- tion or other information submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, the port direc- tor may deny the claim for preferential treatment.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.785 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment made under § 10.763 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the im- porter that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 27, HTSUS, and in §§ 10.769 through 10.777 of this subpart, the legal basis for the deter- mination.
CBP Dec. 07–51, 72 FR 35651, June 29, 2007. Re- designated at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
PENALTIES
§ 10.786 Violations relating to the MFTA.
All criminal, civil, or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regula- tions will also apply to U.S. importers for violations of the laws and regula- tions relating to the MFTA.
CBP Dec. 07–51, 72 FR 35651, June 29, 2007. Re- designated at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.787 Goods re-entered after repair or alteration in Morocco.
(a) General. This section sets forth the rules that apply for purposes of ob- taining duty-free treatment on goods returned after repair or alteration in Morocco as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Morocco, whether or not pur- suant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different good from, the good exported from the United States.
(b) Goods not eligible for treatment. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Morocco, are incomplete for their intended use and for which the processing operation performed in Mo- rocco constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of § 10.8(a), (b), and (c) of this part, relat- ing to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Morocco after having been exported for repairs
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or alterations and which are claimed to be duty free.
CBP Dec. 07–51, 72 FR 35651, June 29, 2007. Re- designated at CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
Subpart N—United States-Bahrain Free Trade Agreement
SOURCE: CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, unless otherwise noted.
GENERAL PROVISIONS
§ 10.801 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported goods under the United States-Bahrain Free Trade Agreement (the BFTA) signed on September 14, 2004, and under the United States-Bahrain Free Trade Agreement Implementation Act (the Act; 119 Stat. 3581). Except as otherwise specified in this subpart, the proce- dures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained else- where in this chapter. Additional pro- visions implementing certain aspects of the BFTA and the Act are contained in parts 24, 102, 162, and 163 of this chapter.
§ 10.802 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim of origin. ‘‘Claim of origin’’ means a claim that a good is an origi- nating good or a good of a Party;
(b) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the BFTA to an originating good or other good specified in the BFTA, and to an exemption from the mer- chandise processing fee;
(c) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(d) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994; in respect of like, directly competitive, or substitut- able goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty; and
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered;
(e) Days. ‘‘Days’’ means calendar days;
(f) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
(g) Foreign material. ‘‘Foreign mate- rial’’ means a material other than a material produced in the territory of one or both of the Parties;
(h) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(i) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(j) Harmonized System. ‘‘Harmonized System (HS)’’ means the Harmonized Commodity Description and Coding Sys- tem, including its General Rules of In- terpretation, Section Notes, and Chap- ter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(k) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(l) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(m) Originating. ‘‘Originating’’ means a good qualifying under the rules of or- igin set forth in General Note 30,
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HTSUS, and BFTA Chapter Three (Tex- tiles and apparel) or Chapter Four (Rules of Origin);
(n) Party. ‘‘Party’’ means the United States or the Kingdom of Bahrain;
(o) Person. ‘‘Person’’ means a natural person or an enterprise;
(p) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable under the BFTA to an originating good and an exemp- tion from the merchandise processing fee;
(q) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(r) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement;
(s) Territory. ‘‘Territory’’ means: (1) With respect to Bahrain, the terri-
tory of Bahrain as well as the maritime areas, seabed, and subsoil over which Bahrain exercises, in accordance with international law, sovereignty, sov- ereign rights, and jurisdiction; and
(2) With respect to the United States, (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico,
(ii) The foreign trade zones located in the United States and Puerto Rico, and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources; and
(t) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.803 Filing of claim for preferential tariff treatment upon importation.
An importer may make a claim for BFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent docu- mentation, the symbol ‘‘BH’’ as a pre- fix to the subheading of the HTSUS under which each qualifying good is
classified, or by the method specified for equivalent reporting via an author- ized electronic data interchange sys- tem.
§ 10.804 Declaration.
(a) Contents. An importer who claims preferential tariff treatment for a good under the BFTA must submit to CBP, at the request of the port director, a declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. A declaration submitted to CBP under this paragraph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the dec- laration (if different from the informa- tion required by paragraph (a)(2)(i) of this section);
(iii) The legal name, address, tele- phone and e-mail address (if any) of the exporter of the good (if different from the producer);
(iv) The legal name, address, tele- phone and e-mail address (if any) of the producer of the good (if known);
(v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading;
(vi) A description of the operations performed in the growth, production, or manufacture of the good in the ter- ritory of one or both of the Parties and, where applicable, identification of the direct costs of processing oper- ations;
(vii) A description of any materials used in the growth, production, or manufacture of the good that are whol- ly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such ma- terials;
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(viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 30(h), HTSUS; and
(ix) A description of the origin and value of any foreign materials used in the good that have not been substan- tially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tar- iff classification specified in General Note 30(h), HTSUS;
(3) Must include a statement, in sub- stantially the following form:
‘‘I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
The goods comply with all the require- ments for preferential tariff treatment speci- fied for those goods in the United States- Bahrain Free Trade Agreement; and
This document consists of lll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The declaration must be signed and dated by a responsible official of the im- porter or by the importer’s authorized agent having knowledge of the relevant facts.
(c) Language. The declaration must be completed in the English language.
(d) Applicability of declaration. The declaration may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this para- graph, ‘‘identical goods’’ means goods that are the same in all respects rel-
evant to the production that qualifies the goods for preferential tariff treat- ment.
[CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, as amended at CBP 08-28, 73 FR 42681, July 23, 2008]
§ 10.805 Importer obligations. (a) General. An importer who makes a
claim for preferential tariff treatment under § 10.803 of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the BFTA:
(2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.804 of this subpart; and
(3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the in- formation contained in those docu- ments. CBP will allow for the direct submission by the exporter or producer of business confidential or other sen- sitive information, including cost and sourcing information.
(b) Information provided by exporter or producer. The fact that the importer has made a claim for preferential tariff treatment or prepared a declaration based on information provided by an exporter or producer will not relieve the importer of the responsibility re- ferred to in paragraph (a) of this sec- tion.
§ 10.806 Declaration not required. (a) General. Except as otherwise pro-
vided in paragraph (b) of this section, an importer will not be required to sub- mit a declaration under § 10.804 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the BFTA, the port director will notify the importer that for that importation the importer must
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submit to CBP a declaration. The im- porter must submit such a declaration within 30 days from the date of the no- tice. Failure to timely submit the dec- laration will result in denial of the claim for preferential tariff treatment.
§ 10.807 Maintenance of records.
(a) General. An importer claiming preferential tariff treatment for a good under § 10.803 of this subpart must maintain, for five years after the date of the claim for preferential tariff treatment, all records and documents necessary for the preparation of the declaration.
(b) Applicability of other recordkeeping requirements. The records and docu- ments referred to in paragraph (a) of this section are in addition to any other records required to be made, kept, and made available to CBP under part 163 of this chapter.
(c) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.808 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete declaration under § 10.804 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential treat- ment to a good if the good is shipped through or transshipped in the terri- tory of a country other than a Party, and the importer of the good does not provide, at the request of the port di- rector, evidence demonstrating to the satisfaction of the port director that the good was imported directly from the territory of a Party into the terri- tory of the other Party (see § 10.817 of this subpart).
RULES OF ORIGIN
§ 10.809 Definitions.
For purposes of §§ 10.809 through 10.817:
(a) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(b) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These standards may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(c) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(d) Goods wholly the growth, product, or manufacture of one or both of the Par- ties. ‘‘Goods wholly the growth, prod- uct, or manufacture of one or both of the Parties’’ means:
(1) Mineral goods extracted in the territory of one or both of the Parties;
(2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties;
(3) Live animals born and raised in the territory of one or both of the Par- ties;
(4) Goods obtained from live animals raised in the territory of one or both of the Parties;
(5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the parties;
(6) Goods (fish, shellfish, and other marine life) taken from the sea by ves- sels registered or recorded with a party and flying its flag;
(7) Goods produced from goods re- ferred to in paragraph (d)(6) of this sec- tion on board factory ships registered or recorded with that Party and flying its flag;
(8) Goods taken by a Party or a per- son of a Party from the seabed or be- neath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
(9) Goods taken from outer space, provided they are obtained by a Party
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or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Production or manufacture in the
territory of one or both of the Parties, or
(ii) Used goods collected in the terri- tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufac- tured goods; and
(12) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in para- graphs (d)(1) through (d)(10) of this sec- tion, or from their derivatives, at any stage of production;
(e) Importer. Importer means a person who imports goods into the territory of a Party;
(f) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the growth, production, manufacture, testing, or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the growth, production, or manu- facture of a good, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
(4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufac- ture of a good or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but the use of which in the growth, production, or manufacture of the good can reason- ably be demonstrated to be a part of that growth, production, or manufac- ture;
(g) Material. ‘‘Material’’ means a good, including a part or ingredient, that is used in the growth, production, or manufacture of another good that is
a new or different article of commerce that has been grown, produced, or man- ufactured in one or both of the Parties;
(h) Material produced in the territory of one or both of the Parties. ‘‘Material pro- duced in the territory of one or both of the Parties’’ means a good that is ei- ther wholly the growth, product, or manufacture of one or both of the Par- ties, or a new or different article of commerce that has been grown, pro- duced, or manufactured in the terri- tory of one or both of the Parties;
(i) New or different article of commerce. A ‘‘new or different article of com- merce’’ exists when the country of ori- gin of a good which is produced in a Party from foreign materials is deter- mined to be that country under the provisions of §§ 102.1 through 102.21 of this chapter;
(j) Non-originating material. ‘‘Non- originating material’’ means a mate- rial that does not qualify as origi- nating under this subpart or General Note 30, HTSUS;
(k) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(l) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that result from:
(1) The complete disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition;
(m) Remanufactured good. ‘‘Remanu- factured good’’ means an industrial good that is assembled in the territory of a Party and that:
(1) Is entirely or partially comprised of recovered goods;
(2) Has a similar life expectancy to, and meets the same performance stand- ards as, a like good that is new; and
(3) Enjoys the factory warranty simi- lar to that of a like good that is new;
(n) Simple combining or packaging oper- ations. ‘‘Simple combining or pack- aging operations’’ means operations such as adding batteries to electronic
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devices, fitting together a small num- ber of components by bolting, gluing, or soldering, and repacking and pack- aging components together.
[CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, as amended at CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.810 Originating goods.
(a) General. A good will be considered an originating good under the BFTA when imported directly from the terri- tory of a Party into the territory of the other Party only if:
(1) The good is wholly the growth, product, or manufacture of one or both of the Parties;
(2) The good is a new or different ar- ticle of commerce, as defined in § 10.809(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Par- ties, is provided for in a heading or sub- heading of the HTSUS that is not cov- ered by the product-specific rules set forth in General Note 30(h), HTSUS, and meets the value-content require- ment specified in paragraph (b) of this section; or
(3) The good is provided for in a head- ing or subheading of the HTSUS cov- ered by the product-specific rules set forth in General Note 30(h), HTSUS, and:
(i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in Gen- eral Note 30(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or
(B) The good otherwise satisfies the requirements specified in General Note 30(h), HTSUS; and
(ii) The good meets any other re- quirements specified in General Note 30, HTSUS.
(b) Value-content requirement. A good described in paragraph (a)(2) of this section will be considered an origi- nating good under the BFTA only if the sum of the value of materials pro- duced in one or both of the Parties, plus the direct costs of processing oper- ations performed in one or both of the Parties, is not less than 35 percent of the appraised value of the good at the
time the good is entered into the terri- tory of the United States.
(c) Combining, packaging, and diluting operations. For purposes of this sub- part, a good will not be considered a new or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. The principles and examples set forth in § 10.195(a)(2) of this part will apply equally for purposes of this paragraph.
§ 10.811 Textile or apparel goods. (a) De minimis—(1) General. Except as
provided in paragraph (a)(2) of this sec- tion, a textile or apparel good that is not an originating good under the BFTA because certain fibers or yarns used in the production of the compo- nent of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 30(h), HTSUS, will be considered to be an originating good if the total weight of all such fibers or yarns is not more than seven percent of the total weight of that component.
(2) Exception. A textile or apparel good containing elastomeric yarns in the component of the good that deter- mines the tariff classification of the good will be considered to be an origi- nating good only if such yarns are wholly formed in the territory of a Party.
(b) Textile or apparel goods put up in sets. Notwithstanding the specific rules specified in General Note 30(h), HTSUS, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Inter- pretation 3, HTSUS, will not be consid- ered to be originating goods under the BFTA unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed ten percent of the appraised value of the set.
[CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, as amended at CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 10.812 Accumulation. (a) An originating good or material
produced in the territory of one or both
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of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party.
(b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more pro- ducers is an originating good if the good satisfies the requirements of § 10.810 of this subpart and all other ap- plicable requirements of General Note 30, HTSUS.
§ 10.813 Value of materials.
(a) General. For purposes of § 10.810(b) of this subpart and, except as provided in paragraph (b) of this section, the value of a material produced in the ter- ritory of one or both of the Parties in- cludes the following:
(1) The price actually paid or payable for the material by the producer of the good;
(2) The freight, insurance, packing and all other costs incurred in trans- porting the material to the producer’s plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section;
(3) The cost of waste or spoilage re- sulting from the use of the material in the growth, production, or manufac- ture of the good, less the value of re- coverable scrap; and
(4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party.
(b) Exception. If the relationship be- tween the producer of a good and the seller of a material influenced the price actually paid or payable for the mate- rial, or if there is no price actually paid or payable by the producer for the material, the value of the material pro- duced in the territory of one or both of the Parties includes the following:
(1) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(2) A reasonable amount for profit; and
(3) The freight, insurance, packing, and all other costs incurred in trans- porting the material to the producer’s plant.
§ 10.814 Direct costs of processing op- erations.
(a) Items included. For purposes of § 10.810(b) of this subpart, the words ‘‘direct costs of processing operations’’, with respect to a good, mean those costs either directly incurred in, or that can be reasonably allocated to, the growth, production, or manufac- ture of the good in the territory of one or both of the Parties. Such costs in- clude, to the extent they are includable in the appraised value of the good when imported into a Party, the following:
(1) All actual labor costs involved in the growth, production, or manufac- ture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel;
(2) Tools, dies, molds, and other indi- rect materials, and depreciation on machinery and equipment that are al- locable to the specific good;
(3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good;
(4) Costs of inspecting and testing the specific good; and
(5) Costs of packaging the specific good for export to the territory of the other Party.
(b) Items not included. For purposes of § 10.810(b) of this subpart, the words ‘‘direct costs of processing operations’’ do not include items that are not di- rectly attributable to the good or are not costs of growth, production, or manufacture of the good. These in- clude, but are not limited to:
(1) Profit; and (2) General expenses of doing business
that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
§ 10.815 Packaging and packing mate- rials and containers for retail sale and for shipment.
Packaging materials and containers in which a good is packaged for retail sale and packing materials and con- tainers for shipment are to be dis- regarded in determining whether a
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good qualifies as an originating good under § 10.810 of this subpart and Gen- eral Note 30, HTSUS, except to the ex- tent that the value of such packaging and packing materials and containers may be included in meeting the value- content requirement specified in § 10.810(b) of this subpart.
§ 10.816 Indirect materials. Indirect materials are to be dis-
regarded in determining whether a good qualifies as an originating good under § 10.810 of this subpart and Gen- eral Note 30, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.810(b) of this subpart.
§ 10.817 Imported directly. (a) General. To qualify as an origi-
nating good under the BFTA, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac- turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed out- side the territories of the Parties in- clude inspection, removal of dust that accumulates during shipment, ventila- tion, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aque- ous solutions, replacing damaged pack- ing materials and containers, and re- moval of units of the good that are spoiled or damaged and present a dan- ger to the remaining units of the good, or to transport the good to the terri- tory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential
tariff treatment under the BFTA for an originating good may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the territory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An importer may demonstrate compliance with this section by sub- mitting documentary evidence. Such evidence may include, but is not lim- ited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
[CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, as amended at CBP Dec. 09-17, 74 FR 23951, May 22, 2009]
TARIFF PREFERENCE LEVEL
§ 10.818 Filing of claim for tariff pref- erence level.
A fabric, apparel, or made-up good described in § 10.819 of this subpart that does not qualify as an originating good under § 10.810 of this subpart may nev- ertheless be entitled to preferential tariff treatment under the BFTA under an applicable tariff preference level (TPL). To make a TPL claim, the im- porter must include on the entry sum- mary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9914.99.20) immediately above the applicable subheading in Chapter 52 through Chapter 63 of the HTSUS under which each non-origi- nating fabric or apparel good is classi- fied.
§ 10.819 Goods eligible for tariff pref- erence claims.
The following goods are eligible for a TPL claim filed under § 10.818 of this subpart (subject to the quantitative limitations set forth in U.S. Note 13, Subchapter XIV, Chapter 99, HTSUS):
(a) Cotton or man-made fiber fabric goods provided for in Chapters 52, 54, 55, 58, and 60 of the HTSUS that are wholly formed in the territory of Bah- rain from yarn produced or obtained outside the territory of Bahrain or the United States;
(b) Cotton or man-made fiber fabric goods provided for in subheadings 5801.21, 5801.22, 5801.23, 5801.24, 5801.25, 5801.26, 5801.31, 5801.32, 5801.33, 5801.34,
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5801.35, 5801.36, 5802.11, 5802.19, 5802.20, 5802.30, 5803.10, 5803.90.30, 5804.10.10, 5804.21, 5804.29.10, 5804.30, 5805.00.30, 5805.00.40, 5806.10.10, 5806.10.24, 5806.10.28, 5806.20, 5806.31, 5806.32, 5807.10.05, 5807.10.20, 5807.90.05, 5807.90.20, 5808.10.40, 5808.10.70, 5808.90, 5809.00, 5810.10, 5810.91, 5810.92, 5811.00.20, 5811.00.30, 6001.10, 6001.21, 6001.22, 6001.91, 6001.92, 6002.40, 6002.90, 6003.20, 6003.30, 6003.40, 6004.10, 6004.90, 6005.21, 6005.22, 6005.23, 6005.24, 6005.31, 6005.32, 6005.33, 6005.34, 6005.41, 6005.42, 6005.43, 6005.44, 6006.21, 6006.22, 6006.23, 6006.24, 6006.31, 6006.32, 6006.33, 6006.34, 6006.41, 6006.42, 6006.43, and 6006.44 of the HTSUS that are wholly formed in the territory of Bahrain from yarn spun in the territory of Bahrain or the United States from fiber pro- duced or obtained outside the territory of Bahrain or the United States;
(c) Cotton or man-made fiber apparel goods provided for in Chapters 61 or 62 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain from fabric or yarn produced or ob- tained outside the territory of Bahrain or the United States; and
(d) Cotton or man-made fiber made- up goods provided for in Chapter 63 of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Bahrain from fabric wholly formed in Bahrain or the United States from yarn pro- duced or obtained outside the territory of Bahrain or the United States.
§ 10.820 Certificate of eligibility. Upon request, an importer claiming
preferential tariff treatment on a non- originating cotton or man-made fiber good specified in § 10.819 of this subpart must submit to CBP a certificate of eligibility. The certificate of eligibility must be completed and signed by an authorized official of the Government of Bahrain and must be in the posses- sion of the importer at the time the preferential tariff treatment is claimed.
§ 10.821 Declaration. (a) General. An importer who claims
preferential tariff treatment on a non- originating cotton or man-made fiber good specified in § 10.819 of this subpart must submit, at the request of the port
director, a declaration supporting such a claim for preferential tariff treat- ment that sets forth all pertinent in- formation concerning the production of the good, including:
(1) A description of the good, quan- tity, invoice numbers, and bills of lad- ing;
(2) A description of the operations performed in the production of the good in the territory of one or both of the Parties;
(3) A reference to the specific provi- sion in § 10.819 of this subpart that forms the basis for the claim for pref- erential tariff treatment; and
(4) A statement as to any fiber, yarn, or fabric of a non-Party and the origin of such materials used in the produc- tion of the good.
(b) Retention of records. An importer must retain all documents relied upon to prepare the declaration for a period of five years.
§ 10.822 Transshipment of non-origi- nating fabric or apparel goods.
(a) General. To qualify for pref- erential tariff treatment under an ap- plicable TPL, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac- turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed out- side the territories of the Parties in- clude inspection, removal of dust that accumulates during shipment, ventila- tion, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aque- ous solutions, replacing damaged pack- ing materials and containers, and re- moval of units of the good that are
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spoiled or damaged and present a dan- ger to the remaining units of the good, or to transport the good to the terri- tory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under an applicable TPL may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the ter- ritory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An im- porter may demonstrate compliance with this section by submitting docu- mentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, com- mercial invoices, receiving and inven- tory records, and customs entry and exit documents.
[CBP Dec. 07–81, 72 FR 58515, Oct. 16, 2007, as amended at CBP 08-28, 73 FR 42681, July 23, 2008; CBP Dec. 09-17, 74 FR 23951, May 22, 2009]
§ 10.823 Effect of non-compliance; fail- ure to provide documentation re- garding transshipment of non-origi- nating fabric or apparel goods.
(a) General. If an importer of a good for which a TPL claim is made fails to comply with any applicable require- ment under this subpart, the port di- rector may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than a Party, and the importer of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the requirements set forth in § 10.822 of this subpart were met.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.824 Verification and justification of claim for preferential treatment.
(a) Verification. A claim for pref- erential treatment made under § 10.803
of this subpart, including any declara- tion or other information submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, the port direc- tor may deny the claim for preferential treatment.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.825 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment made under § 10.803 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the im- porter that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 30, HTSUS, and in §§ 10.809 through 10.817 of this subpart, the legal basis for the deter- mination.
PENALTIES
§ 10.826 Violations relating to the BFTA.
All criminal, civil, or administrative penalties which may be imposed on U.S. importers for violations of the customs and related laws and regula- tions will also apply to U.S. importers for violations of the laws and regula- tions relating to the BFTA.
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GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.827 Goods re-entered after repair or alteration in Bahrain.
(a) General. This section sets forth the rules that apply for purposes of ob- taining duty-free treatment on goods returned after repair or alteration in Bahrain as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Bahrain, whether or not pur- suant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment which does not destroy the essential characteristics of, or create a new or commercially different good from, the good exported from the United States.
(b) Goods not eligible for treatment. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Bahrain, are incomplete for their intended use and for which the processing operation performed in Bah- rain constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of paragraphs (a), (b), and (c) of § 10.8 of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Bahrain after having been ex- ported for repairs or alterations and which are claimed to be duty free.
Subpart O—Haitian Hemispheric Opportunity through Partner- ship Encouragement Act of 2006
SOURCE: CBP Dec. 07–43, 72 FR 34369, June 22, 2007, unless otherwise noted.
§ 10.841 Applicability. Title V of Public Law 109–432, enti-
tled the Haitian Hemispheric Oppor-
tunity through Partnership Encourage- ment Act of 2006 (HOPE I Act), amend- ed the Caribbean Basin Economic Re- covery Act (the CBERA, 19 U.S.C. 2701– 2707) by adding a new section 213A (19 U.S.C. 2703A) to authorize the Presi- dent to extend additional trade bene- fits to Haiti. part I, Subtitle D, Title XV of Public Law 110–234, entitled the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (HOPE II Act) amended cer- tain provisions within section 213A. Section 213A of the CBERA provides for the duty-free treatment of certain ap- parel articles and certain wiring sets from Haiti. The provisions of this sub- part set forth the legal requirements and procedures that apply for purposes of obtaining duty-free treatment pur- suant to CBERA section 213A.
[CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008]
§ 10.842 Definitions.
As used in this subpart, the following terms have the meanings indicated un- less either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Apparel articles. ‘‘Apparel arti- cles’’ means goods classifiable in Chap- ters 61 and 62 and headings 6501, 6502, 6503, and 6504 and subheadings 6406.99.15 and 6505.90 of the HTSUS;
(b) Applicable one-year period. ‘‘Appli- cable one-year period’’ means each of the following one-year periods:
(1) Initial applicable one-year period. ‘‘Initial applicable one-year period’’ means the period beginning on Decem- ber 20, 2006, and ending on December 19, 2007;
(2) Second applicable one-year period. ‘‘Second applicable one-year period’’ means the period beginning on Decem- ber 20, 2007, and ending on December 19, 2008;
(3) Third applicable one-year period. ‘‘Third applicable one-year period’’ means the period beginning on Decem- ber 20, 2008, and ending on December 19, 2009;
(4) Fourth applicable one-year period. ‘‘Fourth applicable one-year period’’ means the period beginning on Decem- ber 20, 2009, and ending on December 19, 2010; and
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(5) Fifth applicable one-year period. ‘‘Fifth applicable one-year period’’ means the period beginning on Decem- ber 20, 2010, and ending on December 19, 2011;
(c) Customs territory of the United States. ‘‘Customs territory of the United States’’ means the 50 states, the District of Columbia, and Puerto Rico;
(d) Declared customs value. ‘‘Declared customs value’’ means the appraised value of an imported article deter- mined in accordance with section 402 of the Tariff Act of 1930, as amended (19 U.S.C. 1401a);
(e) Enter; entry. ‘‘Enter’’ and ‘‘entry’’ refer to the entry, or withdrawal from warehouse for consumption, in the cus- toms territory of the United States;
(f) Entity controlling production. ‘‘En- tity controlling production’’ means an individual, corporation, partnership, association, or other entity or group that is not a producer and that con- trols the production process in Haiti through a contractual relationship or other indirect means;
(g) Fabric component. ‘‘Fabric compo- nent’’ means a component cut from fabric to the shape or form of the com- ponent as it is used in the apparel arti- cle;
(h) Foreign material. ‘‘Foreign mate- rial’’ means a material not produced in Haiti or any eligible country described in § 10.844(c);
(i) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States;
(j) Knit-to-shape articles. ‘‘Knit-to- shape,’’ when used with reference to apparel articles, means any apparel ar- ticle of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the apparel article, with no consider- ation being given to patch pockets, ap- pliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the determination of whether an apparel article is ‘‘knit- to-shape’’;
(k) Knit-to-shape components. ‘‘Knit- to-shape,’’ when used with reference to textile components, means components that are knitted or crocheted from a yarn directly to a specific shape, that is, the shape or form of the component
as it is used in the apparel article, con- taining at least one self-start edge. Minor cutting or trimming will not af- fect the determination of whether a component is ‘‘knit-to-shape’’;
(l) Major parts. ‘‘Major parts’’ means integral components of an apparel arti- cle but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts or components;
(m) Producer. ‘‘Producer’’ means an individual, corporation, partnership, association, or other entity or group that exercises direct, daily operational control over the production process in Haiti;
(n) Self-start edge. ‘‘Self-start edge,’’ when used with reference to knit-to- shape components, means a finished edge which is finished as the compo- nent comes off the knitting machine. Several components with finished edges may be linked by yarn or thread as they are produced from the knitting machine;
(o) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the HTSUS;
(p) Wholly assembled in Haiti. ‘‘Wholly assembled in Haiti’’ means that all components, of which there must be at least two, pre-existed in essentially the same condition as found in the finished good and were combined to form the finished good in Haiti. Minor attach- ments and minor embellishments (for example, appliqués, beads, spangles, embroidery, and buttons) not appre- ciably affecting the identity of the good, and minor subassemblies (for ex- ample, collars, cuffs, plackets, and pockets), will not affect the determina- tion of whether a good is ‘‘wholly as- sembled in Haiti’’.
(q) Wholly the growth, product, or man- ufacture. ‘‘Wholly the growth, product, or manufacture,’’ when used with ref- erence to Haiti or one or more eligible countries described in § 10.844(c) of this subpart, refers both to any article which has been entirely grown, pro- duced, or manufactured in Haiti or one or more eligible countries described in § 10.844(c) of this subpart and to all ma- terials incorporated in an article which have been entirely grown, produced, or manufactured in Haiti or one or more
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eligible countries described in § 10.844(c) of this subpart.
[CBP Dec. 07–43, 72 FR 34369, June 22, 2007, as amended at CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008]
§ 10.843 Articles eligible for duty-free treatment.
The duty-free treatment referred to in § 10.841 of this subpart applies to the articles described in paragraphs (a) through (j) of this section that are im- ported directly from Haiti or the Do- minican Republic into the customs ter- ritory of the United States and to the articles described in paragraph (k) of this section that are imported directly from Haiti into the customs territory of the United States.
(a) Certain apparel articles. Apparel articles of a producer or entity control- ling production that are wholly assem- bled or knit-to-shape in Haiti from any combination of fabrics, fabric compo- nents, components knit-to-shape, and yarns, subject to the applicable quan- titative limits set forth in U.S. Note 6(g), Subchapter XX, Chapter 98, HTSUS, and provided that the applica- ble value-content requirement set forth in § 10.844(a) of this subpart is met through the use of:
(1) The individual entry method (see § 10.844(a)(1) of this subpart); or
(2) The annual aggregation method (see § 10.844(a)(2) of this subpart).
(b) Certain woven apparel articles. Ap- parel articles classifiable in Chapter 62 of the HTSUS that are wholly assem- bled or knit-to-shape in Haiti from any combination of fabrics, fabric compo- nents, components knit-to-shape, and yarns, without regard to the source of the fabric, fabric components, compo- nents knit-to-shape, or yarns from which the article is made, subject to the applicable quantitative limits set forth in U.S. Note 6(h), Subchapter XX, Chapter 98, HTSUS.
(c) Brassieres. Apparel articles classi- fiable in subheading 6212.10 of the HTSUS that are wholly assembled or knit-to-shape in Haiti from any com- bination of fabrics, fabric components, components knit-to-shape, or yarns, without regard to the source of the fab- ric, fabric components, components knit-to-shape, or yarns from which the article is made.
(d) Certain knit apparel articles—(1) General. Apparel articles classifiable in Chapter 61 of the HTSUS (other than those described in paragraph (d)(2) of this section) that are wholly assembled or knit-to-shape in Haiti from any combination of fabrics, fabric compo- nents, components, components knit- to-shape, or yarns, without regard to the source of the fabric, fabric compo- nents, components knit-to-shape, or yarns from which the article is made, subject to the applicable quantitative limits set forth in U.S. Note 6(j), Sub- chapter XX, Chapter 98, HTSUS.
(2) Exclusions. Duty-free treatment for the articles described in paragraph (d)(1) of this section will not apply to the following:
(i) The following apparel articles of cotton, for men or boys, that are clas- sifiable in subheading 6109.10.00 of the HTSUS:
(A) All white T-shirts, with short hemmed sleeves and hemmed bottom, with crew or round neckline or with V- neck and with a mitered seam at the center of the V, and without pockets, trim, or embroidery;
(B) All white singlets, without pock- ets, trim, or embroidery; and
(C) Other T-shirts, but not including thermal undershirts;
(ii) T-shirts for men or boys that are classifiable in subheading 6109.90.10 of the HTSUS;
(iii) The following apparel articles of cotton, for men or boys, that are clas- sifiable in subheading 6110.20.20 of the HTSUS:
(A) Sweatshirts; and (B) Pullovers, other than sweaters,
vests, or garments imported as part of playsuits; or
(iv) Sweatshirts for men or boys, of man-made fibers and containing less than 65 percent by weight of man-made fibers, that are classifiable in sub- heading 6110.30.30 of the HTSUS.
(e) Other apparel articles. Any of the following apparel articles that is whol- ly assembled or knit-to-shape in Haiti from any combination of fabrics, fabric components, components knit-to- shape, or yarns, without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the article is made:
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(1) Any apparel article that is of a type listed in chapter rule 3, 4, or 5 for chapter 61 of the HTSUS (as such chap- ter rules are contained in section A of the Annex to Presidential Proclama- tion 8213 of December 20, 2007) as being excluded from the scope of such chap- ter rule, when such chapter rule is ap- plied to determine whether an apparel article is an originating good for pur- poses of General Note 29(n), HTSUS, except that, for purposes of this provi- sion, reference in such chapter rules to subheading 6104.12.00 of the HTSUS is deemed to refer to subheading 6104.19.60 of the HTSUS; or
(2) Any apparel article (other than articles to which paragraph (c) of this section applies (brassieres)) that is of a type listed in chapter rule 3(a), 4(a), or 5(a) for chapter 62 of the HTSUS, as such chapter rules are contained in paragraph 9 of section A of the Annex to Presidential Proclamation 8213 of December 20, 2007.
(f) Luggage and similar items. Articles classifiable in subheading 4202.12, 4202.22, 4202.32, or 4202.92 of the HTSUS that are wholly assembled in Haiti, without regard to the source of the fab- ric, components, or materials from which the article is made.
(g) Headgear. Articles classifiable in heading 6501, 6502, or 6504, or sub- heading 6505.90 of the HTSUS that are wholly assembled, knit-to-shape, or formed in Haiti from any combination of fabrics, fabric components, compo- nents knit-to-shape, or yarns, without regard to the source of the fabric, fab- ric components, components knit-to- shape, or yarns from which the article is made.
(h) Certain sleepwear. Any of the fol- lowing apparel articles that is wholly assembled or knit-to-shape in Haiti from any combination of fabrics, fabric components, components knit-to- shape, or yarns, without regard to the source of the fabric, fabric components, components knit-to-shape, or yarns from which the article is made:
(1) Pajama bottoms and other sleepwear for women and girls, of cot- ton, that are classifiable in subheading 6208.91.30, HTSUS, or of man-made fi- bers, that are classifiable in sub- heading 6208.92.00, HTSUS; or
(2) Pajama bottoms and other sleepwear for girls, of other textile ma- terials, that are classifiable in sub- heading 6208.99.20, HTSUS.
(i) Earned import allowance rule. Ap- parel articles wholly assembled or knit-to-shape in Haiti from any com- bination of fabrics, fabric components, components knit-to-shape, or yarns, without regard to the source of the fab- ric, fabric components, components knit-to-shape, or yarns from which the articles are made, if such apparel arti- cles are accompanied by an earned im- port allowance certificate issued by the Department of Commerce that reflects the amount of credits equal to the total square meter equivalents of such apparel articles, in accordance with the earned import allowance program es- tablished by the Secretary of Com- merce pursuant to 19 U.S.C. 2703A(b)(4)(B).
(j) Apparel articles of short supply ma- terials. Apparel articles that are wholly assembled or knit-to-shape in Haiti from any combination of fabrics, fabric components, components knit-to- shape, or yarns, without regard to the source of the fabrics, fabric compo- nents, components knit-to-shape, or yarns from which the article is made, if the fabrics, fabric components, compo- nents knit-to-shape, or yarns com- prising the component that determines the tariff classification of the article are of any of the following:
(1) Fabrics or yarns, to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 401 of the North American Free Trade Agreement (NAFTA); or
(2) Fabrics or yarns, to the extent that such fabrics or yarns are des- ignated as not being available in com- mercial quantities for purposes of:
(i) Section 213(b)(2)(A)(v) of the CBERA (19 U.S.C. 2703(b)(2)(A)(v));
(ii) Section 112(b)(5) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)(5));
(iii) Section 204(b)(3)(B)(i)(III) or 204(b)(3)(B)(ii) of the Andean Trade Preference Act (19 U.S.C. 3203(b)(3)(B)(i)(II) or 3203(b)(3)(B)(ii)); or
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(iv) Any other provision, relating to determining whether a textile or ap- parel article is an originating good eli- gible for preferential treatment, of a law that implements a free trade agree- ment entered into by the United States that is in effect at the time the claim for preferential tariff treatment is made under § 10.847 of this subpart.
(k) Wiring sets. Any article classifi- able in subheading 8544.30.00 of the HTSUS, as in effect on December 20, 2006, that is the product or manufac- ture of Haiti, provided the article satis- fies the value-content requirement set forth in § 10.844(b) of this subpart. For purposes of this paragraph, the term ‘‘product or manufacture of Haiti’’ re- fers to an article that is either:
(1) Wholly the growth, product, or manufacture of Haiti; or
(2) A new or different article of com- merce that has been grown, produced, or manufactured in Haiti.
[CBP Dec. 07–43, 72 FR 34369, June 22, 2007, as amended at CBP Dec. 08-24, 73 FR 56725, Sept. 30, 2008]
§ 10.844 Value-content requirement.
(a) Certain apparel articles—(1) Gen- eral. Except as provided in paragraph (a)(2) of this section, apparel articles described in § 10.843(a) of this subpart will be eligible for duty-free treatment only if, for each entry of such articles in the applicable one-year period for which a duty-free claim is made for such articles under § 10.847(a) of this subpart, the sum of the cost or value of the materials produced in Haiti or one or more eligible countries described in paragraph (c) of this section, or any combination thereof, plus the direct costs of processing operations per- formed in Haiti or one or more eligible countries described in paragraph (c) of this section, or any combination there- of, is not less than (as applicable):
(i) 50 percent or more of the declared customs value of the articles entered during the initial applicable one-year period, the second applicable one-year period, and the third applicable one- year period;
(ii) 55 percent or more of the declared customs value of the articles entered during the fourth applicable one-year period; and
(iii) 60 percent or more of the de- clared customs value of the articles en- tered during the fifth applicable one- year period.
(2) Annual aggregation—(i) Initial ap- plicable one-year period. In the initial applicable one-year period, the applica- ble value-content requirement set forth in paragraph (a)(1) of this section may also be met for apparel articles of a producer or an entity controlling pro- duction that are entered during the ini- tial applicable one-year period and for which duty-free treatment is claimed under § 10.847(a) of this subpart by ag- gregating the cost or value of mate- rials and the direct costs of processing operations, as those terms are used in paragraph (a)(1) of this section, with respect to all apparel articles of that producer or entity controlling produc- tion that are wholly assembled or knit- to-shape in Haiti and are entered dur- ing the initial applicable one-year pe- riod (except as provided in paragraph (a)(2)(iii) of this section).
(ii) Other applicable one-year periods. In each of the second, third, fourth, and fifth applicable one-year periods, the applicable value-content require- ment set forth in paragraph (a)(1) of this section may also be met for ap- parel articles of a producer or an entity controlling production that are entered during the applicable one-year period and for which duty-free treatment is claimed under § 10.847(a) of this subpart by aggregating the cost or value of ma- terials and the direct costs of proc- essing, as those terms are used in para- graph (a)(1) of this section, with re- spect to all apparel articles of that pro- ducer or entity controlling production that are wholly assembled or knit-to- shape in Haiti and are entered during the preceding applicable one-year pe- riod (except as provided in paragraph (a)(2)(iii) of this section).
(iii) Exclusions from annual aggrega- tion calculation. The entry of an apparel article that is wholly assembled or knit-to-shape in Haiti and is receiving preferential tariff treatment under any provision of law other than section 213A(b)(1) of the CBERA (19 U.S.C. 2703A(b)(1)) or is subject to the ‘‘Gen- eral’’ subcolumn of column 1 of the HTSUS will only be included in an an- nual aggregation under paragraph
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(a)(2)(i) or (a)(2)(ii) of this section if the producer or entity controlling produc- tion elects, at the time the annual ag- gregation calculation is made, to in- clude such entry in the aggregation.
Example. A Haitian producer elects to use the annual aggregation method in the initial applicable one-year period, and also elects to include in the aggregation calculation an entry of apparel articles receiving pref- erential tariff treatment under another pref- erence program. The producer ships to the United States four shipments during the ini- tial applicable one-year period and all are entered during that period. The first ship- ment of apparel (qualifying for and receiving preference under the Caribbean Basin Trade Partnership Act (CBTPA)) has an appraised value of $100,000 and meets a value-content percentage (under § 10.844(a) of this section) of 80%. The second shipment of apparel is wholly assembled in Haiti, has an appraised value of $100,000, and meets a value-content percentage of 40%. The third shipment is wholly assembled in Haiti, has an appraised value of $50,000, and meets a value-content percentage of 0%. The last shipment is whol- ly assembled in Haiti, has an appraised value of $20,000, and meets a value-content require- ment of 80%. Taken together, the four ship- ments have an appraised value of $270,000 and meet a value-content percentage of 50.4%. The apparel articles shipped to the United States in the last three shipments would qualify for duty-free treatment under section 213A(b)(1) of the CBERA and § 10.843(a) of this subpart as the applicable value-content re- quirement for the initial applicable one-year period (50 %) is satisfied. This conclusion as- sumes that: The CBTPA-eligible apparel ar- ticles in the first shipment (that were in- cluded in the annual aggregation calculation at the election of the producer) were wholly assembled or knit-to-shape in Haiti, as re- quired in § 10.844(a)(2)(iii) of this section; and the articles in the last three shipments that were wholly assembled in Haiti satisfy all other applicable requirements set forth in this subpart.
(3) Election to use the annual aggrega- tion method for an applicable one-year period. A producer or entity controlling production may elect to use the indi- vidual entry or annual aggregation method in any applicable one-year pe- riod and then elect to use the other method during the subsequent applica- ble one-year period, provided that all applicable requirements are met during the applicable one-year period pre- ceding the period in which the switch is made. If a producer or entity con- trolling production using the indi-
vidual entry method in an applicable one-year period elects to use the an- nual aggregation method during the subsequent applicable one-year period, the declaration of compliance de- scribed in § 10.848 of this subpart must be submitted to CBP within 30 days fol- lowing the end of the applicable one- year period in which the individual entry method was used.
(4) Failure to meet applicable require- ments—(i) Initial applicable one-year pe- riod. Except as provided in paragraph (a)(4)(iii) of this section, if CBP deter- mines that apparel articles of a pro- ducer or entity controlling production that are entered as articles described in § 10.843(a) of this subpart during the initial applicable one-year period have not met the requirements of § 10.843(a) of this subpart or the applicable value- content requirement set forth in para- graph (a)(1) of this section, then:
(A) All apparel articles of the pro- ducer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered under the annual ag- gregation method during that initial applicable one-year period will be de- nied duty-free treatment;
(B) Those apparel articles of the pro- ducer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an individual entry basis and that fail to meet the require- ments of § 10.843(a)(1) of this subpart or the applicable value-content require- ment set forth in paragraph (a)(1) of this section during that initial applica- ble one-year period will be denied duty- free treatment. However, apparel arti- cles of the producer or entity control- ling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an in- dividual entry basis prior to an elec- tion being made by the producer or en- tity controlling production to use the annual aggregation method will be con- sidered to have met the applicable value-content requirement if that re- quirement is met through application of the individual entry method; and
(C) All apparel articles of the pro- ducer or entity controlling production for which duty-free treatment is
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claimed under § 10.847(a) of this sub- part, whether entered on an individual entry or annual aggregation basis, will be not be eligible for duty-free treat- ment during the succeeding applicable one-year periods until the increased percentage in the value-content re- quirement specified in paragraph (a)(4)(iii) of this section has been met by all the apparel articles of that pro- ducer or entity controlling production that are wholly assembled or knit-to- shape in Haiti and are entered during the immediately preceding applicable one-year period, unless the articles qualify for tariff benefits pursuant to the provisions of § 10.845 of this sub- part.
(ii) Other applicable one-year periods. Except as provided in paragraph (a)(4)(iii) of this section, if CBP deter- mines that apparel articles of a pro- ducer or entity controlling production that are entered as articles described in § 10.843(a) of this subpart during any applicable one-year period following the initial applicable one-year period have not met the requirements of § 10.843(a) or the applicable value-con- tent requirement set forth in para- graph (a) of this section, then:
(A) Those apparel articles of the pro- ducer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this subpart that are entered on an individual entry basis and that fail to meet the require- ments of § 10.843(a)(1) or the applicable value-content requirement set forth in paragraph (a)(1) of this subpart during that applicable one-year period will be denied duty-free treatment; and
(B) All apparel articles of the pro- ducer or entity controlling production for which duty-free treatment is claimed under § 10.847(a) of this sub- part, whether entered on an individual entry or annual aggregation basis, will not be eligible for duty-free treatment during the succeeding applicable one- year periods until the increased per- centage in the value-content require- ment specified in paragraph (a)(4)(iii) of this section has been met by all the apparel articles of that producer or en- tity controlling production that are wholly assembled or knit-to-shape in Haiti and are entered during the imme- diately preceding applicable one-year
period, unless the articles qualify for tariff benefits pursuant to the provi- sions of § 10.845 of this subpart.
(iii) Entity controlling production of apparel articles of a producer also pro- ducing for its own account. Where an en- tity controlling production controls the production of apparel articles, as described in § 10.843(a) of this subpart, of a producer that also produces for its own account, the failure of apparel ar- ticles of that producer to meet the re- quirements of § 10.843(a) of this subpart or the applicable value-content re- quirement set forth in paragraph (a) of this section in an applicable one-year period, either under the annual aggre- gation method or the individual entry method, will not affect the eligibility for duty-free treatment under § 10.843(a) of this subpart of those apparel articles of that producer which are part of a claim for such treatment made on be- half of the entity controlling produc- tion.
Example. Importer D, an entity controlling production, purchases apparel articles that meet the description in § 10.843(a) of this sub- part from Haitian Producers A, B, and C and enters those articles during the initial appli- cable one-year period. Importer D elects to use the annual aggregation method during that period. The three producers also produce apparel for other U.S. importers and each producer elects to use the annual aggre- gation method. The apparel articles pur- chased by Importer D from the three pro- ducers and entered during the initial appli- cable one-year period meet a value-content percentage of 51.7%. However, the value-con- tent percentage met by all the apparel that is wholly assembled in Haiti by Producer C and entered (including the apparel imported by Importer D) during the initial applicable one-year period is 49%. As all of the articles, in the aggregate, purchased by Importer D from the three producers and entered during the initial applicable one-year period satisfy the applicable value-content requirement (50%), all of these articles are entitled to duty-free treatment under section 213A(b)(1) of the CBERA and § 10.843(a) of this subpart, assuming all other applicable requirements are met. The failure of Producer C to meet the 50% value-content requirement with re- spect to all of the articles that it wholly as- sembled in Haiti and entered during the ini- tial applicable one-year period will not pre- vent duty-free status being claimed for the
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articles purchased by Importer D from Pro- ducer C. Therefore, the consequences of Pro- ducer C’s failure to meet the 50% value-con- tent requirement include the denial of pref- erential tariff treatment for all articles that are wholly assembled in Haiti by Producer C and entered during the initial applicable one-year period, except for those articles sold by Producer C to Importer D. An additional consequence of Producer C’s failure to meet the value-content requirement in the initial applicable one-year period is that articles wholly assembled in Haiti by Producer C and entered during succeeding applicable one- year periods will be ineligible for duty-free treatment until the appropriate increased value-content requirement has been met (see § 10.844(a)(4)(i)(C) of this subpart), except to the extent the articles qualify for preference under § 10.845 of this subpart.
(iv) Increased percentage. For apparel articles of a producer or entity control- ling production to meet the increased percentage referred to in paragraphs (a)(4)(i)(C) and (a)(4)(ii)(B) of this sec- tion, the sum of the cost or value of the materials produced in Haiti or one or more eligible countries described in paragraph (c) of this section, or any combination thereof, plus the direct costs of processing operations per- formed in Haiti or one or more eligible countries described in paragraph (c) of this section, or any combination there- of, must not be less than the applicable percentage under paragraph (a)(1) of this section, plus 10 percent, of the ag- gregate declared customs value of all apparel articles of that producer or en- tity controlling production that are wholly assembled or knit-to-shape in Haiti and are entered during the imme- diately preceding applicable one-year period. Once the increased value-con- tent percentage has been met for the articles of a producer or entity control- ling production that are entered during an applicable one-year period, the arti- cles of that producer or entity control- ling production that are entered during the next succeeding applicable one- year period will be subject to the appli- cable value-content percentage speci- fied in paragraph (a)(1) of this section.
(v) Articles of a new producer or entity controlling production. Apparel articles of a new producer or entity controlling production electing to use the annual aggregation method for purposes of meeting the applicable value-content requirement must first meet the in-
creased value-content percentage spec- ified in paragraph (a)(4)(iv) of this sec- tion as a prerequisite to receiving duty-free treatment during a suc- ceeding applicable one-year period. Ap- parel articles of a new producer or enti- ty controlling production electing to use the individual entry method are not subject to the requirement of first meeting the increased value-content percentage as a prerequisite to receiv- ing duty-free treatment during the first year of participation or in any succeeding applicable one-year period. For purposes of this paragraph, a ‘‘new producer or entity controlling produc- tion’’ is a producer or entity control- ling production that did not produce or control production of articles that were entered as articles pursuant to § 10.843(a) of this subpart during the im- mediately preceding applicable one- year period.
Example 1. A Haitian producer begins pro- duction of apparel articles that meet the de- scription in § 10.843(a) of this subpart during the second applicable one-year period and elects to use the annual aggregation method for each applicable one-year period. The pro- ducer’s articles entered during the second applicable one-year period meet a value-con- tent percentage of 55%; articles entered dur- ing the third applicable one-year period meet a value-content percentage of 65%; and arti- cles entered during the fourth applicable one-year period meet a value-content per- centage of 55%. The producer’s articles may not receive duty-free treatment during the second applicable one-year period because there was no production (and thus no entered articles) during the immediately preceding period (the initial applicable one-year pe- riod) on which to assess compliance with the applicable value-content requirement. The producer’s articles also may not receive duty-free treatment during the third applica- ble one-year period because the increased value-content percentage requirement (50% plus 10% = 60%) was not met in the imme- diately preceding period (the second applica- ble one-year period). However, the producer’s articles are eligible for duty-free treatment during the fourth applicable one-year period based on compliance with the 60% value-con- tent percentage requirement in the imme- diately preceding period (the third applicable one-year period). The producer’s articles also are eligible for duty-free treatment during the fifth applicable one-year period based on compliance with the 55% value-content per- centage requirement in the immediately pre- ceding period (the fourth applicable one-year period).
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Example 2. Same facts as in example 1, ex- cept that the producer elects to use the indi- vidual entry method for purposes of meeting the applicable value-content requirement for each applicable one-year period. The pro- ducer’s articles entered during the second applicable one-year period are eligible for duty-free treatment because these articles meet the requisite 50% value-content re- quirement. The producer’s articles also may receive duty-free treatment during the third, fourth, and fifth applicable one-year periods based on compliance with the applicable value-content requirements for each of those periods set forth in paragraph (a)(1) of this section.
(vi) Notification of compliance with the increased percentage—(A) General. If ap- parel articles of a producer or entity controlling production are required to meet the increased value-content per- centage described in paragraph (a)(4)(iv) of this section, either because of failure to meet the requirements of § 10.843(a) or the applicable value-con- tent requirement set forth in para- graph (a) of this section in an applica- ble one-year period, or because the pro- ducer or entity controlling production is a new producer or entity controlling production, as defined in paragraph (a)(4)(v) of this section, that elects to use the annual aggregation method, the importer of such articles must no- tify CBP that the increased percentage has been met in an applicable one-year period by submitting to CBP the dec- laration of compliance described in § 10.848 of this subpart within 30 days following the end of the applicable one- year period. An importer that is re- quired to submit a declaration of com- pliance under this paragraph must sub- mit such a declaration for each im- porter of record identification number used by that importer. A declaration of compliance required under this para- graph must be sent to the address set forth in § 10.848(a) of this subpart.
(B) Contents. A declaration of compli- ance required under paragraph (a)(4)(v)(A) of this section must in- clude, in addition to the information specified in § 10.848(c) of this subpart, a statement as to whether the increased value-content percentage was required because the apparel articles failed to meet the production standards or the applicable value-content requirement or because the producer or entity con- trolling production was a new producer
or entity controlling production that elected to use the annual aggregation method.
(C) Effect of noncompliance. If an im- porter fails to submit to CBP the dec- laration of compliance required under paragraph (a)(4)(v)(A) of this section within 30 days following the end of the applicable one-year period during which the increased value-content per- centage was met for apparel articles of a producer or entity controlling pro- duction, CBP may deny duty-free treatment to all apparel articles, as de- scribed in § 10.843(a) of this subpart, of that producer or entity controlling production that are entered by that importer during the next succeeding applicable one-year period. Addition- ally, the timely submission of a dec- laration of compliance is a prerequisite for a producer or entity controlling production to request retroactive ap- plication of duty-free treatment under § 10.845 of this subpart for apparel arti- cles that meet the increased value-con- tent percentage during an applicable one-year period. However, the submis- sion of a declaration of compliance is not a substitute for filing a request for liquidation or reliquidation of an entry for which retroactive duty-free treat- ment is sought under § 10.845 of this subpart.
(5) Inclusion of the cost of fabrics or yarns not available in commercial quan- tities in value-content requirement. For purposes of meeting the applicable value-content requirement set forth in paragraph (a) of this section, either in regard to individual entries or entries entered in the aggregate, the following costs may be included:
(i) The cost of fabrics or yarns to the extent that apparel articles of such fabrics or yarns would be eligible for preferential treatment, without regard to the source of the fabrics or yarns, under Annex 401 of the NAFTA; and
(ii) The cost of fabrics or yarns (with- out regard to their source) that are designated as not being available in commercial quantities for purposes of:
(A) Section 213(b)(2)(A)(v) of the CBERA (19 U.S.C. 2703(b)(2)(A)(v));
(B) Section 112(b)(5) of the African Growth and Opportunity Act (19 U.S.C. 3721(b)(5));
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(C) Section 204(b)(3)(B)(i)(III) or 204(b)(3)(B)(ii) of the Andean Trade Preference Act (19 U.S.C. 3203(b)(3)(B)(i)(III) or 3203(b)(3)(B)(ii)); or
(D) Any other provision, relating to determining whether a textile or ap- parel article is an originating good eli- gible for preferential treatment, of a law that implements a free trade agree- ment that enters into force with re- spect to the United States.
(b) Wiring sets. An article described in § 10.843(d) of this subpart will be eligi- ble for duty-free treatment during the five-year period ending on December 19, 2011, only if the sum of the cost or value of the materials produced in Haiti or one or more eligible countries described in paragraph (c) of this sec- tion, or any combination thereof, plus the direct costs of processing oper- ations performed in Haiti or the United States, or both, is not less than 50 per- cent of the declared customs value of the article.
(c) Eligible countries described. As used in this section, the term ‘‘eligible countries’’ includes:
(1) The United States; (2) Israel, Canada, Mexico, Jordan,
Singapore, Chile, Australia, Morocco, Bahrain, El Salvador, Honduras, Nica- ragua, Guatemala, Dominican Repub- lic, and any other country that is a party to a free trade agreement with the United States that is in effect on December 20, 2006, or that enters into force thereafter; and
(3) The designated beneficiary coun- tries listed in General Notes 11 (Andean Trade Preference Act), 16 (African Growth and Opportunity Act), and 17 (Caribbean Basin Trade Partnership Act) of the HTSUS.
(d) Cost or value of materials—(1) Mate- rials produced in Haiti or one or more eli- gible countries described in paragraph (c) of this section defined—(i) Certain ap- parel articles. As used in paragraph (a) of this section, the words ‘‘materials produced in Haiti or one or more eligi- ble countries described in paragraph (c) of this section’’ refer to those mate- rials incorporated into an article that are either:
(A) Wholly obtained or produced, within the meaning of § 102.1(g) of this chapter, in Haiti or one or more eligi-
ble countries described in paragraph (c) of this section; or
(B) Determined to originate in Haiti or one or more eligible countries de- scribed in paragraph (c) of this section by application of the provisions of § 102.21 of this chapter.
(ii) Wiring sets. As used in paragraph (b) of this section, the words ‘‘mate- rials produced in Haiti or one or more eligible countries described in para- graph (c) of this section’’ refer to those materials incorporated into an article that are either:
(A) Wholly the growth, product, or manufacture of Haiti or one or more el- igible countries described in paragraph (c) of this section; or
(B) Substantially transformed in Haiti or one or more eligible countries described in paragraph (c) of this sec- tion into a new or different article of commerce which is then used in Haiti in the production of a new or different article of commerce that is imported into the United States.
(2) Determination of cost or value of materials—(i) Costs included. (A) For purposes of paragraphs (a) and (b) of this section, and subject to paragraphs (d)(2)(i)(B) and (d)(2)(ii) of this section, the cost or value of materials produced in Haiti or one or more eligible coun- tries described in paragraph (c) of this section includes:
(1) The manufacturer’s actual cost for the materials;
(2) When not included in the manu- facturer’s actual cost for the materials, the freight, insurance, packing, and all other costs incurred in transporting the materials to the manufacturer’s plant;
(3) The actual cost of waste or spoil- age, less the value of recoverable scrap; and
(4) Taxes and/or duties imposed on the materials by Haiti or one or more eligible countries described in para- graph (c) of this section, provided they are not remitted upon exportation.
(B) Where a material is provided to the manufacturer without charge, or at less than fair market value, its cost or value will be determined by computing the sum of:
(1) All expenses incurred in the growth, production, or manufacture of
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the material, including general ex- penses;
(2) An amount for profit; and (3) Freight, insurance, packing, and
all other costs incurred in transporting the material to the manufacturer’s plant.
(ii) Costs deducted in regard to certain apparel articles. For purposes of para- graph (a) of this section, in calculating the cost or value of materials produced in Haiti or one or more eligible coun- tries described in paragraph (c) of this section, either in regard to individual entries or entries entered in the aggre- gate, deductions are to be made for the cost or value of:
(A) Any foreign materials used in the production of the apparel articles in Haiti; and
(B) Any foreign materials used in the production of the materials produced in Haiti or one or more eligible coun- tries described in paragraph (c) of this section.
(e) Direct costs of processing oper- ations—(1) Items included. As used in paragraphs (a) and (b) of this section, the words ‘‘direct costs of processing operations’’ mean those costs either di- rectly incurred in, or which can be rea- sonably allocated to, the growth, pro- duction, manufacture, or assembly of the specific articles under consider- ation. Such costs include, but are not limited to the following, to the extent that they are includable in the ap- praised value of the imported articles:
(i) All actual labor costs involved in the growth, production, manufacture, or assembly of the specific articles, in- cluding fringe benefits, on-the-job training, and the cost of engineering, supervisory, quality control, and simi- lar personnel;
(ii) Dies, molds, tooling, and depre- ciation on machinery and equipment which are allocable to the specific arti- cles;
(iii) Research, development, design, engineering, and blueprint costs inso- far as they are allocable to the specific articles; and
(iv) Costs of inspecting and testing the specific articles.
(2) Items not included. The words ‘‘di- rect costs of processing operations’’ do not include items that are not directly attributable to the articles under con-
sideration or are not costs of manufac- turing the product. These include, but are not limited to:
(i) Profit; and (ii) General expenses of doing busi-
ness that either are not allocable to the specific articles or are not related to the growth, production, manufac- ture, or assembly of the articles, such as administrative salaries, casualty and liability insurance, advertising, and salesmen’s salaries, commissions, or expenses.
[CBP Dec. 07–43, 72 FR 34369, June 22, 2007, as amended at CBP Dec. 08-24, 73 FR 56728, Sept. 30, 2008]
§ 10.845 Retroactive application of duty-free treatment for certain ap- parel articles.
(a) General. Notwithstanding 19 U.S.C. 1514 or any other provision of law, if apparel articles, as described in § 10.843(a) of this subpart, of a producer or entity controlling production are in- eligible for duty-free treatment in an applicable one-year period because the apparel articles of the producer or enti- ty controlling production did not meet the requirements of § 10.843(a) of this subpart or the applicable value-content requirement set forth in § 10.844(a) of this subpart, and the apparel articles of the producer or entity controlling pro- duction satisfy the increased value- content percentage set forth in § 10.844(a)(4)(iii) of this subpart in that same applicable one-year period, the entry of any such articles made during that applicable one-year period will be liquidated or reliquidated free of duty, and CBP will refund any customs du- ties paid with respect to such entry, with interest accrued from the date of entry, provided that the conditions and requirements set forth in paragraph (b) of this section are met.
(b) Conditions and requirements. The conditions and requirements referred to in paragraph (a) of this section are as follows:
(1) The articles in such entry would have received duty-free treatment if they had satisfied the requirements of § 10.843(a) and the applicable value-con- tent requirement set forth in § 10.844(a) of this subpart;
(2) A declaration of compliance with the increased value-content percentage
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is submitted to CBP within 30 days fol- lowing the end of the applicable one- year period during which the increased percentage is met (see § 10.844(a)(4)(v) of this subpart); and
(3) A request for liquidation or re- liquidation with respect to such entry is filed with CBP before the 90th day after CBP determines and notifies the importer that the apparel articles of the producer or entity controlling pro- duction satisfy the increased value- content percentage set forth in § 10.844(a)(4)(iii) of this subpart during that applicable one-year period.
Example. A Haitian producer of articles that meet the description in § 10.843(a) of this subpart begins exporting those articles to the United States during the initial applica- ble one-year period and elects to use the an- nual aggregation method for purposes of meeting the applicable value-content re- quirement. The articles entered during that initial period meet a value-content percent- age of 48%, while articles entered during the second applicable one-year period meet a value-content percentage of 62%. The pro- ducer’s articles may not receive duty-free treatment during the initial applicable one- year period because the requisite 50% value- content requirement was not met. The pro- ducer’s articles also are ineligible for duty- free treatment during the second applicable one-year period because the 50% value-con- tent requirement was not met in the imme- diately preceding period (the initial applica- ble one-year period). However, because the producer’s articles entered during the second applicable one-year period satisfy the in- creased value-content percentage require- ment (60%), the importer(s) of these articles may file a request for and receive a refund of the duties paid with respect to the articles entered during that period, assuming compli- ance with the conditions and requirements set forth in § 10.847 of this subpart. In addi- tion, the producer’s articles entered during the third applicable one-year period are eli- gible for duty-free treatment based on com- pliance with the increased value-content per- centage in the second applicable one-year pe- riod.
§ 10.846 Imported directly. (a) General. To be eligible for duty-
free treatment under this subpart, an article must be imported directly from Haiti into the customs territory of the United States. For purposes of this re- quirement, the words ‘‘imported di- rectly’’ mean:
(1) Direct shipment from Haiti to the United States without passing through
the territory of any intermediate coun- try;
(2) If shipment is from Haiti to the United States through the territory of an intermediate country, the articles in the shipment do not enter into the commerce of the intermediate country and the invoices, bills of lading, and other shipping documents show the United States as the final destination; or
(3) If shipment is through an inter- mediate country and the invoices and other documents do not show the United States as the final destination, the articles in the shipment are im- ported directly only if they:
(i) Remained under the control of the customs authority in the intermediate country;
(ii) Did not enter into the commerce of the intermediate country except for the purpose of a sale other than at re- tail, provided that the articles are im- ported as a result of the original com- mercial transaction between the im- porter and the producer or the pro- ducer’s sales agent; and
(iii) Have not been subjected to oper- ations other than loading and unload- ing, and other activities necessary to preserve the articles in good condition.
(b) Documentary evidence. An im- porter making a claim for duty-free treatment under § 10.847 of this subpart may be required to demonstrate, to CBP’s satisfaction, that the articles were ‘‘imported directly’’ as that term is defined in paragraph (a) of this sec- tion. An importer may demonstrate compliance with this section by sub- mitting documentary evidence. Such evidence may include, but is not lim- ited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
§ 10.847 Filing of claim for duty-free treatment.
(a) General. An importer may make a claim for duty-free treatment for an article described in § 10.843 of this sub- part by including on the entry sum- mary, or equivalent documentation, the applicable subheading within Sub- chapter XX of Chapter 98 of the HTSUS under which the article is classified, or by the method specified for equivalent
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reporting via an authorized electronic data interchange system. The applica- ble subheadings within Subchapter XX, Chapter 98, HTSUS, are as follows:
(1) Subheading 9820.61.25 for apparel articles described in § 10.843(a) of this subpart for which the individual entry method is used for purposes of meeting the applicable value-content require- ment set forth in § 10.844(a) of this sub- part;
(2) Subheading 9820.61.30 for apparel articles described in § 10.843(a) of this subpart for which the annual aggrega- tion method is used for purposes of meeting the applicable value-content requirement set forth in § 10.844(a) of this subpart;
(3) Subheading 9820.62.05 for apparel articles described in § 10.843(b) of this subpart;
(4) Subheading 9820.62.12 for bras- sieres described in § 10.843(c) of this subpart;
(5) Subheading 9820.61.35 for apparel articles described in § 10.843(d) of this subpart;
(6) Subheading 9820.61.40 for apparel articles described in § 10.843(e) of this subpart;
(7) Subheading 9820.42.05 for articles described in § 10.843(f) of this subpart;
(8) Subheading 9820.65.05 for articles described in § 10.843(g) of this subpart;
(9) Subheading 9820.62.20 for articles described in § 10.843(h) of this subpart;
(10) Subheading 9820.62.25 for articles described in § 10.843(i) of this subpart;
(11) Subheading 9820.62.30 for articles described in § 10.843(j) of this subpart; and
(12) Subheading 9820.85.44 for wiring sets described in § 10.843(k) of this sub- part.
(b) Restriction on claims submitted under subheading 9820.61.30, HTSUS. An importer may make a claim for duty- free treatment under subheading 9820.61.30, HTSUS, for apparel articles described in § 10.843(a) of this subpart for which the annual aggregation method is used, only if the importer has a copy of a certification by the pro- ducer or entity controlling production setting forth its election to use the an- nual aggregation method for its arti- cles (see § 10.848(c)(3) of this subpart). In the absence of receipt of such certifi- cation from the producer or entity con-
trolling production, an importer of ar- ticles described in § 10.843(a) of this sub- part for which duty-free treatment is sought under this subpart must enter the articles under subheading 9820.61.25, HTSUS.
(c) Corrected claim. If, after making a claim for duty-free treatment under paragraph (a) of this section, the im- porter has reason to believe that the claim is incorrect, the importer must promptly make a corrected claim and pay any duties that may be due. A cor- rected claim will be effected by submis- sion of a letter or other written state- ment to the CBP port where the claim was originally filed.
[CBP Dec. 07–43, 72 FR 34369, June 22, 2007, as amended at CBP Dec. 08-24, 73 FR 56728, Sept. 30, 2008]
§ 10.848 Declaration of compliance. (a) General. Each importer claiming
duty-free treatment for apparel arti- cles, as described in § 10.843(a) of this subpart, of a producer or entity con- trolling production that uses the an- nual aggregation method to satisfy the applicable value-content requirement set forth in § 10.844(a) of this subpart with respect to the entries filed by the importer during an applicable one-year period must prepare and submit to CBP a declaration of compliance with the applicable value-content requirement within 30 days following the end of the applicable one-year period. An im- porter that is required to submit a dec- laration of compliance under this para- graph must submit such a declaration for each importer of record identifica- tion number used by that importer. The declaration of compliance must be sent to: Office of International Trade, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229.
(b) Effect of noncompliance—(1) Initial applicable one-year period. If an im- porter fails to submit to CBP the dec- laration of compliance required under paragraph (a) of this section within 30 days following the end of the initial ap- plicable one-year period, CBP may deny duty-free treatment to all entries of apparel articles, as described in § 10.843(a), of that producer or entity controlling production that were filed by that importer during the initial ap- plicable one-year period and that are
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entered by that importer during the next succeeding applicable one-year pe- riod.
(2) Other applicable one-year periods. If an importer fails to submit to CBP the declaration of compliance required by paragraph (a) of this section within 30 days following the end of any applica- ble one-year period (other than the ini- tial applicable one-year period), CBP may deny duty-free treatment to all entries of apparel articles, as described in § 10.843(a) of this subpart, of that producer or entity controlling produc- tion that are entered by that importer during the next succeeding applicable one-year period.
(c) Contents. A declaration of compli- ance submitted to CBP under para- graph (a) of this section:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The applicable one-year period during which the aggregation method was used (year beginning December 20, 20l, year ending December 19, 20n( �
(ii) The legal name, address, tele- phone, fax number, e-mail address (if any), and identification number of the importer of record, and the legal name, telephone, and e-mail address (if any) of the point of contact;
(iii) With respect to each entry for which duty-free treatment is claimed for apparel articles described in § 10.843(a) of this subpart and for which the aggregation method is used, the entry number, line number(s), port of entry, and line value;
(iv) If the producer or entity control- ling production elects to include in the aggregation calculation entries of bras- sieres receiving duty-free treatment under § 10.843(c) of this subpart and en- tries of apparel articles that are wholly assembled or knit-to-shape in Haiti and that are receiving preferential tariff treatment under any provision of law other than section 213A of the CBERA or are subject to the rate of duty in the ‘‘General’’ subcolumn of column 1 of the HTSUS (see § 10.844(a)(2)(iii)(B) and (C) of this subpart), the entry number, line number(s), port of entry, line
value, name and address of the pro- ducer(s), and, if applicable, name and address of the entity controlling pro- duction;
(v) The value-content percentage that was met during the applicable one-year period with respect to each producer or entity controlling produc- tion;
(vi) The name and title of the person who prepared the declaration of com- pliance. The declaration must be pre- pared and signed by a responsible offi- cial of the importer or by the import- er’s authorized agent having knowledge of the relevant facts;
(vii) Signature of the person who pre- pared the declaration of compliance; and
(viii) Date the declaration of compli- ance was prepared and signed; and
(3) Must include as an attachment to the declaration a copy of a certifi- cation from each producer or entity controlling production setting forth its election to use the annual aggregation method, a description of the classes or kinds of apparel articles involved, and the name and address of each producer or entity controlling production.
§ 10.849 Importer obligations. (a) General. An importer who makes a
claim for duty-free treatment under § 10.847 of this subpart for an article de- scribed in § 10.843 of this subpart:
(1) Will be deemed to have certified that the article is eligible for duty-free treatment under this subpart;
(2) Is responsible for the truthfulness of the statements and information con- tained in the declaration of compli- ance, if that document is required to be submitted to CBP pursuant to §§ 10.844(a)(4)(v) or 10.848(a) of this sub- part; and
(3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the in- formation contained in those docu- ments. When requested, CBP may ar- range for the direct submission by the exporter, producer, or entity control- ling production of business confidential or other sensitive information, includ- ing cost and sourcing information.
(b) Information provided by exporter, producer, or entity controlling production. The fact that the importer has made a
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claim for duty-free treatment or pre- pared a declaration of compliance based on information provided by an exporter, producer, or entity control- ling production will not relieve the im- porter of the responsibility referred to in paragraph (a) of this section.
§ 10.850 Verification of claim for duty- free treatment.
(a) General. A claim for duty-free treatment made under § 10.847 of this subpart, including any declaration of compliance or other information sub- mitted to CBP in support of the claim, will be subject to whatever verification CBP deems necessary. In the event that CBP is provided with insufficient information to verify or substantiate the claim, including the statements and information contained in a dec- laration of compliance (if required under § 10.844(a)(4)(v) or § 10.848(a) of this subpart), CBP may deny the claim for duty-free treatment.
(b) Documentation and information subject to verification. A verification of a claim for duty-free treatment under § 10.847 of this subpart may involve, but need not be limited to, a review of:
(1) All records required to be made, kept, and made available to CBP by the importer, the producer, the entity con- trolling production, or any other per- son under part 163 of this chapter; and
(2) The documentation and informa- tion set forth in paragraphs (b)(2)(i) through (b)(2)(v) of this section, when requested by CBP. This documentation and information may be made avail- able to CBP by the importer or the im- porter may arrange to have the docu- mentation and information made avail- able to CBP directly by the exporter, producer, or entity controlling produc- tion:
(i) Documentation and other infor- mation regarding all apparel articles that meet the requirements specified in § 10.843(a) of this subpart that were exported to the United States and that were entered during the applicable one- year period, whether or not a claim for duty-free treatment was made under § 10.847 of this subpart. Those records and other information include, but are not limited to, work orders and other production records, purchase orders,
invoices, bills of lading and other ship- ping documents;
(ii) Records to document the cost of all yarn, fabric, fabric components, and knit-to-shape components that were used in the production of the articles in question, such as purchase orders, invoices, bills of lading and other ship- ping documents, and customs import and clearance documents, work orders and other production records, and in- ventory control records;
(iii) Records to document the direct costs of processing operations per- formed in Haiti or one or more eligible countries described in § 10.844(c) of this subpart, such as direct labor and fringe expenses, machinery and tooling costs, factory expenses, and testing and in- spection expenses that were incurred in production;
(iv) Affidavits or statements of origin that certify who manufactured the yarn, fabric, fabric components and knit-to-shape components. The affi- davit or statement of origin should in- clude a product description, name and address of the producer, and the date the articles were produced. An affidavit for fabric components should state whether or not subassembly operations occurred; and
(v) Summary accounting and finan- cial records which relate to the source records provided for in paragraphs (b)(2)(i) through (b)(2)(iii) of this sec- tion.
Subpart P—United States-Oman Free Trade Agreement
SOURCE: CBP Dec. 11-01, 76 FR 701, Jan. 6, 2011, unless otherwise noted.
GENERAL PROVISIONS
§ 10.861 Scope.
This subpart implements the duty preference and related customs provi- sions applicable to imported goods under the United States-Oman Free Trade Agreement (the OFTA) signed on January 19, 2006, and under the United States-Oman Free Trade Agreement Implementation Act (the Act; 120 Stat. 1191). Except as otherwise specified in this subpart, the procedures and other requirements set forth in this subpart
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are in addition to the customs proce- dures and requirements of general ap- plication contained elsewhere in this chapter. Additional provisions imple- menting certain aspects of the OFTA and the Act are contained in Parts 24, 162, and 163 of this chapter.
§ 10.862 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the OFTA to an originating good or other good specified in the OFTA, and to an exemption from the mer- chandise processing fee;
(b) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, but does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of the GATT 1994, in respect of like, directly competitive, or substitut- able goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty; and
(3) Fee or other charge in connection with importation;
(c) Days. ‘‘Days’’ means calendar days;
(d) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned or con- trolled, including any corporation, trust, partnership, sole proprietorship, joint venture, association, or similar organization;
(e) Foreign material. ‘‘Foreign mate- rial’’ means a material other than a material produced in the territory of one or both of the Parties;
(f) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and
Trade 1994, which is part of the WTO Agreement;
(g) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(h) Harmonized System. ‘‘Harmonized System (HS)’’ means the Harmonized Commodity Description and Coding Sys- tem, including its General Rules of In- terpretation, Section Notes, and Chap- ter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(i) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(j) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(k) Originating. ‘‘Originating’’ means a good qualifying under the rules of or- igin set forth in General Note 31, HTSUS, and OFTA Chapter Three (Tex- tiles and apparel) or Chapter Four (Rules of Origin);
(l) Party. ‘‘Party’’ means the United States or the Sultanate of Oman;
(m) Person. ‘‘Person’’ means a nat- ural person or an enterprise;
(n) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable under the OFTA to an originating good and an exemp- tion from the merchandise processing fee;
(o) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(p) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement;
(q) Territory. ‘‘Territory’’ means: (1) With respect to Oman, all the
lands of Oman within its geographical boundaries, the internal waters, mari- time areas including the territorial sea, and airspace under its sovereignty, and the exclusive economic zone and continental shelf where Oman exercises sovereign rights and jurisdiction in ac- cordance with its domestic law and international law, including the United Nations Convention on the Law of the Sea; and
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(2) With respect to the United States, (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico,
(ii) The foreign trade zones located in the United States and Puerto Rico, and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources; and
(r) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.863 Filing of claim for preferential tariff treatment upon importation.
An importer may make a claim for OFTA preferential tariff treatment for an originating good by including on the entry summary, or equivalent docu- mentation, the symbol ‘‘OM’’ as a pre- fix to the subheading of the HTSUS under which each qualifying good is classified, or by the method specified for equivalent reporting via an author- ized electronic data interchange sys- tem.
§ 10.864 Declaration. (a) Contents. An importer who claims
preferential tariff treatment for a good under the OFTA must submit to CBP, at the request of the port director, a declaration setting forth all pertinent information concerning the growth, production, or manufacture of the good. A declaration submitted to CBP under this paragraph:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and e-mail address (if any) of the importer of record of the good;
(ii) The legal name, address, tele- phone, and e-mail address (if any) of the responsible official or authorized agent of the importer signing the dec-
laration (if different from the informa- tion required by paragraph (a)(2)(i) of this section);
(iii) The legal name, address, tele- phone and e-mail address (if any) of the exporter of the good (if different from the producer);
(iv) The legal name, address, tele- phone and e-mail address (if any) of the producer of the good (if known);
(v) A description of the good, which must be sufficiently detailed to relate it to the invoice and HS nomenclature, including quantity, numbers, invoice numbers, and bills of lading;
(vi) A description of the operations performed in the growth, production, or manufacture of the good in territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations;
(vii) A description of any materials used in the growth, production, or manufacture of the good that are whol- ly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such ma- terials;
(viii) A description of the operations performed on, and a statement as to the origin and value of, any materials used in the article that are claimed to have been sufficiently processed in the territory of one or both of the Parties so as to be materials produced in one or both of the Parties, or are claimed to have undergone an applicable change in tariff classification specified in General Note 31(h), HTSUS; and
(ix) A description of the origin and value of any foreign materials used in the good that have not been substan- tially transformed in the territory of one or both of the Parties, or have not undergone an applicable change in tar- iff classification specified in General Note 31(h), HTSUS;
(3) Must include a statement, in sub- stantially the following form: ‘‘I cer- tify that:
The information on this document is true and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
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The goods comply with all the require- ments for preferential tariff treatment speci- fied for those goods in the United States- Oman Free Trade Agreement; and
This document consists of lll pages, in- cluding all attachments.’’
(b) Responsible official or agent. The declaration must be signed and dated by a responsible official of the im- porter or by the importer’s authorized agent having knowledge of the relevant facts.
(c) Language. The declaration must be completed in the English language.
(d) Applicability of declaration. The declaration may be applicable to:
(1) A single importation of a good into the United States, including a sin- gle shipment that results in the filing of one or more entries and a series of shipments that results in the filing of one entry; or
(2) Multiple importations of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the declaration. For purposes of this para- graph, ‘‘identical goods’’ means goods that are the same in all respects rel- evant to the production that qualifies the goods for preferential tariff treat- ment.
§ 10.865 Importer obligations. (a) General. An importer who makes a
claim for preferential tariff treatment under § 10.863 of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the OFTA;
(2) Is responsible for the truthfulness of the information and data contained in the declaration provided for in § 10.864 of this subpart; and
(3) Is responsible for submitting any supporting documents requested by CBP and for the truthfulness of the in- formation contained in those docu- ments. CBP will allow for the direct submission by the exporter or producer of business confidential or other sen- sitive information, including cost and sourcing information.
(b) Information provided by exporter or producer. The fact that the importer has made a claim for preferential tariff treatment or prepared a declaration based on information provided by an
exporter or producer will not relieve the importer of the responsibility re- ferred to in paragraph (a) of this sec- tion.
§ 10.866 Declaration not required.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, an importer will not be required to sub- mit a declaration under § 10.864 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section may reasonably be considered to have been carried out or planned for the purpose of evading compliance with the rules and procedures governing claims for preference under the OFTA, the port director will notify the importer that for that importation the importer must submit to CBP a declaration. The im- porter must submit such a declaration within 30 days from the date of the no- tice. Failure to timely submit the dec- laration will result in denial of the claim for preferential tariff treatment.
§ 10.867 Maintenance of records.
(a) General. An importer claiming preferential tariff treatment for a good under § 10.863 of this subpart must maintain, for five years after the date of the claim for preferential tariff treatment, all records and documents necessary for the preparation of the declaration.
(b) Applicability of other recordkeeping requirements. The records and docu- ments referred to in paragraph (a) of this section are in addition to any other records required to be made, kept, and made available to CBP under Part 163 of this chapter.
(c) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
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§ 10.868 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete declaration under § 10.864 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential treat- ment to a good if the good is shipped through or transshipped in the terri- tory of a country other than a Party, and the importer of the good does not provide, at the request of the port di- rector, evidence demonstrating to the satisfaction of the port director that the good was imported directly from the territory of a Party into the terri- tory of the other Party (see § 10.880 of this subpart).
POST-IMPORTATION DUTY REFUND CLAIMS
§ 10.869 Right to make post-importa- tion claim and refund duties.
Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential treatment was made, the importer of that good may file a claim for a refund of any ex- cess duties at any time within one year after the date of importation of the good in accordance with the procedures set forth in § 10.870 of this subpart. Sub- ject to the provisions of § 10.868 of this subpart, CBP may refund any excess duties by liquidation or reliquidation of the entry covering the good in ac- cordance with § 10.871(c) of this part.
§ 10.870 Filing procedures. (a) Place of filing. A post-importation
claim for a refund under § 10.869 of this subpart must be filed with the director of the port at which the entry covering the good was filed.
(b) Contents of claim. A post-importa- tion claim for a refund must be filed by presentation of the following:
(1) A written declaration stating that the good qualified as an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good;
(2) A written statement indicating whether or not the importer of the good provided a copy of the entry sum- mary or equivalent documentation to any other person. If such documenta- tion was provided, the statement must identify each recipient by name, CBP identification number and address and must specify the date on which the documentation was provided; and
(3) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such pro- test has been filed, the statement must identify the protest by number and date.
§ 10.871 CBP processing procedures. (a) Status determination. After receipt
of a post-importation claim under § 10.870 of this subpart, the port direc- tor will determine whether the entry covering the good has been liquidated and, if liquidation has taken place, whether the liquidation has become final.
(b) Pending protest or judicial review. If the port director determines that any protest relating to the good has not been finally decided, the port director will suspend action on the claim for re- fund filed under this subpart until the decision on the protest becomes final. If a summons involving the tariff clas- sification or dutiability of the good is filed in the Court of International Trade, the port director will suspend action on the claim for refund filed under this subpart until judicial review has been completed.
(c) Allowance of claim. (1) Unliquidated entry. If the port director determines that a claim for a refund filed under this subpart should be allowed and the entry covering the good has not been liquidated, the port director will take into account the claim for a refund under this subpart in connection with the liquidation of the entry.
(2) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be allowed and the entry covering the
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good has been liquidated, whether or not the liquidation has become final, the entry must be reliquidated in order to effect a refund of duties pursuant to this subpart. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, the port director will reliquidate the entry taking into ac- count the claim for refund under this subpart.
(d) Denial of claim. (1) General. The port director may deny a claim for a refund filed under § 10.870 of this sub- part if the claim was not filed timely, if the importer has not complied with the requirements of § 10.868 and § 10.870 of this subpart, or if, following an ori- gin verification under § 10.887 of this subpart, the port director determines either that the imported good did not qualify as an originating good at the time of importation or that a basis ex- ists upon which preferential tariff treatment may be denied under § 10.887 of this subpart.
(2) Unliquidated entry. If the port di- rector determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has not been liquidated, the port direc- tor will deny the claim in connection with the liquidation of the entry, and notice of the denial and the reason for the denial will be provided to the im- porter in writing or via an authorized electronic data interchange system.
(3) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has been liquidated, whether or not the liquidation has become final, the claim may be denied without reliquidation of the entry. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, such reliquidation may include denial of the claim filed under this subpart. In either case, the port di- rector will give the importer notice of the denial and the reason for the denial in writing or via an authorized elec- tronic data interchange system.
RULES OF ORIGIN
§ 10.872 Definitions.
For purposes of §§ 10.872 through 10.880:
(a) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(b) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These standards may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(c) Good. ‘‘Good’’ means any mer- chandise, product, article, or material;
(d) Goods wholly the growth, product, or manufacture of one or both of the Par- ties. ‘‘Goods wholly the growth, prod- uct, or manufacture of one or both of the Parties’’ means:
(1) Mineral goods extracted in the territory of one or both of the Parties;
(2) Vegetable goods, as such goods are defined in the HTSUS, harvested in the territory of one or both of the Parties;
(3) Live animals born and raised in the territory of one or both of the Par- ties;
(4) Goods obtained from live animals raised in the territory of one or both of the Parties;
(5) Goods obtained from hunting, trapping, or fishing in the territory of one or both of the Parties;
(6) Goods (fish, shellfish, and other marine life) taken from the sea by ves- sels registered or recorded with a Party and flying its flag;
(7) Goods produced from goods re- ferred to in paragraph (d)(6) of this sec- tion on board factory ships registered or recorded with that Party and flying its flag;
(8) Goods taken by a Party or a per- son of a Party from the seabed or be- neath the seabed outside territorial waters, provided that a Party has rights to exploit such seabed;
(9) Goods taken from outer space, provided they are obtained by a Party
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or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Production or manufacture in the
territory of one or both of the Parties, or
(ii) Used goods collected in the terri- tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(11) Recovered goods derived in the territory of a Party from used goods, and utilized in the territory of that Party in the production of remanufac- tured goods; and
(12) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in para- graphs (d)(1) through (d)(10) of this sec- tion, or from their derivatives, at any stage of production;
(e) Importer. ‘‘Importer’’ means a per- son who imports goods into the terri- tory of a Party;
(f) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the growth, production, manufacture, testing, or inspection of a good but not physically incorporated into the good, or a good used in the maintenance of buildings or the operation of equipment associated with the growth, production, or manu- facture of a good, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
(4) Lubricants, greases, compounding materials, and other materials used in the growth, production, or manufac- ture of a good or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but the use of which in the growth, production, or manufacture of the good can reason- ably be demonstrated to be a part of that growth, production, or manufac- ture;
(g) Material. ‘‘Material’’ means a good, including a part or ingredient, that is used in the growth, production, or manufacture of another good that is
a new or different article of commerce that has been grown, produced, or man- ufactured in one or both of the Parties;
(h) Material produced in the territory of one or both of the Parties. ‘‘Material pro- duced in the territory of one or both of the Parties’’ means a good that is ei- ther wholly the growth, product, or manufacture of one or both of the Par- ties, or a new or different article of commerce that has been grown, pro- duced, or manufactured in the terri- tory of one or both of the Parties;
(i) New or different article of commerce. ‘‘New or different article of commerce’’ means, except as provided in § 10.873(c) of this subpart, a good that:
(1) Has been substantially trans- formed from a good or material that is not wholly the growth, product, or manufacture of one of both of the Par- ties; and
(2) Has a new name, character, or use distinct from the good or material from which it was transformed;
(j) Non-originating material. ‘‘Non- originating material’’ means a mate- rial that does not qualify as origi- nating under this subpart or General Note 31, HTSUS;
(k) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(l) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that result from:
(1) The disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing of those parts as necessary for improvement to sound working condition;
(m) Remanufactured good. ‘‘Remanu- factured good’’ means an industrial good that is assembled in the territory of a Party and that:
(1) Is entirely or partially comprised of recovered goods;
(2) Has a similar life expectancy to a like good that is new; and
(3) Enjoys the factory warranty simi- lar to that of a like good that is new;
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(n) Simple combining or packaging oper- ations. ‘‘Simple combining or pack- aging operations’’ means operations such as adding batteries to electronic devices, fitting together a small num- ber of components by bolting, gluing, or soldering, and repacking or pack- aging components together; and
(o) Substantially transformed. ‘‘Sub- stantially transformed’’ means, with respect to a good or material, changed as the result of a manufacturing or processing operation so that the good loses its separate identity in the manu- facturing or processing operation and:
(1) The good or material is converted from a good that has multiple uses into a good or material that has limited uses;
(2) The physical properties of the good or material are changed to a sig- nificant extent; or
(3) The operation undergone by the good or material is complex by reason of the number of different processes and materials involved and the time and level of skill required to perform those processes.
§ 10.873 Originating goods. (a) General. A good will be considered
an originating good under the OFTA when imported directly from the terri- tory of a Party into the territory of the other Party only if:
(1) The good is wholly the growth, product, or manufacture of one or both of the Parties;
(2) The good is a new or different ar- ticle of commerce, as defined in § 10.872(i) of this subpart, that has been grown, produced, or manufactured in the territory of one or both of the Par- ties, is provided for in a heading or sub- heading of the HTSUS that is not cov- ered by the product-specific rules set forth in General Note 31(h), HTSUS, and meets the value-content require- ment specified in paragraph (b) of this section; or
(3) The good is provided for in a head- ing or subheading of the HTSUS cov- ered by the product-specific rules set forth in General Note 31(h), HTSUS, and:
(i)(A) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in Gen-
eral Note 31(h), HTSUS, as a result of production occurring entirely in the territory of one or both of the Parties; or
(B) The good otherwise satisfies the requirements specified in General Note 31(h), HTSUS; and
(ii) The good meets any other re- quirements specified in General Note 31, HTSUS.
(b) Value-content requirement. A good described in paragraph (a)(2) of this section will be considered an origi- nating good under the OFTA only if the sum of the value of materials pro- duced in one or both of the Parties, plus the direct costs of processing oper- ations performed in one or both of the Parties, is not less than 35 percent of the appraised value of the good at the time the good is entered into the terri- tory of the United States.
(c) Combining, packaging, and diluting operations. For purposes of this sub- part, a good will not be considered a new or different article of commerce by virtue of having undergone simple combining or packaging operations, or mere dilution with water or another substance that does not materially alter the characteristics of the good. The principles and examples set forth in § 10.195(a)(2) of this part will apply equally for purposes of this paragraph.
§ 10.874 Textile or apparel goods. (a) De minimis. (1) General. Except as
provided in paragraph (a)(2) of this sec- tion, a textile or apparel good that is not an originating good under the OFTA because certain fibers or yarns used in the production of the compo- nent of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 31(h), HTSUS, will be considered to be an originating good if the total weight of all such fibers or yarns is not more than seven percent of the total weight of that component.
(2) Exception. A textile or apparel good containing elastomeric yarns in the component of the good that deter- mines the tariff classification of the good will be considered to be an origi- nating good only if such yarns are wholly formed in the territory of a Party.
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(b) Textile or apparel goods put up in sets. Notwithstanding the specific rules specified in General Note 31(h), HTSUS, textile or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Inter- pretation 3, HTSUS, will not be consid- ered to be originating goods under the OFTA unless each of the goods in the set is an originating good or the total value of the non-originating goods in the set does not exceed ten percent of the appraised value of the set.
§ 10.875 Accumulation. (a) An originating good or material
produced in the territory of one or both of the Parties that is incorporated into a good in the territory of the other Party will be considered to originate in the territory of the other Party.
(b) A good that is grown, produced, or manufactured in the territory of one or both of the Parties by one or more pro- ducers is an originating good if the good satisfies the requirements of § 10.873 of this subpart and all other ap- plicable requirements of General Note 31, HTSUS.
§ 10.876 Value of materials. (a) General. For purposes of § 10.873(b)
of this subpart and, except as provided in paragraph (b) of this section, the value of a material produced in the ter- ritory of one or both of the Parties in- cludes the following:
(1) The price actually paid or payable for the material by the producer of the good;
(2) The freight, insurance, packing and all other costs incurred in trans- porting the material to the producer’s plant, if such costs are not included in the price referred to in paragraph (a)(1) of this section;
(3) The cost of waste or spoilage re- sulting from the use of the material in the growth, production, or manufac- ture of the good, less the value of re- coverable scrap; and
(4) Taxes or customs duties imposed on the material by one or both of the Parties, if the taxes or customs duties are not remitted upon exportation from the territory of a Party.
(b) Exception. If the relationship be- tween the producer of a good and the seller of a material influenced the price
actually paid or payable for the mate- rial, or if there is no price actually paid or payable by the producer for the material, the value of the material pro- duced in the territory of one or both of the Parties includes the following:
(1) All expenses incurred in the growth, production, or manufacture of the material, including general ex- penses;
(2) A reasonable amount for profit; and
(3) The freight, insurance, packing, and all other costs incurred in trans- porting the material to the producer’s plant.
§ 10.877 Direct costs of processing op- erations.
(a) Items included. For purposes of § 10.873(b) of this subpart, the words ‘‘direct costs of processing operations’’, with respect to a good, mean those costs either directly incurred in, or that can be reasonably allocated to, the growth, production, or manufac- ture of the good in the territory of one or both of the Parties. Such costs in- clude, to the extent they are includable in the appraised value of the good when imported into a Party, the following:
(1) All actual labor costs involved in the growth, production, or manufac- ture of the specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel;
(2) Tools, dies, molds, and other indi- rect materials, and depreciation on machinery and equipment that are al- locable to the specific good;
(3) Research, development, design, engineering, and blueprint costs, to the extent that they are allocable to the specific good;
(4) Costs of inspecting and testing the specific good; and
(5) Costs of packaging the specific good for export to the territory of the other Party.
(b) Items not included. For purposes of § 10.873(b) of this subpart, the words ‘‘direct costs of processing operations’’ do not include items that are not di- rectly attributable to the good or are not costs of growth, production, or manufacture of the good. These in- clude, but are not limited to:
(1) Profit; and
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(2) General expenses of doing business that are either not allocable to the good or are not related to the growth, production, or manufacture of the good, such as administrative salaries, casualty and liability insurance, adver- tising, and salesmen’s salaries, com- missions, or expenses.
§ 10.878 Packaging and packing mate- rials and containers for retail sale and for shipment.
Packaging materials and containers in which a good is packaged for retail sale and packing materials and con- tainers for shipment are to be dis- regarded in determining whether a good qualifies as an originating good under § 10.873 of this subpart and Gen- eral Note 31, HTSUS, except that the value of such packaging and packing materials and containers may be in- cluded in meeting the value-content re- quirement specified in § 10.873(b) of this subpart.
§ 10.879 Indirect materials. Indirect materials are to be dis-
regarded in determining whether a good qualifies as an originating good under § 10.873 of this subpart and Gen- eral Note 31, HTSUS, except that the cost of such indirect materials may be included in meeting the value-content requirement specified in § 10.873(b) of this subpart.
§ 10.880 Imported directly. (a) General. To qualify as an origi-
nating good under the OFTA, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac- turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the
good in good condition or to transport the good to the territory of a Party. Operations that may be performed out- side the territories of the Parties in- clude inspection, removal of dust that accumulates during shipment, ventila- tion, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aque- ous solutions, replacing damaged pack- ing materials and containers, and re- moval of units of the good that are spoiled or damaged and present a dan- ger to the remaining units of the good, or to transport the good to the terri- tory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under the OFTA for an originating good may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the territory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An importer may demonstrate compliance with this section by sub- mitting documentary evidence. Such evidence may include, but is not lim- ited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
TARIFF PREFERENCE LEVEL
§ 10.881 Filing of claim for tariff pref- erence level.
A cotton or man-made fiber apparel good described in § 10.882 of this subpart that does not qualify as an originating good under § 10.873 of this subpart may nevertheless be entitled to preferential tariff treatment under the OFTA under an applicable tariff preference level (TPL). To make a TPL claim, the im- porter must include on the entry sum- mary, or equivalent documentation, the applicable subheading in Chapter 99 of the HTSUS (9916.99.20) immediately above the applicable subheading in Chapter 61 or Chapter 62 of the HTSUS under which each non-originating cot- ton or man-made fiber apparel good is classified.
§ 10.882 Goods eligible for tariff pref- erence claims.
Cotton or man-made fiber apparel goods provided for in Chapters 61 or 62
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of the HTSUS that are cut or knit to shape, or both, and sewn or otherwise assembled in the territory of Oman from fabric or yarn produced or ob- tained outside the territory of Oman or the United States are eligible for a TPL claim filed under § 10.881 of this subpart (subject to the quantitative limitations set forth in U.S. Note 13, Subchapter XVI, Chapter 99, HTSUS).
§ 10.883 [Reserved]
§ 10.884 Declaration. (a) General. An importer who claims
preferential tariff treatment on a non- originating cotton or man-made fiber good specified in § 10.882 of this subpart must submit, at the request of the port director, a declaration supporting such a claim for preferential tariff treat- ment that sets forth all pertinent in- formation concerning the production of the good, including:
(1) A description of the good, quan- tity, invoice numbers, and bills of lad- ing;
(2) A description of the operations performed in the production of the good in the territory of one or both of the Parties;
(3) A statement as to any yarn or fab- ric of a non-Party and the origin of such materials used in the production of the good.
(b) Retention of records. An importer must retain all documents relied upon to prepare the declaration for a period of five years.
§ 10.885 Transshipment of non-origi- nating apparel goods.
(a) General. To qualify for pref- erential tariff treatment under an ap- plicable TPL, a good must be imported directly from the territory of a Party into the territory of the other Party. For purposes of this subpart, the words ‘‘imported directly’’ mean:
(1) Direct shipment from the terri- tory of a Party into the territory of the other Party without passing through the territory of a non-Party; or
(2) If the shipment passed through the territory of a non-Party, the good, upon arrival in the territory of a Party, will be considered to be ‘‘im- ported directly’’ only if the good did not undergo production, manufac-
turing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preserve the good in good condition or to transport the good to the territory of a Party. Operations that may be performed out- side the territories of the Parties in- clude inspection, removal of dust that accumulates during shipment, ventila- tion, spreading out or drying, chilling, replacing salt, sulfur dioxide, or aque- ous solutions, replacing damaged pack- ing materials and containers, and re- moval of units of the good that are spoiled or damaged and present a dan- ger to the remaining units of the good, or to transport the good to the terri- tory of a Party.
(b) Documentary evidence. An im- porter making a claim for preferential tariff treatment under an applicable TPL may be required to demonstrate, to CBP’s satisfaction, that the good was ‘‘imported directly’’ from the ter- ritory of a Party into the territory of the other Party, as that term is defined in paragraph (a) of this section. An im- porter may demonstrate compliance with this section by submitting docu- mentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, com- mercial invoices, receiving and inven- tory records, and customs entry and exit documents.
§ 10.886 Effect of non-compliance; fail- ure to provide documentation re- garding transshipment of non-origi- nating apparel goods.
(a) General. If an importer of a good for which a TPL claim is made fails to comply with any applicable require- ment under this subpart, the port di- rector may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to a good for which a TPL claim is made if the good is shipped through or transshipped in a country other than a Party, and the importer of the good does not provide, at the re- quest of the port director, evidence
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demonstrating to the satisfaction of the port director that the requirements set forth in § 10.885 of this subpart were met.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.887 Verification and justification of claim for preferential treatment.
(a) Verification. A claim for pref- erential treatment made under § 10.863 or § 10.870 of this subpart, including any declaration or other information sub- mitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is pro- vided with insufficient information to verify or substantiate the claim, the port director may deny the claim for preferential treatment.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.888 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment made under § 10.863 of this subpart should be denied, it will issue a determination in writing or via an authorized electronic data interchange system to the im- porter that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the export and import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 31, HTSUS, and in §§ 10.863 through 10.886 of this subpart, the legal basis for the deter- mination.
PENALTIES
§ 10.889 Violations relating to the OFTA.
All criminal, civil, or administrative penalties which may be imposed upon importers or other parties for viola- tions of the U.S. customs or related laws or regulations will also apply to importations subject to the OFTA.
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.890 Goods re-entered after repair or alteration in Oman.
(a) General. This section sets forth the rules that apply for purposes of ob- taining duty-free treatment on goods returned after repair or alteration in Oman as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Oman, whether or not pursu- ant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ren- ovation, cleaning, re-sterilizing, or other treatment which does not de- stroy the essential characteristics of, or create a new or commercially dif- ferent good from, the good exported from the United States.
(b) Goods not eligible for treatment. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Oman, are incomplete for their intended use and for which the processing operation performed in Oman constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of paragraphs (a), (b), and (c) of § 10.8 of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Oman after having been exported for repairs or alterations and which are claimed to be duty free.
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19 CFR Ch. I (4–1–12 Edition)§ 10.901
Subpart Q—United States-Peru Trade Promotion Agreement
SOURCE: 76 FR 68072, Nov. 3, 2011, unless otherwise noted.
GENERAL PROVISIONS
§ 10.901 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported and ex- ported goods under the United States- Peru Trade Promotion Agreement (the PTPA) signed on April 12, 2006, and under the United States-Peru Trade Promotion Agreement Implementation Act (the Act; Pub. L. 110–138, 121 Stat. 1455 (19 U.S.C. 3805 note). Except as oth- erwise specified in this subpart, the procedures and other requirements set forth in this subpart are in addition to the customs procedures and require- ments of general application contained elsewhere in this chapter. Additional provisions implementing certain as- pects of the PTPA and the Act are con- tained in Parts 24, 162, and 163 of this chapter.
§ 10.902 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treatment’’ means a claim that a good is entitled to the duty rate applicable under the PTPA to an originating good and to an exemption from the mer- chandise processing fee;
(b) Claim of origin. ‘‘Claim of origin’’ means a claim that a textile or apparel good is an originating good or satisfies the non-preferential rules of origin of a Party;
(c) Customs authority. ‘‘Customs au- thority’’ means the competent author- ity that is responsible under the law of a Party for the administration of cus- toms laws and regulations;
(d) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur-
charge in connection with such impor- tation, but, for purposes of imple- menting the PTPA, does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, di- rectly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty that is applied pursuant to a Par- ty’s domestic law; or
(3) Fee or other charge in connection with importation;
(e) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(f) Days. ‘‘Days’’ means calendar days;
(g) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for profit, and whether privately-owned or governmentally-owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association;
(h) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, which is part of the WTO Agreement;
(i) Harmonized System. ‘‘Harmonized System’’ means the Harmonized Com- modity Description and Coding System, including its General Rules of Interpre- tation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(j) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(k) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(l) Identical goods. ‘‘Identical goods’’ means goods that are the same in all respects relevant to the rule of origin that qualifies the goods as originating goods;
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(m) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the produc- tion, testing, or inspection of another good in the territory of one or both of the Parties but not physically incor- porated into that other good, or a good used in the maintenance of buildings or the operation of equipment associated with the production of another good in the territory of one or both of the Par- ties, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment or buildings;
(4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equip- ment or buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good; (7) Catalysts and solvents; and
(8) Any other goods that are not in- corporated into the other good but the use of which in the production of the other good can reasonably be dem- onstrated to be a part of that produc- tion;
(n) Originating. ‘‘Originating’’ means qualifying for preferential tariff treat- ment under the rules of origin set out in Chapter Four and Article 3.3 of the PTPA, and General Note 32, HTSUS;
(o) Party. ‘‘Party’’ means the United States or Peru;
(p) Person. ‘‘Person’’ means a natural person or an enterprise;
(q) Preferential tariff treatment. ‘‘Pref- erential tariff treatment’’ means the duty rate applicable under the PTPA to an originating good, and an exemp- tion from the merchandise processing fee;
(r) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(s) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’), which is part of the WTO Agreement, except for those goods listed in Annex 3–C of the PTPA;
(t) Territory. ‘‘Territory’’ means:
(1) With respect to Peru, the conti- nental territory, the islands, the mari- time areas and the air space above them, in which Peru exercises sov- ereignty and jurisdiction or sovereign rights in accordance with its domestic law and international law;
(2) With respect to the United States: (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico;
(ii) The foreign trade zones located in the United States and Puerto Rico; and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural re- sources;
(u) WTO. ‘‘WTO’’ means the World Trade Organization; and
(v) WTO Agreement. ‘‘WTO Agree- ment’’ means the Marrakesh Agreement Establishing the World Trade Organiza- tion of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.903 Filing of claim for preferential tariff treatment upon importation.
(a) Basis of claim. An importer may make a claim for PTPA preferential tariff treatment, including an exemp- tion from the merchandise processing fee, based on:
(1) A certification, as specified in § 10.904 of this subpart, that is prepared by the importer, exporter, or producer of the good; or
(2) The importer’s knowledge that the good is an originating good, includ- ing reasonable reliance on information in the importer’s possession that the good is an originating good.
(b) Making a claim. The claim is made by including on the entry summary, or equivalent documentation, the letters ‘‘PE’’ as a prefix to the subheading of the HTSUS under which each quali- fying good is classified, or by the meth- od specified for equivalent reporting via an authorized electronic data inter- change system.
(c) Corrected claim. If, after making the claim specified in paragraph (b) of this section, the importer has reason to
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believe that the claim is based on inac- curate information or is otherwise in- valid, the importer must, within 30 cal- endar days after the date of discovery of the error, correct the claim and pay any duties that may be due. The im- porter must submit a statement either in writing or via an authorized elec- tronic data interchange system to the CBP office where the original claim was filed specifying the correction (see §§ 10.931 and 10.933 of this subpart).
§ 10.904 Certification.
(a) General. An importer who makes a claim under § 10.903(b) of this subpart based on a certification by the im- porter, exporter, or producer that the good is originating must submit, at the request of the port director, a copy of the certification. The certification:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim;
(3) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and email address (if any) of the importer of record of the good, the ex- porter of the good (if different from the producer), and the producer of the good;
(ii) The legal name, address, tele- phone, and email address (if any) of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by para- graph (a)(3)(i) of this section);
(iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently de- tailed to relate it to the invoice and the HS nomenclature;
(iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classifica- tion rule for the good set forth in Gen- eral Note 32(n), HTSUS; and
(v) The applicable rule of origin set forth in General Note 32, HTSUS, under
which the good qualifies as an origi- nating good; and
(4) Must include a statement, in sub- stantially the following form:
I certify that: The information on this document is true
and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document;
I agree to maintain and present upon re- quest, documentation necessary to support these representations;
The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Peru Trade Promotion Agreement; and
This document consists of llll pages, including all attachments.
(b) Responsible official or agent. The certification provided for in paragraph (a) of this section must be signed and dated by a responsible official of the importer, exporter, or producer, or by the importer’s, exporter’s, or pro- ducer’s authorized agent having knowl- edge of the relevant facts.
(c) Language. The certification pro- vided for in paragraph (a) of this sec- tion must be completed in either the English or Spanish language. In the latter case, the port director may re- quire the importer to submit an English translation of the certifi- cation.
(d) Certification by the exporter or pro- ducer. A certification may be prepared by the exporter or producer of the good on the basis of:
(1) The exporter’s or producer’s knowledge that the good is originating; or
(2) In the case of an exporter, reason- able reliance on the producer’s certifi- cation that the good is originating.
(e) Applicability of certification. The certification provided for in paragraph (a) of this section may be applicable to:
(1) A single shipment of a good into the United States; or
(2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification.
(f) Validity of certification. A certifi- cation that is properly completed, signed, and dated in accordance with the requirements of this section will be
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accepted as valid for four years fol- lowing the date on which it was signed.
§ 10.905 Importer obligations. (a) General. An importer who makes a
claim for preferential tariff treatment under § 10.903(b) of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the PTPA;
(2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.904 of this subpart;
(3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the in- formation contained in those docu- ments. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the sub- mission of supporting documents, the importer will provide to CBP, or ar- range for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification.
(b) Information provided by exporter or producer. The fact that the importer has made a claim or submitted a cer- tification based on information pro- vided by an exporter or producer will not relieve the importer of the respon- sibility referred to in paragraph (a) of this section.
(c) Exemption from penalties. An im- porter will not be subject to civil or ad- ministrative penalties under 19 U.S.C. 1592 for making an incorrect claim for preferential tariff treatment or sub- mitting an incorrect certification, pro- vided that the importer promptly and voluntarily corrects the claim or cer- tification and pays any duty owing (see §§ 10.931 and 10.933 of this subpart).
§ 10.906 Certification not required. (a) General. Except as otherwise pro-
vided in paragraph (b) of this section, an importer will not be required to sub- mit a copy of a certification under § 10.904 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section is part of a series of importations carried out or planned for the purpose of evading compliance with the certification re- quirements of § 10.904 of this subpart, the port director will notify the im- porter that for that importation the importer must submit to CBP a copy of the certification. The importer must submit such a copy within 30 days from the date of the notice. Failure to time- ly submit a copy of the certification will result in denial of the claim for preferential tariff treatment.
§ 10.907 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good imported into the United States under § 10.903(b) of this subpart must main- tain, for a minimum of five years after the date of importation of the good, all records and documents that the im- porter has demonstrating that the good qualifies for preferential tariff treat- ment under the PTPA. These records are in addition to any other records that the importer is required to pre- pare, maintain, or make available to CBP under Part 163 of this chapter.
(b) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
§ 10.908 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete certification prepared in ac- cordance with § 10.904 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to an originating good if the good is shipped through or trans- shipped in a country other than a Party to the PTPA, and the importer
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of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the conditions set forth in § 10.925(a) of this subpart were met.
EXPORT REQUIREMENTS
§ 10.909 Certification for goods ex- ported to Peru.
(a) Submission of certification to CBP. Any person who completes and issues a certification for a good exported from the United States to Peru must provide a copy of the certification (or such other medium or format approved by the Peru customs authority for that purpose) to CBP upon request.
(b) Notification of errors in certifi- cation. Any person who completes and issues a certification for a good ex- ported from the United States to Peru and who has reason to believe that the certification contains or is based on in- correct information must promptly no- tify every person to whom the certifi- cation was provided of any change that could affect the accuracy or validity of the certification. Notification of an in- correct certification must also be given either in writing or via an authorized electronic data interchange system to CBP specifying the correction (see §§ 10.932 and 10.933 of this subpart).
(c) Maintenance of records—(1) Gen- eral. Any person who completes and issues a certification for a good ex- ported from the United States to Peru must maintain, for a period of at least five years after the date the certifi- cation was signed, all records and sup- porting documents relating to the ori- gin of a good for which the certifi- cation was issued, including the certifi- cation or copies thereof and records and documents associated with:
(i) The purchase, cost, and value of, and payment for, the good;
(ii) The purchase, cost, and value of, and payment for, all materials, includ- ing indirect materials, used in the pro- duction of the good; and
(iii) The production of the good in the form in which the good was ex- ported.
(2) Method of maintenance. The records referred to in paragraph (c) of
this section must be maintained as pro- vided in § 163.5 of this chapter.
(3) Availability of records. For pur- poses of determining compliance with the provisions of this part, the records required to be maintained under this section must be stored and made avail- able for examination and inspection by the port director or other appropriate CBP officer in the same manner as pro- vided in Part 163 of this chapter.
POST-IMPORTATION DUTY REFUND CLAIMS
§ 10.910 Right to make post-importa- tion claim and refund duties.
Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the pro- cedures set forth in § 10.911 of this sub- part. Subject to the provisions of § 10.908 of this subpart, CBP may refund any excess duties by liquidation or re- liquidation of the entry covering the good in accordance with § 10.912(c) of this subpart.
§ 10.911 Filing procedures. (a) Place of filing. A post-importation
claim for a refund must be filed with the director of the port at which the entry covering the good was filed.
(b) Contents of claim. A post-importa- tion claim for a refund must be filed by presentation of the following:
(1) A written declaration stating that the good was an originating good at the time of importation and setting forth the number and date of the entry or entries covering the good;
(2) A copy of a certification prepared in accordance with § 10.904 of this sub- part if a certification forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment;
(3) A written statement indicating whether the importer of the good pro- vided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so
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provided, the statement must identify each recipient by name, CBP identi- fication number, and address and must specify the date on which the docu- mentation was provided; and
(4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such pro- test has been filed, the statement must identify the protest by number and date.
§ 10.912 CBP processing procedures.
(a) Status determination. After receipt of a post-importation claim under § 10.911 of this subpart, the port direc- tor will determine whether the entry covering the good has been liquidated and, if liquidation has taken place, whether the liquidation has become final.
(b) Pending protest or judicial review. If the port director determines that any protest relating to the good has not been finally decided, the port director will suspend action on the claim filed under § 10.911 of this subpart until the decision on the protest becomes final. If a summons involving the tariff clas- sification or dutiability of the good is filed in the Court of International Trade, the port director will suspend action on the claim filed under § 10.911 of this subpart until judicial review has been completed.
(c) Allowance of claim. (1) Unliquidated entry. If the port director determines that a claim for a refund filed under § 10.911 of this subpart should be al- lowed and the entry covering the good has not been liquidated, the port direc- tor will take into account the claim for refund in connection with the liquida- tion of the entry.
(2) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under § 10.911 of this subpart should be allowed and the entry cov- ering the good has been liquidated, whether or not the liquidation has be- come final, the entry must be reliq- uidated in order to effect a refund of duties under this section. If the entry is otherwise to be reliquidated based on administrative review of a protest or as a result of judicial review, the port di- rector will reliquidate the entry taking
into account the claim for refund under § 10.911 of this subpart.
(d) Denial of claim. (1) General. The port director may deny a claim for a refund filed under § 10.911 of this sub- part if the claim was not filed timely, if the importer has not complied with the requirements of § 10.908 and 10.911 of this subpart, or if, following an origin verification under § 10.926 of this sub- part, the port director determines ei- ther that the imported good was not an originating good at the time of impor- tation or that a basis exists upon which preferential tariff treatment may be denied under § 10.926 of this subpart.
(2) Unliquidated entry. If the port di- rector determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has not been liquidated, the port direc- tor will deny the claim in connection with the liquidation of the entry, and notice of the denial and the reason for the denial will be provided to the im- porter in writing or via an authorized electronic data interchange system.
(3) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has been liquidated, whether or not the liquidation has become final, the claim may be denied without reliquidation of the entry. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, such reliquidation may include denial of the claim filed under this subpart. In either case, the port di- rector will provide notice of the denial and the reason for the denial to the im- porter in writing or via an authorized electronic data interchange system.
RULES OF ORIGIN
§ 10.913 Definitions. For purposes of §§ 10.913 through
10.925: (a) Adjusted value. ‘‘Adjusted value’’
means the value determined in accord- ance with Articles 1 through 8, Article 15, and the corresponding interpreta- tive notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude:
(1) Any costs, charges, or expenses in- curred for transportation, insurance
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and related services incident to the international shipment of the good from the country of exportation to the place of importation; and
(2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section;
(b) Class of motor vehicles. ‘‘Class of motor vehicles’’ means any one of the following categories of motor vehicles:
(1) Motor vehicles provided for in subheading 8701.20, 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 8705 or 8706, HTSUS, or motor vehicles for the transport of 16 or more persons provided for in subheading 8702.10 or 8702.90, HTSUS;
(2) Motor vehicles provided for in subheading 8701.10 or any of sub- headings 8701.30 through 8701.90, HTSUS;
(3) Motor vehicles for the transport of 15 or fewer persons provided for in subheading 8702.10 or 8702.90, HTSUS, or motor vehicles provided for in sub- heading 8704.21 or 8704.31, HTSUS; or
(4) Motor vehicles provided for in subheadings 8703.21 through 8703.90, HTSUS;
(c) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(d) Fungible good or material. ‘‘Fun- gible good or material’’ means a good or material, as the case may be, that is interchangeable with another good or material for commercial purposes and the properties of which are essentially identical to such other good or mate- rial;
(e) Generally Accepted Accounting Principles. ‘‘Generally Accepted Ac- counting Principles’’ means the recog- nized consensus or substantial authori- tative support in the territory of a Party, with respect to the recording of revenues, expenses, costs, assets, and liabilities, the disclosure of informa- tion, and the preparation of financial statements. These principles may en- compass broad guidelines of general ap- plication as well as detailed standards, practices, and procedures;
(f) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. ‘‘Goods wholly obtained or
produced entirely in the territory of one or both of the Parties’’ means:
(1) Plants and plant products har- vested or gathered in the territory of one or both of the Parties;
(2) Live animals born and raised in the territory of one or more of the Par- ties;
(3) Goods obtained in the territory of one or both of the Parties from live animals;
(4) Goods obtained from hunting, trapping, fishing, or aquaculture con- ducted in the territory of one or both of the Parties;
(5) Minerals and other natural re- sources not included in paragraphs (g)(1) through (g)(4) of this section that are extracted or taken in the territory of one or both of the Parties;
(6) Fish, shellfish, and other marine life taken from the sea, seabed, or sub- soil outside the territory of the Parties by:
(i) Vessels registered or recorded with Peru and flying its flag; or
(ii) Vessels documented under the laws of the United States;
(7) Goods produced on board factory ships from the goods referred to in aragraph (g)(6) of this section, if such factory ships are:
(i) Registered or recorded with Peru and fly its flag; or
(i) Documented under the laws of the United States;
(8) Goods taken by a Party or a per- son of a Party from the seabed or sub- soil outside territorial waters, if a Party has rights to exploit such seabed or subsoil;
(9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Manufacturing or processing oper-
ations in the territory of one or both of the Parties; or
(ii) Used goods collected in the terri- tory of one or both of the Parties, if such goods are fit only for the recovery of raw materials;
(11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the terri- tory of one or both of the Parties in the production of remanufactured goods; and
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(12) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in any of paragraphs (g)(1) through (g)(10) of this section, or from the derivatives of such goods, at any stage of production;
(h) Material. ‘‘Material’’ means a good that is used in the production of another good, including a part or an in- gredient;
(i) Model line. ‘‘Model line’’ means a group of motor vehicles having the same platform or model name;
(j) Net cost. ‘‘Net cost’’ means total cost minus sales promotion, mar- keting, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost;
(k) Non-allowable interest costs. ‘‘Non- allowable interest costs’’ means inter- est costs incurred by a producer that exceed 700 basis points above the appli- cable official interest rate for com- parable maturities of the Party in which the producer is located;
(l) Non-originating good or non-origi- nating material. ‘‘Non-originating good’’ or ‘‘non-originating material’’ means a good or material, as the case may be, that does not qualify as originating under General Note 32, HTSUS, or this subpart;
(m) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States, and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(n) Producer. ‘‘Producer’’ means a person who engages in the production of a good in the territory of a Party;
(o) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, raising, trapping, hunting, manufac- turing, processing, assembling, or dis- assembling a good;
(p) Reasonably allocate. ‘‘Reasonably allocate’’ means to apportion in a man- ner that would be appropriate under Generally Accepted Accounting Prin- ciples;
(q) Recovered goods. ‘‘Recovered goods’’ means materials in the form of individual parts that are the result of:
(1) The disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing that is necessary to improve such individual parts to sound working condition;
(r) Remanufactured good. ‘‘Remanu- factured good’’ means an industrial good assembled in the territory of one or both of the Parties that is classified in Chapter 84, 85, 87, or 90 or heading 9402, HTSUS, other than a good classi- fied in heading 8418 or 8516, HTSUS, and that:
(1) Is entirely or partially comprised of recovered goods; and
(2) Has a similar life expectancy and enjoys a factory warranty similar to a new good that is classified in one of the enumerated HTSUS chapters or head- ings;
(s) Royalties. ‘‘Royalties’’ means pay- ments of any kind, including payments under technical assistance agreements or similar agreements, made as consid- eration for the use of, or right to use, any copyright, literary, artistic, or sci- entific work, patent, trademark, de- sign, model, plan, secret formula or process, excluding those payments under technical assistance agreements or similar agreements that can be re- lated to specific services such as:
(1) Personnel training, without re- gard to where performed; and
(2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services;
(t) Sales promotion, marketing, and after-sales service costs. ‘‘Sales pro- motion, marketing, and after-sales service costs’’ means the following costs related to sales promotion, mar- keting, and after-sales service:
(1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and con- ventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical lit- erature, price lists, service manuals, sales aid information); establishment and protection of logos and trade- marks; sponsorships; wholesale and re- tail restocking charges; entertainment;
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(2) Sales and marketing incentives; consumer, retailer or wholesaler re- bates; merchandise incentives;
(3) Salaries and wages, sales commis- sions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion, marketing, and after-sales service per- sonnel;
(4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales train- ing of customers’ employees, where such costs are identified separately for sales promotion, marketing, and after- sales service of goods on the financial statements or cost accounts of the pro- ducer;
(5) Product liability insurance; (6) Office supplies for sales pro-
motion, marketing, and after-sales service of goods, where such costs are identified separately for sales pro- motion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(7) Telephone, mail and other com- munications, where such costs are identified separately for sales pro- motion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers;
(9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, mar- keting, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer; and
(10) Payments by the producer to other persons for warranty repairs;
(u) Self-produced material. ‘‘Self-pro- duced material’’ means an originating material that is produced by a pro- ducer of a good and used in the produc- tion of that good;
(v) Shipping and packing costs. ‘‘Ship- ping and packing costs’’ means the costs incurred in packing a good for shipment and shipping the good from the point of direct shipment to the
buyer, excluding the costs of preparing and packaging the good for retail sale;
(w) Total cost. ‘‘Total cost’’ means all product costs, period costs, and other costs for a good incurred in the terri- tory of one or both of the Parties. Product costs are costs that are associ- ated with the production of a good and include the value of materials, direct labor costs, and direct overhead. Period costs are costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and ad- ministrative expenses. Other costs are all costs recorded on the books of the producer that are not product costs or period costs, such as interest. Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the pro- ducer or paid out to other persons as dividends, or taxes paid on those prof- its, including capital gains taxes;
(x) Used. ‘‘Used’’ means utilized or consumed in the production of goods; and
(y) Value. ‘‘Value’’ means the value of a good or material for purposes of calculating customs duties or for pur- poses of applying this subpart.
§ 10.914 Originating goods.
Except as otherwise provided in this subpart and General Note 32(m), HTSUS, a good imported into the cus- toms territory of the United States will be considered an originating good under the PTPA only if:
(a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties;
(b) The good is produced entirely in the territory of one or both of the Par- ties and:
(1) Each non-originating material used in the production of the good un- dergoes an applicable change in tariff classification specified in General Note 32(n), HTSUS, and the good satisfies all other applicable requirements of Gen- eral Note 32, HTSUS; or
(2) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 32(n), HTSUS, and satisfies all other applicable requirements of General Note 32, HTSUS; or
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(c) The good is produced entirely in the territory of one or both of the Par- ties exclusively from originating mate- rials.
§ 10.915 Regional value content. (a) General. Except for goods to which
paragraph (d) of this section applies, where General Note 32(n), HTSUS, sets forth a rule that specifies a regional value content test for a good, the re- gional value content of such good must be calculated by the importer, ex- porter, or producer of the good on the basis of the build-down method de- scribed in paragraph (b) of this section or the build-up method described in paragraph (c) of this section.
(b) Build-down method. Under the build-down method, the regional value content must be calculated on the basis of the formula RVC = ((AV¥VNM)/AV) × 100, where RVC is the regional value content, expressed as a percentage; AV is the adjusted value of the good; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-produced.
(c) Build-up method. Under the build- up method, the regional value content must be calculated on the basis of the formula RVC = (VOM/AV) × 100, where RVC is the regional value content, ex- pressed as a percentage; AV is the ad- justed value of the good; and VOM is the value of originating materials that are acquired or self-produced and used by the producer in the production of the good.
(d) Special rule for certain automotive goods.
(1) General. Where General Note 32(n), HTSUS, sets forth a rule that specifies a regional value content test for an automotive good provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, or any of headings 8701 through 8708, HTSUS, the regional value content of such good must be calculated by the importer, ex- porter, or producer of the good on the basis of the net cost method described in paragraph (d)(2) of this section.
(2) Net cost method. Under the net cost method, the regional value content is calculated on the basis of the formula
RVC = ((NC¥VNM)/NC) × 100, where RVC is the regional value content, ex- pressed as a percentage; NC is the net cost of the good; and VNM is the value of non-originating materials that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-produced. Consistent with the provisions regarding allocation of costs set out in Generally Accepted Ac- counting Principles, the net cost of the good must be determined by:
(i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, mar- keting, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allo- cating the resulting net cost of those goods to the automotive good;
(ii) Calculating the total cost in- curred with respect to all goods pro- duced by the producer of the auto- motive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or
(iii) Reasonably allocating each cost that forms part of the total costs in- curred with respect to the automotive good so that the aggregate of these costs does not include any sales pro- motion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable inter- est costs.
(3) Motor vehicles. (i) General. For purposes of calcu-
lating the regional value content under the net cost method for an automotive good that is a motor vehicle provided for in any of headings 8701 through 8705, an importer, exporter, or producer may average the amounts calculated under the formula set forth in para- graph (d)(2) of this section over the producer’s fiscal year using any one of the categories described in paragraph (d)(3)(ii) of this section either on the
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basis of all motor vehicles in the cat- egory or those motor vehicles in the category that are exported to the terri- tory of one or both Parties.
(ii) Categories. The categories referred to in paragraph (d)(3)(i) of this section are as follows:
(A) The same model line of motor ve- hicles, in the same class of vehicles, produced in the same plant in the terri- tory of a Party, as the motor vehicle for which the regional value content is being calculated;
(B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehi- cle for which the regional value con- tent is being calculated; and
(C) The same model line of motor ve- hicles produced in the territory of a Party as the motor vehicle for which the regional value content is being cal- culated.
(4) Other automotive goods. (i) General. For purposes of calculating the re- gional value content under the net cost method for automotive goods provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, 8706, 8707, or 8708, HTSUS, that are produced in the same plant, an importer, exporter, or producer may:
(A) Average the amounts calculated under the formula set forth in para- graph (d)(2) of this section over any of the following: The fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quar- ter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation;
(B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or
(C) Make a separate determination under paragraph (d)(4)(i)(A) or (d)(4)(i)(B) of this section for auto- motive goods that are exported to the territory of Peru or the United States.
(ii) Duration of use. A person select- ing an averaging period of one month or quarter under paragraph (d)(4)(i)(A) of this section must continue to use that method for that category of auto-
motive goods throughout the fiscal year.
§ 10.916 Value of materials.
(a) Calculating the value of materials. Except as provided in § 10.924, for pur- poses of calculating the regional value content of a good under General Note 32(n), HTSUS, and for purposes of ap- plying the de minimis (see § 10.918 of this subpart) provisions of General Note 32(n), HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good, the ad- justed value of the material;
(2) In the case of a material acquired by the producer in the territory where the good is produced, the value, deter- mined in accordance with Articles 1 through 8, Article 15, and the cor- responding interpretative notes of the Customs Valuation Agreement, of the material with reasonable modifications to the provisions of the Customs Valu- ation Agreement as may be required due to the absence of an importation by the producer (including, but not limited to, treating a domestic pur- chase by the producer as if it were a sale for export to the country of impor- tation); or
(3) In the case of a self-produced ma- terial, the sum of:
(i) All expenses incurred in the pro- duction of the material, including gen- eral expenses; and
(ii) An amount for profit equivalent to the profit added in the normal course of trade.
(b) Examples. The following examples illustrate application of the principles set forth in paragraph (a)(2) of this sec- tion:
Example 1. A producer in Peru purchases material x from an unrelated seller in Peru for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, trans- action value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in ac- cordance with the provisions of Article 8. In order to apply Article 1 to this domestic pur- chase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for pur- poses of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods
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when sold to the producer in Peru ($100), ad- justed in accordance with the provisions of Article 8. In this example, it is irrelevant whether material x was initially imported into Peru by the seller (or by anyone else). So long as the producer acquired material x in Peru, it is intended that the value of ma- terial x will be determined on the basis of the price actually paid or payable by the pro- ducer adjusted in accordance with the provi- sions of Article 8.
Example 2. Same facts as in Example 1, ex- cept that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and ex- ported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic ac- quisition by the producer, it should be modi- fied so that the value is the transaction value of identical goods sold within Peru at or about the same time the goods were sold to the producer in Peru. Thus, if the seller of material x also sold an identical material to another buyer in Peru without restrictions, that other sale would be used to determine the adjusted value of material x.
(c) Permissible additions to, and deduc- tions from, the value of materials.
(1) Additions to originating materials. For originating materials, the fol- lowing expenses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or be- tween the territory of one or both of the Parties to the location of the pro- ducer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts.
(2) Deductions from non-originating ma- terials. For non-originating materials, if included under paragraph (a) of this section, the following expenses may be
deducted from the value of the non- originating material:
(i) The costs of freight, insurance, packing, and all other costs incurred in transporting the material within or be- tween the territory of one or both of the Parties to the location of the pro- ducer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-prod- ucts; and
(iv) The cost of originating materials used in the production of the non-origi- nating material in the territory of one or both of the Parties.
(d) Accounting method. Any cost or value referenced in General Note 32, HTSUS, and this subpart, must be re- corded and maintained in accordance with the Generally Accepted Account- ing Principles applicable in the terri- tory of the Party in which the good is produced.
§ 10.917 Accumulation. (a) Originating materials from the
territory of a Party that are used in the production of a good in the terri- tory of another Party will be consid- ered to originate in the territory of that other Party.
(b) A good that is produced in the territory of one or both of the Parties by one or more producers is an origi- nating good if the good satisfies the re- quirements of § 10.914 of this subpart and all other applicable requirements of General Note 32, HTSUS.
§ 10.918 De minimis. (a) General. Except as provided in
paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to Gen- eral Note 32(n), HTSUS, is an origi- nating good if:
(1) The value of all non-originating materials used in the production of the good that do not undergo the applica- ble change in tariff classification does
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not exceed 10 percent of the adjusted value of the good;
(2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content re- quirement for the good under General Note 32(n), HTSUS; and
(3) The good meets all other applica- ble requirements of General Note 32, HTSUS.
(b) Exceptions. Paragraph (a) of this section does not apply to:
(1) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS, that is used in the production of a good provided for in Chapter 4, HTSUS;
(2) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, that is used in the pro- duction of the following goods:
(i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS;
(ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS;
(iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS;
(iv) Goods provided for in heading 2105, HTSUS;
(v) Beverages containing milk pro- vided for in subheading 2202.90, HTSUS; and
(vi) Animal feeds containing over 10 percent by weight of milk solids pro- vided for in subheading 2309.90, HTSUS; and
(3) A non-originating material pro- vided for in heading 0805, HTSUS, or any of subheadings 2009.11 through 2009.39, HTSUS, that is used in the pro- duction of a good provided for in any of subheadings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, con-
centrated or unconcentrated, provided for in subheading 2106.90 or 2202.90, HTSUS;
(4) A non-originating material pro- vided for in heading 0901 or 2101, HTSUS, that is used in the production of a good provided for in heading 0901 or 2101, HTSUS;
(5) A non-originating material pro- vided for in Chapter 15, HTSUS, that is used in the production of a good pro- vided for in Chapter 15, HTSUS;
(6) A non-originating material pro- vided for in heading 1701, HTSUS, that is used in the production of a good pro- vided for in any of headings 1701 through 1703, HTSUS;
(7) A non-originating material pro- vided for in Chapter 17, HTSUS, that is used in the production of a good pro- vided for in subheading 1806.10, HTSUS; and
(8) Except as provided in paragraphs (b)(1) through (b)(7) of this section and General Note 32(n), HTSUS, a non-orig- inating material used in the production of a good provided for in any of Chap- ters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being deter- mined under this subpart.
(c) Textile and apparel goods. (1) Gen- eral. Except as provided in paragraph (c)(2) of this section, a textile or ap- parel good that is not an originating good because certain fibers or yarns used in the production of the compo- nent of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 32(n), HTSUS, will nevertheless be con- sidered to be an originating good if:
(i) The total weight of all such fibers or yarns in that component is not more than 10 percent of the total weight of that component; or
(ii) The yarns are nylon filament yarns (other than elastomeric yarns) that are provided for in subheading 5402.11.30, 5402.11.60, 5402.31.30, 5402.31.60, 5402.32.30, 5402.32.60, 5402.45.10, 5402.45.90, 5402.51.00, or 5402.61.00, HTSUS, and that are products of Canada, Mexico, or Israel.
(2) Exception for goods containing elas- tomeric yarns. A textile or apparel good
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containing elastomeric yarns (exclud- ing latex) in the component of the good that determines the tariff classifica- tion of the good will be considered an originating good only if such yarns are wholly formed in the territory of one or both of the Parties. For purposes of this paragraph, ‘‘wholly formed’’ means that all the production proc- esses and finishing operations, starting with the extrusion of filaments, strips, film, or sheet, and including slitting a film or sheet into strip, or the spinning of all fibers into yarn, or both, and end- ing with a finished yarn or plied yarn, took place in the territory of one or both of the Parties.
(3) Yarn, fabric, or fiber. For purposes of paragraph (c) of this section, in the case of a textile or apparel good that is a yarn, fabric, or fiber, the term ‘‘com- ponent of the good that determines the tariff classification of the good’’ means all of the fibers in the good.
§ 10.919 Fungible goods and materials. (a) General. A person claiming that a
fungible good or material is an origi- nating good may base the claim either on the physical segregation of the fun- gible good or material or by using an inventory management method with respect to the fungible good or mate- rial. For purposes of this section, the term ‘‘inventory management method’’ means:
(1) Averaging; (2) ‘‘Last-in, first-out;’’ (3) ‘‘First-in, first-out;’’ or (4) Any other method that is recog-
nized in the Generally Accepted Ac- counting Principles of the Party in which the production is performed or otherwise accepted by that country.
(b) Duration of use. A person selecting an inventory management method under paragraph (a) of this section for a particular fungible good or material must continue to use that method for that fungible good or material throughout the fiscal year of that per- son.
§ 10.920 Accessories, spare parts, or tools.
(a) General. Accessories, spare parts, or tools that are delivered with a good and that form part of the good’s stand- ard accessories, spare parts, or tools
will be treated as originating goods if the good is an originating good, and will be disregarded in determining whether all the non-originating mate- rials used in the production of the good undergo an applicable change in tariff classification specified in General Note 32(n), HTSUS, provided that:
(1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good, re- gardless of whether they are specified or separately identified in the invoice for the good; and
(2) The quantities and value of the accessories, spare parts, or tools are customary for the good.
(b) Regional value content. If the good is subject to a regional value content requirement, the value of the acces- sories, spare parts, or tools is taken into account as originating or non- originating materials, as the case may be, in calculating the regional value content of the good under § 10.915 of this subpart.
§ 10.921 Goods classifiable as goods put up in sets.
Notwithstanding the specific rules set forth in General Note 32(n), HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless:
(a) Each of the goods in the set is an originating good; or
(b) The total value of the non-origi- nating goods in the set does not exceed;
(1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or
(2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set.
§ 10.922 Retail packaging materials and containers.
(a) Effect on tariff shift rule. Pack- aging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential tariff treatment under the PTPA is claimed, will be dis- regarded in determining whether all non-originating materials used in the
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production of the good undergo the ap- plicable change in tariff classification set out in General Note 32(n), HTSUS.
(b) Effect on regional value content cal- culation. If the good is subject to a re- gional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating mate- rials, as the case may be, in calculating the regional value content of the good.
Example 1. Peruvian Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.916(a)(1) of this subpart, the value of the blister packages is their ad- justed value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV – VNM)/AV) × 100 (see § 10.915(b) of this sub- part), in determining whether good C satis- fies the regional value content requirement. In applying this method, the non-originating blister packages are taken into account as non-originating. As such, their $10 adjusted value is included in the VNM, value of non- originating materials, of good C.
Example 2. Same facts as in Example 1, ex- cept that the blister packages are origi- nating. In this case, the adjusted value of the originating blister packages would not be in- cluded as part of the VNM of good C under the build-down method. However, if the U.S. importer had used the build-up method, RVC = (VOM/AV) × 100 (see § 10.915(c) of this sub- part), the adjusted value of the blister pack- aging would be included as part of the VOM, value of originating materials.
§ 10.923 Packing materials and con- tainers for shipment.
(a) Effect on tariff shift rule. Packing materials and containers for shipment, as defined in § 10.913(m) of this subpart, are to be disregarded in determining whether the non-originating materials used in the production of the good un- dergo an applicable change in tariff classification set out in General Note 32(n), HTSUS. Accordingly, such mate- rials and containers are not required to undergo the applicable change in tariff classification even if they are non-orig- inating.
(b) Effect on regional value content cal- culation. Packing materials and con- tainers for shipment, as defined in § 10.913(m) of this subpart, are to be dis- regarded in determining the regional value content of a good imported into the United States. Accordingly, in ap-
plying the build-down, build-up, or net cost method for determining the re- gional value content of a good im- ported into the United States, the value of such packing materials and containers for shipment (whether origi- nating or non-originating) is dis- regarded and not included in AV, ad- justed value, VNM, value of non-origi- nating materials, VOM, value of origi- nating materials, or NC, net cost of a good.
Example. Peruvian producer A produces good C. Producer A ships good C to the United States in a shipping container that it purchased from Company B in Peru. The shipping container is originating. The value of the shipping container determined under section § 10.916(a)(2) of this subpart is $3. Good C is subject to a regional value content requirement. The transaction value of good C is $100, which includes the $3 shipping con- tainer. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 (see § 10.915(c) of this subpart), in determining whether good C satisfies the regional value content requirement. In determining the AV, adjusted value, of good C imported into the U.S., paragraph (b) of this section and the definition of AV require a $3 deduction for the value of the shipping container. There- fore, the AV is $97 ($100 ¥ $3). In addition, the value of the shipping container is dis- regarded and not included in the VOM, value of originating materials.
§ 10.924 Indirect materials. An indirect material, as defined in
§ 10.902(m) of this subpart, will be con- sidered to be an originating material without regard to where it is produced.
Example. Peruvian Producer A produces good C using non-originating material B. Producer A imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.914(b)(1) of this subpart and General Note 32(n), each of the non-originating materials in good C must undergo the specified change in tariff classification in order for good C to be con- sidered originating. Although non-origi- nating material B must undergo the applica- ble tariff shift in order for good C to be con- sidered originating, the rubber gloves do not because they are indirect materials and are considered originating without regard to where they are produced.
§ 10.925 Transit and transshipment. (a) General. A good that has under-
gone production necessary to qualify as
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an originating good under § 10.914 of this subpart will not be considered an originating good if, subsequent to that production, the good:
(1) Undergoes further production or any other operation outside the terri- tories of the Parties, other than un- loading, reloading, or any other oper- ation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the territory of a non-Party.
(b) Documentary evidence. An im- porter making a claim that a good is originating may be required to dem- onstrate, to CBP’s satisfaction, that the conditions and requirements set forth in paragraph (a) of this section were met. An importer may dem- onstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.926 Verification and justification of claim for preferential tariff treat- ment.
(a) Verification. A claim for pref- erential tariff treatment made under § 10.903(b) or § 10.911 of this subpart, in- cluding any statements or other infor- mation submitted to CBP in support of the claim, will be subject to such verification as the port director deems necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, or the exporter or producer fails to consent to a verification visit, the port director may deny the claim for preferential treatment. A verification of a claim for preferential tariff treatment under PTPA for goods imported into the United States may be conducted by means of one or more of the following:
(1) Written requests for information from the importer, exporter, or pro- ducer;
(2) Written questionnaires to the im- porter, exporter, or producer;
(3) Visits to the premises of the ex- porter or producer in the territory of Peru, to review the records of the type referred to in § 10.909(c)(1) of this sub- part or to observe the facilities used in the production of the good, in accord- ance with the framework that the Par- ties develop for conducting verifications; and
(4) Such other procedures to which the Parties may agree.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.927 Special rule for verifications in Peru of U.S. imports of textile and apparel goods.
(a) Procedures to determine whether a claim of origin is accurate. (1) General. For the purpose of determining that a claim of origin for a textile or apparel good is accurate, CBP may request that the Government of Peru conduct a verification, regardless of whether a claim is made for preferential tariff treatment.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP may take appro- priate action, which may include:
(i) Suspending the application of preferential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made, if CBP determines there is insufficient information to support the claim;
(ii) Denying the application of pref- erential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that an enterprise has provided incorrect infor- mation to support the claim;
(iii) Detention of any textile or ap- parel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and
(iv) Denying entry to any textile or apparel good exported or produced by
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the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation as to the country of origin of any such good.
(3) Actions following a verification. On completion of a verification under this paragraph, CBP may take appropriate action, which may include:
(i) Denying the application of pref- erential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect infor- mation, to support the claim; and
(ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided in- correct information as to, the country of origin of any such good.
(b) Procedures to determine compliance with applicable customs laws and regula- tions of the United States. (1) General. For purposes of enabling CBP to deter- mine that an exporter or producer is complying with applicable customs laws, regulations, and procedures re- garding trade in textile and apparel goods, CBP may request that the gov- ernment of Peru conduct a verification.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP may take appro- priate action, which may include:
(i) Suspending the application of preferential tariff treatment to any textile or apparel good exported or pro- duced by the enterprise subject to the verification if CBP determines there is insufficient information to support a claim for preferential tariff treatment with respect to any such good;
(ii) Denying the application of pref- erential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation to support a claim for pref- erential tariff treatment with respect to any such good;
(iii) Detention of any textile or ap- parel good exported or produced by the
enterprise subject to the verification if CBP determines there is insufficient information to determine the country of origin of any such good; and
(iv) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided incorrect infor- mation as to the country of origin of any such good.
(3) Actions following a verification. On completion of a verification under this paragraph, CBP may take appropriate action, which may include:
(i) Denying the application of pref- erential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information, or that the enterprise has provided incorrect infor- mation, to support a claim for pref- erential tariff treatment with respect to any such good; and
(ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines there is insufficient information to determine, or that the enterprise has provided in- correct information as to, the country of origin of any such good.
(c) Denial of permission to conduct a verification. If an enterprise does not consent to a verification under this section, CBP may deny preferential tariff treatment to the type of goods of the enterprise that would have been the subject of the verification.
(d) Assistance by U.S. officials in con- ducting a verification abroad. U.S. offi- cials may undertake or assist in a verification under this section by con- ducting visits in the territory of Peru, along with the competent authorities of Peru, to the premises of an exporter, producer, or any other enterprise in- volved in the movement of textile or apparel goods from Peru to the United States.
(e) Continuation of appropriate action. CBP may continue to take appropriate action under paragraph (a) or (b) of this section until it receives informa- tion sufficient to enable it to make the determination described in paragraphs (a) and (b) of this section.
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U.S. Customs and Border Protection, DHS; Treasury § 10.933
§ 10.928 Issuance of negative origin de- terminations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an au- thorized electronic data interchange system to the importer that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 32, HTSUS, and in §§ 10.913 through 10.925 of this subpart, the legal basis for the deter- mination.
§ 10.929 Repeated false or unsupported preference claims.
Where verification or other informa- tion reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the PTPA rules of origin set forth in General Note 32, HTSUS, CBP may suspend preferential tariff treatment under the PTPA to en- tries of identical goods covered by sub- sequent representations by that im- porter, exporter, or producer until CBP determines that representations of that person are in conformity with General Note 32, HTSUS.
PENALTIES
§ 10.930 General.
Except as otherwise provided in this subpart, all criminal, civil, or adminis- trative penalties which may be im- posed on U.S. importers, exporters, and producers for violations of the customs and related laws and regulations will also apply to U.S. importers, exporters, and producers for violations of the laws and regulations relating to the PTPA.
§ 10.931 Corrected claim or certifi- cation by importers.
An importer who makes a corrected claim under § 10.903(c) of this subpart will not be subject to civil or adminis- trative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certifi- cation, provided that the corrected claim is promptly and voluntarily made.
§ 10.932 Corrected certification by U.S. exporters or producers.
Civil or administrative penalties pro- vided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notifica- tion pursuant to § 10.909(b) with respect to the making of an incorrect certifi- cation.
§ 10.933 Framework for correcting claims or certifications.
(a) ‘‘Promptly and voluntarily’’ defined. Except as provided for in paragraph (b) of this section, for purposes of this sub- part, the making of a corrected claim or certification by an importer or the providing of written notification of an incorrect certification by an exporter or producer in the United States will be deemed to have been done promptly and voluntarily if:
(1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or
(ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or
(iii) Done within 30 days after the im- porter, exporter, or producer initially becomes aware that the claim or cer- tification is incorrect; and
(2) Accompanied by a statement set- ting forth the information specified in paragraph (c) of this section; and
(3) In the case of a corrected claim or certification by an importer, accom- panied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accord- ance with paragraph (d) of this section.
(b) Exception in cases involving fraud or subsequent incorrect claims. (1) Fraud. Notwithstanding paragraph (a) of this section, a person who acted fraudu- lently in making an incorrect claim or
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certification may not make a vol- untary correction of that claim or cer- tification. For purposes of this para- graph, the term ‘‘fraud’’ will have the meaning set forth in paragraph (C)(3) of Appendix B to Part 171 of this chapter.
(2) Subsequent incorrect claims. An im- porter who makes one or more incor- rect claims after becoming aware that a claim involving the same merchan- dise and circumstances is invalid may not make a voluntary correction of the subsequent claims pursuant to para- graph (a) of this section.
(c) Statement. For purposes of this subpart, each corrected claim or cer- tification must be accompanied by a statement, submitted in writing or via an authorized electronic data inter- change system, which:
(1) Identifies the class or kind of good to which the incorrect claim or certifi- cation relates;
(2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, in- cluding each port of importation and the approximate date of each importa- tion;
(3) Specifies the nature of the incor- rect statements or omissions regarding the claim or certification; and
(4) Sets forth, to the best of the per- son’s knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day pe- riod as CBP may permit in order for the person to obtain the information or data.
(d) Tender of actual loss of duties. A U.S. importer who makes a corrected claim must tender any actual loss of duties at the time of making the cor- rected claim, or within 30 days there- after, or within any extension of that 30-day period as CBP may allow in order for the importer to obtain the in- formation or data necessary to cal- culate the duties owed.
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.934 Goods re-entered after repair or alteration in Peru.
(a) General. This section sets forth the rules which apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Peru as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Peru, whether or not pursu- ant to a warranty, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment that does not destroy the essential charac- teristics of, or create a new or commer- cially different good from, the good ex- ported from the United States.
(b) Goods not eligible for duty-free treatment after repair or alteration. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Peru, are incomplete for their intended use and for which the processing operation performed in Peru constitutes an operation that is per- formed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of paragraphs (a), (b), and (c) of § 10.8 of this part, relating to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Peru after having been exported for repairs or alterations and which are claimed to be duty free.
Subpart R—United States-Korea Free Trade Agreement
SOURCE: 77 FR 15948, Mar. 19, 2012, unless otherwise noted.
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GENERAL PROVISIONS
§ 10.1001 Scope. This subpart implements the duty
preference and related customs provi- sions applicable to imported and ex- ported goods under the United States- Korea Free Trade Agreement (the UKFTA) signed on June 30, 2007, and under the United States-Korea Free Trade Agreement Implementation Act (the Act; Pub. L. 112–41, 125 Stat. 428 (19 U.S.C. 3805 note)). Except as otherwise specified in this subpart, the proce- dures and other requirements set forth in this subpart are in addition to the customs procedures and requirements of general application contained else- where in this chapter. Additional pro- visions implementing certain aspects of the UKFTA and the Act are con- tained in parts 24, 162, and 163 of this chapter.
§ 10.1002 General definitions. As used in this subpart, the following
terms will have the meanings indicated unless either the context in which they are used requires a different meaning or a different definition is prescribed for a particular section of this subpart:
(a) Claim for preferential tariff treat- ment. ‘‘Claim for preferential tariff treat- ment’’ means a claim that a good is en- titled to the duty rate applicable under the UKFTA to an originating good and to an exemption from the merchandise processing fee;
(b) Claim of origin. ‘‘Claim of origin’’ means a claim that a textile or apparel good is an originating good or satisfies the non-preferential rules of origin of a Party;
(c) Customs duty. ‘‘Customs duty’’ in- cludes any customs or import duty and a charge of any kind imposed in con- nection with the importation of a good, including any form of surtax or sur- charge in connection with such impor- tation, such as an adjustment tariff imposed pursuant to Article 69 of Ko- rea’s Customs Act, but does not include any:
(1) Charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994, in respect of like, directly competitive, or substitutable goods of the Party, or in respect of goods from which the imported good
has been manufactured or produced in whole or in part;
(2) Antidumping or countervailing duty that is applied pursuant to a Par- ty’s law; or
(3) Fee or other charge in connection with importation commensurate with the cost of services rendered.
(d) Customs Valuation Agreement. ‘‘Customs Valuation Agreement’’ means the Agreement on Implementation of Arti- cle VII of the General Agreement on Tar- iffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
(e) Days. ‘‘Days’’ means calendar days;
(f) Enterprise. ‘‘Enterprise’’ means any entity constituted or organized under applicable law, whether or not for prof- it, and whether privately or govern- mentally-owned or controlled, includ- ing any corporation, trust, partnership, sole proprietorship, joint venture, asso- ciation, or similar organization;
(g) Enterprise of a Party. ‘‘Enterprise of a Party’’ means an enterprise con- stituted or organized under a Party’s law;
(h) GATT 1994. ‘‘GATT 1994’’ means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
(i) Goods of a Party. ‘‘Goods of a Party’’ means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party;
(j) Harmonized System. ‘‘Harmonized System’’ means the Harmonized Com- modity Description and Coding System, including its General Rules of Interpre- tation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws;
(k) Heading. ‘‘Heading’’ means the first four digits in the tariff classifica- tion number under the Harmonized System;
(l) HTSUS. ‘‘HTSUS’’ means the Har- monized Tariff Schedule of the United States as promulgated by the U.S. International Trade Commission;
(m) Identical goods. ‘‘Identical goods’’ means goods that are the same in all respects relevant to the rule of origin that qualifies the goods as originating;
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(n) Indirect material. ‘‘Indirect mate- rial’’ means a good used in the produc- tion, testing, or inspection of a good but not physically incorporated into the good, or a good used in the mainte- nance of buildings or the operation of equipment associated with the produc- tion of a good, including:
(1) Fuel and energy; (2) Tools, dies, and molds; (3) Spare parts and materials used in
the maintenance of equipment or buildings;
(4) Lubricants, greases, compounding materials, and other materials used in production or used to operate equip- ment or buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment, and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the good;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the other good but the use of which in the production of the other good can reasonably be dem- onstrated to be a part of that produc- tion;
(o) Korea. ‘‘Korea’’ means the Repub- lic of Korea.
(p) Originating. ‘‘Originating’’ means qualifying for preferential tariff treat- ment under the rules of origin set out in Chapter Four (Textiles and Apparel) or Chapter Six (Rules of Origin and Or- igin Procedures) of the UKFTA and General Note 33, HTSUS;
(q) Party. ‘‘Party’’ means the United States or the Republic of Korea;
(r) Person. ‘‘Person’’ means a natural person or an enterprise;
(s) Person of a Party. ‘‘Person of a Party’’ means a national or an enter- prise of a Party;
(t) Preferential tariff treatment. ‘‘Preferential tariff treatment’’ means the duty rate applicable under the UKFTA to an originating good, and an exemp- tion from the merchandise processing fee;
(u) Subheading. ‘‘Subheading’’ means the first six digits in the tariff classi- fication number under the Harmonized System;
(v) Textile or apparel good. ‘‘Textile or apparel good’’ means a good listed in the Annex to the Agreement on Tex- tiles and Clothing (commonly referred to as ‘‘the ATC’’);
(w) Territory. ‘‘Territory’’ means: (1) With respect to Korea, the land,
maritime, and air space over which Korea exercises sovereignty, and those maritime areas, including the seabed and subsoil adjacent to and beyond the outer limit of the territorial seas over which it may exercise sovereign rights or jurisdiction in accordance with international law and its domestic law; and
(2) With respect to the United States, (i) The customs territory of the
United States, which includes the 50 states, the District of Columbia, and Puerto Rico;
(ii) The foreign trade zones located in the United States and Puerto Rico; and
(iii) Any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise sovereign rights with re- spect to the seabed and subsoil and their natural resources;
(x) WTO. ‘‘WTO’’ means the World Trade Organization; and
(y) WTO Agreement. ‘‘WTO Agreement’’ means the Marrakesh Agreement Estab- lishing the World Trade Organization of April 15, 1994.
IMPORT REQUIREMENTS
§ 10.1003 Filing of claim for pref- erential tariff treatment upon im- portation.
(a) Basis of claim. An importer may make a claim for UKFTA preferential tariff treatment, including an exemp- tion from the merchandise processing fee, based on either:
(1) A written or electronic certifi- cation, as specified in § 10.1004 of this subpart, that is prepared by the im- porter, exporter, or producer of the good; or
(2) The importer’s knowledge that the good is an originating good, includ- ing reasonable reliance on information in the importer’s possession that the good is an originating good.
(b) Making a claim. The claim is made by including on the entry summary, or equivalent documentation, the letters ‘‘KR’’ as a prefix to the subheading of the HTSUS under which each quali- fying good is classified, or by the meth- od specified for equivalent reporting
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via an authorized electronic data inter- change system.
(c) Corrected claim. If, after making the claim specified in paragraph (b) of this section, the importer has reason to believe that the claim is based on inac- curate information or is otherwise in- valid, the importer must, within 30 cal- endar days after the date of discovery of the error, correct the claim and pay any duties that may be due. The im- porter must submit a statement either in writing or via an authorized elec- tronic data interchange system to the CBP office where the original claim was filed specifying the correction (see §§ 10.1031 and 10.1033 of this subpart).
§ 10.1004 Certification. (a) General. An importer who makes a
claim pursuant to § 10.1003(b) of this subpart based on a certification by the importer, exporter, or producer that the good is originating must submit, at the request of the port director, a copy of the certification. The certification:
(1) Need not be in a prescribed format but must be in writing or must be transmitted electronically pursuant to any electronic means authorized by CBP for that purpose;
(2) Must be in the possession of the importer at the time the claim for preferential tariff treatment is made if the certification forms the basis for the claim;
(3) Must include the following infor- mation:
(i) The legal name, address, tele- phone, and email address (if any) of the importer of record of the good (if known), the exporter of the good (if dif- ferent from the producer), and the pro- ducer of the good (if known);
(ii) The legal name, address, tele- phone, and email address (if any) of the responsible official or authorized agent of the importer, exporter, or producer signing the certification (if different from the information required by para- graph (a)(3)(i) of this section);
(iii) A description of the good for which preferential tariff treatment is claimed, which must be sufficiently de- tailed to relate it to the invoice and the HS nomenclature;
(iv) The HTSUS tariff classification, to six or more digits, as necessary for the specific change in tariff classifica-
tion rule for the good set forth in Gen- eral Note 33(o), HTSUS; and
(v) The applicable rule of origin set forth in General Note 33, HTSUS, under which the good qualifies as an origi- nating good;
(vi) Date of certification; (vii) In case of a blanket certification
issued with respect to the multiple shipments of identical goods within any period specified in the written or electronic certification, not exceeding 12 months from the date of certifi- cation, the period that the certifi- cation covers; and
(4) Must include a statement, in sub- stantially the following form:
‘‘I certify that: The information on this document is true and accurate and I assume the responsibility for proving such representations. I under- stand that I am liable for any false state- ments or material omissions made on or in connection with this document; I agree to maintain and present upon re- quest, documentation necessary to support these representations; The goods comply with all requirements for preferential tariff treatment specified for those goods in the United States-Korea Free Trade Agreement; and This document consists of ll pages, includ- ing all attachments.’’
(b) Responsible official or agent. The certification provided for in paragraph (a) of this section must be signed and dated by a responsible official of the importer, exporter, or producer, or by the importer’s, exporter’s, or pro- ducer’s authorized agent having knowl- edge of the relevant facts.
(c) Language. The certification pro- vided for in paragraph (a) of this sec- tion must be completed in either the English or Korean language. In the lat- ter case, the port director may require the importer to submit an English translation of the certification.
(d) Certification by the exporter or pro- ducer. (1) A certification may be pre- pared by the exporter or producer of the good on the basis of:
(i) The exporter’s or producer’s knowledge that the good is originating; or
(ii) In the case of an exporter, reason- able reliance on the producer’s written or electronic certification that the good is originating.
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(2) The port director may not require an exporter or producer to provide a written or electronic certification to another person.
(e) Applicability of certification. The certification provided for in paragraph (a) of this section may be applicable to:
(1) A single shipment of a good into the United States; or
(2) Multiple shipments of identical goods into the United States that occur within a specified blanket period, not exceeding 12 months, set out in the certification.
(f) Validity of certification. A certifi- cation that is properly completed, signed, and dated in accordance with the requirements of this section will be accepted as valid for four years fol- lowing the date on which it was issued.
§ 10.1005 Importer obligations. (a) General. An importer who makes a
claim for preferential tariff treatment under § 10.1003(b) of this subpart:
(1) Will be deemed to have certified that the good is eligible for pref- erential tariff treatment under the UKFTA;
(2) Is responsible for the truthfulness of the claim and of all the information and data contained in the certification provided for in § 10.1004 of this subpart; and
(3) Is responsible for submitting any supporting documents requested by CBP, and for the truthfulness of the in- formation contained in those docu- ments. When a certification prepared by an exporter or producer forms the basis of a claim for preferential tariff treatment, and CBP requests the sub- mission of supporting documents, the importer will provide to CBP, or ar- range for the direct submission by the exporter or producer of, all information relied on by the exporter or producer in preparing the certification.
(b) Information provided by exporter or producer. The fact that the importer has made a claim or submitted a cer- tification based on information pro- vided by an exporter or producer will not relieve the importer of the respon- sibility referred to in paragraph (a) of this section.
(c) Exemption from penalties. An im- porter will not be subject to civil or ad- ministrative penalties under 19 U.S.C.
1592 for making an incorrect claim for preferential tariff treatment or sub- mitting an incorrect certification, pro- vided that the importer promptly and voluntarily corrects the claim or cer- tification and pays any duty owing (see §§ 10.1031 and 10.1033 of this subpart).
§ 10.1006 Certification not required. (a) General. Except as otherwise pro-
vided in paragraph (b) of this section, an importer will not be required to sub- mit a copy of a certification under § 10.1004 of this subpart for:
(1) A non-commercial importation of a good; or
(2) A commercial importation for which the value of the originating goods does not exceed U.S. $2,500.
(b) Exception. If the port director de- termines that an importation described in paragraph (a) of this section is part of a series of importations carried out or planned for the purpose of evading compliance with the certification re- quirements of § 10.1004 of this subpart, the port director will notify the im- porter that for that importation the importer must submit to CBP a copy of the certification. The importer must submit such a copy within 30 days from the date of the notice. Failure to time- ly submit a copy of the certification will result in denial of the claim for preferential tariff treatment.
§ 10.1007 Maintenance of records. (a) General. An importer claiming
preferential tariff treatment for a good (based on either the importer’s certifi- cation or its knowledge, or on the cer- tification issued by the exporter or pro- ducer) imported into the United States under § 10.1003(b) of this subpart must maintain for a minimum of five years from the date of importation of the good, all records and documents that the importer has demonstrating that the good qualifies for preferential tariff treatment under the UKFTA. These records are in addition to any other records that the importer is required to prepare, maintain, or make available to CBP under part 163 of this chapter.
(b) Method of maintenance. The records and documents referred to in paragraph (a) of this section must be maintained by importers as provided in § 163.5 of this chapter.
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§ 10.1008 Effect of noncompliance; fail- ure to provide documentation re- garding transshipment.
(a) General. If the importer fails to comply with any requirement under this subpart, including submission of a complete certification prepared in ac- cordance with § 10. 1004 of this subpart, when requested, the port director may deny preferential tariff treatment to the imported good.
(b) Failure to provide documentation re- garding transshipment. Where the re- quirements for preferential tariff treat- ment set forth elsewhere in this sub- part are met, the port director never- theless may deny preferential tariff treatment to an originating good if the good is shipped through or trans- shipped in a country other than a Party to the UKFTA, and the importer of the good does not provide, at the re- quest of the port director, evidence demonstrating to the satisfaction of the port director that the conditions set forth in § 10.1025(a) of this subpart were met.
EXPORT REQUIREMENTS
§ 10.1009 Certification for goods ex- ported to Korea.
(a) Submission of certification to CBP. Any person who completes and issues a certification for a good exported from the United States to Korea must pro- vide a copy of the certification (writ- ten or electronic) to CBP upon request.
(b) Notification of errors in certifi- cation. Any person who completes and issues a certification for a good ex- ported from the United States to Korea and who has reason to believe that the certification contains or is based on in- correct information must promptly no- tify every person to whom the certifi- cation was provided of any change that could affect the accuracy or validity of the certification. Notification of an in- correct certification must also be given either in writing or via an authorized electronic data interchange system to CBP specifying the correction (see §§ 10.1032 and 10.1033 of this subpart).
(c) Maintenance of records—(1) Gen- eral. Any person who completes and issues a certification for a good ex- ported from the United States to Korea must maintain, for a period of at least
five years after the date the certifi- cation was issued, all records and sup- porting documents relating to the ori- gin of a good for which the certifi- cation was issued, including the certifi- cation or copies thereof and records and documents associated with:
(i) The purchase, cost, and value of, and payment for, the good;
(ii) The purchase, cost, and value of, and payment for, all materials, includ- ing indirect materials, used in the pro- duction of the good; and
(iii) The production of the good in the form in which the good was ex- ported.
(2) Method of maintenance. The records referred to in paragraph (c) of this section must be maintained as pro- vided in § 163.5 of this chapter.
(3) Availability of records. For pur- poses of determining compliance with the provisions of this part, the records required to be maintained under this section must be stored and made avail- able for examination and inspection by the port director or other appropriate CBP officer in the same manner as pro- vided in Part 163 of this chapter.
POST-IMPORTATION DUTY REFUND CLAIMS
§ 10.1010 Right to make post-importa- tion claim and refund duties.
Notwithstanding any other available remedy, where a good would have qualified as an originating good when it was imported into the United States but no claim for preferential tariff treatment was made, the importer of that good may file a claim for a refund of any excess duties at any time within one year after the date of importation of the good in accordance with the pro- cedures set forth in § 10.1011 of this sub- part. Subject to the provisions of § 10.1008 of this subpart, CBP may re- fund any excess duties by liquidation or reliquidation of the entry covering the good in accordance with § 10.1012(c) of this subpart.
§ 10.1011 Filing procedures.
(a) Place of filing. A post-importation claim for a refund must be filed with the director of the port at which the entry covering the good was filed.
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(b) Contents of claim. A post-importa- tion claim for a refund must be filed by presentation of the following:
(1) A written or electronic declara- tion or statement stating that the good was an originating good at the time of importation and setting forth the num- ber and date of the entry or entries covering the good;
(2) A copy of a written or electronic certification prepared in accordance with § 10.1004 of this subpart if a certifi- cation forms the basis for the claim, or other information demonstrating that the good qualifies for preferential tariff treatment;
(3) A written statement indicating whether the importer of the good pro- vided a copy of the entry summary or equivalent documentation to any other person. If such documentation was so provided, the statement must identify each recipient by name, CBP identi- fication number, and address and must specify the date on which the docu- mentation was provided; and
(4) A written statement indicating whether or not any person has filed a protest relating to the good under any provision of law; and if any such pro- test has been filed, the statement must identify the protest by number and date.
§ 10.1012 CBP processing procedures. (a) Status determination. After receipt
of a post-importation claim made pur- suant to § 10.1011 of this subpart, the port director will determine whether the entry covering the good has been liquidated and, if liquidation has taken place, whether the liquidation has be- come final.
(b) Pending protest or judicial review. If the port director determines that any protest relating to the good has not been finally decided, the port director will suspend action on the claim filed under § 10.1011 of this subpart until the decision on the protest becomes final. If a summons involving the tariff clas- sification or dutiability of the good is filed in the Court of International Trade, the port director will suspend action on the claim filed under § 10.1011 of this subpart until judicial review has been completed.
(c) Allowance of claim. (1) Unliquidated entry. If the port director determines
that a claim for a refund filed under § 10.1011 of this subpart should be al- lowed and the entry covering the good has not been liquidated, the port direc- tor will take into account the claim for refund in connection with the liquida- tion of the entry.
(2) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under § 10.1011 of this subpart should be allowed and the entry cov- ering the good has been liquidated, whether or not the liquidation has be- come final, the entry must be reliq- uidated in order to effect a refund of duties under this section. If the entry is otherwise to be reliquidated based on administrative review of a protest or as a result of judicial review, the port di- rector will reliquidate the entry taking into account the claim for refund under § 10.1011 of this subpart.
(d) Denial of claim. (1) General. The port director may deny a claim for a refund filed under § 10.1011 of this sub- part if the claim was not filed timely, if the importer has not complied with the requirements of § 10.1008 and 10.1011 of this subpart, or if, following an ori- gin verification under § 10.1026 of this subpart, the port director determines either that the imported good was not an originating good at the time of im- portation or that a basis exists upon which preferential tariff treatment may be denied under § 10.1026 of this subpart.
(2) Unliquidated entry. If the port di- rector determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has not been liquidated, the port direc- tor will deny the claim in connection with the liquidation of the entry, and notice of the denial and the reason for the denial will be provided to the im- porter in writing or via an authorized electronic data interchange system.
(3) Liquidated entry. If the port direc- tor determines that a claim for a re- fund filed under this subpart should be denied and the entry covering the good has been liquidated, whether or not the liquidation has become final, the claim may be denied without reliquidation of the entry. If the entry is otherwise to be reliquidated based on administra- tive review of a protest or as a result of judicial review, such reliquidation may
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include denial of the claim filed under this subpart. In either case, the port di- rector will provide notice of the denial and the reason for the denial to the im- porter in writing or via an authorized electronic data interchange system.
RULES OF ORIGIN
§ 10.1013 Definitions. For purposes of §§ 10.1013 through
10.1025: (a) Adjusted value. ‘‘Adjusted value’’
means the value determined in accord- ance with Articles 1 through 8, Article 15, and the corresponding interpreta- tive notes of the Customs Valuation Agreement, adjusted, if necessary, to exclude:
(1) Any costs, charges, or expenses in- curred for transportation, insurance and related services incident to the international shipment of the good from the country of exportation to the place of importation; and
(2) The value of packing materials and containers for shipment as defined in paragraph (m) of this section;
(b) Class of motor vehicles. ‘‘Class of motor vehicles’’ means any one of the following categories of motor vehicles:
(1) Motor vehicles classified under subheading 8701.20, HTSUS, motor ve- hicles for the transport of 16 or more persons classified under subheading 8702.10 or 8702.90, HTSUS, and motor vehicles classified under subheading 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading 87.05 or 87.06, HTSUS;
(2) Motor vehicles classified under subheading 8701.10 or subheading 8701.30 through 8701.90, HTSUS;
(3) Motor vehicles for the transport of 15 or fewer persons classified under subheading 8702.10 or 8702.90, HTSUS and motor vehicles classified under subheading 8704.21 or 8704.31, HTSUS; or
(4) Motor vehicles classified under subheading 8703.21 through 8703.90, HTSUS;
(c) Exporter. ‘‘Exporter’’ means a per- son who exports goods from the terri- tory of a Party;
(d) Fungible goods or materials. ‘‘Fungible goods or materials’’ means goods or materials that are inter- changeable with another good or mate-
rial for commercial purposes and the properties of which are essentially identical to such other good or mate- rial;
(e) Generally Accepted Accounting Principles. ‘‘Generally Accepted Account- ing Principles’’ means the recognized consensus or substantial authoritative support in the territory of a Party, with respect to the recording of reve- nues, expenses, costs, assets, and liabil- ities, the disclosure of information, and the preparation of financial state- ments. These principles may encom- pass broad guidelines of general appli- cation as well as detailed standards, practices, and procedures;
(f) Good. ‘‘Good’’ means any merchan- dise, product, article, or material;
(g) Goods wholly obtained or produced entirely in the territory of one or more of the Parties. ‘‘Goods wholly obtained or produced entirely in the territory of one or both of the Parties’’ means:
(1) Plants and plant products grown, and harvested or gathered, in the terri- tory of one or both of the Parties;
(2) Live animals born and raised in the territory of one or both of the Par- ties;
(3) Goods obtained in the territory of one or both of the Parties from live animals;
(4) Goods obtained from hunting, trapping, fishing, or aquaculture con- ducted in the territory of one or both of the Parties;
(5) Minerals and other natural re- sources not included in paragraphs (g)(1) through (g)(4) extracted or taken from the territory of one or both of the Parties;
(6) Fish, shellfish, and other marine life taken from the sea, seabed, or sub- soil outside the territory of the Parties by:
(i) A vessel that is registered or re- corded with Korea and flying the flag of Korea; or
(ii) A vessel that is documented under the laws of the United States;
(7) Goods produced on board factory ships from the goods referred to in paragraph (g)(6), if such factory ship:
(i) Is registered or recorded with Korea and flies the flag of Korea; or
(ii) Is a vessel that is documented under the laws of the United States;
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(8) Goods taken by a Party or a per- son of a Party from the seabed or sub- soil outside the territory of one or both of the Parties, provided that Party has rights to exploit such seabed or subsoil;
(9) Goods taken from outer space, provided they are obtained by a Party or a person of a Party and not proc- essed in the territory of a non-Party;
(10) Waste and scrap derived from: (i) Manufacturing or processing oper-
ations in the territory of one or both of the Parties; or
(ii) Used goods collected in the terri- tory of one or both of the Parties, pro- vided such goods are fit only for the re- covery of raw materials;
(11) Recovered goods derived in the territory of one or both of the Parties from used goods, and used in the terri- tory of one or both of the Parties in the production of remanufactured goods; and
(12) Goods produced in the territory of one or both of the Parties exclu- sively from goods referred to in para- graphs (g)(1) through (g)(10) of this sec- tion, or from their derivatives, at any stage of production;
(h) Material. ‘‘Material’’ means a good that is used in the production of an- other good, including a part or an in- gredient;
(i) Model line. ‘‘Model line’’ means a group of motor vehicles having the same platform or model name;
(j) Net cost. ‘‘Net cost’’ means total cost minus sales promotion, mar- keting, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost;
(k) Non-allowable interest costs. ‘‘Non- allowable interest costs’’ means interest costs incurred by a producer that ex- ceed 700 basis points above the applica- ble official interest rate on debt obliga- tions of comparable maturities issued by the central level of government of the Party in which the producer is lo- cated;
(l) Non-originating good or non-origi- nating material. ‘‘Non-originating good’’ or ‘‘non-originating material’’ means a good or material, as the case may be, that does not qualify as originating under General Note 33, HTSUS, or this subpart;
(m) Packing materials and containers for shipment. ‘‘Packing materials and containers for shipment’’ means the goods used to protect a good during its transportation to the United States and does not include the packaging ma- terials and containers in which a good is packaged for retail sale;
(n) Producer. ‘‘Producer’’ means a per- son who engages in the production of a good in the territory of a Party;
(o) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, breeding, raising, trapping, hunting, manufacturing, processing, assembling, or disassembling a good;
(p) Reasonably allocate. ‘‘Reasonably allocate’’ means to apportion in a man- ner that would be appropriate under Generally Accepted Accounting Prin- ciples;
(q) Reasonable suspicion of unlawful activity. ‘‘Reasonable suspicion of unlaw- ful activity’’ means a suspicion based on relevant factual information obtained from public or private sources com- prising one or more of the following:
(1) Historical evidence of non-compli- ance with laws or regulations gov- erning importations by an importer or exporter;
(2) Historical evidence of non-compli- ance with laws or regulations gov- erning importations by a manufac- turer, producer, or other person in- volved in the movement of goods from the territory of one Party to the terri- tory of the other Party;
(3) Historical evidence that some or all of the persons involved in the move- ment from the territory of one Party to the territory of the other Party of goods within a specific product sector have not complied with a Party’s laws and regulations governing importa- tions; or
(4) Other information that the re- questing Party and the Party from whom the information is requested agree is sufficient in the context of a particular request;
(r) Recovered goods. ‘‘Recovered goods’’ means materials in the form of indi- vidual parts that are the result of:
(1) The disassembly of used goods into individual parts; and
(2) The cleaning, inspecting, testing, or other processing that is necessary to
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improve such individual parts to sound working condition;
(s) Remanufactured goods. ‘‘Remanufactured goods’’ means goods classified in Chapter 84, 85, 87, or 90, or under heading 9402, HTSUS, that:
(1) Are entirely or partially com- prised of recovered goods as defined in § 10.1013(r) and,
(2) Have a similar life expectancy and enjoy a factory warranty similar to such new goods;
(t) Royalties. ‘‘Royalties’’ means pay- ments of any kind, including payments under technical assistance agreements or similar agreements, made as consid- eration for the use of, or right to use, any copyright, literary, artistic, or sci- entific work, patent, trademark, de- sign, model, plan, secret formula or process, excluding those payments under technical assistance agreements or similar agreements that can be re- lated to specific services such as:
(1) Personnel training, without re- gard to where performed; and
(2) If performed in the territory of one or both of the Parties, engineering, tooling, die-setting, software design and similar computer services;
(u) Sales promotion, marketing, and after-sales service costs. ‘‘Sales promotion, marketing, and after-sales service costs’’ means the following costs related to sales promotion, marketing, and after- sales service:
(1) Sales and marketing promotion; media advertising; advertising and market research; promotional and demonstration materials; exhibits; sales conferences, trade shows and con- ventions; banners; marketing displays; free samples; sales, marketing, and after-sales service literature (product brochures, catalogs, technical lit- erature, price lists, service manuals, sales aid information); establishment and protection of logos and trade- marks; sponsorships; wholesale and re- tail restocking charges; entertainment;
(2) Sales and marketing incentives; consumer, retailer or wholesaler re- bates; merchandise incentives;
(3) Salaries and wages, sales commis- sions, bonuses, benefits (for example, medical, insurance, pension), traveling and living expenses, membership and professional fees, for sales promotion,
marketing, and after-sales service per- sonnel;
(4) Recruiting and training of sales promotion, marketing, and after-sales service personnel, and after-sales train- ing of customers’ employees, where such costs are identified separately for sales promotion, marketing, and after- sales service of goods on the financial statements or cost accounts of the pro- ducer;
(5) Product liability insurance; (6) Office supplies for sales pro-
motion, marketing, and after-sales service of goods, where such costs are identified separately for sales pro- motion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(7) Telephone, mail and other com- munications, where such costs are identified separately for sales pro- motion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer;
(8) Rent and depreciation of sales promotion, marketing, and after-sales service offices and distribution centers;
(9) Property insurance premiums, taxes, cost of utilities, and repair and maintenance of sales promotion, mar- keting, and after-sales service offices and distribution centers, where such costs are identified separately for sales promotion, marketing, and after-sales service of goods on the financial state- ments or cost accounts of the producer; and
(10) Payments by the producer to other persons for warranty repairs;
(v) Self-produced material. ‘‘Self-pro- duced material’’ means an originating material that is produced by a pro- ducer of a good and used in the produc- tion of that good;
(w) Shipping and packing costs. ‘‘Shipping and packing costs’’ means the costs incurred in packing a good for shipment and shipping the good from the point of direct shipment to the buyer, excluding the costs of preparing and packaging the good for retail sale;
(x) Total cost. ‘‘Total cost’’ means all product costs, period costs, and other costs for a good incurred in the terri- tory of one or both of the Parties. Product costs are costs that are associ- ated with the production of a good and include the value of materials, direct
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labor costs, and direct overhead. Period costs are costs, other than product costs, that are expensed in the period in which they are incurred, such as selling expenses and general and ad- ministrative expenses. Other costs are all costs recorded on the books of the producer that are not product costs or period costs, such as interest. Total cost does not include profits that are earned by the producer, regardless of whether they are retained by the pro- ducer or paid out to other persons as dividends, or taxes paid on those prof- its, including capital gains taxes;
(y) Used. ‘‘Used’’ means utilized or consumed in the production of goods; and
(z) Value. ‘‘Value’’ means the value of a good or material for purposes of cal- culating customs duties or for purposes of applying this subpart.
§ 10.1014 Originating goods. Except as otherwise provided in this
subpart and General Note 33(n), HTSUS, a good imported into the cus- toms territory of the United States will be considered an originating good under the UKFTA only if:
(a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties;
(b) The good is produced entirely in the territory of one or both of the Par- ties and:
(1) Each non-originating material used in the production of the good un- dergoes an applicable change in tariff classification specified in General Note 33(o), HTSUS, and the good satisfies all other applicable requirements of Gen- eral Note 33, HTSUS; or
(2) The good otherwise satisfies any applicable regional value content or other requirements specified in Gen- eral Note 33(o), HTSUS, and satisfies all other applicable requirements of General Note 33, HTSUS; or
(c) The good is produced entirely in the territory of one or both of the Par- ties exclusively from originating mate- rials.
§ 10.1015 Regional value content. (a) General. Except for goods to which
paragraph (d) of this section applies, where General Note 33, HTSUS, sets forth a rule that specifies a regional
value content test for a good, the re- gional value content of such good must be calculated by the importer, ex- porter, or producer of the good on the basis of the build-down method de- scribed in paragraph (b) of this section or the build-up method described in paragraph (c) of this section.
(b) Build-down method. Under the build-down method, the regional value content must be calculated on the basis of the formula RVC = ((AV ¥ VNM)/AV) × 100, where RVC is the re- gional value content, expressed as a percentage; AV is the adjusted value of the good; and VNM is the value of non- originating materials, other than indi- rect materials, that are acquired and used by the producer in the production of the good, but does not include the value of a material that is self-pro- duced.
(c) Build-up method. Under the build- up method, the regional value content must be calculated on the basis of the formula RVC = (VOM/AV) × 100, where RVC is the regional value content, ex- pressed as a percentage; AV is the ad- justed value of the good; and VOM is the value of originating materials, other than indirect materials, that are acquired or self-produced and used by the producer in the production of the good.
(d) Special rule for certain automotive goods. (1) General. Where General Note 33, HTSUS, sets forth a rule that speci- fies a regional value content test for an automotive good provided for in any of subheadings 8407.31 through 8407.34 (en- gines), subheading 8408.20 (diesel engine for vehicles), heading 8409 (parts of en- gines), headings 8701 through 8705 (motor vehicles), and headings 8706 (chassis), 8707 (bodies), and 8708 (motor vehicle parts), HTSUS, the regional value content of such good may be cal- culated by the importer, exporter, or producer of the good on the basis of the net cost method described in paragraph (d)(2) of this section.
(2) Net cost method. Under the net cost method, the regional value content is calculated on the basis of the formula RVC = ((NC ¥ VNM)/NC) × 100, where RVC is the regional value content, ex- pressed as a percentage; NC is the net cost of the good; and VNM is the value of non-originating materials, other
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than indirect materials, that are ac- quired and used by the producer in the production of the good, but does not in- clude the value of a material that is self-produced. Consistent with the pro- visions set out in Generally Accepted Accounting Principles, applicable in the territory of the Party where the good is produced, the net cost of the good must be determined by:
(i) Calculating the total cost incurred with respect to all goods produced by the producer of the automotive good, subtracting any sales promotion, mar- keting, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the total cost of all such goods, and then reasonably allo- cating the resulting net cost of those goods to the automotive good;
(ii) Calculating the total cost in- curred with respect to all goods pro- duced by the producer of the auto- motive good, reasonably allocating the total cost to the automotive good, and then subtracting any sales promotion, marketing, and after-sales service costs, royalties, shipping and packing costs, and non-allowable interest costs that are included in the portion of the total cost allocated to the automotive good; or
(iii) Reasonably allocating each cost that forms part of the total costs in- curred with respect to the automotive good so that the aggregate of these costs does not include any sales pro- motion, marketing, and after-sales service costs, royalties, shipping and packing costs, or non-allowable inter- est costs.
(3) Motor vehicles. (i) General. For pur- poses of calculating the regional value content under the net cost method for an automotive good that is a motor ve- hicle provided for in any of headings 8701 through 8705, an importer, ex- porter, or producer may average the amounts calculated under the formula set forth in paragraph (d)(2) of this sec- tion over the producer’s fiscal year using any one of the categories de- scribed in paragraph (d)(3)(ii) of this section either on the basis of all motor vehicles in the category or those motor vehicles in the category that are ex- ported to the territory of one or both Parties.
(ii) Categories. The categories referred to in paragraph (d)(3)(i) of this section are as follows:
(A) The same model line of motor ve- hicles, in the same class of vehicles, produced in the same plant in the terri- tory of a Party, as the motor vehicle for which the regional value content is being calculated;
(B) The same class of motor vehicles, and produced in the same plant in the territory of a Party, as the motor vehi- cle for which the regional value con- tent is being calculated; and
(C) The same model line of motor ve- hicles produced in the territory of a Party as the motor vehicle for which the regional value content is being cal- culated.
(4) Other automotive goods. (i) General. For purposes of calculating the re- gional value content under the net cost method for automotive goods provided for in any of subheadings 8407.31 through 8407.34, subheading 8408.20, heading 8409, 8706, 8707, or 8708, HTSUS, that are produced in the same plant, an importer, exporter, or producer may:
(A) Average the amounts calculated under the formula set forth in para- graph (d)(2) of this section over any of the following: the fiscal year, or any quarter or month, of the motor vehicle producer to whom the automotive good is sold, or the fiscal year, or any quar- ter or month, of the producer of the automotive good, provided the goods were produced during the fiscal year, quarter, or month that is the basis for the calculation;
(B) Determine the average referred to in paragraph (d)(4)(i)(A) of this section separately for such goods sold to one or more motor vehicle producers; or
(C) Make a separate determination under paragraph (d)(4)(i)(A) or (B) of this section for automotive goods that are exported to the territory of Korea or the United States.
(ii) Duration of use. A person select- ing an averaging period of one month or quarter under paragraph (d)(4)(i)(A) of this section must continue to use that method for that category of auto- motive goods throughout the fiscal year.
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§ 10.1016 Value of materials. (a) Calculating the value of materials.
Except as provided in § 10.1024 of this subpart, for purposes of calculating the regional value content of a good under General Note 33 HTSUS, and for pur- poses of applying the de minimis (see § 10.1018 of this subpart) provisions of General Note 33, HTSUS, the value of a material is:
(1) In the case of a material imported by the producer of the good, the ad- justed value of the material;
(2) In the case of a material acquired by the producer in the territory where the good is produced, the value, deter- mined in accordance with Articles 1 through 8, Article 15, and the cor- responding interpretative notes of the Customs Valuation Agreement, of the material, i.e., in the same manner as for imported goods, with reasonable modifications to the provisions of the Customs Valuation Agreement as may be required due to the absence of an importation by the producer (includ- ing, but not limited to, treating a do- mestic purchase by the producer as if it were a sale for export to the country of importation); or
(3) In the case of a self-produced ma- terial, the sum of:
(i) All the costs incurred in the pro- duction of the material, including gen- eral expenses; and
(ii) An amount for profit equivalent to the profit added in the normal course of trade.
(b) Examples. The following examples illustrate application of the principles set forth in paragraph (a)(2) of this sec- tion:
Example 1. A producer in Korea purchases material x from an unrelated seller in Korea for $100. Under the provisions of Article 1 of the Customs Valuation Agreement, trans- action value is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in ac- cordance with the provisions of Article 8. In order to apply Article 1 to this domestic pur- chase by the producer, such purchase is treated as if it were a sale for export to the country of importation. Therefore, for pur- poses of determining the adjusted value of material x, Article 1 transaction value is the price actually paid or payable for the goods when sold to the producer in Korea ($100), ad- justed in accordance with the provisions of Article 8. In this example, it is irrelevant
whether material x was initially imported into Korea by the seller (or by anyone else). So long as the producer acquired material x in Korea, it is intended that the value of ma- terial x will be determined on the basis of the price actually paid or payable by the pro- ducer adjusted in accordance with the provi- sions of Article 8.
Example 2. Same facts as in Example 1, ex- cept that the sale between the seller and the producer is subject to certain restrictions that preclude the application of Article 1. Under Article 2 of the Customs Valuation Agreement, the value is the transaction value of identical goods sold for export to the same country of importation and ex- ported at or about the same time as the goods being valued. In order to permit the application of Article 2 to the domestic ac- quisition by the producer, it should be modi- fied so that the value is the transaction value of identical goods sold within Korea at or about the same time the goods were sold to the producer in Korea. Thus, if the seller of material x also sold an identical material to another buyer in Korea without restric- tions, that other sale would be used to deter- mine the adjusted value of material x.
(c) Permissible additions to, and deduc- tions from, the value of materials. (1) Ad- ditions to originating materials. For orig- inating materials, the following ex- penses, if not included under paragraph (a) of this section, may be added to the value of the originating material:
(i) The costs of freight (‘‘cost of freight’’ includes the costs of all types of freight, including in-land freight in- curred within a Party’s territory, re- gardless of the mode of transpor- tation), insurance, packing, and all other costs incurred in transporting the material within a Party’s territory or between the Parties to the location of the producer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable; and
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or byproducts.
(2) Deductions from non-originating ma- terials. For non-originating materials, if included under paragraph (a) of this section, the following expenses may be
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deducted from the value of the non- originating material:
(i) The costs of freight (‘‘cost of freight’’ includes the costs of all types of freight, including in-land freight in- curred within a Party’s territory, re- gardless of the mode of transpor- tation), insurance, packing, and all other costs incurred in transporting the material within a Party’s territory or between the territories of the Par- ties to the location of the producer;
(ii) Duties, taxes, and customs bro- kerage fees on the material paid in the territory of one or both of the Parties, other than duties and taxes that are waived, refunded, refundable, or other- wise recoverable, including credit against duty or tax paid or payable;
(iii) The cost of waste and spoilage resulting from the use of the material in the production of the good, less the value of renewable scrap or by-prod- ucts; and
(iv) The cost of originating materials used in the production of the non-origi- nating material in the territory of a Party.
(d) Accounting method. Any cost or value referenced in General Note 33, HTSUS, and this subpart, must be re- corded and maintained in accordance with the Generally Accepted Account- ing Principles applicable in the terri- tory of the Party in which the good is produced.
§ 10.1017 Accumulation. (a) Originating goods or materials
from the territory of one Party, incor- porated into a good in the territory of the other Party will be considered to originate in the territory of that other Party.
(b) A good that is produced in the territory of one or both of the Parties by one or more producers is an origi- nating good if the good satisfies the re- quirements of § 10.1014 of this subpart and all other applicable requirements of General Note 33, HTSUS.
§ 10.1018 De minimis. (a) General. Except as provided in
paragraphs (b) and (c) of this section, a good that does not undergo a change in tariff classification pursuant to Gen- eral Note 33, HTSUS, is an originating good if:
(1) The value of all non-originating materials used in the production of the good that do not undergo the applica- ble change in tariff classification does not exceed 10 percent of the adjusted value of the good;
(2) The value of the non-originating materials described in paragraph (a)(1) of this section is included in the value of non-originating materials for any applicable regional value content re- quirement for the good under General Note 33, HTSUS; and
(3) The good meets all other applica- ble requirements of General Note 33, HTSUS.
(b) Exceptions. Paragraph (a) of this section does not apply to:
(1) A non-originating material pro- vided for in Chapter 3, HTSUS, that is used in the production of a good classi- fied in that Chapter;
(2) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids classified under sub- headings 1901.90 or 2106.90, HTSUS, that is used in the production of a good pro- vided for in Chapter 4, HTSUS;
(3) A non-originating material pro- vided for in Chapter 4, HTSUS, or a non-originating dairy preparation con- taining over 10 percent by weight of milk solids provided for in subheading 1901.90, HTSUS, which is used in the production of the following goods:
(i) Infant preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.10, HTSUS;
(ii) Mixes and doughs, containing over 25 percent by weight of butterfat, not put up for retail sale, provided for in subheading 1901.20, HTSUS;
(iii) Dairy preparations containing over 10 percent by weight of milk solids provided for in subheading 1901.90 or 2106.90, HTSUS;
(iv) Goods provided for in heading 2105, HTSUS;
(v) Beverages containing milk pro- vided for in subheading 2202.90, HTSUS; or
(vi) Animal feeds containing over 10 percent by weight of milk solids pro- vided for in subheading 2309.90, HTSUS;
(4) A non-originating material pro- vided for in Chapter 7, HTSUS that is
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used in the production of a good classi- fied under the following subheadings: 0703.10, 0703.20, 0709.59, 0709.60, 0710.21 through 0710.80, 0711.90, 0712.20, 0712.39 through 0713.10 or 0714.20, HTSUS;
(5) A non-originating material pro- vided for in heading 1006, HTSUS, or a non-originating rice product classified in Chapter 11, HTSUS that is used in the production of a good provided for under the headings 1006, 1102, 1103, 1104, HTSUS, or subheadings 1901.20 or 1901.90, HTSUS;
(6) A non-originating material pro- vided for in heading 0805, HTSUS or subheadings 2009.11 through 2009.39, HTSUS, that is used in the production of a good provided for under sub- headings 2009.11 through 2009.39, HTSUS, or in fruit or vegetable juice of any single fruit or vegetable, fortified with minerals or vitamins, con- centrated or unconcentrated, provided for under subheadings 2106.90 or 2202.90, HTSUS;
(7) Non-originating peaches, pears, or apricots provided for in Chapters 8 or 20, HTSUS, that are used in the produc- tion of a good classified under heading 2008, HTSUS;
(8) A non-originating material pro- vided for in Chapter 15, HTSUS, that is used in the production of a good classi- fied under headings 1501 through 1508, 1512, 1514, or 1515, HTSUS;
(9) A non-originating material pro- vided for in heading 1701, HTSUS, that is used in the production of a good pro- vided for in any of headings 1701 through 1703, HTSUS;
(10) A non-originating material pro- vided for in Chapter 17, HTSUS, that is used in the production of a good pro- vided for in subheading 1806.10, HTSUS; or
(11) Except as provided in paragraphs (b)(1) through (10) of this section and General Note 33, HTSUS, a non-origi- nating material used in the production of a good provided for in any of Chap- ters 1 through 24, HTSUS, unless the non-originating material is provided for in a different subheading than the good for which origin is being deter- mined under this subpart.
(c) Textile and apparel goods. (1) Gen- eral. Except as provided in paragraph (c)(2) of this section, a textile or ap- parel good that is not an originating
good because certain fibers or yarns used in the production of the compo- nent of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classification set out in General Note 33, HTSUS, will nevertheless be consid- ered to be an originating good if the total weight of all such fibers or yarns in that component is not more than 7 percent of the total weight of that component.
(2) Exception for goods containing elas- tomeric yarns. A textile or apparel good containing elastomeric yarns in the component of the good that determines the tariff classification of the good will be considered an originating good only if such yarns are wholly formed and finished in the territory of a Party.
(3) For purposes of this section, ‘‘wholly formed or finished’’ means when used in reference to fabrics, all produc- tion processes and finishing operations necessary to produce a finished fabric ready for use without further proc- essing. These processes and operations include formation processes, such as weaving, knitting, needling, tufting, felting, entangling, or other such proc- esses, and finishing operations, includ- ing bleaching, dyeing, and printing. When used in reference to yarns, ‘‘wholly formed or finished’’ means all production processes and finishing op- erations, beginning with the extrusion of filaments, strips, film, or sheet, and including drawing to fully orient a fila- ment or slitting a film or sheer into strip, or the spinning of all fibers into yarn, or both, and ending with a fin- ished yarn or plied yarn.
§ 10.1019 Fungible goods and mate- rials.
(a) General. A person claiming that a fungible good or material is an origi- nating good may base the claim either on the physical segregation of each fungible good or material or by using an inventory management method with respect to the fungible good or mate- rial. For purposes of this section, the term ‘‘inventory management method’’ means:
(1) Averaging; (2) ‘‘Last-in, first-out;’’ (3) ‘‘First-in, first-out;’’ or
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(4) Any other method that is recog- nized in the Generally Accepted Ac- counting Principles of the Party in which the production is performed or otherwise accepted by that country.
(b) Duration of use. A person selecting an inventory management method under paragraph (a) of this section for a particular fungible good or material must continue to use that method for that fungible good or material throughout the fiscal year of that per- son.
§ 10.1020 Accessories, spare parts, or tools.
(a) General. Accessories, spare parts, or tools that are delivered with a good and that form part of the good’s stand- ard accessories, spare parts, or tools will be treated as originating goods if the good is an originating good, and will be disregarded in determining whether all the non-originating mate- rials used in the production of the good undergo an applicable change in tariff classification specified in General Note 33, HTSUS, provided that:
(1) The accessories, spare parts, or tools are classified with, and not invoiced separately from, the good; and
(2) The quantities and value of the accessories, spare parts, or tools are customary for the good.
(b) Regional value content. If the good is subject to a regional value content requirement, the value of the acces- sories, spare parts, or tools is taken into account as originating or non- originating materials, as the case may be, in calculating the regional value content of the good under § 10.1015 of this subpart.
§ 10.1021 Goods classifiable as goods put up in sets.
Notwithstanding the specific rules set forth in General Note 33, HTSUS, goods classifiable as goods put up in sets for retail sale as provided for in General Rule of Interpretation 3, HTSUS, will not be considered to be originating goods unless:
(a) Each of the goods in the set is an originating good; or
(b) The total value of the non-origi- nating goods in the set does not exceed:
(1) In the case of textile or apparel goods, 10 percent of the adjusted value of the set; or
(2) In the case of a good other than a textile or apparel good, 15 percent of the adjusted value of the set.
§ 10.1022 Retail packaging materials and containers.
(a) Effect on tariff shift rule. Pack- aging materials and containers in which a good is packaged for retail sale, if classified with the good for which preferential tariff treatment under the UKFTA is claimed, will be disregarded in determining whether all non-originating materials used in the production of the good undergo the ap- plicable change in tariff classification set out in General Note 33, HTSUS.
(b) Effect on regional value content cal- culation. If the good is subject to a re- gional value content requirement, the value of such packaging materials and containers will be taken into account as originating or non-originating mate- rials, as the case may be, in calculating the regional value content of the good.
Example 1. Korean Producer A of good C imports 100 non-originating blister packages to be used as retail packaging for good C. As provided in § 10.1016(a)(1) of this subpart, the value of the blister packages is their ad- justed value, which in this case is $10. Good C has a regional value content requirement. The United States importer of good C decides to use the build-down method, RVC = ((AV ¥ VNM)/AV) × 100 (see § 10.1015(b) of this sub- part), in determining whether good C satis- fies the regional value content requirement. In applying this method, the non-originating blister packages are taken into account as non-originating. As such, their $10 adjusted value is included in the VNM, value of non- originating materials, of good C.
Example 2. Same facts as in Example 1, ex- cept that the blister packages are origi- nating. In this case, the adjusted value of the originating blister packages would not be in- cluded as part of the VNM of good C under the build-down method. However, if the U.S. importer had used the build-up method, RVC = (VOM/AV) × 100 (see § 10.1015(c) of this sub- part), the adjusted value of the blister pack- aging would be included as part of the VOM, value of originating materials.
§ 10.1023 Packing materials and con- tainers for shipment.
(a) Effect on tariff shift rule. Packing materials and containers for shipment,
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as defined in § 10.1013(m) of this sub- part, are to be disregarded in deter- mining whether the non-originating materials used in the production of the good undergo an applicable change in tariff classification set out in General Note 33, HTSUS. Accordingly, such ma- terials and containers are not required to undergo the applicable change in tariff classification even if they are non-originating.
(b) Effect on regional value content cal- culation. Packing materials and con- tainers for shipment, as defined in § 10.1013(m) of this subpart, are to be disregarded in determining the re- gional value content of a good im- ported into the United States. Accord- ingly, in applying the build-down, build-up, or net cost method for deter- mining the regional value content of a good imported into the United States, the value of such packing materials and containers for shipment (whether originating or non-originating) is dis- regarded and not included in AV, ad- justed value, VNM, value of non-origi- nating materials, VOM, value of origi- nating materials, or NC, net cost of a good.
Example. Korean producer A produces good C. Producer A ships good C to the United States in a shipping container that it pur- chased from Company B in Korea. The ship- ping container is originating. The value of the shipping container determined under § 10.1016(a)(2) of this subpart is $3. Good C is subject to a regional value content require- ment. The transaction value of good C is $100, which includes the $3 shipping con- tainer. The U.S. importer decides to use the build-up method, RVC = (VOM/AV) × 100 (see § 10.1015(c) of this subpart), in determining whether good C satisfies the regional value content requirement. In determining the AV, adjusted value, of good C imported into the U.S., paragraph (b) of this section and the definition of AV require a $3 deduction for the value of the shipping container. There- fore, the AV is $97 ($100¥$3). In addition, the value of the shipping container is dis- regarded and not included in the VOM, value of originating materials.
§ 10.1024 Indirect materials. An indirect material, as defined in
§ 10.1002(n) of this subpart, will be dis- regarded for the purpose of deter- mining whether a good is originating.
Example. Korean Producer A produces good C using non-originating material B. Pro-
ducer A imports non-originating rubber gloves for use by workers in the production of good C. Good C is subject to a tariff shift requirement. As provided in § 10.1014(b)(1) of this subpart and General Note 33, each of the non-originating materials in good C must undergo the specified change in tariff classi- fication in order for good C to be considered originating. Although non-originating mate- rial B must undergo the applicable tariff shift in order for good C to be considered originating, the rubber gloves do not because they are indirect materials and are dis- regarded for purposes of determining wheth- er the good is originating.
§ 10.1025 Transit and transshipment. (a) General. A good that has under-
gone production necessary to qualify as an originating good under § 10.1014 of this subpart will not be considered an originating good if, subsequent to that production, the good:
(1) Undergoes further production or any other operation outside the terri- tories of the Parties, other than un- loading, reloading, or any other oper- ation necessary to preserve the good in good condition or to transport the good to the territory of a Party; or
(2) Does not remain under the control of customs authorities in the territory of a non-Party.
(b) Documentary evidence. An im- porter making a claim that a good is originating may be required to dem- onstrate, to CBP’s satisfaction, that the conditions and requirements set forth in paragraph (a) of this section were met. An importer may dem- onstrate compliance with this section by submitting documentary evidence. Such evidence may include, but is not limited to, bills of lading, airway bills, packing lists, commercial invoices, re- ceiving and inventory records, and cus- toms entry and exit documents.
ORIGIN VERIFICATIONS AND DETERMINATIONS
§ 10.1026 Verification and justification of claim for preferential tariff treat- ment.
(a) Verification. A claim for pref- erential tariff treatment made under § 10.1003(b) or § 10.1011 of this subpart, including any statements or other in- formation submitted to CBP in support of the claim, will be subject to such verification as the port director deems
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necessary. In the event that the port director is provided with insufficient information to verify or substantiate the claim, the port director finds a pat- tern of conduct, indicating that an im- porter, exporter, or producer has pro- vided false or unsupported declarations or certifications, or the exporter or producer fails to consent to a verification visit, the port director may deny the claim for preferential treatment. A verification of a claim for preferential tariff treatment under UKFTA for goods imported into the United States may be conducted by means of one or more of the following:
(1) Written requests for information from the importer, exporter, or pro- ducer;
(2) Written questionnaires to the im- porter, exporter, or producer;
(3) Visits to the premises of the ex- porter or producer in the territory of Korea, to review the records of the type referred to in § 10.1009(c)(1) of this subpart or to observe the facilities used in the production of the good, in ac- cordance with the framework that the Parties develop for conducting verifications; and
(4) Such other procedures to which the Parties may agree.
(b) Applicable accounting principles. When conducting a verification of ori- gin to which Generally Accepted Ac- counting Principles may be relevant, CBP will apply and accept the Gen- erally Accepted Accounting Principles applicable in the country of produc- tion.
§ 10.1027 Special rule for verifications in Korea of U.S. imports of textile and apparel goods.
(a) Procedures to determine whether a claim of origin is accurate. (1) General. For the purpose of determining that a claim of origin for a textile or apparel good is accurate, CBP may request that the government of the Republic of Korea conduct a verification, regard- less of whether a claim is made for preferential tariff treatment.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP, if directed by the President, may take appropriate action, which may include suspending the liquidation of the entry of the tex-
tile or apparel good for which a claim for preferential tariff treatment or a claim of origin has been made.
(3) Actions following a verification. If on completion of a verification under this paragraph, CBP makes a negative determination, or if CBP is unable to determine that a claim of origin for a textile or apparel good is accurate within 12 months after its request for a verification, CBP, if directed by the President, may take appropriate ac- tion, which may include:
(i) Denying the application of pref- erential tariff treatment to the textile or apparel good for which a claim for preferential tariff treatment has been made that is the subject of a verification if CBP determines that the enterprise has provided insufficient or incorrect information to support the claim; and
(ii) Denying entry to the textile or apparel good for which a claim for pref- erential tariff treatment or a claim of origin has been made that is the sub- ject of a verification, if CBP deter- mines that the enterprise has provided insufficient or incorrect information to support the claim.
(b) Procedures to determine compliance with applicable customs laws and regula- tions of the United States. (1) General. For purposes of enabling CBP to deter- mine that an exporter or producer is complying with applicable customs laws, regulations, and procedures re- garding trade in textile and apparel goods, CBP may request that the gov- ernment of the Republic of Korea con- duct a verification, if CBP has a rea- sonable suspicion of unlawful activity relating to trade in textile or apparel goods by a person of Korea.
(2) Actions during a verification. While a verification under this paragraph is being conducted, CBP, if directed by the President, may take appropriate action, which may include suspending the liquidation of the entry of any tex- tile or apparel good exported or pro- duced by the enterprise subject to the verification.
(3) Actions following a verification. If on completion of a verification under this paragraph, CBP makes a negative determination, or if CBP is unable to determine that the person is complying
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with applicable customs measures af- fecting trade in textile or apparel goods within 12 months after its re- quest for a verification, CBP, if di- rected by the President, may take ap- propriate action, which may include:
(i) Denying the application of pref- erential tariff treatment to any textile or apparel good exported or produced by the enterprise subject to the verification if CBP determines that the enterprise has provided insufficient or incorrect information with respect to its obligations under the applicable customs laws, regulations, and proce- dures regarding trade in textile and ap- parel goods; and
(ii) Denying entry to any textile or apparel good exported or produced by the enterprise subject to the verification, if CBP determines that the enterprise has provided insufficient or incorrect information with respect to its obligations under the applicable customs laws, regulations, and proce- dures regarding trade in textile and ap- parel goods.
(c) Denial of permission to conduct a verification. If an enterprise does not consent to a verification under this section, CBP may deny preferential tariff treatment or deny entry to simi- lar goods exported or produced by the enterprise that would have been the subject of the verification.
(d) Action by U.S. officials in con- ducting a verification abroad. U.S. offi- cials may undertake or assist in a verification under this section by con- ducting visits in the territory of Korea, along with the competent authorities of Korea, to the premises of an ex- porter, producer, or any other enter- prise involved in the movement of tex- tile or apparel goods from Korea to the United States.
(e) Continuation of appropriate action. Before taking any action under para- graph (a) or (b), CBP will notify the government of the Republic of Korea. CBP may continue to take appropriate action under paragraph (a) or (b) of this section until it receives informa- tion sufficient to enable it to make the determination described in paragraphs (a) and (b) of this section. CBP may make public the identity of a person that CBP has determined to be engaged in circumvention as provided under
this section or that has failed to dem- onstrate that it produces, or is capable of producing, textile or apparel goods.
§ 10.1028 Issuance of negative origin determinations.
If, as a result of an origin verification initiated under this sub- part, CBP determines that a claim for preferential tariff treatment under this subpart should be denied, it will issue a determination in writing or via an au- thorized electronic data interchange system to the importer that sets forth the following:
(a) A description of the good that was the subject of the verification together with the identifying numbers and dates of the import documents pertaining to the good;
(b) A statement setting forth the findings of fact made in connection with the verification and upon which the determination is based; and
(c) With specific reference to the rules applicable to originating goods as set forth in General Note 33, HTSUS, and in §§ 10.1013 through 10.1025 of this subpart, the legal basis for the deter- mination.
§ 10.1029 Repeated false or unsup- ported preference claims.
Where verification or other informa- tion reveals a pattern of conduct by an importer, exporter, or producer of false or unsupported representations that goods qualify under the UKFTA rules of origin set forth in General Note 33, HTSUS, CBP may suspend preferential tariff treatment under the UKFTA to entries of identical goods covered by subsequent statements, declarations, or certifications by that importer, ex- porter, or producer until CBP deter- mines that representations of that per- son are in conformity with General Note 33, HTSUS.
PENALTIES
§ 10.1030 General.
Except as otherwise provided in this subpart, all criminal, civil, or adminis- trative penalties which may be im- posed on U.S. importers, exporters, and producers for violations of the customs and related U.S. laws and regulations
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will also apply to U.S. importers, ex- porters, and producers for violations of the U.S. laws and regulations relating to the UKFTA.
§ 10.1031 Corrected claim or certifi- cation by importers.
An importer who makes a corrected claim under § 10.1003(c) of this subpart will not be subject to civil or adminis- trative penalties under 19 U.S.C. 1592 for having made an incorrect claim or having submitted an incorrect certifi- cation, provided that the corrected claim is promptly and voluntarily made.
§ 10.1032 Corrected certification by U.S. exporters or producers.
Civil or administrative penalties pro- vided for under 19 U.S.C. 1592 will not be imposed on an exporter or producer in the United States who promptly and voluntarily provides written notifica- tion pursuant to § 10.1009(b) with re- spect to the making of an incorrect certification.
§ 10.1033 Framework for correcting claims or certifications.
(a) ‘‘Promptly and voluntarily’’ defined. Except as provided for in paragraph (b) of this section, for purposes of this sub- part, the making of a corrected claim or certification by an importer or the providing of written notification of an incorrect certification by an exporter or producer in the United States will be deemed to have been done promptly and voluntarily if:
(1)(i) Done before the commencement of a formal investigation, within the meaning of § 162.74(g) of this chapter; or
(ii) Done before any of the events specified in § 162.74(i) of this chapter have occurred; or
(iii) Done within 30 days after the im- porter, exporter, or producer initially becomes aware that the claim or cer- tification is incorrect; and
(2) Accompanied by a statement set- ting forth the information specified in paragraph (c) of this section; and
(3) In the case of a corrected claim or certification by an importer, accom- panied or followed by a tender of any actual loss of duties and merchandise processing fees, if applicable, in accord- ance with paragraph (d) of this section.
(b) Exception in cases involving fraud or subsequent incorrect claims. (1) Fraud. Notwithstanding paragraph (a) of this section, a person who acted fraudu- lently in making an incorrect claim or certification may not make a vol- untary correction of that claim or cer- tification. For purposes of this para- graph, the term ‘‘fraud’’ will have the meaning set forth in paragraph (C)(3) of appendix B to part 171 of this chapter.
(2) Subsequent incorrect claims. An im- porter who makes one or more incor- rect claims after becoming aware that a claim involving the same merchan- dise and circumstances is invalid may not make a voluntary correction of the subsequent claims pursuant to para- graph (a) of this section.
(c) Statement. For purposes of this subpart, each corrected claim or cer- tification must be accompanied by a statement, submitted in writing or via an authorized electronic data inter- change system, which:
(1) Identifies the class or kind of good to which the incorrect claim or certifi- cation relates;
(2) In the case of a corrected claim or certification by an importer, identifies each affected import transaction, in- cluding each port of importation and the approximate date of each importa- tion;
(3) Specifies the nature of the incor- rect statements or omissions regarding the claim or certification; and
(4) Sets forth, to the best of the per- son’s knowledge, the true and accurate information or data which should have been covered by or provided in the claim or certification, and states that the person will provide any additional information or data which is unknown at the time of making the corrected claim or certification within 30 days or within any extension of that 30-day pe- riod as CBP may permit in order for the person to obtain the information or data.
(d) Tender of actual loss of duties. A U.S. importer who makes a corrected claim must tender any actual loss of duties at the time of making the cor- rected claim, or within 30 days there- after, or within any extension of that 30-day period as CBP may allow in
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order for the importer to obtain the in- formation or data necessary to cal- culate the duties owed.
GOODS RETURNED AFTER REPAIR OR ALTERATION
§ 10.1034 Goods re-entered after repair or alteration in Korea.
(a) General. This section sets forth the rules which apply for purposes of obtaining duty-free treatment on goods returned after repair or alteration in Korea as provided for in subheadings 9802.00.40 and 9802.00.50, HTSUS. Goods returned after having been repaired or altered in Korea, regardless of whether the repair or alteration could be per- formed in the United States or has in- creased the value of the good and re- gardless of their origin, are eligible for duty-free treatment, provided that the requirements of this section are met. For purposes of this section, ‘‘repairs or alterations’’ means restoration, ad- dition, renovation, re-dyeing, cleaning, re-sterilizing, or other treatment that does not destroy the essential charac- teristics of, or create a new or commer- cially different good from, the good ex- ported from the United States.
(b) Goods not eligible for duty-free treatment after repair or alteration. The duty-free treatment referred to in paragraph (a) of this section will not apply to goods which, in their condi- tion as exported from the United States to Korea, are incomplete for their intended use and for which the processing operation performed in Korea constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods.
(c) Documentation. The provisions of § 10.8(a), (b), and (c) of this part, relat- ing to the documentary requirements for goods entered under subheading 9802.00.40 or 9802.00.50, HTSUS, will apply in connection with the entry of goods which are returned from Korea after having been exported for repairs or alterations and which are claimed to be duty free.
PART 11—PACKING AND STAMPING; MARKING
PACKING AND STAMPING
Sec. 11.1 Cigars, cigarettes, medicinal prepara-
tions, and perfumery. 11.2 Manufactured tobacco. 11.2a Release from Customs custody with-
out payment of tax on cigars, cigarettes and cigarette papers and tubes.
11.3 Package and notice requirements for cigars and cigarettes; package require- ments for cigarette papers and tubes.
11.5 [Reserved] 11.6 Distilled spirits, wines, and malt liq-
uors in bulk. 11.7 Distilled spirits and other alcoholic
beverages imported in bottles and simi- lar containers; regulations of the Bureau of Alcohol, Tobacco and Firearms.
MARKING
11.9 Special marking on certain articles. 11.12 Labeling of wool products to indicate
fiber content. 11.12a Labeling of fur products to indicate
composition. 11.12b Labeling textile fiber products. 11.13 False designations of origin and false
descriptions; false marking of articles of gold or silver.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i) and (j), Harmonized Tariff Schedule of the United States), 1624.
PACKING AND STAMPING
§ 11.1 Cigars, cigarettes, medicinal preparations, and perfumery.
(a) All cigars and cigarettes imported into the United States, except importa- tions by mail and in baggage, shall be placed in the public stores or in a des- ignated bonded warehouse to remain until inspected, weighed, and repacked, if necessary, under the Customs and in- ternal-revenue laws. However, if the in- voice and entry presented specify all of the information necessary for prompt determination of the estimate duty and tax on the packages of cigars and ciga- rettes covered thereby, the port direc- tor may permit designation of less than the entire importation for exam- ination.
(b) After the cigars and cigarettes have been examined, weighed, and ap- praised, before release the inspecting officer shall verify that they are in
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properly constructed packages, con- forming to the requirements of the reg- ulations of the Bureau of Alcohol, To- bacco and Firearms, bearing a legible imprint or a securely affixed label stat- ing the quantity, kind, and classifica- tion for tax purposes as required by such regulations. Cigars or cigarettes must be in compliance with such re- quirements before being released for consumption unless specifically ex- empted therefrom as indicated in § 11.3.
(c) The immediate containers of all domestic cigars, cigarettes, medicinal preparations, and perfumery, which are returned to the United States and are subject to a duty equal to an internal- revenue tax, shall be stamped by Cus- toms. The packaging requirements set forth in paragraph (b) of this section apply to returned cigars and cigarettes of domestic origin.
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 78–329, 43 FR 43454, Sept. 26, 1978]
§ 11.2 Manufactured tobacco. (a) If the invoice and entry presented
for manufactured tobacco specify all the information necessary for prompt determination of the estimated duty on the manufactured tobacco covered thereby, the port director may permit designation of less than the entire im- portation for examination.
(b) In the case of returned American manufactured tobacco, the packages shall be marked or stamped by Cus- toms with the inscription ‘‘American goods returned.’’
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 67–193, 32 FR 11764, Aug. 16, 1967]
§ 11.2a Release from Customs custody without payment of tax on cigars, cigarettes and cigarette papers and tubes.
Cigars, cigarettes, and cigarette pa- pers and tubes may be released from Customs custody without payment of any applicable internal revenue tax upon presentation of the Customs entry or withdrawal form and three copies of Alcohol, Tobacco and Fire- arms Form 2145 (5200.11) or 3072 (5210.14), certified by the appropriate regional regulatory administrator, Bu- reau of Alcohol, and Tobacco and Fire- arms. The Customs officer shall com- plete the notice of release, retain one
copy, send one copy to the regional regulatory administrator, and return one copy to the manufacturer. The re- lease may not be made under a mail entry. See § 145.13(b) of this chapter.
[T.D. 78–329, 43 FR 43454, Sept. 26, 1978]
§ 11.3 Package and notice require- ments for cigars and cigarettes; package requirements for cigarette papers and tubes.
Exemptions from tax on cigars, ciga- rettes, and cigarette papers and tubes apply in accordance with the regula- tions of the Bureau of Alcohol, To- bacco, and Firearms (27 CFR part 275) upon release from Customs custody of such articles imported by consular offi- cers and employees of foreign states. Cigars, cigarettes, cigarette papers, and tubes may also be released without payment of tax as provided in § 11.2a and for exhibition in accordance with part 147 of this chapter. Additionally, cigars, cigarettes, or cigarette papers and tubes may be admitted free of duty and tax under the provisions of Sub- chapter IV, Chapter 98, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), or section 321, Tariff Act of 1930, as amended (19 U.S.C. 1321), §§ 148.63, 148.74, and subpart I of part 148 of this chapter. Except in the foregoing instances and in any instance in which such articles are imported in pas- sengers’ baggage or are to be released under a mail entry for the personal consumption of the importer or for dis- position as his bona fide gift, the provi- sions in part 275 of the regulations of the Bureau of Alcohol, Tobacco, and Firearms (27 CFR part 275) as to pack- ages and notices thereon apply.
[T.D. 73–27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 73–227, 38 FR 22548, Aug. 22, 1973; T.D. 78–329, 43 FR 43454, Sept. 26, 1978; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 11.5 [Reserved]
§ 11.6 Distilled spirits, wines, and malt liquors in bulk.
(a) The port director, in his discre- tion, may require marks, brands, stamps, labels, or similar devices to be placed on any bulk container used for holding, storing, transferring, or con- veying imported distilled spirits,
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wines, and malt liquors, in accordance with 19 U.S.C. 467.
(b) Marks, brands, stamps, labels, or similar devices required by Federal, State, or local statute or regulation may be affixed, and Customs inspec- tion, gauging, marking, or measure- ment may be done, at the place of un- lading or other suitable place, unless the port director determines that in- spection, gauging, marking, or meas- urement shall be done at a public store, warehouse, or other appropriate facil- ity.
(c) Marks, brands, stamps, labels, or similar devices shall be permanent in nature and not subject to obliteration or removal as a result of handling or other condtions. The port director shall determine whether a mark, brand, stamp, label, or similar device is acceptable, based on the nature, sur- face, and composition of the container.
[T.D. 79–221, 44 FR 46813, Aug. 9, 1979; T.D. 80– 26, 45 FR 3901, Jan. 21, 1980; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 11.7 Distilled spirits and other alco- holic beverages imported in bottles and similar containers; regulations of the Bureau of Alcohol, Tobacco, and Firearms.
The importation of distilled spirits and other alcoholic beverages in bot- tles and similar containers is subject to regulations of the Bureau of Alco- hol, Tobacco and Firearms relating to strip stamps and other matters. (27 CFR parts 5, 201, and 251). Customs offi- cers and employees shall perform such functions as are necessary or proper on their part to carry out such regula- tions.
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 78–329, 43 FR 43454, Sept. 26, 1978]
MARKING
§ 11.9 Special marking on certain arti- cles.
(a) No movement, case, or dial pro- vided for in Chapter 91, Harmonized Tariff Schedule of the United States (HTSUS), shall be released for con- sumption until marked in exact com- pliance with the requirements of addi- tional U.S. Note 4, Chapter 91. If any article so required to be marked is found not to be marked to indicate the
country of origin, the 10 percent mark- ing duty shall be assessed, unless such marking is accomplished or the mer- chandise is exported or destroyed under Customs supervision prior to the liq- uidation of the entry, in accordance with the provisions of 19 U.S.C. 1304(f).
(b) The name of the manufacturer or purchaser which must appear on arti- cles provided for Chapter 91, Har- monized Tariff Schedule of the United States (HTSUS), and specified in Addi- tional U.S. Note 4, Chapter 91, may be either the actual name of the manufac- turer or purchaser or a duly registered trade name under which such manufac- turer or purchaser carries on his busi- ness. A trade-mark shall not be accept- ed as meeting any such special mark- ing requirement unless it includes the full name of the manufacturer or pur- chaser. The term ‘‘Purchaser’’ as used in this paragraph means the purchaser in the United States by whom or for whose account the articles are im- ported.
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988; T.D. 90– 51, 55 FR 28190, July 10, 1990; T.D. 97–82, 62 FR 51770, Oct. 3, 1997; 62 FR 55512, Oct. 27, 1997]
§ 11.12 Labeling of wool products to in- dicate fiber content.
(a) Wool products imported into the United States, except those made more than 20 years prior to importation, and except carpets, rugs, mats, and upholsteries, shall have affixed thereto a stamp, tag, label, or other means of identification, as required by the Wool Products Labeling Act of 1939 (54 Stat. 1129; 15 U.S.C. 68 et seq.) and the rules and regulations promulgated there- under by the Federal Trade Commis- sion (16 CFR part 300). The term ‘‘wool product’’ means any product, or any portion of a product, which contains, purports to contain, or in any way is represented as containing wool, reproc- essed wool, or reused wool.
(b) If imported wool products are not correctly labeled and the port director is satisfied that the error or omission involved no fraud or willful neglect, the importer shall be afforded a reason- able opportunity to label the merchan- dise under Customs supervision to con- form with the requirements of such act and the rules and regulations of the
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Federal Trade Commission. The com- pensation and expenses of Customs offi- cers and employees assigned to super- vise the labeling shall be reimbursed to the Government and shall be assessed in the same manner as in the case of marking of country of origin, § 134.55 of this chapter.
(c) Packages of wool products subject to the provisions of this section which are not designated for examination may be released pending examination of the designated packages, but only if there shall have been filed in connec- tion with the entry bonds on Customs Form 301, containing the bond condi- tions set forth in § 113.62 and/or § 113.68 of this chapter, as appropriate, in such amount as the port director may re- quire.
(d) The port director shall give writ- ten notice to the importer of any lack of compliance with the Wool Products Labeling Act of 1939 in respect of an importation of wool products, and pur- suant to § 141.113 of this chapter shall demand the immediate return of the involved products to Customs custody, unless the lack of compliance is forth- with corrected.
(e) If the products covered by a no- tice and demand given pursuant to paragraph (d) of this section are not promptly returned to Customs custody and the port director is not fully satis- fied that they have been brought into compliance with the Wool Products La- beling Act of 1939, appropriate action shall be taken to effect the collection of liquidated damages in an amount equal to the entered value of the mer- chandise not redelivered, plus the esti- mated duty thereon as determined at the time of entry, unless the owner or consignee shall file with the appro- priate Customs officer an application for cancellation of the liability in- curred under the bond upon the pay- ment as liquidated damages of a lesser amount than the full amount of the liquidated damages incurred, or upon the basis of such other terms and con- ditions as the Secretary of the Treas- ury may deem sufficient. The applica- tion shall contain a full statement of the reasons for the requested cancella- tion and shall be in duplicate.
(f) If any fraudulent violation of the act with respect to imported articles
comes to the attention of the port di- rector, the involved merchandise shall be placed under seizure, or a demand shall be made for the redelivery of the merchandise if it has been released from Customs custody, and the case shall be reported to the Federal Trade Commission, Washington, D.C.
(Sec. 8, 54 Stat. 1132; 15 U.S.C. 68f; R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72–262, 37 FR 20318, Sept. 29, 1972; T.D. 73–175, 38 FR 17446, July 2, 1973; T.D. 84–213, 49 FR 41167, Oct. 19, 1984]
§ 11.12a Labeling of fur products to in- dicate composition.
(a) Fur products imported into the United States shall have affixed there- to a label as required by section 4 of the Fur Products Labeling Act (15 U.S.C. 69b) and the rules and regula- tions promulgated thereunder by the Federal Trade Commission (16 CFR 301.1–301.49). The term ‘‘fur product’’ means any article of wearing apparel made in whole or in part of fur or used fur; except that such term shall not in- clude such articles as the Federal Trade Commission shall exempt by rea- son of the relatively small quantity or value of the fur or used fur contained therein.
(b) If imported fur products are not correctly labeled and the port director is satisfied that the error or omission involved no fraud or willful neglect, the importer shall be afforded a reason- able opportunity to label the merchan- dise under Customs supervision to con- form with the requirements of such act and the rules and regulations of the Federal Trade Commission. The com- pensation and expenses of Customs offi- cers and employees assigned to super- vise the labeling shall be reimbursed to the Government and shall be assessed in the same manner as in the case of marking of country of origin, § 134.55 of this chapter.
(c) Packages of fur products subject to the provisions of this section which are not designated for examination may be released pending examination of the designated packages, but only if there shall have been filed in connec- tion with the entry bonds on Customs
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Form 301, containing the bond condi- tions set forth in § 113.62 and/or § 113.68 of this chapter, as appropriate, in such amount as the port director may re- quire.
(d) The port director shall give writ- ten notice to the importer of any lack of compliance with the Fur Products Labeling Act in respect of an importa- tion of fur products, and pursuant to § 141.113 of this chapter shall demand the immediate return of the involved products to Customs custody, unless the lack of compliance is forthwith corrected.
(e) If the products covered by a no- tice and demand given pursuant to paragraph (d) of this section are not promptly returned to Customs custody and the port director is not fully satis- fied that they have been brought into compliance with the Fur Products La- beling Act, appropriate action shall be taken to effect the collection of liq- uidated damages in an amount equal to the entered value of the merchandise not redelivered, plus the estimated duty thereon as determined at the time of entry, unless the owner or consignee shall file with the appropriate Customs officer an application for cancellation of the liability incurred under the bond upon the payment as liquidated dam- ages of a lesser amount than the full amount of the liquidated damages in- curred, or upon the basis of such other terms and conditions as the Secretary of the Treasury may deem sufficient. The application shall contain a full statement of the reasons for the re- quested cancellation and shall be in du- plicate.
(f) If any fraudulent violation of the act with respect to imported articles comes to the attention of a port direc- tor, the involved merchandise shall be placed under seizure, or a demand shall be made for the redelivery of the mer- chandise if it has been released from Customs custody, and the case shall be reported to the Federal Trade Commis- sion, Washington, DC 20580.
(Sec. 6, 65 Stat. 178; 15 U.S.C. 69d; R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72–262, 37 FR 20318, Sept. 29, 1972; T.D. 73–175, 38 FR 17446, July 2, 1973; T.D. 84–213, 49 FR 41167, Oct. 19, 1984]
§ 11.12b Labeling textile fiber prod- ucts.
(a) Textile fiber products imported into the United States shall be labeled or marked in accordance with the Tex- tile Fiber Products Identification Act (15 U.S.C. 70 through 70k) and the rules and regulations promulgated there- under by the Federal Trade Commis- sion (16 CFR part 303) unless exempt from marking or labeling under section 12 of the Act (15 U.S.C. 70i). An invoice or other paper, containing the specified information may be used in lieu of a label where the textile product is not in the form intended for sale, delivery to, or for use by the ultimate con- sumer. Rule 31 of the Federal Trade Commission (16 CFR 303.31).
(b) If imported fiber products are not correctly labeled and the port director is satisfied that the error or omission involved no fraud or willful neglect, the importer shall be afforded a reason- able opportunity to label the merchan- dise under customs supervision to con- form with the requirements of such Act and the rules and regulations of the Federal Trade Commission. The com- pensation and expenses of Customs offi- cers and employees assigned to super- vise the labeling shall be reimbursed to the Government and shall be assessed in the same manner as in the case of marking of country of origin, § 134.55 of this chapter.
(c) Packages of fiber products subject to the provisions of this section which are not designated for examination may be released pending examination of the designated packages, but only if there shall have been filed in connec- tion with the entry bonds on Customs Form 301, containing the bond condi- tions set forth in § 113.62 and/or § 113.68 of this chapter, as appropriate, in such amount as the port director may re- quire.
(d) The port director shall give writ- ten notice to the importer of any lack of compliance with the Fiber Products Identification Act in respect of an im- portation of fiber products, and pursu- ant to § 141.113 of this chapter shall de- mand the immediate return of the in- volved products to customs custody, unless the lack of compliance is forth- with corrected.
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(e) If the products covered by a no- tice and demand given pursuant to the preceding paragraph are not promptly returned to Customs custody and the port director is not fully satisfied that they have been brought into compli- ance with the Fiber Products Identi- fication Act, appropriate action shall be taken to effect the collection of liq- uidated damages in an amount equal to the entered value of the merchandise not redelivered, plus the estimated duty thereon as determined at the time of entry, unless the owner or consignee shall file with the appropriate Customs officer an application for cancellation of the liability incurred under the bond upon the payment as liquidated dam- ages of a lesser amount than the full amount of the liquidated damages in- curred, or upon the basis of such other terms and conditions as the Secretary of the Treasury may deem sufficient. The application shall contain a full statement of the reasons for the re- quested cancellation and shall be in du- plicate.
(f) If any willful or flagrant violation of the Act with respect to the importa- tion of articles comes to the attention of a port director, the involved mer- chandise shall be placed under seizure, or a demand shall be made for the rede- livery of the merchandise if it has been released from Customs custody, and the case shall be reported to the Fed- eral Trade Commission, Washington DC 20580.
(Sec. 501, 65 Stat. 290, secs. 2–12, 14, 72 Stat. 1717; 15 U.S.C. 70–70k, 31 U.S.C. 483a; R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 72–262, 37 FR 20318, Sept. 29, 1972; T.D. 73–175, 38 FR 17446, July 2, 1973; T.D. 84–213, 49 FR 41167, Oct. 19, 1984]
§ 11.13 False designations of origin and false descriptions; false mark- ing of articles of gold or silver.
(a) Articles which bear, or the con- tainers which bear, false designations of origin, or false descriptions or rep- resentations, including words or other symbols tending falsely to describe or represent the articles, are prohibited importation under 15 U.S.C. 294, 295,
296, 1124, 1125 or 48 U.S.C. 1405q, and shall be detained.
(b) Articles made in whole or in part of gold or silver or alloys thereof im- ported for sale by manufacturers or dealers which are marked or labeled in a manner indicating a greater degree of fineness than the actual fineness of the gold or silver or alloys thereof, and any plated or filled articles so imported which are marked or labeled to indi- cate the fineness of the gold or silver and are not also marked or labeled to indicate the plated or filled condition or are marked or labeled with the word ‘‘sterling’’ or the word ‘‘coin’’, are pro- hibited importation and shall be de- tained, and the facts shall be reported to the United States attorney.
(c) Whenever any articles are de- tained in accordance with the fore- going provisions of this section, and the case of any articles detained under paragraph (b) of this section the United States attorney has indicated that he does not intend to prosecute, the arti- cles shall be seized and forfeited in the usual manner, except that, upon the filing of a petition therefor by the im- porter prior to final disposition of the articles, the port director may release the articles upon the condition that the prohibited marking be removed or obliterated or that the articles and containers be properly marked to indi- cate their origin, contents, or condi- tion, or may permit the articles to be exported or destroyed under Customs supervision, and without expense to the Government.
(d) Articles forfeited for violation of section 294, 1124, or 1125, Title 15 and section 545, Title 18, U.S. Code, may be disposed of in accordance with the pro- cedure applicable to other Customs for- feitures, but may not be released from Customs custody except upon the re- moval by and at the expense of the party in interest of the prohibited
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marking by reason of which the arti- cles were seized, except articles dis- posed of under § 133.52 (a) or (b) of this chapter.
(Secs. 1–5, 34 Stat. 260–262, secs. 42, 43, 60 Stat. 440, 441, sec. 1, 62 Stat. 716, sec. 618, 46 Stat. 757; 15 U.S.C. 294–298, 1124, 1125, 18 U.S.C. 545, 19 U.S.C. 1618)
[28 FR 14701, Dec. 31, 1963, as amended by T.D. 79–159, 44 FR 31967, June 4, 1979; T.D. 89– 1, 53 FR 51253, Dec. 21, 1988]
PART 12—SPECIAL CLASSES OF MERCHANDISE
FOOD, DRUGS, AND COSMETICS, ECONOMIC POI- SONS, HAZARDOUS SUBSTANCES, AND DAN- GEROUS CAUSTIC OR CORROSIVE SUB- STANCES
Sec. 12.1 Cooperation with certain agencies;
joint regulations. 12.3 Release under bond; liquidated dam-
ages. 12.4 Exportation. 12.5 Shipment to other ports.
IMPORTATION OF CERTAIN CHEESES
12.6 Affidavits required to accompany entry.
MILK AND CREAM
12.7 Permits required for importation.
MEAT AND MEAT-FOOD PRODUCTS
12.8 Inspection; bond; release. 12.9 Release for final delivery to consignee.
PLANTS AND PLANT PRODUCTS
12.10 Regulations and orders of the Depart- ment of Agriculture.
12.11 Requirements for entry and release. 12.12 Release under bond. 12.13 Unclaimed shipments. 12.14 Detention. 12.15 Disposition; refund of duty.
AGRICULTURAL AND VEGETABLE SEEDS
12.16 Joint regulations of the Secretary of the Treasury and the Secretary of Agri- culture.
VIRUSES, SERUMS, AND TOXINS FOR TREATMENT OF DOMESTIC ANIMALS
12.17 Importation restricted. 12.18 Labels. 12.19 Detention; samples. 12.20 Disposition.
VIRUSES, SERUMS, TOXINS, ANTITOXINS, AND ANALOGOUS PRODUCTS FOR THE TREATMENT OF MAN
12.21 Licensed establishments. 12.22 Labels; samples. 12.23 Detention; examination; disposition.
DOMESTIC ANIMALS, ANIMAL PRODUCTS, AND ANIMAL FEEDING MATERIALS
12.24 Regulations of the Department of Ag- riculture.
WILD ANIMALS, BIRDS, AND INSECTS
12.26 Importations of wild animals, fish, amphibians, reptiles, mollusks, and crus- taceans; prohibited and endangered and threatened species; designated ports of entry; permits required.
12.27 Importation or exportation of wild animals or birds, or the dead bodies thereof illegally captured or killed, etc.
12.28 Importation of wild mammals and birds in violation of foreign law.
12.29 Plumage and eggs of wild birds. 12.30 Whaling. 12.31 Plant pests. 12.32 Honeybees and honeybee semen.
TEA
12.33 Importation of tea; entry; examina- tion for customs purposes.
WHITE PHOSPHORUS MATCHES
12.34 Importation prohibited; certificate of inspection; importer’s declaration.
12.35 [Reserved]
NARCOTIC DRUGS
12.36 Regulations of Bureau of Narcotics.
LIQUORS
12.37 Restricted importations. 12.38 Labeling requirements; shipments.
UNFAIR COMPETITION
12.39 Imported articles involving unfair methods of competition or practices.
IMMORAL ARTICLES
12.40 Seizure; disposition of seized articles; reports to United States attorney.
12.41 Prohibited films.
MERCHANDISE PRODUCED BY CONVICT, FORCED, OR INDENTURED LABOR
12.42 Findings of Commissioner of Customs. 12.43 Proof of admissibility. 12.44 Disposition. 12.45 Transportation and marketing of pris-
on-labor products.
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COUNTERFEIT COINS, OBLIGATIONS, AND OTHER SECURITIES; ILLUSTRATIONS OR REPRODUC- TIONS OF COINS OR STAMPS
12.48 Importation prohibited; exceptions to prohibition of importation; procedure.
FUR-SEAL OR SEA-OTTER SKINS
12.60 Importation prohibited. 12.61 Fur-seal or sea-otter skins permitted
entry. 12.62 Enforcement; duties of Customs offi-
cers. 12.63 Seal-skin or sea-otter-skin waste.
ENTRY OF MOTOR VEHICLES, MOTOR VEHICLE ENGINES AND NONROAD ENGINES UNDER THE CLEAN AIR ACT, AS AMENDED
12.73 Motor vehicle and engine compliance with Federal antipollution emission re- quirements.
12.74 Nonroad and stationary engine com- pliance with Federal antipollution emis- sion requirements.
MOTOR VEHICLES AND MOTOR VEHICLE EQUIP- MENT MANUFACTURED ON OR AFTER JANU- ARY 1, 1968
12.80 Federal motor vehicle safety stand- ards.
SAFETY STANDARDS FOR BOATS AND ASSOCIATED EQUIPMENT
12.85 Coast Guard boat and associated equipment safety standards.
ELECTRONIC PRODUCTS
12.90 Definitions. 12.91 Electronic products offered for impor-
tation under the Act.
SWITCHBLADE KNIVES
12.95 Definitions. 12.96 Imports unrestricted under the Act. 12.97 Importations contrary to law. 12.98 Importations permitted by statutory
exceptions. 12.99 Procedures for permitted entry. 12.100 Importations in good faith; common
or contract carriage. 12.101 Seizure of prohibited switchblade
knives. 12.102 Forfeiture. 12.103 Report to the U.S. Attorney.
CULTURAL PROPERTY
12.104 Definitions. 12.104a Importations prohibited. 12.104b State Parties to the Convention. 12.104c Importations permitted. 12.104d Detention of articles; time in which
to comply. 12.104e Seizure and forfeiture. 12.104f Temporary disposition of materials
and articles.
12.104g Specific items or categories des- ignated by agreements or emergency ac- tions.
12.104h Exempt materials and articles. 12.104i Enforcement. 12.104j Emergency protection for Iraqi cul-
tural antiquities.
PRE-COLUMBIAN MONUMENTAL AND ARCHITECTURAL SCULPTURE AND MURALS
12.105 Definitions. 12.106 Importation prohibited. 12.107 Importations permitted. 12.108 Detention of articles; time in which
to comply. 12.109 Seizure and forfeiture.
PESTICIDES AND DEVICES
12.110 Definitions. 12.111 Registration. 12.112 Notice of arrival of pesticides and de-
vices. 12.113 Arrival of shipment. 12.114 Release or refusal of delivery. 12.115 Release under bond. 12.116 Samples. 12.117 Procedure after examination.
CHEMICAL SUBSTANCES IN BULK AND AS PART OF MIXTURES AND ARTICLES
12.118 Toxic Substances Control Act. 12.119 Scope. 12.120 Definitions. 12.121 Reporting requirements. 12.122 Detention of certain shipments. 12.123 Procedure after detention. 12.124 Time limitations and extensions. 12.125 Notice of exportation. 12.126 Notice of abandonment. 12.127 Decision to store or dispose.
SOFTWOOD LUMBER FROM CANADA
12.140 Entry of softwood lumber products from Canada.
12.142 Entry of softwood lumber and softwood lumber products from any country into the United States.
STEEL PRODUCTS
12.145 Entry or admission of certain steel products.
MERCHANDISE SUBJECT TO ECONOMIC SANCTIONS
12.150 Merchandise prohibited by economic sanctions; detention; seizure or other dis- position; blocked property.
12.151 Prohibitions and conditions on im- portations of jadeite, rubies, and articles of jewelry containing jadeite or rubies.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Sched- ule of the United States (HTSUS)), 1624.
Section 12.1 also issued under 21 U.S.C. 371(b);
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Section 12.3 also issued under 7 U.S.C. 135h, 21 U.S.C. 381;
Section 12.4 also issued under 21 U.S.C. 381(b);
Section 12.6 also issued under 7 U.S.C. 1854; Section 12.10 also issued under 7 U.S.C. 151–
162; Section 12.15 also issued under 19 U.S.C.
1558; Section 12.16 also issued under 7 U.S.C.
1592(b); Sections 12.21 through 12.23 also issued
under 42 U.S.C. 262; Section 12.26 also issued under 18 U.S.C. 42; Section 12.28 also issued under 18 U.S.C. 42,
19 U.S.C. 1527; Section 12.34 also issued under 19 U.S.C.
1202 (additional U.S. Note to Chapter 36, HTSUS);
Section 12.37 also issued under 27 U.S.C. 203;
Section 12.39 also issued under 19 U.S.C. 1337, 1623;
Sections 12.40 and 12.41 also issued under 19 U.S.C. 1305;
Sections 12.42 through 12.44 also issued under 19 U.S.C. 1307 and Pub. L. 105–61 (111 Stat. 1272);
Sections 12.73 and 12.74 also issued under 19 U.S.C. 1484, 42 U.S.C. 7522, 7601;
Section 12.85 also issued under 19 U.S.C. 1623, 46 U.S.C. 4302, 4306, 4310;
Sections 12.95 through 12.103 also issued under 15 U.S.C. 1241–1245;
Sections 12.104 through 12.104i also issued under 19 U.S.C. 2612;
Section 12.104j also issued under Pub. L. 108–429, 118 Stat. 2600; 19 U.S.C. 2612;
Sections 12.105 through 12.109 also issued under 19 U.S.C. 2094;
Sections 12.110 through 12.117 also issued under 7 U.S.C. 136 et seq.;
Sections 12.118 through 12.127 also issued under 15 U.S.C. 2601 et seq.;
Section 12.140 also issued under 19 U.S.C. 1484, 2416(a), 2171;
Section 12.142 also issued under 19 U.S.C. 1484; section 3301 of Pub. L. 110–246.
Section 12.150 also issued under 19 U.S.C. 1595a and 1618; 22 U.S.C. 401.
Section 12.151 also issued under The Bur- mese Freedom and Democracy Act of 2003 (Pub. L. 108–61) (the ‘‘BFDA’’), as amended by the Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Efforts) Act of 2008 (Pub. L. 110–286) (the ‘‘JADE Act’’); Presi- dential Proclamation 8294, signed on Sep- tember 26, 2008; Additional U.S. Note 4 to Chapter 71, HTSUS.
SOURCE: 28 FR 14710, Dec. 31, 1963, unless otherwise noted.
FOOD, DRUGS, AND COSMETICS, ECONOMIC POISONS, HAZARDOUS SUBSTANCES, AND DANGEROUS CAUSTIC OR CORRO- SIVE SUBSTANCES
§ 12.1 Cooperation with certain agen- cies; joint regulations.
(a) Federal Food, Drug, and Cosmetic Act. The importation into the United States of food, drugs, devices, cos- metics, and tobacco products as defined in section 201 (f), (g), (h), and (i) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 (f), (g), (h), (i)) is gov- erned by section 801 of the Act, as amended (21 U.S.C. 381) and regulations issued under authority of section 701(b) of the Act (21 U.S.C. 371(b)) by the Sec- retary of Health and Human Services and the Secretary of the Treasury (21 CFR 1.83 through 1.99).
(b) Federal Insecticide, Fungicide, and Rodenticide Act. The importation of pes- ticides and devices is governed by sec- tion 17(c) of the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 U.S.C. 136o(c)), and regula- tions issued under the authority of sec- tion 17(e) of that Act (7 U.S.C. 1360(e)) by the Secretary of the Treasury, in consultation with the Administrator of the Environmental Protection Agency, as set forth below (§ 12.110 et seq.).
(c) Federal Hazardous Substances Act. The importation of hazardous sub- stances, misbranded hazardous sub- stances, or banned hazardous sub- stances as defined in section 2 of the Federal Hazardous Substances Act, as amended (15 U.S.C. 1261), is governed by regulations issued under the authority of sections 10(b) and 14 of the Act, as amended (15 U.S.C. 1269, 1273), by the Consumer Product Safety Commission (16 CFR 1500.265 through 1500.272).
[T.D. 68–191, 33 FR 11019, Aug. 2, 1968, as amended by T.D. 75–194, 40 FR 32321, Aug. 1, 1975; T.D. 82–145, 47 FR 35475, Aug. 16, 1982; CBP Dec. 10–29, 75 FR 52450, Aug. 26, 2010]
§ 12.3 Release under bond; liquidated damages.
(a) Release. No food, drug, device, cos- metic , tobacco product, pesticide, haz- ardous substance or dangerous caustic or corrosive substance that is the sub- ject of § 12.1 will be released except in accordance with the laws and regula- tions applicable to the merchandise.
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U.S. Customs and Border Protection, DHS; Treasury § 12.7
When any merchandise that is the sub- ject of § 12.1 is to be released under bond pursuant to regulations applica- ble to that merchandise, a bond on Cus- toms Form 301, containing the bond conditions set forth in § 113.62 of this chapter, will be required.
(b) Bond amount. The bond referred to in paragraph (a) of this section must be in a specific amount prescribed by the port director based on the cir- cumstances of the particular case that is either:
(1) Equal to the domestic value (see § 162.43(a) of this chapter) of the mer- chandise at the time of release as if the merchandise were admissible and oth- erwise in compliance; or
(2) Equal to three times the value of the merchandise as provided in § 113.62(m)(1) of this chapter.
(c) Liquidated damages. Whenever liq- uidated damages arise with regard to any food, drug, device or cosmetic sub- ject to § 12.1(a) for failure to redeliver merchandise into Customs custody or for failure to rectify any noncompli- ance with the applicable provisions of admission, including the failure to ex- port or destroy the merchandise within the time period prescribed by law after the merchandise has been refused ad- mission pursuant to the provisions of the Food, Drug and Cosmetic Act, those liquidated damages will be as- sessed pursuant to § 113.62(m)(1) of this chapter in the amount of the bond pre- scribed under paragraph (b) of this sec- tion.
[T.D. 01–26, 66 FR 16853, Mar. 28, 2001; CBP Dec. 08–46, 73 FR 71780, Nov. 25, 2008; CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
§ 12.4 Exportation. The exportation of merchandise, the
subject of § 12.1, refused admission into the United States in accordance with regulations applicable thereto shall be under Customs supervision in accord- ance with the regulations set forth in §§ 18.25 and 18.26 of this chapter.
[T.D. 68–191, 33 FR 11019, Aug. 2, 1968]
§ 12.5 Shipment to other ports. When imported merchandise, the sub-
ject of § 12.1, is shipped to another port for reconditioning or exportation, such shipment shall be under a Customs car-
rier’s manifest, Customs Form 7512, in the same manner as shipments in bond.
[T.D. 68–191, 33 FR 11019, Aug. 2, 1968]
IMPORTATION OF CERTAIN CHEESES
§ 12.6 Affidavits required to accom- pany entry.
(a) Cheeses produced in the member states of the European Communities shall not be permitted entry into the Customs territory of the United States (excluding Puerto Rico) if exported from any country or area other than the country of origin, or into Puerto Rico, unless accompanied by:
(1) An affidavit, in the event of ship- ments into the Customs territory of the United States (excluding Puerto Rico), of the producer or exporter that the cheese has not received and will not receive restitution payments of the type referred to in Executive Order No. 11851, dated April 10, 1975 (40 FR 16645); or
(2) An affidavit, in the event of ship- ments into Puerto Rico, of the im- porter that the cheese will be con- sumed in Puerto Rico or areas outside the Customs territory of the United States. Proof of actual consumption shall be furnished to the appropriate Customs officer within three years after the date such cheese is entered or withdrawn from warehouse, for con- sumption.
(b) These affidavits shall not be re- quired to accompany importations of cheese produced in the member states of the European Communities if such cheese is shipped directly to the United States (excluding Puerto Rico) from the country of origin on a through bill of lading.
[T.D. 75–210, 40 FR 36767, Aug. 22, 1975]
MILK AND CREAM
§ 12.7 Permits required for importa- tion.
(a) Under the Act of February 15, 1927 (44 Stat. 1101, as amended, 21 U.S.C. 141–149), commonly known as the Fed- eral Import Milk Act, the importation into the United States of milk and cream is prohibited unless the person by whom such milk or cream is shipped or transported into the United States
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holds a valid permit from the Depart- ment of Health and Human Services. Such permits become invalid at the end of one year unless applications for renewal are filed prior to the date of expiration.
(b) The regulations of the Depart- ment of Health and Human Services under the said act require that each container of milk or cream shipped or transported into the United States by a permittee shall have firmly attached thereto a tag showing in clear and leg- ible type the product (raw milk, pas- teurized milk, raw cream, or pasteur- ized cream) the permit number and the name and address of the shipper; except that in case of unit shipments con- sisting of milk only or cream only under one permit number, each con- tainer need not be so marked if the ve- hicle of transportation is sealed and tagged with the above-mentioned tag. In such case the tag is required to show, in addition to the other required information, the number of containers and the contents of each. Customs offi- cers shall not permit the importation of any milk or cream that is not tagged in accordance with such regulations.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35475, Aug. 16, 1982; T.D. 89– 1, 53 FR 51253, Dec. 21, 1988]
MEAT AND MEAT-FOOD PRODUCTS
§ 12.8 Inspection; bond; release. (a) All imported meat and meat-food
products offered for entry into the United States are subject to the regu- lations prescribed by the Secretary of Agriculture under the Animal Health Protection Act. (7 U.S.C. 8301, et seq.). The term ‘‘meat and meat-food prod- ucts,’’ for the purpose of this section, shall include any imported article of food or any imported article which en- ters or may enter into the composition of food for human consumption, which is derived or prepared in whole or in part from any portion of the carcass of any cattle, sheep, swine, or goat, if such portion is all or a considerable and definite portion of the article, ex- cept such articles as organotherapeutic substances, meat juice, meat extract, and the like, which are only for medic- inal purposes and are advertised only to the medical profession. Such meat
and meat-food products will not be re- leased from CBP custody prior to in- spection by an inspector of the Food Safety and Inspection Service, Meat and Poultry Inspection, except when authority is given by such inspector for inspection at the importer’s premises or other place not under CBP super- vision. In such case a bond for the re- turn to CBP custody of the merchan- dise shall be given by the consignee or agent on CBP Form 301, containing the bond conditions set forth in § 113.62 of this chapter, and the conveyances or packages in which such merchandise is removed to the place of examination shall be sealed or corded and sealed by a customs officer or an inspector of the Food Safety and Inspection Service, Meat and Poultry Inspection, with im- port-meat seals furnished by the De- partment of Agriculture unless bearing United States CBP seals, or in the case of packages otherwise identified as pro- vided for in this section. When cording is necessary for proper sealing, the cords shall be furnished and affixed by the importer or his agent. Import-meat seals or cords and seals may be broken only by a CBP officer or inspector of the Meat Inspection Division, Agricul- tural Research Service.
In lieu of cording and sealing packages, the carrier or importer may furnish and attach to each package of product a warning notice on bright yellow paper, not less than 5 by 8 inches in size, containing the following legend in black type of a conspicuous size:
(Name of Truck Line or Carrier)
NOTICE
This package of meat or meat product must be delivered intact to an inspector of the Meat Inspection Division, U.S. Depart- ment of Agriculture.
WARNING
Failure to comply with these instructions will result in penalty action being taken against the holder of the CBP entry bond.
If the product is found to be acceptable upon inspection the package will be marked ‘‘U.S. Inspected and Passed’’ and this warn- ing notice defaced.
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(b) Liquidated damages assessed for breach of a bond taken under this sec- tion, if not in excess of the Fines, Pen- alties, and Forfeitures Officer’s dele- gated authority, and if a written appli- cation for relief is filed, may be can- celed by the port director upon the payment of less than the full amount as he shall deem appropriate, or with- out the payment of any amount, as may be deemed appropriate, but the Fines, Penalties, and Forfeitures Offi- cer shall not act under this paragraph unless the officer in charge of the local office of the Food Safety and Inspec- tion Service, Meat and Poultry Inspec- tion, Department of Agriculture, is in full agreement with the proposed ac- tion. If there is no local inspector of the Food Safety and Inspection Serv- ice, Meat and Poultry Inspection, the port director shall not act unless he has obtained the full agreement of the Food Safety and Inspection Service, Meat and Poultry Inspection in Wash- ington.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35476, Aug. 16, 1982; T.D. 84–213, 49 FR 41167, Oct. 19, 1984; T.D. 89–1, 53 FR 51253, Dec. 21, 1988; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 99–64, 64 FR 43265, Aug. 10, 1999; T.D. 00–57, 65 FR 53574, Sept. 5, 2000; CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
§ 12.9 Release for final delivery to con- signee.
No meat, meat-food products, or ani- mal casings shall be released for final delivery to the consignee until the port director is advised by the Department of Agriculture, or its representative, that the merchandise is admissible.
PLANTS AND PLANT PRODUCTS
§ 12.10 Regulations and orders of the Department of Agriculture.
The importation into the United States of plants and plant products is subject to regulations and orders of the Department of Agriculture restricting or prohibiting the importation of such plants and plant products. Customs of- ficers and employees shall perform such functions as are necessary or proper on their part to carry out such regulations and orders of the Depart- ment of Agriculture and the provisions of law under which they are made.
§ 12.11 Requirements for entry and re- lease.
(a) The importer or his representa- tive shall submit to the director of the port of first arrival, for each entry of plants or plant products requiring a plant quarantine permit, a notice of ar- rival for any type of entry except re- warehouse and informal mail entries. Such notice shall be on a form provided for the purpose by the Department of Agriculture. The director of the port of arrival shall compare the notice of ar- rival which he receives from the im- porter or his representative with the shipping documents, certify its agree- ment therewith, and transmit it, to- gether with any accompanying certifi- cates or other documents pertaining to the sanitary status of the shipment, to the Department of Agriculture. The merchandise may not be moved, stored, or otherwise disposed of until the no- tice of arrival has been submitted and release for the intended purpose has been authorized by an inspector of the Animal and Plant Health Inspection Service, Plant Protection and Quar- antine Programs.
(b) Where plant or plant products are shipped from the port of first arrival to another port or place for inspection or other treatment by a representative of the Animal and Plant Health Inspec- tion Service, Plant Protection and Quarantine Programs and all Customs requirements for the release of the merchandise have been met, the mer- chandise shall be forwarded under a special manifest (Customs Form 7512) and in-bond labels or Customs seals to the representative of the Animal and Plant Health Inspection Service, Plant Protection and Quarantine Programs at the place at which the inspection or other treatment is to take place. No further release by the port director shall be required.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978]
§ 12.12 Release under bond.
Plants or plant products which re- quire fumigation, disinfection, steri- lization, or other treatment as a condi- tion of entry may be released to the
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permittee for treatment at a plant ap- proved by the Department of Agri- culture upon the giving of a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter to insure that the merchandise is treated under the supervision and to the satisfaction of an inspector of the Department of Agriculture or returned to Customs custody when demanded by the port director.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 84–213, 49 FR 41167, Oct. 19, 1984]
§ 12.13 Unclaimed shipments.
(a) If plants or plant products enterable into the United States under the rules and regulations promulgated by the Secretary of Agriculture are un- claimed, they may be sold subject to the provisions of subparts C and D of part 127 of this chapter to any person to whom a permit has been issued who can comply with the requirements of the regulations governing the material involved.
(b) Unclaimed plants and plant prod- ucts not complying with the require- ments mentioned in this section shall be destroyed, by burning or otherwise, under Customs supervision.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 74–114, 39 FR 12091, Apr. 3, 1974]
§ 12.14 Detention.
(a) Port directors shall refuse release of all plants or plant products with re- spect to which a notice of prohibition has been promulgated by the Secretary of Agriculture under any of the various quarantines. If an importer refuses to export a prohibited shipment imme- diately, the port director shall report the facts to the U.S. Department of Ag- riculture, Animal and Plant Health In- spection Service, Plant Protection and Quarantine Programs and the United States attorney and withhold delivery pending advice from that Department.
(b) In case of doubt as to whether any plant or plant product is prohibited, the port director shall detain it pend- ing advice from the Department of Ag- riculture.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978]
§ 12.15 Disposition; refund of duty.
Plants or plant products which are prohibited admission into the United States under Federal law or regula- tions and are exported or destroyed under proper supervision are exempt from duty and any duties collected thereon shall be refunded. (See §§ 158.41 and 158.45(c) of this chapter.)
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 72–258, 37 FR 20174, Sept. 27, 1972]
AGRICULTURAL AND VEGETABLE SEEDS
§ 12.16 Joint regulations of the Sec- retary of the Treasury and the Sec- retary of Agriculture.
(a) The importation into the United States of agricultural and vegetable seeds and screenings thereof is gov- erned by rules and regulations pre- scribed jointly by the Secretary of the Treasury and the Secretary of Agri- culture under section 402(b) of the Fed- eral Seed Act of August 9, 1939 (7 CFR part 201).
(b) Under the said joint rules and reg- ulations, port directors are required to draw samples of such seeds and screenings, forward them to the seed laboratories, and notify the owner or consignee that such samples have been drawn and that the shipment shall be held intact pending a decision of the Livestock, Meat, Grain, and Seed Divi- sion, Agricultural Marketing Service, in the matter.
(c) It is further provided in said joint rules and regulations that after sam- ples have been drawn such seeds and screenings shall be admitted into the commerce of the United States only if they have been found to meet the re- quirements of the Federal Seed Act of August 9, 1939, and the said regula- tions, but if the containers bear suffi- cient marks of identification the port director may release the shipment, pending examination and decision in the matter, upon the giving of a bond. The bond shall be filed with the port director on Customs Form 301 and con- tain the bond conditions set forth in § 113.62 of this chapter. In case of de- fault the port director shall issue a
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claim for liquidated damages under the bond.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35476, Aug. 16, 1982; T.D. 84– 213, 49 FR 41167, Oct. 19, 1984; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
VIRUSES, SERUMS, AND TOXINS FOR TREATMENT OF DOMESTIC ANIMALS
§ 12.17 Importation restricted. The importation into the United
States of viruses, serums, toxins, and analogous products for use in the treat- ment of domestic animals is prohibited unless the importer holds a permit from the Department of Agriculture covering the specific product. The port director shall notify the Animal and Plant Health Inspection Service, Vet- erinary Services, Washington, D.C., of the arrival of any such product, and de- tain it until he shall receive notice from that Department that a permit to import the shipment has been issued.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35476, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.18 Labels. Each separate container of such
virus, serum, toxin, or analogous prod- uct imported is required by the regula- tions of the Department of Agriculture to bear the true name of the product and the permit number assigned by the Department of Agriculture in the fol- lowing form: ‘‘U.S. Veterinary Permit No. llll,’’ or an abbreviation there- of authorized by the Animal and Plant Health Inspection Service, Veterinary Services. Each separate container also shall bear a serial number affixed by the manufacturer for identification of the product with the records of prepa- ration thereof, together with a return date.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978]
§ 12.19 Detention; samples. (a) The port director shall detain all
shipments of such products for which no permit to import has been issued pending instructions from the Depart- ment of Agriculture.
(b) Samples shall be furnished to the Department of Agriculture upon its re-
quest, and the port director shall im- mediately notify the consignee of any such request.
§ 12.20 Disposition.
Viruses, serums, or toxins rejected by the Department of Agriculture shall be released by the port director to that Department for destruction, or ex- ported under Customs supervision at the expense of the importer if expor- tation is authorized by the Department of Agriculture.
VIRUSES, SERUMS, TOXINS, ANTITOXINS, AND ANALOGOUS PRODUCTS FOR THE TREATMENT OF MAN
§ 12.21 Licensed establishments.
The bringing into the United States for sale, barter, or exchange, of any virus, therapeutic serum, toxin, anti- toxin, or analogous product, or ars- phenamine or its derivatives (or any other trivalent organic arsenic com- pound), applicable to the prevention, treatment, or cure of diseases or inju- ries of man is prohibited unless such virus, serum, toxin, antitoxin, or other product has been manufactured at an establishment holding an unsuspended and unrevoked license issued by the Secretary of Health and Human Serv- ices for such manufacture.
[T.D. 69–201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82–145, 47 FR 35476, Aug. 16, 1982]
§ 12.22 Labels; samples.
Each package of such products im- ported for sale, barter, or exchange shall be labeled or plainly marked with the name, address, and license number of the manufacturer, and the date be- yond which the contents cannot be ex- pected to yield their specific results. From each lot of product the port di- rector shall select at random at least two final containers. The random sam- ple together with a copy of the associ- ated documents which describe and identify the shipment shall be for- warded to the Director, Bureau of Bio- logics, Food and Drug Administration, 8800 Rockville Pike, Bethesda, Md. 20014. For shipments of 20 or less final containers, samples need not be for- warded, provided a copy of an official
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release from the Bureau of Biologics accompanies each shipment.
[T.D. 69–201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82–145, 47 FR 35476, Aug. 16, 1982]
§ 12.23 Detention; examination; dis- position.
(a) Port directors shall detain all im- portations of unlicensed viruses, thera- peutic serums, toxins, antitoxins, and analogous products, and arsphenamines or its derivatives (or any other tri- valent organic arsenic compound) for the treatment or cure of diseases or in- juries of man pending examination by the Director, Bureau of Biologics, un- less satisfied from evidence furnished at the time of entry that the products are intended solely for purposes of con- trolled investigation and not for sale, barter, or exchange, as evidenced by a copy of a filed ‘‘Notice of Claimed In- vestigational Exemption for a New Drug,’’ pursuant to § 312.1 of the Food, Drug, and Cosmetic Act Regulations (21 CFR 312.1), or are being imported under the short supply provisions of § 601.22 of the Public Health Service Regulations (42 CFR 601.22).
(b) If the shipment is imported for sale, barter, or exchange and is found by the Director, Division of Biologics Standards, to be admissible, the port director shall release it upon receipt of a report from him that the shipment is admissible.
(c) If the Director, Division of Bio- logics Standards, reports that the ship- ment was found upon examination not to conform to the law and the regula- tions, the port director shall not re- lease the shipment but shall permit the exportation or destruction thereof under Customs supervision at the op- tion of the importer.
(d) Shipments of such products for use in the treatment of man but made from or with material of animal origin other than human, shall, unless accom- panied by a Department of Agriculture, Veterinary Services, Animal and Plant Health Inspection Service (APHIS) per- mit, be detained until proof is pre- sented to the port director that their
importation is not prohibited under 9 CFR part 94 or part 122.
[T.D. 69–201, 34 FR 14328, Sept. 12, 1969, as amended by T.D. 82–145, 47 FR 35476, Aug. 16, 1982]
DOMESTIC ANIMALS, ANIMAL PRODUCTS, AND ANIMAL FEEDING MATERIALS
§ 12.24 Regulations of the Department of Agriculture.
(a) The importation into the United States of domestic animals, animal products, and animal feeding materials is subject to inspection and quarantine regulations of the Department of Agri- culture, Customs officers and employ- ees are authorized and directed to per- form such functions as are necessary or proper on their part to carry out such regulations of the Department of Agri- culture.
(b) Inspection by an inspector of the Animal and Plant Health Inspection Service, Veterinary Services is re- quired for all horses, cattle, sheep, other ruminants, and swine as a pre- requisite to their entry from any for- eign country. Orders listing the ports designated as quarantine stations for the inspection and quarantine of ani- mals will be issued by the Secretary of Agriculture, with the approval of the Secretary of the Treasury, whenever conditions warrant.
(c) The entry of domestic animals may be made, but shall not be required, before the expiration of the quarantine period. Such animals, if not entered at the time of arrival, shall be considered as under general order while under quarantine and shall not be released except upon notice from the port direc- tor that the importer has complied with all the requirements for entry.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35476, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
WILD ANIMALS, BIRDS, AND INSECTS
§ 12.26 Importations of wild animals, fish, amphibians, reptiles, mollusks, and crustaceans; prohibited and en- dangered and threatened species; designated ports of entry; permits required.
(a)(1) The importation into the United States, the Commonwealth of
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Puerto Rico, and the territories and possessions of the United States of live specimens of:
(i) Any species of the so-called ‘‘fly- ing fox’’ or fruit bat of the genus Pteropus;
(ii) Any species of mongoose or meerkat of the genera Atilax, Cynictis, Helogale, Herpestes, Ichneumia, Mungos, and Suricata;
(iii) Any species of European rabbit the genus Oryctolagus;
(iv) Any species of Indian wild dog, red dog, or dhole of the genus Cuon;
(v) Any species of multimammate rat or mouse of the genus Mastomys;
(vi) Any live specimens or egg of the species of so-called ‘‘pink starling’’ or ‘‘rosy pastor’’ Sturnus roseus;
(vii) The species of dioch (including the subspecies black-fronted, red- billed, or Sudan dioch) Quelea quelea;
(viii) Any species of Java sparrow, Padda oryzivora;
(ix) The species of red-whiskered bul- bul, Pycnonotus jocosus;
(x) Any live fish or viable eggs of the family Clariidae;
(xi) Any other species of wild mam- mals, wild birds, fish (including mol- lusks and crustacea), amphibians, rep- tiles, or the offspring or eggs of any of the foregoing which the Secretary of the Interior may prescribe by regula- tions to be injurious to human beings, to the interest of agriculture, horti- culture, forestry, or to wildlife or the wildlife resources of the United States, is prohibited, except as may be author- ized by the issuance of a permit by the Director, U.S. Fish and Wildlife Serv- ice, U.S. Department of the Interior, Washington, DC 20240, or his authorized representative. If any such prohibited specimen is imported, or if any specie or subspecie of other live or dead fish or wildlife, including any parts, prod- ucts, or eggs thereof, appearing on the Endangered Species List published by the U.S. Fish and Wildlife Service, is imported, Customs release of the pro- hibited specimen or endangered fish or wildlife shall be refused unless there has been issued and presented in con- nection with entry a proper U.S. Fish and Wildlife Service permit author- izing the import transaction. In the ab- sence of such permit, injurious speci- mens prohibited entry shall be required
to be immediately exported or de- stroyed. Changes in injurious species and endangered species or subspecies which are prohibited or restricted im- portation may be published from time to time in 50 CFR part 13—Importation of Wildlife or Eggs Thereof or in part 17—Conservation of Endangered Spe- cies and Other Fish or Wildlife. Unreleased species or subspecies of live or dead endangered fish or wildlife, in- cluding parts, products, or eggs there- of, shall remain under detention sub- ject to seizure and delivery to an ap- propriate regional director or other agent of the U.S. Fish and Wildlife Service for disposition as appropriate pursuant to 50 CFR part 17.
(2) Fish and eggs of salmonids of the fish family Salmonidae are prohibited entry into the United States for any purpose unless such importations are by direct shipment, accompanied by the signed certification of a qualified fish pathologist in substantially the form as prescribed in 50 CFR 13.7. The following are excepted from the certifi- cation requirements:
(i) Salmon landed in North America and brought into the United States for processing or sale;
(ii) Any salmonid caught in the wild in North America under a sport or a commercial fishing license; and
(iii) Fish or eggs of the family Salmonidae when processed or pre- pared in accordance with 50 CFR 13.7(c), or otherwise exempted from the requirement of certification.
(3) Regulations (50 CFR part 17) re- quire the importer or his agent to file a Declaration for the Importation of Fish or Wildlife, unless it is an import transaction exempted from the require- ment by 50 CFR part 13 or part 17. Such declaration on U.S. Fish and Wildlife Service Form 3–177, available to im- porters through Customs ports of entry, shall be filed with the appro- priate Customs officer at the port of entry conducting the actual Customs clearance and release of the declared fish, wild mammal, or bird, amphibian, reptile, mollusk, crustacean, or dead body or egg thereof. The declaration on Form 3–177 shall show the common and scientific names, number, and country
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of origin of all species or subspecies de- clared, designate and identify any spe- cies listed on the U.S. List of Endan- gered Foreign Fish and Wildlife, 50 CFR part 17, appendix A, and indicate whether any species is subject to laws and regulations in any foreign country regarding its taking, transportation, or sale. See paragraph (g) of this section for special documentation require- ments.
(4) Federal agencies, subject to re- quirements in paragraph (a)(2) of this section, may import solely for their own use live wildlife except migratory birds, or their eggs, without a permit from the U.S. Fish and Wildlife Serv- ice, upon filing the declaration on Form 3–177. Importation of bald or golden eagles, or their eggs is prohib- ited.
(5) Customs entry for consumption or bonded warehousing of fish and wild- life, as defined in 50 CFR 17.2 (e) and (f), intended for importation into the United States, or admission into a for- eign trade zone, shall be filed at a port of entry among those designated for Customs entry in 50 CFR part 17, ap- pendix B. However, Customs entry for consumption or bonded warehousing of shipments subject to emergency diver- sion or otherwise authorized under reg- ulations or by permit issued by the U.S. Fish and Wildlife Service pursuant to 50 CFR part 17, appendices B and C, may be filed for examination and re- lease at the ports of entry so named or permitted, but no consumption or bonded warehouse entry shall be filed or accepted at an undesignated port for any endangered specie or subspecie per- mitted importation pursuant to 50 CFR 17.12 except in the case of an emer- gency diversion of live endangered fish or wildlife accepted for such entry in accordance with item 2(b) of 50 CFR part 17, appendix B. Importations of fish and wildlife subject to regulations of the U.S. Fish and Wildlife Service which arrive from abroad at any place in the United States not designated as an authorized port for Customs entry, unless occurring under conditions or circumstances in which Customs entry for consumption or bonded warehousing and final clearance has been authorized by U.S. Fish and Wild- life Service regulations or permit, may
be entered only for immediate trans- portation without appraisement for movement under Customs bond to one of the designated ports of entry. Cus- toms entry, release, and delivery of any shipment of shellfish and fishery products defined in 50 CFR 17.2(j) im- ported for commercial purposes is au- thorized at any port of entry, except insofar as such items include any spe- cies or subspecies which appears on the Endangered Species List in 50 CFR part 17, appendix A.
(b) Permits are required for the im- portation of wild animals and birds as follows:
(1) Wild birds protected by the Migra- tory Bird Treaty Act (16 U.S.C. 703 through 711) and the regulations pro- mulgated thereunder (50 CFR part 10), may be imported from foreign coun- tries for scientific, propagating, or other limited purposes only under per- mits issued by the U.S. Fish and Wild- life Service, United States Department of the Interior, Washington, DC, 20240. State game departments, municipal game farms or parks, and public muse- ums, zoological parks or societies, and scientific or educational institutions may import migratory birds without a permit. Such migratory birds, when imported from Mexico, must be accom- panied by Mexican export permits (50 CFR 16.3 and 16.5).
(2) Game mammals (antelopes, moun- tain sheep, deer, bears, peccaries, squirrels, rabbits, and hares), protected by the Migratory Bird Treaty Act (16 U.S.C. 703 through 711), dead or alive, or their parts or products, must be ac- companied by Mexican export permits (50 CFR 15.3) when imported from Mex- ico.
(3) Wild ruminants (all animals which chew the cud, such as cattle, buffaloes, sheep, goats, deer, antelopes, camels, llamas, and giraffes) and swine (various varieties of wild hogs), except from Canada and certain northern States of Mexico may be imported only under a permit from the Animal and Plant Health Inspection Service, Veterinary Services, United States Department of Agriculture, Washington, DC 20250. Such permits must be obtained before the animals are shipped from the coun- try of exportation. All wild ruminants
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and swine must be inspected at des- ignated ports of entry by veterinarians of the Animal and Plant Health Inspec- tion Service, Veterinary Services, United States Department of Agri- culture.
(4) Psittacine birds, which include all birds commonly known as parrots, Amazons, African grays, cockatoos, macaws, parrotlets, beebees, parakeets, lovebirds, lories, lorikeets, and all other birds of the order Psittaciformes, when destined for a zoological park or medical research institution without having had prior confinement and treatment abroad at an approved treat- ment center, and psittacine birds taken out of the United States but inadmis- sible under paragraph (c) of this sec- tion, may be imported when accom- panied by a permit issued by the Sur- geon General. Application for such a permit may be made to the Chief, For- eign Quarantine Program, National Communicable Disease Center, U.S. Public Health Service, Atlanta, Ga. 30333, or to a Public Health Service quarantine station established at a port of entry in the United States.
(5) Ducks, geese, swans, turkeys, pi- geons, doves, pheasants, grouse, par- tridges, quail, guinea fowl, and pea fowl, except from Canada, may be im- ported only under a permit from the Animal and Plant Health Inspection Service, Veterinary Services, United States Department of Agriculture, Washington, DC 20250. Such permits must be obtained before the birds are shipped from the country of origin. Such birds from Canada must be ac- companied by a certificate issued by a Canadian Government veterinarian. All such birds must be inspected at des- ignated ports of entry by veterinarians of the Animal and Plant Health Inspec- tion Service, Veterinary Services, United States Department of Agri- culture.
(c) Psittacine birds as defined in paragraph (b)(4) of this section, not to exceed two such birds by members of a family comprising a single household in any 12-month period, may be im- ported under prescribed conditions (see 42 CFR 71.164(e)) without permit and without prior confinement and treat- ment, to be kept as pets by the owner, who will be required to comply with
the Foreign Quarantine Regulations of the U.S. Public Health Service. Birds taken out of the United States and being returned may be admitted, with- out permit, upon full compliance with prescribed conditions of those regula- tions for admission of birds imported as pets. No such birds shall be released until the importer has complied with applicable requirements of the Public Health regulations.
(d) Cats, dogs, and monkeys are sub- ject to the Foreign Quarantine Regula- tions of the United States Public Health Service, Department of Health, Education, and Welfare, Washington, D.C. Such animals shall not be released until the Public Health regulations are complied with by the importer.
(e) If a shipment contains migratory birds for which a permit is required by the Fish and Wildlife Service of the De- partment of the Interior, and such per- mit is not at hand when the birds ar- rive, an examination thereof shall be made at once by the port director and any duties estimated to be due shall be collected. A stipulation shall be filed with the port director within 24 hours of the entry to produce the necessary permit within 30 days from the date of entry, whereupon final liquidation shall be suspended until the permit is produced or the 30-day period expires. The shipment may be immediately re- leased if a bond is filed with the port director on Customs Form 301, con- taining the bond conditions set forth in § 113.62 of this chapter, in an amount equal to the entered value plus esti- mated duties. If the bond conditions are violated the port director shall issue a claim for liquidated damages under the bond. In lieu of filing a bond the merchandise may be left in Cus- toms custody at the risk and expense of the importer pending issuance of the permit.
(f) If the permit referred to in para- graph (e) of this section is refused by the Fish and Wildlife Service, or if the permit is not produced within the said 30 days, the port director shall prompt- ly recall the property, if delivered under bond, and shall require its imme- diate exportation at the expense of the importer or consignee.
(g)(1) All import shipments of fish and wildlife subject to the regulations
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or permit requirements of the U.S. Fish and Wildlife Service, published pursuant to the Endangered Species Act of 1973, 16 U.S.C. 1531, or other stat- utory authority, shall be subject to ex- amination or inspection by that agen- cy’s officer serving the port of entry, for determination as to permissible re- lease or such other disposition as he may direct. Customs officers per- forming examinations of such fish and wildlife in accordance with regulations of the U.S. Fish and Wildlife Service in 50 CFR part 10 and parts 13 through 17, shall release shipments only upon sub- mission by the importer of evidence sufficient to establish compliance with those regulations, any applicable per- mit requirements, and compliance with applicable identification and package or container marking requirements as specified by 50 CFR 17.6(a) and 17.9. In case of doubt as to whether fish, birds, or other wildlife belong to prohibited or endangered species or subspecies or whether an entry permit is required, or in case of suspicion on the part of offi- cers of the Customs that the species sought to be entered are prohibited or endangered species or subspecies im- ported under other names or descrip- tions, the importation shall be refused Customs release, and the importer shall be responsible for concluding ar- rangements acceptable to the regional director or other agent of the U.S. Fish and Wildlife Service for proper han- dling, custody, and care, at the import- er’s expense and risk, of the unreleased fish, birds, or other wildlife. No Cus- toms disposition of the importation shall be concluded pending the deter- mination by the U.S. Fish and Wildlife Service of the true nature of the spe- cies or subspecies. In case of refusal or neglect of the importer or consignee, or agent of either, to have the identity so established, final disposition of the im- portation shall be required as deter- mined by the U.S. Fish and Wildlife Service. In addition to U.S. Fish and Wildlife Service Form 3–177, required to be filed as prescribed in 50 CFR 17.4 upon entry of importations of fish and wildlife, entrants shall present appro- priate foreign export permits, other ac- ceptable foreign documentary evidence of lawful taking, transportation, or sale, or appropriate American consular
certificates upon importation of fish and wildlife species or subspecies sub- ject to such documentation require- ments of 50 CFR 17.4 (c) and (d).
(2) Any antique article imported under § 10.53(g) of this chapter shall be entered at one of the following ports:
Boston, Massachusetts New York, New York Baltimore, Maryland, Philadelphia, Pennsyl-
vania Miami, Florida, San Juan, Puerto Rico New Orleans, Louisiana Houston, Texas Los Angeles, California San Francisco, California Anchorage, Alaska, Honolulu, Hawaii O’Hare International Airport, Chicago, Illi-
nois
(h) All invoices of animals and birds shall specify the species covered there- by and the number of each species. In the event of the return to the port di- rector of any importation under the bond given under paragraph (e) of this section, if the number and species of birds does not correspond with the de- scription stated in the invoice and if no satisfactory explanation of any dis- crepancy is furnished, a claim for liq- uidated damages shall be issued under the bond.
(i) The privilege of entry for imme- diate transportation granted by section 552, Tariff Act of 1930, shall not be al- lowed for importations of fish, birds, or other wildlife which are confirmed at the port of first arrival or discharge to be injurious prohibited species, or which require permits issued prior to importation, or which are subject to quarantine regulations or inspection at the ports of first arrival or discharge or other specified place of veterinary in- spection. However, entry for immediate transportation properly is allowed for any importation of fish, birds, or other wildlife which at the place of first ar- rival or discharge is not confirmed to be an injurious prohibited specie and which, following compliance with any applicable quarantine regulations or required veterinary inspection, is being transported by means of an in-bond movement to a port of entry des- ignated in 50 CFR part 17, appendix B, for Customs entry (see paragraphs (a) and (b) of this section). Ports of des- ignated entry, inspection, quarantine, and related enforcement procedures
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covering certain animals and poultry and certain animal and poultry prod- ucts imported into the United States are regulated by requirements and standards prescribed in regulations of the Secretary of Agriculture, Depart- ment of Agriculture (see 9 CFR parts 92–96; 19 CFR 12.8 and 12.24).
(j) Wild animals and birds shall be imported under humane and healthful conditions, due regard being given to the accommodations and facilities nec- essary for the species transported.
(k) When any Customs officer has good reason to believe that wild ani- mals or birds have been imported under inhumane or unhealthful conditions in violation of 18 U.S.C. 42, an immediate investigation shall be made to ascer- tain whether they have in fact been transported under such conditions. The investigation shall determine the pro- visions made on the vessel or other conveyance for the accommodation of the animals or birds, the suitability of the boxes, cages, stalls, etc., the space, ventilation, and protection from the elements accorded the animals or birds, the facilities for cleaning, feed- ing, watering, bedding, and such other services as may be required for the spe- cies imported. The investigation shall also determine, the physical condition of such animals or birds and the ratio of dead, crippled, diseased, or starving animals or birds. If necessary, officers of the Animal and Plant Health Inspec- tion Service, Veterinary Services, or Fish and Wildlife Service, or other offi- cers or experts, may be called upon to assist customs officers in the matter.
(l) Unless the port director is satis- fied that the provisions of 18 U.S.C. 42 have not been violated, he shall report the matter to the United States attor- ney for appropriate action.
[28 FR 14710, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 12.26, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 12.27 Importation or exportation of wild animals or birds, or the dead bodies thereof illegally captured or killed, etc.
Customs officers shall perform all du- ties required of them under statutory
provisions that prohibit or restrict the importation or exportation of wild ani- mals or birds, or the dead bodies there- of, or the eggs of such birds, killed, captured, taken, transported, etc., con- trary to law. Such laws and statutory provisions include 18 U.S.C. 43, 44, 3054, 3112.
[T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.28 Importation of wild mammals and birds in violation of foreign law.
No imported wild mammal or bird, or part or product thereof, shall be re- leased from Customs custody, except as permitted under § 12.26(i) relating to an in-bond movement to a port designated for wildlife entry, if the port director has knowledge of a foreign law or regu- lation obliging enforcement of section 527(a), Tariff Act of 1930 (19 U.S.C. 1527(a)), unless the importation is an excepted transaction entitled to entry under the provisions of section 527(c) of the Tariff Act or, in connection with the entry, there is presented docu- mentation in the manner specified in 50 CFR 17.4(c) (1) or (2) required for im- port transactions subject to foreign laws or regulations regarding taking, transportation, or sale of wildlife in- cluding wild mammals and birds or parts or products thereof (see § 12.26).
[T.D. 70–242, 35 FR 17994, Nov. 24, 1970, as amended by T.D. 82–145, 47 FR 35476, Aug. 16, 1982]
§ 12.29 Plumage and eggs of wild birds. (a) The provisions of Chapter 5, Addi-
tional U.S. Note 1, relating to the plumage of any bird, apply to all such plumage, whether imported separately or upon the bird itself, except (1) the feathers of birds specifically excepted by Additional U.S. Note 1 to Chapter 5, Harmonized Tariff Schedule of the United States (HTSUS), (2) plumage imported for scientific or educational purposes, (3) fully-manufactured artifi- cial flies used for fishing, (4) plumage on game birds killed in foreign coun- tries by residents of the United States and not imported for sale or other com- mercial purposes, and (5) plumage on live wild birds.
(b) The feathers or skins of certain birds may be imported for use in the manufacture of artificial flies used for
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fishing or for millinery purposes only under a permit issued by the Fish and Wildlife Service, United States Depart- ment of Interior, Washington DC 20240. No feathers or skins of the pro-species provided for by Additional U.S. Note 1, Chapter 5, HTSUS, shall be permitted to be entered, or withdrawn from ware- house, for consumption, unless the req- uisite permit is presented with the entry or withdrawal.
(c) The importation of the eggs of wild nongame birds is prohibited ex- cept as dead natural history specimens for museum or scientific collection purposes. The eggs of migratory birds may be imported for propagating pur- poses or for scientific and other limited purposes under permits issued by the Fish and Wildlife Service, U.S. Depart- ment of the Interior, Washington, DC 20240. State game departments, munic- ipal game farms or parks, and public museums, zoological parks or societies, and scientific or educational institu- tions may import the eggs of migra- tory birds without a permit (50 CFR 16.3). The eggs of certain game or mi- gratory birds imported for hatching, such as ducks, geese, swans, turkeys, pigeons, doves, pheasant, grouse, par- tridges, quail, guinea fowl, and pea fowl, are subject to the regulations of the Animal and Plant Health Inspec- tion Service, Veterinary Services, U.S. Department of Agriculture, Wash- ington, DC 20250. Such regulations re- quire that permits, except for eggs from Canada offered for entry at cer- tain land border ports, must be ob- tained before the eggs are shipped from the country of origin and that all eggs shall be accompanied by a certificate issued by a national government vet- erinarian of the country of origin and inspected at a designated port of entry.
(d) Upon the attempted importation of eggs of wild birds, the importation of which is prohibited by Chapter 4, Addi- tional U.S. Note 26, the eggs shall be seized and the importer accorded an op- portunity to assent to forfeiture. In the event the importer refuses or fails to assent to the forfeiture of the prohib- ited eggs, the port director shall pro- ceed to forfeit them under the provi- sions of the tariff act applicable to sei-
zure and forfeiture of merchandise val- ued at less than $2,500.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 66–68, 31 FR 5358, Apr. 5, 1966; T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82–145, 47 FR 35476, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 12.30 Whaling. The importation and exportation of
whales or whale products taken or processed in violation of the Inter- national Convention for the Regulation of Whaling signed at Washington under date of December 2, 1946 (Publication No. 3383, Department of State, Whaling Convention), or of the Whaling Conven- tion Act of 1949 (16 U.S.C. 916 through 916(1)), or of any regulation issued under the Act (50 CFR part 351) is un- lawful. Customs officers and employees shall perform all functions required of them by the above-mentioned conven- tion, law and regulation.
[T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.31 Plant pests. The importation in a live state of in-
sects which are injurious to cultivated crops, including vegetables, field crops, bush fruits, and orchard, forest or shade trees, and of the eggs, pupae, or larvae of such insects, except for sci- entific purposes under regulations pre- scribed by the Secretary of Agri- culture, is prohibited. All packages containing live insects or their eggs, pupae, or larvae arriving from abroad, unless accompanied by a permit issued by the Department of Agriculture, shall be detained and submitted to the U.S. Department of Agriculture, Ani- mal and Plant Health Inspection Serv- ice, Plant Protection and Quarantine Programs of that Department for in- spection and determination of their ad- missibility into the United States.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35476, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.32 Honeybees and honeybee semen.
(a) Honeybees from any country may be imported into the U.S. by the De- partment of Agriculture for experi- mental or scientific purposes. All other
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importations of honeybees are prohib- ited except those from a country which the Secretary of Agriculture has deter- mined to be free of diseases dangerous to honeybees.
(b) Honeybee semen may be imported into the U.S. only from countries de- termined by the Secretary of Agri- culture to be free of undesirable honey- bees, and which take adequate pre- cautions to prevent the importation of undersirable honeybees and their semen.
(c) The importation of honeybees and honeybee semen is governed by joint regulations of the Secretary of Agri- culture and the Secretary of the Treas- ury published in Treasury Decisions and the FEDERAL REGISTER from time to time.
[T.D. 85–3, 50 FR 1044, Jan. 9, 1985, as amend- ed by T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
TEA
§ 12.33 Importation of tea; entry; exam- ination for customs purposes.
(a) The importation of any merchan- dise as tea which is inferior in purity, quality, and fitness for consumption to the standards prescribed by the Act of March 2, 1897, as amended (21 U.S.C. 41 through 50), is prohibited. Customs of- ficers and employees shall perform all duties required of them by the said act and regulations.
(b) The importation of tea is subject also to the provisions of the Federal Food, Drug, and Cosmetic Act and the regulations thereunder. See §§ 12.1 to 12.5.
(c) [Reserved] (d) The port director may order such
an examination of packages containing tea as will satisfy him that no dutiable goods are packed therein. For this pur- pose the customary designation shall be made of packages for examination in public stores.
(e) If the invoice has not been re- ceived, the importer may use an addi- tional copy of the chop list and release permit required by the regulations of the Department of Health and Human Services as a pro forma invoice, mark-
ing ‘‘Pro forma invoice’’ across the face thereof.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35477, Aug. 16, 1982; T.D. 84–213, 49 FR 41167, Oct. 19, 1984; T.D. 89–1, 53 FR 51253, Dec. 21, 1988; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
WHITE PHOSPHORUS MATCHES
§ 12.34 Importation prohibited; certifi- cate of inspection; importer’s dec- laration.
(a) The importation into the United States of white phosphorus matches is prohibited.
(b) Invoices covering matches im- ported into the United States shall be accompanied by a certificate of official inspection of the Government of the country of manufacture in the fol- lowing form:
CERTIFICATE OF OFFICIAL INSPECTION OF MATCHES
I, llllllll (Name), do hereby certify that I am the llllll (Official title), that according to the chemical analysis made by me the matches described below do not contain white or yellow phosphorus and that therefore they are not white phosphorus matches as defined in the Act of Congress of the United States of America approved April 9, 1912;
Number of case mark
Description of matches
Name and ad- dress of man-
ufacturer
Name of con- signee and ad- dress, vessel, and date of shipment
........................ ........................ ........................
........................ ........................ ........................
........................ ........................ ........................
———————————— (Signature)
———————————— (Official title)
(c) In the absence of such certificate, the matches shall be detained until a certificate is produced or the importer submits satisfactory evidence to show that the matches were not in fact man- ufactured with the use of poisonous white or yellow phosphorus.
(d) The production of the above cer- tificate shall not be required on the entry of matches manufactured in countries which prohibit the use of white or yellow phosphorus in the man- ufacture of matches.
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(e) At the time of filing an entry for imported matches, the importer shall make a declaration that to the best of his knowledge and belief no matches included in the invoice and entry are white phosphorus matches.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35477, Aug. 16, 1982; T.D. 89– 1, 53 FR 51253, Dec. 21, 1988]
§ 12.35 [Reserved]
NARCOTIC DRUGS
§ 12.36 Regulations of Bureau of Nar- cotics.
The importation and exportation of narcotic drugs are governed by regula- tions of the Drug Enforcement Admin- istration Bureau of Narcotics. Customs officers and employees shall perform all duties imposed upon them by such regulations and the laws under which they are issued. Such regulations are in addition to, and not in lieu of, the Customs, internal-revenue, and other pertinent laws and regulations.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 82– 145, 47 FR 35477, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
LIQUORS
§ 12.37 Restricted importations.
(a) The basic permit requirements prescribed by the act of August 29, 1935 (27 U.S.C. 203), shall not be deemed ap- plicable when the port director is satis- fied that the liquor is for personal use or for experimental purposes in the making of analyses, tests, or compari- sons.
(b) The production of a basic permit shall not be required when spirits are withdrawn from warehouse under any form of withdrawal entry.
(c) Blending or rectifying of wines or distilled spirits in class 6 manufac- turing warehouses, or the bottling of imported distilled spirits in class 8 ma- nipulation warehouses, shall not be permitted unless the proprietor has ob- tained an appropriate permit from the
Bureau of Alcohol, Tobacco and Fire- arms.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78–329, 43 FR 43454, Sept. 26, 1978; T.D. 82–145, 47 FR 35477, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.38 Labeling requirements; ship- ments.
All shipments of liquor not labeled as required by 18 U.S.C. 1263 and any ves- sel or vehicle, other than a common carrier, used in the transportation of such liquor shall be seized and disposed of in accordance with 18 U.S.C. 3615 .
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 70–249, 35 FR 18265, Dec. 1, 1970; T.D. 82– 145, 47 FR 35477, Aug. 16, 1982; T.D. 89–1, 53 FR 51253, Dec. 21, 1988; CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004 ; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
UNFAIR COMPETITION
§ 12.39 Imported articles involving un- fair methods of competition or practices.
(a) Determinations of the International Trade Commission. Under section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), unfair methods of com- petition and unfair practices in the im- portation or sale of articles, the effect or tendency of which is to destroy, sub- stantially injure, or prevent the estab- lishment of an efficiently and economi- cally operated United States industry, or to restrain or monopolize trade and commerce in the United States, are un- lawful. After an investigation of an al- leged violation of section 337, the U.S. International Trade Commission (‘‘the Commission’’) may determine that sec- tion 337 has been violated. The Com- mission also may determine during the course of its investigation that there is reason to believe that a violation of section 337 exists. The Commission’s determination in either case is effec- tive on the date of its publication in the FEDERAL REGISTER and is referred to the President, who may disapprove the determination for policy reasons on or before the close of a 60-day period beginning on the day after the day he receives a copy of the determination. A Commission determination disapproved by the President shall have no force or effect as of the date the Commission is
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notified of his disapproval. If the Com- mission’s determination is not dis- approved by the President during the 60-day period, or if he notifies the Com- mission before the close of the period that he approves the determination, the determination becomes final on the day after the close of the period or the day of the notification, whichever is earlier.
(b) Exclusion from entry; entry under bond; notice of exclusion order. (1) If the Commission finds a violation of section 337, or reason to believe that a viola- tion exists, it may direct the Secretary of the Treasury to exclude from entry into the United States the articles con- cerned which are imported by the per- son violating or suspected of violating section 337. The Commission’s exclu- sion order remains in effect until the Commission determines, and notifies the Secretary of the Treasury, that the conditions which led to the exclusion no longer exist, or until the determina- tion of the Commission on which the order is based is disapproved by the President.
(2) During the period the Commis- sion’s exclusion order remains in ef- fect, excluded articles may be entered under a single entry bond in an amount determined by the International Trade Commission to be sufficient to protect the complainant from any injury. On or after the date that the Commission’s determination of a violation of section 337 becomes final, as set forth in para- graph (a) of this section, articles cov- ered by the determination will be re- fused entry. If a violation of section 337 is found, the bond may be forfeited to the complainant under terms and con- ditions prescribed by the Commission. To enter merchandise that is the sub- ject of a Commission exclusion order, importers must:
(i) File with the port director prior to entry a bond in the amount determined by the Commission that contains the conditions identified in the special im- portation and entry bond set forth in appendix B to part 113 of this chapter; and
(ii) Comply with the terms set forth in 19 CFR 210.50(d) in the event of a for- feiture of this bond.
(3) Port directors shall notify each importer or consignee of articles re-
leased under bond pursuant to para- graph (b)(2) of this section when the Commission’s determination of a viola- tion of section 337 becomes final and that entry of the articles is refused. The importer or consignee shall export or destroy the released articles under customs supervision within 30 days after the date of notification. The port director who released the articles shall assess liquidated damages in the full amount of the bond if the importer or consignee fails to export or destroy the released articles under Customs super- vision within the 30-day period.
(4) In addition to the notice given to importers or consignees of articles re- leased under bond, port directors shall provide written notice to all owners, importers or consignees of articles which are denied entry into the United States pursuant to an exclusion order that any future attempt to import such articles may result in the articles being seized and forfeited. Copies of all such notices are to be forwarded to the Executive Director, Commercial Tar- geting and Enforcement, Office of International Trade, at CBP Head- quarters, and to the Office of The Gen- eral Counsel, USITC, 500 E Street, SW., Washington, DC 20436 by port directors.
(c) Seizure and Forfeiture Orders. (1) In addition to issuing an exclusion order under paragraph (b)(1) of this section, the Commission may issue an order providing that any article determined to be in violation of § 337 be seized and forfeited to the United States. Such order may be issued if:
(i) The owner, importer, or consignee of the article previously attempted to import the article or like articles into the United States;
(ii) The article or like articles were previously denied entry into the United States by reason of an exclusion order issued under paragraph (b)(1) of this section; and
(iii) Upon such previous denial of entry, the port director of the port in which the entry was attempted had no- tified the owner, importer, or con- signee of the article in writing of both the exclusion order and that seizure and forfeiture would result from any further attempt to import the article or like articles into the United States.
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(2) Upon receipt of any seizure order issued by the Commission in accord- ance with this paragraph, Customs shall immediately notify all ports of entry of the property subject to the seizure order and identify the persons notified under paragraph (b)(4) of this section.
(3) The port director in the port in which the article was seized shall issue a notice of seizure to parties known to have an interest in the seized property. All interested parties to the property shall have an opportunity to petition for relief under the provisions of 19 CFR part 171. All petitions must be filed within 30 days of the date of issuance of the notice of seizure, and failure of a claimant to petition will result in the commencement of admin- istrative forfeiture proceedings. All pe- titions will be decided by the appro- priate Customs officer, based upon the value of the articles under seizure.
(4) If seized articles are found to be not includable in an order for seizure and forfeiture, then the seizure and the forfeiture shall be remitted in accord- ance with standard Customs proce- dures.
(5) Forfeited merchandise shall be disposed of in accordance with the Cus- toms laws.
(d) Certain importations by or for the United States. Any exclusion from entry under section 337 based on claims of United States letters patent shall not apply to articles imported by and for the use of the United States, or im- ported for, and to be used for, the United States with the authorization or consent of the Government.
(e) Importations of semiconductor chip products. (1) In accordance with the Semiconductor Chip Protection Act of 1984 (17 U.S.C. 901 et seq.), if the owner of a mask work which is registered with the Copyright Office seeks to have CBP deny entry to any imported semi- conductor chip products which infringe his rights in such mask work, the owner must obtain a court order en- joining, or an order of the U.S. Inter- national Trade Commission (USITC), under section 337, Tariff Act of 1930, as amended (19 U.S.C.1337), excluding, im- portation of such products. Exclusion orders issued by the USITC are enforce- able by CBP under paragraph (b) of this
section. Court orders or exclusion or- ders issued by the USITC shall be for- warded, for enforcement purposes, to the Director, Border Security and Trade Compliance Division, Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229.
(2) The port director shall enforce any court order or USITC exclusion order based upon a mask work registra- tion in accordance with the terms of such order. Court orders may require either denial of entry or the seizure of violative semiconductor chip products. Forfeiture proceedings in accordance with part 162 of this chapter shall be instituted against any such products so seized.
(3) This regulation will be effective against all importers regardless of whether they have knowledge that their importations are in violation of the Semiconductor Chip Protection Act of 1984 (17 U.S.C. 901 through 904).
[T.D. 79–231, 44 FR 49247, Aug. 22, 1979, as amended by T.D. 84–213, 49 FR 41167, Oct. 19, 1984; T.D. 87–132, 52 FR 39221, Oct. 21, 1987; T.D. 95–87, 60 FR 54941, Oct. 27, 1995; T.D. 99– 27, 64 FR 13675, Mar. 22, 1999; T.D. 00–87, 65 FR 77815, Dec. 13, 2000; 65 FR 80497, Dec. 21, 2000]
IMMORAL ARTICLES
§ 12.40 Seizure; disposition of seized articles; reports to United States at- torney.
(a) Any book, pamphlet, paper, writ- ing, advertisement, circular, print, pic- ture, or drawing containing any matter advocating or urging treason or insur- rection against the United States or forcible resistance to any law of the United States, or containing any threat to take the life of or inflict bod- ily harm upon any person in the United States, seized under section 305, Tariff Act of 1930, shall be transmitted to the United States attorney for his consid- eration and action.
(b) Upon the seizure of articles or matter prohibited entry by section 305, Tariff Act of 1930 (with the exception of the matter described in paragraph (a) of this section), a notice of the seizure of such articles or matter shall be sent to the consignee or addressee.
(c) When articles of the class covered by paragraph (b) of this section are of small value and no criminal intent is
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apparent, a blank assent to forfeiture, Customs Form 4607, shall be sent with the notice of seizure. Upon receipt of the assent to forfeiture duly executed, the articles shall be destroyed if not needed for official use and the case closed.
(d) In the case of a repeated offender or when the facts indicate that the im- portation was made deliberately with intent to evade the law, the facts and evidence shall be submitted to the United States attorney for consider- ation of prosecution of the offender as well as an action in rem under section 305 for condemnation of the articles.
(e) All cases in which articles have been seized pursuant to 19 U.S.C. 1305(a) should be referred to the U.S. Attorney, for possible institution of condemnation proceedings, within 4 days, but in no event more than 14 days, after the date of Customs initial examination. The referral to the U.S. Attorney should be initiated simulta- neously with the mailing to the im- porter of the seizure notice and the as- sent to forfeiture form. If the importer declines to execute an assent to for- feiture of the articles other than those mentioned in paragraph (a) of this sec- tion and fails to submit, within 30 days after being notified of his privilege to do so, a petition under section 618, Tar- iff Act of 1930 (19 U.S.C. 1618), for re- mission of the forfeiture and permis- sion to export the seized articles, then the U.S. Attorney, who has already re- ceived information concerning the sei- zure pursuant to this paragraph, may proceed with the condemnation action.
(f) If seizure is made of books or other articles which do not contain ob- scene matter but contain information or advertisements relative to means of causing unlawful abortion, the proce- dure outlined in paragraphs (b), (c), (d), and (e) of this section shall be followed.
(g) In any case when a book is seized as being obscene and the importer de- clines to execute an assent to for- feiture on the ground that the book is a classic, or of recognized and estab- lished literary or scientific merit, a pe- tition addressed to the Secretary of the Treasury with evidence to support the claim may be filed by the importer for release of the book. Mere unsupported statements or allegations will not be
considered. If the ruling is favorable, release of such book shall be made only to the ultimate consignee.
(h) Whenever it clearly appears from information, instructions, advertise- ments enclosed with or appearing on any drug or medicine or its immediate or other container, or otherwise that such drug or medicine is intended for inducing unlawful abortion, such drug or medicine shall be detained or seized.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 71–165, 36 FR 12209, June 29, 1971; T.D. 76–261, 41 FR 39022, Sept. 14, 1976; T.D. 82–145, 47 FR 35477, Aug. 16, 1982; T.D. 85–186, 50 FR 47207, Nov. 15, 1985; T.D. 93–66, 58 FR 44130, Aug. 19, 1993]
§ 12.41 Prohibited films.
(a) Importers of films, shall certify on Customs Form 3291 that the im- ported films contain no obscene or im- moral matter, nor any matter advo- cating or urging treason or insurrec- tion against the United States or forc- ible resistance to any law of the United States, nor any threat to take the life or inflict bodily harm upon any person in the United States. When imported films are claimed to be free of duty as American goods returned, this certifi- cation may be made on Customs Form 3311 in the space designated ‘‘Re- marks’’ in lieu of on Form 3291.
(b) Films exposed abroad by a foreign concern or individual shall be previewed by a qualified employee of the Customs Service before release. In case such films are imported as unde- veloped negatives exposed abroad, the approximate number of feet shall be ascertained by weighing before they are allowed to be developed and printed and such film shall be previewed by a qualified employee of the Customs Service after having been developed and printed.
(c) Any objectionable film shall be detained pending instructions from Headquarters, U.S. Customs Service or a decision of the court as to its final disposition.
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MERCHANDISE PRODUCED BY CONVICT, FORCED, OR INDENTURED LABOR
§ 12.42 Findings of Commissioner of Customs.
(a) If any port director or other prin- cipal Customs officer has reason to be- lieve that any class of merchandise that is being, or is likely to be, im- ported into the United States is being produced, whether by mining, manufac- ture, or other means, in any foreign lo- cality with the use of convict labor, forced labor, or indentured labor under penal sanctions, including forced child labor or indentured child labor under penal sanctions, so as to come within the purview of section 307, Tariff Act of 1930, he shall communicate his belief to the Commissioner of Customs. Every such communication shall contain or be accompanied by a statement of sub- stantially the same information as is required in paragraph (b) of this sec- tion, if in the possession of the port di- rector or other officer or readily avail- able to him.
(b) Any person outside the Customs Service who has reason to believe that merchandise produced in the cir- cumstances mentioned in paragraph (a) of this section is being, or is likely to be, imported into the United States and, if the production is with the use of forced labor or indentured labor under penal sanctions, that merchandise of the same class is being produced in the United States in such quantities as to meet the consumptive demands of the United States may communicate his belief to any port director or the Com- missioner of Customs. Every such com- munication shall contain, or be accom- panied by, (1) a full statement of the reasons for the belief, (2) a detailed de- scription or sample of the merchandise, and (3) all pertinent facts obtainable as to the production of the merchandise abroad. If the foreign merchandise is believed to be mined, produced, or manufactured with the use of forced labor or indentured labor under penal sanctions, such communication shall also contain (4) detailed information as to the production and consumption of the particular class of merchandise in the United States and the names and addresses of domestic producers likely to be interested in the matter.
(c) If any information filed with a port director pursuant to paragraph (b) of this section does not conform with the requirements of that paragraph, the communication shall be returned promptly to the person who submitted it with detailed written advice as to the respects in which it does not con- form. If such information is found to comply with the requirements, it shall be transmitted by the port director within 10 days to the Commissioner of Customs, together with all pertinent additional information available to the port director.
(d) Upon receipt by the Commissioner of Customs of any communication sub- mitted pursuant to paragraph (a) or (b) of this section and found to comply with the requirements of the pertinent paragraph, the Commissioner will cause such investigation to be made as appears to be warranted by the cir- cumstances of the case and the Com- missioner or his designated representa- tive will consider any representations offered by foreign interests, importers, domestic producers, or other interested persons.
(e) If the Commissioner of Customs finds at any time that information available reasonably but not conclu- sively indicates that merchandise with- in the purview of section 307 is being, or is likely to be, imported, he will promptly advise all port directors ac- cordingly and the port directors shall thereupon withhold release of any such merchandise pending instructions from the Commissioner as to whether the merchandise may be released otherwise than for exportation.
(f) If it is determined on the basis of the foregoing that the merchandise is subject to the provisions of the said section 307, the Commissioner of Cus- toms, with the approval of the Sec- retary of the Treasury, will publish a finding to that effect in a weekly issue of the Customs Bulletin and in the FEDERAL REGISTER.
(g) Any merchandise of a class speci- fied in a finding made under paragraph (f) of this section, which is imported di- rectly or indirectly from the locality specifed in the findings and has not been released from Customs custody before the date of publication of such finding in the FEDERAL REGISTER shall
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be considered and treated as an impor- tation prohibited by section 307, Tariff Act of 1930, unless the importer estab- lishes by satisfactory evidence that the merchandise was not mined, produced, or manufactured in any part with the use of a class of labor specified in the finding.
(h) The following findings made under the authority of section 307, Tar- iff Act of 1930 are currently in effect with respect to the merchandise listed below:
Merchandise Country T.D.
Furniture, clothes ham- pers, and palm leaf bags.
Ciudad Victoria, Tamaulipas, Mexico.
53408 54725
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988; T.D. 00– 52, 65 FR 45875, July 26, 2000]
§ 12.43 Proof of admissibility. (a) If an importer of any article de-
tained under § 12.42(e) or (g) desires to contend that the article was not mined, produced, or manufactured in any part with the use of a class of labor specified in section 307, Tariff Act of 1930, he shall submit to the Commis- sioner of Customs within 3 months after the date the article was imported a certificate of origin in the form set forth below, signed by the foreign sell- er or owner of the article. If the article was mined, produced, or manufactured wholly or in part in a country other than that from which it was exported to the United States, an additional cer- tificate in such form and signed by the last owner or seller in such other coun- try, substituting the facts of transpor- tation from such other country for the statements with respect to shipment from the country of exportation, shall be so submitted.
CERTIFICATE OF ORIGIN
I, llllllll, foreign seller or owner of the merchandise hereinafter described, certify that such merchandise, consisting of llllllll (Quantity) of llllllll (Description) in llllllllll (Number and kind of packages) bearing the following marks and numbers llllll was mined, produced, or manufactured by llllllll (Name) at or near llllllll, and was laden on board llllllllll (Carrier to the United
States) at llllllll (Place of lading) (Place of final departure from country of ex- portation) which departed from on llllll; (Date); and that llllllllll (Class of labor specified in finding) was not employed in any stage of the mining, production, or manufacture of the merchandise or of any component there- of.
Dated llllll
———————————— (Signature)
(b) The importer shall also submit to the Commissioner of Customs within such 3-month period a statement of the ultimate consignee of the merchandise, showing in detail that he had made every reasonable effort to determine the source of the merchandise and of every component thereof and to ascer- tain the character of labor used in the production of the merchandise and each of its components, the full results of his investigation, and his belief with respect to the use of the class of labor specified in the finding in any stage of the production of the merchandise or of any of its components.
(c) If the certificate or certificates and statements specified in paragraphs (a) and (b) of this section are submitted within the time prescribed and the Commissioner finds that the merchan- dise is admissible, the port director concerned will be advised to that ef- fect, whereupon he shall release the merchandise upon compliance with the usual entry requirements.
§ 12.44 Disposition.
(a) Export and abandonment. Merchan- dise detained pursuant to § 12.42(e) may be exported at any time prior to sei- zure pursuant to paragraph (b) of this section, or before it is deemed to have been abandoned as provided in this sec- tion, whichever occurs first. Provided no finding has been issued by the Com- missioner of Customs under § 12.42(f) and the merchandise has not been ex- ported within 3 months after the date of importation, the port director will ascertain whether the proof specified in § 12.43 has been submitted within the time prescribed in that section. If the proof has not been timely submitted, or if the Commissioner of Customs ad- vises the port director that the proof
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32 Notwithstanding any other provision of this chapter, the following are permitted:
(1) The printing, publishing, or importa- tion, or the making or importation of the necessary plates for such printing or pub- lishing, of illustrations of:
furnished does not establish the admis- sibility of the merchandise, the port di- rector will promptly advise the im- porter in writing that the merchandise is excluded from entry. Upon the expi- ration of 60 days after the delivery or mailing of such advice by the port di- rector, the merchandise will be deemed to have been abandoned and will be de- stroyed, unless it has been exported or a protest has been filed as provided for in section 514, Tariff Act of 1930.
(b) Seizure and summary forfeiture. In the case of merchandise covered by a finding under § 12.42(f), if the Commis- sioner of Customs advises the port di- rector that the proof furnished under § 12.43 does not establish the admissi- bility of the merchandise, or if no proof has been timely furnished, the port di- rector shall seize the merchandise for violation of 19 U.S.C. 1307 and com- mence forfeiture proceedings pursuant to part 162, subpart E, of this chapter.
(c) Prison-labor goods. Nothing in this chapter precludes Customs from seizing for forfeiture merchandise imported in violation of 18 U.S.C. 1761 and 1762 con- cerning prison-labor goods.
[T.D. 00–52, 65 FR 45875, July 26, 2000]
§ 12.45 Transportation and marketing of prison-labor products.
If any apparent violation of section 1761 or 1762, title 18, United States Code, with respect to any imported ar- ticle comes to the attention of a port director, he shall detain the article and report the facts to the appropriate United States attorney. If the United States attorney advises the port direc- tor that action should be taken against the article, it shall be seized and held pending the receipt of further instruc- tions from the United States attorney or the court.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
COUNTERFEIT COINS, OBLIGATIONS, AND OTHER SECURITIES; ILLUSTRATIONS OR REPRODUCTIONS OF COINS OR STAMPS
§ 12.48 Importation prohibited; excep- tions to prohibition of importation; procedure.
(a) In accordance with Chapter 25, Title 18, United States Code, any token, disk, or device in the likeness or
similitude of any coin of the United States or of a foreign country; counter- feits of coins in circulation in the United States; counterfeited, forged, or altered obligations or other securities of the United States or of any foreign government; or plates, dies, or other apparatus which may be used in mak- ing any of the foregoing, when brought into the United States, shall be seized, and delivered to the nearest represent- ative of the United States Secret Serv- ice, together with a report of the facts, for appropriate disposition.
(b) In accordance with section 504 of title 18, United States Code, the print- ing, publishing, or importation or the making or importation of the nec- essary plates for such printing or pub- lishing for philatelic, numismatic, edu- cational, historical, or newsworthy purposes in articles, books, journals, newspapers, or albums (but not for ad- vertising purposes, except illustrations of stamps and paper money in phila- telic or numismatic advertising of le- gitimate numismatists and dealers in stamps or publishers of or dealers in philatelic or numismatic articles, books, journals, newspapers, or al- bums) of black and white illustrations of canceled and uncanceled United States postage stamps shall be per- mitted.
(c) The importation (but not for ad- vertising purposes except philatelic ad- vertising) of motion-picture films, microfilms, or slides, for projection upon a screen or for use in telecasting, of postage and revenue stamps and other obligations and securities of the United States and postage and revenue stamps, notes, bonds, and other obliga- tions or securities of any foreign gov- ernment, bank, or corporation shall be permitted.
(d) Printed matter of the character described in section 504, title 18, United States Code, 32 containing reproduc- tions of postage or revenue stamps, ex- ecuted in accordance with any excep- tion stated in section 504, or colored re- productions of canceled foreign postage
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(A) Postage stamps of the United States, (B) Revenue stamps of the United States, (C) Any other obligation or other security
of the United States, and (D) Postage stamps, revenue stamps, notes,
bonds, and any other obligation or other se- curity of any foreign government, bank, or corporation, for philatelic, numismatic, edu- cational, historical, or newsworthy purposes in articles, books, journals, newspapers, or albums (but not for advertising purposes, ex- cept illustrations of stamps and paper money in philatelic or numismatic advertising of le- gitimate numismatists and dealers in stamps or publishers of or dealers in philatelic or numismatic articles, books, journals, news- papers, or albums). Illustrations permitted by the foregoing provisions of this section shall be made in accordance with the fol- lowing conditions—
(i) All illustrations shall be in black and white, except that illustrations of postage stamps issued by the United States or by any foreign government may be in color;
(ii) All illustrations (including illustra- tions of uncanceled postage stamps in color) shall be of a size less than three-fourths or more than one and one-half, in linear dimen- sion, of each part of any matter so illus- trated which is covered by subparagraph (A), (B), (C), or (D) of this paragraph, except that black and white illustrations of postage and revenue stamps issued by the United States or by any foreign government and colored il- lustrations of canceled postage stamps issued by the United States may be in the exact linear dimension in which the stamps were issued; and
(iii) The negatives and plates used in mak- ing the illustrations shall be destroyed after their final use in accordance with this sec- tion.
(2) The making or importation, but not for advertising purposes except philatelic adver- tising, of motion-picture films, microfilms, or slides, for projection upon a screen or for use in telecasting, of postage and revenue stamps and other obligations and securities of the United States, and postage and rev- enue stamps, notes, bonds, and other obliga- tions or securities of any foreign govern- ment, bank, or corporation. No prints or other reproductions shall be made from such films or slides, except for the purposes of paragraph (1), without the permission of the Secretary of the Treasury.
For the purposes of this section the term ‘‘postage stamp’’ includes ‘‘postage meter stamps.’’ (18 U.S.C. 504).
stamps may be admitted to entry. Printed matter containing illustra- tions or reproductions not executed in accordance with such exceptions shall be treated as prohibited importations. If no application for exportation or as-
sent to forfeiture and destruction is re- ceived by the port director within 30 days from the date of notification to the importer that the articles are pro- hibited, the articles shall be reported to the United States attorney for for- feiture.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 82–145, 47 FR 35477, Aug. 16, 1982; T.D. 89– 1, 53 FR 51253, Dec. 21, 1988]
FUR-SEAL OR SEA-OTTER SKINS
§ 12.60 Importation prohibited.
The transportation, importation, sale, or possession of the skins of fur seals or sea otters is prohibited if such skins were taken contrary to the provi- sions of section 2 of the act of February 26, 1944 (58 Stat. 100–104) or, the case of such skins taken under the authority of the act or any fur-seal agreement, if the skins are not officially marked and certified as required by section 2 of the act. Section 16 makes the act inappli- cable to skins taken for scientific pur- poses under a special permit.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.61 Fur-seal or sea-otter skins per- mitted entry.
(a) Fur-seal or sea-otter skins taken by Indians, Aleuts, or other aborigines under the authority of section 3 of the act, fur-seal skins taken under the au- thority of the Canadian Government, and fur-seal skins taken on the Pribilof Islands and other specified areas under the authority of section 4 of the act shall be admitted to entry if officially marked and certified as having been lawfully taken and if accompanied by a declaration of the shipper identifying the skins by marks and numbers as those covered by the official certifi- cate.
(b) Fur-seal or sea-otter skins taken in waters or on land not specified in the act or in the fur-seal agreement with Canada or other fur-seal agree- ment shall be admitted to entry upon the production of evidence satisfactory to the port director that they have been so taken.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
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§ 12.62 Enforcement; duties of Customs officers.
(a) In accordance with the authority contained in sections 10 and 12 of the act, Customs officers shall arrest or cause to be arrested persons violating the provisions of the act or of any reg- ulation made pursuant thereto; shall search vessels when there is reasonable cause to believe that such vessels are subject to seizure under the act, shall seize any vessel used or employed or which it appears has been or is about to be used or employed in violation of the act or any regulation made pursu- ant thereto; and shall seize fur seals and sea otters, or the skins thereof, killed, captured, transported, im- ported, offered for sale, or possessed by any person contrary to the provisions of the act or of any regulation made pursuant thereto.
(b) All articles, including vessels and equipment, seized by Customs officers for violation of the act shall be turned over to the nearest officer or agent of the Fish and Wildlife Service, Depart- ment of the Interior, for appropriate disposition under the act, receipts to be taken in duplicate therefor. One copy of each such receipt shall be transmitted to Headquarters, U.S. Cus- toms Service with a detailed report of the facts in the particular case in- volved.
[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89–1, 53 FR 51253, Dec. 21, 1988]
§ 12.63 Seal-skin or sea-otter-skin waste.
Seal-skin or sea-otter-skin waste composed of small pieces not large enough to be sewed together and uti- lized as dressed fur shall not be subject to the requirements of the regulations in this part.
ENTRY OF MOTOR VEHICLES, MOTOR VE- HICLE ENGINES AND NONROAD ENGINES UNDER THE CLEAN AIR ACT, AS AMENDED
§ 12.73 Motor vehicle and engine com- pliance with Federal antipollution emission requirements.
(a) Applicability of EPA requirements. This section is ancillary to the regula- tions of the U.S. Environmental Pro- tection Agency (EPA) issued under the
Clean Air Act, as amended (42 U.S.C. 7401 et seq.), and found in 40 CFR parts 85 and 86. Those regulations should be consulted for more detailed informa- tion concerning EPA emission require- ments. The requirements apply to im- ported motor vehicles, but do not apply to separately imported non-chassis mounted engines to be used in light- duty trucks or other light-duty vehi- cles. Other separately imported engines for heavy-duty motor vehicles are cov- ered, and all references in this section to motor vehicles should be deemed to include motor vehicles as well as these heavy-duty engines. Nothing in this section should be construed as limiting or changing in any way the applica- bility of the EPA regulations.
(b) Importation of complying vehicles— (1) Labeled vehicles. Vehicles which in their condition as imported are covered by an EPA certificate of conformity and which bear the manufacturer’s label showing such conformity and other EPA-required information shall be deemed in compliance with applica- ble emission requirements for the pur- pose of Customs admissibility and entry liquidation determinations. This paragraph does not apply to importa- tions of ICI’s covered by paragraph (d) of this section.
(2) Pending certification. Vehicles oth- erwise covered by paragraph (b)(1) of this section which were manufactured for compliance with applicable emis- sion requirements, but for which an ap- plication for a certificate of con- formity is pending with the EPA may be conditionally released from Customs custody pending production of the cer- tificate of conformity within 120 days of release.
(c) Importation of vehicles previously in compliance—(1) Vehicles of returning resi- dents. Vehicles of residents returning from Canada, Mexico or other coun- tries as EPA may designate are not covered by this section.
(2) Vehicles of commuting nonresidents and tourists. A port director through the issuance of an appropriate means of identification to be affixed to a vehicle may waive all of the requirements of this section for a nonresident regularly
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crossing the Canadian or Mexican bor- der, or waive the requirements for Mex- ico or Canadian-registered vehicles of tourists or other travelers.
(3) Participants in EPA-approved cata- lytic converter or oxygen sensor control programs. Further evidence of emis- sions compliance will not be required for catalytic converter or oxygen sen- sor-equipped vehicles imported for par- ticipating in EPA-approved catalytic converter or oxygen sensor control pro- grams and subject to the requirements of those programs.
(4) Previously labeled, modified or im- ported vehicles. Any other vehicle of United States or foreign origin manu- factured with a catalytic converter or oxygen sensor, or any previously im- ported vehicle subsequently modified with a catalytic converter or oxygen sensor, will not be deemed in compli- ance with applicable emission require- ments if used outside of the United States, Canada, Mexico, or other coun- tries as EPA may designate, until the catalytic converter and/or oxygen sen- sor is replaced. Conditional release from Customs custody for the purpose of the modification is subject to a 120- day period for completion. Subject to special documentation at the time of export from the United States and ap- proval and other requirements of EPA, replacement of a catalytic converter or oxygen sensor may be avoided if the equipment is disconnected before ex- port from the United States and recon- nected after subsequent importation.
(d) Importation of vehicles by ICI’s. Ex- cept for motor vehicles imported in the applicable circumstances covered by paragraphs (c), (e), (f), (g) or (h) of this section, an individual or business other than an independent commercial im- porter (ICI) holding a currently valid EPA certificate of conformity may not enter a motor vehicle which does not conform with EPA emission require- ments. An ICI, subject to the more spe- cific definition in EPA regulations, is an importer which does not have a con- tract with a foreign or domestic motor vehicle manufacturer for distributing products into the United States mar- ket. However, a motor vehicle may not be conditionally admitted unless it falls within one of the categories pro- vided for in 40 CFR 85.1505 or 85.1509.
Before the vehicle is deemed to be in compliance with applicable emission requirements and, therefore, finally ad- mitted into the United States, the ICI must keep the vehicle in storage for a 15-working day period. This period fol- lows notice to EPA of completion of the compliance work to give EPA the opportunity to conduct confirmatory testing and inspect the vehicle and records. The 15-working day period is part of the 120-day period in which an ICI must bring the vehicle into emis- sions compliance. Individuals and busi- nesses not entitled to enter noncon- forming motor vehicles may arrange for their importation through an ICI certificate holder. In these cir- cumstances, the ICI will not act as an agent or broker for Customs trans- action purposes unless otherwise li- censed or authorized to do so.
(e) Exemptions and exclusions from emission requirements based on age of ve- hicle. The following motor vehicles, ex- cept as shown, may be imported by any person and do not have to be shown to be in compliance with emission re- quirements or modified before entitled to admissibility:
(1) Gasoline-fueled light-duty trucks and light-duty motor vehicles manu- factured before January 1, 1968;
(2) Diesel-fueled light-duty motor ve- hicles manufactured before January 1, 1975;
(3) Diesel-fueled light-duty trucks manufactured before January 1, 1976;
(4) Motorcycles manufactured before January 1, 1978;
(5) Gasoline-fueled and diesel-fueled heavy-duty engines manufactured be- fore January 1, 1970; and
(6) Motor vehicles not otherwsie ex- empt from EPA emission requirements and more than 20 years old. Age is de- termined by subtracting the year of production (as opposed to model year) from the year of importation. The ex- emption under this subparagraph is available only if the vehicle is im- ported by an ICI.
(f) Exemption for exports. A motor ve- hicle intended solely for export to a country not having the same emission standards applicable in the United States, and both the vehicle and its container bear a label or tag indicating that it is intended solely for export, is
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exempt from applicable United States emission requirements. 40 CFR 85.1709.
(g) Exemptions for diplomats, foreign military personnel and nonresidents. Sub- ject to the condition that they are not resold in the United States, the fol- lowing motor vehicles are exempt from applicable emission requirements:
(1) A motor vehicle imported solely for the personal use of a nonresident importer or consignee and the use will be for a period not to exceed one year; and
(2) A motor vehicle of a member of the armed forces of a foreign country on assignment in the United States, or of a member of the personnel of a for- eign government on assignment in the United States or other individual who comes within the class of persons for whom free entry of motor vehicles has been authorized by the Department of State in accordance with general prin- ciples of international law. For special documentation requirements see para- graph (i)(4) of this section.
(h) Exemptions and exclusions based on prior EPA authorization. The following motor vehicles are exempt or excluded from applicable emission requirements if prior approval has been obtained in writing from EPA:
(1) Importations for repairs. Any motor vehicle which is imported solely for re- pairs or alterations and which is not sold, leased, registered or licensed for use or operated on public roads or high- ways in the United States. 40 CFR 85.1511(b)(1);
(2) Importations for testing. Any motor vehicle imported solely for testing. Test vehicles may be operated on and registered for use on public roads or highways provided that the operation is an integral part of the test. 40 CFR 85.1511(b)(2). This exemption is limited to a period not exceeding one year from the date of importation unless a re- quest is made under 40 CFR 85.1705(f) for a one-year extension;
(3) Prototype vehicles. Any motor vehi- cle imported for use as a prototype in applying for EPA certification. 40 CFR 85.1511(b)(3) and 85.1706. In the case of an ICI, unless the vehicle is brought into conformity within 180 days from the date of entry it shall be exported or otherwise disposed of subject to para- graph (1) of this section;
(4) Display vehicles. Any motor vehi- cle which is imported solely for display and which will not be sold, leased, reg- istered or licensed for use on or oper- ated on the public roads or highways in the United States. 40 CFR 85.1511(b)(4);
(5) Racing cars. Any motor vehicle which qualifies as a racing vehicle meeting one or more of the criteria found at 40 CFR 85.1703(a), and which will not be registered or licensed for use on or operated on public roads or highways in the United States. See also 40 CFR 85.1511(c)(1);
(6) National security importations. Any motor vehicle imported for purposes of national security by a manufacturer. 40 CFR 85.1511(c)(2), 85.1702(a)(2) and 85.1708; and
(7) Hardship exemption. Any motor ve- hicle imported by anyone qualifying for a hardship exemption. 40 CFR 85.1511(c)(3).
(i) Documentation requirements—(1) Ex- ception for manufacturers. The special documentation requirements of this paragraph do not apply to the entry of any motor vehicles shown to be in com- pliance with applicable emission re- quirements under paragraph (b)(1) of this section relating to labeling.
(2) Declarations of other importers. Re- lease from Customs custody shall be re- fused with respect to all other entries unless there is filed with the entry in duplicate a declaration in which the importer or consignee declares or af- firms its status as an original equip- ment manufacturer, an ICI holding an applicable certificate of conformity, or other status, and further declares or af- firms the status or condition of the im- ported vehicles and the circumstances concerning importation including a ci- tation to the specific paragraph or sub- paragraph in this section upon which application for conditional or final re- lease from Customs custody is applied for.
(3) Other documentation and informa- tion. An importer’s declaration shall include or be submitted with the fol- lowing further information and docu- mentation:
(A) The importer’s name and address and telephone number;
(B) Identification of the vehicle or engine number, the vehicle owner’s taxpayer identification number, and
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his or her current address and tele- phone number in the United States if different than as provided for in para- graph (3)(A) of this paragraph;
(C) Identification, where applicable, of the place where the vehicle will be stored until EPA approval of the im- porter’s application to EPA for final admission as required for vehicles im- ported under 40 CFR 85.1505, 85.1509, or 85.1512 having reference to certain im- portations under paragraphs (c)(4) or (d)(1) of this section;
(D) Authorization for EPA enforce- ment officers to conduct inspections or testing otherwise permitted by the Clean Air Act and regulations promul- gated thereunder;
(E) Identification, where applicable, of the certificate of conformity by means of which the vehicle is being im- ported;
(F) The date of manufacture of the vehicle;
(G) The date of entry; (H) Identification of the vessel or
carrier on which the merchandise was shipped;
(I) The entry number where applica- ble;
(J) Where prior EPA authorization is required for an exemption or exclusion, a copy of that authorization; and
(K) Such other further information as may be required by the EPA or the Customs Service.
(4) Documentation from diplomats and foreign military personnel. For entries for which an exemption is claimed under paragraph (g)(2) of this section, there must also be attached to the dec- laration required under paragraph (i)(2) of this section a copy of the motor ve- hicle importer’s official orders, if any, or if a qualifying member of the per- sonnel of a foreign government on as- signment in the United States, the name of the embassy to which the im- porter is accredited.
(j) Release under bond. If a declaration filed in accordance with paragraph (i)(2) of this section states that the entry is being filed under cir- cumstances described in either para- graph (c)(4), (h)(1), (h)(2), (h)(3) or (h)(4) of this section, the entry shall be ac- cepted only if the importer or con- signee gives a bond on Customs Form 301, containing the bond condition set
forth in § 113.62 of this chapter for the production of an EPA statement that the vehicle or engine is in conformity with Federal emission requirements. Within the period in paragraph (h)(2), (h)(3) or (c)(4) of this section, or in the case of paragraph (h)(1) or (h)(4) of this section, the period specified by EPA in its authorization for an exemption, or such additional period as the port di- rector may allow for good cause shown, the importer or consignee shall deliver to the port director the prescribed statement. If the statement is not de- livered to the director of the port of entry within the specified period, the importer or consignee shall deliver or cause to be delivered to the port direc- tor those vehicles which were released under a bond required by this para- graph. In the event that the vehicle or engine is not redelivered within five days following the date specified in the preceding sentence, liquidated damages shall be assessed in the full amount of the bond, if it is a single entry bond, or if a continuous bond is used, the amount that would have been taken under a single entry bond.
(k) Notices of inadmissibility or deten- tion. If a motor vehicle is determined to be inadmissible before release from Customs custody, or inadmissible after release from Customs custody, the im- porter or consignee shall be notified in writing of the inadmissibility deter- mination and/or redelivery require- ment. However, if a motor vehicle can- not be released from Customs custody merely because the importer has failed to attach to the entry the documenta- tion required by paragraph (i) of this section, the vehicle shall be held in de- tention by the director of a period not to exceed 30 days after filing of the entry at the risk and expense of the importer pending submission of the missing documentation. An additional 30-day extension may be granted by the port director upon application for good cause shown. If at the expiration of a period not over 60 days the documenta- tion has not been filed, a notice of in- admissibility will be issued.
(l) Disposal of vehicles not entitled to admission. A motor vehicle denied ad- mission under any provision of this section shall be disposed of in accord- ance with applicable Customs laws and
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regulations. However, a motor vehicle or engine will not be disposed of in a manner in which it may ultimately ei- ther directly or indirectly reach a con- sumer in a condition in which it is not in conformity with applicable EPA emission requirements.
(m) Prohibited importations. The im- portation of motor vehicles otherwise than in accordance with this section and the regulations of EPA in 40 CFR parts 80, 85, 86 and 600 is prohibited.
[T.D. 88–40, 53 FR 26240, July 12, 1988, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001]
§ 12.74 Nonroad and stationary engine compliance with Federal antipollu- tion emission requirements.
(a) Applicability of EPA regulations. The requirements governing the impor- tation of nonroad and stationary en- gines subject to conformance with ap- plicable emissions standards of the U.S. Environmental Protection Agency (EPA) are contained in EPA regula- tions, issued under the Clean Air Act, as amended (42 U.S.C. 7401 et seq.). These EPA regulations should be con- sulted for detailed information as to the admission requirements for subject nonroad and stationary engines. See 40 CFR part 1068, subpart D, with the fol- lowing exceptions:
(1) For nonroad compression-ignition regulated under 40 CFR part 89, see 40 CFR part 89, subpart G. This applies to certain engines through the 2011 model year.
(2) For nonroad spark-ignition en- gines at or below 19 kilowatts regu- lated under 40 CFR part 90, see 40 CFR part 90, subpart G. This applies to cer- tain engines through the 2011 model year.
(3) For marine compression-ignition engines regulated under 40 CFR part 94, see 40 CFR part 94, subpart I. This in- cludes propulsion engines and auxiliary engines installed on marine vessels. This applies to certain engines through the 2013 model year.
(b) Admission of nonconforming nonroad engines.—(1) EPA declaration form required. EPA Form 3520–21, ‘‘Im- portation of Engines, Vehicles, and Equipment Subject to Federal Air Pol- lution Regulations’’, must be com- pleted by the importer and retained on
file by him before making a customs entry for such nonroad or stationary engines/vehicles/equipment.
(2) Retention and submission of records to CBP . Documents supporting the in- formation required in the EPA declara- tion must be retained by the importer for a period of at least five years in ac- cordance with § 163.4 of this chapter and shall be provided to CBP upon re- quest.
(c) Release under bond—(1) Conditional admission. If the EPA declaration states that the entry for a noncon- forming nonroad engine is being filed under one of the exemptions described in paragraph (c)(3) of this section, under which the engine must be condi- tionally admitted under bond, the entry for such engine shall be accepted only if a bond is given on CBP Form 301 containing the conditions set forth in § 113.62 of this chapter for the presen- tation of an EPA statement that the engine has been brought into con- formity with Federal emissions re- quirements.
(2) Final admission. Should final ad- mission be sought and granted pursu- ant to EPA regulations for an engine conditionally admitted initially under one of the exemptions described in paragraphs (c)(3) of this section, the importer or consignee shall deliver to the port director the prescribed state- ment. The statement shall be delivered within the period authorized by EPA for the specific exemption, or such ad- ditional period as the port director of CBP may allow for good cause shown. Otherwise, the importer or consignee shall deliver or cause to be delivered to the port director the subject engine, ei- ther for export or other disposition under applicable CBP laws and regula- tions (see paragraph (e) of this section). If such engine is not redelivered within five days following the allotted period, liquidated damages shall be assessed in the full amount of the bond, if a single entry bond, or if a continuous bond, the amount that would have been taken under a single entry bond (see 40 CFR 89.612(d), 90.613(c) and (d), 94.805(c) and (d), and 1068.335).
(3) Exemptions. The specific exemp- tions under which a nonconforming nonroad engine may be conditionally
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admitted, and for which a CBP bond is required, are as follows:
(i) Repairs or alterations (see 40 CFR 89.611(b)(1), 90.612(b)(1), 94.804(b)(1), 1068.325(a)).
(ii) Testing (see 40 CFR 89.611(b)(2), 90.612(b)(2), 94.804(b)(2), 1068.325(b)).
(iii) Display (see 40 CFR 89.611(b)(4), 90.612(b)(3), 94.804(b)(4), 1068.325(c)).
(iv) Precertification (see 40 CFR 89.611(b)(3)).
(d) Notice of inadmissibility or deten- tion. If an engine is found to be inad- missible either before or after release from CBP custody, the importer or consignee shall be notified in writing of the inadmissibility determination and/or redelivery requirement. How- ever, an engine which cannot be re- leased merely due to a failure to fur- nish with the entry any documentary information as required by EPA shall be held in detention by the port direc- tor for a period not to exceed 30 days after filing of the entry at the risk and expense of the importer pending sub- mission of the missing information. An additional 30-day extension may be granted by the port director upon ap- plication for good cause shown. If at the expiration of a period not over 60 days the required documentation has not been filed, a notice of inadmis- sibility will be issued.
(e) Disposal of engines not entitled to admission; prohibited importations. A nonroad or stationary engine denied admission under EPA regulations shall be disposed of consistent with such EPA regulations and in accordance with applicable CBP laws and regula- tions. The importation of nonroad or stationary engines other than as pre- scribed under EPA regulations is pro- hibited.
[T.D. 98–50, 63 FR 29122, May 28, 1998, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
MOTOR VEHICLES AND MOTOR VEHICLE EQUIPMENT MANUFACTURED ON OR AFTER JANUARY 1, 1968
§ 12.80 Federal motor vehicle safety standards.
(a) Standards prescribed by the Depart- ment of Transportation. Motor vehicles and motor vehicle equipment manufac-
tured on or after January 1, 1968, of- fered for sale, or introduction or deliv- ery for introduction in interstate Com- merce, or importation into the United States are subject to Federal motor ve- hicle safety standards (‘‘safety stand- ards’’) prescribed by the Secretary of Transportation under sections 103 and 119 of the National Traffic and Motor Vehicle Safety Act of 1966, as amended (15 U.S.C. 1392, 1407) (‘‘the Act’’), and set forth in 49 CFR part 571. A motor vehicle (‘‘vehicle’’) or item of motor vehicle equipment (‘‘equipment item’’), manufactured on or after January 1, 1968, is not permitted entry into the Customs territory of the United States unless (with certain exceptions set forth in paragraph (b) of this section) it is in conformity with applicable safety standards in effect at the time the ve- hicle or equipment item was manufac- tured.
(b) Requirements for entry and release. (1) Unless the requirement for filing is waived by the port director as provided for in paragraph (f) of this section, each vehicle or equipment item offered for introduction into the Customs ter- ritory of the United States shall be de- nied entry unless the importer or con- signee files with the entry a declara- tion, in duplicate, which declares or af- firms one of the following:
(i) The vehicle or equipment item was manufactured on a date when no applicable safety standards were in ef- fect.
(ii) The vehicle or equipment item conforms to all applicable safety stand- ards (or, the vehicle does not conform solely because readily attachable equipment items which will be at- tached to the vehicle before it is of- fered for sale to the first purchaser for purposes other than resale are not at- tached) and bears a certification label or tag to that effect permanently af- fixed by the original manufacturer to the vehicle or to the equipment item, or to the outside of the container in which the equipment item is delivered, in accordance with regulations issued by the Secretary of Transportation (49 CFR parts 555, 567, 568 and 571) under section 114 of the Act (15 U.S.C. 1403).
(iii) The vehicle or equipment item was not manufactured in conformity to all applicable safety standards, but it
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has been or will be brought into con- formity. Within 120 days after entry, or within a period not to exceed 180 days after entry, if additional time is grant- ed by the Administrator, National Highway Traffic Safety Administration (‘‘Administrator, NHTSA’’), the im- porter or consignee will submit a true and complete statement to the Admin- istrator, NHTSA, identifying the man- ufacturer, contractor, or other person who has brought the vehicle or equip- ment item into conformity, describing the exact nature and extent of the work performed, and certifying that the vehicle or equipment item has been brought into conformity, and that the vehicle or equipment item will not be sold or offered for sale until the Ad- ministrator, NHTSA, issues an ap- proval letter to the port director stat- ing that the vehicle or equipment item described in the declaration has been brought into conformity with all appli- cable safety standards.
(iv) The vehicle or equipment item is intended solely for export, and the ve- hicle or equipment item, and the out- side of the container of the equipment item, if any, bears a label or tag to that effect.
(v) The importer or consignee is a nonresident of the United States, is im- porting the vehicle or equipment item primarily for personal use for a period not exceeding 1 year from the date of entry, will not sell it in the United States during that period, and has stat- ed his passport number and country of issue, if he has a passport, on the dec- laration.
(vi) The importer or consignee is a member of the armed forces of a for- eign country on assignment in the U.S. or is a member of the personnel of a foreign government on assignment in the U.S. or other individual who is within the class of persons for whom free entry of vehicles has been author- ized by the Department of State in ac- cordance with general principles of international law, is importing the ve- hicle or equipment item for purposes other than resale; and a copy of his of- ficial orders, if any, is attached to the declaration (or, if a qualifying member of the personnel of a foreign govern- ment on assignment in the U.S., the
name of the Embassy to which he is ac- credited is stated on the declaration).
(vii) The vehicle or equipment item is imported solely for the purpose of show, test, experiment, competition (a vehicle the configuration of which at the time of entry is such that it cannot be licensed for use on the public roads is considered to be imported for the purpose of competition), repair or al- teration, and the statement required by 19 CFR 12.80(c)(2) or (c)(3) is at- tached to the declaration.
(viii) The vehicle was not manufac- tured primarily for use on the public roads and is not a ‘‘motor vehicle’’ as defined in section 102 of the Act (15 U.S.C. 1391).
(ix) The vehicle is an ‘‘incomplete ve- hicle’’ as defined in 49 CFR part 568.
(2) A vehicle imported solely for the purpose of test or experiment which is the subject of a declaration filed under paragraph (b)(1)(vii) of this section may be licensed for use on the public roads for a period not to exceed 1 year from the date of importation if use on the public roads is an integral part of the test or experiment. The vehicle may be licensed for use on the public roads for one or more further periods which, when added to the initial 1 year period, shall not exceed a total of 3 years, upon application to and approval by the Administrator, NHTSA.
(c) Declaration; contents. (1) Each dec- laration filed under paragraph (b)(1) of this section shall include the name and address in the United States of the im- porter or consignee, the date and the entry number (if applicable), the make, model, and engine and body serial num- bers, or other identification number (if a vehicle), or a description of the item (if an equipment item), and shall be signed by the importer or consignee.
(2) Each declaration filed under para- graph (b)(1)(vii) of this section which relates to a vehicle or equipment item reported for the purpose of show, com- petition, repair, or alteration shall have attached a statement fully de- scribing the use to be made of the vehi- cle or equipment item and its ultimate disposition.
(3) Each declaration filed under para- graph (b)(1)(vii) of this section which relates to a vehicle imported solely for the purpose of test or experiment shall
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have attached a statement fully de- scribing the test or experiment, the es- timated period of time necessary to use the vehicle on the public roads, and the disposition to be made of the vehicle after completion of the test or experi- ment.
(4) Any declaration filed under para- graph (b)(1) of this section may, if ap- propriate, relate to more than one ve- hicle or equipment item imported on the same entry.
(d) Declaration; disposition. The port director shall forward the original of each declaration submitted to him under paragraph (b)(1) of this section as soon as practicable to the Director, Office of Vehicle Safety Compliance, National Highway Traffic Safety Ad- ministration, Washington, DC 20590.
(e) Release under bond. (1) If a declara- tion is filed under paragraph (b)(1)(iii) of this section, the entry shall be ac- cepted only if the importer or con- signee gives a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. An ap- proval letter shall be issued upon ap- proval by the Administrator, NHTSA, of the conformity statement submitted by the importer or consignee as pro- vided for in paragraph (b)(1)(iii) of this section. The approval letter shall be forwarded by the Administrator, NHTSA, to the port director with a copy to the importer or consignee. Upon receipt of the approval letter the port director shall cancel the charge against the bond.
(2) If the approval letter is not re- ceived by the port director within 180 days after entry, the port director shall issue a Notice of Redelivery, Customs Form 4647, requiring the redelivery to Customs custody of the vehicle or equipment item. If the vehicle or equipment item is not redelivered to Customs custody or exported under Customs supervision within the period allowed by the port director in the No- tice of Redelivery, liquidated damages shall be assessed in the full amount of a bond if it is single entry bond or if a continuous bond is used, the amount that would have been taken under a single entry bond.
(f) Waiver of declaration requirements. The requirement that a declaration be filed under paragraph (b)(1)(i), (b)(1)(ii),
or (b)(1)(v) of this section as a condi- tion to the introduction of a vehicle or equipment item into the Customs terri- tory of the United States may be waived by the port director for a United States, Canadian, or Mexican registered vehicle arriving via land borders.
(g) Vehicle or equipment item intro- duced by means of a fraudulent or false declaration. Any person who enters, in- troduces, attempts to enter or intro- duce, or aids or abets the entry, intro- duction, or attempted entry or intro- duction, of a vehicle or equipment item into the Customs territory of the United States by means of a fraudulent entry declaration, or by means of a false entry declaration made without reasonable cause to believe the truth of the declaration, may incur liabilities under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592).
(h) Vehicle or equipment item denied entry. If a vehicle or equipment item is denied entry under the provisions of paragraph (b) of this section, the port director shall refuse to release the ve- hicle or equipment item for entry into the Customs territory of the United States and shall issue a notice of that refusal to the importer or consignee.
(i) Disposition of vehicle or equipment item denied entry; redelivery. A vehicle or equipment item denied entry under paragraph (b) of this section, or re- delivered to Customs custody under paragraph (e) of this section, which is not exported under Customs super- vision within 90 days from the date of the notice of denial of entry or date of redelivery, shall be disposed of under applicable Customs laws and regula- tions, except that disposition shall not result in the introduction of the vehi- cle or equipment item into the Cus- toms territory of the United States in violation of the Act.
[T.D. 78–478, 43 FR 56659, Dec. 4, 1978, as amended by T.D. 84–213, 49 FR 41167, Oct. 19, 1984; T.D. 86–203, 51 FR 42997, Nov. 28, 1986]
SAFETY STANDARDS FOR BOATS AND ASSOCIATED EQUIPMENT
§ 12.85 Coast Guard boat and associ- ated equipment safety standards.
(a) Applicability of standards or regula- tions prescribed by the Commandant, U.S.
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Coast Guard. Boats and associated equipment (as hereinafter defined) are subject to U.S. Coast Guard safety reg- ulations or standards when imported or, under certain conditions, brought into the United States after November 1, 1972. Those regulations or standards are prescribed by the Commandant, U.S. Coast Guard, pursuant to sections 5, 7, and 39, Federal Boat Safety Act of 1971 (46 U.S.C. 1454, 1456, 1488), as set forth in 33 CFR parts 181, 183.
(1) The term ‘‘boats’’ includes: (i) All vessels manufactured or used
primarily for noncommercial use. (ii) All vessels leased, rented, or
chartered to another for the latter’s noncommercial use.
(iii) All vessels engaged in the car- rying of six or fewer passengers (see section 4.80 of this chapter on prohibi- tions against foreign vessels trans- porting passengers in the coastwise trade).
(2) For purposes of § 12.85 the term ‘‘boat’’ does not include:
(i) Foreign vessels temporarily using waters subject to U.S. jurisdiction.
(ii) Military or public vessels of the United States, except recreational type public vessels.
(iii) A vessel whose owner is a State or subdivision thereof, which is prin- cipally used for governmental pur- poses, and which is clearly identifiable as such.
(iv) Ships’ lifeboats. (3) The term ‘‘associated equipment’’
means: (i) Any system, part, or component of
a boat as originally manufactured, or a similar part or component manufac- tured or sold for replacement, repair, or improvement of such system, part, or component (excluding radio equip- ment).
(ii) Any accessory or equipment for, or appurtenance to, a boat (excluding radio equipment).
(iii) Any marine safety article, acces- sory, or equipment intended for use by a person on board a boat (excluding radio equipment).
(4) The term ‘‘product’’ as used in this section, includes the terms ‘‘boats’’ and ‘‘associated equipment’’ as defined in paragraphs (a) (1), (2), and (3) of this section.
(b) Evidence of compliance with boating standards or regulations as condition of entry. A product for which entry is sought into the Customs territory of the United States will, subject to the exceptions specified in paragraph (c) of this section, be denied entry unless ac- companied by evidence of compliance with standards or regulations as fol- lows:
(1) A product subject to standards prescribed in 33 CFR part 183 will have affixed to it a compliance certification label in accordance with the require- ments of subpart B, 33 CFR part 181.
(2) A boat hull subject to subpart C, 33 CFR part 181 will have affixed to it a hull identification number affixed by the importer or the original manufac- turer. The number shall comply with the format requirements of subpart C, 33 CFR part 181.
(c) Products not in compliance with standards or regulations: Alternative evi- dence required as condition of entry and release. Certain products shall be per- mitted entry and release without a compliance certification label or hull identification number affixed, as is re- quired by subparts B and C, 33 CFR part 181, if they fall within one of the following categories, and if the condi- tions for entry and release specified for each category of product are met:
(1) Products manufactured before stand- ards or regulations in effect. For certain products manufactured before an appli- cable standard or regulation was in ef- fect, a declaration will be filed in ac- cordance with the requirements of paragraph (d) of this section. The dec- laration will state that the product was manufactured before the applica- ble standard or regulation was in ef- fect. If the port director believes that it is necessary in a particular case, he may communicate with the nearest Coast Guard district commander by the most expedient means to request that the Coast Guard determine that alter- ation of the product is not required.
(2) Products exempted from standards or regulations by Coast Guard Grant of Ex- emption. For certain products specifi- cally exempted from applicable stand- ards or regulations by a Coast Guard Grant of Exemption, a declaration will be filed in accordance with paragraph (d) of this section. The declaration will
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state that the product has been specifi- cally exempted from applicable stand- ards or regulations by a U.S. Coast Guard Grant of Exemption, issued under the authority of section 9 of the Federal Boat Safety Act of 1971 (46 U.S.C. 1458), and in effect on the date the product was manufactured. The declaration will also state that the product complies with all the terms and conditions of the exemption. A copy of the exemption, certified by the importer or consignee to be a true copy, shall be attached to each declara- tion.
(3) Products to be brought into con- formity. In the case of products that are not in conformity at the time of entry but will be brought into conformity, a declaration will be filed in accordance with paragraph (d) of this section. The declaration will state that the product does not conform with applicable safe- ty standards or regulations, but that the importer or consignee will bring the product into conformity with safe- ty standards or regulations, and will also state that the product will not be sold or offered for sale, or used on wa- ters subject to the jurisdiction of the United States and on the high seas be- yond the territorial seas for a vessel owned in the United States except for the purpose of bringing it into con- formity, until the bond has been satis- fied with respect to this obligation. To secure entry under this provision, bond must be given in accordance with para- graph (e)(1) of this section.
(4) Certain products entering the United States for repair or alteration. In the case of a nonresident of the United States who wishes to enter a product for the purpose of making repairs or alter- ations to it for a period not exceeding 1 year from the date of entry, a dec- laration will be filed in accordance with paragraph (d) of this section. The declaration shall state that the im- porter or consignee is a nonresident of the United States, that the product is being brought in for the purpose of making repairs or alterations to it, that it will not remain in the Customs territory of the United States for more than 1 year following the date of the entry, and that it will not be offered for sale, sold, or used for pleasure in
waters subject to the jurisdiction of the United States during that time.
(5) Products owned by certain foreign governments. In the case of an importer or consignee employed in one of the ca- pacities set forth in this subparagraph, a declaration will be filed in accord- ance with paragraph (d) of this section. The declaration shall state that the importer or consignee is either a mem- ber of the armed forces of a foreign country on assignment in the U.S. or is a member of the personnel of a foreign government on assignment in the U.S. or other individual who comes within the class of persons for whom free entry of boats has been authorized by the Department of State in accordance with general principles of international law, and that he is importing the prod- uct for purposes other than resale.
(6) Certain products entered for tests, experiments, exhibits, or races. An im- porter or consignee seeking to enter a product for period not to exceed 1 year, for tests, experiments, exhibits, or races but not for sale in the United States, shall file a declaration in ac- cordance with paragraph (d) of this sec- tion. The declaration shall state that the importer or consignee is importing the product solely for the stated pur- pose and that it will not be sold or op- erated in the United States, unless the operation is an integral part of the stated use for which the product was imported. The importer or consignee shall attach to the declaration a de- scription of use for which the product is being imported, the time period esti- mated for completion, and disposition to be made of the product after comple- tion. Entry under this paragraph may be authorized for a period not to exceed 1 year from the date of importation. However, this period may be extended at the discretion of the port director for one or more additional periods which, when added to the initial 1-year period, shall not exceed a total of 3 years.
(d) Declaration requirements. All dec- larations submitted must:
(1) Be filed at the time of entry, in duplicate on Form CG–5096.
(2) Be signed by the importer or con- signee.
(3) State the name and U.S. address of the importer or consignee.
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(4) State the entry number and date. (5) Provide the make, model, and hull
identification number, if affixed, or date of manufacture if hull identifica- tion number not affixed, of any boat, and a description of any equipment or component.
(6) Identify, if known, the city or state in which the product will be prin- cipally located.
(7) Be sent by the port director, to the Commandant (G-BBS-1/42), U.S. Coast Guard, Washington, D.C. 20593.
(e) Release under bond—(1) When bond required. A bond will be required of the importer or consignee on Customs Form 301, containing the bond condi- tions set forth in § 113.62 of this chap- ter, in such amount as the port direc- tor deems appropriate, when a declara- tion is made that a product is to be brought into conformity. When the im- porter or consignee of a product de- clares that it will be brought into con- formity before being sold or offered for sale, or before being used on waters subject to the jurisdiction of the United States and on the high seas be- yond the territorial seas for a vessel owned in the United States and seeks entry of the product under paragraph (c)(3) of this section, the entry shall be accepted only if bond is given for the production of a statement by either the importer or the consignee that the product described in the declaration is in conformity with applicable safety standards or regulations. The state- ment shall identify the person or firm who has brought the product into con- formity with the standards or regula- tions and shall describe the nature and extent of the work performed.
(2) Time limitation to produce statement for which bond is obligated. Within 180 days after entry, the importer or con- signee shall deliver to both the port di- rector and the Commandant, U.S. Coast Guard, a copy of the statement for production of which the bond was obligated. If the statement is not deliv- ered to the director of the port of entry of the product within 180 days after the date of entry, the importer or con- signee shall deliver or cause to be de- livered to the port director the product that was released in accordance with this paragraph.
(3) Damages to be assessed against bond. In the event that any product is not redelivered within 5 days following the date required by paragraph (e)(2) of this section, liquidated damages shall be assessed in the full amount of the bond if it is a single entry bond, or if a continuous bond is used, the amount that would have been taken under a single entry bond.
(f) Products refused entry. If a product is denied entry under the provisions of this section, the port director shall refuse to release the product for entry into the United States and shall issue a notice of the refusal to the importer or consignee.
(g) Disposition of products refused entry into the United States; redelivered prod- ucts. Products which are denied entry under paragraph (b) of this section, or which are redelivered in accordance with paragraph (e)(2) of this section, and which are not exported under Cus- toms supervision within 90 days from the date of notice of refusal of admis- sion or date of redelivery, shall be dis- posed of under Customs laws and regu- lations. However, no such disposition shall result in an introduction into the United States of a product in violation of the Federal Boat Safety Act of 1971 (46 U.S.C. 1451–1489).
[T.D. 76–166, 41 FR 23398, June 10, 1976, as amended by T.D. 82–220, 47 FR 52138, Nov. 19, 1982; T.D. 84–213, 49 FR 41168, Oct. 19, 1984; T.D. 86–203, 51 FR 42997, Nov. 28, 1986]
ELECTRONIC PRODUCTS
§ 12.90 Definitions. As used in §§ 12.90 and 12.91, the term
‘‘the Act’’ shall mean the Public Health Service Act (42 U.S.C. 201 et seq.), as amended by the Radiation Con- trol for Health and Safety Act of 1968 (42 U.S.C. 263b et seq.), and as further amended from time to time.
[T.D. 83–235, 48 FR 52436, Nov. 18, 1983]
§ 12.91 Electronic products offered for importation under the Act.
(a) Standards prescribed by the Depart- ment of Health and Human Services. Electronic products offered for impor- tation into the customs territory of the United States are subject to stand- ards prescribed under section 358 of the Act (42 U.S.C. 263f) unless intended
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solely for export. Prescribed standards shall not apply to any electronic prod- uct intended solely for export if:
(1) Such product and the outside of any shipping container used in the ex- port of such product are labeled or tagged to show that it is intended for export, and
(2) Such product meets all the appli- cable requirements of the country to which it is intended for export.
(See 21 CFR, chapter I, subchapter J.)
(b) Requirements for entry and release. Electronic products subject to stand- ards in effect under section 358 of the Act (42 U.S.C. 263f), when offered for importation into the customs territory of the United States, shall be refused entry unless there is filed with the entry, in duplicate, a declaration (FDA Form FD 2877) verified by the importer of record which identifies the products and affirms:
(1) That the electronic products were manufactured before the date of any applicable electronic product perform- ance standard (the date of manufacture shall be specified); or
(2) That the electronic products com- ply with all standards in effect under section 358 of the Act (42 U.S.C. 263f), and chapter I, subchapter J, title 21, Code of Federal Regulations (21 CFR, chapter I, subchapter J), and that the certification required by section 360 of the Act (42 U.S.C. 263h) in the form of a label or tag is attached to the prod- uct; or
(3)(i) That the electronic products do not comply with all standards in effect under section 358 of the Act (42 U.S.C. 263f), and chapter I, subchapter J, title 21, Code of Federal Regulations (21 CFR, chapter I, subchapter J), but are being imported for the purpose of re- search, investigations, studied, dem- onstrations, or training, (ii) that the products will not be introduced into commerce and when the use for which they were imported is completed they will be destroyed or exported under Customs supervision, and (iii) that an exemption for these products has been or will be requested from the National Center for Devices and Radiological Health, Food and Drug Administration, in accordance with section 360B(b) of the Act (42 U.S.C. 263j); or
(4) That the electronic products do not comply with all standards in effect under section 358 of the Act (42 U.S.C. 263f) and chapter I, subchapter J, Code of Federal Regulations (21 CFR, chap- ter I, subchapter J), but that a timely and adequate petition for permission to bring the products into compliance with applicable standards has been or will be filed with the Secretary of Health and Human Services in accord- ance with section 360 of the Public Health Service Act, as amended, and as implemented by 21 CFR 1005.21.
(c) Notice of sampling. When a sam- pling of a product offered for importa- tion has been requested by the Sec- retary of Health and Human Services, as provided for in 21 CFR 1005.10, the port director having jurisdiction over the shipment from which the sample is procured shall give to its owner or im- porter of record prompt notice of deliv- ery of, or intention to deliver, the sam- ple. If the notice so requires, the owner or importer of record shall hold the shipment of which the sample is typ- ical and not release the shipment until notice of the results of the tests of the sample from the Secretary of Health and Human Services stating the prod- uct fulfills the requirements of the Act.
(d) Release under bond. If a declara- tion filed in accordance with paragraph (b) of this section states that the entry is being made under circumstances de- scribed in paragraph (b)(4) of this sec- tion, the entry shall be accepted only if the owner or importer of record gives a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, for the production of a notification from the Secretary of Health and Human Services or his des- ignee, in accordance with 21 CFR 1005.23, that the electronic product de- scribed in the declaration filed by the importer of record is in compliance with the applicable standards. The bond shall be in an amount deemed ap- propriate by the port director. Within 180 days after the entry of such addi- tional period as the port director may allow for good cause shown, the im- porter of record shall take any action necessary to insure delivery to the port director of the notification described in this paragraph. If the notification is not delivered to the director of the port
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of entry of the electronic products within 180 days of the date of entry or such additional period as may be al- lowed by the port director, for good cause shown, the importer of record shall deliver or cause to be delivered to the port director those electronic prod- ucts which were released. In the event that any electronic products are not redelivered to Customs custody or ex- ported under Customs supervision within the period allowed by the port director in the Notice of Redelivery (Customs Form 4647), liquidated dam- ages shall be assessed in the full amount of a bond if it is a single entry bond, or if a continuous bond is used, the amount that would have been taken under a single entry bond.
(e) Release without bond—special ex- emptions. For certain electronic prod- ucts the Director, National Center for Devices and Radiological Health, has granted special exemptions from the otherwise applicable standards under the Act. Such exempted products may be imported and released without bond if they meet all the criteria of the spe- cial exemption. If a special exemption is granted after the product has been imported under bond in accordance with paragraph (d) of this section, the bond conditions pertaining to the noti- fication of compliance from the Sec- retary of Health and Human Services shall be deemed to have been satisfied.
(f) Merchandise refused entry. If elec- tronic products are denied entry under any provision of this section, the port director shall refuse to release the merchandise for entry into the United States.
(g) Disposition of merchandise refused entry into the United States; redelivered merchandise. Electronic products which are denied entry under paragraph (b) of this section, or which are redelivered in accordance with paragraph (d) of this section, and which are not ex- ported under Customs supervision within 90 days from the date of notice of refusal of admission or date of rede- livery, shall be disposed of under Cus- toms laws and regulations. However, no such disposition shall result in an introduction into the United States of
an electronic product in violation of the Act (42 U.S.C. 263f, 263h).
[T.D. 83–235, 48 FR 52436, Nov. 18, 1983, as amended by T.D. 84–213, 49 FR 41168, Oct. 19, 1984]
SWITCHBLADE KNIVES
§ 12.95 Definitions.
Terms as used in §§ 12.96 through 12.103 of this part are defined as fol- lows:
(a) Switchblade knife. ‘‘Switchblade knife’’ means any imported knife, or components thereof, or any class of im- ported knife, including ‘‘switchblade’’, ‘‘Balisong’’, ‘‘butterfly’’, ‘‘gravity’’ or ‘‘ballistic’’ knives, which has one or more of the following characteristics or identities:
(1) A blade which opens automati- cally by hand pressure applied to a but- ton or device in the handle of the knife, or any knife with a blade which opens automatically by operation of inertia, gravity, or both;
(2) Knives which, by insignificant preliminary preparation, as described in paragraph (b) of this section, can be altered or converted so as to open auto- matically by hand pressure applied to a button or device in the handle of the knife or by operation of inertia, grav- ity, or both;
(3) Unassembled knife kits or knife handles without blades which, when fully assembled with added blades, springs, or other parts, are knives which open automatically by hand pressure applied to a button or device in the handle of the knife or by oper- ation of inertia, gravity, or both; or
(4) Knives with a detachable blade that is propelled by a spring-operated mechanism, and components thereof.
(b) Insignificant preliminary prepara- tion. ‘‘Insignificant preliminary prepa- ration’’ means preparation with the use of ordinarily available tools, in- struments, devices, and materials by one having no special manual training or skill for the purpose of modifying blade heels, relieving binding parts, al- tering spring restraints, or making similar minor alterations which can be accomplished in a relatively short pe- riod of time.
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U.S. Customs and Border Protection, DHS; Treasury § 12.99
(c) Utilitarian use. ‘‘Utilitarian use’’ includes but is not necessarily limited to use:
(1) For a customary household pur- pose;
(2) For usual personal convenience, including grooming;
(3) In the practice of a profession, trade, or commercial or employment activity;
(4) In the performance of a craft or hobby;
(5) In the course of such outdoor pur- suits as hunting and fishing; and
(6) In scouting activities.
[T.D. 71–243, 36 FR 18859, Sept. 23, 1971, as amended by T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.96 Imports unrestricted under the Act.
(a) Common and special purpose knives. Imported knives with a blade style de- signed for a primary utilitarian use, as defined in § 12.95(c), shall be admitted to unrestricted entry provided that in condition as entered the imported knife is not a switchblade knife as de- fined in § 12.95(a)(1). Among admissible common and special purpose knives are jackknives and similar standard pock- etknives, special purpose knives, scout knives, and other knives equipped with one or more blades of such single edge nonweapon styles as clip, skinner, pruner, sheep foot, spey, coping, razor, pen, and cuticle.
(b) Weapons with fixed blades. Impor- tations of certain articles having a fixed unexposed or exposed blade are not within the prohibition of 15 U.S.C. 1241 through 1245. However, upon re- lease by Customs, possession of these admissible articles which include such weapons as sword canes, camel whips, swords, sheath knives, machetes and similar devices that may be capable of use as weapons may be in violation of State or municipal laws.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.97 Importations contrary to law.
Importations of switchblade knives, except as permitted by 15 U.S.C. 1244, are importations contrary to law and
are subject to forfeiture under 19 U.S.C. 1595a(c).
[T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.98 Importations permitted by stat- utory exceptions.
The importation of switchblade knives is permitted by 15 U.S.C. 1244, when:
(a) Imported pursuant to contract with a branch of the Armed Forces of the United States;
(b) Imported by a branch of the Armed Forces of the United States or any member or employee thereof act- ing in the performance of his duty; or
(c) A switchblade knife, other than a ballistic knife, having a blade not ex- ceeding 3 inches in length is in the pos- session of and is being transported on the person of an individual who has only one arm.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.99 Procedures for permitted entry. (a) Declaration required. The entry of
switchblade knives, the importation of which is permitted under § 12.98 shall be accompanied by a declaration, in dupli- cate, of the importer or consignee stat- ing the facts of the import transaction as follows:
(1) Importation pursuant to Armed Forces contract. (i) The names of the contracting Armed Forces branch and its supplier;
(ii) The specific contract relied upon identified by its date, number, or other contract designation; and
(iii) A description of the kind or type of knife imported, the quantity en- tered, and the aggregate entered value of the importation.
(2) Importation by a branch, member, or employee of the Armed Forces. (i) The name of the Armed Forces branch by or for the account of which entry is made or the branch of the importing member or employee acting in performance of duty; and
(ii) The description, quantity, and ag- gregate entered value of the importa- tion.
(3) Importation by a one-armed person. A statement that the knife has a blade not exceeding 3 inches in length and is
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possessed by and transported on the de- clarant’s person solely for his nec- essary personal convenience, accommo- dation, and use as a one-armed indi- vidual.
(b) Attachments to declaration. Details for purposes of a declaration required under paragraph (a) of this section may be furnished by reference in the dec- laration to attachment of the original or copy of the contract or other docu- mentation which contains the informa- tion.
(c) Execution of declaration. Declara- tions required by paragraph (a) of this section shall be executed as follows:
(1) Contract supplier; Armed Forces branch; member or employee. Declara- tions made under paragraph (a) or (b) of § 12.98 shall affirm that facts and data furnished are declared on knowl- edge, information, or belief of a signing officer, partner, or authorized rep- resentative of an importing contract supplier or of a commissioned officer, contracting officer, or employee au- thorized to represent an Armed Forces importing branch. The signature to a declaration shall appear over the de- clarant’s printed or typewritten name, his title or rank, and the identity of the contract supplier or Armed Forces branch he represents or in which he has membership or employment.
(2) One-armed person. Declarations made under paragraph (c) of § 12.98, signed by the eligible person, shall be presented upon his arrival directly to a Customs officer who shall visually con- firm the facts declared. An eligible knife shall be released only to the de- clarant.
(d) Verification of declared information. The importer, consignee, or declarant of knives permitted entry under § 12.98 upon request shall furnish Customs ad- ditional documentary evidence from an Armed Forces branch or other relevant source as Customs officers may require in order to:
(1) Verify declared statements; (2) Resolve differences pertaining to
quantity, description, value, or other discrepancy disclosed by the importa- tion, entry, or related documentation;
(3) Establish the declarant’s author- ity to act; or
(4) Authenticate a signature.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971]
§ 12.100 Importations in good faith; common or contract carriage.
(a) Exportation in lieu of seizure. Upon a claim that the importer acted in good faith without knowledge of applicable laws and regulations, Customs officers may authorize detained inadmissible knives to be exported otherwise than in the mails, at no expense to the Govern- ment, under the procedures of §§ 18.25 through 18.27 of this chapter.
(b) Common or contract carriers. In ac- cordance with 15 U.S.C. 1244(1), ex- cepted from the penalties of the Act are the shipping, transporting, or deliv- ering for shipment in interstate com- merce, in the ordinary course of busi- ness of common or contract carriage, of any switchblade knife. However, im- ported switchblade knives as defined in § 12.95(a) so shipped or transported to a port of entry or place of Customs ex- amination are prohibited importations subject to §§ 12.95–12.103 and disposition as therein required, authorized, or per- mitted.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.101 Seizure of prohibited switch- blade knives.
(a) Importations contrary to law. Inad- missible importations which are not exported in accordance with § 12.100(a) shall be seized under 19 U.S.C. 1595a(c).
(b) Notice of seizure. Notice of Cus- toms seizure shall be sent or given to the importer or consignee, which shall inform him of his right to file a peti- tion under section 618, Tariff Act of 1930, as amended (19 U.S.C. 1618), for re- mission of the forfeiture and permis- sion to export the seized switchblade knives. (See part 171 of this chapter.)
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90–50, 55 FR 28192, July 10, 1990]
§ 12.102 Forfeiture. If the importer or consignee fails to
submit, within 60 days after being noti- fied of his right to do so, a petition under section 618, Tariff Act of 1930, as amended (19 U.S.C. 1618), for remission of the forfeiture and permission to ex- port the seized importation, the seized prohibited knives shall be forfeited in
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U.S. Customs and Border Protection, DHS; Treasury § 12.104
accordance with applicable provisions of sections 602 through 611, Tariff Act of 1930, as amended (19 U.S.C. 1602 through 1611), and the procedures of part 162 of this chapter.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 78–99, 43 FR 13060, Mar. 29, 1978; T.D. 00–57, 65 FR 53574, Sept. 5, 2000]
§ 12.103 Report to the U.S. Attorney.
Should circumstances and facts of the import transaction show evidence of deliberate violation of 15 U.S.C. 1241 through 1245, so as to present a ques- tion of criminal liability, the evidence, accompanied by reports of investiga- tive disclosures, findings, and rec- ommendation, shall be transmitted to the U.S. Attorney for consideration of criminal prosecution. The port director shall hold the seized switchblade knives intact pending disposition of the case.
[T.D. 71–243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 72–81, 37 FR 5364, Mar. 15, 1972; T.D. 90–50, 55 FR 28192, July 10, 1990]
CULTURAL PROPERTY
SOURCE: Sections 12.104 through 12.104i issued by T.D. 86–52, 51 FR 6907, Feb. 27, 1986, unless otherwise noted.
§ 12.104 Definitions.
For purposes of §§ 12.104 through 12.104i:
(a) The term, archaeological or ethno- logical material of the State Party to the 1970 UNESCO Convention means—
(1) Any object of archaeological in- terest. No object may be considered to be an object of archaeological interest unless such subject—
(i) Is of cultural significance; (ii) Is at least 250 years old; and (iii) Was normally discovered as a re-
sult of scientific excavation, clandes- tine or accidental digging, or explo- ration on land or under water; or in ad- dition to paragraphs (a)(1) (i) and (ii) of this section;
(iv) Meets such standards as are gen- erally acceptable as archaeological such as, but not limited to, artifacts, buildings, parts of buildings, or decora- tive elements, without regard to whether the particular objects are dis- covered by exploration or excavation;
(2) Any object of ethnological inter- est. No object may be considered to be an object of ethnological interest un- less such object—
(i) Is the product of a tribal or non- industrial society, and
(ii) Is important to the cultural her- itage of a people because of its distinc- tive characteristics, comparative rar- ity, or its contribution to the knowl- edge of the origins, development or his- tory of that people;
(3) Any fragment or part of any ob- ject referred to in paragraph (a) (1) or (2) of this section which was first dis- covered within, and is subject to export control by the State Party.
(b) The term Convention means the Convention on the Means of Prohib- iting and Preventing the Illicit Import, Export, and Transfer of Ownership of Cultural Property adopted by the Gen- eral Conference of the United Nations Educational, Scientific, and Cultural Organization at its sixteenth session (823 U.N.T.S. 231 (1972)).
(c) The term cultural property in- cludes articles described in Article 1 (a) through (k) of the Convention, whether or not any such article is specifically designated by any State Party for the purposes of Article 1. Article 1 lists the following categories:
(1) Rare collections and specimens of fauna, flora, minerals and anatomy, and objects of palaeontological inter- est;
(2) Property relating to history, in- cluding the history of science and tech- nology and military and social history, to the life of national leaders, thinkers, scientists and artists and to events of national importance;
(3) Products of archaeological exca- vations (including regular and clandes- tine) or of archaeological discoveries;
(4) Elements of artistic or historical monuments or archaeological sites which have been dismembered;
(5) Antiquities more than 100 years old, such as inscriptions, coins and en- graved seals;
(6) Objects of ethnological interest; (7) Property of artistic interest, such
as:
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19 CFR Ch. I (4–1–12 Edition)§ 12.104a
(i) Pictures, paintings and drawings produced entirely by hand on any sup- port and in any material (excluding in- dustrial designs and manufactured ar- ticles decorated by hand);
(ii) Original works of statuary art and sculpture in any material;
(iii) Original engravings, prints and lithographs;
(iv) Original artistic assemblages and montages in any material;
(8) Rare manuscripts and incunabula, old books, documents and publications of special interest (historical, artistic, scientific, literary, etc.) singly or in collections;
(9) Postage, revenue and similar stamps, singly or in collections;
(10) Archives, including sound, photo- graphic and cinematographic archives;
(11) Articles of furniture more than 100 years old and old musical instru- ments.
(d) The term designated archaeological or ethnological material means any ar- chaeological or ethnological material of the State Party which—
(1) Is— (i) Covered by an agreement under 19
U.S.C. 2602 that enters into force with respect to the U.S., or
(ii) Subject to emergency action under 19 U.S.C. 2603 and
(2) Is listed by regulation under 19 U.S.C. 2604.
(e) The term museum means a public or private nonprofit agency or institu- tion organized on a permanent basis for essentially educational or esthetic pur- poses, which, utilizing a professional staff, owns or utilizes tangible objects, cares for them, and exhibits them to the public on a regular basis (Museum Services Act; Pub. L. 94–462; 20 U.S.C. 968). For the purposes of these regula- tions, the term recognized museum under the Cultural Property Implemen- tation Act shall be synonymous with museum.
(f) The term Secretary means the Sec- retary of the Treasury or his delegate, the Commissioner of Customs.
(g) The term State Party means any nation which has ratified, accepted, or acceded to the 1970 UNESCO Conven- tion.
(h) The term United States or U.S., in- cludes the customs territory of the United States, the U.S. Virgin Islands and any territory or area the foreign relations for which the U.S. is respon- sible.
[T.D. 86–52, 51 FR 6907, Feb. 27, 1986; 51 FR 15316, Apr. 23, 1986; 51 FR 17332, May 12, 1986]
§ 12.104a Importations prohibited. (a) No article of cultural property
documented as appertaining to the in- ventory of a museum or religious or secular public monument or similar in- stitution in any State Party which was stolen from such museum, monument, or institution after April 12, 1983, or after the date of entry into force of the Convention for the State Party, which- ever date is later, may be imported into the U.S.
(b) No archaeological or ethnological material designated pursuant to 19 U.S.C. 2604 and listed in § 12.104g, that is exported (whether or not such expor- tation is to the U.S.) from the State Party after the designation of such ma- terial under 19 U.S.C. 2604 may be im- ported into the U.S. unless the State Party issues a certificate or other doc- umentation which certifies that such exportation was not in violation of the laws of the State Party.
§ 12.104b State Parties to the Conven- tion.
(a) The following is a list of State Parties which have deposited an instru- ment of ratification, acceptance, acces- sion or succession, the date of such de- posit and the date of entry into force for each State Party:
State party Date of deposit Date of entry into force
Algeria ......................................................................................... June 24, 1974 (R) ............................. Sept. 24, 1974. Angola ......................................................................................... Nov. 7, 1991 (R) ................................ Feb. 7, 1992. Argentina ..................................................................................... Jan. 11, 1973 (R) .............................. Apr. 11, 1973. Armenia, Republic of .................................................................. Sept. 5, 1993 (S) ............................... See Note 1. Australia ...................................................................................... Oct. 30, 1989 (Ac) ............................. Jan. 30, 1990. Bangladesh ................................................................................. Dec. 9, 1987 (R) ................................ Mar. 9, 1988. Belarus ........................................................................................ Apr. 28, 1988 (R) .............................. July 28, 1988. Belize .......................................................................................... Jan. 26, 1990 (R) .............................. Apr. 26, 1990. Bolivia .......................................................................................... Oct. 4, 1976 (R) ................................ Jan. 4, 1977.
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U.S. Customs and Border Protection, DHS; Treasury § 12.104b
State party Date of deposit Date of entry into force
Bosnia-Herzegovina .................................................................... July 12, 1993 (S) ............................... See Note 2. Brazil ........................................................................................... Feb. 16, 1973 (R) .............................. May 16, 1973. Bulgaria ....................................................................................... Sept. 15, 1971 (R) ............................. Apr. 24, 1972. Burkina Faso ............................................................................... Apr. 7, 1987 (R) ................................ July 7, 1987. Cambodia .................................................................................... Sept. 26, 1972 (R) ............................. Dec. 26, 1972. Cameroon ................................................................................... May 24, 1972 (R) .............................. Aug. 24, 1972. Canada ........................................................................................ Mar. 28, 1978 (Ac) ............................ June 28, 1978. Central African Republic ............................................................. Feb. 1, 1972 (R) ................................ May 1, 1972. China, People’s Republic of ....................................................... Nov. 28, 1989 (Ac) ............................ Feb. 28, 1990. Colombia ..................................................................................... May 24, 1988 (Ac) ............................. Aug. 24, 1988. Cote d’Ivoire ................................................................................ Oct. 30, 1990 (R) .............................. Jan. 30, 1991. Croatia ......................................................................................... July 6, 1992 (S) ................................. See Note 2. Cuba ............................................................................................ Jan. 30, 1980 (R) .............................. Apr. 30, 1980. Cyprus ......................................................................................... Oct. 19, 1979 (R) .............................. Jan. 19, 1980. Czech Republic ........................................................................... Mar. 26, 1993 (S) .............................. See Note 4. Dominican Republic .................................................................... Mar. 7, 1973 (R) ................................ June 7, 1973. Ecuador ....................................................................................... Mar. 24, 1971 (Ac) ............................ Apr. 24, 1972. Egypt ........................................................................................... Apr. 5, 1973 (Ac) ............................... July 5, 1973. El Salvador .................................................................................. Feb. 20, 1978 (R) .............................. May 20, 1978. Georgia, Republic of ................................................................... Nov. 4, 1992 (S) ................................ See Note 1. Greece ........................................................................................ June 5, 1981 (R) ............................... Sept. 5, 1981. Grenada ...................................................................................... Sept. 10, 1992 (Ac) ........................... Dec. 10, 1992. Guatemala ................................................................................... Jan. 14, 1985 (R) .............................. Apr. 14, 1985. Guinea ......................................................................................... Mar. 18, 1979 (R) .............................. June 18, 1979. Honduras ..................................................................................... Mar. 19, 1979 (R) .............................. June 19, 1979. Hungary ....................................................................................... Oct. 23, 1978 (R) .............................. Jan. 23, 1979. India ............................................................................................ Jan. 24, 1977 (R) .............................. Apr. 24, 1977. Iran .............................................................................................. Jan. 27, 1975 (Ac) ............................. Apr. 27, 1975. Iraq .............................................................................................. Feb. 12, 1973 (Ac) ............................ May 12, 1973. Italy .............................................................................................. Oct. 2, 1978 (R) ................................ Jan. 2, 1979. Jordan ......................................................................................... Mar. 15, 1974 (R) .............................. June 15, 1974. Korea, Democratic People’s Republic of .................................... May 13, 1983 (R) .............................. Aug. 13, 1983. Korea, Republic of ...................................................................... Feb. 14, 1983 (Ac) ............................ May 14, 1983. Kuwait ......................................................................................... June 22, 1972 (Ac) ............................ Sept. 22, 1972. Lebanon ...................................................................................... Aug. 25, 1992 (R) .............................. Nov. 25, 1992. Libya ............................................................................................ Jan. 9, 1973 (R) ................................ Apr. 9, 1973. Madagascar ................................................................................ June 21, 1989 (R) ............................. Sept. 21, 1989. Mali .............................................................................................. Apr. 6, 1987 (R) ................................ July 6, 1987. Mauritania ................................................................................... Apr. 27, 1977 (R) .............................. July 27, 1977 Mauritius ...................................................................................... Feb. 27, 1978 (Ac) ............................ May 27, 1978. Mexico ......................................................................................... Oct. 4, 1972 (Ac) ............................... Jan. 4, 1973. Mongolia ...................................................................................... June 23, 1991 (Ac) ............................ Aug. 23, 1991. Nepal ........................................................................................... June 23, 1976 (R) ............................. Sept. 23, 1976. Nicaragua .................................................................................... Apr. 19, 1977 (R) .............................. July 19, 1977. Niger ............................................................................................ Oct. 16, 1972 (R) .............................. Jan. 16, 1973. Nigeria ......................................................................................... Jan. 24, 1972 (R) .............................. Apr. 24, 1972. Oman .......................................................................................... June 2, 1978 (Ac) .............................. Sept. 2, 1978. Pakistan ...................................................................................... Apr. 30, 1978 (R) .............................. July 30, 1981. Panama ....................................................................................... Aug. 13, 1973 (Ac) ............................ Nov. 13, 1973. Peru ............................................................................................. Oct. 24, 1979 (Ac) ............................. Jan. 24, 1980. Poland ......................................................................................... Jan. 31, 1974 (R) .............................. Apr. 30, 1974. Portugal ....................................................................................... Dec. 9, 1985 (R) ................................ Mar. 9, 1986. Qatar ........................................................................................... Apr. 20, 1977 (Ac) ............................. July 20, 1977. Romania ...................................................................................... Dec. 6, 1993 (R) ................................ Mar. 6, 1994. Russian Federation ..................................................................... Apr. 28, 1988 (R) .............................. See Note 3. Saudi Arabia ............................................................................... Sept. 8, 1976 (Ac) ............................. Dec. 8, 1976. Senegal ....................................................................................... Dec. 9, 1984 (R) ................................ Mar. 9, 1985. Slovak Republic .......................................................................... Mar. 31, 1993 (S) .............................. See Note 4. Slovenia, Republic of .................................................................. Oct. 10, 1992 (S) ............................... See Note 2. Spain ........................................................................................... Jan. 10, 1986 (R) .............................. Apr. 10, 1986. Sri Lanka ..................................................................................... Apr. 7, 1981 (Ac) ............................... July 7, 1981. Syria ............................................................................................ Feb. 21, 1975 (Ac) ............................ May 21, 1975. Tadjikistan, Republic of ............................................................... Aug. 11, 1992 (S) .............................. See Note 1. Tanzania ..................................................................................... Aug. 2, 1977 (R) ................................ Nov. 2, 1977. Tunisia ......................................................................................... Mar. 10, 1975 (R) .............................. June 10, 1975. Turkey ......................................................................................... Apr. 21, 1981 (R) .............................. July 21, 1981. Ukraine ........................................................................................ Apr. 28, 1988 (R) .............................. July 28, 1988. United States of America ............................................................ Sept. 2, 1983 (Ac) ............................. Dec. 2, 1983. Uruguay ....................................................................................... Aug. 9, 1977 (R) ................................ Nov. 9, 1977. Yugoslavia ................................................................................... Oct. 3, 1972 (R) ................................ Jan. 3, 1973. Zaire ............................................................................................ Sept. 23, 1974 (R) ............................. Dec. 23, 1974. Zambia ........................................................................................ June 21, 1985 (R) ............................. Sept. 21, 1985.
Code for reading second column: Ratification (R); Acceptance (Ac); Accession (A); Succession (S). NOTES:
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19 CFR Ch. I (4–1–12 Edition)§ 12.104c
1. The Republic of Armenia, the Republic of Georgia, and the Republic of Tadjikistan each deposited a notification of succes- sion in which each declared itself bound by the Convention as ratified by the USSR on April 28, 1988 and which entered into force on July 28, 1988.
2. Bosnia-Herzegovina, Croatia and the Republic of Slovenia each deposited notification of succession in which each declared itself bound by the Convention as ratified by Yugoslavia on Oct. 3, 1972 and entered into force on January 3, 1973.
3. The Government of the Russian Federation informed the Director General of UNESCO that the Russian Federation con- tinues without interruption the participation of the USSR in all UNESCO Conventions. The instrument of ratification was depos- ited by the former USSR on April 28, 1988. and entered into force on July 28, 1988.
4. The Czech Republic and the Slovak Republic each deposited a notification of succession in which each declared itself bound by the Convention as accepted by Czechoslovakia on Feb. 14, 1977 and which entered into force on May 14, 1977.
(b) Additions to and deletions from the list of State Parties will be accom- plished by FEDERAL REGISTER notice, from time to time, as the necessity arises.
[T.D. 86–52, 51 FR 6907, Feb. 27, 1986, as amended by T.D. 88–59, 53 FR 38287, Sept. 30, 1988; T.D. 90–13, 55 FR 4996, Feb. 13, 1990; T.D. 95–71, 60 FR 47467, Sept. 13, 1995 ; CBP Dec. 08- 25, 73 FR 40725, July 16, 2008]
§ 12.104c Importations permitted. Designated archaeological or ethno-
logical material for which entry is sought into the U.S., will be permitted entry if at the time of making entry:
(a) A certificate, or other documenta- tion, issued by the Government of the country of origin of such material in a form acceptable to the Secretary is filed with the port director, such form being, but not limited to, an affidavit, license, or permit from an appropriate, authorized State Party official under seal, certifying that such exportation was not in violation of the laws of that country, or
(b) Satisfactory evidence is presented to the port director that such des- ignated material was exported from the State Party not less than 10 years be- fore the date of such entry and that neither the person for whose account the material is imported (or any re- lated person) contracted for or ac- quired an interest, directly or indi- rectly, in such material more than 1 year before that date of entry, or
(c) Satisfactory evidence is presented to the port director that such des- ignated material was exported from the State Party on or before the date on which such material was designated under 19 U.S.C. 2604.
(d) The term ‘‘satisfactory evidence’’ means—
(1) For purposes of paragraph (b) of this section—
(i) One or more declarations under oath by the importer, or the person for
whose account the material is im- ported, stating that, to the best of his knowledge—
(A) The material was exported from the State Party not less than 10 years before the date of entry into the U.S., and
(B) Neither such importer or person (or any related person) contracted for or acquired an interest, directly or in- directly, in such material more than 1 year before the date of entry of the ma- terial; and
(ii) A statement provided by the con- signor, or person who sold the material to the importer, which states the date, or, if not known, his belief, that the material was exported from the State Party not less than 10 years before the date of entry into the U.S. and the rea- sons on which the statement is based; and
(2) For purposes of paragraph (c) of this section—
(i) One or more declarations under oath by the importer or the person for whose account the material is to be im- ported, stating that, to the best of his knowledge, the material was exported from the State Party on or before the date such material was designated under 19 U.S.C. 2604, and
(ii) A statement by the consignor or person who sold the material to the im- porter which states the date, or if not known, his belief, that the material was exported from the State Party on or before the date such material was designated under 19 U.S.C. 2604, and the reasons on which the statement is based.
(e) Related persons. For purposes of paragraphs (b) and (d) of this section, a person shall be treated as a related per- son to an importer, or to a person for whose account material is imported, if such person—
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(1) Is a member of the same family as the importer or person of account, in- cluding, but not limited to, member- ship as a brother or sister (whether by whole or half blood), spouse, ancestor, or lineal descendant;
(2) Is a partner or associate with the importer or person of account in any partnership, association, or other ven- ture; or
(3) Is a corporation or other legal en- tity in which the importer or person of account directly or indirectly owns, controls, or holds power to vote 20 per- cent or more of the outstanding voting stock or shares in the entity.
§ 12.104d Detention of articles; time in which to comply.
In the event an importer cannot produce the certificate, documenta- tion, or evidence required in § 12.104c at the time of making entry, the port di- rector shall take the designated ar- chaeological or ethnological material into Customs custody and send it to a bonded warehouse or public store to be held at the risk and expense of the con- signee until the certificate, docu- mentation, or evidence is presented to such officer. The certificate, docu- mentation, or evidence must be pre- sented within 90 days after the date on which the material is taken into Cus- toms custody, or such longer period as may be allowed by the port director for good cause shown.
§ 12.104e Seizure and forfeiture.
(a) Whenever any designated archae- ological or ethnological material is im- ported into the U.S. in violation of 19 U.S.C. 2606, and the importer states in writing that he will not attempt to se- cure the certificate, documentation, or evidence required by § 12.104c, or such certificate, documentation, or evidence is not presented to the port director be- fore the expiration of the time pro- vided in § 12.104d, the material shall be seized and summarily forfeited to the U.S. in accordance with part 162 of this chapter.
(1) Any designated archaeological or ethnological material which is for- feited to the U.S. shall, in accordance with the provisions of Title III of Pub. L. 97–446, 19 U.S.C. 2609(b):
(i) First be offered for return to the State Party;
(ii) If not returned to the State Party be returned to a claimant with respect to whom the designated material was forfeited if that claimant establishes—
(A) Valid title to the material; (B) That the claimant is a bona fide
purchaser for value of the material; or (iii) If not returned to the State
Party under paragraph (a)(1)(i) of this section or to a claimant under para- graph (a)(1)(ii) of this section, be dis- posed of in the manner prescribed by law for articles forfeited for violation of the customs laws. No return of ma- terial may be made under paragraph (a)(1) (i) or (ii) of this section unless the State Party or claimant, as the case may be, bears the expenses in- curred incident to the return and deliv- ery, and complies with such other re- quirements relating to the return as the Secretary shall prescribe.
(b) Whenever any stolen article of cultural property is imported into the U.S. in violation of 19 U.S.C. 2607, such cultural property shall be seized and forfeited to the U.S. in accordance with part 162 of this chapter.
(1) Any stolen article of cultural property which is forfeited to the U.S. shall, in accordance with the provi- sions of Title III of Pub. L. 97–446, 2609(c):
(i) First be offered for return to the State Party in whose territory is situ- ated the institution referred to in 19 U.S.C. 2607 and shall be returned if that State Party bears the expenses inci- dent to such return and delivery and complies with such other requirements relating to the return as the Secretary prescribes; or
(ii) If not returned to such State Party, be disposed of in the manner prescribed by law for articles forfeited for violation of the customs laws.
§ 12.104f Temporary disposition of ma- terials and articles.
Pending a final determination as to whether any archaeological or ethno- logical material, or any article of cul- tural property, has been imported into the U.S. in violation of 19 U.S.C. 2606 or 19 U.S.C. 2607, the Secretary may per- mit such material or article to be re- tained at a museum or other cultural
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19 CFR Ch. I (4–1–12 Edition)§ 12.104g
or scientific institution in the U.S. if he finds that sufficient safeguards will be taken by the museum or institution for the protection of such material or article; and sufficient bond is posted by the museum or institution to ensure its return to the Secretary.
§ 12.104g Specific items or categories designated by agreements or emer- gency actions.
(a) The following is a list of agree- ments imposing import restrictions on the described articles of cultural prop- erty of State Parties. The listed Treas- ury Decision contains the Designated Listing with a complete description of
specific items or categories of archae- ological or ethnological material des- ignated by the agreement as coming under the protection of the Convention on Cultural Property Implementation Act. Import restrictions listed below shall be effective for no more than five years beginning on the date on which the agreement enters into force with respect to the United States. This pe- riod may be extended for additional pe- riods of not more than five years if it is determined that the factors which justified the initial agreement still pertain and no cause for suspension of the agreement exists. Any such exten- sion is indicated in the listing.
State party CulturalProperty Decision No.
Bolivia ...................................... Archaeological and Ethnological Material from Bolivia ............ T.D. 01–86 extended by CBP Dec. 11–24
Cambodia ................................. Archaeological Material from Cambodia from the Bronze Age through the Khmer Era..
CBP Dec. 03–28 extended by CBP Dec. 08–40
Canada .................................... Archaeological artifacts and ethnological material culture of Canadian origin.
T.D. 97–31
Colombia .................................. Pre-Columbian archaeological material ranging approximately from 1500 B.C. to 1530 A.D. and ecclesiastical ethnological material of the Colonial period ranging approximately from A.D. 1530 to 1830.
CBP Dec. 06–09 extended by CBP Dec. 11–06.
Cyprus ...................................... Archaeological material of pre-Classical and Classical periods ranging approximately from the 8th millennium B.C. to 330 A.D. and ecclesiastical and ritual ethnological material rep- resenting the Byzantine period ranging from approximately the 4th century A.D. through approximately the 15th cen- tury A.D.
CBP Dec. 07–52.
El Salvador .............................. Archaeological material representing Prehispanic cultures of El Salvador.
T.D. 95–20 extended by CBP Dec. 10–01
Greece (Hellenic Republic) ...... Archaeological materials representing Greece’s cultural herit- age from the Upper Paleolithic (beginning approximately 20,000 B.C.) through the 15th century A.D. and ecclesias- tical ethnological material representing Greece’s Byzantine culture (approximately the 4th century through the 15th century A.D.).
CBP Dec. 11–25
Guatemala ............................... Archaeological material from sites in the Peten Lowlands of Guatemala, and related Pre-Columbian material from the Highlands and the Southern Coast of Guatemala.
T.D. 97–81 extended by CBP Dec. 07–79
Honduras ................................. Archaeological material of Pre-Colombian cultures ranging approximately from 1200 B.C. to 1500 A.D.
CBP Dec. 04–08 extended by CBP Dec. 09–05
Italy .......................................... Archaeological Material of pre-Classical, Classical, and Impe- rial Roman periods ranging approximately from the 9th century B.C. to the 4th century A.D..
T.D. 01–06 extended by CBP Dec. 11—03
Mali .......................................... Archaeological material from Mali from the Paleolithic Era (Stone Age) to approximately the mid-eighteenth century.
CBP Dec. 07–77
Nicaragua ................................. Archaeological material of pre-Columbian cultures ranging approximately from 8000 B.C. to 1500 A.D.
T.D. 00–75 extended by CBP Dec. 10—32
People’s Republic of China ..... Archaeological materials representing China’s cultural herit- age from the Paleolithic Period (c. 75,000 B.C.) through the end of the Tang Period (A.D. 907) and monumental sculp- ture and wall art at least 250 years old.
CBP Dec. 09–03.
Peru ......................................... Archaeological artifacts and ethnological material from Peru .. T.D. 97–50 extended by CBP Dec. 07–27
(b) The following is a list of emer- gency actions imposing import restric- tions on the described articles of cul- tural property of State Parties. The
listed decision contains a complete de- scription of specific items or categories
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U.S. Customs and Border Protection, DHS; Treasury § 12.104i
of archaeological or ethnological mate- rial designated by the emergency ac- tions as coming under the protection of the Convention on Cultural Property Implementation Act. Import restric- tions listed below shall be effective for no more than five years from the date on which the State Party requested
those restrictions. This period may be extended for three more years if it is determined that the emergency condi- tion continues to apply with respect to the archaeological or ethnological ma- terial. Any such extension is indicated in the listing.
State party Cultural property Decision No.
.
[T.D. 86–52, 51 FR 6907, Feb. 27, 1986]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 12.104g, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 12.104h Exempt materials and arti- cles.
The provisions of these regulations shall not apply to—
(a) Any archaeological or ethno- logical material or any article of cul- tural property which is imported into the U.S. for temporary exhibition or display, if such material or article is rendered immune from seizure under judicial process by the U.S. Informa- tion Agency, Office of the General Counsel and Congressional Liaison, pursuant to the Act entitled ‘‘An Act to render immune from seizure under judicial process certain objects of cul- tural significance imported into the United States for temporary display or exhibition, and for other purposes’’, ap- proved October 19, 1965 (22 U.S.C. 2459); or
(b) Any designated archaeological or ethnological material or any article of cultural property imported into the U.S. if such material or article—
(1) Has been held in the U.S. for a pe- riod of not less than 3 consecutive years by a recognized museum or reli- gious or secular monument or similar institution, and was purchased by that institution for value, in good faith, and without notice that such material or article was imported in violation of these regulations, but only if—
(i) The acquisition of such material or article has been reported in a publi- cation of such institution, any regu- larly published newspaper or periodical with a circulation of at least 50,000, or
a periodical or exhibition catalog which is concerned with the type of ar- ticle or materials sought to be exempt- ed from these regulations,
(ii) Such material or article has been exhibited to the public for a period or periods aggregating at least 1 year dur- ing such 3-year period, or
(iii) Such article or material has been cataloged and the catalog mate- rial made available upon request to the public for at least 2 years during such 3-year period;
(2) If paragraph (b)(1) of this section does not apply, has been within the U.S. for a period of not less than 10 consecutive years and has been exhib- ited for not less than 5 years during such period in a recognized museum or religious or secular monument or simi- lar institution in the U.S. open to the public;
(3) If paragraphs (b) (1) and (2) of this section do not apply, has been within the U.S. for a period of not less than 10 consecutive years and the State Party concerned has received or should have received during such period fair notice (through such adequate and accessible publication, or other means, as the Secretary or his designee shall pre- scribe) of its location within the U.S.; and
(4) If none of the preceding subpara- graphs apply, has been within the U.S. for a period of not less than 20 consecu- tive years and the claimant establishes that it purchased the material or arti- cle for value without knowledge or rea- son to believe that it was imported in violation of law.
§ 12.104i Enforcement.
In the customs territory of the United States, and in the U.S. Virgin
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19 CFR Ch. I (4–1–12 Edition)§ 12.104j
Islands, the provisions of these regula- tions shall be enforced by appropriate customs officers. In any other territory or area within the U.S., but not within such customs territory or the U.S. Vir- gin Islands, such provisions shall be en- forced by such persons as may be des- ignated by the President.
§ 12.104j Emergency protection for Iraqi cultural antiquities.
(a) Restriction. Importation of archae- ological or ethnological material of Iraq is restricted pursuant to the Emergency Protection for Iraqi Cul- tural Antiquities Act of 2004 (title III of Pub. L. 108–429) and section 304 of the Convention on Cultural Property Im- plementation Act (19 U.S.C. 2603).
(b) Description of restricted material. The term ‘‘archaeological or ethno- logical material of Iraq’’ means cul- tural property of Iraq and other items of archaeological, historical, cultural, rare scientific, or religious importance illegally removed from the Iraq Na- tional Museum, the National Library of Iraq, and other locations in Iraq, since the adoption of United Nations Security Council Resolution 661 of 1990. CBP Decision 08–17 sets forth the Des- ignated List of Archaeological and Eth- nological Material of Iraq that de- scribes the types of specific items or categories of archaeological or ethno- logical material that are subject to im- port restrictions.
[73 FR 23342, Apr. 30, 2008]
PRE-COLUMBIAN MONUMENTAL AND AR- CHITECTURAL SCULPTURE AND MU- RALS
§ 12.105 Definitions.
For purposes of §§ 12.106 through 12.109:
(a) The term pre-Columbian monu- mental or architectural sculpture or mural means any stone carving or wall art listed in paragraph (b) of this section which is the product of a pre-Colum- bian Indian culture of Belize, Bolivia, Columbia, Costa Rica, Dominican Re- public, Ecuador, El Salvador, Guate- mala, Honduras, Mexico, Panama, Peru, or Venezuela.
(b) The term stone carving or wall art includes:
(1) Such stone monuments as altars and altar bases, archways, ball court markers, basins, calendars, and calen- drical markers, columns, monoliths, obelisks, statues, stelae, sarcophagi, thrones, zoomorphs;
(2) Such architectural structures as aqueducts, ball courts, buildings, bridges, causeways, courts, doorways (including lintels and jambs), forts, ob- servatories, plazas, platforms, facades, reservoirs, retaining walls, roadways, shrines, temples, tombs, walls, walk- ways, wells;
(3) Architectural masks, decorated capstones, decorative beams of wood, frescoes, friezes, glyphs, graffiti, mosa- ics, moldings, or any other carving or decoration which had been part of or affixed to any monument or architec- tural structure, including cave paint- ings or designs;
(4) Any fragment or part of any stone carving or wall art listed in the pre- ceding subparagraphs.
(c) The term country of origin, as ap- plied to any pre-Columbian monu- mental or architectural sculpture or mural, means the country where the sculpture or mural was first discov- ered.
[T.D. 73–119, 38 FR 10807, May 2, 1973, as amended by T.D. 73–151, 38 FR 14677, June 4, 1973; T.D. 73–165, 38 FR 16044, June 20, 1973; 42 FR 42684, Aug. 24, 1977; T.D. 82–145, 47 FR 35477, Aug. 16, 1982]
§ 12.106 Importation prohibited. Except as provided in section 12.107,
no pre-Columbian monumental or ar- chitectural sculpture or mural which is exported (whether or not such expor- tation is to the United States) from its country of origin after June 1, 1973, may be imported into the United States.
[T.D. 78–273, 43 FR 36055, Aug. 15, 1978]
§ 12.107 Importations permitted. Pre-Columbian monumental or archi-
tectural sculpture or mural for which entry is sought into the Customs terri- tory of the United States will be per- mitted entry if at the time of making entry:
(a) A certificate, issued by the Gov- ernment of the country of origin of such sculpture or mural, in a form ac- ceptable to the Secretary, certifying
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U.S. Customs and Border Protection, DHS; Treasury § 12.112
that such exportation was not in viola- tion of the laws of that country, is filed with the port director; or
(b) Satisfactory evidence is presented to the port director that such sculpture or mural was exported from the coun- try of origin on or before June 1, 1973; or
(c) Satisfactory evidence is presented to the port director that such sculpture or mural is not an article listed in § 12.105.
[T.D. 73–119, 38 FR 10807, May 2, 1973, as amended by T.D. 82–145, 47 FR 35477, Aug. 16, 1982]
§ 12.108 Detention of articles; time in which to comply.
If the importer cannot produce the certificate or evidence required in § 12.107 at the time of making entry, the port director shall take the sculp- ture or mural into Customs custody and send it to a bonded warehouse or public store to be held at the risk and expense of the consignee until the cer- tificate or evidence is presented to such officer. The certificate or evi- dence must be presented within 90 days after the date on which the sculpture or mural is taken into Customs cus- tody, or such longer period as may be allowed by the port director for good cause shown.
[T.D. 73–119, 38 FR 10807, May 2, 1973]
§ 12.109 Seizure and forfeiture. (a) Whenever any pre-Columbian
monumental or architectural sculpture or mural listed in § 12.105 is detained in accordance with § 12.108 and the im- porter states in writing that he will not attempt to secure the certificate or evidence required, or such certificate or evidence is not presented to the port director prior to the expiration of the time provided in § 12.108, the sculpture or mural shall be seized and summarily forfeited to the United States in ac- cordance with part 162 of this chapter.
(b) Any pre-Columbian monumental or architectural sculpture or mural which is forfeited to the United States shall in accordance with the provisions of Title II of Pub. L. 92–587, 19 U.S.C. 2093(b):
(1) First be offered for return to the country of origin, and shall be returned
if that country presents a request in writing for the return of the article and agrees to bear all expenses in- curred incident to such return; or
(2) If not returned to the country of origin, be disposed of in accordance with law, pursuant to the provisions of section 609, Tariff Act of 1930, as amended (19 U.S.C. 1609), and § 162.46 of this chapter.
[T.D. 73–119, 38 FR 10807, May 2, 1973, as amended by T.D. 82–145, 47 FR 35477, Aug. 16, 1982]
PESTICIDES AND DEVICES
§ 12.110 Definitions. Except as otherwise provided below,
the terms used in §§ 12.111 through 12.117 shall have the meanings set forth for those terms in the Federal Insecti- cide, Fungicide, and Rodenticide Act, as amended (7 U.S.C. 136 et seq.), herein- after referred to as ‘‘the Act.’’ The term Administrator shall mean the Ad- ministrator of the Environmental Pro- tection Agency.
[T.D. 75–194, 40 FR 32321, Aug. 1, 1975]
§ 12.111 Registration. All imported pesticides are required
to be registered under the provisions of section 3 of the Act, and under the reg- ulations (40 CFR 162.10) promulgated thereunder by the Administrator be- fore being permitted entry into the United States. Devices, although not required to be registered, must not bear any statement, design, or graphic representation that is false or mis- leading in any particular.
[T.D. 75–194, 40 FR 32321, Aug. 1, 1975]
§ 12.112 Notice of arrival of pesticides and devices.
(a) General. An importer desiring to import pesticides or devices into the United States shall submit to the Ad- ministrator a Notice of Arrival of Pes- ticides and Devices (Index of Pesticide Products located in the Environmental Protection Agency’s handbook entitled Recognition and Management of Pesticide Poisonings, found at http://www.epa.gov), hereinafter referred to as a Notice of Arrival, prior to the arrival of the ship- ment in the United States. The Admin- istrator shall complete the Notice of
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Arrival, indicating the disposition to be made of the shipment of pesticides or devices upon its arrival in the United States, and shall return the completed Notice of Arrival to the im- porter or his agent.
(b) Chemicals imported for use other than as pesticides. Chemicals which can be used as pesticides but which are not imported for such use and are not shown on the Index of Pesticide Prod- ucts located in the Environmental Pro- tection Agency’s handbook entitled Recognition and Management of Pes- ticide Poisonings, found at http:// www.epa.gov, may be entered without the submission of the Notice of Arrival.
[T.D. 75–194, 40 FR 32321, Aug. 1, 1975, as amended at CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
§ 12.113 Arrival of shipment. (a) Notice of arrival presented. Upon
the arrival of a shipment of pesticides or devices, the importer or his agent shall present to the director of the port of entry the Notice of Arrival com- pleted by the Administrator and indi- cating the Customs action to be taken with respect to the shipment. The port director shall compare entry docu- ments for the shipment of pesticides or devices with the Notice of Arrival and notify the Administrator of any dis- crepancies.
(b) Notice of arrival not presented. When a shipment of pesticides or de- vices arrives in the United States with- out the presentation by the importer or his agent of the Notice of Arrival completed by the Administrator, the shipment shall be detained by the di- rector of the importer’s risk and ex- pense until the completed Notice of Ar- rival is presented or until other dis- position is ordered by the Adminis- trator, but not to exceed a period of 30 days, or such extended period, not in excess of 30 additional days, as the port director for good cause may specially authorize. An application of the im- porter or his agent requesting an ex- tension of the initial 30-day period shall be filed with the director of the port of entry.
(c) Disposition of pesticides or devices remaining under detention. A shipment that remains detained or undisposed of due to failure of presentment of a com-
pleted Notice of Arrival or nonreceipt of an order of the Administrator as to its disposition shall be treated as a pro- hibited importation. The port director shall cause the destruction of any such shipment not exported by the con- signee within 90 days after the expira- tion of the detention period specified or authorized pursuant to § 12.113(b).
[T.D. 75–194, 40 FR 32322, Aug. 1, 1975]
§ 12.114 Release or refusal of delivery.
If the completed Notice of Arrival di- rects the port director to release the shipment of pesticides or devices, the shipment shall be released to the con- signee. If the completed Notice of Ar- rival directs the port director to refuse delivery of the shipment, the shipment shall be refused delivery and treated as a prohibited importation. The port di- rector shall cause the destruction of any shipment refused delivery and not exported by the consignee within 90 days after notice of such refusal of de- livery.
[T.D. 75–194, 40 FR 32322, Aug. 1, 1975]
§ 12.115 Release under bond.
If the completed Notice of Arrival so directs, a shipment of pesticides or de- vices shall be detained at the import- er’s expense by the port director pend- ing an examination by the Adminis- trator to determine whether the ship- ment complies with the requirements of the Act. However, a shipment de- tained for examination may be released to the consignee prior to a determina- tion by the Administrator provided a bond is furnished on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, for the return of the merchandise to Customs custody. The bond shall be in an amount deemed appropriate by the port director. When a shipment of pes- ticides or devices is released to the consignee under bond, the shipment shall not be used or otherwise disposed of until the determination is made by the Administrator.
[T.D. 75–194, 40 FR 32322, Aug. 1, 1975, as amended by T.D. 84–213, 49 FR 41168, Oct. 19, 1984]
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§ 12.116 Samples. Upon the request of the Adminis-
trator, either on the completed Notice of Arrival or otherwise, the port direc- tor shall deliver to the Administrator samples of the imported pesticides or devices, together with all accom- panying labels, circulars, and adver- tising matter pertaining to such mer- chandise. The port director shall notify the consignee, in writing, that the samples of imported pesticides or de- vices, together with all accompanying labels, circulars, and advertising mat- ter pertaining to such merchandise have been delivered to the Adminis- trator.
[T.D. 75–194, 40 FR 32322, Aug. 1, 1975]
§ 12.117 Procedure after examination. (a) Merchandise complying with the
Act. If, upon examination or analysis of a sample from a shipment of pesticides or devices, the sample is found to be in compliance with the Act, the Adminis- trator shall notify the port director that the shipment may be released to the consignee.
(b) Merchandise not complying with the Act. If, upon examination or analysis of a sample from a shipment of pesticides or devices, the sample is found to be in violation of the Act, the consignee shall be notified promptly by the Ad- ministrator of the nature of the viola- tion and be given a reasonable time, not to exceed 20 days, to submit writ- ten material or, at his option, to ap- pear before the Administrator and in- troduce testimony, to show cause why the shipment should not be destroyed or refused entry. If, after consideration of all the evidence presented, it is still the opinion of the Administrator that the merchandise is in violation of the Act, the Administrator shall notify the port director of this opinion and the port director shall either (1) refuse de- livery to the consignee, or (2) if the shipment has been released to the con- signee under bond, demand redelivery of the shipment under the terms of the bond. If the merchandise is not redeliv- ered within 30 days after the date of de- mand by the port director, the port di- rector shall issue a demand for liq- uidated damages in the full amount of the bond if it is a single entry bond, or
if a continuous bond is used, the amount that would have been taken under a single entry bond. The port di- rector shall cause the destruction of any merchandise refused delivery to the consignee, or redelivered by the consignee pursuant to a demand there- for, and not exported by the consignee within 90 days after notice of such re- fusal of delivery or within 90 days after such redelivery, as applicable.
[T.D. 75–194, 40 FR 32322, Aug. 1, 1975, as amended by T.D. 84–213, 49 FR 41168, Oct. 19, 1984]
CHEMICAL SUBSTANCES IN BULK AND AS PART OF MIXTURES AND ARTICLES
SOURCE: Sections 12.118 through 12.127 issued by T.D. 83–158, 48 FR 34739, Aug. 1, 1983, unless otherwise noted.
§ 12.118 Toxic Substances Control Act.
The importation into the customs territory of the United States of a chemical substance in bulk or as part of a mixture, or article containing a chemical substance or mixture, is gov- erned by the Toxic Substances Control Act (‘‘TSCA’’) (15 U.S.C. 2601 et seq.), and by regulations issued under the au- thority of section 13(b), TSCA (15 U.S.C. 2612(b)) by the Secretary of the Treasury in consultation with the Ad- ministrator, Environmental Protection Agency (‘‘EPA’’).
§ 12.119 Scope.
Sections 12.120 through 12.127 apply to the importation into the customs territory of the United States of chem- ical substances in bulk and as part of mixtures under TSCA. Sections 12.120 through 12.127 also apply to articles containing a chemical substance or mixture if so required by the Adminis- trator by specific rule under TSCA.
§ 12.120 Definitions.
Except as otherwise provided below, the terms used in §§ 12.121 through 12.127 have the meanings set forth for those terms in TSCA.
(a) Article—(1) Article means a manu- factured item which:
(i) Is formed to a specific shape or de- sign during manufacture,
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(ii) Has end use functions dependent in whole or in part upon its shape or design during the end use, and
(iii) Has either no change of chemical composition during its end use or only those changes of composition which have no commercial purpose separate from that of the article and that may occur as described in § 12.120(a)(2); ex- cept that fluids and particles are not considered articles regardless of shape or design.
(2) The allowable changes of composi- tion, referred to in § 12.120(a)(1), are those which result from a chemical re- action that occurs upon the end use of other chemical substances, mixtures, or articles such as adhesives, paints, miscellaneous cleaners or other house- hold products, fuels and fuel additives, water softening and treatment agents, photographic films, batteries, matches, and safety flares in which the chemical substance manufactured upon end use of the article is not itself manufac- tured for distribution in commerce or for use as an intermediate.
(b) Chemical substance in bulk form means a chemical substance (other than as part of a mixture or article) in containers used for purposes of trans- portation or containment, provided that the chemical substance is in- tended to be removed from the con- tainer and has an end use or commer- cial purpose separate from the con- tainer.
§ 12.121 Reporting requirements. (a) Chemical substances in bulk or mix-
tures—(1) Certification required. The im- porter of a chemical substance im- ported in bulk or as part of a mixture, or the authorized agent of such an im- porter, must certify either that the chemical shipment is subject to TSCA and complies with all applicable rules and orders thereunder, or that the chemical shipment is not subject to TSCA, by signing and filing with Cus- toms one of the following statements:
I certify that all chemical substances in this shipment comply with all applicable rules or orders under TSCA and that I am not offering a chemical substance for entry in violation of TSCA or any applicable rule or order thereunder.
I certify that all chemical substances in this shipment are not subject to TSCA.
(2) Filing of certification—(i) General. The appropriate certification required under paragraph (a)(1) of this section must be filed with the director of the port of entry before release of the ship- ment and, except when a blanket cer- tification is on file as provided for in paragraph (a)(2)(ii) of this section, must appear as a typed or stamped statement:
(A) On an appropriate entry docu- ment or commercial invoice or on an attachment to that entry document or invoice; or
(B) In the event of release under a special permit for an immediate deliv- ery as provided for in § 142.21 of this chapter or in the case of an entry as provided for in § 142.3 of this chapter, on the commercial invoice or on an at- tachment to that invoice.
(ii) Blanket certifications. A port direc- tor may, in his discretion, approve an importer’s use of a ‘‘blanket’’ certifi- cation, in lieu of filing a separate cer- tification for each chemical shipment, for any chemical shipment that con- forms to a product description provided to Customs pursuant to paragraph (a)(2)(ii)(A) of this section. In approv- ing the use of a ‘‘blanket’’ certifi- cation, the port director should con- sider the reliability of the importer and Customs broker. Approval and use of a ‘‘blanket’’ certification will be subject to the following conditions:
(A) A ‘‘blanket’’ certification must be filed with the port director on the letterhead of the certifying firm, must list the products covered by name and Harmonized Tariff Schedule of the United States subheading number, must identify the foreign supplier by name and address, and must be signed by an authorized person;
(B) A ‘‘blanket’’ certification will re- main valid, and may be used, for 1 year from the date of approval unless the approval is revoked earlier for cause by the port director. Separate ‘‘blanket’’ certifications must be approved and used for chemical substances that are subject to TSCA and for chemical sub- stances that are not subject to TSCA; and
(C) An importer for whom the use of a ‘‘blanket’’ certification has been ap- proved must include, on the invoice used in connection with the entry and
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entry summary procedures for each shipment covered by the ‘‘blanket’’ certification, a statement referring to the ‘‘blanket’’ certification and incor- porating it by reference. This state- ment need not be signed.
(b) Chemical substances or mixtures as parts of articles. Each importer of a chemical substance or mixture as part of an article must comply with the cer- tification requirements set forth in paragraph (a) of this section only if re- quired to do so by a rule or order issued under TSCA.
(c) Facsimile signatures. The certifi- cation statements required under para- graph (a)(1) of this section may be signed by means of an authorized fac- simile signature.
[T.D. 00–13, 65 FR 10704, Feb. 29, 2000]
§ 12.122 Detention of certain ship- ments.
(a) The director of the port of arrival shall detain, at the importer’s risk and expense, shipments of chemical sub- stances, mixtures, or articles:
(1) Which have been banned from the customs territory of the United States by a rule or order issued under section 5 or 6 of TSCA (15 U.S.C. 2604 or 2605) or
(2) Which have been ordered seized because of imminent hazards as speci- fied under section 7 of TSCA (15 U.S.C. 2606).
(b) The director of the port of entry shall detain shipments of chemical sub- stances, mixtures, or articles at the importer’s risk and expense, in the fol- lowing situations:
(1) Whenever the Administrator has reasonable grounds to believe that the shipment is not in compliance with TSCA and notifies the port director to detain the shipment.
(2) Whenever the port director has reasonable grounds to believe that the shipment is not in compliance with TSCA; or
(3) Whenever the importer fails to certify compliance with TSCA as re- quired by § 12.121.
(c) Upon detention of a shipment, the port director shall give prompt notice to the Administrator and the importer. The notice shall include the reasons for detention.
(d) A detained shipment shall not be held in the custody of the port director
for more than 48 hours after the date of detention. Thereafter, the shipment shall be promptly turned over to the Administrator for storage or disposi- tion as provided for in §§ 12.127 and 127.28(i), unless previously released to the importer under bond as provided in § 12.123(b). Notice of intent to abandon the shipment by the importer shall constitute a waiver of all time periods specified in parts 12 and 127.
§ 12.123 Procedure after detention.
(a) Submission of written documenta- tion. If a shipment is detained by a port director under § 12.122, the importer may submit written documentation to the Administrator with a copy to the port director within 20 days from the date of notice of detention, to show cause why the shipment should not be refused entry. If an importer submits that documentation, the Administrator shall allow or deny entry of the ship- ment within 10 days of receipt of the documentation, and in any case shall allow or deny entry of the shipment within 30 days of the date of notice of detention.
(b) Release under Bond. The port di- rector may release to the importer a shipment detained for any of the rea- sons given in § 12.122 when the port di- rector has reasonable grounds to be- lieve that the shipment may be brought into compliance, or when the port director deems it appropriate under § 141.66 of this chapter. Any such release shall be conditioned upon fur- nishing a bond on CBP Form 301, con- taining the conditions set forth in § 113.62 of this chapter for the return of the shipment to CBP custody. If a ship- ment of chemical substance, mixture, or article is released to the importer under bond, the shipment shall be held intact and shall not be used or other- wise disposed of until the Adminis- trator makes a final determination on entry as provided for in paragraph (c) of this section.
(c) Determination by the Administrator. After consideration of the available evidence and within 30 days from the notice of detention, the Administrator shall notify the port director and the importer of his decision either to per- mit or refuse entry of the shipment. If
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the Administrator finds that the ship- ment is in compliance with TSCA, the port director shall release the ship- ment to the importer. If the Adminis- trator finds that the shipment is not in compliance, the port director shall:
(1) Refuse delivery to the importer, giving reasons for such refusal, or
(2) If the shipment has been released on bond, demand its redelivery under the terms of the bond, giving reasons for such demand. If the merchandise is not redelivered within 30 days from the date of the redelivery notice, the port director shall assess liquidated dam- ages in the full amount of the bond.
[T.D. 83–158, 48 FR 34739, Aug. 1, 1983, as amended at CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
§ 12.124 Time limitations and exten- sions.
(a) Time limitations. The importer of a shipment of chemical substances, mix- tures, or articles which has been de- tained under § 12.122 shall bring the shipment into compliance with TSCA or export the shipment from the cus- toms territory of the United States within 90 days after notice of detention or 30 days of demand for redelivery, whichever comes first.
(b) Time extensions. The port director, upon notification by the Adminis- trator, may grant an extension of not more than 30 days if, due to delays caused by the Environmental Protec- tion Agency or the Customs Service:
(1) The importer is unable, for good cause shown, to bring a shipment into compliance with the Act within the re- quired time period; or
(2) The importer is unable to export the shipment from the customs terri- tory of the United States within the re- quired time period.
§ 12.125 Notice of exportation.
Whenever the Administrator directs the port director to refuse entry under § 12.123 and the importer exports the non-complying shipment within the 30 day period of notice of refusal of entry or within 90 days of demand for redeliv- ery, the importer shall give written no- tice of the fact of exportation to the Administrator and the port director. The importer shall include the fol-
lowing information in the notice of ex- portation:
(a) The name and address of the ex- porter or his agent;
(b) A description of the chemical sub- stances, mixtures, or articles exported;
(c) The destination (country); (d) The port of arrival at the destina-
tion; (e) The carrier; (f) The date of exportation; and (g) The bill of lading or the air way
bill number.
§ 12.126 Notice of abandonment. If the importer intends to abandon
the shipment after receiving notice of refusal of entry, the importer shall present a written notice of intent to abandon to the port director and the Administrator. Notification under this section is a waiver of any right to ex- port the merchandise. The importer shall remain liable for any expense in- curred in the storage and/or disposal of abandoned merchandise.
§ 12.127 Decision to store or dispose. (a) A shipment detained under § 12.122
shall be considered to be unclaimed or abandoned and shall be turned over to the Administrator for storage or dis- position as provided for in § 127.28(i) of this chapter if the importer has not brought the shipment into compliance with TSCA and has not exported the shipment within time limitations or extensions specified according to § 12.124. The importer shall remain lia- ble for any expenses in the storage and/ or disposal of abandoned merchandise.
SOFTWOOD LUMBER
§ 12.140 Entry of softwood lumber products from Canada.
The requirements set forth in this section are applicable for as long as the Softwood Lumber Agreement (SLA 2006), entered into on September 12, 2006, by the Governments of the United States and Canada, remains in effect.
(a) Definitions. The following defini- tions apply for purposes of this section:
(1) British Columbia Coast. ‘‘British Columbia Coast’’ means the Coastal Forest Regions as defined by the exist- ing Forest Regions and Districts Regula- tion, B.C. Reg. 123/2003.
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(2) British Columbia Interior. ‘‘British Columbia Interior’’ means the North- ern Interior Forest Region and the Southern Interior Forest Region as de- fined by the existing Forest Regions and Districts Regulation, B.C. Reg. 123/2003.
(3) Date of shipment. ‘‘Date of ship- ment’’ means, in the case of products exported by rail, the date when the railcar that contains the products is assembled to form part of a train for export; otherwise, the date when the products are loaded aboard a convey- ance for export. If a shipment is trans- shipped through a Canadian reload cen- ter or other inventory location, the date of shipment is the date the mer- chandise leaves the reload center or other inventory location for final ship- ment to the United States.
(4) Maritimes. ‘‘Maritimes’’ means New Brunswick, Canada; Nova Scotia, Canada; Prince Edward Island, Canada; and Newfoundland and Labrador, Can- ada.
(5) Region. ‘‘Region’’ means British Columbia Coast or British Columbia Interior as defined in paragraphs (a)(1) and (2) of this section; Alberta, Canada; Manitoba, Canada; Maritimes, Canada; Northwest Territories, Canada; Nunavut Territory, Canada; Ontario, Canada; Saskatchewan, Canada; Que- bec, Canada; or Yukon Territory, Can- ada.
(6) Region of Origin. ‘‘Region of Ori- gin’’ means the Region where the facil- ity at which the softwood lumber prod- uct was first produced into such a prod- uct is located, regardless of whether that product was further processed (for example, by planing or kiln drying) or was transformed from one softwood lumber product into another such prod- uct (for example, a remanufactured product) in another Region, with the following exceptions:
(i) The Region of Origin of softwood lumber products first produced in the Maritime Provinces from logs origi- nating in a non-Maritime Region will be the Region, as defined above, where the logs originated; and
(ii) The Region of Origin of softwood lumber products first produced in the Yukon, Northwest Territories or Nunavut (the ‘Territories’) from logs originating outside the Territories will
be the Region where the logs origi- nated.
(7) SLA 2006. ‘‘SLA 2006’’ or ‘‘SLA’’ means the Softwood Lumber Agree- ment entered into between the Govern- ments of Canada and the United States on September 12, 2006.
(8) Softwood lumber products. ‘‘Softwood lumber products’’ mean those products described as covered by the SLA 2006 in Annex 1A of the Agree- ment.
(b) Reporting requirements. In the case of softwood lumber products from Can- ada listed in Annex 1A of the SLA 2006 as covered by the scope of the Agree- ment, the following information must be included on the electronic entry summary documentation (CBP Form 7501) for each entry (except for entries of softwood lumber products whose Re- gion of Origin is the Maritimes, in which case entry summary documenta- tion must be submitted in paper as set forth in paragraph (c) of this section):
(1) Region of Origin. The letter code representing a softwood lumber prod- uct’s Canadian Region of Origin, as posted on the Administrative Message Board in the Automated Commercial System. (For example, the letter code ‘‘XD’’ designates softwood lumber products whose Region of Origin is British Columbia Coast. The letter code ‘‘XE’’ designates softwood lumber products whose Region of Origin is British Columbia Interior.)
(2) Export Permit Number—(i) Export Permit Number issued by Canada at time of filing entry summary documentation. The 8-digit Canadian-issued Export Permit Number, preceded by one of the following letter codes:
(A) The letter code assigned to rep- resent the date of shipment (i.e., ‘‘A’’ represents January, ‘‘B’’ represents February, ‘‘C’’ represents March, etc.), except for those softwood lumber prod- ucts produced by a company listed in Annex 10 of the SLA 2006 or whose Re- gion of Origin is the Maritimes, Yukon, Northwest Territories or Nunavut;
(B) The letter code ‘‘X’’, which des- ignates a company listed in Annex 10 of the SLA 2006; or
(C) The letter code assigned to rep- resent the Maritimes (code M); Yukon (code Y); Northwest Territories (code W); or Nunavut (code N), for softwood
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lumber products originating in these regions.
(ii) No Export Permit Number required due to softwood lumber product’s exempt status. Where an Export Permit Num- ber is not required because the im- ported softwood lumber product is spe- cifically identified as exempt from SLA 2006 export measures pursuant to Annex 1A of the Agreement, notwith- standing the fact that the exempt goods are classifiable in residual Har- monized Tariff Schedule of the United States provisions otherwise listed as covered by the SLA 2006, the alpha-nu- meric code ‘‘P88888888’’ must be used in the Export Permit Number data entry field on the CBP Form 7501.
(c) Original Maritime Certificate of Ori- gin. Where a softwood lumber product’s Region of Origin is the Maritimes, the original paper copy of the Certificate of Origin issued by the Maritime Lum- ber Bureau must be submitted to CBP and the entry summary documentation for each such entry must be in paper and not electronic. The Certificate of Origin must specifically state that the corresponding CBP entries are for softwood lumber products first pro- duced in the Maritimes from logs origi- nating in the Maritimes or State of Maine.
(d) Recordkeeping. Importers must re- tain copies of export permits, certifi- cates of origin, and any other substan- tiating documentation issued by the Canadian Government pursuant to the recordkeeping requirements set forth in part 163 of title 19 to the CFR.
[CBP Dec. 08–10, 73 FR 20784, Apr. 17, 2008]
§ 12.142 Entry of softwood lumber and softwood lumber products from any country into the United States.
(a) In general. This section, pursuant to the ‘‘Softwood Lumber Act of 2008’’ (‘‘the Act’’) (Title VIII of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.)), prescribes entry requirements applicable to certain imports of softwood lumber and softwood lumber products exported from any country into the United States.
(b) Softwood lumber products covered. The softwood lumber and softwood lumber products covered by this sec- tion are those products described in section 804(a) of Title VIII of the Tariff
Act of 1930, as amended (19 U.S.C. 1202 et seq.).
(c) Entry requirements for shipments subject to the importer declaration pro- gram. For each shipment of softwood lumber or softwood lumber products described in section 804(a) of Title VIII to the Tariff Act of 1930, as amended, (19 U.S.C. 1202 et seq.) that is entered or withdrawn from warehouse for con- sumption, in the customs territory of the United States, the following infor- mation must be electronically sub- mitted to CBP (except that, pursuant to 19 CFR 12.140(c), entries of softwood lumber and softwood lumber products for which a Certificate of Origin has been issued from Canada’s Maritime Lumber Bureau must be submitted to CBP in paper):
(1) Export price. Each importer must provide the export price, expressed in U.S. dollars, on the entry summary in the designated space provided on the CBP Form 7501.
(i) For purposes of this section, ‘‘ex- port price’’ means one of the following:
(A) In the case of softwood lumber or a softwood lumber product that has un- dergone only primary processing, the value that would be determined F.O.B. at the facility where the product un- derwent the last primary processing before export.
(B) In the case of softwood lumber or a softwood lumber product that under- went the last remanufacturing before export by a manufacturer who does not hold tenure rights provided by the country of export, did not acquire standing timber directly from the country of export, and is not related to the person who holds tenure rights or acquired standing timber directly from the country of export, the value that would be determined F.O.B. at the fa- cility where the softwood lumber or softwood lumber product underwent the last primary processing.
(C) In the case of softwood lumber or a softwood lumber product that under- went the last remanufacturing before export by a manufacturer who holds tenure rights provided by the country of export, acquired standing timber di- rectly from the country of export, or is related to the person who holds tenure rights or acquired standing timber di- rectly from the country of export, the
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value that would be determined F.O.B. at the facility where the softwood lum- ber or softwood lumber product under- went the last processing before export.
(D) In the case of softwood lumber or a softwood lumber product described in paragraphs (c)(1)(i)(A), (B) or (C) of this section for which an F.O.B. value can- not be determined, the export price will be the market price for the iden- tical softwood lumber or softwood lum- ber product sold in an arm’s-length transaction in the country of export at approximately the same time as the exported softwood lumber or softwood lumber product. The market price will be determined in the following order of preference:
(1) The market price for the softwood lumber or softwood lumber product sold at substantially the same level of trade (as described in 19 CFR 351.412(c)) as the exported softwood lumber or softwood lumber product but in dif- ferent quantities.
(2) The market price for the softwood lumber or softwood lumber product sold at a different level of trade (as de- fined in 19 CFR 351.412(c)) than the ex- ported softwood lumber or softwood lumber product but in similar quan- tities.
(3) The market price for the softwood lumber or softwood lumber product sold at a different level of trade (as de- fined in 19 CFR 351.412(c)) than the ex- ported softwood lumber or softwood lumber product and in different quan- tities.
(ii) For purposes of paragraph (c)(1) of this section, the following defini- tions apply:
(A) F.O.B. The term ‘‘F.O.B.’’ means a value consisting of all charges pay- able by a purchaser, including those charges incurred in the placement of merchandise on board of a conveyance for shipment, but does not include the actual shipping charges or any applica- ble export charges.
(B) Related to the person. The term ‘‘related to the person’’ means:
(1) A person bears a relationship to such other person described in section 152(a) of the Internal Revenue Code of 1986;
(2) A person bears a relationship to such person described in section 267(b) of the Internal Revenue Code of 1986,
except that ‘‘5 percent’’ will be sub- stituted for ‘‘50 percent’’ each place it appears;
(3) The person and such other person are part of a controlled group of cor- porations, as that term is defined in section 1563(a) of the Internal Revenue Code of 1986, except that ‘‘5 percent’’ will be substituted for ‘‘80 percent’’ each place it appears;
(4) The person is an officer or direc- tor of such other person; or
(5) The person is the employer of such other person.
(C) Tenure rights. The term ‘‘tenure rights’’ means rights to harvest timber from public land granted by the coun- try of export.
(2) Estimated export charge. (i) Each importer must provide the estimated export charge, if any, to be collected by the country (including any political subdivision of the country) from which the softwood lumber or softwood lum- ber product was exported pursuant to an international agreement entered into by that country and the United States as calculated by applying the percentage determined and published by the Under Secretary for Inter- national Trade of the Department of Commerce to the export price. Any ap- plicable estimated export charge must be expressed in U.S. dollars and re- ported on the entry summary in the designated space.
(ii) For purposes of this paragraph, the terms ‘‘estimated export charge’’ or ‘‘export charge’’ mean any tax, charge, or other fee collected by the country from which softwood lumber or a softwood lumber product, as de- scribed in section 804(a) within Title VIII of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.), as amended, is exported pursuant to an international agree- ment entered into by that country and the United States.
(3) Importer declaration. (i) Each im- porter, except as provided in paragraph (c)(3)(ii) of this section, must provide a softwood lumber declaration on the electronic entry summary by entering the letter code ‘‘Y’’ in the first space of the field designated for the estimated export charge data.
(ii) Each importer of softwood lum- ber and softwood lumber products for which a Certificate of Origin has been
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issued from Canada’s Maritime Lumber Bureau must provide a softwood lum- ber declaration on the paper entry summary by entering the letter code ‘‘Y’’ in the first space of the field des- ignated for the estimated export charge. See 19 CFR 12.140(c),
(iii) The letter code ‘‘Y’’ represents the importer’s declaration to CBP that:
(A) The importer has made appro- priate inquiry, including seeking ap- propriate documentation from the ex- porter and consulting the determina- tions published by the Under Secretary for International Trade of the Depart- ment of Commerce pursuant to section 805(b) of Title VIII of the Tariff Act of 1930, as amended (19 U.S.C. 1202 et seq.); and
(B) To the best of the person’s knowl- edge and belief:
(1) The export price provided is deter- mined in accordance with the defini- tion set forth in section 802(5) of Title VIII of the Tariff Act of 1930, as amend- ed (19 U.S.C. 1202 et seq.);
(2) The export price provided is con- sistent with the export price provided on the export permit, if any, granted by the country of export; and
(3) The exporter has paid, or com- mitted to pay, all export charges due in accordance with the volume, export price, and export charge rate or rates, if any, as calculated under an inter- national agreement entered into by the country of export and the United States and consistent with the export charge determinations published by the Under Secretary for International Trade of the Department of Commerce.
(iv) Any substantiating documenta- tion that supports an importer’s softwood lumber declaration is subject to the recordkeeping provisions set forth in part 163 of title 19 to the CFR.
(d) Entry requirements for home pack- ages and kits—(1) Declaration and re- quired documentation. Home packages and kits as described in section 804(c)(7)(A)(i) through (iv) of the Title VIII of the Tariff Act of 1930, as amend- ed (19 U.S.C. 1202 et seq.) are not subject to the entry requirements set forth in paragraph (c) of this section. However, the importer is required to make a dec- laration pursuant to section 804(c)(7)(B) and is required to retain and produce
upon demand by CBP, the following documentation:
(i) A copy of the appropriate home design, plan, or blueprint matching the customs entry in the United States.
(ii) A purchase contract from a re- tailer of home kits or packages signed by a customer not affiliated with the importer.
(iii) A listing of all parts in the pack- age or kit being entered into the United States that conforms to the home design, plan, or blueprint for which such parts are being imported.
(iv) If a single contract involved mul- tiple entries, an identification of all the items required to be listed under paragraph (d)(1)(iii) of this section that are included in each individual ship- ment.
(2) Records and retention. There is no requirement to present physical copies of the softwood lumber home packages and kits documentation to CBP at the time of filing the entry summary; how- ever copies must be maintained in ac- cordance with the applicable record- keeping provisions set forth in part 163 of title 19 to the CFR.
(e) Other softwood lumber entry re- quirements. Other entry requirements may be applicable to certain imports of softwood lumber or softwood lumber from Canada. Importers are advised to refer to § 12.140 (19 CFR 12.140) of this chapter for information regarding ap- plicability and entry requirements.
[CBP Dec. 08–32, 73 FR 49937, Aug. 25, 2008 as amended at CBP Dec. 10–27, 75 FR 52453, Au- gust 26, 2010]
STEEL PRODUCTS
§ 12.145 Entry or admission of certain steel products.
In any case in which a steel import license number is required to be ob- tained under regulations promulgated by the U.S. Department of Commerce, that license number must be included:
(a) On the entry summary, Customs Form 7501, or on an electronic equiva- lent, at the time of filing, in the case of merchandise entered, or withdrawn from warehouse for consumption, in the customs territory of the United States; or
(b) On Customs Form 214, at the time of filing under part 146 of this chapter,
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in the case of merchandise admitted into a foreign trade zone.
[T.D. 03–13, 68 FR 13839, Mar. 21, 2003]
MERCHANDISE SUBJECT TO ECONOMIC SANCTIONS
§ 12.150 Merchandise prohibited by economic sanctions; detention; sei- zure or other disposition; blocked property.
(a) Generally. Merchandise from cer- tain countries designated by the Presi- dent as constituting a threat to the na- tional security, foreign policy, or econ- omy of the United States shall be de- tained until the question of its release, seizure, or other disposition has been determined under law and regulations issued by the Treasury Department’s Office of Foreign Assets Control (OFAC) (31 CFR Chapter V).
(b) Seizure. When an unlicensed im- portation of merchandise subject to OFAC’s regulations is determined to be prohibited, no entry for any purpose shall be permitted and, unless the im- mediate reexportation or other disposi- tion of such merchandise under Cus- toms supervision has previously been authorized by OFAC, the merchandise shall be seized.
(c) Licenses. OFAC’s regulations may authorize OFAC to issue licenses on a case-by-case basis authorizing the im- portation of otherwise prohibited mer- chandise under certain conditions. If such a license is issued subsequent to the attempted entry and seizure of the merchandise, importation shall be con- ditioned upon the importer:
(1) Agreeing in writing to hold the Government harmless, and
(2) Paying any storage and other Cus- toms fees, costs, or expenses, as well as any mitigated forfeiture amount or monetary penalty imposed or assessed by Customs or OFAC, or both.
(d) Blocked property. Merchandise which constitutes property in which the government or any national of cer- tain designated countries has an inter- est may be blocked (frozen) pursuant to OFAC’s regulations and may not be transferred, sold, or otherwise disposed of without an OFAC license.
(e) Additional information. For further information concerning importing mer- chandise prohibited under economic
sanctions programs currently in effect, the Office of Foreign Assets Control of the Department of the Treasury should be contacted. The address of that office is 1500 Pennsylvania Ave., NW., Annex 2nd Floor, Washington, DC 20220.
[T.D. 96–42, 61 FR 24889, May 17, 1996]
§ 12.151 Prohibitions and conditions on importations of jadeite, rubies, and articles of jewelry containing jadeite or rubies.
(a) General. The importation into the United States of jadeite, rubies, and ar- ticles of jewelry containing jadeite or rubies is prohibited or conditioned as described in this section pursuant to the Tom Lantos Block Burmese JADE Act of 2008 (Pub. L. 110–286). For pur- poses of this section, the following definitions apply:
(1) Jadeite. ‘‘Jadeite’’ means any jadeite classifiable under heading 7103 of the Harmonized Tariff Schedule of the United States (HTSUS);
(2) Rubies. ‘‘Rubies’’ means any ru- bies classifiable under heading 7103 of the HTSUS;
(3) Articles of jewelry containing jadeite or rubies. ‘‘Articles of jewelry con- taining jadeite or rubies’’ means any article of jewelry classifiable under heading 7113 of the HTSUS that con- tains jadeite or rubies, or any article of jadeite or rubies classifiable under heading 7116 of the HTSUS; and
(4) United States. ‘‘United States’’ means the 50 states, the District of Co- lumbia, and any commonwealth, terri- tory, or possession of the United States.
(b) Prohibited Articles. The following articles are prohibited from importa- tion into the United States (see 31 CFR part 537):
(1) Jadeite mined or extracted from Burma;
(2) Rubies mined or extracted from Burma; and
(3) Articles of jewelry containing jadeite or rubies mined or extracted from Burma.
(c) Regulated Articles. Jadeite, rubies, or articles of jewelry containing jadeite or rubies may not be imported into the United States unless the im- porter certifies (see paragraph (d) of this section) that those jadeite or ru- bies were mined or extracted from a
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country other than Burma and pos- sesses the documents described in para- graph (e) of this section.
(d) Certification of importer. Pursuant to Additional U.S. Note 4(a), Chapter 71, HTSUS, if an importer enters any good (or withdraws any good from warehouse for consumption) under heading 7103, 7113, or 7116 of the HTSUS, the presentation of the entry serves as a certification by the im- porter that any jadeite or rubies con- tained in such good were not mined or extracted from Burma.
(e) Certification of exporter. If an im- porter enters (or withdraws from ware- house for consumption) jadeite, rubies, or jewelry containing jadeite or rubies:
(1) The importer must have in his possession a certification from the ex- porter (exporter certification) certi- fying that the jadeite or rubies were not mined or extracted from Burma, with verifiable evidence from the ex- porter that tracks the jadeite or ru- bies: In rough form, from mine to ex- portation; and for finished jadeite, pol- ished rubies, and articles of jewelry containing jadeite or rubies, to the place of final finishing; and
(2) The importer must maintain, for a period of not less than 5 years from the date of entry of the good, a full record of, in the form of reports or otherwise, complete information relating to any act or transaction related to the pur- chase, manufacture, or shipment of the good.
(f) Requirement to provide information. An importer who enters any good (or withdraws any good from warehouse for consumption) under heading 7103, 7113, or 7116 of the HTSUS must provide all documentation to support the cer- tifications described in paragraphs (d) and (e) of this section to CBP upon re- quest or be subject to recordkeeping penalties under part 163 of the chapter.
(g) Inapplicability. This section does not apply to the following articles:
(1) Jadeite, rubies, and articles of jewelry containing jadeite or rubies that are reimported into the United States after having been previously ex- ported from the United States, includ- ing those that accompanied an indi- vidual outside the United States for personal use, if they are reimported into the United States by the same per-
son who exported them, without having been advanced in value or improved in condition by any process or other means while outside the United States; and
(2) Jadeite or rubies mined or ex- tracted from a country other than Burma, and articles of jewelry con- taining jadeite or rubies mined or ex- tracted from a country other than Burma that are imported by or on be- half of an individual for personal use and accompanying an individual upon entry into the United States.
[CBP Dec. 09–01, 74 FR 2846, Jan. 16, 2009]
PART 18—TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT
GENERAL PROVISIONS
Sec. 18.1 Carriers; application to bond. 18.2 Receipt by carrier; manifest. 18.3 Transshipment; transfer by bonded
cartman. 18.4 Sealing conveyances and compart-
ments; labeling packages; warning cards. 18.4a Containers or road vehicles accepted
for transport under customs seal; re- quirements.
18.5 Diversion. 18.6 Short shipments; shortages; entry and
allowance. 18.7 Lading for exportation, verification of. 18.8 Liability for shortage, irregular deliv-
ery, or nondelivery; penalties. 18.9 Examination by inspectors of trunk
line associations or agents of the Surface Transportation Board.
18.10 Kinds of entry. 18.10a Special manifest.
IMMEDIATE TRANSPORTATION WITHOUT APPRAISEMENT
18.11 Entry; classes of goods for which entry is authorized; form used.
18.12 Entry at port of destination.
SHIPMENT OF BAGGAGE IN BOND
18.13 Procedure; manifest. 18.14 Shipment of baggage in transit to for-
eign countries.
MERCHANDISE IN TRANSIT THROUGH THE UNITED STATES TO FOREIGN COUNTRIES
18.20 Entry procedure; forwarding. 18.21 Restricted and prohibited merchan-
dise. 18.22 Procedure at port of exit. 18.23 Change of destination; change of
entry.
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18.24 Retention of goods on dock; splitting of shipments.
EXPORTATION FROM CUSTOMS CUSTODY OF MERCHANDISE UNENTERED OR COVERED BY AN UNLIQUIDATED CONSUMPTION ENTRY, OR MERCHANDISE DENIED ADMISSION BY THE GOVERNMENT
18.25 Direct exportation. 18.26 Indirect exportation. 18.27 Port marks.
MERCHANDISE TRANSPORTED BY PIPELINE
18.31 Pipeline transportation of bonded mer- chandise.
MERCHANDISE NOT OTHERWISE SUBJECT TO CUSTOMS CONTROL EXPORTED UNDER COVER OF A TIR CARNET
18.41 Applicability. 18.42 Direct exportation. 18.43 Indirect exportation. 18.44 Abandonment of exportation. 18.45 Supervision of exportation.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Sched- ule of the United States), 1551, 1552, 1553, 1623, 1624.
Section 18.3 also issued under 19 U.S.C. 1565;
Section 18.4 also issued under 19 U.S.C. 1322, 1323;
Section 18.7 also issued under 19 U.S.C. 1557; 1646a;
Section 18.10 also issued under 19 U.S.C. 1557;
Section 18.11 also issued under 19 U.S.C. 1484;
Section 18.12 also issued under 19 U.S.C. 1448, 1484, 1490;
Section 18.13 also issued under 19 U.S.C. 1498(a);
Section 18.14 also issued under 19 U.S.C. 1498.
Section 18.31 also issued under 19 U.S.C. 1553a.
SOURCE: 28 FR 14755, Dec. 31, 1963, unless otherwise noted.
GENERAL PROVISIONS
§ 18.1 Carriers; application to bond. (a)(1) Merchandise to be transported
from one port to another in the United States in bond, except as provided for in paragraph (b) of this section, shall be delivered to a common carrier, con- tract carrier, freight forwarder, or pri- vate carrier bonded for that purpose, but such merchandise delivered to a common carrier, contract carrier, or freight forwarder may be transported with the use of facilities of other bond-
ed or nonbonded carriers. For the pur- poses of this section, the term ‘‘com- mon carrier’’ means a common carrier of merchandise owning or operating a railroad, steamship, pipeline, or other transportation line or route. Only ves- sels entitled to engage in the coastwise trade (see § 4.80 of this chapter) shall be entitled to transport merchandise under this section.
(2) Merchandise to be transported from one port to another in the United States under cover of a TIR carnet (see part 114 of this chapter), except mer- chandise not otherwise subject to Cus- toms control, as provided in §§ 18.41 through 18.45, shall be delivered to a common carrier or contract carrier bonded for that purpose, but the mer- chandise thereafter may be transported with the use of other bonded or non- bonded common or contract carriers. The TIR carnet shall be responsible for liability incurred in the carriage of merchandise under the carnet, and the carrier’s bond shall be responsible as provided in § 114.22(d) of this chapter.
(3) Merchandise to be transported from one port to another in the United States under cover of an A.T.A. or TECRO/AIT carnet (see part 114 of this chapter) shall be delivered to a com- mon carrier or contract carrier bonded for that purpose, but the merchandise thereafter may be transported with the use of other bonded or nonbonded com- mon or contract carriers. The A.T.A. or TECRO/AIT carnet shall be responsible for liability incurred in the carriage of merchandise under the carnet, and the carrier’s bond shall be responsible as provided in § 114.22(d) of this chapter.
(b) Pursuant to Public Resolution 108, of June 19, 1936, (19 U.S.C. 1551, 1551a) and subject to compliance with all other applicable provisions of this part, the port director, upon the re- quest of the party in interest, may per- mit merchandise entered and examined for Customs purposes to be transported in bond between the ports named in the resolution by bonded cartmen or lightermen duly qualified in accord- ance with the provisions of part 112 of this chapter, if the port director is sat- isfied that the transportation of such
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merchandise in this manner will not endanger the revenue.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71–70, 36 FR 4485, Mar. 6, 1971; T.D. 71– 263, 36 FR 20291, Oct. 20, 1971; T.D. 73–140, 38 FR 13550, May 23, 1973; T.D. 78–99, 43 FR 13061, Mar. 29, 1978; T.D. 82–116, 47 FR 27261, June 24, 1982; T.D. 82–145, 47 FR 35478, Aug. 16, 1982; 47 FR 39478, Sept. 8, 1982; T.D. 84–149, 49 FR 28698, July 16, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 96–18, 61 FR 6779, Feb. 22, 1996; T.D. 98–10, 63 FR 4167, Jan. 28, 1998]
§ 18.2 Receipt by carrier; manifest. (a)(1) Merchandise other than from
warehouse or foreign trade zone delivered to bonded carrier. Except as set forth in paragraphs (a)(2) and (a)(3) of this sec- tion, within 5 working days after pres- entation of an entry for merchandise to be transported in-bond, the forwarding carrier shall take receipt of the mer- chandise if no other entry is filed. If the forwarding carrier fails to take re- ceipt of the merchandise within the prescribed period, the transportation entry shall be canceled and the mer- chandise shall be treated as unclaimed as of the date of original arrival.
(2) When merchandise is delivered to a bonded carrier for transportation in- bond, the merchandise shall be laden on the conveyance under supervision of a Customs officer unless—
(i) The transporting conveyance is not to be sealed with Customs seals, or
(ii) The lading inspector accepts the check of the carrier as to the merchan- dise laden. The carrier’s receipt shall be given immediately to the lading in- spector on the Customs in-bond docu- ment (the appropriate Customs Form 7512, or the carnet) covering the mer- chandise. In the case of a carnet, the receipt shall be given on the appro- priate vouchers in the following form:
Received the cargo listed herein for deliv- ery to Customs at the indicated port of des- tination or exportation, or for direct expor- tation. Name of Carrier (or Exporter) lllllll Attorney-in-fact or Agent of Carrier (or Ex-
porter) llllllllllllllllll llllllllllllllllllllllll
Date lllllllllllllllllllll
(3) Merchandise delivered from ware- house. When merchandise is delivered from a warehouse to a bonded carrier for transportation in bond, supervision of lading shall be accomplished in ac-
cordance with the procedure set forth in § 19.6(b) of this chapter.
(4) Merchandise delivered from foreign trade zone. When merchandise is deliv- ered from a foreign trade zone to a bonded carrier for transportation in bond, supervision of lading will be ac- complished in accordance with the pro- cedure set forth in § 146.71(a) of this chapter.
(b) A Customs in-bond document, containing a description of the mer- chandise, shall be prepared by the car- rier or any of the parties named in § 18.11(b), whenever merchandise is being transported in bond. The Cus- toms in-bond document thus prepared shall then be signed by the carrier or any of the parties named in § 18.11(b). All copies of the in-bond document shall be signed by the importing car- rier or his agent and the in-bond car- rier or his agent to indicate the quan- tity delivered for transportation in bond. When there is no discrepancy be- tween the quantity manifested by the importing carrier and the quantity de- livered to the in-bond carrier, the port director may authorize waiving the sig- nature of the parties in interest as to delivered quantities. Quantities of goods transported in bond from a Cus- toms bonded warehouse shall be ac- counted for under the procedures set forth in § 19.6 of this chapter. Except as prescribed in subpart D of part 123 of this chapter, relating to merchandise in transit through the United States between ports in contiguous foreign territory, a separate set shall be pre- pared for each entry and, if the con- signment is contained in more than one conveyance, a separate set shall be prepared for each conveyance.
(c)(1) After the merchandise has been laden and the in-bond carrier or his agent has receipted the in-bond docu- ment, Customs Form 7512 (in dupli- cate), together with any related carnet shall be delivered as a manifest to the conductor, master, or person in charge to accompany the merchandise to its port of destination or exportation. If more than one conveyance is used to transport the merchandise, two copies of Customs Form 7512 shall accompany each conveyance as a manifest of the merchandise transported by that con- veyance. A TIR carnet (see § 18.3(b))
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shall not be used if more than one con- veyance is required.
(2) Except transit air cargo provided for in § 122.118 of this chapter, bonded merchandise destined to a final port of destination in the United States, or for export from the United States, shall be delivered to Customs at the port of des- tination or exportation within 30 days after the date of receipt by the for- warding carrier at the port of origin, if transported on land. If the merchandise is transported on board a vessel en- gaged in the United States coastwise trade, delivery to Customs at the port of destination or exportation shall be within 60 days after the date of receipt by the forwarding carrier at the port of origin. Failure to deliver the merchan- dise within the prescribed period shall constitute an irregular delivery and the initial bonded carrier shall be sub- ject to applicable penalties (see § 18.8).
(d) Promptly, but no more than 2 working days after the arrival of any portion of the in-bond shipment at the port of destination, the delivering car- rier shall surrender the in-bond mani- fest (the in-bond document any related carnet) to the port director as notice of arrival of the merchandise. If the in- bond manifest is lost in transit, the in- bond carrier shall report the arrival of the merchandise within the prescribed period and shall be responsible for ob- taining copies of the original in-bond manifest. Failure to surrender the in- bond manifest or report the arrival of bonded merchandise within the pre- scribed period shall constitute an irreg- ular delivery and the initial bonded carrier shall be subject to applicable penalties (see § 18.8).
[T.D. 71–70, 36 FR 4485, Mar. 6, 1971, as amend- ed by T.D. 81–243, 46 FR 45602, Sept. 14, 1981; T.D. 82–204, 47 FR 49368, Nov. 1, 1982; T.D. 84– 212, 49 FR 39046, Oct. 3, 1984; T.D. 86–16, 51 FR 5063, Feb. 11, 1986; T.D. 87–75, 52 FR 20067, May 29, 1987; T.D. 88–12, 53 FR 9315, Mar. 22, 1988; T.D. 98–74, 63 FR 51288, Sept. 25, 1998; T.D. 00–22, 65 FR 16517, Mar. 29, 2000]
§ 18.3 Transshipment; transfer by bonded cartmen.
(a) When bonded merchandise in one conveyance is to be transshipped under Customs supervision to another single conveyance while en route to the port of destination or exportation, the in- bond document which accompanied the
merchandise shall be presented to the port director at the place of trans- shipment for execution of a certificate of transfer thereon. The in-bond docu- ment shall be returned to the carrier to accompany the merchandise to the port of destination or exportation. Ex- cept as provided in paragraph (c) of this section, merchandise covered by a TIR carnet shall not be transshipped if the transshipment involves the unlad- ing of the merchandise from a con- tainer or road vehicle.
(b) When bonded merchandise, other than merchandise covered by a TIR carnet, is to be transshipped to more than one conveyance, the carrier or any of the parties named in § 18.11(b) shall prepare for each such conveyance two additional copies of the Customs Form 7512 which accompanied the mer- chandise to the place of transshipment. The Customs Form 7512 which accom- panied the shipment to the place of transshipment shall be presented to the port director there. The Customs officer supervising the transshipment shall execute a certificate of transfer on all copies of the Customs Form 7512. The original copies of the Customs Form 7512 shall be delivered to the con- ductor, master, or person in charge of the first conveyance. Two additional copies of the Customs Form 7512 shall be delivered to the person in charge of each additional conveyance in which the merchandise is forwarded for deliv- ery to the director of the port of des- tination or exportation.
(c) Merchandise covered by a TIR carnet may be transshipped in a case involving the unlading of the merchan- dise from a container or road vehicle only if the transshipment is neces- sitated by casualty en route. In the event of transshipment, a TIR ap- proved container or road vehicle shall be used if available. If the trans- shipment takes place under Customs supervision, the Customs officer shall excute a certificate of transfer on the appropriate TIR carnet voucher.
(d) If it becomes necessary at any point in transit to remove the Customs seals from a conveyance or container containing bonded merchandise for the purpose of transferring its contents to another conveyance or container, or to gain access to the shipment because of
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casualty or for other good reason, and it cannot be done under Customs super- vision because of the element of time involved or because there is no Cus- toms officer stationed at such point, a responsible agent of the carrier may re- move the seals, supervise the transfer or handling of the merchandise, seal the conveyance or container in which the shipment goes forward, and make appropriate notation of his action on the conductor’s or master’s copy of the manifest, or the outside back cover of the TIR carnet, including the date, se- rial numbers of the new seals applied, and the reason therefor. This author- ization shall not apply in any case not involving a real emergency.
(e) All transfers to or from the con- veyance or warehouse of merchandise undergoing transportation in bond shall be made under the provisions of part 125 of this chapter and at the ex- pense of the parties in interest, unless the bond of the carrier on Customs Form 301, containing the bond condi- tions set forth in § 113.63 of this chapter or a TIR carnet is liable for the safe- keeping and delivery of the merchan- dise while it is being transferred.
[T.D. 71–70, 36 FR 4486, Mar. 6, 1971, as amend- ed by T.D. 82–204, 47 FR 49368, Nov. 1, 1982; T.D. 84–212, 49 FR 39046, Oct. 3, 1984; T.D. 84– 213, 49 FR 41168, Oct. 19, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 00–22, 65 FR 16517, Mar. 29, 2000]
§ 18.4 Sealing conveyances and com- partments; labeling packages; warn- ing cards.
(a)(1) Conveyances or compartments in which carload lots of bonded mer- chandise are transported shall be sealed with commercial shipper seals, Customs red in-bond seals, or other ac- cepted seals. High-security Customs seals will be required on carload or containerized shipments where the Customs officer reviewing the in-bond entry determines it is required to ade- quately protect the revenue and pre- vent violations of Customs laws. The bonded carrier will provide Customs with the necessary seals. When the compartment or conveyance cannot be effectively sealed, as in the case of merchandise shipped in open cars or barges, or on the decks of vessels, or when it is known that any seals would
necessarily be removed outside the ju- risdiction of the United States for the purpose of discharging or taking on cargo, or when it is known that the breaking of the seals will be necessary to ventilate the hatches, or in other similar circumstances, such sealings may be waived with the consent of the carrier and an appropriate notation of such waiver shall be made on the mani- fest. The Commissioner of Customs may authorize the waiver of sealing of conveyances or compartments in which bonded merchandise is transported in other cases when in his opinion the sealing thereof is unnecessary to pro- tect the revenue or to prevent viola- tions of the Customs laws and regula- tions.
(2) The port director shall cause a Customs seal to be affixed to a con- tainer or road vehicle which is being used to transport merchandise under cover of a TIR carnet unless the con- tainer or road vehicle bears a customs seal (domestic or foreign). The port di- rector shall likewise cause a Customs seal or label to be affixed to heavy or bulky goods being so transported. If, however, he has reason to believe that there is a discrepancy between the merchandise listed on the Goods Mani- fest of the carnet and the merchandise which is to be transported, he shall cause a Customs seal or label to be af- fixed only when the listing of the mer- chandise in the carnet and a physical inventory agree.
(b) Ports at which the facilities are insufficient to maintain continuous customs supervision over vessels arriv- ing with bonded cargo while the bonded merchandise is not under Customs seals shall permit the vessels to pro- ceed to destination without further sealing and notation to this effect shall be made on the manifest.
(c)(1) Merchandise not under bond may be transported in sealed convey- ances or compartments containing bonded goods when destined for the same place or places beyond, but not when intended for intermediate places.
(2) Merchandise moving under cover of a carnet may not be consolidated with other merchandise.
(d) The seals to be used in sealing conveyances, compartments, or pack- ages must meet Customs standards
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provided in § 24.13a of this chapter, and may be obtained in accordance with § 24.13 of this chapter.
(e) Except as otherwise provided for in this paragraph, packages shipped in bond or by a carrier permitted to transport articles under the last sen- tence of section 553 of the tariff act, as amended, shall be corded and sealed or, in lieu thereof, the carrier shall furnish and attach to each such package a warning label on bright red paper, not less than 5 by 8 inches in size, con- taining the following legend in black or white lettering of a conspicuous size:
U.S. CUSTOMS
This package is under bond and must be delivered intact to the Customs officer in charge at the port of destination or to such other place as authorized by Customs.
WARNING. Two years’ imprisonment, $5,000 fine, or both, is the penalty for unlawful re- moval of this package or any of its contents.
Transportation Entry No. llll; From llllTo llll; This package to be deliv- ered to Customs at llllllll (If other than port of destination)
A carrier at its option may omit the last three lines of the above legend from the warning label but if not omit- ted the information called for must be filled in. If the size of the package ren- ders the use of a 5 × 8 inch warning label impracticable because of lack of space, a 3×5 inch label may be used. A high visibility, pressure-sensitive warning label, whether as a continuous series in tape form or otherwise, but not less than 11⁄2 by 3 inches in size, may be used on any size package. Such cording and sealing or labeling of the packages so shipped is not required ei- ther when the packages are trans- ported in a conveyance or compart- ment sealed with Customs seals, or when the sealing of the conveyance or compartment in which the packages are transported is waived under para- graph (a) or (b) of this section. When the packages are shipped in a railroad car the sealing of which is practicable but which is not sealed because mer- chandise not being transported in bond is or may be carried in the same car, the packages being transported in bond shall be corded and sealed or labeled.
(f) The warning label, when used, shall be pasted securely on the package under Customs supervision as close as practicable to the mark or number on the package. Additional labels may be required by the port director in such places on the package as he shall speci- fy in any case where he is of the opin- ion that one is not adequate.
(g) When, in the case of crates and similar packages, it is impossible to at- tach the warning labels by pasting, bright red shipping tags of convenient size, large enough to be conspicuous and containing the same legend as the labels, shall be used in lieu of labels. Such tags shall be wired or otherwise securely fastened to the packages in such manner as not to injure the mer- chandise.
(h) Bonded carriers shall furnish and securely attach to the side doors of cars, to the doors of compartments, and on vehicles carrying bonded mer- chandise which are secured with Cus- toms seals, bright red cards, 8 by 101⁄4 inches in size, which shall be attached near such seals and on which shall be printed in large, clear, black letters the following:
United States Customs. Two years’ impris- onment, or $5,000 fine, or both, is the penalty for the unlawful removal of United States Customs seals on this car, vehicle, or com- partment. United States Customs officers only are authorized to break these seals.
Car or vessel llllllllllllllll Number or name llllllllllllll From llllllllllllllllllll To llllllllllllllllllllll
NOTICE: The merchandise in this car, vehi- cle, or compartment shall be delivered to the chief officer of the customs at llll.
(i) Removal of seals. Except as pro- vided in § 18.3(d) and § 19.6(e) of this chapter, seals affixed under this sec- tion shall be removed only under Cus- toms supervision.
[28 FR 14755, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 18.4, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
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19 CFR Ch. I (4–1–12 Edition)§ 18.4a
§ 18.4a Containers or road vehicles ac- cepted for transport under customs seal; requirements.
(a)(1) Containers covered by the Cus- toms Convention on Containers shall be accepted for transport under Cus- toms seal (see § 18.4) if (i) durably marked with the name and address of the owner, particulars of tare, and identification marks and numbers, and (ii) constructed and equipped as out- lined in Annex 1 to the Customs Con- vention on Containers, as evidenced by an accompanying unexpired certificate of approval in the form prescribed by Annex 2 to that Convention or by a metal plate showing design type ap- proval by a competent authority.
(2) Containers carrying merchandise covered by a TIR carnet shall be ac- cepted for transport under Customs seal (see § 18.4) if (i) durably marked with the name and address of the owner, particulars of tare, and identi- fication marks and numbers, (ii) con- structed and equipped as outlined in Annex 6 to the TIR Convention, as evi- denced by an accompanying unexpired certificate of approval in the form pre- scribed by Annex 8 to that Convention, or by a metal plate showing design type approval by a competent author- ity, and (iii) if the container or road vehicle hauling the container has af- fixed to it a rectangular plate bearing the letters ‘‘TIR’’ in accordance with Article 31 of the TIR Convention.
(b) Road vehicles carrying merchan- dise covered by a TIR carnet shall be accepted for transport under Customs seal if (1) durably marked with the name and address of the owner, par- ticulars of tare, and identification marks and numbers, (2) constructed and equipped as outlined in Annex 3 to the TIR Convention, as evidenced by an accompanying unexpired certificate of approval in the form prescribed by Annex 5 to that Convention, or by a metal plate showing design type ap- proval by a competent authority, and (3) if the road vehicle has affixed to it a rectangular plate bearing the letters ‘‘TIR’’ in accordance with Article 31 of the TIR Convention.
(c) The port director may refuse to accept for transport under Customs seal a container or road vehicle bearing evidence of approval if, in his opinion,
the container or road vehicle no longer meets the requirements of the applica- ble Convention.
(d) Containers or road vehicles which are not approved under the provisions of a Customs Convention may be ac- cepted for transport under Customs seal only if the port director at the port of origin is satisfied that (1) the container or road vehicle can be effec- tively sealed and (2) no goods can be re- moved from or introduced into the con- tainer or road vehicle without obvious damage to it or without breaking the seal. A container or road vehicle so ac- cepted shall not carry merchandise covered by a TIR carnet.
[T.D. 71–70, 36 FR 4486, Mar. 6, 1971, as amend- ed by T.D. 89–1, 53 FR 51254, Dec. 21, 1988]
§ 18.5 Diversion.
(a) Merchandise forwarded under any class of transportation entry may be diverted to any port other than the port named in the entry at the option of the consignee or agent. Except as provided for in paragraphs (c), (d), (e), (f), and (g) of this section, prior appli- cation or approval of such diversion is not required.
(b) The director of the port to which merchandise is diverted may permit merchandise in transit under bond under any class of transportation entry to be entered at his port for consump- tion, warehouse, exportation, further transportation in bond, or under any provisions of the tariff laws.
(c) When merchandise which has been delivered to the director of the port of original destination or port of diver- sion under any class of transportation entry is to be forwarded to another port or returned to the port of origin, a new transportation entry shall be re- quired. If the merchandise is moving under cover of a carnet, the carnet may be accepted as a transportation entry.
(d) If it is desired to split a shipment at a port of destination and to enter a portion for consumption or warehouse and forward the balance in bond, or to divert the entire shipment or a part thereof to more than one port, the di- rector of the port where diversion takes place shall complete the original transaction and shall require the filing
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of a new transportation entry or en- tries for the portion or portions for- warded. In the case, however, of mer- chandise being transported under cover of a carnet, splitting up of a shipment shall not be permitted.
(e) The diversion of shipments in bond which are subject on importation to restriction or prohibition under quarantines and regulations of the Ag- ricultural Research Service of the De- partment of Agriculture shall be al- lowed only upon written permission or under regulations issued by the agency concerned.
(f) The diversion of in-bond ship- ments, which contain textiles or tex- tile products subject to section 204, Ag- ricultural Act of 1956, as amended (7 U.S.C. 1854), during the in-bond move- ment shall be allowed only upon the prior written permission of the director of the port of origin.
(g) For in-bond shipments which, at the time of transmission of the Im- porter Security Filing as required by § 149.2 of this chapter, are intended to be entered as an immediate expor- tation (IE) or transportation and ex- portation (T&E) shipment, permission to divert the in-bond movement to a port other than the listed port of des- tination or export or to change the in- bond entry into a consumption entry must be obtained from the port direc- tor of the port of origin. Such permis- sion would only be granted upon re- ceipt by Customs and Border Protec- tion (CBP) of a complete Importer Se- curity Filing as required by part 149 of this chapter.
[T.D. 71–70, 36 FR 4487, Mar. 6, 1971, as amend- ed by T.D. 82–116, 47 FR 27261, June 24, 1982; T.D. 84–207, 49 FR 38247, Sept. 28, 1984; T.D. 85–38, 50 FR 8723, Mar. 5, 1985; CBP Dec. 08–46, 73 FR 71780, Nov. 25, 2008]
§ 18.6 Short shipments; shortages; entry and allowance.
(a) When there has been a short ship- ment and the short-shipped packages are subsequently received, they may be forwarded only under a new transpor- tation entry referenced to the original entry.
(b) When there is a shortage of one or more packages, or nondelivery of an entire shipment, or delivery to unau- thorized locations, or delivery to the
consignee without the permission of Customs, the port director may de- mand return of the merchandise to Customs custody. The demand shall be made no later than 30 days after the shortage, delivery, or nondelivery is discovered by Customs. The demand for the return of the merchandise to Cus- toms custody shall be made on the bonded carrier, cartman, or lighterman identified on the Transportation Entry and Manifest of Goods Subject to Cus- toms Inspection and Permit, Customs Form 7512, the Transit Air Cargo Mani- fest (TACM), or other appropriate doc- ument. The demand for the return of the merchandise shall be made on Cus- toms Form 4647, Notice of Redelivery, or other appropriate form or by letter. A copy of the demand with the date of mailing or delivery noted thereon, shall be retained by the port director and made part of the in-bond entry record. Entry of the merchandise may be accepted if the merchandise can be recovered intact without any of the packages having been opened. In such cases, any shortage from the invoice quantity shall be presumed to have oc- curred while the merchandise was in the possession of the bonded carrier.
(c) If the merchandise cannot be re- covered intact, as specified above, entry shall be accepted in accordance with § 141.4 of this chapter for the full manifested quantity unless a lesser amount is otherwise permitted in ac- cordance with subpart A of part 158. Except as provided in paragraph (d) of this section, if the merchandise is not returned to Customs custody within 30 days of the date of mailing or date of delivery of the demand for redelivery, there shall be sent to the initial bonded carrier a demand for liquidated dam- ages on Customs Form 5955–A, in the case of nondelivery of an entire ship- ment or on Customs Form 5931, in the case of a partial shortage.
(d) If merchandise covered by a carnet cannot be recovered intact, as specified in paragraph (b) of this sec- tion, entry shall not be accepted; there shall be sent to the appropriate guar- anteeing association a demand for liq- uidated damages, duties, and taxes as prescribed in § 18.8(e); and, if appro- priate, there shall also be sent to the initial bonded carrier a demand for any
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19 CFR Ch. I (4–1–12 Edition)§ 18.7
excess, as provided in § 114.22(d) of this chapter. Demands shall be made on the forms specified in paragraph (c) of this section.
(e) An allowance in duty on merchan- dise reported short at destination, in- cluding merchandise found by the ap- praising officer to be damaged and worthless, and animals and birds found by the discharging officer to be dead on arrival at destination, shall be made in the liquidation of the entry.
(f) In the case of shipments arriving in the United States by rail or seatrain which are forwarded under Customs in- bond seals under the provisions of sub- part D of part 123 of this chapter, and § 18.11, or § 18.20, a notation shall be made by the carrier or shipper on the in-bond manifest, Customs Form 7512, to show whether the shipment was transferred to the car designated in the manifest or whether it was laden in the car in the foreign country, which shall be named.
[T.D. 71–70, 36 FR 4487, Mar. 6, 1971, as amend- ed by T.D. 82–116, 47 FR 27261, June 24, 1982; T.D. 82–158, 47 FR 37881, Aug. 27, 1982; T.D. 84– 213, 49 FR 41168, Oct. 19, 1984; T.D. 85–180, 50 FR 42517, Oct. 21, 1985; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 18.7 Lading for exportation, verification of.
(a) Promptly, but no more than 2 working days, after arrival of any por- tion of the in-bond shipment at the port of exportation, the delivering car- rier shall surrender the in-bond mani- fest (the in-bond document and any re- lated carnet) to the port director as no- tice of arrival of the merchandise. If the in-bond manifest is lost in transit, the in-bond carrier shall report the ar- rival of the merchandise within the prescribed period and shall be respon- sible for obtaining copies of the origi- nal in-bond manifest. Failure to sur- render the in-bond manifest or report the arrival of bonded merchandise within the prescribed period shall con- stitute an irregular delivery and the initial bonded carrier shall be subject to applicable penalties (see § 18.8).
(b) The port director shall require only such supervision of the lading for exportation of merchandise covered by an entry or withdrawal for exportation or for transportation and exportation
as is reasonably necessary to satisfy him that the merchandise has been laden on the exporting conveyance.
(c) Whenever the circumstances war- rant, and occasionally in any event, port directors shall request the Office of Enforcement to check export entries and withdrawals against the records of the exporting carriers. Such check or verification shall include an examina- tion of the carrier’s records of claims and settlement of export freight charges and any other records which may relate to the transaction. The ex- porting carrier shall maintain these records for 5 years from the date of ex- portation of the merchandise.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 79–159, 44 FR 31967, June 4, 1979; T.D. 84– 212, 49 FR 39047, Oct. 3, 1984; T.D. 91–77, 56 FR 46114, Sept. 10, 1991; T.D. 00–22, 65 FR 16517, Mar. 29, 2000; CBP Dec. 08-25, 73 FR 40725, July 16, 2008]
§ 18.8 Liability for shortage, irregular delivery, or nondelivery; penalties.
(a) The initial bonded carrier shall be responsible for shortage, irregular de- livery, or nondelivery at the port of destination or exportation of bonded merchandise received by it for car- riage. An acceptable proof of proper de- livery of bonded merchandise to Cus- toms at the port of destination or ex- portation is a properly receipted copy of the in-bond document (the appro- priate Customs Form 7512 or 7520, or the carnet). When sealing is waived, any loss found to exist at the port of destination or exportation shall be pre- sumed to have occurred while the mer- chandise was in the possession of the carrier, unless conclusive evidence to the contrary is produced.
(b) Carriers shall be liable for pay- ment of liquidated damages under the carriers bond for any shortage, failure to deliver, or irregular delivery, as pro- vided in such bond.
(c) In addition to the penalties de- scribed in paragraph (b) of this section, the carrier shall pay any internal-rev- enue taxes, duties, or other taxes ac- cruing to the United States on the missing merchandise, together with all costs, charges, and expenses caused by the failure to make the required trans- portation, report, and delivery.
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(d) In any case in which liquidated damages are imposed in accordance with this section and the Fines, Pen- alties, and Forfeitures Officer is satis- fied by evidence submitted to him with a petition for relief filed in accordance with the provisions of part 172 of this chapter that any violation of the terms and conditions of the bond occurred without any intent to evade any law or regulation, the Fines, Penalties, and Forfeitures Officer, in accordance with delegated authority, may cancel such claim upon the payment of any lesser amount or without the payment of any amount as may be deemed appropriate under the law and in view of the cir- cumstances.
(e)(1) The domestic guaranteeing as- sociation shall be jointly and severally liable with the initial bonded carrier for duties and taxes accruing to the U.S., and any other charges imposed, in lieu thereof, as the result of any short- age, irregular delivery, or nondelivery at the port of destination or port of exit of merchandise covered by a TIR carnet. The liability of the domestic guaranteeing association is limited to $50,000 per TIR carnet for duties, taxes, and sums collected in lieu thereof. Pen- alties imposed as liquidated damages on the initial bonded carrier, and sums assessed the guaranteeing association in lieu of duties and taxes for any shortage, irregular delivery, or non- delivery shall be in accordance with this section. If a TIR carnet has not been discharged or has been discharged subject to a reservation, the guaran- teeing association shall be notified within 1 year of the date upon which the carnet is taken on charge, includ- ing time for receipt of the notification, except that if the discharge shall have been obtained improperly or fraudu- lently the period shall be 2 years. How- ever, in cases which become the subject of legal proceedings during the above- mentioned period, no claim for pay- ment shall be made more than 1 year after the date when the decision of the court becomes enforceable.
(2) Within 3 months from the date de- mand for payment is made by the port director as provided by § 18.6(d), the guaranteeing association shall pay the amount claimed, except that if the amount claimed exceeds the liability of
the guaranteeing association under the carnet (see § 114.22(d) of this chapter), the carrier shall pay the excess. The amount paid shall be refunded if, with- in a period of 1 year from the date on which the claim for payment was made, it is established to the satisfac- tion of the Commissioner of Customs that no irregularity occurred. The Fines, Penalties, and Forfeitures Offi- cer may cancel liquidated damages as- sessed against the guaranteeing asso- ciation to the extent authorized by paragraph (d) of this section.
(3) The domestic guaranteeing asso- ciation shall be jointly and severally liable with the initial bonded carrier for pecuniary penalties, liquidated damages, duties, and taxes accruing to the United States and any other charges imposed as the result of any shortage, irregular delivery, or nondelitery at the port of destination or port of exit of merchandise covered by an A.T.A. or TECRO/AIT carnet. However, the liability of the guaran- teeing association shall not exceed the amount of the import duties by more than 10 percent. If an A.T.A. or TECRO/ AIT carnet is unconditionally dis- charged with respect to certain goods, the guaranteeing association will no longer be liable on the carnet with re- spect to those goods unless it is subse- quently discovered that the discharge of the carnet was obtained fraudulently or improperly or that there has been a breach of the conditions of temporary admission or of transit. No claim for payment shall be made more than one year following the date of expiration of the validity of the carnet. The guaran- teeing association shall be allowed a period of six months from the date of any claim by the port director in which to furnish proof of the reexportation of the goods or of any other proper dis- charge of the A.T.A. or TECRO/AIT carnet. If such proof is not furnished within the time specified, the guranteeing association shall either de- posit or provisionally pay the sums. The deposit or payment shall become final three months after the date of the deposit or payment, during which time the guaranteeing association may still furnish proof of the reexportation of
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19 CFR Ch. I (4–1–12 Edition)§ 18.9
the goods to recover the sums depos- ited or paid.
[28 FR 14755, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 18.8, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 18.9 Examination by inspectors of trunk line associations or agents of the Surface Transportation Board.
(a) Upon presentation of proper cre- dentials showing the applicant to be a representative of the Trunk Line Asso- ciation, the Surface Transportation Board, the Joint Rate Inspection Bu- reau of Chicago or the Southern Weigh- ing and Inspection Bureau of Atlanta, inspectors of CBP in charge will permit such applicant to examine packages containing in-bond merchandise de- scribed in the manifest in general terms for the purpose of ascertaining whether the merchandise is properly classified under the interstate com- merce laws.
(b) The opening and examination of such packages shall be without expense to the Customs Service or the owner of the goods and shall be done in the pres- ence of a Customs officer. The contents of the cases shall not be removed or disturbed further than is necessary to ascertain the character thereof. The Customs officer shall require the pack- ages to be securely closed, and shall note on the manifest the packages so inspected, the date, and by whom in- spected.
[28 FR 14755, Dec. 31, 1963, as amended by CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004]
§ 18.10 Kinds of entry. (a) The following entries and with-
drawals may be made for merchandise to be transported in bond:
(1) Entry for immediate transpor- tation without appraisement.
(2) Warehouse or rewarehouse with- drawal for transportation.
(3) Warehouse or rewarehouse with- drawal for exportation or for transpor- tation and exportation.
(4) Entry for transportation and ex- portation.
(5) Entry for exportation. (b) The copy of each entry or with-
drawal made in any of the classes
named in paragraph (a) of this section which is retained in the office of the forwarding port director shall be signed by the party making the entry or with- drawal. In the case of shipments to the Virgin Islands (U.S.) under paragraph (a), (3), (4), or (5) of this section, one additional copy of the entry or with- drawal on Customs Form 7512 shall be filed and shall be mailed by the receiv- ing port director to the port director, Charlotte Amalie, St. Thomas, Virgin Island (U.S.). Before shipping merchan- dise in bond to another port for the purpose of warehousing or rewarehousing, the shipper should as- certain whether warehouse facilities are available at the intended port of destination.
[28 FR 14755, Dec. 21, 1963, as amended by T.D. 89–1, 53 FR 51254, Dec. 21, 1988]
§ 18.10a Special manifest. (a) General. Merchandise for which no
other type of bonded movement is ap- propriate (e.g., prematurely discharged or overcarried merchandise and other such types of movements whereby the normal transportation-in-bond proce- dures are not applicable) may be shipped in bond from the port of unlad- ing to the destination shown on the im- porting carrier’s manifest (manifested port) when authorized by the port di- rector having custody of the merchan- dise. For this purpose, Custom’s Form 7512 prepared in quadruplicate shall be used as a special manifest.
(b) Manifest procedures. (1) Written application shall be made to the port director where the merchandise is being held for permission to return it as a bonded shipment under a special manifest to the manifested port, in- cluding to the port of diversion (see section 4.33 of this chapter), when dif- ferent from the original manifested port.
(2) The application and accom- panying completed Customs Form 7512 shall identify the prematurely dis- charged or overcarried merchandise on the inward manifest of the importing carrier; and also identify the date and entry number of any entry made at the manifested port covering the merchan- dise to be returned, if known. If the port director is satisfied that the mer- chandise will be delivered to Customs
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custody at the manifest port before ex- piration of 90 days from the date of the entry identified, or 90 days from the date of the importing carrier’s arrival at the manifested port when no entry is identified, the port director may ap- prove the shipment under a special manifest.
[T.D. 83–218, 48 FR 48657, Oct. 20, 1983; 48 FR 49655, Oct. 27, 1983]
IMMEDIATE TRANSPORTATION WITHOUT APPRAISEMENT
§ 18.11 Entry; classes of goods for which entry is authorized; form used.
(a) Entry for immediate transpor- tation without appraisement may be made under section 552, Tariff Act of 1930, (1) for any merchandise, except explosives and prohibited merchandise, upon its arrival at a port of entry, or (2) for merchandise in general-order warehouse at any time within 6 months from the date of importation.
(b) Entry for immediate transpor- tation without appraisement may be made by (1) the carrier bringing the merchandise to the port of arrival, (2) the carrier who is to accept the mer- chandise under its bond or a carnet for transportation to the port of destina- tion, or (3) any person shown by the bill of lading or manifest, a certificate of the importing carrier, or by any other document satisfactory to the port director, to have a sufficient in- terest in the merchandise for that pur- pose.
(c) Before a shipment covered by an entry for immediate transportation, in- cluding a carnet, or a manifest of bag- gage shipped in bond (other than bag- gage to be forwarded in bond to a Cus- toms station—see § 18.13(a)), shall be al- lowed to be transported directly to a place of deposit outside a port of entry for examination and release as con- templated by section 484(f), Tariff Act of 1930, as amended, the consent of the director of the port of entry designated in the transportation entry or baggage manifest (or in the event of diversion under § 18.5, for the port of destination of the merchandise or baggage) must first be secured. Before consent may be given, the importer must furnish such port director with a stipulation that,
promptly upon the arrival of any part of the merchandise or baggage at the place of deposit, he will file an entry for the shipment at the port of entry designated in the transportation entry or baggage manifest (or in the event of diversion under § 18.5, at the port of destination of the merchandise or bag- gage) and will comply with the provi- sions of § 151.9 of this chapter.
(d) Carload shipments of livestock shall not be entered for immediate transportation without appraisement unless they will arrive at destination before it becomes necessary to remove the seals for the purpose of watering and feeding the animals, or unless the route be such that the removal of the seals and the watering, feeding, and re- loading of the stock may be done under Customs supervision.
(e) Entries for immediate transpor- tation without appraisement covering merchandise subject to detention or su- pervision by any Federal agency must contain a sufficient description of the merchandise to enable the representa- tive of the agency concerned to deter- mine the contents of the shipment. Such merchandise covered by quar- antines and regulations administered by the Bureau of Entomology and Plant Quarantine shall be forwarded under such entries only upon written permission of or under regulations issued by that Bureau. Entries for im- mediate transportation without ap- praisement covering textiles and tex- tile products subject to section 204, Ag- ricultural Act of 1956, as amended (7 U.S.C. 1854), must be described in such detail as to enable the port director to estimate the duties and taxes, if any, due. The port director may require evi- dence to satisfy him of the approxi- mate correctness of the value and quantity stated in the entry (e.g. De- tailed quantity description, 14 cartons, 2 dozen per carton); Detailed descrip- tion of the textiles or textile products including type of commodity and chief fiber content (e.g., men’s cotton jeans or women’s wool sweaters); Net weight of the textiles or textile products (in- cluding immediate packing but exclud- ing pallet); Total value of the textiles or textile products; Manufacturer or supplier; Country of orgin; Name(s) and address(es) of the person(s) to whom
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the textiles and textile products are consigned; Harmonized code tariff number (when available).
(f) One or more entire packages of merchandise covered by an invoice from one consignor to one consignee may be entered for consumption or warehouse at the port of first arrival, and the remainder entered for imme- diate transportation without appraise- ment, provided all the merchandise covered by the invoice is entered si- multaneously and any carnet which may cover such merchandise is dis- charged as to that merchandise.
(g) Several importations may be con- solidated in one immediate transpor- tation without appraisement entry when bills of lading or carrier’s certifi- cates name only one consignee at the port of first arrival. However, merchan- dise moving under cover of a carnet may not be consolidated with other merchandise.
(h) Either Customs Form 7512, a carnet, or an air waybill (see § 122.92 of this chapter), shall be used as a com- bined transportation entry, invoice, and manifest. If Customs Form 7512 is used, a minimum of three copies shall be required at the port of origin. The port director, however, may require ad- ditional copies of Customs Form 7512 or the Goods Manifest of the carnet for use in connection with the delivery of the merchandise to the bonded carrier. In lieu of additional copies of the Goods Manifest, the port director may accept copies of a bill of lading cov- ering the merchandise. The merchan- dise shall be described in such detail as to enable the port director to estimate the duties and taxes, if any, due. The port director may require evidence to satisfy him of the approximate correct- ness of the value or quantity stated in the entry. If a TIR carnet is used, and the duties and taxes estimated to be due exceed the maximum liability of the guaranteeing association under the carnet, the provisions of § 114.22(d) of this chapter shall apply.
(i) The value stated on the entry at the port of first arrival is not binding on the ultimate consignee making entry at the port of destination and does not relieve the importer of the ob-
ligation to show the correct value on entry.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71–70, 36 FR 4488, Mar. 6, 1971; T.D. 73– 175, 38 FR 17446, July 2, 1973; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 84–207, 49 FR 38247, Sept. 28, 1984; T.D. 85–38, 50 FR 8723, Mar. 5, 1985; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 92–82, 57 FR 38275, Aug. 24, 1992; T.D. 98–74, 63 FR 51288, Sept. 25, 1998; CBP Dec. 10–29, 75 FR 52451, Aug. 26, 2010]
§ 18.12 Entry at port of destination.
(a) Merchandise received under an immediate transportation without ap- praisement entry may be entered for transportation and exportation or for immediate transportation, or under any other form of entry, and shall be subject to all the conditions pertaining to merchandise entered at a port of first arrival if not more than 6 months have elapsed from the date of original importation. If more than 6 months have elapsed, only an entry for con- sumption shall be accepted. Such entry shall show the name of the port of first arrival, the transporting carrier, and the number of the immediate transpor- tation entry. (See § 127.2 of this chap- ter.)
(b) The right to make entry at the port of destination shall be determined in accordance with the provisions of § 141.11 of this chapter.
(c) When a portion of a shipment is entered at the port of first arrival and the remainder is entered for consump- tion or warehouse at one or more sub- sequent ports, the entry at each subse- quent port may be made on an extract of the invoice as provided for in § 141.84 of this chapter.
(d) All merchandise included in an immediate transportation without ap- praisement entry (including carnets) not entered within 15 calendar days after delivery at the port of destination shall be disposed of in accordance with the applicable procedures in § 4.37 or § 122.50 or § 123.10 of this chapter.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71–70, 36 FR 4488, Mar. 6, 1971; T.D. 73– 175, 38 FR 17446, July 2, 1973; T.D. 74–114, 39 FR 12091, Apr. 3, 1974; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–74, 63 FR 51288, Sept. 25, 1998]
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SHIPMENT OF BAGGAGE IN BOND
§ 18.13 Procedure; manifest. (a) Baggage may be forwarded in
bond to another port of entry, or to a Customs station listed in § 101.4 of this chapter, at the request of the pas- senger, the transportation company, or the agent of either, with the use of a baggage manifest described in para- graph (b) of this section without exam- ination or assessment of duty at the port or station of first arrival. For this purpose, the carrier shall furnish cards of bright red cardboard not less than 21⁄2 by 4 inches in size with the fol- lowing printed text, for attachment (by wire or cord) to the baggage:
UNITED STATES CUSTOMS
Check No. llllllllllllllllll Baggage in bond:
Carrier —————————————————— From ———————————————————
TO PORT DIRECTOR
At (destination) lllllllllllllll This baggage must be delivered by carrier
to the director of the port of destination. Failure to do so renders the carrier liable to a fine.
(b) A Customs manifest for baggage shipped in bond, Customs Form 7512, shall be prepared in triplicate for each shipment.
(c) Baggage arriving in bond or other- wise at a port on the Atlantic or Pa- cific coast, destined to a port on the opposite coast, may be laden under Customs supervision, without examina- tion and without being placed in bond, on a vessel proceeding to the opposite coast, provided the vessel will proceed to the opposite coast without stopping at any other port on the first coast.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 70–121, 35 FR 8222, May 26, 1970; T.D. 77– 241, 42 FR 54937, Oct. 12, 1977; T.D. 87–75, 52 FR 20067, May 29, 1987; T.D. 00–22, 65 FR 16517, Mar. 29, 2000]
§ 18.14 Shipment of baggage in transit to foreign countries.
The baggage of any person in transit through the United States from one foreign country to another may be shipped over a bonded route for expor- tation. Such baggage shall be shipped under the regulations prescribed in § 18.13, except that the card or poster
shall be printed on yellow paper and shall read ‘‘Baggage in bond for ex- port.’’ See § 123.64 of this chapter for the regulations applicable to baggage shipped in transit through the United States between points in Canada or Mexico.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 70–121, 35 FR 8222, May 26, 1970]
MERCHANDISE IN TRANSIT THROUGH THE UNITED STATES TO FOREIGN COUNTRIES
§ 18.20 Entry procedure; forwarding. (a) When an importation is entered
for transportation and exportation, ex- cept as provided for in subparts D, E, F and G of part 123 of this chapter (relat- ing to merchandise in transit through the U.S. between two points in contig- uous foreign territory), a carnet, three copies of an air waybill (see § 122.92 of this chapter), or four copies of Customs Form 7512 shall be required. The port director, however, may require addi- tional copies of Customs Form 7512 or the Goods Manifest of the carnet for use in connection with the delivery of the merchandise to, the bonded carrier. In lieu of additional copies of a Goods Manifest, the port director may accept copies of a bill of lading covering the merchandise. Acceptance of transpor- tation and exportation entries shall be subject to the requirements prescribed in § 18.11(b) for entry of merchandise for immediate transportation without ap- praisement.
(b) Except in respect to merchandise covered by a carnet (see § 18.1(a) (2) and (3)), in places where no bonded common carrier facilities are reasonably avail- able and merchandise is permitted to be transported otherwise than by a bonded common carrier, the port direc- tor may permit entry in accordance with the procedure outlined in para- graph (a) of this section if he is satis- fied that the revenue will not be endan- gered. A bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter in an amount equal to double the estimated duties shall be required when the port director deems such action necessary. (See § 113.55 of this chapter for can- cellation of export bonds.)
(c) The merchandise shall be for- warded in accordance with the general
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provisions for transportation in bond, §§ 18.1 through 18.8.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71–70, 36 FR 4489, Mar. 6, 1971; T.D. 74– 227, 39 FR 32015, Sept. 4, 1974; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 84–212, 49 FR 39047, Oct. 3, 1984; T.D. 84–213, 49 FR 41168, Oct. 19, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 92–82, 57 FR 38275, Aug. 24, 1992]
§ 18.21 Restricted and prohibited mer- chandise.
(a) Merchandise subject upon impor- tation to examination, disinfection, or further treatment under quarantines and Quarantine Division, Agricultural Research Service, Department of Agri- culture, shall be released for transpor- tation or exportation only upon writ- ten permission of, or under regulations issued by, that Bureau. (See §§ 12.10 to 12.15 of this chapter.)
(b) Narcotics and other articles pro- hibited admission into the commerce of the United States shall not be en- tered for transportation and expor- tation and any such merchandise of- fered for entry for that purpose shall be seized, except that exportation or transportation and exportation may be permitted upon written authority from the proper governmental agency and/or compliance with the regulations of such agency.
(c) Articles in transit manifested merely as drugs, medicines, or chemi- cals, without evidence to satisfy the port director that they are non-nar- cotic, shall be detained and subjected, at the carrier’s risk and expense, to such examination as may be necessary to satisfy the port director whether or not they are of a narcotic character. A properly verified certificate of the shipper, specifying the items in the shipment and stating whether narcotic or not, may be accepted by the port di- rector to establish the character of such a shipment.
(d) Explosives shall not be entered for transportation and/or exportation under a transportation and exportation entry, or an immediate transportation entry unless the importer has first ob- tained a license or permit from the proper governmental agency.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 84–77, 49 FR 13491, Apr. 5, 1984; T.D. 99– 27, 64 FR 13675, Mar. 22, 1999]
§ 18.22 Procedure at port of exit.
(a) If transfer is necessary, the proce- dure shall be as prescribed in § 18.3(d).
(b) Upon the arrival at the port of exit of express shipments of articles shown by the manifest, Customs Form 7512, to be baggage and to be deliver- able to the owner on board the export- ing vessel, such articles may be trans- ferred by the express company, without a permit from the port director and without the use of a transfer ticket or other Customs formality, from its ter- minal to the exporting vessel for lading under Customs supervision, if the ex- press company is bonded as a common carrier and is responsible under its bond for the delivery of the articles to the Customs officer in charge of the ex- porting vessel. The manifest shall show the name of the owner of the baggage and the name of the vessel on which he intends to sail.
§ 18.23 Change of destination; change of entry.
(a) The foreign destination of such merchandise may be changed by the parties in interest upon notice to the director of the port of exit from the United States. The director of the port of exit, in his discretion, may report the application for a change of foreign destination to the director of the port of entry.
(b) Such merchandise may be entered for consumption or warehouse or under any other form of entry. If the mer- chandise is subject on importation to quarantine and regulations adminis- tered by the Bureau of Entomology and Plant Quarantine, it shall be entered for consumption or warehouse only upon written permission of, or under regulations issued by, that Bureau. (See §§ 12.10 to 12.15 of this chapter.)
§ 18.24 Retention of goods on dock; splitting of shipments.
(a) Upon written application of a party in interest and the written con- sent of the owner of the dock, the port director, in his discretion, may allow in-transit merchandise, including mer- chandise covered by a carnet, to re- main on the dock under the supervision of a Customs officer without extra ex- pense to the Government for a period
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not exceeding 90 days. Upon further ap- plication, additional extensions of 90 days or less, but not to exceed 1 year from the date of importation, may likewise be granted by the port direc- tor. The port director may take posses- sion of the merchandise at any time.
(b) The splitting up of a shipment for exportation shall be permitted when exportation in its entirety is not pos- sible by reason of the different destina- tions to which portions of the shipment are destined, when the exporting vessel cannot properly accommodate the en- tire quantity, or in similar cir- cumstances. In the case, however, of merchandise being transported under cover of a carnet, splitting up of a ship- ment shall not be permitted.
[T.D. 71–70, 36 FR 4489, Mar. 6, 1971, as amend- ed by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 00–57, 65 FR 53574, Sept. 5, 2000]
EXPORTATION FROM CUSTOMS CUSTODY OF MERCHANDISE UNENTERED OR COV- ERED BY AN UNLIQUIDATED CONSUMP- TION ENTRY, OR MERCHANDISE DENIED ADMISSION BY THE GOVERNMENT
§ 18.25 Direct exportation. (a) Except as otherwise provided for
in subpart F of part 145 of this chapter, relating to exportations by mail, when no entry has been made or completed for merchandise in Customs custody, or when the merchandise is covered by an unliquidated consumption entry, or when merchandise which has been en- tered in good faith is found to be pro- hibited under any law of the United States, and such merchandise is to be exported directly without transpor- tation to another port, four copies of Customs Form 7512 shall be filed. If a TIR carnet covers the merchandise which is to be exported directly with- out transportation, the carnet shall be discharged or canceled, as appropriate (see part 114 of this chapter), and four copies of Form 7512 shall be filed. The port director may require an extra copy or copies of Form 7512 to be fur- nished for use in connection with deliv- ery of the merchandise to the carrier named in the entry. If an A.T.A. carnet covers the merchandise which is to be exported directly without transpor- tation, the carnet shall be discharged by the certification of the appropriate
transportation and reexportation vouchers by Customs officers as nec- essary.
(b) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.63 of this chapter, shall be re- quired. (See also § 158.45 of this chap- ter.)
(c) If the merchandise has been land- ed or is transferred from one vessel to another and has not been entered for consumption or, in the case of goods entered for consumption and rejected, such export declaration as required by § 30.3(a)(2) of the Foreign Trade Statis- tics Regulations (15 CFR 30.3(a)(2)) shall be filed.
(d) If the merchandise is exported in the importing vessel without landing, a representative of the exporting carrier who has knowledge of the facts shall certify that the merchandise entered for exportation was not discharged dur- ing the vessel’s stay in port. A charge shall be made against the continuous bond on Customs Form 301, containing the bond conditions set forth in § 113.64 of this chapter, if on file, or if a contin- uous bond is not on file, a single entry bond containing the bond conditions set forth in § 113.64 shall be required as in the case of residue cargo for foreign ports. If the merchandise is covered by a TIR carnet, the carnet shall not be taken on charge (see § 114.22(c)(2) of this chapter).
(e) The principal on any bond filed to guarantee direct exportation shall cause the merchandise to be exported and provide such evidence of expor- tation as required by the port director under § 113.55 of this chapter within 30 days of exportation.
(f) Gunpowder and other explosive substances, the deposit of which in any public store or bonded warehouse is prohibited by law, may be entered on arrival from a foreign port for imme- diate exportation in bond by sea, but shall be transferred directly from the importing to the exporting vessel.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 68–299, 33 FR 18437, Dec. 12, 1968; T.D. 71– 70, 36 FR 4489, Mar. 6, 1971; T.D. 72–258, 37 FR 20174, Sept. 27, 1972; T.D. 73–135 38 FR 13369, May 21, 1973; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 84–213, 49 FR 41168, Oct. 19, 1984; T.D. 98–74, 63 FR 51288, Sept. 25, 1998]
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§ 18.26 Indirect exportation. (a) When merchandise of the char-
acter enumerated in § 18.25(d) is to be transported in bond to another port for exportation, it may be entered for transportation and exportation in ac- cordance with the procedure in § 18.20. Upon acceptance of the entry by Cus- toms and acceptance of the merchan- dise by the bonded carrier, the bonded carrier assumes liability for the trans- portation and exportation of the mer- chandise. In the case of merchandise prohibited entry by any Government agency, that fact shall be prominently noted on Customs Form 7512 for the in- formation of the director of the port of exportation. If the merchandise was imported under cover of a TIR carnet, the carnet shall be discharged or can- celed at the port of importation and the merchandise transported under an entry on Customs Form 7512 (see § 18.25). If merchandise has been im- ported under cover of an A.T.A. carnet to be transported in bond to another port for exportation, the appropriate transit voucher shall be accepted in lieu of Customs Forms 7512. One transit voucher shall be certified by Customs officers at the port of importation and a second transit voucher, together with the reexportation voucher, shall be cer- tified at the port of exportation.
(b) The merchandise shall be for- warded in accordance with the general provisions for transportation in bond, §§ 18.1 through 18.8.
(c) If the merchandise is to be trans- ferred after arrival at the selected port of exportation, the procedure pre- scribed in § 18.3(d) shall be followed. The provisions of §§ 18.23 and 18.24 shall also be followed in applicable cases.
(d) The bonded carrier shall cause the merchandise to be exported and provide such evidence of exportation as re- quired by the port director under § 113.55 of this chapter within 30 days of exportation.
[28 FR 14755, Dec. 31, 1963, as amended by T.D. 71–70, 36 FR 4489, Mar. 6, 1971; T.D. 82– 116, 47 FR 27262, June 24, 1982; T.D. 84–213, 49 FR 41169, Oct. 19, 1984]
§ 18.27 Port marks. Port marks may be added by author-
ity of the port director and under the supervision of a Customs officer. The
original marks and the port marks shall appear in all papers pertaining to the exportation.
MERCHANDISE TRANSPORTED BY PIPELINE
§ 18.31 Pipeline transportation of bonded merchandise.
(a) General. Merchandise may be transported by pipeline under the pro- cedures in this part, as appropriate and unless otherwise specifically provided for in this section.
(b) Bill of lading to account for mer- chandise. Unless Customs has reason- able cause to suspect fraud, Customs shall accept a bill of lading or equiva- lent document of receipt issued by the pipeline operator to the shipper and ac- cepted by the consignee to account for the quantity of merchandise trans- ported by pipeline and to maintain the identity of the merchandise.
(c) Procedures when pipeline is only carrier. When a pipeline is the only car- rier of bonded merchandise and there is no transfer to another carrier, the bill of lading or equivalent document of re- ceipt issued by the pipeline operator to the shipper shall be included with, and made a part of, the Customs in-bond document (see § 18.2(b)). If there are no discrepancies between the bill of lading or equivalent document of receipt and the other documents making up the in- bond manifest for the merchandise, and provided that Customs has no reason- able cause to suspect fraud, the bill of lading or equivalent document of re- ceipt shall be accepted by Customs at the port of destination or exportation (see §§ 18.2(d) and 18.7) as establishing the quantity and identity of the mer- chandise transported. The pipeline op- erator shall be responsible for any dis- crepancies, including shortages, irreg- ular deliveries, or nondeliveries at the port of destination or exportation (see § 18.8).
(d) Procedures when there is more than one carrier (i.e., transfer of the merchan- dise)—(1) Pipeline as initial carrier. When a pipeline is the initial carrier of bond- ed merchandise and the merchandise is transferred to another conveyance (ei- ther a different mode of transportation
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or a pipeline operated by another oper- ator), the procedures in § 18.3 and para- graph (c) of this section shall be fol- lowed, except that—
(i) When the merchandise is to be transferred to one conveyance, a copy of the bill of lading or equivalent docu- ment issued by the pipeline operator to the shipper shall be delivered to the person in charge of the conveyance for delivery, along with the in-bond docu- ment, to the appropriate Customs offi- cial at the port of destination or expor- tation; or
(ii) When the merchandise is to be transferred to more than one convey- ance, a copy of the bill of lading or equivalent document issued by the pipeline operator to the shipper shall be delivered to the person in charge of each additional conveyance, along with the two additional copies of the in- bond document, for delivery to the ap- propriate Customs official at the port of destination or exportation.
(2) Transfer to pipeline from initial car- rier other than a pipeline. When bonded merchandise initially transported by a carrier other than a pipeline is trans- ferred to a pipeline, the procedures in § 18.3 and paragraph (c) of this section shall be followed, except that the bill of lading or other equivalent document of receipt issued by the pipeline oper- ator to the shipper shall be delivered, along with the in-bond document, to the appropriate Customs officer at the port of destination or exportation.
(3) Initial carrier liable for discrep- ancies. In the case of either paragraph (d)(1) or (d)(2) of this section, the ini- tial carrier shall be responsible for any discrepancies, including shortages, ir- regular deliveries, or nondeliveries, at the port of destination or exportation (see § 18.8).
(e) Recordkeeping. The shipper, pipe- line operator, and consignee are sub- ject to the recordkeeping requirements in 19 U.S.C. 1508 and 1509, as provided for in part 162 of this chapter.
[T.D. 96–18, 61 FR 6779, Feb. 22, 1996]
MERCHANDISE NOT OTHERWISE SUBJECT TO CUSTOMS CONTROL EXPORTED UNDER COVER OF A TIR CARNET
§ 18.41 Applicability.
The provisions of §§ 18.41 through 18.45 apply only to merchandise to be exported under cover of a TIR carnet for the convenience of the U.S. ex- porter or other party in interest and do not apply to merchandise otherwise re- quired to be transported in bond under the provisions of this chapter. Mer- chandise to be exported under cover of a TIR carnet for the convenience of the U.S. exporter or other party in interest may be transported with the use of the facilities of either bonded or non- bonded carriers.
[T.D. 71–263, 36 FR 20291, Oct. 20, 1971]
§ 18.42 Direct exportation.
At the port of exportation, the con- tainer or road vehicle, the merchan- dise, and the TIR carnet shall be made available to the port director. Any re- quired export declarations shall be filed in accordance with the applicable regulations of the Bureau of the Census (15 CFR part 30) and the Office of Ex- port Control (15 CFR part 386). The port director shall examine the merchandise to the extent he believes necessary to determine that the carnet has been properly completed and shall verify that the container or road vehicle has the necessary certificate of approval or approval plate intact and is in satisfac- tory condition. After completion of any required examination and supervision of loading, the port director shall cause the container or road vehicle to be sealed with Customs seals and ascer- tain that the TIR plates are properly affixed and sealed. (See § 18.4a.) In the case of heavy or bulky goods moving under cover of a TIR carnet, the port director shall cause a Customs seal or label, as appropriate, to be affixed. He shall also remove two vouchers from the carnet, execute the appropriate counterfoils, and return the carnet to the carrier or agent to accompany the merchandise.
[T.D. 71–70, 36 FR 4489, Mar. 6, 1971]
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19 CFR Ch. I (4–1–12 Edition)§ 18.43
§ 18.43 Indirect exportation.
(a) When merchandise is to move from one U.S. port to another for ac- tual exportation at the second port, any export declarations required to be validated shall be filed in accordance with the port of origin procedure de- scribed in the applicable regulations of the Bureau of the Census and of the Of- fice of Export Control.
(b) The port director shall follow the procedure provided in § 18.42 in respect to examination of the merchandise, su- pervision of loading, sealing or label- ing, and affixing of TIR plates. He shall remove one voucher from the carnet, execute the appropriate counterfoil, and return the carnet to the carrier or agent to accompany the container or road vehicle to the port of actual ex- portation.
(c) At the port of actual exportation, the carnet and the container (or heavy or bulky goods) or road vehicle shall be presented to the port director who shall verify that seals or labels are in- tact and that there is no evidence of tampering. After verification, the port director shall remove the appropriate voucher from the carnet, execute the counterfoil, and return the carnet to the carrier or agent.
[T.D. 71–70, 36 FR 4489, Mar. 6, 1971]
§ 18.44 Abandonment of exportation.
In the event that exportation is abandoned at any time after merchan- dise has been placed under cover of a TIR carnet, the carrier or agent shall deliver the carnet to the nearest cus- toms office or to the Customs office at the port of origin for cancellation (see § 114.26(c) of this chapter). When the carnet has been canceled, the carrier or agent may remove Customs seals or la- bels and unload the container (or heavy or bulky goods) or road vehicle without customs supervision.
[T.D. 71–70, 36 FR 4489, Mar. 6, 1971]
§ 18.45 Supervision of exportation.
The provisions of §§ 18.41 through 18.44 do not require the director of the port of actual exportation to verify that merchandise moving under cover
of a TIR carnet is loaded on board the exporting carrier.
[T.D. 71–70, 36 FR 4489, Mar. 6, 1971]
PART 19—CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF MERCHANDISE THEREIN
Sec. 19.1 Classes of customs warehouses.
GENERAL PROVISIONS
19.2 Applications to bond. 19.3 Bonded warehouses; alterations; reloca-
tion; suspensions; discontinuance. 19.4 CBP and proprietor responsibility and
supervision over warehouses. 19.5 [Reserved] 19.6 Deposits, withdrawals, blanket permits
to withdraw and sealing requirements. 19.7 Expenses of labor and storage. 19.8 Examination of goods by importer;
sampling; repacking; examination of merchandise by prospective purchasers.
19.9 General order, abandoned, and seized merchandise.
19.10 Examination packages.
MANIPULATION IN BONDED WAREHOUSES AND ELSEWHERE
19.11 Manipulation in bonded warehouses and elsewhere.
ACCOUNTS
19.12 Inventory control and recordkeeping system.
MANUFACTURING WAREHOUSES
19.13 Requirements for establishment of warehouse.
19.13a Recordkeeping requirements. 19.14 Materials for use in manufacturing
warehouse. 19.15 Withdrawal for exportation of articles
manufactured in bond; waste or byprod- ucts for consumption.
19.16 [Reserved]
SMELTING AND REFINING WAREHOUSES
19.17 Application to establish warehouse; bond.
19.18 Smelting and refining; allowance for wastage; withdrawal for consumption.
19.19 Manufacturers’ records; annual state- ment.
19.20 Withdrawal of products from bonded smelting or refining warehouses.
19.21 Smelting and refining in separate es- tablishments.
19.22 Withdrawal of metal refined in part from imported crude metal and in part
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from crude metal produced from im- ported materials.
19.23 Withdrawal for exportation from one port to be credited on warehouse entry account at another port.
19.24 Theoretical transfer without physical shipment of dutiable metal.
19.25 Credit to be applied under various forms of withdrawals.
SPACE BONDED FOR THE STORAGE OF WHEAT
19.29 Sealing of bins or other bonded space. 19.30 Domestic wheat not to be allowed in
bonded space. 19.31 Bulk wheat of different classes and
grades not to be commingled in storage. 19.32 Wheat manipulation; reconditioning. 19.33 General order; transportation in bond. 19.34 Customs supervision.
DUTY-FREE STORES
19.35 Establishment of duty-free stores (Class 9 warehouses).
19.36 Requirements for duty-free store oper- ations.
19.37 Crib operations. 19.38 Supervision of exportation. 19.39 Delivery for exportation.
CONTAINER STATIONS
19.40 Establishment, relocation or alter- ation of container stations.
19.41 Movement of containerized cargo to a container station.
19.42 Application for transfer of merchan- dise.
19.43 Filing of application. 19.44 Carrier responsibility. 19.45 Transfer of merchandise, approval and
method. 19.46 Employee lists. 19.47 Security. 19.48 Suspension or revocation of the privi-
lege of operating a container station; hearings.
19.49 Entry of containerized merchandise.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Sched- ule of the United States), 1624; Section 19.1 also issued under 19 U.S.C. 1311, 1312, 1555, 1556, 1557, 1560, 1561, 1562; Section 19.6 also issued under 19 U.S.C. 1555, 1557; Section 19.7 also issued under 19 U.S.C. 1555, 1556; Section 19.11 also issued under 19 U.S.C. 1556, 1562; Section 19.15 also issued under 19 U.S.C. 1311; Sections 19.17–19.25 also issued under 19 U.S.C. 1312; Sections Sections 19.35–19.39 also issued under 19 U.S.C. 1555; Section 19.40(a) also issued under 19 U.S.C. 1450, 1499, 1623; Sections 19.41–19.43 also issued under 19 U.S.C. 1499; Section 19.44 also issued under 19 U.S.C. 1448; Section 19.45 also issued under 19 U.S.C. 1551, 1565; Section 19.48 also issued under 19 U.S.C. 1499, 1623; Section 19.49 also issued under 19 U.S.C. 1484.
SOURCE: 28 FR 14763, Dec. 31, 1963, unless otherwise noted.
§ 19.1 Classes of customs warehouses.
(a) Classifications. Customs ware- houses shall be designated according to the following classifications:
(1) Class 1. Premises that may be owned or leased by the Government, when the exigencies of the service as determined by the port director so re- quire, and used for the storage of mer- chandise undergoing examination by Customs, under seizure, or pending final release from Customs custody. Merchandise will be stored in such premises only at Customs direction and will be held under ‘‘general order.’’
(2) Class 2. Importers’ private bonded warehouses used exclusively for the storage of merchandise belonging or consigned to the proprietor thereof. A warehouse of class 4 or 5 may be bond- ed exclusively for the storage of goods imported by the proprietor thereof, in which case it shall be known as a pri- vate bonded warehouse.
(3) Class 3. Public bonded warehouses used exclusively for the storage of im- ported merchandise.
(4) Class 4. Bonded yards or sheds for the storage of heavy and bulky im- ported merchandise; stables, feeding pens, corrals, or other similar buildings or limited enclosures for the storage of imported animals; and tanks for the storage of imported liquid merchandise in bulk. If the port director deems it necessary, the yards shall be enclosed by substantial fences with entrances and exit gates capable of being secured by the proprietor’s locks. The inlets and outlets to tanks shall be secured by means of seals or the proprietor’s locks.
(5) Class 5. Bonded bins or parts of buildings or of elevators to be used for the storage of grain. The bonded por- tions shall be effectively separated from the rest of the building.
(6) Class 6. Warehouses for the manu- facture in bond, solely for exportation, of articles made in whole or in part of imported materials or of materials sub- ject to internal-revenue tax; and for the manufacture for home consumption or exportation of cigars in whole of to- bacco imported from one country.
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(7) Class 7. Warehouses bonded for smelting and refining imported metal- bearing materials for exportation or domestic consumption.
(8) Class 8. Bonded warehouses estab- lished for the purpose of cleaning, sort- ing, repacking, or otherwise changing in condition, but not manufacturing, imported merchandise, under Customs supervision and at the expense of the proprietor.
(9) Class 9. Bonded warehouse, known as ‘‘duty-free stores’’, used for selling, for use outside the Customs territory, conditionally duty-free merchandise owned or sold by the proprietor and de- livered from the Class 9 warehouse to an airport or other exit point for expor- tation by, or on behalf of, individuals departing from the Customs territory for destinations other than foreign trade zones. Pursuant to 19 U.S.C. 1555(b)(8)(C), ‘‘Customs territory’’, for purposes of duty-free stores, means the Customs territory of the U.S. as de- fined in § 101.1(e) of this chapter, and foreign trade zones (see part 146 of this chapter). All distribution warehouses used exclusively to provide individual duty-free sales locations and storage cribs with conditionally duty-free mer- chandise are also Class 9 warehouses.
(10) [Reserved] (11) Class 11. Bonded warehouses,
known as ‘‘general order warehouses,’’ established for the storage and disposi- tion exclusively of general order mer- chandise as described in § 127.1 of this chapter.
(b) Manipulation. The whole or a part of any warehouse of class 1, 2, 3, 4, 5, 6, 7, or 11 may be designated a construc- tive manipulation (class 8) warehouse when the exigencies of the service so require.
(c) General order. General order mer- chandise as described in § 127.1 of this chapter may be stored and disposed of in a class 11 warehouse or a warehouse of class 3, 4, or 5, provided the class 3, 4, or 5 warehouse has also been cer- tified by the port director as meeting the criteria for a class 11 warehouse, following an application under § 19.2. So far as such warehouses are used for the purpose of handling general order goods, they will also be considered gen- eral order (class 11) warehouses. If there is no space at a warehouse of any
of these classes available, the propri- etor of such a warehouse, with the ap- proval of the port director of the port nearest to where the warehouse is lo- cated, may rent or lease additional suitable premises for the storage of general order merchandise.
[T.D. 76–277, 41 FR 42649, Sept. 28, 1976, as amended by T.D. 82–204, 47 FR 49368, Nov. 1, 1982; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 92–81, 57 FR 37696, Aug. 20, 1992; T.D. 97–19, 62 FR 15834, Apr. 3, 1997; T.D. 02–65, 67 FR 68032, Nov. 8, 2002]
GENERAL PROVISIONS
§ 19.2 Applications to bond.
(a) Application. An owner or lessee de- siring to establish a bonded warehouse facility shall make written application to the director of the port nearest to where the warehouse is located, de- scribing the premises, giving its loca- tion, and stating the class of ware- house desired. If required by the port director, the applicant shall provide a list of names and addresses of all offi- cers and managing officials of the warehouse and all persons who have a direct or indirect financial interest in the operation of the warehouse facility. Except in the case of a class 2 or class 7 warehouse, the application shall state whether the warehouse facility is to be operated only for the storage or treat- ment of merchandise belonging to the applicant or whether it is to be oper- ated as a public bonded warehouse. If the warehouse facility is to be operated as a private bonded warehouse, the ap- plication also shall state the general character of the merchandise to be stored therein, and provide an estimate of the maximum duties and taxes which will be due on all merchandise in the bonded warehouse at any one time. A warehouse facility will be deter- mined by street address, location, or both. For example, if a proprietor has two warehouses located at one street address and three warehouses located at three different street addresses the two located at one address would be considered as one warehouse facility and the three located at three different addresses would each be considered as separate warehouses facilities. The ap- plicant must prepare and have avail- able at the warehouse a procedures
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manual describing the inventory con- trol and recordkeeping system that will be used in the warehouse. A cer- tification by the proprietor that the in- ventory control and recordkeeping sys- tem meets the requirements of § 19.12 will be submitted with the application. The physical security of the facility must meet the approval of the port di- rector.
(b) The applicant shall submit evi- dence of fire insurance coverage on the proposed warehouse. If the applicant does not have fire insurance for the proposed warehouse, he shall submit a certificate signed by an officer or agent of each of two insurance companies stating that the building is acceptable for fire-insurance purposes. The appli- cation shall also be accompanied by a blueprint showing measurements, openings, etc., of the building or space to be bonded. If the warehouse to be bonded is a tank, the blueprint shall show all outlets, inlets, and pipe liles and shall be certified as correct by the proprietor of the tank. A gauge table showing the capacity of the tank in United States gallons per inch or frac- tion of an inch of height, certified by the proprietor to be correct, shall ac- company the application. When a part or parts of a building are to be used as the warehouse, there shall be given a detailed description of the materials and construction of all partitions. When the proprietor is the lessee of the premises covered by the application and bond, he shall furnish a stipulation concurred in by the sureties, agreeing that, prior to the expiration of the lease covering the premises without re- newal thereof, he will transfer any merchandise remaining in the bonded warehouse to an approved bonded ware- house, pay all duties, charges, or exac- tions due on such merchandise, or oth- erwise dispose of such merchandise in accordance with the Customs laws and regulations. If the application is for a Class 9 warehouse (duty-free store), the applicant shall furnish the following documents:
(1) A map showing the location of the facilities to be bonded in respect to the port of entry and distances to all exit points of purchasers of conditionally duty-free merchandise;
(2) A description of the store’s proce- dures, which includes inventory con- trol, recordkeeping, and delivery meth- ods. These procedures must be set forth in the proprietor’s procedures manual. Such manual and subsequent changes therein must be furnished to the port director upon request. The procedures in the manual shall provide reasonable assurance that conditionally duty-free merchandise sold therein will be ex- ported;
(3) If an airport duty-free store, a de- scription of the store’s procedures for restricting sales of conditionally duty- free merchandise to personal-use quan- tities; and
(4) A statement by an authorized offi- cial of the appropriate state, local or other governmental authority admin- istering the exit point facility that the applicant duty-free store is authorized to deliver conditionally duty-free mer- chandise to purchasers at or through that exit point facility. A separate statement shall be required for each governments authority having jurisdic- tion over exit point facilities through which the duty-free store intends to de- liver merchandise to purchasers. If the merchandise will be delivered through an exit point which is not under the ju- risdiction of a governmental authority, the applicant will provide a statement to that effect.
(c) On approval of the application to bond a warehouse of any class, except class 1, a bond shall be executed on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter.
(d) An applicant desiring to establish a general order warehouse may need to establish, as a condition of approval of the application, that the warehouse will meet minimum space require- ments imposed by the port director to accommodate the storage of general order merchandise. Any space require- ments will be posted by written notice at the customhouse and on the appro- priate Customs-authorized electronic data interchange system. An applicant will not be subject to any minimum space requirements that are posted after the filing of his application.
(e) Any proprietor of a bonded ware- house may be required on 10 days’ no- tice from the port director to furnish a
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new bond on Customs Form 301, con- taining the bond conditions set forth in § 113.63 of this chapter; and if he fails to do so, no more goods shall be sent to the warehouse and those therein shall be removed at the expense of such pro- prietor. A new bond is required if the bonded warehouse is substantially al- tered or rebuilt.
(f) As a condition of approval of the application, the port director may order an inquiry by a Customs officer into the qualification, character, and experience of the applicant (e.g. per- sonal history, financial and business data, credit and personal references), and into the security, suitability, and fitness of the facility. The port director may require an individual applicant to submit fingerprints on form FD 258 or electronically at the time of filing the application, or in the case of applica- tions from a business entity, may re- quire the fingerprints, on form FD 258 or electronically, of all employees of the business entity.
(g) The port director shall promptly notify the applicant in writing of his decision to approve or deny the appli- cation to bond the warehouse. If the application is denied the notification shall state the grounds for denial. The decision of the port director will be the final Customs administrative deter- mination in the matter.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 56393, 30 FR 5580, Apr. 20, 1965; T.D. 78– 80, 43 FR 10685, Feb. 15, 1978; T.D. 82–204, 47 FR 49368, Nov. 1, 1982; T.D. 84–213, 49 FR 41169, Oct. 19, 1984; T.D. 92–81, 57 FR 37696, Aug. 20, 1992; T.D. 93–18, 58 FR 15772, Mar. 24, 1993; T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D. 97–19, 62 FR 15834, Apr. 3, 1997; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 01–14, 66 FR 8767, Feb. 2, 2001; T.D. 02–65, 67 FR 68032, Nov. 8, 2002]
§ 19.3 Bonded warehouses; alterations; relocation; suspensions; discontinu- ance.
(a) Alterations or relocation. Alter- ations to or relocation of a warehouse may be made with the permission of the director of the port nearest to where the facility is located.
(b) Suspensions. The use of all or part of a bonded warehouse or bonded floor space may be temporarily suspended by the port director of a period not to ex- ceed one year on written application of
the proprietor if there are no bonded goods in the area. Upon written appli- cation of the proprietor and upon the removal of all nonbonded goods, if any, the premises may again be used for the storage of bonded goods. If the applica- tion is approved, the port director shall indicate the approval by endorsement on the application. Rebonding will not be necessary as long as the original bond remains in force.
(c) Discontinuance. If a proprietor wishes to discontinue the bonded sta- tus of the warehouse, he shall make written application to the port direc- tor. The port director shall not approve the application until all goods in the warehouse are transferred to another bonded warehouse without expense to the Government. To reestablish the bonded warehouse, application shall be made and approved under the provision of § 19.2 of this chapter.
(d) Employee lists. The port director may make a written demand upon the proprietor to submit, within 30 days after the date of demand, a written list of the names, addresses, social security numbers, and dates and places of birth of all persons employed by the propri- etor in the carriage, receiving, storage, or delivery of any bonded merchandise. If a list has been previously furnished the proprietor shall advise the port di- rector in writing of the names, address- es, social security numbers, and dates and places of birth of any new per- sonnel employed by him in the car- riage, receiving, storage, or delivery of bonded merchandise within 10 days after such employment. For the pur- pose of this part a person shall not be deemed to be employed by a warehouse proprietor if he is an officer or em- ployee of an independent contractor engaged by the warehouse proprietor to load, unload, transport, or otherwise handle bonded merchandise.
(e) Revocation or suspension for cause. The port director may revoke or sus- pend for cause the right of a proprietor to continue the bonded status of the warehouse for any ground specified in this paragraph. An action to suspend or revoke the right to operate a bonded warehouse shall be taken in accordance with the procedures set forth in para- graph (f) of this section. If the bonded status is revoked or suspended for
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cause, the port director shall require all goods in the warehouse to be trans- ferred to a bonded warehouse without expense to the Government. The bond- ed status of a warehouse may be re- voked or suspended for cause if:
(1) The approval of the application to bond the warehouse was obtained through fraud or the misstatement of a material fact;
(2) The warehouse proprietor refuses or neglects to obey any proper order of a Customs officer or any Customs order, rule, or regulation relative to the operation or administration of a bonded warehouse;
(3) The warehouse proprietor or an officer of a corporation which has been granted the right to operate a bonded warehouse is convicted of or has com- mitted acts which would constitute a felony, or a misdemeanor involving theft, smuggling, or a theft-connected crime. Any change in the employment status of the corporate officer, (e.g., discharge, resignation, demotion, or promotion) prior to conviction of a fel- ony or prior to conviction of a mis- demeanor involving theft, smuggling, or a theft-connected crime, resulting from acts committed while a corporate officer, will not preclude application of this provision;
(4) The warehouse proprietor does not provide secured facilities or properly safeguard merchandise within the bonded warehouse;
(5) The warehouse proprietor fails to furnish a current list of names, ad- dresses, and other information required by § 19.3(d);
(6) The bond required by § 19.2(c) or (d) of this chapter is determined to be insufficient in amount or lacking suffi- cient sureties, and a satisfactory new bond with goods and sufficient sureties is not furnished within a reasonable time;
(7) Bonded merchandise has not been stored in the warehouse for a period of 2 year; or
(8) The warehouse proprietor or an employee of the warehouse proprietor discloses proprietary information in, or proprietary information contained on, documents to be included in the permit file folder to an unauthorized person.
(9) The proprietor of a Class 9 ware- house is or has been unable to provide
reasonable assurance that condi- tionally duty-free merchandise is or was exported in compliance with the regulations of this part.
(f) Procedure for revocation or suspen- sion for cause. The port director may at any time serve notice in writing upon any proprietor of a bonded warehouse to show cause why his right to con- tinue the bonded status of his ware- house should not be revoked or sus- pended for cause. Such notice shall ad- vise the proprietor of the grounds for the proposed action and shall afford the proprietor an opportunity to re- spond in writing within 30 days. There- after, the port director shall consider the allegations and responses made by the proprietor unless the proprietor in his response requests a hearing. If a hearing is requested, it shall be held before a hearing officer designated by the Commissioner of Customs or his designee within 30 days following the proprietor’s request. The proprietor may be represented by counsel at such hearing, and all evidence and testi- mony of witnesses in such proceedings, including substantiation of the allega- tions and the responses thereto shall be presented, with the right of cross-ex- amination to both parties. A steno- graphic record of any such proceeding shall be made and a copy thereof shall be delivered to the proprietor of the warehouse. At the conclusion of the hearing, the hearing officer shall promptly transmit all papers and the stenographic record of the hearing to the Assistant Commissioner, Office of Field Operations or designee together with his recommendation for final ac- tion. The proprietor may submit in writing additional views or arguments to the Assistant Commissioner, Office of Field Operations or designee fol- lowing a hearing on the basis of the stenographic record, within 10 days after delivery to him of a copy of such record. The Assistant Commissioner, Office of Field Operations or designee shall thereafter render his decision in writing, stating his reasons therefor. Such decision shall be served on the proprietor of the warehouse, and shall be considered the final administrative action.
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(g) Review by the Court of Inter- national Trade. Any proprietor ad- versely affected by a decision of the As- sistant Commissioner, Office of Field Operations or designee may appeal the decision in the Court of International Trade.
[T.D. 82–204, 47 FR 49369, Nov. 1, 1982, as amended by T.D. 85–90, 50 FR 21431, May 24, 1985; T.D. 88–63, 53 FR 40219, Oct. 14, 1988; T.D. 92–81, 57 FR 37697, Aug. 20, 1992; T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 19.4 CBP and proprietor responsi- bility and supervision over ware- houses.
(a) Customs supervision. The character and extent of Customs supervision to be exercised in connection with any warehouse facility or transaction pro- vided for in this part shall be in accord- ance with § 101.2(c) of this chapter. Independent of any need to appraise or classify merchandise, the port director may authorize a Customs officer to su- pervise any transaction or procedure at the bonded warehouse facility. Such supervision may be performed through periodic audits of the warehouse pro- prietor’s records, quantity counts of goods in warehouse inventories, spot checks of selected warehouse trans- actions or procedures or reviews of con- ditions of recordkeeping, storage, secu- rity, or safety in a warehouse facility.
(b) Proprietor responsibility and super- vision—(1) Supervision. The proprietor shall supervise all transportation, re- ceipts, deliveries, sampling, record- keeping, repacking, manipulation, de- struction, physical and procedural se- curity, conditions of storage, and safe- ty in the warehouse as required by law and regulations. Supervision by the proprietor shall be that which a pru- dent manager of a storage and manipu- lation facility would be expected to ex- ercise.
(2) Customs access. The warehouse proprietor shall permit access to the warehouse and present merchandise within a reasonable time after request by any Customs officer.
(3) Safekeeping of merchandise and records. The proprietor is responsible for safekeeping of merchandise and records concerning merchandise en- tered in Customs bonded warehouses.
The proprietor or his employees shall safeguard and shall not disclose propri- etary information contained in or on related documents to anyone other than the importer, importer’s trans- feree, or owner of the merchandise to whom the document relates or their authorized agent.
(4) Records maintenance—(i) Mainte- nance. The proprietor shall:
(A) Maintain the inventory control and recordkeeping system in accord- ance with the provisions of § 19.12 of this part;
(B) Retain all records required in this part and defined in § 163.1(a) of this chapter, pertaining to bonded merchan- dise for 5 years after the date of the final withdrawal under the entry; and
(C) Protect proprietary information in its custody from unauthorized dis- closure.
(ii) Availability. Records shall be readily available for Customs review at the warehouse. In addition, a propri- etor may keep records at another loca- tion for Customs review, but only if the proprietor first receives written ap- proval for such storage from the port director.
(5) Record retention in lieu of originals. A warehouse proprietor may, in accord- ance with § 163.5 of this chapter, utilize alternative storage methods in lieu of maintaining records in their original formats.
(6) Warehouse and merchandise secu- rity. The warehouse proprietor shall maintain the warehouse facility in a safe and sanitary condition and estab- lish procedures adequate to ensure the security of all merchandise under Cus- toms custody stored in the facility. The warehouse construction will be a factor that will be considered by the port director in deciding whether to ap- prove the application. The facility shall be built in such a manner as to render it impossible for unauthorized personnel to enter the premises with- out such violence as to make the entry easy to detect. If a portion of the facil- ity is to be used for the storage of non- bonded merchandise, the port director shall designate the means for effective separation of the bonded and non-bond- ed merchandise, such as a wall, fence, or painted line. All inlets and outlets
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to bonded tanks shall be secured with locks and/or in-bond seals.
(7) Storage conditions. Merchandise in the bonded area shall be stored in a safe and sanitary manner to minimize damage to the merchandise, avoid haz- ards to persons, and meet local, state, and Federal requirements applicable to specific kinds of goods. Doors and en- trances shall be left unblocked for ac- cess by Customs officers and warehouse proprietor personnel.
(8) Manner of storage. Packages shall be received in the warehouse and re- corded in the proprietor’s inventory and accounting records according to their marks and numbers. Packages containing weighable or gaugeable merchandise not bearing shipping marks and numbers shall be received under the weigher’s or gauger’s num- bers. Packages with exceptions due to damage or loss of contents, or not iden- tical as to quantity or quality of con- tents shall be stored separately until the discrepancy is resolved with Cus- toms. Merchandise received in the warehouse shall be stored in a manner directly identifying the merchandise with the entry, general order, or sei- zure number; using a unique identifier for inventory categories composed of fungible merchandise accounted for on a First-In-First-Out (FIFO) basis; or using a unique identifier for inventory categories composed of fungible mer- chandise accounted for using another approved alternative inventory meth- od.
(i) Direct identification. The ware- house proprietor shall mark all ship- ments for identification, showing the general order or warehouse entry num- ber or seizure number and the date of the general order, entry, or delivery ticket in the case of seizures. Con- tainers covered by a given warehouse entry, general order or seizure shall not be mixed with goods covered by any other entry, general order or sei- zure. Merchandise covered by a given warehouse entry, general order or sei- zure may be stored in multiple loca- tions within the warehouse if the pro- prietor’s inventory control system spe- cifically identifies all locations where merchandise for each entry, general order or seizure is stored and the quan- tity in each location. The proprietor
must provide, upon request by a Cus- toms officer, a record balance of goods, specifying the quantity in each storage location, covered by any warehouse entry, general order, or seizure so a physical count can be made to verify the accuracy of the record balance.
(ii) FIFO. A proprietor may account for fungible merchandise on a First-In- First-Out (FIFO) basis instead of spe- cific identification by warehouse entry number, provided the merchandise meets the criteria for fungibility and the recordkeeping requirements con- tained in § 19.12 of this part are met. As of the beginning date of FIFO proce- dures, each kind of fungible merchan- dise in the warehouse under FIFO shall constitute a separate inventory cat- egory. Each inventory category shall be assigned a unique number or other identifier by the proprietor to distin- guish it from all other inventory cat- egories under FIFO. All of the mer- chandise in a given inventory category shall be physically placed so as to be segregated from merchandise under other inventory categories or merchan- dise accounted for under other inven- tory methods. The unique identifier shall be marked on the merchandise, its container, or the location where it is stored so as to clearly show the in- ventory category of each article under FIFO procedures. Merchandise covered by a given unique identifier may be stored in multiple locations within the warehouse if the proprietor’s inventory control system specifically identifies all locations where merchandise for a specific unique identifier is stored and the quantity in each location. The pro- prietor must provide, upon request by a Customs officer, a record balance of goods, specifying the quantity in each storage location, covered by any ware- house entry, general order, seizure, or unique identifier so a physical count can be made to verify the accuracy of the record balance.
(iii) Other alternative inventory meth- ods. Other alternative inventory sys- tems may be used, if CBP approval is obtained. Importers or proprietors who wish to use an alternative inventory method other than FIFO must apply to CBP Headquarters, Regulations and Rulings, Office of International Trade, for approval.
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(9) Miscellaneous responsibilities. The proprietor is responsible for complying with requirements for transport to his warehouse, deposit, manipulation, manufacture, destruction, shortage or overage, inventory control and record- keeping systems, and other require- ments as specified in this part.
[T.D. 97–19, 62 FR 15834, Apr. 3, 1997, as amended by T.D. 98–22, 63 FR 11825, Mar. 11, 1998; T.D. 98–56, 63 FR 32944, June 16, 1998]
§ 19.5 [Reserved]
§ 19.6 Deposits, withdrawals, blanket permits to withdraw and sealing re- quirements.
(a)(1) Deposit in warehouse. The port director may authorize the deposit of merchandise in designated bonded warehouses, without physical super- vision by a CBP officer. Goods for which a warehouse or rewarehouse entry has been accepted, according to the procedures in part 144, subpart B, of this chapter, will be examined or in- spected at the place of unlading, bond- ed warehouse, or other location as or- dered by the port director. When mer- chandise is deposited in a proprietor’s warehouse or is accepted and receipted for by a proprietor or his agent for transport to the proprietor’s ware- house, the proprietor will be respon- sible for the quantity and condition of merchandise reflected on entry docu- mentation adjusted by (i) any allow- ance made under part 158, subparts A and B, of this chapter by the port di- rector, and (ii) any discrepancy report made jointly on the appropriate cart- age documents as set forth in § 125.31 of this chapter by the warehouse propri- etor and the bonded carrier or licensed cartman or lighterman delivering the goods to the warehouse, or an inde- pendent weigher, gauger, measurer, and signed by an authorized represent- ative of the above within 15 calendar days after deposit. A copy of any joint report of discrepancy must be made within five business days of agreement and provided to the port director on the appropriate cartage documents as set forth in § 125.31 of this chapter. If the proprietor of the bonded warehouse transports the goods to the warehouse, no discrepancy report will be nec- essary.
(2) Allowance after deposit. After mer- chandise has been deposited in the warehouse the proprietor’s liability may be further modified by any adjust- ment for duties allowed by the port di- rector for concealed shortages (i.e., § 158.5(a)), casualty loss (i.e., part 158, subpart C), destruction (i.e., § 158.43), or manipulation (i.e, § 19.11, 19 U.S.C. 1562).
(b)(1) Withdrawal and removal from warehouse. The port director may au- thorize the withdrawal and removal of merchandise, without physical super- vision or examination by a CBP officer under permit issued under the proce- dure set forth in § 144.39 of this chapter. When a withdrawal or removal is not physically supervised by a CBP officer, the warehouse proprietor will be re- lieved of responsibility only for the merchandise in its warehouse in the condition and quantity as shown on the application for withdrawal or removal. In the case of merchandise to be carted or transported in bond from the ware- house, the proprietor will be relieved of responsibility only if it receives the signed receipt on the withdrawal or re- moval document of the carrier named in the document. The proprietor’s re- sponsibility may be adjusted by any discrepancy report made jointly by the warehouse proprietor, and the licensed cartman or lighterman, bonded carrier, weigher, gauger, or measurer and signed by the authorized representative of the above within 15 calendar days after removal from the warehouse. The adjustments must be noted on the per- mit copy of the withdrawal or removal document. A copy of any joint report of discrepancy must be promptly provided to the port director.
(2) Retention in warehouse after with- drawal. Merchandise for which a permit for withdrawal has been issued, wheth- er duty-paid or not, need not be phys- ically removed from the warehouse. However, such merchandise must be segregated or physically marked to maintain its identity as merchandise for which a withdrawal permit has been issued. Duty-paid or unconditionally duty-free merchandise which has been withdrawn, but not removed, from a warehouse is no longer deemed to be in CBP custody. All other goods which have been withdrawn, but not removed,
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remain in CBP custody until the end of the warehouse entry bond period (see § 144.5 of this chapter).
(c) CBP determination of liability. When a CBP officer physically super- vises the deposit or removal of mer- chandise under paragraphs (a)(1) or (b)(1) of this section, the CBP officer’s report of merchandise received or re- moved will be determinative of the quantity and condition of merchandise received or removed from the ware- house for CBP purposes.
(d) Blanket permits to withdraw—(1) General. (i) Blanket permits may be used to withdraw merchandise from bonded warehouses for:
(A) Delivery to individuals departing directly from the customs territory for exportation under the sales ticket pro- cedure of § 144.37(h) of this chapter (Class 9 warehouses only);
(B) Aircraft or vessel supplies under § 309 or 317, Tariff Act of 1930, as amended (19 U.S.C. 1309, 1317); or
(C) The personal or official use of personnel of foreign governments and international organizations set forth in subpart I, part 148 of this chapter; or
(D) A combination of the foregoing. (ii) Except as provided in paragraph
(d)(1)(iii) of this section, blanket per- mits to withdraw may be used only for delivery at the port where withdrawn and not for transportation in bond to another port. Blanket permits to with- draw may not be used for delivery to a location for retention or splitting of shipments under the provisions of § 18.24 of this chapter. A withdrawer who desires a blanket permit must state on the warehouse entry, or on the warehouse entry/entry summary when used as an entry, that ‘‘Some or all of the merchandise will be withdrawn under blanket permit per § 19.6(d), CBP Regulations.’’ CBP’s acceptance of the entry will constitute approval of the blanket permit. A copy of the entry will be delivered to the proprietor, whereupon merchandise may be with- drawn under the terms of the blanket permit. The permit may be revoked by the port director in favor of individual applications and permits if the permit is found to be used for other purposes, or if necessary to protect the revenue or properly enforce any law or regula- tion CBP is charged with admin-
istering. Merchandise covered by an entry for which a blanket permit was issued may be withdrawn for purposes other than those specified in this para- graph if a withdrawal is properly filed as required in subpart D, part 144, of this chapter.
(iii) Blanket permits to withdraw may be used for a withdrawal for trans- portation to another port by a duty- free sales enterprise which meets the requirements for exemption as stated in § 144.34(c) of this chapter. In addi- tion, blanket permits to withdraw may be used for a withdrawal from a Class 9 warehouse for transportation in bond to another port of duty-free merchan- dise intended for passengers’ on-board purchases when expressly authorized in writing by the appropriate Director, Field Operations, provided that both the Class 9 warehouse and port of des- tination are under that Director’s au- thority and the vessel is destined for a foreign destination.
(2) Withdrawals under blanket permit. Withdrawals may be made under blan- ket permit without any further CBP approval, and must be documented by placing a copy of the withdrawal docu- ment in the proprietor’s permit file folder. Each withdrawal must be filed on CBP Form 7501 and must be con- secutively numbered, prefixed with the letter‘‘B’’. The withdrawal must speci- fy the quantity and value of each type of merchandise to be withdrawn. Each copy must bear the summary state- ment described in § 144.32(a) of this chapter, reflecting the balance of mer- chandise covered by the warehouse entry. Any joint discrepancy report of the proprietor and the bonded carrier, licensed cartman or lighterman, or weigher, gauger, or measurer for a sup- plementary withdrawal must be made on the copy and reported to the port di- rector as provided in paragraph (b)(1) of this section. A copy of the withdrawal must be retained in the records of the proprietor as provided in § 19.12(d)(4) of this part. Merchandise must not be re- moved from the warehouse prior to the preparation of the supplementary with- drawal. If merchandise is so removed, the proprietor will be subject to liq- uidated damages as if it were removed without a CBP permit.
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(3) Withdrawals under blanket permit from duty-free stores. Withdrawals under blanket permit from duty-free stores must be made on the sales ticket de- scribed in § 144.37(h) of this chapter. The sales ticket need not contain the summary statement described in § 144.32(a) of this chapter, since the in- formation required is included in the sales ticket register. The sales ticket must be serially numbered as provided in § 144.37(h)(2) of this chapter.
(4) Withdrawals under blanket permit for aircraft or vessel supplies. Multiple withdrawals under a blanket permit for aircraft or vessel supplies, if consigned to the same daily aircraft flight num- ber or vessel sailing, may be filed on one CBP Form 7512; however, an at- tachment form, developed by the ware- house proprietor and approved by the port director may be used for all with- drawals. This attachment form must provide a sufficient summary of the goods being withdrawn, and must in- clude the warehouse entry number, the quantity and weight being withdrawn, the Harmonized Tariff Schedule of the United States number(s), the value of the goods, import and export lading in- formation, the duty rate and amount, and any applicable Internal Revenue tax calculation, for each warehouse entry being withdrawn. A copy of CBP Form 7512 and the summary attach- ment must be attached to each permit file folder unless the warehouse propri- etor qualifies for the permit file folder exemption under § 19.12(d)(4)(iii) of this part.
(5) Blanket permit summary. When all of the merchandise covered by an entry on which a blanket permit to withdraw was issued has been withdrawn, includ- ing withdrawals made for purposes other than duty-free store delivery, vessel or aircraft supply, or diplomatic use, the proprietor must prepare a re- port on a copy of CBP Form 7501, or a form on the letterhead of the propri- etor, which provides an account of the disposition of the merchandise covered by the blanket permit. The form must bear the words ‘‘BLANKET PERMIT SUMMARY’’ in capital letters con- spicuously printed or stamped in the top margin. On the form, the propri- etor must certify that the merchandise listed thereunder was withdrawn in
compliance with § 19.6(d), and must ac- count for all of the merchandise with- drawn under blanket permit by HTSUS (Harmonized Tariff Schedule of the United States) number, HTSUS quan- tity (where applicable) and value. If ap- plicable, the account must separately list and identify merchandise with- drawn for
(i) Duty-free store exportation, (ii) Vessel or aircraft supply use, and (iii) Personal or official use of per-
sons and organizations set forth in sub- part I, part 148, of this chapter. If all of the merchandise was withdrawn under the sales ticket procedure of § 144.37(h) of this chapter, the sales ticket reg- ister may be substituted for the blan- ket permit summary. The form will be placed in the permit file folder and treated as provided in § 19.12(a) of this part.
(e) Affixing or breaking of seals. The port director may authorize a ware- house proprietor to: (1) Break CBP in bond seals affixed under § 18.4 of this chapter, or under any CBP order or di- rective, on any vehicle or container of goods entered for warehouse upon ar- rival of the vehicle or container at the warehouse: or (2) affix CBP in bond seals to any vehicle or container of goods for which a withdrawal docu- ment has been approved for movement in bond. The affixing or breaking of seals so authorized, will be deemed to have been done under CBP supervision. The proprietor must report to the port director any seal found, upon arrival of the vehicle or container at the ware- house, to be broken, missing, or im- properly affixed, and hold the vehicle or container and its contents intact pending instructions from the port di- rector.
[T.D. 82–204, 47 FR 49370, Nov. 1, 1982, as amended by T.D. 84–149, 49 FR 28698, July 16, 1984; T.D. 92–81, 57 FR 37697, Aug. 20, 1992; T.D. 94–81, 59 FR 51494, Oct. 12, 1994; T.D. 95– 81, 60 FR 52295, Oct. 6, 1995; T.D. 97–19, 62 FR 15836, Apr. 3, 1997; CBP Doc. 09–48, 74 FR 68684, Dec. 29, 2009]
§ 19.7 Expenses of labor and storage.
(a) All merchandise deposited in pub- lic stores or in bonded warehouses shall be held liable for the expenses of labor and storage chargeable thereon at the
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12 Repacking shall be considered a manipu- lation within the purview of sec. 562, Tariff Act of 1930, as amended.
customary rates and for all other ex- penses accruing upon the goods.
(b) The rates of storage and labor shall be agreed upon between the im- porter and the warehouse proprietor, but in case of disagreement the port di- rector may, with the consent of all par- ties in interest, determine the rates to be charged.
(c) Except in cases provided for by § 141.102(d) of this chapter, when mer- chandise is stored in a public store under a warehouse entry, general order, or otherwise, the charges for storage due the Government shall be paid before the packages are delivered. The charges shall be based upon the ex- isting bonded warehouse tariff of the port for storage and labor.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17446, July 2, 1973]
§ 19.8 Examination of goods by im- porter; sampling; repacking; exam- ination of merchandise by prospec- tive purchasers.
Importers may, upon application ap- proved by the port director on Customs Form 3499 examine, sample, and re- pack 12 or transfer merchandise in bonded warehouse. Where there will be no interference with the orderly con- duct of Customs business and no dan- ger to the revenue prospective pur- chaser may be permitted to examine merchandise in bonded warehouses upon the written request of the owner, importer, consignee, or transferee.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 82–204, 47 FR 49371, Nov. 1, 1982]
§ 19.9 General order, abandoned, and seized merchandise.
(a) Acceptance of merchandise. The ar- riving carrier (or other party to whom custody of the merchandise was trans- ferred by the carrier under a Customs- authorized permit to transfer or in- bond entry) is responsible for preparing a Customs Form (CF) 6043 (Delivery Ticket), or other similar Customs doc- ument as designated by the port direc- tor or an electronic equivalent as au- thorized by Customs, to cover the pro- prietor’s receipt of the merchandise
and its transport to the warehouse from the custody of the arriving car- rier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry). A joint determination will be made by the warehouse proprietor and the bond- ed carrier of the quantity and condi- tion of the goods or articles so deliv- ered to the warehouse. Within two working days of the joint determina- tion, the warehouse proprietor will re- port to the port director any discrep- ancy between the quantity and condi- tion of the goods and that reported on CF 6043, or other similar Customs docu- ment as designated by the port director or an electronic equivalent as author- ized by Customs.
(b) Recording and storing. General order, abandoned, and seized goods and articles shall be recorded and stored in the warehouse as prescribed by § 19.12.
(c) Release of merchandise. Merchan- dise in general order may be released by the warehouse proprietor, after Cus- toms inspection or examination as or- dered by the port director, to the per- son named in a release order under § 141.11 of this chapter. The release may only be made by the proprietor upon presentation of a permit to release or delivery authorization signed by the appropriate Customs officer on Cus- toms Form 3461, 7501, 368 or 368A or other Customs form as designated by the port director. General order goods which have been unclaimed under § 127.11 of this chapter, voluntarily abandoned, or seized and forfeited may be released for transfer to the place of sale upon presentation to the ware- house proprietor of an approved copy of Customs Form 5251 (Order to Transfer Merchandise for Public Auction (Sale)), and an approved copy of Customs Form 6043 (Delivery Ticket). The quantity and condition of the goods so trans- ferred shall be determined jointly by the proprietor and the cartman or lighterman picking up the goods for de- livery to the place of sale. Any discrep- ancies shall be noted on the delivery ticket, a copy of which shall be sent to the port director within two business days of agreement. Seized goods that are released for a purpose other than sale may be released from warehouse
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only upon such written terms and con- ditions as directed by the port director.
[T.D. 82–204, 47 FR 49371, Nov. 1, 1982, as amended by T.D. 92–56, 57 FR 24944, June 12, 1992; T.D. 02–65, 67 FR 68032, Nov. 8, 2002]
§ 19.10 Examination packages. Merchandise sent from a bonded
warehouse to the appraiser’s stores for examination shall be returned by the port director to the warehouse for de- livery unless the warehouse proprietor endorses the duty-paid permit to au- thorize delivery to another person.
[T.D. 82–204, 47 FR 49371, Nov. 1, 1982]
MANIPULATION IN BONDED WAREHOUSES AND ELSEWHERE
§ 19.11 Manipulation in bonded ware- houses and elsewhere.
(a) So far as applicable, the general provisions of the regulations governing warehouses bonded for the storage of imported merchandise shall apply to bonded manipulation warehouses and to other designated places of manipula- tion.
(b) Merchandise to be manipulated under section 562, Tariff Act of 1930, as amended, may be entered on Customs Form 7501 and sent directly to a stor- age-manipulation warehouse.
(c) Warehouse proprietors shall not allow manipulation of any merchandise without a prior permit issued by the port director, except as provided in paragraph (h) of this section. Merchan- dise entered for warehouse may be transferred to a storage-manipulation warehouse; or merchandise entered for storage-manipulation warehouse may be transferred after manipulation to the storage portion of the same ware- house, to another storage warehouse, or to a manufacturing warehouse of class 6.
(d) The application to manipulate, which shall be filed on Customs Form 3499 with the port director having ju- risdiction of the warehouse or other designated place of manipulation, shall describe the contemplated manipula- tion in sufficient detail to enable the port director to determine whether the imported merchandise is to be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, within the meaning of section 562, Tar-
iff Act of 1930, as amended. If the port director is satisfied that the merchan- dise is to be so manipulated, he may issue a permit on Customs Form 3499, making any necessary modification in such form. The port director may ap- prove a blanket application to manipu- late on Customs Form 3499, for a period of up to one year, for a continuous or a repetitive manipulation. The ware- house proprietor must maintain a run- ning record of manipulations per- formed under a blanket application, in- dicating the quantities before and after each manipulation. The record must show what took place at each manipu- lation describing marks and numbers of packages, location within the facil- ity, quantities, and description of goods before and after manipulation. The port director is authorized to re- voke a blanket approval to manipulate and require the proprietor to file indi- vidual applications if necessary to pro- tect the revenue, administer any law or regulation, or both. Manipulation re- sulting in a change in condition of the merchandise, which will make it sub- ject to a lower rate of duty or free of duty upon withdrawal for consumption, is not precluded by the provisions of such section 562.
(e) No merchandise shall be manipu- lated elsewhere than in a bonded ware- house unless the merchandise has been regularly entered for consumption or warehouse and is of a class entitled to the warehousing privilege under sec- tion 557, Tariff Act of 1930, as amended.
(f) Upon compliance with the provi- sions of paragraph (d) of this section, manipulated merchandise may be fur- ther manipulated before withdrawal in cases where the port director is satis- fied that this will not endanger the revenue or interfere with the efficient conduct of Customs business. The mer- chandise remaining in the warehouse shall be properly repacked after each manipulation.
(g) Except as provided in § 144.38 of this chapter, manipulated merchandise may be withdrawn under any form of withdrawal, but no withdrawal shall be accepted for less than an entire re- packed package. Each type of with- drawal filed shall contain a summary statement indicating the quantity in
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the warehouse account after manipula- tion and immediately before the with- drawal, the quantity withdrawn on the particular withdrawal, and the quan- tity remaining in the warehouse after the withdrawal. When merchandise covered by a consumption entry is ma- nipulated elsewhere than in a bonded warehouse and thereafter withdrawn for consumption, the withdrawal shall be on Customs Form 7501 and shall be liquidated in accordance with § 159.9 of this chapter.
(h) Merchandise which has been en- tered for warehouse and placed in a Class 9 warehouse (duty-free store) may be unpacked into its smallest irre- ducible unit for sale without a prior permit issued by the port director. The port director may issue a blanket per- mit to a duty-free store for up to one year permitting the destruction of merchandise covered by any entry and found to be nonsaleable, if the mer- chandise to be destroyed is valued at less than 5 percent of the value of the merchandise at time of entry or $1,250, whichever is less, in its undamaged condition. Such permit may be revoked in favor of a permit for each entry and/ or destruction whenever necessary to assure proper destruction and protec- tion of the revenue. The proprietor shall maintain a record of unpacking merchandise into saleable units and de- struction of nonsaleable merchandise in its inventory and accounting records.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 82–204, 47 FR 49371, Nov. 1, 1982; T.D. 84– 129, 49 FR 23166, June 5, 1984; T.D. 84–171, 49 FR 31253, Aug. 3, 1984; T.D. 84–213, 49 FR 41169, Oct. 19, 1984; T.D. 85–38, 50 FR 8723, Mar. 5, 1985; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 92–81, 57 FR 37698, Aug. 20, 1992; T.D. 95–81, 60 FR 52295, Oct. 6, 1995; T.D. 97– 19, 62 FR 15836, Apr. 3, 1997]
ACCOUNTS
§ 19.12 Inventory control and record- keeping system.
(a) Systems capability. The proprietor of a class 11 general order warehouse as described in § 19.1 must have an auto- mated inventory control and record- keeping system. Proprietors of existing class 3, 4, or 5 warehouses as described in § 19.1 certified before December 9, 2002, to receive general order merchan-
dise must have automated inventory control and recordkeeping systems in place with respect to general order merchandise after a period of 2 years from December 9, 2002. All other ware- house proprietors have a choice of maintaining manual or automated in- ventory control and recordkeeping sys- tems or a combination of manual and automated systems. All inventory con- trol and recordkeeping systems must be capable of:
(1) Accounting for all merchandise transported, deposited, stored, manipu- lated, manufactured, smelted, refined, destroyed in or removed from the bond- ed warehouse and all merchandise col- lected by a proprietor or his agent for transport to his warehouse. The records must provide an audit trail from deposit through manipulation, manufacture, destruction, and with- drawal from the bonded warehouse ei- ther by specific identification or other CBP authorized inventory method. The records to be maintained are those which a prudent businessman in the same type of business can be expected to maintain. The records are to be kept in sufficient detail to permit effective and efficient determination by CBP of the proprietor’s compliance with these regulations and correctness of his an- nual submission or reconciliation;
(2) Producing accurate and timely re- ports and documents as required by this part; and
(3) Identifying shortages and over- ages of merchandise in sufficient detail to determine the quantity, description, tariff classification and value of the missing or excess merchandise so that appropriate reports can be filed with CBP on a timely basis.
(b) Procedures manual. (1) The propri- etor must have available at the ware- house an English language copy of its written inventory control and record- keeping systems procedures manual in accordance with the requirements of this part.
(2) The proprietor must keep current its procedures manual and must submit to the port director a new certification at the time any change in the system is implemented.
(c) Entry of merchandise into a ware- house—(1) Identification. All merchan- dise collected by a proprietor or his
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agent for transport to his warehouse shall be receipted. In addition, all mer- chandise entered in a warehouse will be recorded in a receiving report or docu- ment using a customs entry number or unique identifier if an alternate inven- tory control method has been ap- proved. All merchandise will be trace- able to a customs entry and supporting documentation.
(2) Quantity verification. Quantities received will be reconciled to a receiv- ing report or document such as an in- voice with any discrepancy reported to the port director as provided in § 19.6(a).
(3) Recordation. Merchandise received will be accurately recorded in the ac- counting and inventory system records from the receiving report or document using the customs entry number or unique identifier if an alternative in- ventory control method has been ap- proved.
(d) Accountability for merchandise in a warehouse—(1) Identification of merchan- dise. The customs entry number or unique identifier, as applicable under § 19.4(b)(8), will be used to identify and trace merchandise.
(2) Inventory records. The inventory records will specify by customs entry number or unique identifier if an alter- native inventory control method is ap- proved:
(i) The location of the merchandise within the warehouse;
(ii) Except for merchandise in gen- eral order, the cost or value of the mer- chandise, unless the proprietor’s finan- cial records maintain cost or value and the records are made available for CBP review; and
(iii) The beginning balance, cumu- lative receipts and withdrawals, adjust- ments, destructions, and current bal- ance on hand by date and quantity.
(3) Theft, shortage, overage or damage— (i) General. Except as otherwise pro- vided in paragraph (d)(3)(ii) of this sec- tion, any theft or suspected theft or overage or any extraordinary shortage or damage (equal to one percent or more of the value of the merchandise in an entry or covered by a unique identifier; or if the missing merchan- dise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port di-
rector, and confirmed in writing within five business days after the shortage, overage, or damage has been brought to the attention of the port director. An entry for warehouse must be filed for all overages by the person with the right to make entry within five busi- ness days of the date of discovery. The responsible party must pay the applica- ble duties, taxes and interest on thefts and shortages reported to CBP within 20 calendar days following the end of the calendar month in which the short- age is discovered. The port director may allow the consolidation of duties and taxes applicable to multiple short- ages into one payment; however, the amount applicable to each warehouse entry is to be listed on the submission and must specify the applicable duty, tax and interest. These same require- ments apply when cumulative thefts, shortages or overages under a specific entry or unique identifier total one percent or more of the value of the merchandise or if the duties and taxes owed exceed $100. Upon identification, the proprietor must record all short- ages and overages in its inventory con- trol and recordkeeping system, wheth- er or not they are required to be re- ported to the port director at the time. The proprietor must also record all shortages and overages as required in the CBP Form 300 or annual reconcili- ation report under paragraphs (g) or (h) of this section, as appropriate. Duties and taxes applicable to any non-ex- traordinary shortage or damage and not required to be paid earlier must be reported and submitted to the port di- rector no later than the date the cer- tification of preparation of CBP Form 300 is due or at the time the certifi- cation of preparation of the annual rec- onciliation report is due, as prescribed in paragraphs (g) or (h) of this section.
(ii) Class 9 warehouses. With respect to Class 9 warehouses, any theft or sus- pected theft or overage or any extraor- dinary shortage or damage (equal to one percent or more of the merchandise in an entry or covered by a unique identifier; or if the missing merchan- dise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port di- rector, and confirmed in writing within 20 calendar days after the shortage,
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overage, or damage has been brought to the attention of the port director. An entry for warehouse must be filed for all overages by the person with the right to make entry within 20 calendar days of the date of discovery. The re- sponsible party must pay the applica- ble duties, taxes and interest on thefts and shortages reported to CBP within 20 calendar days following the end of the calendar month in which the short- age is discovered. The port director may allow the consolidation of duties and taxes applicable to multiple short- ages into one payment; however, the amount applicable to each warehouse entry is to be listed on the submission and must specify the applicable duty, tax and interest. These same require- ments apply when cumulative thefts, shortages or overages under a specific entry or unique identifier total one percent or more of the value of the merchandise or if the duties and taxes owed exceed $100. Upon identification, the proprietor must record all short- ages and overages in its inventory con- trol and recordkeeping system, wheth- er or not they are required to be re- ported to the port director at the time. The proprietor must also record all shortages and overages as required in the CBP Form 300 or annual reconcili- ation report under paragraphs (g) or (h) of this section, as appropriate. Duties and taxes applicable to any non-ex- traordinary shortage or damage and not required to be paid earlier must be reported and submitted to the port di- rector no later than the date the cer- tification of preparation of CBP Form 300 is due or at the time the certifi- cation of preparation of the annual rec- onciliation report is due, as prescribed in paragraphs (g) or (h) of this section. Discrepancies found in a Class 9 ware- house with integrated locations as set forth in § 19.35(c) will be the net dis- crepancies for a unique identifier (see § 19.4(b)(8)(ii) of this part) such that overages within one sales location will be offset against shortages in another location that is within the integrated location. A Class 9 proprietor who transfers merchandise between facili- ties in different ports without being re- quired to file a rewarehouse entry in accordance with § 144.34 of this chapter may offset overages and shortages
within the same unique identifier for merchandise located in stores in dif- ferent ports (see § 19.4(b)(8)(ii) of this part).
(4) Permit file folders—(i) Maintenance. Permit file folders must be maintained and kept up to date by filing all re- ceipts, damage or shortage reports, ma- nipulation requests, withdrawals, re- movals and blanket permit summaries within five business days after the event occurs. The permit file folders must be kept in a secure area and must be made available for inspection by CBP at all reasonable hours.
(ii) Review. When the final with- drawal of merchandise relating to a specific warehouse entry, general order or seizure occurs, the warehouse pro- prietor must: review the permit file folder to ensure that all necessary doc- umentation is in the file folder ac- counting for the merchandise covered by the entry; notify CBP of any mer- chandise covered by the warehouse entry, general order or seizure which has not been withdrawn or removed; and file the permit file folder with CBP within 30 calendar days after final withdrawal, except as allowed by para- graph (d)(4)(iv) of this section. The per- mit file folder for merchandise not withdrawn during the general order pe- riod must be submitted to the port di- rector upon receipt from CBP of the CBP Form 6043.
(iii) Exemption to maintenance require- ment. Maintenance of permit file fold- ers will not be required, if the propri- etor has an automated system capable of: satisfactorily summarizing all ac- tions by CBP warehouse entry; pro- viding upon demand by CBP an entry activity summary report which lists all individual receipts, withdrawals, de- structions, manipulations and adjust- ments by warehouse entry and is cross- referenced to the source documents for each transaction; and maintaining source documents so that the docu- ments can be readily retrieved upon re- quest. Failure to provide the entry ac- tivity summary report or documenta- tion supporting the entry activity sum- mary report upon demand by the port director or the field director of regu- latory audit could result in reinstate- ment by the port director of the re- quirement to maintain the permit file
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folder for all warehouse entries. When final withdrawal is made, the propri- etor must submit the entry activity summary report to CBP. Prior to sub- mission, the proprietor must ensure the accuracy of the summary report and assure that all supporting docu- mentation is on file and available for review if requested by CBP.
(iv) Exemption to submission require- ment. At the discretion of the port di- rector, a proprietor may be allowed to furnish formal notification of final withdrawal in lieu of the requirement to submit the permit file folder or entry activity summary within 30 cal- endar days of each final withdrawal. If approved to use this procedure the pro- prietor could be required by the port director to submit permit file folders or entry activity summaries on a selec- tive basis. Failure to promptly provide the permit file folder or entry activity summary upon request by the port di- rector or the field director of regu- latory audit could result in withdrawal of this privilege.
(5) Physical inventory. The proprietor must take at least an annual physical inventory of all merchandise in the warehouse, or periodic cycle counts of selected categories of merchandise such that each category is counted at least once during the year, with prior notification of the date(s) given to CBP so that CBP personnel may observe or participate in the inventory if deemed necessary. If the proprietor of a Class 2 or Class 9 warehouse has merchandise covered by one warehouse entry, but stored in multiple warehouse facilities as provided for under § 144.34 of this chapter, the facility where the original entry was filed must reconcile the on- hand balances at all locations with the record balance for those entries with merchandise in multiple locations. The proprietor must notify the port direc- tor of any discrepancies, record appro- priate adjustments in the inventory control and recordkeeping system, and make required payments and entries to CBP, in accordance with paragraph (d)(3) of this section.
(e) Withdrawal of merchandise from a warehouse. All bonded merchandise withdrawn from a warehouse will be accurately recorded within the inven- tory control and recordkeeping system.
The inventory control and record- keeping system must have the capa- bility to trace all withdrawals back to a customs entry and to ultimate dis- position of the merchandise by the pro- prietor.
(f) Special provisions for use of FIFO inventory procedures—(1) Notification. A proprietor who wishes to use FIFO pro- cedures for all or part of the merchan- dise in a bonded warehouse must pro- vide the port director a written certifi- cation that: The proprietor has read and understands CBP FIFO procedures set forth in this section; the propri- etor’s procedures are in accordance with CBP FIFO procedures, and the proprietor agrees to abide by those pro- cedures; and the proprietor of a public warehouse will obtain the written con- sent of any importer using the ware- house before applying FIFO procedures to their merchandise.
(2) Qualifying merchandise. FIFO in- ventory procedures may be used only for fungible merchandise. For purposes of this section, ‘‘fungible merchandise’’ means merchandise which is identical and interchangeable for all commercial purposes. While commercial inter- changeability is usually decided be- tween buyer and seller or between pro- prietor and importer, CBP is the final arbiter of fungibility in bonded ware- houses. The criteria for determining whether merchandise is fungible in- clude, but are not limited to, Govern- mental and recognized industrial standards, part numbers, tariff classi- fication, value, brand name, unit of quantity (such as barrels, gallons, pounds, pieces), model number, style and same kind and quality. Fungible textile and textile products which are withdrawn from a Class 9 warehouse may be accounted for using FIFO in- ventory procedures, inasmuch as such articles would be exempt from textile quotas.
(3) Merchandise specifically excluded. FIFO procedures cannot be applied to the following merchandise, as well as any other merchandise which does not comply with the requirements of para- graph (f)(2) of this section:
(i) Merchandise subject to quota, visa or export restrictions chargeable to dif- ferent countries of origin;
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(ii) Textile and textile products of different quota categories;
(iii) Merchandise with different tariff classifications or rates of duty, except where the difference is within the mer- chandise itself (such as kits, merchan- dise in unusual containers) or where the tariff classification or dutiability is determined only by conditions upon withdrawal (for example, withdrawal for vessel supplies, bonded wool trans- actions);
(iv) Merchandise with different legal requirements for marking, labeling or stamping;
(v) Merchandise with different trade- marks;
(vi) Merchandise of different grades or qualities;
(vii) Merchandise with different im- porters of record;
(viii) Damaged or deteriorated mer- chandise;
(ix) Restricted merchandise; or (x) General order, abandoned or
seized merchandise. (4) Maintenance of FIFO. FIFO proce-
dures used for merchandise in any in- ventory category, must be used con- sistently throughout the warehouse storage and recordkeeping practices and procedures for the merchandise. For example, merchandise may not be added to inventory by FIFO but with- drawn by bypassing certain inventory layers to reach a specific warehouse entry other than the oldest one. How- ever, this does not preclude the use of specific identification for some mer- chandise in a warehouse entry and FIFO for other merchandise, so long as they are segregated in physical storage and clearly distinguished in the inven- tory and accounting records.
(5) FIFO recordkeeping. In the inven- tory and accounting records, the pro- prietor must establish an inventory layer for each warehouse entry rep- resented in each inventory category. The layers must be established in the order of time of acceptance of the entry or by the date of importation of merchandise covered by each applica- ble warehouse entry. There must be no mixing of layering both by time of ac- ceptance and date of importation in the same warehouse. Records for each layer must, as a minimum, show the warehouse entry number, date of ac-
ceptance, date of importation, quantity and unit of quantity. They must also show for each entry the type of ware- house withdrawal number or other spe- cific removal event charged against the entry, by date and quantity. Each addi- tion to or deduction from the inven- tory category must be posted in the ap- propriate inventory category within 2 business days after the event occurs. All FIFO records and documentation must consistently use the same unit of quantity within each inventory cat- egory.
(6) Entry requirements. Warehouse en- tries covering any merchandise to be accounted for under FIFO must be prominently marked ‘‘FIFO’’ on the face of the entry document. The entry document or an attachment thereto must show the unique identifier of each inventory category to be accounted for under FIFO, the quantity in each in- ventory category and the unit of quan- tity.
(7) Receipts. Any shortages, overages, or damage found upon receipt must be attributed to the entry under which the merchandise was received. FIFO procedures will not take effect until the merchandise is physically placed in the storage location for the inventory category represented in the entry.
(8) Manipulation. When manipulation results in a product with a different unique identifier, the inventory and ac- counting records must show the quan- tities of merchandise in each inventory category appearing in the product cov- ered by the new unique identifier. The withdrawal must show the unique iden- tifiers of both the materials used in the manipulation and the product as ma- nipulated. The quantities of the origi- nal unique identifiers will be deducted from their respective warehouse en- tries on a FIFO basis when the result- ant product is withdrawn.
(9) Discontinuance of FIFO. A propri- etor may voluntarily discontinue the use of FIFO procedures for all or part of the merchandise currently under FIFO by providing written notification to the port director. The notification must clearly describe the merchandise, by commercial names and unique iden- tifiers, to be removed from FIFO. Fol- lowing notification, the merchandise
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must be segregated in both the record- keeping system and the physical loca- tion by warehouse entry number and the quantities so removed must be de- ducted from the appropriate FIFO in- ventory category balances. Merchan- dise so removed must be maintained under the specific identification inven- tory method. FIFO procedures which were voluntarily discontinued may be reinstated, but not for merchandise covered by any warehouse entry for which FIFO was discontinued.
(g) Warehouse proprietor submission. Except as otherwise provided in para- graph (h) of this section or § 19.19(b) of this part, the warehouse proprietor must prepare a Warehouse Proprietor’s Submission on CBP Form 300 within 45 calendar days from the end of the busi- ness year and maintain the Submission on file for 5 years from the end of the business year covered by the Submis- sion. The proprietor must submit to the port director, within 10 business days after preparation of the CBP Form 300, a letter signed by the propri- etor certifying that the CBP Form 300 has been prepared, is available for CBP review, and is accurate. If the propri- etor of a Class 2 or Class 9 warehouse has merchandise covered by one ware- house entry, but stored in multiple warehouse facilities as provided for under § 144.34 of this chapter, the CBP Form 300 must cover all locations and warehouses of the proprietor. An alter- native format may be used for pro- viding the information required on the CBP Form 300.
(h) Annual reconciliation—(1) Report. Instead of preparing CBP Form 300 as required under paragraph (g) of this section, the proprietor of a class 2, im- porters’ private bonded warehouse, and proprietors of classes 4, 5, 6, 7, 8, and 9 warehouses if the warehouse proprietor and the importer are the same party, must prepare a reconciliation report within 90 days after the end of the fis- cal year unless the port director au- thorizes an extension for reasonable cause. The proprietor shall retain the annual reconciliation report for 5 years from the end of the fiscal year covered by the report. The report must be available for a spot check or audit by CBP, but need not be furnished to CBP unless requested. There is no form
specified for the preparation of the re- port.
(2) Information required—(i) General. Except as otherwise provided in para- graph (h)(2)(ii) of this section, the re- port must contain the company name; address of the warehouse; class of ware- house; date of inventory or information on cycle counts; a description of mer- chandise for each entry or unique iden- tifier, quantity on hand at the begin- ning of the year, cumulative receipts and transfers (by unit), quantity on hand at the end of the year, and cumu- lative positive and negative adjust- ments (by unit) made during the year.
(ii) Class 9 warehouses. If the propri- etor of a Class 9 warehouse successfully demonstrates, by application to the ap- propriate port director, that shortages will be reported within 20 calendar days of discovery, the port director may approve the submission of a report that contains the company name; ad- dress of the warehouse; class of ware- house; date of inventory or information on cycle counts; date when resulting shortages and overages are reported to CBP; a description of merchandise for each entry or unique identifier; and a listing of all entries open at the begin- ning of the year, added during the year, and closed during the year.
(iii) Multiple facilities. If the propri- etor of a Class 2 or Class 9 warehouse has merchandise covered by one ware- house entry, but stored in multiple warehouse facilities as provided for under § 144.34 of this chapter, the an- nual reconciliation report must cover all locations and warehouses of the proprietor at the same port. If the an- nual reconciliation report includes en- tries for which merchandise was trans- ferred to a warehouse without filing a rewarehouse entry, as allowed under § 144.34, the annual reconciliation re- port must contain sufficient detail to show all required information by loca- tion where the merchandise is stored. For example, if merchandise covered by a single entry is stored in ware- houses located in 3 different ports, the annual reconciliation report should specify individually the beginning and ending inventory balances, cumulative receipts, transfers, and positive and negative adjustments for each loca- tion.
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(3) Certification. The proprietor must submit to the port director within 10 business days after preparation of the annual reconciliation report, a letter signed by the proprietor certifying that the annual reconciliation has been pre- pared, is available for CBP review, and is accurate. The certification letter must contain the proprietor’s IRS number; date of fiscal year end; the name and street address of the ware- house; the name, title, and telephone number of the person having custody of the records; and the address where the records are stored. Reporting of short- ages and overages based on the annual reconciliation will be made in accord- ance with paragraph (d)(3) of this sec- tion. Any previously unreported short- ages and overages should be reported to the port director and any unpaid du- ties, taxes and fees should be paid at this time.
(i) System review. The proprietor must perform an annual internal review of the inventory control and record- keeping system and must prepare and maintain on file a report identifying any deficiency discovered and correc- tive action taken, to ensure that the system meets the requirements of this part.
(j) Special requirements. A warehouse proprietor submission (CBP Form 300) or annual reconciliation must be pre- pared for each facility or location as defined in §§ 19.2(a) and 19.35(c) of this part. When merchandise is transferred from one facility or location to another without filing a rewarehouse entry, as provided for in § 144.34(c) of this chap- ter, the submission/reconciliation for the warehouse where the entry was originally filed should account for all merchandise under the warehouse entry, indicating the quantity in each location.
[T.D. 97–19, 62 FR 15836, Apr. 3, 1997, as amended by T.D. 99–78, 64 FR 57565, Oct. 26, 1999; T.D. 02–65, 67 FR 68033, Nov. 8, 2002; CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004; CBP Doc. 09–48, 74 FR 68684, Dec. 29, 2009]
MANUFACTURING WAREHOUSES
§ 19.13 Requirements for establish- ment of warehouse.
(a) Buildings or parts of buildings and other enclosures may be des-
ignated as bonded manufacturing ware- houses if the port director is satisfied that their location, construction, and arrangement afford adequate protec- tion to the revenue. Such warehouses shall be used solely and exclusively for the purpose for which they are bonded. The general provisions pertaining to warehouses for the storage of bonded merchandise shall, so far as relevant, apply to bonded manufacturing ware- houses.
(b) Application for the establishment of such a warehouse shall be made to the director of the port where the premises are situated, setting forth the size, construction, and location of the premises, the manufacture proposed to be carried on, and the kinds of mate- rials intended to be stored and used therein.
(c) The procedure outlined in § 19.2 with respect to the application to bond the premises and the execution of the bond shall be followed.
(d) A list of all articles intended to be manufactured in the warehouse shall be filed with the port director. Such list shall set forth the specific names under which the articles are to be ex- ported and under which they will be known to the trade, and shall show the names of all the ingredients entering into the manufacture of such articles, with the quantities of such ingredients or materials as may be dutiable or tax- able.
(e) Proprietors of such warehouses are required to conform strictly to the formulas filed with the bond, or subse- quently, and in no instance shall an ar- ticle be permitted to be manufactured in or withdrawn from the warehouse which does not contain all the ingredi- ents and in the quantities specified in the formula for the manufacture of such article, or which contains any in- gredient not specified in the formula.
(f) Manufactured articles shall be marked with the trade name of the goods and may be marked, in addition, with the formulas and with such insig- nia or name as may be indicated or de- sired by the purchaser, if such addi- tional marking will in no manner con- flict with the requirements of the for- mula or present or create a false or misleading statement or impression.
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(g) Secure storage. Each bonded manu- facturing warehouse shall have a se- cured area separated from the remain- der of the premises to be used exclu- sively for the storage of imported mer- chandise, domestic spirits, and mer- chandise subject to internal-revenue tax transferred into the warehouse for manufacture. A like area shall be pro- vided to be used exclusively for the storage of products manufactured in the warehouse. The area shall be se- cured to prevent any unauthorized per- son from having access thereto and the goods therein shall be arranged in a manner to assist a Customs officer in making the required examination or taking samples for analysis. The areas for storage of bonded material and manufactured products shall be secured in accordance with the standards pre- scribed in § 19.4(b)(6) of this part. The proprietor shall mark each package with the correct warehouse entry num- ber and date until manufacturing takes place. After manufacture, the propri- etor shall mark each package of the finished product with the warehouse entry number and date.
(h) Entry shall be made and duties paid, where applicable, on any im- ported machinery or other equipment or apparatus that is for the construc- tion of the warehouse or for the pursuit of its business.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 82–204, 47 FR 49372, Nov. 1, 1982; T.D. 84– 213, 49 FR 41169, Oct. 19, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 97–19, 62 FR 15839, Apr. 3, 1997]
§ 19.13a Recordkeeping requirements.
The proprietor of a manufacturing warehouse shall comply with the rec- ordkeeping requirements of §§ 19.4(b) and 19.12. In addition, the proprietor shall:
(a) Record all transfers from any storage area to a manufacturing area, and record all transfers from a manu- facturing area to a finished product storage area, in the proprietor’s inven- tory control and accounting records;
(b) Take an annual physical inven- tory of the merchandise as provided in § 19.12(d)(5) in conjunction with the an- nual submission required by § 19.12(g); and
(c) Record all manufacturing oper- ations performed within the warehouse with sufficient detail to determine whether there has been compliance with the manufacturing formula filed with Customs and to permit Customs to audit use and disposition of the mer- chandise.
[T.D. 84–213, 49 FR 41169, Oct. 19, 1984, as amended by T.D. 97–19, 62 FR 15839, Apr. 3, 1997]
§ 19.14 Materials for use in manufac- turing warehouse.
(a) Imported merchandise to be used in a bonded manufacturing warehouse shall be entered on Customs Form 7501 at the port at which such warehouse is located. Such form shall be prepared in 5 copies and shall contain all of the statistical information as provided in § 141.61(e) of this chapter. If the mer- chandise has been imported or entered for warehouse at another port, it may be forwarded to the port at which the manufacturing warehouse is located under an immediate transportation without appraisement entry or ware- house withdrawal for transportation, whichever is applicable.
(b) Bond required. Before the transfer of the merchandise to the manufac- turing warehouse is permitted, a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter shall be required.
(c) Domestic merchandise. When the proprietor of any bonded manufac- turing warehouse desires to receive therein any domestic merchandise, ex- cept merchandise subject to internal- revenue tax, to be used in connection with the manufacturer of articles per- mitted to be manufactured in such warehouse, including packages, cov- erings, vessels, and labels used in put- ting up such articles, an application in the following form shall be sent to the port director for approval and after ap- proval retained by the warehouse pro- prietor:
APPLICATION TO RECEIVE FREE MATERIALS
Port of lllllllllllllllllll llllllllll, 19ll.
To the Port Director: Application is hereby made to receive into
the bonded manufacturing warehouse known as llllllll, situated at
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llllllll the following described arti- cles and materials:
Marks Nos. Description Quantity Value
.................. ............. .................. .................
.................. ............. .................. .................
.................. ............. .................. .................
(Signature) lllllllllllllllll Port lllllllllllllllllllll llllllllll, 19ll.
To the warehouse proprietor in charge of the bonded manufacturing ware- house specified above:
The above described articles and materials are hereby permitted to be received into the warehouse in your charge, to be used therein in connection with the manufacture of arti- cles as authorized by law. Port Director llllllllllllllll
(d) Domestic spirits and wines. For the transfer of domestic spirits from the bonded premises of a distilled spirits plant to a bonded manufacturing ware- house, or for the transfer of domestic wines from a bonded wine cellar to a bonded manufacturing warehouse, a bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, shall be required.
(e) Monthly statement. At the end of each month, the proprietor shall file with the port director a statement of all imported merchandise on which In- ternal Revenue tax has not been paid which was used by the proprietor in the manufacture of articles. The statement shall report this information for each warehouse entry represented in the manufacturing process.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73–312, 38 FR 30882, Nov. 8, 1973; T.D. 82– 204, 47 FR 49373, Nov. 1, 1982; T.D. 84–129, 49 FR 23166, June 5, 1984; T.D. 84–213, 49 FR 41169, Oct. 19, 1984; T.D. 85–123, 50 FR 29953, July 23, 1985]
§ 19.15 Withdrawal for exportation of articles manufactured in bond; waste or byproducts for consump- tion.
(a) Except cigars manufactured in bond and supplies for vessels, no arti- cles or materials received into a bond- ed manufacturing warehouse or arti- cles manufactured therefrom shall be withdrawn or removed therefrom ex- cept for direct exportation or transpor- tation and exportation in bond to a for- eign country. The exportation or ship-
ment shall in every case be under the supervision of Customs.
(b) The coverings or containers of im- ported articles or materials, whether or not subject to duty apart from their contents, are not ‘‘articles or mate- rials’’ within the meaning of section 311, Tariff Act of 1930, as amended, and need not be exported, but may be with- drawn from the warehouse for con- sumption under Customs Form 7501 upon payment of the duties applicable to such coverings or containers in their condition as withdrawn.
(c) Labels, coverings, and empty con- tainers imported to be used in putting up the manufactured articles, if subject to duty or tax, constitute ‘‘articles or materials’’ within the meaning of sec- tion 311, Tariff Act of 1930, as amended, but may be withdrawn for consumption upon payment of all applicable duties and taxes.
(d) When waste or a byproduct is withdrawn for consumption, Customs Form 7501 shall be used, modified as necessary and describing in detail the waste or byproduct and the imported material from which it was produced. Such waste or byproduct shall be ap- praised at its wholesale value at the time of withdrawal in the principal markets of the country from which the material was imported, determined in accordance with the provisions of sec- tion 402, Tariff Act of 1930, as amended. Upon payment of the duty, the with- drawal permit shall be issued for deliv- ery and a proper credit given upon the manufacturer’s bond.
(e) Each withdrawal covering the items which are permitted to be with- drawn for consumption shall contain a summary statement thereon, showing for each class of merchandise the quan- tity on hand in the account, the quan- tity covered by the withdrawal pre- sented, and the quantity remaining in the warehouse account, if any.
(f) The general procedure covering warehouse withdrawals for exportation shall be followed in the case of articles withdrawn for exportation from a bonded manufacturing warehouse, ex- cept that in the case of flour each copy of Customs Form 7512 shall bear the following legend:
Produced from wheat imported after Sep- tember 15, 1930, without payment of duty
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thereon. Must not be exported to Cuba with- out permission from the director of the port of withdrawal.
(g)(1) Articles may be withdrawn for transportation and delivery to a bond- ed storage warehouse at an exterior port under the provisions of section 311, Tariff Act of 1930, as amended (19 U.S.C. 1311), for the sole purpose of im- mediate export, except for distilled spirits which may be withdrawn under the provisions of section 311 for trans- portation and delivery to any bonded storage warehouse for the sole purpose of immediate export, or may be with- drawn pursuant to section 309(a) of the Tariff Act of 1930, as amended (19 U.S.C. 1309(a)). Such withdrawal shall be affected on Customs Form 7512, as provided for in § 144.36 of this chapter. A rewarehouse entry shall be made in accordance with § 144.34(b) of this chap- ter, supported by a bond on Customs Form 301, containing the bond condi- tions set forth in § 113.63 of this chap- ter.
(2) Domestic distilled spirits trans- ferred from a Customs bonded manu- facturing warehouse, class 6, to a Cus- toms bonded storage warehouse, class 2 or 3, in accordance with section 311, Tariff Act of 1930, as amended (19 U.S.C. 1311), shall be rewarehoused in accordance with the procedure for withdrawal and rewarehousing set forth in paragraph (g)(1) of this section. For other regulations concerning the entry and withdrawal of distilled spir- its, see § 144.15 of this chapter.
(h) No merchandise manufactured in a bonded manufacturing warehouse may be withdrawn by a person other than the manufacturer either from the manufacturing warehouse or from a warehouse where the merchandise is stored awaiting direct exportation, un- less an authorization of the manufac- turer is endorsed on the face of the withdrawal, or the manufacturer pre- viously and in writing has transferred the right of withdrawal.
(i) When spirits and wines are with- drawn for shipment to Puerto Rico under section 311, Tariff Act of 1930, as amended, the procedure outlined in § 7.1 of this chapter shall be followed.
(j) As proof of manufacture and ex- portation, the manufacturer, within 6 months from the date of demand by the
port director, shall file in the case of each transaction or period of manufac- ture a statement certified by the ware- house proprietor showing the date and number of the bond, the quantity and identity of the dutiable or taxable mer- chandise used, and the quantity and de- scription of the articles into which it has been manufactured, together with the quantities of any byproducts and waste produced. In the case of articles manufactured with the use of distilled spirits, the statement shall also be verified by the foreman or chemist of the factory and shall show the number of packages of spirits used, the marks and numbers, the number of wine, proof and taxable gallons, and the de- gree of proof.
(k) The same proofs of exportation shall be required as in the case of other warehouse withdrawals for expor- tation.
(l) When the fact of exportation of all the products has been established by such proofs and any byproducts and waste have been exported or released for consumption, the bond given by the manufacturer, or the charges against his bond, shall be canceled.
(m) Shortage, irregular delivery, and nondelivery occurring with respect to merchandise withdrawn from bonded manufacturing warehouse while it is under transportation in bond shall be charged against the bonded carrier.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73–62, 38 FR 5630, Mar. 2, 1973; T.D. 73– 175, 38 FR 17446, July 2, 1973; T.D. 78–298, 43 FR 38382, Aug. 28, 1978; T.D. 80–271, 45 FR 75641, Nov. 17, 1980; T.D. 82–204, 47 FR 49373, Nov. 1, 1982; T.D. 84–213, 49 FR 41170, Oct. 19, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 95–81, 60 FR 52295, Oct. 6, 1995]
§ 19.16 [Reserved]
SMELTING AND REFINING WAREHOUSES
§ 19.17 Application to establish ware- house; bond.
(a) Application. Application for the bonding of a plant of a manufacturer engaged in the smelting or refining, or both, of metal-bearing materials as provided for in section 312, Tariff Act of 1930, as amended, to reduce the metal content thereof to an unwrought metal, or metal in the form of oxides or other compounds which are obtained
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directly from the treatment of the du- tiable materials provided for in chap- ters 26 and 71 through 83, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), shall be made by the man- ufacturer, to the director of the port nearest in which such plant is situated, giving the location of the premises and setting forth the work proposed to be carried on therein.
(b) [Reserved] (c) Discontinuance. At the request of
the proprietor the bonded status of the warehouse may be discontinued at any time provided the port director ap- proves such discontinuance and the proprietor complies with directions of the port director with respect to the disposition of merchandise which may remain in the warehouse. The number of warehouses covered by a blanket smelting and refining bond may be re- duced by discontinuance without ne- cessitating a new bond unless the pro- prietor so desires.
(d) Upon the importation at any sea- board or frontier port of the United States of metal-bearing materials in any form intended for a bonded smelt- ing or refining warehouse situated at some other port of entry, they may be forwarded under an immediate trans- portation without appraisement entry.
(e) Bond. Upon the arrival of im- ported metal-bearing material in any form for the purpose of being smelted or refined, or both, in bond at a port where a bonded smelting or refining warehouse is established, it shall be en- tered for warehouse. A bond on Cus- toms Form 301, containing the bond conditions set forth in § 113.62 of this chapter shall be on file. The port direc- tor shall thereupon issue a permit to the inspector to send such metal bear- ing materials from the importing ves- sel or vehicle by designated bonded vessels or vehicles to the smelting and refining warehouse named in the entry.
(f) Bonded metal-bearing materials shall be kept separate and distinct from nonbonded material until they have been sampled and weighed. The proprietor shall maintain a report of sampling, weighing, and assay of each shipment of bonded materials received into the warehouse for 5 years after liq- uidation of the warehouse entry for shipment.
(g) Statement of inventory and bond charges. Where two or more smelting or refining warehouses are included under one blanket smelting and refining bond, an overall statement must be prepared and maintained by the prin- cipal named in the bond by the 28th of each month, showing the inventory as of the close of the preceding month, of all metals on hand at each plant cov- ered by the blanket bond and the total of bonded charges for all plants. If the warehouses covered by an overall statement are located in more than one port, each port director may choose to verify the accuracy of the inventory re- port only with respect to that portion of the report that relates to amounts held at a plant that is located within that port director’s jurisdiction. All discrepancies which cannot be rec- onciled by the port director shall be re- ported to Headquarters, U.S. Customs Service. If Headquarters finds that the aggregate quantity of dutiable metal at the several plants does not equal the quantity charged against the blanket bond, duties shall be collected for the quantity determined to be deficient.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 74–247, 39 FR 34650, Sept. 27, 1974; T.D. 82–204, 47 FR 49373, Nov. 1, 1982; T.D. 84–213, 49 FR 41170, Oct. 19, 1984; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 90–78, 55 FR 40166, Oct. 2, 1990; T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D. 99–78, 64 FR 57565, Oct. 26, 1999]
§ 19.18 Smelting and refining; allow- ance for wastage; withdrawal for consumption.
(a) Except where absolute deductions have been allowed in the liquidation of the entry for losses on copper, lead, and zinc content of metal-bearing ma- terials, pursuant to Chapter 26, Addi- tional U.S. Note 1, Harmonized Tariff Schedule of the United States (see § 151.55 of this chapter), the actual per- centage of losses by weight shall be al- lowed if more than 90 percent by weight of:
(1) The zinc content initially treated at any lead plant, (2) the copper con- tent of the imported materials treated at any zinc plant, or (3) the copper, lead, or zinc content of the imported material initially treated at any plant other than a copper, lead, or zinc plant is lost in processing such materials. Such actual percentage of losses by
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19 CFR Ch. I (4–1–12 Edition)§ 19.19
weight of the metal content shall be that shown by the manufacturer’s an- nual statement. Such losses shall be applied in the liquidation of the entry to materials entered for consumption or for warehouse, during a 12-month pe- riod beginning on the first day of the month nearest to 90 days after the close of the manufacturer’s fiscal year immediately preceding such 90-day pe- riod, provided the importer makes claim therefor in writing at the time the merchandise is entered. No further wastage shall be allowed. The full duti- able contents of such metal-bearing materials, as ascertained by commer- cial assay made by the Government chemists, less the wastage allowance (including dutiable metals entirely lost in smelting or refining, or both), shall constitute the quantity of dutiable metal which must be either exported, duty-paid, or transferred to another bonded warehouse in order to secure the cancellation of the charge made against the proprietor’s bond as shown by the warehouse or rewarehouse entry account.
(b) Upon the withdrawal for con- sumption of metal so smelted or re- fined, or both, duty shall be collected thereon without the allowance for wastage, except where the metal was transferred to a bonded Customs ware- house other than a smelting warehouse and withdrawn therefrom for consump- tion. However, duty-paid warehouse withdrawals for consumption may be filed with regard to metal which will be physically withdrawn in the form of smelted or refined products whether at the time of the filing of the withdrawal papers the dutiable metal covered by the bond charge being cancelled by the withdrawal is in the form of ores, con- centrates, crude metals, or inter- mediate products. If the warehouse withdrawal for consumption covers a product which does not sustain the full wastage allowable (see § 19.22) prior to being physically released from Cus- toms custody, a proportionate part only of such wastage may be allowed. The warehouse withdrawal and deliv- ery permit shall state the estimated amount of the dutiable metal con- tained in the products, and the ware- house withdrawal shall specify the ap- plicable wastage. A quantity of duti-
able metal equivalent to the smelted or refined products covered by each with- drawal for consumption must be actu- ally on hand at the plant or plants cov- ered by the bond at the time of filing the withdrawals; but neither the actual ability to withdraw smelted or refined products from the warehouse nor the actual physical condition described in the withdrawal will be required at the time of filing the withdrawal.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17446, July 2, 1973; T.D. 82– 90, 47 FR 20753, May 14, 1982; T.D. 89–1, 53 FR 51254, Dec. 21, 1988]
§ 19.19 Manufacturers’ records; annual statement.
(a) Every manufacturer engaged in smelting or refining, or both, shall im- mediately notify the director of the port nearest which the plant is located of any material change in the char- acter of the metal-bearing materials smelted or refined and of any change in the methods of smelting or refining. Each plant for which any of the deduc- tions provided for in Chapter 26, Addi- tional U.S. Note 1, Harmonized Tariff Schedule of the United States, is to be claimed shall maintain complete smelting and refining records showing the receipts and disposition of each shipment of materials received in the plant. If losses are to be claimed under paragraph (c) of said headnote, a record shall be kept which will become a part of the annual statement described in paragraph (b) of this section. These records shall be retained for a period of not less than 5 years. In the case of records forming the basis of such an annual statement, the period for reten- tion shall run from the date of the re- lated annual statement. All such records shall be made available to the port director for such inspection and verification as he may deem advisable.
(b) Every manufacturer engaged in smelting or refining, or both, must pre- pare and submit to the port director at the port nearest which the plant is lo- cated an annual statement for the fis- cal year for the plant involved not later than 60 days after the termi- nation of that fiscal year. The annual statement for the smelting or refining warehouse or both, shall be in lieu of the warehouse proprietors submission
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required by § 19.12. No specific form is prescribed in which such statement shall be prepared. As basic informa- tion, the statement shall show the quantities of metal-bearing materials on hand at the beginning of the period and the dutiable contents thereof; the quantities of metal-bearing materials received during the period and the du- tiable contents thereof; the total metal-bearing materials to be ac- counted for and the dutiable contents thereof; the quantities of metal-bear- ing materials on hand at the end of the period and the dutiable contents there- of; and the quantities of metal-bearing materials worked during the period and the dutiable contents thereof. The statement of the quantity of metal- bearing materials worked during the period shall show the quantity of for- eign material and the quantity of do- mestic material put in process during the smelting operations. The state- ment shall contain such further infor- mation concerning the quantities and kinds of metals and intermediary prod- ucts produced at the plant as will show the wastage sustained in the smelting and refining operation.
[T.D. 67–139, 32 FR 8134, June 6, 1967, as amended by T.D. 82–204, 47 FR 49374, Nov. 1, 1982; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 99–78, 64 FR 57565, Oct. 26, 1999]
§ 19.20 Withdrawal of products from bonded smelting or refining ware- houses.
(a) For exportation. The general proce- dure governing warehouse withdrawals for exportation shall be followed in the case of the withdrawal for exportation of dutiable metal from a bonded smelt- ing or refining warehouse.
(b) For transfer to another bonded warehouse. (1) Withdrawal for transfer to another bonded warehouse shall be at the risk and expense of the appli- cant, and the general regulations gov- erning the transfer of bonded merchan- dise from one warehouse to another or the transfer of imported materials from a bonded storage warehouse to a bonded manufacturing warehouse shall be followed so far as applicable.
(2) In the case of transportation to another port, the transportation entry shall show the quantity of metal with- drawn the wastage applicable thereto,
and the imported material from which such metal was produced, together with any dutiable metal charged on entry.
§ 19.21 Smelting and refining in sepa- rate establishments.
(a) If the operations of smelting and refining are not carried on in the same establishment, the smelted and unrefined products obtained from the smelting of imported materials in a bonded smelting warehouse may be re- moved therefrom for shipment to a bonded refining warehouse located at the same or another port under the general procedure for transfer from one bonded warehouse to another.
(b) When the transfer is to a bonded refining warehouse located at another port, the smelted and unrefined prod- ucts or bullion obtained from the smelting of the imported material shall be weighed, sampled, and assayed before withdrawal, the sampling to be performed under Government super- vision in accordance with § 19.4 and the commercial practice in effect at the plant. A report of sampling, weight, and assay of transferred material shall be maintained for 5 years after liquida- tion of the warehouse entry.
(c) The withdrawal for transportation shall show the gross weight of the smelted and unrefined products with- drawn, the weight of the dutiable metal contained therein, the wastage applicable thereto and the duties prop- erly chargeable on the withdrawn prod- ucts as shown by the import entry.
(d) The rewarehouse entry covering the smelted and unrefined products at the bonded refining warehouse to which they are transferred shall be made out in accordance with the weights and duties shown on the with- drawal for transportation.
(e) Upon withdrawal of the metal from the bonded refining warehouse for export, the warehouse account of the refining warehouse shall be credited with the amount of metal so with- drawn, plus the refining wastage pre- scribed for said refining warehouse, plus the smelting wastage prescribed for the bonded smelting warehouse in which the smelted and unrefined prod- ucts were produced, together with the amount of any dutiable metals entirely
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lost in the smelting or refining, or both. However, when the metal is with- drawn for consumption, duty shall be collected on an amount of metal-bear- ing materials in their condition as im- ported equivalent to that from which such metal would be producible. No al- lowance for either smelting or refining wastage shall be permitted, except where the metal is withdrawn from a Customs warehouse other than a bond- ed smelting and refining warehouse.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 82–204, 47 FR 49374, Nov. 1, 1982; T.D. 84– 213, 49 FR 41170, Oct. 19, 1984]
§ 19.22 Withdrawal of metal refined in part from imported crude metal and in part from crude metal pro- duced from imported materials.
Upon withdrawal for exportation of metal from a bonded warehouse en- gaged in refining, or smelting and re- fining, part of which metal was ob- tained from imported crude metal and part from crude metal produced by smelting imported materials, the ware- house account shall be credited with the quantity of metal so withdrawn, plus (a) the refining wastage allowance prescribed for that establishment, and (b) the smelting wastage allowance prescribed for the establishment in which the imported materials were smelted, and (c) any dutiable metals shown on the warehouse entry or the rewarehouse entry filed at the first- mentioned warehouse which have been lost and are attributable to the ex- ported product. However, upon with- drawal of such refined metal for con- sumption, no allowance shall be made for wastage except where the with- drawal is made from a bonded Customs warehouse other than a bonded smelt- ing and refining warehouse.
§ 19.23 Withdrawal for exportation from one port to be credited on warehouse entry account at an- other port.
On exportation of metal pursuant to the provisions of section 312(b)(1), Tar- iff Act of 1930, as amended, the general procedure covering warehouse with- drawals for exportation shall be fol- lowed. The proprietor of the plant from which the withdrawal is made shall prepare a sufficient number of copies of
withdrawals on Customs Form 7512, in addition to any other copies required by the regulations, to enable the direc- tor of the port of withdrawal to for- ward a copy to the director of each other port where credit is to be applied. Such withdrawals shall designate the plant or plants which are to receive the credit, shall specify the warehouse entry number or numbers to which the credit is to be applied, and shall state the quantity of dutiable metal which is to be applied to each warehouse entry specified, and when any of the credits specified represent the last withdrawal against a particular warehouse entry, the words ‘‘final withdrawal’’ shall be shown on the withdrawal. When two or more plants nearest a given port are designated to receive credit, sufficient copies of the withdrawals shall be pre- pared to cover each such plant and entry. If at the time of withdrawal the warehouse proprietor does not know the plants or warehouse entry numbers which are to be credited with the with- drawal, or the metallic content of the dutiable metal being exported, the preparation of the before-mentioned copies of Customs Form 7512 may be postponed for a period of not longer than 30 days from the date of the move- ment of the dutiable metal from the plant. In such cases, a so-called memo- randum withdrawal, in the number of copies provided for in § 144.37 of this chapter, may be used in the first in- stance for the purpose of obtaining the required Customs record of the expor- tation of the dutiable metal under Cus- toms supervision. All memorandum withdrawals shall be conspicuously en- dorsed ‘‘Memorandum Withdrawal.’’
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973; T.D. 89– 1, 53 FR 51254, Dec. 21, 1988]
§ 19.24 Theoretical transfer without physical shipment of dutiable metal.
(a) Transfer may be made from one port of entry to another by a with- drawal for transportation and reware- house executed in regular form without physical shipment of the metal, pro- vided enough like metal in any form is on hand at the establishment to which the theoretical transfer is made to sat- isfy the new bond obligations.
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(b) The wastage allowance estab- lished for the plant from which the original withdrawal for transportation was made shall be shown on the trans- fer withdrawal and set up as a part of the charge against the bond at the plant to which the metal was theoreti- cally transferred. Such wastage shall govern and be the basis for allowance when metal is withdrawn from the plant where the theoretical rewarehousing was affected.
§ 19.25 Credit to be applied under var- ious forms of withdrawals.
(a) The warehouse entry account of the plant designated in the withdrawal to receive credit for the exportation shall be credited with the following:
(1) The quantity of dutiable metal ex- ported.
(2) The wastage in effect on the date of entry at the plant of initial treat- ment of such materials.
(3) The proportion of any other duti- able metals in the importation being credited which were lost at the said plant in the production of a quantity of dutiable metal equal to that exported.
(b) If credit is being applied to a charge set up by a theoretical transfer under § 19.24 at the plant designated in the withdrawal to receive the credit, the wastages to be applied shall be those set up at such plant in connec- tion with the theoretical transfer, irre- spective of the date of the withdrawal.
(c) On the transfer of dutiable metal to a bonded storage warehouse, credit shall be applied at the plant designated in the withdrawal to receive the credit in the manner provided for in para- graph (a) of this section with respect to withdrawals for exportation. The charge so credited at the plant shall be set up on the warehouse entry account of the storage warehouse to which the dutiable metal has been transferred. In the case of the withdrawal of dutiable metal for transfer to a bonded manu- facturing warehouse, credit shall be ap- plied in the same manner at the plant designated in the withdrawal to receive the credit, but the charge set upon the warehouse entry account of the bonded manufacturing warehouse shall be lim- ited to the quantity of dutiable metal transferred to such warehouse.
SPACE BONDED FOR THE STORAGE OF WHEAT
§ 19.29 Sealing of bins or other bonded space.
The outlets to all bins or other space bonded for the storage of imported wheat shall be sealed by affixing locks or in bond seals to the rope or chain which controls the gear mechanism for opening the outlets, or such other method which will effectively prevent the removal of, or access to, the wheat in the bonded space except under such supervision as required by §§ 19.4 and 101.2(c) of this chapter.
[T.D. 82–204, 47 FR 49374, Nov. 1, 1982, as amended by T.D. 98–22, 63 FR 11825, Mar. 11, 1998]
§ 19.30 Domestic wheat not to be al- lowed in bonded space.
The presence of domestic wheat in space bonded for the storage of im- ported wheat shall not be permitted.
§ 19.31 Bulk wheat of different classes and grades not to be commingled in storage.
All wheat shall be stored by class and grade according to the Official Grain Standards of the United States or the official standards of the Canadian Board of Grain Commissioners, in bins, compartments, or other enclosed spaces identified by clearly distin- guishable insignia securely affixed thereto, so as to facilitate the mainte- nance of identity of the wheat. There shall be no mixing or commingling of different classes or grades of wheat in the same bin, battery of bins, or other bonded space. If the wheat is stored in bags or other transportation con- tainers, such bags or containers shall be so marked and so placed in the warehouse that the identity of the wheat will not be lost while in storage, to permit easy access to all lots, and to facilitate inspecting, sampling, and the identification of each lot.
CROSS REFERENCE: For regulations relating to the Official U.S. Standards for Grain, see 7 CFR part 810.
§ 19.32 Wheat manipulation; recondi- tioning.
(a) The mixing, blending, or commin- gling of imported wheat and domestic
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19 CFR Ch. I (4–1–12 Edition)§ 19.33
wheat, or of imported wheat of dif- ferent classes and grades, as an inci- dent of transportation or as an inci- dent of exportation under transpor- tation and exportation entries, direct export entries, or withdrawals for ex- portation shall not be permitted. Ap- plications for permission to manipu- late wheat under the provisions of sec- tion 562, Tariff Act of 1930, as amended, shall be approved only after the con- currence of all interested Federal agen- cies has been furnished by the appli- cant.
(b) Where it is found that elevating, screening, blowing, fumigating, or dry- ing of the wheat is essential to keep it in condition, the proprietor of the warehouse shall submit an application in writing to the port director. All such operations shall be performed under Customs supervision adequate to pre- clude unauthorized access to the wheat.
§ 19.33 General order; transportation in bond.
The provisions of §§ 19.29 through 19.32 shall be applicable to those parts of any premises in which imported wheat is stored in a general-order sta- tus, or stored pending exportation under an entry for exportation or for transportation and exportation.
§ 19.34 Customs supervision. Port directors shall exercise such su-
pervision and control over the trans- actions covered by §§ 19.29 through 19.32 as will insure that there will be no un- authorized access to the imported wheat and no unauthorized mixing, blending, or commingling of such im- ported wheat. Importers, exporters, proprietors of Customs bonded ware- houses, bonded common carriers, and others handling imported wheat in con- tinuous Customs custody shall main- tain such records as will enable Cus- toms officers to verify the handling to which the imported wheat has been subjected, and to establish whether there has been a proper accounting to Customs for any increase in the quan- tity of the wheat or shortages resulting from shrinkage or other factors. These records shall be retained for a period of 5 years from the date of the trans- action. Port directors shall from time
to time request the appropriate Cus- toms officer to examine such records of importers, exporters, warehouse propri- etors, bonded common carriers, and others handling such wheat in contin- uous Customs custody as may be deemed necessary to ascertain whether there has been any failure to comply with the applicable Customs laws and regulations.
[28 FR 14763, Dec. 31, 1963, as amended by T.D. 79–159, 44 FR 31968, June 4, 1979; T.D. 82– 204, 47 FR 49374, Nov. 1, 1982]
DUTY-FREE STORES
SOURCE: Sections 19.35 through 19.39 issued by T.D. 92–81, 57 FR 37698, Aug. 20, 1992, un- less otherwise noted.
§ 19.35 Establishment of duty-free stores (Class 9 warehouses).
(a) General. A class 9 warehouse (duty-free store) may be established for exportation of conditionally duty-free merchandise by individuals departing the Customs territory, inclusive of for- eign trade zones, by aircraft, vessel, or departing directly by vehicle or on foot to a contiguous country. Such articles must accompany the individual on his person or in the same aircraft, vessel, or vehicle in which the individual de- parts. ‘‘Conditionally duty-free mer- chandise’’ means merchandise sold by a duty-free store on which duties and/or internal revenue taxes (where applica- ble) have not been paid. Except insofar as the provisions of this section and §§ 19.36–19.39 are more specific, the pro- cedures for bonded warehouses apply to duty-free stores (Class 9 warehouses).
(b) Location. A duty-free store (class 9 warehouse) may be established or lo- cated only:
(1) Within the same port of entry from which a purchaser of duty-free store merchandise departs the Customs territory;
(2) Within 25 statute miles from the exit point through which a purchaser of duty-free store merchandise departs the Customs territory; or
(3) In the case of an airport store, within any staffed port of entry, or within 25 statute miles from any staffed port of entry.
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(c) Integrated locations. A Class 9 warehouse with multiple noncontig- uous sales and crib locations (see § 19.37(a) of this part) containing condi- tionally duty-free merchandise and re- quested by the proprietor may be treat- ed by Customs as one location if:
(1) The proprietor can provide Cus- toms upon demand with the proper on- hand balance of each inventory item in each storage location, sales room, crib, mobile crib, delivery cart, or other conveyance or noncontiguous location; and
(2) The recordkeeping system is cen- tralized up to the point where a sale is made so as to automatically reduce the sale quantity by location from central- ized inventory or inventory records must be updated no less frequently than at the end of each business day to reflect that day’s activity.
(d) Exit point. The exit point referred to in paragraph (b) of this section means an area in close proximity to an actual exit for departing from the Cus- toms territory, including the gate holding area in the case of an airport, but only if there is reasonable assur- ance that conditionally duty-free mer- chandise delivered in the gate holding area will be exported from the Customs territory. The exit point in the case of a land border or seaport duty-free store is the point at which a departing indi- vidual has no practical alternative to continuing on to a foreign country or to returning to Customs territory by passing through a U.S. Customs inspec- tion facility. The port director’s deci- sion as to what constitutes the exit point or reasonable assurance of expor- tation in a given situation is final.
(e) Notice to customers. Class 9 ware- house proprietors shall display in prominent places where they will be noticed and read by customers signs which state clearly that any condi- tionally duty-free merchandise pur- chased from the store:
(1) Has not been subjected to any U.S. Federal duty or tax;
(2) If brought back to the United States must be declared and is subject to U.S. Federal duty and tax with per- sonal exemption; and,
(3) Is subject to the customs laws and regulations, including possible duties
and taxes, of any foreign country to which it is taken.
(f) Security of sales rooms and cribs. The physical and procedural security requirements of § 19.4(b)(6) of this part shall be applied to the security of the sales rooms and cribs by the port direc- tor. The proprietor shall establish pro- cedures to safeguard the merchandise so as to accommodate the movement of purchasers and prospective purchasers of conditionally duty-free merchandise contained in duty-free sales rooms and cribs.
(g) Approval of governmental authority. If a state or local or other govern- mental authority, incident to its juris- diction over any airport, seaport, or other exit point facility, requires that a concession or other form of approval be obtained from that authority with respect to the operation of a duty-free store under which merchandise is deliv- ered to or through such facility for ex- portation, merchandise incident to such operation may not be withdrawn for exportation and transferred to or through such facility unless the oper- ator of the duty-free store dem- onstrates to the port director that the concession or approval required for the enterprise has been obtained.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 97–19, 62 FR 15839, Apr. 3, 1997; T.D. 00–33, 65 FR 31261, May 17, 2000]
§ 19.36 Requirements for duty-free store operations.
(a) Withdrawals. Merchandise with- drawn under the sales ticket procedure in § 144.37(h) of this chapter may be de- livered only to individuals departing from the customs territory for expor- tation or to persons and organizations for use as specified in subpart I, part 148, of this chapter. Withdrawals of other kinds may be made from Class 9 warehouses, but only through separate withdrawals (or withdrawals under blanket permit for vessel or aircraft supplies) under an approved permit of the port director as provided in § 144.39 of this chapter.
(b) Procedures required. Each duty- free store must establish, maintain, and follow written procedures to pro- vide reasonable assurance to the port director that conditionally duty-free merchandise purchased therein will be
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exported from the customs territory. A copy of any change in the procedure will be provided to the port director be- fore it is implemented. However, re- ceipt by CBP of the procedures of any change thereto must not be construed as approval by CBP of the procedures. The port director is responsible for en- suring that each enterprise has estab- lished guidelines with CBP and is com- plying with those guidelines, giving as- surance that proper supervision exists when delivery is made to the purchaser at or before the exit point. The port di- rector may at any time require any change in the procedures deemed nec- essary for assurance of exportation.
(c) Personal-use restrictions. Any duty- free store which delivers conditionally duty-free merchandise to purchasers at an airport exit point must establish, maintain, and enforce written restric- tions on the sale of conditionally duty- free merchandise to any one individual to personal-use quantities. Personal- use quantities means quantities that are only suitable for uses other than resale, and includes reasonable quan- tities for household or family consump- tion as well as for gifts to others. Pro- prietors will not knowingly sell or de- liver conditionally duty-free merchan- dise in any quantity to any individual for the purpose of resale. A copy of the restrictions and of any change thereto must be provided to the port director prior to implementation. However, re- ceipt of the written restrictions by CBP will not be construed as approval by CBP of the restrictions. The port di- rector may require any change in the restrictions deemed necessary to con- form to the personal-use quantity re- striction of this section.
(d) Reimported merchandise. Merchan- dise purchased in a duty-free store is not eligible for exemption from duty, or tax where applicable, under chapter 98, subchapter IV, Harmonized Tariff Schedule, if it is brought back to the United States after exportation. To en- force this restriction, the port director may require the proprietor to mark or otherwise place a distinguishing identi- fier on individual items of merchandise to indicate the items were sold in a U.S. duty-free store, if a pattern is dis- closed in which such items are being brought back to the United States
without declaration. A pattern of undeclared reimportations means a number of instances over a period of time and not isolated instances of un- related violations. Any such marking required by the port director will be in- conspicuous to the purchaser and will not detract from the value of the mer- chandise. The marking requirement will be limited to the items or types of merchandise noted in the pattern, and will not be extended to all merchandise of the responsible store proprietor un- less all or most items are part of the pattern.
(e) Merchandise eligible for warehousing in duty-free stores (Class 9 Warehouses)—(1) In General. Condi- tionally duty-free merchandise and other merchandise (domestic merchan- dise and merchandise which was pre- viously entered or withdrawn for con- sumption and brought into a duty-free store (Class 9 warehouse) for display and sale or for delivery to purchasers can be warehoused in a duty-free store (Class 9 warehouse), but the condi- tionally duty-free merchandise and other merchandise must be physically segregated from one another, unless one of the following exceptions apply.
(2) Marking exception to physical seg- regation. Merchandise may be identified or marked ‘‘DUTY-PAID’’ or ‘‘U.S.-OR- IGIN’’, or similar markings, as applica- ble, to enable CBP officers to easily distinguish conditionally duty-free merchandise from other merchandise in the sales or crib area.
(3) Electronic inventory exception to physical segregation. If the proprietor has an electronic inventory system ca- pable of immediately identifying condi- tionally duty-free merchandise from other merchandise, the proprietor need not physically separate conditionally duty-free merchandise from other mer- chandise or mark the merchandise.
(f) Sale of merchandise. Conditionally duty-free merchandise for exportation at airport or seaport exit points may be sold and delivered only to pur- chasers who display valid tickets, or in the case of chartered or for-hire flights that have not issued tickets, other proof of impending departure from the customs territory, and to crewmembers who have been engaged for a flight or
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voyage departing directly from the cus- toms territory with no intermediate stops in the U.S.
(g) Inventory procedure. Duty-free store proprietors must maintain, at the duty-free store or at another location approved by the port director, a cur- rent inventory separately for each storage area, crib, and sales area con- taining conditionally duty-free mer- chandise by warehouse entry, or by unique identifier where permitted by the port director. Proprietors must as- sure that CBP has ready access to those records, and that the records are stored in such a way as to keep trans- actions of multiple facilities separated. The inventory must be reconcilable with the accounting and inventory records and the permit file folder re- quirements of § 19.12 (d), (e) and (f) of this part. Proprietors are subject also to the recordkeeping requirements of other paragraphs of § 19.12, as well as those of §§ 19.6(d), 19.37(d), 19.39(d) of this part, and 144.37(h)(3) of this chap- ter.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 97–19, 62 FR 15840, Apr. 3, 1997; CBP Doc. 09–48, 74 FR 68685, Dec. 29, 2009]
§ 19.37 Crib operations. (a) Crib. A crib means a bonded area,
separate from the storage area of a Class 9 warehouse, for the retention of a supply of articles for delivery to per- sons departing from the United States. It shall be located beyond the exit point, unless exception has been made under § 19.39 (a) and (b) of this part. The crib may be a permanent location or a mobile facility which is periodically moved to a location beyond the exit point. The quantity of goods in the crib may be an amount requested by the proprietor which is commercially nec- essary for the delivery operations for a period, if approved by the port director. The port director may increase or de- crease the quantity as deemed nec- essary for the protection of the revenue and proper administration of U.S. laws and regulations, or may order the re- turn to the storage area of goods re- maining unsold.
(b) Delivery and removal of merchan- dise. Conditionally duty-free merchan- dise shall be delivered to the crib, or
removed from the crib for return to the storage area, under the procedures in subpart D, part 125, and § 144.34(a), of this chapter, or under a local control system approved by the port director wherein any discrepancy found in the merchandise will be treated as if it oc- curred in the bonded warehouse. If de- livery is made by licensed cartman, cartage vehicles shall be conspicuously marked as provided in § 112.27 of this chapter.
(c) Delivery vehicles. Vehicles, includ- ing mobile cribs, containing condi- tionally duty-free merchandise for de- livery to or from a crib shall carry a listing of the articles contained there- in. The proprietor shall provide, upon request by Customs, a transfer docu- ment sufficient to account for each movement of inventory among its loca- tions. The merchandise in the vehicles shall be subject to inspection by Cus- toms.
(d) Retention of records. Class 9 ware- house proprietors shall maintain records of conditionally duty-free mer- chandise transported beyond the exit point and returned therefrom, and Cus- toms permits for such movements, for not less than 5 years after exportation of the articles. Such records need not be placed in permit file folders but must be filed by date of movement, destination site and warehouse entry number or by unique identifier where permitted by the port director (see § 19.36(g)).
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 97–19, 62 FR 15840, Apr. 3, 1997]
§ 19.38 Supervision of exportation.
(a) Sales ticket withdrawals. Condi- tionally duty-free merchandise with- drawn under the sales ticket procedure for exportation shall be exported only under Customs supervision as provided in this section and § 19.39 of this part. General Customs supervision shall be exercised as provided in § 19.4 of this part and § 101.2(c) of this chapter, and may consist of spot checks of expor- tation transactions, examination of ar- ticles being exported, and audits of the proprietor’s records.
(b) Supervision of ATF bonded exports. Customs officers may conduct general
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supervision of exportations of ciga- rettes and cigars from ATF export bonded warehouses (see 27 CFR part 290) in conjunction with exportation from duty-free stores.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 98–22, 63 FR 11825, Mar. 11, 1998]
§ 19.39 Delivery for exportation. (a) Delivery to land border locations—
(1) Land border locations. Land border lo- cation means an exit point (see § 19.35(d)) from which individuals depart to a contiguous country by vehicle or on foot by bridge, tunnel, highway, walkway, or by ferry across a boundary lake or river, but not including depar- ture to a contiguous country by air or sea. Deliveries from a duty-free store for exportation from such locations shall be made to the purchaser only be- yond the exit point, except as specified in paragraph (a)(2) of this section.
(2) Delivery at or before exit point. De- livery of such merchandise may be made at or before the exit point of any location approved by Customs as of Au- gust 23, 1988. In such cases, delivery shall be done under the physical super- vision of a Customs officer, or in ac- cordance with established guidelines as required by § 19.36(b) of this part. The officer shall sign the sales ticket certi- fying exportation and return it to the proprietor for retention in the files. The port director may also require that the warehouse proprietor have the per- son receiving the article sign the same copy to certify receipt.
(b) Delivery to seaport locations—(1) Seaport location. Seaport location means an exit point (see § 19.35(d)) from which conditionally duty-free merchandise is delivered to departing individuals for exportation by vessel of more than 5 net tons which is departing directly from the Customs territory to touch and trade in a foreign country. Deliv- eries for exportation from such loca- tions may be made only beyond the exit point, except as specified in para- graph (b)(2) of this section.
(2) Delivery at or before exit point. De- livery of such merchandise may be made at or before the exit point in the case of any locations approved by Cus- toms as of August 23, 1988. In such cases, delivery shall be done under the
physical supervision of a Customs offi- cer, or in accordance with established guidelines as required by § 19.36(b) of this part. The officer shall sign the sales ticket certifying exportation and return it to the proprietor for reten- tion in the files. The port director may also require that the warehouse propri- etor have the person receiving the arti- cle sign the same copy to certify re- ceipt.
(c) Delivery to airport locations. Airport location means an exit point from which conditionally duty-free mer- chandise is delivered to departing indi- viduals for exportation on a scheduled, chartered, or ‘‘for-hire’’ airline. Deliv- ery of conditionally duty-free mer- chandise to be exported from such loca- tions may be made by one of the fol- lowing five procedures:
(1) Delivery in sterile area. A sterile area is an area that is within the air- port and to which access is restricted to those passengers departing from Customs territory. In such cases, deliv- ery will be made directly to the pur- chaser (or a family member or com- panion travelling with the purchaser) for carrying aboard the aircraft. This method of delivery is not authorized if there is any mixture in the sterile area of individuals arriving from a foreign country, or individuals arriving or de- parting on a domestic flight, with indi- viduals departing for foreign;
(2) Passenger delivery. Merchandise may be delivered by the cartman or duty-free store operator to the pur- chaser (or a family member or com- panion travelling with the purchaser) at or beyond the exit point for the flight. The port director may require the exit point to be delimited by mark- ing of its boundaries, or require proper supervision in accordance with estab- lished guidelines as required by § 19.36(b) of this part, if needed for rea- sonable assurance that conditionally duty-free merchandise will be exported with the purchaser or a family member or companion.
(3) Aircraft delivery. The merchandise will be delivered by a licensed cartman for lading as baggage directly on the
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aircraft on which the passenger will de- part. The airline will release the mer- chandise to the purchaser when the air- craft has departed for its foreign des- tination;
(4) Unit-load delivery. Merchandise may be sold to passengers departing from the United States at a prior port of boarding on flights proceeding to a foreign destination which are required to clear with intermediate stops in the United States, provided that all of the following conditions are met:
(i) Sales may be made only to pas- sengers holding a through ticket on the same flight, with no stopover privileges in the United States, to a foreign des- tination;
(ii) Merchandise shall be placed on the aircraft on which the passenger de- parts the United States for carriage as passenger baggage;
(iii) Merchandise shall be placed in a container sealed with Customs seals. The sealed container(s) may be placed in the baggage compartment or on the passenger deck of the aircraft. Con- tainers stowed in baggage compart- ments may, with Customs permission, be transferred to the passenger deck at an intermediate or final stop in the United States. The seal numbers shall be placed on the face of the aircraft general declaration;
(iv) A lading manifest list, in dupli- cate, of conditionally duty-free mer- chandise sold to passengers aboard the particular flight will be prepared by the proprietor. An authorized airline representative will sign for receipt, with one copy to be retained by the air- line for presentation to Customs as re- quested at the intermediate or final port, and the duplicate copy to be re- turned to and retained by the propri- etor for record purposes;
(v) The seals shall not be broken nor shall any of the purchases be delivered until the aircraft is secured for depar- ture to its foreign destination at the last port. In the event that the seals are broken before that time, or the merchandise is not exported for any reason and not returned to Customs custody, demand shall be made against the importation and entry bond of the importer of record;
(5) Cancelled or aborted flights or no- show passengers—(i) Cancelled or aborted
flights. The proprietor shall, upon re- quest, make available to Customs the purchaser’s name, the purchaser’s air- line ticket number and the identity and quantity of the merchandise deliv- ered by the proprietor to the purchaser (if the merchandise was delivered to the airline rather than the passenger, the name of the airline employee to whom the merchandise was delivered), and the date and time of that delivery in lieu of retrieving the merchandise for safekeeping until the purchaser ac- tually departs.
(ii) No-show passengers. A proprietor who delivers merchandise directly to an airline for delivery to a passenger who does not board the flight shall es- tablish a procedure to obtain redeliv- ery of that merchandise from the air- line.
(d) Lading manifest lists; certificate of exportation. The proprietor shall retain copies of lading manifest lists and cer- tificates of lading for exportation in its files for not less than 5 years after ex- portation by warehouse entry number or by unique identifier where permitted by the port director (see § 19.36(g)).
(e) Delivery method. Delivery of condi- tionally duty-free merchandise to per- sons for exportation will be made by li- censed cartmen or bonded carriers under the procedures in subpart D, part 125, and § 144.34(a), of this chapter, or under a local control system approved by the port director wherein any dis- crepancy found in the merchandise will be treated as if it occurred in the bond- ed warehouse.
(f) Return of merchandise to stock. Whenever merchandise is withdrawn under the sales ticket procedure of § 144.37(h) of this chapter, but is un- deliverable or is rejected by the pur- chaser, the merchandise may be re- turned to the duty-free store and the records, including the sales ticket and sales ticket register, amended to re- flect the quantity returned to stock.
[T.D. 92–81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 97–19, 62 FR 15840, Apr. 3, 1997]
CONTAINER STATIONS
SOURCE: Sections 19.40 through 19.49 issued by T.D. 72–68, 37 FR 4186, Feb. 29, 1972, unless otherwise noted.
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§ 19.40 Establishment, relocation or al- teration of container stations.
(a) A container station, independent of the importing carrier, may be estab- lished at any port or portion of a port, or any other area under the jurisdic- tion of a port director upon the filing of an application therefore and its ap- proval by the port director and the posting of a bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter in such amount as the port director shall re- quire.
(b) Alterations to or relocation of a container station may be made with the permission of the director of the port in which the facility is located, or if not within a port’s limits, nearest to where the facility is located. An appli- cation to alter or relocate a container station shall be accompanied by the fee required by paragraph (c) of this sec- tion.
(c)(1) Customs shall charge a fee to establish, relocate or alter a container station, and publish a general notice in the FEDERAL REGISTER and Customs Bulletin setting forth a fee schedule, to be revised periodically to reflect in- creased costs, to establish, relocate or alter the container station. The pub- lished revised fee schedule shall remain in effect until changed.
(2) The fee, rounded off to the nearest dollar, shall be calculated in accord- ance with § 24.17(d) of this chapter. The fee shall be based upon the amount of time the average service requires of the Customs officers performing the service.
[T.D. 72–68, 37 FR 4186, Feb. 29, 1972, as amended by T.D. 82–135, 47 FR 32416, July 27, 1982; T.D. 83–56, 48 FR 9854, Mar. 9, 1983; T.D. 84–213, 49 FR 41170, Oct. 19, 1984; T.D. 85–72, 50 FR 15885, Apr. 23, 1985; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 19.41 Movement of containerized cargo to a container station.
Containerized cargo may be moved from the place of unlading to a des- ignated container station, or may be received directly at the container sta- tion from a bonded carrier after trans- portation in-bond, before the filing of an entry of merchandise therefor or the permitting thereof (see subpart A of part 158 of this chapter) for the purpose of breaking bulk and redelivery of the cargo. In either circumstance, excess loose cargo, as part of containerized cargo, may accompany the container to the container station.
[T.D. 82–135, 47 FR 32416, July 27, 1982]
§ 19.42 Application for transfer of mer- chandise.
The container station operator may file an application for the transfer of a container intact to the station. The ap- plication shall be in duplicate in the following or substantially similar for- mat:
U.S. CUSTOMS SERVICE
APPLICATION AND PERMIT TO TRANSFER CON- TAINERIZED CARGO TO A CONTAINER STA- TION
Date llllll Application is made to transfer the con-
tainers and their contents listed below which arrived on llll (Carrier) on llll (Date) at Pier ll to the llll (Container station)
An abstract of the carrier’s manifest cov- ering the containers by B/L No., marks, numbers, contents, consignee, etc., is at- tached hereto.
LIST OF CONTAINERS BY MARKS AND NUMBERS ONLY
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
——————————————————————— (Signature of authorized
agent of container station)
We concur: llllllllllllllllllllllll
(Signature of agent of importing carrier)
transfer record
Delivered to llllllllllll (cartman), C.H.L. No. ll in apparent good order and condition except as noted:
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Truck No. Containernumbers Date Signature of inspector Signature of cartman Received signature con-
tainer operator
§ 19.43 Filing of application. The application, listing the con-
tainers by marks and numbers, may be filed at the customhouse or with the Customs inspector at the place where the container is unladen, or for mer- chandise transported in-bond, at the bonded carrier’s facility, as designated by the port director.
[T.D. 82–135, 47 FR 32416, July 27, 1982]
§ 19.44 Carrier responsibility. (a) If merchandise is transferred di-
rectly to a container station from an importing carrier, the importing car- rier shall remain liable under the terms of its bond for the proper safe- keeping and delivery of the merchan- dise until it is formally receipted for by the container station operator.
(b) If merchandise is transferred di- rectly from a bonded carrier’s facility to a container station or is delivered directly to the container station by a bonded carrier, the bonded carrier shall remain liable under the terms of his bond for the proper safekeeping and de- livery of the merchandise until it is formally receipted for by the container station operator.
(c) In either case under paragraph (a) or (b) of this section, the importing carrier and the bonded carrier, as ap- plicable, shall be responsible for assur- ing that the provisions of subpart A, part 158 of this chapter, relating to quantity determinations, and discrep- ancy reporting and accountability are followed.
(d) The importing carrier and the bonded carrier, as applicable, shall in- dicate concurrence in the transfer of the merchandise either by signing the application for transfer or by phys- ically turning the merchandise over to the operator.
(e) The importing carrier and the bonded carrier, as applicable, shall be
responsible for ascertaining that the person to whom a container is deliv- ered for transfer to the container sta- tion is an authorized representative of the operator.
(f) The importing carrier and the bonded carrier, as applicable, shall fur- nish an abstract manifest showing the bill of lading number, the marks and numbers of the container, and the usual manifest description for each shipment in the container.
(g) If a container station operator chooses to collect merchandise from within the boundaries of the district (see definition of ‘‘district’’ at § 112.1) in which the container station is lo- cated and transport the merchandise to his container station, the container station operator must formally receipt for the merchandise at the time of col- lection, and he becomes liable under his bond for proper safekeeping of the merchandise at that time.
[T.D. 82–135, 47 FR 32416, July 27, 1982, as amended by T.D. 94–81, 59 FR 51494, Oct. 12, 1994; T.D. 95–77, 60 FR 50010, Sept. 27, 1995]
§ 19.45 Transfer of merchandise, ap- proval and method.
Approval of the application by the port director shall serve as a permit to transfer the container and its contents to the station. Except when the con- tainer station operator is moving the merchandise to his own station by his own vehicle, the merchandise may only be transferred to a container station by a bonded cartman or bonded carrier. The station operator, cartman or car- rier shall receipt for the merchandise on both copies of the application.
[T.D. 74–54, 39 FR 4876, Feb. 18, 1974]
§ 19.46 Employee lists. A permit shall not be granted to an
operator to transfer a container or con- tainers to a container station, if the
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operator, within 30 calendar days after the date of receipt of a written demand by the port director, does not furnish a written list of names, addresses, social security numbers, and dates and places of birth of persons employed by him in connection with the movement, re- ceipt, storage or delivery of imported merchandise. Having furnished such a list, no new permit shall be issued to an operator who has not within 10 cal- endar days after the employment of any new personnel employed in connec- tion with the movement, receipt, stor- age, or delivery of imported merchan- dise, advised the port director in writ- ing of the names, addresses, social se- curity numbers, and dates and places of birth of such new employees. The oper- ator shall, within 10 calendar days, ad- vise the port director if the employ- ment of any employee is terminated. A person shall not be deemed to be em- ployed by an operator if he is an officer or employee of an independent con- tractor engaged by the operator to move, receive, store, deliver, or other- wise handle imported merchandise.
§ 19.47 Security.
The space to be used for the purposes of breaking bulk and delivering cargo shall be properly secured against ac- cess by unauthorized persons, including persons not on the list of current em- ployees furnished to the port director by the container station operator, the principal on the bond, as required by § 19.46. A suitable working and office space for the use of Customs officers and employees performing functions in the area shall also be provided.
§ 19.48 Suspension or revocation of the privilege of operating a container station; hearings.
(a) Grounds for suspension or revoca- tion. The port director may revoke or suspend the privilege of operating a container station if:
(1) The privilege was obtained through fraud or the misstatement of a material fact;
(2) The container station operator re- fuses or neglects to obey any proper order of a Customs officer or any Cus- toms order, rule, or regulation relative to the operation of a container station;
(3) The container station operator or an officer of a corporation which has been granted the privilege of operating a container station is convicted of or has committed acts which would con- stitute a felony, or a misdemeanor in- volving theft, smuggling, or a theft- connected crime. Any change in the employment status of the corporate of- ficer (e.g., discharge, resignation, de- motion, or promotion) prior to convic- tion of a felony or prior to conviction of a misdemeanor involving theft, smuggling, or a theft-connected crime, resulting from acts committed while a corporate officer, will not preclude ap- plication of this provision;
(4) The container station operator fails to retain merchandise which has been designated for examination;
(5) The container station operator does not provide secure facilities or properly safeguard merchandise within the container station;
(6) The container station operator fails to furnish a current list of names, addresses, and other information re- quired by § 19.46; or
(7) The bond required by § 19.40 is de- termined to be insufficient in amount or lacking sufficient sureties, and a satisfactory new bond with good and sufficient sureties is not furnished within a reasonable time.
(b) Notice and appeal. The port direc- tor shall suspend or revoke the privi- lege of operating a container station by serving notice of the proposed action in writing upon the container station op- erator. The notice shall be in the form of a statement specifically setting forth the grounds for revocation or sus- pension of the privilege and shall be final and conclusive upon the container station operator unless he shall file with the port director a written notice of appeal. The container station oper- ator may file a written notice of appeal from the revocation or suspension within 10 days following receipt of the notice of revocation or suspension. The notice of appeal shall be filed in dupli- cate and shall set forth the response of the container station operator to the statement of the port director. The container station operator, in his no- tice of appeal, may request a hearing.
(c) Hearing on appeal. If a hearing is requested, it shall be held before a
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hearing officer designated by the Sec- retary of the Treasury or his designee within 30 days following application therefor. The container station oper- ator shall be notified of the time and place of the hearing at least 5 days prior thereto. The container station operator may be represented by coun- sel at the revocation or suspension hearing. All testimony in the pro- ceeding shall be subject to cross-exam- ination. A stenographic record of any such proceeding shall be made and a copy thereof shall be delivered to the container station operator. At the con- clusion of such proceeding or review of a written appeal, the hearing officer or the port director, as the case may be, shall forthwith transmit all papers and the stenographic record of any hearing, to the Commissioner of Customs, to- gether with his recommendation for final action. Following a hearing and within 10 calendar days after delivery of a copy of the stenographic record, the container station operator may submit to the Commissioner of Cus- toms, in writing, additional views and arguments on the basis of such record. If neither the container station oper- ator nor his attorney appear for a scheduled hearing, the hearing officer shall conclude the hearing and trans- mit all papers with his recommenda- tion to the Commissioner of Customs. The Commissioner shall thereafter render his decision, in writing, stating his reasons therefor, with respect to the action proposed by the hearing offi- cer or the port director. Such decision shall be transmitted to the port direc- tor and served by him on the container station operator.
[T.D. 73–286, 38 FR 28289, Oct. 12, 1973, as amended by T.D. 88–63, 53 FR 40219, Oct. 14, 1988]
§ 19.49 Entry of containerized mer- chandise.
Merchandise not entered within the lay order period, or extension thereof, shall be placed in general order. The importing carrier shall issue carrier’s certificates for individual shipments in a container. Entries covering merchan- dise transferred to a container station shall clearly show that the merchan- dise is at the container station.
PART 24—CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
Sec. 24.1 Collection of Customs duties, taxes,
fees, interest, and other charges. 24.2 Persons authorized to receive Customs
collections. 24.3 Bills and accounts; receipts. 24.3a CBP bills; interest assessment; delin-
quency; notice to principal and surety. 24.4 Optional method for payment of esti-
mated import taxes on alcoholic bev- erages upon entry, or withdrawal from warehouse, for consumption.
24.5 Filing identification number. 24.11 Notice to importer or owner of in-
creased or additional duties, taxes, fees and interest.
24.12 Customs fees; charges for storage. 24.13 Car, compartment, and package seals;
kind, procurement. 24.13a Car, compartment, and package
seals; and fastenings; standards; accept- ance by Customs.
24.14 Salable Customs forms. 24.16 Overtime services; overtime com-
pensation and premium pay for Customs Officers; rate of compensation.
24.17 Reimbursable services of CBP employ- ees.
24.18 Preclearance of air travelers in a for- eign country; reimbursable cost.
24.21 Administrative overhead charges. 24.22 Fees for certain services. 24.23 Fees for processing merchandise. 24.24 Harbor maintenance fee. 24.25 Statement processing and Automated
Clearinghouse. 24.26 Automated Clearinghouse credit. 24.32 Claims; unpaid compensation of de-
ceased employees and death benefits. 24.34 Vouchers; vendors’ bills of sale; in-
voices. 24.36 Refunds of excessive duties, taxes, etc. 24.70 Claims; deceased or incompetent pub-
lic creditors. 24.71 Claims for personal injury or damages
to or loss of privately owned property. 24.72 Claims; set-off. 24.73 Miscellaneous claims.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701; Public Law 107–296, 116 Stat. 2135 (6 U.S.C. 1 et. seq.);
Section 24.1 also issued under 19 U.S.C. 197, 198, 1648;
Section 24.4 also issued under 19 U.S.C. 1623, 26 U.S.C. 5007, 5054, 5061, 7805;
Section 24.11 also issued under 19 U.S.C. 1485(d);
Section 24.12 also issued under 19 U.S.C. 1524, 46 U.S.C. 31302;
Section 24.14 also issued under 19 U.S.C. 1;
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Section 24.16 also issued under 19 U.S.C. 261, 267, 1450, 1451, 1452, 1623; 46 U.S.C. 2111, 2112;
Section 24.17 also issued under 19 U.S.C. 261, 267, 1450, 1451, 1452, 1456, 1524, 1557, 1562; 46 U.S.C. 2110, 2111, 2112;
Section 24.23 also issued under 19 U.S.C. 3332;
Section 24.32 also issued under 5 U.S.C. 5582, 5583;
Section 24.36 also issued under 26 U.S.C. 6423.
SOURCE: 28 FR 14808, Dec. 31, 1963, unless otherwise noted.
§ 24.1 Collection of Customs duties, taxes, fees, interest, and other charges.
(a) Except as provided in paragraph (b) of this section, the following proce- dure shall be observed in the collection of Customs duties, taxes, fees, interest, and other charges (see § 111.29(b) and 141.1(b) of this chapter):
(1) Any form of United States cur- rency or coin legally current at time of acceptance shall be accepted.
(2) Any bank draft, cashier’s check, or certified check drawn on a national or state bank or trust company of the United States or a bank in Puerto Rico or any possession of the United States if such draft or checks are acceptable for deposit by a Federal Reserve bank, branch Federal Reserve bank, or other designated depositary shall be accept- ed.
(3)(i) An uncertified check drawn by an interested party on a national or state bank or trust company of the United States or a bank in Puerto Rico or any possession of the United States if such checks are acceptable for de- posit by a Federal Reserve bank, branch Federal Reserve bank, or other designated depositary shall be accepted if there is on file with the port director a bond to secure the payment of the duties, taxes, fees, interest, or other charges, or if a bond has not been filed, the organization or individual drawing and tendering the uncertified check has been approved by the port director to make payment in such manner. In determining whether an uncertified check shall be accepted in the absence of a bond, the port director shall use available credit data obtainable with- out cost to the Government, such as that furnished by banks, local business
firms, better business bureaus, or local credit exchanges, sufficient to satisfy him of the credit standing or reli- ability of the drawer of the check. For purposes of this paragraph, a customs broker who does not have a permit for the district (see the definition of ‘‘dis- trict’’ at § 111.1 of this chapter) where the entry is filed, is an interested party for the purpose of Customs acceptance of such broker’s own check, provided the broker has on file the necessary power of attorney which is unconditioned geographically for the performance of ministerial acts. Cus- toms may look to the principal (im- porter) or to the surety should the check be dishonored.
(ii) If, during the preceding 12-month period, an importer or interested party has paid duties or any other obligation by check and more than one check is returned dishonored by the debtor’s fi- nancial institution, the port director shall require a certified check, money order or cash from the importer or in- terested party for each subsequent pay- ment until such time that the port di- rector is satisfied that the debtor has the ability to consistently present uncertified checks that will be honored by the debtor’s financial institution.
(4) A U.S. Government check en- dorsed by the payee to the U.S. Cus- toms Service, a domestic traveler’s check, or a U.S. postal, bank, express, or telegraph money order shall be ac- cepted. Before accepting this form of payment the Customs cashier or other employee authorized to receive Cus- toms collections shall require such identification in the way of a current driver’s license issued by a state of the United States, or a current passport properly authenticated by the Depart- ment of State, or a current credit card issued by one of the numerous travel agencies or clubs, or other credit data, etc., from which he can verify the iden- tity and signature of the person ten- dering such check or money order.
(5) The face amount of a bank draft, cashier’s check, certified check, or uncertified check tendered in accord- ance with this paragraph shall not ex- ceed the amount due by more than $1 and any required change is authorized to be made out of any available cash funds on hand.
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(6) The face amount of a U.S. Govern- ment check, traveler’s check, or money order tendered in accordance with this paragraph shall not exceed the amount due by more than $50 and any required change is authorized to be made out of any available cash funds on hand.
(7) Credit or charge cards, which have been authorized by the Commissioner of Customs, may be used for the pay- ment of duties, taxes, fees, and/or other charges at designated Customs-serv- iced locations. Payment by this man- ner is limited to non-commercial en- tries and is subject to ultimate collec- tion from the credit card company. Persons paying by charge or credit card will remain liable for all such charges until paid. Information as to those credit card companies authorized by Customs may be obtained from Cus- toms officers.
(8) Participants in the Automated Broker Interface may use statement processing as described in § 24.25 of this part. Statement processing allows entry/entry summaries and entry sum- maries to be grouped by either im- porter or by filer, and allows payment of related duties, taxes and fees by a single payment, rather than by indi- vidual checks for each entry. The pre- ferred method of payment for users of statement processing is by Automated Clearinghouse.
(b) At piers, terminals, bridges, air- ports and other similar places, in addi- tion to the methods of payment pre- scribed in paragraph (a) of this section, a personal check drawn on a national or state bank or trust company of the United States shall be accepted by Cus- toms inspectors and other Customs em- ployees authorized to receive Customs collections in payment of duties, taxes, fees, interest, and other charges on noncommercial importations, subject to the identification requirements of paragraph (a)(4) of this section and this paragraph. Where the amount of the check is over $25, the Customs cashier or other employee authorized to re- ceive Customs collections will ensure that the payor’s name, home and busi- ness telephone number (including area code), and date of birth are recorded on the face (front) side of the monetary instrument. In addition, one of the fol- lowing will be recorded on the face side
of the instrument: preferably, the payor’s social security number or, al- ternatively, a current passport number or current driver’s license number (in- cluding issuing state). A personal check received under this paragraph and a United States Government check, traveler’s check, or money order received under paragraph (a) of this section by such Customs inspectors and other Customs employees shall also be subject to the following conditions:
(1) Where the amount is less than $100 and the identification require- ments of paragraph (a)(4) of this sec- tion have been met, the Customs em- ployee accepting the check or money order will place his name and badge number on the collection voucher and place the serial number or other form of voucher identification on the face side of the check or money order so that the check or money order can be easily associated with the voucher.
(2) Where the amount is $100 or more, in addition to the requirements of paragraph (b)(1) of this section the Cus- toms employee accepting the check or money order shall obtain the approval of the Customs officer in charge who also shall personally verify the identi- fication data and indicate his approval by initialing the collection voucher below the signature of the Customs em- ployee who approved the receipt of the check or money order.
(3) A personal check tendered in ac- cordance with this paragraph shall be accepted only when drawn for the amount of the duties, taxes, fees, and other charges to be paid by such check.
(c) Checks on foreign banks, foreign travelers’ checks, and commercial drafts or bills of exchange subject to acceptance by the drawees shall not be accepted.
(d) Checks and other negotiable pa- pers covering duties, taxes, fees, inter- est, and other Customs charges shall be made payable to the United States Cus- toms Service.
(e) Any person who pays by check any duties, taxes, fees, interest, or other charges or obligations due the Customs Service which are not guaran- teed by a Customs bond shall be as- sessed a charge of $30.00 for each check which is returned unpaid by a financial institution for any reason, except the
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charge will not be assessed if it is shown that the maker of the check was not at fault in connection with the re- turn of the check. This charge shall be in addition to any unpaid duties, taxes, fees, interest, and other charges.
[28 FR 14808, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.1, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 24.2 Persons authorized to receive Customs collections.
Port directors, Customs cashiers, Customs inspectors, Customs dock tell- ers, and such other officers and em- ployees as the port director shall des- ignate shall receive Customs collec- tions.
§ 24.3 Bills and accounts; receipts. (a) Any bill or account for money due
the United States shall be rendered by an authorized Customs officer or em- ployee on an official form.
(b) A receipt for the payment of esti- mated Customs duties, taxes, fees, and interest, if applicable, shall be provided a payer at the time of payment if he furnishes with his payment an addi- tional copy of the documentation sub- mitted in support of the payment. The appropriate Customs official shall vali- date the additional copy as paid and re- turn it to the payer. Otherwise, a copy of the document filed by the payer and the payer’s cancelled check shall con- stitute evidence of payment.
(c) A copy of a Customs bill validated as paid will not normally be provided a payer. If a bill is paid by check, the copy of the Customs bill identified as ‘‘Payer’s Copy’’ and the payer’s can- celled check shall constitute evidence of such payment to Customs. Should a payer desire evidence of receipt, both the ‘‘U.S. Customs Service Copy’’ and the ‘‘Payer’s Copy’’ of the bill and, in the case of payments by mail, a stamped, self-addressed envelope, shall be submitted. The ‘‘Payer’s Copy’’ of the bill shall then be marked paid by the appropriate Customs official and returned to the payer.
(d) Every payment which is not made in person shall be accompanied by the original bill or by a communication
containing sufficient information to identify the account or accounts to which it is to be applied.
(e) Except for bills resulting from dishonored checks or dishonored Auto- mated Clearinghouse (ACH) trans- actions, all other bills for duties, taxes, fees, interest, or other charges are due and payable within 30 days of the date of issuance of the bill. Bills resulting from dishonored checks or dishonored ACH transactions are due within 15 days of the date of issuance of the bill.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 74–73, 39 FR 7782, Feb. 28, 1974; T.D. 79– 221, 44 FR 46813, Aug. 9, 1979; T.D. 86–178, 51 FR 34959, Oct. 1, 1986; T.D. 99–75, 64 FR 56437, Oct. 20, 1999]
§ 24.3a CBP bills; interest assessment; delinquency; notice to principal and surety.
(a) Due date of CBP bills. CBP bills for supplemental duties, taxes and fees(increased or additional duties, taxes, and fees assessed upon liquida- tion or reliquidation) together with in- terest thereon, reimbursable services (such as provided for in §§ 24.16 and 24.17), and miscellaneous amounts (bills other than duties, taxes, reimbursable services, liquidated damages, fines, and penalties) shall be due as provided for in § 24.3(e).
(b) Assessment of interest charges—(1) Bills for reimbursable services and mis- cellaneous amounts. If payment is not received by CBP on or before the late payment date appearing on the bill, in- terest charges will be assessed upon the delinquent principal amount of the bill. The late payment date is the date 30 calendar days after the interest com- putation date. The interest computa- tion date is the date from which inter- est is calculated and is initially the bill date.
(2) Interest on supplemental duties, taxes, fees, and interest—(i) Initial inter- est accrual. Except as otherwise pro- vided in paragraphs (b)(2)(i)(A) through (b)(2)(i)(C) of this section, interest as- sessed due to an underpayment of du- ties, taxes, fees, or interest shall ac- crue from the date the importer of record is required to deposit estimated duties, taxes, fees, and interest to the date of liquidation or reliquidation of
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the applicable entry or reconciliation. An example follows:
Example: Entry underpaid as determined upon liquidation
Importer owes $500 plus interest as follows: The importer makes a $1,000 initial deposit on the required date (January 1) and the entry liquidates for $1,500 (December 1). Upon liquidation, the importer will be billed for $500 plus interest. The interest will ac- crue from the date payment was due (Janu- ary 1) to date of liquidation (December 1).
(A) If a refund of duties, taxes, fees, or interest was made prior to liquida- tion or reliquidation and is determined upon liquidation or reliquidation to be
excessive, in addition to any other in- terest accrued under this paragraph (b)(2)(i), interest also shall accrue on the excess amount refunded from the date of the refund to the date of liq- uidation or reliquidation of the appli- cable entry or reconciliation. An exam- ple follows:
Example: Pre-liquidation refund but entry liquidates for an increase
Importer owes $800 plus interest as follows: The importer makes a $1,000 initial deposit on the required date (January 1) and receives a pre-liquidation refund of $300 (May 1) and the entry liquidates for $1,500 (December 1). Upon liquidation, the importer will be billed for $800 plus interest. The interest accrues in two segments: (1) On the original under- payment ($500) from the date of deposit (Jan- uary 1) to the date of liquidation (December 1); and (2) on the pre-liquidation refund ($300) from the date of the refund (May 1) to the date of liquidation (December 1).
(B) The following rules shall apply in the case of an additional deposit of du-
ties, taxes, fees, or interest made prior to liquidation or reliquidation:
(1) If the additional deposit is deter- mined upon liquidation or reliquida- tion of the applicable entry or rec- onciliation to constitute the correct remaining balance that was required to be deposited on the date the deposit was due, interest shall accrue on the amount of the additional deposit only from the date of the initial deposit until the date the additional deposit was made. An example follows:
Example: Additional deposit made and entry liquidates for total amount deposited
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Importer owes interest on $200 as follows: The importer makes a $1,000 initial deposit on the required date (January 1) and an addi- tional pre-liquidation deposit of $200 (May 1) and the entry liquidates for $1,200 (December 1). Upon liquidation, the importer will be billed for interest on the original $200 under- payment from the date of the initial deposit (January 1) to the date of the additional de- posit (May 1).
(2) If the additional deposit is deter- mined upon liquidation or reliquida- tion of the applicable entry or rec- onciliation to be less than the full bal-
ance owed on the amount initially re- quired to be deposited, in addition to any other interest accrued under this paragraph (b)(2)(i), interest also shall accrue on the remaining unpaid bal- ance from the date deposit was ini- tially required to the date of liquida- tion or reliquidation. An example fol- lows:
Example: Additional deposit made and entry underpaid as determined upon liquida- tion
Importer owes $300 plus interest as follows: The importer makes a $1,000 initial deposit
on the required date (January 1) and an addi- tional pre-liquidation deposit of $200 (May 1) and the entry liquidates for $1,500 (December 1). Upon liquidation, the importer will be billed for $300 plus interest. The interest ac- crues in two segments: (1) on the additional deposit ($200), from the date deposit was re- quired (January 1) to the date of the addi- tional deposit (May 1); and (2) on the remain- ing underpayment ($300), from the date de- posit was required (January 1), to the date of liquidation (December 1).
(3) If an entry or reconciliation is de- termined upon liquidation or reliquida- tion to involve both an excess deposit and an excess refund made prior to liq- uidation or reliquidation, interest in each case shall be computed separately and the resulting amounts shall be net- ted for purposes of determining the final amount of interest to be reflected in the underpaid amount. An example follows:
Example: Excess pre-liquidation deposit and excess pre-liquidation refund
Importer owes $200 plus or minus net inter- est as follows:
The importer makes a $1,000 initial deposit on the required date (January 1) and receives a pre-liquidation refund of $300 (May 1) and the entry liquidates for $900 (December 1). Upon liquidation, the importer will be billed for $200 plus or minus net interest. The inter- est accrues in two segments: (1) Interest ac- crues in favor of the importer on the initial overpayment ($100) from the date of deposit (January 1) to the date of the refund (May 1);
and (2) interest accrues in favor of the Gov- ernment on the refund overpayment ($200) from the date of the refund (May 1) to the date of liquidation (December 1).
(4) If the additional deposit or any portion thereof is determined upon liq- uidation or reliquidation of the appli- cable entry or reconciliation to con- stitute a payment in excess of the amount initially required to be depos- ited, the excess deposit shall be treated
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as a refundable amount on which inter- est also may be payable (see § 24.36).
(C) If a depository bank notifies CBP by a debit voucher that a CBP account is being debited due to a dishonored check or dishonored Automated Clear- inghouse (ACH) transaction, interest shall accrue on the debited amount from the date of the debit voucher to either the date of payment of the debt represented by the debit voucher or the date of issuance of a bill for payment, whichever date is earlier.
(ii) Interest on overdue bills. If duties, taxes, fees, and interest are not paid in full within the applicable period speci- fied in § 24.3(e), any unpaid balance shall be considered delinquent and shall bear interest until the full bal- ance is paid.
(c) Interest rate and applicability. (1) The percentage rate of interest to be charged on such bills will be based upon the quarterly rate(s) established under sections 6621 and 6622 of the In- ternal Revenue Code of 1954 (26 U.S.C. 6621, 6622). The current rate of interest will appear on the CBP bill and may be obtained from the IRS or the CBP Of- fice of Finance, Indianapolis, Indiana. For the convenience of the importing public and CBP personnel, CBP pub- lishes the current interest rate(s) in the Customs Bulletin and Decisions and FEDERAL REGISTER on a quarterly basis.
(2) The percentage rate of interest applied to an overdue bill will be ad- justed as necessary to reflect any change in the annual rate of interest.
(3) Interest on overdue bills will be assessed on the delinquent principal amount by 30-day periods. No interest charge will be assessed for the 30-day period in which the payment is actu- ally received at the ‘‘Send Payment To’’ location designated on the bill.
(4) In the case of any late payment, the payment received will first be ap- plied to the interest charge on the de- linquent principal amount and then to payment of the delinquent principal amount.
(5) The date to be used in crediting the payment is the date on which the payment is received by CBP.
(d) Notice—(1) Principal. The principal will be notified at the time of the ini- tial billing, and every 30 days after the
due date until the bill is paid or other- wise closed. Where the notification is returned to CBP due to an incorrect mailing address, the bill may be stopped. The following elements will normally appear on the bill:
(i) Principal amount due; (ii) Interest computation date; (iii) Late payment date; (iv) Accrual of interest charges if
payment is not received by the late payment date;
(v) Applicable current interest rate; (vi) Amount of interest owed; (vii) CBP office where requests for
administrative adjustments due to bill- ing errors may be addressed; and
(viii) Transaction identification (e.g., entry number, reimbursable assign- ment number).
(2) Surety. (i) CBP will report out- standing bills on a Formal Demand on Surety for Payment of Delinquent Amounts Due, for bills more than 30 days past due (approximately 60 days after bill due date), and every month thereafter until the bill is paid or oth- erwise closed. The following elements will normally appear on the report:
(A) Principal amount due; (B) Interest computation date; (C) Late payment date; (D) Accrual of interest charges if
payment is not received by the late payment date;
(E) Applicable current interest rate; (F) Amount of interest owed; (G) Principal’s name and address; (H) CBP office where requests for ad-
ministrative adjustments due to billing errors may be addressed; and
(I) Transaction identification (e.g., entry number, reimbursable assign- ment number).
(ii) Upon the written request of a sur- ety, CBP will provide the surety a no- tice containing the billing information at the time of the initial billing to its principal.
[T.D. 86–178, 51 FR 34958, Oct. 1, 1986, as amended by T.D. 99–75, 64 FR 56437, Oct. 20, 1999 ; CBP Dec. 08-25, 73 FR 40726, July 16, 2008]
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§ 24.4 Optional method for payment of estimated import taxes on alcoholic beverages upon entry, or with- drawal from warehouse, for con- sumption.
(a) Application to defer. An importer, including a transferee of alcoholic bev- erages in a Customs bonded warehouse who wishes to pay on a semi-monthly basis the estimated import taxes on al- coholic beverages entered, or with- drawn from warehouse, for consump- tion by him during such a period may apply by letter to the director of each port at which he wishes to defer pay- ment. If the importer desires the addi- tional privilege of depositing estimated tax payments on an extended deferred basis, it must be specifically requested. An importer who receives approval from a port director to defer such pay- ments may, however, continue to pay the estimated import taxes due at the time of entry, or withdrawal from warehouse, for consumption.
(b) Deferred payment periods. A period shall commence on October 24 and run through October 31, 1965; thereafter the periods shall run from the 1st day of each month through the 15th day of that month, and from the 16th day of each month through the last day of that month. An importer may begin the deferral of payments of estimated tax to a Customs port in the first defer- ral period beginning after the date of the written approval by the port direc- tor. An importer may use the deferred payment system until the port director advises such importer that he is no longer eligible to defer the payment of such taxes.
(c) Content of application and sup- porting documents. (1) An importer must state his estimate of the largest amount of taxes to be deferred in any semimonthly period based on the larg- est amount of import taxes on alco- holic beverages deposited at that port in such a period during the year pre- ceding his application. He must also identify any existing bond or bonds that he has on file at the port and shall submit in support of his application the approval of the surety on his bond or bonds to the use of the procedure and to the increase of such bond or bonds to such larger amount or
amounts as may be found necessary by the port director.
(2) Each application must include a declaration in substantially the fol- lowing language:
I declare that I am not presently barred by any port director from using the deferred payment procedure for payment of estimated taxes upon imports of alcoholic beverages, and that if I am notified by a port director to such effect I shall advise the director of any other port where approval has been given to me to use such procedure.
(d) Use of deferred payment method. (1) The port director will notify the im- porter, or his authorized agent if re- quested, of approval.
(2) An importer who has received ap- proval to make deferred payments re- tains the option of deferring or depos- iting the estimated tax on imported al- coholic beverages until the entry or withdrawal is presented to the cashier for payment of estimated duties. At the time the importer presents his entry or withdrawal for consumption to the cashier together with the esti- mated duty, he must either pay the es- timated tax or indicate on the entry or withdrawal that he elects to defer the tax payment.
(e) Tax deferment procedure. If the im- porter elects to defer the tax pay- ments, he shall enter on each copy of the entry or withdrawal the words ‘‘Tax Payment Deferred,’’ adjacent to the amount shown on the documents as estimated taxes, before presentation to the cashier.
(f) Payment procedure—(1) Billing. Each importer who has deferred tax payments on imported alcoholic bev- erages will be billed on Customs Form 6084, United States Customs Service Bill, at the end of each tax deferred pe- riod for all taxes deferred during the period. Each bill will identify each tax amount deferred and the related entry numbers. These bills must be paid in fully by the last day of the next suc- ceeding deferral period.
(2) Interest on overdue accounts. When any bill for deferred taxes is not paid within the period specified in subpara- graph (f)(1) of this section, interest thereon from the date following the end of the specified period to the date of payment of the bill shall be assessed, collected, and paid in the same manner
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as the basic tax. The rate of interest to be assessed shall be 7 percent per annum or such other rate as is estab- lished by the Secretary of the Treasury or his delegate in accordance with 26 U.S.C. 6621(b).
(g) Restrictions on deferring tax depos- its. An importer may not on one entry, or withdrawal from warehouse for con- sumption, deposit part of the estimated tax and defer the balance of the tax. The estimated tax on each entry or withdrawal must be either fully paid or deferred.
(h) Termination of deferred payment privilege. (1) When any bill on Customs Form 6084 for deferred taxes is not paid within the period specified in para- graph (f) of this section, a demand for payment shall be made to the surety on the importer’s bond. If in the opin- ion of the customs officer concerned such failure to make timely payment of estimated deferred taxes warrants the withdrawal of the tax deferral privilege, he will advise the importer of the withdrawal of such privilege. In all instances of failure to pay timely the deferred taxes on alcoholic beverages withdrawn from warehouse for con- sumption, further withdrawals from the warehouse entry on which the tax is delinquent will be refused until pay- ment is made of the amount delin- quent.
(2) The termination at any port of the tax deferral privilege for failure to pay timely any deferred estimated tax shall be at the discretion of the Cus- toms officer concerned. Termination of the privilege for any other reason shall be subject to the approval of the Com- missioner of Customs. Notice of termi- nation of the tax deferral privilege at any port will be disseminated to all other Customs ports.
(3) Renewal of the tax deferral privi- lege after it has been withdrawn at any port may be made only upon approval of the Commissioner of Customs.
(i) Duration of deferred payment privi- lege. The deferred payment privilege once approved by the port director will remain in effect until terminated under the provisions of paragraph (h) or the importer or surety requests ter- mination.
(j) Entries for consumption or ware- house after an importer is delinquent. An
importer who is delinquent in paying deferred taxes may make entries for consumption or for warehousing, or withdrawals for consumption from warehouse entries on which no delin- quency exists, upon deposit of all esti- mated duties or taxes.
(k) Rate of tax. The estimated taxes must be paid on the basis of the rates in effect upon entry, or withdrawal from warehouse, for consumption, un- less in accordance with section 315 of the Tariff Act of 1930, as amended, an- other date is applicable and not on the basis of the rates of tax in effect on the date deferred payment is made.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 56510, 30 FR 13359, Oct. 21, 1965; T.D. 67– 31, 32 FR 493, Jan. 18, 1967; T.D. 75–278, 40 FR 51420, Nov. 5, 1975; T.D. 76–258, 41 FR 38767, Sept. 13, 1976; T.D. 84–213, 49 FR 41170, Oct. 19, 1984; T.D. 95–77, 60 FR 50011, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 24.5 Filing identification number.
(a) Generally. Each person, business firm, Government agency, or other or- ganization shall file Customs Form 5106, Notification of Importer’s Number or Application for Importer’s Number, or Notice of Change of Name or Ad- dress, with the first formal entry which is submitted or the first request for services that will result in the issuance of a bill or a refund check upon adjust- ment of a cash collection. A Customs Form 5106 shall also be filed for the ul- timate consignee for which such entry is being made. Customs Form 5106 may be obtained from any Customs Office.
(b) Preparation of Customs Form 5106. (1) The identification number to be used when filing Customs Form 5106 shall be:
(i) The Internal Revenue Service em- ployer identification number, or
(ii) If no Internal Revenue Service employer identification number has been assigned, the Social Security number.
(2) If neither an Internal Revenue Service employer identification num- ber nor a Social Security number has been assigned, the word ‘‘None’’ shall be written on the line provided for each of these numbers on Customs Form 5106 and the form shall be filed in du- plicate.
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(c) Assignment of importer identifica- tion number. Upon receipt of a Customs Form 5106 without an Internal Revenue Service employer identification num- ber or a Social Security number, an importer identification number shall be assigned and entered on the Cus- toms Form 5106 by the Customs office where the entry or request for services is received. The duplicate copy of the form shall be returned to the filing party. This identification number shall be used in all future Customs trans- actions when an importer number is re- quired. If an Internal Revenue Service employer identification number, a So- cial Security number, or both, are ob- tained after an importer number has been assigned by Customs, a new Cus- toms Form 5106 shall not be filed un- less requested by Customs.
(d) Optional additional identification. Customs Form 5106 contains blocks for a two-digit suffix code which may be written in as an addition to the Inter- nal Revenue Service employer identi- fication number to provide optional ad- ditional identification. The two-digit suffix code may be used by a business firm having branch office operations to permit the firm to identify trans- actions originating in its branch of- fices, or by vessel owners to permit them to identify transactions associ- ated with particular vessels. A separate Customs Form 5106 shall be required to report the specific suffix code and the name and address for each branch of- fice or vessel to be identified. Trans- actions may be associated with a spe- cific branch office or vessel by report- ing the appropriate identification num- ber, including the two-digit suffix code, on Customs Form 7501 or the request for services. Suffix codes may be either numeric, alphabetic, or a combination of both numeric and alphabetic, except that the letters O, Z, and I may not be used. The blocks may be left blank if the firm or vessel owner has no use for them and a ‘‘00’’ suffix will be auto- matically assigned.
(e) Retention of importer identification number. An importer identification number shall remain on file until 1 year from the date on which it is last used on Customs Form 7501 or a request for services. If not used for 1 year and there is no outstanding transaction to
which it must be associated, the im- porter identification number will be re- moved from Customs files. To engage in future transactions described in paragraph (a) of this section, the per- son, business firm, Government agen- cy, or other organization, previously covered by an importer identificatign number, must file another Customs Form 5106.
(f) ‘‘Freezing’’ importer identification information. Those importers identi- fying Customs transactions through the procedure specified in paragraph (d) of this section and desiring to en- sure that they receive such Customs transaction notifications as may be issued may request Customs to ‘‘freeze’’ the name and address infor- mation, regardless of what is shown on the Customs Form 5106 or request for services, by designating the name and title/position of the individual in their company authorized to effect name/ad- dress changes to the Importer’s Record Number (IRN) identification informa- tion, and specifying the IRNs and suf- fixes to be frozen and the mailing ad- dress and/or physical location address of the company where Customs notifi- cations are to be directed. The request must be made in a separate writing on letterhead paper signed by the im- porter of record or his agent, whose name and title are clearly indicated. Participation in the ‘‘Freeze’’ Program is voluntary. Requests to participate should be sent to: U.S. Customs Serv- ice, Accounting Services—Accounts Receivable, 6026 Lakeside Boulevard, Indianapolis, Indiana 46278, Attn: Freeze Program.
[T.D. 78–7, 42 FR 64681, Dec. 28, 1977, as amended by T.D. 84–129, 49 FR 23166, June 5, 1984; T.D. 93–43, 58 FR 34367, June 25, 1993]
§ 24.11 Notice to importer or owner of increased or additional duties, taxes, fees and interest.
Any increased or additional duties, taxes, fees or interest found due upon liquidation or reliquidation shall be billed to the importer of record, or to the actual owner if the following have been filed with Customs:
(a) A declaration of the actual owner in accordance with section 485(d), Tar- iff Act of 1930, as amended (19 U.S.C. 1485(d)), and § 141.20 of this chapter; and
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(b) A bond on Customs Form 301 in accordance with § 141.20 of this chapter.
[T.D. 99–75, 64 FR 56439, Oct. 20, 1999]
§ 24.12 Customs fees; charges for stor- age.
(a) The following schedule of fees pre- scribed by law or hereafter in this paragraph shall be made available to the public at all Customs offices. When payment of such fee is received by a Customs employee a receipt therefor shall be issued.
(1) [Reserved] (2) No fee will be charged for fur-
nishing an official certificate if the re- quest is made to Customs at the time the entry summary is filed. However, Customs shall charge and collect a fee of $10.00 for each hour or fraction thereof for time spent by each clerical, professional or supervisor in finding the documents and furnishing an offi- cial certification if the request is made after the entry documents are filed, plus a charge of 15 cents per page for photcopying. The fee may be revised periodically by publication of a general notice in the FEDERAL REGISTER and Customs Bulletin setting forth the re- vised fee. The published revised fee shall remain in effect until changed.
(b) [Reserved] (c) The rates charged for storage in
Government-owned or rented buildings shall not be less than the charges made at the port by commercial concerns for the storage and handling of merchan- dise. Except as to an examination package covered by an application for an entry by appraisement, storage shall be charged on any examination package for any period it remains in the appraiser’s store after 2 full work- ing days following the day on which the permit to release or transfer was issued. As to an examination package covered by an application for an entry by appraisement, storage shall be charged for any period it remains in the appraiser’s store after 2 full work- ing days following the day of issuance to the importer of oral or written no- tice of the amount of duties or taxes required to be deposited or that the package is ready for delivery. If the port director finds that circumstances make it impractical to remove exam- ination packages from the appraiser’s
store within the 2-day period, he may extend the period for not to exceed 3 additional working days, without stor- age charges. In computing the 2 work- ing days, and any authorized extension, (1) the day on which the permit to re- lease or transfer is issued, or the day on which the notice is issued of the amount of duties or taxes that shall be deposited or that the package is ready for delivery, whichever is applicable, (2) Saturdays, (3) Sundays, and (4) Na- tional holidays, shall be excluded.
(d) Pursuant to the progressive clear- ance procedures set forth in § 122.88 of this chapter, when airlines commingle domestic (stopover) passengers who have already cleared Customs at their port of arrival and are continuing on to another U.S. destination, with inter- national passengers who are arriving at their port of arrival and have not yet cleared Customs, a progressive clear- ance fee of $2.00 per domestic (stop- over) passenger reinspection in the U.S. will be charged by Customs to the affected airlines to offset the addi- tional cost to Customs of reinspecting passengers who have already been cleared. The fee is in addition to any other charges currently incurred, such as overtime services, but will not apply to passengers reinspected on an over- time basis if the cost of performing such reinspection is reimbursed to Cus- toms in accordance with 19 U.S.C. 1451. The fee will not apply to the reinspec- tion of non-revenue producing pas- sengers, including but not limited to, employees of the carrier and their de- pendents, deadhead crew, employees of other carriers who may be assessed a service charge by the transporting car- rier, and other persons to whom the carrier is authorized to provide free transportation pursuant to 14 CFR part 233. The airline industry will be noti- fied at least 90 days in advance of the date of any change in the amount of the fee necessitated by either an in- crease or decrease in costs to Customs, but no new fee shall take effect before January 1, 1986.
[28 FR 14808, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.12, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
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19 CFR Ch. I (4–1–12 Edition)§ 24.13
§ 24.13 Car, compartment, and package seals; kind, procurement.
(a) Customs seals accepted pursuant to § 24.13a of this chapter shall be used in sealing openings, packages, convey- ances, or articles requiring the secu- rity provided by such sealing.
(b) Red in-bond and high security red in-bond seals used for sealing imported merchandise shipped between ports in the United States shall be stamped ‘‘U.S. Customs in Bond.’’ Uncolored seals used to seal containers of com- mercial traveler’s samples transiting the United States as provided by § 123.52 of this chapter shall be stamped ‘‘Canada-United States Customs.’’ [U.S. Transit], and uncolored seals used to seal containers of commercial trav- eler’s samples transiting the United States as provided by § 123.52 of this chapter shall be stamped ‘‘Canada- United States Customs.’’ Blue in-tran- sit seals used to seal merchandise transiting foreign territory or waters between ports in the United States as provided in § 123.24 of this chapter shall be stamped ‘‘U.S. Customs In-Transit.’’ Yellow in-transit seals used on rail shipments of merchandise and on con- tainers of commercial traveler’s sam- ples transiting Canada between U.S. ports as provided in §§ 123.24 and 123.51 of this chapter shall be stamped [U.S. Customs] [Can. Transit] for use on railroad cars, and ‘‘United States-Canada Customs’’ for use on samples. Uncolored seals used for Customs purposes other than for (1) shipping in bond, (2) shipping by other than a bonded common carrier in accordance with section 553, Tariff Act of 1930, as amended, or (3) shipping in transit shall be stamped ‘‘U.S. Cus- toms.’’ All seals (except uncolored in- transit seals on containers of commer- cial traveler’s samples and seals for use on airline liquor kits) shall be stamped with the name of the port for which they are ordered. Each strap seal shall be stamped with a serial number. Each automatic metal seal shall be stamped with a symbol number and, when re- quired, with a serial number.
(c) Purchase of seals. Bonded carriers of merchandise, commerical associa- tions representing the foregoing or comparable organizations approved by the port director under paragraph (f) of
this section, a foreign trade zone oper- ator and bonded warehouse proprietors may purchase quantity supplies of in- bond and in-transit seals from manu- facturers approved under the provi- sions of § 24.13a. The order shall be pre- pared by the purchaser and, except as hereinafter noted, shall be confined to seals for use at one port and shall specify the kind and quantity of seals desired, the name of the port at which they are to be used, and the name and address of the consignee to whom they are to be shipped. Seals for use on air- line liquor kits need not specify the name of the port at which they are to be used, and orders for such seals need not be confined to seals for use at one port. Carriers and bonded warehouse proprietors may purchase small emer- gency supplies of in-bond and in-transit seals from port directors, who will keep a supply of such seals for this purpose. An order for green or uncolored in- transit seals shall be submitted to the office of the Director of Customs-Ex- cise Inspection, Ottowa, Canada, for approval and forwarding to the manu- facturer. An order for green strap-in bond seals for use on railroad cars must stipulate that the seals are to be consigned to the collector of customs and excise in Canada at the port indi- cated on the seals for entry purposes and storage under Customs lock and key.
(d) The manufacturer or supplier shall ship the seals to the consignee named in the order and shall advise the director of the port to which the seals are shipped as to the kind and quantity of seals shipped, the name of the port (where required), serial numbers, and symbol number (where required) stamped thereon, the name and address of the consignee, and the date of ship- ment.
(e) [Reserved] (f) Port director approval required. In-
bond seals may be purchased only by a foreign trade zone operator or Customs bonded warehouse proprietor, a cus- toms bonded carrier, a nonbonded car- rier permitted to transport articles in accordance with section 553, Tariff Act of 1930, as amended (19 U.S.C. 1553) or in the case of red in-bond and high se- curity red in-bond seals, the carrier’s commercial association or comparable
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representative approved by the port di- rector. In-transit seals may be pur- chased by a bonded or other carrier of merchandise or, in the case of blue in- transit seals, by the carrier’s commer- cial association or comparable rep- resentative approved by the port direc- tor. Except for uncolored in-transit seals, uncolored Customs seals may not be purchased by private interests and shall be furnished by port directors for authorized use without charge. In-bond and in-transit seals sold by port direc- tors shall be charged for at the rate of 10 cents per seal, except for high secu- rity red in-bond seals which shall be charged for at the current manufactur- er’s list price for the quantity pur- chased.
[28 FR 14808, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.13, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 24.13a Car, compartment, and pack- age seals; and fastenings; standards; acceptance by Customs.
(a) General standards. The seals and fastenings, together, shall
(1) Be strong and durable; (2) Be capable of being affixed easily
and quickly; (3) Be capable of being checked read-
ily and identified by unique marks (such as a logotype) and numbers;
(4) Not permit removal or undoing without breaking, or tampering with- out leaving traces;
(5) Not permit use more than once; and
(6) Be made as difficult as possible to copy or counterfeit.
(b) Seal specifications. (1) The shape and size of the seal shall be such that any identifying marks are readily leg- ible.
(2) Each eyelet in a seal shall be of a size corresponding to that of the fas- tening used, and shall be positioned so that the fastening will be held firmly in place when the seal is closed.
(3) The material used shall be suffi- ciently strong to prevent accidental breakage, early deterioration (due to weather conditions, chemical action, etc.) or undetectable tampering under normal usage.
(4) The material used shall be se- lected with reference to the sealing system used.
(c) Fastening specifications. (1) The fastening shall be strong and durable and resistant to weather and corrosion.
(2) The length of the fastening used shall not enable a sealed aperture to be opened or partly opened without the seal or fastening being broken or other- wise showing obvious damage.
(3) The material used shall be se- lected with reference to the sealing system used.
(d) Identification marks. (1) If the seal is to be purchased and used by U.S. Customs, the seal or fastening, as ap- propriate, shall be marked to show that it is a U.S. Customs seal by appli- cation of the words ‘‘U.S. Customs’’ and a unique identification number on the seal.
(2) If the seal is to be used by private industry (i.e., a shipper, manufacturer, or carrier), it must be clearly and leg- ibly marked with a unique company name (or logotype) and identification number.
(e) Customs acceptance. Seals will be considered as acceptable for use and/or purchase by U.S. Customs as soon as the manufacturer attests that the seals have been tested and meet or exceed the standards provided in paragraphs (a) through (d) of this section, and will continue to be considered acceptable until such time as it is demonstrated that they do not meet the standards. A manufacturer may attest to the quali- fication of a specific seal, or to an en- tire product line of seals as of a certain date. Any addition of a seal to a group of seals attested to as a group would require specific acceptance of that seal by Customs.
(f) Testing. All testing of seals deemed necessary before Customs ac- ceptance will be done by the manufac- turer or by a private laboratory, and not by Customs. However, Customs re- serves the right to test, or to have test- ed, seals that have been accepted by Customs.
(g) Records. The manufacturer’s at- testation that a seal meets or exceeds the standards specified in this section and, if deemed necessary by Customs, the seal test record shall be sent to the
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19 CFR Ch. I (4–1–12 Edition)§ 24.14
Assistant Commissioner, Field Oper- ations, Headquarters, U.S. Customs Service, Washington DC 20229.
[T.D. 81–185, 46 FR 36842, July 16, 1981, as amended by T.D. 91–77, 56 FR 46114, Sept. 10, 1991]
§ 24.14 Salable Customs forms.
(a) Customs forms for sale to the gen- eral public shall be designated by the Commissioner of Customs, or his dele- gate. Customs forms which are des- ignated as salable shall meet the fol- lowing conditions: (1) The form is dis- tributed to private parties for use in completing customs transactions; (2) the quantity used nationwide annually is sufficient to justify the administra- tive costs involved in selling the form and accounting for the collections in- volved therein, or the form is primarily for the use of a special group; (3) dis- tribution is or can generally be made in lots of 100 or more; (4) the form is normally distributed to commercial concerns (customhouse brokers, freight forwarders, vessel agents, carriers, reg- ular commercial importers, etc.) rather than to or for the use of individuals or others (tourists, churches, schools, oc- casional importers, etc.) for non- commercial purposes.
(b) The price of each salable Customs form shall be established by the Com- missioner of Customs, or his delegate, and shall be adjusted periodically as the varying costs of printing and dis- tribution require. A list of salable cus- toms forms showing the price at which each is sold shall be prominently post- ed in each customhouse in a location accessible to the general public.
(c) Customs forms for sale to the gen- eral public, except unusually large or otherwise unsuitable forms, shall nor- mally be prepared in units containing 100 copies. If a completely prepared bill or receipt is presented by the purchaser at the time of the purchase, the port director’s paid stamp shall be im- pressed thereon; otherwise, no receipt shall be given.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 75–132, 40 FR 24519, June 9, 1975]
§ 24.16 Overtime services; overtime compensation and premium pay for Customs Officers; rate of compensa- tion.
(a) General. Customs services for which overtime compensation is pro- vided for by section 5 of the Act of Feb- ruary 13, 1911, as amended (19 U.S.C. 267), or section 451, Tariff Act of 1930, as amended (19 U.S.C. 1451), shall be furnished only upon compliance with the requirements of those statutes for applying for such services and giving security for reimbursement of the over- time compensation, unless the com- pensation is nonreimbursable under the said section 451, or section 53 of the Airport and Airway Development Act of 1970, as amended (49 U.S.C. 1741). Re- imbursements of overtime compensa- tion shall be collected by the port di- rector from the applicants for the serv- ices. Customs Officers entitled to over- time compensation and premium pay, pursuant to the provisions of the Cus- toms Officer Pay Reform legislation (19 U.S.C. 261 and 267, as amended), shall not receive pay or other compensation for that work under any other provi- sion of law. Reimbursable overtime services shall not be furnished to an applicant who fails to cooperate with the Customs Service by filing a timely application therefor during regular hours of business when the need for the services can reasonably by foreseen, nor in any case until the maximum probable reimbursement is adequately secured.
(b) Definitions. For purposes of this section, the following words and phrases have the meanings indicated:
(1) The Act refers to part II, sub- chapter D of the Omnibus Budget Rec- onciliation Act of 1993, Public Law 103– 66.
(2) Administrative workweek means a period of seven consecutive calendar days beginning Sunday and continuing through the following Saturday.
(3) Base pay means the rate of pay fixed by law or administrative action for the position held by the Customs Officer.
(4) Callback means the irregular or occasional overtime work performed by a Customs Officer either on a day when work was not regularly scheduled for that officer or which begins at least
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one hour after the end of the officer’s regularly-scheduled tour of duty and ends at least one hour before the begin- ning of the following regularly-sched- uled assignment and requires the offi- cer to return to a place of work.
(5) ‘‘Commute compensation’’ means the compensation which a Customs Of- ficer is entitled to receive, in excess of the officer’s base pay, for returning to work, under certain conditions, to per- form an overtime work assignment. Commute compensation, within the limits prescribed by the Act, shall be treated as overtime compensation, and is includable for Federal retirement benefit purposes.
(6) Continuous assignment means the grouping of multiple overtime assign- ments, performed by the same Customs Officer(s), which are separated by peri- ods of non-work, into a single unit for computation of pay purposes.
(7) Customs Officer means only those individuals assigned to position de- scriptions entitled ‘‘Customs Inspec- tor,’’ ‘‘Supervisory Customs Inspec- tor,’’ ‘‘Canine Enforcement Officer,’’ ‘‘Supervisory Canine Enforcement Offi- cer,’’ ‘‘Customs and Border Protection Officer,’’ ‘‘Supervisory Customs and Border Protection Officer,’’ ‘‘Customs and Border Protection Agriculture Spe- cialist,’’ or ‘‘Supervisory Customs and Border Protection Agriculture Spe- cialist.’’
(8) Fiscal year pay cap refers to the statutory maximum, in effect for the year involved, in overtime and pre- mium pay a Customs Officer shall re- ceive in that fiscal year. This aggre- gate limit may be waived by the Com- missioner of Customs or his/her des- ignee in individual cases in order to prevent excessive costs or to meet emergency requirements of the Cus- toms Service.
(9) Holiday means any day designated as a holiday by a Federal statute or de- clared by an Executive order.
(10) Intermittent employee is a non-full- time employee who does not have a regularly-scheduled tour of duty.
(11) Majority of hours, within the con- text of night work differentials, means more than half of the hours of the daily regularly-scheduled tour of duty.
(12) Night work means regularly- scheduled work performed by a Cus-
toms Officer on tours of duty, in which a majority of the hours worked occur between the hours of 3:00 p.m. and 8:00 a.m.
(13) Overtime pay means the com- pensation which a Customs Officer is entitled to receive, in excess of the of- ficer’s base pay, for performing offi- cially-assigned work in excess of the 40 hours of the officer’s regularly-sched- uled administrative workweek or in ex- cess of 8 hours in a day, which may in- clude commute compensation as de- fined at paragraph (b)(5) of this section. Overtime pay, within the limits pre- scribed by the Act, is includable for Federal retirement benefit purposes.
(14) Premium pay differential means the compensation which a Customs Of- ficer is entitled to receive, in excess of the officer’s base pay, for performing officially-assigned work on holidays, Sundays and at night. Premium pay is not includable for Federal retirement benefit purposes.
(15) Regularly-scheduled administrative workweek means, for a full-time em- ployee, the 40 hour period within an ad- ministrative workweek within which the employee is regularly scheduled to work, exclusive of any overtime; for a part-time employee, it means the offi- cially prescribed days and hours within an administrative workweek during which the employee is regularly sched- uled to work.
(c) Application and bond. (1) Except as provided for in paragraphs (c)(2) and (4) of this section, an application for inspectional services of Customs Offi- cers at night or on a Sunday or holi- day, Customs Form 3171, supported by the required cash deposit or bond, shall be filed in the office of the port direc- tor before the assignment of such offi- cers for reimbursable overtime serv- ices. The cash deposit to secure reim- bursement shall be fixed by the port di- rector or authorized representative in an amount sufficient to pay the max- imum probable compensation and ex- penses of the Customs Officers, or the maximum amount which may be charged by law, whichever is less, in connection with the particular services requested. The bond to secure reim- bursement shall be on Customs Form 301, containing the appropriate bond conditions set forth in subpart G, part
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113 of this chapter (see §§ 113.62, 113.63, 113.64 and 113.73), and in an amount to be fixed by the port director, unless an- other bond containing a provision to secure reimbursement is on file. A bond given on Customs Form 301, containing the appropriate bond conditions set forth in subpart G, part 113 of this chapter (see §§ 113.62, 113.63, 113.64 and 113.73), to secure the payment of over- time services rendered private aircraft and private vessels shall be taken with- out surety or cash deposit in lieu of surety, and the bond shall be modified to so indicate.
(2) Prior to the expected arrival of a pleasure vessel or private aircraft the port director may designate a Customs Officer to proceed to the place of ex- pected arrival to receive an application for night, Sunday, or holiday services in connection with the arrival of such vessel or aircraft, together with the re- quired cash deposit or bond. In each such case the assignment to perform services shall be conditional upon the receipt of the appropriate application and security. Where the security is a cash deposit, the receipt may be prop- erly inscribed to make it serve as a combined receipt for cash deposit in lieu of bond and request for overtime services, in lieu of filing a request for overtime services on Customs Form 3171.
REQUEST FOR OVERTIME SERVICES
Permit Number lllllllllllllll I hereby request overtime services on
llllllll, 19ll;, at ll a.m., p.m., in connection with the entry of my aircraft (vessel). llllllllllllllllllllllll
(Pilot, Owner, or Person in Charge)
(3) An application on Customs Form 3171 for overtime services of Customs Officers, when supported by the re- quired cash deposit or a continuous bond, may be granted for a period not longer than for 1 year. In such a case, the application must show the exact times when the overtime services will be needed, unless arrangements are made so that the proper Customs Offi- cer will be notified timely during offi- cial hours in advance of the services re- quested as to the exact times that the services will be needed.
(4) Inspectional services will be pro- vided to owners or operators of aircraft without charge for overtime on Sun- days and holidays between the hours of 8:00 a.m. and 5:00 p.m. Applications for inspectional services for aircraft dur- ing those hours shall be filed as set forth in paragraph (c)(1) of this section, but without cash deposit or bond.
(d) Work Assignment Priorities. The es- tablishment of regularly-scheduled ad- ministrative tours of duty and assign- ments of Customs Officers to overtime work under this section shall be made in accordance with the following prior- ities, listed below in priority order:
(1) Alignment. Tours of duty should be aligned with the Customs workload.
(2) Least Cost. All work assignments should be made in a manner which minimizes the cost to the government or party in interest. Decisions, includ- ing, but not limited to, what hours should be covered by a tour of duty or whether an assignment should be treat- ed as a continuous assignment or sub- ject to commute compensation, should be based on least cost considerations. However, base pay comparison of eligi- ble employees shall not be used in the determination of staffing assignments.
(3) Annuity integrity. For Customs Of- ficers within 3 years of their statutory retirement eligibility, the amount of overtime that can be worked is limited to the average yearly number of over- time hours the Customs Officer worked during his/her career with the Customs Service. If the dollar value of the aver- age yearly number of overtime hours worked by such Customs Officer ex- ceeds 50 percent of the applicable stat- utory pay cap, then no overtime earn- ing limitation based on this annuity integrity provision would apply. Waiv- ers concerning this annuity integrity limitation may be granted by the Com- missioner of Customs or the Commis- sioner’s designee in individual cases in order to prevent excessive costs or to meet emergency requirements of Cus- toms.
(e) Overtime Pay. (1) A Customs Offi- cer who is officially assigned to per- form work in excess of the 40 hours in the officer’s regularly-scheduled ad- ministrative workweek or in excess of 8 hours in a day shall be compensated for such overtime work performed at 2
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times the hourly rate of the officer’s base pay, including any locality pay, but not including any premium pay dif- ferentials for holiday, Sunday, or night work.
(2) The computation of the amount of overtime worked by a Customs Officer is subject to the following conditions:
(i) Overtime that is less than one hour. A quarter of an hour shall be the small- est fraction of an hour used for paying overtime under this subpart.
(ii) Absence during overtime. Except as expressly authorized by statute, regu- lation, or court order (i.e., military leave, court leave, continuation of pay under the workers compensation law, and back pay awards), a Customs Offi- cer shall be paid for overtime work only when the officer reports as as- signed.
(f) Special provisions relating to over- time work on a callback basis—(1) Min- imum duration and callback requirements. Any work for which overtime pay is authorized and for which the Customs Officer is required to return to a place of work shall be treated as being at least 2 hours in duration, but only if such work begins at least 1 hour after the end of any previous regularly- scheduled work assignment and ends at least 1 hour before the beginning of the following regularly-scheduled work as- signment. An unpaid meal period shall not be considered a break in service for purposes of callback.
(2) Commute compensation—Eligibility. A Customs Officer shall be com- pensated for overtime when the officer is called back and officially assigned to perform work that:
(i) Is in excess of the 40 hours in the officer’s regularly-scheduled adminis- trative workweek or in excess of 8 hours in a day;
(ii) Begins at least 1 hour after the end of any previous regularly-sched- uled work assignment;
(iii) Commences more than 2 hours prior to the start of the officer’s next regularly-scheduled work assignment;
(iv) Ends at least 1 hour before the beginning of the officer’s next regu- larly-scheduled work assignment; and,
(v) Commences less than 16 hours after the officer’s last regularly-sched- uled work assignment. The 16 hours shall be calculated from the end of the
Customs Officer’s last regularly-sched- uled work assignment.
(3) Commute compensation—Amount. Commute compensation under this sec- tion shall be in an amount equal to 3 times the hourly rate of the Customs Officer’s base pay for a one hour period, which includes applicable locality pay, but does not include any premium pay differentials for holiday, Sunday or night work. The Customs Officer shall be entitled to this amount for an eligi- ble commute regardless of the actual commute time. However, an unpaid meal period shall not be considered a break in service for purposes of com- mute compensation.
(4) Maximum Compensation for Multiple Assignments. If a Customs Officer is as- signed to perform more than one over- time assignment, in which the officer is required to return to a place of work more than once in order to complete the assignment, and otherwise satisfies the callback requirements of paragraph (f)(1) of this section, then the officer shall be entitled to commute com- pensation each time the officer returns to the place of work provided that each assignment commences less than 16 hours after the officer’s last regularly- scheduled work assignment. However, in no case shall the compensation be greater than if some or all of the as- signments were treated as one contin- uous callback assignment.
(g) Premium pay differentials. Pre- mium pay differentials may only be paid for non-overtime work performed on holidays, Sundays, or, at night (work performed, in whole or in part, between the hours of 3:00 p.m. and 8:00 a.m.). A Customs Officer shall receive payment for only one of the differen- tials for any one given period of work. The order of precedence for the pay- ment of premium pay differentials is holiday, Sunday, and night work.
(1) Holiday differential. A Customs Of- ficer who performs any regularly- scheduled work on a holiday shall re- ceive pay for that work at the officer’s hourly rate of base pay, which includes authorized locality pay, plus premium pay amounting to 100 percent of that base rate. Holiday differential pre- mium pay will be paid only for time worked. Intermittent employees are not entitled to holiday differentials.
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(i) When a holiday is designated by a calendar date, for example, January 1, July 4, November 11, or December 25, the holiday will be observed on that date regardless of Saturdays and Sun- days. Customs Officers who perform regularly-scheduled, non-overtime, tours of duty on those days shall be paid the holiday differential. Holidays not designated by a specific calendar date, such as President’s Day (the third Monday in February), shall be observed on that date, and Customs Officers who perform regularly-scheduled, non-over- time, work on those days shall be paid the holiday differential.
(ii) Inauguration Day (January 20 of each fourth year after 1965), is a legal public holiday for the purpose of the Act. Customs Officers whose duty loca- tions are in the District of Columbia, or Montgomery and Prince George counties in Maryland, or Arlington and Fairfax counties in Virginia, or in the cities of Alexandria and Falls Church in Virginia, who perform regularly- scheduled, non-overtime, work on that day shall be paid the holiday differen- tial. When Inauguration Day falls on Sunday, the next succeeding day se- lected for the public observance of the inauguration of the President is the legal public holiday.
(iii) If a legal holiday falls on a Cus- toms Officer’s regularly-scheduled day off, the officer shall receive a holiday ‘‘in lieu of’’ that day. Holidays ‘‘in lieu of’’ shall not be granted for Inaugura- tion Day. A Customs Officer who works on an ‘‘in lieu of’’ holiday shall be paid the holiday differential.
(iv) If a Customs Officer is assigned to a regularly-scheduled, non-overtime, tour of duty which contains hours within and outside the 24-hour calendar day of a holiday—for example, a tour of duty starting at 8 p.m. on a Monday holiday following a scheduled day off on Sunday and ending at 4 a.m. on Tuesday—the Customs Officer shall re- ceive the holiday differential (up to 8 hours) for work performed during that shift. If the Customs Officer is assigned more than one regularly-scheduled, non-overtime, tour of duty which con- tains hours within and outside the 24- hour calendar day of a holiday—for ex- ample, a tour of duty starting at 8 p.m. on the Wednesday before a Thursday
holiday and ending at 4 a.m. on Thurs- day with another regularly-scheduled, non-overtime, tour of duty starting at 8 p.m. on the Thursday holiday and ending at 4 a.m. on Friday—the man- agement official in charge of assigning work shall designate one of the tours of duty as the officer’s holiday shift and the officer shall receive holiday dif- ferential (up to 8 hours) for work per- formed during the entire period of the designated holiday shift. The Customs Officer shall not receive holiday dif- ferential for any of the work performed on the tour of duty which has not been designated as the holiday shift but will be eligible for Sunday or night dif- ferential as appropriate.
(v) Customs Officers who are regu- larly scheduled, but not required, to work on a holiday shall receive their hourly rate of base pay for that 8-hour tour plus any Sunday or night differen- tial they would have received had the day not been designated as a holiday. To receive holiday pay under this para- graph, the Customs Officer must be in a pay status (at work or on paid leave), either the last work day before the hol- iday or the first work day following the holiday.
(vi) A Customs Officer who works only a portion of a regularly-scheduled, non-overtime, holiday shift will be paid the holiday differential for the actual hours worked and the appropriate dif- ferential (Sunday or night) for the re- maining portion of the shift such offi- cer was not required to work. The night differential premium pay shall be calculated based on the rate applicable to the entire shift.
(2) Sunday differential. A Customs Of- ficer who performs any regularly- scheduled work on a Sunday that is not a Federal holiday shall receive pay for that work at the officer’s hourly rate of base pay, which includes authorized locality pay, plus premium pay amounting to 50 percent of that base rate. Sunday differential premium pay will be paid only for time worked and is not applicable to overtime work per- formed on a Sunday. A Customs Officer whose regularly-scheduled work occurs in part on a Sunday, that is not a Fed- eral holiday, and in part on the pre- ceding or following day, will receive the Sunday differential premium pay
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for the hours worked between 12:01 a.m. and 12 Midnight on Sunday. Intermit- tent employees are not entitled to Sun- day differentials.
(3) Night work differentials. A Customs Officer who performs any regularly- scheduled night work shall receive pay for that work at the officer’s hourly rate of base pay, including locality pay as authorized, plus the applicable pre- mium pay differential, as specified below, but shall not receive such night differential for work performed during overtime assignments. When all or the majority of the hours of a Customs Of- ficer’s regularly-scheduled work occur between 3 p.m. and 8 a.m., the officer shall receive a night differential pre- mium for all the hours worked during that assignment. Intermittent employ- ees are not entitled to night differen- tials.
(i) 3 p.m. to Midnight. If more than half of the hours of a Customs Officer’s regularly-scheduled shift occur be- tween the hours of 3 p.m. and 12 Mid- night, the officer shall be paid at the officer’s hourly rate of base pay and shall also be paid a premium of 15 per- cent of that hourly rate of base pay for all the hours worked.
(ii) 11 p.m. to 8 a.m. If more than half of the hours of a Customs Officer’s reg- ularly-scheduled shift occur between the hours of 11 p.m. and 8 a.m., the offi- cer shall be paid at the officer’s hourly rate of base pay and shall also be paid a premium of 20 percent of that hourly rate of base pay for all the hours worked.
(iii) 7:30 p.m. to 3:30 a.m. Shift. If the regularly-scheduled shift of a Customs Officer is 7:30 p.m. to 3:30 a.m., the offi- cer shall be paid at the officer’s hourly rate of base pay and shall also be paid a premium of 15 percent of that hourly rate of base pay for the work performed between 7:30 p.m. and 11:30 p.m. and 20 percent of that hourly rate of base pay for the work performed between 11:30 p.m. and 3:30 a.m.
(iv) Work Scheduled During Two Dif- ferential Periods. A Customs Officer shall only be paid one night differen- tial rate per regularly-scheduled shift, except as provided for in paragraph (iii) above. A Customs Officer whose regu- larly-scheduled work occurs during two separate differential periods shall re-
ceive the night differential premium rate which applies to the majority of hours scheduled.
(v) Night Work Which Occurs in Part on a Sunday. When a Customs Officer’s regularly-scheduled shift occurs in part on a Sunday, the officer shall receive Sunday differential pay for those hours of the work which are performed dur- ing the 24 hour period of the Sunday, and the night differential pay for those hours which do not fall on the Sunday. For example, a Customs Officer who is assigned and works a shift which starts at 8 p.m. Sunday and ends at 4 a.m. Monday, shall receive 4 hours of Sun- day premium pay and 4 hours of night pay. The night differential pay shall be calculated based on the rate applicable to the particular tour of duty.
(h) Limitations. Total payments for overtime/commute, and differentials for holiday, Sunday, and night work that a Customs Officer is paid shall not exceed any applicable fiscal year pay cap established by Congress. The Com- missioner of Customs or the Commis- sioner’s designee may waive this limi- tation in individual cases to prevent excessive costs or to meet emergency requirements of the Customs Service. However, compensation awarded to a Customs Officer for work not per- formed, which includes overtime awards during military leave or court leave, continuation of pay under work- ers compensation law, and awards made in accordance with back pay set- tlements, shall not be applied to any applicable pay cap calculations.
[28 FR 14808, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.16, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 24.17 Reimbursable services of CBP employees.
(a) Amounts of compensation and ex- penses chargeable to parties-in-interest in connection with services rendered by CBP employees during regular hours of duty or on Customs overtime assign- ments (19 U.S.C. 267, 1451), under one or more of the following circumstances shall be collected from such parties-in- interest and deposited by port directors
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as repayments to the appropriation from which paid.
(1) When a CBP employee is assigned on board a vessel or vehicle under au- thority of section 457, Tariff Act of 1930, to protect the revenue, the owner or master of such vessel or vehicle shall be charged the full compensation and authorized travel and subsistence expenses of such employee from the time he leaves his official station until he returns thereto.
(2) When a CBP employee is assigned on board a vessel under authority of section 458, Tariff Act of 1930, to super- vise the unlading of such vessel, the master or owner of such vessel shall be charged the full compensation of such employee for every day consumed in unlading after the expiration of 25 days after the date of the vessel’s entry.
(3) When a CBP employee is assigned under authority of section 304, Tariff Act of 1930, as amended, to supervise the exportation, destruction, or mark- ing to exempt articles from the duty provided for in such section, the im- porter of such merchandise shall be charged the full compensation and au- thorized travel and subsistence ex- penses of such employee from the time he leaves his official station until he returns thereto.
(4) When a CBP employee is assigned pursuant to § 101.4 of this chapter to a Customs station or other place which is not a port of entry for service in con- nection with the entry or clearance of a vessel, the owner, master, or agent of the vessel shall be charged the full compensation and authorized travel and subsistence expenses of such em- ployee from the time he leaves his offi- cial station until he returns. When a CBP employee is so assigned to render service in connection with the entry or delivery of merchandise only, the pri- vate interest shall be charged only for the authorized travel and subsistence expenses incurred by such employee from the time he leaves his official sta- tion until he returns thereto except that no collection need be made if the total amount chargeable against one importer for one day amounts to less than 50 cents (see § 101.4(b) of this chap- ter). Where the amount chargeable is 50 cents or more, but less than $1, a min- imum charge of $1 shall be made.
(5) When a CBP employee is assigned under authority of section 447, Tariff Act of 1930, to make entry of a vessel at a place other than a port of entry or to supervise the unlading of cargo, the private interest shall be charged the full compensation and authorized trav- el and subsistence expenses of such em- ployee from the time he leaves his offi- cial station until he returns thereto.
(6) [Reserved] (7) When a CBP employee is assigned
on any vessel or vehicle, under author- ity of section 456, Tariff Act of 1930, while proceeding from one port to an- other, the master or owner of such ves- sel or vehicle shall be charged the full compensation and authorized travel and subsistence expenses of such em- ployee from the time he leaves his offi- cial station until he returns thereto, or, in lieu of such expenses, the master or owner may furnish such employee the accommodations usually supplied to passengers.
(8) When a CBP employee is assigned under authority of section 562, Tariff Act of 1930, as amended, to supervise the manipulation of merchandise at a place other than a bonded warehouse, the compensation and expenses of such employee shall be reimbursed to the Government by the party in interest. A Customs officer so assigned is not act- ing as a customs warehouse officer, since the services have no connection with a customs bonded warehouse.
(9) When a CBP employee is assigned to supervise the destruction of mer- chandise pursuant to section 557(c), Tariff Act of 1930, as amended, at a place where a CBP employee is not reg- ularly assigned, the full compensation and expenses of such employee shall be reimbursed to the Government by the party in interest.
(10) When a CBP employee is assigned to supervise the labeling of imported merchandise in accordance with the provisions of §§ 11.12(b), 11.12a(b), 11.12b(b) of the regulations of this chapter or the removal or obliteration of prohibited markings and trade marks from merchandise which has been detained or seized in accordance with the provisions of §§ 11.13(c) and 11.17(b) of the regulations of this chap- ter or to supervise the exportation or destruction of any such merchandise,
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the compensation and expenses of such CBP employee shall be reimbursed to the Government by the party in inter- est.
(11) When a CBP employee is assigned to supervise examination, sampling, weighing, repacking, segregation, or other operation on merchandise in ac- cordance with §§ 151.4, 151.5, 158.11, 158.14, and 158.42 of this chapter, the compensation and other expenses of such employee shall be reimbursed to the Government by the party-in-inter- est except when a warehouse proprietor is liable therefor.
(12) When a CBP employee is assigned to provide Customs services at an air- port or other facility under 19 U.S.C. 58b, the facility shall reimburse to the Government an amount equal to the salary and expenses of such employee (including overtime) plus any other ex- penses incurred in providing those Cus- toms services at the facility.
(b) When a CBP employee is assigned to render services the nature of which is such that the private interest is re- quired to reimburse the Government for his compensation and on the same assignment performs services for which compensation is not reimbursable, a charge shall be made to the private in- terest for the full compensation of the CBP employee unless the time devoted to each class of service can be clearly segregated.
(c) The charge for any service enu- merated in this section for which ex- penses are required to be reimbursed shall include actual transportation ex- penses of a CBP employee within the port limits and any authorized travel expenses of a CBP employee, including per diem, when the services are per- formed outside the port limits irrespec- tive of whether the services are per- formed during a regular tour of duty or during a Customs overtime assign- ment. No charge shall be made for transportation expenses when a CBP employee is reporting to as a first daily assignment, or leaving from as a last daily assignment, a place within or outside the port limits where he is as- signed to a regular tour of duty. No charge shall be made for transpor- tation expenses within the port limits or travel expenses, including per diem, outside the port limits in connection
with a Customs overtime assignment for which reimbursement of expenses is not covered by this section.
(d) Computation charge for reimburs- able services. The charge to be made for the services of a CBP employee on a regular workday during his basic 40- hour workweek shall be computed at a rate per hour equal to 137 percent of the hourly rate of regular pay of the particular employee with an addition equal to any night pay differential ac- tually payable under 5 U.S.C. 5545. The rate per hour equal to 137 percent of the hourly rate of regular pay is com- puted as follows:
Hours Hours
Gross number of working hours in 52 40-hour weeks ................................... .............. 2,080
Less: 9 Legal public holidays—New
Years Day, Washington’s Birth- day, Memorial Day, Independ- ence Day, Labor Day, Columbus Day, Teterans Day, Thanks- giving Day, and Christmas Day .. 72 ..............
Annual Leave—26 days ........................ 208 .............. Sick Leave—13 days ............................ 104 384
Net number of working hours ................ .............. 1,696
Gross number of working hours in 52 40-hour weeks ................................................................... 2,080
Working hour equivalent of Government contribu- tions for employee uniform allowance, retire- ment, life insurance and health benefits com- puted at 111⁄2 percent of annual rate of pay of employee .............................................................. 239
Equivalent annual working hour charge to Cus- toms appropriation ............................................... 2,319
Ratio of annual number of working hours charged to Customs appropriation to net number of an- nual working hours 2,319/1,696=137 percent.
(1) The charge to be made for the re- imbursable services of a CBP employee to perform on a holiday or outside the established basic workweek shall be the amount actually payable to the employee for such services under the Federal Employees Pay Act of 1945, as amended (5 U.S.C. 5542(a), 5546), or the Customs overtime laws (19 U.S.C. 267, 1451), or both, as the case may be. When such services are performed by an intermittent when-actually-em- ployed employee, the charge for such services shall be computed at a rate per hour equal to 108 percent of the hourly rate of the regular pay of such em- ployee to provide for reimbursement of the Government’s contribution under the Federal Insurance Contributions
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Act, as amended (25 U.S.C. 3101, et seq.), and employee uniform allowance. The time charged shall include any time within the regular working hours of the employee required for travel be- tween the duty assignment and the place where the employee is regularly employed excluding lunch periods, charged in multiples of 1 hour, any fractional part of an hour to be charged as 1 hour when the services are per- formed during the regularly scheduled tour of duty of the officer or between the hours of 8 a.m. and 5 p.m. on week- days when the officer has no regularly scheduled tour of duty. In no case shall the charge be less than $1.
(2) The necessary transportation ex- penses and any authorized per diem ex- penses of a CBP employee assigned to perform reimbursable services at a lo- cation at which he is not regularly as- signed shall be reimbursed by the re- sponsible party.
(3) When a CBP employee is regularly assigned to duty at more than one lo- cation, the charge for his compensation and transportation expenses in going from one location to another shall be equitably apportioned among the par- ties concerned. However, no charge shall be made for transportation ex- penses when a CBP employee is report- ing to as a first assignment, or leaving from as a last assignment, a place where he is regularly assigned to duty.
(4) Upon a failure to pay such charges when due, or to comply with the appli- cable laws and regulations, the port di- rector shall report the facts to the Ac- counting Services—Accounts Receiv- able, which shall take appropriate ac- tion to collect the charges.
(e) The reimbursable charge for cus- toms overtime compensation shall be computed in accordance with § 24.16.
(f) Medicare Compensation Costs. In ad- dition to other expenses and compensa- tion chargeable to parties-in-interest as set forth in this section, such per- sons shall also be required to reimburse Customs in the amount of 1.35 percent of the reimbursable compensation ex- penses incurred. Such payment will re- imburse Customs for its share of Medi- care costs.
[28 FR 14808, Dec. 31, 1963]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.17, see the List of CFR
Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 24.18 Preclearance of air travelers in a foreign country; reimbursable cost.
(a) Preclearance is the tentative ex- amination and inspection of air trav- elers and their baggage at foreign places where U.S. Customs personnel are stationed for that purpose.
(b) At the request of an airline, trav- elers on a direct flight to the United States from a foreign place described in paragraph (a) of this section may be precleared prior to departure from such place. A charge based on the excess cost to Customs of providing preclearance services as defined in paragraph (c) of this section shall be made to the airline.
(c) The reimbursable excess cost is the difference between the cost of ex- amining and inspecting air travelers and their baggage upon arrival in the United States assuming no preclearance was provided, and the cost of providing preclearance for air trav- elers at the place of departure. Such excess cost shall include all items at- tributable to the preclearance oper- ation. This does not include the salary of personnel regularly assigned to a preclearance station other than ap- proved salary differentials related to the foreign assignment and the salary of relief details made necessary by rea- son of the nature of the operation. In addition, such cost shall include the following allowances and expenses:
(1) Housing allowances; (2) Post of duty allowances; (3) Education allowances; (4) Transportation cost incident to
the assignment to the foreign station and return, including transportation of family and household effects;
(5) Home leave and associated trans- portation costs; and
(6) Equipment, supplies and adminis- trative costs including costs of super- vising the preclearance installation.
(d) The reimbursable excess cost de- scribed in paragraph (c) of this section shall be determined for each preclearance installation. On the basis of the excess cost figure for each in- stallation, the excess cost of providing preclearance service for a biweekly pay
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period shall be determined. The initial schedule of biweekly excess cost will be based on the actual excess cost for fis- cal year 1969. Thereafter, a quarterly (ending with the pay period closely cor- responding to June 30, September 30, December 31, and March 31) cost anal- ysis will be conducted and the schedule of biweekly excess costs will be ad- justed so that the current biweekly ex- cess cost schedule will reflect the ac- tual excess costs of the previous quar- ter. Such schedules of biweekly costs for each installation shall be published in the FEDERAL REGISTER. The bi- weekly excess cost in effect at an in- stallation at the time the charge is made shall be used in calculating the prorated charge for preclearance serv- ice for each airline in accordance with paragraph (e) of this section.
(e) The charge to each airline for preclearance service shall be its pro- rated share of the applicable excess cost prorated to the aircraft receiving such services during the billing period on the following basis:
(1) Five percent shall be distributed equally among the airlines serviced.
(2) Ten percent shall be distributed proportionately as the number of clear- ances serviced bears to the total num- ber of clearances.
(3) Eighty-five percent shall be dis- tributed proportionately as the number of passengers and/or crew serviced for each airline bears to the total number of passengers and/or crew serviced.
(f) Customs services for which over- time compensation is provided for by section 5 of the Act of February 13, 1911, as amended (19 U.S.C. 267), and the expenses recovered thereunder are gov- erned by § 24.16 and are in no way af- fected by this section. (63 Stat. 290; 31 U.S.C. 483a)
[T.D. 70–34, 35 FR 1161, Jan. 29, 1970, as amended by T.D. 85–123, 50 FR 29953, July 23, 1985]
§ 24.21 Administrative overhead charges.
(a) Reimbursable and overtime services. An additional charge for administra- tive overhead costs shall be collected from parties-in-interest who are re- quired to reimburse Customs for com- pensation and/or expenses of Customs officers performing reimbursable and
overtime services for the benefit of such parties under §§ 24.17 and 24.16, re- spectively, of this part. The cost of the charge for administrative overhead shall be 15 percent of the compensation and/or expenses of the Customs officers performing the service.
(b) Other services. An additional charge for administrative overhead costs shall be collected from parties-in- interest who are required to reimburse Customs for compensation and/or ex- penses of Customs officers performing various services for the benefit of such parties. The cost of the charge for ad- ministrative overhead shall be 15 per- cent of the compensation and/or ex- penses of the Customs officers per- forming the service. The fees, whether billed or not, include, but are not lim- ited to:
(1) Navigation fees for vessel services in § 4.98;
(2) [Reserved] (3) Fee to establish container sta-
tions in § 19.40; (4) Fee for furnishing the names and
addresses of importers of merchandise appearing to infringe a registered pat- ent in § 24.12(a)(3);
(5) Charge for storing merchandise in a Government-owned or rented build- ing in § 24.12(c);
(6) Charge for the sale of in-bond and in-transit seals in § 24.13(f);
(7) Charge for the sale of Customs forms in § 24.14(b);
(8) Charge for preclearing aircraft in a foreign country in § 24.18;
(9) Fee for issuing a customhouse broker’s license in § 111.12(a);
(10) Fee for designating a carrier or freight forwarder as a carrier of Cus- toms bonded merchandise in § 112.12(a);
(11) Fee for issuing a Customs bonded cartman’s license in § 112.22(a)(2);
(12) Fee for recording of trademarks in § 133.3;
(13) Fee for renewing, or recording a change in name of owner, or of owner- ship of, a trademark in §§ 133.5(d), 133.6(b), 133.7(a)(3);
(14) Fee for recording of trade name in § 133.13(b);
(15) Fee for recording a copyright in § 133.33(b); and
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(16) Fee for renewing, or recording a change in name of owner, or of owner- ship of, a copyright in §§ 133.35(b)(2), 133.36(b), 133.37(a)(3);
(c) No administrative overhead charge. No additional charge for administra- tive overhead costs discussed in para- graphs (a) and (b) of this section shall be collected if (1) imposition of such charge is precluded by law; (2) there is a formal accounting system for deter- mining administrative overhead for a service, in which case that system shall be used for determining the cost of the charge for administrative over- head; or (3) the charge for administra- tive overhead for a service is specifi- cally provided for elsewhere in this chapter.
[T.D. 84–231, 49 FR 46122, Nov. 23, 1984, as amended by T.D. 95–99, 60 FR 62733, Dec. 7, 1995; T.D. 99–64, 64 FR 43266, Aug. 10, 1999]
§ 24.22 Fees for certain services. (a) Definitions. For purposes of this
section: (1) The term vessel includes every de-
scription of watercraft or other con- trivance used or capable of being used as a means of transportation on water but does not include any aircraft.
(2) The term arrival means arrival at a port of entry in the customs territory of the United States or at any place serviced by any such port of entry.
(3) The expression calendar year means the period from January 1 to December 31 of any particular year.
(4) The term ferry means any vessel which is being used to provide trans- portation only between places that are no more than 300 miles apart and which is being used to transport only:
(i) Passengers, and/or (ii) Vehicles, or railroad cars, which
are being used, or have been used, in transporting passengers or goods.
(b) Fee for arrival of certain commercial vessels—(1) Vessels of 100 net tons or more—(i) Fee. Except as provided in paragraphs (b)(2) and (b)(4) of this sec- tion, a processing fee in the amount of $437 shall be tendered by the master, li- censed deck officer, or purser upon ar- rival of any commercial vessel of 100 net tons or more which is required to enter under § 4.3 of this chapter or upon arrival of any U.S.-flag vessel of 100 net tons or more proceeding coastwise
under § 4.85 of this chapter. The fee shall be collected for each arrival re- gardless of the number of arrivals tak- ing place in the course of a single voy- age.
(ii) Fee limitation. No fee or portion thereof shall be collected under para- graph (b)(1)(i) of this section for the ar- rival of a vessel during any calendar year after a total of $5,955 in fees has been paid under paragraphs (b)(1)(i) and (b)(2)(i) of this section for all arrivals of such vessel during such calendar year, provided that adequate proof of such total payment is submitted to Customs.
(2) Barges and other bulk carriers from Canada or Mexico—(i) Fee. A processing fee of $110 shall be tendered upon ar- rival of any barge or other bulk carrier which arrives from Canada or Mexico either in ballast or transporting only cargo laden in Canada or Mexico. The fee shall be collected for each arrival regardless of the number of arrivals taking place in the course of a single voyage. For purposes of this paragraph, the term ‘‘barge or other bulk carrier’’ means any vessel, other than a ferry, which is not self-propelled or which transports fungible goods that are not packaged in any form.
(ii) Fee limitation. No fee or portion thereof shall be collected under para- graph (b)(2)(i) of this section for the ar- rival of a barge or other bulk carrier during any calendar year after a total of $1,500 in fees has been paid under paragraphs (b)(1)(i) and (b)(2)(i) of this section for all arrivals of such vessel during such calendar year, provided that adequate proof of such total pay- ment is submitted to Customs.
(3) Prepayment. The vessel operator, owner, or agent may at any time pre- pay the maximum calendar year amount specified in paragraph (b)(1)(ii) or (b)(2)(ii) of this section, or any re- maining portion of that amount if indi- vidual arrival fees have already been paid on the vessel for that calendar year. Prepayment must be made at a CBP port office. When prepayment is for the remaining portion of a max- imum calendar year amount, certified copies of receipts (Customs Form 368 or 368A) issued for individual arrival fee payments during the calendar year must accompany the payment.
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(4) Exceptions. The following vessels are exempt from payment of the fees specified in paragraphs (b)(1) and (b)(2) of this section:
(i) Foreign passenger vessels making at least three trips a week from a port in the United States to the high seas and returning to the same U.S. port without having touched any foreign port or place, even though formal entry is still required;
(ii) Any vessel which, at the time of arrival, is being used solely as a tug- boat;
(iii) Any government vessel for which no report of arrival or entry is required as provided in § 4.5 of this chapter; and
(iv) A ferry except for a ferry that began operations on or after August 1, 1999, and operates south of 27 degrees latitude and east of 89 degrees lon- gitude.
(c) Fee for arrival of a commercial truck—(1) Fee. The driver or other per- son in charge of a commercial truck shall, upon arrival, proceed to Customs and tender the sum of $5.50 for the services provided. The fee shall not apply to any commercial truck which, at the time of arrival, is being trans- ported by any vessel other than a ferry. For purposes of this paragraph, the term ‘‘commercial truck’’ means any self-propelled vehicle, including an empty vehicle or a truck cab without a trailer, which is designed and used for the transportation of commercial mer- chandise or for the transportation of non-commercial merchandise on a for- hire basis.
(2) Fee limitation. No fee shall be col- lected under paragraph (c)(1) of this section for the arrival of a commercial truck during any calendar year once a prepayment of $100 has been made and a decal has been affixed to the vehicle windshield as provided in paragraph (c)(3) of this section.
(3) Prepayment. The owner, agent, or person in charge of a commercial vehi- cle may at any time prepay a fee of $100 to cover all arrivals of that vehicle during a calendar year or any remain- ing portion of a calendar year. Prepay- ment must be made in accordance with the procedures set forth in this para- graph and paragraph (i) of this section. Prepayment may be sent by mail, with a properly completed Customs Form
339, Annual User Fee Decal Request, to the following address: Bureau of Cus- toms and Border Protection, Decal Program Administrator, P.O. Box 382030, Pittsburgh, PA 15250–8030. Alter- natively, the decal request and prepay- ment by credit card may be made via the Internet through the ‘‘Traveler In- formation’’ links at CBP’s website (http://www.cbp.gov). A third option, prepayment at the port, is subject to the port director’s discretion to main- tain user fee decal inventories. Once the prepayment has been made under this paragraph, a decal will be issued to be permanently affixed by adhesive to the lower left hand corner of the vehi- cle windshield or on the left wing win- dow, and otherwise in accordance with the accompanying instructions, to show that the vehicle is exempt from payment of the fee for individual arriv- als during the applicable calendar year or any remaining portion of that year.
(d) Fee for arrival of a railroad car—(1) Fee. Except as provided in paragraph (d)(6) of this section, a fee of $8.25 shall be charged for the arrival of each load- ed or partially loaded passenger or commercial freight railroad car. The railroad company receiving a railroad car in interchange at a port of entry or, barring interchange, the company moving a car in line haul service into the customs territory of the United States, shall be responsible for pay- ment of the fee. Payment of the fee shall be made in accordance with the procedures set forth in paragraph (d)(3) or (d)(4) of this section. For purposes of this paragraph, the term ‘‘railroad car’’ means any carrying vehicle, measured from coupler to coupler and designed to operate on railroad tracks, other than a locomotive or a caboose.
(2) Fee limitation. No fee shall be col- lected under paragraph (d)(1) of this section for the arrival of a railroad car during any calendar year once a pre- payment of $100 has been made as pro- vided in paragraph (d)(3) of this sec- tion, provided that adequate records are maintained to enable Customs to verify any such prepayment.
(3) Prepayment. As an alternative to the payment procedures set forth in paragraph (d)(4) of this section, a rail- road company may at any time prepay a fee of $100 to cover all arrivals of a
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railroad car during a calendar year or any remaining portion of a calendar year. The prepayment, accompanied by a letter setting forth the railroad car number(s) covered by the payment, the calendar year to which the payment applies, a return address, and any addi- tional information required under paragraph (i) of this section, must be mailed to: Customs and Border Protec- tion, National Finance Center, Collec- tions Section, P.O. Box 68907, Indianap- olis, IN 46268 (or, if for overnight deliv- ery, to: the same addressee at 6026 Lakeside Blvd., Indianapolis, IN 46278).
(4) Statement filing and payment proce- dures. (i) The Association of American Railroads (AAR), the National Railroad Passenger Corporation (AMTRAK), and any railroad company preferring to act individually, shall file monthly state- ments with Customs, and shall make payment of the arrival fees to Customs, in accordance with the procedures set forth in paragraphs (d)(4) (ii) and (i) of this section. Each monthly statement shall indicate:
(A) The number of railroad cars sub- ject to the arrival fee during the rel- evant period;
(B) The number of such railroad cars pulled by each carrier; and
(C) The total processing fees due from each carrier for the relevant pe- riod.
(ii) AMTRAK and railroad companies acting individually shall file each monthly statement within 60 days after the end of the applicable calendar month, and the fees covered by each statement shall be remitted with the statement. Monthly statements pre- pared by the AAR on behalf of indi- vidual railroad companies shall be filed within 60 days after the end of the ap- plicable calendar month, and each rail- road company shall remit the fees as calculated for it by the AAR within 60 days after the end of that calendar month. In cases of conflict between the AAR and an individual railroad com- pany regarding calculation of the fees, the railroad company shall timely remit the amount as calculated by the AAR even if the dispute is unresolved. Subsequent settlements may be ac- counted for by an explanation in, and adjustment of, the next payment to Customs. Payment must be made in ac-
cordance with this paragraph and para- graph (i) of this section and must be sent by mail to the following address: Customs and Border Protection, Na- tional Finance Center, Collections Sec- tion, P.O. Box 68907, Indianapolis, IN 46268 (or, if for overnight delivery, to: the same addressee at 6026 Lakeside Blvd., Indianapolis, IN 46278).
(5) Maintenance of records. The AAR, AMTRAK, and each railroad company preparing and filing its own statements shall maintain all documentation nec- essary for Customs to verify the accu- racy of the fee calculations and to oth- erwise determine compliance under the law. Such documentation shall be maintained in the United States for a period of 5 years from the date of fee calculation. The AAR, AMTRAK, and each railroad company preparing and filing its own statements shall provide to Customs the name, address, and telephone number of a responsible offi- cer who is able to verify any state- ments or records required to be filed or maintained under this section, and shall promptly notify Customs of any changes in identifying information pre- viously submitted.
(6) Exceptions. The following railroad cars are exempt from payment of the fee specified in paragraph (d)(1) of this section:
(i) Any railroad car whose journey originates and terminates in the same country, provided that no passengers board or disembark from the train and no cargo is loaded or unloaded from the car while the car is within any country other than the country in which the car originates and terminates, includ- ing any such railroad car which is set out for repairs outside the United States and then returned to on-line service without having undergone load- ing or unloading of passengers or cargo during the repair period;
(ii) Any railroad car transporting only containers, bins, racks, dunnage and other fixed or loose equipment or materials which have been used for en- closing, supporting or protecting com- mercial freight; and
(iii) Any railroad car which, at the time of arrival, is being transported by any vessel other than a ferry.
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(e) Fee for arrival of a private vessel or private aircraft—(1) Fee. Except as pro- vided in paragraph (e)(3) of this sec- tion, the master or other person in charge of a private vessel or private aircraft must, upon first arrival in any calendar year, proceed to CBP and ten- der the sum of $27.50 to cover services provided in connection with all arrivals of that vessel or aircraft during that calendar year. A properly completed Customs Form 339, Annual User Fee Decal Request, must accompany the payment. Upon payment of the annual fee, a decal will be issued to be perma- nently affixed by adhesive to the vessel or aircraft, in accordance with accom- panying instructions, as evidence that the fee has been paid. Except in the case of private aircraft, and aircraft landing at user fee airports authorized under 19 U.S.C. 58b, all overtime charges provided for in this part re- main payable notwithstanding pay- ment of the fee specified in this para- graph.
(2) Prepayment. A private vessel or private aircraft owner or operator may, at any time during the calendar year, prepay the $27.50 annual fee specified in paragraph (e)(1) of this section. Prepay- ment must be made in accordance with the procedures set forth in this para- graph and paragraph (i) of this section. Prepayment may be sent by mail, along with a properly completed Cus- toms Form 339, Annual User Fee Decal Request, to the following address: Cus- toms and Border Protection, Decal Program Administrator, P.O. Box 382030, Pittsburgh, PA 15250–8030. Alter- natively, the decal request and prepay- ment by credit card may be made via the Internet through the ‘‘Traveler In- formation’’ links at CBP’s website (http://www.cbp.gov). A third option, prepayment at the port, is subject to the port director’s discretion to main- tain user fee decal inventories.
(3) Exceptions. The following are ex- empt from payment of the fee specified in paragraph (e)(1) of this section:
(i) Private pleasure vessels of less than 30 feet in length, so long as they are not carrying any goods required to be declared to Customs;
(ii) Any private pleasure vessel granted a cruising license under § 4.94
of this chapter, during the term of the license; and
(iii) Any private vessel which, at the time of arrival, is being transported by any vessel other than a ferry.
(f) Fee for dutiable mail. The addressee of each item of dutiable mail for which a Customs officer prepares documenta- tion shall be assessed a processing fee in the amount of $5.50. When the mer- chandise is delivered by the Postal Service, the fee shall be shown as a sep- arate item on the entry and collected at the time of delivery of the merchan- dise along with any duty and taxes due. When Customs collects the fee directly from the importer or his agent, the fee will be included as a separate item on the informal entry or entry summary document.
(g) Fees for arrival of passengers aboard commercial vessels and commercial air- craft—(1) Fees. (i) Subject to paragraphs (g)(1)(ii) and (g)(3) of this section, a fee of $5.50 must be collected and remitted to CBP for services provided in connec- tion with the arrival of each passenger aboard a commercial vessel or commer- cial aircraft from a place outside the United States, other than Canada, Mexico, one of the territories and pos- sessions of the United States, or one of the adjacent islands, in either of the following circumstances:
(A) When the journey of the arriving passenger originates in a place outside the United States other than Canada, Mexico, one of the territories or posses- sions of the United States, or one of the adjacent islands; or
(B) When the journey of the arriving passenger originates in the United States and is not limited to Canada, Mexico, territories and possessions of the United States, and adjacent is- lands.
(ii) Subject to paragraph (g)(3) of this section, a fee of $1.93 must be collected and remitted to Customs for services provided in connection with the arrival of each passenger aboard a commercial vessel from Canada, Mexico, one of the territories and possessions of the United States, or one of the adjacent islands, regardless of whether the jour- ney of the arriving passenger origi- nates in a place outside the United States or in the United States.
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(iii) For purposes of this paragraph (g), the term ‘‘territories and posses- sions of the United States’’ includes American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands, and the term ‘‘ad- jacent islands’’ includes Saint Pierre, Miquelon, Cuba, the Dominican Repub- lic, Haiti, Bermuda, the Bahamas, Bar- bados, Jamaica, the Windward and Lee- ward Islands, Trinidad, Martinique, and other British, French, and Nether- lands territory or possessions in or bor- dering on the Caribbean Sea.
(iv) For purposes of this paragraph (g), a journey, which may encompass multiple destinations and more than one mode of transportation, will be deemed to originate in the location where the person’s travel begins under cover of a transaction which includes the issuance of a ticket or travel docu- ment for transportation into the cus- toms territory of the United States.
(v) For purposes of this paragraph (g), the term ‘‘passenger’’ means a nat- ural person for whom transportation is provided and includes an infant wheth- er a separate ticket or travel document is issued for the infant or the infant oc- cupies a seat or is held or carried by another passenger.
(vi) For purposes of paragraph (g)(1)(ii) of this section, the term ‘‘commercial vessel’’ includes any ferry that began operations on or after Au- gust 1, 1999, and operates south of 27 de-
grees latitude and east of 89 degrees longitude.
(vii) In the case of a commercial ves- sel making a single voyage involving two or more United States ports, the applicable fee prescribed under para- graph (g)(1)(i) or (g)(1)(ii) of this sec- tion is required to be charged only one time for each passenger.
(2) Fee chart. The chart set forth below outlines the application of the fees specified in paragraphs (g)(1)(i) and (ii) of this section with reference to the place where the passenger’s journey originates and with reference to the place from which the passenger arrives in the United States (that is, the last stop on the journey prior to arrival in the United States). In the chart:
(i) SL stands for ‘‘Specified Loca- tion’’ and means Canada, Mexico, any territories and possessions of the United States, and any adjacent is- lands;
(ii) The single asterisk (*) means that the journey originating in the United States is limited to travel to one or more Specified Locations;
(iii) The double asterisk (**) means that the journey originating in the United States includes travel to at least one place other than a Specified Location; and
(iv) N/A indicates that the facts pre- sented in the chart preclude applica- tion of the fee.
Place where journey originates (see (g)(1)(iv))
Fee status for arrival from SL Fee status for arrival from other than SL
Vessel Aircraft Vessel Aircraft
SL ............................................................................ $1.93 No fee ................. No fee ................. No fee. Other than SL or U.S. ............................................. 1.93 $5.50 .................. $5.50 .................. $5.50. U.S.* ........................................................................ 1.93 No fee ................. N/A ..................... N/A. U.S.** ...................................................................... 1.93 $5.50 .................. $5.50 .................. $5.50.
(3) Exceptions. The fees specified in paragraph (g)(1) of this section will not apply to the following categories of ar- riving passengers:
(i) Crew members and persons di- rectly connected with the operation, navigation, ownership or business of the vessel or aircraft, provided that the crew member or other person is trav- eling for an official business purpose and not for pleasure;
(ii) Diplomats and other persons in possession of a visa issued by the United States Department of State in class A–1, A–2, C–2, C–3, G–1 through G– 4, or NATO 1–6;
(iii) Persons arriving as passengers on any aircraft used exclusively in the governmental service of the United States or a foreign government, includ- ing any agency or political subdivision
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of the United States or foreign govern- ment, so long as the aircraft is not car- rying persons or merchandise for com- mercial purposes. Passengers on com- mercial aircraft under contract to the U.S. Department of Defense are ex- empted if they have been precleared abroad under the joint DOD/CBP Mili- tary Inspection Program;
(iv) Persons arriving on an aircraft due to an emergency or forced landing when the original destination of the aircraft was a foreign airport;
(v) Persons who are in transit to a destination outside the United States and for whom CBP inspectional serv- ices are not provided;
(vi) Persons departing from and re- turning to the same United States port as passengers on board the same vessel without having touched a foreign port or place; and
(vii) Persons arriving as passengers on board a commercial vessel traveling only between ports that are within the customs territory of the United States.
(4) Fee collection procedures. (i) Each air or sea carrier, travel agent, tour wholesaler, or other party issuing a ticket or travel document for transpor- tation into the customs territory of the United States is responsible for col- lecting from the passenger the applica- ble fee specified in paragraph (g)(1) of this section, including the fee applica- ble to any infant traveling without a separate ticket or travel document. The fee must be separately identified with a notation ‘‘Federal inspection fees’’ on the ticket or travel document issued to the passenger to indicate that the required fee has been collected. A fee relative to an infant traveling with- out a ticket or travel document may be identified instead with the notation on a receipt or other document issued for that purpose or to record the infant’s travel. If the ticket or travel docu- ment, or a receipt or other document issued relative to an infant traveling without a ticket or travel document, is not so marked and was issued in a for- eign country, the fee must be collected by the departing carrier upon depar- ture of the passenger from the United States. If the fee is collected at the time of departure from the United States, the carrier making the collec- tion must issue a receipt to the pas-
senger. U.S.-based tour wholesalers who contract for passenger space and issue non-carrier tickets or travel doc- uments must collect the fee in the same manner as a carrier.
(ii) Collection of the fee under para- graph (g)(1)(i) of this section will in- clude the following circumstances:
(A) When a through ticket or travel document is issued covering (or a re- ceipt or other document issued for an infant traveling without a ticket or travel document indicates that the in- fant’s journey is covering) a journey into the customs territory of the United States which originates in and arrives from a place outside the United States other than Canada, Mexico, one of the territories and possessions of the United States, or an adjacent island;
(B) When a return ticket or travel document is issued (or a receipt or other document that indicates an in- fant traveling without a return ticket or travel document is issued) in con- nection with a journey which origi- nates in the United States, includes a stop in a place other than Canada, Mexico, one of the territories and pos- sessions of the United States, or an ad- jacent island, and the return arrival to the United States is from a place other than one of these specified places; and
(C) When a passenger on a journey in transit through the United States to a foreign destination arrives in the cus- toms territory of the United States from a place other than Canada, Mex- ico, one of the territories and posses- sions of the United States, or an adja- cent island, is processed by CBP, and the journey does not originate in one of these specified places.
(iii) Collection of the fee under para- graph (g)(1)(ii) of this section will in- clude the following circumstances:
(A) When a through ticket or travel document is issued covering (or a re- ceipt or other document issued for an infant traveling without a ticket or travel document indicates that the in- fant’s journey is covering) a journey into the customs territory of the United States from Canada, Mexico, one of the territories and possessions of the United States, or an adjacent is- land;
(B) When a return ticket or travel document is issued (or a receipt or
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other document that indicates an in- fant traveling without a return ticket or travel document is issued) in con- nection with a journey which origi- nates in the United States and the re- turn arrival to the United States is from Canada, Mexico, one of the terri- tories and possessions of the United States, or an adjacent island; and
(C) When a passenger on a journey in transit through the United States to a foreign destination arrives in the cus- toms territory of the United States from Canada, Mexico, one of the terri- tories and possessions of the United States, or an adjacent island and is processed by CBP.
(5) Quarterly payment and statement procedures. Payment to CBP of the fees required to be collected under para- graph (g)(1) of this section must be made no later than 31 days after the close of the calendar quarter in which the fees were required to be collected from the passenger. Payment of the fees must be made, in accordance with the procedures set forth in this para- graph and paragraph (i) of this section, by the party required to collect the fee under paragraph (g)(4)(1) of this sec- tion. Each quarterly fee payment must be sent to the following address: Cus- toms and Border Protection, National Finance Center, Collections Section, P.O. Box 68907, Indianapolis, IN 46268 (or, if for overnight delivery, to: the same addressee at 6026 Lakeside Blvd., Indianapolis, IN 46278). Overpayments and underpayments may be accounted for by an explanation with, and adjust- ment of, the next due quarterly pay- ment to CBP. The quarterly payment must be accompanied by a statement that includes the following informa- tion:
(i) The name and address of the party remitting payment;
(ii) The taxpayer identification num- ber of the party remitting payment;
(iii) The calendar quarter covered by the payment;
(iv) The total number of tickets for which fees were required to be col- lected, the total number of infants traveling without a ticket or travel document for which fees were required to be collected, and the total amount of fees collected and remitted; and
(v) For commercial vessel passengers, the total number of tickets for which fees were required to be collected, the total number of infants traveling with- out a ticket or travel document for which fees were required to be col- lected, the total amount of fees col- lected and remitted to CBP, and a sepa- rate breakdown of the foregoing infor- mation relative to the $5.50 vessel pas- senger fee collected and remitted under paragraph (g)(1)(i) of this section and the $1.93 vessel passenger fee collected and remitted under paragraph (g)(1)(ii) of this section.
(6) Each carrier contracting with a U.S.-based tour wholesaler is respon- sible for notifying Customs of each flight or voyage so contracted, the number of spaces contracted for on each flight or voyage, and the name, address and taxpayer identification number of the tour wholesaler, within 31 days after the close of the calendar quarter in which such a flight or voy- age occurred.
(7) Maintenance of records. Each air or sea carrier, travel agent, tour whole- saler, or other party affected by this paragraph shall maintain all such doc- umentation necessary for Customs to verify the accuracy of fee calculations and to otherwise determine compliance under the law. Such documentation shall be maintained in the United States for a period of 5 years from the date of fee calculation. Each such af- fected party shall provide to Customs the name, address, and telephone num- ber of a responsible officer who is able to verify any statements or records re- quired to be filed or maintained under this section, and shall promptly notify Customs of any changes in the identi- fying information previously sub- mitted.
(8) Limitation on charges. Except in the case of costs reimbursed under § 24.17(a)(14) of this part, Customs serv- ices provided to passengers arriving in the United States on scheduled airline flights (as defined in § 122.1(k) of this chapter and operating within the re- quirements of subpart D of part 122 of this chapter) shall be provided at no cost to airlines and airline passengers other than the fee specified in para- graph (g)(1) of this section.
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(h) Annual customs broker permit fee. Customs brokers are subject to an an- nual fee for each district permit and for a national permit held by an indi- vidual, partnership, association, or cor- poration, as provided in § 111.96(c) of this chapter. The annual fee for each district permit must be submitted to the port through which the broker was granted the permit. The annual fee for a national permit must be submitted to the port through which the broker’s li- cense is delivered.
(i) Information submission and fee re- mittance procedures. In addition to any information specified elsewhere in this section, each payment made by mail must be accompanied by information identifying the person or organization remitting the fee, the type of fee being remitted (for example, railroad car, commercial truck, private vessel), and the time period to which the payment applies. All fee payments required under this section must be in the amounts prescribed and must be made in U.S. currency, or by check or money order payable to Customs and Border Protection, in accordance with the pro- visions of § 24.1 of this part. Authoriza- tion for making payments electroni- cally can be obtained by writing to the National Finance Center, Collections Section, 6026 Lakeside Blvd., Indianap- olis, IN 46278. Where payment is made at a CBP port, credit cards will be ac- cepted only where the port is equipped to accept credit cards for the type of payment being made. If payment is made by check or money order, the check or money order must be anno- tated with the appropriate class code. The applicable class codes and pay- ment locations for each fee are as fol- lows:
(1) Fee under paragraph (b)(1) of this section (commercial vessels of 100 net tons or more other than barges and other bulk carriers from Canada or Mexico): class code 491. Payment loca- tion: port of arrival for each individual arrival (fee to be collected by CBP at the time of arrival) or prepayment at the port in accordance with paragraph (b)(3) of this section;
(2) Fee under paragraph (b)(2) of this section (barges and other bulk carriers from Canada or Mexico): class code 498. Payment location: port of arrival for
each individual arrival (fee to be col- lected by CBP at the time of arrival) or prepayment at the port in accordance with paragraph (b)(3) of this section;
(3) Fee under paragraph (c) of this section (commercial vehicles): for each individual arrival, class code 492; for prepayment of the maximum calendar year fee, class code 902. Payment loca- tion: port of arrival for each individual arrival (fee to be collected by CBP at the time of arrival) or prepayment in accordance with paragraph (c)(3) of this section;
(4) Fee under paragraph (d) of this section (railroad cars): for each indi- vidual arrival (under the monthly pay- ment and statement filing procedure), class code 493; for prepayment of the maximum calendar year fee, class code 903. Payment location: for individual arrivals (monthly payment and state- ment filing), see paragraph (d)(4)(ii) of this section; for prepayment, see para- graph (d)(3) of this section;
(5) Fee under paragraph (e) of this section (private vessels and aircraft): for private vessels, class code 904; for private aircraft, class code 494. Pay- ment location: port of arrival for each individual arrival (fee to be collected by CBP at the time of arrival) or pre- payment in accordance with paragraph (e)(2) of this section;
(6) Fee under paragraph (f) of this section (dutiable main( � class code 496. Payment location: see paragraph (f) of this section;
(7) Fee under paragraph (g)(1)(i) of this section (the $5.50 fee for commer- cial vessel and commercial aircraft passengers): class code 495. Payment lo- cation: see paragraph (g)(5) of this sec- tion;
(8) Fee under paragraph (g)(1)(ii) of this section (the $1.93 fee for commer- cial vessel passengers): class code 484. Payment location: see paragraph (g)(5) of this section; and
(9) Fee under paragraph (h) of this section (customs broker permits): for district permits, class code 497; for na- tional permits, class code 997. Payment location: see paragraph (h) of this sec- tion.
(j) Treatment of fees as Customs duty— (1) Administration and enforcement. Un- less otherwise specifically provided in
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this chapter, all administrative and en- forcement provisions under the Cus- toms laws and regulations, other than those laws and regulations relating to drawback, shall apply with respect to any fee provided for under this section, and with respect to any person liable for the payment of such fee, as if such fee is a Customs duty. For purposes of this paragraph, any penalty assessable in relation to an amount of Customs duty, whether or not any such duty is in fact due and payable, shall be as- sessed in the same manner with respect to any fee required to be paid under this section.
(2) Jurisdiction. For purposes of deter- mining the jurisdiction of any court or agency of the United States, any fee provided for under this section shall be treated as if such fee is a Customs duty.
[T.D. 93–85, 58 FR 54282, Oct. 21, 1993, as amended by T.D. 94–1, 58 FR 69470, Dec. 30, 1993; 59 FR 8853, Feb. 24, 1994; T.D. 98–56, 63 FR 32944, June 16, 1998; CBP Dec. 03–13, 68 FR 43627, July 24, 2003; 72 FR 3733, Jan. 26, 2007]
§ 24.23 Fees for processing merchan- dise.
(a) Definitions. The following defini- tions apply for the purposes of this sec- tion:
(1) Centralized hub facility. A central- ized hub facility is a separate, unique, single purpose facility normally oper- ating outside of CBP operating hours approved by the port director for entry filing, examination, and release of ex- press consignment shipments, as pro- vided for in part 128 of this chapter on July 30, 1990.
(2) Entered or released. Merchandise is entered or released if the merchandise is:
(i) Released under a special permit for immediate delivery under 19 U.S.C. 1448(b);
(ii) Entered or released from CBP custody under 19 U.S.C. 1484(a)(1)(A); or
(iii) Withdrawn from warehouse for consumption.
(3) Express consignment carrier facility. An express consignment carrier facility is a separate or shared specialized facility approved by the port director solely for the examination and release of express consignment shipments, as provided for in part 128 of this chapter on July 30, 1990.
(4) Manual entry or release. Any ref- erence to a manual formal or informal entry or release shall not include:
(i) Any formal or informal entry or release filed by an importer or broker who is operational for cargo release through the Automated Broker Inter- face (ABI) of the CBP Automated Com- mercial System (ACS) at any port within the United States;
(ii) Any formal or informal entry or release filed at a port where cargo se- lectivity is not fully implemented if filed by an importer or broker who is operational for ABI entry summary; or
(iii) Any informal entry or any Line Release filed at a part where cargo se- lectivity is fully implemented if filed by an importer or broker who is oper- ational for ABI entry summary.
(5) Small airport or other facility. A small airport or other facility is any air- port or other facility which has been designated as a user fee facility under 19 U.S.C. 58b and at which more than 25,000 informal entries were processed during the preceding fiscal year.
(b) Fees—(1) Formal entry or release— (i) Ad valorem fee—(A) General. Except as provided in paragraph (c) of this sec- tion, merchandise that is formally en- tered or released is subject to the pay- ment to CBP of an ad valorem fee of 0.21 percent. The 0.21 ad valorem fee is due and payable to CBP by the importer of record of the merchandise at the time of presentation of the entry summary and is based on the value of the mer- chandise as determined under 19 U.S.C. 1401a. In the case of an express consign- ment carrier facility or centralized hub facility, each shipment covered by an individual air waybill or bill of lading that is formally entered and valued at $2,000 or less is subject to a $1.00 per in- dividual air waybill or bill of lading fee and, if applicable, to the 0.21 percent ad valorem fee in accordance with para- graph (b)(4) of this section.
(B) Maximum and minimum fees. Sub- ject to the provisions of paragraphs (b)(1)(ii) and (d) of this section relating to the surcharge and to aggregation of the ad valorem fee respectively, the ad valorem fee charged under paragraph (b)(1)(i)(A) of this section shall not ex- ceed $485 and shall not be less than $25.
(ii) Surcharge for manual entry or re- lease. In the case of any formal manual
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entry or release of merchandise, a sur- charge of $3 shall be assessed and shall be in addition to any ad valorem fee charged under paragraphs (b)(1)(i)(A) and (B) of this section.
(2) Informal entry or release. Except in the case of merchandise covered by paragraph (b)(3) or paragraph (b)(4) of this section, and except as otherwise provided in paragraph (c) of this sec- tion, merchandise that is informally entered or released is subject to the payment to CBP of a fee of:
(i) $2 if the entry or release is auto- mated and not prepared by CBP per- sonnel;
(ii) $6 if the entry or release is man- ual and not prepared by CBP personnel; or
(iii) $9 if the entry or release, wheth- er automated or manual, is prepared by CBP personnel.
(3) Small airport or other facility. With respect to the processing of letters, documents, records, shipments, mer- chandise, or any other item that is val- ued at $2,000 or less, or any higher amount prescribed for purposes of in- formal entry in § 143.21 of this chapter, a small airport or other facility must pay to CBP an amount equal to the re- imbursement (including overtime) which the facility is required to make during the fiscal year under § 24.17.
(4) Express consignment carrier and centralized hub facilities. Each carrier or operator using an express consignment carrier facility or a centralized hub fa- cility must pay to CBP a fee in the amount of $1.00 per individual air way- bill or individual bill of lading for the processing of airway bills for ship- ments arriving in the U.S. In addition, if merchandise is formally entered and valued at $2,000 or less, the importer of record must pay to CBP the ad valorem fee specified in paragraph (b)(1) of this section, if applicable. An individual air waybill or individual bill of lading is the individual document issued by the carrier or operator for transporting and/or tracking an individual item, let- ter, package, envelope, record, docu- ment, or shipment. An individual air waybill is the bill at the lowest level, and is not a master bill or other con- solidated document. An individual air waybill or bill of lading is a bill rep- resenting an individual shipment that
has its own unique bill number and tracking number, where the shipment is assigned to a single ultimate con- signee, and no lower bill unit exists. Payment must be made to CBP on a quarterly basis and must cover the in- dividual fees for all subject trans- actions that occurred during a calendar quarter. The following additional re- quirements and conditions apply to each quarterly payment made under this section:
(i) The quarterly payment must con- form to the requirements of § 24.1, must be mailed to Customs and Border Pro- tection, Revenue Division/Attention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278, and must be received by CBP no later than the last day of the month that follows the close of the calendar quar- ter to which the payment relates.
(ii) The following information must be included with the quarterly pay- ment:
(A) The identity of the calendar quar- ter to which the payment relates;
(B) The identity of the facility for which the payment is made and the port code that applies to that location and, if the payment covers multiple fa- cilities, the identity of each facility and its port code and the portion of the payment that pertains to each port code; and
(C) The total number of individual air waybills and individual bills of lad- ing covered by the payment, and a breakdown of that total for each facil- ity covered by the payment according to the number covered by formal entry procedures, the number covered by in- formal entry procedures specified in §§ 128.24(e) and 143.23(j) of this chapter, and the number covered by other infor- mal entry procedures.
(iii) Overpayments or underpayments may be accounted for by an expla- nation in, and adjustment of, the next due quarterly payment to CBP. In the case of an overpayment or under- payment that is not accounted for by an adjustment of the next due quar- terly payment to CBP, the following procedures apply:
(A) In the case of an overpayment, the carrier or operator may request a
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19 CFR Ch. I (4–1–12 Edition)§ 24.23
refund by writing to Customs and Bor- der Protection, Revenue Division/At- tention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278. The refund request must specify the grounds for the refund and must be received by CBP within one year of the date the fee for which the refund is sought was paid to CBP; and
(B) In the case of an underpayment, interest will accrue on the amount not paid from the date payment was ini- tially due to the date that payment to CBP is made.
(iv) The underpayment or failure of a carrier or operator using an express consignment carrier facility or a cen- tralized hub facility to pay all applica- ble fees owed to CBP pursuant to para- graph (b)(4) of this section may result in the assessment of penalties under 19 U.S.C. 1592, liquidated damages, and any other action authorized by law.
(c) Exemptions and limitations. (1) The ad valorem fee, surcharge, and specific fees provided for under paragraphs (b)(1) and (b)(2) of this section shall not apply to:
(i) Except as provided in paragraph (c)(2) of this section, articles provided for in chapter 98, Harmonized Tariff Schedule of the United States (HTSUS; 19 U.S.C. 1202);
(ii) Products of insular possessions of the U.S. (General Note 3(a)(iv), HTSUS);
(iii) Products of beneficiary countries under the Caribbean Basin Economic Recovery Act (General Note 7, HTSUS);
(iv) Products of least-developed bene- ficiary developing countries (General Note 4(b)(i), HTSUS); and
(v) Merchandise described in General Note 19, HTSUS, merchandise released under 19 U.S.C. 1321, and merchandise imported by mail.
(2) In the case of any article provided for in subheading 9802.00.60 or 9802.00.80, HTSUS:
(i) The surcharge and specific fees provided for under paragraphs (b)(1)(ii) and (b)(2) of this section shall remain applicable; and
(ii) The ad valorem fee provided for under paragraph (b)(1)(i) of this section shall be assessed only on that portion of the cost or value of the article upon which duty is assessed under sub- headings 9802.00.60 and 9802.00.80.
(3) The ad valorem, surcharge, and specific fees provided for under para- graphs (b)(1) and (b)(2) of this section shall not apply to goods originating in Canada or Mexico within the meaning of General Note 12, HTSUS (see also 19 U.S.C. 3332), where such goods qualify to be marked, respectively, as goods of Canada or Mexico pursuant to Annex 311 of the North American Free Trade Agreement and without regard to whether the goods are marked. For qualifying goods originating in Mexico, the exemption applies to goods entered or released (as defined in this section) after June 29, 1999. Where originating goods as described above are entered or released with other goods that are not originating goods, the ad valorem, sur- charge, and specific fees shall apply only to those goods which are not orig- inating goods.
(4) In the case of agricultural prod- ucts of the U.S. that are processed and packed in a foreign trade zone, the ad valorem fee provided for under para- graph (b)(1)(i) of this section shall be applied only to the value of any mate- rial used to make the container for such merchandise, but only if that merchandise is subject to entry and the container is of a kind normally used for packing such merchandise.
(5) The ad valorem fee, surcharge, and specific fees provided for under paragraphs (b)(1) and (b)(2) of this sec- tion shall not apply to products of Israel that are entered, or withdrawn from warehouse for consumption, on or after September 16, 1998 (the effective date of a determination published in the FEDERAL REGISTER on September 1, 1998, under section 112 of the Custons and Trade Act of 1990).
(6) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under § 202 of the United States-Singapore Free Trade Agreement Implementation Act (see also General Note 25, HTSUS) that are entered, or withdrawn from warehouse for consumption, on or after January 1, 2004.
(7) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as
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U.S. Customs and Border Protection, DHS; Treasury § 24.23
originating goods under § 202 of the United States-Chile Free Trade Agree- ment Implementation Act (see also General Note 26, HTSUS) that are en- tered, or withdrawn from warehouse for consumption, on or after January 1, 2004.
(8) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under § 202 of the United States-Bahrain Free Trade Agreement Implementation Act (see also General Note 30, HTSUS) that are entered, or withdrawn from warehouse for consumption, on or after August 1, 2006.
(9) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under section 203 of the Dominican Republic-Central Amer- ica-United States Free Trade Agree- ment Implementation Act (see also General Note 29, HTSUS) that are en- tered, or withdrawn from warehouse for consumption, on or after March 1, 2006.
(10) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under § 202 of the United States—Oman Free Trade Agreement Implementation Act (see also General Note 31, HTSUS) that are entered, or withdrawn from warehouse for consumption, on or after January 1, 2009.
(11) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under § 203 of the United States-Peru Trade Promotion Agreement Implementation Act (see also General Note 32, HTSUS) that are entered, or withdrawn from warehouse for consumption, on or after February 1, 2009.
(12) The ad valorem fee, surcharge, and specific fees provided under para- graphs (b)(1) and (b)(2)(i) of this section will not apply to goods that qualify as originating goods under § 203 of the United States-Korea Free Trade Agree- ment (see also General Note 33, HTSUS)
that are entered, or withdrawn from warehouse for consumption, on or after March 15, 2012.
(d) Aggregation of ad valorem fee. (1) Notwithstanding any other provision of this section, in the case of entries of merchandise made under any tem- porary monthly entry program estab- lished by Customs before July 1, 1989, for the purpose of testing entry proc- essing improvements, the ad valorem fee charged under paragraph (b)(1)(i) of this section for each day’s importa- tions at an individual port shall be the lesser of the following, provided that those importations involve the same importer and exporter:
(i) $400; or (ii) The amount determined by apply-
ing the ad valorem rate under para- graph (b)(1)(i)(A) of this section to the total value of such daily importations.
(2) The fees as determined under paragraph (d)(1) of this section shall be paid to Customs at the time of presen- tation of the monthly entry summary. Interest shall accrue on the fees paid monthly in accordance with section 6621 of the Internal Revenue Code of 1986.
(e) Treatment of fees as Customs duty— (1) Administration and enforcement. Un- less otherwise specifically provided in this chapter, all administrative and en- forcement provisions under the Cus- toms laws and regulations, other than those laws and regulations relating to drawback, shall apply with respect to any fee provided for under this section, and with respect to any person liable for the payment of such fee, as if such fee is a Customs duty. For purposes of this paragraph, any penalty assessable in relation to an amount of Customs duty, whether or not any such duty is in fact due and payable, shall be as- sessed in the same manner with respect to any fee required to be paid under this section.
(2) Jurisdiction. For purposes of deter- mining the jurisdiction of any court or agency of the United States, any fee provided for under this section shall be treated as if such fee is a Customs duty.
[T.D. 91–33, 56 FR 15039, Apr. 15, 1991]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 24.23, see the List of CFR Sections Affected, which appears in the
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19 CFR Ch. I (4–1–12 Edition)§ 24.24
Finding Aids section of the printed volume and at www.fdsys.gov.
§ 24.24 Harbor maintenance fee.
(a) Fee. Commercial cargo loaded on or unloaded from a commercial vessel is subject to a port use fee of 0.125 per- cent (.00125) of its value if the loading or unloading occurs at a port within the definition of this section, unless ex- empt under paragraph (c) of this sec- tion or one of the special rules in para- graph (d) of this section is applicable.
(b) Definitions. For the purpose of this section:
(1) Port means any channel or harbor (or component thereof) in the customs territory of the United States which is not an inland waterway and is open to public navigation and at which Federal funds have been used since 1977 for con- struction, maintenance or operation. It does not include channels or harbors deauthorized by Federal law before 1985. A complete list of the ports sub- ject to the harbor maintenance fee is set forth below:
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE [Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
Alabama
1901—Mobile
Alaska
3126—Anchorage .............................. Includes Seldovia Harbor, and Homer. Movements between these points are intraport. 3106—Dalton Cache ......................... Includes Haines Harbor. 3101—Juneau ................................... Includes only Hoonah Harbor. Fee does not apply to Juneau Harbor. 3102—Ketchikan ............................... Includes Metlakatla Harbor. Fee does not apply to Wades Cove. 3127—Kodiak 3112—Petersburg .............................. Includes Wrangell Narrows. 3125—Sand Point ............................. Includes Humboldt, King Cove and Iliuliuk Harbor. Fee does not apply to Dutch Harbor. 3115—Sitka ....................................... Includes Sergius-Whitestone Narrows.
—St. Paul
California
2802—Eureka .................................... Includes Crescent City. Los Angeles/Long Beach Ports .........
2709—Long Beach Harbor 2704—Los Angeles 2713—Port Hueneme 2712—Ventura
Includes Ventura, Port Hueneme, Channel Islands Harbor, Santa Barbara, Marina Del Ray, Los Angeles and Long Beach. Movements between these points are intraport.
2805—Monterrey 2719—Moro Bay ................................ Includes only Moro Bay. 2501—San Diego .............................. Includes San Diego River and Mission Bay, and Oceanside Harbor. 2707—San Luis San Francisco Bay Area Ports * ........
2813—Alameda 2830—Carquinez Strait 2815—Crockett 2820—Martinez 2811—Oakland 2821—Redwood City 2812—Richmond 2816—Sacramento 2809—San Francisco 2828—San Joaquin 2829—San Pablo Bay 2827—Selby 2810—Stockton 2831—Suisun Bay
Includes all points inshore of the Golden Gate Bridge on the bays and the straits and on the Napa, Sacramento and San Joaquin Rivers, and on the deep water channels to Sacramento and Stockton. Movements between points above Suisun Bay (Longitude 122 degrees West at Port Chicago) are intraport. Movements between points below Longitude 122 degrees West and the Golden Bridge are all intraport. All other move- ments are interport.
Connecticut
0410—Bridgeport ............................... Includes Housatonic River, and Stamford Harbor, and Wilson Point Harbor. Movements between these points are intraport.
0411—Hartford .................................. Includes all points on the Connecticut River between Hartford and Long Island Sound. Movements within this area are intraport.
0412—New Haven 0413—New London ........................... Includes all points on the Thames River from the mouth to, and including Norwich, CT.
Also includes Groton, CT.
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U.S. Customs and Border Protection, DHS; Treasury § 24.24
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE— Continued
[Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
Delaware
Delaware River Ports, DE, NJ, PA * .. 1102—Chester, PA 1107—Camden, NJ 1113—Gloucester, NJ 1118—Marcus Hook, PA 1105—Paulsboro, NJ 1101—Philadelphia, PA 1103—Wilmington, DE
Includes all points on the Delaware River from Trenton to the sea at a line between Cape Henlopen and Cape May, all points on the lower four miles of the Christina River, Delaware, and all points on the lower six miles of Schuylkill River, Pennsylvania. Fee applies to all movements on the Chesapeake and Delaware Canal east of U.S. Highway 13. Includes Absecon Inlet (Atlantic City) and Cold Spring Inlet. Movements within this area are intraport.
District of Columbia
Potomac River Ports, DC, MD, VA * 5402—Alexandria, VA 5401—Washington, DC
Includes all points on the Potomac River (see Chesapeake Bay Ports map) from a line between Point Lookout and the Little Wicomico River at Chesapeake Bay to and in- cluding Washington and Alexandria. Movements between these points are intraport.
Florida
1807—Boca Grande 1805—Fernandina Beach 5205—Fort Pierce 1803—Jacksonville 5202—Key West 5201—Miami 1818—Panama City ..........................
1819—Pensacola 1816—Port Canaveral 5203—Port Everglades
For HMF purposes, also includes Carrabelle and Port St. Joe.
Tampa Bay Ports * ............................. 1814—St Petersburg 1801—Tampa
Includes Alafia River, Port Manatee, Port Sutton, Port Tampa Weedon Island, and all other points on or approached using the Tampa Harbor Channel inshore of the Sun- shine Skyway Bridge. Movements between these points are intraport.
5204—West Palm Beach
Georgia
1701—Brunswick ............................... Includes St. Marys River. 1703—Savannah
Hawaii
3202—Hilo ......................................... Includes Kawaihae. 3201—Honolulu ................................. Includes Barbers Point Harbor. 3203—Kahului ................................... Includes Kaunakakai Harbor. 3204—Nawiliwili-Port Allen ................ Includes both Nawiliwili and Port Allen.
Illinois
Southern Lake Michigan Ports .......... 3901—Chicago, IL 3904—East Chicago, IN 3905—Gary, IN
Includes Waukegan Harbor, IL, Indiana Harbor (East Chicago, IN) Calumet Harbor, the Chicago River (up to the North Avenue Bridge) and the Chicago Harbor. Fee applies at the ports of Michigan City and Burns Waterway Harbor, IN. Fee does not apply at Buffington Harbor or Gary Harbor. Movements within an area from Waukegan, IL to Michigan City, IN are intraport.
Indiana
Southern Lake Michigan Ports .......... 3901—Chicago, IL 3904—East Chicago, IN 3905—Gary, IN
Includes Waukegan Harbor, IL. Indiana Harbor (East Chicago, IN) Calumet Harbor, the Chicago River (up to the North Avenue Bridge) and the Chicago Harbor. Fee applies at the ports of Michigan City and Burns Waterway Harbor, IN. Fee does not apply at Buffington Harbor or Gary Harbor. Movements within an area from Waukegan, IL to Michigan City, IN are intraport.
Louisiana
2017—Lake Charles .......................... Includes all points on the Calcasieu River and Pass. Also includes Mermentau River from Catfish Point Control Structure to the Gulf.
Mississippi River Ports/Baton Rouge and Vicinity *.
2004—Baton Rouge 2010—Gramercy
Includes all river points from River Mile 115 Above Head of Passes (AHP) at the St. Charles Parish-Jefferson Parish line, to River Mile 233.9 AHP at Baton Rouge. In- cludes Destrehan, Good Hope, and St. Rose. Movements between these points are intraport.
Mississippi River Ports/New Orleans and Vicinity *.
2002—New Orleans 2005—Port Sulphur
Includes all river points from River mile 115 Above Head of Passes (AHP) to Mile 21.6 Below Head of Passes (BHP) via Southwest Pass and to Mile 14.7 BHP via South Pass. Also includes all points on the Inner Harbor Navigation Canal, Avondale, and the Mississippi River Gulf Outlet. Movements between these points are intraport.
2001—Morgan City * .......................... Includes Atchafalaya River from Morgan City to the Gulf. Includes all points on the Houma Navigation Canal, and points on the Gulf Intra-coastal Waterway between Mile 49.8 West and Mile 107.0 West. Movements between these points are intraport.
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19 CFR Ch. I (4–1–12 Edition)§ 24.24
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE— Continued
[Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
Maine
0102—Bangor 0111—Bath 0131—Portsmouth, NH 0132—Belfast .................................... Includes all Penobscot River points (Bucksport and Winterport), and Georges River. Fee
does not apply at Belfast, Searsport, Sandy Point, or Castine Harbor. 0101—Portland
Maryland
Chesapeake Bay Ports, MD * ............ 1303—Baltimore 1302—Cambridge 1301—Annapolis
Includes all Maryland points on the Chesapeake Bay and its tributary waters except for the Potomac Rivers. Also includes the Waterway from the Delaware River to the Chesapeake Bay west of U.S. 13 highway bridge. Movements between these points are intraport. (Also see Chesapeake Bay Ports: VA.)
Massachusetts
0401—Boston .................................... Includes all of the Port of Boston inshore of Castle Island on the Inner Harbor and Chel- sea and Mystic River and all points on the Weymouth Fore, and Town and Black Riv- ers, and Dorchester Bay. Also includes Plymouth Harbor. Movements between points on the Saugus River in the North and Plymouth Harbor in the South are intraport.
0404—Gloucester 0407—Fall River
Michigan
3843—Alpena .................................... Fee does not apply to Stoneport. Monroe/Detroit/Harbor Beach
3801—Detroit 3802—Port Huron
Includes Monroe, Detroit, and the Detroit River, St. Clair River, Port Huron and all points on the Rouge and Black Rivers. Fee also applies at Harbor Beach, MI. All movements within this area between Monroe and Harbor Beach, MI are intraport.
3808—Escanaba ............................... Fee applies at all points on the little Bay de Noc above Escanaba, including Gladstone and Kipling. Movements within an area from Escanaba to the Mackinac Bridge are intraport. Fee does not apply at Escanaba.
South Central Lake Superior Ports ... 3809—Marquette 3842—Presque Isle
Includes Ontonagon Harbor, all points on the Harbor, all points on the Keweenaw Water- way, Presque Isle Harbor and Marquette and Grand Marais. Movements between all Michigan ports on Lake Superior are intraport.
Eastern Lake Michigan Ports ............ 3815—Muskegon 3816—Grand Haven 3844—Ferrysburg
Fee applies at Charlevoix, Frankfort, Portage Lake, Manatee, Ludington, Pentwater Har- bor, Ferrysburg, White Lake Harbor, Muskegon, Grand Haven, and South Haven, Hol- land, and St. Joseph/Benton Harbor, MI. All movements between Eastern Lake Michi- gan ports are intraport.
Upper Lake Huron Ports ................... 3803—Sault Ste. Marie 3804—Saginaw-Flint-Bay City 3843—Alpena
Includes all points on the St. Mary’s River, the ports of Cheyboygan, Alpena, Bay City, and Saginaw River. Does not include Alabaster, Cacit, Port Dolomite, Port Inland, Port Gypum or Stoneport. Movements within an area from Sault Ste. Marie and the Sagi- naw River are intraport.
Minnesota
Duluth/Superior Area Ports ............... 3601—Duluth 3602—Ashland 3608—Superior 3614—Silver Bay
Fee applies at Two Harbors and Duluth, MN, and Superior, WI. Fee also applies at Ash- land and Port Wing, WI and Grand Marais, MN. Fee does not apply at Taconite, or Sil- ver Bay, MN. All movements between Silver Bay, MN and Ashland, WI are considered intraport.
Mississippi
1902—Gulfport .................................. Does not include Bienville. 1903—Pascagoula
New Hampshire
0131—Portsmouth, NH
New Jersey
Delaware River Ports, DE, NJ, PA * .. 1102—Chester, PA 1107—Camden, NJ 1113—Gloucester, NJ 1118—Marcus Hook, PA 1105—Paulsboro, NJ 1101—Philadelphia, PA 1103—Wilmington, DE
Includes all points on the Delaware River from Trenton to the sea at a line between Cape Henlopen and Cape May, all points on the lower four miles of the Christina River, Delaware, and all points on the lower six miles of the Schuylkill River, PA. Fee applies to all movements on the Chesapeake and Delaware Canal east of U.S. High- way 13. Includes Absecon Inlet (Atlantic City) and Cold Spring Inlet. Movements be- tween these points are intraport.
1003—Newark ................................... See New York Harbor. 1004—Perth Amboy .......................... See New York Harbor.
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U.S. Customs and Border Protection, DHS; Treasury § 24.24
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE— Continued
[Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
New York
New York Harbor, NY, NJ * ............... 1001—New York 1003-Newark 1004—Perth Amboy
Includes all points in New York and New Jersey with the Port of New York on the waters inshore of a line between Sandy Hook and Rockaway Point and south of Tappan Zee Bridge on the Hudson and west of Throgs Neck Bridge of the East River. Movements between these and all points within the New York Port District boundaries described in New York Code (Chapter 154, Laws of New York, 1921), are intraport.
1002—Albany * .................................. Includes all points on the Hudson River between Tappan Zee Bridge and the Troy Lock and Dam. Movements between points within this area are intraport.
0901—Buffalo-Niagara Falls ............. Includes Buffalo Harbor, Black Rock Channel and Tonawanda Harbor, and all points on Cattaraugus Creek, and Dunkirk Harbor. Movements between these points are intraport.
0706—Cape Vincent 0701—Ogdensburg 0904—Oswego 0903—Rochester 0905—Sodus Point ............................ Includes Little Sodus Bay Harbor, and Great Sodus Bay Harbor.
North Carolina
1511—Beaufort-Morehead City ......... Includes Ocracoke Inlet. Movements within this area are intraport. 1501—Wilmington ............... Includes all points on the Cape Fear and Northeast Cape Fear Rivers inshore of the At-
lantic Ocean entrance. Movements within this area are intraport.
Ohio
Lake Erie Ports .................................. 4108—Ashtabula 4101—Cleveland 4109—Conneaut 4106—Erie, PA 4111—Fairport 4117-Huron 4121—Lorain 4105—Toledo-Sandusky
Includes Toledo, Sandusky, Huron, Lorain, Cleveland, Fairport, Ashtabula, Conneaut and Erie. Movements between these points are intraport. Fee does not apply at Marble- head.
Oregon
Columbia River Ports, OR, WA ......... 2901—Astoria, OR 2904—Portland, OR 2909—Kalama, WA 2905—Longview, WA 2908—Vancouver, WA
Includes all points on the Columbia River downstream of Bonneville Dam, and all points on the Willamette River downstream of River Mile 21. Includes the Multnoma Channel, the Skipanon Channel, and Oregon Slough. Movements between points within this area are intraport.
2903—Coos Bay ............................... Includes Port Orford, the Siuslaw River, and Umpaqua River. Movements between these points are intraport.
2902—Newport .................................. Includes Tillamook Bay, and Yaguina Bay and Harbor.
Pennsylvania
Delaware River Ports, DE, NJ, PA * .. 1102—Chester, PA 1107—Camden, NJ 1113—Gloucester, NJ 1118—Marcus Hook, PA 1105—Paulsboro, NJ 1101—Philadelphia, PA 1103—Wilmington, DE
Includes all points on the Delaware River from Trenton to the sea at a line between Cape Henlopen and Cape May, all points on the lower four miles of the Christina River, Delaware, and all points on the lower six miles of the Schuykill River, Pennsyl- vania. Fee applies to all movements on the Chesapeake and Delaware Canal east of U.S. Highway 13. Includes Absecon Inlet (Atlantic City) and Cold Spring Inlet. Move- ments between these points are intraport.
Puerto Rico
4907—Mayaguez 4908—Ponce ..................................... Does not include Guayanilla and Tallaboa. 4909—San Juan ................................ Includes Arecibo.
Rhode Island
0502—Providence ............................. Federal project limit: Providence River East of Prudence Island just above Dyer Island and ending at Hurricane Barrier at Fox Point. The areas west of Prudence Island, in- cluding Quonset Point, Patience Island, Warwick Neck and Greenwich Bay are not subject to the fee.
South Carolina
1601—Charleston .............................. Includes the Ashley River, Cooper River, Shipyard River, and Port Royal Harbor. Move- ments within this area are intraport.
1602—Georgetown
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19 CFR Ch. I (4–1–12 Edition)§ 24.24
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE— Continued
[Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
Texas
2301—Brownsville ............................. Includes Port Isabel and Brazos Island Harbor. Movements between these points are intraport.
5312—Corpus Christi 5311—Freeport Galveston Bay Ports * ........................ Includes Port Bolivar and all points on Galveston Bay in Galveston County. Movements
between points within this area are intraport. 5310—Galveston 5306—Texas City 5301—Houston * ................................ Includes Bayport, Baytown, and all other points on or accessed via the Houston Ship
Channel from the Liberty/Chambers county line on the north to the Chambers/Gal- veston county line to the south. Movements within this area are intraport.
5313—Port Lavaca ............................ Includes Matagorda Ship Channel. Sabine Ports * ....................................
2104—Beaumont 2103—Orange 2101—Port Arthur 2102—Sabine
Includes Port Neches, Sabine Pass and all other points on the Sabine-Neches Water- way. Movements between these points are intraport.
Virginia
Potomac River Ports, DC, MD, VA * 5402—Alexandria, VA 5401—Washington, DC
Includes all points on the Potomac River (see Chesapeake Bay Ports map) from a line between Point Lookout and the Little Wicomico River at Chesapeake Bay to and in- cluding Washington and Alexandria. Movements between these points are intraport.
Chesapeake Bay Ports,VA * .............. 1406—Cape Charles 1402—Newport News 1401—Norfolk
Includes all Virginia points on the Chesapeake Bay inshore of a line from Cape Henry to Cape Charles, and tributary waters including the ports of Hampton Roads. Does not include the Potomac River or the James River above the James River Bridge at New- port News. Movements between points within this area are intraport. (Also see Chesa- peake Bay Ports, MD.)
James River Ports, VA ...................... 1408—Hopewell 1404—Richmond/Petersburg
Includes all points on the James River above the James River Bridge at Newport News. Movements between these points are intraport.
Washington
3003—Aberdeen ................................ Includes Grays Harbor and Yaguina Bay and Harbor. Movements between these points are intraport.
Puget Sound Ports, WA* ................... 3005—Bellingham 3006—Everett 3007—Port Angeles 3001—Seattle 3002—Tacoma 3026—Olympia
Fee applies only at ports listed. Bellingham includes all of Bellingham Bay and tributary waters north of Chuchanut Bay on the east, and Portage Island on the west. Port Everett includes all of Port Dardner (an arm of Possession Sound) between Elliott Point on the south to, and including, the Snahomish River on the north. The port of Olympia includes all points on Budd Inlet extending from Cooper and Dofflemyer Point on the north to, and including, the city of Olympia on the south. The fee applies to all points within the Inner Harbor of the Port of Seattle, including Salmon Bay, Lakes Union and Washington, the Lake Washington Ship Canal, and Kenmore Navigation Channel. Includes all points on Elliott Bay and tributary waters between West Point on the north and Duwamish Head on the south. Fee applies at all points within Tacoma Harbor including all of Commensement Bay and tributary waters between Browns Point on the east and Point Defiance on the west. Movements between these ports and any other U.S. points on Puget Sound or the Strait of Juan de Fuca east of Cape Flattery are intraport.
3010—Anacortes ............................... Includes only access channel and berthing areas adjacent to Anacortes Industrial Park off 30th Street.
Columbia River Ports, WA, OR.
2901—Astoria, OR 2904—Portland, OR 2909—Kalama, WA 2905—Longview, WA 2908—Vancouver, WA
Includes all points on the Columbia River downstream of Bonneville Dam, and all points on the Willamette River downstream of River mile 21. Includes the Multnoma Channel, the Skipanon Channel, and Oregon Slough. Movements between points within this area are intraport.
Wisconsin
3602—Ashland .................... See Duluth/Superior Area Ports, MN. Green Bay/Marinette Area Ports .......
3703—Green Bay 3702—Marinette
Fee applies to all movements between points along the Sturgeon Bay and Lake Michi- gan Ship Canal. Fee also applies to Green Bay, Oconto, and Menominee/Marinette. Movements between points from Menominee and points along the Sturgeon Bay and Lake Michigan Ship Canal are intraport.
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U.S. Customs and Border Protection, DHS; Treasury § 24.24
PORT CODES, NAMES, AND DESCRIPTIONS OF PORTS SUBJECT TO HARBOR MAINTENANCE FEE— Continued
[Section 1402 of Pub. L. 99–662, as amended]
Port code, port name and state Port descriptions and notations
Western Lake Michigan Ports ........... 3701—Milwaukee 3708—Racine 3707—Sheboygan
Includes the ports of Milwaukee, Racine, and Sheboygan, MN. All movements between these points are intraport.
*Indicates that a map of this area is available from the Budget Division, Office of Finance, U.S. Customs Service, Room 6328, 1301 Constitution Ave., NW., Washington, DC 20229; tel. 202–927–0034.
(2) Commercial cargo means, unless ex- empted by paragraphs (c) (1) and (2) of this section, merchandise transported on a commercial vessel and passengers transported for compensation or hire. Whenever the term ‘‘cargo’’ is used, it means merchandise, but not pas- sengers.
(3) Commercial vessel means, unless ex- empted by paragraph (c)(3) of this sec- tion, any vessel used in transporting commercial cargo by water for com- pensation or hire, or in transporting commercial cargo by water in the busi- ness of the owner, lessee or operator of the vessel.
(4) Ferry means any vessel which ar- rives in the U.S. on a regular schedule during its operating season at intervals of at least once each business day.
(5) Humanitarian assistance is consid- ered to be assistance which is required for the survival of the affected popu- lation in cases of, or in preparation for, emergencies of all kinds. Such relief assistance would include, but is not limited to: food items, shelter, cloth- ing, basic home utensil kits, and small electric generators.
(6) Development assistance is consid- ered to be assistance similar to that provided for pursuant to chapter 1 of part 1 of the 1961 Foreign Assistance Act, as amended, 22 U.S.C. 2151–1(b). Such development assistance would in- clude, but is not limited to, aid to pro- mote: Agricultural productivity, reduc- tion of infant mortality, reduction of rates of unemployment and under- employment, and an increase in lit- eracy.
(7) Non-profit means an organization or cooperative exempt from income taxation pursuant to 26 U.S.C. 501(c)(3).
(c) Exemptions. The following are not subject to the fee:
(1) Bunker fuel, ship’s stores, sea stores and vessel equipment.
(2) Fish or other aquatic animal life, caught and not previously landed on shore.
(3) Ferries engaged primarily in the transport of passengers and their vehi- cles between points within the U.S. or between the U.S. and contiguous coun- tries.
(4) Certain loadings and unloadings of cargo in Alaska, Hawaii, or the posses- sions of the U.S. as defined in this paragraph.
(i) Descriptions of exempt loadings/ unloadings:
(A) Cargo loaded on a vessel in a port in the U.S. mainland for transportation to Alaska, Hawaii, or any possession of the U.S. for ultimate use or consump- tion in Alaska, Hawaii, or any posses- sion of the U.S.
(B) Cargo loaded on a vessel in Alas- ka, Hawaii, or any possession of the U.S. for transportation to the U.S. mainland for ultimate use or consump- tion in the U.S. mainland.
(C) Cargo described in paragraph (c)(4)(i)(A) of this section unloaded in Alaska, Hawaii, or any possession of the U.S.
(D) Cargo described in paragraph (c)(4)(i)(B) of this section unloaded in the U.S. mainland.
(E) Cargo loaded on a vessel in Alas- ka, Hawaii, or a possession of the U.S. and unloaded in the state or possession in which loaded.
(ii) For purposes of paragraph (c)(4) of this section:
(A) Cargo does not include crude oil with respect to Alaska.
(B) U.S. mainland means the conti- nental U.S. excluding Alaska.
(C) Possessions of the U.S. means Puerto Rico, Guam, American Samoa,
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U.S. Virgin Islands, the Northern Mar- iana Islands and the Pacific Trust Ter- ritories.
(5) Commercial vessels, if any fuel used to move the cargo is subject to the Inland Waterway Fuel Tax (See section 4042, Internal Revenue Code of 1954, as amended by Pub. L. 95–502 and Pub. L. 99–662).
(6) Cargo entering the U.S. in bond for transportation and direct expor- tation to a foreign country, unless, with respect to cargo exported to Can- ada or Mexico;
(i) The Secretary of the Treasury de- termines that Canada or Mexico has imposed a substantially equivalent port use fee on commercial vessels or commercial cargo using ports of their countries; or
(ii) A study made pursuant to the Water Resources Development Act of 1986 (Pub. L. 99–662) finds that the fee is not likely to cause significant eco- nomic loss to a U.S. port or diversion of a significant amount of cargo to a port in a contiguous country.
(7) Cargo or vessels of the U.S. or any agency or instrumentality of the U.S.
(8) Cargo owned or financed by non- profit organizations or cooperatives which is certified by the CBP as in- tended for use in humanitarian or de- velopment assistance overseas, includ- ing contiguous countries.
(i) The donated cargo is required to be certified as intended for use in hu- manitarian or development assistance overseas by CBP. Subsequent to pay- ment of the fee, a refund request may be made by electronically submitting to CBP the Harbor Maintenance Fee Amended Quarterly Summary Report (CBP Form 350), as well as the Harbor Maintenance Fee Quarterly Summary Report (CBP Form 349) for the quarter covering the payment to which the re- fund request relates, using the Auto- mated Clearinghouse (ACH) via an Internet account established by the payer and located at http:// www.pay.gov. In the alternative, the requisite forms may be mailed to the Office of Finance, Revenue Division, Customs and Border Protection, using the current address posted at Forms.CBP.gov. Upon request by CBP, the party requesting the refund must also submit to CBP, via mail, any sup-
porting documentation deemed nec- essary by CBP to certify that the enti- ty donating the cargo is a nonprofit or- ganization or cooperative and that the cargo was intended for humanitarian or development assistance overseas (in- cluding contiguous countries). A de- scription of the cargo listed in the shipping documents and a brief sum- mary of the intended use of the goods, if such use in not reflected in the docu- ments, are acceptable evidence for cer- tification purposes. Approved HMF re- fund payments will be made via ACH to those payers who are enrolled in the ACH refund program; all others will re- ceive HMF refund payments via mail.
(ii) Each nonprofit organization or cooperative claiming the exemption under this subpart must maintain doc- umentation pertaining to the exemp- tion for a period of 5 years. The docu- mentation must be made available for inspection by CBP in accordance with the provisions of §§ 162.1a through 162.1i of this chapter.
(d) Special rules—(1) Intraport. The fee is not to be assessed on the mere move- ment of commercial cargo within a port.
(2) Same vessel, same cargo. If a fee is assessed when cargo is loaded on a ves- sel, the unloading of the same cargo from that vessel is not subject to the fee. If a fee is assessed when cargo is unloaded from a vessel, the reloading of the same cargo on that vessel is not subject to the fee.
(3) De minimis for individual shipments. The fee will not be assessed on loadings or unloadings of cargo in which:
(i) For imported cargo: The shipment would be entitled to be entered under informal entry procedures as provided for in § 143.21 of this chapter.
(ii) For domestic cargo: The value of the shipment does not exceed $1,000.
(4) De minimis for quarterly payments. Quarterly payment is not required if the total value of all shipments for which a fee was assessed for the quar- ter does not exceed $10,000.
(e) Collections, supplemental payments, and refunds—(1) Domestic vessel move- ments—(i) Time and place of liability. Subject to the exemptions and special rules of this section, when cargo is loaded on a commercial vessel at a port within the definition of this section to
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be transported between ports in the U.S. or is unloaded from a commercial vessel at a port within the definition of this section after having been trans- ported between ports in the U.S., the shipper (the person or corporation who pays the freight) of that cargo is liable for the payment of the port use fee at the time of unloading. The fee will be imposed only once on a movement pur- suant to paragraph (d)(2) of this sec- tion. The fee is to be based upon the value of the cargo as determined by standard commercial documentation where such documentation is available. Otherwise, the value is to be deter- mined under 19 U.S.C. 1401a as if it were imported merchandise. The Vessel Operation Report (Army Corps of Engi- neers Form 3925) is to be completed and submitted to the Army Corps of Engi- neers in accordance with the proce- dures set forth in 33 CFR Ch. II, part 207. The shipper’s name, either the in- ternal revenue service or social secu- rity number of the shipper and the tax exemption code (as it appears in the Vessel Operation Report instructions) claimed for the shipment are to be in- cluded on the Vessel Operation Report.
(ii) Fee payment. The shipper whose name appears on the Vessel Operation Report must pay all accumulated fees for which he is liable on a quarterly basis in accordance with paragraph (f) of this section by submitting to CBP a Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349. The CBP Form 349 must either be sub- mitted electronically to CBP using the Automated Clearinghouse (ACH) via an Internet account established by the payer and located at http://www.pay.gov or, alternatively, mailed with a single check or money order payable to U.S. Customs and Border Protection to the Office of Finance, Revenue Division, Customs and Border Protection, using the current address posted at Forms.CBP.gov.
(2) Import vessel movements—(i) Time and place of liability. Subject to the ex- emptions and special rules of this sec- tion, when imported cargo is unloaded from a commercial vessel at a port within the definition of this section, and destined for either consumption, warehousing, or foreign trade zone ad- mission, the importer of that cargo, or
in the case of foreign trade zones, the person or corporation responsible for bringing merchandise into the zone, is liable for the payment of the port use fee at the time of unloading. The fee is based on the CBP appraised value of the shipment pursuant to 19 U.S.C. 1401a, the same basis as that used for duty payment. The fee will be collected on all formal entries, including ware- house entries and temporary importa- tion under bond entries, and admis- sions into foreign trade zones.
(ii) Fee payment. The port use fee on unloading of imported cargo must be paid in accordance with the normal CBP collection procedures set forth in §§ 24.1 and 141.1 of this chapter, except as provided for merchandise admitted into foreign trade zones in paragraph (e)(2)(iii) of this section. The CBP Entry Summary Form (CBP Form 7501), is to be completed with the amount of the fee shown and identified on the form. The fee must be paid by the importer by adding it to any nor- mal duty, tax or fee payable at the time of formal entry processing. If no other duty, tax, or fee is imposed on the shipment, and the fee exceeds $3, a check or money order for the amount of the fee must be attached to the CBP entry forms submitted.
(iii) Foreign Trade Zones. In cases where imported cargo is unloaded from a commercial vessel at a port within the definition of this section and ad- mitted into a foreign trade zone, the applicant for admission (the person or corporation responsible for bringing merchandise into the zone) who be- comes liable for the fee at the time of unloading pursuant to paragraph (e)(3)(i) of this section, must pay all fees for which he is liable on a quar- terly basis in accordance with para- graph (f) of this section by submitting to CBP a Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349. The CBP Form 349 must either be submitted electronically to CBP using the Automated Clearinghouse (ACH) via an Internet account established by the payer and located at http:// www.pay.gov or, alternatively, mailed with a single check or money order payable to U.S. Customs and Border Protection to the Office of Finance, Revenue Division, Customs and Border
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Protection, using the current address posted at Forms.CBP.gov. Fees must be paid for all shipments unloaded and ad- mitted to the zone, or in the case of di- rect deliveries under §§ 146.39 and 146.40 of this chapter, unloaded and received in the zone under the bond of the for- eign trade zone operator.
(3) Passengers—(i) Time and place of li- ability. Subject to the exemptions and special rules of this section, when a passenger boards or disembarks a com- mercial vessel at a port within the defi- nition of this section, the operator of that vessel is liable for the payment of the port use fee. The fee is to be based upon the value of the actual charge for transportation paid by the passenger or on the prevailing charge for com- parable service if no actual charge is paid. The vessel operator on each cruise is liable only once for the port use fee for each passenger.
(ii) Fee payment. The operator of the passenger-carrying vessel must pay the accumulated fees for which he is liable on a quarterly basis in accordance with paragraph (f) of this section by submit- ting to CBP a Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349. The CBP Form 349 must either be submitted electronically to CBP using the Automated Clearinghouse (ACH) via an Internet account established by the payer and located at http:// www.pay.gov or, alternatively, mailed with a single check or money order payable to U.S. Customs and Border Protection to the Office of Finance, Revenue Division, Customs and Border Protection, using the current address posted at Forms.CBP.gov.
(4) Refunds and supplemental pay- ments—(i) General. To make supple- mental payments or seek refunds of harbor maintenance fees paid relative to the unloading of imported cargo, the procedures applicable to supplemental payments or refunds of ordinary duties must be followed. To seek refunds of quarterly-paid harbor maintenance fees pertaining to export movements, the procedures set forth in paragraph (e)(4)(iv) of this section must be fol- lowed. To make supplemental pay- ments on any quarterly-paid harbor maintenance fee or seek refunds of quarterly-paid harbor maintenance fees pertaining to other than export
movements, the procedures set forth in paragraph (e)(4)(iii) must be followed.
(ii) Time limit for refund requests. A re- fund request must be received by CBP within one year of the date the fee for which the refund is sought was paid to CBP or, in the case of fees paid relative to imported merchandise admitted into a foreign trade zone and subsequently withdrawn from the zone under 19 U.S.C. 1309, within one year of the date of withdrawal from the zone.
(iii) For fees paid on other than export movements. If a supplemental payment is made for any quarterly-paid harbor maintenance fee or a refund is re- quested relative to quarterly fee pay- ments previously made regarding the loading or unloading of domestic cargo, the unloading of cargo destined for ad- mission into a foreign trade zone, or the boarding or disembarking of pas- sengers, the refund request or supple- mental payment must be accompanied by a Harbor Maintenance Fee Amended Quarterly Summary Report, CBP Form 350, along with a copy of the Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349, for the quar- ter(s) covering the payment to which the refund request or supplemental payment relates. A request for a refund must specify the grounds for the re- fund. Supplemental payments and HMF refund requests, accompanied by the requisite CBP Forms 350 and 349 and, if applicable, supporting documentation, must be submitted electronically to CBP using the Automated Clearing- house (ACH) via an Internet account established by the payer and located at http://www.pay.gov or, alternatively, mailed to the Office of Finance, Rev- enue Division, Customs and Border Protection, using the current address posted at Forms.CBP.gov. If a supple- mental payment is mailed, a single check or money order payable to U.S. Customs and Border Protection must be attached to each CBP Form 350. Ap- proved HMF refund payments will be made via ACH to those payers who are enrolled in the ACH refund program; all others will receive HMF refund pay- ments via mail.
(iv) For fees paid on export movements. CBP will process refund requests rel- ative to fee payments previously made
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regarding the loading of cargo for ex- port as follows:
(A) Refund request. For export fee payments made prior to July 1, 1990, the exporter (the name that appears on the SED or equivalent documentation authorized under 15 CFR 30.39(b)) or its agent must submit a letter of request for a refund specifying the grounds for the refund and identifying the specific payments made. The letter must be ac- companied by the proof of payment set forth in paragraph (e)(4)(iv)(C) of this section. For export fee payments made on or after July 1, 1990, supporting doc- umentation is not required with the re- fund request. For these payments, the request must specify the grounds for the refund, identify the quarters for which a refund is sought, and contain the following additional information: the exporter’s name, address, and em- ployer identification number (EIN); the name and EIN of any freight forwarder or other agent that made export fee payments on the exporter’s behalf; and a name, telephone number, and fac- simile number of a contact person. Re- fund requests must either be submitted electronically to CBP using the Auto- mated Clearinghouse (ACH) via an Internet account established by the payer and located at http://www.pay.gov or, alternatively, mailed to the Office of Finance, Revenue Division, Customs and Border Protection, using the cur- rent address posted at Forms.CBP.gov. Approved HMF refund payments will be made using the ACH to those payers who are enrolled in the ACH refund program; all others will receive HMF refund payments via mail.
(B) Refund procedure—(1) Processing order; power of attorney. Generally, a properly filed refund request will be processed in the chronological order of its receipt. A refund request filed on behalf of an exporter by an agent other than a freight forwarder must be sup- ported by a power of attorney or letter signed by the exporter authorizing the representation. A refund request filed by an agent other than a freight for- warder that lacks a power of attorney or authorization letter will not be processed unless one or the other is submitted. A refund request filed by a freight forwarder does not require a power of attorney or authorization let-
ter to be processed; however, if CBP has not received a power of attorney or authorization letter for an exporter covered in a freight forwarder’s refund request and that exporter has filed a separate refund request on its own be- half, that freight forwarder’s entire re- fund request will be removed from the chronological processing order and processed after the processing of all ex- porter refund requests is completed.
(2) HMT Payment Report and Report/ Certification. In processing a request for a refund, CBP will conduct a search of its records (CBP electronic database and paper document sources) and produce for issuance to the exporter (or its agent, as appropriate) a ‘‘Harbor Mantenance Tax Payment Report’’ (HMT Payment Report) that lists all payments reflected in those records for the entire period the fee was in effect. CBP will also produce for issuance to the exporter a ‘‘Harbor Maintenance Tax Refund Report and Certification’’ (Report/Certification) that lists all payments supported by paper docu- mentation, either retained by CBP (rel- ative to payments made on and after July 1, 1990) or submitted by the ex- porter with its refund request (relative to payments made at any time the fee was in effect). Where a refund request was filed on the exporter’s behalf by an agent other than a freight forwarder, a power of attorney or authorization let- ter must be filed with CBP before CBP will issue these reports. The Report/ Certification sets forth the total amount of the refund that CBP believes it owes the exporter for the payments listed in that report (minus any pre- vious refunds). Pre-July 1, 1990, pay- ments listed in the HMT Payment Re- port for which paper documentation has not been provided by the exporter will not be listed in the Report/Certifi- cation. The exporter has 120 days from the date the HMT Payment Report and the Report/Certification are issued (the 120-day period) to sign and return to CBP the Report/Certification in order to receive the refund set forth in that report and/or to submit to CBP a re- quest for a Revised Report/Certifi- cation. Where the exporter chooses to receive the refund set forth in the Re- port/Certification, the exporter must sign and return the report to CBP. CBP
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will issue the refund upon receipt of the signed report.
(3) Revised Report/Certification. A re- quest for a Revised Report/Certifi- cation must be accompanied by docu- mentation to support any payments not listed in the Report/Certification or corrections to listed payments. See paragraph (e)(4)(iv)(C) of this section regarding acceptable documentation. If an exporter (or its agent, as appro- priate) both signs and returns to CBP a Report/Certification and requests a Re- vised Report/Certification, CBP will not, when reviewing the request for a Revised Report/Certification, approve for refund any corrections to the pay- ments that were listed in the signed Report/Certification; CBP will, how- ever, in that circumstance, consider approving any additional payments that were not listed in the signed Re- port/Certification. If an exporter does not sign and return to CBP a Report/ Certification, but requests a Revised Report/Certification, CBP will consider approving for refund corrections to the payments listed in the Report/Certifi- cation and additional payments. Where the exporter requests a Revised Report/ Certification, CBP will review the doc- umentation submitted with the re- quest, make a determination, and, within 60 days of the request’s receipt, issue a Revised Report/Certification that lists all payments approved for re- fund and the total amount of the re- fund owed. In order to receive the re- fund set forth in a Revised Report/Cer- tification, the exporter must sign and return it to CBP. CBP will issue the re- fund upon its receipt of the signed re- port. An exporter, within the 120-day period, may submit additional requests for a Revised Report/Certification, with appropriate documentation, to cover any payments not approved for refund in a Revised Report/Certification pre- viously issued by CBP.
(4) Protest. For purposes of filing a protest under 19 U.S.C. 1514 (and 19 CFR part 174), unless issuance of a Re- vised Report/Certification is pending, any payments not approved for refund in a Report/Certification or a Revised Report/Certification issued by CBP within the 120-day period will be con- sidered denied as of the date the period expires; a protest covering such pay-
ments must be filed within 180 days of that date. For any payments not ap- proved for refund in a Revised Report/ Certification issued after expiration of the 120-day period, a protest may be filed within 180 days of that report’s issuance.
(5) Significance of signed Report/Certifi- cation and Revised Report/Certification. A Report/Certification or Revised Report/ Certification must be signed by an offi- cer of the company duly authorized to bind the company or by an agent (such as a broker or freight forwarder) rep- resenting the exporter in seeking a re- fund under this section. A Report/Cer- tification or Revised Report/Certifi- cation signed by the exporter or its agent and received by CBP constitutes the exporter’s agreement that the amount of the refund set forth in the report is accurate and CBP’s payment of that refund amount is in full accord and satisfaction of all payments ap- proved for refund in the report. The signed Report/Certification or Revised Report/Certification also represents the exporter’s release, waiver, and abandonment of all claims, excluding claims for interest, against the Govern- ment, its officers, agents, and assigns for costs, attorney fees, expenses, com- pensatory damages, and exemplary damages arising out of the payments approved for refund in the report. When an agent, including a freight forwarder, signs a Report/Certification or Revised Report/ Certification on behalf of an exporter(s), the agent certifies that it is acting on the exporter’s behalf and will use due diligence to forward the refund to the exporter, and, in the event the agent does not forward the refund to the exporter, will notify Cus- toms and return the refund to CBP within one year of its receipt of the re- fund. Upon receipt of the signed Re- port/Certification or Revised Report/ Certification, CBP releases, waives, and abandons all claims other than fraud against the exporter, its officers, agents, or employees arising out of all payments approved for refund in the report.
(C) Documentation. For payments made prior to July 1, 1990, supporting documentation is required to obtain a refund and must be submitted in ac- cordance with paragraphs (e)(4)(iv)(A)
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and/or (B)(3) of this section. For pay- ments made on and after July 1, 1990, supporting documentation is not re- quired to obtain a refund, unless the exporter seeks to prove corrections of payments listed in the Report/Certifi- cation (if the exporter did not sign and return it to CBP) and/or additional payments not listed in a Report/Certifi- cation, in accordance with paragraph (e)(4)(iv)(B)(3) of this section. The sup- porting documentation that CBP will accept as establishing entitlement to a refund, whether submitted with a re- fund request or a request for a Revised Report/Certification, is whichever of the following documents CBP accepted with the payment at the time it was made: a copy of the Export Vessel Movement Summary Sheet; where an Automated Summary Monthly Ship- per’s Export Declaration was filed, a copy of a letter containing the export- er’s identification, its employer identi- fication number (EIN), the Census Bu- reau reporting symbol, and, the quar- ter for which the payment was made; or a copy of a Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349, for the quarter covering the refund requested. CBP also will consider other documentation offered as proof of pay- ment of the fee, such as cancelled checks and/or affidavits from exporters attesting to the fact that all quarterly harbor maintenance tax payments made by the exporter were made exclu- sively for exports, and will accept that other documentation as establishing entitlement for a refund only if it clearly proves the payments were made for export harbor maintenance fees in the amounts sought to be refunded and were made by the party requesting the refund or the party on whose behalf the refund was requested.
(f) Quarterly payments. All quarterly payments required by this section must be received no later than 31 days after the close of the quarter being paid. Quarterly periods end on the last day of March, June, September, and December.
(g) Maintenance of records. Each im- porter, applicant for admission of cargo into a foreign trade zone, shipper and cruise vessel operator affected by this section must maintain all such docu- mentation necessary for CBP to verify
the accuracy of fee computations and to otherwise determine compliance under the law. Such documentation must be maintained for a period of 5 years from the date of fee calculation. The affected parties must advise the Director, Revenue Division, U.S. Cus- toms and Border Protection, at the current address posted at Forms.CBP.gov, of the name, address, email and telephone number of a re- sponsible officer who is able to verify any records required to be maintained under this paragraph. The Director, Revenue Division, must be promptly notified of any changes in the identi- fying information submitted. The records must be maintained and made available for inspection, copying, re- production or other official use by CBP in accordance with the provisions of part 163 of this chapter.
(h) Penalties/liquidated damages for failure to pay harbor maintenance fee and file summary sheet—(1) Amount of pen- alty or damages. Any party (including the importer, or shipper) who fails to pay the harbor maintenance fee and file the summary sheet at the time specified by regulation will incur a penalty equal to the amount of liq- uidated damages assessable for late fil- ing of an entry summary pursuant to the provisions of § 142.15 of this chap- ter. An importer will be liable for pay- ment of liquidated damages under the basic importation and entry bond, for failure to pay the harbor maintenance fee, as provided in such bond.
(2) Application for relief. The party must follow the procedures set forth in part 171 of this chapter in filing an ap- plication for relief. Any application to cancel liquidated damages incurred must be made in accordance with part 172 of this chapter.
(3) Mitigation. Any penalty assessed under this provision will be mitigated in a manner consistent with guidelines relating to cancellation of claims for liquidated damages for late filing of entry summaries. Any liquidated dam- ages assessed under this provision will be mitigated in a manner consistent with guidelines published by the au- thority of the Commissioner of CBP for cancellation of claims for untimely payment of estimated duties, taxes and charges.
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(i) Privacy Act notice. Whenever an identification number is requested on the summary sheets provided for in paragraph (e) of this section, the dis- closure of the social security number is mandatory when an internal revenue service number is not disclosed. Identi- fication numbers are solicited under the authority of Executive Order 9397 and Pub. L. 99–662. The identification number provides unique identification of the party liable for the payment of the harbor maintenance fee. The num- ber will be used to compare the infor- mation on the summary sheets with in- formation submitted to the govern- ment on other forms required in the course of shipping or importing mer- chandise, which contain the identifica- tion number, e.g., Vessel Operation Re- port, to verify that the information submitted is accurate and current. Failure to disclose an identification number may cause a penalty pursuant to paragraph (h) of this section. The above information is set forth pursuant to the Privacy Act of 1974 (Pub. L. 93– 579).
[T.D. 87–44, 52 FR 10201, Mar. 30, 1987; 52 FR 10970, Apr. 6, 1987, as amended by T.D. 91–44, 56 FR 21446, May 9, 1991; T.D. 92–4, 57 FR 609, Jan. 8, 1992; T.D. 92–7, 57 FR 2457, Jan. 22, 1992; T.D. 93–37, 58 FR 30983, May 28, 1993; T.D. 97–45, 62 FR 30449, June 4, 1997; 62 FR 45157, Aug. 26, 1997; 62 FR 51774, Oct. 3, 1997; T.D. 98–64, 63 FR 40823, July 31, 1998; T.D. 99– 64, 64 FR 43266, Aug. 10, 1999; T.D. 00–57, 65 FR 53574, Sept. 5, 2000; T.D. 01–25, 66 FR 16857, Mar. 28, 2001; T.D. 01–34, 66 FR 21086, Apr. 27, 2001; T.D. 01–46, 66 FR 34818, July 2, 2001; T.D. 02–24, 67 FR 31953, May 13, 2002; CBP Dec. 08- 25, 73 FR 40726, July 16, 2008; CBP Dec. 09–44, 74 FR 61268, Nov. 24, 2009]
§ 24.25 Statement processing and Auto- mated Clearinghouse.
(a) Description. Statement processing is a voluntary automated program for participants in the Automated Broker Interface (ABI), allowing the grouping of entry/entry summaries and entry summaries on a daily basis. The re- lated duties, taxes, fees, and interest may be paid with a single payment. The preferred method of payment is by Automated Clearinghouse (ACH) debit or ACH credit, except where the im- porter of record has provided a sepa- rate check payable to the ‘‘U.S. Cus- toms Service’’ for Customs charges (du-
ties, taxes, or other debts owed Cus- toms (see § 111.29(b) of this chapter)). A particular statement payment must be accomplished entirely through ACH or completely by check or cash. A mixing of payment methods for a single state- ment will not be accepted. ACH debit (see paragraph (b)(2) of this section) is an arrangement in which the filer elec- tronically provides payment authoriza- tion for the Treasury-designated ACH processor to perform an electronic debit to the payer’s bank account; ACH credit is described in § 24.26. The pay- ment amount will then be automati- cally credited to the account of the De- partment of the Treasury. If a filer chooses to use statement processing for entries of quota-class merchandise and other special classes of merchandise designated by Customs Headquarters under § 142.13(b) of this chapter, he must also use statement processing as a normal course of business for the largest possible portion (see § 24.25(d)) of his eligible non-special class entries; further, he must use the ACH payment mechanism to pay all his ABI state- ments containing entries for quota- class merchandise. In no circumstance will check or cash be acceptable for payment of ABI statements containing entries for quota-class merchandise.
(b) How to elect participation—(1) Statement processing. An ABI filer must notify Customs in writing of the inten- tion to utilize statement processing.
(2) Automated Clearinghouse debit. If an ABI filer pays his statements through ACH debit, rather than by check, he must provide to Customs the bank routing number and the bank ac- count number for each account from which ACH payments are to be elec- tronically debited. Upon the deter- mination by Customs that the ABI filer has the necessary software to partici- pate and otherwise qualifies to partici- pate in ACH, Customs shall assign a unique identifying payer’s unit number to the participant and the Treasury- designated ACH processor. This unique number assigned by Customs will alert the ACH processor as to which bank and account to issue the electronic debit. If a client of a ABI filer opts to pay Customs charges from his own ac- count through an ABI filer, the client must provide directly to Customs the
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bank transit routing number and the bank account number for each of his accounts from which ACH payments can be electronically debited. Customs will then assign a unique payer’s unit number to each of his accounts and provide the assigned unit number di- rectly to the client and the Treasury- designated ACH processor. The client would then provide the appropriate payer’s unit number to his broker to pay his statements through ABI. It is the responsibility of the participant to ensure that all bank account informa- tion is accurate and that the correct unique payer’s unit number is utilized for each ACH transaction.
(c) Procedure for filer. (1) The filer shall transmit entry/entry summary and entry summary data through ABI indicating whether payment for a par- ticular entry summary will be by indi- vidual check or by using statement processing. If statement processing is indicated, the filer shall designate whether the entry summary is to be grouped by importer or broker, and shall provide a valid scheduled state- ment date (within 10 days of entry, but not a Saturday, Sunday or holiday).
(2) Customs shall provide a prelimi- nary statement to the ABI filer on the scheduled statement date. The prelimi- nary statement shall contain all entry/ entry summaries and entry summaries scheduled for that statement date. The preliminary statement shall be printed by the filer, who will review the state- ment entries and the statement totals, assemble the required entry summaries as listed in the statement, and present them to Customs with the preliminary statement. This presentation must be made within 10 working days after entry of the merchandise. If a filer elects to perform deletions from the preliminary statement (other than items related to special classes of mer- chandise provided for in § 142.13(b) of this chaper), the filer shall notify Cus- toms in such manner as designated by Customs Headquarters. Any entry number deleted from a statement may be paid by an individual check or scheduled for another statement by transmitting the entry summary data through ABI with a future payment date.
(3) The ABI filer using statement processing is responsible for ensuring that payment is made within 10 days of the entry of the related merchandise.
(4) When payments are made through ACH, Customs shall, upon acceptance of the ACH debit payment authoriza- tion or ACH credit payment, identify the preliminary statement as paid and shall post the appropriate amounts to the related entries. The final state- ment generally shall be available to the filer the day following the accept- ance of the ACH payment; this final statement may be utilized as evidence that statement payment has occurred through an ACH transaction. In other instances, a cancelled check may serve as evidence of payment.
(d) Choice of excluding certain entries from statement processing. An ABI filer using statement processing, generally, has the right to inform Customs elec- tronically whether he desires that a particular entry summary be paid by individual payment or through state- ment processing. If a filer opts to use statement processing for entry/entry summaries for quota-class and other special classes of merchandise defined in § 142.13(b) of this chapter, he shall use statement processing in the normal course of business for the largest pos- sible portion of his eligible non-special class entries also; further, he shall pay for these entry/entry summaries through ACH. If a filer opts to use statement processing and, therefore, ACH for entry/entry summaries for spe- cial classes of merchandise defined in § 142.13(b) of this chapter, these entry/ entry summaries cannot be deleted from a statement. A filer who excludes or deletes entries from the statement process and ACH should be prepared to articulate a sound business reason why these exclusions or deletions have oc- curred. If Customs believes that a broker is using ACH for his quota-class entries and not using statement proc- essing and ACH for the largest possible portion of his eligible non-special class entries, the ABI participant may be consulted by Customs as to why he has not used statement processing and ACH for certain entries. If Customs is not satisfied, after such consultation,
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that there were sound articulable busi- ness reasons for the exclusion or dele- tion of non-special class entries, Cus- toms may disqualify the participant from using statement processing/ACH for quota-class entries.
(e) Scheduled statement date. Entry/ entry summaries and entry summaries must be designated for statement proc- essing within 10 working days after the date of entry. It is the responsibility of the ABI filer using statement proc- essing to ensure that the elected sched- uled statement date is within that 10- day timeframe. Customs will not warn the filer if the scheduled statement date given is late.
[T.D. 89–104, 54 FR 50497, Dec. 7, 1989, as amended by T.D. 98–51, 63 FR 29125, May 28, 1998; T.D. 99–75, 64 FR 56439, Oct. 20, 1999; CBP Dec. 03–13, 68 FR 43630, July 24, 2003]
§ 24.26 Automated Clearinghouse cred- it.
(a) Description. Automated Clearing- house (ACH) credit is an optional pay- ment method that allows a payer to transmit statement processing pay- ments (see § 24.25) or deferred tax pay- ments (see § 24.4) or bill payments (see § 24.3) electronically, through its finan- cial institution, directly to the Cus- toms account maintained by the De- partment of the Treasury.
(b) Enrollment procedure. A payer in- terested in enrolling in the ACH credit program must indicate such interest by providing the following information to the Financial Management Services Center, U.S. Customs Service, 6026 Lakeside Boulevard, Indianapolis, Indi- ana 46278: Payer name and address; payer contact name(s); payer telephone number(s) and facsimile number; payer identification number (importer num- ber or Social Security number or Cus- toms assigned number); and 3-digit filer code.
(c) Routing and format instructions. Following receipt of the enrollment in- formation, the Financial Management Services Center will provide the payer with specific ACH credit routing and format instructions and will advise the payer that the following information must be provided to its financial insti- tution when originating its payments: Company name; company contact per- son name and telephone number; com-
pany identification number (coded In- ternal Revenue Service employer iden- tification number or DUNS number or Customs assigned number); company payment description; effective date; re- ceiving company name; transaction code; Customs transit routing number and Customs account number; payment amount; payer identifier (importer number or Social Security number or Customs assigned number or filer code if the payer is a broker who is the im- porter of record); document number (daily statement number, entry or warehouse withdrawal number for a de- ferred tax payment, or bill number); payment type code; settlement date; and document payment amount.
(d) Prenotification procedure. Before effecting any payments of funds through the ACH credit process, the payer must follow a prenotification procedure, involving a non-funds mes- sage transmission through its financial institution to the Customs account, in order to validate the routing instruc- tions. When the routing instructions are validated, the Financial Manage- ment Services Center will notify the payer that the prenotification trans- action has been accepted and that pay- ments may be originated on or after the tenth calendar day following the prenotification acceptance date.
(e) Payment origination procedures—(1) General. Once the payer has received authorization to begin originating ACH credit payments under paragraph (d) of this section, the payer, through its fi- nancial institution, must originate each payment transaction to the Cus- toms account no later than one busi- ness day prior to the payment due date. The payer’s account will be charged by the financial institution on the settlement date identified in the transaction. The payer is responsible for following the routing and format instructions provided by Customs and for ensuring the accuracy of the infor- mation when originating each pay- ment. Improperly formatted or erro- neous information provided by the payer will delay the prompt posting of the payment to the receivable.
(2) Procedures for daily statement filers. The procedures set forth in § 24.25(c) for ABI filers using statement processing
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remain applicable when payment is ef- fected through ACH credit. However, when the ABI filer is a customs broker who is not the importer of record and thus is not responsible for the pay- ment, the ABI filer must provide the statement number and statement amount to the importer of record at least one business day prior to the due date so that the importer of record can originate the payment.
(f) Date of collection. The date that the ACH credit payment transaction is received by Customs shall be the col- lection date which equates to the set- tlement date. The appropriate daily statement or entry or warehouse with- drawal or bill shall be identified as paid as of that collection date.
(g) Removal from the ACH credit pro- gram. If a payer repeatedly provides im- properly formatted or erroneous infor- mation when originating ACH credit payments, the Financial Management Services Center may advise the payer in writing to refrain from using ACH credit and to submit its payments by bank draft or check pursuant to § 24.1 or, in the case of daily statement pay- ments, to use the ACH debit payment method under § 24.25.
[T.D. 98–51, 63 FR 29125, May 28, 1998]
§ 24.32 Claims; unpaid compensation of deceased employees and death benefits.
(a) A claim made by a designated beneficiary or a surviving spouse for unpaid compensation due an officer or employee at the time of his death shall be executed on standard Form 1153, Claim of Designated Beneficiary and/or Surviving Spouse for Unpaid Com- pensation of Deceased Civilian Em- ployee. A claim made by anyone other than a designated beneficiary or sur- viving spouse for unpaid compensation due an officer or employee at the time of his death shall be executed on stand- ard Form 1155, Claim for Unpaid Com- pensation of Deceased Civilian Em- ployee. The claims shall be forwarded to the Customs office where the de- ceased was employed.
(b) Claims for death benefits, either in the form of an annuity or lump-sum payment of the amount to the credit of the deceased officer or employee in the Retirement and Disability Fund shall
be executed on standard Form 100, Ap- plication for Death Benefit, and for- warded together with a certified copy of the public record of death directly to the Office of Personnel Management, Washington, DC 20415.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 91–77, 56 FR 46114, Sept. 10, 1991]
§ 24.34 Vouchers; vendors’ bills of sale; invoices.
(a) Vouchers or invoices for transpor- tation and related services which are intended for payment from official funds shall contain the following cer- tification signed by the claimant:
I certify that the above bill is correct and just and that payment has not been received.
Vouchers, vendors’ bills of sale, or in- voices for purchases or services other than personal do not require the fore- going certification.
(b) Every voucher shall be in the name of the person or persons fur- nishing the service or supplies, except in the case of a service or supplies paid for in an emergency by a Customs offi- cer or employee, in which case the voucher may be in the name of the offi- cer or employee who made the pay- ment.
(c) The signature of a claimant made by a mark shall be attested in each case by a disinterested witness.
(d) The dates appearing on vouchers and on receipts filed in support thereof shall always be the actual dates of the transactions recorded or action taken thereon. As many copies in memo- randum form, duly authenticated if de- sired, may be prepared as administra- tive or other requirements demand.
(e) When an erasure, interlineation, or change of any kind is made in a voucher after it has been certified by the claimant, such correction or change shall be initialed and dated by the claimant.
(f)(1) Vouchers for passenger trans- portation furnished Customs officers or employees on Government transpor- tation requests, standard Form 1169, and vouchers for transportation of freight and express furnished on Gov- ernment bills of lading, standard Form 1103, issued by Customs officers or em- ployees shall be rendered on Public Voucher for Transportation Charges,
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standard Form 1171 or 1113, respec- tively, to the Customs office to be billed as indicated on the transpor- tation request or bill of lading.
(2) Charges for freight or express must not be included on the same vouchers with charges for passenger transportation. The words ‘‘Pas- senger,’’ ‘‘Freight,’’ or ‘‘Express,’’ as the case may be, should be printed or otherwise placed by the carrier imme- diately above the title of the voucher form. Original Government bills of lad- ing, standard Form 1103, or transpor- tation requests, standard Form 1169, or certificates in lieu thereof, standard Forms 1108 or 1172, respectively, shall be attached to these vouchers.
§ 24.36 Refunds of excessive duties, taxes, etc.
(a) When it is found upon, or prior to, liquidation or reliquidation of an entry or reconciliation that a refund of ex- cessive duties, taxes, fees or interest (at the rate determined in accordance with § 24.3a(c)(1)) is due, a refund shall be prepared in the name of the person to whom the refund is due, as deter- mined under paragraphs (b) and (c) of this section. If an authority to mail
checks to someone other than the payee, Customs Form 4811, is on file, the address of the payee shall be shown as in care of the address of the author- ized persons. If a power of attorney is on file, the address of the payee may be shown as in care of the address of such attorney, if requested. A Form 4811 re- ceived by Customs will not be effective if a Customs transaction requiring the use of the owner’s importer number has not been made within 3 years from the date the Form 4811 was filed or if there is no unliquidated entry on file to which such number is to be associated. For purposes of this section:
(1) Except as otherwise provided in paragraphs (a)(1)(i) through (a)(1)(iii) of this section, the refund shall include interest on the excess moneys depos- ited with Customs, and such interest shall accrue from the date the duties, taxes, fees or interest were deposited or, in a case in which a proper claim is filed under 19 U.S.C. 1520(d) and subpart D of Part 181 of this chapter, from the date such claim is filed, to the date of liquidation or reliquidation of the ap- plicable entry or reconciliation. An ex- ample follows:
Example: Entry liquidates for a refund
Importer is owed a refund of $600 plus inter- est as follows: The importer makes a $1,000 initial deposit (January 1) and the entry liquidates for $400 (December 1). Upon liquidation, the importer will be owed a refund of $600 plus interest. The interest will accrue from the date of de- posit (January 1) to the date of liquidation (December 1).
(i) If an additional deposit of duties, taxes, fees or interest was made prior to liquidation or reliquidation and if any portion of that additional deposit
was in excess of the amount required to be deposited, in addition to any other interest accrued under this paragraph (a)(1), the refund also shall include in- terest accrued on the excess additional deposit from the date of the additional deposit to the date of liquidation or re- liquidation of the applicable entry or reconciliation. An example follows:
Example: Additional deposit made and entry liquidates for a refund
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Importer is owed a refund of $900 plus inter- est as follows: The importer makes a $1,000 initial deposit (January 1) and an additional pre-liquidation deposit of $200 (May 1) and the entry liquidates for $300 (December 1). Upon liq- uidation, the importer will be refunded $900 plus interest. The interest accrues in two segments: (1) On the additional deposit over- payment ($200), from the date of the addi- tional deposit (May 1) to the date of liquida- tion (December 1); and (2) on the initial de- posit overpayment ($700), from the date of deposit (January 1) to the date of liquidation (December 1).
(ii) In the case of a refund of duties, taxes, fees or interest made prior to liquidation, such a refund will include
only principal amounts and not any in- terest thereon. Interest on such prin- cipal amounts will be computed at the time of liquidation or reliquidation and shall accrue as follows:
(A) Interest shall only accrue on the amount refunded from the date the du- ties, taxes, fees or interest were depos- ited to the date of the refund if the amount refunded is determined upon liquidation or reliquidation of the ap- plicable entry or reconciliation to con- stitute the true excess amount depos- ited with Customs. An example follows:
Example: Pre-liquidation refund and entry liquidates for net amount collected
Importer is owed a refund of interest on $200 as follows: The importer makes a $1,000 initial deposit (January 1) and receives a pre-liquidation re- fund of $200 (May 1) and the entry liquidates for $800 (December 1). Upon liquidation, the importer will be refunded interest on the $200 overpayment from the date of the initial de- posit (January 1) to the date of the pre-liq- uidation refund (May 1).
(B) If the amount refunded is deter- mined upon liquidation or reliquida- tion of the applicable entry or rec-
onciliation to constitute less than the true excess amount deposited with Cus- toms, in addition to any other interest accrued under this paragraph (a)(1), in- terest also shall accrue on the remain- ing excess deposit from the date the duties, taxes, fees or interest were de- posited to the date of liquidation or re- liquidation. An example follows:
Example: Pre-liquidation refund and entry liquidates for an additional refund
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Importer is owed a refund of $700 plus inter- est as follows: The importer makes a $1,000 initial deposit (January 1) and receives a pre-liquidation re- fund of $200 (May 1) and the entry liquidates for $100 (December 1). Upon liquidation, the importer will be refunded $700 plus interest. The interest accrues in two segments: (1) On the pre-liquidation refund ($200), from the date of deposit (January 1) to the date of the pre-liquidation refund (May 1); and (2) on the remaining overpayment ($700), from the date of deposit (January 1) to the date of liquida- tion (December 1).
(C) If an entry or reconciliation is de- termined upon liquidation or reliquida- tion to involve both an initial under- payment and an additional excess de- posit, interest in each case shall be computed separately and the resulting amounts shall be netted for purposes of determining the final amount of inter- est to be reflected in the refund. An ex- ample follows:
Example: Additional deposit made and entry liquidates for a refund
Importer is owed a refund of $200 plus or minus net interest as follows: The importer makes a $1,000 initial deposit on the required date (January 1) and an addi- tional pre-liquidation deposit of $300 (May 1) and the entry liquidates for $1,100 (December 1). Upon liquidation, the importer will be re- funded $200 plus or minus net interest. The interest accrues in two segments: (1) Interest accrues in favor of the Government on the initial underpayment ($100) from the date de- posit was required (January 1) to the date of the additional deposit (May 1); and (2) inter- est accrues in favor of the importer on the overpayment ($200) from the date of the addi- tional deposit (May 1) to the date of liquida- tion (December 1).
(D) If the amount refunded or any portion thereof exceeds the amount properly refundable as determined upon liquidation or reliquidation of the applicable entry or reliquidation, the excess amount refunded shall be treat- ed as an underpayment of duties, taxes, fees or interest on which interest shall accrue as provided in § 24.3a.
(2) A refund determined to be due upon liquidation or reliquidation, in- cluding a refund consisting only of in- terest that has accrued in accordance with paragraph (a)(1)(ii) of this section, shall be paid within 30 days of the date of liquidation or reliquidation of the applicable entry or reconciliation.
(3) If a refund, including any interest thereon, is not paid in full within the applicable 30-day period specified in paragraph (a)(2) of this section, the re- fund shall be considered delinquent
thereafter and interest shall accrue on the unpaid balance by 30-day periods until the full balance is paid. However, no interest will accrue during the 30- day period in which the refund is paid.
(b) Refunds of excessive duties, taxes, fees or interest shall be certified for payment to the importer of record un- less a transferee of the right to with- draw merchandise from bonded ware- house 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 sec- tion 485(d), Tariff Act of 1930, or a sur- ety submits evidence of payment to Customs, upon default of the principal, of amounts previously determined to be due on the same entry or trans- action. 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, pro- vided the nominal consignee waives in writing his right to file such declara- tion. 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 dec- laration 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
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a surety submits evidence of payment to Customs, upon default of the prin- cipal, for an amount previously deter- mined to be due on an entry or trans- action 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 be- come bankrupt, refunds of duties, taxes, fees or interest 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 there- to, unless the declaration of the actual owner has been filed with the port di- rector under section 485(d), Tariff Act of 1930.
(d) The authority of port directors to make refunds pursuant to paragraphs (a), (b), and (c) of this section of exces- sive 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, there- fore, the types in which the port direc- tor 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 in- stituted before June 15, 1957;
(5) The refund of tax is pursuant to a claim based solely on errors of com- putation of the quantity of the im- ported article, or on mathematical er- rors in computation of the tax due;
(6) The tax was paid or collected on an imported article seized and for- feited, 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 accordance 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 ap- plicable 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 port directors’ 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 port director shall issue a no- tice of refund for duty only and shall place the following statement on the notice of refund issued for duty: ‘‘Claim or refund of any overpayment of internal revenue tax on this entry must be executed and filed with the as- sistant 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 re- quest of the claimant, the port director 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 inter- nal 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 in- ternal 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 re- gion in which the claimant is located. The certified statement shall be at- tached to and filed in support of such claim which may include refunds under more than one entry but shall be lim- ited to refunds under entries filed at the same port and the same internal revenue region. The data to be shown on the claim shall be as prescribed in internal revenue regulations, with the
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exception that any data on the cer- tified statement also required to be shown in the claim need not be re- stated in the claim.
(3) The date of allowance of refund or credit in respect of such tax for the purposes of section 6407, Internal Rev- enue Code of 1954 (26 U.S.C. 6407) shall be that date on which a claim is per- fected and the refund is authorized for scheduling under the applicable inter- nal revenue regulations.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 67–33, 32 FR 494, Jan. 18, 1967; T.D. 71– 289, 36 FR 23150, Dec. 4, 1971; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 99–75, 64 FR 56439, Oct. 20, 1999]
§ 24.70 Claims; deceased or incom- petent public creditors.
(a) Claims for amounts due indi- vidual deceased public creditors of the United States (except civilian officers and employees subject to the provi- sions of section 61f–61k, Title 5, United States Code), should be made on stand- ard Form No. 1055—Revised. Such claims include claims for payments due deceased contractors for articles fur- nished or services performed, and claims for payments due deceased im- porters 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 Gov- ernment 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 signa- ture, an application for amounts due an estate of an incompetent, setting forth the incompetent’s connection with the United States Customs Serv- ice. This application should be sup- ported by a short certificate of the
court showing the appointment and qualification of the claimant as guard- ian or committee. In case the total amount due the estate of the incom- petent 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 incom- petent, or by close relatives who will hold any amount found due for the use and benefit of the incompetent. Appli- cations for recurring payments need not be accompanied by an additional certificate of the court, but should be supported by a statement that the ap- pointment is still in full force and ef- fect. All Government checks drawn on the Treasurer of the United States or other authorized Government deposi- tory to the order of individuals which cannot be paid because of incom- petency 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 fur- nished 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 port director. The Customs field officer may grant nec- essary assistance to claimants to in- sure proper execution of standard Form 1055—Revised in the case of deceased public creditors, and in the case of in- competent public creditors to insure submission of the application in proper form. The port director shall settle the claim unless there is a doubtful ques- tion of fact or law, in which case the claim shall be forwarded to the Ac- counting Services Division, Accounts Receivable Group, Indianapolis, Indi- ana, with originals or certified copies of any necessary documents and with an appropriate report and rec- ommendation.
[28 FR 14808, Dec. 31, 1963, as amended by T.D. 68–142, 33 FR 8225, June 1, 1968; T.D. 91– 77, 56 FR 46114, Sept. 10, 1991]
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§ 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 al- lowed by legal authority against the United States, and he is indebted to the United States, either as principal or surety, for an amount which is le- gally fixed and undisputed, the port di- rector shall set off so much of the judg- ment or other claim as will equal the amount of the debt due the Govern- ment.
[T.D. 56388, 30 FR 4671, Apr. 10, 1965]
§ 24.73 Miscellaneous claims.
Every claim of whatever nature aris- ing under the Customs laws which is not otherwise provided for shall be for- warded directly to Headquarters, U.S. Customs Service, together with all sup- porting documents and information available.
PART 54—CERTAIN IMPORTATIONS TEMPORARILY FREE OF DUTY
METAL ARTICLES IMPORTED TO BE USED IN RE- MANUFACTURE BY MELTING, OR TO BE PROC- ESSED BY SHREDDING, SHEARING, COM- PACTING, OR SIMILAR PROCESSING WHICH RENDERS THEM FIT ONLY FOR THE RECOV- ERY OF THE METAL CONTENT
Sec. 54.5 Scope of exemptions; nondeposit of es-
timated duty. 54.6 Proof of intent; bond; proof of use; liq-
uidation.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i); Section XV, Note 5, Harmonized Tariff Schedule of the United States), 1623, 1624.
METAL ARTICLES IMPORTED TO BE USED IN REMANUFACTURE BY MELTING, OR TO BE PROCESSED BY SHREDDING, SHEARING, COMPACTING, OR SIMILAR PROCESSING WHICH RENDERS THEM FIT ONLY FOR THE RECOVERY OF THE METAL CONTENT
§ 54.5 Scope of exemptions; nondeposit of estimated duty.
(a) Except as otherwise provided in this section, articles predominating by weight of metal to be used in remanu- facture by melting, or to be processed by shredding, shearing, compacting, or similar processing which renders them fit only for the recovery of the metal content, and actually so used, shall be entitled to free entry upon compliance with § 54.6, if entered, or withdrawn from warehouse for consumption, dur- ing the effective period of subheadings 9817.00.80 and 9817.00.90, Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202). This provi- sion does not apply to:
(1) Articles of lead, zinc, or tungsten; (2) Metal-bearing materials provided
for in section VI, Chapter 26 or sub- heading 8548.10, HTSUS; or
(3) Unwrought metal provided for in Section XV, HTSUS.’’
(b) No deposit of estimated duty shall be required upon the entry, or with- drawal from warehouse for consump- tion, of the articles described in para- graph (a) of this section if the port di- rector is satisfied at the time of entry, or withdrawal, by written declaration of the importer that the merchandise is being imported to be used in remanu- facture by melting, or to be processed by shredding, shearing, compacting, or similar processing which renders it fit only for the recovery of the metal con- tent.
[T.D. 80–151, 45 FR 38041, June 6, 1980, as amended by T.D. 87–75, 52 FR 20067, May 29, 1987; T.D. 89–1, 53 FR 51254, Dec. 21, 1988; T.D. 98–4, 62 FR 68165, Dec. 31, 1997]
§ 54.6 Proof of intent; bond; proof of use; liquidation.
Articles predominating by weight of metal, described in § 54.5(a) shall be ad- mitted free of duty upon compliance with the following conditions:
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(a) There shall be filed in connection with the entry a statement of the im- porter consistent with the require- ments of § 10.134 of this chapter.
(b) If the articles are entered for con- sumption or warehouse, a bond shall be filed on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter. Withdrawals from warehouse shall be made on Customs Form 7501. The liquidation of the con- sumption or warehouse entry shall be suspended pending proof of use or other disposition of the articles within the time prescribed in paragraph (c) of this section.
(c) Within 3 years from the date of entry, or withdrawal from warehouse for consumption, the importer shall submit to the director of the port of entry, a statement from the super- intendent or manager of the plant at which the articles were used in re- manufacture by melting, or were proc- essed by shredding, shearing, com- pacting, or similar processing which rendered them fit only for the recovery of the metal content, showing:
(1) The name and location of the plant;
(2) The entry number, date, and port of entry (if the person making the statement is not in possession of this information, a reference to invoices, purchase orders, or other documents which will identify the shipment with the entry may be substituted);
(3) The date or inclusive dates of the remanufacture or processing of the ar- ticles; and
(4) A description of the remanufac- ture or processing in sufficient detail to enable the port director to deter- mine whether it constituted a use in remanufacture by melting, or proc- essing by shredding, shearing, com- pacting, or similar processing which rendered the articles fit only for the re- covery of the metal content. In appro- priate cases, the remanufacture or processing of the articles covered by more than one entry may be included in one statement. The statement shall be based on adequate and carefully kept plant and import records which shall be available during normal busi- ness hours to any Customs officer. The importer and plant manager shall maintain the import and plant records
for 5 years from the date of the related entry of the merchandise. The burden shall be on the importer or plant man- ager to keep these records so that the claim of actual use can be established readily.
(d) If satisfactory proof of use of the articles in remanufacture by melting, or in processing by shredding, shearing, compacting, or similar processing which rendered them fit only for the recovery of the metal content, is fur- nished within the prescribed time, the entry shall be liquidated without the assessment of duty on the covered arti- cles. If proof is not filed within 3 years from the date of entry, or withdrawal from warehouse for consumption, or the use does not warrant the classifica- tion claimed, the entry shall be liq- uidated without any exemption from duty under subheading 9817.00.80 or 9817.00.90, HTSUS.
As used in this section, the phrase ‘‘in connection with the entry’’ means any time before liquidation of the entry or within the period during which a re- liquidation may be completed (§ 113.43(c)). Therefore, a claim for free entry under subheading 9817.00.80 or 9817.00.90, HTSUS, supported by a statement of intent may be filed at any time before liquidation of the entry or within the period during which a valid reliquidation may be completed.
(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))
[T.D. 80–151, 45 FR 38041, June 6, 1980, as amended by T.D. 84–213, 49 FR 41170, Oct. 19, 1984; T.D. 87–75, 52 FR 20067, May 29, 1987; T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 95– 81, 60 FR 52295, Oct. 6, 1995]
PART 101—GENERAL PROVISIONS
Sec. 101.0 Scope. 101.1 Definitions. 101.2 Authority of Customs officers. 101.3 Customs service ports and ports of
entry. 101.4 Entry and clearance of vessels at Cus-
toms stations. 101.5 CBP preclearance offices in foreign
countries. 101.6 Hours of business. 101.7 Customs seal. 101.8 Identification cards.
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101.9 Test programs or procedures; alter- nate requirements.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 3(i), Harmonized Tariff Sched- ule of the United States), 1623, 1624, 1646a.
Section 101.3 and 101.4 also issued under 19 U.S.C. 1 and 58b;
Section 101.5 also issued under 19 U.S.C. 1629;
Section 101.9 also issued under 19 U.S.C. 1411–1414.
SOURCE: T.D. 77–241, 42 FR 54937, Oct. 12, 1977, unless otherwise noted.
§ 101.0 Scope. This part sets forth general regula-
tions governing the authority of Cus- toms officers, and the location of Cus- toms ports of entry, service ports and Customs stations. It further sets forth regulations concerning the entry and clearance of vessels at Customs sta- tions and a listing of Customs preclearance offices in foreign coun- tries. In addition, this part contains provisions concerning the hours of business of Customs offices, the Cus- toms seal, and the identification cards issued to Customs officers and employ- ees.
[T.D. 77–241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 101.1 Definitions. As used in this chapter, the following
terms shall have the meanings indi- cated unless either the context in which they are used requires a dif- ferent meaning or a different definition is prescribed for a particular part or portion thereof:
Business day. A ‘‘business day’’ means a weekday (Monday through Friday), excluding national holidays as speci- fied in § 101.6(a).
Customs station. A ‘‘Customs station’’ is any place, other than a port of entry, at which Customs officers or employees are stationed, under the authority con- tained in article IX of the President’s Message of March 3, 1913 (T.D. 33249), to enter and clear vessels, accept entries of merchandise, collect duties, and en- force the various provisions of the Cus- toms and navigation laws of the United States.
Customs territory of the United States. ‘‘Customs territory of the United
States’’ includes only the States, the District of Columbia, and Puerto Rico.
Date of entry. The ‘‘date of entry’’ or ‘‘time of entry’’ of imported merchan- dise shall be the effective time of entry of such merchandise, as defined in § 141.68 of this chapter.
Date of exportation. ‘‘Date of expor- tation’’ or ‘‘time of exportation’’ shall be as defined in § 152.1(c) of this chap- ter.
Date of importation. ‘‘Date of importa- tion’’ means, in the case of merchan- dise imported otherwise than by vessel, the date on which the merchandise ar- rives within the Customs territory of the United States. In the case of mer- chandise imported by vessel, ‘‘date of importation’’ means the date on which the vessel arrives within the limits of a port in the United States with intent then and there to unlade such mer- chandise.
Duties. ‘‘Duties’’ means Customs du- ties and any internal revenue taxes which attach upon importation.
Entry or withdrawal for consumption. ‘‘Entry or withdrawal for consump- tion’’ means entry for consumption or withdrawal from warehouse for con- sumption.
Exportation. ‘‘Exportation’’ means a severance of goods from the mass of things belonging to this country with the intention of uniting them to the mass of things belonging to some for- eign country. The shipment of mer- chandise abroad with the intention of returning it to the United States with a design to circumvent provisions of re- striction or limitation in the tariff laws or to secure a benefit accruing to imported merchandise is not an expor- tation. Merchandise of foreign origin returned from abroad under these cir- cumstances is dutiable according to its nature, weight, and value at the time of its original arrival in this country.
Importer. ‘‘Importer’’ means the per- son primarily liable for the payment of any duties on the merchandise, or an authorized agent acting on his behalf. The importer may be:
(1) The consignee, or (2) The importer of record, or (3) The actual owner of the merchan-
dise, if an actual owner’s declaration and superseding bond has been filed in
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accordance with § 141.20 of this chapter, or
(4) The transferee of the merchan- dise, if the right to withdraw merchan- dise in a bonded warehouse has been transferred in accordance with subpart C of part 144 of this chapter.
Port and port of entry. The terms ‘‘port’’ and ‘‘port of entry’’ refer to any place designated by Executive Order of the President, by order of the Sec- retary of the Treasury, or by Act of Congress, at which a Customs officer is authorized to accept entries of mer- chandise to collect duties, and to en- force the various provisions of the Cus- toms and navigation laws. The terms ‘‘port’’ and ‘‘port of entry’’ incorporate the geographical area under the juris- diction of a port director. (The Cus- toms ports in the Virgin Islands, al- though under the jurisdiction of the Secretary of the Treasury, have their own Customs laws (48 U.S.C. 1406(i)). These ports, therefore, are outside the Customs territory of the United States and the ports thereof are not ‘‘ports of entry’’ within the meaning of these regulations).
Principal field officer. A ‘‘principal field officer’’ is an officer in the field service whose immediate supervisor is located at Customs Service Head- quarters.
Service port. The term ‘‘service port’’ refers to a Customs location having a full range of cargo processing func- tions, including inspections, entry, col- lections, and verification.
Shipment. ‘‘Shipment’’ means the merchandise described on the bill of lading or other document used to file or support entry, or in the oral declara- tion when applicable.
[T.D. 77–241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 84–213, 49 FR 41170, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984; T.D. 94–51, 59 FR 30294, June 13, 1994; T.D. 95–77, 60 FR 50011, Sept. 27, 1995; T.D. 99–57, 64 FR 40987, July 28, 1999]
§ 101.2 Authority of Customs officers. (a) Supremacy of delegated authority.
Action taken by any person pursuant to authority delegated to him by the Secretary of the Treasury, whether di- rectly or by subdelegation, shall be valid despite the existence of any stat- ute or regulation, including any provi-
sion of this chapter, which provides that such action shall be taken by some other person. Any person acting under such delegated authority shall be deemed to have complied with any statute or regulation which provides or indicates that it shall be the duty of some other person to perform such ac- tion.
(b) Consolidation of functions. Any re- organization of the Customs Service or consolidation of the functions of two or more persons into one office which re- sults in the failure of a designated Cus- toms officer to perform an action re- quired by statute or regulation, shall not invalidate the performance of that action by any other Customs officer.
(c) Customs supervision. Whenever anything is required by the regulations in this chapter or by any provision of the customs or navigation laws to be done or maintained under the super- vision of Customs officers, such super- vision shall be carried out as prescribed in the regulations of this chapter or by instructions from the Secretary of the Treasury or the Commissioner of Cus- toms in particular cases. In the ab- sence of a governing regulation or in- struction, supervision shall be direct and continuous or by such occasional verification as the principal Customs field officer shall direct if such officer shall determine that less intensive su- pervision will ensure proper enforce- ment of the law and protection of the revenue. Nothing in this section shall be deemed to warrant any failure to di- rect and furnish required supervision or to excuse any failure of a party in interest to comply with prescribed pro- cedures for obtaining any required su- pervision.
[T.D. 77–241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 98–22, 63 FR 11825, Mar. 11, 1998]
§ 101.3 Customs service ports and ports of entry.
(a) Designation of Customs field organi- zation. The Deputy Assistant Secretary (Regulatory, Tariff, and Trade Enforce- ment), pursuant to authority delegated by the Secretary of the Treasury, is au- thorized to establish, rearrange or con- solidate, and to discontinue Customs ports of entry as the needs of the Cus- toms Service may require.
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(b) List of Ports of Entry and Service Ports. The following is a list of Customs Ports of Entry and Service Ports. Many of the ports listed were created by the President’s message of March 3, 1913, concerning a reorganization of the Customs Service pursuant to the Act of August 24, 1912 (37 Stat. 434; 19 U.S.C. 1). Subsequent orders of the President
or of the Secretary of the Treasury which affected these ports, or which created (or subsequently affected) addi- tional ports, are cited following the name of the ports.
(1) Customs ports of entry. A list of Customs ports of entry by State and the limits of each port are set forth below:
Ports of entry Limits of port
Alabama
Birmingham Huntsville ..................................................... T.D. 83–196. Mobile .......................................................... Including territory described in T.D. 76–259.
Alaska
Alcan ........................................................... T.D. 71–210. Anchorage ................................................... T.D.s 55295 and 68–50. Dalton Cache .............................................. T.D. 79–74. Fairbanks ..................................................... E.O. 8064, Mar. 9, 1939 (4 FR 1191). Juneau Ketchikan ..................................................... Including territory described in T.D. 74–100. Kodiak ......................................................... T.D. 98–65. Sitka ............................................................ Including territory described in T.D. 55609. Skagway Valdez ......................................................... Including territory described in T.D. 79–201. Wrangell ...................................................... Including territory described in T.D. 56420.
Arizona
Douglas ....................................................... Including territory described in E.O. 9382, Sept. 25, 1943 (8 FR 13083). Lukeville ...................................................... E.O. 10088, Dec. 3, 1949 (14 FR 7287). Naco Nogales ....................................................... Including territory described in T.D. 77–285. Phoenix ....................................................... T.D. 71–103. San Luis ...................................................... E.O. 5322, Apr. 9, 1930. Sasabe ........................................................ E.O. 5608, Apr. 22, 1931. Tucson ......................................................... Including territory described in T.D. 89–102.
Arkansas
Little Rock-North Little Rock ....................... T.D. 70–146. (Restated in T.D. 84–126).
California
Andrade ....................................................... E.O. 4780, Dec. 13, 1927. Calexico Eureka Fresno ......................................................... Including territory described in T.D. 74–18. Los Angeles-Long Beach ............................ Including territory described in T.D. 78–130. Port Hueneme ............................................. T.D. 92–10. Port San Luis T.D. 35546. Sacramento ................................................. CBP Dec. 06–23. San Diego ................................................... T.D. 85–163. + San Francisco-Oakland ........................... CBP Dec. 06–23. San Jose ..................................................... 95–80 Tecate ......................................................... E.O. 4780, Dec. 13, 1927.
Colorado
Denver ......................................................... T.D. 80–180.
Connecticut
Bridgeport .................................................... Including territory described in T.D. 68–224. Hartford ....................................................... Including territory described in T.D. 68–224. New Haven .................................................. Including territory described in T.D. 68–224. New London ................................................ Including territory described in T.D. 68–224.
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Ports of entry Limits of port
Delaware
Wilmington ................................................... Included in the Consolidated Port of the Delaware River and Bay described in T.D. 96–4.
District of Columbia
Washington ................................................. Including territory described in T.D. 68–67.
Florida
Fernandina Beach ....................................... Including St. Mary’s, GA; T.D. 53033. Fort Myers ................................................... T.D. 99–9 Jacksonville ................................................. T.D. 69–45. Key West ..................................................... Including territory described in T.D. 53994. Miami ........................................................... Including territory described in T.D. 53514. Orlando ........................................................ T.D. 76–306. Orlando-Sanford Airport .............................. T.D. 97–64. Panama City ................................................ E.O. 3919, Nov. 1, 1923. Pensacola Port Canaveral ............................................ Including territory described in T.D. 66–212. Port Everglades ........................................... E.O. 5770, Dec. 31, 1931; including territory described in T.D. 53514. Mail: Fort
Lauderdale, FL. Port Manatee ............................................... T.D. 88–14. St. Petersburg ............................................. E.O. 7928, July 14, 1938 (3 FR 1749); including territory described in T.D. 53994. Tampa ......................................................... Including territory described in T.D. 68–91. West Palm Beach ....................................... E.O. 4324, Oct. 15, 1925; including territory described in T.D. 53514.
Georgia
Atlanta ......................................................... Including territory described in T.D. 55548. Brunswick .................................................... Including territory described in T.D. 86–162. Fernandina Beach, FL ................................ Including St. Mary’s, GA; T.D. 53033. Savannah .................................................... Including territory described in E.O. 8367, Mar. 5, 1940 (5 FR 985).
Hawaii
Hilo .............................................................. T.D. 95–11. Honolulu ...................................................... Including territory described in T.D. 90–59. Kahului ........................................................ T.D. 95–11. Nawiliwili-Port Allen ..................................... E.O. 4385, Feb. 25, 1926; including territory described in T.D. 56424.
Idaho
Boise ........................................................... Pub.L. 98–573; T.D. 85–22. Eastport Porthill
Illinois
+ Chicago .................................................... Including territory described in CBP Dec. 04–24. Davenport, IA-Moline and Rock Island, IL .. T.D.s 86–76 and 89–10. Peoria .......................................................... Including territory described in T.D.72–130. Rockford ...................................................... CBP Dec. 05–38.
Indiana
Cincinnati, OH-Lawrenceburg, IN ............... Consolidated port, T.D. 84–91. Indianapolis Owensboro, KY-Evansville, IN .................... Consolidated port, T.D. 84–91.
Iowa
Davenport,IA-Moline and Rock Island, IL ... T.D.s 86–76 and 89–10. Des Moines ................................................. T.D. 75–104.
Kansas
Wichita ......................................................... T.D. 74–93.
Kentucky
Louisville ...................................................... Including territory described in T.D. 77–232. Owensboro, KY-Evansville, IN .................... Consolidated port, T.D. 84–91.
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U.S. Customs and Border Protection, DHS; Treasury § 101.3
Ports of entry Limits of port
Louisiana
Baton Rouge ............................................... E.O. 5993, Jan. 13, 1933; including territory described in T.D.s 53514 and 54381. (Restated in T.D. 84–126).
Gramercy ..................................................... T.D. 82–93. Lake Charles ............................................... E.O. 5475, Nov. 3, 1930; including territory described in T.D. 54137. Morgan City ................................................. T.D. 54682; including territory described in T.D.s 66–266 and 94–77. (Restated in
T.D. 84–126). New Orleans ............................................... E.O. 5130, May 29, 1929; including territory described in T.D. 74–206. (Restated in
T.D. 84–126). Shreveport-Bossier City .............................. Including territory described in T.D. 86–145.
Maine
Bangor ......................................................... Including Brewer, ME, E.O. 9297, Feb. 1, 1943 (8 FR 1479). Bar Harbor ................................................... Including Mount Desert Island, the city of Ellsworth, and the townships of Hancock,
Sullivan, Sorrento, Gouldsboro, and Winter Harbor and Trenton, E.O. 4572, Jan. 27, 1927, and T.D. 78–130.
Bath ............................................................. Including Booth Bay and Wiscasset, E.O. 4356, Dec. 15, 1925. Belfast ......................................................... Including Searsport, E.O. 6754, June 28, 1934. Bridgewater ................................................. E.O. 8079, Apr. 4, 1939 (4 FR 1475). Calais .......................................................... Including townships of Calais, Robbinston, and Baring, E.O. 6284, Sept. 13, 1933. Eastport ....................................................... Including Lubec and Cutler, E.O. 4296, Aug. 26, 1925. Fort Fairfield Fort Kent Houlton ........................................................ E.O. 4156, Feb. 14, 1925. Jackman ...................................................... Including townships of Jackman, Sandy Bay, Bald Mountain, Holeb, Attean,
Lowelltown, Dennistown, and Moose River, T.D. 54683. Jonesport ..................................................... Including towns (townships) of Beals, Jonesboro, Roque Bluffs, and Machiasport,
E.O. 4296, Aug. 26, 1925; E.O. 8695, Feb. 25, 1941 (6 FR 1187). Limestone Madawaska Portland ....................................................... Including territory described in CBP Dec. 03–08. Portsmouth, N.H .......................................... Including Kittery, ME. Rockland Van Buren Vanceboro
Maryland
Annapolis Baltimore ..................................................... Including territory described in T.D. 68–123. Cambridge ................................................... E.O. 3888, Aug. 13, 1923; Crisfield.
Massachusetts
Boston ......................................................... Including territory and waters adjacent thereto described in T.D. 56493. Fall River ..................................................... Including territory described in T.D. 54476. Gloucester Lawrence ..................................................... E.O. 5444, Sept. 16, 1930; E.O. 10088, Dec. 3, 1949 (14 FR 7287); including terri-
tory described in T.D. 71–12. New Bedford Plymouth Salem .......................................................... Including Beverly, Marblehead, and Lynn; including Peabody, E.O. 9207, July 29,
1942 (7 FR 5931). Springfield ................................................... T.D. 69–189. Worcester
Michigan
Battle Creek ................................................ T.D. 72–233. Detroit .......................................................... Including territory described in E.O. 9073, Feb. 25, 1942 (7 FR 1588), and T.D.
53738. Grand Rapids .............................................. T.D. 77–4. Marinette, WI ............................................... Including Menominee, MI. Muskegon .................................................... E.O. 8315, Dec. 22, 1939 (4 FR 4941); including territory described in T.D. 56230. Port Huron ................................................... Including territory described in T.D. 87–117. Saginaw-Bay City-Flint ................................ Consolidated port, T.D. 79–74; including territory described in T.D. 82–9. Sault Ste. Marie .......................................... Including territory described in T.D. 79–74.
Minnesota
Baudette ...................................................... E.O. 4422, Apr. 19, 1926. Duluth, MN and Superior, WI ...................... Including territory described in T.D. 55904. Grand Portage ............................................. T.D. 56073.
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19 CFR Ch. I (4–1–12 Edition)§ 101.3
Ports of entry Limits of port
International Falls-Ranier ............................ Including territory described in T.D. 66–246. Minneapolis-St. Paul ................................... Including territory described in T.D. 69–15. Pinecreek .................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Roseau ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245). Warroad
Mississippi
Greenville .................................................... T.D. 73–325. (Restated in T.D. 84–126). Gulfport Pascagoula .................................................. Including territory described in T.D. 86–68. Vicksburg ..................................................... T.D. 72–123; including territory described in T.D. 93–32. (Restated in T.D. 84–
126).
Missouri
Kansas City ................................................. Including Kansas City, KS and North Kansas City, MO, E.O. 8528, Aug. 27, 1940 (5 FR 3403); including territory described in T.D. 67–56.
Spirit of St. Louis Airport ............................. Including territory described in T.D. 97–7. Springfield ................................................... Including all territory within Greene and Christian Counties, T.D. 84–84. St. Joseph St. Louis ...................................................... CBP Dec. 09–16.
Montana
Butte ............................................................ T.D. 73–121. Del Bonita .................................................... E.O. 7947, Aug. 9, 1938 (3 FR 1965); Mail: Cut Bank, MT. Great Falls Morgan ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245); Mail: Loring, MT. Opheim ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245). Piegan ......................................................... E.O. 7632, June 15, 1937 (2 FR 1245); Mail: Babb, MT. Raymond ..................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Roosville ...................................................... E.O. 7632, June 15, 1937 (2 FR 1245); Mail: Eureka, MT. Scobey ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245). Sweetgrass Turner .......................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Whitetail ....................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Whitlash ....................................................... E.O. 7632, June 15, 1937 (2 FR 1245).
Nebraska
Omaha ......................................................... Including territory described in T.D. 73–228.
Nevada
Las Vegas ................................................... Including territory described in T.D. 79–74. Reno ............................................................ Including territory described in T.D. 73–56.
New Hampshire
Portsmouth .................................................. Including Kittery, ME.
New Jersey
Camden, Gloucester City, and Salem ........ Included in the Consolidated Port of the Delaware River and Bay described in T.D. 96–4.
Perth Amboy
New Mexico
Albuquerque ................................................ Including territory described in T.D. 74–304. Columbus Santa Teresa ............................................... T.D. 94–34.
New York
Albany Alexandria Bay ............................................ Including territory described in E.O. 10042, Mar. 10, 1949 (14 FR 1155). Buffalo-Niagara Falls ................................... T.D. 56512. Cape Vincent Champlain-Rouses Point ............................ Including territory described in T.D. 67–68. Clayton Massena ...................................................... T.D. 54834. + New York ................................................. Including territory described in E.O. 4205, Apr. 15, 1925 (T.D. 40809). Ogdensburg
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U.S. Customs and Border Protection, DHS; Treasury § 101.3
Ports of entry Limits of port
Oswego Rochester Sodus Point Syracuse Trout River .................................................. Consolidated port includes Chateaugay and Fort Covington, T.D. 83–253. Utica
North Carolina
Beaufort-Morehead City .............................. Including territory described in T.D. 87–76. Charlotte ...................................................... T.D. 56079. Durham ........................................................ E.O. 4876, May 3, 1928; including territory described in E.O. 9433, Apr. 4, 1944 (9
FR 3761), and T.D. 82–9. Reidsville ..................................................... E.O. 5159, July 18, 1929; including territory described in E.O. 9433, Apr. 6, 1944
(9 FR 3761). Wilmington ................................................... Including townships of Northwest, Wilmington, and Cape Fear, E.O. 7761, Dec. 3,
1937 (2 FR 2679); including territory described in E.O. 10042, Mar. 10, 1949 (14 FR 1155).
Winston-Salem ............................................ Including territory described in T.D. 87–64.
North Dakota
Ambrose ...................................................... E.O. 5835, April 13, 1932. Antler Carbury ........................................................ E.O. 5137, June 17, 1929. Dunseith ...................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Fargo ........................................................... CBP Dec. 03–09. Fortuna ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245). Hannah Hansboro Maida ........................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Neche Noonan ........................................................ E.O. 7632, June 15, 1937 (2 FR 1245). Northgate T.D. 37386, T.D. 37439 Pembina ...................................................... CBP Dec. 06–15. Portal Sarles Sherwood St. John ....................................................... E.O. 5835, Apr. 13, 1932. Walhalla Westhope .................................................... E.O. 4236, June 1, 1925.
Ohio
Ashtabula/Conneaut .................................... Consolidated port, T.D. 77–232. Cincinnati, OH-Lawrenceburg, IN ............... Consolidated port, T.D. 84–91. Cleveland .................................................... Including territory described in T.D. 77–232; consolidated port, T.D. 87–123. Columbus .................................................... CBP Dec. 09–35. Dayton ......................................................... CBP Dec. 09–19. Toledo-Sandusky ........................................ Consolidated port, T.D. 84–89.
Oklahoma
Oklahoma City ............................................. Including territory described in T.D. 66–132. Tulsa ............................................................ T.D. 69–142.
Oregon
Astoria ......................................................... Including territory described in T.D. 73–338. Coos Bay ..................................................... E.O. 4094, Oct. 28, 1924; E.O. 5193, Sept. 14, 1929; E.O. 5445, Sept. 16, 1930;
E.O. 9533, Mar. 23, 1945 (10 FR 3173). Newport Portland
Pennsylvania
Chester ........................................................ Included in the Consolidated Port of the Delaware River and Bay described in T.D. 96–4.
Erie .............................................................. Including territory described in T.D. 77–5. Harrisburg .................................................... T.D. 71–233. Lehigh Valley ............................................... T.D. 93–75. Philadelphia ................................................. Included in the Consolidated Port of the Delaware River and Bay described in T.D.
96–4. Pittsburgh .................................................... Including territory described in T.D. 67–197.
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19 CFR Ch. I (4–1–12 Edition)§ 101.3
Ports of entry Limits of port
Wilkes-Barre/Scranton ................................ T.D. 75–64.
Puerto Rico
Aguadilla T.D. 22305. Fajardo Guanica Humacao ..................................................... Including territory described in T.D. 70–157. Jobos ........................................................... E.O. 9162, May 13, 1942 (7 FR 3569). Mayaguez .................................................... T.D. 22305. Ponce .......................................................... Including territory described in T.D. 54017. San Juan ..................................................... Including territory described in T.D. 54017.
Rhode Island
Newport Providence .................................................. Including territory described in T.D. 67–3.
South Carolina
Charleston ................................................... Including territory described in T.D. 76–142. Columbia ..................................................... Including all territory in Richland and Lexington Counties, T.D. 82–239. Georgetown Greenville-Spartanburg ............................... T.D. 70–148.
South Dakota
Sioux Falls ................................................... T.D. 96–3.
Tennessee
Chattanooga ................................................ (Restated in T.D. 84–126). Knoxville ...................................................... T.D. 75–128. (Restated in T.D. 84–126). Memphis ...................................................... CBP Dec. 04–22. Nashville ...................................................... (Restated in T.D. 84–126). Tri-Cities, TN/VA ......................................... CBP Dec. 06–14.
Texas
Amarillo ....................................................... T.D. 75–129. Austin .......................................................... T.D. 81–170. Beaumont, Orange, Port Arthur, Sabine ..... Consolidated port, T.D. 74–231; including territory described in T.D. 81–160. Brownsville .................................................. Including territory described in T.D. 79–254. Corpus Christi ............................................. E.O. 8288, Nov. 22, 1939 (4 FR 4691), and territory described in T.D. 78–130. Dallas-Fort Worth ........................................ T.D. 73–297; T.D. 79–232; T.D. 81–170. Del Rio Eagle Pass .................................................. Including territory described in T.D. 91–93. El Paso ........................................................ T.D. 54407, including territory described in T.D. 78–221. Fabens ........................................................ E.O. 4869, May 1, 1928. Freeport ....................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Hidalgo ........................................................ T.D. 85–164. + Houston-Galveston .................................. Consolidated port includes territory lying within corporate limits of both Houston
and Galveston, and remaining territory in Harris and Galveston Counties, T.D.s 81–160 and 82–15.
Laredo ......................................................... Including territory described in T.D. 90–69. Lubbock ....................................................... T.D. 76–79. Port Lavaca-Point Comfort .......................... T.D. 56115. Presidio ....................................................... E.O. 2702, Sept. 7, 1917. Progreso ...................................................... T.D. 85–164. Rio Grande City .......................................... Including territory described in T.D. 92–43. Roma ........................................................... E.O. 4830, Mar. 14, 1928. San Antonio
Utah
Salt Lake City .............................................. T.D. 69–76.
Vermont
Beecher Falls Burlington .................................................... Including town of South Burlington, T.D. 54677. Derby Line Highgate Springs/Alburg ............................. E.O. 7632, June 15, 1937 (2 FR 1245); includes territory described in T.D. 77–165. Norton .......................................................... T.D. 73–249. Richford
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U.S. Customs and Border Protection, DHS; Treasury § 101.3
Ports of entry Limits of port
St. Albans .................................................... Including township of St. Albans, E.O. 3925, Nov. 13, 1923; E.O. 7632, June 15, 1937 (2 FR 1245); T.D. 77–165.
Virginia
Alexandria, VA ............................................ T.D. 68–67. Front Royal .................................................. T.D. 89–63. New River Valley ......................................... CBP Dec. 06–10. Norfolk-Newport News ................................ Consolidated port includes waters and shores of Hampton Roads. Richmond-Petersburg ................................. Consolidated port, T.D. 68–179.
Virgin Islands, U.S.
Charlotte Amalie, St. Thomas Christiansted, St. Croix Coral Bay, St. John Cruz Bay, St. John Frederiksted, St. Croix
Washington
Aberdeen ..................................................... Including territory described in T.D.s 56229, 79–169, and 84–90. Blaine .......................................................... E.O. 5835, Apr. 13, 1932. Boundary ..................................................... T.D. 67–65. Danville Ferry Frontier ........................................................ T.D. 67–65. Laurier Longview ..................................................... Including territory described in T.D. 73–338. Lynden ......................................................... E.O. 7632, June 15, 1937 (2 FR 1245). Metaline Falls .............................................. E.O. 7632, June 15, 1937 (2 FR 1245). Nighthawk T.D. 39882 Oroville ........................................................ E.O. 5206, Oct. 11, 1929. Point Roberts .............................................. T.D. 78–272. Puget Sound ............................................... Consolidated port includes Seattle, Anacortes, Bellingham, Everett, Friday Harbor,
Neah Bay, Olympia, Port Angeles, Port Towsend, and Tacoma, T.D. 00–35. Spokane Sumas
West Virginia
Charleston ................................................... T.D. 73–170 and including territory described in T.D. 73–212.
Wisconsin
Ashland Duluth, MN and Superior, WI ...................... Including territory described in T.D. 55904. Green Bay ................................................... Including townships of Ashwaubenon, Allouez, Preble, and Howard, and city of De
Pere, T.D. 54597. Manitowoc Marinette ..................................................... Including Menominee, MI. Milwaukee ................................................... Including territory described in T.D. 72–105. Racine ......................................................... Including city of Kenosha and townships of Mount Pleasant and Somers, T.D.
54884. Sheboygan
+ Indicates Drawback unit/office.
(2) Customs service ports. A list of Cus- toms service ports and the States in which they are located is set forth below:
State Service ports
Alabama ................................. Mobile. Alaska .................................... Anchorage. Arizona ................................... Nogales. California ................................ Los Angeles.
LAX. San Diego. San Francisco.
State Service ports
Colorado ................................ Denver. Florida .................................... Miami.
Tampa. Georgia .................................. Savannah. Hawaii .................................... Honolulu. Illinois ..................................... Chicago. Louisiana ............................... New Orleans. Maine ..................................... Portland. Maryland ................................ Baltimore. Massachusetts ....................... Boston. Michigan ................................ Detroit. Minnesota .............................. Duluth.
Minneapolis.
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19 CFR Ch. I (4–1–12 Edition)§ 101.4
State Service ports
Missouri ................................. St. Louis. Montana ................................. Great Falls. New Jersey ............................ New York/Newark. New York ............................... Buffalo.
Champlain. JFK. New York/Newark.
North Carolina ....................... Charlotte. North Dakota ......................... Pembina. Ohio ....................................... Cleveland. Oregon ................................... Portland. Pennsylvania ......................... Philadelphia. Puerto Rico ............................ San Juan. Rhode Island ......................... Providence. South Carolina ....................... Charleston. Texas ..................................... Dallas.
El Paso. Houston. Laredo.
Vermont ................................. St. Albans. Virginia ................................... Dulles.
Norfolk. Virgin Islands ......................... Charlotte Amalie. Washington ............................ Blaine.
Seattle. Wisconsin .............................. Milwaukee.
[T.D. 95–77, 60 FR 50011, Sept. 27, 1995]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 101.3, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 101.4 Entry and clearance of vessels at Customs stations.
(a) Entry at Customs station. A vessel shall not be entered or cleared at a Customs station, or any other place that is not a port of entry, unless entry or clearance is authorized by the direc- tor of the port under whose jurisdiction the station or place falls pursuant to the provisions of section 447, Tariff Act of 1930, as amended (19 U.S.C. 1447).
(b) Authorization to enter. Authoriza- tion to enter or be cleared at a Cus- toms station shall be granted by the di- rector of the port under whose jurisdic- tion the station or place falls provided the port director is notified in advance of the arrival of the vessel concerned and the following conditions are met:
(1) Such Customs supervision as may be necessary can be provided.
(2) All applicable Customs and navi- gation laws and regulations are com- plied with.
(3) The owner, master or agent of a vessel sought to be entered at a Cus- toms station reimburses the Govern- ment for the salary and expenses of the Customs officer or employee stationed
at or sent to such Customs station or other place which is not a port of entry for services rendered in connection with the entry or clearance of such ves- sel, and
(4) Except as otherwise provided by these regulations, the Government is reimbursed by the interested parties for the expenses, including any per diem allowed in lieu of subsistence, but not the salary of a Customs officer or employee for services rendered in con- nection with the entry or delivery of merchandise.
(c) Customs stations designated. The Customs stations and the ports of entry having supervision thereof are listed below:
Customs station Supervisory port of entry
Alaska
Barrow ................................... Fairbanks. Dutch Harbor ......................... Anchorage. Eagle ...................................... Alcan. Fort Yukon ............................. Fairbanks. Haines .................................... Dalton Cache. Hyder ..................................... Ketchikan. Kaktovik (Barter Island) ......... Fairbanks. Kenai (Nikiski) ........................ Anchorage. Northway ................................ Alcan. Pelican ................................... Juneau. Petersburg ............................. Wrangell.
California
Campo ................................... Tecate. Otay Mesa ............................. San Diego. San Ysidro ............................. San Diego.
Colorado
Colorado Springs ................... Denver.
Delaware
Lewes .................................... Philadelphia, PA.
Florida
Fort Pierce ............................. West Palm Beach. Green Cove Springs .............. Jacksonville. Port St. Joe ............................ Panama City.
Indiana
Fort Wayne ............................ Indianapolis.
Maine
Bucksport ............................... Belfast. Coburn Gore .......................... Jackman. Daaquam ............................... Jackman. Easton .................................... Fort Fairfield. Estcourt .................................. Fort Kent. Forest City ............................. Houlton. Hamlin .................................... Van Buren.
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U.S. Customs and Border Protection, DHS; Treasury § 101.5
Customs station Supervisory port of entry
Maryland
Salisbury ................................ Baltimore.
Massachusetts
Provincetown ......................... Plymouth.
Michigan
Alpena .................................... Saginaw-Bay City-Flint. Detour .................................... Sault Ste. Marie. Escanaba ............................... Sault Ste. Marie. Grand Haven ......................... Muskegon. Houghton ............................... Sault Ste. Marie. Marquette ............................... Sault Ste. Marie. Rogers City ............................ Saginaw-Bay City-Flint.
Minnesota
Crane Lake ............................ Duluth, MN-Superior, WI. Ely .......................................... Duluth, MN-Superior, WI. Lancaster ............................... Noyes. Oak Island ............................. Warroad.
Mississippi
Biloxi ...................................... Mobile, AL.
Montana
Wild Horse ............................. Great Falls. Willow Creek .......................... Great Falls.
New Jersey
Atlantic City ............................ Philadelphia-Chester, PA and Wilmington, DE.
Port Norris ............................. Philadelphia-Chester, PA and Wilmington, DE.
Tuckerton ............................... Philadelphia-Chester, PA and Wilmington, DE, PA.
New York
Cannons Corners .................. Champlain-Rouses Point. Churubusco ........................... Trout River. Jamieson’s Line ..................... Trout River.
New Hampshire
Pittsburg ................................. Beecher Falls, VT. Monticello ............................... Houlton, ME. Orient ..................................... Houlton, ME. Ste. Aurelie ............................ Jackman, ME. St. Pamphile .......................... Jackman, ME.
New Mexico
Antelope Wells (Mail: Hachita, NM).
Columbus, NM.
North Dakota
Grand Forks ........................... Pembina. Minot ...................................... Pembina.
Ohio
Akron ..................................... Cleveland. Fairport Harbor ...................... Ashtabula/Conneaut. Lorain ..................................... Sandusky. Marblehead-Lakeside ............ Sandusky. Put-in-Bay .............................. Sandusky.
Customs station Supervisory port of entry
Oklahoma
Muskogee .............................. Tulsa.
Texas
Amistad Dam ......................... Del Rio. Falcon Dam ........................... Roma. Fort Hancock ......................... Fabens. Los Ebanos ............................ Rio Grande City. Marathon ................................ El Paso.
Vermont
Beebe Plaine ......................... Derby Line. Canaan .................................. Beecher Falls. East Richford ......................... Richford. Newport ................................. Derby Line. North Troy .............................. Derby Line. West Berkshire ...................... Richford.
(d) Temporary Customs stations. Cus- toms stations may be designated for a temporary time only, to provide Cus- toms facilities where needed because of certain large-scale operations. Because these designations change from time to time they are not listed. However, cur- rent information as to the existence of such stations may be obtained from the local port director.
[T.D. 77–241, 42 FR 54937, Oct. 12, 1977]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 101.4, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
§ 101.5 CBP preclearance offices in for- eign countries.
Listed below are the preclearance of- fices in foreign countries where CBP of- ficers are located. A Director, Preclearance, located in the Office of Field Operations at CBP Headquarters, is the responsible CBP officer exer- cising supervisory control over all preclearance offices.
Country CBP office
Aruba .................... Orangestad. The Bahamas ....... Freeport.
Nassau. Bermuda ............... Kindley Field. Canada ................. Calgary, Alberta.
Edmonton, Alberta. Halifax, Nova Scotia. Montreal, Quebec. Ottawa, Ontario. Toronto, Ontario. Vancouver, British Columbia. Winnipeg, Manitoba.
Ireland ................... Dublin. Shannon.
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19 CFR Ch. I (4–1–12 Edition)§ 101.6
[CBP Dec. 11–08, 76 FR 22805, Apr. 25, 2011]
§ 101.6 Hours of business. Except as specified in paragraphs (a)
through (g) of this section, each CBP office shall be open for the transactions of general CBP business between the hours of 8:30 a.m. and 5 p.m. on all days of the year:
(a) Saturdays, Sundays and national holidays. In addition to Saturdays, Sundays, and any other calendar day designated as a holiday by Federal statute or Executive Order, CBP offices shall be closed on the following na- tional holidays:
(1) The first day of January. (2) The third Monday of January. (3) The third Monday of February. (4) The last Monday of May. (5) The fourth day of July. (6) The first Monday of September. (7) The second Monday of October. (8) The eleventh day of November. (9) The fourth Thursday of November. (10) The twenty-fifth day of Decem-
ber. If a holiday falls on Saturday, the day immediately preceding such Saturday will be observed. If a holiday falls on Sunday, the day immediately following such Sunday will be observed. (5 U.S.C. 6103(b)(1)); (E.O. No. 11582, Jan. 1, 1971; 34 FR 2957; 3 CFR Ch. 11)
(b) Local conditions requiring different hgurs. If, because of local conditions, different but equivalent hours are re- quired to maintain adequate service, such hours shall be observed provided the Commissioner of Customs and Bor- der Protection approves them and pro- vided further that a notice of business hours is prominently displayed at the principal entrance and in each public room of the CBP office.
(c) Fixing of hours. At each port or station where there is no full-time CBP employee, the port director shall fix the hours during which the CBP office will be open for the transaction of gen- eral CBP business. Notice of such hours shall be prominently displayed at the principal entrance of the office.
(d) State and local holidays. Each CBP office shall be open for the transaction of business on all State and local holi- days occurring on days other than Sat- urdays, Sundays, and national holidays listed in paragraph (a) of this section.
The appropriate principal field officer may excuse any employee(s) without charge to leave when a state or local holiday interferes with the perform- ance of his work in a CBP office.
(e) Services performed outside a CBP of- fice. CBP services required to be per- formed outside a CBP office shall be furnished between the hours of 8 a.m. and 5 p.m. (or between the cor- responding hours at ports where dif- ferent but equivalent hours are re- quired for the maintenance of adequate service) on all days when the CBP of- fice is open for the transaction of gen- eral CBP business.
(f) CBP services not within prescribed hours. Where there is a regularly recur- ring need for CBP services outside the hours prescribed in paragraphs (a) through (e) of this section and the vol- ume and duration of the required serv- ices are uniformly such as to require, of themselves or in immediately con- secutive combination with other essen- tial CBP activities of the port, the full time of one or more CBP employees, the necessary number of regular tours of duty to furnish such services on all days of the year except Sundays and national holidays may be established with the approval of the Commissioner of CBP.
(g) CBP services furnished private inter- ests. Other than as specified in this sec- tion. CBP services shall be furnished private interests only in accordance with the provisions of § 24.16 of this chapter.
[T.D. 77–241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 82–145, 47 FR 35478, Aug. 16, 1982; T.D. 95–77, 60 FR 50019, Sept. 27, 1995; CBP Dec. 08-25, 73 FR 40726, July 16, 2008]
§ 101.7 Customs seal. (a) Design. According to the design
furnished by the Department of the Treasury, the Customs seal of the United States shall consist of the seal of the Department of the Treasury sur- rounded by an outer circle in which ap- pear the words ‘‘Treasury’’ at the top and ‘‘U.S. Customs Service’’ at the bot- tom.
(b) Use of the Customs seal. The Cus- toms seal currently in official use, in- cluding the dies, rolls, plates, and like devices now in the possession of the Bureau of Engraving and Printing,
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shall continue to be equally effective as the official seal of the United States Customs Service and shall continue to be so used by each Customs officer and employee having possession of the seal until that particular device requires re- placing and is replaced. Use of the United States Customs seal shall be re- stricted in the following manner:
(1) The Customs seal of the United States shall be impressed upon all offi- cial documents requiring the impress of a seal. It shall be impressed upon all marine documents and landing certifi- cates, certificates of weight, gauge, or measure, and similar classes of docu- ments for outside interests.
(2) The impress of the seal is not nec- essary on documents passing within the Customs Service nor shall the seal be used in the manner of a notary seal to indicate authority to administer oaths.
§ 101.8 Identification cards. Each Customs employee shall be
issued an appropriate identification card with that employee’s photograph and signature, signed by the appro- priate issuing officer.
§ 101.9 Test programs or procedures; alternate requirements.
(a) General testing. For purposes of conducting a test program or procedure designed to evaluate the effectiveness of new technology or operational pro- cedures regarding the processing of passengers, vessels, or merchandise, the Commissioner of Customs may im- pose requirements different from those specified in the Customs Regulations, but only to the extent that such dif- ferent requirements do not affect the collection of the revenue, public health, safety, or law enforcement. The imposition of any such different re- quirements shall be subject to the fol- lowing conditions:
(1) Defined purpose. The test is lim- ited in scope, time, and application to such relief as may be necessary to fa- cilitate the conduct of a specified pro- gram or procedure;
(2) Prior publication requirement. Whenever a particular test allows for deviation from any regulatory require- ments, notice shall be published in the FEDERAL REGISTER not less than thirty
days prior to implementing such test, followed by publication in the Customs Bulletin. The notice shall invite public comments concerning the methodology of the test program or procedure, and inform interested members of the pub- lic of the eligibility criteria for vol- untary participation in the test and the basis for selecting participants.
(b) NCAP testing. For purposes of con- ducting an approved test program or procedure designed to evaluate planned components of the National Customs Automation Program (NCAP), as de- scribed in section 411(a)(2) of the Tariff Act of 1930 (19 U.S.C. 411), the Commis- sioner of Customs may impose require- ments different from those specified in the Customs Regulations, but only to the extent that such different require- ments do not affect the collection of the revenue, public health, safety, or law enforcement. In addition to the re- quirement of paragraph (a)(1) of this section, the imposition of any such dif- ferent requirements shall be subject to the following conditions:
(1) Prior publication requirement. For tests affecting the NCAP, notice shall be published in the FEDERAL REGISTER not less than thirty days prior to im- plementing such test, followed by pub- lication in the Customs Bulletin. The notice shall invite public comments concerning any aspect of the test pro- gram or procedure, and inform inter- ested members of the public of the eli- gibility criteria for voluntary partici- pation in the test and the basis for se- lecting participants; and,
(2) Post publication requirement. With- in a reasonable time period following the completion of the test, a complete description of the results shall be pub- lished in both the FEDERAL REGISTER and the Customs Bulletin.
[T.D. 95–21, 60 FR 14214, Mar. 16, 1995]
PART 102—RULES OF ORIGIN
Sec. 102.0 Scope.
Subpart A—General
102.1 Definitions.
Subpart B—Rules of Origin
102.11 General rules.
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102.12 Fungible goods. 102.13 De Minimis. 102.15 Disregarded materials. 102.17 Non-qualifying operations. 102.18 Rules of interpretation. 102.19 NAFTA preference override. 102.20 Specific rules by tariff classification. 102.21 Textile and apparel products. 102.22 Rules of origin for textile and apparel
products of Israel. 102.23 Origin and Manufacturer Identifica-
tion. 102.24 Entry of textile or apparel products. 102.25 Textile or apparel products under the
North American Free Trade Agreement. APPENDIX TO PART 102—TEXTILE AND AP-
PAREL MANUFACTURER IDENTIFICATION
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 3314, 3592.
SOURCE: T.D. 94–4, 59 FR 113, Jan. 3, 1994, unless otherwise noted.
§ 102.0 Scope. With the exception of §§ 102.21
through 102.25, this part sets forth rules for determining the country of origin of imported goods for the pur- poses specified in paragraph 1 of Annex 311 of the North American Free Trade Agreement (‘‘NAFTA’’). These specific purposes are: country of origin mark- ing; determining the rate of duty and staging category applicable to origi- nating textile and apparel products as set out in Section 2 (Tariff Elimi- nation) of Annex 300–B (Textile and Ap- parel Goods); and determining the rate of duty and staging category applicable to an originating good as set out in Annex 302.2 (Tariff Elimination). The rules set forth in §§ 102.1 through 102.21 of this part will also apply for purposes of determining whether an imported good is a new or different article of commerce under § 10.769 of the United States-Morocco Free Trade Agreement regulations and § 10.809 of the United States-Bahrain Free Trade Agreement regulations. The rules for determining the country of origin of textile and ap- parel products set forth in § 102.21 apply for the foregoing purposes and for the other purposes stated in that section. Section 102.22 sets forth rules for deter- mining whether textile and apparel products are considered products of Israel for purposes of the customs laws and the administration of quantitative limitations. Sections 102.23 through 102.25 set forth certain procedural re-
quirements relating to the importation of textile and apparel products.
[CBP Dec. 05–32; 70 FR 58013, Oct. 5, 2005, as amended by CBP Dec. 07–81, 72 FR 58522, Oct. 16, 2007; CBP Dec. 08–29, 73 FR 45354, Aug. 5, 2008]
Subpart A—General
§ 102.1 Definitions. (a) Advanced in value. ‘‘Advanced in
value’’ means an increase in the value of a good as a result of production with respect to that good, other than by means of those ‘‘minor processing’’ op- erations described in paragraphs (m)(5), (m)(6), and (m)(7) of this section.
(b) Commingled. ‘‘Commingled’’ means physically combined or mixed.
(c) Direct physical identification. ‘‘Di- rect physical identification’’ means identification by visual or other organoleptic examination.
(d) Domestic material. ‘‘Domestic ma- terial’’ means a material whose coun- try of origin as determined under these rules is the same country as the coun- try in which the good is produced.
(e) Foreign material. ‘‘Foreign mate- rial’’ means a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.
(f) Fungible goods or fungible materials. ‘‘Fungible goods or fungible materials’’ means goods or materials that are interchangeable for commercial pur- poses and whose properties are essen- tially identical.
(g) A good wholly obtained or produced. A good ‘‘wholly obtained or produced’’ in a country means:
(1) A mineral good extracted in that country;
(2) A vegetable or plant good har- vested in that country;
(3) A live animal born and raised in that country;
(4) A good obtained from hunting, trapping or fishing in that country;
(5) A good (fish, shellfish and other marine life) taken from the sea by ves- sels registered or recorded with that country and flying its flag;
(6) A good produced on board factory ships from the goods referred to in paragraph (g)(5) of this section, pro- vided such factory ships are registered
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or recorded with that country and fly its flag;
(7) A good taken by that country or a person of that country from the seabed or beneath the seabed outside terri- torial waters, provided that country has rights to exploit such seabed;
(8) A good taken from outer space, provided they are obtained by that country or a person of that country;
(9) Waste and scrap derived from: (i) Production in a country, or (ii) Used goods collected in that
country provided such goods are fit only for the recovery of raw materials; and
(10) A good produced in that country exclusively from goods referred to in paragraphs (g)(1) through (10) of this section or from their derivatives, at any stage of production.
(h) Harmonized System. ‘‘Harmonized System’’ means the Harmonized Com- modity Description and Coding Sys- tem, including its general rules of In- terpretation, Section Notes and Chap- ter Notes, as adopted and implemented by the United States.
(i) Improved in condition. ‘‘Improved in condition’’ means the enhancement of the physical condition of a good as a result of production with respect to that good, other than by means of those ‘‘minor processing’’ operations described in paragraphs (m)(5), (m)(6), and (m)(7) of this section.
(j) Incorporated. ‘‘Incorporated’’ means physically incorporated into a good as a result of production with re- spect to that good.
(k) Indirect materials. ‘‘Indirect mate- rials’’ means a good used in the produc- tion, testing or inspection of another good but not physically incorporated into that other good, or a good used in the maintenance of buildings or the op- eration of equipment associated with the production of that other good, in- cluding:
(1) Fuel and energy; (2) Tools, dies and molds; (3) Spare parts and materials used in
the maintenance of equipment and buildings;
(4) Lubricants, greases, compounding materials and other materials used in production or used to operate equip- ment and buildings;
(5) Gloves, glasses, footwear, cloth- ing, safety equipment and supplies;
(6) Equipment, devices, and supplies used for testing or inspecting the goods;
(7) Catalysts and solvents; and (8) Any other goods that are not in-
corporated into the good but whose use in the production of the good can rea- sonably be demonstrated to be a part of that production.
(l) Material. ‘‘Material’’ means a good that is incorporated into another good as a result of production with respect to that other good, and includes parts, ingredients, subassemblies, and compo- nents.
(m) Minor processing. ‘‘Minor proc- essing’’ means the following:
(1) Mere dilution with water or an- other substance that does not materi- ally alter the characteristics of the good;
(2) Cleaning, including removal of rust, grease, paint, or other coatings;
(3) Application of preservative or dec- orative coatings, including lubricants, protective encapsulation, preservative or decorative paint, or metallic coat- ings;
(4) Trimming, filing or cutting off small amounts of excess materials;
(5) Unloading, reloading or any other operation necessary to maintain the good in good condition;
(6) Putting up in measured doses, packing, repacking, packaging, repack- aging;
(7) Testing, marking, sorting, or grading;
(8) Ornamental or finishing oper- ations incidental to textile good pro- duction designed to enhance the mar- keting appeal or the ease of care of the product, such as dyeing and printing, embroidery and appliques, pleating, hemstitching, stone or acid washing, permanent pressing, or the attachment of accessories notions, findings and trimmings; or
(9) Repairs and alterations, washing, laundering, or sterilizing.
(n) Production. ‘‘Production’’ means growing, mining, harvesting, fishing, trapping, hunting, manufacturing, processing or assembling a good.
(o) Simple assembly. ‘‘Simple assem- bly’’ means the fitting together of five or fewer parts all of which are foreign
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(excluding fasteners such as screws, bolts, etc.) by bolting, gluing, sol- dering, sewing or by other means with- out more than minor processing.
(p) Value. ‘‘Value’’ means, with re- spect to § 102.13:
(1) In the case of a good, its customs value or transaction value within the meaning of the appendix to part 181 of this chapter; or
(2) In the case of a material, its cus- toms value or value within the mean- ing of the appendix to part 181 of this chapter.
[T.D. 96–48, 61 FR 28955, June 6, 1996]
Subpart B—Rules of Origin
§ 102.11 General rules. The following rules shall apply for
purposes of determining the country of origin of imported goods other than textile and apparel products covered by § 102.21.
(a) The country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incor- porated in that good undergoes an ap- plicable change in tariff classification set out in § 102.20 and satisfies any other applicable requirements of that section, and all other applicable re- quirements of these rules are satisfied.
(b) Except for a good that is specifi- cally described in the Harmonized Sys- tem as a set, or is classified as a set pursuant to General Rule of Interpreta- tion 3, where the country of origin can- not be determined under paragraph (a) of this section:
(1) The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good, or
(2) If the material that imparts the essential character to the good is fun- gible, has been commingled, and direct physical identification of the origin of the commingled material is not prac- tical, the country or countries of origin may be determined on the basis of an inventory management method pro- vided under the appendix to part 181 of this chapter.
(c) Where the country of origin can- not be determined under paragraph (a) or (b) of this section and the good is specifically described in the Har- monized System as a set or mixture, or classified as a set, mixture or com- posite good pursuant to General Rule of Interpretation 3, the country of ori- gin of the good is the country or coun- tries of origin of all materials that merit equal consideration for deter- mining the essential character of the good.
(d) Where the country of origin of a good cannot be determined under para- graph (a), (b) or (c) of this section, the country of origin of the good shall be determined as follows:
(1) If the good was produced only as a result of minor processing, the country of origin of the good is the country or countries of origin of each material that merits equal consideration for de- termining the essential character of the good;
(2) If the good was produced by sim- ple assembly and the assembled parts that merit equal consideration for de- termining the essential character of the good are from the same country, the country of origin of the good is the country of origin of those parts; or
(3) If the country of origin of the good cannot be determined under para- graph (d)(1) or (d)(2) of this section, the country of origin of the good is the last country in which the good underwent production.
[T.D. 96–48, 61 FR 28956, June 6, 1996]
§ 102.12 Fungible goods. When fungible goods of different
countries of origin are commingled the country of origin of the goods:
(a) Is the countries of origin of those commingled goods; or
(b) If the good is fungible, has been commingled, and direct physical iden- tification of the origin of the commin- gled good is not practical, the country or countries of origin may be deter- mined on the basis of an inventory management method provided under the appendix to part 181 of the Customs Regulations.
§ 102.13 De Minimis. (a) Except as otherwise provided in
paragraphs (b) and (c) of this section,
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foreign materials that do not undergo the applicable change in tariff classi- fication set out in § 102.20 or satisfy the other applicable requirements of that section when incorporated into a good shall be disregarded in determining the country of origin of the good if the value of those materials is no more than 7 percent of the value of the good or 10 percent of the value of a good of Chapter 22, Harmonized System.
(b) Paragraph (a) of this section does not apply to a foreign material incor- porated in a good provided for in Chap- ter 1, 2, 3, 4, 7, 8, 11, 12, 15, 17, or 20 of the Harmonized System.
(c) Foreign components or materials that do not undergo the applicable change in tariff classification set out in § 102.21 or satisfy the other applica- ble requirements of that section when incorporated into a textile or apparel product covered by that section shall be disregarded in determining the country of origin of the good if the total weight of those components or materials is not more than 7 percent of the total weight of the good.
[T.D. 96–48, 61 FR 28956, June 6, 1996]
§ 102.15 Disregarded materials. (a) The following materials shall be
disregarded when determining whether the good undergoes the applicable change in tariff classification set out in § 102.20 or § 102.21, or satisfies the other applicable requirements of those sections:
(1) Packaging materials and con- tainers in which a good is packaged for retail sale that are classified with the good;
(2) Accessories, spare parts or tools delivered with the good that are classi- fied with the good and shipped with the good;
(3) Packing materials and containers in which a good is packed for shipment; and
(4) Indirect materials. (b) [Reserved]
[T.D. 96–48, 61 FR 28956, June 6, 1996]
§ 102.17 Non-qualifying operations. A foreign material shall not be con-
sidered to have undergone an applica- ble change in tariff classification speci- fied in § 102.20 or § 102.21 or to have met
any other applicable requirements of those sections merely by reason of one or more of the following:
(a) A change in end-use; (b) Dismantling or disassembly; (c) Simple packing, repacking or re-
tail packaging without more than minor processing;
(d) Mere dilution with water or an- other substance that does not materi- ally alter the characteristics of the material; or
(e) Collecting parts that, as col- lected, are classifiable in the same tar- iff provision as an assembled good pur- suant to General Rule of Interpretation 2(a), without any additional operation other than minor processing.
[T.D. 96–48, 61 FR 28956, June 6, 1996]
§ 102.18 Rules of interpretation.
(a) When General Rule of Interpreta- tion (GRI) 2(a) is referred to in § 102.20 as an exception to an allowed change in tariff classification, this means that such change will not be acceptable for purposes of that section if the change results from the assembly of parts into an incomplete or unfinished good which is classifiable in the same man- ner as a complete or finished good pur- suant to GRI 2(a).
(b) (1) For purposes of identifying the material that imparts the essential character to a good under § 102.11, the only materials that shall be taken into consideration are those domestic or foreign materials that are classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good. For purposes of this paragraph (b)(1):
(i) The materials to be considered must be classified in a tariff provision from which a change in tariff classi- fication is not allowed under the spe- cific rule or other requirements appli- cable to the good under consideration. For example, in the case of a good clas- sified in HTSUS subheading 8607.11 (the rule for which specifies a change to subheading 8607.11 from any other sub- heading, except from subheading 8607.12, and except from subheading 8607.19 when that change is pursuant to GRI 2(a)), the only materials that may
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be considered for purposes of identi- fying the materials that impart the es- sential character to the good are those that are classified in subheadings 8607.11, 8607.12 and, if the tariff shift is pursuant to GRI 2(a), 8607.19;
(ii) Materials that may be considered include materials produced by the pro- ducer of the good and incorporated in the good. For example, if a producer of a good purchases raw materials and converts those raw materials into a component that is incorporated in the good, that component is a material that may be considered for purposes of identifying the materials that impart the essential character to the good, provided that the component is classi- fied in a tariff provision from which a change in tariff classification is not al- lowed under the specific rule or other requirements applicable to the good; and
(iii) If there is only one material that is classified in a tariff provision from which a change in tariff classification is not allowed under the § 102.20 specific rule or other requirements applicable to the good, then that material will represent the single material that im- parts the essential character to the good under § 102.11.
(2) For purposes of determining which one of two or more materials de- scribed in paragraph (b)(1) of this sec- tion imparts the essential character to a good under § 102.11, various factors may be examined depending upon the type of good involved. These factors in- clude, but are not limited to, the fol- lowing:
(i) The nature of each material, such as its bulk, quantity, weight or value; and
(ii) The role of each material in rela- tion to the use of the good.
[T.D. 96–48, 61 FR 28957, June 6, 1996]
§ 102.19 NAFTA preference override.
(a) Except in the case of goods cov- ered by paragraph (b) of this section, if a good which is originating within the meaning of § 181.1(q) of this chapter is not determined under § 102.11(a) or (b) or § 102.21 to be a good of a single NAFTA country, the country of origin of such good is the last NAFTA coun- try in which that good underwent pro- duction other than minor processing, provided that a Certificate of Origin (see § 181.11 of this chapter) has been completed and signed for the good.
(b) If, under any other provision of this part, the country of origin of a good which is originating within the meaning of § 181.1(q) of this chapter is determined to be the United States and that good has been exported from, and returned to, the United States after having been advanced in value or im- proved in condition in another NAFTA country, the country of origin of such good for Customs duty purposes is the last NAFTA country in which that good was advanced in value or im- proved in condition before its return to the United States.
[T.D. 96–48, 61 FR 28957, June 6, 1996]
§ 102.20 Specific rules by tariff classi- fication.
The following rules are the rules specified in § 102.11(a)(3) and other sec- tions of this part. Where a rule under this section permits a change to a sub- heading from another subheading of the same heading, the rule will be sat- isfied only if the change is from a sub- heading of the same level specified in the rule.
HTSUS Tariff shift and/or other requirements
(a) Section I: Chapters 1 through 5
0101–0106 ......................................... A change to heading 0101 through 0106 from any other chapter. 0201–0209 ......................................... A change to heading 0201 through 0209 from any other chapter. 0210.11–0210.20 ............................... A change to subheading 0210.11 through 0210.20 from any other chapter. 0210.91–0210.99 ............................... A change to subheading 0210.91 through 0210.99 from any other chapter; or
A change to edible meals and flours of subheading 0210.91 through 0210.99 from any product other than edible meals and flours of Chapter 2.
0301–0303 ......................................... A change to heading 0301 through 0303 from any other chapter. 0304 ................................................... A change to heading 0304 from any other chapter; or
A change to fillets of heading 0304 from any other heading. 0305.10 .............................................. A change to subheading 0305.10 from any other subheading.
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HTSUS Tariff shift and/or other requirements
0305.20 .............................................. A change to subheading 0305.20 from any other chapter. 0305.30 .............................................. A change to subheading 0305.30 from any other subheading, except from fillets of head-
ing 0304. 0305.41–0305.69 ............................... A change to subheading 0305.41 through 0305.69 from any other chapter. 0306 ................................................... A change to heading 0306 from any other chapter. 0307 ................................................... A change to heading 0307 from any other chapter; or
A change to edible meals and flours from within Chapter 3. 0401 ................................................... A change to heading 0401 from any other chapter. 0402.10–0402.29 ............................... A change to subheading 0402.10 through 0402.29 from any other chapter. 0402.91–0402.99 ............................... A change to subheading 0402.91 through 0402.99 from any other chapter. 0403.10 .............................................. A change to subheading 0403.10 from any other subheading. 0403.90 .............................................. A change to subheading 0403.90 from any other chapter; or
A change to sour cream or kephir from any other product of Chapter 4. 0404 ................................................... A change to heading 0404 from any other heading. 0405.10 .............................................. A change to subheading 0405.10 from any other heading. 0405.20 .............................................. A change to subheading 0405.20 from any other chapter, except from subheading
1901.90; or A change to subheading 0405.20 from any other subheading, provided that the good
contains no more than 50 percent by weight of milk solids. 0405.90 .............................................. A change to subheading 0405.90 from any other heading. 0406 ................................................... A change to heading 0406 from any other heading. 0407–0410 ......................................... A change to heading 0407 through 0410 from any other chapter. 0501–0511 ......................................... A change to heading 0501 through 0511 from any other chapter.
(b) Section II: Chapters 6 through 14
Note: Notwithstanding the specific rules of this section, an agricultural or horticultural good grown in the territory of a country shall be treated as a good of that country even if grown from seed or bulbs, root stock, cuttings, slips or other live parts of plants, or from whole plants, imported from a foreign country. 0601–0602 ......................................... A change to heading 0601 through 0602 from any other heading, including another
heading within that group. 0603–0604 ......................................... A change to heading 0603 through 0604 from any other heading, including another
heading within that group, except from heading 0602. 0701–0709 ......................................... A change to heading 0701 through 0709 from any other chapter. 0710 ................................................... A change to heading 0710 from any other chapter. 0711 ................................................... A change to heading 0711 from any other chapter. 0712 ................................................... A change to heading 0712 from any other chapter; or
A change to powdered vegetables of heading 0712 from any other product of Chapter 7, if put up for retail sale.
0713–0714 ......................................... A change to heading 0713 through 0714 from any other chapter. 0801–0810 ......................................... A change to heading 0801 through 0810 from any other chapter. 0811 ................................................... A change to heading 0811 from any other chapter. 0812 ................................................... A change to heading 0812 from any other chapter. 0813 ................................................... A change to heading 0813 from any other chapter. 0814 ................................................... A change to heading 0814 from any other chapter. 0901.11–0901.12 ............................... A change to subheading 0901.11 through 0901.12 from any other chapter. 0901.21–0901.22 ............................... A change to subheading 0901.21 through 0901.22 from any subheading outside that
group. 0901.90 .............................................. A change to subheading 0901.90 from any other chapter. 0902–0903 ......................................... A change to heading 0902 through 0903 from any other chapter. 0904–0910 ......................................... A change to heading 0904 through 0910 from any other chapter; or
A change to crushed, ground, or powdered products of heading 0904 through 0910 from within Chapter 9, if put up for retail sale; or
A change to subheading 0910.91 from any other subheading, provided that a single spice ingredient of foreign origin constitutes no more than 60 percent by weight of the good.
1001–1008 ......................................... A change to heading 1001 through 1008 from any other chapter. 1101–1106 ......................................... A change to heading 1101 through 1106 from any other chapter. 1107 ................................................... A change to heading 1107 from any other chapter. 1108–1109 ......................................... A change to heading 1108 through 1109 from any other heading, including another
heading within that group. 1201–1207 ......................................... A change to heading 1201 through 1207 from any other chapter. 1208 ................................................... A change to heading 1208 from any other heading. 1209–1214 ......................................... A change to heading 1209 through 1214 from any other chapter. 1301–1302 ......................................... A change to heading 1301 through 1302 from any other chapter, except from con-
centrates of poppy straw of subheading 2939.11. 1401–1404 ......................................... A change to heading 1401 through 1404 from any other chapter.
(c) Section III: Chapter 15
1501–1516 ......................................... A change to heading 1501 through 1516 from any other chapter. 1517.10 .............................................. A change to subheading 1517.10 from any other heading. 1517.90 .............................................. A change to subheading 1517.90 from any other chapter, except from heading 3823; or
A change to subheading 1517.90 from any other heading, provided that no single oil in- gredient of foreign origin constitutes more than 60 percent by weight of the good.
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1518 ................................................... A change to heading 1518 from any other heading. 1520 ................................................... A change to heading 1520 from any other heading, except from subheading 2905.45 and
heading 3823. 1521–1522 ......................................... A change to heading 1521 through 1522 from any other chapter, except from heading
3823.
(d) Section IV: Chapters 16 through 24
1601–1605 ......................................... A change to heading 1601 through 1605 from any other chapter. 1701–1702 ......................................... A change to heading 1701 through 1702 from any other chapter. 1703 ................................................... A change to heading 1703 from any other chapter. 1704 ................................................... A change to heading 1704 from any other heading. 1801–1803 ......................................... A change to heading 1801 through 1803 from any other chapter. 1804 ................................................... A change to heading 1804 from any other heading, except from heading 1803. 1805 ................................................... A change to heading 1805 from any other heading, except from subheading 1803.20. 1806.10 .............................................. A change to subheading 1806.10 from any other heading, except from heading 1805 or
from Chapter 17; or A change to subheading 1806.10 from Chapter 17, provided that the good contains less
than 65 percent by dry weight of sugar. 1806.20 .............................................. A change to subheading 1806.20 from any other heading, except from Chapter 17; or
A change to subheading 1806.20 from Chapter 17, provided that the good contains less than 65 percent by dry weight of sugar.
1806.31 .............................................. A change to subheading 1806.31 from any other subheading. 1806.32 .............................................. A change to subheading 1806.32 from any other subheading. 1806.90 .............................................. A change to subheading 1806.90 from any other subheading. 1901.10 .............................................. A change to subheading 1901.10 from any other subheading. 1901.20 .............................................. A change to subheading 1901.20 from any other subheading. 1901.90 .............................................. A change to subheading 1901.90 from any other heading. 1902.11–1902.19 ............................... A change to subheading 1902.11 through 1902.19 from any other heading. 1902.20 .............................................. A change to subheading 1902.20 from any other subheading. 1902.30–1902.40 ............................... A change to subheading 1902.30 through 1902.40 from any other heading. 1903 ................................................... A change to heading 1903 from any other heading. 1904.10 .............................................. A change to subheading 1904.10 from any other heading. 1904.20 .............................................. A change to subheading 1904.20 from any other subheading. 1904.30 .............................................. A change to subheading 1904.30 from any other heading. 1904.90 .............................................. A change to subheading 1904.90 from any other heading, except from heading 1006 or
wild rice of subheading 1008.90. 1905 ................................................... A change to heading 1905 from any other heading.
Chapter 20 Note: Notwithstanding the specific rules of this chapter, fruit, nut and vegetable preparations of Chapter 20 that have been prepared or preserved merely by freezing, by packing (including canning) in water, brine or natural juices, or by roasting, either dry or in oil (including processing incidental to freezing, packing, or roasting), shall be treated as a good of the country in which the fresh good was produced. 2001–2007 ......................................... A change to heading 2001 through 2007 from any other chapter. 2008.11 .............................................. A change to subheading 2008.11 from any other chapter, provided that the change is not
the result of mere blanching of peanuts. 2008.19–2008.99 ............................... A change to subheading 2008.19 through 2008.99 from any other chapter, provided that
the change is not the result of mere blanching of nuts. 2009.11–2009.39 ............................... A change to subheading 2009.11 through 2009.39 from any other chapter. 2009.41–2009.80 ............................... A change to subheading 2009.41 through 2009.80 from any other chapter. 2009.90 .............................................. A change to subheading 2009.90 from any other chapter; or
A change to subheading 2009.90 from any other subheading, provided that a single juice ingredient of foreign origin, or juice ingredients from a single foreign country, constitute in single strength form no more than 60 percent by volume of the good.
2101 ................................................... A change to heading 2101 from any other heading. 2102 ................................................... A change to heading 2102 from any other heading. 2103.10 .............................................. A change to subheading 2103.10 from any other heading. 2103.20 .............................................. A change to subheading 2103.20 from any other heading. 2103.30 .............................................. A change to subheading 2103.30 from any other subheading; or
A change to prepared mustard of subheading 2103.30 from mustard flour or meal. 2103.90 .............................................. A change to subheading 2103.90 from any other subheading. 2104.10 .............................................. A change to subheading 2104.10 from any other subheading. 2104.20 .............................................. A change to subheading 2104.20 from any other subheading. 2105 ................................................... A change to heading 2105 from any other heading. 2106.10 .............................................. A change to subheading 2106.10 from any other subheading. 2106.90 .............................................. A change to a good of subheading 2106.90, other than to compound alcoholic prepara-
tions, from any other subheading, except from Chapter 4, Chapter 17, heading 2009, subheading 1901.90 or subheading 2202.90; or
A change to subheading 2106.90 from Chapter 4 or subheading 1901.90, provided that the good contains no more than 50 percent by weight of milk solids; or
A change to subheading 2106.90 from Chapter 17, provided that the good contains less than 65 percent by dry weight of sugar; or
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HTSUS Tariff shift and/or other requirements
A change to subheading 2106.90 from heading 2009 or subheading 2202.90, provided that a single juice ingredient of foreign origin, or juice ingredients from a single foreign country, constitute in single strength form no more than 60 percent by volume of the good; or
A change to compound alcoholic preparations of subheading 2106.90 from any other subheading, except from subheading 2208.20 through 2208.50.
2201 ................................................... A change to heading 2201 from any other chapter. 2202.10 .............................................. A change to sweetened and/or flavored waters of subheading 2202.10 from any other
chapter; or A change to other beverages of subheading 2202.10 from any other heading.
2202.90 .............................................. A change to subheading 2202.90 from any other subheading, except from Chapter 4 or heading 1901, 2009, or 2106; or
A change to subheading 2202.90 from Chapter 4 or heading 1901, provided that the good contains no more than 50 percent by weight of milk solids; or
A change to subheading 2202.90 from heading 2009 or subheading 2106.90, provided that a single juice ingredient of foreign origin, or juice ingredients from a single foreign country, constitute in single strength form no more than 60 percent by volume of the good.
2203 ................................................... A change to heading 2203 from any other heading. 2204.10–2204.29 ............................... A change to subheading 2204.10 through 2204.29 from any other subheading outside
that group. 2204.30 .............................................. A change to subheading 2204.30 from any other heading. 2205 ................................................... A change to heading 2205 from any other heading, except from heading 2204; or
A change to vermouth of heading 2205 from heading 2204. 2206 ................................................... A change to heading 2206 from any other heading. 2207 ................................................... A change to heading 2207 from any other heading, except from compound alcoholic
preparations of subheading 2106.90 or heading 2208. 2208.20–2208.70 ............................... A change to subheading 2208.20 through 2208.70 from any other subheading outside
that group, except from subheading 2106.90; or A change to liqueurs or cordials of subheading 2208.70 from any other product.
2208.90 .............................................. A change to subheading 2208.90 from any other subheading, except from subheading 2106.90; or
A change to kirschwasser or ratafia of subheading 2208.90 from any other product. 2209 ................................................... A change to heading 2209 from any other heading. 2301–2308 ......................................... A change to heading 2301 through 2308 from any other chapter. 2309.10 .............................................. A change to subheading 2309.10 from any other heading. 2309.90 .............................................. A change to subheading 2309.90 from any other heading, except from Chapter 4 or
heading 1901; or A change to subheading 2309.90 from Chapter 4 or heading 1901, provided that the
good contains no more than 50 percent by weight of milk solids. 2401 ................................................... A change to heading 2401 from any other chapter. 2402–2403 ......................................... A change to heading 2402 through 2403 from any other heading, including another
heading within that group.
(e) Section V: Chapters 25 through 27
2501–2516 ......................................... A change to heading 2501 through 2516 from any other heading, including another heading within that group.
2517.10–2517.20 ............................... A change to subheading 2517.10 through 2517.20 from any other heading. 2517.30 .............................................. A change to subheading 2517.30 from any other subheading. 2517.41–2517.49 ............................... A change to subheading 2517.41 through 2517.49 from any other heading. 2518–2530 ......................................... A change to heading 2518 through 2530 from any other heading, including another
heading within that group. 2601–2621 ......................................... A change to heading 2601 through 2621 from any other heading, including another
heading within that group. Chapter 27 Note: For purposes of this chapter, a ‘‘chemical reaction’’ is defined as a process in which chemical bonds in
molecules are broken and new chemical bonds are formed between the fragmented molecules and/or added elements so that one or more of the original bond/s no longer link the same chemical element/s or functional group/s. 2701–2706 ......................................... A change to heading 2701 through 2706 from any other heading, including any heading
within that group. 2707.10–2707.99 ............................... A change to subheading 2707.10 through 2707.99 from any other heading; or
A change to subheading 2707.10 through 2707.99 from any other subheading, including any subheading within that group, provided that the good resulting from such change is the product of a chemical reaction.
2707.10–2707.99 ............................... A change to subheading 2707.10 through 2707.99 from any other heading; or A change to phenols of subheading 2707.99 from any other subheading or from any
other good of subheading 2707.99, provided that the good resulting from such change is the product of a chemical reaction; or
A change to any other good of subheading 2707.99 from phenols of subheading 2707.99 or from any other subheading, provided that the good resulting from such change is the product of a chemical reaction; or
A change to subheading 2707.10 through 2707.99 from any other subheading, including any subheading within that group, provided that the good resulting from such change is the product of a chemical reaction.
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2708–2709 ......................................... A change to heading 2708 through 2709 from any other heading, including another heading within that group.
2710 ................................................... A change to heading 2710 from any other heading; or A change to any good of heading 2710 from any other good of heading 2710, provided
that the good resulting from such change is the product of a chemical reaction. 2711.11 .............................................. A change to subheading 2711.11 from any other subheading, except from subheading
2711.21. 2711.12–2711.19 ............................... A change to subheading 2711.12 through 2711.19 from any other subheading, including
another subheading within that group, except from subheading 2711.29. 2711.21 .............................................. A change to subheading 2711.21 from any other subheading, except from subheading
2711.11. 2711.29 .............................................. A change to subheading 2711.29 from any other subheading, except from subheading
2711.12 through 2711.21. 2712–2714 ......................................... A change to heading 2712 through 2714 from any other heading, including another
heading within that group. 2715 ................................................... A change to heading 2715 from any other heading, except from heading 2714 or sub-
heading 2713.20. 2716 ................................................... A change to heading 2716 from any other heading.
(f) Section VI: Chapters 28 through 38
Notes: 1. Chemical reaction origin rule— Any good of Chapters 28, 29, 31, 32 or 38, except a good of heading 3823, that is the product of a chemical reaction shall
be considered to be a good of the country in which the reaction occurred. A chemical reaction is defined as a process in which chemical bonds in molecules are broken and new chemical bonds are
formed between the fragmented molecules and/or added elements so that one or more of the original bonds no longer link the same chemical element/s or functional group/s.
Notwithstanding any of the line-by-line rules, the ‘‘chemical reaction’’ rule may be applied to any good classified in the above chapters.
2. Separation prohibition— A foreign material/component will not be deemed to have satisfied all applicable requirements of these rules by reason of a
change from one classification to another merely as the result of the separation of one or more individual materials or compo- nents from a man-made mixture unless the isolated material/component, itself, also underwent a chemical reaction. 2801.10–2801.30 ............................... A change to subheading 2801.10 through 2801.30 from any other subheading, including
another subheading within that group. 2802 ................................................... A change to heading 2802 from any other heading, except from heading 2503. 2803 ................................................... A change to heading 2803 from any other heading. 2804.10–2804.50 ............................... A change to subheading 2804.10 through 2804.50 from any other subheading, including
another subheading within that group. 2804.61–2804.69 ............................... A change to subheading 2804.61 through 2804.69 from any other subheading outside
that group. 2804.70–2804.90 ............................... A change to subheading 2804.70 through 2804.90 from any other subheading, including
another subheading within that group. 2805 ................................................... A change to heading 2805 from any other heading. 2806.10–2806.20 ............................... A change to subheading 2806.10 through 2806.20 from any other subheading, including another subheading within
that group.. 2807–2808 ......................................... A change to heading 2807 through 2808 from any other heading, including another
heading within that group. 2809.10–2809.20 ............................... A change to subheading 2809.10 through 2809.20 from any other subheading, including
another subheading within that group. 2810 ................................................... A change to heading 2810 from any other heading. 2811.11 .............................................. A change to subheading 2811.11 from any other subheading. 2811.19 .............................................. A change to subheading 2811.19 from any other subheading, except from subheading
2811.22. 2811.21 .............................................. A change to subheading 2811.21 from any other subheading. 2811.22 .............................................. A change to subheading 2811.22 from any other subheading, except from subheading
2505.10, 2506.10, or 2811.19. 2811.29 .............................................. A change to sulphur dioxide of subheading 2811.29 from any other good of subheading
2811.29 or from any other subheading; or A change to any other good of subheading 2811.29 from sulphur dioxide of subheading
2811.29 or from any other subheading. 2812.10–2813.90 ............................... A change to subheading 2812.10 through 2813.90 from any other subheading, including
another subheading within that group. 2814 ................................................... A change to heading 2814 from any other heading. 2815.11–2815.12 ............................... A change to subheading 2815.11 through 2815.12 from any other subheading outside
that group. 2815.20–2815.30 ............................... A change to subheading 2815.20 through 2815.30 from any other subheading, including
another subheading within that group. 2816.10 .............................................. A change to subheading 2816.10 from any other subheading. 2816.40 .............................................. A change to subheading 2816.40 from any other subheading, except a change to oxides,
hydroxides and peroxides of strontium of subheading 2816.40 from subheading 2530.90.
2817 ................................................... A change to heading 2817 from any other heading, except from heading 2608.
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2818.10–2818.30 ............................... A change to subheading 2818.10 through 2818.30 from any other subheading, including another subheading within that group, except from heading 2606 or subheading 2620.40.
2819.10–2819.90 ............................... A change to subheading 2819.10 through 2819.90 from any other subheading, including another subheading within that group.
2820.10–2820.90 ............................... A change to subheading 2820.10 through 2820.90 from any other subheading, including another subheading within that group, except from subheading 2530.90 or heading 2602.
2821.10 .............................................. A change to subheading 2821.10 from any other subheading. 2821.20 .............................................. A change to subheading 2821.20 from any other subheading, except from earth color
mineral substances of 2530.90 or from subheading 2601.11 through 2601.20. 2822 ................................................... A change to heading 2822 from any other heading, except from heading 2605. 2823 ................................................... A change to heading 2823 from any other heading. 2824.10–2824.90 ............................... A change to red lead or to orange lead of subheading 2824.90 from any other good of
subheading 2824.90 or from any other subheading, except from heading 2607; or A change to any other good of subheading 2824.90 from red lead or from orange lead of
subheading 2824.90 or from any other subheading, except from heading 2607; or A change to subheading 2824.10 through 2924.90 from any other subheading, including
another subheading within that group, except from heading 2607. 2825.10–2825.40 ............................... A change to subheading 2825.10 through 2825.40 from any other subheading, including
another subheading within that group. 2825.50 .............................................. A change to subheading 2825.50 from any other subheading, except from heading 2603. 2825.60 .............................................. A change to subheading 2825.60 from any other subheading, except from subheading
2615.10. 2825.70 .............................................. A change to subheading 2825.70 from any other subheading, except from subheading
2613.10. 2825.80 .............................................. A change to subheading 2825.80 from any other subheading, except from subheading
2617.10. 2825.90 .............................................. A change to subheading 2825.90 from any other subheading, provided that the good
classified in subheading 2825.90 is the product of a ‘‘chemical reaction’’ as defined in Note 1.
2826.12–2833.19 ............................... A change to fluorides of ammonium or of sodium of subheading 2826.19 from any other good of subheading 2826.19 or from any other subheading; or
A change to any other good of subheading 2826.19 from fluorides of ammonium or of sodium of subheading 2826.19 or from any other subheading; or
A change to fluorosilicates of sodium or of potassium of subheading 2826.90 from any other good of subheading 2826.90 or from any other subheading; or
A change to any other good of subheading 2826.90 from fluorosilicates of sodium or of potassium of subheading 2826.90 or from any other subheading; or
A change to chlorides of iron of subheading 2827.39 from any other good of subheading 2827.39 or from any other subheading; or
A change to chlorides of cobalt of subheading 2827.39 from any other good of sub- heading 2827.39 or from any other subheading; or
A change to chlorides of zinc of subheading 2827.39 from any other good of subheading 2827.39 or from any other subheading; or
A change to any other good of subheading 2827.39 from chlorides of iron, of cobalt, or of zinc of subheading 2827.39 or from any other subheading; or
A change to zinc sulphide of subheading 2830.90 from any other good of subheading 2830.90 or from any other subheading; or
A change to cadmium sulphide of subheading 2830.90 from any other good of sub- heading 2830.90 or from any other subheading; or
A change to any other good of subheading 2830.90 from zinc sulphide or cadmium sulphide of subheading 2830.90 or from any other subheading; or
A change to subheading 2826.12 through 2833.19 from any other subheading, including another subheading within that group.
2833.21 .............................................. A change to subheading 2833.21 from any other subheading, except from subheading 2530.20.
2833.22–2833.25 ............................... A change to subheading 2833.22 through 2833.25 from any other subheading, including another subheading within that group.
2833.27 .............................................. A change to subheading 2833.27 from any other subheading, except from subheading 2511.10.
2833.29 .............................................. A change to chromium sulphate of subheading 2833.29 from any other good of sub- heading 2833.29 or from any other subheading; or
A change to zinc sulphate of subheading 2833.29 from any other good of subheading 2833.29 or from any other subheading; or
A change to any other good of subheading 2833.29 from chromium sulphate or zinc sulphate of subheading 2833.29 or from any other subheading, except from heading 2520.
2833.30–2833.40 ............................... A change to subheading 2833.30 through 2833.40 from any other subheading, including another subheading within that group.
2834.10–2834.29 ............................... A change to subheading 2834.10 through 2834.29 from any other subheading, including another subheading within that group.
2835.10–2835.25 ............................... A change to subheading 2835.10 through 2835.25 from any other subheading, including another subheading within that group.
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2835.26 .............................................. A change to subheading 2835.26 from any other subheading, except from heading 2510. 2835.29–2835.39 ............................... A change to phosphates of trisodium of subheading 2835.29 from any other good of sub-
heading 2835.29 or from any other subheading; or A change to any other good of subheading 2835.29 from phosphates of trisodium of sub-
heading 2835.29 or from any other subheading; or A change to subheading 2835.29 through 2835.39 from any other subheading, including
another subheading within that group. 2836.20 .............................................. A change to subheading 2836.20 from any other subheading, except from subheading
2530.90. 2836.30–2836.40 ............................... A change to subheading 2836.30 through 2836.40 from any other subheading, including
another subheading within that group. 2836.50 .............................................. A change to subheading 2836.50 from any other subheading, except from heading 2509,
subheading 2517.41 or 2517.49, heading 2521, or subheading 2530.90. 2836.60 .............................................. A change to subheading 2836.60 from any other subheading, except from subheading
2511.20. 2836.91 .............................................. A change to subheading 2836.91 from any other subheading. 2836.92 .............................................. A change to subheading 2836.92 from any other subheading, except from subheading
2530.90. 2836.99 .............................................. A change to bismuth carbonate of subheading 2836.99 from commercial ammonium car-
bonate or other ammonium carbonates or from lead carbonates of subheading 2836.99 or from any other subheading, except from subheading 2617.90; or
A change to commercial ammonium carbonate or to other ammonium carbonates of sub- heading 2836.99 from any other good of subheading 2836.99 or from any other sub- heading; or
A change to lead carbonates of subheading 2836.99 from any other good of subheading 2836.99 or from any other subheading, except from heading 2607; or
A change to any other good of subheading 2836.99 from commercial ammonium car- bonate or other ammonium carbonates or from lead carbonates of subheading 2836.99 or from any other subheading, provided that the good classified in subheading 2836.99 is the product of a ‘‘chemical reaction’’ as defined in Note 1.
2837.11–2837.20 ............................... A change to subheading 2837.11 through 2837.20 from any other subheading, including another subheading within that group.
2839.11–2839.19 ............................... A change to subheading 2839.11 through 2839.19 from any other subheading outside that group.
2839.90 .............................................. A change to silicates of potassium of subheading 2839.90 from any other good of sub- heading 2839.90 or from any other subheading; or
A change to any other good of subheading 2839.90 from silicates of potassium of sub- heading 2839.90 or from any other subheading.
2840.11–2840.20 ............................... A change to subheading 2840.11 through 2840.20 from any other subheading outside that group, except from subheading 2528.10.
2841.30 .............................................. A change to subheading 2841.30 from any other subheading. 2841.50 .............................................. A change to chromates of zinc or of lead from any other good of subheading 2841.50 or
from any other subheading; or 2841.61–2841.69 ............................... A change to subheading 2841.61 through 2841.69 from any other subheading outside
that group. 2841.70 .............................................. A change to subheading 2841.70 from any other subheading, except from subheading
2613.90. 2841.80 .............................................. A change to subheading 2841.80 from any other subheading, except from heading 2611. 2841.90 .............................................. A change to aluminates from any other good of subheading 2841.90 or from any other
subheading; or A change to any other good of subheading 2841.90 from aluminates of subheading
2841.90 or from any other subheading, provided that the good classified in subheading 2841.90 is the product of a ‘‘chemical reaction’’ as defined in Note 1.
2842.10 .............................................. A change to subheading 2842.10 from any other subheading. 2842.90 .............................................. A change to fulminates, cyanates and thiocyanates of subheading 2842.90 from any
other good of subheading 2842.90 or from any other subheading; or A change to any other good of subheading 2842.90 from fulminates, cyanates and
thiocyanates of subheading 2842.90 or from any other subheading, provided that the good classified in subheading 2842.90 is the product of a ‘‘chemical reaction’’ as de- fined in Note 1.
2843.10 .............................................. A change to subheading 2843.10 from any other subheading, except from heading 7106, 7108, 7110, or 7112.
2843.21–2843.29 ............................... A change to subheading 2843.21 through 2843.29 from any other subheading, including another subheading within that group.
2843.30–2843.90 ............................... A change to subheading 2843.30 through 2843.90 from any other subheading, including another subheading within that group, except from subheading 2616.90.
2844.10 .............................................. A change to subheading 2844.10 from any other subheading, except from subheading 2612.10.
2844.20 .............................................. A change to subheading 2844.20 from any other subheading. 2844.30 .............................................. A change to subheading 2844.30 from any other subheading, except from subheading
2844.20. 2844.40–2844.50 ............................... A change to subheading 2844.40 through 2844.50 from any other subheading, including
another subheading within that group. 2845 ................................................... A change to heading 2845 from any other heading.
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2846 ................................................... A change to heading 2846 from any other heading, except from subheading 2530.90. 2847 ................................................... A change to heading 2847 from any other heading. 2848 ................................................... A change to heading 2848 from any other heading. 2849.10–2849.90 ............................... A change to subheading 2849.10 through 2849.90 from any other subheading, including
another subheading within that group. 2850 ................................................... A change to heading 2850 from any other heading. 2852 ................................................... A change to other metal oxides, hydroxides or peroxides of heading 2852 from any other
good of heading 2852 or from any other heading, provided that the good is the product of a ‘‘chemical reaction’’, as defined in Note 1, except from subheading 2825.90; or
A change to other fluorides of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2826.19; or
A change to other chlorides of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2827.39; or
A change to other bromides or to bromide oxides from any other good of heading 2852 or from any other heading, except from subheading 2827.59; or
A change to iodides or to iodide oxides of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2827.60; or
A change to other chlorates of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2829.19; or
A change to other perchlorates, bromotes, perbromates, iodates or periodates of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2829.90; or
A change to other sulphides or polysulphides, whether or not chemically defined, of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2830.90; or
A change to other sulfates of heading 2852 from any other good of heading 2852 or from any other heading, except from heading 2520 or from subheading 2833.29; or
A change to other nitrates of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2834.29; or
A change to other phosphates from any other good of heading 2852 or from any other heading, except from subheading 2835.29; or
A change to other cyanides or to cyanide oxides of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2837.19; or
A change to complex cyanides of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2837.20; or
A change to fulminates, cyanates or thiocyanates of heading 2852 from any other good of heading 2852 or from any other heading; or
A change to other chromates, dichromates or peroxochromates of heading 2852 from any other good of heading 2852 or any other heading, except from heading 2610, or from subheading 2841.50; or
A change to other salts of inorganic acids or to peroxoacids, other than azides, of head- ing 2852 from any other good of heading 2852 or from any other heading, provided that the good classified in heading 2852 is the product of a ‘‘chemical reaction’’ as de- fined in Note 1, except from subheading 2842.90; or
A change to other silver compounds of heading 2852 from any other good of heading 2852 or from any other heading, except from subheading 2843.29; or
A change to derivatives containing only sulpho groups, their salts and esters from any other good of heading 2852 or from any other heading, except from heading 2908; or
A change to palmitic acid, stearic acid, their salts or their esters from any other good of heading 2852 or from any other heading, except from subheading 2915.70; or
A change to oleic, linolenic or linolenic acids, their salts or their esters from any other good of heading 2852 or from any other heading, except from subheading 2916.15; or
A change to benzoic acid, its salts or its esters from any other good of heading 2852 or from any other heading, except from subheading 3301.90 or subheading 2916.31; or
A change to lactic acid, its salts or its esters from any other good of heading 2852 or from any other heading, except 2918.11; or
A change to other organo-inorganic compounds of heading 2852 from any other good of heading 2852 or from any other heading, except from heading 2931.
2853 ................................................... A change to heading 2853 from any other heading. 2901.10–2901.29 ............................... A change to subheading 2901.10 through 2901.29 from any other subheading, including
another subheading within that group, except from acyclic petroleum oils of heading 2710 or from subheading 2711.13, 2711.14, 2711.19, or 2711.29.
2902.11 .............................................. A change to subheading 2902.11 from any other subheading. 2902.19 .............................................. A change to subheading 2902.19 from any other subheading, except from non-aromatic
cyclic petroleum oils of subheading 2707.50, 2707.99, or heading 2710. 2902.20 .............................................. A change to subheading 2902.20 from any other subheading, except from subheading
2707.10, 2707.50, or 2707.99. 2902.30 .............................................. A change to subheading 2902.30 from any other subheading, except from subheading
2707.20, 2707.50, or 2707.99. 2902.41–2902.44 ............................... A change to subheading 2902.41 through 2902.44 from any other subheading, including
another subheading within that group, except from subheading 2707.30, 2707.50 or 2707.99.
2902.50 .............................................. A change to subheading 2902.50 from any other subheading.
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HTSUS Tariff shift and/or other requirements
2902.60 .............................................. A change to subheading 2902.60 from any other subheading, except from subheading 2707.30, 2707.50, 2707.99, or heading 2710.
2902.70–2902.90 ............................... A change to subheading 2902.70 through 2902.90 from any other subheading, including another subheading within that group, except from subheading 2707.50, 2707.99, or heading 2710.
2903.11–2903.39 ............................... A change to subheading 2903.31 through 2903.39 from any subheading outside that group; or
A change to any other good of subheading 2903.11 through 2903.39 from any other sub- heading, including another subheading within that group.
2903.41–2903.49 ............................... A change to subheading 2903.41 through 2903.49 from any other subheading outside that group.
2903.51–2904.90 ............................... A change to aldrin (ISO), chlordane (ISO) or heptachlor (ISO) of subheading 2903.52 from any other subheading, except from subheading 2903.59; or
A change to any other good of subheading 2903.59 from any other subheading, except from subheading 2903.52; or
A change to any other good of subheading 2903.51 through 2904.90 from any other sub- heading, including another subheading within that group.
2905.11–2905.19 ............................... A change to pentanol (amyl alcohol) and isomers thereof of subheading 2905.19 from any other good of subheading 2905.19 or from any other subheading; or
A change to any other good of subheading 2905.19 from pentanol (amyl alcohol) and isomers thereof of subheading 2905.19 or from any other subheading; or
A change to any other good of subheading 2905.11 through 2905.19 from any other sub- heading, including another subheading within that group.
2903.51–2904.90 ............................... A change to subheading 2903.51 through 2904.90 from any other subheading, including another subheading within that group.
2905.11–2905.19 ............................... A change to subheading 2905.11 through 2905.19 from any other subheading, including another subheading within that group.
2905.22–2905.29 ............................... A change to subheading 2905.22 through 2905.29 from any other subheading, including another subheading within that group, except from subheading 1301.90, 3301.90, or 3805.90.
2905.31–2905.44 ............................... A change to subheading 2905.31 through 2905.44 from any other subheading, including another subheading within that group.
2905.45 .............................................. A change to subheading 2905.45 from any other subheading, except from heading 1520. 2905.49–2905.59 ............................... A change to subheading 2905.49 through 2905.59 from any other subheading, including
another subheading within that group. 2906.11 .............................................. A change to subheading 2906.11 from any other subheading, except from subheading
3301.24 or 3301.25. 2906.12–2906.13 ............................... A change to subheading 2906.12 through 2906.13 from any other subheading, including
another subheading within that group. 2906.19 .............................................. A change to terpineols of subheading 2906.19 from any other good of subheading
2906.19 or from any other subheading, except from heading 3805; or A change to any other good of subheading 2906.19 from terpineols of subheading
2906.19 or from any other subheading, except from subheading 3301.90 or 3805.90. 2906.21 .............................................. A change to subheading 2906.21 from any other subheading. 2906.29 .............................................. A change to subheading 2906.29 from any other subheading, except from subheading
2707.60 or 3301.90. 2907.11 .............................................. A change to subheading 2907.11 from any other subheading, except from subheading
2707.60. 2907.12–2907.22 ............................... A change to xylenols or their salts of subheading 2907.19 from any other good of sub-
heading 2907.19 or from any other subheading, except from subheading 2707.99; or A change to any other good of subheading 2907.19 from xylenols and their salts of sub-
heading 2907.19 or from any other subheading, except from subheading 2707.99; or A change to any other good of subheading 2907.12 through 2907.22 from any other sub-
heading, including another subheading within that group, except from subheading 2707.99.
2907.23 .............................................. A change to subheading 2907.23 from any other subheading. 2907.29 .............................................. A change to subheading 2907.29 from any other subheading, including a change to phe-
nol-alcohols of subheading 2907.29, from polyphenols of subheading 2907.29, or a change to polyphenols of subheading 2907.29 from phenol-alcohols of subheading 2907.29, except a change from subheading 2707.99.
2908 ................................................... A change to heading 2908 from any other heading. 2909.11–2909.49 ............................... A change to monomethyl ethers of ethylene glycol or of diethylene glycol of subheading
2909.44 through 2909.49 from any other good of subheading 2909.44 through 2909.49 or from any other subheading; or
A change to any other good of subheading 2909.44 through 2909.49 from monomethyl ethers of ethylene glycol or of diethylene glycol of subheading 2909.44 through 2909.49 or from any other subheading; or
A change to any other good of subheading 2909.11 through 2909.49 from any other sub- heading, including another subheading within than group.
2909.50 .............................................. A change to subheading 2909.50 from any other subheading, except from subheading 3301.90.
2909.60 .............................................. A change to subheading 2909.60 from any other subheading. 2910.10–2910.90 ............................... A change to dieldrin (ISO, INN) of subheading 2910.40 from any other subheading, ex-
cept from subheading 2910.90; or
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HTSUS Tariff shift and/or other requirements
A change to subheading 2910.90 from any other subheading, except from subheading 2910.40; or
A change to any other good of subheading 2910.10 through 2910.90 from any other sub- heading, including another subheading within that group.
2912.11–2912.12 ............................... A change to subheading 2912.11 through 2912.12 from any other subheading, including another subheading within that group.
2912.19–2912.49 ............................... A change to butanal (butyraldehyde, normal isomer) of subheading 2912.19 from any other good of subheading 2912.19 or from any other subheading; or
A change to any other good of subheading 2912.19 from butanal (butyraldehyde, normal isomer) of subheading 2912.19 or from any other subheading, except from subheading 3301.90; or
A change to any other good of subheading 2912.19 through 2912.49 from any other sub- heading, including another subheading within that group, except from subheading 3301.90.
2912.50–2912.60 ............................... A change to subheading 2912.50 through 2912.60 from any other subheading, including another subheading within that group.
2913 ................................................... A change to heading 2913 from any other heading. 2914.11–2914.19 ............................... A change to subheading 2914.11 through 2914.19 from any other subheading, including
another subheading within that group, except from subheading 3301.90. 2914.21–2914.22 ............................... A change to subheading 2914.21 through 2914.22 from any other subheading, including
another subheading within that group. 2914.23 .............................................. A change to subheading 2914.23 from any other subheading, except from subheading
3301.90. 2914.29 .............................................. A change to subheading 2914.29 from any other subheading, except from subheading
3301.90 or 3805.90. 2914.31–2914.39 ............................... A change to subheading 2914.31 through 2914.39 from any other subheading outside
that group, except from subheading 3301.90. 2914.40–2914.70 ............................... A change to subheading 2914.40 through 2914.70 from any other subheading, including
another subheading within that group, except from subheading 3301.90. 2915.11–2915.33 ............................... A change to sodium acetate of subheading 2915.29 from any other good of subheading
2915.29 or from any other subheading; or A change to cobalt acetates of subheading 2915.29 from any other good of subheading
2915.29 or from any other subheading; or A change to any other good of subheading 2915.29 from sodium acetate or cobalt ace-
tates of subheading 2915.29 or from any other subheading; or A change to any other good of subheading 2915.11 through 2915.33 from any other sub-
heading, including another subheading within that group. 2915.36 .............................................. A change to subheading 2915.36 from any other subheading, except from subheading
2915.90. 2915.39 .............................................. A change to isobutyl acetate of subheading 2915.39 from any other good of subheading
2915.39 or from any other subheading; or A change to 2-Ethoxyethyl acetate of subheading 2915.39 from any other good of sub-
heading 2915.39 or from any other subheading; or A change to any other good of subheading 2915.39 from isobutyl acetate or 2-
Ethoxyethyl acetate of subheading 2915.39 or from any other subheading, except from subheading 3301.90.
2915.39 .............................................. A change to subheading 2915.39 from any other subheading, except from subheading 3301.90.
2915.40–2915.90 ............................... A change to subheading 2915.40 through 2915.90 from any other subheading, including another subheading within that group.
2916.11–2916.20 ............................... A change to subheading 2916.11 through 2916.20 from any other subheading, including another subheading within that group.
2916.31–2916.39 ............................... A change to subheading 2916.31 through 2916.39 from any other subheading, including another subheading within that group, except from subheading 3301.90.
2917.11–2917.39 ............................... A change to dibutyl orthophthalates of subheading 2917.34 from any other good of sub- heading 2917.34 or from any other subheading; or
A change to any other good of subheading 2917.34 from dibutyl orthophthalates of sub- heading 2917.34 or from any other subheading; or
A change to any other good of subheading 2917.11 through 2917.39 from any other sub- heading, including another subheading within that group.
2918.11–2918.22 ............................... A change to subheading 2918.18 from any other subheading, except from subheading 2918.19; or
A change to any other good of subheading 2918.19 from any other subheading, except from subheading 2918.18; or
A change to subheading 2918.11 through 2918.22 from any other subheading, including another subheading within that group.
2918.23 .............................................. A change to subheading 2918.23 from any other subheading, except from subheading 3301.90.
2918.29–2918.30 ............................... A change to subheading 2918.29 through 2918.30 from any other subheading, including another subheading within that group.
2918.91–2918.99 ............................... A change to subheading 2918.91 through 2918.99 from any other subheading outside that group, except from subheading 3301.90.
2919 ................................................... A change to heading 2919 from any other heading.
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2920.11–2926.90 ............................... A change to subheading 2920.11 through 2920.19 from any subheading outside that group; or
A change to diethylamine and its salts of subheading 2921.19 from any other good of subheading 2921.19 or any other subheading; or
A change to any other good of subheading 2921.19 from diethylamine and its salts of subheading 2921.19 or from any other subheading; or
A change to anisidines, dianisidines, phenetidines, and their salts of subheading 2922.29 from any other good of subheading 2922.29 or any other subheading; or
A change to any other good of subheading 2922.29 from anisidines, dianisidines, phenetidines, and their salts of subheading 2922.29 or from any other subheading; or
A change to subheading 2924.12 from any other subheading, except from subheading 2924.19; or
A change to subheading 2924.19 from any other subheading, except from subheading 2924.12; or
A change to subheading 2925.21 through 2925.29 from any subheading outside that group; or
A change to any other good of subheading 2920.11 through 2926.90 from any other sub- heading, including another subheading within that group.
2927–2928 ......................................... A change to heading 2927 through 2928 from any other heading, including another heading within that group.
2929.10–2930.90 ............................... A change to subheading 2930.50 from any other subheading, except from subheading 2930.90; or
A change to dithiocarbonates (xanthates) of subheading 2930.90 from any other good of subheading 2930.90 or from any other subheading;
A change to any other good of subheading 2930.90 from dithiocarbonates (xanthates) of subheading 2930.90 or from any other subheading, except from subheading 2930.50; or
A change to any other good of subheading 2929.10 through 2930.90 from any other sub- heading, including another subheading within that group.
2931 ................................................... A change to heading 2931 from any other heading. 2932.11–2932.99 ............................... A change to subheading 2932.11 through 2932.99 from any other subheading, including
another subheading within that group, except from subheading 3301.90. 2933.11–2934.99 ............................... A change to subheading 2933.11 through 2934.99 from any other subheading, including
another subheading within that group. 2935 ................................................... A change to heading 2935 from any other heading. 2936.21–2936.29 ............................... A change to subheading 2936.21 through 2936.29 from any other subheading, including
another subheading within that group. 2936.90 .............................................. A change to unmixed provitamins of subheading 2936.90 from any other good of sub-
heading 2936.90 or from any other subheading; or A change to any other good of subheading 2936.90 from any other subheading, except
from subheading 2936.21 through 2936.29. 2937–2941 ......................................... A change to heading 2937 through 2941 from any other heading, including another
heading within that group, except a change to concentrates of poppy straw of sub- heading 2939.11 from poppy straw extract of subheading 1302.19.
2942 ................................................... A change to heading 2942 from any other chapter. 3001.10–3001.90 ............................... A change to subheading 3001.20 through 3001.90 from any other subheading, including
another subheading within that group, except a change from subheading 3006.80. 3001.20–3001.90 ............................... A change to glands and other organs, dried, whether or not powdered, of subheading
3001.90 from any other good of subheading 3001.90 or from any other subheading, except from subheading 0206.10 through 0208.90 or 0305.20, heading 0504 or 0510, or subheading 0511.99 if the change from these provisions is not to a gland or other organ powder classified in subheading 3001.90, and except a change from subheading 3006.92; or
A change to any other good of subheading 3001.90 from glands and other organs, dried, whether or not powdered, of subheading 3001.90 or from any other subheading, ex- cept from subheading 3006.92; or
A change to any other good of subheading 3001.20 through 3001.90 from any other sub- heading, including another subheading within that group, except a change from sub- heading 3006.92.
3002.10–3002.90 ............................... A change to subheading 3002.10 through 3002.90 from any other subheading including another subheading within that group, except a change from subheading 3006.92.
3003.10 .............................................. A change to subheading 3003.10 from any other subheading, except from subheading 2941.10, 2941.20, 3003.20, or 3006.92.
3003.20 .............................................. A change to subheading 3003.20 from any other subheading, except from subheading 2941.30 through 2941.90, or 3006.92.
3003.31 .............................................. A change to subheading 3003.31 from any other subheading, except from subheading 2937.12 or 3006.92.
3003.39 .............................................. A change to subheading 3003.39 from any other subheading, except from hormones or their derivatives classified in Chapter 29, or except from subheading 3006.92.
3003.40 .............................................. A change to subheading 3003.40 from any other subheading, except from heading 1211, subheading 1302.11, 1302.19, 1302.20, 1302.39, or 3006.92, or alkaloids or deriva- tives thereof classified in Chapter 29.
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HTSUS Tariff shift and/or other requirements
3003.90 .............................................. A change to subheading 3003.90 from any other subheading, provided that the domestic content of the therapeutic or prophylactic component is no less than 40 percent by weight of the total therapeutic or prophylactic content, or except from subheading 3006.92.
3004.10 .............................................. A change to subheading 3004.10 from any other subheading, except from subheading 2941.10, 2941.20, 3003.10, 3003.20, or 3006.92.
3004.20 .............................................. A change to subheading 3004.20 from any other subheading, except from subheading 2941.30 through 2941.90, 3003.20, or 3006.92.
3004.31 .............................................. A change to subheading 3004.31 from any other subheading, except from subheading 2937.12, 3003.31, 3003.39, or 3006.92.
3004.32 .............................................. A change to subheading 3004.32 from any other subheading, except from subheading 3003.39 or 3006.92, or from adrenal corticosteroid hormones classified in Chapter 29.
3004.39 .............................................. A change to subheading 3004.39 from any other subheading, except from subheading 3003.39 or 3006.92, or from hormones or derivatives thereof classified in Chapter 29.
3004.40 .............................................. A change to subheading 3004.40 from any other subheading, except from heading 1211, subheading 1302.11, 1302.19, 1302.20, 1302.39, 3003.40, or 3006.92, or alkaloids or derivatives thereof classified in Chapter 29.
3004.50 .............................................. A change to subheading 3004.50 from any other subheading, except from subheading 3003.90 or 3006.92, or vitamins classified in Chapter 29 or products classified in head- ing 2936.
3004.90 .............................................. A change to subheading 3004.90 from any other subheading, except from subheading 3003.90 or 3006.92, and provided that the domestic content of the therapeutic or pro- phylactic component is no less than 40 percent by weight of the total therapeutic or prophylactic content.
3005.10 .............................................. A change to subheading 3005.10 from any other subheading, except from subheading 3006.92 or 3825.30.
3006.10 .............................................. A change to subheading 3006.10 from any other subheading, except from subheading 1212.20, 3006.92, 3825.30, or from articles of catgut of heading 4206.
3006.20–3006.60 ............................... A change to subheading 3006.20 through 3006.60 from any other subheading, including another subheading within that group, except from subheading 3006.92 or 3825.30.
3006.70 .............................................. A change to subheading 3006.70 from any other subheading, except from subheading 3006.92 or 3825.30, and provided no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound.
3006.91 .............................................. A change to subheading 3006.91 from any other subheading, except from heading 3926. 3006.92 .............................................. A change to subheading 3006.92 from any other chapter. 3101 ................................................... A change to heading 3101 from any other heading, except from subheading 2301.20 or
from powders and meals of subheading 0506.90, heading 0508, or subheading 0511.91 or 0511.99.
3102.10–3102.21 ............................... A change to subheading 3102.10 through 3102.21 from any other subheading, including another subheading within that group.
3102.29 .............................................. A change to subheading 3102.29 from any other subheading, except from subheading 3102.21 or 3102.30.
3102.30 .............................................. A change to subheading 3102.30 from any other subheading. 3102.40 .............................................. A change to subheading 3102.40 from any other subheading, except from subheading
3102.30. 3102.50 .............................................. A change to subheading 3102.50 from any other subheading. 3102.60 .............................................. A change to subheading 3102.60 from any other subheading, except from subheading
2834.29 or 3102.30. 3102.80 .............................................. A change to subheading 3102.80 from any other subheading, except from subheading
3102.10 or 3102.30. 3102.90 .............................................. A change to subheading 3102.90 from any other subheading, except from subheading
3102.10 through 3102.80. 3102.90 .............................................. A change to calcium cyanamide of subheading 3102.90 from any other subheading or
from any other good of subheading 3102.90; or A change to any other good of subheading 3102.90 from calcium cyanamide of sub-
heading 3102.90 or from any other subheading, except from subheading 3102.10 through 3102.80.
3103.10 .............................................. A change to subheading 3103.10 from any other subheading. 3103.90 .............................................. A change to basic slag of subheading 3103.90 from any other good of subheading
3103.90 or from any other subheading; or A change to any other good of subheading 3103.90 from basic slag of subheading
3103.90 or from any other subheading, except from subheading 3103.10. 3104.20–3104.30 ............................... A change to subheading 3104.20 through 3104.30 from any other subheading, including
another subheading within that group. 3104.90 .............................................. A change to carnallite, sylvite or other crude natural potassium salts of subheading
3104.90 from any other good of subheading 3104.90 or from any other subheading; or A change to any other good of subheading 3104.90 from any other subheading, except
from subheading 3104.20 through 3104.30. 3104.90 .............................................. A change to subheading 3104.90 from any other subheading, except from subheading
3104.10 through 3104.30. 3105.10 .............................................. A change to subheading 3105.10 from any other subheading, except from Chapter 31. 3105.20 .............................................. A change to subheading 3105.20 from any other heading, except from heading 3102
through 3104.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
3105.30–3105.40 ............................... A change to subheading 3105.30 through 3105.40 from any other subheading, including another subheading within that group.
3105.51–3105.59 ............................... A change to subheading 3105.51 through 3105.59 from any other subheading, including another subheading within that group, except from subheading 3102.10 through 3103.90 or 3105.30 through 3105.40.
3105.60 .............................................. A change to subheading 3105.60 from any other subheading, except from heading 3103 through 3104.
3105.90 .............................................. A change to subheading 3105.90 from any other chapter, except from subheading 2834.21.
3201.10–3202.90 ............................... A change to subheading 3201.10 through 3202.90 from any other subheading, including another subheading within that group.
3203 ................................................... A change to heading 3203 from any other heading. 3204.11–3204.17 ............................... A change to subheading 3204.11 through 3204.17 from any other subheading, including
another subheading within that group. 3204.19 .............................................. A change to subheading 3204.19 from any other subheading, except from subheading
3204.11 through 3204.17. 3204.20–3204.90 ............................... A change to subheading 3204.20 through 3204.90 from any other subheading, including
another subheading within that group. 3205 ................................................... A change to heading 3205 from any other heading. 3206.11–3206.19 ............................... A change to subheading 3206.11 through 3206.19 from any other subheading outside
that group. 3206.20–3209.90 ............................... A change to pigments and preparations based on cadmium compounds of subheading
3206.49 from any other good of subheading 3206.49 or from any other subheading; or A change to pigments and preparations based on hexacyanoferrates (ferrocyanides and
ferricyanides) from any other good of subheading 3206.49 or from any other sub- heading; or
A change to any other good of subheading 3206.49 from pigments and preparations based on cadmium compounds or hexacyanoferrates (ferrocyanides and ferricyanides) of subheading 3206.49 or from any other subheading; or
A change to any other good of subheading 3206.20 through 3209.90 from any other sub- heading, including another subheading within that group.
3210 ................................................... A change to heading 3210 from any other heading. 3211 ................................................... A change to heading 3211 from any other heading, except from subheading 3806.20. 3212.10–3212.90 ............................... A change to subheading 3212.10 through 3212.90 from any other subheading, including
another subheading within that group. 3213 ................................................... A change to heading 3213 from any other heading. 3214.10–3214.90 ............................... A change to subheading 3214.10 through 3214.90 from any other subheading, including
another subheading within that group, except from subheading 3824.50. 3215 ................................................... A change to heading 3215 from any other heading. 3301.12–3301.90 ............................... A change to oil of bergamot of subheading 3301.19 from any other good of subheading
3301.19 or from any other subheading; or A change to oil of lime of subheading 3301.19 from any other good of subheading
3301.19 or from any other subheading; or A change to any other good of subheading 3301.19 from oil of bergamot or of lime of
subheading 3301.19 or from any other subheading; or A change to oil of geranium of subheading 3301.29 from any other good of subheading
3301.29 or from any other subheading; or A change to oil of jasmin of subheading 3301.29 from any other good of subheading
3301.29 or from any other subheading; or A change to oil of lavender or of lavandin of subheading 3301.29 from any other good of
subheading 3301.29 or from any other subheading; or A change to oil of vetiver of subheading 3301.29 from any other good of subheading
3301.29 or from any other subheading; or A change to any other good of subheading 3301.29 from oil of geranium, jasmine, lav-
ender or lavandin, or of vetiver of subheading 3301.29 or from any other subheading; or
A change to any other good of subheading 3301.12 through 3301.90 from any other sub- heading, including another subheading within that group.
3302 ................................................... A change to heading 3302 from any other heading, except from subheading 2106.90 or heading 2207, 2208, or 3301.
3303 ................................................... A change to heading 3303 from any other heading, except from subheading 3302.90. 3304.10–3306.10 ............................... A change to subheading 3304.10 through 3306.10 from any other subheading, including
another subheading within that group. 3306.20 .............................................. A change to subheading 3306.20 from any other subheading, except from Chapter 54. 3306.90–3307.90 ............................... A change to subheading 3306.90 through 3307.90 from any other subheading, including
another subheading within that group. 3401 ................................................... A change to heading 3401 from any other heading. 3402.11 .............................................. A change to subheading 3402.11 from any other subheading, except from mixed
alkylbenzenes of heading 3817. 3402.12–3402.20 ............................... A change to subheading 3402.12 through 3402.20 from any other subheading, including
another subheading within that group. 3402.90 .............................................. A change to subheading 3402.90 from any other heading. 3403.11–3403.19 ............................... A change to subheading 3403.11 through 3403.19 from any other subheading, including
another subheading within that group, except from heading 2710 or 2712.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
3403.91–3403.99 ............................... A change to subheading 3403.91 through 3403.99 from any other subheading, including another subheading within that group.
3404.20 .............................................. A change to subheading 3404.20 from any other subheading. 3404.90 .............................................. A change to artificial waxes and prepared waxes of chemically modified lignite of sub-
heading 3404.90 from any other good of subheading 3404.90 or from any other sub- heading; or
3405.10–3405.90 ............................... A change to subheading 3405.10 through 3405.90 from any other subheading, including another subheading within that group.
3406–3407 ......................................... A change to heading 3406 through 3407 from any other heading, including another heading within that group.
3501.10–3501.90 ............................... A change to subheading 3501.10 through 3501.90 from any other subheading, including another subheading within that group.
3502.11–3502.19 ............................... A change to subheading 3502.11 through 3502.19 from any other subheading outside that group, except from heading 0407.
3502.20–3502.90 ............................... A change to subheading 3502.20 through 3502.90 from any other subheading, including another subheading within that group.
3503–3504 ......................................... A change to heading 3503 through 3504 from any other heading, including another heading within that group.
3505.10 .............................................. A change to subheading 3505.10 from any other subheading. 3505.20 .............................................. A change to subheading 3505.20 from any other subheading, except from heading 1108. 3506.10 .............................................. A change to subheading 3506.10 from any other subheading, except from heading 3503
or subheading 3501.90. 3506.91–3506.99 ............................... A change to subheading 3506.91 through 3506.99 from any other subheading, including
another subheading within that group. 3507 ................................................... A change to heading 3507 from any other heading. 3601–3606 ......................................... A change to heading 3601 through 3606 from any other heading, including any other
heading within that group. 3701–3703 ......................................... A change to heading 3701 through 3703 from any other heading outside that group. 3704–3706 ......................................... A change to heading 3704 through 3706 from any other heading, including another
heading within that group. 3707.10–3707.90 ............................... A change to subheading 3707.10 through 3707.90 from any other subheading, including
another subheading within that group. 3801.10 .............................................. A change to subheading 3801.10 from any other subheading. 3801.20 .............................................. A change to subheading 3801.20 from any other subheading, except from heading 2504
or subheading 3801.10. 3801.30 .............................................. A change to subheading 3801.30 from any other subheading. 3801.90 .............................................. A change to subheading 3801.90 from any other subheading, except from heading 2504. 3802–3805 ......................................... A change to heading 3802 through 3805 from any other heading, including another
heading within that group. 3806.10–3806.90 ............................... A change to subheading 3806.10 through 3806.90 from any other subheading, including
another subheading within that group. 3807 ................................................... A change to heading 3807 from any other heading. 3808.50 .............................................. A change to insecticides from any other subheading, except from vegetable saps or ex-
tracts of pyrethrum or of the roots of plants containing rotenone of subheading 1302.19 or from subheading 3808.91 or from any insecticide classified in Chapter 28 or 29; or
A change to fungicides from any other subheading, except from fungicides classified in Chapter 28 or 29 or from subheading 3808.92; or
A change to herbicides, anti-sprouting products and plant-growth regulators from any other subheading, except from herbicides, anti-sprouting products and plant-growth regulators classified in Chapter 28 or 29 or from subheading 3808.93; or
A change to a mixture of herbicides, anti-sprouting products and plant-growth regulators from any other subheading, provided that the mixture is made from two or more active ingredients and a domestic active ingredient constitutes no less than 40 percent by weight of the total active ingredients; or
A change to disinfectants from any other subheading, except from subheading 3808.94; or
A change to any other good of subheading 3808.50 from any other good of subheading 3808.50 or from any other subheading, except from rodenticides and other pesticides classified in Chapter 28 or 29 or from subheading 3808.99; or
A change to a mixture of subheading 3808.50 from any other subheading, provided that the mixture is made from two or more active ingredients and a domestic active ingre- dient constitutes no less than 40 percent by weight of the total active ingredients, ex- cept from subheading 3808.99.
3808.91 .............................................. A change to subheading 3808.91 from any other subheading, except from vegetable saps or extracts of pyrethrum or of the roots of plants containing rotenone of sub- heading 1302.19 or from any insecticide classified in Chapter 28 or 29 or subheading 3808.50.
3808.92 .............................................. A change to subheading 3808.92 from any other subheading, except from fungicides classified in Chapter 28 or 29, or subheading 3808.50.
3808.93 .............................................. A change to subheading 3808.93 from any other subheading, except from herbicides, anti-sprouting products or plant-growth regulators classified in Chapter 28 or 29 or subheading 3808.50; or
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
A change to a mixture of subheading 3808.93 from any other subheading, provided that the mixture is made from two or more active ingredients and a domestic active ingre- dient constitutes no less than 40 percent by weight of the total active ingredients.
3808.94 .............................................. A change to subheading 3808.94 from any other subheading, except from disinfectants of subheading 3808.50.
3808.99 .............................................. A change to subheading 3808.99 from any other subheading, except from rodenticides or other pesticides classified in Chapter 28 or 29; or
A change to a mixture of subheading 3808.99 from any other subheading, provided that the mixture is made from two or more active ingredients and a domestic active ingre- dient constitutes no less than 40 percent by weight of the total active ingredients.
3809.10 .............................................. A change to subheading 3809.10 from any other subheading, except from subheading 3505.10.
3809.91–3809.93 ............................... A change to subheading 3809.91 through 3809.93 from any other subheading, including another subheading within that group.
3810–3816 ......................................... A change to heading 3810 through 3816 from any other heading, including another heading within that group.
3817 ................................................... A change to heading 3817 from any other heading, including changes from one product to another within that heading, except from subheading 2902.90.
3818 ................................................... A change to heading 3818 from any other heading. 3819 ................................................... A change to heading 3819 from any other heading, except from heading 2710. 3820 ................................................... A change to heading 3820 from any other heading, except from subheading 2905.31. 3821................ ................................... A change to heading 3821 from any other heading. 3822................ ................................... A change to heading 3822 from any other heading, except from subheading 3002.10 or
3502.90 or heading 3504. 3823.11–3823.13..... .......................... A change to subheading 3823.11 through 3823.13 from any other subheading, including
another subheading within that group, except from heading 1520. 3823.19............. ................................. A change to subheading 3823.19 from any other subheading. 3823.70............. ................................. A change to subheading 3823.70 from any other subheading, except from heading 1520. 3824.10............. ................................. A change to subheading 3824.10 from any other subheading, except from heading 3505,
subheading 3806.10 or 3806.20, or heading 3903, 3905, 3906, 3909, 3911, or 3913. 3824.30............. ................................. A change to subheading 3824.30 from any other subheading, except from heading 2849. 3824.40............. ................................. A change to subheading 3824.40 from any other subheading. 3824.50............. ................................. A change to subheading 3824.50 from any other subheading, except from subheading
3214.90. 3824.60............. ................................. A change to subheading 3824.60 from any other subheading. 3824.71–3824.90 ............................... A change to subheading 3824.71 from other chemical products or preparations of the
chemical or allied industries (including those consisting of mixtures of natural prod- ucts), not elsewhere specified or included, of subheading 3824.71 or from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound; or
A change to other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included of subheading 3824.71 from any other good of subheading 3824.71 or from any other subheading, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural prod- ucts), not elsewhere specified or included, of subheading 3824.73 through 3824.79, or 3824.90; or
A change to subheading 3824.72 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other mixtures containing perhalogenated deriva- tives of acyclic hydrocarbons containing two or more different halogens of subheading 3824.73 through 3824.79; or
A change to other mixtures of halogenated hydrocarbons of subheading 3824.73 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (in- cluding those consisting of mixtures of natural products), not elsewhere specified or in- cluded, of subheading 3824.71, or 3824.74 through 3824.79, or 3824.90; or
A change to other mixtures containing perhalogenated derivatives of acyclic hydro- carbons containing two or more different halogens of subheading 3824.73 from any other subheading, provided that no more than 60 percent by weight of the good classi- fied in this subheading is attributable to one substance or compound, except from other mixtures containing perhalogenated derivatives of acyclic hydrocarbons con- taining two or more different halogens of subheading 3824.72, or 3824.74 through 3824.79; or
A change to other mixtures of halogenated hydrocarbons of subheading 3824.74 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (in- cluding those consisting of mixtures of natural products), not elsewhere specified or in- cluded, of subheading 3824.71, 3824.73, or 3824.75 through 3824.79, and except from subheading 3824.90; or
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
A change to other mixtures containing perhalogenated derivatives of acyclic hydro- carbons containing two or more different halogens of subheading 3824.74 from any other subheading, provided that no more than 60 percent by weight of the good classi- fied in this subheading is attributable to one substance or compound, except from other mixtures containing perhalogenated derivatives of acyclic hydrocarbons con- taining two or more different halogens of subheading 3824.72 through 3824.73 and subheading 3824.75 through 3824.79; or
A change to subheading 3824.75 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural prod- ucts), not elsewhere specified or included, of subheading 3824.71, 3824.73 through 3824.74, subheading 3824.76 through 3824.79, or 3824.90; or
A change to subheading 3824.76 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural prod- ucts), not elsewhere specified or included, of subheading 3824.71, 3824.73 through 3824.75, 3824.77 through 3824.79, or 3824.90; or
A change to subheading 3824.77 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural prod- ucts), not elsewhere specified or included, of subheading 3824.71, 3824.73 through 3824.76, 3824.78 through 3824.79, or 3824.90; or
A change to subheading 3824.78 from any other subheading, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound, except from other mixtures containing perhalogenated deriva- tives of acyclic hydrocarbons containing two or more different halogens of subheading 3824.72 through 3824.77 or 3824.79;
A change to mixtures of halogenated hydrocarbons of subheading 3824.79 from any other subheading, provided that no more than 60 percent by weight of the good classi- fied in this subheading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included of subheading 3824.71, 3824.73 through 3824.78, and except from subheading 3824.90; or
A change to other mixtures containing perhalogenated derivatives of acyclic hydro- carbons containing two or more different halogens of subheading 3824.79 from any other subheading, provided that no more than 60 percent by weight of the good classi- fied in this subheading is attributable to one substance or compound, except from other mixtures containing perhalogenated derivatives of acyclic hydrocarbons con- taining two or more different halogens of subheading 3824.72 through 3824.78;
A change to naphthenic acids, their water-insoluble salts or their esters of subheading 3824.90 from any other good of subheading 3824.90 or from any other subheading; or
A change to any other good of subheading 3824.90 from naphthenic acids, their water- insoluble salts or their esters of subheading 3824.90 or from any other subheading, provided that no more than 60 percent by weight of the good classified in this sub- heading is attributable to one substance or compound, except from other chemical products or preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included, of subheading 3824.71, or 3824.73 through 3824.79; or
A change to any other good of subheading 3824.71 through 3824.90 from any other sub- heading, including another subheading within that group, provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound.
3825.10–3825.69 ............................... A change to subheading 3825.10 through 3825.69 from any other chapter, except from Chapter 28 through 38, 40 or 90.
3825.90 .............................................. A change to subheading 3825.90 from any other subheading, except from subheading 3824.90, and provided that no more than 60 percent by weight of the good classified in this subheading is attributable to one substance or compound.
(g) Section VII: Chapters 39 through 40
Chapter 39 Note: The country of origin of goods classified in subheadings 3921.12.15, 3921.13.15, and 3921.90.2550 shall be determined under the provisions of § 102.21. 3901–3915........... .............................. A change to heading 3901 through 3915 from any other heading, including another
heading within that group, provided that the domestic polymer content is no less than 40 percent by weight of the total polymer content.
3916.10–3918.90 ............................... A change to subheading 3916.10 through 3918.90 from any other subheading, including another subheading within that group.
3919.10–3919.90 ............................... A change to subheading 3919.10 through 3919.90 from any other subheading outside that group.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
3920.10–3921.90 ............................... A change to other plates, sheets, film, foil or strip, of plastics, non-cellular and not rein- forced, laminated, supported or similarly combined with other materials of cellulose or its chemical derivatives, of vulcanized fiber, of subheading 3920.79 from any other good of subheading 3920.79 or from any other subheading; or
A change to any other good of subheading 3920.79 from plates, sheets, film, foil or strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials of cellulose or its chemical derivatives, of vulcanized fiber, of sub- heading 3920.79 or from any other subheading; or
A change to any other good of subheading 3920.10 through 3921.90 from any other sub- heading, including another subheading within that group.
3922–3926 ......................................... A change to heading 3922 through 3926 from any other heading, including another heading within that group.
4001.10–4001.22 ............................... A change to subheading 4001.10 through 4001.22 from any other subheading, including another subheading within that group.
4001.29 .............................................. A change to subheading 4001.29 from any other subheading, except from subheading 4001.21 or 4001.22.
4001.30 .............................................. A change to subheading 4001.30 from any other subheading. 4002.11–4002.70 ............................... A change to subheading 4002.11 through 4002.70 from any other subheading, including
another subheading within that group. 4002.80–4002.99 ............................... A change to subheading 4002.80 through 4002.99 from any other subheading, including
another subheading within that group, provided that the domestic rubber content is no less than 40 percent by weight of the total rubber content.
4003–4004 ......................................... A change to heading 4003 through 4004 from any other heading, including another heading within that group.
4005 ................................................... A change to heading 4005 from any other heading, except from heading 4001 or 4002. 4006–4010 ......................................... A change to heading 4006 through 4010 from any other heading, including another
heading within that group. 4011.10–4012.90 ............................... A change to subheading 4011.10 through 4012.90 from any other subheading, including
another subheading within that group. 4013 ................................................... A change to heading 4013 from any other heading. 4014.10–4014.90 ............................... A change to subheading 4014.10 through 4014.90 from any other subheading, including
another subheading within that group. 4015 ................................................... A change to heading 4015 from any other heading. 4016.10–4016.99 ............................... A change to subheading 4016.10 through 4016.99 from any other subheading, including
another subheading within that group. 4017 ................................................... A change to heading 4017 from any other heading.
(h) Section VIII: Chapters 41 through 43
4101 ................................................... A change to hides or skins of heading 4101 which have undergone a tanning (including a pre-tanning) process which is reversible from any other good of heading 4101 or from any other chapter; or
A change to any other good of heading 4101 from any other chapter. 4102 ................................................... A change to hides or skins of heading 4102 which have undergone a tanning (including
a pre-tanning) process which is reversible from any other good of heading 4102 or from any other chapter; or
A change to any other good of heading 4102 from any other chapter. 4103 ................................................... A change to hides or skins of heading 4103 which have undergone a tanning (including
a pre-tanning) process which is reversible from any other good of heading 4103 or from any other chapter; or
A change to any other good of heading 4103 from any other chapter. 4104–4106 ......................................... A change to heading 4104 through 4106 from any other heading, including another
heading within that group, except from hides or skins of heading 4101 through 4103 which have undergone a tanning (including a pre-tanning) process which is reversible, or from heading 4107, 4112 or 4113.
4107 ................................................... A change to heading 4107 from any other heading except from hides or skins of heading 4101 which have undergone a tanning (including a pre-tanning) process which is re- versible, or from heading 4104.
4112 ................................................... A change to heading 4112 from any other heading except from hides or skins of heading 4102 which have undergone a tanning (including a pre-tanning) process which is re- versible, or from heading 4105.
4113 ................................................... A change to heading 4113 from any other heading except from hides or skins of heading 4103 which have undergone a tanning (including a pre-tanning) process which is re- versible, or from heading 4106.
4114.10–4115.20 ............................... A change to subheading 4114.10 through 4115.20 from any other subheading, including a subheading within that group.
Chapter 42 Note: The country of origin of goods classified in subheadings 4202.12.40 through 4202.12.80, 4202.22.40 through 4202.22.80, 4202.32.40 through 4202.32.95, 4202.92.05, 4202.92.15 through 4202.92.30, and 4202.92.60 through 4202.92.90 shall be determined under the provisions of § 102.21.
4201................ ................................... A change to heading 4201 from any other heading. 4202.11 .............................................. A change to subheading 4202.11 from any other heading. 4202.12–4202.22 ............................... A change to subheading 4202.12 through 4202.22 from any other heading, provided that
the change does not result from the assembly of foreign cut components. 4202.29 .............................................. A change to subheading 4202.29 from any other heading.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
4202.31–4202.32 ............................... A change to subheading 4202.31 through 4202.32 from any other heading, provided that the change does not result from the assembly of foreign cut components.
4202.39 .............................................. A change to subheading 4202.39 from any other heading. 4202.91–4202.99 ............................... A change to subheading 4202.91 through 4202.99 from any other heading, provided that
the change does not result from the assembly of foreign cut components. 4203–4206 ......................................... A change to articles of leather or of composition leather, of a kind used in machinery or
mechanical appliances or for other technical uses of heading 4205 from any other good of heading 4205 or from any other heading; or
A change to any other good of heading 4205 from articles of leather or of composition leather, of a kind used in machinery or mechanical appliances or for other technical uses of heading 4205 or from any other heading; or
A change to any other good of heading 4203 through 4206 from any other heading, in- cluding another heading within that group.
4301 ................................................... A change to heading 4301 from any other chapter. 4302.11–4302.20 ............................... A change to subheading 4302.11 through 4302.20 from any other heading. 4302.30 .............................................. A change to subheading 4302.30 from any other subheading, provided that the change
does not result from the assembly of foreign cut fur components. 4303–4304 ......................................... A change to heading 4303 through 4304 from any other heading, including another
heading within that group.
(i) Section IX: Chapters 44 through 46
4401–4411 ......................................... A change to heading 4401 through 4411 from any other heading, including another heading within that group; or
A change to strips continuously shaped along the ends and also continuously shaped along the edges or faces of heading 4409 from strips continuously shaped only along the edges or faces of heading 4409.
4412 ................................................... A change to heading 4412 from any other heading, except from plywood of subheading 4418.71 through 4418.79; or
A change to surface-covered plywood of heading 4412 from any other plywood that is not surface covered or is surface-covered only with a clear or transparent material which does not obscure the grain, texture, or markings of the face ply.
4413–4421 ......................................... A change to plywood of subheading 4418.71 through 4418.79 from any other good of heading 4418 or from any other heading, except from heading 4412; or
A change to any other good of subheading 4418.71 through 4418.79 from plywood of subheading 4418.71 through 4418.79 or from any other heading; or
A change to any other good of heading 4413 through 4421 from any other heading, in- cluding another heading within that group.
4501 ................................................... A change to heading 4501 from any other heading. 4502 ................................................... A change to heading 4502 from any other heading, except from heading 4501. 4503–4504 ......................................... A change to heading 4503 through 4504 from any other heading, including another
heading within that group. 4601.21–4601.99 ............................... A change to subheading 4601.21 through 4601.29 from any subheading outside that
group; or A change to subheading 4601.92 through 4601.94 from any subheading outside that
group; or A change to subheading 4601.99 from any other subheading.
4602 ................................................... A change to heading 4602 from any other heading.
(j) Section X: Chapters 47 through 49
4701–4702 ......................................... A change to heading 4701 through 4702 from any other heading, including another heading within that group.
4703.11–4704.29 ............................... A change to subheading 4703.11 through 4704.29 from any other subheading, including another subheading within that group.
4705–4707 ......................................... A change to heading 4705 through 4707 from any other heading, including another heading within that group.
4801–4807 ......................................... A change to heading 4801 through 4807 from any other heading, including another heading within that group.
4808.10 .............................................. A change to subheading 4808.10 from any other heading. 4808.20–4808.30 ............................... A change to subheading 4808.20 through 4808.30 from any other heading, except from
heading 4804. 4808.90 .............................................. A change to subheading 4808.90 from any other chapter. 4809 ................................................... A change to heading 4809 from any other heading. 4810 ................................................... A change to heading 4810 from any other heading. 4811 ................................................... A change to paper or paperboard in strips or rolls of a width not exceeding 15 cm of
heading 4811 from strips or rolls of a width exceeding 15 cm of heading 4811 or any other heading, except from heading 4817 through 4823;
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A change to paper or paperboard in rectangular (including square) sheets with the larger dimension not exceeding 36 cm or the other dimension not exceeding 15 cm in the un- folded state of heading 4811 from strips or rolls of a width exceeding 15 cm of heading 4811, paper or paperboard in rectangular (including square) sheets with the larger di- mension exceeding 36 cm and the other dimension exceeding 15 cm in the unfolded state of heading 4811 or any other heading, except from heading 4817 through 4823; or
A change to any other good of heading 4811 from any other chapter. 4812–4814 ......................................... A change to heading 4812 through 4814 from any other heading, including another
heading within that group. 4816 ................................................... A change to heading 4816 from any other heading, except from heading 4809. 4817–4822 ......................................... A change to heading 4817 through 4822 from any other heading, including another
heading within that group. 4823.20–4823.40 ............................... A change to subheading 4823.20 through 4823.40 from any other chapter. 4823.61–4823.70 ............................... A change to subheading 4823.61 through 4823.69 from any subheading outside that
group; or A change to any other good of subheading 4823.61 through 4823.70 from any other sub-
heading, including another subheading within that group. 4823.90 .............................................. A change to floor coverings on a base of paper or of paperboard, whether or not cut to
size, from any other good of subheading 4823.90 or from any other subheading; or A change to self-adhesive paper, in strips or rolls, from any other good of subheading
4823.90 or from any other subheading; or A change to other gummed or adhesive paper, in strips or rolls, from any other good of
subheading 4823.90 or from any other subheading; or A change to cards not punched and for punchcard machines from any other chapter; or A change to any other good of subheading 4823.90 from floor covering on base paper or
of paperboard, self-adhesive paper, other gummed or adhesive paper, or from cards not punched and for punchcard machines of subheading 4823.90, or from any other subheading.
4901–4908 ......................................... A change to heading 4901 through 4908 from any other heading, including another heading within that group.
4909 ................................................... A change to heading 4909 from any other heading, except from heading 4911 when the change is a result of adding text.
4910–4911 ......................................... A change to heading 4910 through 4911 from any other heading, including another heading within that group.
(k) Section XII: Chapters 64 through 67
Chapter 64 Note: For purposes of this chapter, the term ‘‘formed uppers’’ means uppers, with closed bottoms, which have been shaped by lasting, molding or otherwise but not by simply closing at the bottom. The country of origin of goods classified in subheadings 6405.20.60, 6406.10.77, 6406.10.90, and 6406.99.15 shall be determined under the provisions of § 102.21. 6401–6405 ......................................... A change to heading 6401 through 6405 from any other heading outside that group, ex-
cept from formed uppers. 6406.10 .............................................. A change to subheading 6406.10 from any other subheading. 6406.20–6406.99 ............................... A change to subheading 6406.20 through 6406.99 from any other chapter. 6505.10 .............................................. A change to subheading 6505.10 from any other subheading. 6506 ................................................... A change to heading 6506 from any other heading, except from heading 6501 through
6502; or A change to heading 6506 from heading 6501 by means of a blocking process; or A change to heading 6506 from heading 6502, provided that the change is the result of
at least three processing steps (e.g. dyeing, blocking, trimming, or adding a sweat- band).
6507 ................................................... A change to heading 6507 from any other heading. 6602 ................................................... A change to heading 6602 from any other heading. 6603.10 .............................................. A change to subheading 6603.10 from any other heading. 6603.20 .............................................. A change to subheading 6603.20 from any other heading; or
A change to subheading 6603.20 from subheading 6603.90, except when that change is pursuant to General Rule of Interpretation 2(a).
6603.90 .............................................. A change to subheading 6603.90 from any other heading. 6701 ................................................... A change to heading 6701 from any other heading; or
A change to articles of feather or down of heading 6701 from feathers or down. 6702–6704 ......................................... A change to heading 6702 through 6704 from any other heading, including another
heading within that group.
(l) Section XIII: Chapters 68 through 70
6801–6808 ......................................... A change to heading 6801 through 6808 from any other heading, including another heading within that group.
6809.11 .............................................. A change to subheading 6809.11 from any other heading. 6809.19 .............................................. A change to subheading 6809.19 from any other heading. 6809.90 .............................................. A change to subheading 6809.90 from any other subheading. 6810.11–6810.19. .............................. A change to subheading 6810.11 through 6810.19 from any other heading. 6810.91 .............................................. A change to subheading 6810.91 from any other subheading. 6810.99 .............................................. A change to subheading 6810.99 from any other heading. 6811.40 .............................................. A change to subheading 6811.40 from any other heading.
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6811.81 .............................................. A change to subheading 6811.81 from any other heading. 6811.82 .............................................. A change to subheading 6811.82 from any other heading. 6811.83 .............................................. A change to subheading 6811.83 from any other heading. 6811.89 .............................................. A change to subheading 6811.89 from any other heading. 6812.80 .............................................. A change to clothing, clothing accessories, footwear or headgear of subheading 6812.80
or from any other good of subheading 6812.80 or from any other subheading, except from subheading 6812.91; or
A change to paper, millboard or felt of subheading 6812.80 from any other subheading or from any other good of subheading 6812.80, except from compressed asbestos fiber jointing of subheading 6812.80 or from subheading 6812.92 through 6812.93; or
A change to compressed asbestos fiber jointing, in sheets or rolls, of subheading 6812.80 from any other subheading or from any other good of subheading 6812.80, except from paper, millboard or felt of subheading 6812.80 or from subheading 6812.92 through 6812.93; or
A change to other fabricated asbestos fibers, mixtures with a basis of asbestos and mag- nesium carbonate, or to articles of such mixtures or of asbestos, whether or not rein- forced, other than goods of heading 6811 or 6813 from any other heading; or
A change to yarn or thread of subheading 6812.80 from any other subheading including from any other good of subheading 6812.80; or
A change to cords or string, whether or not plaited, of subheading 6812.80 from any other subheading or from any other good of subheading 6812.80, except from yarn or thread of subheading 6812.80; or
A change to woven or knitted fabric of subheading 6812.80 from any other subheading including from any other good of subheading 6812.80.
6812.91 .............................................. A change to subheading 6812.91 from any other subheading, except from other clothing, clothing accessories or headgear of subheading 6812.80.
6812.92–6812.93 ............................... A change to subheading 6812.92 through 6812.93 from any subheading outside that group, except from subheading 6812.80.
A change to subheading 6812.99 from any other heading; or 6812.99 .............................................. A change to yarn or thread of subheading 6812.99 from any other subheading including
from any other good of subheading 6812.99; or A change to cords or string, whether or not plaited of subheading 6812.99 from any
other subheading or from any other good of subheading 6812.99, except from yarn or thread of subheading 6812.99; or
A change to woven or knitted fabric of subheading 6812.99 from any other subheading including from any other good of subheading 6812.99.
6813 ................................................... A change to heading 6813 from any other heading. 6814.10 .............................................. A change to subheading 6814.10 from any other heading. 6814.90 .............................................. A change to subheading 6814.90 from any other heading. 6815.10–6815.99. .............................. A change to subheading 6815.10 through 6815.99 from any other subheading, including
another subheading within that group. 6901–6914 ......................................... A change to heading 6901 through 6914 from any other chapter.
Chapter 70 Note: The country of origin of goods classified in subheadings 7019.19.15 and 7019.19.28 shall be determined under the provisions of § 102.21. 7001 ................................................... A change to heading 7001 from any other heading. 7002 ................................................... A change to heading 7002 from any other heading. 7003–7006 ......................................... A change to heading 7003 through 7006 from any other heading outside that group. 7007 ................................................... A change to heading 7007 from any other heading. 7008 ................................................... A change to heading 7008 from any other heading. 7009.10 .............................................. A change to subheading 7009.10 from any other subheading. 7009.91–7009.92 ............................... A change to subheading 7009.91 through 7009.92 from any other heading. 7010 ................................................... A change to heading 7010 from any other heading. 7011 ................................................... A change to heading 7011 from any other heading, except from subheading 7003.30. 7013–7018 ......................................... A change to heading 7013 through 7018 from any other heading, including another
heading within that group; or A change from uncut and unpolished glassware blanks classified in heading 7013 to cut
and polished glassware classified in heading 7013, provided that there has been a substantial amount of both cutting and polishing operations in a single country.
7019.11–7019.19 ............................... A change to subheading 7019.11 through 7019.19 from any other heading. 7019.31–7019.32 ............................... A change to subheading 7019.31 through 7019.32 from any other subheading outside
that group. 7019.39 .............................................. A change to subheading 7019.39 from any other subheading. 7019.40–7019.59 ............................... A change to subheading 7019.40 through 7019.59 from any other subheading outside
that group. 7019.90 .............................................. A change to subheading 7019.90 from any other heading. 7020 ................................................... A change to glass inners for vacuum flasks or for other vacuum vessels of heading 7020
from any other good of heading 7020 or from any other heading; or A change to any other good of heading 7020 from any other heading, except from head-
ing 7010 through 7018.
(m) Section XIV: Chapter 71
7101 ................................................... A change to heading 7101 from any other heading, except from heading 0307. 7102–7103 ......................................... A change to heading 7102 through 7103 from any other chapter.
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7104–7105 ......................................... A change to heading 7104 through 7105 from any other heading, including another heading within that group.
7106 ................................................... A change to heading 7106 from any other chapter. 7107 ................................................... A change to heading 7107 from any other chapter, except from Chapter 72 through 76 or
Chapter 78 through 83. 7108 ................................................... A change to heading 7108 from any other chapter. 7109 ................................................... A change to heading 7109 from any other chapter, except from Chapter 72 through 76 or
Chapter 78 through 83. 7110 ................................................... A change to heading 7110 from any other chapter. 7111 ................................................... A change to heading 7111 from any other chapter, except from Chapter 72 through 76 or
Chapter 78 through 83. 7112 ................................................... A change to heading 7112 from any other heading. 7113.11–7115.90 ............................... A change to subheading 7113.11 through 7115.90 from any other subheading, including
another subheading within that group. 7116 ................................................... A change to heading 7116 from any other heading, except that pearls strung but without
the addition of clasps or other ornamental features of precious metals or stones, shall have the origin of the pearls.
7117–7118 ......................................... A change to heading 7117 through 7118 from any other heading, including another heading within that group.
(n) Section XV: Chapters 72 through 83
Chapter 72 Note: Notwithstanding the specific rules of this chapter, hot-rolled flat-rolled steel which is cold-reduced (by cold rolling) shall be treated as a good of the country in which the cold-rolled steel is produced. 7201–7206 ......................................... A change to heading 7201 through 7206 from any other heading, including another
heading within that group. 7207 ................................................... A change to heading 7207 from any other heading, except from heading 7206. 7208 ................................................... A change to heading 7208 from any other heading. 7209 ................................................... A change to heading 7209 from any other heading, except from heading 7208 or 7211. 7210 ................................................... A change to heading 7210 from any other heading, except from heading 7208 through
7212. 7211 ................................................... A change to heading 7211 from any other heading, except from heading 7208 through
7209. 7212 ................................................... A change to heading 7212 from any other heading, except from heading 7208 through
7211. 7213 ................................................... A change to heading 7213 from any other heading. 7214 ................................................... A change to heading 7214 from any other heading, except from heading 7213. 7215 ................................................... A change to heading 7215 from any other heading, except from heading 7213 through
7214. 7216 ................................................... A change to heading 7216 from any other heading, except from heading 7208 through
7215. 7217 ................................................... A change to heading 7217 from any other heading, except from heading 7213 through
7215. 7218 ................................................... A change to heading 7218 from any other heading. 7219–7220 ......................................... A change to heading 7219 through 7220 from any other heading outside that group. 7221–7222 ......................................... A change to heading 7221 through 7222 from any other heading outside that group. 7223 ................................................... A change to heading 7223 from any other heading, except from heading 7221 through
7222. 7224 ................................................... A change to heading 7224 from any other heading. 7225–7226 ......................................... A change to heading 7225 through 7226 from any other heading outside that group. 7227–7228 ......................................... A change to heading 7227 through 7228 from any other heading outside that group. 7229 ................................................... A change to heading 7229 from any other heading, except from heading 7227 through
7228. 7301–7307 ......................................... A change to heading 7301 through 7307 from any other heading, including another
heading within that group, or a change within heading 7307 from fitting forgings or flange forgings to fittings or flanges made ready for commercial use by:
(a) At least one of the following processes: (1) Beveling; (2) Threading of the bore; (3) Center or step boring; and (b) At least two of the following processes: (1) Heat treating; (2) Recoining or resizing; (3) Taper boring; (4) Machining ends or surfaces other than a gasket face; (5) Drilling bolt holes; or (6) Burring or shot blasting.
7308 ................................................... A change to heading 7308 from any other heading, except for changes resulting from the following processes performed on angles, shapes, or sections classified in heading 7216:
(a) drilling, punching, notching, cutting, cambering, or sweeping, whether performed indi- vidually or in combination;
(b) adding attachments or weldments for composite construction; (c) adding attachments for handling purposes;
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(d) adding weldments, connectors or attachments to H-sections or I-sections; provided that the maximum dimension of the weldments, connectors, or attachments is not greater than the dimension between the inner surfaces of the flanges of the H-sections or I-sections;
(e) painting, galvanizing, or otherwise coating; or (f) adding a simple base plate without stiffening elements, individually or in combination
with drilling, punching, notching, or cutting, to create an article suitable as a column. 7309–7314 ......................................... A change to heading 7309 through 7314 from any other heading, including another
heading within that group. 7315.11–7315.12 ............................... A change to subheading 7315.11 through 7315.12 from any other heading; or
A change to subheading 7315.11 through 7315.12 from subheading 7315.19 or 7315.90, except when that change is pursuant to General Rule of Interpretation 2(a).
7315.19 .............................................. A change to subheading 7315.19 from any other subheading. 7315.20–7315.89 ............................... A change to subheading 7315.20 through 7315.89 from any other heading; or
A change to subheading 7315.20 through 7315.89 from subheading 7315.90, except when that change is pursuant to General Rule of Interpretation 2(a).
7315.90 .............................................. A change to subheading 7315.90 from any other subheading. 7316 ................................................... A change to heading 7316 from any other heading, except from heading 7312 or 7315. 7317–7318 ......................................... A change to heading 7317 through 7318 from any other heading, including another
heading within that group. 7319 ................................................... A change to heading 7319 from any other heading. 7320 ................................................... A change to heading 7320 from any other heading. 7321.11–7321.89 ............................... A change to subheading 7321.11 through 7321.89 from any other heading; or
A change to subheading 7321.11 through 7321.89 from subheading 7321.90, except when that change is pursuant to General Rule of Interpretation 2(a).
7321.90 .............................................. A change to subheading 7321.90 from any other heading. 7322–7323 ......................................... A change to heading 7322 through 7323 from any other heading, including another
heading within that group. 7324.10–7324.29 ............................... A change to subheading 7324.10 through 7324.29 from any other subheading, including
another subheading within that group. 7324.90 .............................................. A change to subheading 7324.90 from any other subheading. 7325–7326 ......................................... A change to heading 7325 through 7326 from any other heading, including another
heading within that group. 7401–7407 ......................................... A change to heading 7401 through 7407 from any other heading, including another
heading within that group. 7408 ................................................... A change to heading 7408 from any other heading, except from heading 7407. 7409 ................................................... A change to heading 7409 from any other heading. 7410 ................................................... A change to heading 7410 from any other heading, except from plate, sheet, or strip
classified in heading 7409 of a thickness less than 5mm. 7411–7418 ......................................... A change to cooking or heating apparatus of a kind used for domestic purposes, non-
electric and parts thereof, of copper, of subheading 7418.19 from any other good of subheading 7418.19 or from any other subheading; or
A change to any other good of subheading 7418.19 from cooking or heating apparatus of a kind used for domestic purposes, non-electric and parts thereof, of copper, of sub- heading 7418.19 or from any other subheading; or
A change to any other good of heading 7411 through 7418 from any other heading, in- cluding another heading within that group.
7419.10–7419.99 ............................... A change to cloth, grill or netting of copper wire or to expanded metal of copper of sub- heading 7419.99 from any other good of subheading 7419.99 or from any other sub- heading; or
A change to any other good of subheading 7419.99 from cloth, grill or netting of copper wire or expanded metal of copper of subheading 7419.99; or
A change to copper springs of subheading 7419.99 from any other good of subheading 7419.99 or from any other subheading; or
A change to any other good of subheading 7419.99 from copper springs of subheading 7419.99; or
A change to any other good of subheading 7419.10 through 7419.99 from any other sub- heading, including another subheading within that group.
7501 ................................................... A change to heading 7501 from any other heading. 7502 ................................................... A change to heading 7502 from any other heading. 7503 ................................................... A change to heading 7503 from any other heading. 7504 ................................................... A change to heading 7504 from any other heading. 7505 ................................................... A change to heading 7505 from any other heading. 7506 ................................................... A change to heading 7506 from any other heading; or
A change to foil, not exceeding 0.15 mm in thickness, from any other good of heading 7506, provided that there has been a reduction in thickness of no less than 50 per- cent.
7507.11–7508.90 ............................... A change to subheading 7507.11 through 7508.90 from any other subheading, including another subheading within that group.
7601–7604 ......................................... A change to heading 7601 through 7604 from any other heading, including another heading within that group.
7605 ................................................... A change to heading 7605 from any other heading, except from heading 7604. 7606–7615 ......................................... A change to heading 7606 through 7615 from any other heading, including another
heading within that group.
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7616.10–7616.99 ............................... A change to subheading 7616.10 through 7616.99 from any other subheading, including another subheading within that group.
7801–7802 ......................................... A change to heading 7801 through 7802 from any other heading, including another heading within that group.
7804.11–7804.20 ............................... A change to subheading 7804.11 through 7804.20 from any other subheading, including another subheading within that group; or
A change to any of the following goods classified in subheading 7804.11 through 7804.20, including from materials also classified in subheading 7804.11 through 7804.20: powder except from flakes; flakes except from powder; plates except from sheets or strip; sheets except from plate or strip; strip except from sheets or plate.
7806 ................................................... A change to any of the following goods classified in heading 7806 from materials also classified in heading 7806: tubes except from pipes; pipes except from tubes; tube or pipe fittings except from tubes or pipes; cables/stranded wire/plaited bands; or
A change to lead bars, rods, profiles, or wire of heading 7806 from any other good of heading 7806 or from any other heading; or
A change to any other good of heading 7806 from lead bars, rods, profiles, or wire of heading 7806 or from any other heading.
7901–7905 ......................................... A change to any of the following goods classified in heading 7901 through 7905, includ- ing from materials also classified in heading 7901 through 7905: Matte; unwrought; powder, except from flakes; flakes except from powder; bars except from rods or pro- files; rods except from bars or profiles; profiles except from rods or bars; wire except from rod; plates except from sheets or strip; sheets except from plate or strip; strip ex- cept from sheets or plate; foil except from sheet or strip; or
A change to any other good of heading 7901 through 7905 from any other heading, in- cluding another heading within that group.
7907 ................................................... A change to any of the following goods classified in heading 7907 from materials also classified in heading 7907: tubes except from pipes; pipes except from tubes; tube or pipe fittings except from tubes or pipes; or
A change to tubes, pipes and tube or pipe fittings of heading 7907 from any other good of heading 7907; or
A change to any other good of heading 7907 from tubes, pipes or tube or pipe fittings of heading 7907 or from any other heading.
8001 ................................................... A change to heading 8001 from any other heading. 8002–8003 ......................................... A change to any of the following goods classified in heading 8002 through 8003, from
materials also classified in heading 8002 through 8003: Bars except from rods or pro- files; rods except from bars or profiles; profiles except from rods or bars; wire except from rod; or
A change to heading 8002 through 8003 from any other heading, including another heading within that group.
8007 ................................................... A change to any of the following goods classified in heading 8007 from other materials also classified in heading 8007: Tubes except from pipes; pipes except from tubes; tube or pipe fittings except from tubes or pipes; cables/stranded wire/ plaited bands; plates except from sheets or strip; sheets except from plate or strip; strip except from sheet or plate; or
A change to any of the following goods classified in heading 8007 from other materials also classified in heading 8007: foil from powder or flakes; powder from foil; flakes from foil; or
A change to foil, powder or flakes from any other good of heading 8007 or from any other heading; or
A change to plates, sheet or strip from any other good of heading 8007 or from any other heading; or
A change to any other good of heading 8007 from plates, sheet, strip, foil, powder or flakes of heading 8007 or from any other heading.
Chapter 81 Note: Waste and scrap are products of the country in which they are collected. 8101.10–8101.94 ............................... A change to subheading 8101.10 through 8101.94 from any other subheading, including
another subheading within that group; or A change to any of the following goods classified in subheading 8101.10 through
8101.94 from materials also classified in subheading 8101.10 through 8101.94: Matte; unwrought.
8101.96 .............................................. A change to subheading 8101.96 from any other subheading, except from bars and rods, other than those obtained by simple sintering, profiles, plates, sheets, strip or foil of subheading 8101.99.
8101.99 .............................................. A change to any of the following goods classified in subheading 8101.99, including from materials also classified in subheading 8101.99: Tubes except from pipes; pipes ex- cept from tube; tube or pipe fittings except from tubes or pipes; cables/stranded wire/ plaited bands; bars, other than those obtained simply by sintering, except from rods, other than those obtained simply by sintering, or profiles; rods, other than those ob- tained simply by sintering, except from bars, other than those obtained simply by sin- tering, or profiles; profiles except from rods or bars, other than those obtained simply by sintering; plates except from sheets or strip; sheets except from plate or strip; strip except from sheets or plate; foil except from sheet or strip; or
A change to any other good of subheading 8101.99 from bars or rods, other than those obtained simply by sintering, profiles, plates, sheet, strip or foil or from any other sub- heading.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8102.10–8102.95 ............................... A change to subheading 8102.10 through 8102.95 from any other subheading, including another subheading within that group; or
A change to any of the following goods classified in subheading 8102.10 through 8102.95, including from materials also classified in subheading 8102.10 through 8102.95: Matte; unwrought; bars except from rods or profiles; rods except from bars or profiles; profiles except from rods or bars; plates except from sheets or strip; sheets except from plate or strip; strip except from sheets or plate; foil except from sheet or strip.
8102.96 .............................................. A change to subheading 8102.96 from any other subheading, except from subheading 8102.95.
8102.99 .............................................. A change to subheading 8102.99 from any other subheading. 8103.20–8113.00 ............................... A change to germanium of subheading 8112.92 through 8112.99 from any other good of
subheading 8112.92 through 8112.99 or from any other subheading; or A change to vanadium of subheading 8112.92 through 8112.99 from any other good of
subheading 8112.92 through 8112.99 or from any other subheading; or A change to any other good of subheading 8112.92 through 8112.99 from germanium or
vanadium of subheading 8112.92 through 8112.99 or from any other subheading; or A change to any of the following goods classified in subheading 8103.20 through
8113.00, including from materials also classified in subheading 8103.20 through 8113.00: Matte; unwrought; powder except from flakes; flakes except from powder; bars except from rods or profiles; rods except from bars or profiles; profiles except from rods or bars; wire except from rod; plates except from sheets or strip; sheets ex- cept from plate or strip; strip except from sheets or plate; foil except from sheet or strip; tubes except from pipes; pipes except from tubes; tube or pipe fittings except from tubes or pipes; cables/stranded wire/plaited bands; or
A change to any other good of subheading 8103.20 through 8113.00 from any other sub- heading, including another subheading within that group.
8201.10–8202.40 ............................... A change to subheading 8201.10 through 8202.40 from any other subheading, including another subheading within that group.
8202.91 .............................................. A change to subheading 8202.91 from any other subheading, except from subheading 8202.99.
8202.99 .............................................. A change to subheading 8202.99 from any other heading. 8203.10–8207.90 ............................... A change to subheading 8203.10 through 8207.90 from any other subheading, including
another subheading within that group. 8208–8215 ......................................... A change to heading 8208 through 8215 from any other heading, including another
heading within that group. 8301.10–8301.50 ............................... A change to subheading 8301.10 through 8301.50 from any other subheading, including
another subheading within that group, except from subheading 8301.60 when that change is pursuant to General Rule of Interpretation 2(a).
8301.60–8301.70 ............................... A change to subheading 8301.60 through 8301.70 from any other chapter. 8302.10–8302.60 ............................... A change to subheading 8302.10 through 8302.60 from any other subheading, including
another subheading within that group. 8303–8304 ......................................... A change to heading 8303 through 8304 from any other heading, including another
heading within that group. 8305.10–8305.90 ............................... A change to subheading 8305.10 through 8305.90 from any other subheading, including
another subheading within that group. 8306–8307 ......................................... A change to heading 8306 through 8307 from any other heading, including another
heading within that group. 8308.10–8308.90 ............................... A change to subheading 8308.10 through 8308.90 from any other subheading, including
another subheading within that group. 8309–8310 ......................................... A change to heading 8309 through 8310 from any other heading, including another
heading within that group. 8311.10–8311.90 ............................... A change to subheading 8311.10 through 8311.90 from any other subheading, including
another subheading within that group.
(o) Section XVI: Chapters 84 through 85
8401.10 .............................................. A change to subheading 8401.10 from any other subheading. 8401.20 .............................................. A change to subheading 8401.20 from any other subheading; or
A change to completed machinery and apparatus classified in subheading 8401.20 from parts classified in subheading 8401.20.
8401.30 .............................................. A change to subheading 8401.30 from any other subheading. 8401.40 .............................................. A change to subheading 8401.40 from any other heading. 8402.11–8402.12 ............................... A change to subheading 8402.11 through 8402.12 from any other subheading outside
that group. 8402.19–8402.20 ............................... A change to subheading 8402.19 through 8402.20 from any other subheading, including
another subheading within that group. 8402.90 .............................................. A change to subheading 8402.90 from any other heading, except from heading 7303,
7304, 7305, or 7306 unless the change from these headings involves bending to shape.
8403.10 .............................................. A change to subheading 8403.10 from any other subheading. 8403.90 .............................................. A change to subheading 8403.90 from any other heading. 8404.10–8404.20 ............................... A change to subheading 8404.10 through 8404.20 from any other subheading, including
another subheading within that group.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
8404.90 .............................................. A change to subheading 8404.90 from any other heading. 8405.10 .............................................. A change to subheading 8405.10 from any other subheading. 8405.90 .............................................. A change to subheading 8405.90 from any other heading. 8406.10 .............................................. A change to subheading 8406.10 from any other subheading. 8406.81–8406.82 ............................... A change to subheading 8406.81 through 8406.82 from any other subheading outside
that group. 8406.90 .............................................. A change to subheading 8406.90 from any other heading. 8407 ................................................... A change to heading 8407 from any other heading. 8408 ................................................... A change to heading 8408 from any other heading. 8409.10 .............................................. A change to subheading 8409.10 from any other heading. 8409.91–8409.99 ............................... A change to subheading 8409.91 through 8409.99 from any other heading, except a
change resulting from a simple assembly. 8410.11–8410.13 ............................... A change to subheading 8410.11 through 8410.13 from any other subheading outside
that group. 8410.90 .............................................. A change to subheading 8410.90 from any other heading. 8411.11–8411.82 ............................... A change to subheading 8411.11 through 8411.82 from any other subheading outside
that group. 8411.91–8411.99 ............................... A change to subheading 8411.91 through 8411.99 from any other heading. 8412.10–8412.80 ............................... A change to subheading 8412.10 through 8412.80 from any other subheading, including
another subheading within that group. 8412.90 .............................................. A change to subheading 8412.90 from any other heading. 8413.11–8413.82 ............................... A change to subheading 8413.11 through 8413.82 from any other subheading, including
another subheading within that group. 8413.91 .............................................. A change to subheading 8413.91 from any other heading. 8413.92 .............................................. A change to subheading 8413.92 from any other heading. 8414.10–8414.80 ............................... A change to subheading 8414.10 through 8414.80 from any other subheading, including
another subheading within that group. 8414.90 .............................................. A change to subheading 8414.90 from any other heading. 8415.10–8415.83 ............................... A change to subheading 8415.10 through 8415.83 from any subheading, including an-
other subheading within that group, except a change within that group resulting from a simple assembly.
8415.90 .............................................. A change to subheading 8415.90 from any other subheading, except from heading 7411, 7608, 8414, 8501, or 8535 through 8537 when resulting from a simple assembly.
8416.10–8416.30 ............................... A change to subheading 8416.10 through 8416.30 from any other subheading, including another subheading within that group.
8416.90 .............................................. A change to subheading 8416.90 from any other heading. 8417.10–8417.80 ............................... A change to subheading 8417.10 through 8417.80 from any other subheading, including
another subheading within that group. 8417.90 .............................................. A change to subheading 8417.90 from any other heading. 8418.10–8418.91 ............................... A change to absorption-type electrical refrigerators of subheading 8418.29 from any
other good of subheading 8418.29 or from any other subheading; or A change to any other good of subheading 8418.29 from absorption-type electrical refrig-
erators of subheading 8418.29 or from any other subheading; or A change to heat pumps of subheading 8418.61 from any other subheading, except from
compression type units whose condensers are heat exchangers of subheading 8418.69; or
A change to compression type units of subheading 8418.69 from any other subheading, except from heat pumps of subheading 8418.61 or from any other good of subheading 8418.69; or
A change to other refrigerating or freezing equipment of subheading 8418.69 from any other subheading, except from heat pumps of subheading 8418.61; or
A change to any other good of subheading 8418.69 from compression type units of sub- heading 8418.69 or from any other subheading; or
A change to any other good of subheading 8418.10 through 8418.91 from any other sub- heading, including another subheading within that group.
8418.99 .............................................. A change to subheading 8418.99 from any other heading, except from heading 7303, 7304, 7305, or 7306 unless the change from these headings involves bending to shape.
8419.11–8419.89 ............................... A change to subheading 8419.11 through 8419.89 from any other subheading, including another subheading within that group.
8419.90 .............................................. A change to subheading 8419.90 from any other heading, except from heading 7303, 7304, 7305, or 7306 unless the change from these headings involves bending to shape, and except from heading 8501 when resulting from a simple assembly.
8420.10 .............................................. A change to subheading 8420.10 from any other subheading. 8420.91 .............................................. A change to subheading 8420.91 from any other heading. 8420.99 .............................................. A change to subheading 8420.99 from any other heading, except from heading 8501
when resulting from a simple assembly. 8421.11–8421.39 ............................... A change to subheading 8421.11 through 8421.39 from any other subheading, including
another subheading within that group. 8421.91 .............................................. A change to subheading 8421.91 from any other heading. 8421.99 .............................................. A change to subheading 8421.99 from any other heading. 8422.11–8422.40 ............................... A change to subheading 8422.11 through 8422.40 from any other subheading, including
another subheading within that group.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8422.90 .............................................. A change to subheading 8422.90 from any other heading, except from heading 8501 when resulting from a simple assembly.
8423.10–8423.89 ............................... A change to subheading 8423.10 through 8423.89 from any other subheading, including another subheading within that group.
8423.90 .............................................. A change to subheading 8423.90 from any other heading. 8424.10–8424.89 ............................... A change to subheading 8424.10 through 8424.89 from any other subheading, including
another subheading within that group. 8424.90 .............................................. A change to subheading 8424.90 from any other heading, except from subheading
8414.40 or 8414.80. 8425.11–8430.69 ............................... A change to pit-head winding gears or to winches specially designed for use under-
ground of subheading 8425.31 through 8425.39 from any other good of subheading 8425.31 through 8425.39 or from any other subheading; or
A change to any other good of subheading 8425.31 through 8425.39 from pit-head wind- ing gears or to winches specially designed for use underground of subheading 8425.31 through 8425.39 or from any other subheading; or
A change to mine wagon pushers, locomotive or wagon traversers, wagon tippers and similar railway wagon handling equipment of subheading 8428.90 from any other good of subheading 8428.90 or from any other subheading; or
A change to any other good of subheading 8428.90 from mine wagon pushers, loco- motive or wagon traversers, wagon tippers and similar railway wagon handling equip- ment of subheading 8428.90 or from any other subheading; or
A change to any other good of subheading 8425.11 through 8430.69 from any other sub- heading, including another subheading within that group.
8431 ................................................... A change to heading 8431 from any other heading, except from heading 8501 when re- sulting from a simple assembly.
8432.10–8432.80 ............................... A change to subheading 8432.10 through 8432.80 from any other subheading, including another subheading within that group.
8432.90 .............................................. A change to subheading 8432.90 from any other heading. 8433.11–8433.60 ............................... A change to subheading 8433.11 through 8433.60 from any other subheading, including
another subheading within that group. 8433.90 .............................................. A change to subheading 8433.90 from any other heading, except from heading 8407 or
8408 when resulting from a simple assembly. 8434.10–8434.20 ............................... A change to subheading 8434.10 through 8434.20 from any other subheading, including
another subheading within that group. 8434.90 .............................................. A change to subheading 8434.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8435.10 .............................................. A change to subheading 8435.10 from any other subheading. 8435.90 .............................................. A change to subheading 8435.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8436.10–8436.80 ............................... A change to subheading 8436.10 through 8436.80 from any other subheading, including
another subheading within that group. 8436.91 .............................................. A change to subheading 8436.91 from any other heading. 8436.99 .............................................. A change to subheading 8436.99 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8437.10–8437.80 ............................... A change to subheading 8437.10 through 8437.80 from any other subheading, including
another subheading within that group. 8437.90 .............................................. A change to subheading 8437.90 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8438.10–8438.80 ............................... A change to subheading 8438.10 through 8438.80 from any other subheading, including
another subheading within that group. 8438.90 .............................................. A change to subheading 8438.90 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8439.10–8439.30 ............................... A change to subheading 8439.10 through 8439.30 from any other subheading, including
another subheading within that group. 8439.91 .............................................. A change to subheading 8439.91 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8439.99 .............................................. A change to subheading 8439.99 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8440.10 .............................................. A change to subheading 8440.10 from any other subheading. 8440.90 .............................................. A change to subheading 8440.90 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8441.10–8441.80 ............................... A change to subheading 8441.10 through 8441.80 from any other subheading, including
another subheading within that group. 8441.90 .............................................. A change to subheading 8441.90 from any other heading, except from heading 8407,
8408, or 8501 when resulting from a simple assembly. 8442.30 .............................................. A change to subheading 8442.30 from any other subheading. 8442.40 .............................................. A change to subheading 8442.40 from any other heading, except from heading 8501
when resulting from a simple assembly. 8442.50 .............................................. A change to subheading 8442.50 from any other heading. 8443.11–8443.39 ............................... A change to printing machinery of subheading 8443.11 through 8443.19 from any other
subheading outside that group, except from machines for uses ancillary to printing of subheading 8443.91; or
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
A change to printer units of ADP machines of subheading 8443.31 through 8443.32 from any other good of subheading 8443.31 through 8443.32 or from any other subheading, except from parts and accessories suitable for use solely or principally with the ma- chines of subheading 8443.31 through 8443.32 of subheading 8443.99 when that change is the result of simple assembly, or from subheading 8504.90 or heading 8473, when that change is the result of simple assembly, and except from other units of ADP machines of subheading 8517.62 through 8517.69 or heading 8528, or from sub- heading 8471.60 through 8472.90; or
A change to facsimile machines of subheading 8443.31 through 8443.32 from any other good of subheading 8443.31 through 8443.32 or from any other subheading, except from teleprinters of subheading 8443.32, or from subheading 8443.99 or 8517.70 when the change is the result of a simple assembly, or from subheading 8517.11 through 8517.69; or
A change to teleprinters of subheading 8443.32 from any other good of subheading 8443.32 or from any other subheading, except from facsimile machines of subheading 8443.31 through 8443.32, and except from subheading 8443.99 or 8517.70 when the change is the result of a simple assembly , or from subheading 8517.11 through 8517.69; or
A change to printing machines of subheading 8443.39 from any other subheading, ex- cept from subheading 8443.11 through 8443.39, or from machines for uses ancillary to printing of subheading 8443.91; or
A change to electrostatic photocopying apparatus of subheading 8443.39 from any other good of subheading 8443.39 or from any other subheading; or
A change to other photocopying apparatus of subheading 8443.39 from any other good of subheading 8443.39 or from any other subheading; or
A change to thermo-copying apparatus of subheading 8443.39 from any other good of subheading 8443.39 or from any other subheading.
8443.91 .............................................. A change to machines for uses ancillary to printing from any other good of subheading 8443.91 or from any other subheading, except subheading 8443.11 through 8443.19; or
A change to any other good from any other heading, except from heading 8501 when re- sulting from a simple assembly.
8443.99 .............................................. A change to accessory or auxiliary machines which are intended for attachment to an electrostatic photocopier and which do not operate independently of such photocopier from any other good of subheading 8443.99, provided that change is not the result of a simple assembly, or from any other subheading, except from subheading 8443.31 through 8443.32, 8471.60 through 8472.90, 8504.90 or from heading 8473 or from other units of ADP machines of subheading 8517.62 through 8517.69 or heading 8528 when that change is the result of a simple assembly; or
A change to parts or accessories of printers of subheading 8443.31 or 8443.32 from any other heading except from heading 8414, 8501, 8504, 8534, 8541, or 8542 when re- sulting from a simple assembly, or from heading 8473 or subheading 8517.70; or
A change to parts of facsimile machines from any other good of subheading 8443.99 or from any other subheading, except from parts for teleprinters, including teletypewriters, of subheading 8443.99 or from heading 8517; or
A change to parts for teleprinters, including teletypewriters, from any other good of sub- heading 8443.99 or any other subheading, except from parts of facsimile machines of subheading 8443.99 or from heading 8517; or
A change to parts or accessories of photocopying apparatus incorporating an optical sys- tem or of the contact type or to thermocopying apparatus from any other good of sub- heading 8443.99 or from any other subheading.
8444 ................................................... A change to heading 8444 from any other heading. 8445.11–8447.90 ............................... A change to subheading 8445.11 through 8447.90 from any other subheading outside
that group. 8448.11–8448.19 ............................... A change to subheading 8448.11 through 8448.19 from any other subheading, including
another subheading within that group. 8448.20–8448.59 ............................... A change to subheading 8448.20 through 8448.59 from any other heading, except from
heading 8501 when resulting from a simple assembly. 8449 ................................................... A change to heading 8449 from any other heading. 8450.11–8450.20 ............................... A change to subheading 8450.11 through 8450.20 from any other subheading, including
another subheading within that group. 8450.90 .............................................. A change to subheading 8450.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8451.10–8451.80 ............................... A change to subheading 8451.10 through 8451.80 from any other subheading, including
another subheading within that group. 8451.90 .............................................. A change to subheading 8451.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8452.10–8452.29 ............................... A change to subheading 8452.10 through 8452.29 from any other subheading outside
that group. 8452.30–8452.40 ............................... A change to subheading 8452.30 through 8452.40 from any other subheading, including
another subheading within that group. 8452.90 .............................................. A change to subheading 8452.90 from any other heading, except from heading 8501
when resulting from a simple assembly.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8453.10–8453.80 ............................... A change to subheading 8453.10 through 8453.80 from any other subheading, including another subheading within that group.
8453.90 .............................................. A change to subheading 8453.90 from any other heading, except from heading 8501 when resulting from a simple assembly.
8454.10–8454.30 ............................... A change to subheading 8454.10 through 8454.30 from any other subheading, including another subheading within that group.
8454.90 .............................................. A change to subheading 8454.90 from any other heading. 8455.10–8455.22 ............................... A change to subheading 8455.10 through 8455.22 from any other subheading, including
another subheading within that group. 8455.30 .............................................. A change to subheading 8455.30 from any other heading. 8455.90 .............................................. A change to subheading 8455.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8456.10–8456.90 ............................... A change to subheading 8456.10 through 8456.90 from any other heading, except from
machine-tools for dry-etching patterns on semiconductor materials of subheading 8486.20.
8457.10 .............................................. A change to subheading 8457.10 from any other heading, except from heading 8458 through 8465 when resulting from a simple assembly.
8457.20–8465.99 ............................... A change to subheading 8457.20 through 8465.99 from any other heading, including an- other heading within that group.
8466.10–8466.94 ............................... A change to subheading 8466.10 through 8466.94 from any other heading outside that group, except from heading 8501 when resulting from a simple assembly.
8467.11–8467.89 ............................... A change to subheading 8467.11 through 8467.89 from any other subheading, including another subheading within that group.
8467.91–8467.99 ............................... A change to subheading 8467.91 through 8467.99 from any other heading, except from heading 8407, or except from heading 8501 when resulting from a simple assembly.
8468.10–8468.80 ............................... A change to subheading 8468.10 through 8468.80 from any other subheading, including another subheading within that group.
8468.90 .............................................. A change to subheading 8468.90 from any other heading. 8469.00 .............................................. A change to word-processing machines of heading 8469 from any other good of heading
8469 or from any other subheading, except from automatic typewriters of heading 8469; or
A change to automatic typewriters of heading 8469 from any other good of heading 8469 or from any other subheading, except from word-processing machines of heading 8469; or
A change to other electric typewriters of heading 8469 from any other good of heading 8469 or from any other subheading, except from other non-electric typewriters of head- ing 8469; or
A change to other non-electric typewriters of heading 8469 from any other good of head- ing 8469 or from any other subheading, except from other electric typewriters of head- ing 8469.
8470.10–8471.50 ............................... A change to accounting machines of subheading 8470.90 from any other good of sub- heading 8470.90, provided that the change is not the result of a simple assembly; or
A change to any other good of subheading 8470.90 from accounting machines of sub- heading 8470.90, provided that the change is not the result of a simple assembly; or
A change to analog or hybrid automatic data processing machines of subheading 8471.30 through 8471.50 from any other good of subheading 8471.30 through 8471.50, provided that the change is not the result of a simple assembly; or
A change to any other good of subheading 8471.30 through 8471.50 from analog or hy- brid automatic data processing machines of subheading 8471.30 through 8471.50, pro- vided that the change is not the result of a simple assembly; or
A change to subheading 8470.10 through 8471.50 from any subheading within that group or from heading 8473, provided that the change is not the result of a simple as- sembly; or
A change to subheading 8470.10 through 8471.50 from any other subheading outside that group, except from heading 8473.
8471.60–8472.90 ............................... A change to addressing machines or address plate embossing machines of subheading 8472.90 from any other good of subheading 8472.90, provided that the change is not the result of simple assembly; or
A change to any other good of subheading 8472.90 from addressing machines and ad- dress plate embossing machines of subheading 8472.90, provided that the change is not the result of simple assembly; or
A change to subheading 8471.60 through 8472.90 from any other subheading outside that group, except from subheading 8504.40 or from heading 8473; or
A change to subheading 8471.60 through 8472.90 from any other subheading within that group or from subheading 8504.90 or from heading 8473, provided that the change is not the result of simple assembly.
8473 ................................................... A change to heading 8473 from any other heading, except from heading 8414, 8501, 8504, 8534, 8541, or 8542 when resulting from a simple assembly.
8474.10–8474.80 ............................... A change to subheading 8474.10 through 8474.80 from any other subheading outside that group, except from heading 8501; or
A change to subheading 8474.10 through 8474.80 from any other subheading within that group or from heading 8501, provided that the change is not the result of a simple as- sembly.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
8474.90 .............................................. A change to subheading 8474.90 from any other heading, except from heading 8501 when resulting from a simple assembly.
8475.10 .............................................. A change to subheading 8475.10 from any other subheading. 8475.21–8475.29 ............................... A change to subheading 8475.21 through 8475.29 from any other subheading outside
that group. 8475.90 .............................................. A change to subheading 8475.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8476.21–8476.89 ............................... A change to subheading 8476.21 through 8476.89 from any other subheading outside
that group. 8476.90 .............................................. A change to subheading 8476.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8477.10–8477.80 ............................... A change to subheading 8477.10 through 8477.80 from any other subheading, including
another subheading within that group. 8477.90 .............................................. A change to subheading 8477.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8478.10 .............................................. A change to subheading 8478.10 from any other subheading. 8478.90 .............................................. A change to subheading 8478.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8479.10–8479.89 ............................... A change to subheading 8479.10 through 8479.89 from any other subheading, including
another subheading within that group, except from subheading 8486.10 through 8486.40.
8479.90 .............................................. A change to subheading 8479.90 from any other heading, except from heading 8501 when resulting from a simple assembly.
8480 ................................................... A change to heading 8480 from any other heading. 8481.10–8481.80 ............................... A change to subheading 8481.10 through 8481.80 from any other heading, or from sub-
heading 8481.90 except when resulting from a simple assembly. 8481.90 .............................................. A change to subheading 8481.90 from any other heading. 8482.10–8482.80 ............................... A change to subheading 8482.10 through 8482.80 from any other heading; or
A change to subheading 8482.10 through 8482.80 from any other subheading, including another subheading within that group, except from inner or outer races or rings classi- fied in subheading 8482.99.05, 8482.99.15, or 8482.99.25.
8482.91–8482.99 ............................... A change to subheading 8482.91 through 8482.99 from any other heading. 8483.10 .............................................. A change to subheading 8483.10 from any other subheading. 8483.20 .............................................. A change to subheading 8483.20 from any other subheading, except from subheading
8482.10 through 8482.80. 8483.30–8483.60 ............................... A change to subheading 8483.30 through 8483.60 from any other subheading, including
another subheading within that group. 8483.90 .............................................. A change to subheading 8483.90 from any other heading. 8484.10–8484.90 ............................... A change to subheading 8484.10 through 8484.90 from any other subheading, including
another subheading within that group. 8486.10–8486.40 ............................... A change to other machine-tools for working any material by removal of material, by
electro-chemical, electron beam, ionic-beam or plasma arc process of subheading 8486.10 from any other good of subheading 8486.10 or from any other subheading, except from other machine-tools for working any material by removal of material, by electro-chemical, electron beam, ionic-beam or plasma arc process of subheading 8486.40, or from subheading 8456.90; or
A change to sawing machines of subheading 8486.10 from any other good of sub- heading 8486.10 or from any other subheading, except from subheading 8464.10; or
A change to steam or sand blasting machines and similar jet projecting machines of sub- heading 8486.20 from any other good of subheading 8486.20 or from any other sub- heading, except from steam or sand blasting machines and similar jet projecting ma- chines of subheading 8424.30 or 8486.40; or
A change to ion implanters designed for doping semiconductor materials of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from ion implanters designed for doping semiconductor materials of subheading 8543.10; or
A change to other machine tools for dry-etching patterns on semiconductor materials of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from heading 8456; or
A change to direct write-on-wafer apparatus of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from step or repeat aligners or other apparatus for the projection or drawing of circuit patterns on sen- sitized semiconductor materials of subheading 8486.20 or from subheading 9010.50; or
A change to step aligners of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from direct write-on-wafer apparatus, repeat aligners, or other apparatus for the projection or drawing of circuit patterns on sensitized semiconductor materials of subheading 8486.20 or from subheading 9010.50; or
A change to repeat aligners of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from direct write-on-wafer apparatus, step aligners, or other apparatus for the projection or drawing of circuit patterns on sensitized semiconductor materials of subheading 8486.20 or from subheading 9010.50; or
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
A change to other apparatus for the projection or drawing of circuit patterns on sensitized semiconductor materials of subheading 8486.20 from any other good of subheading 8486.20 or from any other subheading, except from direct write-on-wafer apparatus, step or repeat aligners of subheading 8486.20 or from subheading 9010.50; or
A change to centrifuges of subheading 8486.10 through 8486.20 from any other good of subheading 8486.10 through 8486.20 or from any other subheading, except from sub- heading 8421.19; or
A change to machine tools operated by laser or other light or photon beam process of subheading 8486.10 through 8486.20 from any other good of subheading 8486.10 through 8486.20 or from any other subheading, except from subheading 8456.10; or
A change to grinding or polishing machines of subheading 8486.10 through 8486.20 from any other good of subheading 8486.10 through 8486.20 or from any other subheading, except from subheading 8464.20; or
A change to other electrical machines or apparatus, having individual functions, of sub- heading 8486.10 through 8486.20 from any other good of subheading 8486.10 through 8486.20 or from any other subheading, except from other electrical machines or appa- ratus of subheading 8486.10 through 8486.20, 8486.90, 8543.70, 8542.31 through 8542.39, and except from proximity cards or tags of subheading 8523.52; or
A change to other furnaces or ovens of subheading 8486.10 through 8486.20 from any other good of subheading 8486.10 through 8486.20 or from any other subheading, ex- cept from subheading 8514.30; or
A change to other machine-tools for working stone, ceramics or like mineral materials or for cold working glass of subheading 8486.10 through 8486.30 from any other good of subheading 8486.10 through 8486.30 or from any other subheading, except from other machine-tools for working stone, ceramics or like mineral materials or for cold working glass of subheading 8486.10 through 8486.30, or from subheading 8464.90; or
A change to other mechanical appliances for projecting, dispersing or spraying liquids or powders of subheading 8486.10 through 8486.30 from any other good of subheading 8486.10 through 8486.30 or from any other subheading, except from subheading 8424.89; or
A change to steam or sand blasting machines or similar jet projecting machines of sub- heading 8486.40 from any other good of subheading 8486.40 or from any other sub- heading, except from steam or sand blasting machines and similar jet projecting ma- chines of subheading 8424.30 or 8486.20; or
A change to pneumatic elevators or conveyors of subheading 8486.40 from any other good of subheading 8486.40 or from other subheading, except from subheading 8428.20; or
A change to other belt type continuous-action elevators or conveyors for goods or mate- rials of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8428.33; or
A change to other continuous-action elevators or conveyors for goods or materials of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8428.39; or
A change to other lifting, handling, loading or unloading machinery of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8428.90; or
A change to other machine-tools for working any material by removal of material, by electro-chemical, electron beam, ionic-beam or plasma arc process of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from other machine-tools for working any material by removal of material, by electro-chemical, electron beam, ionic-beam or plasma arc process of subheading 8486.10, or from subheading 8456.90; or
A change to numerically controlled bending, folding, straightening or flattening machines of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8462.21; or
A change to other bending, folding, straightening or flattening machines of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8462.29; or
A change to other machines for working hard materials of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from sub- heading 8465.99; or
A change to injection-molding machines of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading except from subheading 8477.10; or
A change to vacuum molding machines or other thermoforming machines of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8477.40; or
A change to other machinery for molding or otherwise forming of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8477.59; or
A change to parts of welding machines or of electric machines and apparatus for hot spraying of metals or cermets of subheading 8486.40 from any other good of sub- heading 8486.40 or from any other subheading, except from subheading 8515.90; or
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
A change to pattern generating apparatus designed to produce masks or reticles from photoresist coated substrates of subheading 8486.40 from any other good of sub- heading 8486.40 or from any other subheading, except from subheading 9017.20; or
A change to die attach apparatus, tape automated bonders or wire bonders for assembly of semiconductors of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8515.11 through 8515.80; or
A change to deflash machines for cleaning and removing contaminants from the metal leads of semiconductor packages prior to the electroplating process (deflash by chem- ical bath) of subheading 8486.40 from any other good of subheading 8486.40 or from any other subheading, except from subheading 8465.99; or
A change to other machines or mechanical appliances of subheading 8486.10 through 8486.40 from any other good of subheading 8486.10 through 8486.40 or from any other subheading, except from other machines or mechanical appliances of sub- heading 8486.10 through 8486.40, 8479.89, 8508.11 through 8508.19 or 8508.60.
8486.90 .............................................. A change to parts or accessories of drawing, marking-out or mathematical calculating in- struments or to instruments for measuring length, for use in the hand, of subheading 8486.90 from any other good of subheading 8486.90 or from any other subheading, except from heading 9017; or
A change to parts or accessories of apparatus for the projection or drawing of circuit pat- terns on sensitized semiconductor materials or of other apparatus or equipment for photographic laboratories or negatoscopes of subheading 8486.90 from any other good of subheading 8486.90 or from any other subheading, except from heading 9010; or
A change to parts of electrical machines or apparatus, having individual functions, of subheading 8486.90 from any other good of subheading 8486.90 or from any other subheading, except from heading 8543; or
A change to parts of machinery for working rubber or plastics or for the manufacture of products from these materials of subheading 8486.90 from any other good of sub- heading 8486.90 or from any other subheading, except from other parts of machinery for working rubber or plastics or for the manufacture of products from these materials of subheading 8486.90, or from subheading 8477.90, and except from heading 8501 when resulting from a simple assembly; or
A change to tool holders or to self-opening dieheads of subheading 8486.90 from any other good of subheading 8486.90 or from any other subheading, except from sub- heading 8466.10 through 8466.94, work holders, dividing heads or other special at- tachments of subheading 8486.90, and except from heading 8501 when resulting from simple assembly; or
A change to work holders of subheading 8486.90 from any other good of subheading 8486.90, except from tool holders, dividing heads or other special attachments of sub- heading 8486.90, or from any other subheading, except from subheading 8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
A change to dividing heads or to other special attachments for machine tools of sub- heading 8486.90 from any other good of subheading 8486.90, except from tool holders or work holders of subheading 8486.90, or from any other subheading, except from subheading 8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
A change to parts or accessories for machine tools for working stone, ceramics, con- crete, asbestos-cement or like minerals or for cold working glass of subheading 8486.90 from any other good of subheading 8486.90, except from parts or accessories of: • Machine-tools for working any material by the removal of material, by laser or other
light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma arc processes, or
• Machine-tools for drilling, boring, milling, threading or tapping by removing metal, or for deburring, sharpening, grinding, honing, lapping, polishing or otherwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, or
• Machine-tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off, or for working by removing metal or cermets, or
• Machine-tools for working metal by bending, folding, straightening, flattening sheath- ing, punching or notching (including presses), or
• Machine-tools for working metal or cermets, without removing material, or • Machine-tools for working wood, cork, bone, hard rubber, hard plastics or similar
hard materials (including machines for nailing, stapling, gluing or otherwise assembling), or
• Machine-tools for working metal by forging, hammering or die-stamping (including presses), or
• Machining centers, unit construction machines (single station) or multi-station trans- fer machines for working metal, or
• Lathes (including turning centers), for removing metal, or • Presses for metal or working metal carbides,
of subheading 8486.90, or a change from any other subheading, except from subheading 8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
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613
U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
A change to parts or accessories of machine tools (including machines for nailing, sta- pling, gluing or otherwise assembling) for working wood, cork, bone, hard rubber, hard plastics or similar hard materials of subheading 8486.90 from any other good of sub- heading 8486.90, except from parts or accessories of: • Machine-tools for working any material by the removal of material, by laser or other
light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma arc processes, or
• Machine-tools for drilling, boring, milling, threading or tapping by removing metal, or • Machine-tools for deburring, sharpening, grinding, honing, lapping, polishing or oth-
erwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, or
• Machine-tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off, or for working by removing metal or cermets, or
• Machine-tools for working metal by forging, hammering or die-stamping (including presses), or
• Machine-tools for working metal by bending, folding, straightening, flattening sheath- ing, punching or notching (including presses), or
• Machine-tools for working metal or cermets, without removing material, or • Machine-tools for working stone, ceramics, concrete, asbestos-cement or like min-
erals or for cold working glass, or • Machining centers, unit construction machines (single station) or multi-station trans-
fer machines for working metal, or • Lathes (including turning centers), for removing metal, or of presses for working
metal or metal carbides, of subheading 8486.90, or a change from any other subheading, except from subheading
8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
A change to parts or accessories of machine-tools for working any material by the re- moval of material, by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma arc processes, or for drilling, boring, milling, threading or tapping by removing metal, or for deburring, sharpening, grinding, honing, lapping, polishing or otherwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, or for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off, or for work- ing by removing metal or cermets, or to parts and accessories of machining centers, unit construction machines (single station) or multi-station transfer machines for work- ing metal, or of lathes (including turning centers), for removing metal, of subheading 8486.90 from any other good of subheading 8486.90 except from parts or accessories of: • Machine-tools for working metal by forging, hammering or die-stamping, or • Machine-tools for working metal by bending, folding, straightening, flattening sheath-
ing, punching or notching (including presses), or • Machine-tools for working metal or cermets, without removing material, or • Machine-tools for working stone, ceramics, concrete, asbestos-cement or like min-
erals or for cold working glass, or for working wood, cork, bone, hard rubber, hard plas- tics or similar hard materials (including machines for nailing, stapling, gluing or otherwise assembling), or
• Presses for working metal or metal carbides, of subheading 8486.90, or a change from any other subheading, except from subheading
8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
A change to parts or accessories of machine tools (including presses) for working metal by forging, hammering or die-stamping, or for working metal by bending, folding, straightening, flattening sheathing, punching or notching (including presses), or for working metal or cermets, without removing material or to parts or accessories of presses for working metal carbide of subheading 8486.90 from any other good of sub- heading 8486.90, except from parts or accessories of: • Machine-tools for working any material by the removal of material, by laser or other
light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma arc processes, or
• Machine-tools for drilling, boring, milling, threading or tapping by removing metal, or • Machine-tools for deburring, sharpening, grinding, honing, lapping, polishing or oth-
erwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, or
• Machine-tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off, or
• Machine-tools for working by removing metal or cermets, or • Machine-tools for working stone, ceramics, concrete, asbestos-cement or like min-
erals or for cold working glass, or • Machine-tools for working wood, cork, bone, hard rubber, hard plastics or similar
hard materials (including machines for nailing, stapling, gluing or otherwise assembling), or
• Machining centers, unit construction machines (single station) or multi-station trans- fer machines for working metal, or
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
• Lathes (including turning centers), for removing metal, of subheading 8486.90, or a change from any other subheading, except from subheading
8466.10 through 8466.94, and except from heading 8501 when resulting from simple assembly; or
A change to parts suitable for use solely or principally with lifting, handling, loading or unloading machinery from any other good of subheading 8486.90 or from any other subheading, except from subheading 8431.39 and except from heading 8501 when re- sulting from simple assembly.
8487 ................................................... A change to heading 8487 from any other heading. 8501 ................................................... A change to heading 8501 from any other heading. 8502 ................................................... A change to heading 8502 from any other heading. 8503 ................................................... A change to heading 8503 from any other heading. 8504.10–8504.50 ............................... A change to subheading 8504.10 through 8504.50 from any other subheading outside
that group. 8504.90 .............................................. A change to subheading 8504.90 from any other heading. 8505.11–8505.20 ............................... A change to subheading 8505.11 through 8505.20 from any other subheading, including
another subheading within that group. 8505.90 .............................................. A change to electro-magnetic lifting heads of subheading 8505.90 from any other sub-
heading or from any other good of subheading 8505.90; or A change to any other good of subheading 8505.90 from any other heading.
8506.10 .............................................. A change to subheading 8506.10 from any other subheading; or A change to a primary cell or battery of maganese dioxide of an external volume not ex-
ceeding 300 cm3 of subheading 8506.10 from any other good of subheading 8506.10; or
A change to a primary cell or battery of maganese dioxide of an external volume exceed- ing 300 cm3 of subheading 8506.10 from any other good of subheading 8506.10.
8506.30 .............................................. A change to subheading 8506.30 from any other subheading; or A change to a primary cell or battery of mercuric oxide of an external volume not ex-
ceeding 300 cm3 of subheading 8506.30 from any other good of subheading 8506.30; or
A change to a primary cell or battery of mercuric oxide of an external volume exceeding 300 cm3 of subheading 8506.30 from any other good of subheading 8506.30.
8506.40 .............................................. A change to subheading 8506.40 from any other subheading; or A change to a primary cell or battery of silver oxide of an external volume not exceeding
300 cm3 of subheading 8506.40 from any other good of subheading 8506.40; or A change to a primary cell or battery of silver oxide of an external volume exceeding 300
cm3 of subheading 8506.40 from any other good of subheading 8506.40. 8506.50–8506.80 ............................... A change to subheading 8506.50 through 8506.80 from any other subheading outside
that group; or A change to a primary cell or battery of an external volume not exceeding 300 cm3 of
subheading 8506.50 through 8506.80 from any other good of subheading 8506.50 through 8506.80; or
A change to a primary cell or battery of an external volume exceeding 300 cm3 of sub- heading 8506.50 through 8506.80 from any other good of subheading 8506.50 through 8506.80.
8506.90 .............................................. A change to subheading 8506.90 from any other heading. 8507.10–8507.80 ............................... A change to subheading 8507.10 through 8507.80 from any other subheading, including
another subheading within that group. 8507.90 .............................................. A change to subheading 8507.90 from any other heading. 8508.11–8508.60 ............................... A change to subheading 8508.11 through 8508.60 from any other subheading, including
another subheading within that group. 8508.70 .............................................. A change to subheading 8508.70 from any other heading, except from heading 8501
when resulting from simple assembly. 8509.40–8509.80 ............................... A change to floor polishers or to kitchen waste disposers of subheading 8509.80 from
any other good of subheading 8509.80 or from any other subheading; or A change to any other good of subheading 8509.80 from floor polishers or from kitchen
waste disposers of subheading 8509.80 or from any other subheading; or A change to any other good of subheading 8509.40 through 8509.80 from any other sub-
heading, including another subheading within that group. 8509.90 .............................................. A change to subheading 8509.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8510.10–8510.30 ............................... A change to subheading 8510.10 through 8510.30 from any other subheading, including
another subheading within that group. 8510.90 .............................................. A change to subheading 8510.90 from any other heading, except from heading 8501
when resulting from a simple assembly. 8511.10–8511.80 ............................... A change to subheading 8511.10 through 8511.80 from any other subheading, including
another subheading within that group. 8511.90 .............................................. A change to subheading 8511.90 from any other heading. 8512.10–8512.30 ............................... A change to subheading 8512.10 through 8512.30 from any other subheading outside
that group. 8512.40 .............................................. A change to subheading 8512.40 from any other subheading, except from subheading
8512.90 or heading 8501 when resulting from a simple assembly. 8512.90 .............................................. A change to subheading 8512.90 from any other heading. 8513.10 .............................................. A change to subheading 8513.10 from any other subheading.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8513.90 .............................................. A change to subheading 8513.90 from any other heading. 8514.10–8514.40 ............................... A change to subheading 8514.10 through 8514.40 from any other subheading, including
another subheading within that group. 8514.90 .............................................. A change to subheading 8514.90 from any other heading. 8515.11–8515.80 ............................... A change to subheading 8515.11 through 8515.80 from any other subheading outside
that group. 8515.90 .............................................. A change to subheading 8515.90 from any other heading. 8516.10–8516.79 ............................... A change to subheading 8516.10 through 8516.79 from any other subheading, including
another subheading within that group. 8516.80 .............................................. A change to subheading 8516.80 from any other heading. 8516.90 .............................................. A change to subheading 8516.90 from any other heading. 8517.11–8517.69 ............................... A change to subheading 8517.12 from any other subheading, except from other
transceivers, other transmission apparatus or other transmission apparatus incor- porating reception apparatus for radiotelephony or radiotelegraphy of subheading 8517.61 through 8517.69, or 8525.50 through 8525.60; or
A change to other transmission apparatus for radiotelephony or radiotelegraphy or to other transmission apparatus incorporating reception apparatus for radiotelephony or radiotelegraphy of subheading 8517.61 through 8517.69 from any other good of sub- heading 8517.61 through 8517.69 or from any other subheading, except from sub- heading 8517.12, other transmission apparatus for radiotelephony or radiotelegraphy or from other transmission apparatus incorporating reception apparatus for radiotelephony or radiotelegraphy of subheading 8517.61 through 8517.69, or 8525.50 through 8525.60; or
A change to other units of automatic data processing machines of subheading 8517.62 through 8517.69 from any other good of subheading 8517.62 through 8517.69 or from any other subheading, except from subheading 8504.90 or from heading 8473 or sub- heading 8517.70 when the change is the result of simple assembly; or
A change to reception apparatus for radiotelephony or radiotelegraphy of subheading 8517.69 from any other good of subheading 8517.69 or from any other subheading, except from subheading 8527.99, or
A change to any other good of subheading 8517.11 through 8517.69 from any other sub- heading outside that group, except from facsimile machines or teleprinters of sub- heading 8443.31 through 8443.32, and except from subheading 8443.99 or 8517.70 when that change is the result of simple assembly.
8517.70 .............................................. A change to parts or accessories of the machines of heading 8471 not incorporating a cathode ray tube from any other good of heading subheading 8517.70 or from any other subheading, except from heading 8414, 8501, 8504, 8534, 8541, or 8542 when resulting from a simple assembly, and except from heading 8473 or subheading 8443.99; or
A change to antennas or antenna reflectors of a kind suitable for use with apparatus for radiotelephony or radiotelegraphy or to other parts suitable for use solely or principally with apparatus for radiotelephony or radiotelegraphy from any other good of sub- heading 8517.70 or from any other subheading, except from heading 8529; or
A change to any other good of subheading 8517.70 from parts or accessories of the ma- chines of heading 8471 not incorporating a cathode ray tube, or from antennas or an- tenna reflectors of a kind suitable for use with apparatus for radiotelephony or radio- telegraphy, or from other parts suitable for use solely or principally with the apparatus for radiotelephony or radiotelegraphy of subheading 8517.70, or from any other head- ing.
8518.10–8518.50 ............................... A change to subheading 8518.10 through 8518.50 from any other heading. 8518.90 .............................................. A change to subheading 8518.90 from any other heading. 8519.20–8519.30 ............................... A change to coin-or disc-operated record-players of subheading 8519.20 from any other
subheading or from any other good of subheading 8519.20; or A change to turntables (record-decks) of subheading 8519.30 from any other subheading
or from other turntables of subheading 8519.30; or A change to any other good of subheading 8519.20 through 8519.30 from any other sub-
heading, including another subheading within that group. 8519.50 .............................................. A change to subheading 8519.50 from any other subheading. 8519.81 .............................................. A change to transcribing machines from any other subheading or from any other good of
subheading 8519.81; or A change to pocket-size cassette-players from any other subheading or from any other
goods of subheading 8519.81, except from other cassette-type sound reproducing ap- paratus; or
A change to other cassette-type sound reproducing apparatus from any other sub- heading or from any other goods of subheading 8519.81, except from pocket-size cas- sette players; or
A change to digital audio type magnetic tape recorders incorporating sound reproducing apparatus from any other subheading or from any other good of subheading 8519.81, except from other cassette-type magnetic tape recorders incorporating sound repro- ducing apparatus of subheading 8519.81; or
A change to other cassette-type magnetic tape recorders incorporating sound reproduc- ing apparatus from any other subheading or from any other good of subheading 8519.81, except from digital audio type magnetic tape recorders incorporating sound reproducing apparatus of subheading 8519.81; or
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
A change to any other good of subheading 8519.81 from any other subheading or from any other good of subheading 8519.81.
8519.89 .............................................. A change to other sound reproducing apparatus from any other subheading or from any other good of subheading 8519.89, except from other sound reproducing apparatus of subheading 8519.89; or
A change to any other good of subheading 8519.89 from any other good of subheading 8519.89 or from any other subheading.
8519.92–8519.93 ............................... A change to subheading 8519.92 through 8519.93 from any other subheading outside that group.
8519.99 .............................................. A change to subheading 8519.99 from any other subheading. 8521.10–8521.90 ............................... A change to subheading 8521.10 through 8521.90 from any other subheading, including
another subheading within that group. 8522 ................................................... A change to heading 8522 from any other heading. 8523 ................................................... A change to cards incorporating an electronic integrated circuit (‘‘smart’’ cards) of sub-
heading 8523.52 from any other subheading; or A change to proximity tags of subheading 8523.52 from any other subheading or from
any other good of heading 8523, except from subheading 8543.70; or A change to prepared unrecorded media for sound recording or similar recording or other
phenomena, other than products of chapter 37, from records, tapes and other re- corded media for sound or other similarly recorded phenomena, excluding products of chapter 37, or from any other heading; or
A change to records, tapes and other recorded media for sound or other similarly re- corded phenomenon, excluding products of chapter 37, from prepared unrecorded media for sound recording or similar recoding or other phenomena, other than prod- ucts of chapter 37.
8525.50–8525.60 ............................... A change to subheading 8525.50 through 8525.60 from any other subheading outside that group, except from subheading 8517.12, and 8517.61 through 8517.69.
8525.80 .............................................. A change to subheading 8525.80 from any other subheading or from any other good of subheading 8525.80, except a change to video camera recorders from television cam- eras.
8526.10–8526.92 ............................... A change to subheading 8526.10 through 8526.92 from any other subheading, including another subheading within that group.
8527.12–8527.13 ............................... A change to subheading 8527.12 through 8527.13 from any other subheading outside that group.
8527.19–8527.99 ............................... A change to other radio broadcast receivers of subheading 8527.99 from any other good of subheading 8527.99 or from any other subheading; or
A change to any other good of subheading 8527.99 from radio broadcast receivers of subheading 8527.99 or from any other subheading; or
A change to any other good of subheading 8527.19 through 8527.99 from any other sub- heading, including another subheading within that group.
8528.41 .............................................. A change to display units from any other subheading, except from subheading 8471.60 or 8504.40, or from heading 8473 when the change is the result of a simple assembly.
8528.49 .............................................. A change to color video monitors from any other good of subheading 8528.49 or from any other subheading, except from subheading 8540.11 through 8540.12; or
A change to black and white or other monochrome video monitors from any other good of subheading 8528.49 or from any other subheading, except from subheading 8540.11 through 8540.12.
8528.51 .............................................. A change to display units from any other subheading, except from subheading 8471.60 or 8504.40, or from heading 8473 when the change is the result of a simple assembly.
8528.59 .............................................. A change to color video monitors from any other good of subheading 8528.59 or from any other subheading, except from subheading 8540.11 through 8540.12; or
A change to black and white or other monochrome video monitors from any other good of subheading 8528.59 or from any other subheading, except from subheading 8540.11 through 8540.12.
8528.61 .............................................. A change to display units from any other subheading, except from subheading 8471.60 or 8504.40, or from heading 8473 when the change is the result of a simple assembly.
8528.69–8528.73 ............................... A change to subheading 8528.69 through 8528.73 from any other subheading, including another subheading within that group, except from subheading 8540.11 through 8540.12.
8529 ................................................... A change to heading 8529 from any other heading. 8530.10–8530.80 ............................... A change to subheading 8530.10 through 8530.80 from any other subheading, including
another subheading within that group. 8530.90 .............................................. A change to subheading 8530.90 from any other heading. 8531.10–8531.80 ............................... A change to subheading 8531.10 through 8531.80 from any other subheading, including
another subheading within that group, except from subheading 8531.90 when resulting from a simple assembly.
8531.90 .............................................. A change to subheading 8531.90 from any other heading. 8532.10–8532.30 ............................... A change to subheading 8532.10 through 8532.30 from any other subheading, including
another subheading within that group. 8532.90 .............................................. A change to subheading 8532.90 from any other heading. 8533.10–8533.40 ............................... A change to subheading 8533.10 through 8533.40 from any other subheading, including
another subheading within that group. 8533.90 .............................................. A change to subheading 8533.90 from any other heading. 8534 ................................................... A change to heading 8534 from any other heading.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8535.10–8535.90 ............................... A change to subheading 8535.10 through 8535.90 from any other subheading, including another subheading within that group.
8536.10–8536.90 ............................... A change to other articles of plastics of subheading 8536.70 from any other good of sub- heading 8536.70 or from any other subheading, except from heading 3926; or
A change to ceramic ferrules, not exceeding 3 mm in diameter or 25 mm in length, hav- ing a fiber channel opening and/or ceramic mating sleeves of subheading 8536.70 from any other subheading, except from heading 6901 through 6914; or
A change to any other good of subheading 8536.10 through 8536.90 from any other sub- heading, including another subheading within that group.
8537 ................................................... A change to heading 8537 from any other heading. 8538 ................................................... A change to heading 8538 from any other heading. 8539.10–8539.31 ............................... A change to subheading 8539.10 through 8539.31 from any other subheading, including
another subheading within that group. 8539.32–8539.39 ............................... A change to subheading 8539.32 through 8539.39 from any other subheading outside
that group. 8539.41–8539.49 ............................... A change to subheading 8539.41 through 8539.49 from any other subheading outside
that group. 8539.90 .............................................. A change to subheading 8539.90 from any other heading. 8540.11–8540.20 ............................... A change to subheading 8540.11 through 8540.20 from any other subheading, including
another subheading within that group. 8540.40–8540.60 ............................... A change to subheading 8540.40 through 8540.60 from any other subheading outside
that group. 8540.71–8540.89 ............................... A change to subheading 8540.71 through 8540.89 from any other subheading, including
another subheading within that group. 8540.91–8540.99 ............................... A change to subheading 8540.91 through 8540.99 from any other subheading, including
another subheading within that group, except when resulting from a simple assembly. 8541–8542 ......................................... A change to multichips of subheading 8542.31 through 8542.39 from any other good of
subheading 8542.31 through 8542.39 or from any other subheading, except from sub- heading 8523.52 or 8543.70; or
A change to a mounted chip, die or wafer classified in heading 8541 or 8542 from an unmounted chip, die, or wafer classified in heading 8541 or 8542; or
A change to a programmed ‘‘read only memory’’ (ROM) chip from an unprogrammed ‘‘programmable read only memory’’ (PROM) chip; or
A change to any other good of heading 8541 through 8542 from any other subheading, including another subheading within that group.
8543.10 .............................................. A change to subheading 8543.10 from any other subheading, except from ion implanters designed for doping semiconductor material of subheading 8486.20.
8543.20–8543.30 ............................... A change to subheading 8543.20 through 8543.30 from any other subheading, including another subheading within that group.
8543.70 .............................................. A change to subheading 8543.70 from any other subheading, except from proximity cards or tags of subheading 8523.52 and except from other machines or apparatus of subheading 8486.10 through 8486.20.
8543.90 .............................................. A change to subheading 8543.90 from any other heading, except from parts of sub- heading 8486.90.
8544.11–8544.70 ............................... A change to subheading 8544.42 from any other good of subheading 8544.42, except when resulting from simple assembly; or
A change to subheading 8544.49 from any other good of subheading 8544.49, except when resulting from simple assembly; or
A change to subheading 8544.11 through 8544.70 from any other subheading, including another subheading within that group, except when resulting from simple assembly.
8545.11–8547.90 ............................... A change to subheading 8545.11 through 8547.90 from any other subheading, including another subheading within that group.
8548 ................................................... A change to heading 8548 from any other heading.
(p) Section XVII: Chapters 86 through 89
8601 ................................................... A change to heading 8601 from any other heading. 8602 ................................................... A change to heading 8602 from any other heading. 8603–8606 ......................................... A change to heading 8603 through 8606 from any other heading, including another
heading within that group, except from heading 8607 when that change is pursuant to General Rule of Interpretation 2(a).
8607.11 .............................................. A change to subheading 8607.11 from any other subheading, except from subheading 8607.12, and except from subheading 8607.19 when that change is pursuant to Gen- eral Rule of Interpretation 2(a).
8607.12 .............................................. A change to subheading 8607.12 from any other subheading, except from subheading 8607.11, and except from subheading 8607.19 when that change is pursuant to Gen- eral Rule of Interpretation 2(a).
8607.19 .............................................. A change to subheading 8607.19 from any other subheading. 8607.21–8607.99 ............................... A change to subheading 8607.21 through 8607.99 from any other heading, except to
mounted brake linings and pads of subheading 8607.21 through 8607.99 from sub- heading 6813.10.
8608 ................................................... A change to heading 8608 from any other heading. 8609 ................................................... A change to heading 8609 from any other heading, except from heading 7309 through
7311.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
8701–8705 ......................................... A change to heading 8701 through 8705 from any other heading, including another heading within that group, except from heading 8706.
8706 ................................................... A change to heading 8706 from any other heading. 8707 ................................................... A change to heading 8707 from any other heading, except from subheading 8708.29
when that change is pursuant to General Rule of Interpretation 2(a). Note: Any change to heading 8708 from subheading 8709.90, 8716.90, 8431.20, or 8431.49 shall not be considered to sat-
isfy a required change in tariff classification. 8708.10 .............................................. A change to subheading 8708.10 from any other subheading. 8708.29 .............................................. A change to subheading 8708.29 from any other subheading, except from subheading
8708.95. 8708.30 .............................................. A change to mounted brake linings and pads from any other heading, except from brake
linings and pads of subheading 6813.20 or 6813.81; or A change to other brakes or servo-brakes or parts thereof from any other heading.
8708.40 .............................................. A change to parts for power trains of subheading 8708.40 from any other good of sub- heading 8708.40 or from any other subheading, except from parts or accessories of the goods of subheading 8708.50, 8708.80 through 8078.92, or 8708.94 through 8708.99; or
A change to any other good of subheading 8708.40 from parts for power trains of sub- heading 8708.40, except when the change is pursuant to General Rule of Interpreta- tion 2(a), or from any other subheading, except from parts or accessories of the goods of subheading 8708.50, 8708.80 through 8078.92, or 8708.94 through 8708.99, when the change is pursuant to General Rule of Interpretation 2(a).
8708.50 .............................................. A change to non-driving axles or parts thereof from any other good of subheading 8708.50 or from any other subheading; or
A change to half-shafts or drive shafts or to other parts of tractors suitable for agricultural use, half-shafts or drive shafts or other parts of tractors (except road tractors), cast- iron parts, half-shafts or drive shafts, or to other parts for power trains from any other good of subheading 8708.50 or from any other subheading, except from parts or ac- cessories of the goods of subheading 8708.40, 8708.80 through 8708.92, or 8708.94 through 8708.99; or
A change to any other good of subheading 8708.50 from half-shafts or drive shafts or other parts of tractors suitable for agricultural use, half-shafts or drive shafts or other parts of tractors (except road tractors), cast-iron parts, half-shafts or drive shafts or from other parts for power trains of subheading 8708.50, except when the change is pursuant to General Rule of Interpretation 2(a), or from non-driving axles and parts thereof of subheading 8708.50, or from any other subheading, except from parts or ac- cessories of subheading 8708.40, 8708.80 through 8708.92, or 8708.94 through 8708.99, when the change is pursuant to General Rule of Interpretation 2(a).
8708.70 .............................................. A change to subheading 8708.70 from any other subheading. 8708.80 .............................................. A change to parts for suspension systems for tractors suitable for agricultural use, parts
for suspension systems for other tractors (except road tractors), parts of cast iron, or to other parts for suspension systems from any other good of subheading 8708.80 or from any other subheading, except from parts or accessories of the goods of sub- heading 8708.40, 8708.50, 8708.91, 8708.92, or 8708.94 through 8708.99; or
A change to any other good of subheading 8708.80 from parts for suspension systems for tractors suitable for agricultural use, parts for suspension systems for other tractors (except road tractors), parts of cast iron, or from other parts for suspension systems, except when the change is pursuant to General Rule of Interpretation 2(a), or from any other subheading, except from parts or accessories of the goods of subheading 8708.40, 8708.50, 8708.91, 8708.92, or 8708.94 through 8708.99, when the change is pursuant to General Rule of Interpretation 2(a).
8708.91 .............................................. A change to parts of tractors suitable for agricultural use, parts of other tractors (except road tractors), parts of cast-iron or to parts or accessories from any other good of sub- heading 8708.91 or from any other subheading, except from other parts or accessories of subheading 8708.40, 8708.50, 8708.80, 8708.92, or 8708.94 through 8708.99; or
A change to any other good of subheading 8708.91 from parts of tractors suitable for ag- ricultural use, parts of other tractors (except road tractors), parts of cast-iron or from parts or accessories of the goods of subheading 8708.91, when that change is pursu- ant to General Rule of Interpretation 2(a), or from any other subheading, except from parts or accessories of the goods of subheading 8708.40, 8708.50, 8708.80, 8708.92, or 8708.94 through 8708.99, when the change is pursuant to General Rule of Interpre- tation 2(a).
8708.92 .............................................. A change to parts of tractors suitable for agricultural use, parts of other tractors (except road tractors), parts of cast-iron or to other parts or accessories from any other good of subheading 8708.92 or from any other subheading, except from parts or acces- sories of the goods of subheading 8708.40, 8708.50, 8708.80, 8708.91, or 8708.94 through 8708.99; or
A change to any other good of subheading 8708.92 from parts of tractors suitable for ag- ricultural use, parts of other tractors (except road tractors), parts of cast-iron or from other parts or accessories of subheading 8708.92 or from any other subheading.
8708.93 .............................................. A change to subheading 8708.93 from any other subheading.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
8708.94 .............................................. A change to parts for steering systems of tractors suitable for agricultural use, parts for steering systems of other tractors (except road tractors), parts of cast-iron or to other parts for steering systems from any other good of subheading 8708.94 or from any other subheading, except from parts or accessories of the goods of subheading 8708.40, 8708.50, 8708.80, 8708.91, 8708.92, or 8708.95 through 8708.99; or
A change to any other good of subheading 8708.94 from parts for steering systems of tractors suitable for agricultural use, parts for steering systems of other tractors (except road tractors), parts of cast-iron or from other parts for steering systems of subheading 8708.94, except when the change is pursuant to General Rule of Interpretation 2(a), or from any other subheading, except from parts or accessories of the goods of sub- heading 8708.40, 8708.50, 8708.80, 8708.91, 8708.92, or 8708.95 through 8708.99, when that change is pursuant to General Rule of Interpretation 2(a).
8708.95 .............................................. A change to inflators or modules for airbags from any other good of subheading 8708.95 or from any other subheading, except from subheading 8708.29; or
A change to airbags or to other parts of tractors suitable for agricultural use, airbags or to other parts of other tractors (except road tractors), other airbags, or to other parts or accessories from inflators or modules for airbags of subheading 8708.95 or from any other subheading, except from parts or accessories of the goods of subheading 8708.40, 8708.50, 8708.80, 8708.91, 8708.92, 8708.94, or 8708.99.
8708.99 .............................................. A change to subheading 8708.99 from any other subheading, except from parts or ac- cessories of the goods of subheading 8708.40, 8708.50, 8708.80, 8708.91, 8708.92, 8708.94, or 8708.95.
8709.11–8709.19 ............................... A change to subheading 8709.11 through 8709.19 from any other subheading outside that group, except from subheading 8709.90 when that change is pursuant to General Rule of Interpretation 2(a).
8709.90 .............................................. A change to subheading 8709.90 from any other heading, except from subheading 8431.20 or heading 8708.
8710 ................................................... A change to heading 8710 from any other heading. 8711–8713 ......................................... A change to heading 8711 through 8713 from any other heading, including another
heading within that group, except from heading 8714 when that change is pursuant to General Rule of Interpretation 2(a).
8714 ................................................... A change to heading 8714 from any other heading, except from subheading 6813.10 to mounted brake linings or pads classified in heading 8714.
8715 ................................................... A change to heading 8715 from any other heading. 8716.10–8716.80 ............................... A change to subheading 8716.10 through 8716.80 from any other heading, or from sub-
heading 8716.90 except when that change is pursuant to General Rule of Interpreta- tion 2(a).
8716.90 .............................................. A change to subheading 8716.90 from any other heading, except from subheading 8709.90 or 8431.49.
8801–8802 ......................................... A change to heading 8801 through 8802 from any other heading outside that group, ex- cept from heading 8803 when that change is pursuant to General Rule of Interpreta- tion 2(a).
8803.10–8803.90 ............................... A change to subheading 8803.10 through 8803.90 from any other subheading, including another subheading within that group.
8805 ................................................... A change to heading 8805 from any other heading. 8901–8903 ......................................... A change to heading 8901 through 8903 from any other heading outside that group. 8904 ................................................... A change to heading 8904 from any other heading. 8905 ................................................... A change to heading 8905 from any other chapter. . 8906–8907 ......................................... A change to heading 8906 through 8907 from any other heading, including another
heading within that group, except from heading 8903 or 8905. 8908 ................................................... A change to heading 8908 from any other chapter.
(q) Section XVIII: Chapters 90 through 92
9001.10 .............................................. A change to subheading 9001.10 from any other subheading, except from subheading 8544.70 or glass performs of heading 7002.
9001.20–9001.30 ............................... A change to subheading 9001.20 through 9001.30 from any other subheading, including another subheading within that group.
9001.40–9001.90 ............................... A change to subheading 9001.40 through 9001.90 from any other subheading, including another subheading within that group, except from lens blanks of heading 7014 or sub- heading 7015.10.
9002.11–9002.90 ............................... A change to subheading 9002.11 through 9002.90 from any other subheading, including another subheading within that group, except from subheading 9001.90 or from lens blanks of heading 7014.
9003.11–9003.19 ............................... A change to subheading 9003.11 through 9003.19 from any other heading; or A change to subheading 9003.11 through 9003.19 from any other subheading, including
another subheading within that group, except from subheading 9003.90 if the temples or fronts are not domestic materials.
9003.90 .............................................. A change to subheading 9003.90 from any other heading. 9004 ................................................... A change to heading 9004 from any other heading, except from subheading 9001.40 or
9001.50. 9005.10–9005.80 ............................... A change to subheading 9005.10 through 9005.80 from any other subheading, including
another subheading within that group.
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HTSUS Tariff shift and/or other requirements
9005.90 .............................................. A change to subheading 9005.90 from any other heading, except from heading 9001 or 9002.
9006.10–9006.69 ............................... A change to cameras of a kind used for recording documents on microfilm, microfiche or other microforms of subheading 9006.52 through 9006.59 from any other good of sub- heading 9006.52 through 9006.59 or from any other subheading; or
A change to any other good of subheading 9006.52 through 9006.59 from cameras of a kind used for recording documents on microfilm, microfiche or other microforms of sub- heading 9006.52 through 9006.59 or from any other subheading; or
A change to flashbulbs, flashcubes or the like of subheading 9006.69 from any other good of subheading 9006.69 or from any other subheading; or
A change to any other good of subheading 9006.10 through 9006.69 from any other sub- heading, including another subheading within that group.
9006.91–9006.99 ............................... A change to subheading 9006.91 through 9006.99 from any other heading. 9007.11–9007.19 ............................... A change to subheading 9007.11 through 9007.19 from any other subheading, including
another subheading within that group. 9007.20 .............................................. A change to subheading 9007.20 from any other subheading; or
A change to a projector for film of less than 16mm width of subheading 9007.20 from any other projector of subheading 9007.20; or
A change from a projector for film of less than 16mm width of subheading 9007.20 to any other projector of subheading 9007.20.
9007.91–9007.92 ............................... A change to subheading 9007.91 through 9007.92 from any other heading, except from lenses of heading 9002 when resulting from a simple assembly.
9008.10–9008.40 ............................... A change to subheading 9008.10 through 9008.40 from any other subheading, including another subheading within that group.
9008.90 .............................................. A change to subheading 9008.90 from any other heading, except from lenses of heading 9002 when resulting from a simple assembly.
9010.10 .............................................. A change to subheading 9010.10 from any other subheading. 9010.50 .............................................. A change to subheading 9010.50 from any other subheading, except from apparatus for
the projection or drawing of circuit patterns on sensitized semiconductor materials of subheading 8486.20.
9010.60 .............................................. A change to subheading 9010.60 from any other subheading. 9010.90 .............................................. A change to subheading 9010.90 from any other heading, except from parts of apparatus
for the projection or drawing of circuit patterns on sensitized semiconductor materials of subheading 8486.90.
9011.10–9011.80 ............................... A change to subheading 9011.10 through 9011.80 from any other subheading, including another subheading within that group.
9011.90 .............................................. A change to subheading 9011.90 from any other heading. 9012.10 .............................................. A change to subheading 9012.10 from any other subheading, including another sub-
heading within that group. 9012.90 .............................................. A change to subheading 9012.90 from any other heading. 9013.10 .............................................. A change to subheading 9013.10 from any other subheading, except from optical tele-
scopes of subheading 9005.80. 9013.20–9013.80 ............................... A change to subheading 9013.20 through 9013.80 from any other subheading, including
another subheading within that group. 9013.90 .............................................. A change to subheading 9013.90 from any other subheading, except from subheading
9002.19 when resulting from a simple assembly. 9014.10–9014.80 ............................... A change to subheading 9014.10 through 9014.80 from any other subheading, including
another subheading within that group. 9014.90 .............................................. A change to subheading 9014.90 from any other heading. 9015.10–9015.80 ............................... A change to subheading 9015.10 through 9015.80 from any other subheading, including
another subheading within that group. 9015.90 .............................................. A change to subheading 9015.90 from any other heading. 9016 ................................................... A change to heading 9016 from any other heading. 9017.10–9017.80 ............................... A change to subheading 9017.10 through 9017.80 from any other subheading, including
another subheading within that group. 9017.90 .............................................. A change to subheading 9017.90 from any other heading. 9018.11 .............................................. A change to subheading 9018.11 from any other subheading, except to electro-cardio-
graphs from printed circuit assemblies when resulting from a simple assembly. 9018.12–9018.14 ............................... A change to subheading 9018.12 through 9018.14 from any other subheading outside
that group, except from subheading 9018.19. 9018.19 .............................................. A change to subheading 9018.19 from any other subheading, except to patient moni-
toring systems from printed circuit assemblies when resulting from a simple assembly. 9018.20–9018.32 ............................... A change to subheading 9018.20 through 9018.32 from any other subheading, including
another subheading within that group. 9018.39 .............................................. A change to subheading 9018.39 from any other subheading, except from surgical tubing
of subheading 4009.10 when resulting from a simple assembly. 9018.41–9018.50 ............................... A change to subheading 9018.41 through 9018.50 from any other subheading, including
another subheading within that group. 9018.90 .............................................. A change to subheading 9018.90 from any other subheading, except from subheading
9001.90 or synthetic rubber classified in heading 4002 when resulting from a simple assembly; or
A change to defibrillators from printed circuit assemblies, except when resulting from a simple assembly.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
9019.10–9019.20 ............................... A change to subheading 9019.10 through 9019.20 from any other subheading, including another subheading within that group.
9020 ................................................... A change to heading 9020 from any other heading. 9021.10 .............................................. A change to subheading 9021.10 from any other subheading, except from nails classified
in heading 7317 or screws classified in heading 7318 when resulting from a simple as- sembly.
9021.21–9021.90 ............................... A change to subheading 9021.21 through 9021.90 from any other subheading, including another subheading within that group.
9022.12–9022.14 ............................... A change to subheading 9022.12 through 9022.14 from any other subheading outside that group.
9022.19–9022.90 ............................... A change to subheading 9022.19 through 9022.90 from any other subheading, including another subheading within that group.
9023 ................................................... A change to heading 9023 from any other heading. 9024.10–9024.80 ............................... A change to subheading 9024.10 through 9024.80 from any other subheading, including
another subheading within that group. 9024.90 .............................................. A change to subheading 9024.90 from any other heading. 9025.11–9025.80 ............................... A change to subheading 9025.11 through 9025.80 from any other subheading, including
another subheading within that group. 9025.90 .............................................. A change to subheading 9025.90 from any other heading. 9026.10–9026.80 ............................... A change to subheading 9026.10 through 9026.80 from any other subheading, including
another subheading within that group. 9026.90 .............................................. A change to subheading 9026.90 from any other heading. 9027.10–9027.90 ............................... A change to exposure meters of subheading 9027.50 from any other good of subheading
9027.50 or from any other subheading; or A change to any other good of subheading 9027.50 from exposure meters of subheading
9027.50; or A change to any other good of subheading 9027.10 through 9027.90 from any other sub-
heading, including another subheading within that group. 9028.10–9028.30 ............................... A change to subheading 9028.10 through 9028.30 from any other subheading, including
another subheading within that group. 9028.90 .............................................. A change to subheading 9028.90 from any other heading. 9029.10–9029.20 ............................... A change to subheading 9029.10 through 9029.20 from any other subheading, including
another subheading within that group. 9029.90 .............................................. A change to subheading 9029.90 from any other heading. 9030.10 .............................................. A change to subheading 9030.10 from any other subheading. 9030.20 .............................................. A change to cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 from
non-cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 or from any other subheading; or
A change to non-cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 from cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 or from any other subheading, except from subheading 9030.32, 9030.82, 9030.84, 9030.89, or 9030.90.
9030.31 .............................................. A change to subheading 9030.31 from any other subheading. 9030.32 .............................................. A change to subheading 9030.32 from any other subheading, except from non-cathode
ray tube oscilloscopes or oscillographs of subheading 9030.20, or from subheading 9030.82 or 9030.84.
9030.33 .............................................. A change to subheading 9030.33 from any other subheading, except from subheading 9030.39.
9030.39 .............................................. A change to subheading 9030.39 from any other subheading, except from non-cathode ray tube oscilloscopes or oscillographs of subheading 9030.20, or from subheading 9030.32, 9030.82, or 9030.84.
9030.40 .............................................. A change to subheading 9030.40 from any other subheading. 9030.82–9030.84 ............................... A change to subheading 9030.82 through 9030.84 from any other subheading outside
that group, except from other instruments or apparatus with a recording device of sub- heading 9030.20, 9030.32 or 9030.39.
9030.89 .............................................. A change to subheading 9030.89 from any other subheading, except from non-cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 or from subheading 9030.90.
9030.90 .............................................. A change to subheading 9030.90 from any other subheading, except from non-cathode ray tube oscilloscopes or oscillographs of subheading 9030.20 or from subheading 9030.89.
9031.10–9031.20 ............................... A change to subheading 9031.10 through 9031.20 from any other subheading, including another subheading within that group.
9031.41–9031.49 ............................... A change to profile projectors of subheading 9031.49 from any other good of subheading 9030.49 or from any other subheading; or
A change to any other good of subheading 9031.49 from a profile projector of sub- heading 9031.49 or from any other subheading, except from subheading 9031.41; or
A change to any other good of subheading 9030.41 through 9030.49 from any other sub- heading outside that group.
9031.80 .............................................. A change to subheading 9031.80 from any other subheading. 9031.90 .............................................. A change to subheading 9031.90 from any other heading. 9032.10–9032.89 ............................... A change to subheading 9032.10 through 9032.89 from any other subheading, including
another subheading within that group.
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19 CFR Ch. I (4–1–12 Edition)§ 102.20
HTSUS Tariff shift and/or other requirements
9032.90 .............................................. A change to subheading 9032.90 from any other subheading, except from heading 8537 when resulting from a simple assembly.
9033 ................................................... A change to heading 9033 from any other heading. Chapter 91 Note: The country of origin of goods classified in subheading 9113.90.40 shall be determined under the provi-
sions of § 102.21. 9101–9107 ......................................... A change to heading 9101 through 9107 from any other heading outside that group, ex-
cept from heading 9108 through 9110; or A change to heading 9101 through 9107 from complete movements, unassembled, clas-
sified in subheading 9110.11 or 9110.90, or from rough movements classified in sub- heading 9110.19 or 9110.90.
9108–9109 ......................................... A change to heading 9108 through 9109 from any other heading outside that group, ex- cept from heading 9110; or
A change to heading 9108 through 9109 from complete movements, unassembled, clas- sified in subheading 9110.11 or 9110.90, or from rough movements classified in sub- heading 9110.19 or 9110.90.
9110 ................................................... A change to heading 9110 from any other heading, except from subheading 9114.90. 9111.10–9111.80 ............................... A change to subheading 9111.10 through 9111.80 from any other subheading outside
that group, except from subheading 9111.90 when that change is pursuant to General Rule of Interpretation 2(a).
9111.90 .............................................. A change to subheading 9111.90 from any other heading. 9112.20 .............................................. A change to subheading 9112.20 from any other subheading, except from subheading
9112.90 when that change is pursuant to General Rule of Interpretation 2(a). 9112.90 .............................................. A change to subheading 9112.90 from any other heading. 9113 ................................................... A change to heading 9113 from any other heading. 9114 ................................................... A change to heading 9114 from any other heading. 9201–9208 ......................................... A change to keyboard pipe organs, harmoniums or other similar keyboard instruments
with free metal reeds of subheading 9205.90 from any other good of subheading 9205.90 or from any other subheading, except from heading 9209 when that change is pursuant to General Rule of Interpretation 2(a); or
A change to accordions and similar instruments, or mouth organs of subheading 9205.90 from any other good of subheading 9205.90 or from any other subheading, except from heading 9209 when that change is pursuant to General Rule of Interpretation 2(a); or
A change to any other good of subheading 9205.90 from keyboard pipe organs, harmo- niums and other similar keyboard instruments with free metal reeds, accordions and similar instruments, or mouth organs of subheading 9205.90 or from any other sub- heading, except from heading 9209 when that change is pursuant to General Rule of Interpretation 2(a); or
A change to any other good of heading 9201 through 9208 from any other heading, in- cluding another heading within that group, except from heading 9209 when that change is pursuant to General Rule of Interpretation 2(a).
9209 ................................................... A change to heading 9209 from any other heading.
(r) Section XIX: Chapter 93
9301–9304 ......................................... A change to heading 9301 through 9304 from any other heading, including another heading within that group, except from heading 9305 when that change is pursuant to General Rule of Interpretation 2(a).
9305 ................................................... A change to heading 9305 from any other heading. 9306 ................................................... A change to heading 9306 from any other heading. 9307 ................................................... A change to heading 9307 from any other heading.
(s) Section XX: Chapters 94 through 96
Chapter 94 Note: For a good classifiable in subheadings 9404.30 through 9404.90 which does not meet the appropriate tariff shift rule specified for those subheadings, the country of origin is the country where all cutting and sewing operations required to form the outer shell were performed. If all cutting and sewing operations required to form the outer shell were not performed in a single country, the country of origin will be the single country where the component of the outer shell which determines the classification of that good was produced. If a single country did not produce a component of the outer shell which determines the classification of that good, then the country of origin will be the country in which the good last underwent a substantial as- sembly process. Notwithstanding the foregoing provisions of this Note, the country of origin of goods classified in subheadings 9404.90.10 and 9404.90.80 through 9404.90.95 shall be determined under the provisions of § 102.21. 9401.10–9401.80 ............................... A change to subheading 9401.51 through 9401.59 from any subheading outside that
group, except from subheading 9401.10 through 9401.80, subheading 9403.10 through 9403.89, and except from subheading 9401.90 or 9403.90 when that change is pursu- ant to General Rule of Interpretation 2(a); or
A change to subheading 9401.10 through 9401.80 from any other subheading outside that group, except from subheading 9403.10 through 9403.89, and except from sub- heading 9401.90 or 9403.90, when that change is pursuant to General Rule of Inter- pretation 2(a).
9401.90 .............................................. A change to subheading 9401.90 from any other heading, except from subheading 9403.90.
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U.S. Customs and Border Protection, DHS; Treasury § 102.20
HTSUS Tariff shift and/or other requirements
9402 ................................................... A change to heading 9402 from any other heading, except from heading 9401.10 through 9401.80 or subheading 9403.10 through 9403.89, and except from subheading 9401.90 or 9403.90 when that change is pursuant to General Rule of Interpretation 2(a).
9403.10–9403.89 ............................... A change to subheading 9403.10 through 9403.89 from any other subheading outside that group, except from subheading 9401.10 through 9403.89, and except from sub- heading 9401.90 or 9403.90, when that change is pursuant to General Rule of Inter- pretation 2(a).
9403.90 .............................................. A change to subheading 9403.90 from any other heading, except from subheading 9401.90.
9404.10–9404.29 ............................... A change to subheading 9404.10 through 9404.29 from any other heading. 9404.30–9404.90 ............................... A change to down- and/or feather-filled goods classified in subheading 9404.30 through
9404.90 from any other heading; or For all other goods classified in subheading 9404.30 through 9404.90, a change from
any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809 through 5810, 5901, 5903 through 5904, 5906 through 5907, or 6001 through 6006, or subheading 6307.90.
9405.10–9405.60 ............................... A change to subheading 9405.10 through 9405.60 from any other subheading outside that group, except from subheading 9405.91 through 9405.99 when that change is pur- suant to General Rule of Interpretation 2(a).
9405.91–9405.99 ............................... A change to subheading 9405.91 through 9405.99 from any other heading. 9406 ................................................... A change to heading 9406 from any other heading. 9503 ................................................... A change to wheeled toys designed to ridden by children or to dolls’ carriages or dolls’
strollers, parts or accessories thereof from any other chapter, except from heading 8714 when that change is pursuant to General Rule of Interpretation 2(a); or
A change to dolls, whether or not dressed, from any other subheading or from any other good of heading 9503, except from skins for stuffed dolls of heading 9503; or
A change to parts or accessories of dolls representing only human beings from any other heading or from any other good of heading 9503, except from toys representing ani- mals or non-human creatures of heading 9503; or
A change to electric trains, including tracks, signals and other accessories or parts there- of from any other good of heading 9503 or from any other subheading; or
A change to reduced-size (‘‘scale’’) model assembly kits, (excluding electric trains) or to parts or accessories thereof, from any other good of heading 9503 or from any other subheading; or
A change to other construction sets and constructional toys or to parts or accessories thereof from any other good of heading 9503 or from any other subheading; or
A change to toys representing animals or non-human creatures or to parts or acces- sories thereof from wheeled toys designed to be ridden by children, dolls’ carriages, or dolls representing only human beings of heading 9503 or from any other heading; or
A change to toys representing animals or non-human creatures from parts or acces- sories of toys representing animals or non-human creatures of heading 9503; or
A change to parts or accessories of toys representing animals or non-human creatures from wheeled toys designed to be ridden by children, dolls’ carriages, or dolls’ strollers of heading 9503 or from any other heading, except from heading 6111 or 6209; or
A change to toy musical instruments and apparatus from any other good of heading 9503 or from any other subheading; or
A change to puzzles from any other good of heading 9503 or from any other sub- heading; or
A change to other toys, put up in sets or outfits, or to other toys and models, incor- porating a motor, or to other toys from any other chapter.
9504.10–9506.29 ............................... A change to subheading 9504.10 through 9506.29 from any other subheading, including another subheading within that group.
9506.31 .............................................. A change to subheading 9506.31 from any other subheading, except from subheading 9506.39.
9506.32–9506.99 ............................... A change to subheading 9506.32 through 9506.99 from any other subheading, including another subheading within that group.
9507.10–9507.30 ............................... A change to subheading 9507.10 through 9507.30 from any other chapter. 9507.90 .............................................. A change to subheading 9507.90 from any other subheading, except from heading 5004
through 5006, 5404, 5406, or 5603, or from subheading 5402.11 through 5402.49. 9508 ................................................... A change to heading 9508 from any other heading.
Chapter 96 Note: The country of origin of goods classified in subheading 9612.10.9010 shall be determined under the provi- sions of § 102.21. 9601 ................................................... A change to heading 9601 from any other heading. 9602 ................................................... A change to heading 9602 from any other heading. 9603 ................................................... A change to heading 9603 from any other heading. 9604–9605 ......................................... A change to heading 9604 through 9605 from any other heading, including another
heading within that group. 9606.10 .............................................. A change to subheading 9606.10 from any other heading. 9606.21–9606.29 ............................... A change to subheading 9606.21 through 9606.29 from any other heading. 9606.30 .............................................. A change to subheading 9606.30 from any other heading.
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19 CFR Ch. I (4–1–12 Edition)§ 102.21
HTSUS Tariff shift and/or other requirements
9607.11–9607.19 ............................... A change to subheading 9607.11 through 9607.19 from any other subheading, except from subheading 9607.20 when that change is pursuant to General Rule of Interpreta- tion 2(a).
9607.20 .............................................. A change to subheading 9607.20 from any other subheading. 9608.10–9608.40 ............................... A change to subheading 9608.10 through 9608.40 from any other subheading, including
another subheading within that group, except from subheading 9608.60. 9608.50 .............................................. A change to subheading 9608.50 from any other heading. 9608.60–9608.99 ............................... A change to subheading 9608.60 through 9608.99 from any other subheading, including
another subheading within that group. 9609.10 .............................................. A change to subheading 9609.10 from any other subheading. 9609.20 .............................................. A change to subheading 9609.20 from any other chapter. 9609.90 .............................................. A change to subheading 9609.90 from any other chapter. 9610–9612 ......................................... A change to heading 9610 through 9612 from any other heading, including another
heading within that group. 9613.10–9613.20 ............................... A change to subheading 9613.10 through 9613.20 from any other subheading outside
that group. 9613.30–9613.80 ............................... A change to subheading 9613.30 through 9613.80 from any other subheading, including
another subheading within that group. 9613.90 .............................................. A change to subheading 9613.90 from any other heading. 9614.00 .............................................. A change to pipes or pipe bowls from any other subheading, except to roughly shaped
blocks of wood or root from heading 4407; or A change to articles other than pipes or pipe bowls from any other heading.
9615.11–9615.90 ............................... A change to subheading 9615.11 through 9615.90 from any other subheading, including another subheading within that group.
9616–9618 ......................................... A change to heading 9616 through 9618 from any other heading, including another heading within that group.
(t) Section XXI: Chapter 97
9701.10–9701.90 ............................... A change to subheading 9701.10 through 9701.90 from any other subheading, including another subheading within that group.
9702–9706 ......................................... A change to heading 9702 through 9706 from any other heading, including another heading within that group.
[T.D. 96–48, 61 FR 28957, June 6, 1996; 61 FR 33846, July 1, 1996; 61 FR 41737, Aug. 12, 1996; T.D. 99–64, 64 FR 43266, Aug. 10, 1999; CBP Dec. 03–11, 68 FR 43631, July 24, 2003; CBP Dec. 08–42, 73 FR 64519, Oct. 30, 2008; 76 FR 54696, Sept. 2, 2011]
§ 102.21 Textile and apparel products.
(a) Applicability. Except for purposes of determining whether goods originate in Israel or are the growth, product, or manufacture of Israel, and except as otherwise provided for by statute, the provisions of this section will control the determination of the country of or- igin of imported textile and apparel products for purposes of the Customs laws and the administration of quan- titative restrictions. The provisions of this section will apply to goods en- tered, or withdrawn from warehouse, for consumption on or after July 1, 1996.
(b) Definitions. The following terms will have the meanings indicated when used in this section:
(1) Country of origin. The term coun- try of origin means the country, terri- tory, or insular possession in which a good originates or of which a good is the growth, product, or manufacture.
(2) Fabric-making process. A fabric- making process is any manufacturing operation that begins with polymers, fibers, filaments (including strips), yarns, twine, cordage, rope, or fabric strips and results in a textile fabric.
(3) Knit to shape. The term knit to shape applies to any good of which 50 percent or more of the exterior surface area is formed by major parts that have been knitted or crocheted directly to the shape used in the good, with no consideration being given to patch pockets, appliques, or the like. Minor cutting, trimming, or sewing of those major parts will not affect the deter- mination of whether a good is ‘‘knit to shape.’’
(4) Major parts. The term major parts means integral components of a good but does not include collars, cuffs, waistbands, plackets, pockets, linings, paddings, trim, accessories, or similar parts.
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U.S. Customs and Border Protection, DHS; Treasury § 102.21
(5) Textile or apparel product. A textile or apparel product is any good classifi- able in Chapters 50 through 63, Har- monized Tariff Schedule of the United States (HTSUS), and any good classifi- able under one of the following HTSUS headings or subheadings:
3005.90 3921.12.15 3921.13.15 3921.90.2550 4202.12.40–80 4202.22.40–80 4202.32.40–95 4202.92.05 4202.92.15–30 4202.92.60–90 6405.20.60 6406.10.77 6406.10.90 6406.99.15
6501 6502 6504 6505.90 6601.10–99 7019.19.15 7019.19.28 7019.40–59 8708.21 8804 9113.90.40 9404.90 9612.10.9010
(6) Wholly assembled. The term ‘‘wholly assembled’’ when used with reference to a good means that all components, of which there must be at least two, preexisted in essentially the same condition as found in the finished good and were combined to form the finished good in a single country, terri- tory, or insular possession. Minor at- tachments and minor embellishments (for example, appliques, beads, span- gles, embroidery, buttons) not appre- ciably affecting the identity of the good, and minor subassemblies (for ex- ample, collars, cuffs, plackets, pock- ets), will not affect the status of a good as ‘‘wholly assembled’’ in a single country, territory, or insular posses- sion.
(c) General rules. Subject to para- graph (d) of this section, the country of origin of a textile or apparel product will be determined by sequential appli- cation of paragraphs (c) (1) through (5) of this section and, in each case where appropriate to the specific context, by application of the additional require- ments or conditions of §§ 102.12 through 102.19 of this part.
(1) The country of origin of a textile or apparel product is the single coun- try, territory, or insular possession in which the good was wholly obtained or produced.
(2) Where the country of origin of a textile or apparel product cannot be de- termined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or
insular possession in which each for- eign material incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section.
(3) Where the country of origin of a textile or apparel product cannot be de- termined under paragraph (c) (1) or (2) of this section:
(i) If the good was knit to shape, the country of origin of the good is the sin- gle country, territory, or insular pos- session in which the good was knit; or
(ii) Except for fabrics of chapter 59 and goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, terri- tory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.
(4) Where the country of origin of a textile or apparel product cannot be de- termined under paragraph (c) (1), (2) or (3) of this section, the country of origin of the good is the single country, terri- tory, or insular possession in which the most important assembly or manufac- turing process occurred.
(5) Where the country of origin of a textile or apparel product cannot be de- termined under paragraph (c) (1), (2), (3) or (4) of this section, the country of origin of the good is the last country, territory, or insular possession in which an important assembly or manu- facturing process occurred.
(d) Treatment of sets. Where a good classifiable in the HTSUS as a set in- cludes one or more components that are textile or apparel products and a single country of origin for all of the components of the set cannot be deter- mined under paragraph (c) of this sec- tion, the country of origin of each com- ponent of the set that is a textile or ap- parel product will be determined sepa- rately under paragraph (c) of this sec- tion.
(e) Specific rules by tariff classification. (1) The following rules will apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
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19 CFR Ch. I (4–1–12 Edition)§ 102.21
HTSUS Tariff shift and/or other requirements
3005.90 ........................... If the good contains pharmaceutical substances, a change to subheading 3005.90 from any other heading; or If the good does not contain pharmaceutical substances, a change to subheading 3005.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5601 through 5603, 5801 through 5804, 5806, 5809, 5903, 5906 through 5907, and 6001 through 6006.
3921.12.15 ...................... A change to subheading 3921.12.15 from any other heading. 3921.13.15 ...................... A change to subheading 3921.13.15 from any other heading. 3921.90.2550 .................. A change to subheading 3921.90.2550 from any other heading. 4202.12.40–4202.12.80 .. A change to subheading 4202.12.40 through 4202.12.80 from any other heading, provided that the
change is the result of the good being wholly assembled in a single country, territory, or insular possession.
4202.22.40–4202.22.80 .. A change to subheading 4202.22.40 through 4202.22.80 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
4202.32.40–4202.32.95 .. A change to subheading 4202.32.40 through 4202.32.95 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
4202.92.05 ...................... A change to subheading 4202.92.05 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory or insular possession.
4202.92.15–4202.92.30 .. A change to subheading 4202.92.15 through 4202.92.30 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
4202.92.60–4202.92.90 .. A change to subheading 4202.92.60 through 4202.92.90 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
5001–5002 ...................... A change to heading 5001 through 5002 from any other chapter. 5003 ................................ A change to heading 5003 from any other heading, provided that the change is the result of
garnetting. If the change to heading 5003 is not the result of garnetting, the country of origin of the good is the country of origin of the good prior to its becoming waste.
5004–5006 ...................... (1) If the good is of staple fibers, a change to heading 5004 through 5006 from any heading outside that group, provided that the change is the result of a spinning process.
(2) If the good is of filaments, a change to heading 5004 through 5006 from any heading outside that group, provided that the change is the result of an extrusion process.
5007 ................................ (1) A change from greige fabric of heading 5007 to finished fabric of heading 5007 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5007 from any other heading, provided that the change is the result of a fabric-making process.
5101–5103 ...................... A change to heading 5101 through 5103 from any other chapter. 5104 ................................ A change to heading 5104 from any other heading. 5105 ................................ A change to heading 5105 from any other chapter. 5106–5110 ...................... A change to heading 5106 through 5110 from any heading outside that group, provided that the
change is the result of a spinning process. 5111–5113 ...................... A change to heading 5111 through 5113 from any heading outside that group, provided that the
change is the result of a fabric-making process. 5201 ................................ A change to heading 5201 from any other chapter. 5202 ................................ A change to heading 5202 from any other heading, provided that the change is the result of
garnetting. If the change to heading 5202 is not the result of garnetting, the country of origin of the good is the country of origin of the good prior to its becoming waste.
5203 ................................ A change to heading 5203 from any other chapter. 5204–5207 ...................... A change to heading 5204 through 5207 from any heading outside that group, provided that the
change is the result of a spinning process. 5208–5212 ...................... (1) A change from greige fabric of heading 5208 through 5212 to finished fabric of heading 5208
through 5212 by both dyeing and printing when accompanied by two or more of the following fin- ishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5208 through 5212 from any heading outside that group, provided that the change is the result of a fabric-mak- ing process.
5301–5305 ...................... (1) Except for waste, a change to heading 5301 through 5305 from any other chapter. (2) For waste, a change to heading 5301 through 5305 from any heading outside that group, pro-
vided that the change is the result of garnetting. If the change is not the result of garnetting, the country of origin of the good is the country of origin of the good prior to its becoming waste.
5306–5307 ...................... A change to heading 5306 through 5307 from any heading outside that group, provided that the change is the result of a spinning process.
5308 ................................ (1) Except for paper yarns, a change to heading 5308 from any other heading, provided that the change is the result of a spinning process.
(2) For paper yarns, a change to heading 5308 from any other heading, except from heading 4707, 4801 through 4806, 4811, and 4818.
5309–5311 ...................... (1) A change from greige fabric of heading 5309 through 5311 to finished fabric of heading 5309 through 5311 by both dyeing and printing when accompanied by two or more of the following fin- ishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
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(2)If the country of origin cannot be determined under (1) above, a change to heading 5309 through 5311 from any heading outside that group, provided that the change is the result of a fabric-mak- ing process.
5401–5406 ...................... A change to heading 5401 through 5406 from any other heading, provided that the change is the re- sult of an extrusion process.
5407–5408 ...................... (1) A change from greige fabric of heading 5407 through 5408 to finished fabric of heading 5407 through 5408 by both dyeing and printing when accompanied by two or more of the following fin- ishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5407 through 5408 from any heading outside that group, provided that the change is the result of a fabric-mak- ing process.
5501–5502 ...................... A change to heading 5501 through 5502 from any other chapter, provided that the change is the re- sult of an extrusion process.
5503–5504 ...................... A change to heading 5503 through 5504 from any other chapter, except from Chapter 54. 5505 ................................ A change to heading 5505 from any other heading, provided that the change is the result of
garnetting. If the change is not the result of garnetting, the country of origin of the good is the country of origin of the good prior to its becoming waste.
5506–5507 ...................... A change to heading 5506 through 5507 from any other chapter, except from Chapter 54. 5508–5511 ...................... A change to heading 5508 through 5511 from any heading outside that group, provided that the
change is the result of a spinning process. 5512–5516 ...................... (1) A change from greige fabric of heading 5512 through 5516 to finished fabric of heading 5512
through 5516 by both dyeing and printing when accompanied by two or more of the following fin- ishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5512 through 5516 from any heading outside that group, provided that the change is the result of a fabric-mak- ing process.
5601 ................................ (1) A change to wadding of heading 5601 from any other heading, except from heading 5105, 5203, and 5501 through 5507.
(2) A change to flock, textile dust, mill neps, or articles of wadding, of heading 5601 from any other heading or from wadding of heading 5601.
5602–5603 ...................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5602 through 5603 to finished fabric of heading 5602 through 5603 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5602 through 5603 from any heading outside that group, provided that the change is the result of a fabric-mak- ing process.
5604 ................................ (1) If the textile component is of continuous filaments, including strips, a change of those filaments, including strips, to heading 5604 from any other heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 through 5502, and provided that the change is the result of an ex- trusion process.
(2) If the textile component is of staple fibers, a change of those fibers to heading 5604 from any other heading, except from heading 5004 through 5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spin- ning process.
5605–5606 ...................... If the good is of continuous filaments, including strips, a change of those filaments, including strips, to heading 5605 through 5606 from any other heading, except from heading 5001 through 5007, 5401 through 5408, and 5501 through 5502, and provided that the change is the result of an ex- trusion process; or
If the good is of staple fibers, a change of those fibers to heading 5605 through 5606 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.
5607 ................................ If the good is of continuous filaments, including strips, a change of those filaments, including strips, to heading 5607 from any other heading, except from heading 5001 through 5007, 5401 through 5406, and 5501 through 5511, and provided that the change is the result of an extrusion process; or
If the good is of staple fibers, a change of those fibers to heading 5607 from any other heading, ex- cept from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.
5608 ................................ (1)(a) Except for netting of wool or of fine animal hair, a change from greige netting of heading 5608 to finished netting of heading 5608 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(1)(b) If the country of origin cannot be determined under (1)(a) above, a change to netting of head- ing 5608 from any other heading, except from heading 5804, and provided that the change is the result of a fabric-making process.
(2) A change to fishing nets or other made up nets of heading 5608: (a) If the good does not contain nontextile attachments, from any other heading, except from heading
5804 and 6002 through 6006, and provided that the change is the result of a fabric-making proc- ess; or
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(b) If the good contains nontextile attachments, from any heading, including a change from another good of heading 5608, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
5609 ................................ (1) If of continuous filaments, including strips, the country of origin of a good classifiable under head- ing 5609 is the country, territory, or insular possession in which those filaments, including strips, were extruded.
(2) If of staple fibers, the country of origin of a good classifiable under heading 5609 is the country, territory, or insular possession in which those fibers were spun into yarns.
5701–5705 ...................... A change to heading 5701 through 5705 from any other chapter. 5801–5803 ...................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5801
through 5803 to finished fabric of heading 5801 through 5803 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5801 through 5803 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and 6002 through 6006, and provided that the change is the result of a fabric-making proc- ess.
5804.10 ........................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of subheading 5804.10 to finished fabric of subheading 5804.10 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to subheading 5804.10 from any other heading, except from heading 5608, and provided that the change is the result of a fabric-making process.
5804.21–5804.30 ............ (1) Except for lace of wool or of fine animal hair, a change from greige lace of subheading 5804.21 through 5804.30 to finished lace of subheading 5804.21 through 5804.30 by both dyeing and print- ing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to subheading 5804.21 through 5804.30 from any other heading, provided that the change is the result of a fabric-making process.
5805 ................................ A change to heading 5805 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, and 5512 through 5516, and provided that the change is the result of a fabric-making process.
5806 ................................ (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5806 to finished fabric of heading 5806 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiff- ening, weighting, permanent embossing, or moireing; or
(2) If the country of origin cannot be determined under (1) above, a change to heading 5806 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, and 5801 through 5803, and provided that the change is the result of a fabric-making process.
5807 ................................ The country of origin of a good classifiable under heading 5807 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
5808.10 ........................... (1) If the good is of continuous filaments, including strips, a change of those filaments, including strips, to subheading 5808.10 from any other heading, except from heading 5001 through 5007, 5401 through 5406, 5501 through 5502, and 5604 through 5607, and provided that the change is the result of an extrusion process.
(2) If the good is of staple fibers, a change of those fibers to heading 5808.10 from any other head- ing, except from heading 5106 through 5113, 5204 through 5212, 5306 through 5311, 5401 through 5408, 5508 through 5516, and 5604 through 5607, and provided that the change is the re- sult of a spinning process.
5808.90 ........................... (1) For ornamental fabric trimmings: (a) A change from a greige good of subheading 5808.90 to a finished good of subheading 5808.90 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, perma- nent stiffening, weighting, permanent embossing, or moireing; or,
(b) If the country of origin cannot be determined under (a) above, a change to subheading 5808.90 from any other chapter, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, and 5512 through 5516, and provided that the change is the re- sult of a fabric-making process.
(2) For nonfabric ornamental trimmings: (a) If the trimming is of continuous filaments, including strips, a change to subheading 5808.90 from any other heading, except from heading 5001 through 5007, 5401 through 5408, 5501 through 5502, and 5604 through 5607, and provided that the change is the result of an extrusion process; or
(b) If the trimming is of staple fibers, a change to subheading 5808.90 from any other heading, ex- cept from heading 5106 through 5113, 5204 through 5212, 5306 through 5311, 5401 through 5408, 5508 through 5516, and 5604 through 5607, and provided that the change is the result of a spinning process.
(3) For tassels, pompons and similar articles: (a) If the good has been wholly assembled in a single country, territory, or insular possession, a change to subheading 5808.90 from any other heading;
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(b) If the good has not been wholly assembled in a single country, territory, or insular possession and the good is of staple fibers, a change to subheading 5808.90 from any other heading, except from heading 5004 through 5006, 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and 5604 through 5607, and provided that the change is the result of a spin- ning process; or
(c) If the good has not been wholly assembled in a single country, territory, or insular possession and the good is of filaments, including strips, a change to subheading 5808.90 from any other heading, except from heading 5001 through 5007, 5401 through 5406, and 5501 through 5502, and provided that the change is the result of an extrusion process.
5809 ................................ A change to heading 5809 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5801 through 5802, 5804, and 5806, and provided that the change is the result of a fabric-making process.
5810.10 ........................... The country of origin of goods of subheading 5810.10 is the single country, territory, or insular pos- session in which the embroidery was performed.
5810.91–5810.99 ............ (1) For embroidered fabric, the country of origin is the country, territory, or insular possession in which the fabric was produced by a fabric-making process.
(2) For embroidered badges, emblems, insignia, and the like, comprised of multiple components, the country of origin is the place of assembly, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(3) For embroidered badges, emblems, insignia, and the like, not comprised of multiple components, a change to subheading 5810.91 through 5810.99 from any other chapter, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5903, 5907, 6001 through 6006, and provided that the change is the result of a fabric-making process.
5811 ................................ The country of origin of a good classifiable under heading 5811 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.
5901–5903 ...................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5901 through 5903 to finished fabric of heading 5901 through 5903 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5901 through 5903 from any other heading, including a heading within that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric-making process.
5904 ................................ (1) For goods that have been wholly assembled by means of a lamination process, a change to heading 5904 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) For all other goods, the country of origin of the good will be determined by application of § 102.21(c)(4) or, if the country of origin cannot be determined under that section, by application of § 102.21(c)(5).
5905 ................................ (1) Except for wall coverings consisting of textile fabric of wool or of fine animal hair treated on the back or affixed by any means to a backing of any material, a change from wall coverings of greige fabric of heading 5905 to wall coverings of finished fabric of heading 5905 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrink- ing, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5905 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5603, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric-making process.
5906–5907 ...................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5906 through 5907 to finished fabric of heading 5906 through 5907 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to heading 5906 through 5907 from any other chapter, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5803, 5806, 5808, and 6002 through 6006, and provided that the change is the result of a fabric-making process.
5908 ................................ (1) Except for yarns, twine, cord, and braid, a change to heading 5908 from any other heading, ex- cept from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5801 through 5802, 5806, 5808, and 6001 through 6006.
(2) For yarns, twine, cord, and braid: (a) If the good is of continuous filaments, including strips, a change to heading 5908 from any other
heading, except from heading 5001 through 5007, 5401 through 5406, and 5501 through 5502, and provided that the change is the result of an extrusion process; or
(b) If the good is of staple fibers, a change to heading 5908 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and 5605 through 5607, and provided that the change is the result of a spinning process.
5909 ................................ A change to heading 5909 from any other chapter, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5603, 5801 through 5804, 5806, 5808, and 6001 through 6006, and provided that the good does not contain armor or accessories of nontextile material and provided that the change is the result of a fabric- making process; or
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A change to textile hosepiping with armor or accessories of nontextile material, of heading 5909, from any heading, including a change from another good of heading 5909, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
5910 ................................ (1) For belts and belting of braid, rope, or cord: (a) If the good is of continuous filaments, including strips, a change of those filaments, including
strips, to heading 5910 from any other heading, except from heading 5001 through 5006, 5401 through 5406, and 5501 through 5502, and provided that the change is the result of an extrusion process; or
(b) If the good is of staple fibers, a change of those fibers to heading 5910 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.
(2) For fabric belting and belts, not braids and not combined with nontextile components, whether or not reinforced with metal or other material, a change to heading 5910 from any other heading, ex- cept from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5808 through 5809, and 6001 through 6006, and provided the change is the result of a fabric-making process.
(3) For fabric belts, including belts of braided materials, combined with nontextile components, whether or not reinforced with metal or other material, a change to heading 5910 from any head- ing, including a change from another good of heading 5910, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
5911.10–5911.20 ............ (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of subheading 5911.10 through 5911.20 to finished fabric of subheading 5911.10 through 5911.20 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to subheading 5911.10 through 5911.20 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
5911.31–5911.32 ............ (1)(a) Except for fabric of wool or of fine animal hair, a change from greige fabric of subheading 5911.31 through 5911.32 to finished fabric of subheading 5911.31 through 5911.32 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(1)(b) If the country of origin cannot be determined under (1)(a) above, for goods not combined with nontextile components, a change to subheading 5911.31 through 5911.32 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
(2) For goods combined with nontextile components, a change to subheading 5911.31 through 5911.32 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
5911.40 ........................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of subheading 5911.40 to finished fabric of subheading 5911.40 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under (1) above, a change to subheading 5911.40 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, and 6001 through 6006, and provided that the change is the result of a fabric-making proc- ess.
5911.90 ........................... (1) For goods of yarn, rope, cord, or braid: (a)If the good is of continuous filaments, including strips, a change of those filaments, including
strips, to subheading 5911.90 from any other heading, except from heading 5001 through 5006, 5401 through 5406, and 5501 through 5502, and provided that the change is the result of an ex- trusion process; or
(b) If the good is of staple fibers, a change of those fibers to subheading 5911.90 from any other heading, except from heading 5106 through 5110, 5204 through 5207, 5306 through 5308, and 5508 through 5511, and provided that the change is the result of a spinning process.
(2)(a) If the good is a fabric, except for fabric of wool or of fine animal hair, a change from greige fabric of subheading 5911.90 to finished fabric of subheading 5911.90 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2)(b) If the country of origin cannot be determined under (2)(a) above, if the good is a fabric, a change to subheading 5911.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5804, 5806, 5809, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
(3) If the good is a made up article other than a good of yarn, rope, cord, or braid, a change to sub- heading 5911.90 from any heading, including a change from another good of heading 5911, pro- vided that the change is the result of the good being wholly assembled in a single country, terri- tory, or insular possession.
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6001–6006 ...................... (1) Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 6001 through 6006 to finished fabric of heading 6001 through 6006 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or,
(2) If the country of origin cannot be determined under paragraph (1) of this entry, a change to head- ing 6001 through 6006 from any heading outside that group, provided that the change is the result of a fabric-making process.
6101–6117 ...................... (1) If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good is not knit to shape and does not consist of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to heading 6101 through 6117 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6006, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
(3) If the good is knit to shape, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to 6101 through 6117 from any heading outside that group, pro- vided that the knit to shape components are knit in a single country, territory, or insular posses- sion.
6201–6208 ...................... (1) If the good consists of two or more component parts, a change to an assembled good of heading 6201 through 6208 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to heading 6201 through 6208 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
6209.20.1000– 6209.20.5035.
(1) If the good consists of two or more component parts, a change to an assembled good of sub- heading 6209.20.1000 through 6209.20.5035 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to subheading 6209.20.1000 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
6209.20.5040 .................. The country of origin of a good classifiable in subheading 6209.20.5040 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making proc- ess.
6209.20.5045– 6209.90.9000.
(1) If the good consists of two or more component parts, a change to an assembled good of sub- heading 6209.20.5045 through 6209.90.9000 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to subheading 6209.20.5045 through 6209.90.9000 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
6210–6211 ...................... (1) If the good consists of two or more component parts, a change to an assembled good of heading 6210 through 6211 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to heading 6210 through 6211 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, 6001 through 6006, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
6212 ................................ (1) If the good is not knit to shape and consists of two or more component parts, a change to an as- sembled good of heading 6212 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good is not knit to shape and does not consist of two or more component parts, a change to heading 6212 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, 6001 through 6006, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
(3) If the good is knit to shape, a change to heading 6212 from any other heading, provided that the knit to shape components are knit in a single country, territory, or insular possession
6213–6214 ...................... Except for goods of heading 6213 through 6214 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6213 through 6214 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making proc- ess.
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6215–6217 ...................... (1) If the good consists of two or more component parts, a change to an assembled good of heading 6215 through 6217 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to heading 6215 through 6217 from any heading outside that group, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5801 through 5806, 5809 through 5811, 5903, 5906 through 5907, and 6217, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
6301–6306 ...................... Except for goods of heading 6302 through 6304 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making proc- ess.
6307.10 ........................... The country of origin of a good classifiable under subheading 6307.10 is the country, territory, or in- sular possession in which the fabric comprising the good was formed by a fabric-making process.
6307.20 ........................... A change to subheading 6307.20 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
6307.90 ........................... The country of origin of a good classifiable under subheading 6307.90 is the country, territory, or in- sular possession in which the fabric comprising the good was formed by a fabric-making process.
6308 ................................ The country of origin of a good classifiable under heading 6308 is the country, territory, or insular possession in which the woven fabric component of the good was formed by a fabric-making proc- ess.
6309–6310 ...................... The country of origin of a good classifiable under heading 6309 through 6310 is the country, territory, or insular possession in which the good was last collected and packaged for shipment.
6405.20.60 ...................... A change to subheading 6405.20.60 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
6406.10.77 ...................... (1) If the good consists of two or more components, a change to subheading 6406.10.77 from any other heading, provided that the change is the result of the good being wholly assembled in a sin- gle country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to subheading 6406.10.77 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
6406.10.90 ...................... (1) If the good consists of two or more components, a change to subheading 6406.10.90 from any other heading, provided that the change is the result of the good being wholly assembled in a sin- gle country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to subheading 6406.10.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
6406.99.15 ...................... (1) If the good consists of two or more components, a change to subheading 6406.99.15 from any other heading, provided that the change is the result of the good being wholly assembled in a sin- gle country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to subheading 6406.99.15 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
6501 ................................ (1) If the good consists of two or more components, a change to heading 6501 from any other head- ing, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to heading 6501 from any other heading, except from heading 5602, and provided that the change is the result of a fabric- making process.
6502 ................................ (1) If the good consists of two or more components, a change to heading 6502 from any other head- ing, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to heading 6502 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the re- sult of a fabric-making process.
6504 ................................ (1) If the good consists of two or more components, a change to heading 6504 from any other head- ing, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more components, a change to heading 6504 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5608, 5801 through 5804, 5806, 5808 through 5810, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the re- sult of a fabric-making process.
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6505.90 ........................... (1) For felt hats and other felt headgear, made from the hat bodies, hoods or plateaux of heading 6501, whether or not lined or trimmed, if the good consists of two or more components, a change to subheading 6505.90 from any other good of subheading 6505.90 or from any other subheading, provided that the change is the result of the good being wholly assembled in a single country, ter- ritory, or insular possession.
(2) For felt hats and other felt headgear, made from the hat bodies, hoods or plateaux of heading 6501, whether or not lined or trimmed, if the good does not consist of two or more components, a change to subheading 6505.90 from any other subheading, except from heading 5602, and pro- vided that the change is the result of a fabric-making process.
(3) For any other good, if the good consists of two or more components, a change to subheading 6505.90 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(4) For any other good, if the good does not consist of two or more components, a change to sub- heading 6505.90 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5407 through 5408, 5512 through 5516, 5602 through 5603, 5609, 5801 through 5804, 5806, 5808 through 5811, 5903, 5906 through 5907, and 6001 through 6006, and provided that the change is the result of a fabric-making process.
6601.10–6601.91 ............ A change to subheading 6601.10 through 6601.91 from any other heading, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular posses- sion.
7019.19.15 ...................... (1) If the good is of filaments, a change to subheading 7019.19.15 from any other heading, provided that the change is the result of an extrusion process.
(2) If the good is of staple fibers, a change to subheading 7019.19.15 from any other subheading, except from subheading 7019.19.30 through 7019.19.90, 7019.31.00 through 7019.39.50, and 7019.90, and provided that the change is the result of a spinning process.
7019.19.28 ...................... (1) If the good is of filaments, a change to subheading 7019.19.28 from any other heading, provided that the change is the result of an extrusion process.
(2) If the good is of staple fibers, a change to subheading 7019.19.28 from any other subheading, except from subheading 7019.19.30 through 7019.19.90, 7019.31.00 through 7019.39.50, and 7019.90, and provided that the change is the result of a spinning process.
7019.40–7019.59 ............ A change to subheading 7019.40 through 7019.59 from any other subheading, provided that the change is the result of a fabric-making process.
8708.21 ........................... (1) For seat belts not combined with nontextile components, a change to subheading 8708.21 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, and 5512 through 5516, and provided that the change is the re- sult of a fabric-making process.
(2) For seat belts combined with nontextile components, a change to an assembled good of sub- heading 8708.21 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
8804 ................................ (1) If the good consists of two or more component parts, a change to an assembled good of heading 8804 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to heading 8804 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5603, 5801 through 5804, 5806, 5809 through 5811, 5903, 5906 through 5907, and 6001 through 6006, and subheading 6307.90, and provided that the change is the result of a fabric-making process.
9113.90.40 ...................... (1) If the good consists of two or more component parts, a change to an assembled good of sub- heading 9113.90.40 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.
(2) If the good does not consist of two or more component parts, a change to subheading 9113.90.40 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5603, 5801 through 5802, 5806, 5809, 5903, 5906 through 5907, and 6001 through 6006, and subheading 6307.90, and pro- vided that the change is the result of a fabric-making process.
9404.90 ........................... Except for goods of subheading 9404.90 provided for in paragraph (e)(2) of this section, the country of origin of a good classifiable under subheading 9404.90 is the country, territory, or insular pos- session in which the fabric comprising the good was formed by a fabric-making process.
9503.00.0080 .................. For garments and accessories thereof, footwear or headgear of dolls representing only human beings, a change to an assembled good from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular posses- sion.
9612.10.9010 .................. A change to subheading 9612.10.9010 from any other heading, except from heading 5007, 5111 through 5113, 5208 through 5212, 5309 through 5311, 5407 through 5408, 5512 through 5516, 5603, 5806, 5903, 5906 through 5907, and 6002 through 6006, and provided that the change is the result of a fabric-making process.
(2) For goods of HTSUS headings 6213 and 6214 and HTSUS subheadings 6117.10, 6302.22, 6302.29, 6302.52, 6302.53,
6302.59, 6302.92, 6302.93, 6302.99, 6303.92, 6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85
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and 9404.90.95, except for goods classi- fied under those headings or sub- headings as of cotton or of wool or con- sisting of fiber blends containing 16 percent or more by weight of cotton:
(i) The country of origin of the good is the country, territory, or insular possession in which the fabric com- prising the good was both dyed and printed when accompanied by two or more of the following finishing oper- ations: bleaching, shrinking, fulling, napping, decating, permanent stiff- ening, weighting, permanent emboss- ing, or moireing;
(ii) If the country of origin cannot be determined under paragraph (e)(2)(i) of this section, except for goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more compo- nent parts, the country of origin is the country, territory, or insular posses- sion in which the fabric comprising the good was formed by a fabric-making process; or
(iii) For goods of HTSUS subheading 6117.10 that are knit to shape or consist of two or more component parts, if the country of origin cannot be determined under paragraph (e)(2)(i) of this sec- tion:
(A) If the good is knit to shape, the country of origin of the good is the country, territory, or insular posses- sion in which a change to HTSUS sub- heading 6117.10 from yarn occurs, pro- vided that the knit to shape compo- nents are knit in a single country, ter- ritory, or insular possession; or
(B) If the good is not knit to shape and consists of two or more component parts, the country of origin of the good is the country, territory, or insular possession in which a change to an as- sembled good of HTSUS subheading 6117.10 from unassembled components occurs, provided that the change is the result of the good being wholly assem- bled in a single country, territory, or insular possession.
[T.D. 95–69, 60 FR 46197, Sept. 5, 1995, as amended by T.D. 96–56, 61 FR 37818, July 22, 1996; T.D. 99–64, 64 FR 43266, Aug. 10, 1999; T.D. 01–36, 66 FR 21661, May 1, 2001; 66 FR 23981, May 10, 2001; T.D. 02–47, 67 FR 51752, Aug. 9, 2002; T.D. 03–08, 68 FR 8713, Feb. 25, 2003; CBP Dec. 08–42, 73 FR 64538, Oct. 30, 2008; CBP Dec. 08–42, 73 FR 66171, Nov. 7, 2008; 76 FR 54697, Sept. 2, 2011]
§ 102.22 Rules of origin for textile and apparel products of Israel.
(a) Applicability. The provisions of this section will control for purposes of determining whether a textile or ap- parel product, as defined in § 102.21(b)(5), is considered a product of Israel for purposes of the customs laws and the administration of quantitative limitations. A textile or apparel prod- uct will be a product of Israel if it is wholly the growth, product, or manu- facture of Israel. However, a textile or apparel product that consists of mate- rials produced or derived from, or proc- essed in, another country, or insular possession of the United States, in ad- dition to Israel, will be a product of Israel if it last underwent a substantial transformation in Israel. A textile or apparel product will be considered to have undergone a substantial trans- formation if it has been transformed by means of substantial manufacturing or processing operations into a new and different article of commerce.
(b) Criteria for determining country of origin for products of Israel. The criteria in paragraphs (b)(1) and (b)(2) of this section will be considered in deter- mining whether an imported textile or apparel product is a product of Israel. These criteria are not exhaustive. One or any combination of criteria may be determinative, and additional factors may be considered.
(1) A new and different article of commerce will usually result from a manufacturing or processing operation if there is a change in:
(i) Commercial designation or iden- tity;
(ii) Fundamental character; or (iii) Commercial use. (2) In determining whether merchan-
dise has been subjected to substantial manufacturing or processing oper- ations, the following will be consid- ered:
(i) The physical change in the mate- rial or article as a result of the manu- facturing or processing operations in Israel or in Israel and a foreign terri- tory or country or insular possession of the U.S.;
(ii) The time involved in the manu- facturing or processing operations in
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Israel or in Israel and a foreign terri- tory or country or insular possession of the U.S.;
(iii) The complexity of the manufac- turing or processing operations in Israel or in Israel and a foreign terri- tory or country or insular possession of the U.S.;
(iv) The level or degree of skill and/or technology required in the manufac- turing or processing operations in Israel or in Israel and a foreign terri- tory or country or insular possession of the U.S.; and
(v) The value added to the article or material in Israel or in Israel and a for- eign territory or country or insular possession of the U.S., compared to its value when imported into the U.S.
(c) Manufacturing or processing oper- ations. (1) An article or material usu- ally will be a product of Israel when it has undergone in Israel prior to impor- tation into the United States any of the following:
(i) Dyeing of fabric and printing when accompanied by two or more of the fol- lowing finishing operations: bleaching, shrinking, fulling, napping, decating, permanent stiffening, weighting, per- manent embossing, or moireing;
(ii) Spinning fibers into yarn; (iii) Weaving, knitting or otherwise
forming fabric; (iv) Cutting of fabric into parts and
the assembly of those parts into the completed article; or
(v) Substantial assembly by sewing and/or tailoring of all cut pieces of ap- parel articles which have been cut from fabric in another foreign territory or country, or insular possession of the U.S., into a completed garment (e.g., the complete assembly and tailoring of all cut pieces of suit-type jackets, suits, and shirts).
(2) An article or material usually will not be considered to be a product of Israel by virtue of merely having un- dergone any of the following:
(i) Simple combining operations, la- beling, pressing, cleaning or dry clean- ing, or packaging operations, or any combination thereof;
(ii) Cutting to length or width and hemming or overlocking fabrics which are readily identifiable as being in- tended for a particular commercial use;
(iii) Trimming and/or joining to- gether by sewing, looping, linking, or other means of attaching otherwise completed knit-to-shape component parts produced in a single country, even when accompanied by other proc- esses (e.g., washing, drying, and mend- ing) normally incident to the assembly process;
(iv) One or more finishing operations on yarns, fabrics, or other textile arti- cles, such as showerproofing, super- washing, bleaching, decating, fulling, shrinking, mercerizing, or similar op- erations; or
(v) Dyeing and/or printing of fabrics or yarns.
(d) Results of origin determination. If Israel is determined to be the country of origin of a textile or apparel product by application of the provisions in paragraphs (a), (b), and (c) of this sec- tion, the inquiry into the origin of the product ends. However, if Israel is de- termined not to be the country of ori- gin of a textile or apparel product by application of the provisions in para- graphs (a), (b), and (c) of this section, the country of origin of the product will be determined under the rules of origin set forth in § 102.21, although the application of those rules cannot result in Israel being the country of origin of the product.
[CBP Dec. 05–32, 70 FR 58013, Oct. 5, 2005]
§ 102.23 Origin and Manufacturer Identification
(a) Textile or apparel product manufac- turer identification. All commercial im- portations of textile or apparel prod- ucts must identify on CBP Form 3461 (Entry/Immediate Delivery) and CBP Form 7501 (Entry Summary), and in all electronic data transmissions that re- quire identification of the manufac- turer, the manufacturer of such prod- ucts through a manufacturer identi- fication code (MID) constructed from the name and address of the entity per- forming the origin-conferring oper- ations pursuant to § 102.21 or § 102.22 of this part, as applicable. The code must be accurately constructed using the methodology set forth in the Appendix to this part, including the use of the two-letter International Organization for Standardization (ISO) code for the country of origin of such products.
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When a single entry is filed for prod- ucts of more than one manufacturer, the products of each manufacturer must be separately identified. Import- ers must be able to demonstrate to CBP their use of reasonable care in de- termining the manufacturer. If an entry filed for such merchandise fails to include the MID properly con- structed from the name and address of the manufacturer, the port director may reject the entry or take other ap- propriate action. For purposes of this paragraph, ‘‘textile or apparel prod- ucts’’ means goods classifiable in Sec- tion XI, Harmonized Tariff Schedule of the United States (HTSUS), and goods classifiable in any 10-digit HTSUS number outside of Section XI with a three-digit textile category number as- signed to the specific subheading.
(b) Incomplete or insufficient informa- tion. If the port director is unable to determine the country of origin of a textile or apparel product, the im- porter must submit additional informa- tion as requested by the port director. Release of the product from CBP cus- tody will be denied until a determina- tion of the country of origin is made based upon the information provided or the best information available.
(c) Date of exportation. For quota, visa or export license requirements, and statistical purposes, the date of expor- tation for textile or apparel products listed in § 102.21(b)(5) will be the date the vessel or carrier leaves the last port in the country of origin, as deter- mined by application of § 102.21 or § 102.22, as applicable. Contingency of diversion in another foreign territory or country will not change the date of exportation for quota, visa or export li- cense requirements or for statistical purposes.
[CBP Dec. 05–32, 70 FR 58013, Oct. 5, 2005, as amended at CBP Dec. 11–09, 76 FR 14584, Mar. 17, 2011]
§ 102.24 Entry of textile or apparel products.
(a) General. Separate shipments of textile or apparel products, including samples, which originate from a coun- try subject to visa or export license re- quirements for exports of textile or ap- parel products, arriving in the customs territory of the United States for one
consignee on the same conveyance on the same day, the combined value of which is over $250, will not be entered under the informal entry procedures set forth in subpart C, part 143 or pro- cedures set forth in § 141.52 of this chap- ter. Port directors will refuse separate informal entries and require a formal entry and visa or export license, as ap- propriate, for all such merchandise. A consignee for purposes of this section is the ultimate consignee and does not in- clude a freight forwarder or Customs broker not importing for its own ac- count.
(b) Denial of entry pursuant to direc- tive. Textile or apparel products subject to section 204 of the Agricultural Act of 1956, as amended (7 U.S.C. 1854), whether or not the requirements set forth in § 102.21 or § 102.22, as applicable, have been met, will be denied entry where the factory, producer, manufac- turer, or other company named in the entry documents for such textile or ap- parel products is named in a directive published in the FEDERAL REGISTER by the Committee for the Implementation of Textile Agreements as a company found to be illegally transshipping, closed or unable to produce records to verify production. In these cir- cumstances, no additional information will be accepted or considered by CBP for purposes of determining the admis- sibility of such textile or apparel prod- ucts.
[CBP Dec. 05–32, 70 FR 58013, Oct. 5, 2005]
§ 102.25 Textile or apparel products under the North American Free Trade Agreement.
In connection with a claim for NAFTA preferential tariff treatment involving non-originating textile or ap- parel products subject to the tariff preference level provisions of appendix 6.B to Annex 300–B of the NAFTA and Additional U.S. Notes 3 through 6 to Section XI, Harmonized Tariff Sched- ule of the United States, the importer must submit to CBP a Certificate of Eligibility covering the products. The Certificate of Eligibility must be prop- erly completed and signed by an au- thorized official of the Canadian or Mexican government and must be pre- sented to CBP at the time the claim for preferential tariff treatment is filed
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under § 181.21 of this chapter. If the port director is unable to determine the country of origin of the products, they will not be entitled to preferential tar- iff treatment or any other benefit under the NAFTA for which they would otherwise be eligible.
[CBP Dec. 05–32, 70 FR 58013, Oct. 5, 2005]
APPENDIX TO PART 102—TEXTILE AND APPAREL MANUFACTURER IDENTI- FICATION
RULES FOR CONSTRUCTING THE MANUFACTURER IDENTIFICATION CODE (MID)
1. Pursuant to § 102.23(a) of this part, all commercial importations of textile or ap- parel products, as defined in that paragraph, must identify on CBP Form 3461 (Entry/Im- mediate Delivery) and CBP Form 7501 (Entry Summary), and in all electronic data trans- missions that require identification of the manufacturer, the manufacturer of such products through a manufacturer identifica- tion code (MID) constructed from the name and address of the entity performing the ori- gin-conferring operations. The MID may be up to 15 characters in length, with no spaces inserted between the characters.
2. The first 2 characters of the MID consist of the ISO code for the actual country of ori- gin of the goods. The one exception to this rule is Canada. ‘‘CA’’ is not a valid country code for the MID; instead, one of the appro- priate province codes listed below must be used: ALBERTA—XA BRITISH COLUMBIA—XC MANITOBA—XM NEW BRUNSWICK—XB NEWFOUNDLAND (LABRADOR)—XW NORTHWEST TERRITORIES—XT NOVA SCOTIA—XN NUNAVUT—XV ONTARIO—XO PRINCE EDWARD ISLAND—XP QUEBEC—XQ SASKATCHEWAN—XS YUKON TERRITORY—XY
3. The next group of characters in the MID consists of the first three characters in each of the first two ‘‘words’’ of the manufactur- er’s name. If there is only one ‘‘word’’ in the name, then only the first three characters from the name are to be used. For example, ‘‘Amalgamated Plastics Corp.’’ would yield ‘‘AMAPLA,’’ and ‘‘Bergstrom’’ would yield ‘‘BER.’’ If there are two or more initials to- gether, they are to be treated as a single word. For example, ‘‘A.B.C. Company’’ or ‘‘A B C Company’’ would yield ‘‘ABCCOM,’’ ‘‘O.A.S.I.S. Corp.’’ would yield ‘‘OASCOR,’’ ‘‘Dr. S.A. Smith’’ would yield ‘‘DRSA,’’ and ‘‘Shavings B L Inc.’’ would yield ‘‘SHABL.’’ The English words ‘‘a,’’ ‘‘an,’’ ‘‘and,’’ ‘‘of,’’
and ‘‘the’’ in the manufacturer’s name are to be ignored. For example, ‘‘The Embassy of Spain’’ would yield ‘‘EMBSPA.’’ Portions of a name separated by a hyphen are to be treated as a single word. For example, ‘‘Rawles-Aden Corp.’’ or ‘‘Rawles—Aden Corp.’’ would both yield ‘‘RAWCOR.’’ Some names include numbers. For example, ‘‘20th Century Fox’’ would yield ‘‘20TCEN’’ and ‘‘Concept 2000’’ would yield ‘‘CON200.’’
a. Some words in the title of the foreign manufacturer’s name are not to be used for the purpose of constructing the MID. For ex- ample, most textile factories in Macau start with the same words, ‘‘Fabrica de Artigos de Vestuario,’’ which means ‘‘Factory of Cloth- ing.’’ For a factory named ‘‘Fabrica de Artigos de Vestuario JUMP HIGH Ltd,’’ the portion of the factory name that identifies it as a unique entity is ‘‘JUMP HIGH.’’ This is the portion of the name that should be used to construct the MID. Otherwise, all of the MIDs from Macau would be the same, using ‘‘FABDE,’’ which is incorrect.
b. Similarly, many factories in Indonesia begin with the prefix PT, such as ‘‘PT Morich Indo Fashion.’’ In Russia, other pre- fixes are used, such as ‘‘JSC,’’ ‘‘OAO,’’ ‘‘OOO,’’ and ‘‘ZAO.’’ These prefixes are to be ignored for the purpose of constructing the MID.
4. The next group of characters in the MID consists of the first four numbers in the larg- est number on the street address line. For example, ‘‘11455 Main Street, Suite 9999’’ would yield ‘‘1145.’’ A suite number or a post office box is to be used if it contains the largest number. For example, ‘‘232 Main Street, Suite 1234’’ would yield ‘‘1234.’’ If the numbers in the street address are spelled out, such as ‘‘One Thousand Century Plaza,’’ no numbers representing the manufacturer’s address will appear in this section of the MID. However, if the address is ‘‘One Thou- sand Century Plaza, Suite 345,’’ this would yield ‘‘345.’’ When commas or hyphens sepa- rate numbers, all punctuation is to be ig- nored and the number that remains is to be used. For example, ‘‘12,34,56 Alaska Road’’ and ‘‘12–34–56 Alaska Road’’ would yield ‘‘1234.’’ When numbers are separated by a space, both numbers are recognized and the larger of the two numbers is to be selected. For example, ‘‘Apt. 509 2727 Cleveland St.’’ would yield ‘‘2727.’’
5. The last characters in the MID consist of the first three letters in the city name. For example, ‘‘Tokyo’’ would yield ‘‘TOK,’’ ‘‘St. Michel’’ would yield ‘‘STM,’’ ‘‘18-Mile High’’ would yield ‘‘MIL,’’ and ‘‘The Hague’’ would yield ‘‘HAG.’’ Numbers in the city name or line are to be ignored. For city-states, the first three letters are to be taken from the country name. For example, Hong Kong would yield ‘‘HON,’’ Singapore would yield ‘‘SIN,’’ and Macau would yield ‘‘MAC.’’
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6. As a general rule, in constructing a MID, all punctuation, such as commas, periods, apostrophes, and ampersands, are to be ig- nored. All single character initials, such as the ‘‘S’’ in ‘‘Thomas S. Delvaux Company,’’ are also to be ignored, as are leading spaces in front of any name or address.
7. Examples of manufacturer names and addresses and their corresponding MIDs are listed below: LA VIE DE FRANCE, 243 Rue de la Payees,
62591 Bremond, France; FRLAVIE243BRE 20TH CENTURY TECHNOLOGIES, 5 Ricardo
Munoz, Suite 5880, Caracas, Venezuela; VE20TCEN5880CAR
Fabrica de Artigos de Vestuario TOP JOB, Grand River Building, FI 2–4, Macau; MOTOPJOB24MAC
THE GREENHOUSE, 45 Royal Crescent, Bir- mingham, Alabama 35204; USGRE45BIR
CARDUCCIO AND JONES, 88 Canberra Ave- nue, Sidney, Australia; AUCARJON88SID
N. MINAMI & CO., LTD., 2–6, 8–Chome Isogami-Dori, Fukiai-Ku, Kobe, Japan; JPMINCO26KOB
BOCCHACCIO S.P.A., Visa Mendotti, 61, 8320 Verona, Italy; ITBOCSPA61VER
MURLA-PRAXITELES INC., Athens, Greece; GRMURINCATH
SIGMA COY E.X.T., 4000 Smyrna, Italy, 1640 Delgado; ITSIGCOY1640SMY
COMPANHIA TEXTIL KARSTEN, Calle Grande, 25–27, 67890 Lisbon, Portugal, PTKAR2527LIS
HURON LANDMARK, 1840 Huron Road, Windsor, ON, Canada N9C 2L5; XOHURLAN1840WIN
A.B.C. COMPANY, 55–5 Hung To Road, P.O. Box 1234, Kowloon, Hong Kong; HKABCCOM1234HON.
[CBP Dec. 05–32, 70 FR 58015, Oct. 5, 2005, as amended at CBP Dec. 11–09, 76 FR 14584, Mar. 17, 2011]
PART 103—AVAILABILITY OF INFORMATION
Sec. 103.0 Scope.
Subpart A—Production of Documents/ Disclosure of Information Under the FOIA
103.1 Public reading rooms. 103.2 Information available to the public. 103.3 Publication of information in the FED-
ERAL REGISTER. 103.4 Public inspection and copying. 103.5 Specific requests for records. 103.6 Grant or denial of initial request. 103.7 Administrative appeal of initial deter-
mination. 103.8 Time extensions. 103.9 Judicial review. 103.10 Fees for services.
103.11 Specific Customs Service records sub- ject to disclosure.
103.12 Exemptions. 103.13 Segregability of records.
Subpart B—Production or Disclosure in Federal, State, Local, and Foreign Pro- ceedings
103.21 Purpose and definitions. 103.22 Procedure in the event of a demand
for Customs information in any federal, state, or local civil proceeding or admin- istrative action.
103.23 Factors in determining whether to disclose information pursuant to a de- mand.
103.24 Procedure in the event a decision concerning a demand is not made prior to the time a response to the demand is required.
103.25 Procedure in the event of an adverse ruling.
103.26 Procedure in the event of a demand for Customs information in a state or local criminal proceeding.
103.27 Procedure in the event of a demand for Customs information in a foreign pro- ceeding.
Subpart C—Other Information Subject to Restricted Access
103.31 Information on vessel manifests and summary statistical reports.
103.31a Advance electronic information for air, truck, and rail cargo.
103.32 Information concerning fines, pen- alties, and forfeitures cases.
103.33 Release of information to foreign agencies.
103.34 Sanctions for improper actions by Customs officers or employees.
103.35 Confidential commercial information; exempt.
AUTHORITY: 5 U.S.C. 301, 552, 552a; 19 U.S.C. 66, 1624; 31 U.S.C. 9701.
Section 103.31 also issued under 19 U.S.C. 1431;
Section 103.31a also issued under 19 U.S.C. 2071 note and 6 U.S.C. 943;
Section 103.33 also issued under 19 U.S.C. 1628;
Section 103.34 also issued under 18 U.S.C. 1905.
Section 103.35 also issued under E.O. 12600 of June 23, 1987.
SOURCE: T.D. 81–168, 46 FR 32565, June 24, 1981, unless otherwise noted.
§ 103.0 Scope. This part governs the production/dis-
closure of agency-maintained docu- ments/information requested pursuant to various disclosure laws and/or legal
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processes. Thus, the extent of disclo- sure of requested information may be dependent on whether the request is pursuant to the provisions of the Free- dom of Information Act (FOIA), as amended (5 U.S.C. 552), the Privacy Act of 1974, as amended (5 U.S.C. 552a), and/ or under other statutory or regulatory authorities, as required by administra- tive and/or legal processes. The regula- tions for this part contain a discussion of applicable fees for the search, dupli- cation, review, and other tasks associ- ated with processing information re- quests pursuant to the FOIA, and also provide for the appeal of agency deci- sions and sanctions for the improper withholding and/or the untimely re- lease of requested information. As in- formation obtained by Customs is de- rived from a myriad of sources, persons seeking information should consult with the appropriate field officer before invoking the formal procedures set forth in this part. These regulations supplement the regulations of the De- partment of the Treasury regarding public access to records, which are found at 31 CFR part 1, and, in the event of any inconsistency between these regulations and those of the De- partment of the Treasury, the latter shall prevail. For purposes of this part, the Office of the Chief Counsel is con- sidered a part of the United States Cus- toms Service.
[T.D. 96–36, 61 FR 19838, May 3, 1996, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
Subpart A—Production of Docu- ments/Disclosure of Informa- tion Under the FOIA
§ 103.1 Public reading rooms.
Each office listed below will main- tain a public reading room or public reading area where the material re- quired to be made available under 5 U.S.C. 552(a)(2) and this part may be in- spected and copied:
United States Customs Service (Head- quarters), 1300 Pennsylvania Avenue, NW., Washington, DC 20229
Boston, 10 Causeway Street, Boston, Massa- chusetts 02222
New York, One Penn Plaza, 10th Floor, New York, NY 10119
Chicago, Room 1501, 55 East Monroe Street, Chicago, Illinois 60603
Miami, 99 S.E. 5th Street, Miami, Florida 33131
New Orleans, Canal-LaSalle Building, Rm. 302, 423 Canal St., New Orleans, Louisiana 70130
Houston, 5850 San Felipe, Houston, Texas 77057
Los Angeles, New Federal Building, 300 N. Los Angeles Street, Los Angeles, Cali- fornia 90012.
The reading rooms are open to the pub- lic during regular business hours unless other hours are posted, Monday through Friday of each week, exclusive of national holidays. A fee for copies of requested material is charged in ac- cordance with § 103.10.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 83–209, 48 FR 45544, Oct. 6, 1983; T.D. 95–77, 60 FR 50019, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; CBP Dec. 07–76, 72 FR 52782, Sept. 17, 2007]
§ 103.2 Information available to the public.
(a) General. The Freedom of Informa- tion Act, as amended (5 U.S.C. 552), provides for access to information and records developed or maintained by Federal agencies. Subject only to the exemptions set forth in § 103.12, the public generally or any individual member is entitled to information or records which are described in para- graph (b) of this section and which are in the possession of the United States Customs Service. Access to that infor- mation is governed by the regulations in this part.
(b) Three categories of information available. Generally, 5 U.S.C. 552 divides agency information into three major categories and provides methods by which each category is available to the public. The three major categories, for which the disclosure requirements of the United States Customs Service are set forth in this part, are as follows:
(1) Information required to be pub- lished in the FEDERAL REGISTER (see § 103.3).
(2) Information required to be made available for public inspection and copying or, in the alternative, to be published and offered for sale (see § 103.4).
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(3) Information required to be made available to any member of the public upon specific request (see § 103.5).
§ 103.3 Publication of information in the Federal Register.
(a) Requirements. Subject to the appli- cation of the exemptions described in § 103.12 and subject to the limitations provided in paragraph (b) of this sec- tion, the United States Customs Serv- ice is required, by 5 U.S.C. 552(a)(1), to separately state, publish and keep cur- rent in the FEDERAL REGISTER for the guidance of the public the following in- formation:
(1) Descriptions of its central and field organization and the established places at which, the persons from whom, and the methods whereby, the public may obtain information, make submittals or requests, or obtain deci- sions.
(2) A statement of the general course and method by which its function are channeled and determined, including the nature and requirements of all for- mal and informal procedures available.
(3) Rules of procedure, descriptions of forms available and the places at which forms may be obtained, and instruc- tions as to the scope and contents of all papers, reports, or examinations.
(4) Substantive rules of general appli- cability adopted as authorized by law, and statements of general policy or in- terpretations of general applicability formulated and adopted by it.
(5) Each amendment, revision, or re- peal of matters referred to in para- graphs (a) (1) through (4) of this sec- tion.
(b) Limitations—(1) Incorporation by reference in the FEDERAL REGISTER. Matter reasonably available to an af- fected class of persons, whether pub- lished by a private organization or an agency of the United States, is pub- lished in the FEDERAL REGISTER for purposes of paragraph (a) of this sec- tion when it is incorporated by ref- erence in the FEDERAL REGISTER with the approval of the Director of the Fed- eral Register. Any matter which is in- corporated by reference must be set forth in the privately- or publicly- printed document substantially in its entirety and not merely summarized or printed as a synopsis. There can be no
incorporation by reference in the FED- ERAL REGISTER of any matter where only a few persons having a special working knowledge of the activities of the United States Customs Service are familiar with its location and scope. The provisions of 5 U.S.C. 552(a)(1) and 1 CFR part 20 control any incorpora- tion of matter by reference.
(2) Effect of failure to publish. Except to the extent that a person has actual and timely notice of the terms of any matter referred to in paragraph (a) of this section which is required to be published in the FEDERAL REGISTER, that person is not required in any man- ner to resort to, or be adversely af- fected by, that matter if it is not pub- lished or incorporated by reference. That is, any matter which imposes an obligation and which is not published or incorporated by reference can not adversely change or affect a person’s rights.
§ 103.4 Public inspection and copying. (a) In general. Subject to the applica-
tion of the exemption described in § 103.12 the United States Customs Service is required, by 5 U.S.C. 552(a)(2) and §§ 174.32 and 177.10 of this chapter, to make available for public inspection and copying or, in the alternative, promptly publish and offer for sale, the following information:
(1) Final opinions and orders, includ- ing concurring or dissenting opinions, made in the adjudication of cases;
(2) Within 120 days of issuance, any precedential decision (including any ruling letter, internal advice memo- randum, or protest review decision) issued under the Tariff Act of 1930, as amended, with respect to any Customs transaction;
(3) Those statements of policy and in- terpretations which have been adopted by the United States Customs Service but are not published in the FEDERAL REGISTER; and
(4) Administrative staff manuals and instructions to staff that affect a mem- ber of the public.
(b) Indexes. The United States Cus- toms Service is required by 5 U.S.C. 552(a)(2) to maintain and make avail- able for public inspection and copying those current indexes which identify any item described in paragraphs (a) (1)
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through (3) of this section that is issued, adopted, or promulgated after July 4, 1967, and that is required to be made available for public inspection or published. Unless the Commissioner de- termines by an order published in the FEDERAL REGISTER that publication is unnecessary and impracticable, these indexes are published on a quarterly or more frequent basis and are available for purchase at each of the public read- ing rooms listed in § 103.1, at a cost not to exceed the direct cost of duplica- tion.
(c) Effect of failure to publish or make available. No matter, described in para- graphs (a) (1) through (3) of this section which is required by this section to be made available for public inspection or published, may be relied upon, used, or cited as precedent by the United States Customs Service against a party, other than an agency, unless that party has actual and timely notice of such mat- ter or unless the matter has been in- dexed and either made available for in- spection or published, as provided by this section. This paragraph applies only to matters which have preceden- tial significance and does not apply to matters which have been made avail- able pursuant to § 103.3.
(d) Deletion of identifying details. To prevent an unwarranted invasion of personal privacy, in accordance with 5 U.S.C. 552(a)(2), identifying details con- tained in any matter described in para- graphs (a) (1) through (3) of this section are deleted before making that matter available for inspection or publication. However, in every case where identi- fying details are deleted, the basis for the deletion is explained in writing, giving specific reasons for the deletion and citing the applicable provision of 5 U.S.C. 552 and § 103.12, in an attachment to the document from which the identi- fying details have been deleted.
(e) Public reading rooms. The United States Customs Service has available for inspection and copying, in a reading room or otherwise, the matters de- scribed in paragraphs (a) (1) through (3) of this section which are required by paragraph (a) to be made available for public inspection or published in the current indexes. Facilities are provided whereby a person may inspect and ob- tain copies of the material. There is no
fee for access to materials, but a fee is charged in accordance with § 103.10 for a copy of any material provided.
§ 103.5 Specific requests for records. (a) In general. Except with respect to
the records made available under §§ 103.3 and 103.4, but subject to the ap- plication of the exemptions described in § 103.12, the United States Customs Service is required, by 5 U.S.C. 552(a)(3), upon a request for reasonably- described records that conforms in every respect to the rules and proce- dures of this part, to make the re- quested records promptly available to the requester. A request or an appeal from the initial denial of a request which does not comply with the re- quirements set forth in this part is not subject to the time limits of §§ 103.6, 103.7, and 103.8 until amended so as to comply. Nevertheless, every reasonable effort will be made to answer each re- quest within the applicable time limits or, if necessary, to promptly advise the requester in what respect the request or appeal is deficient so that it may be resubmitted or amended for consider- ation in accordance with this part. This section applies only to existing records which are in the possession or control of the United States Customs Service. There is no requirement that records be created or data be processed in other than the existing format in order to answer a request for records.
(b) Requests for records not in control of the United States Customs Service—(1) Referral of request. Where the request is for a record in the possession of, under the control of, or created by a con- stituent unit of the Department of the Treasury other than the United States Customs Service, the appropriate Cus- toms officer shall transfer the request to the appropriate constituent unit and notify the requester of that transfer. Forwarding a request to another con- stituent unit is not a denial of access within the meaning of these regula- tions. If the United States Customs Service receives a request forwarded from another constituent unit of the Department of the Treasury, the time limits for response set forth in §§ 103.6(b) and 103.8(a) commence upon receipt of the request by the Disclosure Law Officer, U.S. Customs Service. If
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the United States Customs Service re- ceives a request for a record that is not in the possession or control of any con- stituent unit of the Department of the Treasury, the appropriate Customs of- ficer shall return the request to the sender with an explanation of that fact.
(2) Request for advice. If the Customs Service has a copy of a requested un- classified record that was created by a Department or agency other than a constituent unit of the Department of the Treasury, the appropriate Customs officer shall ask that Department or agency for its advice on the release of the record. The appropriate Customs officer shall advise the other Depart- ment or agency that, in the absence of timely guidance from it, the United States Customs Service will proceed to make its own determination in accord- ance with this part. If it becomes nec- essary to respond to a requester be- cause of the time limits set forth in §§ 103.6(b) and 103.8(a) without the ad- vice of the other Department or agen- cy, the appropriate Customs officer shall make the determination in ac- cordance with this part and advise the requester accordingly. If the appro- priate Customs officer denies access to the record under one of the exemptions set forth in § 103.12, that officer shall advise the requester of the right to ap- peal the denial and of the possibility of sending a request for the record di- rectly to the originating Department or agency. If a requester appeals from a denial to the United States Customs Service, the appropriate Customs offi- cer shall ask the originating Depart- ment or agency for timely advice on whether to release the records. Never- theless, the ultimate decision on the appeal from a denial of access to a record rests with the FOIA Appeals Of- ficer, as set forth in § 103.7.
(3) Classified records. If the Customs Service has a copy of a requested record created by a Department or agency other than a constituent unit of the Department of the Treasury, and that record is classified or contains both classified and unclassified mate- rial, the request shall be referred to the originating Department or agency for a direct response. The requester shall be notified immediately of the referral.
Such referral shall not constitute a de- nial of the request and no appeal rights accrue to the requester.
(c) Form of request. Although no standard form is prescribed for a re- quest, in order to be subject to the pro- visions of this section and §§ 103.6 through 103.9, a request for records must:
(1) Be made in writing and signed by the person making that request;
(2) State that it is made pursuant to the Freedom of Information Act, as amended (5 U.S.C. 552), or these regula- tions, and have conspicuously printed on the face of the envelope the words ‘‘Freedom of Information Act Request’’ or ‘‘FOIA Request’’;
(3) Be addressed to the appropriate office or officer of the United States Customs Service, as set forth in para- graph (d) of this section;
(4) Reasonably describe the records in accordance with paragraph (e) of this section.
(5) Set forth the address where the person making the request desires to be notified of the determination as to whether the request will be granted;
(6) State whether the requester wish- es to inspect the records or desires to have a copy made and furnished with- out first inspecting them; and
(7) State the firm agreement of the requester to pay the fees for search and duplication ultimately determined in accordance with § 103.10, or request that such fees be reduced or waived and state the justification for such request (see § 103.10(d)). Where the initial request, rather than stating a firm agreement to pay the fee ultimately determined in accordance with § 103.10, places an upper limit on the amount the requester agrees to pay and that upper limit is likely to be lower than the estimated fee, or where the requester asks for an estimate of the fees to be charged, or if the fees are expected to exceed $50, the appropriate Customs officer shall promptly advise the requester of the estimated fee due and ask the requester to agree to pay that amount. Where the initial request includes a request for reduction or waiver of fees, the appropriate Customs officer shall determine whether to grant the request for reduction or waiver in accordance with § 103.10(d)
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and notify the requester of the deci- sion. If the officer decides to charge the requester for all or part of the fees normally due, the officer shall ask the requester to agree to pay the amount so determined. The requirements of this paragraph are not met until the requester agrees, in writing, to pay the fees applicable to the request for records, if any, or has made payment in advance of the fees estimated to be due.
(d) To whom requests for records should be addressed—(1) Headquarters. Requests made by mail for records maintained at the Headquarters of the United States Customs Service should be addressed to ‘‘Freedom of Information Act Re- quest,’’ U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229. Requests may be de- livered personally to the Disclosure Law Officer, U.S. Customs Service, Headquarters, Washington, DC.
(2) Field offices. A person shall re- quest records or information main- tained in a field office of the United States Customs Service by either mail- ing or personally delivering the request to the director of the service port, or if the records concern the Office of Inves- tigations, the special agent in charge, where the field office is located.
(e) Reasonable description of records. A request for records must describe the records in reasonably sufficient detail to enable a Customs officer who is fa- miliar with the subject area of the re- quest to locate the records without placing an unreasonably burden upon the United States Customs Service. While no specific formula for a reason- able description of a record can be es- tablished, the requirement is usually satisfied if the requester gives the name, subject matter, and, if known, the date and location of the requested record. However, a requester should furnish any additional information which will more clearly identify the re- quested records. If a request does not reasonably describe the records being sought, the appropriate Customs offi- cer shall ask the requester to refine the request. If necessary a requester may be granted a conference with knowl- edgeable Customs personnel. The re- quirement for a reasonably description
is not a device for improperly with- holding records from the public.
(f) Date of receipt of request. A request for records is considered to have been received for purposes of this part on the later of the dates on which:
(1) The requirements of paragraph (c) of this section have been satisfied; and, where applicable,
(2) The requester has agreed in writ- ing, by executing a separate contract or otherwise, to pay the fees for search and duplication determined to be due in accordance with § 103.10; or
(3) The fees have been waived in ac- cordance with § 103.10(d); or
(4) Payment in advance has been re- ceived from the requester. A Customs officer or employee who re- ceives a request for records and a sepa- rate agreement to pay, or a letter transmitting prepayment, or who issues a final notification of waiver of fees, shall stamp the date of receipt or dispatch by the responsible office on the materal. The latest of those dates is the date of receipt of the request. As soon as the date of receipt has been es- tablished, the appropriate Customs of- ficer shall acknowledge receipt and in- form the requester of the title of the Customs officer who is responsible for acting on the request.
(g) Search for record requested. Upon the receipt of a request, the appro- priate Customs officer shall attempt to identify and locate the requested records. With respect to records main- tained in computerized form, a search for a record includes services function- ally analogous to searches for records which are maintained in a conven- tional form. However, Customs per- sonnel are not required to tabulate or compile information for the purpose of creating a record. Only records in ex- istence at the time of the receipt of the request will be treated as falling within the scope of the request and no request for the continuing production of docu- ments created after receipt of the re- quest will be honored.
(h) ‘‘Request for record’’ defined. For purposes of uniformity in record- keeping a ‘‘request for a record’’ is de- fined as a written request for a record of the U.S. Customs Service which has not been published in the FEDERAL REGISTER, the Customs Bulletin, by
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19 CFR Ch. I (4–1–12 Edition)§ 103.6
press release, or otherwise, or made available in a public reading room, or which has not previously been custom- arily furnished to requesters, whether or not the request makes reference to the Freedom of Information Act, as amended (5 U.S.C. 552).
[T.D. 81–168, 46 FR 32565, June 24, 1981; 46 FR 35084, July 7, 1981, as amended by T.D. 91–77, 56 FR 46114, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 103.6 Grant or denial of initial re- quest.
(a) Officers designated to make initial determinations—(1) Service ports. The ap- propriate director of a service port, or in the case of records of the Office of Investigations, the appropriate special agent in charge (SAC), shall make any initial determination of a request for a record which is maintained, respec- tively, at that service port or under the SAC’s jurisdiction.
(2) Headquarters. For records located at Customs Service Headquarters, the initial determination to grant or deny a request shall be made by the appro- priate Division Director at Customs Service Headquarters having custody of or functional jurisdiction over the subject matter of the requested records. In the event the request re- lates to records which are maintained in an office which is not within a divi- sion, the initial determination shall be made by the individual designated for that purpose by the Assistant Commis- sioner having responsibility for that of- fice.
(b) Time limit for initial determinations. The time limit for making an initial determination to grant or deny a re- quest for records, including the time for notifying the requester of that de- termination, is 10 days (excepting Sat- urdays, Sundays, and legal public holi- days) after the date of receipt of the re- quest (see § 103.5(f)), unless the des- ignated officer invokes an extension pursuant to § 103.8(a) or the requester otherwise agrees to an extension.
(c) Grant of request. If the appropriate Customs officer grants a request, and if the requester wants a copy of the re- quested records, that officer shall mail a copy of those records to the requester together with a statement of the fees for search and duplication at the time
of the determination or promptly thereafter. If a requester wants to in- spect the record, the appropriate Cus- toms officer who grants the request shall send written notice to the re- quester stating the time and place of inspection and the amount of any fee involved in the request. In such a case, the appropriate Customs officer shall make the record available for inspec- tion at the time and place stated, but in a manner so as not to interfere with its use by the United States Customs Service or to exclude other persons from making an inspection. In addi- tion, reasonable limitations may be placed on the number of records which may be inspected by a person on any given date. The requester is not al- lowed to remove a record from the in- spection room. If, after making inspec- tion, the requester wants a copy of all or a portion of the requested record, the appropriate Customs officer shall supply the desired copy upon payment of the established fee prescribed in § 103.10.
(d) Denial of request. The Customs of- ficer who denies a request for records (whether in whole or in part) shall mail written notice of the denial to the re- quester. The letter of notificatimn shall contain (1) the physical location of the requested records, (2) the appli- cable exemption(s) and reason for not granting the request, (3) the name and title or position of the Customs officer who denied the request, (4) advice on the right to administrative appeal in accordance with § 103.7, and (5) the title and address of the Customs officer who is to decide any appeal.
(e) Inability to locate records within time limits. If a requested record cannot be located and evaluated within the initial 10-day period or the extension period allowed under § 103.8(a), the Cus- toms officer who is responsible for the initial determination shall continue to search for the records. However, that officer shall also notify the requester of the facts and inform the requester that he or she may consider the notifi- cation to be a denial of access within the meaning of paragraph (d) of this section, and provide the requester with the address for the submission of an ad- ministrative appeal. The requester may also be invited, in the alternative, to
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agree to a voluntary extension of time in which to locate and evaluate the records. A voluntary extension of time does not waive a requester’s right to appeal any ultimate denial of access or to appeal a failure to locate the records within the voluntary extension period.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 96–36, 61 FR 19838, May 3, 1996]
§ 103.7 Administrative appeal of initial determination.
(a) To whom appeals should be sub- mitted. A requester may submit an ad- ministrative appeal to the FOIA Ap- peals Officer at Headquarters, within 35 days after the date of notification de- scribed in § 103.6 or the date of the let- ter transmitting the last records re- leased, whichever is later. A requester shall mail or personally deliver an ap- peal to the United States Customs Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
(b) Form of appeal. The Administra- tive appeal shall:
(1) Be in writing and signed by the re- quester,
(2) Have conspicuously printed on the face of the envelope the words ‘‘Free- dom of Information Act Appeal’’;
(3) Reasonably describe, in accord- ance with § 103.5(e), the records to which the appeal relates;
(4) Set forth the address where the requester desires to be notified of the determination on appeal;
(5) Specify the date of the initial re- quest and the date and control number of the letter denying the initial re- quest; and
(6) Petition the FOIA Appeals Officer at Headquarters, to grant the request for records and state any arguments in support thereof.
(c) Disposition of appeal. The Customs officer or employee who receives an ap- peal shall stamp the date of receipt on the appeal and the stamped date is the date of receipt for purposes of the ap- peal. FOIA Appeals Officer at Head- quarters, shall acknowledge and advise the appellant of the date of receipt and of the date that a response is due under this paragraph. The FOIA Appeals Offi- cer shall affirm the initial denial (in whole or in part) or grant the request for records and notify the appellant of
that determination by letter mailed within 20 days (exclusive of Saturdays, Sunday, and legal public holidays) after the date of receipt of the appeal, unless extended pursuant to § 103.8(a). The purpose of the letter of denial is to inform the appellant of the reason for the denial and the right to judicial re- view of that denial under 5 U.S.C. 552(a)(4)(B). If the FOIA Appeals Officer is unable to act on an appeal within the 20-day period (or any extension thereof pursuant to § 103.8(a)), the FOIA Appeals Officer shall send written no- tice of that fact to the appellant. In those circumstances, an appellant is entitled to commence an action in a district court as provided in § 103.9 de- spite any continuation in the proc- essing of an appeal. However, the ap- pellant may also be invited, in the al- ternative, to agree to a voluntary ex- tension of time in which to decide the appeal. A voluntary extension does not waive the right of the appellant to ulti- mately commence an action in a United States district court on the ap- pellant’s request.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 103.8 Time extensions. (a) Ten-day extension. In unusual cir-
cumstances, the Customs officer who is responsible for deciding an initial re- quest or an appeal may extend the time limitations set in §§ 103.6 and 103.7 after written notice to the requester or ap- pellant. This notice must state the rea- son for the extension and the date on which the determination is expected to be dispatched. Any extension or exten- sions of time are limited to a cumu- lative total of not more than 10 addi- tional working days. (For example, if an extension pursuant to this para- graph is invoked in connection with an initial determination, any unused days of the extension period may be invoked in connection with the determination on administrative appeal by written notice from the FOIA Appeals Officer, who is to make the appellate deter- mination. If no extension is sought for the initial determination, an extension of 10 days may be added to the ordinary 20-day period for appellant review.) Generally, extensions will be invoked
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19 CFR Ch. I (4–1–12 Edition)§ 103.9
only to the extent reasonably nec- essary to properly respond to a request. As used in this paragraph, ‘‘unusual circumstances’’ means at least one of the following:
(1) The need to search for and collect the requested records from field facili- ties or other establishments in build- ings other than the building in which the office of the Customs officer to whom the request is made is located.
(2) The need to search for, collect, and appropriately examine a volumi- nous amount of separate and distinct records which are demanded in a single request.
(3) The need for consultation, which shall be conducted with all practicable speed, with another Department or agency having a substantial interest in the determination of the request, among two or more constituent units within the Department of the Treas- ury, or within offices of the United States Customs Service (other than the legal staff or Office of Congressional & Public Affairs) having substantial sub- ject-matter interest therein. Consulta- tions with personnel of the Department of Justice concerned with requests for records under the Freedom of Informa- tion Act, as amended (5 U.S.C. 552), do not constitute a basis for an extension under this paragraph.
(b) Extension by judicial review. If the United States Customs Service fails to comply with the time limitations spec- ified in §§ 103.6 and 103.7 and the re- quester commences an action under § 103.9, the court in which the suit was initiated may retain jurisdiction and allow the United States Customs Serv- ice additional time to review its records, if the Customs Service shows the existence of exceptional cir- cumstances and the exercise of due diligence in responding to the request.
[T.D. 81–168, 46 FR 32565, June 24, 1981; 46 FR 35084, July 7, 1981, as amended by T.D. 91–77, 56 FR 46114, Sept. 10, 1991]
§ 103.9 Judicial review. (a) Failure to comply with time limita-
tions. If the United States Customs Service fails to comply with the time limitations specified in §§ 103.6, 103.7 or § 103.8, a requester is considered to have exhausted the administrative remedies with respect to the request.
(b) Procedure of initiating judicial re- view. If a request for records is denied upon appeal pursuant to § 103.7, or if no determination is made within the 10- day or 20-day periods specified in §§ 103.6 and 103.7, respectively, together with an extension pursuant to § 103.8(a) or by agreement of the requester, the requester may commence an action under 5 U.S.C. 552(a)(4)(B) in a United States district court in the district (1) in which the requester resides, (2) in which the requester’s principal place of business is located, (3) in which the records are situated, or (4) in the Dis- trict of Columbia. Service of process in that action is governed by the Federal Rules of Civil Procedure (28 U.S.C. App.) applicable to actions against an agency of the United States. The Chief Counsel, United States Customs Serv- ice, 1300 Pennsylvania Avenue, NW., Washington, DC 20229 is the officer des- ignated to receive any service of proc- ess.
(c) Proceeding against officer or em- ployee. Under 5 U.S.C. 552(a)(4)(F), the Special Counsel, Merit Systems Pro- tection Board, has authority, upon the issuance of a written finding by a court that the Customs officer or employee who was primarily responsible for withholding a record may have acted arbitrarily or capriciously, to initiate a proceeding to determine whether dis- ciplinary action is warranted against that officer or employee. The Special Counsel, after investigation and con- sideration of the evidence submitted, submits its findings and recommenda- tions to the Commissioner of Customs and the Secretary of the Treasury. The Special Counsel also sends copies of the findings and recommendations to the officer or employee or the representa- tive of that officer or employee.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 103.10 Fees for services. (a) In general. (1) The fees prescribed
in this section are for search and dupli- cation and under no circumstances is there a fee for determining whether an exemption can or should be asserted, for deleting exempt matter being with- held from records to be furnished, or for monitoring a requester’s inspection
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of records made available in this man- ner.
(2) Customs publications which are available for sale through the Govern- ment Printing Office are on the shelves of the reading rooms and similar public inspection facilities, but those publica- tions are not available for sale at those facilities. Those publications may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. However, pages from those publications may be copied at the public inspection facili- ties in accordance with the schedule of fees set forth in paragraph (g) of this section.
(b) When charged. Unless charges are inapplicable, or are waived or reduced in accordance with paragraph (c) or (d) of this section, fees are charged in ac- cordance with the schedule contained in paragraph (g) of this section for services rendered in responding to re- quests for records.
(c) Services performed without charge— (1) Certain classes of records. The Com- missioner of Customs or any of the Commissioner’s designees may deter- mine, under the rulemaking procedures of 5 U.S.C. 553, which classes or records under their control may be provided to the public without charge, or at a re- duced charge.
(2) Records provided to government units. Normally, in accordance with paragraph (d)(2)(ii) of this section, no charge is made for providing records to Federal, State, or foreign governments, international governmental organiza- tions, or local governmental agencies or offices.
(d) Waiver or reduction of fees—(1) Records unavailable or exempt. Fees may be waived or reduced at the discretion of the Customs officer who determines the availability of records, if the record is not found or is exempt from disclosure.
(2) Request for waiver or reduction of fees. Fees may be waived or reduced on a case by case basis in accordance with this paragraph by the Customs officer who determines whether to release the record. A request for a waiver or reduc- tion of fees must be in writing. The ap- propriate Customs officer shall waive or reduce a fee if the officer determines either that:
(i) The records are being requested by, or on behalf of, an individual who in writing, under penalty or perjury, demonstrates indigency to the satisfac- tion of the officer and that compliance with the request does not constitute an unreasonable burden on the United States Customs Service; or
(ii) A waiver or reduction of the fees is in the public interest because fur- nishing the information primarily ben- efits the general public.
(3) Appeal from denial of request. An appeal from a denial of a request for waiver or reduction of fees is decided under the criteria set forth in para- graph (d)(2) of this section by the FOIA Appeals Officer. An appeal shall be in writing and mailed to the FOIA Ap- peals Officer within 35 days of the de- nial of the initial request for waiver or reduction. An appeal under this para- graph is entitled to a prompt decision.
(e) Avoidance of unexpected fees. In order to protect a requester from unex- pected fees, a requester is required to state in the request an agreement to pay the fees determined in accordance with paragraph (g) of this section or to state an acceptable upper limit on the cost of processing the request. If the fee for processing the request is esti- mated to exceed that limit, or if the re- quester has failed to state a limit and the cost is estimated to exceed $50 and there is no decision to waive or reduce the fees, the appropriate Customs offi- cer shall:
(1) Inform the requester of the esti- mated costs;
(2) Extend an offer to the requester to confer with Customs personnel in an attempt to reformulate the request in a manner which will reduce the fee and still meet the needs of the requester, and
(3) Inform the requester that the run- ning of the time period within which a determination on the request must be made is suspended until the request is reformulated in manner to reduce the cost or until the requester pays or agrees to pay the estimated cost.
(f) Form of payment. (1) A requester shall pay by a check or money order that is payable to the order of the United States Customs Service.
(2) If the estimated cost exceeds $50, the requester may be required to enter
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into a contract for the payment of ac- tual costs, as determined in accordance with paragraph (g) of this section, which contract may provide for prepay- ment of the estimated costs in whole or in part.
(g) Amount to be charged for specified services. A fee for a service performed is imposed and collected as set forth in this paragraph. The Commissioner of Customs or the Commissioner’s des- ignee may set an appropriate fee for any service not described below. These extraordinary fees are imposed and col- lected pursuant to 31 U.S.C. 483a, sub- ject to the constraints imposed by 5 U.S.C. 552(a)(4)(A).
(1) Duplication. (i) The charge for pho- tocopies per page up to 81⁄2″×14″ is at the rate of $0.15 each.
(ii) The charge for photographs, films and other materials is their actual cost. The Customs Service may furnish the records to be released to a private contractor for copying and charge the person requesting the records the ac- tual cost of duplication charged by the private contractor. No fee is charged where the requester furnishes the sup- plies and equipment and makes the copies at the Government location.
(2) Unpriced printed materials. The charge for unpriced printed material, which is available at the location where requested and which does not re- quire duplication for copies to be fur- nished, is at the rate of $0.25 for each twenty-five pages or fraction thereof.
(3) Search services. The charge for services of personnel involved in locat- ing records is $10.00 for each hour or fraction thereof. If a computer search is required because of the nature of the records sought and the manner in which the records are stored, the fee is $10.00 for each hour or fraction thereof of personnel time associated with the search plus the actual cost of extract- ing the stored information in the for- mat in which it is normally produced. This actual cost of extracting informa- tion is based on computer time and supplies necessary to comply with the request.
(4) Searches requiring travel or trans- portation. The charge for transporting a record from one location to another, or for transporting a Customs officer or employee to the site of requested
records when it is necessary to locate rather then examine the records, is the actual cost of the transportation.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 84–149, 49 FR 28699, July 16, 1984]
§ 103.11 Specific Customs Service records subject to disclosure.
(a) Administrative staff manuals and instructions. Except as exempted by § 103.12, all administrative staff manu- als and instructions to staff that affect any member of the public, and indexes thereto, are available for public inspec- tion and copying in the Customs Serv- ice public reference facilities (see § 103.1), including the following:
Forms Catalog. Customs and other agency forms currently available from the Cus- toms Service.
Legal Precedent Retrieval System. The di- rectory is a listing by selected keywords of all classification rulings issued since early 1974 that affect a substantial volume of im- ports or transactions or are of general in- terest or importance, and of all published classification rulings issued since August 31, 1963, including classification decisions, and classification rulings circulated within the Customs Service by the Customs Infor- mation Exchange and the Office of Regula- tions and Rulings. The directory also con- tains limited information on decisions and rulings pertaining to entry, value, draw- back, marking, country of origin, and ves- sel repairs. The directory is maintained on microfiche and is continually updated. Du- plicate microfiche are available for 15¢ each, through subscription or in individual sets. The costs of a set will depend upon the number of microfiche it contains.
Fines, Penalties, and Forfeitures Handbook. Collects in one document information re- lating to the total management of the fines, penalties, and forfeitures program.
Inspector Rate Book. A ready reference guide for inspection personnel. Contains an abbreviated Tariff Schedules of the United States and other reference material.
Customs Issuance System (CIS) Index. The index provides a brief description of circu- lars, manuals, legal rulings, decisions, and other Customs documents.
Operational Handbook of Other Agency Re- quirements Enforced by the U.S. Customs Service.
Customs Valuation under the Trade Agree- ments Act of 1979.
Fundamentals of Customs Tariff and Trade Operations Handbook. Material relating to the duties and responsibilities of import
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specialists: entry of merchandise, restric- tions, prohibitions and other agency re- quirements, special trade programs, invoicing and related documentation, ex- amination of merchandise, Customs valu- ation, tariff classification, liquidation, protests, and miscellaneous import spe- cialist concerns.
(b) Other Customs records. In general, all other documents issued by the Sec- retary of the Treasury, the Commis- sioner of Customs, or other officers of the Department of the Treasury or of the United States Customs Service in matters administered by the United States Customs Service, if reasonably described, and unless exempted from disclosure under § 103.12, are available. The classes of records of the United States Customs Service which may be made available under this paragraph upon written request submitted in ac- cordance with § 103.5 include, but are not limited to the following:
(1) Records relating to: (i) Comments submitted by private
parties (which are not considered to in- clude foreign governments) in response to a published notice of proposed rule- making and of proposed changes in tar- iff classification, unless the submitter states that the information is privi- leged or confidential, giving reasons therefor, and the Commissioner of Cus- toms agrees that the information con- tained therein is exempt from disclo- sure under § 103.12;
(ii) Advisory committees on Customs matters;
(iii) Rosters of licensed customhouse brokers;
(iv) Names of individual licensed cus- tomhouse brokers;
(v) Names and titles of all Customs personnel;
(vi) Performance awards; (vii) Suggestion awards; (viii) The administration of and deci-
sions concerning import quotas; and (ix) Customs laboratory methods. (2) Decisions concerning—(i) Matters
arising under the Tariff Schedules of the United States and the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202);
(ii) Whether or not specific items, ar- ticles, or merchandise qualify for entry under the Trade Fair Act of 1959 (19 U.S.C. 1751 et seq.), and the disposition of articles previously entered under the
Trade Fair Act; Customs participation and assistance at Trade Fairs;
(iii) The dutiable status of gifts pur- suant to section 321, Tariff Act of 1930, as amended (19 U.S.C. 1321);
(iv) The eligibility of vehicles used in international traffic pursuant to sec- tion 332(a), Tariff Act of 1930 (19 U.S.C. 1322(a)), and other instruments of international traffic generally for duty-free entry;
(v) Prohibition from entry of mer- chandise produced by convict, forced, or indentured labor (19 U.S.C. 1307);
(vi) The entry or valuation of mer- chandise;
(vii) Liens in cases arising under sec- tion 564, Tariff Act of 1930, as amended (19 U.S.C. 1564);
(viii) Bills of lading, carriers’ certifi- cates, or rights in respect of merchan- dise, cases arising under section 483 or 484(c), (h), or (i), Tariff Act of 1930, as amended (19 U.S.C. 1483, 1484(c), (h), (i));
(ix) Trademarks, trade names, copy- rights, patents, and related matters;
(x) Country of origin marking re- quirements of section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304);
(xi) Psittacine or other birds, bird feathers, bird skins, monkeys, dogs, cats, and other animals and pets pro- hibited entry or subject to restrictions and controls on entry;
(xii) Entry of articles admitted tem- porarily free of duty under bond as pro- vided in Schedule 8, part 5C, Tariff Schedules of the United States and Chapter 98, Subchapter XIII, HTSUS (19 U.S.C. 1202), and entry of articles admitted temporarily free of duty under A.T.A. Carnets, as provided in § 114.22(a) of this chapter;
(xiii) Tonnage taxes (regular, special, and discriminatory) and light money;
(xiv) The entry, clearance and use of vessels and permits for them to proceed coastwise;
(xv) The regulation of vessels in the foreign, coastal, fishing, and other trades of the United States;
(xvi) The limitation of the use of for- eign vessels in waters under the juris- diction of the United States;
(xvii) Salvage operations by vessels within the territorial waters of the United States (46 U.S.C. 316);
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(xviii) The assessment and collection of duties on equipment or repairs of vessels or aircraft under section 466, Tariff Act of 1930, as amended (19 U.S.C. 1466), and the remission or re- fund of such duties;
(xix) Requirements for entry, clear- ance, and use of aircraft;
(xx) The arrival or departure and the use of motor vehicles, railway trains, or other vehicles;
(xxi) Adequacy of premises at Cus- toms bonded warehouses and control of the merchandise stored therein;
(xxii) Use of protective Customs seals and labels; and
(xxiii) The itineraries of foreign ves- sels which had been submitted for an advisory ruling to determine whether the primary object of a contemplated voyage would be considered to unlawful coastwise trade (see § 4.80a(d) of this chapter).
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 85–123, 50 FR 29954, July 23, 1985; T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 103.12 Exemptions. Pursuant to 5 U.S.C. 552(b), the dis-
closure requirements of 5 U.S.C. 552(a) are not applicable to U.S. Customs Service records which relate to the fol- lowing:
(a) Matters kept secret pursuant to Ex- ecutive order. Matters specifically au- thorized under criteria established by an Executive order to be kept secret in the interest of national defense or for- eign policy and which are, in fact, properly classified pursuant to such Executive order (see 31 CFR part 2).
(b) Certain internal rules and proce- dures. Information relating solely to the internal personnel rules and prac- tices of an agency.
(c) Matters exempt from disclosure by statute. Information specifically ex- empted from disclosure by statute (other than 5 U.S.C. 552b), if the statute (1) requires that the matters be with- held from the public in such a manner as to leave no discretion on the issue, or (2) establishes particular criteria for withholding or refers to particular types of matters to be withheld.
(d) Privileged or confidential informa- tion. Trade secrets and commercial or financial information obtained from
any person which is privileged or con- fidential.
(e) Certain inter-agency or intra-agency correspondence. Inter-agency or intra- agency memoranda or letters which would not be available by law to a pri- vate party in litigation with the agen- cy.
(f) Material involving personal privacy. Personnel and medical files and similar files the disclosure of which would con- stitute a clearly unwarranted invasion of personal privacy.
(g) Certain investigatory records. Records or information compiled for law enforcement purposes, but only to the extent that the production of such enforcement records or information:
(1) Could reasonably be expected to interfere with enforcement pro- ceedings;
(2) Would deprive a person of a right to a fair trial or an impartial adjudica- tion;
(3) Could reasonably be expected to constitute an unwarranted invasion of personal privacy;
(4) Could reasonably be expected to disclose the identity of a confidential source, including a State, local or for- eign agency or authority or any pri- vate institution which furnished infor- mation on a confidential basis, and, in the case of a record or information compiled by a criminal law enforce- ment authority in the course of a criminal investigation, or by an agency conducting a lawful national security intelligence investigation, information furnished by a confidential source;
(5) Would disclose techniques for law enforcement investigations or prosecu- tions, or would disclose guidelines for law enforcement investigations or prosecutions if such disclosure could reasonably be expected to risk cir- cumvention of the law; or
(6) Could reasonably be expected to endanger the life or physical safety of any individual.
(h) Certain pending criminal investiga- tions. Whenever a request is made which involves access to records de- scribed in paragraph (g)(1) of this sec- tion and)—
(1) The investigation or proceeding involves a possible violation of crimi- nal law; and
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(2) There is reason to believe that the subject of the investigation or pro- ceeding is not aware of its pendency, and disclosure of the existence of the records could reasonably be expected to interfere with enforcement pro- ceedings, Customs may, during only such times as that circumstance con- tinues, treat the records as not subject to the requirements of this part.
(i) Certain informant records. When- ever informant records maintained by Customs under an informant’s name or personal identifier are requested by a third party according to the inform- ant’s name or personal identifier, Cus- toms may treat the records as not sub- ject to the requirements of this part unless the informant’s status as an in- formant has been officially confirmed.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 88–22, 53 FR 12937, Apr. 20, 1988]
§ 103.13 Segregability of records. (a) Reasonably segregable portions.
Where the record requested contains information which is exempt from dis- closure under 5 U.S.C. 552(b) and § 103.12, the reasonably segregable por- tions of the record shall be made avail- able to the requester. For purposes of this section, the term ‘‘reasonably seg- regable portions’’ means those portions of the record: (1) Which are not exempt from disclosure by 5 U.S.C. 552(b) and § 103.12; (2) which, after deletion of the exempt material, still convey meaning- ful and nonmisleading information; and (3) from which it can reasonably be as- sumed that a skillful and knowledge- able person could not reconstruct the exempt portions.
(b) Petitions by American manufactur- ers, producers, or wholesalers. Identi- fying data is not to be deleted from pe- titions filed by American manufactur- ers, producers, and wholesalers pursu- ant to section 516, Tariff Act of 1930, as amended (19 U.S.C. 1516). See part 175 of this chapter.
Subpart B—Production or Disclo- sure in Federal, State, Local, and Foreign Proceedings
SOURCE: T.D. 96–36, 61 FR 19838, May 3, 1996, unless otherwise noted.
§ 103.21 Purpose and definitions.
(a) Purpose. (1) This subpart sets forth procedures to be followed with re- spect to the production or disclosure of any documents contained in Customs files, any information relating to ma- terial contained in Customs files, any testimony by a Customs employee, or any information acquired by any per- son as part of that person’s perform- ance of official duties as a Customs em- ployee or because of that person’s offi- cial status, hereinafter collectively re- ferred to as ‘‘information’’, in all fed- eral, state, local, and foreign pro- ceedings when a subpoena, notice of deposition (either upon oral examina- tion or written interrogatory), order, or demand, hereinafter collectively re- ferred to as a ‘‘demand’’, of a court, ad- ministrative agency, or other author- ity is issued for such information.
(2) This subpart does not cover those situations where the United States is a party to the action. In situations where the United States is a party to the action, Customs employees are in- structed to follow internal Customs policies and procedures.
(b) Customs employee. For purposes of this subpart, the term ‘‘Customs em- ployee’’ includes all present and former officers and employees of the United States Customs Service.
(c) Customs documents. For purposes of this subpart, the term ‘‘Customs documents’’ includes any document (including copies thereof), no matter what media, produced by, obtained by, furnished to, or coming to the knowl- edge of, any Customs employee while acting in his/her official capacity, or because of his/her official status, with respect to the administration or en- forcement of laws administered or en- forced by the Customs Service.
(d) Originating component. For pur- poses of this subpart, the term ‘‘origi- nating component’’ references the Cus- toms official, or the official’s designee, in charge of the office responsible for the collection, assembly, or other prep- aration of the information demanded or that, at the time the person whose testimony is demanded acquired the in- formation in question, employs or em- ployed the person whose testimony is demanded.
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(e) Disclosure to government law en- forcement or regulatory agencies. Noth- ing in this subpart is intended to im- pede the appropriate disclosure of in- formation by Customs to federal, state, local, and foreign law enforcement or regulatory agencies, in accordance with the confidentiality requirements of the Privacy Act (5 U.S.C. 552a), the Trade Secrets Act (18 U.S.C. 1905), and other applicable statutes.
(f) Disclosure to federal attorneys and the Court of International Trade. Noth- ing in this subpart is intended to re- strict the disclosure of Customs infor- mation requested by the Court of Inter- national Trade, U.S. Attorneys, or at- torneys of the Department of Justice, for use in cases which arise under the laws administered or enforced by, or concerning, the Customs Service and which are referred by the Department of the Treasury to the Department of Justice for prosecution or defense.
(g) Disclosure of non-Customs informa- tion. Nothing in the subpart is intended to impede the appropriate disclosure of non-Customs information by Customs employees in any proceeding in which they are a party or witness solely in their personal capacities.
(h) Failure of Customs employee to fol- low procedures. The failure of any Cus- toms employee to follow the proce- dures specified in this subpart neither creates nor confers any rights, privi- leges, or benefits on any person or party.
(i) In camera inspection of records. Nothing in this subpart authorizes Cus- toms personnel to withhold records from a federal court, whether civil or criminal, pursuant to its order for such records appropriately made, for pur- poses of in camera inspection of the records to determine the propriety of claimed exemption(s) from disclosure.
§ 103.22 Procedure in the event of a demand for Customs information in any federal, state, or local civil pro- ceeding or administrative action.
(a) General prohibition against disclo- sure. In any federal, state, or local civil proceeding or administrative action in which the Customs Service is not a party, no Customs employee shall, in response to a demand for Customs in- formation, furnish Customs documents
or testimony as to any material con- tained in Customs files, any informa- tion relating to or based upon material contained in Customs files, or any in- formation or material acquired as part of the performance of that person’s of- ficial duties (or because of that per- son’s official status) without the prior written approval of the Chief Counsel, as described in paragraph (b) of this section.
(b) Employee notification to Counsel. Whenever a demand for information is made upon a Customs employee, that employee shall immediately prepare a report that specifically describes the testimony or documents sought and notify the Assistant Chief Counsel or Associate Chief Counsel for the area where the employee is located. If the employee is located at Headquarters or outside of the United States, the em- ployee shall immediately notify the Chief Counsel. The Customs employee shall then await instructions from the Chief Counsel concerning the response to the demand.
(c) Requesting party’s initial burden. A party seeking Customs information shall serve on the appropriate Customs employee the demand, a copy of the Summons and Complaint, and provide an affidavit, or, if that is not feasible, a statement that sets forth a summary of the documents or testimony sought and its relevance to the proceeding. Any disclosure authorization for docu- ments or testimony by a Customs em- ployee shall be limited to the scope of the demand as summarized in such affi- davit or statement. The Chief Counsel may, upon request and for good cause shown, waive the requirements of this paragraph.
(d) Requesting party’s notification re- quirement. The demand for Customs in- formation, pursuant to the provisions of paragraph (c) of this section, shall be served at least ten (10) working days prior to the scheduled date of the pro- duction of the documents or the taking of testimony.
(e) Counsel notification to originating component. Upon receipt of a proper de- mand for Customs information, one which complies with the provisions of paragraph (c) of this section, if the Chief Counsel believes that it will com- ply with any part of the demand, it will
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immediately advise the originating component.
(f) Conditions for authorization of dis- closure. The Chief Counsel, subject to the provisions of paragraph (h) of this section, may authorize the production of Customs documents or the appear- ance and testimony of a Customs em- ployee if:
(1) Production of the demanded docu- ments or testimony, in the judgment of the Chief Counsel, are appropriate under the factors specified in § 103.23(a) of this subpart; and
(2) None of the factors specified in § 103.23(b) of this subpart exist with re- spect to the demanded documents or testimony.
(g) Limitations on the scope of author- ized disclosure. (1) The Chief Counsel shall authorize the disclosure of Cus- toms information by a Customs em- ployee without further authorization from Customs officials whenever pos- sible, provided that:
(i) If necessary, Counsel has con- sulted with the originating component regarding disclosure of the information demanded;
(ii) There is no objection from the originating component to the disclo- sure of the information demanded; and
(iii) Counsel has sought to limit the demand for information to that which would be consistent with the factors specified in § 103.23 of this part.
(2) In the case of an objection by the originating component, the Chief Coun- sel shall make the disclosure deter- mination.
(h) Disclosure of commercial informa- tion. In the case of a demand for com- mercial information or commercial documents concerning importations or exportations, the Chief Counsel shall obtain the authorization of the Assist- ant Commissioner (Field Operations) or his/her designee prior to the Chief Counsel authorizing the production/dis- closure of such documents/information.
§ 103.23 Factors in determining wheth- er to disclose information pursuant to a demand.
(a) General considerations. In author- izing disclosures pursuant to a proper demand for Customs information, one which complies with the provisions of
§ 103.22(c), the Chief Counsel should consider the following factors:
(1) Whether the disclosure would be appropriate under the relevant sub- stantive law concerning privilege;
(2) Whether the disclosure would be appropriate under the rules of proce- dure governing the case or matter in which the demand arose; and,
(3) Whether the requesting party has demonstrated that the information re- quested is:
(i) Relevant and material to the ac- tion pending, based on copies of the summons and complaint that are re- quired to be attached to the subpoena duces tecum or other demand;
(ii) Genuinely necessary to the pro- ceeding, i.e., a showing of substantial need has been made;
(iii) Unavailable from other sources; and,
(iv) Reasonable in its scope, i.e., the documents, information, or testimony sought are described with particu- larity.
(4) Whether consultation with the originating component requires that the Chief Counsel make a separate de- termination as to the disclosure of the information requested.
(b) Circumstances where disclosure will not be made. Among the demands in re- sponse to which disclosure will not be authorized by the Chief Counsel are those demands with respect to which any of the following factors exist:
(1) Disclosure would violate a treaty, statute (such as the Privacy Act, 5 U.S.C. 552a, the Trade Secrets Act, 18 U.S.C. 1905, or the income tax laws, 26 U.S.C. 6103 and 7213), or a rule of proce- dure, such as the grand jury secrecy rule, Fed.R.Crim.Proc. rule 6(e) (18 U.S.C.App.);
(2) Disclosure would violate a specific regulation;
(3) Disclosure would reveal classified or confidential information;
(4) Disclosure would reveal a con- fidential source or informant;
(5) Disclosure would reveal investiga- tory records compiled for law enforce- ment purposes, interfere with enforce- ment proceedings, or disclose inves- tigative techniques and procedures;
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(6) Disclosure would improperly re- veal confidential commercial informa- tion without the owner’s consent (e.g., entry information);
(7) Disclosure relates to documents which were produced by another agen- cy or entity;
(8) Disclosure would unduly interfere with the orderly conduct of Customs business;
(9) Customs has no interest, records, or other official information regarding the matter in which disclosure is sought;
(10) There is a failure to make proper service upon the United States; or
(11) There is a failure to comply with federal, state, or local rules of dis- covery.
§ 103.24 Procedure in the event a deci- sion concerning a demand is not made prior to the time a response to the demand is required.
If response to a demand is required before the instructions from the Chief Counsel are received, the U.S. Attor- ney, his/her assistant, or other appro- priate legal representative shall be re- quested to appear with the Customs employee upon whom the demand has been made. The U.S. Attorney, his/her assistant, or other appropriate legal representative shall furnish the court or other authority with a copy of the regulations contained in this subpart, inform the court or other authority that the demand has been or is being, as the case may be, referred for the prompt consideration of the Chief Counsel, and shall respectfully request the court or authority to stay the de- mand pending receipt of the requested instructions.
§ 103.25 Procedure in the event of an adverse ruling.
If the court or other authority de- clines to stay the demand in response to a request made in accordance with § 103.24 pending receipt of instructions, or rules that the demand must be com- plied with irrespective of instructions rendered in accordance with §§ 103.22, 103.23, 103.26, or 103.27 of this subpart not to produce the documents or dis- close the information sought, the Cus- toms employee upon whom the demand has been made shall, pursuant to this
subpart, respectfully decline to comply with the demand. See, United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951).
§ 103.26 Procedure in the event of a demand for Customs information in a state or local criminal proceeding.
Port directors, special agents in charge, and chiefs of field laboratories may, in the interest of federal, state, and local law enforcement, upon re- ceipt of demands of state or local au- thorities, and at the expense of the State, authorize employees under their supervision to attend trials and admin- istrative hearings on behalf of the gov- ernment in any state or local criminal case, to produce records, and to testify as to facts coming to their knowledge in their official capacities. However, in cases where a defendant in a state or local criminal case demands testimony or the production of Customs docu- ments or information, authorization from the Chief Counsel is required as under § 103.22 of this subpart. No disclo- sure of information under this section shall be made if any of the factors list- ed in § 103.23(b) of this subpart are present.
§ 103.27 Procedure in the event of a demand for Customs information in a foreign proceeding.
(a) Required prior approval for disclo- sure. In any foreign proceeding in which the Customs Service is not a party, no Customs employee shall, in response to a demand, furnish Customs documents or testimony as to any ma- terial contained in Customs files, any information relating to or based upon material contained in Customs files, or any information or material acquired as part of the performance of that per- son’s official duties (or because of that person’s official status) without the prior approval of the Chief Counsel, as described in paragraph (b) of this sec- tion.
(b) Employee notification to Counsel. Whenever a demand in a foreign pro- ceeding is made upon a Customs em- ployee concerning pre-clearance activi- ties within the territory of the foreign country, that employee shall imme- diately notify the appropriate Asso- ciate Chief Counsel responsible for the
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pre-clearance location. All other de- mands in a foreign proceeding shall be reported by Customs employees to the Chief Counsel. The Customs employee shall then await instructions from the Chief Counsel concerning the response to the demand.
(c) Counsel notification to originating component. Upon receipt of a proper de- mand for Customs information, one which complies with the provisions of § 103.22(c), if the Chief Counsel believes that it will comply with any part of the demand, it will immediately advise the originating component.
(d) Conditions for authorization of dis- closure. The Chief Counsel, subject to the terms of paragraph (e) of this sec- tion, may authorize the disclosure of Customs documents or the appearance and testimony of a Customs employee if:
(1) Production of the demanded docu- ments or testimony, in the judgment of the Chief Counsel, are appropriate under the factors specified in § 103.23(a) of this subpart; and
(2) None of the factors specified in § 103.23(b) of this subpart exist with re- spect to the demanded documents or testimony.
(e) Limitations on the scope of author- ized disclosure. (1) The Chief Counsel shall authorize the disclosure of Cus- toms information by a Customs em- ployee without further authorization from Customs officials whenever pos- sible, provided that:
(i) If necessary, Counsel has con- sulted with the originating component regarding disclosure of the information demanded;
(ii) There is no objection from the originating component to the disclo- sure of the information demanded; and
(iii) Counsel has sought to limit the demand for information to that which would be consistent with the factors specified in § 103.23 of this part.
(2) In the case of an objection by the originating component, the Chief Coun- sel shall make the disclosure deter- mination.
Subpart C—Other Information Subject to Restricted Access
§ 103.31 Information on vessel mani- fests and summary statistical re- ports.
(a) Disclosure to members of the press. Accredited representatives of the press, including newspapers, commercial magazines, trade journals, and similar publications shall be permitted to ex- amine vessel manifests and summary statistical reports of imports and ex- ports and to copy therefrom for publi- cation information and data subject to the following rules:
(1) Of the information and data ap- pearing on outward manifests, only the name and address of the shipper, gen- eral character of the cargo, number of packages and gross weight, name of vessel or carrier, port of exit, port of destination, and country of destination may be copied and published. However, if the Secretary of the Treasury makes an affirmative finding on a shipment- by-shipment basis that disclosure of the above information is likely to pose a threat of personal injury or property damage, that information shall not be disclosed to the public.
(2) Commercial or financial informa- tion, such as the names of the con- signees, and marks and numbers shall not be copied from outward manifests or any other papers.
(3) All the information appearing on the cargo declaration (Customs Form 1302) of the inward vessel manifest may be copied and published. However, if the Secretary of the Treasury makes an affirmative finding on a shipment- by-shipment basis that the disclosure of the information contained on the cargo declaration is likely to pose a threat of personal injury or property damage, that information shall not be disclosed to the press.
(b) Review of data. All copies and no- tations from inward or outward mani- fests shall be submitted for examina- tion by a Customs officer designated for that purpose.
(c) Disclosure to the public. Members of the public shall not be permitted to examine vessel manifests. However, they may request and obtain from Cus- toms, information from vessel mani- fests, subject to the rules set forth in
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paragraph (a) of this section. However, importers and exporters, or their duly authorized brokers, attorneys, or agents may be permitted to examine manifests with respect to any consign- ment of goods in which they have a proper and legal interest as principal or agent, but shall not be permitted to make any general examination of manifests or make any copies or nota- tions from them except with reference to the particular importation or expor- tation in which they have a proper and legal interest.
(d) Confidential treatment—(1) Inward manifest. An importer or consignee may request confidential treatment of its name and address contained in inward manifests, to include identifying marks and numbers. In addition, an importer or consignee may request confidential treatment of the name and address of the shipper or shippers to such importer or consignee by using the following procedure:
(i) An importer or consignee, or au- thorized employee, attorney or official of the importer or consignee, must sub- mit a certification (as described in paragraph (d)(1)(ii) of this section) claiming confidential treatment of its name and address. The name and ad- dress of an importer or consignee in- cludes marks and numbers which re- veal the name and address of the im- porter or consignee. An importer or consignee may file a certification re- questing confidentiality for all its shippers.
(ii) There is no prescribed format for a certification. However, the certifi- cation shall include the importer’s or consignee’s Internal Revenue Service Employer Number, if available. There is no requirement to provide sufficient facts to support the conclusion that the disclosure of the names and ad- dresses would likely cause substantial harm to the competitive position of the importer or consignee.
(iii) The certification must be sub- mitted to the Disclosure Law Officer, Headquarters, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229.
(iv) Each initial certification will be valid for a period of two years from the date of receipt. Renewal certifications should be submitted to the Disclosure
Law Officer at least 60 days prior to the expiration of the current certifi- cation. Information so certified may be copied, but not published, by the press during the effective period of the cer- tification. An importer or consignee shall be given written notification by Customs of the receipt of its certifi- cation of confidentiality.
(2) Outward manifest. If a shipper wishes to request confidential treat- ment by Customs of the shipper’s name and address contained in an outward manifest, the following procedure shall be followed:
(i) A shipper, or authorized employee or official of the shipper, must submit a certification claiming confidential treatment of the shipper’s name and address. The certification shall include the shipper’s Internal Revenue Service Employer Number, if available.
(ii) There is no prescribed format for a certification.
(iii) The certification must be sub- mitted to the Disclosure Law Officer, Headquarters, U.S. Customs Service, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229.
(iv) Each certification will be valid for a period of two (2) years from the date of its approval.
(3) If any individual shall abuse the privilege granted him to examining in- ward and outward manifests or shall make any improper use of any informa- tion or data obtained from such mani- fests or other papers filed in the cus- tomhouse, both he and the party or publication which he represents shall thereafter be denied access to such pa- pers.
(e) Availability of manifest data on CD- ROMS—(1) Availability. Manifest data acquired from the Automated Manifest System (AMS) is available to inter- ested members of the public on CD- ROMS. This data, compiled daily, will contain all manifest transactions made on the nationwide system within the last 24 hour period. Data for which par- ties have requested confidential treat- ment in accordance with paragraph (d) of this section will not be included on the CD-ROMS. These CD-ROMS may be purchased at the government’s produc- tion cost. CD-ROMS are available for specific days or on a subscription basis.
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1 Designates data element which will be de- leted where confidentiality has been re- quested.
(2) Requests and subscriptions. Re- quests for CD-ROMS must be in writing and submitted to: U.S. Customs and Border Protection, National Finance Center, Collections Section, P.O. Box 68907, Indianapolis, Indiana 46268, or 6026 Lakeside Blvd., Indianapolis, Indi- ana 46278. Requests must include a check to cover the cost of the CD- ROMS requested. Actual costs and other specific information should be ascertained by contacting the Collec- tions Section at (317) 614–4514. Bills for subscriptions will be issued monthly, with the first month’s fee due in ad- vance. Requested CD-ROMS will be mailed from the CBP Technology Sup- port Center, first class, on the next business day after compilation. Parties desiring another form of delivery will have to make their own arrangements and notify CBP in advance. Subscrip- tions may be canceled provided CBP re- ceives written notice at least 10 days prior to the end of the month. The CBP Technology Support Center must be notified in writing within seven days of technical problems with CD-ROMS or non-receipt of CD-ROMS in order to re- ceive a replacement or credit towards future tape purchases. Refunds will not be provided. Information regarding the technical specifications of the CD- ROMS, problem CD-ROMS or the non- receipt of CD-ROMS should be directed to CBP Technology Support Center at 1–800–927–8729.
(3) Data elements. The following are the data elements from the AMS mani- fest which will be provided to the pub- lic via CD-ROMS:
1. Carrier code. 2. Vessel country code. 3. Vessel name. 4. Voyage number. 5. District/port of unlading. 6. Estimated arrival date. 7. Bill of lading number. 8. Foreign port of lading. 9. Manifest quantity. 10. Manifest units. 11. Weight. 12. Weight unit. 13. Shipper name. 1 14. Shipper address. 1 15. Consignee name. 1 16. Consignee address. 1
17. Notify party name. 1
18. Notify party address. 1
19. Piece count. 20. Description of goods. 21. Container number. 22. Seal number.
[T.D. 81–168, 46 FR 32565, June 24, 1981, as amended by T.D. 84–111, 49 FR 19953, May 10, 1984; 49 FR 23340, June 6, 1984; T.D. 85–123, 50 FR 29954, July 23, 1985; T.D. 91–77, 56 FR 46114–46115, Sept. 10, 1991; T.D. 92–92, 57 FR 44089, Sept. 24, 1992. Redesignated by T.D. 96– 36, 61 FR 19838, May 3, 1996, and amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 01– 14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 08–25, 73 FR 40726, July 16, 2008; CBP Dec. 10–29, 75 FR 52452, Aug. 26, 2010]
§ 103.31a Advance electronic informa- tion for air, truck, and rail cargo; Importer Security Filing informa- tion for vessel cargo.
The following types of advance elec- tronic information are per se exempt from disclosure under § 103.12(d), unless CBP receives a specific request for such records pursuant to § 103.5, and the owner of the information expressly agrees in writing to its release:
(a) Advance cargo information that is electronically presented to Customs and Border Protection (CBP) for in- bound or outbound air, rail, or truck cargo in accordance with § 122.48a, 123.91, 123.92, or 192.14 of this chapter;
(b) Importer Security Filing informa- tion that is electronically presented to CBP for inbound vessel cargo in accord- ance with § 149.2 of this chapter;
(c) Vessel stow plan information that is electronically presented to CBP for inbound vessels in accordance with § 4.7c of this chapter; and
(d) Container status message infor- mation that is electronically presented for inbound containers in accordance with § 4.7d of this chapter.
[CBP Dec. 08–46, 73 FR 71780, Nov. 25, 2008]
§ 103.32 Information concerning fines, penalties, and forfeitures cases.
Except as otherwise provided in these regulations or in other directives (in- cluding those published as Treasury Decisions), port directors and other Customs officers shall refrain from dis- closing facts concerning seizures, in- vestigations, and other pending cases until Customs action is completed. After the penalty proceeding is closed
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by payment of the claim amount, pay- ment of a mitigated amount, or judi- cial action, the identity of the violator, the section of the law violated, the amount of penalty assessed, loss of rev- enue, mitigated amount (if applicable), and the amount of money paid may be disclosed to the public by the appro- priate port director. Public disclosure of any other item of information con- cerning such cases, whether open or closed, shall only be made in conform- ance with the procedures provided in § 103.5.
[T.D. 81–168, 46 FR 32565, June 24, 1981. Redes- ignated by T.D. 96–36, 61 FR 19838, May 3, 1996]
§ 103.33 Release of information to for- eign agencies.
(a) The Commissioner or his designee may authorize Customs officers to ex- change information or documents with foreign customs and law enforcement agencies if the Commissioner or his designee reasonably believes the ex- change of information is necessary to—
(1) Ensure compliance with any law or regulation enforced or administered by Customs;
(2) Administer or enforce multilat- eral or bilateral agreements to which the U.S. is a party;
(3) Assist in investigative, judicial and quasi-judicial proceedings in the U.S.; and
(4) An action comparable to any of those described in paragraphs (a) (1) through (3) of this section undertaken by a foreign customs or law enforce- ment agency, or in relation to a pro- ceeding in a foreign country.
(b)(1) Information may be provided to foreign customs and law enforcement agencies under paragraph (a) of this section only if the Commissioner or his designee obtains assurances from such agencies that such information will be held in confidence and used only for the law enforcement purposes for which such information is provided to such agencies by the Commissioner or his designee.
(2) No information may be provided under paragraph (a) of this section to any foreign customs or law enforce- ment agency that has violated any as-
surances described in paragraph (b)(1) of this section.
[T.D. 86–196, 51 FR 40792, Nov. 10, 1986. Redes- ignated by T.D. 96–36, 61 FR 19838, May 3, 1996]
§ 103.34 Sanctions for improper ac- tions by Customs officers or em- ployees.
(a) The improper disclosure of the confidential information contained in Customs documents, or the disclosure of information relative to the business of one importer or exporter that is ac- quired by a Customs officer or em- ployee in an official capacity to any person not authorized by law or regula- tions to receive this information is a ground for dismissal from the United States Customs Service, suspension, or other disciplinary action, and if done for a valuable consideration subjects that person to criminal prosecution.
(b) Sanctions for improper denials of information by Customs officers or em- ployees are set forth in § 103.9(c).
[T.D. 81–168, 46 FR 32565, June 24, 1981. Redes- ignated by T.D. 96–36, 61 FR 19838, May 3, 1996]
§ 103.35 Confidential commercial infor- mation; exempt.
(a) In general. For purposes of this section, ‘‘commercial information’’ is defined as trade secret, commercial, or financial information obtained from a person. Commercial information pro- vided to CBP by a business submitter will be treated as privileged or con- fidential and will not be disclosed pur- suant to a Freedom of Information Act (FOIA) request or otherwise made known in any manner except as pro- vided in this section.
(b) Notice to business submitters of FOIA requests for disclosure. Except as provided in paragraph (b)(2) of this sec- tion, CBP will provide business submit- ters with prompt written notice of re- ceipt of FOIA requests or appeals that encompass their commercial informa- tion. The written notice will describe either the exact nature of the commer- cial information requested, or enclose copies of the records or those portions of the records that contain the com- mercial information. The written no- tice also will advise the business sub- mitter of its right to file a disclosure
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objection statement as provided under paragraph (c)(1) of this section. CBP will provide notice to business submit- ters of FOIA requests for the business submitter’s commercial information for a period of not more than 10 years after the date the business submitter provides CBP with the information, un- less the business submitter requests, and provides acceptable justification for, a specific notice period of greater duration.
(1) When notice is required. CBP will provide business submitters with no- tice of receipt of a FOIA request or ap- peal whenever:
(i) The business submitter has in good faith designated the information as commercially- or financially-sen- sitive information. The business sub- mitter’s claim of confidentiality should be supported by a statement by an authorized representative of the business entity providing specific jus- tification that the information in ques- tion is considered confidential com- mercial or financial information and that the information has not been dis- closed to the public; or
(ii) CBP has reason to believe that disclosure of the commercial informa- tion could reasonably be expected to cause substantial competitive harm.
(2) When notice is not required. The no- tice requirements of this section will not apply if:
(i) CBP determines that the commer- cial information will not be disclosed;
(ii) The commercial information has been lawfully published or otherwise made available to the public; or
(iii) Disclosure of the information is required by law (other than 5 U.S.C. 552).
(c) Procedure when notice given—(1) Opportunity for business submitter to ob- ject to disclosure. A business submitter receiving written notice from CBP of receipt of a FOIA request or appeal en- compassing its commercial informa- tion may object to any disclosure of the commercial information by pro- viding CBP with a detailed statement of reasons within 10 days of the date of the notice (exclusive of Saturdays, Sundays, and legal public holidays). The statement should specify all the grounds for withholding any of the commercial information under any ex-
emption of the FOIA and, in the case of Exemption 4, should demonstrate why the information is considered to be a trade secret or commercial or financial information that is privileged or con- fidential. The disclosure objection in- formation provided by a person pursu- ant to this paragraph may be subject to disclosure under the FOIA.
(2) Notice to FOIA requester. When no- tice is given to a business submitter under paragraph (b)(1) of this section, notice will also be given to the FOIA requester that the business submitter has been given an opportunity to ob- ject to any disclosure of the requested commercial information. The requester will be further advised that a delay in responding to the request may be con- sidered a denial of access to records and that the requester may proceed with an administrative appeal or seek judicial review, if appropriate. The no- tice will also invite the FOIA requester to agree to a voluntary extension(s) of time so that CBP may review the busi- ness submitter’s disclosure objection statement.
(d) Notice of intent to disclose. CBP will consider carefully a business sub- mitter’s objections and specific grounds for nondisclosure prior to de- termining whether to disclose commer- cial information. Whenever CBP de- cides to disclose the requested com- mercial information over the objection of the business submitter, CBP will provide written notice to the business submitter of CBP’s intent to disclose, which will include:
(1) A statement of the reasons for which the business submitter’s disclo- sure objections were not sustained;
(2) A description of the commercial information to be disclosed; and,
(3) A specified disclosure date which will not be less than 10 days (exclusive of Saturdays, Sundays, and legal public holidays) after the notice of intent to disclose the requested information has been issued to the business submitter. Except as otherwise prohibited by law, CBP will also provide a copy of the no- tice of intent to disclose to the FOIA requester at the same time.
(e) Notice of FOIA lawsuit. Whenever a FOIA requester brings suit seeking to compel the disclosure of commercial information covered by paragraph
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19 CFR Ch. I (4–1–12 Edition)Pt. 111
(b)(1) of this section, CBP will prompt- ly notify the business submitter in writing.
[CBP Dec. 03–02, 68 FR 47454, Aug. 11, 2003]
PART 111—CUSTOMS BROKERS
Sec. 111.0 Scope.
Subpart A—General Provisions
111.1 Definitions. 111.2 License and district permit required. 111.3 [Reserved] 111.4 Transacting customs business without
a license. 111.5 Representation before Government
agencies.
Subpart B—Procedure To Obtain License or Permit
111.11 Basic requirements for a license. 111.12 Application for license. 111.13 Written examination for individual
license. 111.14 Investigation of the license applicant. 111.15 Issuance of license. 111.16 Denial of license. 111.17 Review of the denial of a license. 111.18 Reapplication for license. 111.19 Permits.
Subpart C—Duties and Responsibilities of Customs Brokers
111.21 Record of transactions. 111.22 [Reserved] 111.23 Retention of records. 111.24 Records confidential. 111.25 Records must be available. 111.26 Interference with examination of
records. 111.27 Audit or inspection of records. 111.28 Responsible supervision. 111.29 Diligence in correspondence and pay-
ing monies. 111.30 Notification of change of business ad-
dress, organization, name, or location of business records; status report; termi- nation of brokerage business.
111.31 Conflict of interest. 111.32 False information. 111.33 Government records. 111.34 Undue influence upon Department of
Homeland Security employees. 111.35 Acceptance of fees from attorneys. 111.36 Relations with unlicensed persons. 111.37 Misuse of license or permit. 111.38 False representation to procure em-
ployment. 111.39 Advice to client. 111.40 Protests. 111.41 Endorsement of checks.
111.42 Relations with person who is notori- ously disreputable or whose license is under suspension, canceled ‘‘with preju- dice,’’ or revoked.
111.43–111.44 [Reserved] 111.45 Revocation by operation of law.
Subpart D—Cancellation, Suspension, or Revocation of License or Permit, and Monetary Penalty in Lieu of Suspension or Revocation
111.50 General. 111.51 Cancellation of license or permit. 111.52 Voluntary suspension of license or
permit. 111.53 Grounds for suspension or revocation
of license or permit. 111.54 [Reserved] 111.55 Investigation of complaints. 111.56 Review of report on investigation. 111.57 Determination by Assistant Commis-
sioner. 111.58 Content of statement of charges. 111.59 Preliminary proceedings. 111.60 Request for additional information. 111.61 Decision on preliminary proceedings. 111.62 Contents of notice of charges. 111.63 Service of notice and statement of
charges. 111.64 Service of notice of hearing and other
papers. 111.65 Extension of time for hearing. 111.66 Failure to appear. 111.67 Hearing. 111.68 Proposed findings and conclusions. 111.69 Recommended decision by hearing of-
ficer. 111.70 Additional submissions. 111.71 Immaterial mistakes. 111.72 Dismissal subject to new proceedings. 111.73 [Reserved] 111.74 Decision and notice of suspension or
revocation or monetary penalty. 111.75 Appeal from the Secretary’s decision. 111.76 Reopening the case. 111.77 Notice of vacated or modified order. 111.78 Reprimands. 111.79 Employment of broker who has lost
license. 111.80 [Reserved] 111.81 Settlement and compromise.
Subpart E—Monetary Penalty and Payment of Fees
111.91 Grounds for imposition of a monetary penalty; maximum penalty.
111.92 Notice of monetary penalty. 111.93 Petition for relief from monetary
penalty. 111.94 Decision on monetary penalty. 111.95 Supplemental petition for relief from
monetary penalty. 111.96 Fees.
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U.S. Customs and Border Protection, DHS; Treasury § 111.1
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 1641.
Section 111.3 also issued under 19 U.S.C. 1484, 1498;
Section 111.96 also issued under 19 U.S.C. 58c, 31 U.S.C. 9701.
SOURCE: T.D 00–17, 65 FR 13891, Mar. 15, 2000, unless otherwise noted.
§ 111.0 Scope. This part sets forth regulations pro-
viding for the licensing of, and grant- ing of permits to, persons desiring to transact customs business as customs brokers, including the qualifications required of applicants, and the proce- dures for applying for licenses and per- mits. This part also prescribes the du- ties and responsibilities of brokers, the grounds and procedures for disciplining brokers, including the assessment of monetary penalties, and the revocation or suspension of licenses and permits.
Subpart A—General Provisions
§ 111.1 Definitions. When used in this part, the following
terms have the meanings indicated: Assistant Commissioner. ‘‘Assistant
Commissioner’’ means the Assistant Commissioner, Office of International Trade, U.S. Customs and Border Pro- tection, Washington, DC.
Broker. ‘‘Broker’’ means a customs broker.
Corporate compliance activity. ‘‘Cor- porate compliance activity’’ means ac- tivity performed by a business entity to ensure that documents for a related business entity or entities are prepared and filed with CBP using ‘‘reasonable care’’, but such activity does not ex- tend to the actual preparation or filing of the documents or their electronic equivalents. For purposes of this defi- nition, a ‘‘business entity’’ is an entity that is registered or otherwise on record with an appropriate govern- mental authority for business licens- ing, taxation, or other legal purposes, and the term ‘‘related business entity or entities’’ encompasses a business en- tity that has more than a 50 percent ownership interest in another business entity, a business entity in which an- other business entity has more than a 50 percent ownership interest, and two
or more business entities in which the same business entity has more than a 50 percent ownership interest.
Customs broker. ‘‘Customs broker’’ means a person who is licensed under this part to transact customs business on behalf of others.
Customs business. ‘‘Customs business’’ means those activities involving trans- actions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the pay- ment of duties, taxes, or other charges assessed or collected by CBP on mer- chandise by reason of its importation, and the refund, rebate, or drawback of those duties, taxes, or other charges. ‘‘Customs business’’ also includes the preparation, and activities relating to the preparation, of documents in any format and the electronic transmission of documents and parts of documents intended to be filed with CBP in fur- therance of any other customs business activity, whether or not signed or filed by the preparer. However, ‘‘customs business’’ does not include the mere electronic transmission of data re- ceived for transmission to CBP and does not include a corporate compli- ance activity.
District. ‘‘District’’ means the geo- graphic area covered by a customs broker permit other than a national permit. A listing of each district, and the ports thereunder, will be published periodically.
Employee. ‘‘Employee’’ means a per- son who meets the common law defini- tion of employee and is in the service of a customs broker.
Freight forwarder. ‘‘Freight for- warder’’ means a person engaged in the business of dispatching shipments in foreign commerce between the United States, its territories or possessions, and foreign countries, and handling the formalities incident to such shipments, on behalf of other persons.
Officer. ‘‘Officer’’, when used in the context of an association or corpora- tion, means a person who has been elected, appointed, or designated as an officer of an association or corporation in accordance with statute and the ar- ticles of incorporation, articles of agreement, charter, or bylaws of the association or corporation.
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19 CFR Ch. I (4–1–12 Edition)§ 111.2
Permit. ‘‘Permit’’ means any permit issued to a broker under § 111.19.
Person. ‘‘Person’’ includes individ- uals, partnerships, associations, and corporations.
Records. ‘‘Records’’ means docu- ments, data and information referred to in, and required to be made or main- tained under, this part and any other records, as defined in § 163.1(a) of this chapter, that are required to be main- tained by a broker under part 163 of this chapter.
Region. ‘‘Region’’ means the geo- graphic area covered by a waiver issued pursuant to § 111.19(d).
Responsible supervision and control. ‘‘Responsible supervision and control’’ means that degree of supervision and control necessary to ensure the proper transaction of the customs business of a broker, including actions necessary to ensure that an employee of a broker provides substantially the same qual- ity of service in handling customs transactions that the broker is re- quired to provide. While the determina- tion of what is necessary to perform and maintain responsible supervision and control will vary depending upon the circumstances in each instance, factors which CBP will consider in- clude, but are not limited to: The training required of employees of the broker; the issuance of written instruc- tions and guidelines to employees of the broker; the volume and type of business of the broker; the reject rate for the various customs transactions; the maintenance of current editions of CBP Regulations, the Harmonized Tar- iff Schedule of the United States, and CBP issuances; the availability of an individually licensed broker for nec- essary consultation with employees of the broker; the frequency of super- visory visits of an individually licensed broker to another office of the broker that does not have a resident individ- ually licensed broker; the frequency of audits and reviews by an individually licensed broker of the customs trans- actions handled by employees of the broker; the extent to which the indi- vidually licensed broker who qualifies the district permit is involved in the operation of the brokerage; and any circumstance which indicates that an
individually licensed broker has a real interest in the operations of a broker.
Department of Homeland Security or any representative of the Department of Homeland Security. ‘‘Department of Homeland Security or any representa- tive of the Department of Homeland Security’’ means any office, officer, or employee of the U.S. Department of Homeland Security, wherever located.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by CBP Dec. 03–15, 68 FR 47460, Aug. 11, 2003]
§ 111.2 License and district permit re- quired.
(a) License—(1) General. Except as otherwise provided in paragraph (a)(2) of this section, a person must obtain the license provided for in this part in order to transact customs business as a broker.
(2) Transactions for which license is not required—(i) For one’s own account. An importer or exporter transacting cus- toms business solely on his own ac- count and in no sense on behalf of an- other is not required to be licensed, nor are his authorized regular employees or officers who act only for him in the transaction of such business.
(ii) As employee of broker—(A) General. An employee of a broker, acting solely for his employer, is not required to be licensed where:
(1) Authorized to sign documents. The broker has authorized the employee to sign documents pertaining to customs business on his behalf, and has exe- cuted a power of attorney for that pur- pose. The broker is not required to file the power of attorney with the port di- rector, but must provide proof of its ex- istence to Customs upon request; or
(2) Authorized to transact other busi- ness. The broker has filed with the port director a statement identifying the employee as authorized to transact customs business on his behalf. How- ever, no statement will be necessary when the broker is transacting cus- toms business under an exception to the district permit rule.
(B) Broker supervision; withdrawal of authority. Where an employee has been given authority under paragraph (a)(2)(ii) of this section, the broker must exercise sufficient supervision of the employee to ensure proper conduct
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U.S. Customs and Border Protection, DHS; Treasury § 111.2
on the part of the employee in the transaction of customs business, and the broker will be held strictly respon- sible for the acts or omissions of the employee within the scope of his em- ployment and for any other acts or omissions of the employee which, through the exercise of reasonable care and diligence, the broker should have foreseen. The broker must promptly notify the port director if authority granted to an employee under para- graph (a)(2)(ii) of this section is with- drawn. The withdrawal of authority will be effective upon receipt by the port director.
(iii) Marine transactions. A person transacting business in connection with entry or clearance of vessels or other regulation of vessels under the navigation laws is not required to be li- censed as a broker.
(iv) Transportation in bond. Any car- rier bringing merchandise to the port of arrival or any bonded carrier trans- porting merchandise for another may make entry for that merchandise for transportation in bond without being a broker.
(v) Noncommercial shipments. An indi- vidual entering noncommercial mer- chandise for another party is not re- quired to be a broker, provided that the requirements of § 141.33 of this chapter are met.
(vi) Foreign trade zone activities. A for- eign trade zone operator or user need not be licensed as a broker in order to engage in activities within a zone that do not involve the transfer of merchan- dise to the customs territory of the United States.
(b) District permit—(1) General. Except as otherwise provided in paragraph (b)(2) of this section, a separate permit (see § 111.19) is required for each dis- trict in which a broker conducts cus- toms business.
(2) Exceptions to district permit rule—(i) National permits. A national permit issued to a broker under § 111.19(f) will constitute sufficient permit authority for the broker to act in any of the fol- lowing circumstances:
(A) Employee working in client’s facil- ity (employee implant). When a broker places an employee in the facility of a client for whom the broker is con- ducting customs business at one or
more other locations covered by a dis- trict permit issued to the broker, and provided that the employee’s activities are limited to customs business in sup- port of that broker and on behalf of that client but do not involve the filing of entries or other documents with Customs, the broker need not obtain a permit for the district within which the client’s facility is located;
(B) Electronic drawback claims. A broker may file electronic drawback claims in accordance with the elec- tronic filing procedures set forth in part 143 of this chapter even though the broker does not have a permit for the district in which the filing is made;
(C) Electronic filing. A broker may electronically file entries for merchan- dise from a remote location, pursuant to the terms set forth in subpart E to part 143 of this chapter, and may elec- tronically transact other customs busi- ness even though the entry is filed, or other customs business is transacted, within a district for which the broker does not have a district permit; and
(D) Representations after entry sum- mary acceptance. After the entry sum- mary has been accepted by Customs, and except when a broker filed the entry as importer of record, a broker who did not file the entry, but who has been appointed by the importer of record, may orally or in person or in writing or electronically represent the importer of record before Customs on any issue arising out of that entry or concerning the merchandise covered by that entry even though the broker does not have a permit for the district with- in which those representations are made, provided that, if requested by Customs, the broker submits appro- priate evidence of his right to rep- resent the client on the matter at issue.
(ii) Filing of drawback claims. A broker granted a permit for one dis- trict may file drawback claims manu- ally or electronically at the drawback office that has been designated by Cus- toms for the purpose of filing those claims, and may represent his client before that office in matters con- cerning those claims, even though the broker does not have a permit for the
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19 CFR Ch. I (4–1–12 Edition)§ 111.3
district in which that drawback office is located.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by CBP Dec. 03–15, 68 FR 47460, Aug. 11, 2003;CBP Dec. 09–47, 74 FR 69018, Dec. 30, 2009]
§ 111.3 [Reserved]
§ 111.4 Transacting customs business without a license.
Any person who intentionally trans- acts customs business, other than as provided in § 111.2(a)(2), without hold- ing a valid broker’s license, will be lia- ble for a monetary penalty for each such transaction as well as for each violation of any other provision of 19 U.S.C. 1641. The penalty will be as- sessed in accordance with subpart E of this part.
§ 111.5 Representation before Govern- ment agencies.
(a) Agencies within the Department of Homeland Security. A broker who rep- resents a client in the importation or exportation of merchandise may rep- resent the client before the Depart- ment of Homeland Security or any rep- resentative of the Department of Homeland Security on any matter con- cerning that merchandise.
(b) Agencies not within the Department of Homeland Security. In order to rep- resent a client before any agency not within the Department of Homeland Security, a broker must comply with any regulations of that agency gov- erning the appearance of representa- tives before it.
Subpart B—Procedure To Obtain License or Permit
§ 111.11 Basic requirements for a li- cense.
(a) Individual. In order to obtain a broker’s license, an individual must:
(1) Be a citizen of the United States on the date of submission of the appli- cation referred to in § 111.12(a) and not an officer or employee of the United States Government;
(2) Attain the age of 21 prior to the date of submission of the application referred to in § 111.12(a);
(3) Be of good moral character; and
(4) Have established, by attaining a passing (75 percent or higher) grade on a written examination taken within the 3-year period before submission of the application referred to in § 111.12(a), that he has sufficient knowledge of customs and related laws, regulations and procedures, bookkeeping, account- ing, and all other appropriate matters to render valuable service to importers and exporters.
(b) Partnership. In order to qualify for a broker’s license, a partnership must have at least one member of the part- nership who is a broker.
(c) Association or corporation. In order to qualify for a broker’s license, an as- sociation or corporation must:
(1) Be empowered under its articles of association or articles of incorporation to transact customs business as a broker; and
(2) Have at least one officer who is a broker.
§ 111.12 Application for license. (a) Submission of application and fee.
An application for a broker’s license must be submitted in duplicate to the director of the port where the appli- cant intends to do business. The appli- cation must be under oath and exe- cuted on Customs Form 3124. The appli- cation must be accompanied by the $200 application fee prescribed in § 111.96(a) and one copy of the appro- priate attachment required by the ap- plication form (Articles of Agreement or an affidavit signed by all partners, Articles of Agreement of the associa- tion, or the Articles of Incorporation). If the applicant proposes to operate under a trade or fictitious name in one or more States, evidence of the appli- cant’s authority to use the name in each of those States must accompany the application. An application for an individual license must be submitted within the 3-year period after the ap- plicant took and passed the written ex- amination referred to in §§ 111.11(a)(4) and 111.13. The port director may re- quire an individual applicant to pro- vide a copy of the notification that he passed the written examination (see § 111.13(e)) and will require the appli- cant to submit fingerprints on form FD 258 or electronically at the time of fil- ing the application. The port director
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U.S. Customs and Border Protection, DHS; Treasury § 111.13
may reject an application as improp- erly filed if the application, on its face, demonstrates that one or more of the basic requirements set forth in § 111.11 have not been met at the time of filing, in which case the application and fee will be returned to the filer without further action.
(b) Posting notice of application. Fol- lowing receipt of the application, the port director will post a notice that the application has been filed. The notice will be posted conspicuously for at least 2 consecutive weeks in the cus- tomhouse at the port and similarly at any other port where the applicant also proposes to maintain an office. The no- tice also will be posted by appropriate electronic means. The notice will give the name and address of the applicant and, if the applicant is a partnership, association, or corporation, will state the names of all members or officers who are licensed as brokers. The notice will invite written comments or infor- mation regarding the issuance of the li- cense.
(c) Withdrawal of application. An ap- plicant for a broker’s license may with- draw the application at any time prior to issuance of the license by providing written notice of the withdrawal to the port director. However, withdrawal of the application does not entitle the ap- plicant to a refund of the $200 applica- tion fee.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001]
§ 111.13 Written examination for indi- vidual license.
(a) Scope of examination. The written examination for an individual broker’s license will be designed to determine the individual’s knowledge of customs and related laws, regulations and pro- cedures, bookkeeping, accounting, and all other appropriate matters nec- essary to render valuable service to im- porters and exporters. The examination will be prepared and graded at Customs and Border Protection (CBP) Head- quarters, Washington, DC.
(b) Basic requirements, date, and place of examination. In order to be eligible to take the written examination, an indi- vidual must on the date of examination be a citizen of the United States who
has attained the age of 18 years and who is not an officer or employee of the United States Government. An indi- vidual who intends to take the written examination must so advise the port director in writing at least 30 calendar days prior to the scheduled examina- tion date and must remit the $200 ex- amination fee prescribed in § 111.96(a) at that time. The port director will give notice of the exact time and place for the examination.
(c) Special examination. If a partner- ship, association, or corporation loses the required member or officer having an individual broker’s license (see §§ 111.11(b) and (c)(2)) and its license would be revoked by operation of law under the provisions of 19 U.S.C. 1641(b)(5) and § 111.45(a) before the next scheduled written examination, CBP may authorize a special written exam- ination for a prospective applicant for an individual license who would serve as the required licensed member or of- ficer. CBP may also authorize a special written examination for an individual for purposes of continuing the business of a sole proprietorship broker. A spe- cial written examination for an indi- vidual may also be authorized by CBP if a brokerage firm loses the individual broker who was exercising responsible supervision and control over an office in another district (see § 111.19(d)) and the permit for that additional district would be revoked by operation of law under the provisions of 19 U.S.C. 1641(c)(3) and § 111.45(b) before the next scheduled written examination. A re- quest for a special written examination must be submitted to the port director in writing and must describe the cir- cumstances giving rise to the need for the examination. If the request is granted, the port director will notify the prospective examinee of the exact time and place for the examination. If the individual attains a passing grade on the special written examination, the application for the license may be sub- mitted in accordance with § 111.12. The examinee will be responsible for all ad- ditional costs incurred by CBP in pre- paring and administering the special examination that exceed the $200 exam- ination fee prescribed in § 111.96(a), and
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19 CFR Ch. I (4–1–12 Edition)§ 111.14
those additional costs must be reim- bursed to CBP before the examination is given.
(d) Failure to appear for examination. If a prospective examinee advises the port director at least 2 working days prior to the date of a regularly sched- uled written examination that he will not appear for the examination, the port director will refund the $200 exam- ination fee referred to in paragraph (b) of this section. No refund of the exam- ination fee or additional reimbursed costs will be made in the case of a spe- cial written examination provided for under paragraph (c) of this section.
(e) Notice of examination result. CBP will provide to each examinee written notice of the result of the examination taken under this section. A failure of an examinee to attain a passing grade on the examination will preclude the submission of an application under § 111.12 but will not preclude the exam- inee from taking an examination again at a later date in accordance with para- graph (b) of this section.
(f) Appeal of failing grade on examina- tion. If an examinee fails to attain a passing grade on the examination taken under this section, the examinee may challenge that result by filing a written appeal with Trade Policy and Programs, Office of International Trade, U.S. Customs and Border Pro- tection, Washington, DC 20005 within 60 calendar days after the date of the written notice provided for in para- graph (e) of this section. CBP will pro- vide to the examinee written notice of the decision on the appeal. If the CBP decision on the appeal affirms the re- sult of the examination, the examinee may request review of the decision on the appeal by writing to the Assistant Commissioner, Office of International Trade, U.S. Customs and Border Pro- tection, within 60 calendar days after the date of the notice on that decision.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 03–23, 68 FR 31977, May 29, 2003, CBP Dec. 09–38, 74 FR 52401, Oct. 13, 2009; CBP Dec. 10–29, 75 FR 52458, Aug. 26, 2010]
§ 111.14 Investigation of the license ap- plicant.
(a) Referral of application for investiga- tion. The port director will imme- diately refer an application for an indi-
vidual, partnership, association, or cor- poration license to the special agent in charge or other entity designated by Headquarters for investigation and re- port.
(b) Scope of investigation. An inves- tigation under this section will ascer- tain facts relevant to the question of whether the applicant is qualified and will cover, but need not be limited to:
(1) The accuracy of the statements made in the application;
(2) The business integrity of the ap- plicant; and
(3) When the applicant is an indi- vidual (including a member of a part- nership or an officer of an association or corporation), the character and rep- utation of the applicant.
(c) Referral to Headquarters. The port director will forward the originals of the application and the report of inves- tigation to the Assistant Commis- sioner. The port director will also sub- mit his recommendation for action on the application.
(d) Additional investigation or inquiry. The Assistant Commissioner may re- quire further investigation to be con- ducted if additional facts are deemed necessary to pass upon the application. The Assistant Commissioner may also require the applicant (or in the case of a partnership, association, or corpora- tion, one or more of its members or of- ficers) to appear in person before him or before one or more representatives of the Assistant Commissioner for the purpose of undergoing further written or oral inquiry into the applicant’s qualifications for a license.
§ 111.15 Issuance of license.
If the Assistant Commissioner finds that the applicant is qualified and has paid all applicable fees prescribed in § 111.96(a), he will issue a license. A li- cense for an individual who is a mem- ber of a partnership or an officer of an association or corporation will be issued in the name of the individual li- censee and not in his capacity as a member or officer of the organization with which he is connected. The license will be forwarded to the port director, who will deliver it to the licensee.
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U.S. Customs and Border Protection, DHS; Treasury § 111.19
§ 111.16 Denial of license.
(a) Notice of denial. If the Assistant Commissioner determines that the ap- plication for a license should be denied for any reason, notice of denial will be given by him to the applicant and to the director of the port at which the application was filed. The notice of de- nial will state the reasons why the li- cense was not issued.
(b) Grounds for denial. The grounds sufficient to justify denial of an appli- cation for a license include, but need not be limited to:
(1) Any cause which would justify suspension or revocation of the license of a broker under the provisions of § 111.53;
(2) The failure to meet any require- ment set forth in § 111.11;
(3) A failure to establish the business integrity and good character of the ap- plicant;
(4) Any willful misstatement of perti- nent facts in the application for the li- cense;
(5) Any conduct which would be deemed unfair in commercial trans- actions by accepted standards; or
(6) A reputation imputing to the ap- plicant criminal, dishonest, or uneth- ical conduct, or a record of that con- duct.
§ 111.17 Review of the denial of a li- cense.
(a) By the Assistant Commissioner. Upon the denial of an application for a license, the applicant may file with the Assistant Commissioner, in writing, a request that further opportunity be given for the presentation of informa- tion or arguments in support of the ap- plication by personal appearance, or in writing, or both. This request must be received by the Assistant Commis- sioner within 60 calendar days of the denial.
(b) By the Secretary. Upon the deci- sion of the Assistant Commissioner af- firming the denial of an application for a license, the applicant may file with the Secretary of Homeland Security, or his designee, in writing, a request for any additional review that the Sec- retary deems appropriate. This request must be received by the Secretary within 60 calendar days of the Assist-
ant Commissioner’s affirmation of the denial of the application for a license.
(c) By the Court of International Trade. Upon a decision of the Secretary of Homeland Security, or his designee af- firming the denial of an application for a license, the applicant may appeal the decision to the Court of International Trade, provided that the appeal action is commenced within 60 calendar days after the date of entry of the Sec- retary’s decision.
§ 111.18 Reapplication for license.
An applicant who has been denied a license may reapply at any time by complying with the provisions of § 111.12.
§ 111.19 Permits.
(a) General. Each person granted a broker’s license under this part will be concurrently issued a permit for the district in which the port through which the license was delivered to the licensee (see § 111.15) is located and without the payment of the $100 fee re- quired by § 111.96(b), if it is shown to the satisfaction of the port director that the person intends to transact customs business within that district and the person otherwise complies with the requirements of this part.
(b) Submission of application for initial or additional district permit. A broker who intends to conduct customs busi- ness at a port within another district for which he does not have a permit, or a broker who was not concurrently granted a permit with the broker’s li- cense under paragraph (a) of this sec- tion, and except as otherwise provided in paragraph (f) of this section, must submit an application for a permit in a letter to the director of the port at which he intends to conduct customs business. Each application for a permit must set forth or attach the following:
(1) The applicant’s broker license number and date of issuance;
(2) The address where the applicant’s office will be located within the dis- trict and the telephone number of that office;
(3) A copy of a document which re- serves the applicant’s business name with the state or local government;
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(4) The name of the individual broker who will exercise responsible super- vision and control over the customs business transacted in the district;
(5) A list of all other districts for which the applicant has a permit to transact customs business;
(6) The place where the applicant’s brokerage records will be retained and the name of the applicant’s designated recordkeeping contact (see §§ 111.21 and 111.23); and
(7) A list of all persons who the appli- cant knows will be employed in the dis- trict, together with the specific em- ployee information prescribed in § 111.28(b)(1)(i) for each of those pro- spective employees.
(c) Fees. Each application for a dis- trict permit under paragraph (b) of this section must be accompanied by the $100 and $138 fees specified in §§ 111.96(b) and (c). In the case of an application for a national permit under paragraph (f) of this section, the $100 fee specified in § 111.96(b) and the $138 fee specified in § 111.96(c) must be paid at the port through which the applicant’s license was delivered (see § 111.15) prior to sub- mission of the application. The $138 fee specified in § 111.96(c) also must be paid in connection with the issuance of an initial district permit concurrently with the issuance of a license under paragraph (a) of this section.
(d) Responsible supervision and con- trol—(1) General. The applicant for a district permit must have a place of business at the port where the applica- tion is filed, or must have made firm arrangements satisfactory to the port director to establish a place of busi- ness, and must exercise responsible su- pervision and control over that place of business once the permit is granted. Except as otherwise provided in para- graph (d)(2) of this section, the appli- cant must employ in each district for which a permit is granted at least one individual broker to exercise respon- sible supervision and control over the customs business conducted in the dis- trict.
(2) Exception to district rule. If the ap- plicant can demonstrate to the satis- faction of CBP that he regularly em- ploys at least one individual broker in a larger geographical area in which the district is located and that adequate
procedures exist for that individual broker to exercise responsible super- vision and control over the customs business conducted in the district, CBP may waive the requirement for an indi- vidual broker in that district. A re- quest for a waiver under this para- graph, supported by information on the volume and type of customs business conducted, or planned to be conducted, and supported by evidence dem- onstrating that the applicant is able to exercise responsible supervision and control through the individual broker employed in the larger geographical area, must be sent to the port director in the district in which the waiver is sought. The port director will review the request for a waiver and make rec- ommendations which will be sent to the Office of International Trade, CBP Headquarters, for review and decision. A written decision on the waiver re- quest will be issued by the Office of International Trade and, if the waiver is granted, the decision letter will specify the region covered by the waiv- er.
(e) Action on application; list of per- mitted brokers. The port director who receives the application will issue a written decision on the district permit application and will issue the district permit if the applicant meets the re- quirements of paragraphs (b), (c), and (d) of this section. If the port director is of the opinion that the district per- mit should not be issued, he will sub- mit his written reasons for that opin- ion to the Office of International Trade, CBP Headquarters, for appro- priate instructions on whether to grant or deny the district permit. Each port director will maintain and make avail- able to the public an alphabetical list of brokers permitted through his port.
(f) National permit. A broker who has a district permit issued under para- graph (a) or paragraph (e) of this sec- tion may apply for a national permit for the purpose of transacting customs business in any circumstance described in § 111.2(b)(2)(i). An application for a national permit under this paragraph must be in the form of a letter ad- dressed to the Office of International Trade, U.S. Customs and Border Pro- tection, Washington, DC 20229, and must:
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(1) Identify the applicant’s broker li- cense number and date of issuance;
(2) Set forth the address and tele- phone number of the office designated by the applicant as the office of record for purposes of administration of the provisions of this part regarding all ac- tivities of the applicant conducted under the national permit. That office will be noted in the national permit when issued;
(3) Set forth the name, broker license number, office address, and telephone number of the individual broker who will exercise responsible supervision and control over the activities of the applicant conducted under the national permit; and
(4) Attach a receipt or other evidence showing that the fees specified in § 111.96(b) and (c) have been paid in ac- cordance with paragraph (c) of this sec- tion.
(g) Review of the denial of a permit—(1) By the Assistant Commissioner. Upon the denial of an application for a permit under this section, the applicant may file with the Assistant Commissioner, in writing, a request that further op- portunity be given for the presentation of information or arguments in support of the application by personal appear- ance, or in writing, or both. This re- quest must be received by the Assist- ant Commissioner within 60 calendar days of the denial.
(2) By the Court of International Trade. Upon a decision of the Assistant Com- missioner affirming the denial of an application for a permit under this sec- tion, the applicant may appeal the de- cision to the Court of International Trade, provided that the appeal action is commenced within 60 calendar days after the date of entry of the Assistant Commissioner’s decision.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 03–13, 68 FR 43630, July 24, 2003; 72 FR 3734, Jan. 26, 2007]
Subpart C—Duties and Respon- sibilities of Customs Brokers
§ 111.21 Record of transactions. (a) Each broker must keep current in
a correct, orderly, and itemized man- ner records of account reflecting all his financial transactions as a broker. He
must keep and maintain on file copies of all his correspondence and other records relating to his customs busi- ness.
(b) Each broker must comply with the provisions of this part and part 163 of this chapter when maintaining records that reflect on his transactions as a broker.
(c) Each broker must designate a knowledgeable company employee to be the contact for Customs for broker- wide customs business and financial recordkeeping requirements.
§ 111.22 [Reserved]
§ 111.23 Retention of records.
(a) Place and period of retention—(1) Place. Records must be retained by a broker in accordance with the provi- sions of this part and part 163 of this chapter within the broker district that covers the Customs port to which they relate unless the broker chooses to consolidate records at one or more other locations, and provides advance notice of that consolidation to Cus- toms, in accordance with paragraph (b) of this section.
(2) Period. The records described in paragraph (a)(1) of this section, other than powers of attorney, must be re- tained for at least 5 years after the date of entry. Powers of attorney must be retained until revoked, and revoked powers of attorney and letters of rev- ocation must be retained for 5 years after the date of revocation or for 5 years after the date the client ceases to be an ‘‘active client’’ as defined in § 111.29(b)(2)(ii), whichever period is later. When merchandise is withdrawn from a bonded warehouse, records re- lating to the withdrawal must be re- tained for 5 years from the date of withdrawal of the last merchandise withdrawn under the entry.
(b) Notification of consolidated records—(1) Applicability. Subject to the requirements of paragraph (b)(2) of this section and except when a restriction applies under § 163.5(b) of this chapter, the option of maintaining records on a consolidated system basis is available to brokers who have been granted per- mits to do business in more than one district.
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(2) Form and content of notice. If con- solidated storage is desired by the broker, he must submit a written no- tice addressed to the Office of Inter- national Trade, Regulatory Audit, 2001 Cross Beam Dr., Charlotte, North Caro- lina 28217. The written notice must in- clude:
(i) Each address at which the broker intends to maintain the consolidated records. Each such location must be within a district where the broker has been granted a permit;
(ii) A detailed statement describing all the records to be maintained at each consolidated location, the meth- odology of record maintenance, a de- scription of any automated data proc- essing to be applied, and a list of all the broker’s customs business activity locations; and
(iii) An agreement that there will be no change in the records, the manner of recordkeeping, or the location at which they will be maintained, unless the Office of International Trade, Reg- ulatory Audit, in Charlotte is first no- tified.
§ 111.24 Records confidential. The records referred to in this part
and pertaining to the business of the clients serviced by the broker are to be considered confidential, and the broker must not disclose their contents or any information connected with the records to any persons other than those cli- ents, their surety on a particular entry, and the Field Director, Office of International Trade, Regulatory Audit, the special agent in charge, the port di- rector, or other duly accredited officers or agents of the United States, except on subpoena by a court of competent jurisdiction.
§ 111.25 Records must be available. During the period of retention, the
broker must maintain the records re- ferred to in this part in such a manner that they may readily be examined. Records required to be made or main- tained under the provisions of this part must be made available upon reason- able notice for inspection, copying, re- production or other official use by CBP regulatory auditors or special agents or other authorized CBP officers within the prescribed period of retention or
within any longer period of time during which they remain in the possession of the broker. Records subject to the re- quirements of part 163 of this chapter must be made available to Customs in accordance with the provisions of that part.
§ 111.26 Interference with examination of records.
Except in accordance with the provi- sions of part 163 of this chapter, a broker must not refuse access to, con- ceal, remove, or destroy the whole or any part of any record relating to his transactions as a broker which is being sought, or which the broker has reason- able grounds to believe may be sought, by the Department of Homeland Secu- rity or any representative of the De- partment of Homeland Security, nor may he otherwise interfere, or attempt to interfere, with any proper and law- ful efforts to procure or reproduce in- formation contained in those records.
§ 111.27 Audit or inspection of records. The Field Director, Regulatory
Audit, will make any audit or inspec- tion of the records required by this subpart to be kept and maintained by a broker as may be necessary to enable the port director and other proper offi- cials of the Treasury Department to determine whether or not the broker is complying with the requirements of this part.
§ 111.28 Responsible supervision. (a) General. Every individual broker
operating as a sole proprietor and every licensed member of a partnership that is a broker and every licensed offi- cer of an association or corporation that is a broker must exercise respon- sible supervision and control (see § 111.1) over the transaction of the cus- toms business of the sole proprietor- ship, partnership, association, or cor- poration.
(b) Employee information—(1) Current employees—(i) General. Each broker must submit, in writing, to the direc- tor of each port at which the broker in- tends to transact customs business, a list of the names of persons currently employed by the broker at that port. The list of employees must be sub- mitted upon issuance of a permit for an
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additional district under § 111.19, or upon the opening of an office at a port within a district for which the broker already has a permit, and before the broker begins to transact customs business as a broker at the port. For each employee, the broker also must provide the social security number, date and place of birth, current home address, last prior home address, and, if the employee has been employed by the broker for less than 3 years, the name and address of each former employer and dates of employment for the 3-year period preceding current employment with the broker. After the initial sub- mission, an updated list, setting forth the name, social security number, date and place of birth, and current home address of each current employee, must be submitted with the status report re- quired by § 111.30(d).
(ii) New employees. In the case of a new employee, the broker must submit to the port director the written infor- mation required under paragraph (b)(1)(i) of this section within 10 cal- endar days after the new employee has been employed by the broker for 30 consecutive days.
(2) Terminated employees. Within 30 calendar days after the termination of employment of any person employed longer than 30 consecutive days, the broker must submit the name of the terminated employee, in writing, to the director of the port at which the person was employed.
(3) Broker’s responsibility. Notwith- standing a broker’s responsibility for providing the information required in paragraph (b)(1) of this section, in the absence of culpability by the broker, Customs will not hold him responsible for the accuracy of any information that is provided to the broker by the employee.
(c) Termination of qualifying member or officer. In the case of an individual broker who is a qualifying member of a partnership for purposes of § 111.11(b) or who is a qualifying officer of an asso- ciation or corporation for purposes of § 111.11(c)(2), that individual broker must immediately provide written no- tice to the Assistant Commissioner when his employment as a qualifying member or officer terminates and must send a copy of the written notice to the
director of each port through which a permit has been granted to the part- nership, association, or corporation.
(d) Change in ownership. If the owner- ship of a broker changes and ownership shares in the broker are not publicly traded, the broker must immediately provide written notice of that fact to the Assistant Commissioner and must send a copy of the written notice to the director of each port through which a permit has been granted to the broker. When a change in ownership results in the addition of a new principal to the organization, and whether or not own- ership shares in the broker are publicly traded, Customs reserves the right to conduct a background investigation on the new principal. The port director will notify the broker if Customs ob- jects to the new principal, and the broker will be given a reasonable pe- riod of time to remedy the situation. If the investigation uncovers information which would have been the basis for a denial of an application for a broker’s license and the principal’s interest in the broker is not terminated to the satisfaction of the port director, sus- pension or revocation proceedings may be initiated under subpart D of this part. For purposes of this paragraph, a ‘‘principal’’ means any person having at least a 5 percent capital, beneficiary or other direct or indirect interest in the business of a broker.
§ 111.29 Diligence in correspondence and paying monies.
(a) Due diligence by broker. Each broker must exercise due diligence in making financial settlements, in an- swering correspondence, and in pre- paring or assisting in the preparation and filing of records relating to any customs business matter handled by him as a broker. Payment of duty, tax, or other debt or obligation owing to the Government for which the broker is responsible, or for which the broker has received payment from a client, must be made to the Government on or before the date that payment is due. Payments received by a broker from a client after the due date must be trans- mitted to the Government within 5 working days from receipt by the broker. Each broker must provide a
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written statement to a client account- ing for funds received for the client from the Government, or received from a client where no payment to the Gov- ernment has been made, or received from a client in excess of the Govern- mental or other charges properly pay- able as part of the client’s customs business, within 60 calendar days of re- ceipt. No written statement is required if there is actual payment of the funds by a broker.
(b) Notice to client of method of pay- ment—(1) All brokers must provide their clients with the following written notification:
If you are the importer of record, payment to the broker will not relieve you of liability for customs charges (duties, taxes, or other debts owed CBP) in the event the charges are not paid by the broker. Therefore, if you pay by check, customs charges may be paid with a separate check payable to the ‘‘U.S. Cus- toms and Border Protection’’ which will be delivered to CBP by the broker.
(2) The written notification set forth in paragraph (b)(1) of this section must be provided by brokers as follows:
(i) On, or attached to, any power of attorney provided by the broker to a client for execution on or after Sep- tember 27, 1982; and
(ii) To each active client no later than February 28, 1983, and at least once at any time within each 12-month period after that date. An active client means a client from whom a broker has obtained a power of attorney and for whom the broker has transacted cus- toms business on at least two occasions within the 12-month period preceding notification.
§ 111.30 Notification of change of busi- ness address, organization, name, or location of business records; sta- tus report; termination of broker- age business.
(a) Change of address. When a broker changes his business address, he must immediately give written notice of his new address to each director of a port that is affected by the change of ad- dress. In addition, if an individual broker is not actively engaged in transacting business as a broker and changes his non-business mailing ad- dress, he must give written notice of the new address in the status report re- quired by paragraph (d) of this section.
(b) Change in an organization. A part- nership, association, or corporation broker must immediately provide writ- ten notice of any of the following to the director of each port through which it has been granted a permit:
(1) The date on which a licensed member or officer ceases to be the qualifying member or officer for pur- poses of § 111.11(b) or (c)(2), and the name of the broker who will succeed as the qualifying member or officer; and
(2) Any change in the Articles of Agreement, Charter, or Articles of In- corporation relating to the transaction of customs business, or any other change in the legal nature of the orga- nization (for example, conversion of a general partnership to a limited part- nership, merger with another organiza- tion, divestiture of a part of the orga- nization, or entry into bankruptcy pro- tection).
(c) Change in name. A broker who changes his name, or who proposes to operate under a trade or fictitious name in one or more States within the district in which he has been granted a permit and is authorized by State law to do so, must submit to the Office of International Trade, U.S. Customs and Border Protection, Washington, DC 20229, evidence of his authority to use that name. The name must not be used until the approval of Headquarters has been received. In the case of a trade or fictitious name, the broker must affix his own name in conjunction with each signature of the trade or fictitious name when signing customs docu- ments.
(d) Status report—(1) General. Each broker must file a written status re- port with Customs on February 1, 1985, and on February 1 of each third year after that date. The report must be ac- companied by the fee prescribed in § 111.96(d) and must be addressed to the director of the port through which the license was delivered to the licensee (see § 111.15). A report received during the month of February will be consid- ered filed timely. No form or particular format is required.
(2) Individual. Each individual broker must state in the report required under paragraph (d)(1) of this section whether he is actively engaged in transacting
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business as a broker. If he is so ac- tively engaged, he must also:
(i) State the name under which, and the address at which, his business is conducted if he is a sole proprietor;
(ii) State the name and address of his employer if he is employed by another broker, unless his employer is a part- nership, association or corporation broker for which he is a qualifying member or officer for purposes of § 111.11(b) or (c)(2); and
(iii) State whether or not he still meets the applicable requirements of § 111.11 and § 111.19 and has not engaged in any conduct that could constitute grounds for suspension or revocation under § 111.53.
(3) Partnership, association or corpora- tion. Each corporation, partnership or association broker must state in the report required under paragraph (d)(1) of this section the name under which its business as a broker is being trans- acted, its business address, the name and address of each licensed member of the partnership or licensed officer of the association or corporation who qualifies it for a license under § 111.11(b) or (c)(2), and whether it is ac- tively engaged in transacting business as a broker, and the report must be signed by a licensed member or officer.
(4) Failure to file timely. If a broker fails to file the report required under paragraph (d)(1) of this section by March 1 of the reporting year, the bro- ker’s license is suspended by operation of law on that date. By March 31 of the reporting year, the port director will transmit written notice of the suspen- sion to the broker by certified mail, re- turn receipt requested, at the address reflected in Customs records. If the broker files the required report and pays the required fee within 60 cal- endar days of the date of the notice of suspension, the license will be rein- stated. If the broker does not file the required report within that 60-day pe- riod, the broker’s license is revoked by operation of law without prejudice to the filing of an application for a new li- cense. Notice of the revocation will be published in the Customs Bulletin.
(e) Custody of records. Upon the per- manent termination of a brokerage business, written notification of the name and address of the party having
legal custody of the brokerage business records must be provided to the direc- tor of each port where the broker was transacting business within each dis- trict for which a permit has been issued to the broker. That notification will be the responsibility of:
(1) The individual broker, upon the permanent termination of his broker- age business;
(2) Each member of a partnership who holds an individual broker’s li- cense, upon the permanent termination of a partnership brokerage business; or
(3) Each association or corporate offi- cer who holds an individual broker’s li- cense, upon the permanent termination of an association or corporate broker- age business.
§ 111.31 Conflict of interest. (a) Former officer or employee of U.S.
Government. A broker who was formerly an officer or employee in U.S. Govern- ment service must not represent a cli- ent before the Department of Home- land Security or any representative of the Department of Homeland Security in any matter to which the broker gave personal consideration or gained knowledge of the facts while in U.S. Government service, except as provided in 18 U.S.C. 207.
(b) Relations with former officer or em- ployee of U.S. Government. A broker must not knowingly assist, accept as- sistance from, or share fees with a per- son who has been employed by a client in a matter pending before the Depart- ment of Homeland Security or any rep- resentative of the Department of Homeland Security to which matter that person gave personal consider- ation or gained personal knowledge of the facts or issues of the matter while in U.S. Government service.
(c) Importations by broker or employee. A broker who is an importer himself must not act as broker for an importer who imports merchandise of the same general character as that imported by the broker unless the client has full knowledge of the facts. The same re- striction will apply if a broker’s em- ployee is an importer.
§ 111.32 False information. A broker must not file or procure or
assist in the filing of any claim, or of
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any document, affidavit, or other pa- pers, known by such broker to be false. In addition, a broker must not know- ingly give, or solicit or procure the giv- ing of, any false or misleading informa- tion or testimony in any matter pend- ing before the Department of Homeland Security or any representative of the Department of Homeland Security.
§ 111.33 Government records. A broker must not procure or at-
tempt to procure, directly or indi- rectly, information from Government records or other Government sources of any kind to which access is not granted by proper authority.
§ 111.34 Undue influence upon Depart- ment of Homeland Security employ- ees.
A broker must not influence or at- tempt to influence the conduct of any representative of the Department of Homeland Security in any matter pending before the Department of Homeland Security or any representa- tive of the Department of Homeland Security by the use of duress or a threat or false accusation, or by the offer of any special inducement or promise of advantage, or by bestowing any gift or favor or other thing of value.
§ 111.35 Acceptance of fees from attor- neys.
With respect to customs trans- actions, a broker must not demand or accept from any attorney (whether di- rectly or indirectly, including, for ex- ample, from a client as a part of any arrangement with an attorney) on ac- count of any case litigated in any court of law or on account of any other legal service rendered by an attorney any fee or remuneration in excess of an amount measured by or commensurate with the time, effort and skill expended by the broker in performing his serv- ices.
§ 111.36 Relations with unlicensed per- sons.
(a) Employment by unlicensed person other than importer. When a broker is employed for the transaction of cus- toms business by an unlicensed person who is not the actual importer, the
broker must transmit to the actual im- porter either a copy of his bill for serv- ices rendered or a copy of the entry, unless the merchandise was purchased on a delivered duty-paid basis or unless the importer has in writing waived transmittal of the copy of the entry or bill for services rendered.
(b) Service to others not to benefit unli- censed person. Except as otherwise pro- vided in paragraph (c) of this section, a broker must not enter into any agree- ment with an unlicensed person to transact customs business for others in such manner that the fees or other ben- efits resulting from the services ren- dered for others inure to the benefit of the unlicensed person.
(c) Relations with a freight forwarder. A broker may compensate a freight for- warder for referring brokerage busi- ness, subject to the following condi- tions:
(1) The importer or other party in in- terest is notified in advance by the for- warder or broker of the name of the broker selected by the forwarder for the handling of his Customs trans- actions;
(2) The broker transmits directly to the importer or other party in interest:
(i) A true copy of his brokerage charges if the fees and charges are to be collected by or through the for- warder, unless this requirement is waived in writing by the importer or other party in interest; or
(ii) A statement of his brokerage charges and an itemized list of any charges to be collected for the account of the freight forwarder if the fees and charges are to be collected by or through the broker;
(3) No part of the agreement of com- pensation between the broker and the forwarder, nor any action taken pursu- ant to the agreement, forbids or pre- vents direct communication between the importer or other party in interest and the broker; and
(4) In making the agreement and in all actions taken pursuant to the agreement, the broker remains subject to all other provisions of this part.
§ 111.37 Misuse of license or permit. A broker must not allow his license,
permit or name to be used by or for any unlicensed person (including a
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broker whose license or permit is under suspension), other than his own em- ployees authorized to act for him, in the solicitation, promotion or perform- ance of any customs business or trans- action.
§ 111.38 False representation to pro- cure employment.
A broker must not knowingly use false or misleading representations to procure employment in any customs matter. In addition, a broker must not represent to a client or prospective cli- ent that he can obtain any favors from the Department of Homeland Security or any representative of the Depart- ment of Homeland Security.
§ 111.39 Advice to client. (a) Withheld or false information. A
broker must not withhold information relative to any customs business from a client who is entitled to the informa- tion. Moreover, a broker must exercise due diligence to ascertain the correct- ness of any information which he im- parts to a client, and he must not knowingly impart to a client false in- formation relative to any customs business.
(b) Error or omission by client. If a broker knows that a client has not complied with the law or has made an error in, or omission from, any docu- ment, affidavit, or other paper which the law requires the client to execute, he must advise the client promptly of that noncompliance, error, or omis- sion.
(c) Illegal plans. A broker must not knowingly suggest to a client or pro- spective client any illegal plan for evading payment of any duty, tax, or other debt or obligation owing to the U.S. Government.
§ 111.40 Protests. A broker must not act on behalf of
any person, or attempt to represent any person, regarding any protest un- less he is authorized to do so in accord- ance with part 174 of this chapter.
§ 111.41 Endorsement of checks. A broker must not endorse or accept,
without authority of his client, any U.S. Government draft, check, or war- rant drawn to the order of the client.
§ 111.42 Relations with person who is notoriously disreputable or whose license is under suspension, can- celed ‘‘with prejudice,’’ or revoked.
(a) General. Except as otherwise pro- vided in paragraph (b) of this section, a broker must not knowingly and di- rectly or indirectly:
(1) Accept employment to effect a Customs transaction as associate, cor- respondent, officer, employee, agent, or subagent from any person who is noto- riously disreputable or whose broker li- cense was revoked for any cause or is under suspension or was cancelled ‘‘with prejudice;’’
(2) Assist in the furtherance of any customs business or transactions of any person described in paragraph (a)(1) of this section;
(3) Employ, or accept assistance in the furtherance of any customs busi- ness or transactions from, any person described in paragraph (a)(1) of this section, without the approval of the Assistant Commissioner (see § 111.79);
(4) Share fees with any person de- scribed in paragraph (a)(1) of this sec- tion; or
(5) Permit any person described in paragraph (a)(1) of this section to par- ticipate, directly or indirectly and whether through ownership or other- wise, in the promotion, control, or di- rection of the business of the broker.
(b) Client exception. Nothing in this section will prohibit a broker from transacting customs business on behalf of a bona fide importer or exporter who may be notoriously disreputable or whose broker license is under suspen- sion or was cancelled ‘‘with prejudice’’ or revoked.
§§ 111.43–111.44 [Reserved]
§ 111.45 Revocation by operation of law.
(a) License. If a broker that is a part- nership, association, or corporation fails to have, during any continuous period of 120 days, at least one member of the partnership or at least one offi- cer of the association or corporation who holds a valid individual broker’s license, that failure will, in addition to
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any other sanction that may be im- posed under this part, result in the rev- ocation by operation of law of the li- cense and any permits issued to the partnership, association, or corpora- tion. The Assistant Commissioner or his designee will notify the broker in writing of an impending revocation by operation of law under this section 30 calendar days before the revocation is due to occur.
(b) Permit. If a broker who has been granted a permit for an additional dis- trict fails, for any continuous period of 180 days, to employ within that district (or region, as defined in § 111.1, if an ex- ception has been granted pursuant to § 111.19(d)) at least one person who holds a valid individual broker’s li- cense, that failure will, in addition to any other sanction that may be im- posed under this part, result in the rev- ocation of the permit by operation of law.
(c) Notification. If the license or an additional permit of a partnership, as- sociation, or corporation is revoked by operation of law under paragraph (a) or (b) of this section, the Assistant Com- missioner or his designee will notify the organization of the revocation. If an additional permit of an individual broker is revoked by operation of law under paragraph (b) of this section, the Assistant Commissioner or his designee will notify the broker. Notice of any revocation under this section will be published in the Customs Bulletin.
(d) Applicability of other sanctions. Notwithstanding the operation of para- graph (a) or (b) of this section, each broker still has a continuing obligation to exercise responsible supervision and control over the conduct of its broker- age business and to otherwise comply with the provisions of this part. Any failure on the part of a broker to meet that continuing obligation during the 120 or 180-day period referred to in paragraph (a) or (b) of this section, or during any shorter period of time, may result in the initiation of suspension or revocation proceedings or the assess- ment of a monetary penalty under sub- part D or subpart E of this part.
Subpart D—Cancellation, Suspen- sion, or Revocation of License or Permit, and Monetary Pen- alty in Lieu of Suspension or Revocation
§ 111.50 General.
This subpart sets forth provisions re- lating to cancellation, suspension, or revocation of a license or a permit, or assessment of a monetary penalty in lieu of suspension or revocation, under section 641(d)(2)(B), Tariff Act of 1930, as amended (19 U.S.C. 1641(d)(2)(B)). The provisions relating to assessment of a monetary penalty under sections 641(b)(6) and (d)(2)(A), Tariff Act of 1930, as amended (19 U.S.C. 1641(b)(6) and (d)(2)(A)), are set forth in subpart E of this part.
§ 111.51 Cancellation of license or per- mit.
(a) Without prejudice. The Assistant Commissioner may cancel a broker’s li- cense or permit ‘‘without prejudice’’ upon written application by the broker if the Assistant Commissioner deter- mines that the application for can- cellation was not made in order to avoid proceedings for the suspension or revocation of the license or permit. If the Assistant Commissioner deter- mines that the application for can- cellation was made in order to avoid those proceedings, he may cancel the license or permit ‘‘without prejudice’’ only with authorization from the Sec- retary of Homeland Security, or his designee.
(b) With prejudice. The Assistant Commissioner may cancel a broker’s li- cense or permit ‘‘with prejudice’’ when specifically requested to do so by the broker. The effect of a cancellation ‘‘with prejudice’’ is in all respects the same as if the license or permit had been revoked for cause by the Sec- retary except that it will not give rise to a right of appeal.
§ 111.52 Voluntary suspension of li- cense or permit.
The Assistant Commissioner may ac- cept a broker’s written voluntary offer of suspension of the broker’s license or permit for a specific period of time
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under any terms and conditions to which the parties may agree.
§ 111.53 Grounds for suspension or revocation of license or permit.
The appropriate Customs officer may initiate proceedings for the suspension, for a specific period of time, or revoca- tion of the license or permit of any broker for any of the following reasons:
(a) The broker has made or caused to be made in any application for any li- cense or permit under this part, or re- port filed with Customs, any statement which was, at the time and in light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any application or report any material fact which was required;
(b) The broker has been convicted, at any time after the filing of an applica- tion for a license under § 111.12, of any felony or misdemeanor which:
(1) Involved the importation or ex- portation of merchandise;
(2) Arose out of the conduct of cus- toms business; or
(3) Involved larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzle- ment, fraudulent conversion, or mis- appropriation of funds;
(c) The broker has violated any pro- vision of any law enforced by Customs or the rules or regulations issued under any provision of any law enforced by Customs;
(d) The broker has counseled, com- manded, induced, procured, or know- ingly aided or abetted the violations by any other person of any provision of any law enforced by Customs or the rules or regulations issued under any provision of any law enforced by Cus- toms;
(e) The broker has knowingly em- ployed, or continues to employ, any person who has been convicted of a fel- ony, without written approval of that employment from the Assistant Com- missioner;
(f) The broker has, in the course of customs business, with intent to de- fraud, in any manner willfully and knowingly deceived, misled or threat- ened any client or prospective client; or
(g) The broker no longer meets the applicable requirements of §§ 111.11 and 111.19.
§ 111.54 [Reserved]
§ 111.55 Investigation of complaints. Every complaint or charge against a
broker which may be the basis for dis- ciplinary action will be forwarded for investigation to the special agent in charge of the area in which the broker is located. The special agent in charge will submit a report on the investiga- tion to the director of the port and send a copy of it to the Assistant Com- missioner.
§ 111.56 Review of report on investiga- tion.
The port director will review the re- port of investigation to determine if there is sufficient basis to recommend that charges be preferred against the broker. He will then submit his rec- ommendation with supporting reasons to the Assistant Commissioner for final determination together with a pro- posed statement of charges when rec- ommending that charges be preferred.
§ 111.57 Determination by Assistant Commissioner.
The Assistant Commissioner will make a determination on whether or not charges should be preferred, and he will notify the port director of his deci- sion.
§ 111.58 Content of statement of charges.
Any statement of charges referred to in this subpart must give a plain and concise, but not necessarily detailed, description of the facts claimed to con- stitute grounds for suspension or rev- ocation of the license or permit. The statement of charges also must specify the sanction being proposed (that is, suspension of the license or permit or revocation of the license or permit), but if a suspension is proposed the charges need not state a specific period of time for which suspension is pro- posed. A statement of charges which fairly informs the broker of the charges against him so that he is able to prepare his response will be deemed sufficient. Different means by which a
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purpose might have been accomplished, or different intents with which acts might have been done, so as to con- stitute grounds for suspension or rev- ocation of the license may be alleged in the alternative under a single count in the statement of charges.
§ 111.59 Preliminary proceedings. (a) Opportunity to participate. The
port director will advise the broker of his opportunity to participate in pre- liminary proceedings with an oppor- tunity to avoid formal proceedings against his license or permit.
(b) Notice of preliminary proceedings. The port director will serve upon the broker, in the manner set forth in § 111.63, written notice that:
(1) Transmits a copy of the proposed statement of charges;
(2) Informs the broker that formal proceedings are available to him;
(3) Informs the broker that sections 554 and 558, Title 5, United States Code, will be applicable if formal proceedings are necessary;
(4) Invites the broker to show cause why formal proceedings should not be instituted;
(5) Informs the broker that he may make submissions and demonstrations of the character contemplated by the cited statutory provisions;
(6) Invites any negotiation for settle- ment of the complaint or charge that the broker deems it desirable to enter into;
(7) Advises the broker of his right to be represented by counsel;
(8) Specifies the place where the broker may respond in writing; and
(9) Advises the broker that the re- sponse must be received within 30 cal- endar days of the date of the notice.
§ 111.60 Request for additional infor- mation.
If, in order to prepare his response, the broker desires additional informa- tion as to the time and place of the al- leged misconduct, or the means by which it was committed, or any other more specific information concerning the alleged misconduct, he may request that information in writing. The bro- ker’s request must set forth in what re- spect the proposed statement of charges leaves him in doubt and must
describe the particular language of the proposed statement of charges as to which additional information is need- ed. If in the opinion of the port director that information is reasonably nec- essary to enable the broker to prepare his response, he will furnish the broker with that information.
§ 111.61 Decision on preliminary pro- ceedings.
The port director will prepare a sum- mary of any oral presentations made by the broker or his attorney and for- ward it to the Assistant Commissioner together with a copy of each paper filed by the broker. The port director will also give to the Assistant Commis- sioner his recommendation on action to be taken as a result of the prelimi- nary proceedings. If the Assistant Com- missioner determines that the broker has satisfactorily responded to the pro- posed charges and that further pro- ceedings are not warranted, he will so inform the port director who will no- tify the broker. If no response is filed by the broker or if the Assistant Com- missioner determines that the broker has not satisfactorily responded to all of the proposed charges, he will advise the port director of that fact and in- struct him to prepare, sign, and serve a notice of charges and the statement of charges. If one or more of the charges in the proposed statement of charges was satisfactorily answered by the broker in the preliminary proceedings, the Assistant Commissioner will in- struct the port director to omit those charges from the statement of charges.
§ 111.62 Contents of notice of charges.
The notice of charges must inform the broker that:
(a) Sections 554 and 558, Title 5, United States Code, are applicable to the formal proceedings;
(b) The broker may be represented by counsel;
(c) The broker will have the right to cross-examine witnesses;
(d) Within 10 calendar days after service of this notice, the broker will be notified of the time and place of a hearing on the charges; and
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(e) Prior to the hearing on the charges, the broker may file, in dupli- cate with the port director, a verified answer to the charges.
§ 111.63 Service of notice and state- ment of charges.
(a) Individual. The port director will serve the notice of charges and the statement of charges against an indi- vidual broker as follows:
(1) By delivery to the broker person- ally;
(2) By certified mail addressed to the broker, with demand for a return card signed solely by the addressee;
(3) By any other means which the broker may have authorized in a writ- ten communication to the port direc- tor; or
(4) If attempts to serve the broker by the methods prescribed in paragraphs (a)(1) through (a)(3) of this section are unsuccessful, the port director may serve the notice and statement by leav- ing them with the person in charge of the broker’s office.
(b) Partnership, association or corpora- tion. The port director will serve the notice of charges and the statement of charges against a partnership, associa- tion, or corporation broker as follows:
(1) By delivery to any member of the partnership personally or to any officer of the association or corporation per- sonally;
(2) By certified mail addressed to any member of the partnership or to any officer of the association or corpora- tion, with demand for a return card signed solely by the addressee;
(3) By any other means which the broker may have authorized in a writ- ten communication to the port direc- tor; or
(4) If attempts to serve the broker by the methods prescribed in paragraphs (b)(1) through (b)(3) of this section are unsuccessful, the port director may serve the notice and statement by leav- ing them with the person in charge of the broker’s office.
(c) Certified mail; evidence of service. When the service under this section is by certified mail, the receipt of the re- turn card duly signed will be satisfac- tory evidence of service.
§ 111.64 Service of notice of hearing and other papers.
(a) Notice of hearing. After service of the notice and statement of charges, the port director will serve upon the broker and his attorney if known, by one of the methods set forth in § 111.63 or by ordinary mail, a written notice of the time and place of the hearing. The hearing will be scheduled to take place within 30 calendar days after service of the notice of hearing.
(b) Other papers. Other papers relat- ing to the hearing may be served by one of the methods set forth in § 111.63 or by ordinary mail or upon the bro- ker’s attorney.
§ 111.65 Extension of time for hearing. If the broker or his attorney requests
in writing a delay in the hearing for good cause, the hearing officer des- ignated pursuant to § 111.67(a) may re- schedule the hearing and in that case will notify the broker or his attorney in writing of the extension and the new time for the hearing.
§ 111.66 Failure to appear. If the broker or his attorney fails to
appear for a scheduled hearing, the hearing officer designated pursuant to § 111.67(a) will proceed with the hearing as scheduled and will hear evidence submitted by the parties. The provi- sions of this part will apply as though the broker were present, and the Sec- retary of Homeland Security, or his designee, may issue an order of suspen- sion of the license or permit for a spec- ified period of time or revocation of the license or permit, or assessment of a monetary penalty in lieu of suspension or revocation, in accordance with § 111.74 if he finds that action to be in order.
§ 111.67 Hearing. (a) Hearing officer. The hearing officer
must be an administrative law judge appointed pursuant to 5 U.S.C. 3105.
(b) Rights of the broker. The broker or his attorney will have the right to ex- amine all exhibits offered at the hear- ing and will have the right to cross-ex- amine witnesses and to present wit- nesses who will be subject to cross-ex- amination by the Government rep- resentatives.
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(c) Interrogatories. Upon the written request of either party, the hearing of- ficer may permit deposition upon oral or written interrogatories to be taken before any officer duly authorized to administer oaths for general purposes or in customs matters. The other party to the hearing will be given a reason- able time in which to prepare cross-in- terrogatories and, if the deposition is oral, will be permitted to cross-exam- ine the witness. The deposition will be- come part of the hearing record.
(d) Transcript of record. The port di- rector will provide a competent re- porter to make a record of the hearing. When the record of the hearing has been transcribed by the reporter, the port director will deliver a copy of the transcript of record to the hearing offi- cer, the broker and the Government representative without charge.
(e) Government representatives. The Assistant Commissioner will designate one or more persons to represent the Government at the hearing.
§ 111.68 Proposed findings and conclu- sions.
The hearing officer will allow the parties a reasonable period of time after delivery of the transcript of record in which to submit proposed findings and conclusions and sup- porting reasons for the findings as con- templated by 5 U.S.C. 557(c).
§ 111.69 Recommended decision by hearing officer.
After review of the proposed findings and conclusions submitted by the par- ties pursuant to § 111.68, the hearing of- ficer will make his recommended deci- sion in the case and certify the entire record to the Secretary of Homeland Security, or his designee. The hearing officer’s recommended decision must conform to the requirements of 5 U.S.C. 557.
§ 111.70 Additional submissions. Upon receipt of the record, the Sec-
retary of Homeland Security, or his designee, will afford the parties a rea- sonable opportunity to make any addi- tional submissions that are permitted under 5 U.S.C. 557(c) or otherwise re- quired by the circumstances of the case.
§ 111.71 Immaterial mistakes.
The Secretary of Homeland Security, or his designee, will disregard an im- material misnomer of a third person, an immaterial mistake in the descrip- tion of any person, thing, or place, or ownership of any property, any other immaterial mistake in the statement of charges, or a failure to prove imma- terial allegations in the description of the broker’s conduct.
§ 111.72 Dismissal subject to new pro- ceedings.
If the Secretary of Homeland Secu- rity, or his designee, finds that the evi- dence produced at the hearing indi- cates that a proper disposition of the case cannot be made on the basis of the charges preferred, he may instruct the port director to serve appropriate charges as a basis for new proceedings to be conducted in accordance with the procedures set forth in this subpart.
§ 111.73 [Reserved]
§ 111.74 Decision and notice of suspen- sion or revocation or monetary pen- alty.
If the Secretary of Homeland Secu- rity, or his designee, finds that one or more of the charges in the statement of charges is not sufficiently proved, he may base a suspension, revocation, or monetary penalty action on any re- maining charges if the facts alleged in the charges are established by the evi- dence. If the Secretary of Homeland Security, or his designee, in the exer- cise of his discretion and based solely on the record, issues an order sus- pending a broker’s license or permit for a specified period of time or revoking a broker’s license or permit or, except in a case described in § 111.53(b)(3), assess- ing a monetary penalty in lieu of sus- pension or revocation, the Assistant Commissioner will promptly provide written notification of the order to the broker and, unless an appeal from the Secretary’s order is filed by the broker (see § 111.75), the Assistant Commis- sioner will publish a notice of the sus- pension or revocation, or the assess- ment of a monetary penalty, in the FEDERAL REGISTER and in the Customs
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Bulletin. If no appeal from the Sec- retary’s order is filed, an order of sus- pension or revocation or assessment of a monetary penalty will become effec- tive 60 calendar days after issuance of written notification of the order unless the Secretary finds that a more imme- diate effective date is in the national or public interest. If a monetary pen- alty is assessed and no appeal from the Secretary’s order is filed, payment of the penalty must be tendered within 60 calendar days after the effective date of the order, and, if payment is not ten- dered within that 60-day period, the li- cense or permit of the broker will im- mediately be suspended until payment is made.
§ 111.75 Appeal from the Secretary’s decision.
An appeal from the order of the Sec- retary of Homeland Security, or his designee, suspending or revoking a li- cense or permit, or assessing a mone- tary penalty, may be filed by the broker in the Court of International Trade as provided in section 641(e), Tariff Act of 1930, as amended (19 U.S.C. 1641(e)). The commencement of those proceedings will, unless specifi- cally ordered by the Court, operate as a stay of the Secretary’s order.
§ 111.76 Reopening the case. (a) Grounds for reopening. Provided
that no appeal is filed in accordance with § 111.75, a person whose license or permit has been suspended or revoked, or against whom a monetary penalty has been assessed in lieu of suspension or revocation, may make written appli- cation in duplicate to the Assistant Commissioner to reopen the case and have the order of suspension or revoca- tion or monetary penalty assessment set aside or modified on the ground that new evidence has been discovered or on the ground that important evi- dence is now available which could not be produced at the original hearing by the exercise of due diligence. The appli- cation must set forth the precise char- acter of the evidence to be relied upon and must state the reasons why the ap- plicant was unable to produce it when the original charges were heard.
(b) Procedure. The Assistant Commis- sioner will forward the application, to-
gether with his recommendation for ac- tion thereon, to the Secretary of Homeland Security, or his designee. The Secretary may grant or deny the application to reopen the case and may order the taking of additional testi- mony before the Assistant Commis- sioner. The Assistant Commissioner will notify the applicant of the Sec- retary’s decision. If the Secretary grants the application and orders a hearing, the Assistant Commissioner will set a time and place for the hear- ing and give due written notice of the hearing to the applicant. The proce- dures governing the new hearing and recommended decision of the hearing officer will be the same as those gov- erning the original proceeding. The original order of the Secretary will re- main in effect pending conclusion of the new proceedings and issuance of a new order under § 111.77.
§ 111.77 Notice of vacated or modified order.
If, pursuant to § 111.76 or for any other reason, the Secretary of Home- land Security, or his designee, issues an order vacating or modifying an ear- lier order under § 111.74 suspending or revoking a broker’s license or permit, or assessing a monetary penalty, the Assistant Commissioner will notify the broker in writing and will publish a no- tice of the new order in the FEDERAL REGISTER and in the Customs Bulletin.
§ 111.78 Reprimands. If a broker fails to observe and fulfill
the duties and responsibilities of a broker as set forth in this part but that failure is not sufficiently serious to warrant initiation of suspension or rev- ocation proceedings, Headquarters, or the port director with the approval of Headquarters, may serve the broker with a written reprimand. The rep- rimand, and the facts on which it is based, may be considered in connection with any future disciplinary proceeding that may be instituted against the broker in question.
§ 111.79 Employment of broker who has lost license.
Five years after the revocation or cancellation ‘‘with prejudice’’ of a li- cense, the ex-broker may petition the
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Assistant Commissioner for authoriza- tion to assist, or accept employment with, a broker. The petition will not be approved unless the Assistant Commis- sioner is satisfied that the petitioner has refrained from all activities de- scribed in § 111.42 and that the peti- tioner’s conduct has been exemplary during the period of disability. The As- sistant Commissioner will also give consideration to the gravity of the mis- conduct which gave rise to the peti- tioner’s disability. In any case in which the misconduct led to pecuniary loss to the Government or to any person, the Assistant Commissioner will also take into account whether the petitioner has made restitution of that loss.
§ 111.80 [Reserved]
§ 111.81 Settlement and compromise. The Assistant Commissioner, with
the approval of the Secretary of Home- land Security, or his designee, may set- tle and compromise any disciplinary proceeding which has been instituted under this subpart according to the terms and conditions agreed to by the parties including, but not limited to, the assessment of a monetary penalty in lieu of any proposed suspension or revocation of a broker’s license or per- mit.
Subpart E—Monetary Penalty and Payment of Fees
§ 111.91 Grounds for imposition of a monetary penalty; maximum pen- alty.
Customs may assess a monetary pen- alty or penalties as follows:
(a) In the case of a broker, in an amount not to exceed an aggregate of $30,000 for one or more of the reasons set forth in §§ 111.53 (a) through (f) other than those listed in § 111.53(b)(3), and provided that no license or permit suspension or revocation proceeding has been instituted against the broker under subpart D of this part for any of the same reasons; or
(b) In the case of a person who is not a broker, in an amount not to exceed $10,000 for each transaction or violation referred to in § 111.4 and in an amount not to exceed an aggregate of $30,000 for all those transactions or violations.
§ 111.92 Notice of monetary penalty.
(a) Pre-penalty notice. If assessment of a monetary penalty under § 111.91 is contemplated, Customs will issue a written notice which advises the broker or other person of the allega- tions or complaints against him and explains that the broker or other per- son has a right to respond to the alle- gations or complaints in writing within 30 days of the date of mailing of the no- tice. The Fines, Penalties, and Forfeit- ures Officer has discretion to provide additional time for good cause.
(b) Penalty notice. If the broker or other person files a timely response to the written notice of the allegations or complaints, the Fines, Penalties, and Forfeiture Officer will review this re- sponse and will either cancel the case, issue a notice of penalty in an amount which is lower than that provided for in the written notice of allegations or complaints or issue a notice of penalty in the same amount as that provided in the written notice of allegations or complaints. If no response is received from the broker or other person, the Fines, Penalties, and Forfeitures Offi- cer will issue a notice of penalty in the same amount as that provided in the written notice of allegations or com- plaints.
[T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
§ 111.93 Petition for relief from mone- tary penalty.
A broker or other person who re- ceives a notice issued under § 111.92(b) may file a petition for relief from the monetary penalty in accordance with the procedures set forth in part 171 of this chapter.
[T.D. 00–17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
§ 111.94 Decision on monetary penalty.
Customs will follow the procedures set forth in part 171 of this chapter in considering any petition for relief filed under § 111.93. After Customs has con- sidered the allegations or complaints set forth in the notice issued under § 111.92 and any timely response made to the notice by the broker or other
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person, the Fines, Penalties, and For- feitures Officer will issue a written de- cision to the broker or other person setting forth the final determination and the findings of fact and conclusions of law on which the determination is based. If the final determination is that the broker or other person is lia- ble for a monetary penalty, the broker or other person must pay the monetary penalty, or make arrangements for payment of the monetary penalty, within 60 calendar days of the date of the written decision. If payment or ar- rangements for payment are not timely made, Customs will refer the matter to the Department of Justice for institu- tion of appropriate judicial pro- ceedings.
§ 111.95 Supplemental petition for re- lief from monetary penalty.
A decision of the Fines, Penalties, and Forfeitures Officer with regard to any petition filed in accordance with part 171 of this chapter may be the sub- ject of a supplemental petition for re- lief. Any supplemental petition also must be filed in accordance with the provisions of part 171 of this chapter.
§ 111.96 Fees.
(a) License fee; examination fee; finger- print fee. Each applicant for a broker’s license pursuant to § 111.12 must pay a fee of $200 to defray the costs to Cus- toms in processing the application. Each individual who intends to take the written examination provided for in § 111.13 must pay a $200 examination fee before taking the examination. An individual who submits an application for a license must also pay a finger- print check and processing fee; the port director will inform the applicant of the current Federal Bureau of Inves- tigation fee for conducting fingerprint checks and the Customs fingerprint processing fee, the total of which must be paid to Customs before further proc- essing of the application will occur.
(b) Permit fee. A fee of $100 must be paid in connection with each permit application under § 111.19 to defray the costs of processing the application, in- cluding an application for reinstate- ment of a permit that was revoked by operation of law or otherwise.
(c) User fee. Payment of an annual user fee of $138 is required for each per- mit, including a national permit under § 111.19(f), granted to an individual, partnership, association, or corporate broker. The user fee is payable when an initial district permit is issued concur- rently with a license under § 111.19(a), or in connection with the filing of an application for a permit under § 111.19 (b) or (f), and for each subsequent cal- endar year at the port through which the broker was granted the permit or at the port referred to in § 111.19(c) in the case of a national permit. The user fee must be paid by the due date as published annually in the FEDERAL REGISTER, and must be remitted in ac- cordance with the procedures set forth in § 24.22(i) of this chapter. When a broker submits an application for a permit or is issued an initial district permit under § 111.19, the full $138 user fee must be remitted with the applica- tion or when the initial district permit is issued, regardless of the point during the calendar year at which the applica- tion is submitted or the initial district permit is issued. If a broker fails to pay the annual user fee by the published due date, the appropriate port director will notify the broker in writing of the failure to pay and will revoke the per- mit to operate. The notice will con- stitute revocation of the permit.
(d) Status report fee. The status report required under § 111.30(d) must be ac- companied by a fee of $100 to defray the costs of administering the reporting re- quirement.
(e) Method of payment. All fees pre- scribed under this section must be paid by check or money order payable to the United States Customs Service.
[T.D 00–17, 65 FR 13891, Mar. 15, 2000, as amended by CBP Dec. 03–13, 68 FR 43630, July 24, 2003; 72 FR 3734, Jan. 26, 2007]
PART 112—CARRIERS, CARTMEN, AND LIGHTERMEN
Sec. 112.0 Scope.
Subpart A—General Provisions
112.1 Definitions. 112.2 Bond or license required.
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19 CFR Ch. I (4–1–12 Edition)§ 112.0
Subpart B—Authorization of Carriers To Carry Bonded Merchandise
112.11 Carriers which may be authorized. 112.12 Application for authorization. 112.13 Approval of applications. 112.14 Discontinuance of carrier bonds.
Subpart C—Licensing of Cartmen and Lightermen
112.21 License required. 112.22 Application for license. 112.23 Investigation of applicant. 112.24 Issuance of license. 112.25 Bonded carriers. 112.26 Duration of license. 112.27 Marking of vehicles and vessels. 112.28 Production of license. 112.29 Records. 112.30 Suspension or revocation of license.
Subpart D—Identification Cards
112.41 Identification cards required. 112.42 Application for identification card. 112.43 Form of identification card. 112.44 Changes in information on identifica-
tion cards. 112.45 Surrender of identification cards. 112.46 Report of loss or theft. 112.47 Wrongful presentation. 112.48 Revocation or suspension of identi-
fication cards. 112.49 Temporary identification cards.
AUTHORITY: 19 U.S.C. 66, 1551, 1565, 1623, 1624.
SOURCE: T.D. 73–140, 38 FR 13551, May 23, 1973, unless otherwise noted.
§ 112.0 Scope.
This part sets forth regulations pro- viding for the bonding of carriers which will receive merchandise for transpor- tation in bond, the licensing of cartmen and lightermen, and the pro- cedures for applying for such bonds and licenses. This part also sets forth the regulations concerning the obtaining of identification cards by cartmen and lightermen, and their employees and the procedures for revoking or sus- pending licenses and identification cards. Provisions setting forth the du- ties and responsibilities of cartmen and lightermen are set forth in part 125 of this chapter.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 94–81, 59 FR 51494, Oct. 12, 1994]
Subpart A—General Provisions
§ 112.1 Definitions.
When used in this part, the following terms shall have the meaning indi- cated:
Carrier. A ‘‘carrier’’ is one who under- takes to transport goods, merchandise or people.
Cartman. A ‘‘cartman’’ is one who un- dertakes to transport goods or mer- chandise within the limits of the port.
Common carrier. A ‘‘common carrier’’ is a carrier owning or operating a rail- road, steamship, or other transpor- tation line or route which undertakes to transport goods or merchandise for all of the general public who choose to employ him.
Contract carrier. A ‘‘contract carrier’’ is a carrier which undertakes to trans- port specific goods or merchandise for a specific person or group of persons, and is authorized to operate as such by any agency of the United States.
District. ‘‘District’’ means the geo- graphic area in which the parties ex- cepted by the last sentence of § 112.2(b)(2) may operate under their bonds without obtaining a cartage or lighterage license issued under this part. A listing of each district, and the ports thereunder, will be published on or before October 1, 1995, and whenever updated.
Freight forwarder. A ‘‘freight for- warder’’ is one who engages in the busi- ness of dispatching shipments on behalf of other persons, for a consideration, in foreign or domestic commerce between the United States, its territories or possessions, and foreign countries, and of handling the formalities incident to such shipments, and is authorized to operate as such by any agency of the United States.
Lighterman. A ‘‘lighterman’’ is one who transports goods or merchandise on a barge, scow, or other small vessel to or from a vessel within the port, or from place to place within a port.
Private carrier. A ‘‘private carrier’’ is a carrier of his own goods or merchan- dise.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 95–77, 60 FR 50019, Sept. 27, 1995]
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§ 112.2 Bond or license required. (a) Carriers. A bond provided for in
this part is required to transact busi- ness as a carrier receiving merchandise for transportation in bond.
(b) Cartmen and lightermen—(1) Neces- sity for bond. A bond, as provided for in this part, is required to transact busi- ness as a cartman or lighterman. The cartage or lighterage of merchandise designated for examination, entered for warehouse, taken to container stations or centralized examination stations, taken into custody as unclaimed or destined for admission to a foreign trade zone may be done under the bond of a cartman or lighterman who is li- censed pursuant to the provisions of this part or that of a bonded carrier, as provided for in paragraph (a) of this section. Foreign trade zone operators, bonded warehouse proprietors, con- tainer station operators and central- ized examination station operators may engage in limited cartage or light- erage under their respective bonds. A foreign trade zone operator may engage in cartage or lighterage under his bond only for merchandise destined for his foreign trade zone and may also trans- port merchandise to his zone from any- where within the district boundaries (see definition of ‘‘district’’ at § 112.1) where the foreign trade zone is located. A bonded warehouse proprietor may engage in cartage or lighterage under his bond only for merchandise destined for his bonded warehouse and may also transport merchandise to his ware- house from anywhere within the dis- trict boundaries (see definition of ‘‘district’’ at § 112.1) where the bonded warehouse is located. A container sta- tion operator may engage in cartage or lighterage under his bond only for mer- chandise destined for his container sta- tion and may also transport merchan- dise to his container station from any- where within the district boundaries (see definition of ‘‘district’’ at § 112.1) where the container station is located. A centralized examination station op- erator may engage in cartage or light- erage under his bond only for merchan- dise destined for his centralized exam- ination station and may also transport merchandise to his centralized exam- ination station from anywhere within the district boundaries (see definition
of ‘‘district’’ at § 112.1) where the cen- tralized examination station is located.
(2) Necessity for license. A license, as provided for in this part, is required to transact business as a cartman or lighterman for the cartage or lighter- age of merchandise. Bonded carriers may engage in cartage and lighterage under their bonds without obtaining a license. Foreign trade zone operators, bonded warehouse proprietors, con- tainer station operators and central- ized examination station operators may engage, under their bonds, in the limited cartage and lighterage and other transportation described in this paragraph without obtaining a license.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 94–81, 59 FR 51494, Oct. 12, 1994; T.D. 95–77, 60 FR 50020, Sept. 27, 1995]
Subpart B—Authorization of Car- riers To Carry Bonded Mer- chandise
§ 112.11 Carriers which may be author- ized.
(a) From port to port in the United States. The port director may authorize the following types of carriers to re- ceive merchandise for transportation in bond from one port to another in the United States upon compliance with the provisions of this subpart:
(1) Common carriers. (2) Contract carriers. (3) Freight forwarders. (4) Private carriers, if: (i) The merchandise (including con-
tainerized merchandise) to be trans- ported is the property of the private carrier; and
(ii) The private carrier files a bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter,
(b) Between ports in Canada or Mexico through the United States. Canadian and Mexican motor vehicle common car- riers may be authorized to transport merchandise under bond between ports in Canada or Mexico through the United States (see part 123 of this chap- ter), upon compliance with the provi- sions of this subpart.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 81–243, 46 FR 45602, Sept. 14, 1981; T.D. 84–213, 49 FR 41171, Oct. 19, 1984]
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§ 112.12 Application for authorization.
(a) General requirements. All carriers and freight forwarders desiring to be authorized to receive merchandise for transportation in bond shall file with the port director concerned a bond on Customs Form 301, containing the bond conditions set forth in § 113.63 of this chapter, in a sum specified by the port director accompanied by a fee of $50. A check or money order shall be made payable to the United States Customs Service.
(b) Special requirements. In addition to the requirements in paragraph (a) of this section, the specified carriers shall also file with the port director the fol- lowing documents:
(1) Common carriers other than rail- road, steamship, or airline companies. Common carriers other than railroad, steamship, or airline companies gen- erally known to be engaged in common carriage, shall file a certified extract of its articles of incorporation or charter showing that it is authorized to engage in common carriage, and a statement that it is operating or intends to oper- ate as a common carrier.
(2) Contract carriers and freight for- warders. Contract carriers and freight forwarders shall file a certificate from the appropriate agency of the United States showing that the applicant is authorized to operate as a contract carrier or freight forwarder by that agency and a statement showing that the applicant is operating or intends to operate as such.
(3) Private carriers. The private car- rier shall file the bond with the direc- tor of the port where the private car- rier intends to operate. If the private carrier intends to operate in two or more Customs ports, he shall file the bond with the director of one of the ports, send a copy of the bond to the di- rector for each additional port, and in- clude with the bond and copies of the bond a list of all Customs districts in which he intends to operate. If the pri- vate carrier is the proprietor of one or more Customs bonded warehouses or bonded container stations, or the oper- ator of a foreign trade zone, to which imported merchandise will be trans- ported, he shall accompany the bond and copies of the bond by a statement
showing the location of each ware- house, container station, or zone.
(4) Motor carriers. All motor carriers shall file:
(i) A detailed description of the ter- minal facilities employed by the prin- cipal at the points of origin and des- tination on the routes covered; and
(ii) A statement showing that facili- ties are available for the segregation and safeguarding of the packages des- ignated by the port director for exam- ination from a particular shipment.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 81–243, 46 FR 45602, Sept. 14, 1981; T.D. 84–213, 49 FR 41171, Oct. 19, 1984; T.D. 86–16, 51 FR 5063, Feb. 11, 1986]
§ 112.13 Approval of applications. The port director shall approve an
application for authorization as car- riers of bonded merchandise and the bond filed, authorizing the applicant to act as a carrier of bonded merchandise provided he is satisfied that:
(a) The amount of the bond is suffi- cient.
(b) All documents required by this subpart have been furnished and are in proper form; and
(c) The fee prescribed has been paid.
§ 112.14 Discontinuance of carrier bonds.
Carrier bonds may be discontinued at any time by the Commissioner of Cus- toms or by the director of the port where the bond is filed. Authorized car- riers desiring to terminate such bonds shall make application therefor to such port director.
Subpart C—Licensing of Cartmen and Lightermen
§ 112.21 License required. A customhouse cartage or lighterage
license issued by the port director in accordance with this part or specific authorization of the Commissioner of Customs shall be required to perform Customs cartage or lighterage, except as provided in §§ 18.3 and 125.12 of this chapter or, as provided in § 112.2(b), when such merchandise is to be trans- ported under the bond of the foreign trade zone operator, bonded warehouse proprietor, centralized examination
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station operator, container station op- erator, or a bonded carrier.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 112.22 Application for license.
(a) General requirements. An applicant for a customhouse cartage or lighter- age license shall file with the director of the port where he proposes to con- duct business the following:
(1) A bond on Customs Form 301, con- taining the bond conditions set forth in § 113.63 of this chapter, in an amount specified by the port director.
(2) Payment of a fee of $100. A check or money order shall be made payable to the United States Customs Service.
(3) If required by the port director, a list showing the names and addresses of the managing officers and members of the organization or of the persons who will receive or transport imported merchandise which has not been re- leased from Customs custody, or a list of all such persons and their addresses.
(b) Special requirements—(1) Cartman licensed by city or State. Any cartman li- censed by city or State authorities shall present to the port director his city or State license, after which such documents shall be returned.
(2) Lighterman. A lighterman shall present his vessel’s marine documents, if any have been issued, to the port di- rector for examination, after which such documents shall be returned.
(c) Reapplication by certain terminated licensees. Where the applicant for a cus- tomhouse cartage or lighterage license has previously been issued such a li- cense and the license has been termi- nated pursuant to § 113.56 of this chap- ter, the port director may waive the filing of the items described in para- graphs (a)(2) and (a)(3) of this section, as well as the investigation described in § 112.23, provided the application is made within 30 days of the effective date of the termination of the previous license. Any requirements waived by the port director under this paragraph will be deemed to have been complied with for purposes of § 112.24(b).
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 74–200, 39 FR 27128, July 25, 1974; T.D. 76–324, 41 FR 50822, Nov. 18, 1976; T.D. 84–213, 49 FR 41171, Oct. 19, 1984]
§ 112.23 Investigation of applicant.
The port director may refer the ap- plication for a cartman’s or lighterman’s license to the appropriate special agent in charge where inves- tigation and report concerning the character, qualification, and experi- ence of the applicant as well as the na- ture and fitness of the equipment to be used.
§ 112.24 Issuance of license.
The port director shall issue a cus- tomhouse cartage and lighterage li- cense on Customs Form 3857 provided he is satisfied that:
(a) The character, qualifications, and experience of the applicant and fitness of his equipment are satisfactory.
(b) The applicant has complied with all the requirements of § 112.22.
§ 112.25 Bonded carriers.
A carrier or freight forwarder who has filed a bond on Customs Form 301 containing the bond conditions set forth in § 113.63 of this chapter may transport merchandise within a port for which the bond provides coverage.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 112.26 Duration of license.
A license issued in accordance with this subpart shall remain in force and effect until the license is suspended or revoked pursuant to § 112.30 or until the required bond is terminated pursuant to § 113.27 of this chapter.
[T.D. 76–324, 41 FR 50822, Nov. 18, 1976, as amended by T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 112.27 Marking of vehicles and ves- sels.
(a) Marking required. Every vehicle li- censed by Customs for cartage and every barge, scow, or other lighter li- censed by Customs for lighterage shall be marked with the legend ‘‘Custom- house License No. llll’’, and the name of the person or firm to whom the license has been issued. The abbre- viated legend ‘‘C.H.L. No. llll’’ may be used.
(b) Size of marking. The marking re- quired by this section shall appear in
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19 CFR Ch. I (4–1–12 Edition)§ 112.28
letters and figures not less than 3 inches high.
(c) Place of marking—(1) Carts, trucks, drays, and other vehicles. Every cart, truck, dray, or other vehicle used for Customs cartage by a licensed cartman shall be marked with the required leg- end and name on each side by painting directly onto the vehicle, or by the per- manent attachment of signs bearing the required marking. However, if such marking is found by the port director to be impractical, he may designate some other conspicuous place upon the vehicle where the marking shall ap- pear.
(2) Barges, scows, lighters, and other vessels. Every barge, scow, lighter, or other vessel used for Customs lighter- age by a licensed lighterman shall be conspicuously marked with the re- quired legend and name.
(d) Removal of marking upon termi- nation of license. The markings required by this section shall be removed upon termination of the license.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 84–213, 49 FR 41171, Oct. 19, 1984]
§ 112.28 Production of license. Inspectors or other Customs officers
may require any person claiming to be a licensed customhouse cartman or lighterman to produce his license for inspection.
§ 112.29 Records. (a) Records of cartage and lighterage.
The port director may require that li- censed Customs cartmen and lightermen shall make, keep, and promptly submit for Customs inspec- tion and examination upon request therefor such current written records relating to cartage and lighterage as may be needed for purposes of local Customs administration. Cartmen and lightermen shall maintain these records for 3 years from the expiration date of the related contract for cartage or lighterage.
(b) Current list of officers, members, or employees. The port director may re- quire a licensee to furnish, at such times and intervals as the port director deems necessary, a current list show- ing the names and addresses of the managing officers and members of the
organization or of the persons who will receive or transport imported merchan- dise which has not been released from Customs custody, or a list of all such persons and their addresses.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 79–159, 44 FR 31968, June 4, 1979]
§ 112.30 Suspension or revocation of li- cense.
(a) Grounds for suspension or revoca- tion of licenses. The port director may revoke or suspend the license of a cartman or lighterman if:
(1) His license is not promptly pro- duced upon demand;
(2) His vehicle or vessel is not prop- erly marked, as required by § 112.27;
(3) The cartman or lighterman re- fuses or neglects to obey any proper order of a Customs officer or any Cus- toms order, rule, or regulation relative to the cartage or lighterage of mer- chandise, including the making, keep- ing, and submitting of current written records relating to cartage and lighter- age;
(4) The license was obtained through fraud or the misstatement of a mate- rial fact;
(5) The holder of such a license or an officer of a corporation holding such a license is convicted of or has com- mitted acts which would constitute a felony, or a misdemeanor involving theft, smuggling, or a theft-connected crime. Any change in the employment status of the corporate officer (e.g., dis- charge, resignation, demotion, or pro- motion) prior to conviction of a mis- demeanor involving theft, smuggling, or a theft-connected crime, resulting from acts committed while a corporate officer, will not preclude application of this provision;
(6) The holder of such license permits it to be used by any other person;
(7) The holder of such license fails to surrender promptly, or satisfactorily explain the failure to surrender, to the port director, identification cards of persons no longer employed by him where identification cards are required pursuant to § 112,41;
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(8) The holder of such license fails to furnish a current list of names and ad- dresses of officers and members or em- ployees when required by the port di- rector pursuant to § 112.29;
(9) The holder is guilty of any neg- ligence, dishonest or deceptive prac- tices or carelessness in the conduct of his business; or
(10) The port director determines that the bond is not sufficient in amount or lacks sufficient sureties, and a satisfactory new bond with good and sufficient sureties is not furnished within a reasonable time.
(b) Notice of revocation or suspension. The port director shall suspend or re- voke a license by serving notice of the proposed action in writing upon the holder of the license. Such notice shall be in the form of a statement specifi- cally setting forth the grounds for rev- ocation or suspension of the license and shall be final and conclusive upon the licensee unless he shall file with the port director a written notice of appeal in accordance with paragraph (c) of this section.
(c) Notice of appeal. The licensee may file a written notice of appeal from the revocation or suspension within 10 days following receipt of the notice of rev- ocation or suspension. The notice of appeal shall be filed in duplicate, and shall set forth the response of the li- censee to the statement of the port di- rector. The licensee in his notice of ap- peal may request a hearing.
(d) Hearing on appeal—(1) Notification of and time of hearing. If a hearing is re- quested, it shall be held before a hear- ing officer designated by the Secretary of the Treasury or his designee within 30 days following application therefor. The licensee shall be notified of the time and place of the hearing at least 5 days prior thereto.
(2) Conduct of hearing. The holder of the license may be represented by counsel at the revocation or suspension hearing. All evidence and testimony of witnesses in such proceeding, including substantiation of charges and the an- swer thereto, shall be presented with both parties having the right of cross- examination. A stenographic record of the proceedings shall be made and a copy thereof shall be delivered to the licensee. At the conclusion of such pro-
ceedings or review of a written appeal, the hearing officer or the port director, as the case may be, shall forthwith transmit all papers and the steno- graphic record of the hearing, if held, to the Commissioner of Customs, to- gether with his recommendation for final action.
(3) Additional arguments. Following a hearing and within 10 calendar days after delivery of a copy of the steno- graphic record, the licensee may sub- mit to the Commissioner of Customs in writing additional views and argu- ments on the basis of such record.
(4) Failure to appear. If neither the li- censee nor his attorney appear for a scheduled hearing, the hearing officer shall conclude the hearing and trans- mit all papers with his recommenda- tion to the Commissioner of Customs.
(e) Decision on the appeal. The Com- missioner shall render his decision, in writing, stating his reasons therefor, with respect to the action proposed by the hearing officer or the port director. Such decision shall be transmitted to the port director and served by him on the licensee.
(f) Review by the Court of International Trade. Any licensee adversely affected by a decision of the Commissioner of Customs may appeal the decision in the Court of International Trade.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 85–90, 50 FR 21431, May 24, 1985; T.D. 88–63, 53 FR 40220, Oct. 14, 1988]
Subpart D—Identification Cards
§ 112.41 Identification cards required.
A port director may require each li- censed cartman or lighterman and each employee thereof who receives, trans- ports, or otherwise handles imported merchandise which has not been re- leased from Customs custody to carry and display upon request of a Customs officer an identification card issued by Customs. The card shall be in the pos- session of the person in whose name it is issued at all times when he is en- gaged in transactions with respect to imported merchandise. An identifica- tion card shall not be issued to any person whose employment in connec- tion with the transportation of bonded merchandise will, in the judgment of
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the port director, endanger the rev- enue.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 99–64, 64 FR 43266, Aug. 10, 1999]
§ 112.42 Application for identification card.
An application for an identification card required pursuant to § 112.41 of this part, shall be filed personally by the applicant with the port director on Customs Form 3078 together with two 11⁄4″ × 11⁄4″ color photographs of the ap- plicant. The fingerprints of the appli- cant shall also be required on form FD 258 or electronically at the time of fil- ing the application. The port director shall inform the applicant of the cur- rent Federal Bureau of Investigation user fee for conducting fingerprint checks and the Customs administrative processing fee, the total of which must be tendered with the application. The application may be referred for inves- tigation and report concerning the character of the applicant.
[T.D. 93–18, 58 FR 15772, Mar. 24, 1993, as amended by T.D. 01–14, 66 FR 8767, Feb. 2, 2001]
§ 112.43 Form of identification card.
The identification card shall be issued on Customs Form 3873 and shall not be valid unless signed by the em- ployee and a Customs officer and the U.S. Customs seal is impressed there- on. The holder shall encase the card in protective transparent plastic so that both sides are clearly visible.
§ 112.44 Changes in information on identification cards.
Where there has been a change in the name, address, or employer of the hold- er, the card shall be promptly sub- mitted by the cardholder to the port director, supported by application in proper form indicating the change so that it may be officially changed on the Customs records. New cards shall be issued when necessary.
§ 112.45 Surrender of identification cards.
The identification card shall be sur- rendered by the holder or licensee to the port director when:
(a) The employee holder leaves the employment of the licensed cartman or lighterman;
(b) The cartman or lighterman bond or license is terminated; or
(c) The card is revoked or suspended pursuant to § 112.48.
§ 112.46 Report of loss or theft. The loss or theft of an identification
card shall be promptly reported by the cardholder to the port director.
§ 112.47 Wrongful presentation. If an identification card is presented
by a person other than the one to whom it was issued, such card shall be forthwith confiscated.
§ 112.48 Revocation or suspension of identification cards.
(a) Grounds for revocation or suspen- sion of identification cards. An identi- fication card issued pursuant to this part may be revoked or suspended by the port director for any of the fol- lowing grounds:
(1) Such card was obtained through fraud or the misstatement of a mate- rial fact;
(2) The holder of such card is con- victed of a felony, or convicted of a misdemeanor involving theft, smug- gling, or any theft-connected crime;
(3) The holder permits the card to be used by any other person, or refuses to produce it upon the proper demand of a Customs officer; or
(4) The holder fails to abide by the rules and regulations prescribed in § 112.45 and part 125 of this chapter.
(b) Notice of revocation or suspension. The port director shall suspend or re- voke an identification card by serving notice of the proposed action in writing upon the holder of the card. Such no- tice shall be in the form of a statement specifically setting forth the grounds for revocation or suspension of the card and shall be final and conclusive upon the holder unless he shall file with the port director a written notice of appeal in accordance with paragraph (c) of this section.
(c) Notice of appeal. The holder may file a written notice of appeal from the revocation or suspension within 10 days following receipt of the notice of rev- ocation or suspension. The notice of
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appeal shall be filed, in duplicate, and shall set forth the response of the hold- er to the statement of the port direc- tor. The holder in his notice of appeal may request a hearing.
(d) Hearing on appeal—(1) Notification of and time of hearing. If a hearing is re- quested, it shall be held before a hear- ing officer designated by the Secretary of the Treasury or his designee within 30 days following application therefor. The holder shall be notified of the time and place of hearing at least 5 days prior thereto.
(2) Conduct of hearing. The holder of the card may be represented by counsel at the revocation or suspension hear- ing. All evidence and testimony of wit- nesses in such proceeding, including substantiation of charges and the an- swer thereto, shall be presented with both parties having the right of cross- examination. A stenographic record of the proceedings shall be made and a copy thereof shall be delivered to the cardholder. At the conclusion of such proceedings or review of a written ap- peal, the hearing officer or the port di- rector, as the case may be, shall forth- with transmit all papers and the steno- graphic record of the hearing, if held, to the Commissioner of Customs, to- gether with his recommendation for final action.
(3) Additional arguments. Following a hearing and within 10 calendar days after delivery of a copy of the steno- graphic record, the holder of the card may submit to the Commissioner of Customs in writing additional views and arguments on the basis of such record.
(4) Failure to appear. If neither the cardholder nor his attorney appear for a scheduled hearing, the hearing officer shall conclude the hearing and trans- mit all papers with his recommenda- tion to the Commissioner of Customs.
(e) Decision on the appeal. The Com- missioner shall render his decision, in writing, stating his reasons therefor, with respect to the action proposed by the hearing officer or the port director. Such decision shall be transmitted to the port director and served by him on the cardholder.
§ 112.49 Temporary identification cards.
(a) Issuance. When an identification card is required by the port director under § 112.41, and the port director de- termines that the application for the identification card cannot be adminis- tratively processed in a reasonable pe- riod of time, any licensed cartman or lighterman may upon written request have a temporary identification card issued by the port director to his em- ployee if he can show to the satisfac- tion of the port director that a hard- ship to his business would result pend- ing issuance of an identification card.
(b) Validity and renewal. The tem- porary identification card shall be valid for a period of 60 days. The port director may renew the temporary identification card for additional 30- day periods if he feels that the cir- cumstances under which the temporary identification card was originally issued continue to exist. The tem- porary identification card shall be re- turned by the holder or licensee to the port director when the identification card is issued or the privileges granted thereby are withdrawn.
(c) Withdrawal of temporary card. The temporary identification card may be withdrawn at any time if in the judg- ment of the port director continuation of the privileges granted thereby would endanger the revenue or if the holder of the temporary identification card re- fuses or neglects to obey any proper order of a Customs officer or any Cus- toms order, rule, or regulation.
(d) Bond. The licensed cartman or lighterman shall as a condition prece- dent to the issuance of a temporary identification card to his employee be required to post a bond in a penal sum, the amount to be determined by the port director, to guarantee return of the temporary identification card by the holder upon its withdrawal or upon issuance of a permanent identification card and to cover any loss or damage caused to the United States by the holder of the temporary identification card. The bond shall be on Customs Form 301 and contain the bond condi- tions set forth in § 113.63 of this chapter
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and be in such amount as determined by the port director.
[T.D. 73–140, 38 FR 13551, May 23, 1973, as amended by T.D. 84–213, 49 FR 41171, Oct. 19, 1984]
PART 113—CUSTOMS BONDS
Sec. 113.0 Scope.
Subpart A—General Provisions
113.1 Authority to require security or exe- cution of bond.
113.2 Powers of Commissioner of Customs relating to bonds.
113.3 Liability of surety on a terminated bond.
113.4 Bonds and carnets.
Subpart B—Bond Application and Approval of Bond
113.11 Bond approval. 113.12 Bond application. 113.13 Amount of bond. 113.14 Approved form of bond inadequate. 113.15 Retention of approved bonds.
Subpart C—Bond Requirements
113.21 Information required on the bond. 113.22 Witnesses required. 113.23 Changes made on the bond. 113.24 Riders. 113.25 Seals. 113.26 Effective dates of bonds and riders. 113.27 Effective dates of termination of
bond.
Subpart D—Principals and Sureties
113.30 Information pertaining to principals and sureties on the bond.
113.31 Same party as principal and surety; attorney in fact.
113.32 Partnerships as principals. 113.33 Corporations as principals. 113.34 Co-principals. 113.35 Individual sureties. 113.36 Partner acting as surety on behalf of
a partner or on behalf of a partnership. 113.37 Corporate sureties. 113.38 Delinquent sureties. 113.39 Procedure to remove a surety from
Treasury Department Circular 570. 113.40 Acceptance of cash deposits or obliga-
tions of the United States in lieu of sure- ties on bonds.
Subpart E—Production of Documents
113.41 Entry made prior to production of documents.
113.42 Time period for production of docu- ments.
113.43 Extension of time period. 113.44 Assent of sureties to an extension of
a bond. 113.45 Charge for production of a missing
document made against a continuous bond.
Subpart F—Assessment of Damages and Cancellation of Bond
113.51 Cancellation of bond or charge against the bond.
113.52 Failure to satisfy the bond. 113.53 Waiver of Customs requirement sup-
ported by a bond. 113.54 Cancellation of erroneous charges. 113.55 Cancellation of export bonds.
Subpart G—Customs Bond Conditions
113.61 General. 113.62 Basic importation and entry bond
conditions. 113.63 Basic custodial bond conditions. 113.64 International carrier bond conditions. 113.65 Repayment of erroneous drawback
payment bond conditions. 113.66 Control of containers and instru-
ments of international traffic bond con- ditions.
113.67 Commercial gauger and commercial laboratory bond conditions.
113.68 Wool and fur products labeling acts and fiber products identification act bond conditions.
113.69 Production of bills of lading bond conditions.
113.70 Bond condition to indemnify United States for detention of copyrighted ma- terial.
113.71 Bond condition to observe neutrality. 113.72 Bond condition to pay court costs
(condemned goods). 113.73 Foreign trade zone operator bond
conditions. 113.74 Bond conditions to indemnify a com-
plainant under section 337 of Tariff Act of 1930, as amended.
113.75 Bond conditions for deferral of duty on large yachts imported for sale at United States boat shows.
APPENDIX A TO PART 113—AIRPORT CUSTOMS SECURITY AREA BOND
APPENDIX B TO PART 113—BOND TO INDEMNIFY COMPLAINANT UNDER SECTION 337, TARIFF ACT OF 1930, AS AMENDED
APPENDIX C TO PART 113—BOND FOR DEFER- RAL OF DUTY ON LARGE YACHTS IMPORTED FOR SALE AT UNITED STATES BOAT SHOWS
APPENDIX D TO PART 113—IMPORTER SECU- RITY FILING BOND
AUTHORITY: 19 U.S.C. 66, 1623, 1624. Subpart E also issued under 19 U.S.C. 1484,
1551, 1565. Section 113.74 also issued under 19 U.S.C.
1337.
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Section 113.75 and appendix C also issued under 19 U.S.C. 1484b.
SOURCE: T.D. 84–213, 49 FR 41171, Oct. 19, 1984, unless otherwise noted.
§ 113.0 Scope. This part sets forth the general re-
quirements applicable to bonds. It con- tains the general authority and powers of the Commissioner of Customs in re- quiring bonds, bond approval and exe- cution, bond conditions, general and special bond requirements, the require- ments which must be met to be either a principal or a surety, the require- ments concerning the production of documents, the authority and manner of assessing liquidated damages and re- quirements for cancelling the bond or charges against a bond.
Subpart A—General Provisions § 113.1 Authority to require security or
execution of bond. Where a bond or other security is not
specifically required by law, the Com- missioner of Customs, pursuant to Treasury Department Order No. 165 Re- vised, as amended (T.D. 53654, 19 FR 7241, November 6, 1954), may by regula- tion or specific instruction require, or authorize the port director to require, such bonds or other security considered necessary for the protection of the rev- enue or to assure compliance with any pertinent law, regulation, or instruc- tion.
§ 113.2 Powers of Commissioner of Customs relating to bonds.
Whenever a bond is required or au- thorized by law, regulation, or instruc- tion, the Commissioner of Customs may:
(a) Prescribe the conditions and form of the bond and fix the amount of pen- alty, whether for the payment of liq- uidated damages, or of a penal sum, ex- cept as otherwise specifically provided by law.
(b) Provide for the approval of the sureties on the bond, without regard to any general provision of law.
(c) Authorize the execution of a term bond, the conditions of which shall ex- tend to and cover similar cases of im- portations over a period of time, not to exceed one year or such longer period
he may fix, when in his opinion special circumstances warrant a longer period.
(d) Authorize the taking of a consoli- dated bond (single entry or term) in lieu of separate bonds to assure compli- ance with two or more provisions of law, regulation, or instruction. Such a consolidated bond shall have the same force and effect as the separate bonds in lieu of which it was taken. The Com- missioner of Customs may fix the pen- alty for violation of a consolidated bond without regard to any other pro- vision of law, regulation, or instruc- tion.
§ 113.3 Liability of surety on a termi- nated bond.
The surety, as well as the principal, remains liable on a terminated bond for obligations incurred prior to termi- nation.
§ 113.4 Bonds and carnets. (a) Bonds. All bonds required to be
given under the Customs laws or regu- lations shall be known as Customs bonds.
(b) Carnets. A carnet is an inter- national customs document which serves simultaneously as a customs entry document and as a customs bond. Therefore, carnets, provided for in part 114 of this chapter, are ordinarily ac- ceptable without posting further secu- rity under the Customs laws or regula- tions requiring bonds.
Subpart B—Bond Application and Approval of Bond
§ 113.11 Bond approval. Each person who is required by law,
regulation, or specific instruction to post a bond to secure a Customs trans- action or multiple transactions must submit the bond on Customs Form 301. If the transaction(s) will occur at one Customs port, the bond shall be filed with and approved by the director of that port where the transaction(s) will take place. If the transactions will occur in more than one port the bond may be filed with and approved by any port director. Only one continuous bond for a particular activity will be authorized for each principal. The port director will determine whether the bond is in proper form and provides
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adequate security for the trans- action(s). A bond relating to repay- ment of an erroneous drawback pay- ment containing the bond conditions set forth in § 113.65 shall be filed with the appropriate drawback office for ap- proval.
§ 113.12 Bond application. (a) Single entry bond application. In
order to insure that the revenue is ade- quately protected the port director may require a person who will be en- gaged in a single Customs transaction relating to the importation or entry of merchandise to file a written bond ap- plication which may be in the form of a letter. The application shall identify the value and nature of the merchan- dise involved in the transaction to be secured. When the proper bond in a suf- ficient amount is filed with the entry summary or with the entry, or when the entry summary is filed at the time of entry, an application will not be re- quired.
(b) Continuous bond application. If a person wants to secure multiple trans- actions relating to the importation or entry of merchandise or the operation of a bonded smelting or refining ware- house, a bond application, which may be in the form of a letter, shall be sub- mitted to the port director.
(1) Information required. The applica- tion shall contain the following infor- mation:
(i) The general character of the mer- chandise to be entered; and
(ii) The total amount of ordinary Customs duties (including any taxes re- quired by law to be treated as duties) accruing on all merchandise imported by the principal during the calendar year preceding the date of the applica- tion, plus the estimated amount of any other tax or taxes on the merchandise to be collected by Customs. The total amount of duties and taxes shall be that which would have been required to be deposited had the merchandise been entered for consumption even though some or all of the merchandise may have been entered under bond. If the value or nature of the merchandise to be imported will change in any mate- rial respect during the next year the change shall be identified. If no im- ports were made during the calendar
year prior to the application, a state- ment of the duties and taxes it is esti- mated will accrue on all importations during the current year shall be sub- mitted.
(2) Application updates. If the port di- rector approves a bond based upon the application, whenever there is a sig- nificant change in the information pro- vided under this paragraph, the prin- cipal on the bond shall submit a new application containing an update of the information required by paragraph (b)(1) of this section. The new applica- tion shall be filed no later than 30 days after the new facts become known to the principal.
(c) Certification. Any application sub- mitted under this section shall be signed by the applicant and contain the following certification:
I certify that the factual information con- tained in this application is true and accu- rate and any information provided which is based upon estimates is based upon the best information available on the date of this ap- plication.
§ 113.13 Amount of bond. (a) Minimum amount of bond. The
amount of any Customs bond shall not be less than $100, except when the law or regulation expressly provides that a lesser amount may be taken. Frac- tional parts of a dollar shall be dis- regarded in computing the amount of a bond. The bond always shall be stated as the next highest dollar.
(b) Guidelines for determining amount of bond. In determining whether the amount of a bond is sufficient, the port director or drawback office in the case of a bond relating to repayment of er- roneous drawback payment (see § 113.11) should at least consider:
(1) The prior record of the principal in timely payment of duties, taxes, and charges with respect to the trans- action(s) involving such payments;
(2) The prior record of the principal in complying with Customs demands for redelivery, the obligation to hold unexamined merchandise intact, and other requirements relating to enforce- ment and administration of Customs and other laws and regulations;
(3) The value and nature of the mer- chandise involved in the transaction(s) to be secured;
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(4) The degree and type of supervision that Customs will exercise over the transaction(s);
(5) The prior record of the principal in honoring bond commitments, includ- ing the payment of liquidated damages; and
(6) Any additional information con- tained in any application for a bond.
(c) Periodic review of bond sufficiency. The port directors and drawback of- fices shall periodically review each bond filed in their respective port or drawback office in the case of a bond relating to repayment of erroneous drawback payment (see § 113.11) to de- termine whether the bond is adequate to protect the revenue and insure com- pliance with the law and regulations. If the port director or drawback office de- termines that the bond is inadequate, the principal shall be immediately no- tified in writing. The principal shall have 30 days from the date of notifica- tion to remedy the deficiency.
(d) Additional security. Notwith- standing the provisions of this section or any other provision of this chapter, if a port director or drawback office be- lieves that acceptance of a transaction secured by a continuous bond would place the revenue in jeopardy or other- wise hamper the enforcement of Cus- toms laws or regulations, he shall re- quire additional security.
§ 113.14 Approved form of bond inad- equate.
If the port director believes that none of the conditions contained in subpart G of this part is applicable to a transaction sought to be secured, the port director shall draft conditions which will cover the transaction, but before execution of the bond the condi- tions shall be submitted to Head- quarters, Attention: Director, Border Security and Trade Compliance Divi- sion, Regulations and Rulings, Office of International Trade, for approval.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 113.15 Retention of approved bonds. All bonds approved by the port direc-
tor, except the bond containing the agreement to pay court costs (con- demned goods) (see § 113.72) shall re-
main on file in the port office unless the port director is directed in writing by the Director, Border Security and Trade Compliance Division as to other disposition. The bond containing the agreement to pay court costs (con- demned goods), shall be transmitted to the United States attorney, as required by section 608, Tariff Act of 1930, as amended (19 U.S.C. 1608). The bond re- lating to repayment of erroneous draw- back payment containing the condi- tions set forth in § 113.65 shall be re- tained in the appropriate drawback of- fice.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
Subpart C—Bond Requirements § 113.21 Information required on the
bond. (a)(1) Identification of principal and
sureties. The names of the principal and sureties and their respective places of residence shall appear in the bond. In the case of a corporate principal or sur- ety, its legal designation and the ad- dress of its principal place of business shall appear.
(2) Identification of trade names and unincorporated divisions of a corporate principal. The principal may list on the bond trade names and the names of un- incorporated divisions of the corporate principal which do not have a separate and distinct legal status who are au- thorized to use the bond in their own name.
(b) Date of execution. Each bond shall bear the date it was actually executed.
(c) Statement of the amount. The amount of the bond shall be stated in figures.
(d) Use of abbreviations. Abbreviations shall not be used except in dates and the state of incorporation of the prin- cipal or the surety.
(e) Blank spaces on the bond. Lines shall be drawn through all spaces and blocks on the bond which are not filled in.
§ 113.22 Witnesses required. (a) Generally. The signature of each
party to a bond executed by a noncor- porate principal or surety shall be wit- nessed by two persons, who shall sign
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their names as witnesses, and include their addresses.
(b) Witness for both principal and sur- ety. When two persons signing as wit- nesses act for both principal and sur- ety, they shall so indicate by stating on the bond ‘‘as to both’’.
(c) Corporate principal or surety. No witnesses are required where bonds are executed by properly authorized offi- cers or agents of a corporate principal or corporate surety. For requirements concerning the execution of a bond by an authorized officer or agent of a cor- porate principal or surety, see §§ 113.33 and 113.37 of this part.
§ 113.23 Changes made on the bond.
(a) Definition of the types of changes— (1) Modification or interlineation. Modi- fications or interlineations are changes which go to the substance of the bond, or are basic revisions of the bond.
(2) Alterations or erasures. Alterations or erasures consist of minor changes, such as the correction of typographical errors, or change of address, which do not go to the substance, or result in basic revision of the bond.
(b) Prior to signing. When erasures, al- terations, modifications, or interlinea- tions are made on the bond prior to its signing by the parties to the bond, a statement by an agent of the surety company or by the personal sureties to that effect shall be placed upon the bond.
(c) After signing. If erasures or alter- ations are made after the bond is signed, but prior to the approval of the bond by Customs, the consent of all the parties shall be written on the bond. Except in cases where a change in the bond is expressly authorized by regula- tion, or by the Commissioner, no modi- fication or interlineation shall be made on the bond after execution. When a modification or interlineation is de- sired, a new bond will be executed.
(d) After approval of the bond by Cus- toms. Except in cases where a change in the bond is expressly authorized by regulations, or instructions from the Commissioner, the port director shall not permit a change as defined in para- graph (a) of this section after the bond has been approved by Customs. When changes are desired, a new bond is re-
quired, which, when approved, shall su- persede the existing bond.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]
§ 113.24 Riders.
(a) Types of riders. The port director may accept the following types of bond riders.
(1) Name change of principal. A bond rider to change the name of a principal on a bond may be used only when the change in name does not change the legal identity or status of the prin- cipal. If a new corporation is created as a result of a merger, reorganization or similar action, a bond rider for a name change of the principal can not be used. A new bond would be required.
(2) Address change. A bond rider may be used to change the address of a prin- cipal on a bond.
(3) Addition and deletion of trade names and unincorporated divisions of a cor- porate principal. A bond rider may be used to add to or delete from a bond trade names and the names of unincor- porated divisions of a corporate prin- cipal which do not have a separate and distinct legal status.
(b) Where filed. A rider must be filed at the port where the bond was ap- proved.
(c) Attachment of rider to bond. All rid- ers expressly authorized by the Com- missioner shall be securely attached to the related bond to prevent their loss or misplacement.
(d) Format of rider. The riders shall be signed, sealed, witnessed, executed, in- clude a certificate as to corporate prin- cipal, if applicable, and otherwise com- ply with the requirements of this part. The riders shall contain the following conditions:
(1) Name change of principal.
By this rider to the Customs Form 301,ll (bond number), dated ll, executed by ll, (former name), as principal, ll, (importer number), the, ll (new name), hereby cer- tifies that it is the same entity formerly known as ll, (former name), and the prin- cipal and surety agree that they are respon- sible for any act secured by this bond done under principal’s former name. Principal and surety agree to be bound under this bond to the same extent as if this bond had been exe- cuted in the principal’s new name. This rider is effective on ll (date).
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(2) Address change.
By this rider to Customs Form 301, ll (bond number) executed on ll (date), by ll, (principal’s name), as principal, ll, (importer number), and ll (surety’s name and code), as surety, which is effective on ll (date), the principal, surety or both, in- tend that the bond be amended to show ll (new address) as their address. The principal, surety or both, as may be appropriate agree to be bound as though this bond has been ex- ecuted with the new address(s) shown.
(3) Addition or deletion of trade names and unincorporated divisions of a cor- porate principal—(i) Addition rider.
By this rider to the Customs Form 301, ll, (bond number), executed on ll, (date), by ll, (principal’s name), as principal, ll, (importer number) and ll, (surety’s name and code), as surety, which is effective on ll (date), the principal and surety agree that the below listed names are unincor- porated units of the principal or are trade or business names used by the principal in its business and that this bond covers its busi- ness and that this bond covers any act done in those names to the same extent as though done in the name of the principal. The prin- cipal and surety agree that any such act shall be considered to be the act of the prin- cipal.
(ii) Deletion rider.
By this rider to the Customs Form 301, ll, (bond number), executed on ll, (date), by ll, (principals name) as principal, ll, (importer number and ll, (surety’s name and surety code), as surety, which is effec- tive on ll, (date), the principal and surety agree that the below listed names of unincor- porated units of the principal or trade or business names used by the principal in its business are deleted from the bond effective upon the date of approval of the rider by the appropriate Customs bond approval official.
§ 113.25 Seals.
When a seal is required, the seal shall be affixed adjoining the signatures of principal and surety, if individuals, and the corporate seal shall be affixed close to the signatures of persons signing on behalf of a corporation. Bonds shall be under seal in accordance with the law of the state in which executed. How- ever, when the charter or governing statute of a corporation requires its acts to be evidenced by its corporate seal, such seal is required.
§ 113.26 Effective dates of bonds and riders.
(a) General. Bonds including the ap- plication, if required by § 113.12, and riders may be filed up to 30 days before the effective date in order to provide adequate time for Customs administra- tive review and processing.
(b) Single transaction bond. A single transaction bond is effective on the date of the transaction identified on the Customs Bond, Customs Form 301.
(c) Continuous bond. A continuous bond is effective on the effective date identified on the Customs Bond, Cus- toms Form 301.
(d) Riders for name change of principal, address change, and addition of trade names and unincorporated divisions of a corporate principal. Riders for a name change of principal, address change, and addition of trade names and unin- corporated divisions of a corporate principal are effective on the effective date identified on the rider.
(e) Rider to delete trade names and un- incorporated divisions of a corporate prin- cipal. A rider to delete trade names and unincorporated divisions of a corporate principal is effective on the effective date identified on the rider if the date is at least 10 business days after the date the port receives the rider. If the rider is not received 10 business days before the identified effective date or no effective date is identified on the rider, it will be effective on the close of business of the tenth business day after it is received in the port.
§ 113.27 Effective dates of termination of bond.
(a) Termination by principal. A request by a principal to terminate a bond shall be made in writing to the port di- rector or drawback office in the case of a bond relating to repayment of erro- neous drawback payment where the bond was approved. The termination shall take effect on the date requested if the date is at least 10 business days after the date of receipt of the request. Otherwise the termination shall be ef- fective on the close of business 10 busi- ness days after the request is received at the port or drawback office. If no termination date is requested, the ter- mination shall take effect on the tenth
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business day following the date of re- ceipt of the request by the port direc- tor, or drawback office in the case of bonds relating to repayment of erro- neous drawback payment.
(b) Termination by surety. A surety may, with or without the consent of the principal, terminate a Customs bond on which it is obligated. The sur- ety shall provide reasonable written notice to both the director of the port where the bond was approved or appro- priate drawback office in the case of bonds relating to repayment of an erro- neous drawback payment and the prin- cipal of the intent to terminate. The written notice shall state the date on which the termination shall be effec- tive and shall be sent to both Customs and the principal by certified mail, with a return receipt requested. Thirty days shall constitute reasonable notice unless the surety can show to the satis- faction of the port director, or draw- back office in the case of bonds relat- ing to repayment of an erroneous draw- back payment, that a lesser time is reasonable under the facts and cir- cumstances.
(c) Effect of termination. If a bond is terminated no new Customs trans- actions shall be charged against the bond. A new bond in an appropriate amount on Customs Form 301, con- taining the appropriate bond condi- tions set forth in subpart G of this part, shall be filed before further Cus- toms activity may be transacted.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]
Subpart D—Principals and Sureties § 113.30 Information pertaining to
principals and sureties on the bond. The general information pertaining
to the principal and surety which must be given in the body of the bond is set forth in § 113.21.
§ 113.31 Same party as principal and surety; attorney in fact.
(a) Same party as principal and surety. The same person, partnership, or cor- poration cannot be both principal and surety on a bond.
(b) Attorney in fact for principal or sur- ety. In executing a bond, a person may act as:
(1) Attorney in fact for both principal and surety;
(2) Surety and attorney in fact for the principal; or
(3) Principal and attorney in fact for the surety.
§ 113.32 Partnerships as principals. (a) Names of partners on the bond—(1)
In general. Unless written notice of the full names of all partners in the part- nership has been previously filed with the port director or drawback office in the case of a bond relating to repay- ment of erroneous drawback payment, the names of all persons composing the partnership shall appear in the body of the bonds.
(2) Limited partnerships. Bonds sub- mitted by limited partnerships need only have the firm name and the names of the general partners authorized to bind the firm on them. The bond must be accompanied by a copy of the part- nership agreement. For this purpose, a partnership or a limited partnership means any business association recog- nized as such under the laws of the state where the association is orga- nized.
(b) Execution. Partnership bonds shall be executed in the firm name, with the name of the member or attorney of the firm executing it appearing imme- diately below the firm signature.
(c) Action of one principal binding on all principals of the partnership. Pursu- ant to section 495, Tariff Act of 1930, as amended (19 U.S.C. 1495), when a bond is executed by any member of the part- nership, the bond shall be binding on the other partners in like manner and to the same extent as if such other partners had personally joined in the execution. However, in the case of a limited partnership, the limited part- ners will not be bound by the actions of any other partner in the firm, except as provided for in the partnership agreement.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 86–204, 51 FR 42998, Nov. 28, 1986]
§ 113.33 Corporations as principals. (a) Name of corporation on the bonds.
The name of a corporation executing a Customs bond as a principal, may be printed or placed thereon by means of
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a rubber stamp or otherwise, followed by the written signature of the author- ized officer or attorney.
(b) Signature and seal of the corpora- tion on the bond. The bond of a cor- porate principal shall be signed by an authorized officer or attorney of the corporation and the corporate seal shall be affixed immediately adjoining the signature of the person executing the bond, as provided for in § 113.25.
(c) Bond executed by an officer of cor- poration. When a bond is executed by an officer of a corporation, a power of at- torney shall not be required if the per- son signing the bond on behalf of the corporation is known to the port direc- tor or drawback office to be the presi- dent, vice president, treasurer, or sec- retary of the corporation. The officer’s signature shall be prima facie evidence of that officer’s authority to bind the corporation. When a power of attorney is required it shall conform to the re- quirements of subpart C, part 141, of this chapter.
(d) Bond executed by an attorney in fact. When an attorney in fact executes a bond on behalf of a corporate prin- cipal and a power of attorney has not been filed with the port director (un- less exempted from filing by § 141.46 of this chapter), there shall be attached a power of attorney executed by an offi- cer of the corporation whose authority to execute the power shall be shown as prescribed in paragraph (c) of this sec- tion.
(e) Subsidiaries as co-principals. The provisions of this section shall be ap- plicable to each corporate subsidiary which joins its parent corporation by signing the bond as co-principal.
§ 113.34 Co-principals. A bond with a co-principal may be
used by a person having a distinct legal status (e.g., individual, partnership, corporation) to join another person with the same distinct legal status on the bond. A bond with a co-principal shall not be used to join an entity which does not have a distinct legal status (e.g. an unincorporated division of a corporation). However, an entity which does not have a distinct legal status may use another bond if listed on the bond by the principal at the time of execution or by subsequent
rider (see § 113.24). A bond with co-prin- cipal may not be used to join different legal entities (e.g. an individual and a corporation, a partnership and a cor- poration).
§ 113.35 Individual sureties. (a) Number required. If individuals
sign as sureties, there shall be two sureties on the bond, unless the port director is satisfied that one surety is sufficient to protect the revenue and insure compliance with the law and regulations.
(b) Qualifications to act as surety—(1) Residency and citizenship. Each indi- vidual surety on a Customs bond must be both a resident and citizen of the United States.
(2) Married women. A married woman may be accepted as a surety, unless the state in which the bond is executed prohibits her from acting in that ca- pacity.
(3) Granting of power of attorney. Any individual other than a married woman in a state where she is prohibited from acting as a surety may grant a power of attorney to sign as surety on Cus- toms bonds. Unless the power is unlim- ited, all persons to which the power re- lates shall be named.
(4) Property requirements. Each indi- vidual surety must have property available as security within the limits of the port where the contract of suretyship is to be approved. The cur- rent market value of the property less any encumbrance must be equal to or greater than the amount of the bond. If one individual surety is accepted, the individual surety must have property the value of which, less any encum- brance, is equal to or greater than twice the amount of the bond.
(c) Oath and evidence of solvency. Be- fore being accepted as a surety, the in- dividual shall:
(1) Take an oath on Customs Form 3579, setting forth:
(i) The amount of assets over and above all debts and liabilities and such exemptions as may be allowed by law; and
(ii) The general description and the location of one or more pieces of real estate owned within the limits of the port and the value thereof over and above all encumbrances.
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(2) Produce such evidence of solvency and financial responsibility as the port director may require.
(d) Determination of financial responsi- bility. An individual surety shall not be accepted on a bond until the port direc- tor is satisfied as to the financial re- sponsibility of the individual. The port director may refer the matter to the special agent-in-charge for immediate investigation to verify the financial re- sponsibility of the surety.
(e) Continuancy of financial responsi- bility. In order to follow the continued solvency and financial responsibility of individual sureties, the port director shall require a new oath and determine the financial responsibility of each in- dividual surety as prescribed in para- graphs (c) and (d) of this section at least once every 6 months, and more often if deemed advisable.
§ 113.36 Partner acting as surety on behalf of a partner or on behalf of a partnership.
A member of a partnership shall not be accepted as an individual surety on a bond executed by the partnership as principal. A partner may be an indi- vidual surety for a fellow partner on a bond if (a) the transaction is in an indi- vidual capacity and unrelated to the partnership, (b) sufficient unencumbered nonpartnership property is available as security, and (c) the in- dividual qualifies as an individual sur- ety under the provisions of § 113.35 of this part.
§ 113.37 Corporate sureties.
(a) Lists of corporations and limits of their bonds. Treasury Department Cir- cular 570 contains a list of corporations authorized to act as sureties on bonds, with the amount in which each may be accepted. Unless otherwise directed by the Commissioner of Customs, no cor- poration shall be accepted as surety on a bond if not named in the current Cir- cular as amended by FEDERAL REG- ISTER notice and no bond shall be for a greater amount than the respective limit stated in the Circular, unless the excess is protected as prescribed in § 223.11, Bureau of Government Finan- cial Operations Regulations (31 CFR 223.11).
(b) Name of corporation on the bond. The name of a corporation executing a Customs bond, as a surety, may be printed or placed thereon by means of a rubber stamp or otherwise, followed by the written signature of the author- ized officer or attorney.
(c) Name of agent or attorney on the bond. The agent or attorney acting for a corporate surety shall have stamped, printed, or typed on each bond exe- cuted by him, below his signature, his full name as it appears on the bond.
(d) Social security number of agent or attorney on the bond. In the appropriate place on each bond executed by the agent or attorney acting for a cor- porate surety, the agent or attorney shall place his/her social security num- ber, as it appears on the corporate sur- ety power of attorney.
(e) Signature and seal of the corpora- tion on the bond. A bond executed by a corporate surety shall be signed by an authorized officer or attorney of the corporation and the corporate seal shall be affixed immediately adjoining the signature of the person executing the bond, as provided for in § 113.25.
(f) Two or more corporate sureties as sureties on the same obligation. Two or more corporate sureties may be accept- ed as sureties on any obligation the amount of which does not exceed the limitations of their aggregate quali- fying power as fixed and determined by the Secretary of the Treasury. The amount for which each corporate sur- ety may act as surety in all cases must be within the limitation prescribed by the Secretary, unless the excess is pro- tected as prescribed in § 223.11, Bureau of Government Financial Operations Regulations (31 CFR 223.11). Each cor- porate surety shall limit its liability to a definite specified amount, in terms, upon the face of the bond by attaching the following:
CORPORATE SURETIES AGREEMENT FOR LIMITATION OF LIABILITY
ll (name of surety), ll (surety code), a surety company incorporated under laws of the State of ll, authorized to conduct a surety business in the State of ll, and hav- ing its principal place of business at ll (ad- dress), and ll (names of surety), ll (sur- ety code), a surety company incorporated
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under the laws of the State of ll and hav- ing its principal place of business at ll (ad- dress), as sureties, and ll (name of prin- cipal), as principal, are jointly and severally obligated to the United States in the amount of ll ($ ) on a bond executed on ll (date of execution) with each surety jointly and severally obligate with the principal in the amounts listed below and no more:
ll (name of surety) ll ($ )
ll (name of surety) ll ($ )
By this agreement the principal and sure- ties bind themselves and agree that for the purpose of allowing a joint action against any or all of them, and for that purpose only, this agreement and the bond under which they are obligated and which is incorporated by reference into this agreement, shall be treated as the joint and several as well as the several obligation of each of the parties.
Signed and sealed this llllll day of llllll19ll
llPrincipal llSurety llSurety llPort Director (Drawback Office)
(g) Power of attorney for the agent or attorney of the surety. Corporations may execute powers of attorney to act in their behalf in the following manner:
(1) Execution and contents. The cor- porate surety power of attorney shall be executed on Customs Form 5297, and shall contain the following informa- tion:
(i) Corporate surety name and num- ber,
(ii) Name and address of agent or at- torney, and social security number of agent or attorney,
(iii) Port(s) where the agent or attor- ney is authorized to act,
(iv) Date of execution of power of at- torney,
(v) Seal of the corporate surety, (vi) Signature of any two principal
officers of corporation, and (vii) Dollar amount of authorization. (2) Filing. The corporate surety power
of attorney executed on Customs Form 5297 shall be filed with Customs. The original(s) of the corporate surety power of attorney shall be retained at the port where it(they) was(were) filed.
(3) Use at port where power of attorney not filed before receipt of computer print- out. If the grantee desires to use the power of attorney at a port covered by the power of attorney, other than the one where the power of attorney was
filed, before the first computer print- out reflecting this power of attorney is received, the Customs Form 5297, shall be filed in triplicate (original and two copies), rather than duplicate. The sec- ond copy shall be validated by Customs and returned to the grantee. The grant- ee, at the time of filing a bond at a port other than the port where the power of attorney was filed, shall pro- vide this validated copy of the power of attorney as proof of the grant of au- thority. The validity of this copy of the power of attorney shall expire when the first computer printout reflecting this power of attorney is received.
(4) Term and revocation. Corporate surety powers of attorney shall con- tinue in force and effect until revoked. Any surety desiring that a designated agent or attorney be divested of a power of attorney must execute a rev- ocation on Customs Form 5297. The revocation shall take effect on the close of business on the date requested provided the corporate surety power of attorney is received 5 days before the date requested; otherwise the revoca- tion will be effective at the close of business 5 days after the request is re- ceived at the port office.
(5) Change on the power of attorney. No change shall be made on the Cus- toms Form 5297 after it has been ap- proved by Customs except the fol- lowing: (i) Grantee name change, (ii) grantee address change, and (iii) the addition of port(s) to the corporate sur- ety power of attorney on file. To make any other change to the power of attor- ney two separate Customs Forms 5297 shall be submitted, one revoking the previous power of attorney, and one containing a new grant of authority.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984; T.D. 95–77, 60 FR 50020, Sept. 27, 1995]
§ 113.38 Delinquent sureties. (a) Acceptance as surety when in de-
fault as principal on another Customs bond. No person shall be accepted as surety on any Customs bond while in default as principal on any other Cus- toms bond.
(b) Acceptance as surety when in de- fault as surety on another Customs bond. A surety on a Customs bond which is in default may be accepted as surety on
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other Customs bonds only to the extent that the surety assets are unencumbered by the default.
(c)(1) Nonacceptance of bond by port di- rector. A port director may refuse to ac- cept a bond secured by an individual or corporate surety when the surety, without just cause, is significantly de- linquent either in the number of out- standing bills or dollar amounts there- of. If the port director believes that a substantial question of law exists as to whether a breach of bond obligation has occurred he should request internal advice under the provisions of § 177.11 from the Director, Border Security and Trade Compliance Division, CBP Head- quarters.
(2) Nonacceptance of bond upon in- structions by Commissioner. The Com- missioner may, when he believes the circumstances warrant, issue instruc- tions to the port directors that they shall not accept a bond secured by an individual or corporate surety when that surety, without just cause, is sig- nificantly delinquent either in the number of outstanding bills or dollar amounts thereof.
(3) Notice of surety. The appropriate Customs officer may take the above ac- tions only after the surety has been provided reasonable notice with an op- portunity to pay delinquent amounts, provide justification for the failure to pay, or demonstrate the existence of a significant legal issue justifying fur- ther delay in payment.
(4) Review and final decision. After a review of any submission made by the surety under paragraph (c)(3) of this section, if the appropriate CBP officer is still of the opinion bonds secured by the surety should not be accepted, written notice of the decision shall be provided to the surety in person or by certified mail, return receipt re- quested, at least five days before the date that CBP will no longer accept the bonds of the surety. When notice is sent to the surety of the decision not to accept the surety’s bonds the appro- priate CBP officer shall notify the Di- rector, Border Security and Trade Compliance Division, CBP Head- quarters. Notice shall be given to the importing public by posting a copy of the decision in the customhouse. The
decision shall also be published in the Customs Bulletin.
(5) Duration of decision. Any decision not to accept a given surety’s bond shall remain in effect for a minimum of five days or until all outstanding delin- quencies are resolved, whichever is later.
(6) Actions consistent with require- ments. Any action not to accept the bonds of a surety under paragraphs (c) (1) and (2) of this section shall be con- sistent with the requirements of this section.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 95–77, 60 FR 50020, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; T.D. 99– 64, 64 FR 43266, Aug. 10, 1999]
§ 113.39 Procedure to remove a surety from Treasury Department Circular 570.
If a port director or Fines, Penalties, and Forfeitures Officer is unsatisfied with a surety company because the company has neglected or refused to pay a valid demand made on the surety company’s bond or otherwise has failed to honor an obligation on that bond, the port director may take the fol- lowing steps to recommend that the surety company be removed from Treasury Department Circular 570.
(a) Report to Headquarters. A port di- rector or Fines, Penalties, and Forfeit- ures Officer shall send the following evidence to Headquarters, Attn: Direc- tor, Border Security and Trade Compli- ance Division.
(1) A copy of the bond in issue; (2) A copy of the entry or other evi-
dence which shows that there was a de- fault on the bond;
(3) A copy of all notices, demands or correspondence sent to the surety com- pany requesting the honoring of the bond obligation;
(4) A copy of all correspondence from the surety company; and
(5) A written report of the facts known to the port director or Fines, Penalties, and Forfeitures Officer showing the unsatisfactory perform- ance by the surety company of the bond obligation(s).
(b) Review by Headquarters. The Direc- tor, Border Security and Trade Compli- ance Division, shall review submitted
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U.S. Customs and Border Protection, DHS; Treasury § 113.40
evidence and determine whether fur- ther action against the surety com- pany is warranted. If it is determined that further action is warranted, a re- port recommending appropriate action will be submitted to the Fiscal Assist- ant Secretary, Department of the Treasury, as required by § 223.18(a), Bu- reau of Government Financial Oper- ations Regulations (31 CFR 223.18(a)). The port director and Fines, Penalties, and Forfeitures Officer will be in- formed in writing of Headquarters ac- tion regarding their request for re- moval of the surety.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 95–77, 60 FR 50020, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 113.40 Acceptance of cash deposits or obligations of the United States in lieu of sureties on bonds.
(a) General provision. In lieu of sure- ties on any bond required or authorized by any law, regulation, or instruction which the Secretary of the Treasury or the Commissioner of Customs is au- thorized to enforce, the port director is authorized to accept United States money, United States bonds (except for savings bonds), United States certifi- cates of indebtedness, Treasury notes, or Treasury bills in an amount equal to the amount of the bond.
(b) Authority to sell United States obli- gations on default. At the time of de- posit of any obligation of the United States, other than United States money, with the port director or other appropriate Customs officer, the obli- gor shall deliver a duly executed power of attorney and agreement authorizing the port director or other appropriate Customs officer, as, in case of any de- fault in the performance of any of the conditions of the bond, to sell the obli- gation so deposited and to apply the proceeds of sale, in whole or in part, to the satisfaction of any damages, de- mands, or deficiency arising by reason of default. The format of the power of attorney and agreement, when the obli- gor is a corporation, is set forth below, and shall be modified as appropriate when the obligor is either an individual or a partnership:
POWER OF ATTORNEY AND AGREEMENT
(FOR CORPORATION)
ll, (name of corporation) a corporation duly incorporated under the laws of the State of ll, and having its principal office in the City of ll, State of ll, as author- ized by a resolution of the board of directors of the corporation, passed on the ll day of ll, 19—, a duly certified copy of which is attached, does constitute and appoint ll (name and official title of bond-approving of- ficer), and his successors in office, as attor- ney for said corporation, for and in the name of the corporation to collect or to sell, as- sign, and transfer the securities described as follows: llllllllllllllllllllllll
The securities having been deposited by it as security for the performance of the agree- ments undertaken in a bond with the United States, executed on the date of llll, 19— , the terms and conditions of which are in- corporated by reference into this power of attorney and agreement and made a part hereof. The undersigned agrees that in case of any default in the performance of any of the agreements the attorney shall have full power to collect the securities or any part thereof, or to sell, assign, and transfer the securities or any part thereof at public or private sale, without notice, free from any equity of redemption and without appraise- ment or valuation, notice and right to re- deem being waived and to apply the proceeds of the sale or collection in whole or in part to the satisfaction of any obligation arising by reason of default. The undersigned further agrees that the authority granted by this agreement is irrevocable. The corporation for itself, its successors and assigns, ratifies and confirms whatever the attorney shall do by virtue of this agreement.
Witnessed, signed, and sealed, this lll day of lllllll 19ll. [Corporate seal.] By ll lllllllllllllllllll
Before me, the undersigned, a notary pub- lic within and for the County of llllll, in the State of llllll (or the District of Columbia), personally appeared llllllllllll (name and title of of- ficer) and for and in behalf of said llllllllll, a corporation, acknowl- edged the execution of the foregoing power of attorney.
Witness my hand and notarial seal this llll day of lllllll, 19ll;. [Notarial seal.] Notary Public llllllllll
NOTE: Securities must be described by title, date of maturity, rate of interest, de- nomination, serial number, and whether cou- pon or registered. Failure to give a complete description will warrant rejection of this power of attorney.
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(c) Application of United States money on default. If cash is deposited in lieu of sureties on the bond, the port director or other appropriate Customs officer, as appropriate is authorized to apply the cash, in whole or in part, to the satisfaction of any damages, demands, or deficiency arising by reason of a de- fault under the bond.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]
Subpart E—Production of Documents
§ 113.41 Entry made prior to produc- tion of documents.
When entry is made prior to the pro- duction of a required document, the importer shall indicate in the ‘‘Missing Documents’’ box (box 16) on Customs Form 7501 the missing document, whether the importer gives a bond or stipulates to produce the document.
§ 113.42 Time period for production of documents.
Except when another period is fixed by law or regulations, any document for the production of which a bond or stipulation is given shall be delivered within 120 days from the date of notice from Customs requesting such docu- ment, or within any extension of such time which may be granted pursuant to § 133.43(a). If the period ends on a Sat- urday, Sunday, or holiday, delivery on the next business day shall be accepted as timely.
[T.D. 85–167, 50 FR 40363, Oct. 3, 1985]
§ 113.43 Extension of time period. (a) Application received within time pe-
riod. If a document referred to in § 113.42 is not produced within 120 days from the date of the transaction in connection with which the bond was given, the port director, in his discre- tion, upon written application of the importer, may extend the period for one further period of 2 months.
(b) Late application. No application for the extension of the period of any bond given to assure the production of a missing document shall be allowed by the port director if the application is received later than 2 months after the expiration of the period of the bond,
and any extension shall not be allowed by the port director for a period of more than 2 months from the date of expiration of the period.
(c) Acceptance of a free-entry or re- duced-duty document prior to liquidation. When a bond is given for the produc- tion of any free-entry or reduced-duty document and a satisfactory document is produced prior to liquidation of the entry or within the period during which a valid reliquidation may be completed, provided the failure to file was not due to willful negligence or fraudulent intent, it shall be accepted as satisfying the requirement that it be filed in connection with the entry, and the bond charge for its production shall be cancelled.
[T.D. 84-213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 85-167, 50 FR 40363, Oct. 3, 1985]
§ 113.44 Assent of sureties to an exten- sion of a bond.
(a) Extension prescribed by law or regu- lations. The assent of the sureties to any extension of the period prescribed in a bond is not necessary when the ex- tension is authorized by law or regula- tions.
(b) Other extension. The assent of the sureties shall be obtained before any extension of the period prescribed in a bond other than an extension author- ized by law or regulation, is allowed.
§ 113.45 Charge for production of a missing document made against a continuous bond.
When a continuous bond secures the production of a missing document and the bond is breached by the principal’s failure to timely produce that docu- ment, the claim for liquidated damages shall be in an amount equal to the amount of the single entry bond that would have been taken had the trans- action been covered by a single entry bond.
Subpart F—Assessment of Dam- ages and Cancellation of Bond
§ 113.51 Cancellation of bond or charge against the bond.
The Commissioner of Customs may authorize the cancellation of any bond
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provided for in this part or any charge that may have been made against the bond, in the event of a breach of any condition of the bond, upon payment of a lesser amount or penalty or upon such other terms and conditions as may be deemed sufficient.
§ 113.52 Failure to satisfy the bond.
If any Customs bond, except one given only for the production of free- entry or reduced-duty documents (see §§ 113.43(c) of this chapter), is unsatisfied upon the expiration of 90 days after liability has accrued under the bond, the matter shall be reported to the Department of Justice for pros- ecution unless measures have been taken to file an application for relief or protest in accordance with the provi- sions of this chapter or to satisfac- torily settle the matter.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
§ 113.53 Waiver of Customs require- ment supported by a bond.
(a) Waiver by the Commissioner of Cus- toms. When a Customs requirement sup- ported by a bond is waived by the Com- missioner of Customs, the waiver may be:
(1) Unconditional, in which case the importer is relieved from the payment of liquidated damages;
(2) Conditioned upon prior settlement of the bond obligation by payment of liquidated damages; or
(3) Conditioned upon such other terms and conditions as the Commis- sioner may deem sufficient.
(b) Waiver by the port director. When a Customs requirement supported by a bond is waived by the port director pursuant to the authority conferred by these regulations, the waiver shall be unconditional.
§ 113.54 Cancellation of erroneous charges.
(a) Bonds. Section 172.11(b) of this chapter sets forth provisions relating to the cancellation of charges against the bond when it is determined that the act or omission forming the basis for the claim for liquidated damages did not in fact occur.
(b) Carnets. Section 114.34 of this chapter sets forth provisions relating to the cancellation of erroneous charges involving carnets.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
§ 113.55 Cancellation of export bonds.
(a) Manner of cancellation. A bond to assure exportation as defined in § 101.1 of this chapter may be cancelled:
(1) Upon exportation. Upon the listing of the merchandise on the outward manifest or outward bill of lading, the inspector’s certificate of lading, the record of clearance of the vessel or of the departure of the vehicle, and the production of a foreign landing certifi- cate if the certificate is required by the port director.
(2) Upon payment of liquidated dam- ages. Upon the payment of liquidated damages.
(b) Cancellation of bond charges of an international carrier. The conditions of the bond of an international carrier may be considered as having been com- plied with upon the production of the applicable documents listed in para- graph (a)(1) of this section.
(c) Foreign landing certificate. A for- eign landing certificate, when required, shall be produced within six months from the date of exportation and shall be signed by a revenue officer of the foreign country to which the merchan- dise is exported, unless it is shown that the country has no Customs adminis- tration, in which case the certificate may be signed by the consignee or by the vessel’s agent at the place of land- ing. Landing certificates are required in the following cases:
(1) Mandatory. A landing certificate shall be required in every case to estab- lish the exportation of narcotic drugs or any equipment, stores (except such articles as are placed on board vessels or aircraft under the provisions of sec- tion 309 or 317, Tariff Act of 1930, as amended (19 U.S.C. 1309, 1317)), or ma- chinery for vessels.
(2) Optional with the port director. A landing certificate may be required by the port director for merchandise ex- ported from the United States, or res- idue cargo, when a certificate is
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deemed necessary for the protection of the revenue.
(3) Waiver. Except as provided in § 4.88 of this chapter, in cases where landing certificates are required and they can- not be produced, an application for waiver thereof may be made to the Commissioner of Customs through the port director, accompanied by such proof of exportation and landing abroad as may be available.
(d) Articles less than $10. In the case of articles for which the ordinary Cus- toms duty estimated at the time of entry did not exceed $10 and which are exported without Customs supervision, but within the period during which the articles are authorized to remain in the Customs territory of the United States under bond (including any lawful ex- tension), the bond may be cancelled upon production of evidence of expor- tation satisfactory to the port director.
Subpart G—Customs Bond Conditions
§ 113.61 General. Each section in this subpart identi-
fies specific coverage for a particular Customs activity. When an individual or organization files a bond with Cus- toms the activity in which they plan on engaging will be identified on the bond. The bond conditions listed in this subpart which correspond to that ac- tivity will be incorporated by reference into the bond.
§ 113.62 Basic importation and entry bond conditions.
A bond for basic importation and entry shall contain the conditions list- ed in this section and may be either a single entry or a continuous bond.
BASIC IMPORTATION AND ENTRY BOND CONDITIONS
(a) Agreement to Pay Duties, Taxes, and Charges. (1) If merchandise is im- ported and released from Customs cus- tody or withdrawn from a Customs bonded warehouse into the commerce of, or for consumption in, the United States, or under § 181.53 of this chapter is withdrawn from a duty-deferral pro- gram for exportation to Canada or Mexico or for entry into a duty-defer-
ral program in Canada or Mexico, the obligors (principal and surety, jointly and severally) agree to:
(i) Deposit, within the time pre- scribed by law or regulation, any du- ties, taxes, and charges imposed, or es- timated to be due, at the time of re- lease or withdrawal; and
(ii) Pay, as demanded by Customs, all additional duties, taxes, and charges subsequently found due, legally fixed, and imposed on any entry secured by this bond.
(2) If the principal enters any mer- chandise into a Customs bonded ware- house, the obligors agree;
(i) To pay any duties, taxes, and charges found to be due on any of that merchandise which remains in the warehouse at the expiration of the warehousing time limit set by law; and
(ii) That the obligation to pay duties, taxes, and charges on the merchandise applies whether it is properly with- drawn by the principal, or by the prin- cipal’s transferee, or is unlawfully re- moved by the principal or any other person, without regard to whether the merchandise is manipulated, unless payment was made or secured to be made by some other person.
(3) Under this agreement, the obliga- tion to pay any and all duties, taxes, and charges due on any entry ceases on the date the principal timely files with the port director a bond of the owner in which the owner agrees to pay all du- ties, taxes, and charges found due on that entry; provided a declaration of the owner has also been properly filed.
(b) Agreement to Make or Complete Entry. If all or part of imported mer- chandise is released before entry under the provisions of the special delivery permit procedures under 19 U.S.C. 1448(b), released before completion of the entry under 19 U.S.C. 1484(a), or withdrawn from warehouse under 19 U.S.C. 1557(a) (see § 10.62b of this chap- ter), the principal agrees to file within the time and in the manner prescribed by law and regulation, documentation to enable Customs to:
(1) Determine whether the merchan- dise may be released from Customs custody;
(2) Properly assess duties on the mer- chandise;
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(3) Collect accurate statistics with respect to the merchandise; and
(4) Determine whether applicable re- quirements of law and regulation are met.
(c) Agreement to Produce Documents and Evidence. If merchandise is released conditionally to the principal before all required documents or other evi- dence is produced, the principal agrees to furnish Customs with any document or evidence as required by law or regu- lation, and within the time specified by law or regulations.
(d) Agreement to Redeliver Merchan- dise. If merchandise is released condi- tionally from Customs custody to the principal before all required evidence is produced, before its quantity and value are determined, or before its right of admission into the United States is de- termined, the principal agrees to rede- liver timely, on demand by Customs, the merchandise released if it:
(1) Fails to comply with the laws or regulations governing admission into the United States;
(2) Must be examined, inspected, or appraised as required by 19 U.S.C. 1499; or
(3) Must be marked with the country of origin as required by law or regula- tion. It is understood that any demand for redelivery will be made no later than 30 days after the date that the merchan- dise was released or 30 days after the end of the conditional release period (whichever is later). (See §§ 141.113(b), 12.73(b)(2), and 12.80 of this chapter.)
(e) Agreement to Rectify Any Non-Com- pliance with Provisions of Admission. If merchandise is released conditionally to the principal before its right of ad- mission into the United States is deter- mined, the principal, after notification, agrees to mark, clean, fumigate, de- stroy, export or do any other thing to the merchandise in order to comply with the law and regulations governing its admission into the United States within the time period set in the notifi- cation.
(f) Agreement for Examination of Mer- chandise. If the principal obtains per- mission to have any merchandise ex- amined elsewhere than at a wharf or other place in charge of a Customs offi- cer, the principal agrees to:
(1) Hold the merchandise at the place of examination until the merchandise is properly released;
(2) Transfer the merchandise to an- other place on receipt of instructions from Customs made before release; and
(3) Keep any Customs seal or cording on the merchandise intact until the merchandise is examined by Customs.
(g) Reimbursement and Exoneration of the United States. The obligors agree to:
(1) Pay the compensation and ex- penses of any Customs officer, as re- quired by law or regulation; and
(2) Exonerate the United States and its officers from any risk, loss, or ex- pense arising out of principal’s impor- tation, entry, or withdrawal of mer- chandise.
(h) Agreement on Duty-Free Entries or Withdrawals. If the principal enters or withdraws any merchandise, without payment of duty and tax, or at a re- duced rate of duty and tax, as per- mitted under the law, the principal agrees:
(1) To use and handle the merchan- dise in the manner and for the purpose entitling it to duty-free treatment;
(2) If a fishing vessel, to present the original approved application to Cus- toms within 24 hours on each arrival of the vessel in the Customs territory of the United States from a fishing voy- age;
(3) To furnish timely proof to Cus- toms that any merchandise entered or withdrawn under any law permitting duty-free treatment was used in ac- cordance with that law; and
(4) To keep safely all withdrawn bev- erages remaining on board while the vessel is in port, as may be required by Customs.
(i) Agreement to comply with Customs Regulations applicable to Customs secu- rity areas at airports. If access to the Customs security areas at airports is desired, the principal (including its em- ployees, agents, and contractors) agrees to comply with the Customs Regulations in this chapter applicable to Customs security areas at airports. If the principal defaults, the obligors (principal and surety, joint and sever- ally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regulation.
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(j) The principal agrees to comply with all Importer Security Filing re- quirements set forth in part 149 of this chapter including but not limited to providing security filing information to Customs and Border Protection in the manner and in the time period pre- scribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) agree to pay liquidated dam- ages of $5,000 for each violation.
(k) Agreement to comply with electronic entry and/or advance cargo information filing requirements. (1) If the principal is qualified to utilize electronic entry fil- ing as provided for in part 143, of this chapter, the principal agrees to comply with all conditions set forth in part 143 and to send and accept electronic transmissions without the necessity of paper copies.
(2) If the principal elects to provide advance inward air or truck cargo in- formation to Customs and Border Pro- tection (CBP) electronically, the prin- cipal agrees to provide such cargo in- formation to CBP in the manner and in the time period required, respectively, under § 122.48a or 123.92 of this chapter. If the principal defaults with regard to these obligations, the principal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each violation.
(l) Agreement to ensure and establish issuance of softwood lumber export permit and collection of export fees. In the case of a softwood lumber product imported from Canada that is subject to the re- quirement that the Government of Canada issue an export permit pursu- ant to the Softwood Lumber Agree- ment, the principal agrees, as set forth in § 12.140 of this chapter, to assume the obligation to ensure within 10 working days of release of the merchandise, and establish to the satisfaction of CBP, that the applicable export permit has been issued by the Government of Can- ada.
(m) Consequence of default. (1) If the principal defaults on agreements in this condition other than conditions in paragraphs (a), (g), (i), (j), (k)(2), or (l) of this section the obligors agree to pay liquidated damages equal to the value of the merchandise involved in the default, or three times the value of
the merchandise involved in the de- fault if the merchandise is restricted or prohibited merchandise or alcoholic beverages, or such other amount as may be authorized by law or regula- tion.
(2) It is understood and agreed that whether the default involves merchan- dise is determined by Customs and that the amount to be collected under these conditions shall be based upon the quantity and value of the merchandise as determined by Customs. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(3) If the principal defaults on agree- ments in this condition other than con- ditions (a) or (g) and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
(4) If the principal defaults on agree- ments in the condition set forth in paragraph (a)(1)(i) of this section only, the obligors (principal and surety, jointly and severally) agree to pay liq- uidated damages equal to two times the unpaid duties, taxes and charges estimated to be due or $1,000, which- ever is greater. A default on the condi- tion set forth in paragraph (a)(1)(i) of this section shall be presumed if any monetary instrument authorized for the payment of estimated duties, taxes and charges by § 24.1(a) of this chapter is returned unpaid by a financial insti- tution, or if a payment authorized under Automated Clearinghouse (see § 24.25 of this chapter) is not trans- mitted electronically to Customs in a timely manner. If the principal de- faults on agreements in both of the conditions as set forth in paragraphs (a)(1)(i) and (b) of this section, the measure of liquidated damages as- sessed shall be as provided in para- graph (m)(1) of this section for a de- fault of the agreements in the condi- tion set forth in paragraph (b) of this section. For purposes of this para- graph, the phrase ‘‘unpaid duties, taxes and charges’’ shall include any appro- priate ad valorem fees described in § 24.23 of this chapter, fees relating to dutiable mail described in § 24.22(f) of this chapter, and harbor maintenance
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fees described in § 24.24(e)(3) (i) and (ii) of this chapter.
(5) If the principal defaults on agree- ments in the condition set forth in paragraph (l) of this section only, the obligors agree to pay liquidated dam- ages equal to $100 per thousand board feet of the imported lumber.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–46, 53 FR 29230, Aug. 3, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 90–92, 55 FR 49884, Dec. 3, 1990; T.D. 93– 37, 58 FR 30984, May 28, 1993; T.D. 96–14, 61 FR 2911, Jan. 30, 1996; T.D. 96–18, 61 FR 6780, Feb. 22, 1996; T.D. 97–9, 62 FR 8623, Feb. 26, 1997; T.D. 98–56, 63 FR 32945, June 16, 1998; T.D. 00– 87, 65 FR 77815, Dec. 13, 2000; T.D. 01–26, 66 FR 16854, Mar. 28, 2001; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003; CBP Dec. 07–02, 72 FR 4429, Jan. 31, 2007; CBP Dec. 08–10, 73 FR 20785, Apr. 17, 2008; CBP Dec. 08–46, 73 FR 71781, Nov. 25, 2008; CBP Dec. 09–47, 74 FR 69018, Dec. 30, 2009]
§ 113.63 Basic custodial bond condi- tions.
A basic custodial bond shall contain the conditions listed in this section and shall be a continuous bond.
BASIC CUSTODIAL BOND CONDITIONS
(a) Receipt of Merchandise. The prin- cipal agrees:
(1) To operate as a custodian of any bonded merchandise received, includ- ing merchandise collected for transport to his facility, and to comply with all regulations regarding the receipt, car- riage, safekeeping, and disposition of such merchandise;
(2) To accept only merchandise au- thorized under Customs Regulations;
(3) To maintain all records required by regulations relating to merchandise received into bond, and to produce the records upon demand by an authorized Customs officer;
(4) If authorized to use the alter- native transfer procedure set forth in § 144.34(c) of this chapter, to operate as constructive custodian for all merchan- dise transferred under those proce- dures, thereby assuming primary re- sponsibility for the continued proper custody of the merchandise notwith- standing its geographical location;
(5) If authorized to operate a con- tainer station under the Customs Reg- ulations, to report promptly to Cus- toms each arrival of a container and its
merchandise by delivery of the mani- fest and the application for transfer, or by other approved notice.
(b) Carriage and Safekeeping of Mer- chandise. The principal agrees:
(1) If a bonded carrier, to use only au- thorized means of conveyance;
(2) To keep safe any merchandise placed in its custody including, when approved by Customs, repacking and transferring such merchandise when necessary for its safety or preserva- tion;
(3) To comply with Customs Regula- tions relating to the handling of bond- ed merchandise; and
(4) If authorized to use the alter- native transfer procedure set forth in § 144.34(c) of this chapter, to keep safe any merchandise so transferred.
(c) Disposition of Merchandise. The principal agrees:
(1) If a bonded carrier, to report promptly the arrival of merchandise at the destination port by delivering to Customs the manifest or other ap- proved notice;
(2) If a cartage or lighterage business, to deliver promptly and safely to Cus- toms any merchandise placed in the principal’s custody together with any related cartage and lighterage ticket and manifest;
(3) To dispose of merchandise in a manner authorized by Customs Regula- tions; and
(4) To file timely with Customs any report required by Customs Regula- tions.
(5) In the case of Class 9 warehouses, to provide reasonable assurance of ex- portation of merchandise withdrawn under the sales ticket procedure of § 144.37(h) of this chapter.
(d) Agreement to Redeliver Merchandise to Customs. If the principal is des- ignated a bonded carrier, or licensed to operate a cartage or lighterage busi- ness, or authorized to use the alter- native transfer procedure set forth in § 144.34(c) of this chapter, the principal agrees to redeliver timely, on demand by Customs, any merchandise delivered to unauthorized locations or to the consignee without the permission of Customs. It is understood that the de- mand for redelivery shall be made no later than 30 days after Customs dis- covers the improper delivery.
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(e) Compliance with Licensing and Op- erating Requirements. The principal agrees to comply with all Customs laws and regulations relating to principal’s facilities, conveyances, and employees.
(f) Agreement to comply with Customs Regulations applicable to Customs secu- rity areas at airports. If access to Cus- toms security areas at airports is de- sired, the principal (including its em- ployee, agents, and contractors) agrees to comply with the Customs Regula- tions applicable to Customs security areas at airports. If the principal de- faults, the obligors (principal and sur- ety, jointly and severally) agree to pay liquidated damages of $1000 for each de- fault or such other amount as may be authorized by law or regulation.
(g) The principal agrees to comply with all Importer Security Filing re- quirements set forth in part 149 of this chapter including but not limited to providing security filing information to Customs and Border Protection in the manner and in the time period pre- scribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) agree to pay liquidated dam- ages of $5,000 per violation.
(h) Reimbursement and Exoneration of the United States. The principal and sur- ety agree to:
(1) Pay the compensation and ex- penses of any Customs officer as re- quired by law or regulation;
(2) Pay the cost of any locks, seals, and other fastenings required by Cus- toms Regulations for securing mer- chandise placed in the principal’s cus- tody;
(3) Pay for any expenses connected with the suspension or termination of the bonded status of the premises;
(4) Exonerate the United States and its officers from any risk, loss, or ex- pense arising out of the principal’s cus- todial operation; and
(5) Pay any charges found to be due Customs arising out of the principal’s custodial operation.
(i) Consequence of Default. (1) If the principal defaults on conditions (a) through (e) in this agreement, the obli- gors (principal and surety, jointly and severally) agree to pay liquidated dam- ages equal to the value of the merchan- dise involved in the default or three
times the value of the merchandise in- volved in the default if the merchan- dise is restricted or prohibited mer- chandise or alcoholic beverages, or such other amount as may be author- ized by law or regulation.
(2) It is understood and agreed that the amount to be collected under con- ditions (a) through (e) of this agree- ment shall be based upon the quantity and value of the merchandise as deter- mined by Customs. Value as used in these provisions means value as deter- mined under 19 U.S.C. 1401a.
(3) If the principal defaults on condi- tions (a) through (e) in this agreement and the default does not involve mer- chandise, the obligors agree to pay liq- uidated damages of $1,000 for each de- fault or such other amount as may be authorized by law or regulation. It is understood and agreed that whether the default involves merchandise is de- termined by Customs.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984, as amended by T.D. 86–178, 51 FR 34959, Oct. 1, 1986; T.D. 88–46, 53 FR 29230, Aug. 3, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; 54 FR 33672, Aug. 16, 1989; T.D. 92–81, 57 FR 37701, Aug. 20, 1992; T.D. 94–81, 59 FR 51495, Oct. 12, 1994; T.D. 97–19, 62 FR 15840, Apr. 3, 1997; T.D. 01–26, 66 FR 16854, Mar. 28, 2001; CBP Dec. 08–46, 73 FR 71781, Nov. 25, 2008]
§ 113.64 International carrier bond conditions.
A bond for international carriers shall contain the conditions listed in this section and may be either a single entry or continuous bond.
INTERNATIONAL CARRIER BOND CONDITIONS
(a) Agreement to Pay Penalties, Duties, Taxes, and Other Charges. If any vessel, vehicle, or aircraft, or any master, owner, or person in charge of a vessel, vehicle or aircraft, slot charterer, or any non-vessel operating common car- rier as defined in § 4.7(b)(3)(ii) of this chapter or other party as specified in § 122.48a(c)(1)(ii)–(c)(1)(iv) of this chap- ter, incurs a penalty, duty, tax or other charge provided by law or regulation, the obligors (principal and surety, jointly and severally) agree to pay the sum upon demand by Customs and Bor- der Protection (CBP). If the principal
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(carrier) fails to pay passenger proc- essing fees to Customs no later than 31 days after the close of the calendar quarter in which they were collected pursuant to § 24.22(g) of this chapter, the obligors (principal and surety, jointly and severally) agree to pay liq- uidated damages equal to two times the passenger processing fees which have been collected but not timely paid to Customs as prescribed by regulation. If the principal (carrier or operator) fails to pay the fees for processing let- ters, documents, records, shipments, merchandise, or other items on or be- fore the last day of the month that fol- lows the close of the calendar quarter to which the processing fees relate pur- suant to § 24.23(b)(4) of this chapter, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the proc- essing fees not timely paid to CBP as prescribed by regulation.
(b) Agreement on Unlading, Safe- keeping, and Disposition of Merchandise, Supplies, Crew Purchases, Etc. The prin- cipal agrees to comply with all laws and Customs Regulations applicable to unlading, safekeeping, and disposition of merchandise, supplies, crew pur- chases, and other articles on board the vehicle, vessel, or aircraft; and to rede- liver the foregoing to Customs upon de- mand as provided by Customs Regula- tions. If principal defaults, obligors agree to pay liquidated damages equal to the value of the merchandise in- volved in the default or three times the value of the merchandise involved in the default if the merchandise is re- stricted or prohibited merchandise or alcoholic beverages, or such other amount as may be authorized by law or regulation. It is understood and agreed that the amount to be collected under this condition shall be based upon the quantity and value of the merchandise as determined by Customs. Value as used in these provisions means value as determined under 19 U.S.C. 1401a.
(c) Agreement to provide advance cargo information. The incoming carrier agrees to provide advance cargo infor- mation to CBP in the manner and in the time period required under §§ 4.7 and 4.7a of this chapter. If the incom- ing carrier, as principal, defaults with regard to these obligations, the prin-
cipal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each violation, to a maximum of $100,000 per conveyance arrival.
(d) Non-vessel operating common carrier (NVOCC); other party. If a slot charterer, non-vessel operating com- mon carrier (NVOCC) as defined in § 4.7(b)(3)(ii) of this chapter, or other party specified in § 122.48a(c)(1)(ii)– (c)(1)(iv) of this chapter, elects to pro- vide advance cargo information to CBP electronically, the NVOCC or other party, as a principal under this bond, in addition to compliance with the other provisions of this bond, also agrees to provide such cargo informa- tion to CBP in the manner and in the time period required under those re- spective sections. If the NVOCC or other party, as principal, defaults with regard to these obligations, the prin- cipal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each violation, to a maximum of $100,000 per conveyance arrival.
(e) Agreement to comply with Importer Security Filing requirements. If the prin- cipal elects to provide the Importer Se- curity Filing information to Customs and Border Protection (CBP), the prin- cipal agrees to comply with all Im- porter Security Filing requirements set forth in part 149 of this chapter in- cluding but not limited to providing se- curity filing information to CBP in the manner and in the time period pre- scribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) agree to pay liquidated dam- ages of $5,000 for each violation.
(f) Agreement to comply with vessel stow plan requirements. If the principal causes a vessel to arrive within the limits of a port in the United States, the principal agrees to submit a stow plan in the manner and in the time pe- riod required pursuant to part 4.7c of this chapter. If the principal defaults with regard to this obligation, the principal and surety (jointly and sever- ally) agree to pay liquidated damages of $50,000 for each vessel arrival.
(g) Agreement to comply with container status message requirements. If the prin- cipal causes a vessel to arrive within the limits of a port in the United States, the principal agrees to submit
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container status messages in the man- ner and in the time period required pursuant to part 4.7d of this chapter. If the principal defaults with regard to these obligations, the principal and surety (jointly and severally) agree to pay liquidated damages of $5,000 for each violation, to a maximum of $100,000 per vessel arrival.
(h) Agreement to Deliver Export Docu- ments. If the principal’s vessel, vehicle, or aircraft is granted clearance with- out filing a complete outward manifest and all required export documents, the principal agrees to file timely the re- quired manifest and all required export documents. If the principal defaults, the obligors agree to pay liquidated damages of $50 per day for the first 3 days, and $100 per day thereafter, up to $1,000 in total.
(i) Agreement to comply with Customs Regulations applicable to Customs secu- rity areas at airports. If access to Cus- toms security areas at airports is de- sired, the principal (including its em- ployees, agents, and contractors) agrees to comply with the Customs Regulations applicable to Customs se- curity areas at airports. If the prin- cipal defaults, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages of $1000 for each default or such other amount as may be authorized by law or regula- tion.
(j) Exoneration of the United States. The obligors agree to exonerate the United States and its officers from any risk, loss, or expense arising out of entry or clearance of the carrier, or handling of the articles on board.
(k) Unlawful disposition. (1) Principal agrees that it will not allow seized or detained merchandise, marked with warning labels of the fact of seizure or detention, to be placed on board a ves- sel, vehicle, or aircraft for exportation or to be otherwise disposed of without written permission from Customs, and that if it fails to prevent such place- ment or other disposition, it will rede- liver the merchandise to Customs with- in 30 days, upon demand made within 10 days of Customs discovery of the un- lawful placement or other disposition.
(2) Principal agrees that it will act, in regard to merchandise in its posses- sion on the date the redelivery demand
is issued, in accordance with any Cus- toms demand for redelivery made with- in 10 days of Customs discovery that there is reasonable cause to believe that the merchandise was exported in violation of the export control laws.
(3) Obligors agree that if the prin- cipal defaults in either of these obliga- tions, they will pay, as liquidated dam- ages, an amount equal to three times the value of the merchandise which was not redelivered.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 85–123, 50 FR 29954, July 23, 1985; T.D. 87–124, 52 FR 37135, Oct. 5, 1987; T.D. 88–46, 53 FR 29230, Aug. 3, 1988; 53 FR 44186, Nov. 2, 1988; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 93–37, 58 FR 30984, May 28, 1993; T.D. 01–26, 66 FR 16854, Mar. 28, 2001; T.D. 02– 62, 67 FR 66333, Oct. 31, 2002; CBP Dec. 03–32, 68 FR 68169, Dec. 5, 2003; CBP Dec. 07–29, 72 FR 31724, June 8, 2007; CBP Dec. 08–46, 73 FR 71781, Nov. 25, 2008]
§ 113.65 Repayment of erroneous drawback payment bond condi- tions.
A bond for repayment of erroneous drawback shall contain the conditions listed in this section and may be either a single entry or continuous bond.
REPAYMENT OF ERRONEOUS DRAWBACK PAYMENT BOND CONDITIONS
(a) Agreement Under Exporter’s Sum- mary Procedure. If the principal is per- mitted to file drawback claims under the exporter’s summary procedure and the principal’s drawback claims are paid before a final determination that the principal:
(1) Is entitled to the drawback claimed.
(2) Correctly described the exported articles in the claim.
(3) Correctly stated the facts of ex- portation in the claim; the principal and surety, jointly and severally agree to refund, on demand, any money claimed by Customs to have been erro- neously paid as a result of an incorrect statement on the drawback claim, and
(4) The principal agrees to pay any charges due Customs as provided by law or regulation.
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(b) Agreement Under Accelerated Pay- ment of Drawback. If the principal re- ceives an accelerated payment of draw- back based on the principal’s calcula- tion of the drawback claim, the prin- cipal and surety, jointly and severally agree to refund on demand the full amount of any overpayment, as deter- mined on liquidation of the drawback claim.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 86–178, 51 FR 34959, Oct. 1, 1986; T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.66 Control of containers and in- struments of international traffic bond conditions.
A bond for control of containers and instruments of international traffic shall contain the conditions listed in this section and shall be a continuous bond.
CONTROL OF CONTAINERS AND INSTRU- MENTS OF INTERNATIONAL TRAFFIC BOND CONDITIONS
(a) Agreement to Enter Any Diverted Instrument of International Traffic. If the principal brings in and takes out of the Customs territory of the United States an instrument of international traffic without entry and without pay- ment of duty, as provided by the Cus- toms Regulations and section 322(a), Tariff Act of 1930, as amended, the principal agrees to:
(1) Report promptly to Customs when the instrument is diverted to point-to- point local traffic in the Customs terri- tory of the United States or when the instrument is otherwise withdrawn in the Customs territory of the United States from its use as an instrument of international traffic;
(2) Promptly enter the instrument unless exempt from entry; and
(3) Pay any duty due on the instru- ment at the rate in effect and in its condition on the date of diversion or withdrawal.
(b) Agreement to Comply With the Pro- visions of subheading 9801.00.10, or 9803.00.50 Harmonized Tariff Schedule of the United States (HTSUS). If the prin- cipal gets free release of any serially numbered shipping container classifi- able under subheading 9801.00.10 or 9803.00.50, HTSUS, the principal agrees:
(1) Not to advance the value or im- prove its condition abroad or claim (or make a previous claim) drawback on, any container released under sub- heading 9801.00.10, HTSUS;
(2) To pay the initial duty due and otherwise comply with every condition in subheading 9803.00.50, HTSUS, on any container released under that item;
(3) To mark that container in the manner required by Customs;
(4) To keep records which show the current status of that container in service and the disposition of that con- tainer if taken out of service; and
(5) To remove or strike out the mark- ings on that container when it is taken out of service or when the principal transfers ownership of it.
(c) Agreement to comply with applica- tion approved under 19 CFR 10.41b(b). If the principal establishes a program for the cross-border movements of ship- ping devices based upon an application approved as provided in § 10.41b(b) of this chapter (19 CFR 10.41b(b)), the principal agrees:
(1) To timely file complete and accu- rate reports on the shipping devices, and to pay any applicable duty due on the devices and repairs made to such devices, as provided in the approved ap- plication;
(2) To retain complete and accurate records regarding the shipping devices, and to make such records available to Customs for inspection and audit upon reasonable notice, as also required in the approved application; and
(3) To otherwise comply with every other condition of the approved appli- cation.
(d) Consequence of Default. (1) If the principal defaults on agreements in these conditions, the obligors (prin- cipal and surety, jointly and severally) agree to pay liquidated damages equal to the value of the merchandise in- volved in the default or such other amount as may be authorized by law or regulation.
(2) It is understood and agreed that the amount to be collected under these conditions shall be based upon the quantity and value of the merchandise as determined by Customs.
(3) If the principal defaults on the agreements in these conditions and the
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default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be author- ized by law or regulation. It is under- stood and agreed that whether the de- fault involves merchandise is deter- mined by Customs.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 96–20, 61 FR 7990, Mar. 1, 1996]
§ 113.67 Commercial gauger and com- mercial laboratory bond conditions.
COMMERCIAL GAUGER BOND CONDITIONS
(a) Commercial gauger bond conditions. A commercial gauger’s bond shall con- tain the conditions listed in this sec- tion and shall be a continuous bond.
(1) If the principal is a commercial gauger whose reports of gauging or whose samples are accepted for Cus- toms purposes, the principal agrees to:
(i) Gauge or sample merchandise ac- cording to the standards and proce- dures set out in the Customs Regula- tions;
(ii) Abide by the requirements set out in § 151.13(b) of this chapter; and
(iii) Submit properly any required re- port, proof, abstract, or sample to Cus- toms.
(2)(i) If the principal defaults, the ob- ligors (principal and surety) agree to pay liquidated damages equal to the value of the merchandise involved in the default or three times the value of the merchandise involved in the de- fault if the merchandise is restricted or prohibited merchandise or alcoholic beverages or such other amount as may be authorized by law or regulation.
(ii) If the principal defaults on the agreements in these conditions and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be author- ized by law or regulation.
(iii) It is understood and agreed that whether the default involves merchan- dise is determined by Customs, that the amount to be collected under this condition shall be based on the quan- tity and value of the merchandise as determined by Customs and that value
as used in these provisions means value as determined under 19 U.S.C. 1401a.
COMMERCIAL LABORATORY BOND CONDITIONS
(b) Commercial laboratory bond condi- tions. A commercial laboratory’s bond shall contain the conditions listed in this subsection and shall be a contin- uous bond.
(1) If the principal is a commercial laboratory whose laboratory analysis reports are accepted for Customs pur- poses, the principal agrees to:
(i) Conduct laboratory analyses ac- cording to the standards and proce- dures set out in the Customs Regula- tions;
(ii) Abide by the requirements set out in §§ 151.12(c) and 151.14 of this chapter; and
(iii) Submit properly any required re- port, proof, abstract, or sample to Cus- toms.
(2)(i) If the principal defaults, the ob- ligors (principal and surety, jointly and severally) agree to pay liquidated dam- ages equal to the value of the merchan- dise involved in the default or three times the value of the merchandise in- volved in the default if the merchan- dise is restricted or prohibited mer- chandise or alcoholic beverages or such other amount as may be authorized by law or regulation.
(ii) If the principal defaults on the agreements in these conditions and the default does not involve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default or such other amount as may be author- ized by law or regulation.
(iii) It is understood and agreed that whether the default involves merchan- dise is determined by Customs, that the amount to be collected under this condition shall be based on the quan- tity and value of the merchandise as determined by Customs and that value as used in these provisions means value as determined under 19 U.S.C. 1401a.
[T.D. 87–39, 52 FR 9787, Mar. 26, 1987, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 99–67, 64 FR 48534, Sept. 7, 1999; T.D. 01–26, 66 FR 16854, Mar. 28, 2001]
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§ 113.68 Wool and fur products label- ing acts and fiber products identi- fication act bond conditions.
A bond to comply with wool and fur products labeling acts and fiber prod- ucts identification act shall contain the conditions listed in this section and shall be a single entry bond.
WOOL AND FUR PRODUCTS LABELING ACTS AND FIBER PRODUCTS IDENTI- FICATION ACT
(a) If the principal obtains release from Customs custody of any wool or fur product (hereafter ‘‘merchandise’’) that is subject to the provisions of the Wool Products Labeling Act of 1939, the Fur Products Labeling Act, or the Fiber Products Identification Act, the principal guarantees that the merchan- dise complies with every provision of those Acts, as applicable.
(b) If any of the released merchandise does not comply with each applicable provision of the Wool Products Label- ing Act of 1939, the Fur Products La- beling Act, or the Fiber Products Iden- tification Act, the obligors (principal or surety, jointly and severally) agree to pay liquidated damages equal to two times the value of the merchandise in- volved in the default and duty thereon. It is understood and agreed that the amount to be collected under this con- dition shall be based upon the quantity and value of the merchandise as deter- mined by Customs. Value as used in these provisions means value as deter- mined under 19 U.S.C. 1401a.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.69 Production of bills of lading bond conditions.
A bond to produce a bill of lading shall contain the conditions listed in this section and shall be a single entry bond.
PRODUCTION OF BILL OF LADING BOND CONDITIONS
If the principal obtains release of any merchandise before filing a valid bill of lading on that merchandise with Cus- toms, the obligors (principal and sur- ety, jointly and severally) agree to:
(a) Produce timely a valid bill of lad- ing for the merchandise; and
(b) Relieve the United States and its employees from all liability, to indem- nify the United States and its employ- ees against loss, and defend any action brought on a claim for loss based on the release without production of a valid bill of lading.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.70 Bond condition to indemnify United States for detention of copy- righted material.
A bond to indemnify the United States for detention of copyrighted ma- terial shall contain the conditions list- ed in this section and shall be a single entry bond.
BOND CONDITION TO INDEMNIFY UNITED STATES FOR DETENTION OF COPY- RIGHTED MATERIAL
If Customs detains any articles al- leged by the principal to be a piratical copy of material covered by the prin- cipal’s copyright pending a final deter- mination whether the articles are pro- hibited entry under the copyright laws, the obligors (principal and surety, jointly and severally) agree to hold the United States and its employees, and the importer or owner of those articles, jointly and severally, harmless from any material depreciation of those ar- ticles and any loss or damage caused by the detention in the event it is fi- nally determined that the articles are not a piratical copy of the material.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.71 Bond condition to observe neutrality.
A bond to observe neutrality shall contain the conditions listed in this section and shall be a single entry bond.
BOND CONDITION TO OBSERVE NEUTRALITY
(a) If clearance is granted to the prin- cipal’s vessel, which is armed or is built for a war-like purpose, with a cargo of arms and munitions, so that it
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is likely to be used to commit hos- tilities against people or countries with whom the Government of the United States is at peace, the principal guarantees that the vessel will not be used to commit hostilities against any country, state, colony, or people with whom the Government is at peace.
(b) If the principal defaults, the obli- gors (principal and surety, jointly and severally) agree to pay liquidated dam- ages equal to twice the value of the vessel and cargo.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.72 Bond condition to pay court costs (condemned goods).
A bond to pay court costs (con- demned goods) shall contain the condi- tion listed in this section and shall be a single entry bond.
BOND CONDITION TO PAY COURT COSTS (CONDEMNED GOODS)
If any seized goods belonging to prin- cipal are condemned the obligors (prin- cipal and surety, jointly and severally) agree to pay all costs of the condemna- tion proceedings.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88–72, 53 FR 45902, Nov. 15, 1988]
§ 113.73 Foreign trade zone operator bond conditions.
A bond of a foreign trade zone oper- ator shall contain the conditions listed in this section and shall be a contin- uous bond.
FOREIGN TRADE ZONE OPERATOR BOND CONDITIONS
If the principal is authorized to oper- ate a foreign trade zone or subzone:
(a) Receipt, Handling, and Disposition of Merchandise. The principal agrees to comply with:
(1) The law and Customs Regulations relating to the receipt (including mer- chandise received and receipted for transport to his zone), admission, sta- tus, handling, transfer, and removal of merchandise from the foreign trade zone or subzone, and
(2) The Customs Regulations con- cerning the maintenance of inventory
control and recordkeeping systems cov- ering merchandise in the foreign trade zone or subzone. If the principal de- faults and the default involves mer- chandise other than domestic merchan- dise for which no permit for admission is required, the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to the value of the merchandise involved in the default, or three times the value of the merchandise involved in the de- fault if the merchandise is restricted or prohibited merchandise or alcoholic beverages, or such other amount as may be authorized by law or regula- tion. It is understood and agreed that whether the default involves merchan- dise is a determination made by Cus- toms, that the amount to be collected under this condition shall be based upon the quantity and value of the merchandise as determined by Cus- toms, and that value as used in these provisions means value as determined under 19 U.S.C. 1401a. If the principal defaults and the default does not in- volve merchandise, the obligors agree to pay liquidated damages of $1,000 for each default, or such other amount as may be authorized by law or regula- tions.
(b) Agreement to Pay Duties, Taxes, and Charges. The obligors agree to pay any duties, taxes, and charges found to be due on any merchandise, properly admitted to the foreign trade zone or subzone, which is found to be missing from the zone or cannot be accounted for in the zone, it being expressly un- derstood and agreed that the amount of said duties, taxes, and charges shall be determined solely by Customs.
(c) Agreement to comply with Importer Security Filing requirements. The prin- cipal agrees to comply with all Im- porter Security Filing requirements set forth in part 149 of this chapter in- cluding but not limited to providing se- curity filing information to Customs and Border Protection (CBP) in the manner and in the time period pre- scribed by regulation. If the principal defaults with regard to any obligation, the principal and surety (jointly and severally) agree to pay liquidated dam- ages of $5,000 for each violation.
(d) Reimbursement and Exoneration of the United States. The obligors agree to:
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(1) Exonerate the United States and its officers from any risk, loss, or ex- pense arising from the principal’s oper- ation of the foreign trade zone or subzone;
(2) Pay the compensation and ex- penses of any Customs officer, as re- quired by law or regulations.
(e) Payment of Annual Fee. The prin- cipal agrees to pay timely any annual fee or fees as provided in the Customs Regulations. If the principal defaults, the obligors agree to pay liquidated damages equal to the amount of the annual fee due but not paid and an amount equal to one percent of the an- nual fee for each of the first seven days the annual fee is in arrears, two per- cent of the annual fee for each of the succeeding seven days the annual fee is in arrears, and three percent of the an- nual fee for each day thereafter in which the annual fee is in arrears.
[T.D. 84–213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 86–16, 51 FR 5063, Feb. 11, 1986; T.D. 88–72, 53 FR 45902, Nov. 15, 1988; T.D. 94–81, 59 FR 51495, Oct. 12, 1994; T.D. 01– 26, 66 FR 16854, Mar. 28, 2001; CBP Dec. 08–46, 73 FR 71781, Nov. 25, 2008]
§ 113.74 Bond conditions to indemnify a complainant under section 337 of Tariff Act of 1930, as amended.
A bond to indemnify a complainant under section 337 of the Tariff Act of 1930, as amended, must contain the conditions listed in appendix B to this part. The bond must be a single entry bond and must be filed in accordance with the provisions set forth in 19 CFR 12.39(b)(2). For the forfeiture or return of this bond, the provisions of 19 CFR 210.50(d) will apply.
[T.D. 00–87, 65 FR 77815, Dec. 13, 2000]
§ 113.75 Bond conditions for deferral of duty on large yachts imported for sale at United States boat shows.
A bond for the deferral of entry com- pletion and duty deposit pursuant to 19 U.S.C. 1484b for a dutiable large yacht imported for sale at a United States boat show must conform to the terms of appendix C to this part. The bond must be filed in accordance with the provisions set forth in § 4.94a of this chapter.
[68 FR 13626, Mar. 20, 2003]
APPENDIX A TO PART 113—AIRPORT CUSTOMS SECURITY AREA BOND
AIRPORT CUSTOMS SECURITY AREA BOND
llllllllllllllllllllllll
(name of principal) of llllllllllllllllllllll and lllllllllllllllllllll llllllllllllllllllllllll
(name of surety) of llllllllllllllllllllll are held and firmly bound unto the United States of America in the sum of llll dol- lars ($ll), for the payment of which we bind ourselves, our heirs, executors, administra- tors, successors, and assigns, jointly and sev- erally, firmly by these presents.
WITNESS our hands and seals this llllllll day of llllll, 19ll.
WHEREAS, the principal (including the principal’s employees, agents, and contrac- tors) desires access to Customs airports secu- rity areas located at llll Airport during the period of one year beginning on the llllll day of lllllll, 19ll, and ending on the lllllll day of llll, 19ll, both dates inclusive;
Now, Therefore, the Condition of this Obligation is Such That—
The principal agrees to comply with the Customs Regulations applicable to Customs security areas at airports.
If the principal defaults on the condition of this obligation, the principal and surety jointly and severally, agree to pay liquidated damages of $1,000 for each default or such other amount as may be authorized by law or regulation.
Signed, Sealed, and Delivered in the Presence of—
llllllllllllllllllllllll
llllllllllllllllllllllll
Name Address llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
Name Address Principal (SEAL) llllllllllllllllllllllll
llllllllllllllllllllllll
Name Address llllllllllllllllllllllll
llllllllllllllllllllllll
Name
Address
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
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Name Address Surety (SEAL) llllllllllllllllllllllll
llllllllllllllllllllllll
Name Address
[54 FR 10536, Mar. 14, 1989]
APPENDIX B TO PART 113—BOND TO IN- DEMNIFY COMPLAINANT UNDER SEC- TION 337, TARIFF ACT OF 1930, AS AMENDED
This appendix contains the bond to indem- nify a complainant under section 337 of the Tariff Act of 1930, as amended. The provi- sions contained in §§ 12.39(b)(2) and 113.74 of the Customs Regulations (19 CFR Chapter I) and § 210.50(d) of the U.S. International Trade Commission Regulations (19 CFR Chapter II) apply.
BOND TOTO INDEMNIFY COMPLAINANT UNDER SECTION 337, TARIFF ACT OF 1930, AS AMENDED
llllll as principal and llll as sur- ety, are held and bound to llllll, as the complainant in U.S. International Trade Commission case/investigation number llll, of unfair practices or methods of competition in import trade in violation of section 337, Tariff Act of 1930, as amended, in the sum of llll dollars ($llll), for payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, by these conditions.
Pursuant to the provisions of section 337, Tariff Act of 1930, as amended, the principal and surety recognize that the Commission has, according to the conditions described in its order, excluded from, or authorized, entry into the United States of the following mer- chandise llllllllllllllllllll under entry number llllll, dated llllll.
The principal and surety recognize that the Commission has excluded that merchan- dise from entry until its investigation is completed, or until its decision that there is a violation of section 337 becomes final.
The principal and surety recognize that certain merchandise excluded from entry by the Commission was, or may be, offered for entry into the United States while the Com- mission’s prohibition is in effect.
The principal and surety recognize that the principal desires to obtain a release of that merchandise pending a final determina- tion of the merchandise’s admissibility into the United States, as provided under section 337, and, for that purpose, the principal and surety execute this stipulation:
If it is determined, as provided in section 337 of the Tariff Act of 1930, as amended, to
exclude that merchandise from the United States, then, on notification from the port director of Customs, the principal is obli- gated to export or destroy under Customs su- pervision the merchandise released under this stipulation within 30 days from the date of the port director’s notification.
The principal and surety, jointly and sev- erally, agree that if the principal defaults on that obligation, the principal and surety shall pay to the complainant an amount equal to the face value of the bond as may be demanded by him/her under the applicable law and regulations.
Witness our hands and seals this llll day of llllll (month), llll (year). llllllll (seal) Principal llllllll (seal) Surety
[T.D. 00–87, 65 FR 77815, Dec. 13, 2000; 65 FR 80497, Dec. 21, 2000]
APPENDIX C TO PART 113—BOND FOR DE- FERRAL OF DUTY ON LARGE YACHTS IMPORTED FOR SALE AT UNITED STATES BOAT SHOWS
BOND FOR DEFERRAL OF DUTY ON LARGE YACHTS IMPORTED FOR SALE AT UNITED STATES BOAT SHOWS
llll, as principal, and llll, as sur- ety, are held and firmly bound to the UNITED STATES OF AMERICA in the sum of llll dollars ($llll), for the pay- ment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these conditions.
Pursuant to the provisions of 19 U.S.C. 1484b, the principal has imported at the port of llll a dutiable large yacht (exceeding 79 feet in length, used primarily for recre- ation or pleasure, and previously sold by a manufacturer or dealer to a consumer) iden- tified as llll for sale at a boat show in the United States with deferral of entry completion and duty deposit and has exe- cuted this obligation as a condition prece- dent to that deferral.
A failure to inform Customs in writing of an exportation, or to complete the required entry, within the 6-month bond period will give rise to a claim for liquidated damages unless the principal informs Customs of the exportation or completes the entry within the time limits prescribed in 19 CFR 4.94a. If the principal fails to comply with any condi- tion of this obligation, which includes com- pliance with any requirement or condition set forth in 19 U.S.C. 1484b or 19 CFR 4.94a, the principal and surety jointly and sever- ally agree to pay to Customs an amount of liquidated damages equal to twice the amount of duty on the large yacht that
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would otherwise be imposed under sub- heading 8903.91.00 or 8903.92.00 of the Har- monized Tariff Schedule of the United States. For purposes of this paragraph, the term duty includes any duties, taxes, fees and charges imposed by law.
The principal will exonerate and hold harmless the United States and its officers from or on account of any risk, loss, or ex- pense of any kind or description connected with or arising from the failure to store and deliver the large yacht as required, as well as from any loss or damage resulting from fraud or negligence on the part of any offi- cer, agent, or other person employed by the principal.
WITNESS our hands and seals this llll day of llll (month), llll (Year). llllllllllllllllllllllll
(Name) (Address) llllllllllllllllllllllll
lllllllllllllll [SEAL] (Principal)
llllllllllllllllllllllll
lllllllllllllll [SEAL] (Name) (Address)
lllllllllllllll [SEAL] (Surety)
CERTIFICATE AS TO CORPORATE PRINCIPAL
I, lllll, certify that I am the* lllll of the corporation named as prin- cipal in the attached bond; that lllll, who signed the bond on behalf of the prin- cipal, was then lllll of that corpora- tion; that I know his signature, and his sig- nature to the bond is genuine; and that the bond was duly signed, sealed, and attested for and in behalf of the corporation by au- thority to its governing body. lllllllllllllll
(CORPORATE SEAL) (To be used when no power of attorney has been filed with the port director of customs.)
*May be executed by the secretary, assist- ant secretary, or other officer of the corpora- tion.
[68 FR 13626, Mar. 20, 2003]
APPENDIX D TO PART 113—IMPORTER SECURITY FILING BOND
This appendix contains the relevant terms and conditions for Importer Security Filing Bonds.
Importer Security Filing Bond
KNOW ALL MEN BY THESE PRESENTS, that lllllllllll of llllllllllllll, as principal hav- ing Customs and Border Protection (CBP) Identification Number llllll and llllllll, as surety are held and firmly bound unto the United States of America up to the sum of llllll dollars
($llllll) for the payment of which we bind ourselves, our heirs, executors, adminis- trators, successors, and assigns, jointly and severally, firmly by these presents.
Whereas, the named principal (including the named principal’s employees, agents and contractors) agrees to comply with all Im- porter Security Filing requirements set forth in 19 CFR part 149, including but not limited to providing security filing informa- tion to CBP in the manner and in the time period prescribed by regulation.
If the principal defaults on the conditions of this obligation, the principal and surety jointly and severally, agree to pay liquidated damages of $5,000 for each violation, or such other amount as may be authorized by law or regulation upon demand by CBP.
[COMPLETE THIS PARAGRAPH ONLY FOR A SINGLE TRANSACTION BOND]
This single transaction bond secures the single transaction identified by Importer Se- curity Filing transaction number lllllllllll issued by CBP on llllll, 20llllll.
[COMPLETE THIS PARAGRAPH ONLY FOR A CONTINUOUS BOND]
This continuous bond is effective llllll, 20llllll, and remains in force for one year beginning with the effec- tive date and for each succeeding annual pe- riod, or until terminated. This bond con- stitutes a separate bond for each period in the amount listed above for liabilities that accrue in each period. The intention to ter- minate this bond must be conveyed within the period and manner prescribed in the CBP Regulations.
This bond is executed on llllllll, 20llllll.
SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF:
llllllllllllllllllllllll
(Name) (Address)
llllllllllllllllllllllll
(Name) (Address) llllllllllllllllllllllll
(Principal Name) (Seal)
llllllllllllllllllllllll
llllllllllllllllllllllll
(Principal Address)
llllllllllllllllllllllll
(Surety Name) (Seal)
Surety No. llll
llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
(Surety Mailing Address)
Surety Agent Name lllllllllllll
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19 CFR Ch. I (4–1–12 Edition)Pt. 114
Surety Agent ID Number llllllllll
[74 FR 68377, Dec. 24, 2009]
PART 114—CARNETS
Sec. 114.0 Scope.
Subpart A—General Provisions
114.1 Definitions. 114.2 Customs Conventions and Agreements. 114.3 Carnets.
Subpart B—Issuing and Guaranteeing Associations
114.11 Approval. 114.12 Termination of approval.
Subpart C—Processing of Carnets
114.21 Acceptance. 114.22 Coverage of carnets. 114.23 Maximum period. 114.24 Additions. 114.25 Replacement of carnets. 114.26 Discharge, nonacceptance, or can-
cellation of carnets.
Subpart D—Miscellaneous
114.31 Restrictions. 114.32 Samples for taking orders. 114.33 Action against carnet user. 114.34 Cancellation of erroneous charges.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1623, 1624.
SOURCE: T.D. 70–134, 35 FR 9261, June 13, 1970, unless otherwise noted.
§ 114.0 Scope. This part is concerned with the use of
international Customs documents known as carnets. It also contains pro- visions concerning the approval of as- sociations to issue carnets in the United States covering merchandise to be exported and to guarantee carnets issued abroad covering merchandise to be imported. The carnet serves simul- taneously as a Customs entry docu- ment and as a Customs bond.
Subpart A—General Provisions
§ 114.1 Definitions. The following are general definitions
for the purpose of part 114: (a) Commissioner. ‘‘Commissioner’’
means the Commissioner of Customs.
(b) Issuing association. ‘‘Issuing asso- ciation’’ means an association ap- proved by the Commissioner for the issue of carnets in the Customs terri- tory of the United States under a Cus- toms Convention or bilateral Agree- ment to which the United States has acceded.
(c) Guaranteeing association. ‘‘Guar- anteeing association’’ means an asso- ciation approved by the Commissioner to guarantee the payment of obliga- tions under carnets covering merchan- dise entering the Customs territory of the United States under a Customs Convention or bilateral Agreement to which the United States has acceded.
(d) A.T.A. carnet. ‘‘A.T.A. carnet’’ (Admission Temporaire—Temporary Admission) means the document repro- duced as the Annex to the Customs Convention on the A.T.A. Carnet for the Temporary Admission of Goods (TIAS 6631).
(e) [Reserved] (f) TIR carnet. ‘‘TIR carnet’’ (Trans-
port International Routier) means the document reproduced as Annex 1 to the Customs Convention on the Inter- national Transport of Goods under Cover of TIR Carnets.
(g) TECRO/AIT Carnet. ‘‘TECRO/AIT carnet’’ means the document issued pursuant to the Bilateral Agreement between the Taipei Economic and Cul- tural Representative Office (TECRO) and the American Institute in Taiwan (AIT) to cover the temporary admis- sion of goods.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 71–70, 36 FR 4490, Mar. 6, 1971; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 85–180, 50 FR 42517, Oct. 21, 1985; T.D. 98– 10, 63 FR 4168, Jan. 28, 1998]
§ 114.2 Customs Conventions and Agreements.
The regulations in this part relate to carnets provided for in the following Customs Conventions and Agreements:
(a) Customs Convention on the A.T.A. Carnet for the Temporary Ad- mission of Goods (hereinafter referred to as A.T.A. Convention).
(b) [Reserved] (c) Customs Convention on the Inter-
national Transport of Goods Under Cover of TIR Carnets, done at Geneva
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on November 14, 1975, as well as the 1959 TIR Convention, TIAS 6633.
(d) Agreement Between the Taipei Economic and Cultural Representative Office in the United States and the American Institute in Taiwan on TECRO/AIT Carnet for the Temporary Admission of Goods (hereinafter re- ferred to as the Agreement).
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 85–180, 50 FR 42517, Oct. 21, 1985; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.3 Carnets. (a) Use. A carnet issued in conformity
with the provisions of a Convention or Agreement identified in § 114.2 and with the regulations in this part shall serve as an entry document within the scope contemplated by the applicable Con- vention or Agreement and as a bond for the performance of acts in compliance with the provisions of such Convention or Agreement and the Customs stat- utes and regulations which are in- volved. Such carnet shall:
(1) Show the period for which it is valid,
(2) Be fully completed in accordance with the provisions of the Convention or Agreement which provides for its issuance, and
(3) Include an English translation whenever the goods covered by a carnet are described in another language.
(b) Area of validity. Carnets are valid in the customs territory of the United States which includes only the States, the District of Columbia, and Puerto Rico.
[T.D. 71–70, 36 FR 4490, Mar. 6, 1971, as amend- ed by T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
Subpart B—Issuing and Guaranteeing Associations
§ 114.11 Approval. (a) Documents to be furnished. Before
an association may be approved to serve as issuing association or guaran- teeing association in the United States with respect to carnets authorized under a Customs Convention or Agree- ment to which the United States has acceded, such association shall furnish the Commissioner a written under- taking, in a form satisfactory to the
Commissioner, to perform the func- tions and fulfill the obligations speci- fied in the Convention or Agreement under which carnets are to be issued or guaranteed. Evidence of affiliation with an appropriate international orga- nization shall also be required if affili- ation with such an organization is re- quired by the Convention or Agreement under which carnets are to be issued or guaranteed.
(b) Publication of notice of approval. Notice of the approval of an issuing as- sociation or a guaranteeing association with respect to a Customs Convention or Agreement to which the United States has acceded will be published in the FEDERAL REGISTER by the Commis- sioner.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 71–70, 36 FR 4490, Mar. 6, 1971; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.12 Termination of approval.
(a) For cause. The Commissioner may suspend or revoke the approval pre- viously given to any issuing associa- tion or guaranteeing association for failure or refusal to comply with the duties, obligations, or requirements set forth in its written undertaking on which the approval was based; in the applicable Customs Convention; or in the customs regulations; or upon ter- mination of the affiliation with an ap- propriate international organization required by § 114.11(a). Before such sus- pension or revocation, the Commis- sioner shall give the association a rea- sonable opportunity to refute the al- leged failure of compliance.
(b) Withdrawal. To be relieved of fu- ture obligations, an approved guaran- teeing association must notify the Commissioner, in writing, not less than 6 months in advance of a specified ter- mination date that it will not guar- antee the payment of obligations under carnets accepted by district directors of Customs after the specified date. The receipt of such notice by the Com- missioner will in no way affect the re- sponsibility of the guaranteeing asso- ciation for payment of claims on carnets accepted by district directors before the designated termination date.
(c) Notice. Notice of the suspension or revocation of the approval of an issuing
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association or a guaranteeing associa- tion, or of the withdrawal of an ap- proved guaranteeing association, with respect to a Customs Convention to which the United States has acceded will be published in the FEDERAL REG- ISTER by the Commissioner.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 71–70, 36 FR 4490, Mar. 6, 1971]
Subpart C—Processing of Carnets § 114.21 Acceptance.
A carnet executed in accordance with § 114.3 shall be accepted provided that when the carnet is presented an asso- ciation for the guaranteeing of such carnets has been approved in accord- ance with § 114.11 and such approval has not been terminated as provided for in § 114.12.
§ 114.22 Coverage of carnets. (a) A.T.A. carnet. The A.T.A. carnet is
acceptable for goods to be temporarily entered, or temporarily entered and transported, under:
(1) The Customs Convention on the Temporary Importation of Professional Equipment, or
(2) The International Convention to Facilitate the Importation of Commer- cial Samples and Advertising Material, which includes:
(i) Commercial samples, or (ii) Motion picture advertising films
not exceeding 16 mm., consisting essen- tially of photographs (with or without sound track) showing the nature or op- eration of products or equipment whose qualities cannot be adequately dem- onstrated by samples or catalogs. There shall be presented with each carnet covering motion picture adver- tising films a statement showing how each of the following requirements is met. The films must:
(A) Relate to products or equipment offered for sale or for hire by a person established in the territory of another contracting party;
(B) Be of a kind suitable for exhi- bition to the public; and
(C) Be imported in a packet which contains not more than one copy of each film and which does not form part of a larger consignment of films.
(b) [Reserved]
(c) TIR carnet—(1) Use. The TIR carnet may be accepted at any port of entry for the transport of merchandise in road vehicles or in containers, even if the containers, without being loaded on road vehicles, are carried by other means of transport for part of the jour- ney between the customs offices of de- parture and destination. The TIR carnet may also be accepted for the transport of ‘‘heavy or bulky goods’’ as defined in Article 1 of the TIR Conven- tion. The TIR carnet covers the trans- portation of merchandise for customs purposes only. Road vehicles trans- porting merchandise under cover of a TIR carnet must also comply with all other applicable requirements of Fed- eral and State agencies concerned with the regulations of such vehicles and their personnel.
(2) Taken on charge. A TIR carnet is ‘‘taken on charge’’ by Customs when it is accepted as a transportation entry and when the shipment covered there- by is receipted for by the bonded car- rier (see §§ 18.1, 18.2, and 18.10(a) of this chapter). Until the carnet is ‘‘taken on charge,’’ the guaranteeing association shall have no liability to the United States under the carnet.
(d) TECRO/AIT carnet—(1) Use. The TECRO/AIT carnet is acceptable for the following two categories of goods to be temporarily imported, unless im- portation is prohibited under the laws and regulations of the United States:
(i) Professional equipment; and (ii) Commercial samples and adver-
tising material imported for the pur- pose of being shown or demonstrated with a view to soliciting orders.
(2) Issue and use. (i) Issuing associa- tions shall indicate on the cover of the TECRO/AIT carnet the customs terri- tory in which it is valid and the name and address of the guaranteeing asso- ciation.
(ii) The period fixed for re-expor- tation of goods imported under cover of a TECRO/AIT carnet shall not in any case exceed the period of validity of that carnet.
(e) Excess liability. When the total of duties and taxes on any shipment cov- ered by a carnet exceeds the amount for which the guaranteeing association
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is liable, the excess constitutes a charge against the carrier’s bond.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 71–70, 36 FR 4490, Mar. 6, 1971; T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.23 Maximum period. (a) A.T.A. carnet. No A.T.A. carnet
with a period of validity exceeding 1 year from date of issue shall be accept- ed. This period of validity cannot be extended.
(b) TIR carnet. A TIR carnet may be accepted without limitation as to time provided it is initially ‘‘taken on charge by a customs administration (United States or foreign) within the period of validity shown on its front cover.’’
(c) TECRO/AIT carnet. A TECRO/AIT carnet shall not be issued with a period of validity exceeding one year from the date of issue. This period of validity cannot be extended and must be shown on the front cover of the carnet.
[T.D. 71–70, 36 FR 4491, Mar. 6, 1971, as amend- ed by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 85–180, 50 FR 42517, Oct. 21, 1985; T.D. 98– 10, 63 FR 4168, Jan. 28, 1998]
§ 114.24 Additions. When an A.T.A. or TECRO/AIT
carnet has been issued, no extra item shall be added to the list of goods enu- merated on the reverse of the cover of the carnet or on any continuation sheet annexed thereto.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.25 Replacement of carnets. In the case of destruction, loss, or
theft of an A.T.A. or TECRO/AIT carnet while the goods which it covers are in the Customs territory of the United States, the director of the port where such goods were imported may, upon request of the association which issued the carnet abroad, accept a re- placement document, the validity of which expires on the same date as that of the carnet which it replaces, pro- vided the port director determines that the description of merchandise in the replacement document fully cor- responds to the description set forth in
the importation voucher from the carnet to be replaced.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.26 Discharge, nonacceptance, or cancellation of carnets.
(a) Unconditional discharge. An A.T.A. or TECRO/AIT carnet shall be dis- charged unconditionally by the port di- rector when he is satisfied that all merchandise covered thereby is reex- ported or destroyed. A TIR carnet shall be discharged unconditionally when all merchandise covered thereby has been properly entered, placed in general order, or exported under customs su- pervision. In all other cases, any dis- crepancy shall be noted on the appro- priate counterfoil, and action shall be taken in accordance with § 10.39 or § 18.6 of this chapter.
(b) Effect of discharge. When a port di- rector has discharged a carnet uncondi- tionally by completion of the appro- priate counterfoil, no claim may be brought against the guaranteeing asso- ciation for payment under the carnet unless it can be established that the discharge was obtained improperly or fraudulently or, in the case of an A.T.A. or TECRO/AIT carnet, that there has been a breach of the condi- tions of temporary importation.
(c) Nonacceptance or cancellation of TIR carnets. If a TIR carnet presented to Customs is not accepted, it shall be stamped ‘‘Not Taken on Charge’’ (see § 114.22(c)(2)). If merchandise not re- quired to be transported in bond mov- ing under cover of a TIR carnet is not exported, the carnet shall be stamped ‘‘Cancelled.’’
[T.D. 71–70, 36 FR 4491, Mar. 6, 1971, as amend- ed by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
Subpart D—Miscellaneous
§ 114.31 Restrictions.
(a) Mail importations. Carnets shall not be accepted for importations by mail.
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19 CFR Ch. I (4–1–12 Edition)§ 114.32
(b) Temporary importations. Merchan- dise not entitled to temporary impor- tation under bond shall not be im- ported under cover of an A.T.A. or TECRO/AIT carnet.
(c) Transportation in bond. Except as provided in § 18.43 of this chapter, mer- chandise not entitled to transportation in bond shall not be transported under cover of a TIR carnet.
[T.D. 71–70, 36 FR 4491, Mar. 6, 1971, as amend- ed by T.D. 85–180, 50 FR 42517, Oct. 21, 1985; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.32 Samples for taking orders. A.T.A. or TECRO/AIT carnets may be
accepted for unaccompanied samples and samples imported by a natural per- son resident in the Customs territory of the United States, as well as for samples imported by a natural person resident in the territory of another contracting party to the A.T.A. Con- vention or TECRO/AIT Agreement.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.33 Action against carnet user. In the event of fraud, violation, or
abuse of the privileges of a Convention or Agreement, action may be taken against the users of carnets for applica- ble duties and charges or liquidated damages, as the case may be. Penalties to which such persons have thereby rendered themselves liable may also be imposed.
[T.D. 70–134, 35 FR 9261, June 13, 1970, as amended by T.D. 98–10, 63 FR 4168, Jan. 28, 1998]
§ 114.34 Cancellation of erroneous charges.
(a) TIR carnet. When it is determined that liquidated damages assessed or paid for any shortage, irregular deliv- ery, or nondelivery of merchandise cov- ered by a TIR carnet did not in fact ac- crue, the liquidated damages shall be cancelled by the port director and, if paid, refunded, as provided by § 18.8 of this chapter.
(b) A.T.A. or TECRO/AIT carnet. When it is determined that liquidated dam- ages assessed or paid for failure to properly reexport or destroy merchan- dise temporarily imported under cover
of an A.T.A. or TECRO/AIT carnet did not in fact accrue, the liquidated dam- ages shall be cancelled by the port di- rector and, if paid, refunded as pro- vided by § 10.39 of this chapter.
(c) Determination dependent upon a construction of law. When the deter- mination of whether or not the charge was erroneously made depends upon a construction of law, the charge shall not be cancelled without the approval of the Commissioner of Customs, un- less there is in force a ruling by the Commissioner of Customs decisive of the issue.
[T.D. 74–227, 39 FR 32023, Sept. 4, 1974, as amended by T.D. 82–116, 47 FR 27262, June 24, 1982; T.D. 98–10, 63 FR 4168, Jan. 28, 1998; T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
PART 115—CARGO CONTAINER AND ROAD VEHICLE CERTIFI- CATION PURSUANT TO INTER- NATIONAL CUSTOMS CONVEN- TIONS
Subpart A—General
Sec. 115.1 Purpose. 115.2 Application. 115.3 Definitions. 115.4 Conflicting provisions.
Subpart B—Administration
115.6 Designated Certifying Authorities. 115.7 Designation of additional Certifying
Authorities. 115.8 Certifying Authorities responsibil-
ities—road vehicles. 115.9 Certifying Authorities responsibil-
ities—containers. 115.10 Certificate of approval. 115.11 Establishment of fees. 115.12 Records maintained by Certifying Au-
thority. 115.13 Records to be furnished Customs. 115.14 Meeting on program. 115.15 Reports by road vehicle or container
manufacturer. 115.16 Notification of Certifying Authority
by manufacturer. 115.17 Appeal to Commissioner of Customs. 115.18 Decision of Commissioner of Customs
final.
Subpart C—Procedures for Approval of Containers by Design Type
115.25 General. 115.26 Eligibility. 115.27 Where to apply.
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115.28 Application for approval. 115.29 Plan review. 115.30 Technical requirements for con-
tainers by design type. 115.31 Examination, inspection, and testing. 115.32 Approval plates. 115.33 Termination of approval.
Subpart D—Procedures for Approval of Containers After Manufacture
115.37 General. 115.38 Application. 115.39 Eligibility. 115.40 Technical requirements for con-
tainers. 115.41 Certificate of approval for containers
approved after manufacture. 115.42 Approval plates. 115.43 Termination of approval.
Subpart E—Procedures for Approval of Individual Road Vehicles
115.48 General. 115.49 Application. 115.50 Eligibility. 115.51 Technical requirements. 115.52 Approval. 115.53 Certificate of approval. 115.54 Renewal of certificate. 115.55 Termination of approval.
Subpart F—Procedures for Approval of Road Vehicles by Design Type
115.60 General. 115.61 Eligibility. 115.62 Where to apply. 115.63 Application for approval. 115.64 Plan review. 115.65 Technical requirements for road vehi-
cles by design type. 115.66 Examination, inspection, and testing. 115.67 Approval certificate. 115.68 Termination of approval.
AUTHORITY: 5 U.S.C. 301, 19 U.S.C. 66, 1624; E.O. 12445 of October 17, 1983.
SOURCE: T.D. 86–92, 51 FR 16161, May 1, 1986, unless otherwise noted.
Subpart A—General
§ 115.1 Purpose. This chapter establishes procedures
for certifying containers and road vehi- cles in conformance with the Customs Convention on Containers (1956) (TIAS 6634), the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (1959) (TIAS 6633), the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets, No-
vember 14, 1975 (TIAS), and the Cus- toms Convention on Containers, 1972 (TIAS), by applying the procedures and technical conditions set forth in the annexes to these conventions.
§ 115.2 Application.
(a) Certification of containers and road vehicles for international trans- port under Customs seal is voluntary. This chapter does not require certifi- cation of containers and road vehicles.
(b) The Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (TIR Con- vention), January 15, 1959 (20 UST 184, TIAS 6633), requires that the approval of road vehicles be made by competent authorities of the country in which the owner or carrier is a resident or is es- tablished, and that containers should be either similarly approved, or ap- proved by the competent authority of the country where it is first used for transport under Customs seal. The Cus- toms Convention on Containers, May 18, 1956 (20 UST 301, TIAS 6634), re- quires that the approval of containers be made by competent authorities of the country in which the owner is a resident or is established or by those of the country where the container is used for the first time for transport under Customs seal. The TIR Conven- tion, 1975, generally provides that a road vehicle, for which approval at a stage after manufacture is desired, shall be approved by the competent au- thority where the vehicle owner or op- erator is established or located, or where the vehicle is registered. Such approval under the TIR Convention, 1975, or, for containers, the Customs Convention on Containers, 1972, may be accomplished by the competent author- ity of the country in which the owner or operator is able to produce the con- veyance. The 1975 TIR Convention and the Customs Convention on Containers, 1972, also provide that the Certifying Authority of the country of manufac- ture, if that country is a contracting party to the Convention, may approve a series of road vehicles or containers presented for design type approval. The procedures for applying for certifi- cation are contained in §§ 115.28, 115.38, 115.49, and 115.63 of this part.
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19 CFR Ch. I (4–1–12 Edition)§ 115.3
§ 115.3 Definitions. For the purpose of this part: (a) Certifying Authority. ‘‘Certifying
Authority’’ means a nonprofit firm or association, incorporated or estab- lished in the U.S., which the Commis- sioner finds competent to carry out the functions of this part and which he des- ignates to certify containers and road vehicles for international transport under Customs seal.
(b) Commissioner. ‘‘Commissioner’’ means the Commissioner of Customs.
(c) Container. ‘‘Container’’ means an article of transport equipment (lift van, portable tank, or other similar structure).
(1) Fully or partially enclosed to con- stitute a compartment intended for containing goods;
(2) Of a permanent character and strong enough to be suitable for re- peated use;
(3) Specifically designed to facilitate the carriage of goods by one or more modes of transport, without inter- mediate reloading;
(4) Designed for ready handling, par- ticularly its transfer from one mode of transport to another;
(5) Designed to be easily filled and emptied; and
(6) Having an internal volume of 1 cubic meter (35.3 cubic feet) or more.
(d) Manufacturer. ‘‘Manufacturer’’ means an organization or person con- structing containers or road vehicles for certification in accordance with this chapter.
(e) Prototype. ‘‘Prototype’’ means a sample unit of a series of identical con- tainers or road vehicles all built, so far as practical, under the same condi- tions.
(f) Road vehicle. ‘‘Road Vehicle’’, as defined in Chapter 1, Article 1 of the Customs Convention on the Inter- national Transport of Goods Under Cover of TIR Carnets (TIR Conven- tion), November 14, 1975 (TIAS), means not only any power-driven road vehicle but also any trailer or semi-trailer de- signed to be coupled to it.
(g) Customs and TIR/Container Plan. ‘‘Customs and TIR/Container Plan’’ means the designer’s drawing of a vehi- cle (for TIR purposes) or container (for TIR and Container Convention pur- poses) that illustrates each require-
ment in §§ 115.30, 115.40, 115.51, or 15.65, as appropriate to this part.
(h) The definitions in the subject Conventions shall be considered appli- cable to terms not specifically defined above.
§ 115.4 Conflicting provisions.
The provisions of the most recent TIR/Container Convention shall apply in the event of conflict between it and an earlier TIR/Container Convention covered by these regulations.
Subpart B—Administration
§ 115.6 Designated Certifying Authori- ties.
(a) Certifying Authorities for containers and road vehicles. The Commissioner has designated the following Certifying Authorities for containers and road ve- hicles as defined in this part:
(1) The American Bureau of Shipping, ABS Plaza, 16855 Northchase Drive, Houston, Texas 77060–6008;
(2) International Cargo Gear Bureau, Inc., 321 West 44th Street, New York, New York 10036;
(3) The National Cargo Bureau, Inc., 17 Battery Place, Suite 1232, New York, New York 10004–1110.
(b) Certifying Authority for containers. The Commissioner has designated Lloyd’s Register North America, Inc., 1401 Enclave Parkway, Suite 200, Hous- ton, Texas 77077, as a Certifying Au- thority only for containers as defined in this part.
[CBP Dec. 09–27, 74 FR 36926, July 27, 2009]
§ 115.7 Designation of additional Certi- fying Authorities.
(a) The Commissioner may designate as a Certifying Authority any non- profit firm or association that he finds competent to carry out the functions of §§ 115.8 through 115.14 of this subpart.
(b) Any designation as Certifying Au- thority may be terminated by the Com- missioner.
§ 115.8 Certifying Authorities respon- sibilities—road vehicles.
(a) General. Road vehicles may be ap- proved individually or by design type.
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(b) Individual approval. The Certi- fying Authority to whom a road vehi- cle is submitted for approval shall in- spect such road vehicle produced in ac- cordance with the general rules con- tained in Annex 3 of the TIR Conven- tion, 1975.
(c) Design type approval. The Certi- fying Authority to whom a road vehi- cle is submitted for design type ap- proval shall examine the drawings and detailed design specifications sub- mitted with the application for ap- proval. The Certifying Authority shall advise the applicant of any changes that must be made to the proposed de- sign type in order that approval may be granted. The Certifying Authority shall examine one or more vehicles to confirm that such vehicles comply with the technical conditions contained in Annex 2 of the TIR Convention, 1975. The Certifying Authority shall notify the applicant of its decision to grant design type approval, and it shall issue an approval certificate complying with Annexes 3 and 4 of the TIR Convention, 1975.
(d) Supplementary examinations. If a road vehicle approved by design type is the subject of an extended production run under one certificate of approval, the Certifying Authority shall confirm by examination of one or more road ve- hicles during the manufacturing proc- ess, or by other means, that such vehi- cles continue to meet the approved drawings and detailed design specifica- tions and the technical requirements of Annex 2 of the TIR Convention, 1975.
For the purposes of this section, an extended production run shall be con- sidered a continuous run of many units over long periods of time, as well as a new run following the completion of a previous run.
§ 115.9 Certifying Authorities respon- sibilities—containers.
(a) General. Containers may be ap- proved for transport under seal by de- sign type at the manufacturing stage or, otherwise, at a stage subsequent to manufacture.
(b) Design type approval. The Certi- fying Authority to whom a container is submitted for design type approval shall examine the drawings and de- tailed design specifications submitted
with the application for approval. The Certifying Authority shall advise the applicant of any changes that must be made to the proposed design type so that approval may be granted. The Cer- tifying Authority shall examine one or more containers to confirm that such containers comply with the technical requirements of part 1, Annex 7, TIR Convention, 1975, and Annex 4 of the Customs Convention on Containers, 1972. The Certifying Authority shall issue a certificate authorizing the ap- plicant to affix an approval plate, as described in appendix 1 to part II, Annex 7 of the TIR Convention, 1975, and Annex 5 of the Customs Conven- tion on Containers, 1972, for all con- tainers manufactured in conformity with the specifications of the type of container approved. This certificate shall comply with the model certificate in appendix 2, part II, Annex 7 of the TIR Convention, 1975, and appendix 2 of Annex 5 of the Customs Convention on Containers, 1972.
(c) After manufacture. The Certifying Authority to whom containers are sub- mitted for approval after manufacture, shall examine as many containers as necessary to ascertain that they com- ply with the technical conditions pre- scribed in part 1, Annex 7, TIR Conven- tion, 1975, and Annex 5 of the Customs Convention on Containers, 1972. The Certifying Authority shall issue a cer- tificate of approval authorizing the ap- plicant to affix an approval plate to the specific number or series of containers being approved. The certificate shall comply with the model certificate of approval in appendix 3, Part II, Annex 7, TIR Convention, 1975, and appendix 3, Annex 5, Customs Convention on Con- tainers, 1972.
(d) Supplementary examinations. If a container approved by design type is the subject of an extended production run or several production runs under one certificate of approval, the Certi- fying Authority shall confirm by exam- ination of one or more containers dur- ing the manufacturing process, or by other means, that such containers con- tinue to meet the approved drawings and detailed design specifications and the technical requirements of Annex 7 of the TIR Convention, 1975, and Annex
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4 of the Customs Convention on Con- tainers, 1972. For the purposes of this section, an extended production run shall be considered as a continuous run of many units over long periods of time, as well as a new run following completion of a previous run.
§ 115.10 Certificate of approval. A Certifying Authority shall issue a
certificate of approval by design type for a specified number or unlimited se- ries of containers that are approved in accordance with the procedures con- tained in §§ 115.29, 115.31, 115.38, and 115.41, and road vehicles that are ap- proved in accordance with the proce- dures contained in §§ 115.49, 115.52, 115.63, and 115.66 of this part.
(a) Road vehicles. A Certifying Au- thority shall issue a certificate of ap- proval conforming to the model in Annex 4 of the 1975 TIR Convention for vehicles submitted for individual or de- sign type approval, if satisfied that the vehicles comply with the technical conditions prescribed in Annex 2 of the TIR Convention, 1975.
(b) Containers—(1) Approval after man- ufacture. A Certifying Authority shall issue a certificate of approval con- forming to the model in appendix 3, Part II to Annex 7 of the TIR Conven- tion, 1975, and appendix 3 to Annex 5 of the Customs Convention on Containers, 1972, for containers approved at a stage after manufacture, when it has been ascertained that the containers comply with the technical conditions pre- scribed in Annex 7 of the TIR Conven- tion, 1975, and Annex 4 of the Customs Convention on Containers, 1972. The certificate shall be valid for the num- ber of containers approved.
(2) Design type approved. A Certifying Authority shall issue a single certifi- cate of approval conforming to the model in appendix 2, Part II to Annex 7 of the TIR Convention, 1975, and ap- pendix 2 to Annex 5 of the Customs Convention on Containers, 1972, for containers approved by design type when it has been ascertained that the container type complies with the tech- nical conditions prescribed in Annex 7 of the 1975 TIR Convention, and Annex 4 of the Customs Convention on Con- tainers, 1972. The certificate shall be valid for all containers manufactured
in conformity with the specifications of the type approved.
(c) Provisions common to both approval procedures. The certificate of approval issued pursuant to paragraphs (a) and (b) of this section shall be valid for ei- ther the specific number of containers approved, or for an unlimited series of containers of the approved type.
§ 115.11 Establishment of fees.
(a) Each Certifying Authority shall establish and file with the Commis- sioner a schedule of fees for the per- formance of the certification proce- dures under this chapter. The fees shall be based on the costs (including trans- portation expense) actually incurred by the Certifying Authority. The fees are subject to approval by the Commis- sioner before their use by the Certi- fying Authority.
(b) Each Certifying Authority shall make available a schedule of its fees approved by the Commissioner. In addi- tion, the schedules of approved fees for all the Certifying Authorities are available from the Headquarters, U.S. Customs Service, Office of Field Oper- ations, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 115.12 Records maintained by Certi- fying Authority.
(a) Each Certifying Authority shall maintain—
(1) A copy of each individual certifi- cate of approval issued, together with a copy of the plans and the application to which the approval refers, along with any information submitted by the manufacturer and/or owner or operator for the certification of a container or a road vehicle.
(2) A record of each serial number as- signed and affixed by the manufacturer to the road vehicles and containers manufactured under a design type ap- proval, and containers approved at a stage after manufacture.
(b) The Commissioner may examine the Certifying Authority’s files re- quired by paragraph (a) of this section.
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§ 115.13 Records to be furnished Cus- toms.
Each Certifying Authority shall fur- nish the Headquarters, U.S. Customs Service, Office of Field Operations, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229, unless waived by Cus- toms;
(a) A copy of each issued certificate of approval for containers and road ve- hicles and a copy of the plans and ap- plication to which the approval refers;
(b) A copy of each issued individual approval for a container or road vehi- cle.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 115.14 Meeting on program.
If determined necessary by Customs, each Certifying Authority’s representa- tive for certification functions shall meet, after notice, with the Commis- sioner to review their administration of the certification program.
§ 115.15 Reports by road vehicle or container manufacturer.
Each manufacturer shall forward to the appropriate Certifying Authority, quarterly or when otherwise requested by that Authority:
(a) The registration number or other identifying information on road vehi- cles, or serial numbers assigned to con- tainers manufactured under a certifi- cate of approval by design type; and
(b) An attestation that each road ve- hicle or container to which a serial number was assigned was manufac- tured in full compliance with the cer- tificate of approval by design type.
§ 115.16 Notification of Certifying Au- thority by manufacturer.
In order that the Certifying Author- ity can schedule an appropriate inspec- tion, a manufacturer shall give notifi- cation to that Authority before each production run of road vehicles or con- tainers to be built pursuant either to plans approved by the Certifying Au- thority, or revised plans (approved or unapproved).
§ 115.17 Appeal to Commissioner of Customs.
(a) Any manufacturer, carrier, or owner may, within 30 days after he has been notified by a Certifying Authority of an adverse determination, including any review provided, appeal that deter- mination to the Commissioner.
(b) Any determination which is ap- pealed remains in effect pending a deci- sion by the Commissioner.
§ 115.18 Decision of Commissioner of Customs final.
The decision of the Commissioner on any matter appealed to him is final.
Subpart C—Procedures for Ap- proval of Containers by De- sign Type
§ 115.25 General.
The Certifying Authority shall, at the request of a manufacturer, evalu- ate containers for approval by design type during the manufacturing stage.
§ 115.26 Eligibility.
Any manufacturer of containers to be manufactured in a type series from standard design and specifications so that each container has identical char- acteristics, may apply for approval by design type.
§ 115.27 Where to apply.
A manufacturer may apply for ap- proval of a container by design type to a Certifying Authority of the country in which the container is manufactured if such country is a contracting party to the TIR Convention, 1975, or the Customs Convention on Containers, 1972.
§ 115.28 Application for approval.
Each application by a manufacturer or an owner for certification of a con- tainer by design type must include:
(a) Three copies, each no larger than 3 feet by 4 feet, of the customs and TIR/ Container plan;
(b) Customs and TIR/Container plan number;
(c) Three copies of the specifications which include the following informa- tion:
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(1) The name and address of the man- ufacturer and the owner; and
(2) A description of the container in- cluding the—
(i) Type of construction; (ii) Dimensions; (iii) Material of construction; (iv) Coating system used; (v) Identification marks and num-
bers; and (vi) Tare weight; (d) The location and date for inspec-
tion; and (e) A statement signed by the manu-
facturer that: (1) A container of the design type
concerned is available for inspection and approval by the Certifying Author- ity before, during, and after the pro- duction run;
(2) Notification will be given to the Certifying Authority of each change in the design before adoption; and
(3) Each container will be marked with:
(i) The metal plate required in § 115.32;
(ii) The identification number or let- ter of the design type assigned by the manufacturer; and
(iii) The serial number of the con- tainer assigned by the manufacturer.
§ 115.29 Plan review. (a) A manufacturer or owner who
wants containers to be approved by de- sign type must submit the plans and specifications for the container to the Certifying Authority.
(b) The Certifying Authority exam- ining the plans and specifications sub- mitted in accordance with paragraph (a) of this section shall:
(1) Approve the plans and specifica- tions in accordance with the require- ments of § 115.30 and arrange to inspect a container in accordance with § 115.31; or
(2) Advise the applicant of any nec- essary changes to be made for compli- ance with the requirements of § 115.30.
(c) If changes in the design of the container are made during production but after approval of the plans and specifications by the Certifying Au- thority and furnish it with ‘‘as-built’’ drawings of the container so that the plans can be reviewed and one or more containers inspected during the pro-
duction stage to confirm that they con- tinue to comply with the requirements of § 115.30.
§ 115.30 Technical requirements for containers by design type.
The plans and specifications of a con- tainer submitted in accordance with the requirements contained in § 115.29, and the one or more containers in- spected in accordance with the require- ments of § 115.31, must comply with the requirements of Annex 7 of the Cus- toms Convention on the International Transport of Goods Under Cover of TIR Carnets (TIR Convention), November 14, 1975 (TIAS), and Annex 4 of the Cus- toms Convention on Containers (Con- tainer Convention), December 2, 1972. Copies of Annex 7 and Annex 4 may be obtained from the Headquarters, U.S. Customs Service, Office of Field Oper- ations, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 115.31 Examination, inspection, and testing.
(a) Before the issuance of a certifi- cate of approval by design type, the Certifying Authority shall:
(1) Make a physical examination of one or more containers of the produc- tion series concerned;
(2) Assure itself as to the adequacy of the manufacturer’s system to control quality of materials used, manufac- turing methods, and finished con- tainers; and
(3) Require the manufacturer to make available to the Certifying Au- thority records of material, including affidavits furnished by suppliers.
(b) The Certifying Authority shall conduct such examinations, inspec- tions, and tests of the production run containers as it deems necessary.
§ 115.32 Approval plates.
The manufacturer shall affix, in a clearly visible place on or near one of the doors or other main openings of each container manufactured to the ap- proved design, a metal approval plate measuring at least 20 by 10 centimeters (7.8 by 3.9 inches). The following shall
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U.S. Customs and Border Protection, DHS; Treasury § 115.40
be embossed on or stamped into the surface of the approval plate:
(a) ‘‘Approved for transport under Customs seal.’’
(b) ‘‘USA/(number of the certificate of approval)/(last two digits of year of approval).’’ (e.g. ‘‘USA/1600/84’’ means ‘‘United States of America certificate of approval number 1600, issued in 1984).’’ A two digit alpha suffix may be added to the certificate of approval number to identify the Certifying Au- thority, e.g., USA/1600–AB/85, USA/1600– IB/85.
(c) Identification of the type of con- tainer and of the number of the con- tainer in the type series.
(d) The serial number assigned to the container by the manufacturer (manu- facturer’s number).
§ 115.33 Termination of approval. Any container, the essential features
of which are changed, shall no longer be covered by the design type approval. Such a container may be made avail- able to a Certifying Authority for in- spection and individual approval in ac- cordance with subpart D of the part. However, repairs in kind do not con- stitute a change of the essential fea- tures.
Subpart D—Procedures for Ap- proval of Containers After Manufacture
§ 115.37 General. This subpart provides for the ap-
proval and certification of containers after manufacture, and for those al- tered so as to void their design type ap- proval.
§ 115.38 Application. A written request for approval of a
container after manufacture may be made by the owner or operator to a Certifying Authority and must include the following:
(a) Three copies, each no longer than 3 feet by 4 feet, of the Customs and TIR/Container plan;
(b) Customs and TIR/Container plan number;
(c) Three copies of the specifications which include the following informa- tion:
(1) Type of container; (2) Name and business address of ap-
plicant; (3) Identification marks and num-
bers; (4) Tare weight; (5) Nominal overall dimensions in
centimeters; (6) Type of construction and essential
particulars of structure (nature of ma- terials, coating system used, parts which are reinforced, whether bolts are riveted or welded, and similar mat- ters); and
(7) Proposed location and date for in- spection of the container.
§ 115.39 Eligibility.
The owner or operator may submit containers to be approved after the manufacturing stage to:
(a) The Certifying Authority of the country of manufacture if such country is a contracting party to the Conven- tion.
(b) The Certifying Authority of the country where the owner or operator is resident or established, when such Cer- tifying Authority has representatives located in the country of manufacture, which is a noncontracting party to the Convention.
(c) The Certifying Authority of the country where a container is used for the first time for transport of merchan- dise under Customs seal or where it is otherwise physically located.
§ 115.40 Technical requirements for containers.
A container that is submitted for in- spection for approval after manufac- ture, must comply with the require- ments of Annex 7 of the Customs Con- vention on the International Transport of Goods Under Cover of TIR Carnets (TIR Convention), November 14, 1975 (TIAS) and Annex 4 of the Customs Convention on Containers (Container Convention), December 2, 1972. Copies of Annex 7 and Annex 4 may be ob- tained from the Headquarters, U.S. Customs Service, Office of Field Oper- ations, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
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19 CFR Ch. I (4–1–12 Edition)§ 115.41
§ 115.41 Certificate of approval for containers approved after manufac- ture.
The Certifying Authority shall issue an individual certificate of approval for each container that meets the require- ments in § 115.40.
§ 115.42 Approval plates.
(a) The owner or operator applicant shall, upon receipt of a certificate of approval from the Certifying Author- ity, affix an approval plate in the man- ner specified for containers approved by design type (see § 115.32).
(b) Although an entry is not required in the space provided for type identi- fiers on an approval plate for con- tainers approved after manufacture, identification number and letters indi- cating that a series of containers com- ply with the same specifications may be placed in such space. This may be used to assist in the identification of a series of containers in which a common defect may be discovered subsequent to certification. In such case the approval number on the plate shall be altered by an addition to the second or third ele- ment of such number. The specific method of altering the approval num- ber may be established by each Certi- fying Authority, for containers ap- proved by it, and communicated to the U.S. Customs Service.
(c) Two possible methods of accom- plishing this are:
(1) Placing an ‘‘X’’ in front of the nu- meric portion of the middle element of the approval number, e.g., USA/X123– IB/85.
(2) Placing a suffix at the end of the approval number, e.g, USA/123–AB/85– 01.
§ 115.43 Termination of approval.
Approval of a container terminates upon a change in the container by a major repair or alteration of any of the essential features required in § 115.40. Repairs by replacement in kind do not constitute a change of the essential features.
Subpart E—Procedures for Ap- proval of Individual Road Ve- hicles
§ 115.48 General.
This subpart provides for the ap- proval and certification of individual road vehicles that comply with the technical requirements in § 115.51.
§ 115.49 Application.
A written request for approval of an individual road vehicle may be made by the owner, or carrier to a Certifying Authority and must include:
(a) Three copies, each no larger than 3 feet by 4 feet, of the Customs and TIR plan;
(b) Customs and TIR plan number; (c) Three copies of the specifications
which include the following informa- tion:
(1) Type of vehicle; (2) Name and business address of
owner or operator; (3) Name of the manufacturer; (4) Chassis number; (5) Engine number (if applicable); (6) Registration number; (7) Particulars of construction; (8) Any photos or diagrams required
by the Certifying Authority to facili- tate approval; and
(9) A proposed place and date for in- spection of the road vehicle.
§ 115.50 Eligibility.
A road vehicle may be submitted for inspection by its owner or operator to a Certifying Authority of the country in which the owner or operator is a resident or is established, or where the vehicle is registered.
§ 115.51 Technical requirements.
A road vehicle that is submitted for inspection for individual approval must comply with the requirements of Annex 2 of the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (TIR Con- vention), November 14, 1975, (TIAS). Copies of Annex 2 may be obtained from the Headquarters, U.S. Customs Service, Office of Field Operations, 1300
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U.S. Customs and Border Protection, DHS; Treasury § 115.64
Pennsylvania Avenue, NW., Wash- ington, DC 20229.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 115.52 Approval. The Certifying Authority shall issue
a certificate of approval, valid for 2 years, to each road vehicle that com- plies with the applicable requirements in § 115.51.
§ 115.53 Certificate of approval. A certificate of approval must be
kept on the vehicle as evidence of ap- proval.
§ 115.54 Renewal of certificate. A certificate of approval may be re-
newed if the Certifying Authority de- termines by inspection every 2 years that the vehicle continues to comply with the applicable requirements in § 115.51.
§ 115.55 Termination of approval. Approval of a road vehicle termi-
nates: (a) Upon expiration of the certificate
of approval; or (b) Upon a change in the road vehicle
by a major repair or alteration of any of the essential features required in § 115.51. Repairs by replacement in kind do not constitute a change of the es- sential features.
Subpart F—Procedures for Ap- proval of Road Vehicles by Design Type
§ 115.60 General. This subpart provides for the ap-
proval and certification of road vehi- cles manufactured by design type.
§ 115.61 Eligibility. Any manufacturer of road vehicles
which are being manufactured in a type series from a standard design and specifications, so that each road vehi- cle has identical characteristics, may apply for an approval by design type.
§ 115.62 Where to apply. A manufacturer may apply for ap-
proval of a road vehicle by design type
to a Certifying Authority of the coun- try in which the road vehicle is manu- factured, if such country is a con- tracting party to the TIR Convention, 1975.
§ 115.63 Application for approval.
Each application by a manufacturer for certification of a road vehicle by design type must include:
(a) Three copies, each no larger than 3 feet by 4 feet, of the Customs and TIR plan;
(b) Customs and TIR plan number; (c) Three copies of the specifications
which include the following informa- tion:
(1) The name and address of the man- ufacturer and the owner; and
(2) A description of the road vehicle including the:
(i) Particulars of construction; (ii) Dimensions; (iii) Construction materials; and (iv) Marks and numbers, including
chassis, engine, and registration num- bers.
(d) A statement signed by the manu- facturer that:
(1) It will present vehicles of the type concerned to the Certifying Authority which that Authority may wish to ex- amine;
(2) Permit the Certifying Authority to examine further units at any time during or after the production run;
(3) Notify the Certifying Authority of each change in the design or specifica- tions before adoption;
(4) Mark the road vehicles in a visible place with the identification number or letters of the design type and the serial number of the vehicle in the type series manufacturer’s number; and
(5) Keep a record of vehicles manu- factured according to the design type.
§ 115.64 Plan review.
(a) A manufacturer or owner who wants road vehicles to be approved by design type must submit the plans and specifications of the road vehicles to the Certifying Authority.
(b) The Certifying Authority that ex- amines the plans and specifications submitted in accordance with para- graph (a) of this section shall:
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19 CFR Ch. I (4–1–12 Edition)§ 115.65
(1) Approve the plans and specifica- tions in accordance with the require- ments of § 115.65 and arrange to inspect a road vehicle in accordance with § 115.66; or
(2) Advise the applicant of any nec- essary changes to be made for compli- ance with the requirements of § 115.65.
(c) If changes in design of the road vehicle are made during production but after approval of the plans and speci- fications by the Certifying Authority, the manufacturer shall immediately notify the Certifying Authority and furnish it with ‘‘as-built’’ drawings of the road vehicle so that the plans can be reviewed and one or more road vehi- cles inspected during the production stage to confirm that they continue to comply with the requirements of § 115.65.
§ 115.65 Technical requirements for road vehicles by design type.
The plans and specifications of a road vehicle that are submitted in accord- ance with the requirements contained in § 115.64, and the one or more road ve- hicles that are inspected in accordance with the requirements of § 115.66, must comply with the requirements of Annex 2 of the Customs Convention on the International Transport of Goods Under Cover of TIR Carnets (TIR Con- vention), November 14, 1975 (TIAS). Copies of Annex 2 may be obtained from the Headquarters, U.S. Customs Service, Office of Field Operations, 1300 Pennsylvania Avenue, NW., Wash- ington, DC 20229.
[T.D. 86–92, 51 FR 16161, May 1, 1986, as amended by T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 115.66 Examination, inspection, and testing.
(a) Before the issuance of a certifi- cate of approval by design type, the Certifying Authority shall:
(1) Make a physical examination of one or more vehicles of the production series concerned;
(2) Assure itself as to the adequacy of the manufacturer’s system to control quality of materials used, manufac- turing methods, and finished road vehi- cles; and
(3) Require the manufacturer to make available to the Certifying Au-
thority records of materials, including affidavits furnished by suppliers.
(b) The Certifying Authority shall conduct such examinations, inspec- tions, and testing of the production run road vehicles as it deems necessary.
§ 115.67 Approval certificate.
The holder of the approval certificate shall, before using the vehicle for the carriage of goods under the cover of a TIR Carnet, fill in as may be required on the approval certificate:
(a) The registration number given to the vehicle (item No. 1); or
(b) In the case of a vehicle not sub- ject to registration, particulars of his name and business address (item No. 8). (See Annex 4 of the Convention for model of certificate of approval.)
§ 115.68 Termination of approval.
Any road vehicle whose essential fea- tures are changed shall no longer be covered by the design type approval. Such a road vehicle may be made avail- able to a Certifying Authority for in- spection and individual approval in ac- cordance with subpart E of this part. However, repairs in kind do not con- stitute a change of the essential fea- tures.
PART 118—CENTRALIZED EXAMINATION STATIONS
Sec. 118.0 Scope.
Subpart A—General Provisions
118.1 Definition. 118.2 Establishment of a CES. 118.3 Written agreement. 118.4 Responsibilities of a CES operator. 118.5 Procedures for changes to a fee sched-
ule.
Subpart B—Application To Establish a CES
118.11 Contents of application. 118.12 Action on application. 118.13 Notification of selection or nonselec-
tion.
Subpart C—Termination of a CES
118.21 Temporary suspension; permanent revocation of selection and cancellation of agreement to operate a CES.
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U.S. Customs and Border Protection, DHS; Treasury § 118.3
118.22 Notice of immediate suspension or proposed revocation and cancellation ac- tion.
118.23 Appeal to the Assistant Commis- sioner; procedure; status of CES oper- ations.
AUTHORITY: 19 U.S.C. 66, 1499, 1623, 1624; 22 U.S.C. 401; 31 U.S.C. 5317.
SOURCE: T.D. 93–6, 58 FR 5604, Jan. 22, 1993, unless otherwise noted.
§ 118.0 Scope. This part sets forth regulations pro-
viding for the making of agreements between Customs and persons desiring to operate a centralized examination station (CES). It covers the application process, the responsibilities of the per- son or entity selected to be a CES oper- ator, the written agreement to operate a CES facility, the port director’s dis- cretion to immediately suspend a CES operator’s or entity’s selection and the written agreement to operate the CES or to propose the permanent revocation of a CES operator’s or entity’s selec- tion and cancellation of the written agreement for specified conduct, and the appeal procedures to challenge an immediate suspension or proposed rev- ocation and cancellation action. Proce- dures and requirements for the transfer of merchandise to a CES are set forth in part 151 of this chapter.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR 6574, Jan. 29, 1993, as amended by T.D. 96–57, 61 FR 39070, July 26, 1996]
Subpart A—General Provisions § 118.1 Definition.
A centralized examination station (CES) is a privately operated facility, not in the charge of a Customs officer, at which merchandise is made avail- able to Customs officers for physical examination. A CES may be estab- lished in any port or any portion of a port, or any other area under the juris- diction of a port director. To present outbound cargo for inspection at a CES at a port other than the shipment’s designated port of exit, either proof of the shipper’s consent to the inspection must be furnished or a complete set of transportation documents must accom- pany the shipment to evidence that ex- portation of the goods is imminent and that the goods are committed to ex-
port, thereby, making them subject to Customs examination.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amend- ed by T.D. 98–29, 63 FR 16684, Apr. 6, 1998]
§ 118.2 Establishment of a CES.
When a port director makes a pre- liminary determination that a new CES should be established, or when the term of an existing CES is about to ex- pire and the port director believes that the need for a CES still exists, he will announce, by written notice posted at the customhouse and by any other written methods he may consider ap- propriate (such as normal port infor- mation distribution channels, trade bulletins or local newspapers), that ap- plications to operate a CES are being accepted. This notice will include the general criteria together with any local criteria that applicants must meet (see § 118.11 of this part), and will invite the public to submit any rel- evant written comments on whether a new CES should be established or on whether there is still a need for a CES. Applications will be accepted only in response to the port notice and must be received within 60 calendar days from the date of the notice. Public com- ments must be received within 30 cal- endar days from the date of the notice.
§ 118.3 Written agreement.
The applicant tentatively selected to operate a CES must sign a written agreement with CBP before com- mencing operations. Failure to execute a written agreement with CBP in a timely manner will result in the rev- ocation of that applicant’s tentative selection and may result in tentative selection of another applicant or repub- lication of the notice soliciting appli- cations. In addition to the provisions described elsewhere in this part, the agreement will specify the duration of the authority to operate the CES. That duration will be not less than three years nor more than five years. Such agreements cannot be transferred, sold, inherited, or conveyed in any manner. At the expiration of the agreement, an operator wishing to reapply may do so
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19 CFR Ch. I (4–1–12 Edition)§ 118.4
pursuant to this part and his applica- tion will be considered de novo.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amend- ed at CBP Dec. 10–29, 75 FR 52452, Aug. 26, 2010]
§ 118.4 Responsibilities of a CES oper- ator.
By signing the agreement and com- mencing operation of a CES, an oper- ator agrees to:
(a) Maintain the facility designated as the CES in conformity with the se- curity standards as outlined in the ap- proved application;
(b) Provide adequate personnel and equipment to ensure reliable service for the opening, presentation for in- spection, and closing of all types of cargo designated for examination by Customs. Such service must be pro- vided on a ‘‘first come-first served’’ basis;
(c) Assess service fees as outlined in the fee schedule included in the ap- proved application or as changed under § 118.5 of this part and bill users di- rectly for services rendered;
(d) Assume responsibility for any charges or expenses incurred in connec- tion with the operation of the CES;
(e) Maintain, at his own expense, ade- quate liability insurance with respect to the property within his control and with respect to persons having access to the CES;
(f) Keep current the list filed with the port director pursuant to § 118.11(f) of this part. Additions to or deletions from the list must be submitted in writing to the port director within 10 calendar days of the commencement or termination of employement;
(g) Maintain a Customs custodial bond in an amount set by the port di- rector. The CES operator will accept and keep safe all merchandise delivered to the CES for examination. The bond will include liability for transporting merchandise to the CES from within the district boundaries (see definition of ‘‘district’’ at § 112.1); such liability is assumed by the CES operator when he picks up merchandise for transpor- tation to his facility. The operator also agrees to increase the amount of the bond if deemed appropriate by the port director.
(h) Maintain and make available for Customs examination all records con- nected with the operation of the CES in accordance with part 162 of this chapter and retain such records for a period of not less than five years from the date of the transaction or examina- tion conducted pursuant to the agree- ment to operate the CES;
(i) Submit, if requested by Customs, the fingerprints of all employees in- volved in the CES operation;
(j) Provide office space, parking spaces, appropriate sanitary facilities, and potable water to Customs per- sonnel at no charge or a charge of $1 per year; and
(k) Perform in accordance with any other reasonable requirements imposed by the port director.
(l) Provide transportation for mer- chandise to the CES from within the district boundaries (see definition of ‘‘district’’ at § 112.1). This responsi- bility is optional. If the CES operator chooses to provide transportation, he shall receipt for the merchandise when he picks it up and assume liability for the merchandise at that time.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amend- ed by T.D. 94–81, 59 FR 51495, Oct. 12, 1994; T.D. 95–77, 60 FR 50020, Sept. 27, 1995; T.D. 98– 29, 63 FR 16684, Apr. 6, 1998]
§ 118.5 Procedures for changes to a fee schedule.
Whenever a CES operator intends to increase, add to or otherwise change the service fees set forth in the fee schedule referred to in § 118.4(c) of this part, the operator shall provide 90 cal- endar days advance written notice to the port director of such proposed fee schedule change and shall include in the notice a justification for any in- creased or additional fee. Following re- ceipt of this written notice, the port di- rector will advise the public of the pro- posed fee schedule change and invite comments thereon under the public no- tice and comment procedures set forth in § 118.2 of this part. After a review of the proposed fee schedule change and any public comments thereon, and based on the principle of comparability set forth in § 118.11(c) of this part, the port director will decide whether to ap- prove the change, will notify the CES operator in writing of his decision, and
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will notify the public of any approved fee schedule change by the same meth- ods that were used to provide the pub- lic with notice of the proposed change. A CES operator shall remain bound by the existing fee schedule and shall not implement any fee schedule change prior to receipt of written approval of the change from the port director.
Subpart B—Application To Establish a CES
§ 118.11 Contents of application. Each application to operate a CES
shall consist of the following informa- tion, any application not providing all of the specified information will not be considered, and the responses to para- graphs (b), (c), (d), (g) and (h) of this section shall constitute the criteria used to judge the application:
(a) The name and address of the facil- ity to be operated as the CES, the names of all principals or corporate of- ficers, and the name and telephone number of an individual to be con- tacted for further information;
(b) A description of the CES’s acces- sibility within the port or other loca- tion, and a floor plan of the facility ac- tually dedicated to the CES operation showing bay doors, office space, exte- rior features, security features, and staging and work space. Where a sig- nificant capital expenditure would be required in order for an existing facil- ity to meet security or other physical or equipment requirements necessary for the CES operation, the applicant may request in the application time to conform the facility to such require- ments. The agreement referred to in § 118.3 of this part shall not be exe- cuted, in any event, until the facility is conformed to meet the requirements;
(c) A schedule of fees clearly showing what the applicant will charge for each type of service. Subject to any special costs incurred by the applicant such as facility modifications to meet specific cargo handling or storage requirements or to meet Customs security standards, the fees set forth in the schedule shall be comparable to fees charged for simi- lar services in the area to be served by the CES;
(d) A detailed list of equipment show- ing that the applicant can make a di-
verse variety of cargo available for ex- amination in an efficient and timely manner;
(e) A copy of an approved custodial bond on Customs Form 301. If the appli- cant does not possess such a bond, a completed Customs Form 301 must be included with the application for ap- proval as a prerequisite to selection;
(f) A list of all employees involved in the CES operation setting forth their names, dates of birth, and social secu- rity numbers. (Providing social secu- rity numbers is voluntary; however, failure to provide the number may hinder the investigation process.);
(g) Any information showing the ap- plicant’s experience in international cargo operations and knowledge of Cus- toms procedures and regulations; and
(h) Any other information to address any local criteria that the port direc- tor considers essential to the selection process based on port conditions.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR 6574, Jan. 29, 1993, as amended by T.D. 98–29, 63 FR 16684, Apr. 6, 1998]
§ 118.12 Action on application.
Following submission of all applica- tions in accordance with §§ 118.2 and 118.11 of this part, the port director will advise the public of the applica- tions received and invite comments thereon under the public notice and comment procedures set forth in § 118.2; with regard to each application, the notice will set forth the name of the applicant, the address of the facility proposed to be operated as the CES, the proposed fee schedule, the list of equip- ment at the facility, and the number of employees to be involved in the CES operation. The port director, based on a review of all applications under the criteria set forth in § 118.11 and any public comments submitted under § 118.2 or this section, shall determine whether a CES operator should be se- lected and, if a CES operator is to be selected, shall select the applicant that will best meet the examination needs of Customs and facilitate the move- ment of merchandise.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993, as amend- ed by T.D. 99–64, 64 FR 43266, Aug. 10, 1999]
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19 CFR Ch. I (4–1–12 Edition)§ 118.13
§ 118.13 Notification of selection or nonselection.
The applicant selected to operate a CES will be notified in writing by the port director of his tentative selection. The selection shall become final upon execution of the written agreement be- tween Customs and the applicant under § 118.3 of this part, and the port director will advise the public of the final selec- tion and of the date on which the CES will commence operation under the agreement in accordance with the no- tice procedures set forth in § 118.2 of this part. Each applicant not selected to be a CES operator will be so notified in writing and with a statement of the reason of nonselection.
Subpart C—Termination of a CES § 118.21 Temporary suspension; perma-
nent revocation of selection and cancellation of agreement to oper- ate a CES.
The port director may immediately suspend or propose permanent revoca- tion and cancellation of CES oper- ations for cause as provided in this sec- tion.
(a) Immediate suspension. The port di- rector may immediately suspend, for a temporary period of time or until rev- ocation and cancellation proceedings are concluded pursuant to § 118.23, a CES operator’s or entity’s selection and the written agreement to operate the CES if:
(1) The selection and written agree- ment were obtained through fraud or the misstatement of a material fact; or
(2) The CES operator or an officer of a corporation which is a CES operator or a person the port director deter- mines is exercising substantial owner- ship or control over such operator or officer is indicted for, convicted of, or has committed acts, which would con- stitute a felony, or a misdemeanor in- volving theft or a theft-connected crime. In the absence of an indictment or conviction, the port director must have probable cause to believe the pro- scribed acts occurred.
(b) Proposed revocation and cancella- tion. The port director may propose to revoke the selection as operator and cancel the agreement to operate a CES if:
(1) The CES operator refuses or oth- erwise fails to follow any proper order of a Customs officer or any Customs order, rule, or regulation relative to the operation of a CES, or fails to oper- ate in accordance with the terms of his agreement or to comply with any of the provisions of § 118.4 of this part;
(2) The CES operator fails to retain merchandise which has been designated for examination;
(3) The CES operator does not pro- vide secure facilities or properly safe- guard merchandise within the CES;
(4) The CES operator fails to furnish a current list of names, addresses and other information required by § 118.4 of this part; or
(5) The custodial bond required by § 118.4 of this part is determined to be insufficient in amount or lacking suffi- cient sureties, and a satisfactory new bond with good and sufficient sureties is not furnished within a reasonable time.
(6) The CES operator or an officer of a corporation which is a CES operator or a person the port director deter- mines is exercising substantial owner- ship or control over such operator or officer is indicted for, convicted of, or has committed acts, which would con- stitute any of the offenses listed under paragraph (a) of this section. Where ad- verse action is initiated by the port di- rector pursuant to paragraph (a) of this section and continued under this para- graph, the suspension of CES activities remains in effect through the appeal procedures provided under § 118.23.
(c) Circumstance of change in employ- ment not a bar to adverse action. Any change in the employment status of a corporate officer (for example, dis- charge, resignation, demotion, or pro- motion) prior to indictment or convic- tion or after committing any acts which would constitute the culpable behavior described under paragraph (a) of this section, will not preclude appli- cation of this section, but may be taken into account by the port director in exercising discretion to take adverse action. If the person whose employ- ment status changed remains in a sub- stantial ownership, control, or bene- ficial relationship with the CES oper- ator, this factor will also be considered
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in exercising discretion under this sec- tion.
[T.D. 93–6, 58 FR 5604, Jan. 22, 1993; 58 FR 6574, Jan. 29, 1993, as amended by T.D. 96–57, 61 FR 39071, July 26, 1996]
§ 118.22 Notice of immediate suspen- sion or proposed revocation and cancellation action.
Adverse action pursuant to the provi- sions of § 118.21(a) or (b) is initiated when the port director serves written notice on the operator or entity se- lected to operate the CES. The notice shall be in the form of a statement spe- cifically setting forth the grounds for the adverse action and shall inform the operator of the appeal procedures under § 118.23 of this part.
[T.D. 96–57, 61 FR 39071, July 26, 1996]
§ 118.23 Appeal to the Assistant Com- missioner; procedure; status of CES operations.
(a) Appeal to the Assistant Commis- sioner. Appeal of a port director’s deci- sion under § 118.21(a) or (b) must be filed with the Assistant Commissioner, Office of Field Operations, within 10 calendar days of receipt of the written notice of the adverse action. The ap- peal shall be filed in duplicate and shall set forth the CES operator’s or entity’s responses to the grounds speci- fied by the port director in his written notice letter for the adverse action ini- tiated. The Assistant Commissioner, Office of Field Operations, or his des- ignee, shall render a written decision to the CES operator or entity, stating the reasons for the decision, by letter mailed within 30 working days fol- lowing receipt of the appeal, unless the period for decision is extended with due notification to the CES operator or en- tity.
(b) Status of CES operations during ap- peal. During this appeal period, an im- mediate suspension of a CES operator’s or entity’s selection and written agree- ment pursuant to § 118.21(a) of this part shall remain in effect. A proposed rev- ocation of a CES operator’s or entity’s selection and cancellation of the writ- ten agreement pursuant to § 118.21(b)(1) through (5) of this part shall not take effect unless the appeal process under this paragraph has been concluded with a decision adverse to the operator.
(c) Effect of suspension or revocation. Once a suspension or revocation action takes effect, the CES operator must cease CES operations. However, when CES operations are suspended or re- voked and cancelled by Customs, it is the CES operator’s responsibility to ensure that merchandise already at the CES is properly consigned to another location for inspection, as directed by the importer and approved by the port director.
[T.D. 96–57, 61 FR 39071, July 26, 1996]
PART 122—AIR COMMERCE REGULATIONS
Sec. 122.0 Scope
Subpart A—General Definitions and Provisions
122.1 General definitions. 122.2 Other Customs laws and regulations. 122.3 Availability of forms. 122.4 English language required. 122.5 Reproduction of Customs forms.
Subpart B—Classes of Airports
122.11 Designation as international airport. 122.12 Operation of international airports. 122.13 List of international airports. 122.14 Landing rights airport. 122.15 User fee airports.
Subpart C—Private Aircraft
122.21 Application. 122.22 Electronic manifest requirement for
all individuals onboard private aircraft arriving in and departing from the United States; notice of arrival and de- parture information.
122.23 Certain aircraft arriving from areas south of the U.S.
122.24 Landing requirements for certain air- craft arriving from areas south of U.S.
122.25 Exemption from special landing re- quirements.
122.26 Entry and clearance. 122.27 Documents required. 122.28 Private aircraft taken abroad by U.S.
residents. 122.29 Arrival fee and overtime services. 122.30 Other Customs laws and regulations.
Subpart D—Landing Requirements
122.31 Notice of arrival. 122.32 Aircraft required to land. 122.33 Place of first landing. 122.35 Emergency or forced landing.
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19 CFR Ch. I (4–1–12 Edition)Pt. 122
122.36 Responsibility of aircraft com- mander.
122.37 Precleared aircraft. 122.38 Permit and special license to unlade
and lade.
Subpart E—Aircraft Entry and Entry Docu- ments; Electronic Manifest Require- ments for Passengers, Crew Members, and Non-Crew Members Onboard Commercial Aircraft Arriving In, Con- tinuing Within, and Overflying the United States
122.41 Aircraft required to enter. 122.42 Aircraft entry. 122.43 General declaration. 122.44 Crew baggage declaration. 122.45 Crew list. 122.46 Crew purchase list. 122.47 Stores list. 122.48 Air cargo manifest. 122.48a Electronic information for air cargo
required in advance of arrival. 122.49 Correction of air cargo manifest or
air waybill. 122.49a Electronic manifest requirement for
passengers onboard commercial aircraft arriving in the United States.
122.49b Electronic manifest requirement for crew members and non-crew members on- board commercial aircraft arriving in, continuing within, and overflying the United States.
122.49c Master crew member list and master non-crew member list requirement for commercial aircraft arriving in, depart- ing from, continuing within, and over- flying the United States.
122.49d Passenger Name Record (PNR) infor- mation.
122.50 General order merchandise.
Subpart F—International Traffic Permit
122.51 Aircraft of domestic origin registered in the U.S.
122.52 Aircraft of foreign origin registered in the U.S.
122.53 Aircraft of foreign registry chartered or leased to U.S. air carriers.
122.54 Aircraft of foreign registry.
Subpart G—Clearance of Aircraft and Permission To Depart
122.61 Aircraft required to clear. 122.62 Aircraft not otherwise required to
clear. 122.63 Scheduled airlines. 122.64 Other aircraft. 122.65 Failure to depart.
122.66 Clearance or permission to depart de- nied.
Subpart H—Documents Required for Clear- ance and Permission To Depart; Elec- tronic Manifest Requirements for Pas- sengers, Crew Members, and Non- Crew Members Onboard Commercial Aircraft Departing From the United States
122.71 Aircraft departing with no commer- cial export cargo.
122.72 Aircraft departing with commercial export cargo.
122.73 General declaration and air cargo manifest.
122.74 Incomplete (pro forma) manifest. 122.75 Complete manifest. 122.75a Electronic manifest requirement for
passengers onboard commercial aircraft departing from the United States.
122.75b Electronic manifest requirement for crew members and non-crew members on- board commercial aircraft departing from the United States.
122.76 Shipper’s Export Declarations and in- spection certifications.
122.77 Clearance certificate. 122.78 Entry or withdrawal for exportation
or for transportation and exportation. 122.79 Shipments to U.S. possessions. 122.80 Verification of statement.
Subpart I—Procedures for Residue Cargo and Stopover Passengers
122.81 Application. 122.82 Bond requirements. 122.83 Forms required. 122.84 Intermediate airport. 122.85 Final airport. 122.86 Substitution of aircraft. 122.87 Other requirements. 122.88 Aircraft carrying domestic (stopover)
passengers.
Subpart J—Transportation in Bond and Merchandise in Transit
122.91 Application. 122.92 Procedure at port of origin. 122.93 Procedure at destination or expor-
tation airport. 122.94 Certificate of lading for exportation. 122.95 Other provisions.
Subpart K—Accompanied Baggage in Transit
122.101 Entry of accompanied baggage. 122.102 Inspection of baggage in transit.
Subpart L—Transit Air Cargo Manifest (TACM) Procedures
122.111 Application. 122.112 Definitions.
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U.S. Customs and Border Protection, DHS; Treasury § 122.0
122.113 Form for transit air cargo manifest procedures.
122.114 Contents. 122.115 Labeling of cargo. 122.116 Identification of manifest sheets. 122.117 Requirements for transit air cargo
transport. 122.118 Exportation from port of arrival. 122.119 Transportation to another U.S. port. 122.120 Transportation to another port for
exportation.
Subpart M—Aircraft Liquor Kits
122.131 Application. 122.132 Sealing of aircraft liquor kits. 122.133 Stores list required on arrival. 122.134 When airline does not have in-bond
liquor storeroom. 122.135 When airline has in-bond liquor
storeroom. 122.136 Outgoing stores list. 122.137 Certificate of use.
Subpart N—Flights to and From the U.S. Virgin Islands
122.141 Definitions. 122.142 Flights between the U.S. Virgin Is-
lands and a foreign area. 122.143 Flights from the U.S. to the U.S.
Virgin Islands. 122.144 Flights from the U.S. Virgin Islands
to the U.S.
Subpart O—Flights to and From Cuba
122.151 Definitions. 122.152 Application. 122.153 Limitations on airport of entry or
departure. 122.154 Notice of arrival. 122.155 Document to be presented upon ar-
rival. 122.156 Release of passengers. 122.157 Documents required for clearance. 122.158 Other entry and clearance require-
ments.
Subpart P—Public Aircraft [Reserved]
Subpart Q—Penalties
122.161 In general. 122.162 Failure to notify and explain dif-
ferences in air cargo manifest. 122.163 Transit air cargo traveling to U.S.
ports. 122.164 Transportation to another port for
exportation. 122.165 Air cabotage. 122.166 Arrival, departure, discharge, and
documentation. 122.167 Aviation smuggling.
Subpart R—Air Carrier Smuggling Prevention Program
122.171 Description of program. 122.172 Eligibility. 122.173 Application procedures. 122.174 Operational procedures. 122.175 Exemption from penalties. 122.176 Removal from ACSPP.
Subpart S—Access to Customs Security Areas
122.181 Definition of Customs security area. 122.182 Security provisions. 122.183 Denial of access. 122.184 Change of identification; change in
circumstances of employee; additional employer responsibilities.
122.185 Report of loss or theft of Customs access seal.
122.186 Presentation of Customs access seal by other person.
122.187 Revocation or suspension of access. 122.188 Issuance of temporary Customs ac-
cess seal. 122.189 Bond liability.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 58b, 66, 1431, 1433, 1436, 1448, 1459, 1590, 1594, 1623, 1624, 1644, 1644a, 2071 note.
Section 122.22 is also issued under 46 U.S.C. 60105.
Section 122.49a also issued under 8 U.S.C. 1101, 1221, 19 U.S.C. 1431, 49 U.S.C. 44909.
Section 122.49b also issued under 8 U.S.C. 1221, 19 U.S.C. 1431, 49 U.S.C. 114, 44909.
Section 122.49c also issued under 8 U.S.C. 1221, 19 U.S.C. 1431, 49 U.S.C. 114, 44909.
Section 122.49d also issued under 49 U.S.C. 44909(c)(3).
Section 122.75a also issued under 8 U.S.C. 1221, 19 U.S.C. 1431.
Section 122.75b also issued under 8 U.S.C. 1221, 19 U.S.C. 1431, 49 U.S.C. 114.
SOURCE: T.D. 88–12, 53 FR 9292, Mar. 22, 1988, unless otherwise noted.
§ 122.0 Scope.
(a) Applicability. The regulations in this part relate to the entry and clear- ance of aircraft and the transportation of persons and cargo by aircraft, and are applicable to all air commerce.
(b) Authority of Other Agencies. Noth- ing in this part is intended to divest or diminish authority and operational control that are vested in the FAA or any other agency, particularly with re- spect to airspace and aircraft safety.
[CBP Dec. 08-43, 73 FR 68309, Nov. 18, 2008]
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19 CFR Ch. I (4–1–12 Edition)§ 122.1
Subpart A—General Definitions and Provisions
§ 122.1 General definitions. The following definitions apply in
this part, unless otherwise stated: (a) Aircraft. An ‘‘aircraft’’ is any de-
vice now known, or hereafter invented, used or designed for navigation or flight in the air. It does not include hovercraft.
(b) Aircraft commander. An ‘‘aircraft commander’’ is any person serving on an aircraft who is in charge or has command of its operation and naviga- tion.
(c) Agent. An ‘‘agent’’ is any person who is authorized to act for or in place of:
(1) An owner or operator of a sched- uled airline by written authority; or
(2) An owner or operator of a non- scheduled airline, by power of attor- ney. The authority to act shall be in writing and satisfactory to the port director.
(d) Commercial aircraft. A ‘‘commer- cial aircraft’’ is any aircraft trans- porting passengers and/or cargo for some payment or other consideration, including money or services rendered.
(e) International airport. An ‘‘inter- national airport’’ is any airport des- ignated by:
(1) The Secretary of the Treasury or the Commissioner of Customs as a port of entry for aircraft arriving in the U.S. from any place outside thereof and for the merchandise carried on such aircraft;
(2) The Attorney General as a port of entry for aliens arriving on such air- craft; and
(3) The Secretary of Health and Human Services as a place for quar- antine inspection.
(f) Landing rights airport. A ‘‘landing rights airport’’ is any airport, other than an international airport or user fee airport, at which flights from a for- eign area are given permission by Cus- toms to land.
(g) Preclearance. ‘‘Preclearance’’ is the examination and inspection of air travelers and their baggage, at the re- quest of an airline, at foreign places where Customs personnel are stationed for that purpose. Preclearance may be
used only for air travelers and their baggage, not for merchandise.
(h) Private aircraft. A ‘‘private air- craft’’ is any aircraft engaged in a per- sonal or business flight to or from the U.S. which is not:
(1) Carrying passengers and/or cargo for commercial purposes;
(2) Leaving the U.S. carrying neither passengers nor cargo in order to lade passengers and/or cargo in a foreign area for commercial purposes; or
(3) Returning to the U.S. carrying neither passengers nor cargo in ballast after leaving with passengers and/or cargo for commercial purposes;
(i) Public aircraft. A ‘‘public aircraft’’, is any aircraft owned by, or under the complete control and management of the U.S. government or any of its agen- cies, or any aircraft owned by or under the complete control and management of any foreign government which ex- empts public aircraft of the U.S. from arrival, entry and clearance require- ments similar to those provided in sub- part C of this part, but not including any government owned aircraft en- gaged in carrying persons or property for commercial purposes. This defini- tion applies if the aircraft is:
(1) Manned entirely by members of the armed forces or civil service of such government, or by both;
(2) Transporting only property of such government, or passengers trav- eling on official business of such gov- ernment; or
(3) Carrying neither passengers nor cargo.
(j) Residue cargo. ‘‘Residue cargo’’ is any cargo on board an aircraft arriving in the U.S. from a foreign area if the:
(1) Final delivery airport in the U.S. is not the port of arrival; or
(2) Cargo remains on board the air- craft and travels from port to port in the U.S., for final delivery in a foreign area.
(k) Scheduled airline. A ‘‘scheduled airline’’ is any individual, partnership, corporation or association:
(1) Engaged in air transportation under regular schedules to, over, away from, or within the U.S.; and
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(2) Holding a Foreign Air Carrier Per- mit or a Certificate of Public Conven- ience and Necessity, issued by the De- partment of Transportation pursuant to 14 CFR parts 201 and 213.
(l) United States. Except when used in another context, ‘‘U.S.’’ means the ter- ritory of the several States, the Dis- trict of Columbia, and Puerto Rico, in- cluding the territorial waters and over- lying airspace.
(m) User fee airport. A ‘‘user fee air- port’’ is an airport so designated by Customs. Flights from a foreign area may be granted permission to land at a user fee airport rather than at an international airport or a landing rights airport. An informational listing of user fee airports is contained in § 122.15.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 88–16, 53 FR 10371, Mar. 31, 1988; T.D. 92–90, 57 FR 43397, Sept. 21, 1992; T.D. 93–66, 58 FR 44130, Aug. 19, 1993]
§ 122.2 Other Customs laws and regu- lations.
Except as otherwise provided for in this chapter, and insofar as such laws and regulations are applicable, aircraft arriving or having arrived from or de- parting for any foreign port or place, and the persons and merchandise, in- cluding baggage, carried thereon, shall be subject to the laws and regulations applicable to vessels to the extent that such laws and regulations are adminis- tered or enforced by Customs, as pro- vided in 19 U.S.C. 1644 and 1644a.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 98–74, 63 FR 51288, Sept. 25, 1998]
§ 122.3 Availability of forms.
The forms mentioned in this part may be purchased from the director of port of entry. A small quantity of each form is set aside by port directors for free distribution and official use.
§ 122.4 English language required.
A translation in the English lan- guage shall be attached to the original and each copy of any form or document written or printed in a foreign lan- guage.
§ 122.5 Reproduction of Customs forms.
(a) Specifications. Subject to approval by Customs, the forms mentioned in this part may be printed by private parties if the specified size, wording ar- rangement, style and size of type, and quality of paper are used.
(b) Exceptions. Port directors may ac- cept privately printed copies of the General Declaration (Customs Form 7507) and air cargo manifest (Customs Form 7509) which are different from the official forms. The privately printed forms shall include all information re- quired on the official forms. The dif- ferences allowed are:
(1) General Declaration. Customs Form 7507 may be printed in several languages, so long as the form includes an English version. The instructions on the reverse side of the official form may be omitted.
(2) Air cargo manifest. Customs Form 7509 may be changed to allow for addi- tional information used by the airline.
Subpart B—Classes of Airports § 122.11 Designation as international
airport. (a) Procedure. International airports,
as defined in § 122.1(e), will be des- ignated after due investigation to es- tablish that sufficient need exists in any port to justify such designation and to determine the airport best suit- ed for such purpose. In each case, a spe- cific airport will be chosen. Inter- national airports will be publicly owned, unless circumstances require otherwise
(b) Withdrawal of designation. The des- ignation as an international airport may be withdrawn for any of the fol- lowing reasons:
(1) The amount of business clearing through the airport does not justify maintenance of inspection equipment and personnel;
(2) Proper facilities are not provided or maintained by the airport;
(3) The rules and regulations of the Federal Government are not followed; or
(4) Some other location would be more useful.
(c) Providing office space to the Federal Government. Each international airport
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19 CFR Ch. I (4–1–12 Edition)§ 122.12
shall provide, without cost to the Fed- eral Government, proper office and other space for the sole use of Federal officials working at the airport. A suit- able paved loading area shall be sup- plied by each airport at a place conven- ient to the office space. The loading area shall be kept for the use of air- craft entering or clearing through the airport.
§ 122.12 Operation of international air- ports.
(a) Entry, clearance and charges. Inter- national airports are open to all air- craft for entry and clearance at no charge by Customs. However, charges may be assessed by the airport for com- mercial or private use of the airport.
(b) Servicing of aircraft. When an air- craft enters or clears through an inter- national airport, it shall be promptly serviced by airport personnel solely on the basis of order of arrival or readi- ness for departure. Servicing charges imposed by the airport operators shall not be greater than the schedule of charges in effect at the airport in ques- tion.
(c) FAA rules; denial of permission to land—(1) Federal Aviation Administra- tion. International airports must follow and enforce any requirements for air- port operations, including airport rules that are set out by the Federal Avia- tion Administration in 14 CFR part 91.
(2) Customs and Border Protection. CBP, based on security or other risk assessments, may limit the locations where aircraft entering the United States from a foreign port or place may land. Consistent with § 122.32(a) of this Title, CBP has the authority to deny aircraft permission to land in the United States, based upon security or other risk assessments.
(3) Commercial aircraft. Permission to land at an international airport may be denied to a commercial aircraft if ad- vance electronic information for in- coming foreign cargo aboard the air- craft has not been received as provided in § 122.48a except in the case of emer- gency or forced landings.
(4) Private Aircraft. Permission to land at an international airport will be denied if the pilot of a private aircraft arriving from a foreign port or place fails to submit an electronic manifest
and notice of arrival pursuant to § 122.22, except in the case of emergency or forced landings.
(d) Additional requirements. Additional requirements may be put into effect at a particular airport as the needs of the Customs port served by the airport de- mand.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003; CBP Dec. 08-43, 73 FR 68309, Nov. 18, 2008]
§ 122.13 List of international airports. The following is a list of inter-
national airports of entry designated by the Secretary of the Treasury.
Location and Name
Albany, N.Y.—Albany County Airport Baudette, Minn.—Baudette International
Airport Bellingham, Wash.—Bellingham Inter-
national Airport Brownsville, Tex.—Brownsville International
Airport Burlington, Vt.—Burlington International
Airport Calexico, Calif.—Calexico International Air-
port Caribou, Maine—Caribou Municipal Airport Chicago, Ill.—Midway Airport Cleveland, Ohio—Cleveland Hopkins Inter-
national Airport Cut Bank, Mont.—Cut Bank Airport Del Rio, Tex.—Del Rio International Airport Detroit, Mich.—Detroit City Airport Detroit, Mich.—Detroit Metropolitan Wayne
County Airport Douglas, Ariz.—Bisbee-Douglas International
Airport Duluth, Minn.—Duluth International Airport Duluth, Minn.—Sky Harbor Airport El Paso, Tex.—El Paso International Airport Fort Lauderdale, Fla.—Fort Lauderdale-Hol-
lywood International Airport Friday Harbor, Wash.—Friday Harbor Sea-
plane Base Grand Forks, N. Dak.—Grand Forks Inter-
national Airport Great Falls, Mont.—Great Falls Inter-
national Airport Havre, Mont.—Havre City-County Airport Houlton, Maine—Houlton International Air-
port International Falls, Minn.—Falls Inter-
national Airport Juneau, Alaska—Juneau Municipal Airport Juneau, Alaska—Juneau Harbor Seaplane
Base Ketchikan, Alaska—Ketchikan Harbor Sea-
plane Base Key West, Fla.—Key West International Air-
port
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U.S. Customs and Border Protection, DHS; Treasury § 122.14
Laredo, Tex.—Laredo International Airport Massena, N.Y.—Richards Field Maverick, Tex.—Maverick County Airport McAllen, Tex.—Miller International Airport Miami, Fla.—Chalk Seaplane Base Miami, Fla.—Miami International Airport Minot, N.Dak.—Minot International Airport Nogales, Ariz.—Nogales International Air-
port Ogdensburg, N.Y.—Ogdensburg Harbor Ogdensburg, N.Y.—Ogdensburg International
Airport Oroville, Wash.—Dorothy Scott Airport Oroville, Wash.—Dorothy Scott Seaplane
Base Pembina, N.Dak.—Pembina Municipal Air-
port Port Huron, Mich.—St. Clair County Inter-
national Airport Port Townsend, Wash.—Jefferson County
International Airport Ranier, Minn.—Ranier Internatioal Seaplane
Base Rochester, N.Y.—Rochester-Monroe County
Airport Rouses Point, N.Y.—Rouses Point Seaplane
Base San Diego, Calif.—San Diego International
Airport (Lindbergh Field) Sandusky, Ohio—Griffing-Sandusky Airport Sault Ste. Marie, Mich.—Sault Ste. Marie
City-County Airport Seattle, Wash.—King County International
Airport Seattle, Wash.—Lake Union Air Service
(Seaplanes) Tampa, Fla.—Tampa International Airport Tucson, Ariz.—Tucson International Airport Watertown, N.Y.—Watertown New York
International Airport West Palm Beach, Fla.—Palm Beach Inter-
national Airport Williston, N. Dak.—Sloulin Field Inter-
national Airport Wrangell, Alaska—Wrangell Seaplane Base Yuma, Ariz.—Yuma International Airport
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 96–44, 61 FR 25778, May 23, 1996; T.D. 99–40, 64 FR 18566, Apr. 15, 1999]
§ 122.14 Landing rights airport. (a) Permission to land. Permission to
land at a landing rights airport may be given as follows:
(1) Scheduled flight. The scheduled aircraft of a scheduled airline may be allowed to land at a landing rights air- port. Permission is given by the direc- tor of the port, or his representative, at the port nearest to which first land- ing is made.
(i) Additional flights, charters or changes in schedule—Scheduled aircraft. If a new carrier plans to set up a new
flight schedule, or an established car- rier makes changes in its approved schedule, landing rights may be grant- ed by the port director.
(ii) Additional or charter flight. If a carrier or charter operator wants to begin operating or to add flights, appli- cation must be made to the port direc- tor for landing rights. All requests must be made not less than 48 hours be- fore the intended time of arrival, ex- cept in emergencies. If the request is oral, it must be put in writing before or at the time of arrival.
(2) Private aircraft. The pilots of pri- vate aircraft are required to secure per- mission to land from CBP following transmission of the advance notice of arrival via an electronic data inter- change system approved by CBP, pur- suant to § 122.22. Prior to departure as defined in § 122.22(a), from a foreign port or place, the pilot of a private air- craft must receive a message from CBP that landing rights have been granted for that aircraft at a particular air- port.
(3) Other aircraft. Following advance notice of arrival pursuant to § 122.31, all other aircraft may be allowed to land at a landing rights airport by the direc- tor of the port of entry or station near- est the first place of landing.
(4) Denial or withdrawal of landing rights. Permission to land at a landing rights airport may be denied or perma- nently or temporarily withdrawn for any of the following reasons:
(i) Appropriate and/or sufficient Fed- eral Government personnel are not available;
(ii) Proper inspectional facilities or equipment are not available at, or maintained by, the requested airport;
(iii) The entity requesting the land- ing rights has a history of failing to abide by appropriate instructions given by a CBP officer;
(iv) Reasonable grounds exist to be- lieve that applicable Federal rules and regulations pertaining to safety, in- cluding cargo safety and security, CBP, or other inspectional activities may not be adhered to; or
(v) CBP has deemed it necessary to deny landing rights to an aircraft.
(5) Appeal of denial or withdrawal of landing rights for commercial scheduled aircraft as defined in section 122.1(d). In
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19 CFR Ch. I (4–1–12 Edition)§ 122.15
the event landing rights are denied or subsequently permanently withdrawn by CBP, within 30 days of such deci- sion, the affected party may file a writ- ten appeal with the Assistant Commis- sioner, Office of Field Operations, Headquarters.
(6) Emergency or forced landing. Per- mission to land is not required for an emergency or forced landing (covered under § 122.35).
(b) Payment of expenses. In the case of an arrival at a location outside the limits of a port of entry, the owner, op- erator or person in charge of the air- craft must pay any added charges for inspecting the aircraft, passengers, em- ployees and merchandise when landing rights are given (see §§ 24.17 and 24.22(e) of this chapter).
(c) Payment of expenses. In the case of an arrival at a location outside the limits of a port of entry, the owner, op- erator or person in charge of the air- craft shall pay any added charges for inspecting the aircraft, passengers, em- ployees and merchandise when landing rights are given (see § § 24.17 and 24.22(e) of this chapter).
(d) Denial or withdrawal of landing rights. Permission to land at a landing rights airport may be denied or with- drawn for any of the following reasons:
(1) Appropriate and/or sufficient Fed- eral Government personnel are not available;
(2) Proper inspectional facilities or equipment are not available at, or maintained by, the requested airport;
(3) The entity requesting services has failed to abide by appropriate instruc- tions of a Customs officer;
(4) Advance cargo information has not been received as provided in § 122.48a;
(5) Other reasonable grounds exist to believe that Federal rules and regula- tions pertaining to safety, including cargo safety and security, and Cus- toms, or other inspectional activities have not been followed; or
(6) The granting of the requested landing rights would not be in the best interests of the Government.
(e) Appeal of denial or withdrawal. In the event landing rights are denied or withdrawn by the port director, a writ- ten appeal of the decision may be made
to the Assistant Commissioner, Office of Field Operations, Headquarters.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988. Redesig- nated and amended by T.D. 92–90, 57 FR 43397, Sept. 21, 1992; T.D. 95–77, 60 FR 50020, Sept. 27, 1995; T.D. 99–27, 64 FR 13675, Mar. 22, 1999; CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003; CBP Dec. 08-43, 73 FR 68309, Nov. 18, 2008]
§ 122.15 User fee airports. (a) Permission to land. The procedures
for obtaining permission to land at a user fee airport are the same proce- dures as those set forth in § 122.14 for landing rights airports.
(b) List of user fee airports. The fol- lowing is a list of user fee airports des- ignated by the Commissioner of Cus- toms in accordance with 19 U.S.C. 58b. The list is subject to change without notice. Information concerning service at any user fee airport can be obtained by calling the airport or its authority directly.
Location Name
Addison, Texas ...... Addison Airport. Ardmore, Oklahoma Ardmore Industrial Airpark. Bakersfield, Cali-
fornia. Meadows Field Airport.
Bedford, Massachu- setts.
L.G. Hanscom Field.
Broomfield, Colo- rado.
Jefferson County Airport.
Carlsbad, California McClellan-Palomar Airport. Dallas, Texas ......... Dallas Love Field Municipal Airport Daytona Beach,
Florida. Daytona Beach International Airport.
Decatur, Illinois ...... Decatur Airport. Egg Harbor Town-
ship, New Jersey. Atlantic City International Airport.
Englewood, Colo- rado.
Centennial Airport.
Fort Worth, Texas .. Fort Worth Alliance Airport. Fresno, California ... Fresno Yosemite International Airport. Gypsum, Colorado Eagle County Regional Airport. Harlingen, Texas .... Valley International Airport. Hillsboro, Oregon ... Hillsboro Airport. Johnson City, New
York. Binghamton Regional Airport.
Lansing, Michigan .. Capital Region International Airport. Leesburg, Florida ... Leesburg Regional Airport. Lexington, Kentucky Blue Grass Airport. Manchester, New
Hampshire. Manchester Airport.
Mascoutah, Illinois MidAmerica St. Louis Airport. McKinney, Texas ... Collin County Regional Airport. Melbourne, Florida Melbourne Airport. Mesa, Arizona ........ Williams Gateway Airport. Midland, Texas ....... Midland International Airport. Morristown, New
Jersey. Morristown Municipal Airport.
Moses Lake, Wash- ington.
Grant County International Airport.
Myrtle Beach, South Carolina.
Myrtle Beach International Airport.
Naples, Florida ....... Naples Municipal Airport. Orlando, Florida ..... Orlando Executive Airport.
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U.S. Customs and Border Protection, DHS; Treasury § 122.22
Location Name
Palm Springs, Cali- fornia.
Palm Springs International Airport.
Rochester, Min- nesota.
Rochester International Airport.
Rogers, Arkansas .. Rogers Municipal Airport. St. Augustine, Flor-
ida. St. Augustine Airport.
San Bernardino, California.
San Bernardino International Airport.
San Antonio, Texas Kelly Field Annex. Sarasota, Florida .... Sarasota/Bradenton International Air-
port. Scottsdale, Arizona Scottsdale Airport. Sugar Land, Texas Sugar Land Regional Airport. Trenton, New Jer-
sey. Trenton Mercer Airport.
Victorville, California Southern California Logistics Airport. Waterford, Michigan Oakland County International Airport. Waukegan, Illinois .. Waukegan Regional Airport. West Chicago, Illi-
nois. Dupage County Airport.
Wheeling, Illinois .... Chicago Executive Airport. Yoder, Indiana ........ Fort Wayne International Airport. Ypsilanti, Michigan Willow Run Airport.
(c) Withdrawal of designation. The des- ignation as a user fee airport shall be withdrawn under either of the fol- lowing circumstances:
(1) If either Customs or the airport authority gives 120 days written notice of termination to the other party; or
(2) If any amounts due to be paid to Customs are not paid on a timely basis.
[T.D. 92–90, 57 FR 43397]
EDITORIAL NOTE: For FEDERAL REGISTER ci- tations affecting § 122.15, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.
Subpart C—Private Aircraft
§ 122.21 Application. This subpart applies to all private
aircraft as defined in § 122.1(h). No other provisions of this part apply to private aircraft, except where stated in this subpart.
§ 122.22 Electronic manifest require- ment for all individuals onboard private aircraft arriving in and de- parting from the United States; no- tice of arrival and departure infor- mation.
(a) Definitions. For purposes of this section:
Departure. ‘‘Departure’’ means the point at which the aircraft is airborne and the aircraft is en route directly to its destination.
Departure Information. ‘‘Departure In- formation’’ refers to the data elements that are required to be electronically submitted to CBP pursuant to para- graph (c)(4) of this section.
Pilot. ‘‘Pilot’’ means the individual(s) responsible for operation of an aircraft while in flight.
Travel Document. ‘‘Travel Document’’ means U.S. Department of Homeland Security approved travel documents.
United States. ‘‘United States’’ means the continental United States, Alaska, Hawaii, Puerto Rico, the Virgin Islands of the United States, Guam and the Commonwealth of the Northern Mar- iana Islands.
(b) Electronic manifest requirement for all individuals onboard private aircraft arriving in the U.S.; notice of arrival—(1) General requirement. The private air- craft pilot is responsible for ensuring the notice of arrival and manifest in- formation regarding each individual onboard the aircraft are transmitted to CBP. The pilot is responsible for the submission, accuracy, correctness, timeliness, and completeness of the submitted information, but may au- thorize another party to submit the in- formation on their behalf. Except as provided in paragraph (b)(7) of this sec- tion, all data must be transmitted to CBP by means of an electronic data interchange system approved by CBP and must set forth the information specified in this section. All data per- taining to the notice of arrival for the aircraft and the manifest data regard- ing each individual onboard the air- craft must be transmitted at the same time via an electronic data inter- change system approved by CBP.
(2) Time for submission. The private aircraft pilot is responsible for ensur- ing that the information specified in paragraphs (b)(3) and (b)(4) of this sec- tion is transmitted to CBP:
(i) For flights originally destined for the United States, any time prior to departure of the aircraft, but no later than 60 minutes prior to departure of the aircraft from the foreign port or place; or
(ii) For flights not originally des- tined to the United States, but di- verted to a U.S. port due to an emer- gency, no later than 30 minutes prior to arrival; in cases of non-compliance,
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19 CFR Ch. I (4–1–12 Edition)§ 122.22
CBP will take into consideration that the carrier was not equipped to make the transmission and the cir- cumstances of the emergency situa- tion.
(3) Manifest data required. For private aircraft arriving in the United States the following identifying information for each individual onboard the aircraft must be submitted:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F=female; M=male); (iv) Citizenship; (v) Country of residence; (vi) Status on board the aircraft; (vii) DHS-Approved travel document
type (e.g. passport; alien registration card, etc.);
(viii) DHS-Approved travel document number, if a DHS-approved travel docu- ment is required;
(ix) DHS-Approved travel document country of issuance; if a DHS-approved travel document is required;
(x) DHS-Approved travel document expiration date, where applicable;
(xi) Alien registration number, where applicable;
(xii) Address while in the United States (number and street, city, state, and zip code). This information is re- quired for all travelers including crew onboard the aircraft.
(4) Notice of arrival. The advance no- tice of arrival must include the fol- lowing information about the aircraft and where applicable, the pilot:
(i) Aircraft tail number; (ii) Type of Aircraft; (iii) Call sign (if available); (iv) CBP issued decal number (if
available); (v) Place of last departure (ICAO air-
port code, when available); (vi) Date of aircraft arrival; (vii) Estimated time of arrival; (viii) Estimated time and location of
crossing U.S. border/coastline; (ix) Name of intended U.S. airport of
first landing (as listed in § 122.24 if ap- plicable, unless an exemption has been granted under § 122.25, or the aircraft was inspected by CBP Officers in the U.S. Virgin Islands);
(x) Owner/Lessees name (if indi- vidual: Last, first, and, if available,
middle; or business entity name, if ap- plicable);
(xi) Owner/Lessees address (number and street, city, state, zip/postal code, country, telephone number, fax num- ber, and email address);
(xii) Pilot/Private aircraft pilot name (last, first, middle, if available);
(xiii) Pilot license number; (xiv) Pilot street address (number
and street, city, state, zip/postal code, country, telephone number, fax num- ber, and email address);
(xv) Country of issuance of pilot’s li- cense;
(xvi) Operator name (for individuals: last, first, and if available, middle; or business entity name, if applicable);
(xvii) Operator street address (num- ber and street, city, state, zip code, country, telephone number, fax num- ber, and e-mail address);
(xviii) Aircraft color(s); (xix) Complete Itinerary (foreign air-
ports landed at within past 24 hours prior to landing in United States); and
(xx) 24-hour Emergency point of con- tact (e.g., broker, dispatcher, repair shop, or other third party contact or individual who is knowledgeable about this particular flight) name (first, last, middle, if available) and phone number.
(5) Reliable facilities. When reliable means for giving notice are not avail- able (for example, when departure is from a remote place) a landing must be made at a foreign place where notice can be sent prior to coming into the United States.
(6) Permission to land. Prior to depar- ture from the foreign port or place, the pilot of a private aircraft must receive a message from DHS approving landing within the United States, and follow any instructions contained therein prior to departure. Once DHS has ap- proved departure, and the pilot has ex- ecuted all instructions issued by DHS, the aircraft is free to depart with the intent of landing at the designated U.S. port of entry.
(7) Changes to manifest. The private aircraft pilot is obligated to make nec- essary changes to the arrival manifest after transmission of the manifest to CBP. If changes to an already trans- mitted manifest are necessary, an up- dated and amended manifest must be resubmitted to CBP. Only amendments
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U.S. Customs and Border Protection, DHS; Treasury § 122.22
regarding flight cancellation, expected time of arrival (ETA) or changes in ar- rival location, to an already trans- mitted manifest may be submitted telephonically, by radio, or through ex- isting processes and procedures. On a limited case-by-case basis, CBP may permit a pilot to submit or update no- tice of arrival and arrival/departure manifest information telephonically when unforeseen circumstances pre- clude submission of the information via eAPIS. Under such circumstances, CBP will manually enter the notice of arrival and arrival/departure manifest information provided by the pilot and the pilot is required to wait for CBP screening and approval to depart. Changes in ETA and arrival location must be coordinated with CBP at the new arrival location to ensure that re- sources are available to inspect the ar- riving aircraft. If a subsequent mani- fest is submitted less than 60 minutes prior to departure to the United States, the private aircraft pilot must receive approval from CBP for the amended manifest containing added passenger information and/or changes to information that were submitted re- garding the aircraft and all individuals onboard the aircraft, before the air- craft is allowed to depart the foreign location, or the aircraft may be, as ap- propriate, diverted from arriving in the United States, or denied permission to land in the United States. If a subse- quent, amended manifest is submitted by the pilot, any approval to depart the foreign port or location previously granted by CBP as a result of the origi- nal manifest’s submission is invalid.
(8) Pilot responsibility for comparing in- formation collected with travel document. The pilot collecting the information described in paragraphs (b)(3) and (b)(4) of this section is responsible for com- paring the travel document presented by each individual to be transported onboard the aircraft with the travel document information he or she is transmitting to CBP in accordance with this section in order to ensure that the information is correct, the document appears to be valid for travel purposes, and the individual is the per- son to whom the travel document was issued.
(c) Electronic manifest requirement for all individuals onboard private aircraft departing from the United States; depar- ture information—(1) General require- ment. The private aircraft pilot is re- sponsible for ensuring that information regarding private aircraft departing the United States, and manifest data for all individuals onboard the aircraft is timely transmitted to CBP. The pilot is responsible for the accuracy, correctness, timeliness, and complete- ness of the submitted information, but may authorize another party to submit the information on their behalf. Data must be transmitted to CBP by means of an electronic data interchange sys- tem approved by CBP, and must set forth the information specified in para- graph (c)(3) and (c)(4) of this section. All data pertaining to the aircraft, and all individuals onboard the aircraft must be transmitted at the same time. On a limited case-by-case basis, CBP may permit a pilot to submit or update notice of arrival and arrival/departure manifest information telephonically to CBP when unforeseen circumstances preclude submission of the information via eAPIS. Under such circumstances, CBP will manually enter the notice of arrival and arrival/departure manifest information provided by the pilot and the pilot is required to wait for CBP screening and approval to depart.
(2) Time for submission. The private aircraft pilot must transmit the elec- tronic data required under paragraphs (c)(3) and (c)(4) of this section to CBP any time prior to departing the United States, but no later than 60 minutes prior to departing the United States.
(3) Manifest data required. For private aircraft departing the United States the following identifying information for each individual onboard the aircraft must be submitted:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F=female; M=male); (iv) Citizenship; (v) Country of residence; (vi) Status on board the aircraft; (vii) DHS-Approved travel document
type (e.g. passport; alien registration card, etc.);
(viii) DHS-Approved travel document number;
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19 CFR Ch. I (4–1–12 Edition)§ 122.22
(ix) DHS-Approved travel document country of issuance, if a DHS-Approved travel document is required;
(x) DHS-approved travel document expiration date, where applicable;
(xi) Alien registration number, where applicable;
(xii) Address while in the United States (number and street, city, state, and zip/postal code). This information is required for all travelers including crew onboard the aircraft.
(4) Notice of Departure information. For private aircraft and pilots depart- ing the United States, the following de- parture information must be submitted by the pilot:
(i) Aircraft tail number; (ii) Type of Aircraft; (iii) Call sign (if available); (iv) CBP issued decal number (if
available); (v) Place of last departure (ICAO air-
port code, when available); (vi) Date of aircraft departure; (vii) Estimated time of departure; (viii) Estimated time and location of
crossing U.S. border/coastline; (ix) Name of intended foreign airport
of first landing (ICAO airport code, when available);
(x) Owner/Lessees name (if indi- vidual: last, first, and, if available, middle; or business entity name if ap- plicable);
(xi) Owner/Lessees street address (number and street, city, state, zip/ postal code, country, telephone num- ber, fax number, and email address);
(xii) Pilot/Private aircraft pilot name (last, first and, if available, middle);
(xiii) Pilot license number; (xiv) Pilot street address (number
and street, city, state, zip/postal code, country, telephone number, fax num- ber, and email address);
(xv) Country of issuance of pilot’s li- cense;
(xvi) Operator name (if individual: last, first, and if available, middle; or business entity name, if applicable);
(xvii) Operator street address (num- ber and street, city, state, zip/postal code, country, telephone number, fax number, and email address);
(xviii) 24-hour Emergency point of contact (e.g., broker, dispatcher, repair shop, or other third party contact, or individual who is knowledgeable about
this particular flight) name (last, first, middle, if available) and phone number;
(xix) Aircraft color(s); and (xx) Complete itinerary (intended
foreign airport destinations for 24 hours following departure).
(5) Permission to depart. Prior to de- parture for a foreign port or place, the pilot of a private aircraft must receive a message from DHS approving depar- ture from the United States and follow any instructions contained therein. Once DHS has approved departure, and the pilot has executed all instructions issued by DHS, the aircraft is free to depart.
(6) Changes to manifest. If any of the data elements change after the mani- fest is transmitted, the private aircraft pilot must update the manifest and re- submit the amended manifest to CBP. Only amendments regarding flight can- cellation, expected time of departure or changes in departure location, to an already transmitted manifest may be submitted telephonically, by radio, or through existing processes and proce- dures. If an amended manifest is sub- mitted less than 60 minutes prior to de- parture, the private aircraft pilot must receive approval from CBP for the amended manifest containing added passenger information and/or changes to information that were submitted re- garding the aircraft before the aircraft is allowed to depart the U.S. location, or the aircraft may be denied clearance to depart from the United States. If a subsequent amended manifest is sub- mitted by the pilot, any clearance pre- viously granted by CBP as a result of the original manifest’s submission is invalid.
(7) Pilot responsibility for comparing in- formation collected with travel document. The pilot collecting the information described in paragraphs (c)(3) and (c)(4) of this section is responsible for com- paring the travel document presented by each individual to be transported onboard the aircraft with the travel document information he or she is transmitting to CBP in accordance with this section in order to ensure that the information is correct, the document appears to be valid for travel
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U.S. Customs and Border Protection, DHS; Treasury § 122.24
purposes, and the individual is the per- son to whom the travel document was issued.
[CBP Dec. 08-43, 73 FR 68310, Nov. 18, 2008]
§ 122.23 Certain aircraft arriving from areas south of the U.S.
(a) Application. (1) This section sets forth particular requirements for cer- tain aircraft arriving from south of the United States. This section is applica- ble to all aircraft except:
(i) Public aircraft; (ii) Those aircraft operated on a regu-
larly published schedule, pursuant to a certificate of public convenience and necessity or foreign aircraft permit issued by the Department of Transpor- tation, authorizing interstate, overseas air transportation; and
(iii) Those aircraft with a seating ca- pacity of more than 30 passenges or a maximum payload capacity of more than 7,500 pounds which are engaged in air transportation for compensation or hire on demand. (See 49 U.S.C. App. 1372 and 14 CFR part 298).
(2) The term ‘‘place’’ as used in this section means anywhere outside of the inner boundary of the Atlantic (Coast- al) Air Defense Identification Zone (ADIZ) south of 30 degrees north lati- tude, anywhere outside of the inner boundary of the Gulf of Mexico (Coast- al) ADIZ, or anywhere outside of the inner boundary of the Pacific (Coastal) ADIZ south of 33 degrees north lati- tude.
(b) Notice of arrival. All aircraft to which this section applies arriving in the Continental United States via the U.S./Mexican border or the Pacific Coast from a foreign place in the West- ern Hemisphere south of 33 degrees north latitude, or from the Gulf of Mexico and Atlantic Coasts from a place in the Western Hemisphere south of 30 degrees north latitude, from any place in Mexico, from the U.S. Virgin Islands, or [notwithstanding the defini- tion of ‘‘United States’’ in § 122.1(l)] from Puerto Rico, must furnish a no- tice of intended arrival. Private air- craft must transmit an advance notice of arrival as set forth in § 122.22 of this part. Other than private aircraft, all aircraft to which this section applies must communicate to CBP notice of arrival at least one hour before cross-
ing the U.S. coastline. Such notice must be communicated to CBP by tele- phone, radio, other method or the Fed- eral Aviation Administration in ac- cordance with paragraph (c) of this sec- tion.
(c) Contents of notice. The advance no- tice of arrival shall include the fol- lowing:
(1) Aircraft registration number; (2) Name of aircraft commander; (3) Number of U.S. citizen passengers; (4) Number of alien passengers; (5) Place of last departure; (6) Estimated time and location of
crossing U.S. border/coastline; (7) Estimated time of arrival; (8) Name of intended U.S. airport of
first landing, as listed in § 122.24, unless an exemption has been granted under § 122.25, or the aircraft has not landed in foreign territory or is arriving di- rectly from Puerto Rico, or the aircraft was inspected by Customs officers in the U.S. Virgin Islands.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended at CBP Dec. 08-43, 73 FR 68312, Nov. 18, 2008]
§ 122.24 Landing requirements for cer- tain aircraft arriving from areas south of U.S.
(a) In general. Certain aircraft arriv- ing from areas south of the United States that are subject to § 122.23 are required to furnish a notice of intended arrival in compliance with § 122.23. Sub- ject aircraft must land for CBP proc- essing at the nearest designated air- port to the border or coastline crossing point as listed under paragraph (b) un- less exempted from this requirement in accordance with § 122.25. In addition to the requirements of this section, pilots of aircraft to which § 122.23 is applica- ble must comply with all other landing and notice of arrival requirements. This requirement shall not apply to those aircraft which have not landed in foreign territory or are arriving di- rectly from Puerto Rico, if the aircraft was inspected by CBP officers in the U.S. Virgin Islands, or otherwise precleared by CBP officers at des- ignated preclearance locations.
(b) List of designated airports. Private aircraft required to furnish a notice of intended arrival in compliance with
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19 CFR Ch. I (4–1–12 Edition)§ 122.25
§ 122.23 shall land for Customs proc- essing at the nearest designated air- port to the border or coastline crossing point as listed in this paragraph unless exempted from this requirement in ac- cordance with § 122.25. In addition to the requirements of this section, pri- vate aircraft commanders must comply with all other landing and notice of ar- rival requirements. This requirement shall not apply to private aircraft which have not landed in foreign terri- tory or are arriving directly from Puer- to Rico or if the aircraft was inspected by Customs officers in the U.S. Virgin Islands.
Location Name
Beaumont, Tex .... Jefferson County Airport. Brownsville, Tex .. Brownsville International Airport. Calexico, Calif ...... Calexico International Airport. Corpus Christi,
Tex. Corpus Christi International Airport.
Del Rio, Tex ......... Del Rio International Airport. Douglas, Ariz ....... Bisbee-Douglas International Airport. Douglas, Ariz ....... Douglas Municipal Airport. Eagle Pass, Tex .. Eagle Pass Municipal Airport. El Paso, Tex ........ El Paso International Airport. Fort Lauderdale,
Fla. Fort Lauderdale Executive Airport.
Fort Lauderdale, Fla.
Fort Lauderdale-Hollywood International Airport.
Fort Pierce, Fla .... St. Lucie County Airport. Houston, Tex ....... William P. Hobby Airport. Key West, Fla ...... Key West International Airport. Laredo, Tex ......... Laredo International Airport. McAllen, Tex ........ Miller International Airport. Miami, Fla ............ Miami International Airport. Miami, Fla ............ Opa-Locka Airport. Miami, Fla ............ Tamiami Airport. Midland, TX ......... Midland International Airport. New Orleans, La .. New Orleans International Airport
(Moissant Field). New Orleans, La .. New Orleans Lakefront Airport. Nogales, Ariz ....... Nogales International Airport. Presidio, Tex ........ Presidio-Lely International Airport. San Antonio Tex .. San Antonio International Airport. San Diego, Calif .. Brown Field. Santa Teresa, N.
Mex. Santa Teresa Airport.
Tampa, Fla .......... Tampa International Airport. Tucson, Ariz ......... Tucson International Airport. West Palm Beach,
Fla. Palm Beach International Airport.
Wilmington, NC .... New Hanover County Airport Yuma, Ariz ........... Yuma International Airport.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by 89–2, Dec. 21, 1988; T.D. 89–2, 53 FR 51272, Dec. 21, 1988; T.D. 89–44, 54 FR 14214, Apr. 10, 1989; T.D. 93–67, 58 FR 44444, Aug. 23, 1993; T.D. 94–34, 59 FR 16122, Apr. 6, 1994; T.D. 97–35, 62 FR 24815, May 7, 1997; CBP Dec. 08- 01, 73 FR 12262, Mar. 7, 2008; CBP Dec. 08-43, 73 FR 68312, Nov. 18, 2008]
§ 122.25 Exemption from special land- ing requirements.
(a) Request. Any company or indi- vidual that has operational control over an aircraft required to give ad- vance notice of arrival under § 122.23 may request an exemption from the landing requirements in § 122.24. Single overflight exemptions may be granted to entities involved in air ambulance type operations when emergency situa- tions arise and in cases involving the non-emergency transport of persons seeking medical treatment in the U.S. All approvals of requests for overflight exemptions and the granting of author- ity to be exempted from the landing re- quirements are at the discretion of the port director. Exemptions may allow aircraft to land at any airport in the U.S. staffed by Customs. Aircraft trav- eling under an exemption shall con- tinue to follow advance notice and gen- eral landing rights requirements.
(b) Procedure. An exemption request shall be made to the port director at the airport at which the majority of Customs overflight processing is de- sired by the applicant. Except for air ambulance operations and other flights involving the non-emergency transport of persons seeking medical treatment in the U.S., the requests shall be signed by an officer of the company or by the requesting individual and be notarized or witnessed by a Customs officer. The requests shall be submitted:
(1) At least 30 days before the antici- pated first arrival, if the request is for an exemption covering a number of flights over a period of one year, or
(2) At least 15 days before the antici- pated arrival, if the request is for a sin- gle flight, or
(3) In cases involving air ambulance operations when emergency situations arise and other flights involving the non-emergency transport of persons seeking medical treatment in the U.S., if time permits, at least 24 hours prior to departure. If this cannot be accom- plished, Customs will allow receipt of the overflight exemption application up to departure time. In cases of ex- treme medical emergency, Customs will accept overflight exemption re- quests in flight through a Federal Aviation Administration Flight Serv- ice Station.
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(c) Content of request. All requests for exemption from special landing re- quirements, with the exception of those for air ambulance operations and other flights involving the non-emer- gency transport of persons seeking medical treatment in the U.S., shall in- clude the following information. Re- quests for exemptions for air ambu- lance operations and other flights in- volving the non-emergency transport of persons for medical treatment in the U.S. shall include the following infor- mation except for paragraphs (c)(5) and (c)(6) of this section:
(1) Aircraft registration number(s) and manufacturer’s serial number(s) for all aircraft owned or operated by the applicant that will be utilizing the overflight exemption;
(2) Identification information for each aircraft including class, manufac- turer, type, number, color scheme, and type of engine (e.g., turbojet, turbofan, turboprop, reciprocating, helicopter, etc.);
(3) A statement that the aircraft is equipped with a functioning mode C (altitude reporting) transponder which will be in use during overflight, that the overflights will be made in accord with instrument flight rules (IFR), and that the overflights will be made at al- titudes above 12,500 feet mean sea level (unless otherwise instructed by Federal Aviation Administration controllers);
(4) Name and address of the applicant operating the aircraft, if the applicant is a business entity, the address of the headquarters of the business (include state of incorporation if applicable), and the names, addresses, Social Secu- rity numbers (if available), and dates of birth of the company officer or indi- vidual signing the application. If the aircraft is operated under a lease, in- clude the name, address, Social Secu- rity number (if available), and date of birth of the owner if an individual, or the address of the headquarters of the business (include state of incorporation if applicable), and the names, address- es, Social Security numbers, and dates of birth of the officers of the business;
(5) Individual, signed applications from each usual or anticipated pilot or crewmember for all aircraft for which an overflight exemption is sought stat- ing name, address, Social Security
number (if available), Federal Aviation Administration certificate number (if applicable), and place and date of birth;
(6) A statement from the individual signing the application that the pilot(s) and crewmember(s) responding to paragraph (c)(5) of this section are those intended to conduct overflights, and that to the best of the individual’s knowledge, the information supplied in response to paragraph (c)(5) of this sec- tion is accurate;
(7) Names, addresses, Social Security numbers (if applicable), and dates of birth for all usual or anticipated pas- sengers. An approved passenger must be on board to utilize the overflight ex- emptions.
NOTE: Where the Social Security number is requested, furnishing of the SSN is vol- untary. The authority to collect the SSN is 19 U.S.C. 66, 1433, 1459 and 1624. The primary purpose for requesting the SSN is to assist in ascertaining the identity of the individual so as to assure that only law-abiding persons will be granted permission to land at interior airports in the U.S. without first landing at one of the airports designated in § 122.24. The SSN will be made available to Customs per- sonnel on a need-to-know basis. Failure to provide the SSN may result in a delay in processing of the application;
(8) Description of the usual or antici- pated baggage or cargo if known, or the actual baggage or cargo;
(9) Description of the applicant’s usual business activity;
(10) Name(s) of the airport(s) of in- tended first landing in the U.S. Actual overflights will only be permitted to specific approved airports;
(11) Foreign place or places from which flight(s) will usually originate; and
(12) Reasons for request for overflight exemption.
(d) Procedure following exemption. (1) If an aircraft subject to § 122.23 is granted an exemption from the landing requirements as provided in this sec- tion, the aircraft commander shall no- tify Customs at least 60 minutes be- fore:
(i) Crossing into the U.S. over a point on the Pacific Coast north of 33 degrees north latitude; or
(ii) Crossing into the U.S. over a point of the Gulf of Mexico or Atlantic Coast north of 30 degrees north lati- tude; or
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19 CFR Ch. I (4–1–12 Edition)§ 122.26
(iii) Crossing into the U.S. over the Southwestern land border (defined as the U.S.-Mexican border between Brownsville, Texas, and San Diego, California). Southwestern land border crossings must be made while flying in Federal Aviation Administration pub- lished airways.
(2) The notice shall be given to a des- ignated airport specified in § 122.24. The notice may be furnished directly to Customs by telephone, radio or other means, or may be furnished through the Federal Aviation Administration to Customs. If notice is furnished pur- suant to this paragraph, notice pursu- ant to §§ 122.23 and 122.24 is unneces- sary.
(3) All overflights must be conducted pursuant to an instrument flight plan filed with the Federal Aviation Admin- istration or equivalent foreign aviation authority prior to the commencement of the overflight.
(4) The owner or aircraft commander of an aircraft subject to § 122.23 granted an exemption from the landing require- ments must:
(i) Notify Customs of a change of Federal Aviation Administration or other (foreign) registration number for the aircraft;
(ii) Notify Customs of the sale, theft, modification or destruction of the air- craft;
(iii) Notify Customs of changes of usual or anticipated pilots or crew- members as specified in paragraph (c)(5) of this section. Every pilot and crewmember participating in an over- flight must have prior Customs ap- proval either through initial applica- tion and approval, or through a supple- mental application submitted by the new pilot or crewmember and approved by Customs before commencement of the pilot’s or crewmember’s first over- flight.
(iv) Request permission from Cus- toms to conduct an overflight to an airport not listed in the initial over- flight application as specified in para- graph (c)(10) of this section. The re- quest must be directed to the port di- rector who approved the initial request for an overflight exemption.
(v) Retain copies of the initial re- quest for an overflight exemption, all supplemental applications from pilots
or crewmembers, and all requests for additional landing privileges as well as a copy of the letter from Customs ap- proving each of these requests. The copies must be carried on board any aircraft during the conduct of an over- flight.
(5) The notification specified in para- graph (d)(4) of this section must be given to Customs within 5 working days of the change, sale, theft, modi- fication, or destruction, or before a flight for which there is an exemption, whichever occurs earlier.
(e) Inspection of aircraft having or re- questing overflight exemption. Applicants for overflight exemptions must agree to make the subject aircraft available for inspection by Customs to determine if the aircraft is capable of meeting Customs requirements for the proper conduct of an overflight. Inspections may be conducted during the review of an initial application or at any time during the term of an overflight ex- emption.
[T.D. 89–24, 53 FR 5429, Feb. 3, 1989, as amend- ed by T.D. 89–24, 53 FR 6884 and 6988, Feb. 15, 1989; CBP Dec. 08-43, 73 FR 68312, Nov. 18, 2008]
§ 122.26 Entry and clearance. Private aircraft, as defined in
§ 122.1(h), arriving in the United States as defined in § 122.22, are not required to formally enter. No later than 60 minutes prior to departure from the United States as defined in § 122.22, to a foreign location, manifest data for each individual onboard a private air- craft and departure information must be submitted as set forth in § 122.22(c). Private aircraft must not depart the United States to travel to a foreign lo- cation until CBP confirms receipt of the appropriate manifest and departure information as set forth in § 122.22(c), and grants electronic clearance via electronic mail or telephone.
[CBP Dec. 08-43, 73 FR 68312, Nov. 18, 2008]
§ 122.27 Documents required. (a) Crewmembers and passengers. Crew-
members and passengers on a private aircraft arriving in the U.S. shall make baggage declarations as set forth in part 148 of this chapter. An oral dec- laration of articles acquired in foreign
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areas shall be made, unless a written declaration on Customs Form 6059–B is found necessary by inspecting officers.
(b) Cargo. (1) On arrival, cargo and unaccompanied baggage not carried for hire aboard a private aircraft may be listed on a baggage declaration on Cus- toms Form 6059–B, and shall be en- tered. If the cargo or unaccompanied baggage is not listed on a baggage dec- laration, it shall be entered in the same manner as cargo carried for hire into the U.S.
(2) On departure, when a private air- craft leaves the U.S. carrying cargo not for hire, the Bureau of Census (15 CFR part 30) and the Export Administration Regulations (15 CFR parts 730 through 774) and any other applicable export laws shall be followed. A foreign land- ing certificate or certified copy of a foreign Customs entry is required as proof of exportation if the cargo in- cludes:
(i) Merchandise valued at more than $500.00; or
(ii) More than one case of alcoholic beverages withdrawn from a Customs bonded warehouse or otherwise in bond for direct exportation by private air- craft. A foreign landing certificate, when re- quired, shall be produced within six months from the date of exportation and shall be signed by a revenue officer of the foreign country to which the merchandise is exported, unless it is shown that the country has no Cus- toms administration, in which case the certificate may be signed by the con- signee or by the vessel’s agent at the place of landing.
(c) Pilot certificate/license, certificate of registration—(1) Pilot certificate/license. A commander of a private aircraft arriv- ing in the U.S. must present for inspec- tion a valid pilot certificate/license, medical certificate, authorization, or license held by that person, when pres- entation for inspection is requested by a Customs officer.
(2) Certificate of registration. A valid certificate of registration for private aircraft which are U.S.-registered must also be presented upon arrival in the U.S., when presentation for inspection is requested by a Customs officer. A so- called ‘‘pink slip’’ is a duplicate copy of the Aircraft Registration Applica-
tion (FAA Form AC 8050–1), and does not constitute a valid certificate of registration authorizing travel inter- nationally.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 91–61, 56 FR 32086, July 15, 1991; CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004]
§ 122.28 Private aircraft taken abroad by U.S. residents.
An aircraft belonging to a resident of the U.S. which is taken to a foreign area for non-commercial purposes and then returned to the U.S. by the resi- dent shall be admitted under the condi- tions and procedures set forth in § 148.32 of this chapter. Repairs made abroad, and accessories purchased abroad shall be included in the baggage declaration as required by § 148.32(c), and may be subject to entry and pay- ment of duty as provided in § 148.32.
§ 122.29 Arrival fee and overtime serv- ices.
Private aircraft may be subject to the payment of an arrival fee for serv- ices provided as set forth in § 24.22 of this chapter. For the procedures to be followed in requesting overtime serv- ices in connection with the arrival of private aircraft, see § 24.16 of this chap- ter.
[T.D. 93–85, 58 FR 54286, Oct. 21, 1993]
§ 122.30 Other Customs laws and regu- lations.
Sections 122.2 and 122.161 apply to pri- vate aircraft.
Subpart D—Landing Requirements
§ 122.31 Notice of arrival. (a) Application. Except as provided in
paragraph (b) of this section, all air- craft entering the United States from a foreign area must give advance notice of arrival.
(b) Exceptions for scheduled aircraft of a scheduled airline. Advance notice is not required for aircraft of a scheduled airline arriving under a regular sched- ule. The regular schedule must have been filed with the port director for the airport where the first landing is made.
(c) Giving notice of arrival—(1) Proce- dure—(i) Private aircraft. The pilot of a
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19 CFR Ch. I (4–1–12 Edition)§ 122.32
private aircraft must give advance no- tice of arrival in accordance with § 122.22 of this part.
(ii) Aircraft arriving from Cuba. Air- craft arriving from Cuba must follow the advance notice of arrival proce- dures set forth in § 122.154 in subpart O of this part.
(iii) Certain aircraft arriving from areas south of the United States. Certain air- craft arriving from areas south of the United States (other than Cuba) must follow the advance notice of arrival procedures set forth in § 122.23 of this part.
(iv) Other aircraft. The commander of an aircraft not otherwise covered by paragraphs (c)(1)(i), (c)(1)(ii) and (c)(1)(iii) of this section must give ad- vance notice of arrival as set forth in paragraph (d) of this section. Notice must be given to the port director at the place of first landing, either:
(A) Directly by radio, telephone, or other method; or
(B) Through Federal Aviation Admin- istration flight notification procedure (see International Flight Information Manual, Federal Aviation Administra- tion).
(2) Reliable facilities. When reliable means for giving notice are not avail- able (for example, when departure is from a remote place) a departure must be made at a place where notice can be sent prior to coming into the U.S.
(d) Contents of notice. The advance no- tice of arrival required by aircraft cov- ered in paragraph (c)(1)(iv) of this sec- tion must include the following infor- mation:
(1) Type of aircraft and registration number;
(2) Name (last, first, middle, if avail- able) of aircraft commander;
(3) Place of last foreign departure; (4) International airport of intended
landing or other place at which landing has been authorized by CBP;
(5) Number of alien passengers; (6) Number of citizen passengers; and (7) Estimated time of arrival. (e) Time of notice. Notice of arrival as
required pursuant to paragraph (c)(1)(iv) of this section must be fur- nished far enough in advance to allow inspecting CBP officers to reach the place of first landing of the aircraft prior to the aircraft’s arrival.
(f) Notice of other Federal agencies. When advance notice is received, the port director will inform any other concerned Federal agency.
[CBP Dec. 08-43, 73 FR 68312, Nov. 18, 2008]
§ 122.32 Aircraft required to land. (a) Any aircraft coming into the U.S.,
from an area outside of the U.S., is re- quired to land, unless it is denied per- mission to land in the U.S. by CBP pur- suant to § 122.12(c), or is exempted from landing by the Federal Aviation Ad- ministration.
(b) Conditional permission to land. CBP has the authority to limit the loca- tions where aircraft entering the U.S. from a foreign area may land. As such, aircraft must land at the airport des- ignated in their APIS transmission un- less instructed otherwise by CBP or changes to the airport designation are required for aircraft and/or airspace safety as directed by the Federal Avia- tion Administration (FAA) flight serv- ices.
[CBP Dec. 08-43, 73 FR 68313, Nov. 18, 2008]
§ 122.33 Place of first landing. (a) The first landing of an aircraft en-
tering the United States from a foreign area will be:
(1) At a designated international air- port (see § 122.13), provided that permis- sion to land has not been denied pursu- ant to § 122.12(c);
(2) At a landing rights airport if per- mission to land has been granted (see § 122.14); or
(3) At a designated user fee airport if permission to land has been granted (see § 122.15).
(b) Permission to land at a landing rights airport or user fee airport is not required for an emergency or forced landing (see § 122.35).
[T.D. 92–90, 57 FR 43397, Sept. 21, 1992, as amended by CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003]
§ 122.35 Emergency or forced landing. (a) Application. This section applies
to emergency or forced landings made by aircraft when necessary for safety or the preservation of life or health, when such aircraft are:
(1) Travelling from airport to airport in the U.S. under a permit to proceed
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U.S. Customs and Border Protection, DHS; Treasury § 122.38
(see §§ 122.52, 122.54 and 122.83(d)), or a Customs Form 7509 (see § 122.113); or
(2) Coming into the U.S. from a for- eign area.
(b) Notice. When an emergency or forced landing is made, notice shall be given:
(1) To the Customs Service at the in- tended place of first landing, nearest international airport, or nearest port of entry, as soon as possible;
(2) By the aircraft commander, other person in charge, or aircraft owner, who shall make a full report of the flight and the emergency or forced landing.
(c) Passengers and crewmembers. The aircraft commander or other person in charge shall keep all passengers and crewmembers in a separate place at the landing area until Customs officers ar- rive. Passengers and crewmembers may be removed if necessary for safety, or for the purpose of contacting Customs.
(d) Merchandise and baggage. The air- craft commander or other person in charge shall keep all merchandise and baggage together and unopened at the landing area until Customs officers ar- rive. The merchandise and baggage may be removed for safety or to pro- tect property.
(e) Mail. Mail may be removed from the aircraft, but shall be delivered at once to an officer or employee of the Postal Service.
§ 122.36 Responsibility of aircraft com- mander.
If an aircraft lands in the U.S. and Customs officers have not arrived, the aircraft commander shall hold the air- craft, and any merchandise or baggage on the aircraft for inspection. Pas- sengers and crewmembers shall be kept in a separate place until Customs offi- cers authorize their departure.
§ 122.37 Precleared aircraft.
(a) Application. This section applies when aircraft carrying crew, pas- sengers and baggage, or merchandise which has been precleared pursuant to § 148.22 of this chapter at a location listed in § 101.5 of this chapter and makes an unscheduled or unintended landing at an airport in the U.S.
(b) Notice. The aircraft commander or agent shall give written notice to the Customs office at:
(1) The intended place of unlading; and
(2) The place of preclearance. (c) Time of notice. Notice shall be
given within 7 days of the unscheduled or unintended landing unless other ar- rangements have been made in advance between the carrier and the port direc- tor.
§ 122.38 Permit and special license to unlade and lade.
(a) Applicability. Before any pas- sengers, baggage, or merchandise may be unladen or laden aboard on arrival or departure of an aircraft subject to these regulations, a permit and/or spe- cial license to unlade or lade shall be obtained from Customs.
(1) Permit to unlade or lade. A permit is required to obtain Customs super- vision of unlading and lading during of- ficial Customs duty hours.
(2) Special license to unlade or lade. A special license is required to obtain Customs supervision of unlading and lading at any time not within official Customs duty hours (generally, during overtime hours, Sundays or holidays).
(b) Authorization required. A permit or special license shall be required for each arrival and departure unless a term permit or special license has been granted. No permit or special license shall be issued unless the carrier com- plies with the terminal facilities and employee list requirements of § 4.30 of this chapter.
(c) Term permit or special license. A term permit or special license may be issued covering all arrivals and depar- tures during a period of up to one year, providing local arrangements have been made to notify Customs before services are needed. The notice shall specify the kinds of services requested, and the exact times they will be need- ed. No term permit or special license shall be issued, and any term permit or special license already issued shall be revoked, unless the carrier complies with the terminal facilities and em- ployee list requirements of § 4.30 of this chapter. In addition, a term permit or special license to unlade or lade al- ready issued will not be applicable to
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19 CFR Ch. I (4–1–12 Edition)§ 122.41
any inbound or outbound flight, with respect to which Customs and Border Protection (CBP) has not received the advance electronic cargo information required, respectively, under § 122.48a or 192.14(b)(1)(ii) of this chapter (see paragraph (g) of this section).
(d) Procedures. The application for a permit and special license to unlade or lade shall be made by the owner, oper- ator, or agent for an aircraft on Cus- toms Form 3171, and shall be submitted to the port director for the airport where the unlading and lading will take place. The application shall be ac- companied by a bond on Customs Form 301, containing the bond conditions set forth in subpart G of part 113 of this chapter, or a cash deposit, unless this requirement is waived under paragraph (e) of this section.
(e) Waiver of bond. To insure prompt and orderly clearance of the aircraft, passengers, baggage, or merchandise, the port director may waive the re- quirement under paragraph (d) of this section that either a bond or a cash de- posit be made, if he is convinced the revenue is protected and that all Cus- toms requirements are satisfied.
(f) Automatic renewal of term permit or special license. Automatic renewal of a term permit or special license may be requested by the owner, operator, or agent for an aircraft when a bond on Customs Form 301 containing the ap- propriate bond conditions set forth in subpart G of part 113 of this chapter is on file. The request shall be for succes- sive annual periods which conform to the automatic renewal periods of the bond. An application will be approved by the port director unless specific rea- sons exist for denial. If a request for automatic renewal is not approved, the port director shall notify the re- questor, and shall state the reasons for the denial. To apply for automatic re- newal, item 10 on Customs Form 3171 shall be changed by adding the fol- lowing words after the period of time indicated: ‘‘And automatic annual re- newal thereof for so long as the bond is renewed and remains in effect.’’
(g) Advance receipt of electronic cargo information. The CBP will not issue a permit to unlade or lade cargo upon ar- rival or departure of an aircraft, and a term permit or special license already
issued will not be applicable to any in- bound or outbound flight, with respect to which CBP has not received the ad- vance electronic cargo information re- quired, respectively, under § 122.48a or 192.14 of this chapter. In cases in which CBP does not receive complete cargo information in the time and manner and in the electronic format required by § 122.48a or 192.14 of this chapter, as applicable, CBP may delay issuance of a permit or special license to unlade or lade cargo, and a term permit or spe- cial license to unlade or lade already issued may not apply, until all required information is received. The CBP may also decline to issue a permit or special license to unlade or lade, and a term permit or special license already issued may not apply, with respect to the spe- cific cargo for which advance informa- tion is not timely received electroni- cally, as specified in § 122.48a or 192.14(b)(1)(ii) of this chapter.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 94–2, 58 FR 68526, Dec. 28, 1993; CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003]
Subpart E—Aircraft Entry and Entry Documents; Electronic Mani- fest Requirements for Pas- sengers, Crew Members, and Non-Crew Members Onboard Commercial Aircraft Arriving In, Continuing Within, and Overflying the United States
§ 122.41 Aircraft required to enter.
All aircraft coming into the United States from a foreign area must make entry under this subpart except:
(a) Public and private aircraft; (b) Aircraft chartered by, and trans-
porting only cargo that is the property of, the U.S. Department of Defense (DoD), where the DoD-chartered air- craft is manned entirely by the civilian crew of the air carrier under contract to DoD; and
(c) Aircraft traveling from airport to airport in the U.S. under subpart I, re- lating to residue cargo procedures.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003]
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§ 122.42 Aircraft entry. (a) By whom. Entry shall be made by
the aircraft commander or an agent. (b) Place of entry—(1) First landing at
international airport. Entry shall be made at the international airport at which first landing is made.
(2) First landing at another airport. If the first landing is not at an inter- national airport pursuant to §§ 122.14, 122.15, or 122.35, the aircraft com- mander or agent shall make entry at the nearest international airport or port of entry, unless some other place is allowed for the purpose.
(c) Delivery of forms. When the air- craft arrives, the aircraft commander or agent shall deliver any required forms to the Customs officer at the place of entry at once.
(d) Exception to entry requirement. Ex- cept for flights to Cuba (provided for in subpart O of this part), an aircraft of a scheduled airline which stops only for refueling at the first place or arrival in the U.S. shall not be required to enter provided:
(1) That such aircraft departs within 24 hours after arrival;
(2) No cargo, crew, or passengers are off-loaded; and
(3) Landing rights at that airport as either a regular or alternate landing place shall have been previously se- cured.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended at CBP Dec. 10–29, 75 FR 52452, Aug. 26, 2010]
§ 122.43 General declaration. (a) When required. A general declara-
tion, Customs Form 7507, shall be filed for all aircraft required to enter under § 122.41 (Aircraft required to enter).
(b) Exception. Aircraft arriving di- rectly from Canada on a flight begin- ning in Canada and ending in the U.S. need not file a general declaration to enter. Instead, an air cargo manifest (see § 122.48) may be filed in place of the general declaration, regardless of whether cargo is on board. The air cargo manifest shall state the fol- lowing:
I certify to the best of my knowledge and belief that this manifest contains an exact and true account of all cargo on board this aircraft.
Signature llllllllllllllllll
(Aircraft Commander or Agent)
(c) Form. The general declaration shall be on Customs Form 7507 or on a privately printed form prepared under § 122.5. The form shall contain all re- quired information, unless the informa- tion is given in some other manner under subpart E of this part.
§ 122.44 Crew baggage declaration.
If an aircraft enters the U.S. from a foreign area, aircraft crewmembers shall file a crew baggage declaration as provided in subpart G, part 148 of this chapter.
§ 122.45 Crew list.
(a) When required. A crew list shall be filed by all aircraft required to enter under § 122.41.
(b) Exception. No crew list is required for aircraft arriving directly from Can- ada on a flight beginning in Canada and ending in the U.S. Instead, the total number of crewmembers may be shown on the general declaration.
(c) Form. The crew list shall show the full name (last name, first name, mid- dle initial) of each crewmember, either:
(1) On the general declaration in the column headed ‘‘Total Number of Crew’’; or
(2) On a separate, clearly marked document.
(d) Crewmembers returning as pas- sengers. Crewmembers of any aircraft returning to the U.S. as passengers on a commercial aircraft from a trip on which they were employed as crew- members shall be listed on the aircraft general declaration or crew list.
§ 122.46 Crew purchase list.
(a) When required. A crew purchase list shall be filed with the general dec- laration for any aircraft required to enter under § 122.41.
(b) Exception. A crew purchase list is not required for aircraft arriving di- rectly from Canada on a flight begin- ning in Canada and ending in the U.S. If a written crew declaration is re- quired for the aircraft under subpart G of part 148 of this chapter (Crew- member Declarations and Exemptions), it shall be attached to the air cargo
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manifest, along with the number of any written crew declarations.
(c) Form. If a crewmember enters ar- ticles for which a written crew declara- tion is not required (see subpart G, part 148 of this chapter), the articles shall be listed next to the crew- member’s name on the general declara- tion, or on the attached crew purchase list. Articles listed on a written crew declaration need not be listed on the crew purchase list if:
(1) The crew declaration is attached to the general declaration, or to the crew list which in turn is attached to the general declaration; and
(2) The statement ‘‘Crew purchases as per attached crew declaration’’ appears on the general declaration or crew list.
§ 122.47 Stores list. (a) When required. A stores list shall
be filed for all aircraft required to enter under § 122.41.
(b) Form. The aircraft stores shall be listed on the cargo manifest or on a separate list. If the stores are listed on a separate list, the list must be at- tached to the cargo manifest. The statement ‘‘Stores List Attached’’ must appear on the cargo manifest.
(c) Contents—(1) Required listing. The stores list shall include all of the fol- lowing:
(i) Alcoholic beverages, cigars, ciga- rettes and narcotic drugs, whether do- mestic or foreign;
(ii) Bonded merchandise arriving as stores;
(iii) Foreign merchandise arriving as stores; and
(iv) Equipment which must be li- censed by the Secretary of State (see § 122.48(b)).
(2) Other articles. In the case of air- craft of scheduled airlines, other do- mestic supplies and equipment (if not subject to license) and fuel may be dropped from the stores list if the statement ‘‘Domestic supplies and equipment and fuel for immediate flight only, except as noted’’ appears on the cargo manifest or on the sepa- rate stores list. The stores list shall be attached to the cargo manifest.
(d) Other statutes. Section 446, Tariff Act of 1930, as amended (19 U.S.C. 1446), which covers supplies and stores kept on board vessels, applies to aircraft ar-
riving in the U.S. from any foreign area.
§ 122.48 Air cargo manifest.
(a) When required. Except as provided in paragraphs (d) and (e) of this sec- tion, an air cargo manifest need not be filed or retained aboard the aircraft for any aircraft required to enter under § 122.41. However, an air cargo manifest for all cargo on board must otherwise be available for production upon de- mand. The general declaration must be filed as provided in § 122.43.
(b) Exception. A cargo manifest is not required for merchandise, baggage and stores arriving from and departing for a foreign country on the same through flight. Any cargo manifest already on board may be inspected. All articles on board which must be licensed by the Secretary of State shall be listed on the cargo manifest. Company mail shall be listed on the cargo manifest.
(c) Form. The air cargo manifest, Cus- toms Form 7509, must contain all re- quired information regarding all cargo on board the aircraft, except that a more complete description of the cargo shipped may be provided by attaching to the manifest copies of the air way- bills covering the cargo on board, in- cluding, if a consolidated shipment, any house air waybills. When copies of air waybills are attached, the state- ment ‘‘Cargo as per air waybills at- tached’’ must appear on the manifest. The manifest must reference an 11- digit air waybill number for each air waybill it covers. The air waybill num- ber must not be used by the issuer for another air waybill for a period of one year after issuance.
(d) Unaccompanied baggage. Unaccom- panied baggage arriving in the U.S. under a check number from any foreign country by air and presented timely to Customs may be authorized for deliv- ery by the carrier after inspection and examination without preparation of an entry, declaration, or being manifested as cargo. Such baggage must be found to be free of duty or tax under any pro- vision of Chapter 98, HTSUS (19 U.S.C. 1202), and cannot be restricted or pro- hibited. Unaccompanied checked bag- gage not presented timely to Customs
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or presented timely and found by Cus- toms to be dutiable, restricted, or pro- hibited may be subject to seizure. Such unaccompanied checked baggage shall be added to the cargo list in columns under the following headings:
Check No.
Descrip- tion
Where from
Des- tination
Name of exam-
ining of- ficer
Dis- posi- tion
The two columns, headed ‘‘Name of ex- amining officer’’ and ‘‘Disposition,’’ are provided on the cargo manifest for the use of Customs officers. Unaccompained unchecked baggage ar- riving as air express or freight shall be manifested as other air express or freight.
(e) Accompanied baggage in transit. This section applies when accompanied baggage enters into the U.S. in one air- craft and leaves the U.S. in another aircraft. When passengers do not have access to their baggage while in transit through the U.S., the baggage is con- sidered cargo and shall be listed on Customs Form 7509, Air Cargo Mani- fest.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 02–51, 67 FR 55721, Aug. 30, 2002; CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003]
§ 122.48a Electronic information for air cargo required in advance of ar- rival.
(a) General requirement. Pursuant to section 343(a), Trade Act of 2002, as amended (19 U.S.C. 2071 note), for any inbound aircraft required to enter under § 122.41, that will have commer- cial cargo aboard, Customs and Border Protection (CBP) must electronically receive from the inbound air carrier and, if applicable, an approved party as specified in paragraph (c)(1) of this sec- tion, certain information concerning the incoming cargo, as enumerated, re- spectively, in paragraphs (d)(1) and (d)(2) of this section. The CBP must re- ceive such information no later than the time frame prescribed in paragraph (b) of this section. The advance elec- tronic transmission of the required cargo information to CBP must be ef-
fected through a CBP-approved elec- tronic data interchange system.
(1) Cargo remaining aboard aircraft; cargo to be entered under bond. Air cargo arriving from and departing for a for- eign country on the same through flight and cargo that is unladen from the arriving aircraft and entered, in bond, for exportation, or for transpor- tation and exportation (see subpart J of this part), are subject to the advance electronic information filing require- ment under paragraph (a) of this sec- tion.
(2) Diplomatic Pouches and Diplomatic Cargo. When goods comprising a diplo- matic or consular bag (including cargo shipments, containers, and the like identified as Diplomatic Pouch) that belong to the United States or to a for- eign government are shipped under an air waybill, such cargo is subject to the advance reporting requirements, but the description of the shipment as Dip- lomatic Pouch will be sufficient detail for description. Shipments identified as Diplomatic Cargo, such as office sup- plies or unaccompanied household goods, are subject to the advance re- porting requirements of paragraph (a) of this section.
(b) Time frame for presenting data—(1) Nearby foreign areas. In the case of air- craft under paragraph (a) of this sec- tion that depart for the United States from any foreign port or place in North America, including locations in Mex- ico, Central America, South America (from north of the Equator only), the Caribbean, and Bermuda, CBP must re- ceive the required cargo information no later than the time of the departure of the aircraft for the United States (the trigger time is no later than the time that wheels are up on the aircraft, and the aircraft is en route directly to the United States).
(2) Other foreign areas. In the case of aircraft under paragraph (a) of this sec- tion that depart for the United States from any foreign area other than that specified in paragraph (b)(1) of this sec- tion, CBP must receive the required cargo information no later than 4 hours prior to the arrival of the air- craft in the United States.
(c) Party electing to file advance elec- tronic cargo data—(1) Other filer. In ad- dition to incoming air carriers for
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whom participation is mandatory, one of the following parties meeting the qualifications of paragraph (c)(2) of this section, may elect to transmit to CBP the electronic data for incoming cargo that is listed in paragraph (d)(2) of this section:
(i) An Automated Broker Interface (ABI) filer (importer or its Customs broker) as identified by its ABI filer code;
(ii) A Container Freight Station/ deconsolidator as identified by its FIRMS (Facilities Information and Re- sources Management System) code;
(iii) An Express Consignment Carrier Facility as identified by its FIRMS code; or,
(iv) An air carrier as identified by its carrier IATA (International Air Trans- port Association) code, that arranged to have the incoming air carrier trans- port the cargo to the United States.
(2) Eligibility. To be qualified to file cargo information electronically, a party identified in paragraph (c)(1) of this section must establish the commu- nication protocol required by CBP for properly presenting cargo information through the approved data interchange system. Also, other than a broker or an importer (see § 113.62(k)(2) of this chap- ter), the party must possess a Customs international carrier bond containing all the necessary provisions of § 113.64 of this chapter.
(3) Nonparticipation by other party. If another party as specified in paragraph (c)(1) of this section does not partici- pate in advance electronic cargo infor- mation filing, the party that arranges for and/or delivers the cargo shipment to the incoming carrier must fully dis- close and present to the carrier the cargo information listed in paragraph (d)(2) of this section; and the incoming carrier, on behalf of the party, must present this information electronically to CBP under paragraph (a) of this sec- tion.
(4) Required information in possession of third party. Any other entity in pos- session of required cargo data that is not the incoming air carrier or a party described in paragraph (c)(1) of this section must fully disclose and present the required data for the inbound air cargo to either the air carrier or other
electronic filer, as applicable, which must present such data to CBP.
(5) Party receiving information believed to be accurate. Where the party elec- tronically presenting the cargo infor- mation required in paragraph (d) of this section receives any of this infor- mation from another party, CBP will take into consideration how, in accord- ance with ordinary commercial prac- tices, the presenting party acquired such information, and whether and how the presenting party is able to verify this information. Where the presenting party is not reasonably able to verify such information, CBP will permit the party to electronically present the in- formation on the basis of what that party reasonably believes to be true.
(d) Non-consolidated/consolidated ship- ments. For non-consolidated shipments, the incoming air carrier must transmit to CBP all of the information for the air waybill record, as enumerated in paragraph (d)(1) of this section. For consolidated shipments: the incoming air carrier must transmit to CBP the information listed in paragraph (d)(1) of this section that is applicable to the master air waybill; and the air carrier must transmit cargo information for all associated house air waybills as enumerated in paragraph (d)(2) of this section, unless another party as de- scribed in paragraph (c)(1) of this sec- tion electronically transmits this in- formation directly to CBP.
(1) Cargo information from air carrier. The incoming air carrier must present to CBP the following data elements for inbound air cargo (an ‘‘M’’ next to any listed data element indicates that the data element is mandatory in all cases; a ‘‘C’’ next to the listed data element indicates that the data element is con- ditional and must be transmitted to CBP only if the particular information pertains to the inbound cargo):
(i) Air waybill number (M) (The air waybill number is the International Air Transport Association (IATA) standard 11-digit number);
(ii) Trip/flight number (M); (iii) Carrier/ICAO (International Civil
Aviation Organization) code (M) (The approved electronic data interchange system supports both 3- and 2-char- acter ICAO codes, provided that the
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final digit of the 2-character code is not a numeric value);
(iv) Airport of arrival (M) (The 3- alpha character ICAO code cor- responding to the first airport of ar- rival in the Customs territory of the United States (for example, Chicago O’Hare = ORD; Los Angeles Inter- national Airport = LAX));
(v) Airport of origin (M) (The 3-alpha character ICAO code corresponding to the airport from which a shipment began its transportation by air to the United States (for example, if a ship- ment began its transportation from Hong Kong (HKG), and it transits through Narita, Japan (NRT), en route to the United States, the airport of ori- gin is HKG, not NRT));
(vi) Scheduled date of arrival (M); (vii) Total quantity based on the
smallest external packing unit (M) (for example, 2 pallets containing 50 pieces each would be considered as 100, not 2);
(viii) Total weight (M) (may be ex- pressed in either pounds or kilograms);
(ix) Precise cargo description (M) (for consolidated shipments, the word ‘‘Consolidation’’ is a sufficient descrip- tion for the master air waybill record; for non-consolidated shipments, a pre- cise cargo description or the 6-digit Harmonized Tariff Schedule (HTS) number must be provided (generic de- scriptions, specifically those such as ‘‘FAK’’ (‘‘freight of all kinds’’), ‘‘gen- eral cargo’’, and ‘‘STC’’ (‘‘said to con- tain’’) are not acceptable));
(x) Shipper name and address (M) (for consolidated shipments, the identity of the consolidator, express consignment or other carrier, is sufficient for the master air waybill record; for non-con- solidated shipments, the name of the foreign vendor, supplier, manufacturer, or other similar party is acceptable (and the address of the foreign vendor, etc., must be a foreign address); by con- trast, the identity of a carrier, freight forwarder or consolidator is not accept- able);
(xi) Consignee name and address (M) (for consolidated shipments, the iden- tity of the container station, express consignment or other carrier is suffi- cient for the master air waybill record; for non-consolidated shipments, the name and address of the party to whom the cargo will be delivered is required,
with the exception of ‘‘FROB’’ (Foreign Cargo Remaining On Board); this party need not be located at the arrival or destination port);
(xii) Consolidation identifier (C); (xiii) Split shipment indicator (C)
(see paragraph (d)(3) of this section for the specific data elements that must be presented to CBP in the case of a split shipment);
(xiv) Permit to proceed information (C) (this element includes the permit- to-proceed destination airport (the 3- alpha character ICAO code cor- responding to the permit-to-proceed destination airport); and the scheduled date of arrival at the permit-to-proceed destination airport);
(xv) Identifier of other party which is to submit additional air waybill infor- mation (C);
(xvi) In-bond information (C) (this data element includes the destination airport; the international/domestic identifier (the in-bond type indicator); the in-bond control number, if there is one (C); and the onward carrier identi- fier, if applicable (C)); and
(xvii) Local transfer facility (C) (this facility is a Container Freight Station as identified by its FIRMS code, or the warehouse of another air carrier as identified by its carrier code).
(2) Cargo information from carrier or other filer. The incoming air carrier must present the following additional information to CBP for the incoming cargo, unless another party as specified in paragraph (c)(1) of this section elects to present this information di- rectly to CBP. Information for all house air waybills under a single mas- ter air waybill consolidation must be presented electronically to CBP by the same party. (An ‘‘M’’ next to any listed data element indicates that the data element is mandatory in all cases; a ‘‘C’’ next to any listed data element in- dicates that the data element is condi- tional and must be transmitted to CBP only if the particular information per- tains to the inbound cargo):
(i) The master air waybill number and the associated house air waybill number (M) (the house air waybill number may be up to 12 alphanumeric characters (each alphanumeric char- acter that is indicated on the paper
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house air waybill document must be in- cluded in the electronic transmission; alpha characters may not be elimi- nated));
(ii) Foreign airport of origin (M) (The 3-alpha character ICAO code cor- responding to the airport from which a shipment began its transportation by air to the United States (for example, if a shipment began its transportation from Hong Kong (HKG), and it transits through Narita, Japan (NRT), en route to the United States, the airport of ori- gin is HKG, not NRT));
(iii) Cargo description (M) (a precise description of the cargo or the 6-digit Harmonized Tariff Schedule (HTS) number must be provided);
(iv) Total quantity based on the smallest external packing unit (M) (for example, 2 pallets containing 50 pieces each would be considered as 100, not 2);
(v) Total weight of cargo (M) (may be expressed in either pounds or kilo- grams);
(vi) Shipper name and address (M) (the name of the foreign vendor, sup- plier, manufacturer, or other similar party is acceptable (and the address of the foreign vendor, etc., must be a for- eign address); by contrast, the identity of a carrier, freight forwarder or consolidator is not acceptable);
(vii) Consignee name and address (M) (the name and address of the party to whom the cargo will be delivered in the United States, with the exception of ‘‘FROB’’ (Foreign Cargo Remaining On Board); this party need not be located at the arrival or destination port); and
(viii) In-bond information (C) (this data element includes the destination airport; the international/domestic identifier (the in-bond type indicator); the in-bond control number, if there is one (C); and the onward carrier identi- fier, if applicable (C)).
(3) Additional cargo information from air carrier; split shipment. When the in- coming air carrier elects to transport cargo covered under a single consoli- dated air waybill on more than one air- craft as a split shipment (see § 141.57 of this chapter), the carrier must report the following additional information for each house air waybill covered under the consolidation (An ‘‘M’’ next to any listed data element indicates that the data element is mandatory in
all cases; a ‘‘C’’ next to any listed data element indicates that the data ele- ment is conditional and must be trans- mitted to CBP only if the particular in- formation pertains to the inbound cargo):
(i) The master and house air waybill number (M) (The master air waybill number is the IATA standard 11-digit number; the house air waybill number may be up to 12 alphanumeric char- acters (each alphanumeric number that is indicated on the paper house air waybill must be included in the elec- tronic transmission; alpha characters may not be eliminated));
(ii) The trip/flight number (M); (iii) The carrier/ICAO code (M) (The
approved electronic data interchange system supports both 3- and 2-char- acter ICAO codes, provided that the final digit of the 2-character code is not a numeric value);
(iv) The airport of arrival (M) (The 3- alpha character ICAO code cor- responding to the first airport of ar- rival in the Customs territory of the United States (for example, Chicago O’Hare = ORD; Los Angeles Inter- national Airport = LAX));
(v) The airport of origin (M) (The 3- alpha character ICAO code cor- responding to the airport from which a shipment began its transportation by air to the United States (for example, if a shipment began its transportation from Hong Kong (HKG), and it transits through Narita, Japan (NRT), en route to the United States, the airport of ori- gin is HKG, not NRT));
(vi) Scheduled date of arrival (M); (vii) The total quantity of the cargo
covered by the house air waybill based on the smallest external packing unit (M) (For example, 2 pallets containing 50 pieces each would be considered as 100, not 2);
(viii) The total weight of the cargo covered by the house air waybill (M) (May be expressed in either pounds or kilograms);
(ix) Description (M) (This description should mirror the precise level of cargo description information that is fur- nished to the incoming carrier by the other electronic filer, if applicable (see paragraph (c)(1) of this section));
(x) Permit-to-proceed information (C) (This element includes the permit-to-
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proceed destination airport (the 3- alpha character ICAO code cor- responding to the permit-to-proceed destination airport); and the scheduled date of arrival at the permit-to-proceed destination airport);
(xi) Boarded quantity (C) (The quan- tity of the cargo covered by the house air waybill (see paragraph (d)(3)(vii) of this section) that is included in the in- coming portion of the split shipment); and
(xii) Boarded weight (C) (The weight of the cargo covered by the house air waybill (see paragraph (d)(3)(viii) of this section) that is included in the in- coming portion of the split shipment).
[CBP Dec. 03–32, 68 FR 68170, Dec. 5, 2003, as amended at CBP Dec. 08–46, 73 FR 71782, Nov. 25, 2008; CBP Dec. 09–39, 74 FR 52677, Oct. 14, 2009]
§ 122.49 Correction of air cargo mani- fest or air waybill.
(a) Shortages—(1) Reporting. Shortages (merchandise listed on the manifest or air waybill but not found) shall be re- ported to the port director by the air- craft commander or agent. The report shall be made:
(i) On a Customs Form 5931, filled out and signed by the importer and the im- porting or bonded carrier; or
(ii) On a Customs Form 5931, filled out and signed by the importer alone under § 158.3 of this chapter; or
(iii) On a copy of the cargo manifest, which shall be marked ‘‘Shortage Dec- laration,’’ and must list the merchan- dise involved and the reasons for the shortage.
(2) Time to file. Shortages shall be re- ported within the time set out in part 158 of this chapter, or within 30 days of aircraft entry.
(3) Evidence. The aircraft commander or agent shall supply proof of the claim that:
(i) Shortage merchandise was not im- ported, or was properly disposed of; or
(ii) That corrective action was taken. This proof shall be kept in the carrier file for one year from the date of air- craft entry.
(b) Overages—(1) Reporting. Overages (merchandise found but not listed on the manifest or air waybill) shall be re- ported to the port director by the air-
craft commander or agent. The report shall be made:
(i) On a Customs Form 5931; or (ii) On a separate copy of the cargo
manifest which is marked ‘‘Post Entry’’ and lists the overage merchan- dise and the reason for the overage.
(2) Time to file. Overages shall be re- ported within 30 days of aircraft entry.
(3) Evidence. Satisfactory proof of the reasons for the overage shall be kept on file by the carrier for one year from the date of the report.
(c) Statement on cargo manifest. If the air cargo manifest is used to report shortages or overages, the Shortages Declaration or Post Entry must in- clude the signed statement of the air- craft commander or agent as follows:
I declare to the best of my knowledge and belief that the discrepancy described herein occurred for the reason stated. I also certify that evidence to support the explanation of the discrepancy will be retained in the car- rier’s files for a period of at least one year and will be made available to Customs on de- mand. Signature llllllllllllllllll (Aircraft Commander or Agent)
(d) Notice by port director. The port di- rector shall immediately notify the aircraft commander or agent of any shortages or overages that were not re- ported by the aircraft commander or agent. Notice shall be given by sending a copy of Customs Form 5931 to the air- craft commander or agent, or in any other appropriate way. The aircraft commander or agent shall make a sat- isfactory reply within 30 days of entry of the aircraft or receipt of the notice, whichever is later.
(e) Correction not required. A correc- tion in the manifest or air waybill is not required if:
(1) The port director is satisfied that the difference between the quantity of bulk merchandise listed on the mani- fest or air waybill, and the quantity unladen, is the usual difference caused by absorption or loss of moisture, tem- perature, faulty weighing at the air- port, or other such reason; and
(2) The marks or numbers on mer- chandise packages are different from the marks or numbers listed on the cargo manifest for those packages if the quantity and description of the merchandise is given correctly.
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(f) Statutes applicable. If an aircraft arrives in the U.S. from a foreign area with merchandise and unaccompanied baggage for which a manifest or air waybill must be filed, section 584 (con- cerning manifest violations), Tariff Act of 1930, as amended (19 U.S.C. 1584, ap- plies.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 98–74, 63 FR 51288, Sept. 25, 1998]
§ 122.49a Electronic manifest require- ment for passengers onboard com- mercial aircraft arriving in the United States.
(a) Definitions. The following defini- tions apply for purposes of this section:
Appropriate official. ‘‘Appropriate offi- cial’’ means the master or commanding officer, or authorized agent, owner, or consignee, of a commercial aircraft; this term and the term ‘‘carrier’’ are sometimes used interchangeably.
Carrier. See ‘‘Appropriate official.’’ Commercial aircraft. ‘‘Commercial air-
craft’’ has the meaning provided in § 122.1(d) and includes aircraft engaged in passenger flight operations, all- cargo flight operations, and dual flight operations involving the transport of both cargo and passengers.
Crew Member. ‘‘Crew member’’ means a person serving on board an aircraft in good faith in any capacity required for normal operation and service of the flight. In addition, the definition of ‘‘crew member’’ applicable to this sec- tion should not be applied in the con- text of other customs laws, to the ex- tent this definition differs from the meaning of ‘‘crew member’’ con- templated in such other customs laws.
Departure. ‘‘Departure’’ means the point at which the wheels are up on the aircraft and the aircraft is en route di- rectly to its destination.
Emergency. ‘‘Emergency’’ means, with respect to an aircraft arriving at a U.S. port due to an emergency, an ur- gent situation due to a mechanical, medical, or security problem affecting the flight, or to an urgent situation af- fecting the non-U.S. port of destination that necessitates a detour to a U.S. port.
Passenger. ‘‘Passenger’’ means any person, including a Federal Aviation Administration (FAA) Aviation Secu-
rity Inspector with valid credentials and authorization, being transported on a commercial aircraft who is not a crew member.
Securing the aircraft. ‘‘Securing the aircraft’’ means the moment the air- craft’s doors are closed and secured for flight.
United States. ‘‘United States’’ means the continental United States, Alaska, Hawaii, Puerto Rico, Guam, the Com- monwealth of the Northern Mariana Is- lands (beginning November 28, 2009), and the Virgin Islands of the United States.
(b) Electronic arrival manifest—(1) Gen- eral (i)—Basic requirement. Except as provided in paragraph (c) of this sec- tion, an appropriate official of each commercial aircraft (carrier) arriving in the United States from any place outside the United States must trans- mit to the Advance Passenger Informa- tion System (APIS; referred to in this section as the Customs and Border Pro- tection (CBP) system), the electronic data interchange system approved by CBP for such transmissions, an elec- tronic passenger arrival manifest cov- ering all passengers checked in for the flight. A passenger manifest must be transmitted separately from a crew member manifest required under § 122.49b if transmission is in U.S. EDIFACT format. The passenger mani- fest must be transmitted to the CBP system at the place and time specified in paragraph (b)(2) of this section, in the manner set forth under paragraph (b)(1)(ii) of this section.
(ii) Transmission of manifests. A car- rier required to make passenger arrival manifest transmissions to the CBP sys- tem under paragraph (b)(1)(i) of this section must make the required trans- missions, covering all passengers checked in for the flight, in accordance with either paragraph (b)(1)(ii)(A), (B), (C), or (D) of this section, as follows:
(A) Non-interactive batch transmission option. A carrier that chooses not to transmit required passenger manifests by means of a CBP-certified interactive electronic transmission system under paragraph (b)(1)(ii)(B), (C), or (D) of this section must make batch manifest transmissions in accordance with this paragraph (b)(1)(ii)(A) by means of a
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non-interactive electronic trans- mission system approved by CBP. The carrier may make a single, complete batch manifest transmission con- taining the data required under para- graph (b)(3) of this section for all pas- sengers checked in for the flight or two or more partial batch manifest trans- missions, each containing the required data for the identified passengers and which together cover all passengers checked in for the flight. After receipt of the manifest information, the CBP system will perform an initial security vetting of the data and send to the car- rier by a non-interactive transmission method a ‘‘not-cleared’’ instruction for passengers identified as requiring addi- tional security analysis and a ‘‘se- lectee’’ instruction for passengers re- quiring secondary screening (e.g., addi- tional examination of the person and/or his baggage) under applicable Trans- portation Security Administration (TSA) requirements. The carrier must designate as a ‘‘selectee’’ any pas- senger so identified during initial secu- rity vetting, in accordance with appli- cable TSA requirements. The carrier must not issue a boarding pass to, or load the baggage of, any passenger sub- ject to a ‘‘not-cleared’’ instruction and must contact TSA to seek resolution of the ‘‘not-cleared’’ instruction by pro- viding, if necessary, additional rel- evant information relative to the ‘‘not- cleared’’ passenger. TSA will notify the carrier if the ‘‘not-cleared’’ passenger is cleared for boarding or downgraded to ‘‘selectee’’ status based on the addi- tional security analysis.
(B) Interactive batch transmission op- tion. A carrier, upon obtaining CBP certification, in accordance with para- graph (b)(1)(ii)(E) of this section, may make manifest transmissions by means of an interactive electronic trans- mission system configured for batch transmission of data and receipt from the CBP system of appropriate mes- sages. A carrier operating under this paragraph must make transmissions by transmitting a single, complete batch manifest containing the data required under paragraph (b)(3) of this section for all passengers checked in for the flight or two or more partial batch manifests, each containing the re- quired data for the identified pas-
sengers and which together cover all passengers checked in for the flight. In the case of connecting passengers ar- riving at the connecting airport al- ready in possession of boarding passes for a U.S.-bound flight whose data have not been collected by the carrier, the carrier must transmit all required manifest data for these passengers when they arrive at the gate, or some other suitable place designated by the carrier, for the flight. After receipt of the manifest information, the CBP sys- tem will perform an initial security vetting of the data and send to the car- rier by interactive electronic trans- mission, as appropriate, a ‘‘cleared’’ in- struction for passengers not matching against the watch list, a ‘‘not-cleared’’ instruction for passengers identified as requiring additional security analysis, and a ‘‘selectee’’ instruction for pas- sengers who require secondary screen- ing (e.g., additional examination of the person and/or his baggage) under appli- cable TSA requirements. The carrier must designate as a ‘‘selectee’’ any passenger so identified during initial security vetting, in accordance with applicable TSA requirements. The car- rier must not issue a boarding pass to, or load the baggage of, any passenger subject to a ‘‘not-cleared’’ instruction and, in the case of connecting pas- sengers (as described in this para- graph), the carrier must not board or load the baggage of any such passenger until the CBP system returns a ‘‘cleared’’ or ‘‘selectee’’ response for that passenger. Where a ‘‘selectee’’ in- struction is received for a connecting passenger, the carrier must ensure that such passenger undergoes secondary screening before boarding. The carrier must seek resolution of a ‘‘not- cleared’’ instruction by contacting TSA and providing, if necessary, addi- tional relevant information relative to the ‘‘not-cleared’’ passenger. Upon completion of the additional security analysis, TSA will notify the carrier if a ‘‘not-cleared’’ passenger is cleared for boarding or downgraded to ‘‘selectee’’ status based on the additional security analysis. No later than 30 minutes after the securing of the aircraft, the carrier must transmit to the CBP sys- tem a message reporting any pas- sengers who checked in but were not
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onboard the flight. The message must identify the passengers by a unique identifier selected or devised by the carrier or by specific passenger data (e.g., name) and may contain the unique identifiers or data for all pas- sengers onboard the flight or for only those passengers who checked in but were not onboard the flight.
(C) Interactive individual passenger in- formation transmission option. A carrier, upon obtaining CBP certification, in accordance with paragraph (b)(1)(ii)(E) of this section, may make manifest transmissions by means of an inter- active electronic transmission system configured for transmitting individual passenger data for each passenger and for receiving from the CBP system ap- propriate messages. A carrier operating under this paragraph must make such transmissions as individual passengers check in for the flight or, in the case of connecting passengers arriving at the connecting airport already in posses- sion of boarding passes for a U.S.- bound flight whose data have not been collected by the carrier, as these con- necting passengers arrive at the gate, or some other suitable place designated by the carrier, for the flight. With each transmission of manifest information by the carrier, the CBP system will perform an initial security vetting of the data and send to the carrier by interactive electronic transmission, as appropriate, a ‘‘cleared’’ instruction for passengers not matching against the watch list, a ‘‘not-cleared’’ instruc- tion for passengers identified as requir- ing additional security analysis, and a ‘‘selectee’’ instruction for passengers requiring secondary screening (e.g., ad- ditional examination of the person and/ or his baggage) under applicable TSA requirements. The carrier must des- ignate as a ‘‘selectee’’ any passenger so identified during initial security vet- ting, in accordance with applicable TSA requirements. The carrier must not issue a boarding pass to, or load the baggage of, any passenger subject to a ‘‘not-cleared’’ instruction and, in the case of connecting passengers (as described in this paragraph), must not board or load the baggage of any such passenger until the CBP system re- turns a ‘‘cleared’’ or ‘‘selectee’’ re- sponse for that passenger. Where a
‘‘selectee’’ instruction is received by the carrier for a connecting passenger, the carrier must ensure that secondary screening of the passenger is conducted before boarding. The carrier must seek resolution of a ‘‘not-cleared’’ instruc- tion by contacting TSA and providing, if necessary, additional relevant infor- mation relative to the ‘‘not-cleared’’ passenger. Upon completion of the ad- ditional security analysis, TSA will no- tify the carrier if a ‘‘not-cleared’’ pas- senger is cleared for boarding or down- graded to ‘‘selectee’’ status based on the additional security analysis. No later than 30 minutes after the secur- ing of the aircraft, the carrier must transmit to the CBP system a message reporting any passengers who checked in but were not onboard the flight. The message must identify the passengers by a unique identifier selected or de- vised by the carrier or by specific pas- senger data (name) and may contain the unique identifiers or data for all passengers onboard the flight or for only those passengers who checked in but were not onboard the flight.
(D) Combined use of interactive meth- ods. If certified to do so, a carrier may make transmissions under both para- graphs (b)(1)(ii)(B) and (C) of this sec- tion for a particular flight or for dif- ferent flights.
(E) Certification. Before making any required manifest transmissions under paragraph (b)(1)(ii)(B) or (C) of this sec- tion, a carrier must subject its elec- tronic transmission system to CBP testing, and CBP must certify that the carrier’s system is then presently capa- ble of interactively communicating with the CBP system for effective transmission of manifest data and re- ceipt of appropriate messages in ac- cordance with those paragraphs.
(2) Place and time for submission. The appropriate official specified in para- graph (b)(1)(i) of this section (carrier) must transmit the arrival manifest or manifest data as required under para- graphs (b)(1)(i) and (ii) of this section to the CBP system (CBP Data Center, CBP Headquarters), in accordance with the following:
(i) For manifests transmitted under paragraph (b)(1)(ii)(A) or (B) of this section, no later than 30 minutes prior to the securing of the aircraft;
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(ii) For manifest information trans- mitted under paragraph (b)(1)(ii)(C) of this section, no later than the securing of the aircraft;
(iii) For flights not originally des- tined to the United States but diverted to a U.S. port due to an emergency, no later than 30 minutes prior to arrival; in cases of non-compliance, CBP will take into consideration whether the carrier was equipped to make the transmission and the circumstances of the emergency situation; and
(iv) For an aircraft operating as an air ambulance in service of a medical emergency, no later than 30 minutes prior to arrival; in cases of non-compli- ance, CBP will take into consideration whether the carrier was equipped to make the transmission and the cir- cumstances of the emergency situa- tion.
(3) Information required. Except as provided in paragraph (c) of this sec- tion, the electronic passenger arrival manifest required under paragraph (b)(1) of this section must contain the following information for all pas- sengers, except that the information specified in paragraphs (b)(iv), (v), (x), (xii), (xiii), and (xiv) of this section must be included on the manifest only on or after October 4, 2005:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F = female; M = male); (iv) Citizenship; (v) Country of residence; (vi) Status on board the aircraft; (vii) Travel document type (e.g., P =
passport; A = alien registration card); (viii) Passport number, if a passport
is required; (ix) Passport country of issuance, if a
passport is required; (x) Passport expiration date, if a
passport is required; (xi) Alien registration number, where
applicable; (xii) Address while in the United
States (number and street, city, state, and zip code), except that this informa- tion is not required for U.S. citizens, lawful permanent residents, or persons who are in transit to a location outside the United States;
(xiii) Passenger Name Record loca- tor, if available;
(xiv) International Air Transport As- sociation (IATA) code of foreign port/ place where transportation to the United States began (foreign port code);
(xv) IATA code of port/place of first arrival (arrival port code);
(xvi) IATA code of final foreign port/ place of destination for in-transit pas- sengers (foreign port code);
(xvii) Airline carrier code; (xviii) Flight number; and (xix) Date of aircraft arrival. (c) Exception. The electronic pas-
senger arrival manifest specified in paragraph (b)(1) of this section is not required for active duty U.S. military personnel being transported as pas- sengers on arriving Department of De- fense commercial chartered aircraft.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the passenger with the travel docu- ment information it is transmitting to CBP in accordance with this section in order to ensure that the information is correct, the document appears to be valid for travel to the United States, and the passenger is the person to whom the travel document was issued.
(e) Sharing of manifest information. In- formation contained in the passenger manifests required by this section that is received by CBP electronically may, upon request, be shared with other Federal agencies for the purpose of pro- tecting national security. CBP may also share such information as other- wise authorized by law.
[CBP Dec. 05–12, 70 FR 17852, Apr. 7, 2005, as amended by CBP Dec. 07–64, 72 FR 48342, Aug. 23, 2007; CBP Dec. No. 09–02, 74 FR 2836, Jan. 16, 2009; CBP Dec. 09–14, 74 FR 25388, May 28, 2009]
§ 122.49b Electronic manifest require- ment for crew members and non- crew members onboard commercial aircraft arriving in, continuing within, and overflying the United States.
(a) Definitions. The definitions set forth below apply for purposes of this section. The definitions set forth in § 122.49a(a), other than those for the
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terms set forth below, also apply for purposes of this section:
All-cargo flight. ‘‘All-cargo flight’’ means a flight in operation for the pur- pose of transporting cargo which has onboard only ‘‘crew members’’ and ‘‘non-crew members’’ as defined in this paragraph.
Carrier. In addition to the meaning set forth in § 122.49a(a), ‘‘carrier’’ in- cludes each entity that is an ‘‘aircraft operator’’ or ‘‘foreign air carrier’’ with a security program under 49 CFR part 1544, 1546, or 1550 of the Transportation Security Administration regulations.
Crew member. ‘‘Crew member’’ means a pilot, copilot, flight engineer, airline management personnel authorized to travel in the cockpit, cabin crew, and relief crew (also known as ‘‘deadheading crew’’). However, for all other purposes of immigration law and documentary evidence required under the Immigration and Nationality Act (8 U.S.C. 1101, et seq.), ‘‘crew member’’ (or ‘‘crewman’’) means a person serving onboard an aircraft in good faith in any capacity required for the normal operation and service of the flight (8 U.S.C. 1101(a)(10) and (a)(15)(D), as ap- plicable). In addition, the definition of ‘‘crew member’’ applicable to this sec- tion should not be applied in the con- text of other customs laws, to the ex- tent this definition differs from the meaning of ‘‘crew member’’ con- templated in such other customs laws.
Flight continuing within the United States. ‘‘Flight continuing within the United States’’ refers to the domestic leg of a flight operated by a foreign air carrier that originates at a foreign port or place, arrives at a U.S. port, and then continues to a second U.S. port.
Flight overflying the United States. ‘‘Flight overflying the United States’’ refers to a flight departing from a for- eign port or place that enters the terri- torial airspace of the U.S. en route to another foreign port or place.
Non-crew member. ‘‘Non-crew mem- ber’’ means air carrier employees and their family members and persons trav- eling onboard a commercial aircraft for the safety of the flight (such as an ani- mal handler when animals are on- board). The definition of ‘‘non-crew member’’ is limited to all-cargo flights. (On a passenger or dual flight (pas-
sengers and cargo), air carrier employ- ees, their family members, and persons onboard for the safety of the flight are considered passengers.)
Territorial airspace of the United States. ‘‘Territorial airspace of the United States’’ means the airspace over the United States, its territories, and possessions, and the airspace over the territorial waters between the United States coast and 12 nautical miles from the coast.
(b) Electronic arrival manifest—(1) Gen- eral requirement. Except as provided in paragraph (c) of this section, an appro- priate official of each commercial air- craft operating a flight arriving in or overflying the United States, from a foreign port or place, or continuing within the United States after arriving at a U.S. port from a foreign port or place, must transmit to Customs and Border Protection (CBP) an electronic crew member manifest and, for all- cargo flights only, an electronic non- crew member manifest covering any crew members and non-crew members onboard. Each manifest must be trans- mitted to CBP at the place and time specified in paragraph (b)(2) of this sec- tion by means of an electronic data interchange system approved by CBP and must set forth the information specified in paragraph (b)(3) of this sec- tion. Where both a crew member mani- fest and a non-crew member manifest are required with respect to an all- cargo flight, they must be combined in one manifest covering both crew mem- bers and non-crew members. Where a passenger arrival manifest under § 122.49a and a crew member arrival manifest under this section are re- quired, they must be transmitted sepa- rately if the transmission is in US EDIFACT format.
(2) Place and time for submission; cer- tification; changes to manifest. (i) Place and time for submission. The appropriate official specified in paragraph (b)(1) of this section must transmit the elec- tronic manifest required under para- graph (b)(1) of this section to the CBP Data Center, CBP Headquarters:
(A) With respect to aircraft arriving in and overflying the United States, no later than 60 minutes prior to depar- ture of the aircraft from the foreign
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port or place of departure, and with re- spect to aircraft continuing within the United States, no later than 60 minutes prior to departure from the U.S. port of arrival;
(B) For a flight not originally des- tined to arrive in the United States but diverted to a U.S. port due to an emer- gency, no later than 30 minutes prior to arrival; in cases of noncompliance, CBP will take into consideration that the carrier was not equipped to make the transmission and the cir- cumstances of the emergency situa- tion; and
(C) For an aircraft operating as an air ambulance in service of a medical emergency, no later than 30 minutes prior to arrival;
(ii) Certification. Except as provided in paragraph (c) of this section, the ap- propriate official, by transmitting the manifest as required under paragraph (b)(1) of this section, certifies that the flight’s crew members and non-crew members are included, respectively, on the master crew member list or master non-crew member list previously sub- mitted to CBP in accordance with § 122.49c. If a crew member or non-crew member on the manifest is not also in- cluded on the appropriate master list, the flight may be, as appropriate, de- nied clearance to depart, diverted from arriving in the United States, or denied clearance to enter the territorial air- space of the United States.
(iii) Changes to manifest. The appro- priate official is obligated to make nec- essary changes to the crew member or non-crew member manifest after trans- mission of the manifest to CBP. Nec- essary changes include adding a name, with other required information, to the manifest or amending previously sub- mitted information. If changes are sub- mitted less than 60 minutes before scheduled flight departure, the air car- rier must receive approval from TSA before allowing the flight to depart or the flight may be, as appropriate, de- nied clearance to depart, diverted from arriving in the United States, or denied clearance to enter the territorial air- space of the United States.
(3) Information required. The elec- tronic crew member and non-crew member manifests required under para- graph (b)(1) of this section must con-
tain the following information for all crew members and non-crew members, except that the information specified in paragraphs (b)(iii), (v), (vi), (vii), (xiii), (xv), and (xvi) of this section must be included on the manifest only on or after October 4, 2005:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Place of birth (city, state—if ap-
plicable, country); (iv) Gender (F = female; M = male); (v) Citizenship; (vi) Country of residence; (vii) Address of permanent residence; (viii) Status on board the aircraft; (ix) Pilot certificate number and
country of issuance (if applicable); (x) Travel document type (e.g., P =
passport; A = alien registration card); (xi) Passport number, if a passport is
required; (xii) Passport country of issuance, if
a passport is required; (xiii) Passport expiration date, if a
passport is required; (xiv) Alien registration number,
where applicable; (xv) Passenger Name Record locator,
if available; (xvi) International Air Transport As-
sociation (IATA) code of foreign port/ place where transportation to the United States began or where the transportation destined to the terri- torial airspace of the United States began (foreign port code);
(xvii) IATA code of port/place of first arrival (arrival port code);
(xviii) IATA code of final foreign port/place of destination for (foreign port code);
(xix) Airline carrier code; (xx) Flight number; and (xxi) Date of aircraft arrival. (c) Exceptions. The electronic crew
member or non-crew member manifest requirement specified in paragraph (b)(1) of this section is subject to the following conditions:
(1) Federal Aviation Administration (FAA) Aviation Safety Inspectors with valid credentials and authorization are not subject to the requirement, but the manifest requirement of § 122.49a ap- plies to these inspectors on flights ar- riving in the United States, as they are
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considered passengers on arriving flights;
(2) For crew members traveling on- board an aircraft chartered by the U.S. Department of Defense that is arriving in the United States, the provisions of this section apply regarding electronic transmission of the manifest, except that:
(i) The manifest certification provi- sion of paragraph (b)(2)(ii) of this sec- tion is inapplicable; and
(ii) The TSA manifest change ap- proval requirement of paragraph (b)(2)(iii) of this section is inapplicable;
(3) For crew members traveling on- board an aircraft chartered by the U.S. Department of Defense that is con- tinuing a flight within the United States or overflying the United States, the manifest is not required;
(4) For non-crew members traveling onboard an all-cargo flight chartered by the U.S. Department of Defense that is arriving in the United States, the manifest is not required, but the mani- fest requirement of § 122.49a applies to these persons, as, in this instance, they are considered passengers on arriving flights; and
(5) For non-crew members traveling onboard an all-cargo flight chartered by the U.S. Department of Defense that is continuing a flight within the United States or overflying the United States, the manifest is not required.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the crew member or non-crew mem- ber with the travel document informa- tion it is transmitting to CBP in ac- cordance with this section in order to ensure that the information is correct, the document appears to be valid for travel to the United States, and the crew member or non-crew member is the person to whom the travel docu- ment was issued.
(e) Sharing of manifest information. In- formation contained in the crew mem- ber and non-crew member manifests re- quired by this section that is received by CBP electronically may, upon re- quest, be shared with other Federal agencies for the purpose of protecting
national security. CBP may also share such information as otherwise author- ized by law.
(f) Superseding amendments issued by TSA. One or more of the requirements of this section may be superseded by specific provisions of, amendments to, or alternative procedures authorized by TSA for compliance with an aviation security program, emergency amend- ment, or security directive issued by the TSA to an air carrier subject to 49 CFR part 1544, 1546, or 1550. The provi- sions or amendments will have super- seding effect only for the air carrier to which issued and only for the period of time specified in the provision or amendment.
[CBP Dec. 05–12, 70 FR 17852, Apr. 7, 2005]
§ 122.49c Master crew member list and master non-crew member list re- quirement for commercial aircraft arriving in, departing from, con- tinuing within, and overflying the United States.
(a) General requirement. Air carriers subject to the provisions of § 122.49b and § 122.75b, with respect to the flights covered in those sections, must elec- tronically transmit to Customs and Border Protection (CBP), by means of an electronic data interchange system approved by CBP, a master crew mem- ber list and a master non-crew member list containing the information set forth in paragraph (c) of this section covering, respectively, all crew mem- bers and non-crew members operating and servicing its flights. The initial transmission of a list must be made at least two days in advance of any flight a crew member or non-crew member on the list will be operating, serving on, or traveling on and must contain the information set forth in paragraph (c) of this section. After review of the master crew list and the master non- crew list by TSA, TSA will advise the carrier of any crew members or non- crew members that must be removed from the list. Only those persons on the TSA-approved master crew and master non-crew lists will be permitted to operate, serve on, or travel on flights covered by this section. Until a carrier becomes a participant in the CBP-approved electronic interchange
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system, it must submit the required in- formation in a format provided by TSA.
(b) Changes to master lists. After the initial transmission of the master crew member and non-crew member lists to CBP, the carrier is obligated to update the lists as necessary. To add a name to either list, along with the required information set forth in paragraph (c) of this section, or to add or change in- formation relative to a name already submitted, the carrier must transmit the information to CBP at least 24 hours in advance of any flight the added or subject crew member or non- crew member will be operating, serving on, or traveling on. A carrier must sub- mit deletions from the lists as expedi- tiously as possible.
(c) Master list information. The elec- tronic master crew lists required under paragraph (a) of this section must con- tain the following information with re- spect to each crew member or non-crew member that operates, serves on, or travels on a carrier’s flights that are covered by this section except that the information specified in paragraphs (c)(4), (5), (6), (7), and (10) of this sec- tion must be included on the manifest only on or after October 4, 2005:
(1) Full name (last, first, and, if available, middle);
(2) Gender; (3) Date of birth; (4) Place of birth (city, state—if ap-
plicable, and country); (5) Citizenship; (6) Country of residence; (7) Address of permanent residence; (8) Passport number, if passport re-
quired; (9) Passport country of issuance, if
passport required; (10) Passport expiration date, if pass-
port required; (11) Pilot certificate number and
country of issuance, if applicable; (12) Status onboard the aircraft. (d) Exception. The master crew mem-
ber and non-crew member list require- ments of this section do not apply to aircraft chartered by the U.S. Depart- ment of Defense.
(e) Superseding amendments issued by TSA. One or more of the requirements of this section may be superseded by specific provisions of, amendments to,
or alternative procedures authorized by TSA for compliance with an aviation security program, emergency amend- ment, or security directive issued by the TSA to an air carrier subject to the provisions of 49 CFR part 1544, 1546, or 1550. The amendments will have super- seding effect only for the air carrier to which issued and only for the period of time specified in the amendment.
[CBP Dec. 05–12, 70 FR 17854, Apr. 7, 2005]
§ 122.49d Passenger Name Record (PNR) information.
(a) General requirement. Each air car- rier, foreign and domestic, operating a passenger flight in foreign air transpor- tation to or from the United States, in- cluding flights to the United States where the passengers have already been pre-inspected or pre-cleared at the for- eign location for admission to the U.S., must, upon request, provide Customs with electronic access to certain Pas- senger Name Record (PNR) informa- tion, as defined and described in para- graph (b) of this section. In order to readily provide Customs with such ac- cess to requested PNR information, each air carrier must ensure that its electronic reservation/departure con- trol systems correctly interface with the U.S. Customs Data Center, Cus- toms Headquarters, as prescribed in paragraph (c)(1) of this section.
(b) PNR information defined; PNR in- formation that Customs may request—(1) PNR information defined. Passenger Name Record (PNR) information refers to reservation information contained in an air carrier’s electronic reserva- tion system and/or departure control system that sets forth the identity and travel plans of each passenger or group of passengers included under the same reservation record with respect to any flight covered by paragraph (a) of this section.
(2) PNR data that Customs may request. The air carrier, upon request, must provide Customs with electronic access to any and all PNR data elements re- lating to the identity and travel plans of a passenger concerning any flight under paragraph (a) of this section, to the extent that the carrier in fact pos- sesses the requested data elements in its reservation system and/or departure
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control system. There is no require- ment that the carrier collect any PNR information under this paragraph, that the carrier does not otherwise collect on its own and maintain in its elec- tronic reservation/departure control systems.
(c) Required carrier system interface with Customs Data Center to facilitate Customs retrieval of requested PNR data— (1) Carrier requirements for interface with Customs. Within the time specified in paragraph (c)(2) of this section, each air carrier must fully and effectively interface its electronic reservation/de- parture control systems with the U.S. Customs Data Center, Customs Head- quarters, in order to facilitate Customs ability to retrieve needed Passenger Name Record data from these elec- tronic systems. To effect this interface between the air carrier’s electronic res- ervation/departure control systems and the Customs Data Center, the carrier must:
(i) Provide Customs with an elec- tronic connection to its reservation system and/or departure control sys- tem. (This connection can be provided directly to the Customs Data Center, Customs Headquarters, or through a third party vendor that has such a con- nection to Customs.);
(ii) Provide Customs with the nec- essary airline reservation/departure control systems’ commands that will enable Customs to:
(A) Connect to the carrier’s reserva- tion/departure control systems;
(B) Obtain the carrier’s schedules of flights;
(C) Obtain the carrier’s passenger flight lists; and
(D) Obtain data for all passengers listed for a specific flight; and
(iii) Provide technical assistance to Customs as required for the continued full and effective interface of the car- rier’s electronic reservation/departure control systems with the Customs Data Center, in order to ensure the proper response from the carrier’s systems to requests for data that are made by Cus- toms.
(2) Time within which carrier must interface with Customs Data Center to fa- cilitate Customs access to requested PNR data. Any air carrier which has not taken steps to fully and effectively
interface its electronic reservation/de- parture control systems with the Cus- toms Data Center must do so, as pre- scribed in paragraphs (c)(1)(i)–(c)(1)(iii) of this section, within 30 days from the date that Customs contacts the carrier and requests that the carrier effect such an interface. After being con- tacted by Customs, if an air carrier de- termines it needs more than 30 days to properly interface its automated data- base with the Customs Data Center, it may apply in writing to the Assistant Commissioner, Office of Field Oper- ations (OFO) for an extension. Fol- lowing receipt of the application, the Assistant Commissioner, OFO, may, in writing, allow the carrier an extension of this period for good cause shown. The Assistant Commissioner’s decision as to whether and/or to what extent to grant such an extension is within the sole discretion of the Assistant Com- missioner and is final.
(d) Sharing of PNR information with other Federal agencies. Passenger Name Record information as described in paragraph (b)(2) of this section that is made available to Customs electroni- cally may, upon request, be shared with other Federal agencies for the purpose of protecting national security (49 U.S.C. 44909(c)(5)). Customs may also share such data as otherwise au- thorized by law.
[T.D. 02–33, 67 FR 42712, June 25, 2002. Redes- ignated by CBP Dec. 05–12, 70 FR 17852, Apr. 7, 2005]
§ 122.50 General order merchandise.
(a) Any merchandise or baggage regu- larly landed but not covered by a per- mit for its release shall be allowed to remain at the place of unlading until the fifteenth calendar day after land- ing. No later than 20 calendar days after landing, the pilot or owner of the aircraft or the agent thereof shall no- tify Customs of any such merchandise or baggage for which entry has not been made. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system. Failure to provide such notification may result in assessment of a monetary penalty of up to $1,000 per bill of lading against the pilot or owner of the aircraft or the
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agent thereof. If the value of the mer- chandise on the bill is less than $1,000, the penalty shall be equal to the value of such merchandise.
(b) Any merchandise or baggage that is taken into custody from an arriving carrier by any party under a Customs- authorized permit to transfer or in- bond entry may remain in the custody of that party for 15 calendar days after receipt under such permit to transfer or 15 calendar days after arrival at the port of destination. No later than 20 calendar days after receipt under the permit to transfer or 20 calendar days after arrival under bond at the port of destination, the party shall notify Cus- toms of any such merchandise or bag- gage for which entry has not been made. Such notification shall be pro- vided in writing or by any appropriate Customs-authorized electronic data interchange system. If the party fails to notify Customs of the unentered merchandise or baggage in the allotted time, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(c)(4) of this chapter).
(c) In addition to the notification to Customs required under paragraphs (a) and (b) of this section, the carrier (or any other party to whom custody of the unentered merchandise has been transferred by a Customs authorized permit to transfer or in-bond entry) shall provide notification of the pres- ence of such unreleased and unentered merchandise or baggage to a bonded warehouse certified by the port direc- tor as qualified to receive general order merchandise. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system and shall be provided within the applicable 20-day period specified in paragraph (a) or (b) of this section. It shall then be the re- sponsibility of the bonded warehouse proprietor to arrange for the transpor- tation and storage of the merchandise or baggage at the risk and expense of the consignee. The arriving carrier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry) is responsible for preparing a Customs Form (CF) 6043 (Delivery Ticket), or
other similar Customs document as designated by the port director or an electronic equivalent as authorized by Customs, to cover the proprietor’s re- ceipt of the merchandise and its trans- port to the warehouse from the custody of the arriving carrier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry) (see § 19.9 of this chap- ter). Any unentered merchandise or baggage shall remain the responsibility of the carrier, pilot, or person in charge of the importing aircraft, or the agent thereof, or party to whom the merchandise has been transferred under a Customs authorized permit to transfer or in-bond entry, until it is properly transferred from his control in accordance with this paragraph. If the party to whom custody of the unentered merchandise or baggage has been transferred by a Customs-author- ized permit to transfer or in-bond entry fails to notify a Customs-approved bonded warehouse of such merchandise or baggage within the applicable 20-cal- endar-day period, he may be liable for the payment of liquidated damages of $1,000 per bill of lading under the terms and conditions of his international car- rier or custodial bond (see §§ 113.63(b), 113.63(c) and 113.64(b) of this chapter).
(d) If the carrier or any other party to whom custody of the unentered mer- chandise has been transferred by a Cus- toms-authorized permit to transfer or in-bond entry fails to timely relinquish custody of the merchandise to a Cus- toms-approved bonded General Order warehouse, the carrier or other party may be liable for liquidated damages equal to the value of that merchandise under the terms and conditions of his international carrier or custodial bond, as applicable.
(e) If the bonded warehouse operator fails to take possession of unentered and unreleased merchandise or baggage within five calendar days after receipt of notification of the presence of such merchandise or baggage under this sec- tion, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(a)(1) of this chapter). If the port director finds that the warehouse
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proprietor cannot accept the goods be- cause they are required by law to be exported or destroyed (see § 127.28 of this chapter), or for other good cause, the goods will remain in the custody of the arriving carrier or other party to whom the goods have been transferred under a Customs-authorized permit to transfer or in-bond entry. In this event, the carrier or other party will be re- sponsible under bond for exporting or destroying the goods, as necessary (see §§ 113.63(c)(3) and 113.64(b) of this chap- ter).
(f) In ports where there is no bonded warehouse authorized to accept general order merchandise, or if merchandise requires specialized storage facilities that are unavailable in a bonded facil- ity, the port director, after having re- ceived notice of the presence of unentered merchandise or baggage in accordance with the provisions of this section, shall direct the storage of the merchandise by the carrier or by any other appropriate means.
(g) Merchandise taken into the cus- tody of the port director pursuant to section 490(b), Tariff Act of 1930, as amended (19 U.S.C. 1490(b)), shall be sent to a general order warehouse after 1 day after the day the aircraft arrived, to be held there at the risk and expense of the consignee.
[T.D. 98–74, 63 FR 51288, Sept. 25, 1998, as amended by T.D. 02–65, 67 FR 68033, Nov. 8, 2002]
Subpart F—International Traffic Permit
§ 122.51 Aircraft of domestic origin registered in the U.S.
After Customs inspection of the air- craft, passengers, baggage and mer- chandise at the entry airport, commer- cial aircraft of domestic origin reg- istered in the U.S. may be allowed to proceed to other airports in the U.S. without permit.
§ 122.52 Aircraft of foreign origin reg- istered in the U.S.
(a) Application. This section applies to commercial aircraft (as defined in § 122.1(d)) of foreign origin registered in the U.S. and arriving in the U.S. from a foreign area.
(b) Aircraft entered as an imported arti- cle. If an aircraft covered by this sec- tion is entered as an imported article, and any applicable duty for the aircraft has been paid on a prior arrival, it may be allowed to proceed as other than an imported article. In this instance, the aircraft commander must file a dec- laration that states the:
(1) Port where entry was made; (2) Date duty, if any, was paid; and (3) Number of the entry. (c) Aircraft not entered as imported ar-
ticle—(1) Treatment as other than an im- ported article. A commercial aircraft covered by this section which has not been entered as an imported article may travel from airport to airport in the U.S. without payment of duty. Each commercial aircraft shall proceed under a permit on Customs Form 7507 or 7509, as provided in § 122.54. Treat- ment of the aircraft as other than an imported article shall continue for so long as the aircraft:
(i) Is used only for commercial pur- poses between the U.S. and foreign areas; and
(ii) Will leave the U.S. for a foreign destination in commercial use or car- rying neither passengers nor cargo.
(2) Treatment as an imported article. Any aircraft covered by this section which was not entered as an imported article shall make entry if it:
(i) Is withdrawn from commercial use between the U.S. and foreign areas; or
(ii) Is used in the U.S. in a way not reasonably related to efficient com- mercial use of the aircraft between the U.S. and foreign areas.
(3) Aircraft damage and duty pay- ment—(i) Substantial damage to commer- cial aircraft. If an accident causes sub- stantial damage to a commercial air- craft, no entry or duty payment is re- quired for any part of the wreckage.
(ii) Less than substantial damage and export. If an accident does not cause substantial damage to a commercial aircraft, salvageable parts of the wrecked aircraft may be exported. In this circumstance, the aircraft, as a whole or in part, is not considered to be withdrawn from commerical use and is not subject to entry or to duty as imported merchandise.
(iii) Less than substantial damage and no export. If an accident does not cause
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substantial damage to a commercial aircraft and the wrecked aircraft or any salvageable part of it is not ex- ported, then:
(A) Entry is required to be made for the damaged aircraft or any salvage- able part of it; and
(B) A duty payment, if applicable, based on the condition of the aircraft following the accident, is required.
§ 122.53 Aircraft of foreign registry chartered or leased to U.S. air car- riers.
Aircraft of foreign registry leased or chartered to a U.S. air carrier, while being operated by the U.S. air carrier under the provisions of the Federal Aviation Administration regulations (14 CFR 121.153), shall be treated as U.S. registered aircraft for purposes of this subpart.
§ 122.54 Aircraft of foreign registry.
(a) Application. For any commercial aircraft of foreign registry arriving in the U.S., the aircraft commander or agent shall file for an international traffic permit when the aircraft;
(1) Is not an imported article; and (2) Is ferried (proceeds carrying nei-
ther passengers nor cargo) from the airport of first arrival to one or more airports in the U.S. (For permit to pro- ceed with residue cargo, passengers, or crewmembers for discharge in the U.S., see subpart I of this part).
(b) International traffic permit. The international traffic permit shall be filed on Customs Form 7507 by the car- rier or its agent. Customs Form 7509 may be used if the aircraft arrives di- rectly from Canada on a flight begin- ning in Canada and ending in the U.S. Either form shall show the following information and must be approved by the appropriate Customs officer:
(1) Type of aircraft; (2) Nationality and registration num-
ber of aircraft; (3) Name and country of aircraft
manufacturer; (4) Name of aircraft commander; (5) Country from which aircraft ar-
rived; (6) Name and location of airport
where international traffic permit is issued;
(7) Date international traffic permit is issued;
(8) Name and location of airport to which aircraft is proceeding;
(9) Purpose of stay in the U.S.; (10) Signature of Customs officer giv-
ing permit. (c) Permit on board. The international
traffic permit shall be kept on board the aircraft while in the U.S.
(d) Intermediate airports. For each air- port at which the aircraft lands, the Customs officer, or airport manager if there is no Customs officer present, shall note the following information on the permit:
(1) Name and location of the airport; (2) Date and arrival time; (3) Purpose of the visit; (4) Name and location of the next air-
port to be visited; and (5) Date and time of departure. (e) Final airport. The international
traffic permit shall be given to the Cus- toms officer in charge at the airport of final clearance for a foreign destina- tion. Before clearance is given, the Customs officer shall make sure that the aircraft was properly inspected by Customs in the U.S.
(f) Port of issue. The international traffic permit shall be returned after final clearance to the director of the port where the permit was issued, to be kept on file.
(g) Enforcement. Once the permit to proceed has been issued for an aircraft, the director of the port of issue must receive notice that the aircraft has made final clearance. If notice is not received within 60 days, the port direc- tor shall report the matter to the Cus- toms agent in charge of the area for in- vestigation.
Subpart G—Clearance of Aircraft and Permission To Depart
§ 122.61 Aircraft required to clear. (a) Private aircraft leaving the
United States as defined in § 122.22, for a foreign area are required to clear as set forth in § 122.26. All other aircraft, except for public aircraft leaving the United States for a foreign area, are re- quired to clear if:
(1) Carrying passengers and/or mer- chandise for hire; or
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(2) Taking aboard or discharging pas- sengers and/or merchandise for hire in a foreign area.
(b) Any aircraft used by members of air travel clubs are required to clear, and foreign aircraft traveling under a permit to proceed shall also clear.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended at CBP Dec. 08-43, 73 FR 68313, Nov. 18, 2008]
§ 122.62 Aircraft not otherwise re- quired to clear.
(a) Bureau of the Census. Under Bu- reau of the Census Regulations (15 CFR part 30), aircraft not required to clear by § 122.61 shall obtain permission to depart if carrying merchandise from the U.S. to Puerto Rico or from Puerto Rico to the U.S.
(b) Bureau of Industry and Security. Aircraft leaving the U.S. for a foreign area must be cleared by Customs if a validated license from the Bureau of Industry and Security (Department of Commerce) is required for the aircraft under the Export Administration Regu- lations (15 CFR parts 730 through 774). Aircraft are not required to clear if the Secretary of Commerce issues a permit allowing departure without clearance.
(c) Department of State. Aircraft not covered by Export Administration Reg- ulations are subject to the Department of State export licensing authority as set out in 22 CFR parts 121 and 123. Such aircraft may depart from the U.S. only with the proper Department of State license.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 93–61, 58 FR 41425, Aug. 4, 1993; CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004; 69 FR 54179, Sept. 2, 2004]
§ 122.63 Scheduled airlines. The aircraft commander or agent
shall request clearance or permission to depart for aircraft of scheduled air- lines covered by this subpart.
(a) Clearance at other than airport of final departure. Aircraft may clear at each airport where merchandise and/or passengers are taken on board for transport outside of the U.S. The clear- ance applies only to the merchandise and passengers boarding at each place. Clearance shall be requested at the Customs port of entry (regardless of whether it is an international airport)
nearest to the place where merchandise and/or passengers are taken on board.
(b) Clearance at final departure airport. Clearance or permission to depart may be requested at the Customs port of entry (regardless of whether it is an international airport) nearest the last departure airport.
§ 122.64 Other aircraft. Clearance or permission to depart
shall be requested by the aircraft com- mander or agent for aircraft covered by this subpart other than those of sched- uled airlines. The request must be made to the director of the port of entry (regardless of whether it is an international airport) nearest the final departure airport.
§ 122.65 Failure to depart. Once an aircraft has been cleared or
given permission to depart it must de- part within 72 hours. The aircraft com- mander or agent shall report promptly to the port director if departure is de- layed beyond or cancelled within 72 hours after the aircraft received clear- ance or permission to depart.
§ 122.66 Clearance or permission to de- part denied.
If advance electronic air cargo infor- mation is not received as provided in § 192.14 of this chapter, Customs and Border Protection may deny clearance or permission for the aircraft to depart from the United States.
[CBP Dec. 03–32, 68 FR 68173, Dec. 5, 2003]
Subpart H—Documents Required for Clearance and Permission To Depart; Electronic Manifest Requirements for Passengers, Crew Members, and Non- Crew Members Onboard Commercial Aircraft Depart- ing From the United States
§ 122.71 Aircraft departing with no commercial export cargo.
(a) Application. This section applies to aircraft departing for foreign terri- tory with no export cargo, but not to those aircraft which are themselves being exported.
(1) Such aircraft may clear by tele- phone in advance with the director of
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the port of departure if departing empty or carrying only:
(i) Passengers for hire; or (ii) Non-commercial cargo for which
Shipper’s Export Declarations are not required.
(2) If not cleared by telephone, an air cargo manifest containing the fol- lowing statement, signed by the air- craft commander or agent, shall be submitted to Customs:
I declare to the best of my knowledge and belief that there is no cargo on board this aircraft. Signature llllllllllllllllll (Aircraft Commander or Agent)
(b) Timeliness. The request for tele- phone clearance must be received by the Customs officer in charge with suf- ficient time remaining before depar- ture to ensure that Customs may un- dertake any necessary examination of the aircraft and cargo.
(c) Documentation. If clearance is granted by telephone, the aircraft com- mander is not required to file the docu- ments required by this subpart.
§ 122.72 Aircraft departing with com- mercial export cargo.
If an aircraft with export cargo leaves the U.S. for any foreign area, a general declaration, if required, an air cargo manifest and any required Ship- per’s Export Declarations, shall be filed in accordance with this subpart for all cargo on the aircraft, and for the air- craft itself if exported as merchandise. See § 122.79 for special requirements re- garding shipments to U.S. possessions.
§ 122.73 General declaration and air cargo manifest.
(a) General declaration—(1) Form. The general declaration shall be on Cus- toms Form 7507 and shall show all in- formation required.
(2) Preparation and filing. The aircraft commander or agent shall file two cop- ies of the general declaration with Cus- toms at the departure airport.
(3) Exception. A general declaration shall not be required if the air cargo manifest, Customs Form 7509, contains the statement shown in paragraph (b) of this section.
(b) Air cargo manifest—(1) Form. The air cargo manifest shall be on Customs Form 7509, and shall show all informa-
tion required. If a general declaration is not presented, the following state- ment, signed by the aircraft com- mander or agent, shall appear on the form:
I declare that all statements contained in this manifest, including the account of the cargo on board this aircraft, are complete, exact, and true to the best of my knowledge. Signature llllllllllllllllll (Aircraft Commander or Agent)
(2) Preparation and filing. The aircraft commander or agent shall file two cop- ies of the air cargo manifest with the Customs at the departure airport. Three copies of the air cargo manifest shall be filed if the aircraft is covered by § 122.77(b). The air cargo manifest must be filed in:
(i) Complete form, with all required Shipper’s Export Declarations (see § 122.75); or
(ii) Incomplete form (pro forma) under § 122.74.
§ 122.74 Incomplete (pro forma) mani- fest.
(a) Application—(1) Shipments to for- eign countries. Except for aircraft bound for foreign locations referred to in paragraph (b) of this section, clearance, or permission to depart may be given to an aircraft bound for a foreign loca- tion by the Customs at the departure airport before a complete manifest or all required Shipper’s Export Declara- tions have been filed, if a proper bond is filed on Customs Form 301, con- taining the bond conditions set forth in subpart G of part 113 of this chapter.
(2) Shipments to Puerto Rico. As pro- vided in § 122.79(b), any required air cargo manifest or Shipper’s Export Declarations for direct flights between the U.S. and Puerto Rico shall be filed with the appropriate Customs officer upon arrival in Puerto Rico. If any re- quired manifest or Shipper’s Export Declarations are not filed with the ap- propriate Customs officer within one business day after arrival in Puerto Rico, a proper bond shall be filed at that time on Customs Form 301, con- taining the bond conditions set forth in subpart G of part 113 of this chapter.
(b) Exceptions. An incomplete mani- fest will not be accepted:
(1) During any time covered by a proclamation of the President that a
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state of war exists between foreign na- tions; or
(2) If the aircraft is departing on a flight from the U.S. directly or indi- rectly to a foreign country listed in § 4.75 of this chapter.
In both cases, a complete air cargo manifest and all required Shipper’s Ex- port Declarations shall be filed with the port director before the aircraft will be cleared.
(c) Filing under bond. An incomplete set of documents may be filed only when accompanied by the proper bond. Under the bond, a complete set of docu- ments shall be filed within whichever of the following time periods is appro- priate:
(1) Shipments to foreign countries. All required Shipper’s Export Declarations and a complete air cargo manifest shall be filed by the airline not later than the fourth business day after clearance (when clearance is required) or depar- ture (when clearance is not required) of the aircraft.
(2) Shipments to and from Puerto Rico. For shipments from the U.S. to Puerto Rico, the complete manifest (when re- quired) and all required Shipper’s Ex- port Declarations shall be filed not later than the seventh business day after arrival into Puerto Rico. For shipments from Puerto Rico to the U.S., the complete manifest (when re- quired) and all required Shipper’s Ex- port Declarations shall be filed not later than the seventh business day after departure from Puerto Rico.
(3) Shipments to U.S. possessions. For shipments between the U.S. or Puerto Rico and possessions of the U.S., a complete manifest and all required Shipper’s Export Declarations shall be filed by the airline not later than the seventh business day after departure. See § 122.79.
(d) Declaration required. A declaration shall be made on the incomplete mani- fest that:
(1) All required documents will be filed within the 4-day bond period; or
(2) All required documents will be filed within the 7-day bond period.
Once all documents have been filed, a statement as required by § 122.75(b) shall be made.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 93–61, 58 FR 41425, Aug. 4, 1993]
§ 122.75 Complete manifest. (a) Contents. A complete air cargo
manifest shall list all cargo laden, and show for each item the air waybill number, or marks and numbers on packages and the type of goods carried. If an item does not require a Shipper’s Export Declaration, it shall be noted on the air cargo manifest.
(1) Shipments on an air waybill. A copy of each air waybill on which shipments are listed may be attached to the air cargo manifest, and the number of the air waybill may be listed on the air cargo manifest. The statement ‘‘Cargo as per Air Waybill Attached’’ must ap- pear on the air cargo manifest if this is done.
(2) Direct departure. This subsection applies only to direct departures of shipments requiring a Shipper’s Export Declaration. A copy of each declaration may be attached to the air cargo mani- fest, and the number of each declara- tion shall be listed on the air cargo manifest in the column for air waybill numbers. The statement ‘‘Cargo as per Export Declarations Attached’’ must appear on the manifest if this is done.
(b) Statement required. (1) When all re- quired documents are ready for filing, the following statement must appear on the air cargo manifest, or on the general declaration form if an air cargo manifest is not required:
Attached Shipper’s Export Declarations represent a full and complete enumeration and description of the cargo carried in this flight except that listed on the cargo mani- fest.
(2) If an incomplete set of documents has been filed and is later completed, the following statement shall accom- pany the Shipper’s Export Declarations and any required air cargo manifests:
Attached Shipper’s Export Declarations represent a full and complete enumeration and description of the cargo carried on air- craft No. llll, Flight No. llll cleared direct for llll, on llll except cargo listed on any cargo manifest required to be filed for such flight.
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Airline lllllllllllllllllll Authorized Agent llllllllllllll
§ 122.75a Electronic manifest require- ment for passengers onboard com- mercial aircraft departing from the United States.
(a) Definitions. The definitions set forth in § 122.49a(a) also apply for pur- poses of this section.
(b) Electronic departure manifest—(1) General—(i) Basic requirement. Except as provided in paragraph (c) of this sec- tion, an appropriate official of each commercial aircraft (carrier) departing from the United States en route to any port or place outside the United States must transmit to the Advance Pas- senger Information System (APIS; re- ferred to in this section as the Customs and Border Protection (CBP) system), the electronic data interchange system approved by CBP for such trans- missions, an electronic passenger de- parture manifest covering all pas- sengers checked in for the flight. A passenger manifest must be trans- mitted separately from a crew member manifest required under § 122.75b if transmission is in U.S. EDIFACT for- mat. The passenger manifest must be transmitted to the CBP system at the place and time specified in paragraph (b)(2) of this section, in the manner set forth under paragraph (b)(1)(ii) of this section.
(ii) Transmission of manifests. A car- rier required to make passenger depar- ture manifest transmissions to the CBP system under paragraph (b)(1)(i) of this section must make the required transmissions covering all passengers checked in for the flight in accordance with either paragraph (b)(1)(ii)(A), (B), (C), or (D) of this section, as follows:
(A) Non-interactive batch transmission option. A carrier that chooses not to transmit required passenger manifests by means of a CBP-certified interactive electronic transmission system under paragraph (b)(1)(ii)(B), (C), or (D) of this section must make batch manifest transmissions in accordance with this paragraph (b)(1)(ii)(A) by means of a non-interactive electronic trans- mission system approved by CBP. The carrier may make a single, complete batch manifest transmission con- taining the data required under para- graph (b)(3) of this section for all pas-
sengers checked in for the flight or two or more partial batch manifest trans- missions, each containing the required data for the identified passengers and which together cover all passengers checked in for the flight. After receipt of the manifest information, the CBP system will perform an initial security vetting of the data and send to the car- rier by a non-interactive transmission method a ‘‘not-cleared’’ instruction for passengers identified as requiring addi- tional security analysis and a ‘‘se- lectee’’ instruction for passengers re- quiring secondary screening (e.g., addi- tional examination of the person and/or his baggage) under applicable Trans- portation Security Administration (TSA) requirements. The carrier must designate as a ‘‘selectee’’ any pas- senger so identified during initial secu- rity vetting, in accordance with appli- cable TSA requirements. The carrier must not issue a boarding pass to, or load the baggage of, any passenger sub- ject to the ‘‘not-cleared’’ instruction and must contact the Transportation Security Administration (TSA) to seek resolution of the ‘‘not-cleared’’ instruc- tion by providing, if necessary, addi- tional relevant information relative to the ‘‘not-cleared’’ passenger. TSA will notify the carrier if a ‘‘not-cleared’’ passenger is cleared for boarding or downgraded to ‘‘selectee’’ status based on the additional security analysis.
(B) Interactive batch transmission op- tion. A carrier, upon obtaining CBP certification, in accordance with para- graph (b)(1)(ii)(E) of this section, may make manifest transmissions by means of an interactive electronic trans- mission system configured for batch transmission of data and receipt from the CBP system of appropriate mes- sages. A carrier operating under this paragraph must make manifest trans- missions by transmitting a single, complete batch manifest containing the data required under paragraph (b)(3) of this section for all passengers checked in for the flight or two or more partial batch manifests, each containing the required data for the identified passengers and which to- gether cover all passengers checked in for the flight. In the case of connecting passengers arriving at the connecting
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airport already in possession of board- ing passes for a flight departing from the United States whose data have not been collected by the carrier, the car- rier must transmit required manifest data for these passengers when they ar- rive at the gate, or some other suitable place designated by the carrier, for the flight. After receipt of the manifest in- formation, the CBP system will per- form an initial security vetting of the data and send to the carrier by inter- active electronic transmission, as ap- propriate, a ‘‘cleared’’ instruction for passengers not matching against the watch list, a ‘‘not-cleared’’ instruction for passengers identified as requiring additional security analysis, and a ‘‘selectee’’ instruction for passengers who require secondary screening (e.g., additional examination of the person and/or his baggage) under applicable TSA requirements. The carrier must designate as a ‘‘selectee’’ any pas- senger so identified during initial secu- rity vetting, in accordance with appli- cable TSA requirements. The carrier must not issue a boarding pass to, or load the baggage of, any passenger sub- ject to a ‘‘not-cleared’’ instruction and, in the case of connecting passengers (as described in this paragraph), the car- rier must not board or load the bag- gage of any such passenger until the CBP system returns a ‘‘cleared’’ or ‘‘selectee’’ response for that passenger. Where a ‘‘selectee’’ instruction is re- ceived for a connecting passenger, the carrier must ensure that such pas- senger undergoes secondary screening before boarding. The carrier must seek resolution of a ‘‘not-cleared’’ instruc- tion by contacting TSA and providing, if necessary, additional relevant infor- mation relative to the ‘‘not-cleared’’ passenger. Upon completion of the ad- ditional security analysis, TSA will no- tify the carrier if a ‘‘not-cleared’’ pas- senger is cleared for boarding or down- graded to ‘‘selectee’’ status based on the additional security analysis. No later than 30 minutes after the secur- ing of the aircraft, the carrier must transmit to the CBP system a message reporting any passengers who checked in but were not onboard the flight. The message must identify the passengers by a unique identifier selected or de- vised by the carrier or by specific pas-
senger data (name) and may contain the unique identifiers or data for all passengers onboard the flight or for only those passengers who checked in but were not onboard the flight.
(C) Interactive individual passenger in- formation transmission option. A carrier, upon obtaining CBP certification, in accordance with paragraph (b)(1)(ii)(E) of this section, may make manifest transmissions by means of an inter- active electronic transmission system configured for transmitting individual passenger data for each passenger and for receiving from the CBP system ap- propriate messages. A carrier operating under this paragraph must make such transmissions as individual passengers check in for the flight or, in the case of connecting passengers arriving at the connecting airport already in posses- sion of boarding passes for a flight de- parting from the United States whose data have not been collected by the carrier, as these connecting passengers arrive at the gate, or some other suit- able place designated by the carrier for the flight. With each transmission of manifest information by the carrier, the CBP system will perform an initial security vetting of the data and send to the carrier by interactive electronic transmission, as appropriate, a ‘‘cleared’’ instruction for passengers not matching against the watch list, a ‘‘not-cleared’’ instruction for pas- sengers identified during initial secu- rity vetting as requiring additional se- curity analysis, and a ‘‘selectee’’ in- struction for passengers requiring sec- ondary screening (e.g., additional ex- amination of the person and/or his bag- gage) under applicable TSA require- ments. The carrier must designate as a ‘‘selectee’’ any passenger so identified during initial security vetting, in ac- cordance with applicable TSA require- ments. The carrier must not issue a boarding pass to, or load the baggage of, any passenger subject to a ‘‘not- cleared’’ instruction and, in the case of connecting passengers (as described in this paragraph), must not board or load the baggage of any such passenger until the CBP system returns a ‘‘cleared’’ or ‘‘selectee’’ response for that passenger. Where a ‘‘selectee’’ in- struction is received for a connecting passenger, the carrier must ensure that
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such passenger undergoes secondary screening before boarding. The carrier must seek resolution of a ‘‘not- cleared’’ instruction by contacting TSA and providing, if necessary, addi- tional relevant information relative to the ‘‘not-cleared’’ passenger. Upon completion of the additional security analysis, TSA will notify the carrier if a ‘‘not-cleared’’ passenger is cleared for boarding or downgraded to ‘‘selectee’’ status based on the additional security analysis. No later than 30 minutes after the securing of the aircraft, the carrier must transmit to the CBP sys- tem a message reporting any pas- sengers who checked in but were not onboard the flight. The message must identify the passengers by a unique identifier selected or devised by the carrier or by specific passenger data (name) and may contain the unique identifiers or data for all passengers onboard the flight or for only those passengers who checked in but were not onboard the flight.
(D) Combined use of interactive meth- ods. If certified to do so, a carrier may make transmissions under both para- graphs (b)(1)(ii)(B) and (C) of this sec- tion for a particular flight or for dif- ferent flights.
(E) Certification. Before making any required manifest transmissions under paragraph (b)(1)(ii)(B) or (C) of this sec- tion, a carrier must subject its elec- tronic transmission system to CBP testing, and CBP must certify that the carrier’s system is then presently capa- ble of interactively communicating with the CBP system for effective transmission of manifest data and re- ceipt of appropriate messages under those paragraphs.
(2) Place and time for submission. The appropriate official specified in para- graph (b)(1)(i) of this section (carrier) must transmit the departure manifest or manifest data as required under paragraphs (b)(1)(i) and (ii) of this sec- tion to the CBP system (CBP Data Cen- ter, CBP Headquarters), in accordance with the following:
(i) For manifests transmitted under paragraph (b)(1)(ii)(A) and (B) of this section, no later than 30 minutes prior to the securing of the aircraft;
(ii) For manifest information trans- mitted under paragraph (b)(1)(ii)(C) of
this section, no later than the securing of the aircraft; and
(iii) For an aircraft operating as an air ambulance in service of a medical emergency, no later than 30 minutes after departure.
(3) Information required. The elec- tronic passenger departure manifest re- quired under paragraph (b)(1) of this section must contain the following in- formation for all passengers, except that the information specified in para- graphs (b)(3)(iv), (ix), and (xi) of this section must be included on the mani- fest only on or after October 4, 2005:
(i) Full name (last, first, and, if available, middle);
(ii) Date of birth; (iii) Gender (F = female; M = male); (iv) Citizenship; (v) Status on board the aircraft; (vi) Travel document type (e.g., P =
passport; A = alien registration card); (vii) Passport number, if a passport is
required; (viii) Passport country of issuance, if
a passport is required; (ix) Passport expiration date, if a
passport is required; (x) Alien registration number, where
applicable; (xi) Passenger Name Record locator,
if available; (xii) International Air Transport As-
sociation (IATA) departure port code; (xiii) IATA code of port/place of final
arrival (foreign port code); (xiv) Airline carrier code; (xv) Flight number; and (xvi) Date of aircraft departure. (c) Exception. The electronic pas-
senger departure manifest specified in paragraph (b)(1) of this section is not required for active duty military per- sonnel traveling as passengers on board a departing Department of Defense commercial chartered aircraft.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the passenger with the travel docu- ment information it is transmitting to CBP in accordance with this section in order to ensure that the information is correct, the document appears to be
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valid for travel purposes, and the pas- senger is the person to whom the travel document was issued.
(e) Sharing of manifest information. In- formation contained in the passenger manifest required under this section that is received by CBP electronically may, upon request, be shared with other Federal agencies for the purpose of protecting national security. CBP may also share such information as otherwise authorized by law.
[CBP Dec. 05–12, 70 FR 17855, Apr. 7, 2005, as amended by CBP Dec. 07–64, 72 FR 48344, Aug. 23, 2007]
§ 122.75b Electronic manifest require- ment for crew members and non- crew members onboard commercial aircraft departing from the United States.
(a) Definitions. The definitions set forth in § 122.49a(a) also apply for pur- poses of this section, except that the definitions of ‘‘all-cargo flight,’’ ‘‘car- rier,’’ ‘‘crew member,’’ and ‘‘non-crew member’’ applicable to this section are found in § 122.49b(a).
(b) Electronic departure manifest—(1) General requirement. Except as provided in paragraph (c) of this section, an ap- propriate official of each commercial aircraft departing from the United States to any port or place outside the United States must transmit to Cus- toms and Border Protection (CBP) an electronic crew member departure manifest and, for all-cargo flights only, an electronic non-crew member depar- ture manifest covering any crew mem- bers and non-crew members onboard. Each manifest must be transmitted to CBP at the place and time specified in paragraph (b)(2) of this section by means of an electronic data inter- change system approved by CBP and must set forth the information speci- fied in paragraph (b)(3) of this section. Where both a crew member departure manifest and a non-crew member de- parture manifest are required for an all-cargo flight, they must be combined in one departure manifest covering both crew members and non-crew mem- bers. Where a passenger departure manifest under § 122.75a and a crew member departure manifest under this section are required, they must be
transmitted separately if the trans- mission is in US EDIFACT format.
(2) Place and time for submission; cer- tification; change to manifest. (i) Place and time for submission. The appropriate official specified in paragraph (b)(1) of this section must transmit the elec- tronic departure manifest required under paragraph (b)(1) of this section to the CBP Data Center, CBP Head- quarters, no later than 60 minutes prior to departure of the aircraft, except that for an air ambulance in service of a medical emergency, the manifest must be transmitted to CBP no later than 30 minutes after departure.
(ii) Certification. Except as provided in paragraph (c) of this section, the ap- propriate official, by transmitting the manifest as required under paragraph (b)(1) of this section, certifies that the flight’s crew members and non-crew members are included, respectively, on the master crew member list or master non-crew member list previously sub- mitted to CBP in accordance with § 122.49c. If a crew member or non-crew member on the manifest is not also in- cluded on the appropriate master list, the flight may be denied clearance to depart.
(iii) Changes to manifest. The appro- priate official is obligated to make nec- essary changes to the crew member or non-crew member departure manifest after transmission of the manifest to CBP. Necessary changes include adding a name, with other required informa- tion, to the manifest or amending pre- viously submitted information. If changes are submitted less than 60 minutes before scheduled flight depar- ture, the air carrier must receive ap- proval from TSA before allowing the flight to depart or the flight may be de- nied clearance to depart.
(3) Information required. The elec- tronic crew member and non-crew member departure manifests required under paragraph (b)(1) of this section must contain the following informa- tion for all crew members and non-crew members, except that the information specified in paragraphs (b)(iii), (v), (vi), (xii), and (xiv) of this section must be included on the manifest only on or after October 4, 2005:
(i) Full name (last, first, and, if available, middle);
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U.S. Customs and Border Protection, DHS; Treasury § 122.76
(ii) Date of birth; (iii) Place of birth (city, state—if ap-
plicable, country); (iv) Gender (F = female; M = male); (v) Citizenship; (vi) Address of permanent residence; (vii) Status on board the aircraft; (viii) Pilot certificate number and
country of issuance (if applicable); (ix) Travel document type (e.g., P =
passport; A = alien registration card); (x) Passport number, if a passport is
required; (xi) Passport country of issuance, if a
passport is required; (xii) Passport expiration date, if a
passport is required; (xiii) Alien registration number,
where applicable; (xiv) Passenger Name Record locator,
if available; (xv) International Air Transport As-
sociation (IATA) departure port code; (xvi) IATA code of port/place of final
arrival (foreign port code); (xvii) Airline carrier code; (xviii) Flight number; and (xix) Date of aircraft departure. (c) Exceptions. The electronic depar-
ture manifest requirement specified in paragraph (b)(1) of this section is sub- ject to the following conditions:
(1) Federal Aviation Administration (FAA) Aviation Safety Inspectors with valid credentials and authorization are not subject to the requirement, but the manifest requirement of § 122.75a ap- plies to these inspectors, as they are considered passengers on departing flights;
(2) For crew members traveling on- board departing aircraft chartered by the U.S. Department of Defense, the provisions of this section apply regard- ing electronic transmission of the manifest, except that:
(i) The manifest certification provi- sion of paragraph (b)(2)(ii) of this sec- tion is inapplicable; and
(ii) The TSA manifest change ap- proval requirement of paragraph (b)(2)(iii) of this section is inapplicable; and
(3) For non-crew members traveling onboard a departing all-cargo flight chartered by the U.S. Department of Defense, the manifest is not required, but the manifest requirement of § 122.75a applies to these persons, as, in
this instance, they are considered pas- sengers on departing flights.
(d) Carrier responsibility for comparing information collected with travel docu- ment. The carrier collecting the infor- mation described in paragraph (b)(3) of this section is responsible for com- paring the travel document presented by the crew member or non-crew mem- ber with the travel document informa- tion it is transmitting to CBP in ac- cordance with this section in order to ensure that the information is correct, the document appears to be valid for travel, and the crew member or non- crew member is the person to whom the travel document was issued.
(e) Sharing of manifest information. In- formation contained in the crew mem- ber and non-crew member manifests re- quired under this section that is re- ceived by CBP electronically may, upon request, be shared with other Federal agencies for the purpose of pro- tecting national security. CBP may also share such information as other- wise authorized by law.
(f) Master crew member and non-crew member lists. Air carriers subject to the requirements of this section must also comply with the requirements of § 122.49c pertaining to the electronic transmission of a master crew member list and a master non-crew member list as applied to flights departing from the United States.
(g) Superseding amendments issued by TSA. One or more of the requirements of this section may be superseded by provisions of, amendments to, or alter- native procedures authorized by TSA for compliance with an aviation secu- rity program, emergency amendment, or security directive issued by the TSA to an air carrier subject to the provi- sions of 49 CFR part 1544, 1546, or 1550. The amendments will have superseding effect only for the airline to which issued and only for the period of time they remain in effect.
[CBP Dec. 05–12, 70 FR 17855, Apr. 7, 2005]
§ 122.76 Shipper’s Export Declarations and inspection certificates.
(a) Shipper’s Export Declarations—(1) Other than shipments to Puerto Rico. For shipments other than to Puerto Rico, at the time of clearance, the aircraft commander or agent shall file with the
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19 CFR Ch. I (4–1–12 Edition)§ 122.77
port director of the departure airport any Shipper’s Export Declarations re- quired by the Bureau of the Census (see 15 CFR part 30).
(2) Shipments to Puerto Rico. For flights carrying shipments to Puerto Rico from the U.S., the aircraft com- mander or agent shall file any Ship- per’s Export Declarations required by the Bureau of the Census (see 15 CFR part 30) upon arrival in Puerto Rico with the port director there.
(b) Inspection certificates. The aircraft commander or authorized agent shall deliver a proper export inspection cer- tificate issued by the Veterinary Serv- ice, Animal and Plant Inspection Serv- ice, Department of Agriculture (9 CFR part 91), to the Customs officer in charge at the time of departure of any aircraft carrying horses, mules, asses, cattle, sheep, swine, or goats.
[T.D. 93–61, 58 FR 41426, Aug. 4, 1993]
§ 122.77 Clearance certificate.
(a) Aircraft departing from the U.S. One copy of the air cargo manifest shall be used as a clearance certificate when endorsed by the port director to show that clearance is granted.
(b) Scheduled aircraft. If a scheduled aircraft clears at an airport which is not the airport at or nearest the place of final take-off from the U.S., two cop- ies of the air cargo manifest shall be filed. One copy shall be used as a clear- ance certificate when endorsed by the director of the port where clearance is obtained, and the second copy shall be attached to the first for use at subse- quent U.S. ports.
§ 122.78 Entry or withdrawal for ex- portation or for transportation and exportation.
If a shipment is exported under an entry or withdrawal for exportation, or for transportation and exportation, the air cargo manifest, the air waybill, or the consignment note attached to the manifest shall clearly show the fol- lowing information for each entry or withdrawal:
(a) Number; (b) Date; and (c) Class of entry or withdrawal, as
follows: (1) Transportation and exportation;
(2) Withdrawal for transportation and exportation;
(3) Immediate exportation; (4) Withdrawal for exportation; or (5) Withdrawal for transportation.
The name of the port where the entry or withdrawal was filed, if not the port where the merchandise is laden for ex- portation, shall also appear on the air cargo manifest.
§ 122.79 Shipments to U.S. possessions. (a) Other than Puerto Rico. An air
cargo manifest shall be filed for air- craft transporting cargo between the U.S. and U.S. possessions. Shipper’s Export Declarations are not required for shipments from the U.S. or Puerto Rico to the U.S. possessions, except to the U.S. Virgin Islands or from a U.S. possession and destined to the U.S., Puerto Rico, or another U.S. posses- sion.
(b) Puerto Rico. When an aircraft car- ries merchandise on a direct flight from the U.S. to Puerto Rico, any re- quired air cargo manifest or Shipper’s Export Declarations shall be filed with the appropriate port director at Puerto Rico.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 93–61, 58 FR 41426, Aug. 4, 1993]
§ 122.80 Verification of statement. Customs officers may verify any of
the statements required under this sub- part by examining the shipping records of the airline involved.
Subpart I—Procedures for Residue Cargo and Stopover Passengers
§ 122.81 Application. (a) Aircraft arriving with cargo. Air-
craft arriving in the U.S. from a for- eign area with cargo shown on the manifest to be traveling to other air- ports in the U.S. or to foreign areas may proceed under the provisions of this subpart.
(b) Aircraft arriving with no cargo. Air- craft arriving in the U.S. from a for- eign area with no cargo on board, and requesting immediate examination and release, may proceed if a bond on Cus- toms Form 301, containing the bond conditions set forth in subpart G of
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U.S. Customs and Border Protection, DHS; Treasury § 122.83
part 113 of this chapter, has been filed and covers the aircraft.
§ 122.82 Bond requirements.
A bond on Customs Form 301, con- taining the bond provisions set forth in subpart G of part 113 of this chapter, shall be filed before an aircraft is given a permit to proceed with residue cargo under this subpart. The bond shall be filed in the correct amount with the di- rector of the entry airport.
§ 122.83 Forms required.
(a) Traveling general declaration and manifest. When applying for examina- tion and release from an airport or place of entry in the U.S., the aircraft commander or agent shall file a trav- eling general declaration and manifest. The traveling general declaration and manifest is one certified copy of the original inward general declaration, and each air cargo manifest required when the aircraft entered. This in- cludes air waybills that were part of the manifest.
(b) Attachments to traveling general declaration and manifest—(1) Crew pur- chase and stores list. The crew purchase and stores list, if required when the aircraft enters under §§ 122.46 and 122.47, shall be attached to the traveling gen- eral declaration and manifest.
(2) Crew purchases not listed on a crew purchase list. A crew member’s declara- tion shall be attached to the traveling general declaration and manifest if:
(i) Crew purchases are listed on a crew declaration, Customs Form 5129, instead of on the crew purchase list, under § 122.46(c)(2); and
(ii) The crew member has not left the aircraft with his or her purchase at the first entry port.
The crew member’s declaration must be attached at the port where the arti- cles listed on the declaration receive clearance.
(c) Abstract general declaration and manifest. The abstract general declara- tion and manifest shall consist of one copy of the general declaration, and one copy of each manifest (including air waybills) covering residue cargo:
(1) Not yet examined and released by Customs or any other Federal agency; and
(2) To be discharged at another do- mestic or foreign airport. An abstract general declaration and manifest need not be filed at the last domestic port of discharge.
(d) Permit to proceed. A permit to pro- ceed from one domestic airport to an- other shall be filed by the aircraft com- mander or agent with the Customs offi- cer in charge at the clearance airport. The permit to proceed shall include a declaration by the aircraft commander or agent, which shall be signed on entry at the next domestic airport. The permit to proceed and declaration shall state substantially the following:
PERMIT TO PROCEED FROM ONE AIRPORT TO ANOTHER
Airport of Departure llllllllllll Date lllllllllllllllllllll
Permission is hereby given aircraft lllll to proceed to lllll (Next Domestic Airport)
The aircraft which has arrived from and is destined to the places shown in the general declaration, is proceeding to such places of destination to discharge residue cargo, pas- sengers, or crew members and their pur- chases, as listed in the attached manifest. Bond was given at the airport of arrival for the cargo retained on board. Items of cargo manifested for delivery at this airport ap- pear to have been landed.
Number of crew members not cleared by Customs llll.
Number of passengers not cleared by Cus- toms llll.
Number of pages of the traveling manifest llll.
llllllllllllllllllllllll
(Customs Officer and Title)
DECLARATION ON ENTRY OF AIRCRAFT AT FOLLOWING AIRPORT
Airport of Arrival llllllllllllll Date lllllllllllllllllllll
I, lllll, commander or authorized agent of the aircraft identified in this docu- ment, declare and guarantee that there were not, when such aircraft departed from the airport of llll, nor have been since, nor now are, any more or other goods, wares, or merchandise on board than was stated in the attached manifests. llllllllllllllllllllllll
(Signature and Title)
The permit to proceed and declaration must be stamped, mimeographed or printed on:
(1) The abstract general declaration;
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(2) The traveling general declaration when an abstract general declaration is not required; or
(3) A separate sheet of paper. (e) Permit to proceed for nonscheduled
aircraft. For each permit to proceed issued to a nonscheduled aircraft car- rying residue cargo the transit air cargo manifest procedures shall be fol- lowed. When the aircraft arrives at the final port, the aircraft commander shall deliver the permit to proceed to Customs.
(f) Use of form. When all of the docu- ments required by this section are in order, the permit to proceed shall be dated and signed by the Customs offi- cer in charge at the clearance airport. One copy of the permit to proceed shall be delivered to the aircraft commander or agent with the other required docu- ments, for filing at the next inter- national airport.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988; T.D. 00– 22, 65 FR 16518, Mar. 29, 2000]
§ 122.84 Intermediate airport. (a) Application. The provisions of this
section apply at any U.S. airport to which an aircraft proceeds with residue cargo, and passengers, or crewmembers and their purchases not cleared by Cus- toms. They do not apply to aircraft ar- riving at the last domestic port of dis- charge.
(b) Entry. When an aircraft arrives at the next airport, the aircraft com- mander or agent shall make entry by filing the:
(1) Abstract general declaration and manifest;
(2) Traveling general declaration and manifest; and
(3) Permit to proceed. The Declaration on Entry of Aircraft at Following Airport, found on the permit to proceed, shall be properly signed be- fore filing for entry.
(c) Crew declarations. The declara- tions and entries, Customs Form 5129, of any crewmembers who leave the air- craft with their purchases at the inter- mediate airport shall be detached from the traveling general manifest. The declaration and entries are to be de- tached by the Customs officer in charge and are kept at the airport.
(d) Departure. When the aircraft leaves an intermediate airport carrying
residue cargo, and passengers or crew- members and their purchases are not yet cleared by Customs or another in- terested Federal agency, the procedure is the same as at the first arrival air- port. All documents required by this section, except those detached under paragraph (c) of this secticn, shall be returned to the aircraft commander or agent for filing at the next entry air- port.
§ 122.85 Final airport.
When an aircraft enters at the last domestic airport of discharge, the trav- eling general declaration and manifest shall be filed with Customs and kept at the airport. No abstract general dec- laration and manifest is required.
§ 122.86 Substitution of aircraft.
(a) Application. The residue cargo pro- cedure applies when an airline must substitute aircraft to reach a destina- tion due to weather conditions or oper- ational factors which prevent an air- craft on arrival of the flight at the first port from continuing inbound to inte- rior ports scheduled for that flight.
(b) Clearance and entry. Clearance and entry of substitute aircraft is required as provided in this subpart for other aircraft.
(c) Identification. An identification of all substitute aircraft shall be clearly made on all clearance and entry docu- ments.
(d) Transporting cargo—(1) For- warding. The carrier may forward all cargo which arrived on one aircraft by transferring it to another aircraft of the same airline to complete the in- bound flight. The transfer shall be done under Customs supervision.
(2) Conditions. All of the residue cargo from more than one inbound flight of an airline may be laden on one sub- stitute aircraft of the airline. The sub- stitute aircraft shall finish the inbound transport of the residue cargo.
§ 122.87 Other requirements.
Section 4.85 of this chapter, relating to vessels with residue cargo for do- mestic ports, applies to aircraft residue cargo, except as stated in this subpart.
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§ 122.88 Aircraft carrying domestic (stopover) passengers.
Airlines that commingle domestic (stopover) passengers (that is, pas- sengers who have already cleared Cus- toms at their port of arrival and are continuing on another aircraft to a sec- ond U.S. destination) with inter- national passengers who are continuing on the flight to their port of arrival and have not yet cleared Customs, must comply with certain require- ments before being issued a permit to proceed. The carriers requirements are as follows:
(a) The domestic (stopover) pas- sengers must be transported on U.S.- registered aircraft, or foreign-reg- istered aircraft of the same foreign air- line that brought them into the U.S.
(b) A $2.00 charge must be paid for each revenue producing domestic (stop- over) passenger reinspected in the U.S. (see § 24.12 of this chapter).
(c) Arrangements must be made for the checked baggage of all passengers requiring inspection on the previously described flights to be off-loaded and made available for examination in the Federal inspection area at the destina- tion port (intermediate or final) where an inspection is to take place.
(d) All stopover passengers shall be notified in writing, prior to boarding, that they will be subject to full rein- spection by Customs. This written no- tification shall contain the following language: ‘‘Notice to all boarding pas- sengers: You are boarding an aircraft on which passengers will be arriving in the U.S. from foreign destinations. These passengers have not yet cleared U.S. Customs. Accordingly, you will be subject to a full reinspection by Cus- toms at your final U.S. port of entry.’’
(e) Domestic (stopover) passengers shall be provided a Customs declara- tion identified by the words ‘‘Domestic Flight’’. The domestic (stopover) pas- senger is only required to complete items 1–4 on that declaration.
(f) The carrier shall present to Cus- toms, as otherwise required by law, the permit to proceed and/or the general declaration, clearly stating the number of domestic (stopover) passengers to be reinspected upon arrival at the destina- tion port (intermediate or final) where
an inspection of passengers is to take place.
Subpart J—Transportation in Bond and Merchandise in Transit
§ 122.91 Application.
This subpart applies to the transpor- tation in bond of merchandise arriving in the U.S. by aircraft and entered:
(a) For immediate transportation to another airport without appraisement; or
(b) For transportation through the U.S. and later exportation by aircraft.
§ 122.92 Procedure at port of origin. (a) Forms required—(1) Customs Form
7512 or other document. Customs Form 7512 or other Customs approved docu- ments, such as an air waybill (see para- graph (a)(3) of this section), shall be used for both entry and manifest. Three copies of the form or other docu- ment are required to be filed with Cus- toms at the port of origin for merchan- dise for immediate transportation without appraisement. Four copies of the form or other document are re- quired when merchandise for transpor- tation and exportation is entered. (See also, §§ 18.11 and 18.20(a) of this chap- ter). Each copy shall be signed by the carrier or its authorized agent.
(2) Air Waybill. An air waybill may be used for both entry and manifest. Three copies of the air waybill are re- quired unless the port director deems additional copies necessary. Photo- copies of the original air waybill are acceptable. Either preprinted stock air waybills or electronically generated air waybills may be used. The air waybill must:
(i) Contain the information required of a universal air waybill as recognized and accepted by the International Air Transport Association (IATA), be leg- ible and in the English language;
(ii) Display a unique 11-digit number, the first three digits being the air car- rier’s identification code;
(iii) Display the number of packages based on the smallest external pack- aging unit (e.g., 14 packages is accept- able, 1 pallet is unacceptable);
(iv) Display the name of the final port of destination in the U.S. or the
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name of the ultimate country of des- tination of the cargo indicated by available air carrier shipping docu- ments. The ultimate destination must be shown even though the air transpor- tation may be scheduled to terminate in a country prior to the cargo’s final destination;
(v) Be modified to contain the fol- lowing information which should ap- pear in a block or attachment in the upper right-hand corner as in this ex- ample. The numbers 1–8 correspond to the descriptions that follow; the num- bers do not have to appear on the AWB: (1) llllllllllllllllllllll
Origin (2) llllllllllllllllllllll
Entry Type (3) llllllllllllllllllllll
Destination (4) llllllllllllllllllllll Importing Carrier/Flight Number/Arrival Date (5) llllllllllllllllllllll Bonded Carrier/Exporter (6) llllllllllllllllllllll
Date (7) llllllllllllllllllllll Signature of Carrier’s Agent (or Exporter) (8) llllllllllllllllllllll Customs Officer Date
The item numbers correspond to the following information:
Item 1—Origin— The numeric port code as listed in Schedule D of the Har- monized Tariff Schedules of the United States, or the port where the in-bond entry is presented.
Item 2—Entry type— The appropriate in-bond code number such as I.T./61 for Immediate Transportation, T&E/62 for Transportation and Exportation, and I.E./63 for Immediate Exportation.
Item 3—Destination— The numeric port code for the intended port of des- tination for entry or exportation.
Item 4—Importing Carrier/Flight Num- ber/Arrival Date— This information serves to identify the shipment in terms of the inward foreign manifest of the importing carrier. The ‘‘Arrival Date’’ is the date of arrival of the im- porting conveyance in the U.S. The in- formation must be supplied in all in- stances.
Item 5—Bonded Carrier/Exporter— The bonded carrier or exporter who will be liable for the proper movement, han-
dling, and safekeeping of the merchan- dise once the in-bond movement is au- thorized by Customs. If this informa- tion is not supplied, the in-bond move- ment will be carried out under the bond of the importing carrier. (See Item 7 for further information on transfer of liability.)
Item 6—Date— The date of the in- bond entry preparation. Since an in- bond entry can be prepared before the date of entry presentation and/or ac- ceptance, and prior to the actual ar- rival of the importing conveyance, this date should only be used for duty as- sessment purposes when the date in Item 8 is left blank. If a date is not present, the date of in-bond prepara- tion will be deemed to be the date of arrival.
Item 7—Signature of Carrier’s Agent (or Exporter)— This signature of the au- thorized agent of the bonded carrier or exporter identified previously (See Item 5) constitutes acceptance of the liability for the in-bond shipment by the party signing. A signature is re- quired except when the in-bond move- ment is under the bond of the import- ing carrier. If unsigned, the submission to Customs of an AWB requesting such a movement is evidence of the accept- ance of liability if the AWB is approved by Customs.
Item 8—Customs Officer/Date— Signa- ture of the Customs officer who author- izes the initiation of the in-bond move- ment and the date of such authoriza- tion. Customs will check to make sure merchandise is released only to a bond- ed carrier. The date is used to start the time limit for completion of the in- bond movement and for consumption entry purposes in accord with § 141.69(b) of this chapter. Customs authorization procedures which use a perforation de- vice are acceptable in lieu of the appro- priate Customs signature. The port di- rector will determine whether a signa- ture will be required in this block prior to the time that the cargo is allowed to move.
(b) Delivery of Customs form to car- rier—(1) Merchandise entered for imme- diate transportation without appraise- ment. When merchandise is entered for immediate transportation without ap- praisement, two copies of Customs Form 7512 or other Customs approved
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document shall be delivered to the car- rier.
(2) Merchandise entered for transpor- tation and exportation. When merchan- dise is entered for transportation and exportation, one copy of Customs For 7512 and any other Customs approved document shall be delivered to the car- rier.
(3) After delivery. After delivery, the forms or other document shall accom- pany the merchandise to the port of destination or exportation.
(c) Receipt and supervision. The agent of a bonded air carrier shall give a re- ceipt for any merchandise delivered to it for transportation in bond, and no supervision of the lading of the mer- chandise on the transporting aircraft shall be required.
(d) Split shipment—(1) Departure with- in 24 hours. Merchandise covered by a single entry and manifest (Customs Form 7512 or other Customs approved document) may be sent to the destina- tion airport on one or more aircraft. A separate manifest for each aircraft is not required if the whole shipment is sent within a single 24-hour period.
(2) Departure not within 24 hours. If any part of a shipment is sent more than 24 hours after the first part was sent, the entry and manifest copy which accompanies the first shipment shall state that the rest of the ship- ment will follow by separate aircraft. A single manifest shall be prepared for each part of the shipment sent by sepa- rate aircraft. The manifest shall be used as notice of each arrival at the destination airport.
(e) Transhipment. Merchandise sent under bond may be transferred at an intermediate airport to one or more aircraft of the same airline. This may be done without Customs supervision and notice of the transfer is not re- quired. If merchandise covered by one entry and manifest is transferred to more than one aircraft, paragraph (d) of this section applies.
(f) Sealing not required. The sealing of aircraft, aircraft compartments car- rying bonded merchandise, or the cording and sealing of bonded packages carried by the aircraft, is not required.
(g) Warning labels. The carrier shall supply and attach the warning label, as
described in § 18.4(e) of this chapter, to each bonded package.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 92–82, 57 FR 38276, Aug. 24, 1992; T.D. 00–22, 65 FR 16518, Mar. 29, 2000]
§ 122.93 Procedure at destination or exportation airport.
(a) Delivery to port director. When a bonded shipment arrives at the des- tination or exportation airport, the aircraft commander or agent shall de- liver one copy of the entry and mani- fest (Customs Form 7512 or other Cus- toms approved document) covering the shipment to the port director of that airport as notice of arrival. If the ship- ment was sent by separate aircraft more than 24 hours after the first part of the shipment was sent, then a mani- fest for each part of the shipment shall be delivered to the port director.
(b) Delivery to consignee. When the merchandise is sent under an entry for immediate transportation without ap- praisal, one copy of the manifest cov- ering the merchandise shall be deliv- ered by the carrier to the consignee. This copy is used to make entry, and may also be used as a carrier certifi- cate as provided in § 141.11(a)(4) of this chapter.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988; T.D. 00– 22, 65 FR 16518, Mar. 29, 2000]
§ 122.94 Certificate of lading for expor- tation.
(a) Required filing. This section ap- plies to merchandise entered for trans- portation and exportation by aircraft. A certificate of lading for exportation and a Customs Form 7512 or other Cus- toms approved document (see § 122.93 of this subpart) shall be filed when the merchandise reaches the final depar- ture airport. The form shall be filled out and signed at the place where air- craft clearance for the merchandise is given.
(b) Clearance not at place of final de- parture. If an aircraft is cleared at a place other than the place of final de- parture from the U.S., the aircraft commander or its authorized agent shall:
(1) Promptly report arrival of any bonded merchandise for export to the Customs officer in charge at that place; and
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19 CFR Ch. I (4–1–12 Edition)§ 122.95
(2) Submit to the Customs officer in charge the certificate received at the place the merchandise was taken on board. The clearance certificate is kept by the Customs officer in charge until departure. This procedure shall be followed at each place of landing before final de- parture.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988; T.D. 00– 22, 65 FR 15618, Mar. 29, 2000]
§ 122.95 Other provisions. Part 18 of this chapter (Transpor-
tation in Bond and Merchandise in Transit) applies to the transportation of merchandise under this subpart un- less stated otherwise.
Subpart K—Accompanied Baggage in Transit
§ 122.101 Entry of accompanied bag- gage.
Passengers who enter the U.S. on one aircraft and depart to a foreign area on another aircraft with accompanying baggage shall either:
(a) Submit their baggage to Customs for inspection; or
(b) Arrange with the importing car- rier for the baggage to be processed under regular in-transit procedures. When passengers choose not to have ac- cess to their baggage while in the U.S., the baggage shall be listed on the Air Cargo Manifest as provided in § 122.48.
§ 122.102 Inspection of baggage in transit.
(a) General baggage in transit may be inspected upon arrival, while in tran- sit, and upon exportation. Carriers shall present in-transit baggage for in- spection at any time found necessary by the port director.
(b) In-transit baggage shall be pre- sented to a Customs officer for inspec- tion and clearance before the baggage can be delivered to a passenger while in the U.S.
Subpart L—Transit Air Cargo Manifest (TACM) Procedures
§ 122.111 Application. Cargo (including manifested baggage)
which arrives and is transported under
Customs control in, through, or from, the U.S. may be transported in bond under this subpart. If cargo is not transported under this subpart, it shall be transported under other provisions of this chapter. (See subparts I and J of this part, and parts 18 and 123 of this chapter.)
§ 122.112 Definitions. The following definitions apply in
this subpart: (a) Transit air cargo. ‘‘Transit air
cargo’’ is cargo, including manifested baggage, transported under the re- quirements of this subpart.
(b) Port of arrival. The ‘‘port of ar- rival’’ is the port in the U.S. where im- ported cargo must be documented for further transportation under this sub- part.
(c) Transfer or transferred. ‘‘Transfer or transferred’’ means the change of documentation of cargo to transit air cargo for transportation. The terms also include the physical movement of the cargo from one carrier to another, and thereafter by air or surface move- ment to the port of destination.
(d) Transit air cargo manifest. ‘‘Transit air cargo manifest’’ is used in this sub- part as the shortened title for the transportation entry and transit air cargo manifest.
§ 122.113 Form for transit air cargo manifest procedures.
A manifest on Customs Form 7509 is required for transit air cargo, as pro- vided in § 122.48(c) of this part. The words ‘‘Transportation Entry and Transit Air Cargo Manifest’’ shall be printed, stamped or marked on the form and on all copies of the form re- quired for transit air cargo movement.
§ 122.114 Contents. (a) Form duplicates original manifest.
Each transit air cargo manifest shall be a duplicate of the sheet presented as part of the cargo manifest for the air- craft on which the cargo arrived in the U.S.
(b) Shipments shown on manifest—(1) Country of exportation. Each transit air cargo manifest sheet may list:
(i) Only air cargo shipments from one exporting country, with the name of the country shown in the heading; or
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(ii) Air cargo shipments from several exporting countries, with the name of the exporting country shown in the ‘‘Nature of Goods’’ column.
(2) Shipment to same port. Each transit air manifest sheet may list only those shipments manifested by way of the port of arrival for:
(i) The same Customs port of destina- tion;
(ii) The same Customs port for later exportation; or
(iii) Direct exportation from the port of arrival.
(c) Information required. Each air cargo manifest sheet shall show:
(1) The foreign port of lading; (2) The date the aircraft arrived at
the port of arrival; (3) Each U.S. port where Customs
services will be necessary due to tran- sit air cargo procedures; and
(4) The final port of destination in the U.S., or the foreign country of des- tination, for each shipment. The for- eign country destination shown on the manifest must be the final destination, as shown by airline shipping docu- ments, even though airline transport may be scheduled to end before the shipment arrives at the final destina- tion.
(d) Corrections. If corrections in the route shown on the original manifest for the cargo are required at the port of arrival to make a manifest sheet work- able as a transit air cargo manifest, the director of the port of arrival may allow the corrections.
§ 122.115 Labeling of cargo. A warning label, as required by
§ 18.4(e) of this chapter, shall be at- tached to all transit air cargo not di- rectly exported from the port of arrival before the cargo leaves the port of ar- rival.
§ 122.116 Identification of manifest sheets.
When the original cargo manifest for the aircraft on which the cargo arrives is presented by the aircraft commander or its authorized agent at the port of arrival, a manifest number will be given to the aircraft entry documents by Customs. The number given shall be used by the airline to identify all cop- ies of the transit air cargo manifest.
All copies of the manifest shall be cor- rectly numbered before cargo will be released from the port of arrival as transit air cargo.
§ 122.117 Requirements for transit air cargo transport.
(a) Transportation—(1) Port to port. Transit air cargo may be carried to an- other port only when a receipt is given, as provided in paragraph (b) of this sec- tion. The receipt may be given only to an airline which:
(i) Is a common carrier for the trans- portation of bonded merchandise; and
(ii) Has the required Customs bond on file.
(2) Exportation from port of arrival. Transit air cargo may be exported from the port of arrival only if covered by a bond on Customs Form 301, containing the bond conditions set forth in sub- part G of part 113 of this chapter, as provided in § 18.25 of this chapter.
(b) Receipt—(1) Requirements. When air cargo is to move from the port of arrival as transit air cargo, a receipt shall be given. The receipt shall be made by the airline responsible for transport or export within the general order period (see § 122.50).
(2) Contents. The receipt shall appear on each copy of the transit air cargo manifest, clearly signed and dated if required, in the following form:
Received the cargo listed herein for deliv- ery to Customs at the port of destination or exportation shown above, or for direct expor- tation. llllllllllllllllllllllll
Name of carrier (or exporter) llllllllllllllllllllllll
Attorney or agent of carrier (or exporter) llllllllllllllllllllllll
Date
(c) Responsibility for transit air cargo— (1) Direct exportation. The responsibility of the airline exporting transit air cargo for direct exportation begins when a receipt, as provided in para- graph (b) of this section, is presented to Customs.
(2) Other than direct exportation. When the transit air cargo is not for direct exportation, the responsibility of the airline receiving the cargo begins when a receipt, as provided in paragraph (b) of this section, is presented to Cus- toms.
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19 CFR Ch. I (4–1–12 Edition)§ 122.118
(3) Carting. When carting is used to deliver transit air cargo to receiving airlines, the importing airline is re- sponsible for the cargo under its own bond until a receipt is filed by the re- ceiving airline. This does not apply when the carting is done under part 112 of this chapter, at the expense of the parties involved.
(4) Importing airlines. An importing airline which has qualified as a carrier of bonded merchandise, whether reg- istered in the U.S. or a foreign area, may:
(i) Give a receipt for the air cargo; (ii) File an appropriate bond; and (iii) Deliver the cargo to an author-
ized domestic carrier for in-bond trans- portation from the port of arrival. The importing carrier’s bond covers the transportation.
(d) Split shipments. A receipt shall be given by one airline for all of the cargo shipments listed on one transit air cargo manifest sheet. Cargo shipments so listed shall be transported from the port of arrival on one aircraft or car- rier unless the use of more than one aircraft or carrier would be allowed:
(1) By § 122.92(d) under a single com- bined entry and manifest;
(2) By § 122.118(d); or (3) By § 122.119(e), permitting the use
of a surface carrier for transport.
Otherwise, all shipments on the transit air cargo manifest shall be separately documented and transported under the regular procedures for transportation of merchandise in bond (See subpart J).
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 98–74, 63 FR 51289, Sept. 25, 1998]
§ 122.118 Exportation from port of ar- rival.
(a) Application. Transit air cargo may be transferred for exportation from any port of arrival under this section. The port director may require any super- vision necessary to enforce the regula- tions of other Federal agencies.
(b) Time. Transit air cargo shall be exported from the port of arrival with- in 10 days from the date the exporting airline receives the cargo. After the 10- day period, the individual cargo ship- ments must be made the subject of in- dividual entries, as appropriate.
(c) Transit air cargo manifest copies. Three copies of the transit air cargo manifest shall be filed with Customs.
(1) Review copy. The importing airline shall file a copy of each transit air cargo manifest sheet covering any cargo shipment that will be transferred for direct exportation. This filing shall be made as soon as the exporting air- line has been chosen. The exporting airline need not give receipt on the re- view copy for the cargo to be trans- ferred, but the name of the exporting airline shall be placed on the copy.
(2) Exportation copy. The exportation copy shall be filed by the exporting air- line when clearance documents are pre- sented to Customs.
(3) Clearance copy. The clearance copy shall be filed with the exporting air- craft’s clearance documents. The exportation and clearance copies shall show the exporting airline’s re- ceipt for the cargo, aircraft number, flight number, and the date.
(d) Direct export on different aircraft. Transit air cargo shipments which are listed on one aircraft transit air cargo manifest sheet may be directly ex- ported on different aircraft of the ex- porting airline. If this occurs, two addi- tional copies of the transit air cargo manifest shall be filed for each ship- ment or group of shipments trans- ported in other aircraft. Each copy of the transit air cargo manifest shall be clearly marked to show which ship- ment or shipments listed are covered by the manifest copy.
(e) Direct export by another airline. If shipments listed on one transit air cargo manifest sheet are not exported from the same port on the same air- line, separate export entries on Cus- toms Form 7512, as required by § 18.25 of this chapter, shall be filed.
(f) Post entered air cargo. Air cargo not listed on the manifest (i.e., over- ages) which has been post entered under § 122.49(b) may be exported from the port of origin under this subpart. If this occurs, four copies of the air cargo manifest, Customs Form 7509, marked ‘‘Post Entry’’, shall be provided. All re- quirements of § 122.44(b) shall be fol- lowed in using this procedure.
(g) Review. The review copy of the transit air cargo manifest sheets must be reviewed by Customs as required for
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the carrier manifest copy in § 122.120(g). The reviewing officer shall take the proper action if a license is necessary for any cargo. The exporting airline shall be notified that any transit air cargo which is not covered by the re- quired license must be placed under constructive Customs custody in a spe- cial area of the airline’s terminal until the license is obtained.
§ 122.119 Transportation to another U.S. port.
(a) Application. Air cargo shipments may be transferred for transportation as transit air cargo from the port of ar- rival to another port in the U.S. under this section. The director of the port of arrival may require Customs super- vision of the transfer.
(b) Time. Transit air cargo traveling to a final port of destination in the U.S. shall be delivered to Customs at its destination within 15 days from the date the receiving airline gives the re- ceipt for the cargo at the port of ar- rival.
(c) Transit air cargo manifest copies. Four copies of the transit air cargo manifest, including a carrier manifest copy, shall be filed by the airline giv- ing a receipt for moving the cargo ship- ments to their destination. The permit copy is used and kept by Customs at the port of arrival.
(d) Failure to deliver on time—(1) Proce- dure. If transit air cargo does not ar- rive at the destination port on time, the director of the port of arrival shall take action as provided in §§ 18.6 and 18.8 of this chapter. The amount of duty and tax shall be decided at the port of arrival on the basis of informa- tion:
(i) On the permit copy kept at the port of arrival; and
(ii) Obtained from the carriers as nec- essary. The director of the port of arrival shall notify the airline that presented a re- ceipt for the cargo that there has been a failure to deliver.
(2) Responsibility of airline. When the airline that presented a receipt for the cargo receives notice of discrepancies, the airline shall answer within 90 days of the date of such notice to the direc- tor of the port of arrival. The answer shall provide any information or docu-
ments related to the value and descrip- tion of the cargo involved that the receipting airline and the importing airline can produce.
(e) Surface movement to port of destina- tion. If an aircraft arrives at the port of arrival with cargo to be carried as transit air cargo, the cargo may be transferred to another carrier for sur- face movement to the port of destina- tion. The transfer is allowed under the following conditions:
(1) The bond of the party receiving the cargo for surface movement must cover the transfer and surface move- ment;
(2) The description of the cargo on the transit air cargo manifest must be complete;
(3) The entire shipment listed in the transit air cargo manifest must be shipped from the port of arrival to the port of destination by the same surface carrier; and
(4) The requirements of § 122.114(b) must be followed.
[T.D. 88–12, 54 FR 9292, Mar. 22, 1988; T.D. 00– 22, 65 FR 16518, Mar. 29, 2000]
§ 122.120 Transportation to another port for exportation.
(a) Application. Air cargo may be transferred as transit air cargo at the port of arrival for transportation to an- other port in the U.S. and later expor- tation under this section.
(b) Supervision—(1) From port of arrival to exportation port. The director of the port of arrival shall order any super- vision found necessary for the transfer of transit air cargo for transportation to another port for export.
(2) At exportation port. Customs shall be notified far enough in advance to be able to make any required supervision of the lading of cargo, and to enforce any other Federal agency require- ments, when transit air cargo is ready for lading on the exporting aircraft.
(c) Time. Transit air cargo covered by this section shall be delivered to Cus- toms at the port of exportation within 15 days from the date of receipt by the forwarding airline.
(d) Transit air cargo manifest copies. Five copies of the transit air cargo manifest shall be filed with Customs.
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19 CFR Ch. I (4–1–12 Edition)§ 122.131
(1) Port of arrival. Two copies of the transit air cargo manifest, marked sep- arately as ‘‘permit’’ and ‘‘control’’ cop- ies, shall be filed with Customs at the port of arrival. Filing shall be made when the arriving aircraft enters, or before the general order period ends, by the airline which presents a receipt to transport the cargo from the port of ar- rival to the port of destination.
(2) Port of exportation. Three copies of the transit air cargo manifest shall be filed at the port of exportation.
(i) Carrier manifest copy. The carrier manifest copy shall be attached to the listing of cargo shipments and sub- mitted when the cargo arrives at the exportation port.
(ii) Exportation and clearance copies. Two copies, marked separately as ‘‘ex- portation’’ and ‘‘clearance’’ copies, shall be filed with Customs at the ex- portation port.
(e) Delivery to exporting airline. When the transit air cargo arrives at the ex- portation port, it may be delivered di- rectly to the exporting carrier, to- gether with the exportation and clear- ance copies. The name of the exporting carrier shall be clearly noted on the carrier manifest copy, which shall then be delivered to Customs.
(f) Storage by exporting airline. The ex- porting carrier shall keep all cargo listed on the transit air cargo manifest in one storage space. This storage space shall be separate from the area in which special shipments which require a license under paragraph (g) of this section are stored.
(g) Export license—(1) Review. A Cus- toms officer shall review the carrier manifest copy of the transit air cargo manifest to make sure that the export licensing requirements of other Fed- eral agencies have been followed.
(2) Information inadequate. If the manifest information is not enough for Customs to determine that a license or other requirement applies, then the transit air cargo shall be checked by examination, or by inspection of the air waybills or attached invoices.
(3) When license or other requirement applies. The exporting airline shall be notified at once if Customs finds that the shipment cannot be exported with- out a license or other approval. The shipment shall then be put under con-
structive Customs custody in a special area set aside for the shipment in the exporting airline’s cargo terminal.
(h) Filing of exportation and clearance copies—(1) Information. When filed with Customs, the exportation and clear- ance copies of the transit air cargo manifest shall each show:
(i) The aircraft number; (ii) The aircraft flight number; and (iii) The date. (2) Filing. The exporting airline shall
file the exportation and clearance cop- ies before the aircraft that carries the transit air cargo departs. The clear- ance copies shall be grouped together and not mixed in with other outward manifest sheets. The exportation cop- ies shall be grouped together, and kept separate from the outward clearance documents.
(i) Cargo not laden at same airport by same airline. If all the cargo listed on one transit air cargo manifest sheet is not laden for exportation from the same U.S. airport by the same airline, then separate entries on Customs Form 7512 are required for each cargo ship- ment listed:
(1) For transportation and expor- tation under subpart J of this part; or
(2) For direct exportation under § 18.25 of this chapter.
(j) Cargo laden on more than one air- craft of same airline. When any cargo shipment listed on the same transit air cargo manifest must be exported on more than one aircraft of the same air- line, § 122.118(d) applies.
(k) Failure to deliver. If all or part of the cargo listed on the transit air cargo manifest is not accounted for with an exportation copy within 40 days, the director of the port of arrival shall take action as provided in § 122.119(d).
[T.D. 88–12, 53 FR 9292, Mar. 25, 1988, as amended by T.D. 98–74, 63 FR 51289, Sept. 25, 1998; T.D. 00–22, 65 FR 16518, Mar. 29, 2000]
Subpart M—Aircraft Liquor Kits § 122.131 Application.
(a) Liquor and tobacco. Subpart M ap- plies to:
(1) Duty-free and tax-free liquor and tobacco; and
(2) Duty-paid and tax-paid liquor and tobacco which has been placed in the
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U.S. Customs and Border Protection, DHS; Treasury § 122.134
same liquor kit as duty-free and tax- free liquor and tobacco.
(b) Aircraft. Subpart M applies to all commercial aircraft on domestic or foreign flights operating into, from and between U.S. airports, which are car- rying:
(1) Duty-free and tax-free liquor and tobacco withdrawn from bond under section 309, Tariff Act of 1930, as amended (19 U.S.C. 1309); or
(2) Other liquor or tobacco on which duty or taxes have not been paid.
This includes any aircraft carrying duty-free and tax-free liquor under 19 U.S.C. 1309, or other Federal law, al- though the aircraft is not required to enter, clear or report arrival.
§ 122.132 Sealing of aircraft liquor kits.
(a) Sealing required. Aircraft liquor kits shall be sealed on board the air- craft by crewmembers before the air- craft lands in the U.S. The liquor kits shall be kept under seal while on the ground unless taken to an authorized airline in-bond liquor storeroom.
(b) Exception. When an aircraft is traveling between airports in the U.S., in a trade for which duty-free and tax- free liquor is used during flight, sealing the liquor kits on board during trans- porting stopovers is not required if:
(1) The liquor kits are kept on board the aircraft; and
(2) The port director finds that seal- ing is not required for revenue protec- tion.
(c) Seals to be used. Aircraft liquor kits shall be sealed with serially num- bered, Customs approved seals. The air- line shall use seals supplied by an ap- proved manufacturer, as provided in part 24 of this chapter. A small number of seals may be obtained from the port director.
(d) Removing seals. When sealed liquor kits are on the ground, the Customs seals may be broken only by:
(1) A Customs officer; or (2) Authorized airline personnel, in
an authorized airline in-bond liquor storeroom.
(e) Resealing. When a Customs officer breaks the seal of a liquor kit to check the contents, the action shall be re- corded on the liquor kit stores list, and
the liquor kit must be resealed with an approved seal.
§ 122.133 Stores list required on ar- rival.
(a) When required, contents. Three copies of an incoming stores list shall be prepared for each liquor kit on board before an aircraft lands. The in- coming stores list shall state for each type of liquor and bottle size:
(1) Number of full bottles; (2) Number of partially filled bottles;
and (3) Total number of bottles.
If the carrier chooses not to state the type of liquor for each size bottle, any duty or taxes assessed for any shortage shall be set at the highest rate avail- able for the alcoholic beverages in the kit.
(b) Disposition of stores list copies. One copy of the incoming stores list shall be placed in the liquor kit before it is sealed. The remaining two copies shall be used as follows:
(1) One copy shall be filed with the inward cargo manifest; and
(2) One copy shall be kept for filing with the outward cargo manifest if the liquor kit was laden for export.
(c) For aircraft not required to enter and/or clear. If an aircraft is not re- quired to enter and/or clear:
(1) One copy shall be given to the Customs officer upon arrival; and
(2) One copy shall be kept to be given to the Customs officer before departure of the aircraft.
(d) When stores list not prepared. When a complete stores list is not prepared before landing, liquor kits must be sealed on board, and the seal number shall be recorded on the stores list. When the aircraft lands, the liquor shall be taken at once to the Customs office and the stores list shall be com- pleted by crew members under Customs supervision.
§ 122.134 When airline does not have in-bond liquor storeroom.
(a) Handling of liquor kits. An aircraft may land at an airport where the air- line involved does not have an author- ized in-bond liquor storeroom. When this occurs, the liquor kits, under any supervision found necessary by the port director, may be:
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19 CFR Ch. I (4–1–12 Edition)§ 122.135
(1) Kept on board the aircraft; (2) Removed and replaced upon the
aircraft; or (3) Removed and replaced aboard an-
other aircraft. (b) Sealing of kits. Aircraft liquor kits
covered by this section shall remain sealed until departure. Customs offi- cers may remove the seal to check the contents of the liquor kits, but shall reseal the kits as provided in § 122.132(e).
(c) Restocking. Additional amounts of duty-free and tax-free liquor and to- bacco obtained in the U.S. shall be laden in a separate container on any aircraft covered by this section. The lading shall be done under any super- vision the port director finds nec- essary. The additional liquor and to- bacco shall be shown on separate out- ward stores lists.
§ 122.135 When airline has in-bond liq- uor storeroom.
(a) Restocking. Liquor kits on board an aircraft landing at an airport where the airline involved has an authorized in-bond liquor storeroom may be re- moved and restocked in the storeroom.
(b) Inventory record. Each authorized airline in-bond liquor storeroom shall keep an inventory record in a form that satisfies the port director. The in- ventory record shall account for the re- ceipt and use of all aircraft liquor and tobacco stores on which duty and/or tax has not been paid.
(c) Airline employees. Any airline which has an authorized in-bond liquor store room at an airport shall give the port director:
(1) A list of names of all airline em- ployees authorized to break Customs seals on liquor kits in the in-bond liq- uor storeroom; and
(2) Signature samples of the author- ized employees.
(d) Opening of aircraft liquor kits. Air- craft liquor kits received in an author- ized storeroom shall be opened only by authorized airline employees, or by Customs officers.
(e) Contents of liquor kits. The employ- ees who break the seals on aircraft liq- uor kits shall check the contents at once. The employees shall immediately report to the port director any:
(1) Evidence of seal tampering;
(2) Difference between the seal num- bers on the liquor kits and those re- corded on the stores list; and
(3) Differences in quantity as shown on the stores list.
(f) Handling the liquor kits—(1) Partial bottles. Partial bottles of liquor may be removed from incoming liquor kits and kept in the in-bond liquor storeroom to be destroyed or combined with other partial bottles. This may be done only under Customs supervision. The costs of Customs supervision shall be paid by the airline.
(2) Exportation. The contents of in- coming liquor kits may be commingled to restock outbound liquor kits. The commingling must take place in the airline in-bond liquor storeroom, using liquor bottles on which the seal has not been broken.
(3) Sealing. All liquor kits shall be sealed as provided in § 122.132(a) before removal from the in-bond liquor store- room. All seal numbers shall be listed on an outgoing stores list.
§ 122.136 Outgoing stores list.
(a) Preparation. Two copies of a seri- ally numbered outgoing stores list shall be prepared by the airline for all liquor and tobacco withdrawn from bonded or non-tax-paid stock and added to liquor kits. The outgoing stores list shall show the total number of bottles for each type liquor, the brand, and the size of each bottle.
(b) Use of copies. The two copies of the outgoing stores list shall be used as follows:
(1) One copy shall be placed and kept in the outgoing kits until the aircraft leaves the U.S.; and
(2) One copy must be filed either with the outgoing cargo manifest (for air- craft required to clear) or with Cus- toms before departing, as provided in § 122.133(c).
In both cases, the third copy of the in- ward stores list shall be filed with the outgoing stores list. (See § 122.133(c)).
§ 122.137 Certificate of use.
Any liquor or tobacco withdrawn from the in-bond storeroom and shown on the outgoing stores list shall be re- corded, when exported, on a certificate of use prepared by the airline.
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U.S. Customs and Border Protection, DHS; Treasury § 122.144
Subpart N—Flights to and From the U.S. Virgin Islands
§ 122.141 Definitions.
Under subpart N, the following defi- nitions apply:
(a) United States. The term ‘‘U.S.’’ in- cludes the several States, the District of Columbia and Puerto Rico.
(b) Foreign area. The term ‘‘foreign area’’ means any area other than the several States, the District of Colum- bia and Puerto Rico.
§ 122.142 Flights between the U.S. Vir- gin Islands and a foreign area.
(a) Aircraft arriving in the U.S. Virgin Islands. Aircraft arriving in the U.S. Virgin Islands from a place other than the U.S. are governed by the provisions of this part which apply to aircraft ar- riving in the U.S. from a foreign area.
(b) Aircraft leaving the U.S. Virgin Is- lands. Aircraft leaving the U.S. Virgin Islands for a place other than the U.S. are governed by the provisions of this part that apply to aircraft leaving the U.S. for a foreign area.
§ 122.143 Flights from the U.S. to the U.S. Virgin Islands.
(a) In general. Aircraft on flights from the U.S. to the U.S. Virgin Is- lands are governed by the provisions of this part that apply to aircraft on a flight within the U.S.
(b) Bureau of the Census. When Bu- reau of the Census regulations (15 CFR part 30) apply to aircraft carrying mer- chandise to the U.S. Virgin Islands from the U.S., permission to depart must be obtained from the port direc- tor. Permission to depart shall not be given unless:
(1) A complete manifest and Ship- per’s Export Declarations as required by 15 CFR part 30 are filed; or
(2) An incomplete manifest under 15 CFR 30.24 is filed and the complete manifest and Shipper’s Export Declara- tions are filed within 7 business days after departure.
§ 122.144 Flights from the U.S. Virgin Islands to the U.S.
(a) Aircraft not inspected. This para- graph applies to aircraft departing from the U.S. Virgin Islands and arriv-
ing in the U.S., without having been in- spected prior to departure.
(1) On departure. Aircraft leaving the U.S. Virgin Islands for the U.S. are governed by the provisions of this part that apply to aircraft leaving the U.S. for a foreign area.
(2) On arrival. Aircraft departing from the U.S. Virgin Islands and arriv- ing in the U.S. are governed by the pro- visions of this part that apply to air- craft arriving in the U.S. from a for- eign area.
(b) Supervision. When aircraft are in- spected by Customs in the U.S. Virgin Islands, the port director may order any supervision found necessary to pro- tect the revenue and enforce the laws administered by Customs. This in- cludes the collection of duty and taxes on articles bought in the U.S. Virgin Islands.
(c) Procedure. When an aircraft that was inspected in the U.S. Virgin Is- lands arrives in the U.S. from the U.S. Virgin Islands, the aircraft commander must be able to give evidence of the in- spection to Customs on request. Evi- dence of the inspection shall be given in the following manner:
(1) A certificate on Customs Form 7507 shall be presented for aircraft reg- istered in the U.S.:
(i) Of domestic origin; or (ii) Of foreign origin, if duty has been
paid and the aircraft is proceeding car- rying neither passengers nor cargo, or with cargo and/or passengers solely from the U.S. Virgin Islands. Two copies of the certificate shall be given to the inspecting Customs offi- cers in the U.S. Virgin Islands by the aircraft commander. The certificate shall be marked with the port and date of inspection, and must be signed by the inspecting officer. The original of the certificate must be returned to the aircraft commander, who must keep the certificate for a reasonable time after the end of the flight to the U.S. If requested, the certificate shall be pre- sented to Customs. The certificate may be destroyed or disposed of after a rea- sonable time at the discretion of the aircraft commander or agent.
(2) A permit to proceed on Customs Form 7507 shall be presented for air- craft registered in the U.S. which are:
(i) Of foreign origin;
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19 CFR Ch. I (4–1–12 Edition)§ 122.151
(ii) Not duty paid; and (iii) Proceeding carrying neither pas-
sengers nor cargo. The permit to proceed, as required by subpart F of this part, shall be marked with the port and date of inspection, and shall be signed by the inspecting officer in the U.S. Virgin Islands.
(3) A permit to proceed on Customs Form 7507 shall be presented for air- craft registered in a foreign country and proceeding carrying neither pas- sengers nor cargo. The permit to pro- ceed, as required under subpart F of this part, shall be marked with the port and date of inspection, and shall be signed by the inspecting officer in the U.S. Virgin Islands.
(4) A permit to proceed, or other doc- ument, shall be filed as required under subpart I of this part for an aircraft carrying residue cargo and/or pas- sengers. The permit to proceed shall be marked with the port and date of in- spection, and it must be signed by the inspecting officer in the U.S. Virgin Is- lands.
Subpart O—Flights to and From Cuba
§ 122.151 Definitions. Under this subpart, the following
definitions apply: (a) United States. The term ‘‘U.S.’’ in-
cludes the several States, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico.
(b) Cuba. The term ‘‘Cuba’’ does not include the Guantanamo Bay Naval Station.
§ 122.152 Application. This subpart applies to all aircraft
entering or departing the U.S. to or from Cuba except public aircraft.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 122.153 Limitations on airport of entry or departure.
(a) Aircraft arrival and departure. The owner or person in command of any aircraft clearing the United States for or entering the United States from Cuba, whether the aircraft is departing on a temporary sojourn or for export,
must clear or obtain permission to de- part from, or enter at, the Miami Inter- national Airport, Miami, Florida; the John F. Kennedy International Air- port, Jamaica, New York; the Los An- geles International Airport, Los Ange- les, California; or any other airport that has been approved by CBP pursu- ant to paragraph (b) of this section, and must comply with the require- ments in this part unless otherwise au- thorized by the Assistant Commis- sioner, Office of Field Operations, CBP Headquarters.
(b) CBP approval of airports of entry and departure.
(1) Airports eligible to apply. An inter- national airport, landing rights air- port, or user fee airport (as defined in § 122.1 and described in subpart B of this part) that is equipped to facilitate passport control and baggage inspec- tion, and otherwise process inter- national flights and has an Office of Foreign Assets Control (OFAC) li- censed carrier service provider that is prepared to provide flights between the airport and Cuba, may request CBP ap- proval to become an airport of entry and departure for aircraft traveling to or from Cuba.
(2) Application and approval procedure. The director of the port authority gov- erning the airport must send a written request to the Assistant Commissioner, Office of Field Operations, CBP Head- quarters, requesting approval for the airport to be able to accept aircraft traveling to or from Cuba. Upon deter- mination that the airport is suitable to provide such services, CBP will notify the requestor that the airport has been approved to accept aircraft traveling to or from Cuba, and that it may imme- diately begin to accept such aircraft. For reference purposes, approved air- ports will be listed on the CBP Web site and in updates to paragraph (c) of this section.
(c) List of airports authorized to accept aircraft traveling to or from Cuba. For reference purposes, the following is a list of airports that have been author- ized by CBP to accept aircraft trav- eling between Cuba and the United States.
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U.S. Customs and Border Protection, DHS; Treasury § 122.161
Location Name
Jamaica, New York ...... John F. Kennedy International Air- port
Los Angeles, California Los Angeles International Airport Miami, Florida .............. Miami International Airport
[CBP Dec 11–05, 76 FR 5060, Jan. 28, 2011]
§ 122.154 Notice of arrival. (a) Application. All aircraft entering
the U.S. from Cuba must give advance notice of arrival, unless it is an Office of Foreign Assets Control (OFAC) ap- proved scheduled commercial aircraft of a scheduled airline.
(b) Procedure for giving advance notice of arrival. The commander of an air- craft covered by this section shall give the advance notice of arrival not less than one (1) hour before crossing the U.S. coast or border. Notice shall be given either:
(1) Through Federal Aviation Admin- istration flight notification procedure (see International Flight Information Manual, Federal Aviation Administra- tion); or
(2) Directly to the CBP officer in charge at the applicable airport au- thorized pursuant to § 122.153.
(c) Contents of notice. The advance no- tice of arrival shall state:
(1) Type of aircraft and registration number;
(2) Name of aircraft commander; (3) Number of U.S. citizen passengers; (4) Number of alien passengers; (5) Place of last foreign departure; (6) Estimated time and location of
crossing the U.S. coast or border; and (7) Estimated time of arrival. (d) Private Aircraft. In addition to
these requirements, private aircraft must also give notice of arrival pursu- ant to § 122.22 of this part.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 99–71, 64 FR 53628, Oct. 4, 1999; CBP Dec. 08-43, 73 FR 68313, Nov. 18, 2008; CBP Dec 11–05, 76 FR 5061, Jan. 28, 2011]
§ 122.155 Document to be presented upon arrival.
Upon arrival, the aircraft commander shall present:
(a) A manifest of all passengers on board, as required by the U.S. Immi- gration and Naturalization Service pursuant to 8 CFR 231.1(b), to an officer of the U.S. Immigration and Natu-
ralization Service or to a Customs offi- cer acting as an Immigration officer;
(b) The documents required by sub- part E of this part.
§ 122.156 Release of passengers. No passengers arriving from Cuba by
aircraft will be released by Customs, nor will the aircraft be cleared or per- mitted to depart before the passengers are released by an officer of the Immi- gration and Naturalization Service or by a Customs officer acting on behalf of that agency.
§ 122.157 Documents required for clearance.
As a condition precedent to clear- ance, the aircraft commander shall present to Customs:
(a) The documents required by Sub- part H of this part; and
(b) A validated license issued by the Department of Commerce, as provided for in 15 CFR 371.19 or a license issued by the Department of State, as pro- vided in 22 CFR part 123.
§ 122.158 Other entry and clearance re- quirements.
All other provisions of this part re- lating to entry and clearance of air- craft are applicable to aircraft subject to this subpart.
Subpart P—Public Aircraft [Reserved]
Subpart Q—Penalties
§ 122.161 In general. Except as provided in subpart S of
this part, any person who violates any Customs requirements stated in this part, or any regulation that applies to aircraft under § 122.2, is, in addition to any other applicable penalty, subject to civil penalty of $5,000 as provided by 19 U.S.C. 1644 and 1644a, except for overages, and failure to manifest nar- cotics or marihuana, in which cases the penalties set forth in section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584) apply, or for failure to report arrival or to present the documents required by § 122.27(c) of this part in which cases the penalties set forth in section 436, Tariff Act of 1930, as amended (19
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19 CFR Ch. I (4–1–12 Edition)§ 122.162
U.S.C. 1436) apply, and any aircraft used in connection with any such viola- tion shall be subject to seizure and for- feiture, as provided for in the Customs laws. A penalty or forfeiture may be mitigated under part 171 of this chap- ter.
[T.D. 91–61, 56 FR 32086, July 15, 1991, as amended by T.D. 98–74, 63 FR 51289, Sept. 25, 1998]
§ 122.162 Failure to notify and explain differences in air cargo manifest.
(a) Application. Penalties shall be as- sessed if differences in an air cargo manifest (overages or shortages) are discovered and:
(1) The required notice and expla- nation are not made in time;
(2) The port director is not satisfied that the differences were caused by clerical error or other mistake;
(3) There has been a loss of revenue to the U.S.; or
(4) The port director is not satisfied that there was a valid reason for delay in reporting any differences.
(b) Definition. Under this section, ‘‘clerical error or other mistake’’ means a non-negligent, inadvertant, or typographical mistake in the prepara- tion, assembly, or submission (elec- tronically or otherwise) of the mani- fest.
(c) Repeated differences. If repeated differences are found in manifests filed by the same person, it may be deter- mined that the differences were a re- sult of negligence and not clerical error or other mistake.
(d) Knowledge. A penalty may be as- sessed for differences in a manifest that are unknown to the aircraft com- mander or owner.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 99–64, 64 FR 43266, Aug. 10, 1999]
§ 122.163 Transit air cargo traveling to U.S. ports.
(a) Application. If transit air cargo is traveling from the port of arrival to another U.S. port under § 122.119, a li- ability shall be assessed, as set out in § 18.8 of this chapter if there has been:
(1) Shortage in delivery; (2) Irregular delivery; or (3) Non-delivery.
(b) Liabilities assessed. The liabilities assessed under this section are imposed as liquidated damages under a carrier’s bond.
(c) Value of merchandise. The port di- rector shall determine the value of merchandise for assessment purposes based on the following factors:
(1) Any data or documents available to the airline which presented a receipt for the transit air cargo, and available to the importing airline relating to the description and value of the cargo; and
(2) Other information available to the port director relating to the same or similar merchandise. If the data or documents required by this section are not submitted within 90 days of the date requested, the port director shall determine value on the basis of other available information. The transit air cargo manifest does not reflect value.
§ 122.164 Transportation to another port for exportation.
If transit air cargo is traveling from the port of arrival to another U.S. port for later exportation, any liquidated damages for shortages or irregular de- livery shall be assessed as provided in § 122.163.
§ 122.165 Air cabotage.
(a) The air cabotage law (49 U.S.C. 41703) prohibits the transportation of persons, property, or mail for com- pensation or hire between points of the U.S. in a foreign civil aircraft. The term ‘‘foreign civil aircraft’’ includes all aircraft that are not of U.S. reg- istration except those foreign-reg- istered aircraft leased or chartered to a U.S. air carrier and operated under the authority of regulations issued by the Department of Transportation, as pro- vided for in 14 CFR 121.153, and those aircraft used exclusively in the service of any government.
(b) Customs officers detecting pos- sible violations shall report the matter to Headquarters, Attention: Entry Pro- cedures and Carriers Branch. Liability should not be assessed under 49 U.S.C. Chapter 463 pending instructions from Headquarters since certain limited do- mestic transportation by foreign civil aircraft is permitted under regulations
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U.S. Customs and Border Protection, DHS; Treasury § 122.167
issued by the Department of Transpor- tation.
[T.D. 88–12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 98–74, 63 FR 51289, Sept. 25, 1998; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 122.166 Arrival, departure, discharge, and documentation.
(a) Liability for civil penalties. Except as otherwise provided, any aircraft pilot violation of the requirements of section 433, Tariff Act of 1930, as amended, (19 U.S.C. 1433), with respect to the following actions shall be liable for civil penalties as provided by sec- tion 436, Tariff Act of 1930, as amended (19 U.S.C. 1436), and described in para- graph (c) of this section:
(1) Advance notification of arrival; (2) Report of arrival; (3) Landing of aircraft; (4) Presentation of documentation; (5) Departure from the port, place, or
airport of arrival without authoriza- tion; or
(6) Discharge of passenger, or mer- chandise (to include baggage) without authorization.
(b) Liability for criminal penalties. Upon conviction, any aircraft pilot vio- lating any of the Customs require- ments described in paragraph (a) of this section shall, in addition to civil penalties be subject to criminal pen- alties as set forth in section 436, Tariff Act of 1930, as amended, (19 U.S.C. 1436), and described in paragraph (c) of this section. If the aircraft has or is discovered to have had on board any merchandise (other than the equiva- lent, for a vessel, of sea stores) the im- portation of which into the U.S. is pro- hibited, that person shall be subject to an additional fine as set forth in 19 U.S.C. 1436 and described in paragraph (c) of this section.
(c) Civil and criminal penalties de- scribed—(1) Civil penalty. The pilot of any aircraft who fails to comply with the requirements of this section is lia- ble for a civil penalty of $5,000 for the first violation, and $10,000 for each sub- sequent violation. Any aircraft used in connection with any such violation is subject to seizure and forfeiture.
(2) Criminal penalty. In addition to the civil penalty prescribed for viola- tion of this section, the pilot of any aircraft who intentionally fails to com-
ply with the requirements of this sec- tion is liable, upon conviction, for a fine of not more than $2,000 or impris- onment for 1 year, or both. If the air- craft is found to have, or to have had, on board any merchandise the importa- tion of which is prohibited, such indi- vidual is liable for an additional fine of not more than $10,000 or imprisonment for not more than 5 years, or both.
(3) Additional civil penalty. If any mer- chandise, other than the equivalent of vessel sea stores, is imported or brought into the U.S. aboard an air- craft which has failed to comply with the requirements prescribed by this section, the pilot of the aircraft shall be liable for a civil penalty equal to the value of the merchandise, and the merchandise may be seized and for- feited, unless properly entered by the importer or consignee.
§ 122.167 Aviation smuggling. (a) Civil penalties. Any aircraft pilot
who transports, or any person on board any aircraft who possesses prohibited or restricted merchandise knowing, or intending, that the merchandise will be introduced into the U.S. contrary to law shall be subject to a civil penalty of twice the value of the merchandise involved, but not less than $10,000, as prescribed in section 590, Tariff Act of 1930, as amended (19 U.S.C. 1590). Any aircraft used in connection with, or in aiding or facilitating, any violation of 19 U.S.C. 1590, whether or not any per- son is charged in connection with such violation, may be seized and forfeited in accordance with Customs laws.
(b) Criminal penalties. Any aircraft pilot or person who intentionally vio- lates 19 U.S.C. 1590 is, upon conviction, subject to the criminal penalties of a fine of not more than $10,000 or impris- onment for not more than 5 years, or both, if none of the merchandise in- volved is a controlled substance. More severe penalties are provided in 19 U.S.C. 1590 if the smuggled merchan- dise is a controlled substance. In such case, a violator is liable for a fine of not more than $250,000 or imprisonment for not more than 20 years, or both.
(c) For purposes of imposing civil penalties under this section, any of the following acts, when performed within 250 miles of the territorial sea of the
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United States, shall be evidence that the transportation or possession of merchandise was unlawful and shall in- dicate that the purpose of the transfer was to make it possible for such mer- chandise, or any part of it, to be intro- duced into the U.S. unlawfully. For purposes of seizure and forfeiture, the following acts shall be evidence that an aircraft was used in connection with, or to aid or facilitate, a violation of this section;
(1) The operation of an aircraft with- out lights during such times as lights are required to be displayed under ap- plicable law.
(2) The presence on an aircraft of an auxiliary fuel tank which is not in- stalled in accordance with applicable law.
(3) The failure to correctly identify the aircraft by registration number and country of registration, when re- quested to do so by a customs officer or other government authority.
(4) The external display of false reg- istration numbers or false country of registration.
(5) The presence on board of unmanifested merchandise, the impor- tation of which is prohibited or re- stricted.
(6) The presence on board of con- trolled substances which are not mani- fested or which are not accompanied by the permits or licenses required under Single Convention on Narcotic Drugs or other international treaty.
(7) The presence of any compartment or equipment which is built or fitted out for smuggling.
Subpart R—Air Carrier Smuggling Prevention Program
SOURCE: T.D. 91–25, 56 FR 12347, Mar. 25, 1991, unless otherwise noted.
§ 122.171 Description of program. The Air Carrier Smuggling Preven-
tion Program (ACSPP) is designed to enlist the cooperation of the air car- riers, as defined in 19 U.S.C. 1584 note, in Customs efforts to prevent the smuggling of controlled substances. If carriers develop and implement thor- ough and complete internal security procedures at ACSPP designated termi- nals and foreign departure and inter-
mediate points, the opportunity for their conveyances being used for trans- portation of controlled substances will be greatly reduced. Participation in the program is voluntary, and may be limited to specific routes. Should a controlled substance be introduced into the United States on a conveyance owned or operated by a participating carrier however, the carrier will be ex- empt from seizure and penalties should it satisfy the provisions of § 122.175 of this part. The program will be oper- ational for a period of 2 years from De- cember 18, 1989, pursuant to 19 U.S.C. 1584 note.
§ 122.172 Eligibility. Any air carrier whose international
flights arrive at, or depart from, any of the designated test airports, Miami International Airport, Dallas-Fort Worth International Airport, or Los Angeles International Airport, is eligi- ble for participation in the ACSPP.
§ 122.173 Application procedures. (a) Application. An air carrier which
wishes to participate in the ACSPP shall submit an application to the As- sistant Commissioner, Office of Field Operations, in which it:
(1) Identifies specific routes and des- ignated departure points and ACSPP airports for which application is made;
(2) Certifies that it has developed and will continue to maintain standard op- erating procedures (SOP) which are de- signed to safeguard the integrity of its employees, cargo and conveyances. The application shall be accompanied by three (3) copies of the SOP developed by the air carrier.
(b) Approval criteria. Upon receipt, each application will be reviewed to de- termine whether the procedures con- tained therein meet the requirements of the ACSPP. In determining whether a SOP submitted by an applicant car- rier contains sufficient detail to assure the proper level of care and diligence required under the provisions of the ACSPP, the Assistant Commissioner, Office of Field Operations, will apply uniform standards and verify that, at a minimum, procedures are in place which:
(1) Assure positive security back- ground checks are performed on all
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carrier employees, both those em- ployed within the United States and without, who have access to baggage, cargo or secure areas on participating routes, to the extent permitted by law;
(2) Assure a system of positive bag- gage and cargo identification is em- ployed at all terminals used by the car- rier;
(3) Assure the carrier employs a sys- tem to assure that no unmanifested cargo is placed on board the convey- ance or brought into the United States on any of their conveyances;
(4) Assure the carrier has specific procedures through which it will notify Customs should it discover any unmanifested or improperly manifested cargo on any of its conveyances or in any area subject to its control;
(5) Assure the carrier has an effective and practical employee awareness training program in place; and
(6) Assure thorough security meas- ures are implemented at all foreign de- parture points on ACSPP participating routes which will assure that the car- rier has control and knowledge of the baggage, cargo, passenger and other materials placed on board its aircraft.
(c) Acceptance and notification. Upon verification by Customs that a car- rier’s SOP meets all the criteria out- lined in § 122.173(b) of this part, the car- rier will be notified that its application to the ACSPP has been accepted. Ac- ceptance into the ACSPP is made with the understanding and expectation that the carrier will continue to act with the highest degree of care and diligence required under law and that it will abide by and perform all ele- ments of its approved SOP.
[T.D. 91–25, 56 FR 12347, Mar. 25, 1991, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 122.174 Operational procedures.
(a) Participating carriers. Partici- pating carriers are required to develop and adhere to procedures whereby they will:
(1) Provide security personnel for every international arrival partici- pating in the ACSPP to conduct the following procedures:
(i) Perform a thorough internal and external search of the arriving aircraft;
(ii) Maintain total control of all pas- sengers and cargo being discharged from the aircraft to either the Customs passenger hall or to the carrier’s cargo facility;
(iii) Verify that all cargo on aircraft is properly manifested, marked and weighed and that piece counts are properly performed; and
(iv) Maintain physical security of the aircraft and ramp access to the aircraft while it is being offloaded.
(2) Provide security personnel at the foreign point of departure for every international departure which is par- ticipating in ACSPP to conduct the fol- lowing procedures:
(i) Perform a thorough internal and external search of the departing air- craft;
(ii) Maintain total control of all pas- sengers and cargo being loaded on the aircraft from either the passenger ter- minal or the carrier’s cargo facility;
(iii) Verify that all cargo placed on the aircraft is properly manifested, marked and weighed and that piece counts are properly performed;
(iv) Maintain physical security of the aircraft and ramp access to the aircraft while it is being loaded; and
(v) Maintain similar positive security measures at all foreign intermediate airports prior to the arrival of the air- craft at an ACSPP designated airport.
(b) U.S. Customs. U.S. Customs will: (1) Retain all current options avail-
able regarding the search and inspec- tion of any and all passengers, cargo and conveyances; and
(2) Provide training to carrier per- sonnel to assist the development of proper operational procedures.
§ 122.175 Exemption from penalties. Should a controlled substance be in-
troduced into the United States or dis- covered aboard an aircraft owned or op- erated by a participating carrier, or in cargo carried by a participating car- rier, on a route identified by the car- rier as one participating in the ACSPP and which has been approved by Cus- toms, the participating air carrier shall be considered to have met the test of highest degree of care and dili- gence required under law, and shall not be subject to the penalty or seizure provisions of the Tariff Act of 1930, as
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amended, if the carrier establishes at an oral presentation before the port di- rector or his designee, that the carrier was not grossly negligent nor engaged in willful misconduct, and that it had complied with all the provisions of these regulations.
§ 122.176 Removal from ACSPP. (a) Grounds for removal from ACSSPP.
The Assistant Commissioner, Office of Field Operations, may revoke or supend the privilege of operating as a member of the ACSPP if:
(1) Acceptance into the program was gained through fraud or the misstatement of a material fact;
(2) The carrier refuses or neglects to obey any proper order of a Customs of- ficer or any Customs order, rule, or regulation relative to its cooperation within the program;
(3) An officer of the carrier or cor- poration which has been accepted into the program is convicted of a felony or misdemeanor involving theft, smug- gling, or other theft-connected crime which was committed in his or her offi- cial capacity as an officer of the car- rier, or is convicted of any Customs-re- lated crime;
(4) The carrier fails to retain mer- chandise which has been designated for examination;
(5) The carrier does not provide se- cure facilities or properly safeguard merchandise within its area of control; or
(6) The carrier fails to observe any of the procedures which it had set forth in the SOP which served as the basis for the carrier’s acceptance into the pro- gram; and
(7) The carrier has been notified in writing that it has been found in non- compliance with a provision of the pro- gram and has failed to correct such noncompliance after having been given a reasonable opportunity to correct such noncompliance.
(b) Notice and appeal. The Assistant Commissioner, Office of Field Oper- ations, shall suspend or remove partici- pants from the ACSPP by serving no- tice of the proposed action upon the carrier in writing. The notice shall be in the form of a statement specifically setting forth the grounds for suspen- sion or removal and shall provide the
carrier with notice that it may file a written notice of appeal from suspen- sion or revocation within 10 days fol- lowing receipt of the notice of revoca- tion or suspension. The notice of ap- peal shall be filed in duplicate to the office of the Assistant Commissioner, Field Operations, and shall set forth re- sponse of the carrier to the statement of the Assistant Commissioner.
(c) Notice of decision. The Assistant Commissioner, Office of Field Oper- ations, shall notify the participating carrier in writing of the decision con- cerning continued participation in the program.
(d) Use of uniform criteria. When mak- ing any determination regarding a car- rier’s participation or continuation in the ACSPP, the Assistant Commis- sioner, Office of Field Operations, shall employ a uniform standard of perform- ance and evaluation.
[T.D. 91–25, 56 FR 12347, Mar. 25, 1991, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
Subpart S—Access to Customs Security Areas
SOURCE: T.D. 90–82, 55 FR 42557, Oct. 22, 1990, unless otherwise noted.
§ 122.181 Definition of Customs secu- rity area.
For purposes of this section, the term ‘‘Customs security area’’ means the Federal inspection services area at any airport accommodating international air commerce designated for processing passengers, crew, their baggage and ef- fects arriving from, or departing to, foreign countries, as well as the air- craft deplaning and ramp area and other restricted areas designated by the port director. These areas will be posted as restricted to the extent pos- sible and are established for the pur- pose of prohibiting unauthorized en- tries or contact with persons or ob- jects.
[T.D. 90–82, 55 FR 42557, Oct. 22, 1990, as amended by T.D. 02–40, 67 FR 48984, July 29, 2002]
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§ 122.182 Security provisions. (a) Customs access seal required. With
the exception of all Federal and uni- formed State and local law enforce- ment personnel and aircraft passengers and crew, all persons located at, oper- ating out of, or employed by any air- port accommodating international air commerce or its tenants or contrac- tors, including air carriers, who have unescorted access to the Customs secu- rity area, must openly display or produce upon demand an approved ac- cess seal issued by Customs. The ap- proved Customs access seal must be in the possession of the person in whose name it is issued whenever the person is in the Customs security area and must be used only in furtherance of that person’s employment in accord- ance with the description of duties sub- mitted by the employer under para- graph (c)(1) of this section. The Cus- toms access seal remains the property of Customs, and any bearer must im- mediately surrender it as provided in paragraph (g) of this section or upon demand by any authorized Customs of- ficer for any cause referred to in § 122.187(a). Unless surrendered pursu- ant to paragraph (g) of this section or § 122.187, each approved Customs access seal issued under paragraph (c)(1) of this section will remain valid for 2 years from January 1, 2002, in the case of a Customs access seal issued prior to that date and for 2 years from the date of issuance in all other cases. Reten- tion of an approved Customs access seal beyond the applicable 2-year pe- riod will be subject to the reapplica- tion provisions of paragraph (c)(2) of this section.
(b) Employers responsibility. Employ- ers operating in Customs airport secu- rity areas shall advise all employees of the provisions of the Customs regula- tions relative to those areas, require employees to familiarize themselves with those provisions and insure em- ployee compliance. The employer shall also advise the port director of any changes of employment pursuant to § 122.182(g).
(c) Application requirements—(1) Initial application. An application for an ap- proved Customs access seal, as required by this section, must be filed by the ap- plicant with the port director on Cus-
toms Form 3078 and must be supported by a written request and justification for issuance prepared by the appli- cant’s employer that describes the du- ties that the applicant will perform while in the Customs security area. The application requirement applies to all employees required to display an approved Customs access seal by this section, regardless of the length of their employment. The application must be supported by the bond of the applicant’s employer or principal on Customs Form 301 containing the bond conditions set forth in § 113.62, § 113.63, or § 113.64 of this chapter, relating to importers or brokers, custodians of bonded merchandise, or international carriers. If the applicant’s employer is not the principal on a Customs bond on Customs Form 301 for one or more of the activities to which the bond condi- tions set forth in § 113.62, § 113.63, or § 113.64 relate, the application must be supported by an Airport Customs Secu- rity Area Bond, as set forth in appen- dix A of part 113 of this chapter. The latter bond may be waived, however, for State or local government-related agencies in the discretion of the port director. Waiver of this bond does not relieve the agency in question or its employees from compliance with all other provisions of this subpart. In ad- dition, in connection with an applica- tion for an approved Customs access seal under this section:
(i) The port director may require the applicant to submit fingerprints on form FD–258 or on any other approved medium either at the time of, or fol- lowing, the filing of the application. If required, the port director will inform the applicant of the current Federal Bureau of Investigation user fee for conducting fingerprint checks and the Customs administrative processing fee, the total of which must be tendered by, or on behalf of, the applicant with the application; and
(ii) Proof of citizenship or authorized residency and a photograph may also be required.
(2) Reapplication. If a person wishes to retain an approved Customs access seal for one or more additional 2-year peri- ods beyond the 2-year period referred to in paragraph (a) of this section, that person must submit a new application
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19 CFR Ch. I (4–1–12 Edition)§ 122.183
no later than 30 calendar days prior to the start of each additional period. The new application must be filed in the manner specified in paragraph (c)(1) of this section for an initial application, and the port director may also require the submission of fingerprints as pro- vided in paragraph (c)(1)(i) of this sec- tion. The new application will be sub- ject to review on a de novo basis as if it were an initial application except that the written attestation referred to in paragraph (d) of this section will not be required if there has been no change in the employment of the applicant since the last attestation was sub- mitted to Customs.
(d) Background check. An authorized official of the employer must attest in writing that a background check has been conducted on the applicant, to the extent allowable by law. The back- ground check must include, at a min- imum, references and employment his- tory, to the extent necessary to verify representations made by the applicant relating to employment in the pre- ceding 5 years. The authorized official of the employer must attest that, to the best of his knowledge, the appli- cant meets the conditions necessary to perform functions associated with em- ployment in the Customs security area. Additionally, the application may be investigated by Customs and a report prepared concerning the character of the applicant. Records of background investigations conducted by employers must be retained for a period of one year following cessation of employ- ment and made available upon request of the port director.
(e) Law Enforcement officers and other governmental officials. Law enforcement officers and other Federal, State, or local officials whose official duties re- quire access to the Customs security area may request from the port direc- tor the issuance of an approved Cus- toms access seal. They need not make application nor submit to background checks for security area access. An Air- port Customs Security Area Bond is not required.
(f) Replacement access seal. A new Cus- tom access seal may be obtained from the port director in the following cir- cumstances, without the completion of an additional application, except as de-
termined by the port director in his discretion:
(1) A change in employee name or ad- dress;
(2) A change in the name or owner- ship of the employing company;
(3) A change in employer or airport authority identification card format; or
(4) Loss or theft of the Customs ac- cess seal (see § 122.185 of this part).
(g) Surrender of access seal. Where the employee no longer requires access to the Customs security area for an ex- tended period of time at the airport of issuance due to a change in duties, ter- mination of employment, or other rea- son, or where the 2-year period referred to in paragraph (a) of this section ex- pires and a new application under para- graph (c)(2) of this section has not been approved, the employer shall notify the port director in writing, at the time of such change, and shall return the Cus- toms access seal to Customs. The noti- fication shall include information re- garding the disposition of the approved Customs access seal of the employee.
[T.D. 90–82, 55 FR 42557, Oct. 22, 1990, as amended by T.D. 93–18, 58 FR 15773, Mar. 24, 1993; T.D. 02–40, 67 FR 48984, July 29, 2002; 67 FR 51928, Aug. 9, 2002]
§ 122.183 Denial of access.
(a) Grounds for denial. Access to the Customs security area will not be granted, and therefore an approved Customs access seal will not be issued, to any person whose access to the Cus- toms security area will, in the judg- ment of the port director, endanger the revenue or the security of the area or pose an unacceptable risk to public health, interest or safety, national se- curity, or aviation safety. Specific grounds for denial of access to the Cus- toms security area include, but are not limited to, the following:
(1) Any cause which would justify a demand for surrender of a Customs ac- cess seal or the revocation or suspen- sion of access under § 122.182(g) or § 122.187;
(2) Evidence of a pending or past in- vestigation establishing probable cause to believe that the applicant has en- gaged in any conduct which relates to, or which could lead to a conviction for,
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a disqualifying offense listed under paragraph (a)(4) of this section;
(3) The arrest of the applicant for, or the charging of the applicant with, a disqualifying offense listed under para- graph (a)(4) of this section on which prosecution or other disposition is pending;
(4) A disqualifying offense committed by the applicant. For purposes of this paragraph, an applicant commits a dis- qualifying offense if the applicant has been convicted of, or found not guilty of by reason of insanity, or has com- mitted any act or omission involving, any of the following in any jurisdiction during the 5-year period, or any longer period that the port director deems ap- propriate for the offense in question, prior to the date of the application sub- mitted under § 122.182 or at any time while in possession of an approved Cus- toms access seal:
(i) Forgery of certificates, false marking of aircraft, and other aircraft registration violation (49 U.S.C. 46306);
(ii) Interference with air navigation (49 U.S.C. 46308);
(iii) Improper transportation of a hazardous material (49 U.S.C. 46312);
(iv) Aircraft piracy in the special air- craft jurisdiction of the United States (49 U.S.C. 46502(a));
(v) Interference with flight crew members or flight attendants (49 U.S.C. 46504);
(vi) Commission of certain crimes aboard aircraft in flight (49 U.S.C. 46506);
(vii) Carrying a weapon or explosive aboard aircraft (49 U.S.C. 46505);
(viii) Conveying false information and threats (49 U.S.C. 46507);
(ix) Aircraft piracy outside the spe- cial aircraft jurisdiction of the United States (49 U.S.C. 46502(b));
(x) Lighting violations involving transportation of controlled substances (49 U.S.C. 46315);
(xi) Unlawful entry into an aircraft or airport area that serves air carriers or foreign air carriers contrary to es- tablished security requirements (49 U.S.C. 46314);
(xii) Destruction of an aircraft or air- craft facility (18 U.S.C. 32);
(xiii) Murder; (xiv) Assault with intent to murder; (xv) Espionage;
(xvi) Sedition; (xvii) Kidnapping or hostage taking; (xviii) Treason; (xix) Rape or aggravated sexual
abuse; (xx) Unlawful possession, use, sale,
distribution, or manufacture of an ex- plosive or weapon;
(xxi) Extortion; (xxii) Armed or felony unarmed rob-
bery; (xxiii) Distribution of, or intent to
distribute, a controlled substance; (xxiv) Felony arson; (xxv) Felony involving: (A) A threat; (B) Willful destruction of property; (C) Importation or manufacture of a
controlled substance; (D) Burglary; (E) Theft; (F) Dishonesty, fraud, or misrepre-
sentation; (G) Possession or distribution of sto-
len property; (H) Aggravated assault; (I) Bribery; or (J) Illegal possession of a controlled
substance punishable by a maximum term of imprisonment of more than one year;
(xxvi) Violence at an airport serving international civil aviation (18 U.S.C. 37);
(xxvii) Embezzlement; (xxviii) Perjury; (xxix) Robbery; (xxx) Crimes associated with ter-
rorist activities; (xxxi) Sabotage; (xxxii) Assault with a deadly weapon; (xxxiii) Illegal use or possession of
firearms or explosives; (xxxiv) Any violation of a U.S. immi-
gration law; (xxxv) Any violation of a Customs
law or any other law administered or enforced by Customs involving nar- cotics or controlled substances, com- mercial fraud, currency or financial transactions, smuggling, failure to re- port, or failure to declare;
(xxxvi) Airport security violations; or
(xxxvii) Conspiracy or attempt to commit any of the offenses or acts re- ferred to in paragraphs (a)(4)(i) through (a)(4)(xxxv) of this section;
(5) Denial or suspension of the appli- cant’s unescorted access authority to a
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Security Identification Display Area (SIDA) pursuant to regulations pro- mulgated by the U.S. Federal Aviation Administration or other appropriate government agency; or
(6) Inability of the applicant’s em- ployer or Customs to complete a mean- ingful background check or investiga- tion of the applicant.
(b) Notification of denial. The port di- rector shall give written notification to any person whose application for ac- cess to the Customs security area has been denied, fully stating the reasons for denial and setting forth specific ap- peal procedures. The employer shall be notified in writing that the applicant has been denied access to the area and that the detailed reasons for the denial have been furnished to the applicant. Detailed reasons regarding the denial, however, shall not be furnished to the employer by Customs.
(c) Appeal of denial. The denial will be final unless the applicant files with the port director a written notice of appeal within 10 days following receipt of the notice of denial. The notice of appeal shall be filed in duplicate and shall set forth the response of the applicant to the statement of the port director. The port director will render his decision on the appeal to the applicant in writ- ing within 30 calendar days of receipt of the notice of appeal and, if the appli- cation is denied on appeal, the decision will advise the applicant of the proce- dures for filing a further appeal pursu- ant to paragraph (d) of this section.
(d) Further appeal of denial. Where the application on appeal is denied by the port director, the applicant may file a further written notice of appeal with the director of field operations at the Customs Management Center having jurisdiction over the office of the port director within 10 calendar days of re- ceipt of the port director’s decision on the appeal. The further notice of appeal must be filed in duplicate and must set forth the response of the applicant to the decision of the port director. The director of field operations will review the appeal and render a written deci- sion. The final decision will be trans-
mitted to the port director and served by him on the applicant.
[T.D. 90–82, 55 FR 42557, Oct. 22, 1990, as amended by T.D. 02–40, 67 FR 48985, July 29, 2002]
§ 122.184 Change of identification; change in circumstances of em- ployee; additional employer respon- sibilities.
(a) Change of identification. The Cus- toms access seal may be removed from the employee by the port director where, for security reasons, a change in the nature of the identification card or other medium on which it appears is necessary.
(b) Change in circumstances of em- ployee. If, after issuance of a Customs access seal to an employee, any cir- cumstance arises (for example, an ar- rest or conviction for a disqualifying offense) that constitutes a ground for denial of access to the Customs secu- rity area under § 122.183(a) or for rev- ocation or suspension of access to the Customs security area and surrender of the Customs access seal under § 122.187(a), the employee must within 24 hours advise the port director in writing of that change in cir- cumstance. In the case of an arrest or prosecution for a disqualifying offense listed in § 122.183(a)(4), the employee also must within 5 calendar days advise the port director in writing of the final disposition of that arrest or prosecu- tion. In addition, if an airport operator or an aircraft operator suspends an em- ployee’s unescorted access authority to a Security Identification Display Area pursuant to regulations promulgated by the U.S. Federal Aviation Adminis- tration or other appropriate govern- ment agency and the employee also has an approved Customs access seal, the employee must within 24 hours advise the port director in writing of the fact of, and basis for, the suspension.
(c) Additional employer responsibilities. If an employer becomes aware of any change in the circumstances of its em- ployee as described in paragraph (b) of this section, the employer must imme- diately advise the port director of that fact even though the employee may have separately reported that fact to the port director under paragraph (b) of
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this section. In addition, each em- ployer must submit to the port direc- tor during the first month of each cal- endar quarter a report setting forth a current list of all its employees who have an approved Customs access seal. The quarterly report must list sepa- rately all additions to, and deletions from, the previous quarterly report. Moreover, each employer must take appropriate steps to ensure that an em- ployee uses an approved Customs ac- cess seal only in connection with ac- tivities relating to his employment.
[T.D. 02–40, 67 FR 48986, July 29, 2002; 67 FR 51928, Aug. 9, 2002]
§ 122.185 Report of loss or theft of Cus- toms access seal.
The loss or theft of an approved Cus- toms access seal must be promptly re- ported in writing by the employee to the port director. The Customs access seal may be replaced, as provided in § 122.182(f).
[T.D. 02–40, 67 FR 48986, July 29, 2002]
§ 122.186 Presentation of Customs ac- cess seal by other person.
If an approved Customs access seal is presented by a person other than the one to whom it was issued, the Cus- toms access seal will be removed and destroyed. An approved Customs access seal may be removed from an employee by any Customs officer designated by the port director.
[T.D. 02–40, 67 FR 48986, July 29, 2002]
§ 122.187 Revocation or suspension of access.
(a) Grounds for revocation or suspen- sion of access—(1) General. The port di- rector:
(i) Must immediately revoke or sus- pend an employee’s access to the Cus- toms security area and demand the im- mediate surrender of the employee’s approved Customs access seal for any ground specified in paragraph (a)(2) of this section; or
(ii) May propose the revocation or suspension of an employee’s access to the Customs security area and the sur- render of the employee’s approved Cus- toms access seal whenever, in the judg- ment of the port director, it appears for any ground not specified in para-
graph (a)(2) of this section that contin- ued access might pose an unacceptable risk to public health, interest or safe- ty, national security, aviation safety, the revenue, or the security of the area. In this case the port director will provide the employee with an oppor- tunity to respond to the notice of pro- posed action.
(2) Specific grounds. Access to the Customs security area will be revoked or suspended, and surrender of an ap- proved Customs access seal will be de- manded, in any of the following cir- cumstances:
(i) There is probable cause to believe that an approved Customs access seal was obtained through fraud, a material omission, or the misstatement of a ma- terial fact;
(ii) The employee is or has been con- victed of, or found not guilty of by rea- son of insanity, or there is probable cause to believe that the employee has committed any act or omission involv- ing, an offense listed in § 122.183(a)(4);
(iii) The employee has been arrested for, or charged with, an offense listed in § 122.183(a)(4) and prosecution or other disposition of the arrest or charge is pending;
(iv) The employee has engaged in any other conduct that would constitute a ground for denial of access to the Cus- toms security area under § 122.183;
(v) The employee permits the ap- proved Customs access seal to be used by any other person or refuses to open- ly display or produce it upon the prop- er demand of a Customs officer;
(vi) The employee uses the approved Customs access seal in connection with a matter not related to his employ- ment or not constituting a duty de- scribed in the written justification re- quired by § 122.182(c)(1);
(vii) The employee refuses or ne- glects to obey any proper order of a Customs officer, or any Customs order, rule, or regulation;
(viii) For all employees of the bond holder, if the bond required by § 122.182(c) is determined to be insuffi- cient in amount or lacking sufficient sureties, and a satisfactory new bond with good and sufficient sureties is not furnished within a reasonable time;
(ix) The employee no longer requires access to the Customs security area for
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an extended period of time at the air- port of issuance because of a change in duties, termination of employment, or other reason; or
(x) The employee or employer fails to provide the notification of a change in circumstances as required under § 122.184(b) or (c) or the employee fails to report the loss or theft of a Customs access seal as required under § 122.185.
(b) Notice of revocation or suspension. The port director will revoke or sus- pend access to the Customs security area and demand surrender of the Cus- toms access seal by giving notice of the revocation or suspension and demand in writing to the employee, with a copy of the notice to the employer. The no- tice will indicate whether the revoca- tion or suspension is effective imme- diately or is proposed.
(1) Immediate revocation or suspension. When the revocation or suspension of access and the surrender of the Cus- toms access seal are effective imme- diately, the port director will issue a final notice of revocation or suspen- sion. The port director or his designee may deny physical access to the Cus- toms security area and may demand surrender of an approved Customs ac- cess seal at any time on an emergency basis prior to issuance of a final notice of revocation or suspension whenever in the judgment of the port director or his designee an emergency situation in- volving public health, safety, or secu- rity is involved and, in such a case, a final notice of revocation or suspension will be issued to the affected employee within 10 calendar days of the emer- gency action. A final notice of revoca- tion or suspension will state the spe- cific grounds for the immediate revoca- tion or suspension, direct the employee to immediately surrender the Customs access seal if that Customs access seal has not already been surrendered, and advise the employee that he may choose to pursue one of the following two options:
(i) Submit a new application for an approved Customs access seal, in ac- cordance with the provisions of § 122.182(c), on or after the 180th cal- endar day following the date of the final notice of revocation or suspen- sion; or
(ii) File a written administrative ap- peal of the final notice of revocation or suspension with the port director in ac- cordance with paragraph (c) of this sec- tion within 30 calendar days of the date of the final notice of revocation or sus- pension. The appeal may request that a hearing be held in accordance with paragraph (d) of this section, and in that case the appeal also must dem- onstrate that there is a genuine issue of fact that is material to the revoca- tion or suspension action.
(2) Proposed revocation or suspension— (i) Issuance of notice. When the revoca- tion or suspension of access and the surrender of the Customs access seal is proposed, the port director will issue a notice of proposed revocation or sus- pension. The notice of proposed revoca- tion or suspension will state the spe- cific grounds for the proposed action, inform the employee that he may con- tinue to have access to the Customs se- curity area and may retain the Cus- toms access seal pending issuance of a final notice under paragraph (b)(2)(ii) of this section, and advise the em- ployee that he may file with the port director a written response addressing the grounds for the proposed action within 10 calendar days of the date the notice of proposed action was received by the employee. The employee may respond by accepting responsibility, explaining extenuating circumstances, and/or providing rebuttal evidence. The employee also may ask for a meeting with the port director or his designee to discuss the proposed action.
(ii) Final notice—(A) Based on non- response. If the employee does not re- spond to the notice of proposed action, the port director will issue a final no- tice of revocation or suspension within 30 calendar days of the date the notice of proposed action was received by the employee. The final notice of revoca- tion or suspension will state the spe- cific grounds for the revocation or sus- pension, direct the employee to imme- diately surrender the Customs access seal, and advise the employee that he may choose to pursue one of the two options specified in paragraphs (b)(1)(i) and (ii) of this section.
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(B) Based on response. If the employee files a timely response, the port direc- tor will issue a final determination re- garding the status of the employee’s right of access to the Customs security area within 30 calendar days of the date the employee’s response was re- ceived by the port director. If this final determination is adverse to the em- ployee, then the final notice of revoca- tion or suspension will state the spe- cific grounds for the revocation or sus- pension, direct the employee to imme- diately surrender the Customs access seal, and advise the employee that he may choose to pursue one of the two options specified in paragraphs (b)(1)(i) and (ii) of this section.
(c) Appeal procedures—(1) Filing of ap- peal. The employee may file a written appeal of the final notice of revocation or suspension with the port director within 10 calendar days following re- ceipt of the final notice of revocation or suspension. The appeal must be filed in duplicate and must set forth the re- sponse of the employee to the state- ment of the port director. The port di- rector may, in his discretion, allow the employee additional time to submit documentation or other information in support of the appeal.
(2) Action by port director—(i) If a hearing is requested. If the appeal re- quests that a hearing be held, the port director will first review the appeal to determine whether there is a genuine issue of fact that is material to the revocation or suspension action. If a hearing is required because the port di- rector finds that there is a genuine issue of fact that is material to the revocation or suspension action, a hearing will be held, and a decision on the appeal will be rendered, in accord- ance with paragraphs (d) through (f) of this section. If the port director finds that there is no genuine issue of fact that is material to the revocation or suspension action, no hearing will be held and the port director will forward the administrative record as provided in paragraph (c)(2)(ii) of this section for the rendering of a decision on the appeal under paragraph (c)(3) of this section.
(ii) CMC review. If no hearing is re- quested or if the port director finds that a requested hearing is not re-
quired, following receipt of the appeal the port director will forward the ad- ministrative record to the director of field operations at the Customs Man- agement Center having jurisdiction over the office of the port director for a decision on the appeal. The trans- mittal of the port director must in- clude a response to any disputed issues raised in the appeal.
(3) Action by the director. Following receipt of the administrative record from the port director, the director of field operations will render a written decision on the appeal based on the record forwarded by the port director. The decision will be rendered within 30 calendar days of receipt of the record and will be transmitted to the port di- rector and served by the port director on the employee. A decision on an ap- peal rendered under this paragraph will constitute the final administrative ac- tion on the matter.
(d) Hearing. A hearing will be con- ducted in connection with an appeal of a final notice of revocation or suspen- sion of access to the Customs security area only if the affected employee in writing requests a hearing and dem- onstrates that there is a genuine issue of fact that is material to the revoca- tion or suspension action. If a hearing is required, it must be held before a hearing officer designated by the Com- missioner, or his designee. The em- ployee will be notified of the time and place of the hearing at least 5 calendar days before the hearing. The employee may be represented by counsel at the revocation or suspension hearing. All evidence and testimony of witnesses in the proceeding, including substan- tiation of charges and the answer to the charges, must be presented. Both parties will have the right of cross’examination. A stenographic record of the proceedings will be made upon request and a copy furnished to the employee. At the conclusion of the proceedings or review of a written ap- peal, the hearing officer must promptly transmit all papers and the steno- graphic record to the director of field
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operations, together with the rec- ommendation for final action. If nei- ther the employee nor his attorney ap- pears for a scheduled hearing, the hear- ing officer must record that fact, ac- cept any appropriate testimony, and conclude the hearing. The hearing offi- cer must promptly transmit all papers, together with his recommendations, to the director of field operations.
(e) Additional written views. Within 10 calendar days after delivery of a copy of the stenographic record of the hear- ing to the director of field operations, either party may submit to the direc- tor of field operations additional writ- ten views and arguments on matters in the record. A copy of any submission will be provided to the other party. Within 10 calendar days of receipt of the copy of the submission, the other party may file a reply with the director of field operations, and a copy of the reply will be provided to the other party. No further submissions will be accepted.
(f) Decision. After consideration of the recommendation of the hearing of- ficer and any additional written sub- missions and replies made under para- graph (e) of this section, the director of field operations will render a written decision. The decision will be trans- mitted to the port director and served by the port director on the employee. A decision on an appeal rendered under this paragraph will constitute the final administrative action on the matter.
[T.D. 02–40, 67 FR 48986, July 29, 2002; 67 FR 51928, Aug. 9, 2002; 67 FR 54023, Aug. 20, 2002]
§ 122.188 Issuance of temporary Cus- toms access seal.
(a) Conditions for issuance. When an approved Customs access seal is re- quired under § 122.182(a) of this part and the port director determines that the application cannot be administratively processed in a reasonable period of time, an employer may, upon written request, be issued a temporary Cus- toms access seal for his employee. The employer must satisfy the port direc- tor that a hardship would result if the request is not granted. Surety on the bond, as required by § 122.182(c), may be waived in the discretion of the port di- rector but only for the period of the
temporary Customs access seal and its renewal period.
(b) Validation period. The temporary Customs access seal shall be valid for a period of 60 days. The port director may renew the temporary Customs ac- cess seal for additional 30 day periods where the circumstances under which the temporary Customs access seal was originally issued continue to exist. The temporary Customs access seal shall be destroyed by the port director when the permanent approved Customs ac- cess seal is issued, or the privileges granted thereby are withdrawn.
(c) Temporary employees and official visitors. The provisions of this section shall also apply to temporary employ- ees and official visitors requiring ac- cess to the Customs security area. In the case of temporary employees, the Customs access seal shall be valid for a period of 30 days. In the case of official visitors, the temporary Customs access seal shall be valid for the day of issuance only. Temporary employee and official visitor Customs access seal are renewable for periods equal to their original period of validity.
(d) Revocation of denial and access. The temporary Customs access seal may be revoked and access to the Cus- toms security area denied at any time if the holder of the temporary Customs access seal refuses or neglects to obey any proper order of a Customs officer, or any Customs order, rule, or regula- tion, or if, in the judgment of the port director, continuation of the privileges granted thereby would endanger the revenue or pose a threat to the Cus- toms security area.
[T.D. 90–82, 55 FR 42557, Oct. 22, 1990, as amended by T.D. 02–40, 67 FR 48988, July 29, 2002]
§ 122.189 Bond liability.
Any failure on the part of a principal to comply with the conditions of the bond required under § 122.182(c), includ- ing a failure of an employer to comply with any requirement applicable to the employer under this subpart, will con- stitute a breach of the bond and may result in a claim for liquidated dam- ages under the bond.
[T.D. 02–40, 67 FR 48988, July 29, 2002]
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U.S. Customs and Border Protection, DHS; Treasury Pt. 123
PART 123—CBP RELATIONS WITH CANADA AND MEXICO
Sec. 123.0 Scope.
Subpart A—General Provisions
123.1 Report of arrival from Canada or Mex- ico and permission to proceed.
123.2 Penalty for failure to report arrival or for proceeding without a permit.
123.3 Inward foreign manifest required. 123.4 Inward foreign manifest forms to be
used. 123.5 Certification and filing of inward for-
eign manifest. 123.6 Train sheet for arriving railroad
trains. 123.7 Manifest used as an entry for uncondi-
tionally free merchandise valued not over $250.
123.8 Permit or special license to unlade or lade a vessel or vehicle.
123.9 Explanation of a discrepancy in a manifest.
123.10 General order merchandise.
Subpart B—International Traffic
123.11 Supplies on international trains. 123.12 Entry of foreign locomotives and
equipment in international traffic. 123.13 Foreign repairs to domestic loco-
motives and other domestic railroad equipment.
123.14 Entry of foreign-based trucks, busses, and taxicabs in international traffic.
123.15 Vehicles of foreign origin used be- tween communities of the United States and Canada or Mexico.
123.16 Entry of returning trucks, busses, or taxicabs in international traffic.
123.17 Foreign repairs to domestic trucks, busses, taxicabs and their equipment.
123.18 Equipment and materials for con- structing bridges or tunnels between the United States and Canada or Mexico.
Subpart C—Shipments In Transit Through Canada or Mexico
123.21 Merchandise in transit. 123.22 In-transit manifest. 123.23 Train sheet for in-transit rail ship-
ments. 123.24 Sealing of conveyances or compart-
ments. 123.25 Certification and disposition of mani-
fests. 123.26 Transshipment of merchandise mov-
ing through Canada or Mexico. 123.27 Feeding and watering animals in Can-
ada. 123.28 Merchandise remaining in or exported
to Canada or Mexico.
123.29 Procedure on arrival at port of re- entry.
Subpart D—Shipments in Transit Through the United States
123.31 Merchandise in transit. 123.32 Manifests. 123.33 [Reserved] 123.34 Certain vehicle and vessel shipments.
Subpart E—United States and Canada In- Transit Truck Procedures
123.41 Truck shipments transiting Canada. 123.42 Truck shipments transiting the
United States.
Subpart F—Commercial Traveler’s Samples in Transit Through the United States or Canada
123.51 Commercial samples transported by automobile through Canada between ports in the United States.
123.52 Commercial samples transported by automobile through the United States between ports in Canada.
Subpart G—Baggage
123.61 Baggage arriving in baggage car. 123.62 Baggage in possession of traveler. 123.63 Examination of baggage from Canada
or Mexico. 123.64 Baggage in transit through the
United States between ports in Canada or in Mexico.
123.65 Domestic baggage transiting Canada or Mexico between ports in the United States.
Subpart H [Reserved]
Subpart I—Miscellaneous Provisions
123.81 Merchandise found in building on the boundary.
123.82 Treatment of stolen vehicles returned from Mexico.
Subpart J—Advance Information for Cargo Arriving by Rail or Truck
123.91 Electronic information for rail cargo required in advance of arrival.
123.92 Electronic information for truck cargo required in advance of arrival.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1431, 1433, 1436, 1448, 1624, 2071 note.
Section 123.1 also issued under 19 U.S.C. 1459;
Section 123.2 also issued under 19 U.S.C. 1459;
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19 CFR Ch. I (4–1–12 Edition)§ 123.0
Section 123.3 also issued under 19 U.S.C. 1459;
Section 123.4 also issued under 19 U.S.C. 1484, 1498;
Section 123.7 also issued under 19 U.S.C. 1498;
Section 123.8 also issued under 19 U.S.C. 1450–1454, 1459;
Section 123.9 also issued under 19 U.S.C. 1460, 1584, 1618;
Section 123.12 also issued under 19 U.S.C. 1202 (Chapter 86, Additional U.S. Note 1, HTSUS), 1322;
Sections 123.13–123.18 also issued under 19 U.S.C. 1322;
Sections 123.21–123.23, 123.25–123.29, 123.41, 123.51 also issued under 19 U.S.C. 1554;
Section 123.24 also issued under 19 U.S.C. 1551;
Sections 123.31–123.34, 123.42, 123.52, 123.64 also issued under 19 U.S.C. 1553;
Section 123.63 also issued under 19 U.S.C. 1461, 1462;
Section 123.81 also issued under 19 U.S.C. 1595.
SOURCE: T.D. 70–121, 35 FR 8215, May 26, 1970, unless otherwise noted.
§ 123.0 Scope.
This part contains special regula- tions pertaining to Customs procedures at the Canadian and Mexican borders. Included are provisions governing re- port of arrival, manifesting, unlading and lading, instruments of inter- national traffic, shipments in transit through Canada or Mexico or through the United States, commercial trav- eler’s samples transiting the United States or Canada, and baggage arriving from Canada or Mexico including bag- gage transiting the United States or Canada or Mexico. Aircraft arriving from or departing for Canada or Mexico are governed by the provisions of part 122 of this chapter. The arrival of all vessels from, and clearance of all ves- sels departing for, Canada or Mexico are governed by the provisions of part 4 of this chapter. Fees for services pro- vided in connection with the arrival of aircraft, vessels, vehicles and other conveyances from Canada or Mexico are set forth in § 24.22 of this chapter. Regulations pertaining to the treat- ment of goods from Canada or Mexico under the North American Free Trade
Agreement are contained in part 181 of this chapter.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 88–12, 53 FR 9315, Mar. 22, 1988; T.D. 93–85, 58 FR 54286, Oct. 21, 1993; T.D. 93–96, 58 FR 67317, Dec. 21, 1993; T.D. 94–1, 58 FR 69471, Dec. 30, 1993; 59 FR 10283, Mar. 4, 1994]
Subpart A—General Provisions
§ 123.1 Report of arrival from Canada or Mexico and permission to pro- ceed.
(a) Individuals. Individuals arriving in the United States, unless excepted by voluntary enrollment in and compli- ance with PORTPASS—a joint Cus- toms Service/Immigration and Natu- ralization Service facilitated entry program (See, Immigration and Natu- ralization Regulations at 8 CFR 235.7), must report their arrival to Customs, and failure to report arrival may result in the individual being liable for cer- tain civil and criminal penalties, as provided under 19 U.S.C. 1459, in addi- tion to other penalties applicable under other provisions of law. The specific re- porting requirements are as follows:
(1) Individuals not arriving by convey- ance. Persons arriving otherwise than by conveyance may enter the U.S. only at those locations specified by the Commissioner of Customs, or his des- ignee, and shall then immediately re- port their arrival to Customs. Such persons shall not depart from the Cus- toms port or station until authorized to do so by the appropriate Customs of- ficer.
(2) Persons arriving aboard a convey- ance that reported its arrival. Persons aboard a conveyance the arrival of which has been reported to Customs at locations specified by the Commis- sioner of Customs, or his designee in accordance with section 1433, 1644 or 1644a of title 19, United States Code (19 U.S.C. 1433, 1644, 1644a), shall remain on board until authorized by Customs to depart, and shall then immediately re- port to the designated Customs facility together with all articles accom- panying them.
(3) Persons arriving aboard a convey- ance that has not reported its arrival. Persons aboard a conveyance the ar- rival of which has not been reported in
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accordance with the laws referred to in paragraph (a)(2) of this section, shall immediately notify a Customs officer and report their arrival, together with appropriate information concerning the conveyance on or in which they ar- rived, at a location or locations speci- fied by the Commissioner of Customs, or his designee and shall present them- selves and their property for Customs inspection and examination.
(b) Vehicles. Vehicles may arrive in the U.S. only at a designated port of entry (see § 101.3 of this chapter) or Customs station if the Commissioner of Customs, or his designee authorizes entry at that station (see § 101.4 of this chapter). Upon arrival of the vehicle in the U.S., the driver, unless he or she and all of the vehicle’s occupants are excepted by enrollment in, and in com- pliance with, PORTPASS—a joint Cus- toms Service/Immigration and Natu- ralization Service facilitated entry program (See, Immigration and Natu- ralization Regulations at 8 CFR 235.1 and 286.8), immediately shall report such arrival to Customs, and shall not depart or discharge any passenger or merchandise (including baggage) with- out authorization by the appropriate Customs officer.
(c) Vessels. For report of arrival re- quirements applicable to all vessels, re- gardless of tonnage, and arriving from any location, see § 4.2 of this chapter.
(d) Method of reporting. Report of ar- rival under paragraphs (a), (b), and (c) of this section shall be made in person unless the port director, by local in- structions, requires that it be made by some other specific means. Such local instructions issued by the port director will be made available to interested parties by posting in Customs offices, publication in a newspaper of general circulation in the Customs port that supervises the location, and/or other appropriate means.
[T.D. 93–96, 58 FR 67317, Dec. 21, 1993, as amended by T.D. 94–44, 59 FR 23795, May 9, 1994; T.D. 97–48, 62 FR 32031, June 12, 1997; T.D. 98–74, 63 FR 51289, Sept. 25, 1998; CBP Dec. 04–28, 69 FR 52599, Aug. 27, 2004]
§ 123.2 Penalty for failure to report ar- rival or for proceeding without a permit.
(a) Persons. Any person arriving oth- erwise than by conveyance who enters the U.S. at other than a designated port of entry, or Customs station if au- thorization exists for entry at that sta- tion, who fails to report arrival as re- quired in § 123.1(a) of this part, or who departs from the port of entry or Cus- toms station without authorization by the appropriate Customs officer, whether or not intentionally, shall be subject to such civil and criminal pen- alties as are prescribed under 19 U.S.C. 1459 and provided for in § 123.1 of this part.
(b) Vessels. The penalty provisions ap- plicable to vessels for failure to report arrival or for proceeding without a per- mit are those as provided in § 4.3a.
(c) Vehicles—(1) Civil penalties. The person in charge of any vehicle who—
(i) Enters the vehicle into the U.S. at other than a designated port of entry, or Customs station if authorization ex- ists for entry at that station;
(ii) Fails to report arrival and present the vehicle and all persons and merchandise (including baggage) on board for inspection as required in § 123.1(b) of this part;
(iii) Fails to file a manifest or any other document required to be filed in connection with arrival in the U.S. under this part; or
(iv) Without authorization by the ap- propriate Customs officer, removes such vehicle from the port of entry or Customs station or discharges any pas- senger or merchandise (including bag- gage) shall be subject to such civil pen- alties as are prescribed in section 436, Tariff Act of 1930, as amended (19 U.S.C. 1436), and any conveyance used in connection with any such violation shall be subject to seizure and for- feiture. The person also may be subject to an additional civil penalty equal to the value of the merchandise on the conveyance which was not entered or reported as required by § 123.1(b) of this part, and that merchandise may be subject to seizure and forfeiture unless properly entered by the importer or consignee. If the merchandise consists of any controlled substances, addi- tional penalties may be assessed, as
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19 CFR Ch. I (4–1–12 Edition)§ 123.3
prescribed in section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584).
(2) Criminal penalties. Upon convic- tion, any person in charge of a vehicle who intentionally commits any of the violations described in paragraph (c)(1) of this section shall, in addition to the penalties described therein, be subject to such additional criminal penalties as are prescribed in section 436, Tariff Act of 1930, as amended (19 U.S.C. 1436). If the vehicle has or is discovered to have had on board any merchandise (other than sea stores or the equivalent for conveyances other than vessels) the importation of which into the U.S. is prohibited, the person in charge of the vehicle is subject to such additional criminal penalties as are prescribed in section 436, Tariff Act of 1930, as amended (19 U.S.C. 1436).
[T.D. 93–96, 58 FR 67318, Dec. 21, 1993]
§ 123.3 Inward foreign manifest re- quired.
(a) General requirements. Baggage or other merchandise carried on a vehicle or on a vessel of less than 5 net tons ar- riving otherwise than by sea from Can- ada or Mexico shall be listed on a manifest as prescribed by § 123.4. Ves- sels which are required to make entry under § 4.3 of this chapter because they are arriving by sea or are 5 net tons or over shall have manifests on board as provided in § 4.7(a) of this chapter.
(b) Exception where in possession of traveler. When baggage arrives in the actual possession of a traveler, his dec- laration will be accepted in lieu of a manifest. Merchandise imported by a person otherwise than in a vessel or ve- hicle need not be covered by a manifest but shall be presented for inspection, and entry shall be made in accordance with the applicable laws and regula- tions.
§ 123.4 Inward foreign manifest forms to be used.
The inward foreign manifest required by § 123.3 for a vehicle or a vessel of less than 5 net tons arriving in the United States from Canada or Mexico other- wise than by sea with baggage or mer- chandise, shall be on Customs Form 7533, except as provided for shipments in transit in subparts C, D, E, F, and G
of this part, and in the following spe- cial cases:
(a) For merchandise free of duty en- tered on Customs Form 7523, the same form may be used as a manifest in lieu of other forms. (See § 143.23 of this chapter.)
(b) For dutiable merchandise not ex- ceeding $2,000 in value entered on Cus- toms Form 368 or 368A, (serially num- bered) or Customs Form 7501 the same form may be used as a manifest in lieu of other forms. (See § 143.21 of this chapter.) The port director may also allow such merchandise to be entered informally upon the presentation of a commercial invoice which contains the following declaration, signed by the importer or his agent:
I declare that the information on this in- voice is accurate to the best of my knowl- edge and belief; that the invoice quantities are true and correct manifest quantities; and that I have not received and do not know of any invoice other than this one.
(c) For a shipment not exceeding $250 in value consisting of articles of Amer- ican origin entered free of duty under the provisions of § 10.1(i) of this chapter and imported in a vehicle, Customs Form 3311 used in entering the goods, in duplicate, may be accepted in lieu of a manifest.
(d) For baggage arriving in baggage cars, Customs Form 7533 shall be used. (See subpart G of this part.)
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973; T.D. 75–105, 40 FR 19813, May 7, 1975; T.D. 82–145, 47 FR 35478, Aug. 16, 1982; T.D. 87– 75, 52 FR 26142, July 13, 1987; T.D. 92–56, 57 FR 24944, June 12, 1992; T.D. 94–47, 59 FR 25570, May 17, 1994; T.D. 98–28, 63 FR 16416, Apr. 3, 1998]
§ 123.5 Certification and filing of in- ward foreign manifest.
The manifest listing baggage and other merchandise, certified by the master of the vessel or the person in charge of the vehicle, shall be pre- sented to the Customs officer at the time the report of arrival is made. It shall be filed in the original only, un- less additional copies are required in this part.
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§ 123.6 Train sheet for arriving rail- road trains.
The conductor of a railroad train ar- riving from Canada or Mexico shall present to the Customs officer at the port of arrival individual car manifests and a train sheet, sometimes called a consist, bridge sheet, or trip sheet, list- ing each car and showing the car num- bers and initials.
§ 123.7 Manifest used as an entry for unconditionally free merchandise value not over $250.
When a shipment not exceeding $250 in value which is unconditionally free of duty and not subject to quota or to internal revenue tax arrives on a vessel of less than 5 net tons arriving other- wise than by sea, the inward foreign manifest on Customs Form 7533 may be presented in duplicate and used as an entry if:
(a) No merchandise for a different en- trant is listed on the same page of the manifest,
(b) The country of exportation of the merchandise, its value, and the provi- sion of law under which free entry is claimed are noted thereon, and
(c) Evidence of the right to make entry is furnished as required by § 141.11 of this chapter.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973]
§ 123.8 Permit or special license to unlade or lade a vessel or vehicle.
(a) Permission to unlade or lade. Before any passenger or merchandise, includ- ing baggage, may be landed or dis- charged from any vessel of less than 5 net tons arriving from Canada or Mex- ico by any route, or from a vehicle, permission to unlade shall be obtained from a Customs officer. Permission to unlade during overtime hours, on a Sunday or holiday, or to lade during overtime hours on a Sunday or holiday merchandise requiring Customs super- vision, shall be obtained from the port director. Permission to unlade or lade a truck will be denied for any cargo with respect to which advance elec- tronic information has not been re- ceived as provided in § 123.92 or 192.14 of this chapter, as applicable. In cases in which CBP does not receive complete
cargo information in the time and manner and in the electronic format required by § 123.92 or 192.14 of this chapter, as applicable, CBP may delay issuance of a permit or special license to unlade or lade a truck. Permission to unlade is not required for a vessel of less than 5 net tons arriving otherwise than by sea carrying no baggage or other merchandise. For permission to unlade or lade for vessels of 5 net tons or over, see § 4.30 of this chapter.
(b) Application for permit or special li- cense to unlade or lade—(1) Permit to unlade during regular hours. Application for a permit to unlade any vehicle or a vessel of less than 5 net tons may be made and permission may be granted orally. The port director may require that the application and permission to unlade be on Customs Form 3171.
(2) Special license to unlade or lade at night, on a Sunday or holiday. Applica- tion for permission to unlade pas- sengers or merchandise from, or lade any merchandise requiring Customs su- pervision on, a vessel of less than 5 net tons or a vehicle arriving from or de- parting for Canada or Mexico by any route at night, on a Sunday or holiday, and requests for any reimbursable overtime services shall be made on Customs Form 3171. In the discretion of the port director and under such condi- tion as he may deem advisable the ap- plication may be made orally for ves- sels of less than 5 net tons and vehicles not carrying persons or property for hire, but requests for reimbursable overtime services shall be on Customs Form 3171. The port director may au- thorize Customs inspectors to approve the request for overtime services and to grant oral permission to unlade or lade.
(c) Cash deposit or bond for overtime services. A request for reimbursable overtime services shall not be approved unless the required cash deposit or bond on Customs Form 301, containing the bond conditions set forth in § 113.64 of this chapter, is on file or is filed with the request.
(d) Term permit or special license. A permit or special license required by this section may be issued on a term basis in the manner, and under the con- ditions applicable, described in § 4.30 (f) or (g) of this chapter. A term permit or
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special license to unlade or lade a truck already issued will not be appli- cable as to any cargo with respect to which advance electronic information has not been received as provided in § 123.92 or 192.14 of this chapter, as ap- plicable.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 84–213, 49 FR 41183, Oct. 19, 1984; T.D. 94–2, 58 FR 68526, Dec. 28, 1993; CBP Dec. 03–32, 68 FR 68173, Dec. 5, 2003]
§ 123.9 Explanation of a discrepancy in a manifest.
(a) Provisions applicable—(1) Overages. If any merchandise (including sea stores or its equivalent) is found on board a vessel or vehicle arriving in the U.S. that is not listed on a manifest filed in accordance with § 123.5 of this part, or after having been unladen from such vessel or vehicle, is found not to have been included or described in the manifest or does not agree therewith (an overage), the master, person in charge, or owner of the vessel or vehi- cle or any person directly or indirectly responsible for the discrepancy is sub- ject to such penalties as are prescribed in section 584, Tariff Act of 1930, as amended (19 U.S.C. 1584), and any such merchandise belonging or consigned to the master, person in charge, or owner of the vehicle is subject to seizure and forfeiture.
(2) Shortages. If merchandise is mani- fested but not found on board a vessel or vehicle arriving in the U.S. (a short- age), the master, person in charge, or owner of the vessel or vehicle or any person directly or indirectly respon- sible for the discrepancy is subject to such penalties as are prescribed in sec- tion 584, Tariff Act of 1930, as amended (19 U.S.C. 1584).
(3) Failure to file a manifest. The mas- ter or person in charge of a vessel or vehicle arriving in the U.S. or the U.S. Virgin Islands who fails to present a manifest to Customs is liable for civil penalties as are provided by law, and the conveyance used in connection with the failure to file is subject to sei- zure and forfeiture. A criminal convic- tion for intentional failure to file shall make the master or person in charge liable for criminal penalties, as pro- vided by statute, and if any merchan- dise is found or determined to have
been on board (other than sea stores or the equivalent for vehicles), the impor- tation of which is prohibited, addi- tional penalties may apply.
(b) Report of discrepancies—(1) Discrep- ancies discovered by master, person in charge, owner, agent, or person directly or indirectly responsible. The master, person in charge, owner, or agent of the vessel or vehicle, or any person di- rectly or indirectly responsible for any discrepancy between the merchandise and the manifest, shall report any dis- crepancy to the port director within 60 days after the date of arrival by com- pleting a report for an overage or a declaration for a shortage. The overage report or shortage declaration may be made on the appropriate manifest form, as listed in § 123.4, or on Customs Form 5931, Discrepancy Report and Declaration. If no manifest has been filed, an original copy of the appro- priate form, as listed in § 123.4, should be used. In each case in which a mani- fest form is used, the form shall be marked or stamped ‘‘Overage Report’’ or ‘‘Shortage Declaration’’, as appro- priate. The form used shall list the merchandise involved and state the reasons for the discrepancy.
(2) Discrepancies discovered by Cus- toms. The port director immediately shall advise the master, person in charge, owner, agent, or any person di- rectly or indirectly responsible for the discrepancy between the merchandise and the manifest of any discrepancy discovered by Customs officers which has not been reported. The person so notified shall file an explanation of the discrepancy, as required by paragraph (b)(1) of this section, within 30 days of notification, or within 60 days after ar- rival of the vessel or vehicle, whichever is later. The port director may notify the master, person in charge, owner, agent, or any person directly or indi- rectly responsible for the discrepancy by furnishing a copy of Customs Form 5931 to that person, or by any other ap- propriate written means. Use of Cus- toms Form 5931 shall not preclude as- sessment of any penalty or liability to forfeiture otherwise incurred.
(c) Statement on report of discrepancy required. The overage report or short- age declaration shall bear the fol- lowing statement signed by the master
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of the vessel, the person in charge of the vehicle, the owner of the vessel or vehicle, an authorized agent, or the person directly or indirectly respon- sible for the discrepancy:
I declare to the best of my knowledge and belief that the discrepancy described herein occurred for the reasons stated. I also certify that evidence to support a claim of non- importation or proper disposition of mer- chandise will be retained in the carrier’s files for a period of at least one year from the date of this report of discrepancy and will be made available to Customs upon de- mand.
(d) Action on the discrepancy report. (1) In accordance with the proviso to 19 U.S.C. 1584, no penalty shall be in- curred under that section if—
(i) The manifest discrepancy relates only to a shortage;
(ii) There is timely filing of the dis- crepancy report;
(iii) There has been no loss of rev- enue;
(iv) The port director is satisfied that the discrepancy resulted from clerical error or other mistake; and
(v) In the case of a discrepancy not reported initially by the master, per- son in charge, owner, agent, or the per- son directly or indirectly responsible, the port director is satisfied that there is a valid reason for failure to file the discrepancy report.
(2) If the criteria in paragraph (d)(1) of this section are not met, applicable penalties under 19 U.S.C. 1584 shall be assessed.
(3) Any penalty or liability to for- feiture incurred under 19 U.S.C. 1584 may be mitigated or remitted under section 618, Tariff Act of 1930, as amended (19 U.S.C. 1618).
(e) Penalty assessment. For the pur- pose of assessing penalties under 19 U.S.C. 1584, the value of the merchan- dise shall be determined as described in section 162.43 of this chapter.
(f) Lack of knowledge does not relieve liability. The fact that the master of the vessel, the person in charge of the vehicle, or the owner of the vessel or vehicle had no knowledge of a discrep- ancy shall not relieve the master, the person in charge, or the owner from a penalty, or the vessel or vehicle from liability to forfeiture, incurred under 19 U.S.C. 1584.
(g) Clerical error or other mistake de- fined. For the purpose of this section, the term ‘‘clerical error or other mis- take’’ is defined as a non-negligent, in- advertent, or typographical mistake in the preparation, assembly, or submis- sion of manifests. However, repeated similar manifest discrepancies by the same persons may be considered the re- sult of negligence and not clerical error or other mistake.
[T.D. 80–236, 45 FR 64172, Sept. 29, 1980, as amended by T.D. 93–96, 58 FR 67318, Dec. 21, 1993]
§ 123.10 General order merchandise. (a) Any merchandise or baggage regu-
larly landed but not covered by a per- mit for its release shall be allowed to remain at the place of unlading until the fifteenth calendar day after land- ing. No later than 20 calendar days after landing, the owner or operator of the vehicle or the agent thereof shall notify Customs of any such merchan- dise or baggage for which entry has not been made. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system. Failure to provide such notification may result in assessment of a monetary penalty of up to $1,000 per bill of lading against the owner or operator of the vehicle or the agent thereof. If the value of the mer- chandise on the bill is less than $1,000, the penalty shall be equal to the value of such merchandise.
(b) Any merchandise or baggage that is taken into custody from an arriving carrier by any party under a Customs- authorized permit to transfer or in- bond entry may remain in the custody of that party for 15 calendar days after receipt under such permit to transfer or 15 calendar days after arrival at the port of destination. No later than 20 calendar days after receipt under the permit to transfer or 20 calendar days after arrival under bond at the port of destination, the party shall notify Cus- toms of any such merchandise or bag- gage for which entry has not been made. Such notification shall be pro- vided in writing or by any appropriate Customs-authorized electronic data interchange system. If the party fails to notify Customs of the unentered merchandise or baggage in the allotted
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time, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(c)(4) of this chapter).
(c) In addition to the notification to Customs required under paragraphs (a) and (b) of this section, the carrier (or any other party to whom custody of the unentered merchandise has been transferred by a Customs authorized permit to transfer or in-bond entry) shall provide notification of the pres- ence of such unreleased and unentered merchandise or baggage to a bonded warehouse certified by the port direc- tor as qualified to receive general order merchandise. Such notification shall be provided in writing or by any appro- priate Customs-authorized electronic data interchange system and shall be provided within the applicable 20-day period specified in paragraph (a) or (b) of this section. It shall then be the re- sponsibility of the bonded warehouse proprietor to arrange for the transpor- tation and storage of the merchandise or baggage at the risk and expense of the consignee. The arriving carrier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry) is responsible for preparing a Customs Form (CF) 6043 (Delivery Ticket), or other similar Customs document as designated by the port director or an electronic equivalent as authorized by Customs, to cover the proprietor’s re- ceipt of the merchandise and its trans- port to the warehouse from the custody of the arriving carrier (or other party to whom custody of the merchandise was transferred by the carrier under a Customs-authorized permit to transfer or in-bond entry) (see § 19.9 of this chap- ter). Any unentered merchandise or baggage shall remain the responsibility of the carrier, master, or person in charge of the importing vehicle or the agent thereof or party to whom the merchandise has been transferred under a Customs authorized permit to transfer or in-bond entry until it is properly transferred from his control in accordance with this paragraph. If the party to whom custody of the unentered merchandise or baggage has been transferred by a Customs-author- ized permit to transfer or in-bond entry
fails to notify a Customs-approved bonded warehouse of such merchandise or baggage within the applicable 20-cal- endar-day period, he may be liable for the payment of liquidated damages of $1,000 per bill of lading under the terms and conditions of his international car- rier or custodial bond (see §§ 113.63(b), 113.63(c) and 113.64(b) of this chapter).
(d) If the carrier or any other party to whom custody of the unentered mer- chandise has been transferred by a Cus- toms-authorized permit to transfer or in-bond entry fails to timely relinquish custody of the merchandise to a Cus- toms-approved bonded General Order warehouse, the carrier or other party may be liable for liquidated damages equal to the value of that merchandise under the terms and conditions of his international carrier or custodial bond, as applicable.
(e) If the bonded warehouse operator fails to take possession of unentered and unreleased merchandise or baggage within five calendar days after receipt of notification of the presence of such merchandise or baggage under this sec- tion, he may be liable for the payment of liquidated damages under the terms and conditions of his custodial bond (see § 113.63(a)(1) of this chapter). If the port director finds that the warehouse proprietor cannot accept the goods be- cause they are required by law to be exported or destroyed (see § 127.28 of this chapter), or for other good cause, the goods will remain in the custody of the arriving carrier or other party to whom the goods have been transferred under a Customs-authorized permit to transfer or in-bond entry. In this event, the carrier or other party will be re- sponsible under bond for exporting or destroying the goods, as necessary (see §§ 113.63(c)(3) and 113.64(b) of this chap- ter).
(f) In ports where there is no bonded warehouse authorized to accept general order merchandise, or if merchandise requires specialized storage facilities which are unavailable in a bonded fa- cility, the port director, after having received notice of the presence of unentered merchandise or baggage in accordance with the provisions of this section, shall direct the storage of the merchandise by the carrier or by any other appropriate means.
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(g) Merchandise taken into the cus- tody of the port director pursuant to section 490(b), Tariff Act of 1930, as amended (19 U.S.C. 1490(b)), shall be sent to a general order warehouse after 1 day after the day the vehicle arrived, to be held there at the risk and expense of the consignee.
[T.D. 98–74, 63 FR 51289, Sept. 25, 1998, as amended by T.D. 02–65, 67 FR 68033, Nov. 8, 2002]
Subpart B—International Traffic § 123.11 Supplies on international
trains. (a) Articles acquired abroad. Articles
subject to internal revenue tax and other merchandise acquired abroad constituting supplies arriving on inter- national trains crossing and recrossing the boundary line, for which the train crew elects not to file an inventory as provided for in paragraph (b) of this section, shall be subject to duty and tax unless locked or sealed in a sepa- rate compartment or locker upon ar- rival, and the lock or seal remains un- broken until the train departs from the United States at the final port of exit.
(b) Inventory procedure. Supplies ac- quired abroad for which internal rev- enue stamps are not required may be used in the United States under the fol- lowing procedure:
(1) Port of arrival. An inventory exe- cuted in duplicate consisting of an itemized list showing the kind and quantity of each class of supplies on hand in the car with space for a par- allel column in which to show at the port of exit the quantity used, shall be certified by the person in charge of the car and furnished to the Customs offi- cer upon arrival. The Customs officer shall certify the correctness of both copies of the inventory, return the original to the person in charge of the car and retain the duplicate, or forward it to the port of exit if this differs from the port of arrival.
(2) Port of exit. Upon arrival at the port of exit, the inventory returned at the port of arrival to the person in charge of the car shall be submitted to the Customs officer after completion by showing the quantity of each item used in the United States, and being certified by the person in charge of the
car. Entries must be filed and applica- ble duties and taxes paid at the port of exit on the quantity of supplies con- sumed in the United States.
(c) Supplies purchased in the United States. Supplies purchased in the United States shall be passed free of duty without inventory or entry.
§ 123.12 Entry of foreign locomotives and equipment in international traffic.
(a) Use on a continuous route. Foreign locomotives or other foreign railroad equipment in use on a continuous route crossing the boundary into the United States shall be admitted without for- mal entry or the payment of duty to proceed to the end of the run and de- part for a foreign country, in accord- ance with the following:
(1) On inward trip. Unless formally entered and cleared through Customs into the United States, or unless ex- empt from entry as provided in § 141.4(b)(4) of this chapter, a foreign lo- comotive shall be used on the inward trip only in connection with taking the inbound train to the last place in a continuous haul, including the switch- ing of cars which it has hauled into the United States. Other foreign railroad equipment may proceed to the place of complete unloading for any merchan- dise imported therein.
(2) On outward trip. Unless formally entered and cleared through Customs into the United States, or unless ex- empt from entry as provided in § 141.4(b)(4) of this chapter, foreign lo- comotives may be used on the outward trip only in connection with through trains crossing the boundary, including switching to make up such trains. Other foreign railroad equipment may be used in such trains or for such local traffic as is reasonably incidental to its economical and prompt departure for a foreign country.
(b) Admission of empty equipment. Empty foreign railroad equipment shall be admitted to the United States without formal entry and payment of duty only if:
(1) The passengers or goods to be loaded are to be transported directly to or through a foreign country; or
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(2) The equipment is exempt from entry as provided in § 141.4(b)(4) of this chapter.
(c) Penalty for improper use. The use of any foreign locomotive and other for- eign railroad equipment in violation of this section may result in liabilities being incurred under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592).
(d) Domestic and foreign locomotives and other railroad equipment defined. For the purpose of this section and § 123.13, locomotives or other railroad equipment manufactured in, or regu- larly imported into, the United States, shall be considered ‘‘domestic’’ if not subsequently formally entered and cleared through foreign customs into another country, nor used in foreign local traffic otherwise than as an inci- dent of the return of the equipment to the United States. Other locomotives and railroad equipment shall be consid- ered ‘‘foreign’’.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 73–73, 38 FR 6991, Mar. 15, 1973; T.D. 79–160, 44 FR 31956, June 4, 1979; T.D. 83–118, 48 FR 23385, May 25, 1983; T.D. 94– 51, 59 FR 30294, June 13, 1994]
§ 123.13 Foreign repairs to domestic lo- comotives and other domestic rail- road equipment.
A report of the first arrival in the United States of a domestic locomotive or other railroad equipment after re- pairs have been made in a foreign coun- try other than those required to re- store it to the condition in which it last left the United States (‘‘running repairs’’), shall be made promptly, in writing, to the Customs officer at the port of re-entry. The report shall state the time and place of arrival, and the nature and value of the repairs. Each such locomotive or other piece of rail- road equipment when withdrawn from international traffic shall be subject to duty upon the value of the repairs (other than ‘‘running repairs’’), made abroad at the rate at which the re- paired article would be dutiable if im- ported. For the appropriate determina- tion as to whether the locomotive or other railroad equipment should be considered ‘‘domestic’’ or ‘‘foreign’’, see § 123.12(d).
[T.D. 73–73, 38 FR 6991, Mar. 15, 1973]
§ 123.14 Entry of foreign-based trucks, busses, and taxicabs in inter- national traffic.
(a) Admission without entry or payment of duty. Trucks, busses, and taxicabs, however owned, which have their prin- cipal base of operations in a foreign country and which are engaged in international traffic, arriving with merchandise or passengers destined to points in the United States, or arriving empty or loaded for the purpose of tak- ing out merchandise or passengers, may be admitted without formal entry or the payment of duty. Such vehicles shall not engage in local traffic except as provided in paragraph (c) of this sec- tion.
(b) Deposit of registration by vehicle not on regular trip. In any case in which a foreign-based truck, bus, or taxicab ad- mitted under this section is not in use on a regularly scheduled trip, the port director may require that the registra- tion card for the vehicle be deposited pending the return of the vehicle for departure to the country from which it arrived, or the port director may take other appropriate measures to assure the proper use and departure of the ve- hicle.
(c) Use in local traffic. Foreign-based trucks, busses, and taxicabs admitted under this section shall not engage in local traffic in the United States unless the vehicle comes within one of the fol- lowing exceptions:
(1) The vehicle may carry merchan- dise or passengers between points in the United States if such carriage is in- cidental to the immediately prior or subsequent engagement of that vehicle in international traffic. Any such car- riage by the vehicle in the general di- rection of an export move or as part of the return of the vehicle to its base country shall be considered incidental to its engagement in international traffic. An alien driver will not be per- mitted to operate a vehicle under this paragraph, unless the driver is in com- pliance with the applicable regulations of the Immigration and Naturalization Service.
(2) A foreign-based truck trailer may carry merchandise between points in the United States on its departure for
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a foreign country under the same con- ditions as are prescribed for ‘‘other for- eign railroad equipment’’ in § 123.12(a)(2).
(d) Penalty for improper use. The use of any vehicle referred to in this sec- tion in violation of this section may re- sult in liabilities being incurred under section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592).
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 79–160, 44 FR 31956, June 4, 1979; T.D. 83–118, 48 FR 23385, May 25, 1983; T.D. 99–10, 64 FR 7504, Feb. 16, 1999]
§ 123.15 Vehicles of foreign origin used between communities of the United States and Canada or Mexico.
Vehicles of foreign origin which are used for commercial purposes between adjoining or neighboring communities of the United States and Canada or Mexico, such as delivery, peddlers’, and service trucks, or wagons, are subject to duty on first arrival, but may there- after be admitted without formal entry or the payment of duty so long as they are continuously employed in such service.
§ 123.16 Entry of returning trucks, busses, or taxicabs in international traffic.
(a) Admission without entry or payment of duty. Trucks, busses, and taxicabs, whether of foreign or domestic origin, taking out merchandise or passengers for hire or leaving empty for the pur- pose of bringing back merchandise or passengers for hire shall on their re- turn to the United States be admitted without formal entry or the payment of duty upon their identity being estab- lished by State registration cards.
(b) Use in local traffic. Trucks, busses, and taxicabs in use in international traffic, which may include the inci- dental carrying of merchandise or pas- sengers for hire between points in a foreign country, or between points in this country, shall be admitted under this section. However, such vehicles taken abroad for commercial use be- tween points in a foreign country, oth- erwise than in the course of their use in international traffic, shall be con-
sidered to have been exported and must be regularly entered on return.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 99–10, 64 FR 7504, Feb. 16, 1999]
§ 123.17 Foreign repairs to domestic trucks, busses, taxicabs and their equipment.
(a) Domestic trucks, busses, and taxi- cabs and their equipment defined. For the purpose of this section, trucks, busses, and taxicabs and their equipment man- ufactured in, or regularly imported into the United States, shall be consid- ered ‘‘domestic’’ if not subsequently formally entered and cleared through foreign customs into another country, nor used in foreign local traffic other- wise than as an incident of their return to the United States.
(b) Report of arrival and payment of duty on repairs. A report of the first ar- rival in the United States of domestic trucks, busses, and taxicabs and their equipment after repairs have been made in a foreign country, other than those required to restore such vehicle or equipment to the condition in which it last left the United States (‘‘running repairs’’), shall be made by the driver or person in charge of the vehicle promptly, in writing, to the Customs officer at the port of reentry. The re- port shall state the time and place of arrival and the nature and value of the repairs. Each such vehicle or its equip- ment when withdrawn from inter- national traffic shall be subject to duty upon the value of the repairs (other than ‘‘running repairs’’) made abroad at the rate at which the repaired arti- cle would be dutiable if imported.
§ 123.18 Equipment and materials for constructing bridges or tunnels be- tween the United States and Can- ada or Mexico.
(a) Admission of equipment and mate- rials. Equipment for use in construc- tion of bridges or tunnels between the United States and Canada or Mexico shall be admitted without entry or the payment of duty. Materials for such use shall be admitted without entry or payment of duty only for installation in the bridge or tunnel proper, and not in the approaches on land at the United States end of such bridge or tunnel.
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(b) Customs supervision. All articles admitted under paragraph (a) of this section shall be subject to Customs su- pervision at the expense of the builder until installed, entered, or exported.
Subpart C—Shipments in Transit Through Canada or Mexico
§ 123.21 Merchandise in transit.
(a) Status. Merchandise may be trans- ported from one port to another in the United States through Canada or Mex- ico in accordance with the regulations in this subpart or subparts E for trucks transiting Canada, F for commercial traveler’s samples, or G for baggage. Merchandise so transported is not sub- ject to treatment as an importation when returned to the United States, and no inward foreign manifest is re- quired for merchandise returned under an in-transit manifest. In-transit mer- chandise returned to the United States shall be treated as an importation as are shipments made from Canada or Mexico if:
(1) An in-transit manifest is not fur- nished for the merchandise upon its re- turn to the United States;
(2) The merchandise has been trans- shipped in foreign territory without Customs supervision when the trans- shipment required the breaking of Cus- toms seals; or
(3) The Customs inspector finds any of the Customs seals applied to the conveyance or compartment unlocked or missing.
(b) Use of certain vessels prohibited. Merchandise shall not be transported from port to port in the United States through Canada or Mexico by vessel in violation of the provisions of section 27, Merchant Marine Act of 1920, as amended (46 U.S.C. 883), or section 588, Tariff Act of 1930, as amended (19 U.S.C. 1588). (See § 4.80 of this chapter.)
(c) Regulations applicable. The provi- sions of this subpart shall govern all merchandise transported from one port to another in the United States through Canada or Mexico under in- transit procedures, except as otherwise provided in this subpart or in subpart E for truck shipments transiting Canada, subpart F for commercial traveler’s samples transiting Canada, and subpart
G for baggage transiting Canada or Mexico.
§ 123.22 In-transit manifest.
(a) Manifest required. A manifest in duplicate covering the in-transit mer- chandise which is to proceed under the provisions of this subpart shall be pre- sented by the carrier to the Customs officer at each port of lading of a ves- sel, or at the port of exit of a vehicle. Where the merchandise is transported under Customs red in-bond seals and is accompanied by a transportation in- bond manifest, a separate in-transit manifest is not required.
(b) Additional copies. In the following cases additional copies of the manifest shall be presented:
(1) When the merchandise is to be transshipped in foreign territory under Customs supervision, a copy of the manifest for each place of trans- shipment shall be presented.
(2) When a Customs officer requests an extra copy of the manifest as a record of the transaction.
(c) Manifest forms to be used. The in- transit manifest forms to be used are:
(1) For trucks, railroad cars or other overland carriers transiting Mexico a manifest on Customs Form 7512–B or 7533–C shall be presented.
(2) For vessels of less than 5 net tons departing and arriving otherwise than by sea, a manifest on Customs Form 7512–B or 7533–C shall be presented. All other vessels are subject to the mani- festing requirements contained in § 4.82 of this chapter.
(3) For rail cars transiting Canada, a manifest on Customs Form 7533–C (Canada A4–1/2) shall be presented. For trains which will remain intact while transiting Canadian territory, a con- solidated train manifest containing all the information included in the indi- vidual car manifests and the train sheet required by § 123.23 may be used in lieu of individual car manifests. For a number of cars which will transit Canada as a group, a consolidated manifest may be used, but a train sheet shall also be presented.
(4) In all other cases where no in- transit manifest form is specified in this subpart, or in subpart E relating to truck shipments on the Canadian
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border, subpart F relating to commer- cial traveler’s samples, and subpart G relating to baggage, Customs Form 7512–B or 7533–C shall be presented.
(d) Contents of in-transit manifest. The information contained in the manifest shall correspond to the information contained in the waybill accompanying the shipment, except that:
(1) The conveyance shall be identified in a suitable manner in the place pro- vided for such identification.
(2) The description of ladings made up of several shipments which are to go forward in a conveyance or compart- ment sealed with Customs seals shall be ‘‘miscellaneous shipments.’’
(3) When an in-transit rail shipment will enter and reenter Canada in a con- tinuing movement en route to a final destination in the United States, only the final United States port of reentry shall be shown on the manifest.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 82–145, 47 FR 35478, Aug. 16, 1982]
§ 123.23 Train sheet for in-transit rail shipments.
Before an in-transit train proceeding under the provisions of this subpart de- parts from the United States, the car- rier shall furnish to the customs officer at the port of exit a train sheet, some- times called a consist, bridge sheet or trip sheet, listing each car of the train and specifically identifying the in- transit cars, unless a consolidated manifest containing this information has been presented for a train which will remain intact.
§ 123.24 Sealing of conveyances or compartments.
(a) Sealing required. Merchandise in transit proceeding under the provisions of this subpart shall be transported in sealed conveyances or compartments, except that:
(1) Less than load or compartment lots may be forwarded in unsealed con- veyances or compartments, without cording and sealing;
(2) The Commissioner of Customs may authorize treatment of full loads or lots in the same manner as less than load or compartment lots;
(3) Live animals identifiable by spe- cific description in the manifest may
be transported in the care of an attend- ant or customs inspector at the ex- pense of the parties in interest, in un- sealed conveyances or compartments.
(b) Seals to be affixed. The carrier shall affix blue in-transit seals to all openings of conveyances and compart- ments containing in-transit merchan- dise except that:
(1) Sealable carload shipments on the Canadian border shall be sealed with yellow in-transit seals.
(2) Conveyances or compartments sealed with U.S. Customs red in-bound seals may go forward without addi- tional seals.
(c) Carrier relieved of responsibility. The port director may relieve the car- rier of the responsibility of affixing in- transit seals by notification in writing that Customs inspectors will assume it.
§ 123.25 Certification and disposition of manifests.
(a) Certification. Conveyances pro- ceeding under the provisions of this subpart shall not proceed until the Customs inspector has certified the in- transit manifest or verified its certifi- cation by the carrier. The port director may require the carrier to execute the certificate as an alternative to certifi- cation by the Customs officer. When the carrier is to execute the certifi- cate, and the merchandise will be for- warded without being under Customs seals, the agent of the carrier shall carefully examine the packages cov- ered by the manifests to satisfy himself that the merchandise agrees with the manifest as to quantity and descrip- tion.
(b) Disposition of manifest. The origi- nal manifest, after certification, shall accompany the merchandise. Addi- tional copies required when the mer- chandise is to be transshipped in Can- ada or Mexico under Customs super- vision shall be given to the person in charge of the conveyance for delivery to the Customs officers who will super- vise transshipment.
§ 123.26 Transshipment of merchan- dise moving through Canada or Mexico.
(a) General. Merchandise in transit proceeding under the provisions of this subpart may be transshipped from one
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conveyance to another in foreign terri- tory. When transshipment requires the breaking of Customs seals, the break- ing of the seals, transshipment and sealing of the conveyance or compart- ment to which the merchandise is transshipped shall be under the super- vision of a Customs officer. He shall note his action on both the additional copy of the manifest presented to him, in accordance with § 123.25(b), and on the original copy, which shall be re- turned to the person in charge of the conveyance to accompany the mer- chandise. Merchandise transshipped in foreign territory without customs su- pervision when Customs seals were bro- ken shall be treated upon return to the United States as imported merchan- dise.
(b) Storage awaiting transshipment. Merchandise moving under in-transit manifests and Customs seals which is to be stored in foreign territory await- ing transshipment shall be checked into a storehouse by the Customs offi- cer at the place of transshipment. It shall remain under Customs locks and seals until transshipment is completed under Customs supervision.
(c) Manifests where contents broken up. When transshipment involves the breaking up of the in-transit contents of a conveyance or compartment, in such a manner as to require separate manifests for articles previously cov- ered by a single manifest, the Customs officer supervising the transshipment shall take up the carrier’s copy of the manifest and require the carrier to pre- pare a new manifest, in duplicate, for each conveyance to which the mer- chandise is transshipped. If there is to be further transshipment, an addi- tional copy of each new manifest shall be presented by the carrier, and shall be returned to the person in charge of the carrier for delivery to the Customs officer at the point of further trans- shipment in accordance with § 123.25(b). After the transshipment and sealing of the conveyances and compartments has been supervised and the new manifests certified the originals of the new mani- fests shall be returned to the carrier to accompany the merchandise to the point of reentry into the United States.
§ 123.27 Feeding and watering animals in Canada.
If animals in sealed conveyances or compartments cannot be fed and wa- tered in Canada without breaking cus- toms seals, the seals shall be broken and the animals fed and watered under the supervision of a United States or Canadian Customs officer. The super- vising officer shall reseal the convey- ance or compartment, and make nota- tion as to the resealing on the mani- fest.
§ 123.28 Merchandise remaining in or exported to Canada or Mexico.
(a) In-transit status abandoned. When the in-transit status of merchandise transiting Canada or Mexico is aban- doned and the merchandise is entered for consumption or other disposition in Canada or Mexico, the carrier shall send the in-transit seals and manifests to the port where the manifests were first filed with U.S. Customs, or in the case of trucks under subpart E, the port of exit, with an endorsement by the carrier’s agent on each manifest showing that the merchandise was so entered. The carriers shall comply with the export control regulations, 15 CFR part 370.
(b) In-transit merchandise exported to Canada or Mexico. Merchandise to be exported to Canada or Mexico after moving in-transit through a contig- uous country shall be treated as ex- ported when it has passed through the last port of exit from the United States. This paragraph shall control whether or not the merchandise to be exported is domestic or foreign and whether or not it is exported with ben- efit of drawback. The manifest, ship- per’s export declaration, and the notice of exportation, if any, shall be filed at the last port of exit from the United States.
§ 123.29 Procedure on arrival at port of reentry.
(a) Presentation of documents. At the first port in the United States after transportation through Canada or Mex- ico under the provisions of this sub- part, the carrier shall present to Cus- toms the in-transit manifest or mani- fests for each loaded conveyance. For mixed ladings, that is, ladings made up
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of several shipments, the waybills shall be available at the port of return or discharge for use by Customs officers. For a railroad train for which a con- solidated manifest was not used the conductor shall also present a train sheet showing the car numbers and ini- tials.
(b) Vessels and rail shipments con- tinuing in-transit movement—(1) Vessels. In the case of a vessel carrying in-tran- sit merchandise, the master’s copies of the in-transit or in-bond manifest cov- ering the merchandise given final Cus- toms release at that port shall be re- tained by Customs at that port and the manifests covering merchandise to be discharged at subsequent ports of ar- rival shall be returned to the master of the vessel for presentation to Customs at the next port.
(2) Rail shipments. An in-transit rail shipment arriving at an intermediate port of reentry or exit intended for fur- ther in-transit movement through Can- ada may be permitted to go forward under the accompanying in-transit manifest after verification by Customs that the manifest satisfactorily identi- fies the shipment.
(c) Checking and breaking of seals—(1) Checking seals. The Customs officer at the port of arrival shall check customs seals applied to the conveyance or compartment for unlocked or missing seals. Where the seals are unlocked or missing, the merchandise shall be treated as having been imported from the transited country.
(2) Breaking seals. In-bond seals shall be broken only by a Customs officer or by a person acting under the direction of a Customs officer. In-transit seals may be broken by any carrier’s em- ployee, or by a consignee at any time or place after the merchandise under such seals has been released by Cus- toms.
(d) Proper manifest. In-transit mer- chandise shall not be released until proper in-transit manifests are re- ceived except that it may be treated as imported merchandise.
(e) Substitution of merchandise. Any instance of substitution of merchandise shall be reported to the Commissioner of Customs, and the merchandise shall be detained.
Subpart D—Shipments in Transit Through the United States
§ 123.31 Merchandise in transit. (a) From one contiguous country to an-
other. Merchandise may be transported in transit across the United States be- tween Canada and Mexico under the procedures set forth in part 18 of this chapter for merchandise entered for transportation and exportation.
(b) From one point in a contiguous country to another through the United States. Merchandise may be transported from point to point in Canada or in Mexico through the United States in bond in accordance with the procedures set forth in §§ 18.20 to 18.24 of this chap- ter except where those procedures are modified by this subpart or subparts E for trucks transiting the United States, F for commercial traveler’s samples, or G for baggage.
§ 123.32 Manifests. (a) Form and number of copies required.
Three copies of the transportation entry and manifest on Customs Form 7512 shall be presented upon arrival of merchandise which is to proceed under the provisions of this subpart.
(b) Consolidated train manifest. When the route is such that a train will re- main intact while proceeding through the United States, a consolidated train manifest containing the same informa- tion as is required on individual mani- fests may be used.
(c) Disposition of manifest form. One copy of the manifest shall be delivered to the person in charge of the carrier to accompany the conveyance and be delivered to the Customs officer at the final port of exit.
§ 123.33 [Reserved]
§ 123.34 Certain vehicle and vessel shipments.
In the following circumstances, the copy of Customs Form 7512 to be re- tained at the port of first arrival may be adapted for use as a combined in- ward foreign manifest and in-bond transportation or direct exportation entry:
(a) When all the merchandise arriv- ing on one vehicle (except on trucks on the Canadian border) is to move in
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bond in the importing vehicle in a con- tinuing movement through the United States; or
(b) When all the merchandise arriv- ing on one vessel or on one vehicle (ex- cept on trucks on the Canadian border) is entered immediately upon arrival ei- ther under a single immediate trans- portation entry or a single transpor- tation and exportation or direct expor- tation entry. When Customs Form 7512 is to be used in this manner, the foreign port of lad- ing and the name of the shipper shall be shown in every case, and a certifi- cate in the following form shall be leg- ibly stamped on the manifest or on a separate paper securely fastened there- to and executed by the master of the vessel or the person in charge of the ve- hicle:
This entry correctly covers all the mer- chandise on the vessel or vehicle, of which I am the master or person in charge, when it first arrived in the United States. If an error in the quantity, kind of article, or other de- tails is discovered, I will immediately report the correct information to the port director.
Subpart E—United States and Canada In-Transit Truck Pro- cedures
§ 123.41 Truck shipments transiting Canada.
(a) Manifest required. Trucks with merchandise transiting Canada from point to point in the United States will be manifested on United States-Canada Transit Manifest, Customs Form 7512–B Canada 81⁄2. The driver shall present the manifest in four copies to U.S. Cus- toms at the United States port of de- parture for review and validation.
(b) Procedure at United States port of departure. The Customs officer receiv- ing the manifest shall validate it by stamping each copy in the lower right hand corner to show the port name and date and by initialing each copy. All copies of the validated manifest then will be returned to the driver for pres- entation to Canadian Customs at the Canadian port of entry.
(c) Procedure at Canadian ports of ar- rival and exit. Truck shipments transiting Canada shall comply with Canadian Customs regulations. These procedures generally are as follows:
(1) Canadian port of arrival. The driver shall present a validated United States-Canada Transit Manifest Cus- toms Form 7512–B Canada 81⁄2, in four copies to the Canadian Customs officer, who shall review the manifest for accu- racy and verify its validation by U.S. Customs. If the manifest is found not to be properly validated, the truck shall be required to be returned to the United States port of departure so that the manifest may be validated. If the manifest is validated properly and no irregularity is found, the truck will be sealed unless sealing is waived by Ca- nadian Customs. The original manifest will be retained by Canadian Customs at the port of arrival, and the three copies will be returned to the driver for presentation to Canadian Customs at the Canadian port of exit.
(2) Canadian port of exit. The driver shall present the three copies of the validated manifest to the Canadian Customs officer at the Canadian port of exit for certification. That officer shall verify that the seals are intact if the vehicle has been sealed or, if sealing has been waived, that there are no irregularities. After verification and certification of the manifest, two cer- tified copies will be returned to the driver (one to be presented to U.S. Cus- toms at the United States port of re- entry, the other for the carrier’s records), and the truck will be allowed to proceed to the United States.
(d) Procedure at United States port of reentry. The driver of a truck reen- tering the United States after transiting Canada shall present a cer- tified copy of the United States-Canada Transit Manifest, Customs Form 7512–B Canada 81⁄2, to the U.S. Customs officer. If this copy of the manifest does not bear the certification of a Canadian Customs officer at the Canadian port of exit, the driver will be allowed to re- turn to that port to have it certified. The driver will be allowed to break any seals affixed by Canadian Customs upon presentation of a certified mani- fest. If sealing has been waived, the U.S. Customs officer shall satisfy him- self that the truck contains only that merchandise covered by the manifest which moved on the truck from the United States through Canada.
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(e) Proof of exportation from Canada. The certified copy of the manifest re- turned to the driver by Canadian Cus- toms at the Canadian port of exit will serve as proof of exportation of the shipment from Canada.
[T.D. 81–85, 46 FR 21990, Apr. 15, 1981]
§ 123.42 Truck shipments transiting the United States.
(a) Manifest required. Trucks with merchandise transiting the United States from point to point in Canada will be manifested on United States- Canada Transit Manifest, Customs Form 7512–B Canada 81⁄2. The driver, in accordance with Canadian Customs regulations, shall present the manifest in four copies to Canadian Customs at the Canadian port of departure for re- view and validation.
(b) Procedure at Canadian port of de- parture. The Customs officer receiving the manifest shall validate it by stamping each copy in the lower right hand corner to show the port name and date and by initialing each copy. All copies of the validated manifest then will be returned to the driver for pres- entation to U.S. Customs at the United States port of entry.
(c) Procedure at United States port of arrival—(1) Presentation of manifest. The driver shall present a validated United States-Canada Transit Manifest, Cus- toms Form 7512–B Canada 81⁄2, in four copies to the U.S. Customs officer, who shall review the manifest for accuracy and verify its validation by Canadian Customs. If the manifest is found not to be validated properly, the truck will be required to be returned to the Cana- dian port of departure so that the manifest may be validated in accord- ance with Canadian Customs regula- tions. If the manifest is validated prop- erly and no irregularity is found the truck will be sealed unless sealing is waived by U.S. Customs. The U.S. Cus- toms officer shall note on the manifest over his initials the seal numbers or the waiver of sealing, retain the origi- nal, and return three copies of the manifest to the driver for presentation to U.S. Customs at the United States port of exit.
(2) Sealing or waiver of sealing. Trucks transiting the United States will be sealed with red in-bond seals at the
United States port of arrival unless sealing is waived in accordance with § 18.4 of this chapter. If a truck cannot be sealed effectively and sealing is deemed necessary to protect the rev- enue or to prevent violation of the Cus- toms laws or regulations, the truck will not be permitted to transit the United States under bond.
(d) Procedure at United States port of exit. The driver shall present the three validated copies of the manifest to the U.S. Customs officer at the U.S. port of exit. The Customs officer shall check the numbers and condition of the seals and record and certify his findings on all copies of the manifest, returning two certified copies to the driver (one to be presented to Canadian Customs at the Canadian port of reentry, the other for the carrier’s records), and the truck will be allowed to proceed to Canada. The check of the seals shall be made as follows:
(1) If the seals are intact, they will be left unbroken unless there is indication that the contents should be verified.
(2) If the seals have been broken, or there is other indication that the con- tents should be verified, all merchan- dise will be required to be unladen and a detailed inventory made against the waybills. If sealing has been waived, the Customs officer shall verify the goods against the accompanying waybills in suffi- cient detail to detect any irregularity.
(e) Procedure at Canadian port of re- entry. The driver of a truck reentering Canada after transiting the United States shall present a certified copy of the United States-Canada Transit Manifest, Customs Forms 7512–B Can- ada 81⁄2, to the Canadian Customs offi- cer. If this copy of the manifest does not bear the certification of a U.S. Cus- toms officer at the United States port of exit, the driver will be allowed to re- turn to that port to have it certified.
(f) Proof of exportation from United States. The certified copy of the mani- fest returned to the driver by the U.S. Customs officer at the U.S. port of exit will serve as proof of exportation of the shipment from the U.S.
(g) Forwarding procedure. Except as otherwise provided in this section, merchandise transported in trucks shall be forwarded in accordance with
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the general provisions for transpor- tation in bond (§§ 18.1–18.8 of this chap- ter).
[T.D. 81–85, 46 FR 21991, Apr. 15, 1981, as amended by T.D. 84–212, 49 FR 39047, Oct. 3, 1984; T.D. 00–22, 65 FR 16518, Mar. 29, 2000]
Subpart F—Commercial Traveler’s Samples in Transit Through the United States or Canada
§ 123.51 Commercial samples trans- ported by automobile through Can- ada between ports in the United States.
(a) General provisions. A commercial traveler arriving at a U.S. frontier port desiring to transport his commercial samples by automobile through Canada to another place in the United States without displaying the samples in Can- ada may request a U.S. Customs officer at the port of departure to cord and seal the outer containers of the sam- ples if they can be effectively corded and sealed.
(b) List of samples. The traveler shall furnish the U.S. Customs officer at the port of exit a list, in duplicate, of all the articles in the containers, with their approximate values, in substan- tially the following form:
SAMPLES CARRIED IN TRANSIT THROUGH CANADA IN PRIVATE VEHICLE
llllllllllllllllllllllll
(U.S. port of exit printed here) (Date) I have checked the quantity and values of
the below-listed articles carried by llllllllll(Name and address of traveler) and owned by llllllllll(Name and address of firm or company) These articles are contained in llll (Number) packages which have been corded and sealed for in-transit movement through Canada to llll (U.S. port of reentry) in llll (Year, make and license number of vehicle)
———————————— (U.S. Customs Inspector)
Description of merchandise Value llllllllllllllllllllllll
llllllllllllllllllllllll
llllllllllllllllllllllll
When the traveler arrives at Customs with lists already prepared, the form may be inscribed ‘‘as per list at- tached.’’
(c) Checking, cording, and sealing by U.S. Customs officers. The Customs offi- cer shall check the list with the arti- cles and satisfy himself that the values shown are approximately correct. The Customs officer will cord and seal the containers with yellow in-transit seals. The traveler may be required to assist the Customs officer in the cording and sealing. The original of the list, signed by the Customs officer over his title and showing that the articles on the list have been checked by the officer against those in the containers shall be returned to the traveler for submission by him to Canadian customs upon his arrival in Canada.
(d) In-transit manifest. The traveler shall execute and file Customs Form 7512–B or 7533–C, in the original only, at the U.S. port of departure, as an in- transit manifest covering the move- ment of the samples to the U.S. port through which the traveler will return. Descriptions, quantities, and values may be shown thereon by noting ‘‘Commercial Samples’’ and the num- ber of corded and sealed containers. The manifest shall be returned to the traveler to accompany the samples after being signed and dated by the Customs officer.
(e) Presentation of in-transit manifest at U.S. port of reentry. Upon return to the United States, the traveler shall present Customs Form 7512–B or 7533–C and the corded and sealed samples to the U.S. Customs officer at the port where the samples are returned to this country. The Customs officer shall verify that there has been no irregu- larity.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 82–145, 47 FR 35478, Aug. 16, 1982]
§ 123.52 Commercial samples trans- ported by automobile through the United States between ports in Can- ada.
(a) General provisions. A commercial traveler arriving from Canada may be permitted to transport effectively corded and sealed samples in his auto- mobile without further sealing in the United States, upon compliance with this section and subject to the condi- tions of § 18.20(b), since Customs bonded carriers as described in § 18.1 of this
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chapter are not considered to be rea- sonably available. Samples having a total value of not more than $200 may be carried by a nonresident commercial traveler through the United States without cording and sealing and with- out an in-transit manifest in accord- ance with § 148.41 of this chapter.
(b) Presentation of sample list at Cana- dian port of exit. A commercial traveler arriving from Canada desiring to trans- port without display in the United States commercial samples in his auto- mobile through the United States to another port in Canada, may present his samples to a Canadian Customs of- ficer at the Canadian port of exit. The traveler will be required to furnish the Canadian Customs officer a list in du- plicate of all articles presented show- ing their approximate values. The list shall bear the traveler’s name and ad- dress, and the name and address of the firm represented.
(c) Checking, cording, and sealing by Canadian Customs officers. The Cana- dian Customs officer will examine the articles, identify them with the list, and satisfy himself that the values shown are approximately correct. The Canadian Customs officer will cord and seal the outer containers with uncolored in-transit seals and authen- ticate the list of samples with his sig- nature and title. Cording and sealing may be waived with the concurrence of the United States and Canadian Cus- toms officers.
(d) Treatment at U.S. port of arrival. The list of samples properly authenti- cated shall be submitted upon arrival to the U.S. Customs officer at the port of arrival. After ascertaining that the samples are effectively corded and sealed, or that sealing has been waived, notation of the number of corded and sealed containers, or of the waiver shall be made on the list of samples and the list shall be retained by the Customs officer as a record of the ship- ment.
(e) In-transit manifest. Movement of the samples from the port of arrival to the port of exit from the United States under this procedure shall be under an in-transit manifest on Customs Form 7512 executed and filed in triplicate by the traveler at the port of arrival in the United States. Descriptions, quan-
tities, and values may be shown there- on by noting ‘‘Commercial Samples,’’ the number of corded and sealed con- tainers, and the approximate total value of the samples. When cording and sealing has been waived with the con- currence of a Canadian Customs offi- cer, samples must be identified on the manifest by suitable itemized descrip- tions and approximate values, or by at- taching to the manifest a copy of the list of samples which has been initialed by the Customs officer.
(f) Presentation of samples and manifest at U.S. port of exit. The manifest on Customs Form 7512 shall be presented to the Customs officer at the U.S. port of exit, together with the samples cov- ered. If the seals are broken or cording and sealing has been waived, the Cus- toms officer shall verify that there are no irregularities.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 73–27, 38 FR 2449. Jan. 26, 1973; T.D. 87–75, 52 FR 20068, May 29, 1987]
Subpart G—Baggage
§ 123.61 Baggage arriving in baggage car.
An inward foreign manifest on Cus- toms Form 7533 shall be used for all baggage arriving in baggage cars.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 82–145, 47 FR 35478, Aug. 16, 1982]
§ 123.62 Baggage in possession of trav- eler.
For baggage arriving in the actual possession of a traveler, his declaration shall be accepted in lieu of an inward foreign manifest. (See § 123.3.)
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 73–72, 38 FR 2449, Jan. 26, 1973]
§ 123.63 Examination of baggage from Canada or Mexico.
(a) Opening vehicle or compartment to examine baggage. Customs officers are authorized to unlock, open, and exam- ine vehicles and compartments thereof for the purposes of examining baggage under sections 461, 462, 496, 581(a) and 582, Tariff Act of 1930, as amended (19 U.S.C. 1461, 1462, 1496, 1581(a), and 1582)
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and 19 U.S.C. 482. However, to the ex- tent practical, the Customs officer should ask the owner or operator to unlock such vehicle or compartment first. Where the owner or operator is unavailable or refuses to unlock the ve- hicle or compartment or where it is not practical to ask the owner or operator to unlock the same, it shall be opened by the Customs officer. If any article is subject to duty, or any prohibited arti- cle is found upon opening by the Cus- toms officer, the whole contents and the vehicle shall be subject to for- feiture pursuant to 19 U.S.C. 1462.
(b) Inspection of baggage. A Customs officer has the right to inspect all mer- chandise and baggage brought into the United States from contiguous coun- tries under 19 U.S.C. 1461. He also has the right, under the same statute, to require that owners of such baggage open it or furnish keys for doing so. Where the owner or agent is unavail- able or refuses to open the baggage or furnish keys or where it is not prac- tical to ask the owner or agent to open or furnish keys to the same, it shall be opened by the Customs officer. If any article is subject to duty, or any pro- hibited article is found upon opening by the Customs officer, the baggage shall be subject to forfeiture pursuant to 19 U.S.C. 1462.
[T.D. 95–86, 60 FR 54188, Oct. 20, 1995]
§ 123.64 Baggage in transit through the United States between ports in Canada or in Mexico.
(a) Procedure. Baggage in transit from point to point in Canada or Mex- ico through the United States may be transported in bond through the United States in accordance with the proce- dures set forth in §§ 18.13, 18.14, and 18.20 through 18.24 of this chapter ex- cept where those procedures are modi- fied by this section.
(b) In-transit manifest. Three copies of the manifest on Customs Form 7512 shall be required. One copy of the Form 7512 shall be delivered to the person in charge of the carrier to accompany the baggage and shall be delivered by the carrier to the Customs officer at the port of departure from the United States.
(c) Consolidated train manifest. When the route is such that a train carrying
baggage in bond will remain intact while proceeding through the United States, a consolidated train manifest containing the same information as is required on individual manifests may be used in lieu of individual manifest on Customs Form 7512.
(d) Baggage cards—(1) Baggage arriv- ing from Mexico. For baggage arriving at a port on the Mexican border for in- transit movement through the United States in bond and return to Mexico, the in-transit baggage card described in § 18.14 of this chapter shall be used.
(2) Baggage arriving from Canada. For baggage arriving at a port on the Cana- dian border for in-transit movement through the United States in bond and return to Canada, the joint United States-Canada in-transit baggage card, Customs Form 7512–B (Canada 81⁄2) or Customs Form 7533–C (Canada A4–1⁄2), shall be used. The baggage card will be filled out and securely attached to the baggage and the attachment verified by a Canadian Customs officer before the baggage leaves Canada. If the joint in-transit baggage card is found to be improperly prepared or attached upon arrival of the baggage in the United States for movement in bond, the car- rier may be required to furnish the baggage card described in § 18.14 of this chapter for attachment to the baggage before being allowed to proceed. At the port of exit from the United States the joint in-transit baggage card shall be allowed to remain on the baggage.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 71–70, 36 FR 4491, Mar. 6, 1971; T.D. 84–212, 49 FR 39047, Oct. 3, 1984; T.D. 87–75, 52 FR 20068, May 29, 1987; T.D. 00–22, 65 FR 16518, Mar, 29, 2000]
§ 123.65 Domestic baggage transiting Canada or Mexico between ports in the United States.
(a) General provision. Upon request of the carrier, checked baggage of domes- tic origin may be transported from one port in the United States to another through Canada or through Mexico in accord with the procedure set forth in this section. The provisions of this sec- tion shall not apply to domestic hand baggage crossing Canada or Mexico which, upon reentry into the United States, shall be examined in the same manner as baggage of foreign origin.
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(b) Special in-transit tag manifest. The carrier shall complete and attach to each piece of baggage by wire or cord under Customs supervision a special in- transit tag manifest furnished by the carrier as follows:
(1) Baggage transiting Mexico. For bag- gage of domestic origin to be trans- ported through Mexico between ports of the United States, the special in- transit tag manifest attached to each piece of baggage shall be on white card- board not less than 21⁄2 × 41⁄2 inches in size printed in substantially the fol- lowing form:
UNITED STATES CUSTOMS
IN-TRANSIT BAGGAGE MANIFEST
Carrier’s Baggageman: Destroy this tag if owner has access to baggage before its re- turn to United States.
Check No. ll. This baggage is in transit from
llllllllll (Port of exit) through foreign territory to llllllllll (Port of reentry) in the United States.
This baggage was laden for transportation as above stated.
Date llll ———————————————————————
(U.S. Customs Officer)
(2) Baggage transiting Canada. For baggage of domestic origin to be trans- ported through Canada between ports in the United States, the joint United States-Canada in-transit baggage card, Customs Form 7512–B (Canada 81⁄2) or Customs Form 7533–C (Canada A4–1⁄2), shall be used as the special in-transit tag manifest attached to each piece of baggage.
(c) Removal of special in-transit tag manifest. The special in-transit tag manifest shall be removed only by the Customs officers at the final port of re- entry into the United States. If the of- ficer finds the special in-transit tag manifest missing or not intact, or for any other reason believes that the bag- gage has been tampered with while out- side the United States, he shall detain it for examination. Otherwise, baggage transported under the procedure in this section may be passed without exam- ination.
(d) Procedure in lieu of special in-tran- sit tag manifest. In lieu of attaching the special in-transit tag manifest to each piece of baggage as set forth in para- graph (b) of this section, baggage of do-
mestic origin may be forwarded in a car or compartment sealed with in- transit seals and manifested as in the case of other merchandise in transit through Canada or Mexico, as provided in subpart C of this part.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 87–75, 52 FR 20068, May 29, 1987]
Subpart H [Reserved]
Subpart I—Miscellaneous Provisions
§ 123.81 Merchandise found in build- ing on the boundary.
When any merchandise on which the duty has not been paid or which was imported contrary to law is found in any building upon or within 10 feet of the boundary line between the United States and Canada or Mexico, such merchandise shall be seized and a re- port of the facts shall be made to the Commissioner. With his approval the building or that portion thereof which is within the United States shall be taken down or removed. The provisions of subpart B of part 162, of this chapter shall be applicable to the search of any such building.
[T.D. 70–121, 35 FR 8215, May 26, 1970, as amended by T.D. 72–211, 37 FR 16487, Aug. 15, 1972. Redesignated by T.D. 99–2, 64 FR 31, Jan. 4, 1999]
§ 123.82 Treatment of stolen vehicles returned from Mexico.
Port directors shall admit without entry and payment of duty allegedly stolen or embezzled vehicles, trailers, airplanes, or component parts of any of them, under the provisions of The Con- vention between the United States of America and the United Mexican States for the Recovery and Return of Stolen or Embezzled Vehicles and Air- craft (Treaties and Other International Acts Series [TIAS] 10653), of June 28, 1983, if accompanied by a letter from the U.S. Embassy in Mexico City con- taining:
(a) A statement that the Embassy is satisfied from information furnished it that the property is stolen property being returned to the U.S. under the provisions of the convention between
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19 CFR Ch. I (4–1–12 Edition)§ 123.91
the U.S. and Mexico concluded January 15, 1981, and
(b) An adequate description of the property for identification purposes.
[T.D. 86–118, 51 FR 22515, June 20, 1986. Redes- ignated by T.D. 99–2, 64 FR 31, Jan. 4, 1999]
Subpart J—Advance Information for Cargo Arriving by Rail or Truck
SOURCE: CBP Dec. 03–32, 68 FR 68173, Dec. 5, 2003, unless otherwise noted.
§ 123.91 Electronic information for rail cargo required in advance of ar- rival.
(a) General requirement. Pursuant to section 343(a), Trade Act of 2002, as amended (19 U.S.C. 2071 note), for any train requiring a train sheet under § 123.6, that will have commercial cargo aboard, Customs and Border Protection (CBP) must electronically receive from the rail carrier certain information concerning the incoming cargo, as enu- merated in paragraph (d) of this sec- tion, no later than 2 hours prior to the cargo reaching the first port of arrival in the United States. Specifically, to effect the advance electronic trans- mission of the required rail cargo infor- mation to CBP, the rail carrier must use a CBP-approved electronic data interchange system.
(1) Through cargo in transit to a foreign country. Cargo arriving by train for transportation in transit across the United States from one foreign country to another; and cargo arriving by train for transportation through the United States from point to point in the same foreign country are subject to the ad- vance electronic information filing re- quirement for incoming cargo under paragraph (a) of this section.
(2) Cargo under bond. Cargo that is to be unladed from the arriving train and entered, in bond, for exportation, or for transportation and exportation, in an- other vehicle or conveyance is also sub- ject to the advance electronic informa- tion filing requirement under para- graph (a) of this section.
(b) Exception; cargo in transit from point to point in the United States. Do- mestic cargo transported by train to one port from another in the United States by way of Canada or Mexico is not subject to the advance electronic
information filing requirement for in- coming cargo under paragraph (a) of this section.
(c) Incoming rail carrier—(1) Receipt of data; acceptance of cargo. As a pre-req- uisite to accepting the cargo, the car- rier must receive, from the foreign shipper and owner of the cargo or from a freight forwarder, as applicable, any necessary cargo shipment information, as listed in paragraph (d) of this sec- tion, for electronic transmission to CBP.
(2) Accuracy of information received by rail carrier. Where the rail carrier elec- tronically presenting the cargo infor- mation required in paragraph (d) of this section receives any of this infor- mation from another party, CBP will take into consideration how, in accord- ance with ordinary commercial prac- tices, the rail carrier acquired such in- formation, and whether and how the carrier is able to verify this informa- tion. Where the rail carrier is not rea- sonably able to verify such informa- tion, CBP will permit the carrier to electronically present the information on the basis of what the carrier reason- ably believes to be true.
(d) Cargo information required. The rail carrier must electronically trans- mit to CBP the following information for all required incoming cargo that will arrive in the United States by train:
(1) The rail carrier identification SCAC code (the unique Standard Car- rier Alpha Code assigned for each car- rier by the National Motor Freight Traffic Association; see § 4.7a(c)(2)(iii) of this chapter);
(2) The carrier-assigned conveyance name, equipment number and trip number;
(3) The scheduled date and time of ar- rival of the train at the first port of entry in the United States;
(4) The numbers and quantities of the cargo laden aboard the train as con- tained in the carrier’s bill of lading, ei- ther master or house, as applicable (this means the quantity of the lowest external packaging unit; containers and pallets do not constitute accept- able information; for example, a con- tainer holding 10 pallets with 200 car- tons should be described as 200 car- tons);
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(5) A precise cargo description (or the Harmonized Tariff Schedule (HTS) number(s) to the 6-digit level under which the cargo is classified if that in- formation is received from the shipper) and weight of the cargo; or, for a sealed container, the shipper’s declared de- scription and weight of the cargo (ge- neric descriptions, specifically those such as ‘‘FAK’’ (‘‘freight of all kinds’’), ‘‘general cargo,’’ and ‘‘STC’’ (‘‘said to contain’’) are not acceptable);
(6) The shipper’s complete name and address, or identification number, from the bill(s) of lading (for each house bill in a consolidated shipment, the iden- tity of the foreign vendor, supplier, manufacturer, or other similar party is acceptable (and the address of the for- eign vendor, etc., must be a foreign ad- dress); by contrast, the identity of the carrier, freight forwarder, consolidator, or broker, is not acceptable; the identi- fication number will be a unique num- ber to be assigned by CBP upon the im- plementation of the Automated Com- mercial Environment);
(7) The complete name and address of the consignee, or identification num- ber, from the bill(s) of lading (The con- signee is the party to whom the cargo will be delivered in the United States. However, in the case of cargo shipped ‘‘to order of [a named party],’’ the car- rier must identify this named ‘‘to order’’ party as the consignee; and, if there is any other commercial party listed in the bill of lading for delivery or contact purposes, the carrier must also report this other commercial par- ty’s identity and contact information (address) in the ‘‘Notify Party’’ field of the advance electronic data trans- mission to CBP, to the extent that the CBP-approved electronic data inter- change system is capable of receiving this data. The identification number will be a unique number assigned by CBP upon implementation of the Auto- mated Commercial Environment);
(8) The place where the rail carrier takes possession of the cargo shipment;
(9) Internationally recognized haz- ardous material code when such mate- rials are being shipped by rail;
(10) Container numbers (for contain- erized shipments) or the rail car num- bers; and
(11) The seal numbers for all seals af- fixed to containers and/or rail cars to the extent that CBP’s data system can accept this information (for example, if a container has more than two seals, and only two seal numbers can be ac- cepted through the system per con- tainer, the carrier’s electronic presen- tation of two of these seal numbers for the container would be considered as constituting full compliance with this data element).
[CBP Dec. 03–32, 68 FR 68173, Dec. 5, 2003, as amended at CBP Dec. 09–39, 74 FR 52677, Oct. 14, 2009]
§ 123.92 Electronic information for truck cargo required in advance of arrival.
(a) General requirement. Pursuant to section 343(a) of the Trade Act of 2002, as amended (19 U.S.C. 2071 note), for any truck required to report its arrival under § 123.1(b), that will have commer- cial cargo aboard, Customs and Border Protection (CBP) must electronically receive from the party described in paragraph (c) of this section certain in- formation concerning the cargo, as enumerated in paragraph (d) of this section. The CBP must receive such cargo information by means of a CBP- approved electronic data interchange system no later than either 30 minutes or 1 hour prior to the carrier’s reaching the first port of arrival in the United States, or such lesser time as author- ized, based upon the CBP-approved sys- tem employed to present the informa- tion.
(1) Through cargo in transit to a foreign country. Cargo arriving by truck in transit through the United States from one foreign country to another (§ 123.31(a)); and cargo arriving by truck for transportation through the United States from one point to another in the same foreign country (§ 123.31(b); § 123.42) are subject to the advance elec- tronic information filing requirement in paragraph (a) of this section.
(2) Cargo entered under bond. Cargo that is to be unladed from the arriving truck and entered, in bond, for expor- tation, or for transportation and expor- tation, in another vehicle or convey- ance are also subject to the advance electronic information filing require- ment in paragraph (a) of this section.
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19 CFR Ch. I (4–1–12 Edition)§ 123.92
(b) Exceptions from advance reporting requirements—(1) Cargo in transit from point to point in the United States. Do- mestic cargo transported by truck and arriving at one port from another in the United States after transiting Can- ada or Mexico (§ 123.21; § 123.41) is ex- empt from the advance electronic fil- ing requirement for incoming cargo under paragraph (a) of this section.
(2) Certain informal entries. The fol- lowing merchandise is exempt from the advance cargo information reporting requirements under paragraph (a) of this section, to the extent that such merchandise qualifies for informal entry pursuant to part 143, subpart C, of this chapter:
(i) Merchandise which may be infor- mally entered on Customs Form (CF) 368 or 368A (cash collection or receipt);
(ii) Merchandise unconditionally or conditionally free, not exceeding $2,000 in value, eligible for entry on CF 7523; and
(iii) Products of the United States being returned, for which entry is pre- scribed on CF 3311.
(c) Carrier; and importer or broker—(1) Single party presentation. Except as pro- vided in paragraph (c)(2) of this sec- tion, the incoming truck carrier must present all required information to CBP in the time and manner prescribed in paragraph (a) of this section.
(2) Dual party presentation. The United States importer, or its Customs broker, may elect to present to CBP a portion of the required information that it possesses in relation to the cargo. Where the broker, or the im- porter (see § 113.62(k)(2) of this chap- ter), elects to submit such data, the carrier is responsible for presenting to CBP the remainder of the information specified in paragraph (d) of this sec- tion.
(3) Party receiving information believed to be accurate. Where the party elec- tronically presenting the cargo infor- mation required in paragraph (d) of this section receives any of this infor- mation from another party, CBP will take into consideration how, in accord- ance with ordinary commercial prac- tices, the presenting party acquired such information, and whether and how the presenting party is able to verify this information. Where the presenting
party is not reasonably able to verify such information, CBP will permit the party to electronically present the in- formation on the basis of what the party reasonably believes to be true.
(d) Cargo information required. The following commodity and transpor- tation information, as applicable, must be electronically transmitted to and received by CBP for all required incom- ing cargo arriving in the United States by truck, to the extent that the par- ticular CBP-approved electronic data interchange system employed can ac- cept this information:
(1) Conveyance number, and (if appli- cable) equipment number (the number of the conveyance is its Vehicle Identi- fication Number (VIN) or its license plate number and state of issuance; the equipment number, if applicable, refers to the identification number of any trailing equipment or container at- tached to the power unit);
(2) Carrier identification (this is the truck carrier identification SCAC code (the unique Standard Carrier Alpha Code) assigned for each carrier by the National Motor Freight Traffic Asso- ciation; see § 4.7a(c)(2)(iii) of this chap- ter);
(3) Trip number and, if applicable, the transportation reference number for each shipment (the transportation reference number is the freight bill number, or Pro Number, if such a num- ber has been generated by the carrier);
(4) Container number(s) (for any con- tainerized shipment) (if different from the equipment number), and the seal numbers for all seals affixed to the equipment or container(s);
(5) The foreign location where the truck carrier takes possession of the cargo destined for the United States;
(6) The scheduled date and time of ar- rival of the truck at the first port of entry in the United States;
(7) The numbers and quantities for the cargo laden aboard the truck as contained in the bill(s) of lading (this means the quantity of the lowest exter- nal packaging unit; containers and pal- lets do not constitute acceptable infor- mation; for example, a container hold- ing 10 pallets with 200 cartons should be described as 200 cartons);
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(8) The weight of the cargo, or, for a sealed container, the shipper’s declared weight of the cargo;
(9) A precise description of the cargo or the Harmonized Tariff Schedule (HTS) numbers to the 6-digit level under which the cargo will be classified (generic descriptions, specifically those such as FAK (‘‘freight of all kinds’’), ‘‘general cargo,’’ and ‘‘STC’’ (‘‘said to contain’’) are not acceptable);
(10) Internationally recognized haz- ardous material code when such cargo is being shipped by truck;
(11) The shipper’s complete name and address, or identification number, from the bill(s) of lading (for each house bill in a consolidated shipment, the iden- tity of the foreign vendor, supplier, manufacturer, or other similar party is acceptable (and the address of the for- eign vendor, etc., must be a foreign ad- dress); by contrast, the identity of the carrier, freight forwarder, consolidator, or broker, is not acceptable; the identi- fication number will be a unique num- ber to be assigned by CBP upon the im- plementation of the Automated Com- mercial Environment); and
(12) The complete name and address of the consignee, or identification number, from the bill(s) of lading (the consignee is the party to whom the cargo will be delivered in the United States, with the exception of ‘‘FROB’’ (Foreign Cargo Remaining On Board); the identification number will be a unique number assigned by CBP upon implementation of the Automated Commercial Environment).
[CBP Dec. 03–32, 68 FR 68173, Dec. 5, 2003, as amended at CBP Dec. 08–46, 73 FR 71782, Nov. 25, 2008; CBP Dec. 09–39, 74 FR 52677, Oct. 14, 2009]
PART 125—CARTAGE AND LIGHTERAGE OF MERCHANDISE
Sec. 125.0 Scope.
Subpart A—General Provisions
125.1 Classes of cartage. 125.2 Supervision of cartage and lighterage. 125.3 Contracts for Government cartage.
Subpart B—Cartage of Packages for Examination
125.11 Cartage for examination in public stores.
125.12 Cartage for examination at import- ers’ premises or other place.
125.13 Cartage of merchandise withdrawn from general order for regular entry.
125.14 Cartage of unclaimed merchandise.
Subpart C—Importers’ Cartage
125.21 Cartage other than for examination. 125.22 Designation of cartman or
lighterman, or other bonded carrier. 125.23 Failure to designate. 125.24 Failure of designated cartman,
lighterman or other bonded carrier to ap- pear.
Subpart D—Delivery and Receipt
125.31 Documents used. 125.32 Merchandise delivered to a bonded
store or bonded warehouse. 125.33 Procedure on receiving merchandise. 125.34 Countersigning of documents and no-
tation of bad order or discrepancy. 125.35 Report of loss, detention, or accident. 125.36 Inability to deliver merchandise.
Subpart E—Liability
125.41 Liability for cartage. 125.42 Cancellation of liability.
AUTHORITY: 19 U.S.C. 66, 1565, and 1624. Section 125.31, also issued under 5 U.S.C.
301; 19 U.S.C. 1311, 1312, 1484, 1555, 1556, 1557, 1623, and 1646a.
Section 125.32 also issued under 5 U.S.C. 301; 19 U.S.C. 1484.
Section 125.33 also issued under 19 U.S.C. 1311, 1312, 1555, 1556, 1557, 1623, and 1646a.
Sections 125.41 and 125.42 also issued under 19 U.S.C. 1623.
SOURCE: T.D. 73–140, 38 FR 13554, May 23, 1973, unless otherwise noted.
§ 125.0 Scope.
This part is concerned with cartage and lighterage of merchandise and the duties and liabilities of cartmen and lightermen, as well as those parties au- thorized in § 112.2(b) to engage in cart- age. Provisions for licensing cartmen and lightermen are in part 112 of this chapter.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
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19 CFR Ch. I (4–1–12 Edition)§ 125.1
Subpart A—General Provisions
§ 125.1 Classes of cartage.
(a) Government cartage. Government cartage must be done by a licensed cus- tomhouse cartman or other bonded car- rier as provided in § 112.2 of this chap- ter under contract or other specific au- thority for that purpose (except as pro- vided for in § 125.12). All government cartage must be contracted for using the procedures specified in § 125.3.
(b) Importers’ cartage. Importers’ cart- age may be done by any licensed cus- tomhouse cartman or other bonded car- rier as provided in § 112.2 of this chap- ter.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 125.2 Supervision of cartage and lighterage.
All licensed vehicles or lighters shall be subject to the control and direction of the officer having charge of the mer- chandise being carried.
§ 125.3 Contracts for Government cart- age.
Contracts for Government cartage shall be procured by formally adver- tised solicitation for bids and award of contract or by negotiation in accord- ance with the appropriate provisions of the Federal Procurement Regulations, as supplemented by the special pro- curement requirements of the U.S. Cus- toms Service.
Subpart B—Cartage of Packages for Examination
§ 125.11 Cartage for examination in public stores.
(a) Government cartage. The cartage of merchandise in Customs custody des- ignated for examination at the public stores shall be done by a licensed cus- tomhouse cartman or a bonded carrier under contract or other specific au- thority for that purpose.
(b) Where there is no contract for Gov- ernment cartage. At ports where there is no contract for Government cartage in effect, the cartage of packages des- ignated for examination at the public stores shall be done by a licensed cus- tomhouse cartman or a bonded carrier
designated by the port director for this purpose.
(c) Payment for Government cartmen. The cost of the cartage shall be paid by Customs.
[T.D. 73–140, 38 FR 13554, May 23, 1973, as amended by T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 125.12 Cartage for examination at im- porters’ premises or other place.
Merchandise designated for examina- tion at an importer’s premises or other place not in the charge of a Customs officer may be carted, lightered, or car- ried to any such place by the importer without a cartman’s or lighterman’s li- cense, when in the judgment of the port director the revenue will not be endangered. Otherwise, such transfer shall be done by a licensed cartman, who shall be the contract cartman whenever practicable.
§ 125.13 Cartage of merchandise with- drawn from general order for reg- ular entry.
When merchandise withdrawn from general order for regular entry is to be conveyed to a place designated by the port director for examination, the cart- age shall be at the expense of the im- porter and shall be under the cartage arangements established at the port for hauling examination packages under the provisions of § 125.11(a) and (b). Re- imbursement of the cost of the cartage shall be collected from the importer prior to release of the merchandise from Customs custody.
§ 125.14 Cartage of unclaimed mer- chandise.
Unclaimed merchandise shall be cart- ed to the public stores or a bonded warehouse designated by the port di- rector under the cartage arrangements established at the port for hauling ex- amination packages under the provi- sions of § 125.11. Reimbursement of the cost of the cartage shall be collected from the importer prior to release if entry is made or from the proceeds of sale of the merchandise.
[T.D. 73–140, 38 FR 13554, May 23, 1973, as amended by T.D. 78–151, 43 FR 23566, May 31, 1978]
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U.S. Customs and Border Protection, DHS; Treasury § 125.31
Subpart C—Importers’ Cartage
§ 125.21 Cartage other than for exam- ination.
Any licensed customhouse cartman, including an importer licensed to cart his own imported merchandise and a bonded carrier provided for in § 112.2 of this chapter, at the expense of the im- porter or other party in interest, may transfer merchandise from the import- ing vessel or other conveyance to a bonded warehouse, from one vessel or conveyance to another, from one bond- ed warehouse to another, from the pub- lic stores to a bonded warehouse, from warehouse for transportation or for ex- portation, and from an internal rev- enue warehouse for exportation under the internal revenue laws without pay- ment of tax. Foreign trade zone opera- tors, bonded warehouse proprietors, container station operators and cen- tralized examination station operators may engage in limited cartage or light- erage under the conditions specified in § 112.2 of this chapter. Nothing in this section shall apply to the cartage of ex- amination packages to the place of ex- amination.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 125.22 Designation of cartman or lighterman, or other bonded car- rier.
Importers and exporters shall des- ignate on the entry and permit of bond- ed merchandise the bonded cartman, lighterman, or other bonded carrier as provided in § 112.2 of this chapter by whom they wish their merchandise to be conveyed. An importer also may designate a foreign trade zone oper- ator, bonded warehouse proprietor, container station operator or central- ized examination station operator under the conditions specified in § 112.2 of this chapter for limited cartage; if he does so, the importer must also des- ignate that the merchandise is bound for the facility run by the operator he designates. Approval of a designation shall be indicated on the entry papers by the initials of the appropriate Cus- toms officer placed in close proximity to the designation.
[T.D. 94–81, 59 FR 51495, Oct. 12, 1994]
§ 125.23 Failure to designate. If an importer does not cart his mer-
chandise or designate a licensed cus- tomhouse cartman, other bonded car- rier, foreign trade zone operator, bond- ed warehouse proprietor, container sta- tion operator or centralized examina- tion station operator, as provided for in § 112.2 of this chapter, for the pur- pose, it shall be carted by a bonded car- rier or by a public store cartman au- thorized by contract or designated by the port director for that purpose. The cost of such cartage shall be paid by the importer of the merchandise before its release from Customs custody.
[T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.24 Failure of designated cartman, lighterman or other bonded carrier to appear.
The cartman, lighterman, other bonded carrier, foreign trade zone oper- ator, bonded warehouse proprietor, container station operator or central- ized examination station operator des- ignated to convey the merchandise shall be present to take the merchan- dise when the Customs officer in charge is ready to send it. If the des- ignated vehicle or lighter is not present, after waiting a reasonable time, such officer shall send the mer- chandise by any available licensed cartman, lighterman, or qualifying bonded carrier.
[T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
Subpart D—Delivery and Receipt
§ 125.31 Documents used. When merchandise is carted or
lightered to and received from a bond- ed store or bonded warehouse, it shall be accompanied by one of the following tickets or documents:
(a) Customs Form 6043—Delivery Ticket.
(b) Customs Form 7501, Entry Sum- mary, annotated ‘‘Permit’’.
(c) Customs Form 7512—Transpor- tation Entry and Manifest of Goods Subject to Customs Inspection and Per- mit.
[T.D. 82–204, 47 FR 49375, Nov. 1, 1982, as amended by T.D. 84–129, 49 FR 23167, June 5, 1984; T.D. 95–81, 60 FR 52295, Oct. 6, 1995]
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§ 125.32 Merchandise delivered to a bonded store or bonded warehouse.
When merchandise is carried, carted or lightered to and received in a bonded store or bonded warehouse, the propri- etor or his representative shall check the goods against the accompanying delivery ticket, Customs Form 6043, or copy of the permit, Customs Form 7501, and countersign the document ac- knowledging receipt of the merchan- dise as listed thereon. If the proprietor or his agent has been designated to carry the merchandise to his own bond- ed warehouse, he shall check the goods against the accompanying delivery ticket, Customs Form 6043, or copy of the permit, Customs Form 7501, at the time he picks up the cargo. Receipt of merchandise by a bonded warehouse proprietor for the purpose of transpor- tation to his own warehouse con- stitutes receipt into a bonded ware- house.
[T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.33 Procedure on receiving mer- chandise.
(a) From public or bonded store. A re- ceipt shall be taken from the cartman, lighterman or bonded carrier for all goods delivered to him from public store or bonded store. The receipt may be taken on Customs Form 6043, or on the appraising officer’s release ticket at the time delivery is made.
(b) From bonded warehouse. In case of withdrawals from bonded warehouse, the merchandise shall be released only to the proprietor of the warehouse, who shall acknowledge such release on the appropriate withdrawal or removal document.
(c) All other cases. A receipt shall be taken for all goods delivered from Cus- toms custody in any other case where the port director deems such receipt necessary.
[T.D. 73–140, 38 FR 13554, May 23, 1973, as amended by T.D. 82–204, 47 FR 49375, Nov. 1, 1982; T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.34 Countersigning of documents and notation of bad order or dis- crepancy.
When a cartman, lighterman, other bonded carrier, foreign trade zone oper- ator, bonded warehouse proprietor,
container station operator or central- ized examination station operator, as provided for in § 112.2, receives mer- chandise remaining in Customs cus- tody, he shall countersign the appro- priate document in the space provided and shall note thereon any bad order or discrepancy. When available, the im- porting carrier’s tally slip for the mer- chandise shall be attached to the deliv- ery ticket which accompanies the mer- chandise while it is being carted or lightered in bond, for the use of Cus- toms officers only at destination.
[T.D. 73–140, 38 FR 13554, May 23, 1973, as amended by T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.35 Report of loss, detention, or accident.
Any loss or detention of bonded mer- chandise, or any accident happening to a vehicle or lighter while carrying bonded merchandise shall be imme- diately reported by the cartman, lighterman, qualified bonded carrier, foreign trade zone operator, bonded warehouse proprietor, container sta- tion operator or centralized examina- tion station operator to the port direc- tor.
[T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.36 Inability to deliver merchan- dise.
If the warehouse is closed or the warehouseman refuses to receive the merchandise, the cartman or bonded carrier shall notify the appropriate Customs inspector. The inspector shall promptly report the facts to the port director or his delegated representative for instructions. The merchandise shall then be returned to the Customs in- spector, deposited in the public stores for safekeeping, or handled as ordered by the port director.
[T.D. 73–140, 38 FR 13554, May 23, 1973, as amended by T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
Subpart E—Liability § 125.41 Liability for cartage.
(a) Liability of cartman, lighterman or bonded carrier. The cartman, lighterman, or bonded carrier con- veying the merchandise, including
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merchandise covered by a TIR carnet which has not been ‘‘taken on charge’’ (see § 114.22(c)(2) of this chapter), shall be liable under his bond for its prompt delivery in sound condition, or in no worse than the damaged condition noted on the delivery ticket, if damage is so noted.
(b) Liability of foreign trade zone oper- ator, bonded warehouse proprietor, con- tainer station operator or centralized ex- amination station operator. A foreign trade zone operator, bonded warehouse proprietor, container station operator or centralized examination station op- erator who picks up merchandise in- cluding merchandise covered by a TIR carnet which has not been ‘‘taken on charge’’, to transport the merchandise to his own facility shall be liable under his bond for the merchandise as soon as he collects the merchandise. The mer- chandise must be receipted as soon as it is picked up and must be delivered to either the respective foreign trade zone, bonded warehouse, container sta- tion or centralized examination station promptly after it is picked up in sound condition, or in no worse than the dam- aged condition noted on the delivery ticket, if damage is noted.
[T.D. 94–81, 59 FR 51496, Oct. 12, 1994]
§ 125.42 Cancellation of liability.
The Fines, Penalties, and Forfeitures Officer, in accordance with delegated authority, may cancel liquidated dam- ages incurred under the bond of the for- eign trade zone operator, containing the bond conditions set forth in § 113.73 of this chapter, or under the bond of the cartman, lighterman, bonded car- rier, bonded warehouse operator, con- tainer station operator or centralized examination station operator on Cus- toms Form 301, containing the bond conditions set forth in § 113.63 of this chapter, upon the payment of such lesser amount, or without the payment of any amount, as the Fines, Penalties, and Forfeitures Officer may deem ap- propriate under the circumstances. Ap- plication for cancellation of liquidated damages incurred shall be made in ac- cordance with the provisions of part 172 of this chapter.
[T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
PART 127—GENERAL ORDER, UN- CLAIMED, AND ABANDONED MERCHANDISE
Sec. 127.0 Scope.
Subpart A—General Order Merchandise
127.1 Merchandise considered general order merchandise.
127.2 Withdrawal from general order for entry or exportation.
127.4 General order period defined.
Subpart B—Unclaimed and Abandoned Merchandise
127.11 Unclaimed merchandise. 127.12 Abandoned merchandise. 127.13 Storage of unclaimed and abandoned
merchandise. 127.14 Disposition of merchandise in Cus-
toms custody beyond time fixed by law.
Subpart C—Sale of Unclaimed and Abandoned Merchandise
127.21 Time of sale. 127.22 Place of sale. 127.23 Appraisement of merchandise. 127.24 Notice of sale. 127.25 Advertisement of sale. 127.26 Catalogs. 127.27 Conduct of sale. 127.28 Special merchandise. 127.29 Unsold merchandise.
Subpart D—Proceeds of Sale
127.31 Disposition of proceeds. 127.32 Expenses of cartage, storage, and
labor. 127.33 Chargeable duties. 127.34 Auctioneer’s commissions. 127.35 Presentation of accounts. 127.36 Claim for surplus proceeds of sale. 127.37 Insufficient proceeds.
Subpart E—Title to Unclaimed and Aban- doned Merchandise Vesting in Gov- ernment
127.41 Government title to unclaimed and abandoned merchandise.
127.42 Disposition of merchandise owned by Government.
127.43 Petition of party for surplus proceeds had merchandise been sold.
AUTHORITY: 19 U.S.C. 66, 1311, 1312, 1484, 1485, 1490, 1491, 1492, 1493, 1506, 1559, 1563, 1623, 1624, 1646a; 26 U.S.C. 5753.
Section 127.12 also issued under 19 U.S.C. 1753;
Section 127.14 also issued under 19 U.S.C. 1555, 1556, 1557;
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19 CFR Ch. I (4–1–12 Edition)§ 127.0
Section 127.21 also issued under 19 U.S.C. 1753;
Section 127.28 also issued under 15 U.S.C. 2612, 26 U.S.C. 5688;
Sections 127.31, 127.36, 127.37 also issued under 19 U.S.C. 1753.
SOURCE: T.D. 74–114, 39 FR 12092, Apr. 3, 1974, unless otherwise noted.
§ 127.0 Scope.
This part sets forth regulations per- taining to general order merchandise, unclaimed merchandise, and abandoned merchandise, the storage and sale thereof, and the distribution of the pro- ceeds from the sale thereof. Regula- tions regarding the abandonment of merchandise by the importer to the Government in accordance with section 506(1), Tariff Act of 1930, as amended (19 U.S.C. 1506(1)), appear in part 158 of this chapter.
Subpart A—General Order Merchandise
§ 127.1 Merchandise considered gen- eral order merchandise.
Merchandise shall be considered gen- eral order merchandise when it is taken into the custody of the port di- rector and deposited in the public stores or a general order warehouse at the risk and expense of the consignee for any of the following reasons:
(a) Whenever entry of any imported merchandise is not made within the time provided by law or regulations prescribed by the Secretary of the Treasury.
(b) Whenever entry is incomplete be- cause of failure to pay estimated du- ties.
(c) Whenever, in the opinion of the port director, entry cannot be made for want of proper documents or other causes.
(d) Whenever the port director be- lieves that any merchandise is not cor- rectly or legally invoiced.
(e) Whenever, at the request of the consignee or the owner or master of the vessel or person in charge of the ve- hicle in which merchandise is im- ported, any merchandise is taken pos- session of by the port director after the expiration of 1 day after entry of the vessel or report of the vehicle.
§ 127.2 Withdrawal from general order for entry or exportation.
(a) Exportation within 6 months from date of importation. Merchandise in gen- eral order may be exported without ex- amination or appraisement if the mer- chandise is delivered to the exporting carrier within 6 months from the date of importation. This merchandise may be entered within 6 months from date of importation for immediate transpor- tation to any port of entry designated by the consignee.
(b) After expiration of 6 months from date of importation. Entry for imme- diate transportation shall be permitted after the expiration of the 6-month pe- riod only for the purpose of filing an entry for consumption at the port of destination.
(c) Withdrawal of less than single gen- eral order lot. The withdrawal from gen- eral order of less than a single general order lot shall not be permitted except as provided for in § 141.52 of this chap- ter.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 98–74, 63 FR 51290, Sept. 25, 1998]
§ 127.4 General order period defined.
The general order period is that pe- riod of time during which general order merchandise, as defined in § 127.1, is not subject to sale. The general order pe- riod expires 6 months from the date of importation.
[T.D. 79–221, 44 FR 46814, Aug. 9, 1979, as amended by T.D. 98–74, 63 FR 51290, Sept. 25, 1998]
Subpart B—Unclaimed and Abandoned Merchandise
§ 127.11 Unclaimed merchandise.
Any entered or unentered merchan- dise (except merchandise under section 557, Tariff Act of 1930, as amended (19 U.S.C. 1557), but including merchandise entered for transportation in bond or for exportation) which remains in Cus- toms custody for 6 months from the date of importation or a lesser period for special merchandise as provided by § 127.28 (c), (d), and (h), and without all estimated duties and storage or other
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charges having been paid, shall be con- sidered unclaimed and abandoned.
[T.D. 79–221, 44 FR 46814, Aug. 9, 1979, as amended by T.D. 98–74, 63 FR 51290, Sept. 25, 1998]
§ 127.12 Abandoned merchandise.
(a) Involuntarily abandoned merchan- dise. The following shall be considered to be involuntarily abandoned mer- chandise:
(1) Articles entered for a trade fair under the provisions of section 3 of the Trade Fair Act of 1959 (19 U.S.C. 1752), which are still in Customs custody at the expiration of 3 months after the closing date of the fair for which they were entered. (See § 147.47 of this chap- ter.)
(2) Any imported merchandise upon which any duties or charges are un- paid, remaining in a bonded warehouse beyond the 5-year warehouse period.
(b) Voluntarily abandoned merchan- dise. The following merchandise shall be considered to be voluntarily aban- doned merchandise and the property of the United States Government:
(1) Merchandise which is taken pos- session of by the port director at the request of the consignee, or owner or master of the vessel or person in charge of the vehicle in which the mer- chandise was imported.
(2) Merchandise abandoned by the im- porter to the United States within 30 days after entry in the case of mer- chandise not sent to the public stores for examination, or within 30 days after the release of the examination packages or merchandise in the case of merchandise sent to the public stores for examination.
(3) Articles entered for a trade fair under the provisions of section 3 of the Trade Fair Act of 1959 (19 U.S.C. 1752), which have been abandoned to the United States within 3 months of the closing of the fair.
(4) Merchandise in a bonded ware- house abandoned by the consignee within 3 years from the date of original importation. (See subpart D of part 158 of this chapter.)
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 79–221, 44 FR 46814, Aug. 9, 1979]
§ 127.13 Storage of unclaimed and abandoned merchandise.
(a) Place of storage. A class 11 bonded warehouse or warehouse of class 3, 4, or 5, certified by the port director as qualified to receive general order mer- chandise, will be responsible for the transportation and storage of un- claimed and abandoned merchandise, upon due notification to the proprietor of the warehouse by the arriving car- rier (or other party to whom the car- rier has transferred the merchandise under a Customs-authorized permit to transfer or in-bond entry), as provided in §§ 4.37(c), 122.50(c), and 123.10(c) of this chapter. If no warehouse of these classes is available to receive general order merchandise, or if the merchan- dise requires specialized storage facili- ties which are unavailable in a bonded facility, the port director, after having received notice of the presence of unentered merchandise or baggage in accordance with the provisions of this section, will direct the storage of the merchandise by the carrier or by any other appropriate means.
(b) Payment of storage and expenses. Storage at the ordinary rates and all other expenses shall be paid by the owner or consignee of the merchandise upon entry thereof. If the goods are sold, such charges shall be paid from the proceeds of the sale to the extent that proceeds are available.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 02–65, 67 FR 68034, Nov. 8, 2002]
§ 127.14 Disposition of merchandise in Customs custody beyond time fixed by law.
(a) Merchandise subject to sale or other disposition—(1) General. If storage or other charges due the United States have not been paid on merchandise re- maining in Customs custody after the expiration of the bond period in the case of merchandise entered for ware- house, or after the expiration of the general order period, as defined in § 127.4, in any other case, even though any duties due have been paid, such merchandise will be sold as provided in subpart C of this part, retained for offi- cial use as provided in subpart E of this part, destroyed, or otherwise disposed of as authorized by the Commissioner
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of Customs under the law, unless the merchandise is entered or withdrawn for consumption in accordance with paragraph (b) of this section.
(2) Destruction of merchandise—(i) Pro- prietor responsibility. If the port director concludes that merchandise in general order has no commercial value or is otherwise unsalable and cannot be dis- posed of at public auction (see § 127.29), and that its destruction is warranted, the warehouse proprietor must assume responsibility under bond, including the expense, for destroying the mer- chandise (see § 113.63(c)(3) of this chap- ter). The port director will authorize such destruction on Customs Form (CF) 3499, or on a similar Customs doc- ument as designated by the port direc- tor or an electronic equivalent as au- thorized by Customs.
(ii) Notice of destruction. Before de- stroying the merchandise, the ware- house proprietor must first make a rea- sonable effort under bond (see § 113.63(b) and (c) of this chapter), to identify and inform the importer (owner) or con- signee regarding the intended destruc- tion of the merchandise. When the ap- propriate party is identified, notice of destruction will be provided to the party on Customs Form (CF) 5251, ap- propriately modified, or other similar Customs document as designated by the port director or an electronic equivalent as authorized by Customs, at least 30 calendar days prior to the date of intended destruction.
(b) Entry of merchandise subject to sale. Merchandise subject to sale (except merchandise abandoned under section 506(1) or 563(b), Tariff Act of 1930, as amended (19 U.S.C. 1506(1), 1563(b))), may be entered or withdrawn for con- sumption at any time prior to the sale upon payment of the duties, any inter- nal revenue tax, and all charges and ex- penses that may have accrued thereon. Such merchandise may not be exported without payment of duty nor entered for warehouse.
(c) Release of merchandise to warehouse proprietor. The following merchandise for which a permit to release has been issued shall be held to be no longer in the custody of Customs officers and shall be released to the warehouse pro- prietor:
(1) Merchandise upon which all duties and charges have been paid.
(2) Free and duty-paid merchandise upon which all charges have been paid, not entered for warehouse which re- mains in bonded warehouse for more than the general order period.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 75–161, 40 FR 28790, July 9, 1975; T.D. 79–221, 44 FR 46814, Aug. 9, 1979; T.D. 82–204, 47 FR 49375, Nov. 1, 1982; T.D. 02– 65, 67 FR 68034, Nov. 8, 2002]
Subpart C—Sale of Unclaimed and Abandoned Merchandise
§ 127.21 Time of sale.
All unclaimed and abandoned mer- chandise will be sold at the first reg- ular sale held after the merchandise becomes subject to sale, unless a deferment of its sale is authorized by the port director. Regular sales shall be made once every year or more often at the discretion of the port director.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 02–65, 67 FR 68034, Nov. 8, 2002]
§ 127.22 Place of sale.
The port director, in his discretion, may authorize the sale of merchandise subject to sale (including explosives, perishable articles and articles liable to depreciation) at any port. The con- signee of any merchandise which is to be transferred from the port where it was imported to another port for sale, shall be notified of the transfer so that he may have the option of making entry of the merchandise before the transfer and sale.
[T.D. 95–77, 60 FR 50020, Sept. 27, 1995]
§ 127.23 Appraisement of merchandise.
Before unclaimed and abandoned merchandise is offered for sale, it shall be appraised in accordance with sec- tions 402 and 402a, Tariff Act of 1930, as amended (19 U.S.C. 1401a, 1402). Such merchandise shall also be appraised at its actual domestic value in its condi- tion at the time and place of examina- tion, whether or not it has depreciated or appreciated in value since the date of exportation. The quantity of mer- chandise in each lot shall be reported.
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§ 127.24 Notice of sale. Notice of sale shall be sent on Cus-
toms Form 5251, 30 days prior to the date of sale, or 30 days prior to the transfer of merchandise to the place of sale, to the following:
(a) Importer, if known; or (b) Consignee, if name and address
can be ascertained; or (c) Shipper, his representative or
agent, if merchandise is consigned to order or consignee cannot be ascertained; or
(d) Warehouse transferee; or (e) Lienholder.
§ 127.25 Advertisement of sale. (a) Regular advertising. Except as pre-
scribed in § 127.28 (c), (d), and (h), and in paragraph (b) of this section, a brief notice of the time and place of sale shall be given for three successive weeks, immediately preceding the sale, in one newspaper of extensive circula- tion published at the port where the sale is to be held. The newspaper is to be selected by the port director and publication of the notice shall be au- thorized on the standard form provided for that purpose. The notice shall des- ignate the place where catalogs may be obtained and a reasonable opportunity to inspect the merchandise shall be af- forded prospective purchasers.
(b) Where proceeds are insufficient to pay expenses and duties. If the port di- rector is satisfied that the proceeds of the sale will not be sufficient to pay the expenses and duties, a written or printed notice of the sale in lieu of the advertisement shall be conspicuously posted in the customhouse, and, if deemed necessary, at some other prop- er place for the time specified in para- graph (a) of this section.
§ 127.26 Catalogs. Catalogs, if used shall specify the de-
scription of packages, the description and quantities of their contents, the appraised value thereof, and also the domestic value at the time and place of the examination of the merchandise. They shall be distributed at the sale and announcement made that the Gov- ernment does not guarantee quality or value and that no allowance will be made for any deficiency found after sale.
§ 127.27 Conduct of sale. Sales may be conducted by the port
director, any employee designated by him or by a public auctioneer.
§ 127.28 Special merchandise. (a) Drugs, seeds, plants, nursery stock,
and other articles required to be inspected by the Department of Agriculture. Drugs, seeds, plants, nursery stock, and other articles required to be inspected by the Department of Agriculture must be in- spected by a representative of the De- partment of Agriculture to ascertain whether they comply with the require- ments of the law and regulations of that Department. If found not to com- ply with such requirements, they shall be immediately destroyed.
(b) Pesticides and devices. Pesticides and devices intended for trapping, de- stroying, repelling or mitigating any pest or any other form of plant or ani- mal life (other than man or other than bacteria, virus, or other microorganism on or in living man or other living ani- mals) shall be inspected by a represent- ative of the Environmental Protection Agency to ascertain whether they com- ply with the requirements of the law and regulations of that agency. If found not to comply with such require- ments, they shall be immediately de- stroyed.
(c) Explosives, dangerous articles, fruit, and perishables. Unclaimed explosives and other dangerous articles, and fruit and other perishable articles shall be sold after 3-days’ public notice. When it is probable that entry will be made at an early date for unclaimed perishable merchandise, the port director may hold the merchandise for a reasonable time in a bonded cold-storage ware- house if one is available.
(d) Articles liable to depreciation. Other unclaimed merchandise shall be sold at public auction upon public notice of not less than 6 or more than 10 days, as the port director may determine, if in his opinion such merchandise will de- preciate and sell for an amount insuffi- cient to pay the duties, storage, and other charges if allowed to remain in general order for 6 months.
(e) Tobacco and tobacco products. To- bacco articles and tobacco materials as defined in 26 U.S.C. 5702(j) and (k), may be sold for domestic consumption only
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if they will bring an amount sufficient to pay the expenses of sale as well as the internal revenue tax. If these arti- cles cannot be sold for domestic con- sumption in accordance with the fore- going conditions, they shall be de- stroyed unless they can be advan- tageously sold for export from contin- uous Customs custody or unless the Commissioner of Customs has author- ized other disposition to be made under the law. These articles may be sold for domestic consumption even though the proceeds of sale will not cover the du- ties due.
(f) Distilled spirits, wines, and malt bev- erages. All unclaimed and abandoned distilled spirits, wines, and malt bev- erages may be sold for domestic con- sumption if they will bring an amount sufficient to pay the internal revenue tax. If they cannot be sold for domestic consumption in accordance with the foregoing condition, they shall be de- stroyed unless they can be advan- tageously sold for export from contin- uous Customs custody or unless the Commissioner of Customs has author- ized other disposition to be made under the law. The sale must be conducted in accordance with the alcoholic beverage laws of the state in which the sale is held.
(g) Other merchandise subject to inter- nal revenue taxes. All other unclaimed and abandoned merchandise subject to internal revenue taxes may be sold for domestic consumption if it will bring an amount sufficient to pay the inter- nal revenue tax. If, in the opinion of the port director, it is insufficient in value to justify its sale, the merchan- dise shall be destroyed, unless it can be advantageously sold for export from continuous Customs custody or unless the Commissioner of Customs has au- thorized other disposition to be made under the law. These articles may be sold for domestic consumption even though the proceeds of sale will not cover the duties due.
(h) Unclaimed merchandise remaining on dock. Unclaimed merchandise re- maining on the dock which, in the opinion of the port director, will not sell for enough to pay the cost of cart- age and storage shall be sold at public auction upon public notice of not less than 6 or more than 10 days.
(i) Chemical substances, mixtures, and articles containing chemical substances or mixtures. Chemical substances, mix- tures, and articles containing a chem- ical substance or mixture, as these items are defined in section 3, Toxic Substances Control Act (‘‘TSCA’’) and section 12.120 of this chapter, shall be inspected by a representative of the Environmental Protection Agency to ascertain whether they comply with TSCA and the regulations and orders issued thereunder. If found not to com- ply with these requirements they shall be exported or otherwise disposed of immediately in accordance with the provisions of §§ 12.125 through 12.127 of this chapter.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 83–158, 48 FR 34740, Aug. 1, 1983; T.D. 98–74, 63 FR 51290, Sept. 25, 1998; T.D. 02–65, 67 FR 68034, Nov. 8, 2002]
§ 127.29 Unsold merchandise.
Merchandise offered for sale but not sold shall be included in the next reg- ular sale of unclaimed and abandoned merchandise. If the port director is sat- isfied that such merchandise is unsalable or of no commercial value, it shall be destroyed.
Subpart D—Proceeds of Sale
§ 127.31 Disposition of proceeds.
From the proceeds of sale of mer- chandise remaining in public stores or in bonded warehouse beyond the time fixed by law, the following charges shall be paid in the order named:
(a) Internal revenue taxes. (b) Expenses of advertising and sale. (c) Expenses of cartage, storage and
labor. When the proceeds are insuffi- cient to pay such charges fully, they shall be paid pro rata. (For merchan- dise entered for warehousing, see § 127.32 of this subpart.)
(d) Duties. (e) Any other charges due the United
States in connection with the mer- chandise.
(f) Any sum due to satisfy a lien for freight, charges, or contributions in general average, of which due notice shall have been given in the manner prescribed by law.
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§ 127.32 Expenses of cartage, storage, and labor.
The expenses of cartage, storage, and labor for merchandise entered for warehousing shall be paid in the fol- lowing order:
(a) When such merchandise was warehoused in public stores, expenses of storage and labor shall be paid after expenses of sale (pro-rated when pro- ceeds are insufficient to pay them fully) and any cartage charges shall be paid last.
(b) When such merchandise was warehoused in a bonded warehouse, ex- penses of storage, cartage, and labor shall be paid last (pro-rated when pro- ceeds are insufficient to pay them fully).
§ 127.33 Chargeable duties. The duties chargeable on any mer-
chandise within the purview of this subpart shall be assessed on the ap- praised dutiable value at the rate of duty chargeable at the time the mer- chandise became subject to sale. Household and personal effects of the character provided for in Chapter 98, Subchapter IV, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), which belong to persons who have not arrived in this country before the effects become subject to sale, are dutiable at the rates in effect when the effects become subject to sale, even though such persons arrive and make entry for the effects before they are sold.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 97–82, 62 FR 51770, Oct. 3, 1997]
§ 127.34 Auctioneer’s commissions. The duties of the auctioneer shall be
confined to selling the merchandise and his charge for such service shall in no case exceed the commissions usual at the port. Such commissions shall be based on the amount of the successful bid.
§ 127.35 Presentation of accounts. Accounts for the auctioneer’s charges
and all other expenses of sale which may be properly chargeable on the merchandise shall be presented to the port director for payment within 10
days from the date of sale. Such ex- penses shall be apportioned pro rata on the amounts received for different lots sold.
§ 127.36 Claim for surplus proceeds of sale.
(a) Filing of claim. Claims for the sur- plus proceeds of the sale of unclaimed or abandoned merchandise shall be filed with the port director at whose di- rection the merchandise was sold. The following shall be used in filing a claim:
(1) Unclaimed merchandise. Claims for surplus proceeds of the sale of un- claimed merchandise which has become abandoned and sold under section 491 of the Tariff Act of 1930, as amended (19 U.S.C. 1491), shall be supported by the original bill of lading. If only part of a shipment is involved, either a photo- static or certified copy of the original bill of lading may be submitted in lieu of the original bill of lading.
(2) Involuntarily abandoned merchan- dise—(i) Warehouse goods deemed aban- doned. Claims for surplus proceeds of sale of warehouse goods deemed invol- untarily abandoned sold under section 559 of the Tariff Act of 1930, as amended (19 U.S.C. 1559), shall be established by reference to the warehouse entry, or, if the right to withdraw the merchandise from warehouse has been transferred, by reference to the documents by which the transfer was made.
(ii) Trade fair articles deemed aban- doned. Claims for surplus proceeds of sale of trade fair articles deemed invol- untarily (mandatorily) abandoned under section 4 of the Trade Fair Act of 1959 (19 U.S.C. 1753(c)), shall be sup- ported by the original bill of lading. If only part of a shipment is involved, ei- ther a photostatic copy or certified copy of the original bill of lading may be submitted in lieu of the original bill of lading. (See § 147.47 of this chapter.)
(b) Payment of claim. If a claim of the owner or consignee of unclaimed or abandoned merchandise for the surplus proceeds of sale is properly established as provided in this section, such pro- ceeds of sale shall be paid to him pur- suant to section 493 of the Tariff Act of 1930, as amended (19 U.S.C. 1493).
(c) Doubtful claims. Any doubtful claims for the proceeds of sale along
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with all pertinent documents and infor- mation available to the port director shall be forwarded to the Commissioner of Customs for instructions or for re- ferral to the General Accounting Office for direct settlement.
§ 127.37 Insufficient proceeds. (a) Warehouse merchandise deemed in-
voluntarily abandoned. If the proceeds of sale of warehouse merchandise deemed involuntarily abandoned are insufficient to pay the duties after pay- ment of all charges having priority, the deficiency shall be collected under the bond for the importation and entry of merchandise on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter.
(b) Unclaimed merchandise and trade fair articles involuntarily abandoned. If the proceeds of sale of unclaimed mer- chandise or trade fair articles involun- tarily abandoned are insufficient to pay the charges and duties, the con- signee shall be liable for the deficiency unless the merchandise was shipped to him without his consent. If no entry for the merchandise has been filed, and no other attempt to control the mer- chandise has been made, the merchan- dise shall be regarded as shipped to the consignee without his consent and no effort shall be made to collect any defi- ciency of duties or charges from such consignee.
[T.D. 74–114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 84–213, 49 FR 41183, Oct. 19, 1984]
Subpart E—Title to Unclaimed and Abandoned Merchandise Vesting in Government
SOURCE: T.D. 02–65, 67 FR 68034, Nov. 8, 2002, unless otherwise noted.
§ 127.41 Government title to unclaimed and abandoned merchandise.
(a) Vesting of title in Government. At the end of the 6-month period noted in § 127.11 of this part, at which time mer- chandise having thus remained in Cus- toms custody is considered as un- claimed and abandoned, the port direc- tor, with the concurrence of the Assist- ant Commissioner, Office of Field Oper- ations, may, in lieu of sale of the mer-
chandise as provided in subpart C of this part, provide notice to all known interested parties under paragraph (b) of this section that the title to such merchandise will be considered as vest- ing in the United States, free and clear of any liens or encumbrances, as of the 30th day after the date of the notice unless, before the 30th day, the mer- chandise is entered or withdrawn for consumption and all duties, taxes, fees, transfer and storage charges, and any other expenses that may have accrued on the merchandise are paid.
(b) Notice to known interested parties. Notice that the title to unclaimed and abandoned merchandise will vest in the United States, as described in para- graph (a) of this section, will be sent to the following parties on Customs Form (CF) 5251, appropriately modified, or other similar Customs document as designated by the port director or an electronic equivalent as authorized by Customs:
(1) Importer, if known; (2) Consignee, if name and address
can be ascertained; (3) Shipper, or the shipper’s rep-
resentative or agent, if merchandise is consigned to order or the consignee cannot be ascertained; and
(4) Any other known interested par- ties.
(c) Appraisement of merchandise. Be- fore title to unclaimed and abandoned merchandise is vested in the United States, the merchandise will be ap- praised in accordance with section 402, Tariff Act of 1930, as amended (19 U.S.C. 1401a).
§ 127.42 Disposition of merchandise owned by Government.
(a) Disposition. If title to any un- claimed and abandoned merchandise vests in the United States under § 127.41, the merchandise may be re- tained by Customs for its official use, or in Customs discretion, the merchan- dise may be transferred to any other Federal, state or local agency, de- stroyed or disposed of otherwise.
(b) Payment of charges and expenses. All transfer and storage charges or ex- penses accruing on retained or trans- ferred merchandise will be paid by the receiving agency. Such transfer and
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storage charges or expenses will in- clude those accruing with respect to the merchandise while subject to gen- eral order.
§ 127.43 Petition of party for surplus proceeds had merchandise been sold.
(a) Filing of petition. Under section 491(d), Tariff Act of 1930, as amended (19 U.S.C. 1491(d)), any party who can satisfactorily establish title to or a substantial interest in unclaimed and abandoned merchandise, the title to which has vested in the United States, may file a petition for the amount that would have been payable to the party had the merchandise been sold and a proper claim made under section 493, Tariff Act of 1930, as amended (19 U.S.C. 1493).
(b) When and with whom filed. The pe- tition may be filed with the port direc- tor at whose direction the title to the merchandise was vested in the United States. If the party received notice under § 127.41(b), the petition must be filed within 30 calendar days after the day on which title vested in the United States. If the party can satisfactorily establish that such notice was not re- ceived, the party must file the petition within 30 calendar days of learning of the vesting but not later than 90 cal- endar days from the vesting.
(c) Evidence required. The petition must show the party’s title to or inter- est in the merchandise, and be sup- ported, as appropriate, with the origi- nal bill of lading, bill of sale, contract, mortgage, or other satisfactory docu- mentary evidence, or a certified copy of the foregoing. Also, if applicable, the petition must be supported by satisfactoryproof that the petitioner did not receive notice that title to the merchandise would vest in the United States and was in such circumstances as prevented the receipt of notice.
(d) Payment of claim. If the claim of the owner, consignee, or other party having title to or a substantial interest in the merchandise, is properly estab- lished as provided in this section, the party may be paid out of the Treasury of the United States the amount that it is believed the party would have re- ceived under 19 U.S.C. 1493 had the merchandise been sold and a proper
claim for the surplus of the proceeds of sale been made under that provision (see § 127.36 of this part). In determining the amount that may have been pay- able under 19 U.S.C. 1493, given that the merchandise was not in fact sold at public auction under 19 U.S.C. 1491(a), the appraisement of the merchandise, as provided in § 127.41(c), will be taken into consideration. By virtue of the au- thority delegated to the port director in this matter, any payment made as provided under this paragraph in con- nection with the filing of a petition under paragraph (b) of this section will be final and conclusive on all parties.
(e) Doubtful claim. Any doubtful claim for payment along with all pertinent documents and information available to the port director will be forwarded to the Assistant Commissioner, Office of Finance, for instructions. The deci- sion of the Assistant Commissioner, Of- fice of Finance, with respect to any pe- tition filed under this section will be final and conclusive on all parties.
PART 128—EXPRESS CONSIGNMENTS
Sec. 128.0 Scope.
Subpart A—General
128.1 Definitions.
Subpart B—Administration
128.11 Express consignment carrier applica- tion process.
128.12 Application approval/denial and sus- pension of operating privileges.
128.13 Application processing fee.
Subpart C—Procedures
128.21 Manifest requirements. 128.22 Bonds. 128.23 Entry requirements. 128.24 Informal entry procedures. 128.25 Formal entry procedures.
AUTHORITY: 19 U.S.C. 58c, 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1321, 1484, 1498, 1551, 1555, 1556, 1565, 1624.
SOURCE: T.D. 89–53, 54 FR 19566, May 8, 1989, unless otherwise noted.
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§ 128.0 Scope. This part sets forth requirements and
procedures for the clearance of im- ported merchandise carried by express consignment operators and carriers, in- cluding couriers, under special proce- dures.
Subpart A—General
§ 128.1 Definitions. For the purpose of this part the fol-
lowing definitions shall apply: (a) Express consignment operator or
carrier. An ‘‘express consignment oper- ator or carrier’’ is an entity operating in any mode or intermodally moving cargo by special express commercial service under closely integrated admin- istrative control. Its services are of- fered to the public under advertised, re- liable timely delivery on a door-to-door basis. An express consignment operator assumes liability to Customs for the articles in the same manner as if it is the sole carrier.
(b) Cargo. ‘‘Cargo’’ means any and all shipments imported into the Customs territory of the United States by an ex- press consignment operator or carrier whether manifested, accompanied, or unaccompanied.
(c) Courier shipment. A ‘‘courier ship- ment’’ is an accompanied express con- signment shipment.
(d) Hub. A ‘‘hub’’ is a separate, unique, single purpose facility nor- mally operating outside of Customs op- erating hours approved by the port di- rector for entry filing, examination, and release of express consignment shipments.
(e) Express consignment carrier facility. An ‘‘express consignment carrier facil- ity’’ is a separate or shared specialized facility approved by the port director solely for the examination and release of express consignment shipments.
(f) Closely integrated administrative control. The term ‘‘closely integrated administrative control’’ means oper- ations must be sufficiently integrated at both ends of the service (i.e., pick-up and delivery) so that the express con- signment company can exercise a high degree of control over the shipments, particularly in regard to the reliability of information supplied for Customs
purposes. Such control would be indi- cated by substantial common owner- ship between the local company and the foreign affiliate and/or by a very close contractual relationship between the local company and its foreign affil- iate(s) (e.g., a franchise arrangement).
(g) Reimbursable. ‘‘Reimbursable’’ means all normal costs incurred at an express consignment operator’s hub or an express consignment carrier facility that are required to be reimbursed to the Government.
Subpart B—Administration
§ 128.11 Express consignment carrier application process.
(a) Facility application. Requests for approval of an express consignment carrier or hub facility must be in writ- ing to the port director.
(b) Application contents. The applica- tion for approval of an express consign- ment carrier or hub facility must in- clude the following:
(1) A full description of the inter- national cargo facilities, including blueprints, floor plans and facility lo- cation(s).
(2) A statement of the general char- acter of the express consignment oper- ations that includes, in the case of an express consignment carrier facility, a list of all carriers or operators that in- tend to use the facility.
(3) An estimate of volume of trans- actions by:
(i) Formal entries. (ii) Informal entries. (iii) Shipments not requiring entry
(see § 128.23 of this part). (4) An application processing fee, as
set forth in § 128.13. (5) A list of principal company offi-
cials or officers. (6) A projected start-up date, and
days and hours of operation. (7) An agreement that the express
consignment entity will: (i) Ensure that all cargo will be proc-
essed in the Customs Automated Com- mercial System (ACS) and associated modules, including, but not limited to, Automated Broker Interface (ABI), Automated Manifest System (AMS), Cargo Selectivity, and Statement Processing.
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(ii) Sign and implement a narcotics enforcement agreement with U.S. Im- migration and Customs Enforcement (ICE).
(iii) Provide, without cost to the Government, adequate office space, equipment, furnishings, supplies and security as per CBP’s specifications.
(iv) If the entity is an express con- signment carrier facility, provide to Customs and Border Protection, Rev- enue Division/Attention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278, at the beginning of each calendar quar- ter, a list of all carriers or operators currently using the facility and notify that office whenever a new carrier or operator begins to use the facility or whenever a carrier or operator ceases to use the facility.
(v) If the entity is a hub facility or an express consignment carrier, timely pay all applicable processing fees pre- scribed in § 24.23 of this chapter.
(c) Changes or alterations to facility. All proposed changes or alterations to an existing approved international cargo processing facility must be sub- mitted in writing to the port director for approval prior to the implementa- tion thereof and must contain the in- formation specified in paragraph (b) of this section. Failure to obtain CBP ap- proval by an express consignment oper- ator or carrier for any modifications to the international cargo processing area may result in the suspension of ap- proval as an express consignment facil- ity or hub and the procedures for proc- essing cargo contained in this part.
[T.D. 89–53, 54 FR 19566, May. 8, 1989, as amended by T.D. 93–66, 58 FR 44130, Aug. 19, 1993; CBP. 07–29, 72 FR 31725, June 8, 2007]
§ 128.12 Application approval/denial and suspension of operating privi- leges.
(a) Notice. (1) The port director shall promptly notify the applicant in writ- ing of the decision to approve or deny the application to establish an express consignment carrier or hub facility or to suspend or revoke operating privi- leges at an existing facility.
(2) The notice shall specifically state the grounds for denial or for the pro- posed suspension or revocation.
(b) Appeal. The express consignment entity may file a written notice of ap- peal seeking review of the denial or proposed suspension or revocation within 30 days after notification.
(c) Recommendation. The port director shall consider the allegations and re- sponses in the appeal unless, in the case of a suspension or revocation, the express consignment entity requests a hearing. The appeal along with the port director’s recommendation shall be forwarded to the Commissioner of Customs or his designee for a final ad- ministrative decision.
(d) Hearing. In the case of a proposed suspension or revocation, a hearing may be requested within 30 days after notification. If a hearing is requested, it shall be held before a hearing officer appointed by the Commissioner of Cus- toms or his designee within 30 days fol- lowing the express consignment enti- ty’s request. The entity shall be noti- fied of the time and place of the hear- ing at least 5 days prior thereto. The express consignment entity may be represented by counsel at such hearing, and all evidence and testimony of wit- nesses in such proceedings, including substantiation of the allegations and the responses thereto shall be pre- sented, with the right of cross-exam- ination to both parties. A stenographic record of any such proceeding shall be made and a copy thereof shall be deliv- ered to the express consignment entity. At the conclusion of the hearing, all papers and the stenographic record of the hearing shall promptly be trans- mitted to the Commissioner of Cus- toms or his designee together with a recommendation for final action. The express consignment entity may sub- mit in writing additional views or ar- guments to the Commissioner or his designee following a hearing on the basis of the stenographic record, within 10 days after delivery to it of a copy of such record. The Commissioner or his designee shall thereafter render the de- cision in writing, stating the reasons therefor. Such decision shall be served on the express consignment entity, and shall be considered the final adminis- trative action.
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§ 128.13 Application processing fee. Each operator of an express consign-
ment hub or carrier facility will be charged a fee to establish, alter, or re- locate such facility which shall be de- termined under the provisions of 31 U.S.C. 9701. The fee will be periodically reviewed and revised to reflect changes in processing expenses and any changes thereto will be published in the FED- ERAL REGISTER and ‘‘Customs Bul- letin’’.
Subpart C—Procedures § 128.21 Manifest requirements.
(a) Additional information. Express consignment operators and carriers shall provide the following manifest in- formation in advance of the arrival of all cargo, including all articles for which an entry is not required as noted in § 128.23 (which shall be listed sepa- rately and their entry status noted), in addition to the information and docu- ments otherwise required by this chap- ter:
(1) Country of origin of the merchan- dise.
(2) Shipper name, address and coun- try.
(3) Ultimate consignee name and ad- dress.
(4) Specific description of the mer- chandise, and under the following con- ditions, the Harmonized Tariff Sched- ule of the United States (HTSUS) sub- heading number:
(i) If the merchandise is required to be formally entered as provided in § 128.25; or
(ii) If the merchandise is eligible for, and is entered under, the informal entry procedures as provided in § 128.24, but may not be passed free of duty and tax as consisting of a shipment of mer- chandise imported by one person on one day having a fair retail value in the country of shipment not exceeding $200, as provided in § 128.24(e).
(5) Quantity. (6) Shipping weight. (7) Value. (b) Sorting of cargo. If the shipments
are physically sorted by country of ori- gin of the merchandise when they ar- rive at the hub or express consignment facility and are presented to Customs in this manner, the advance manifest
information shall also be provided with the merchandise segregated by country of origin.
[T.D. 89–53, 54 FR 19566, May 8, 1989, as amended by T.D. 94–51, 59 FR 30294, June 13, 1994]
§ 128.22 Bonds.
Each express consignment operator or carrier must be recognized by Cus- toms as an international carrier and approved as a carrier of bonded mer- chandise, and shall file bonds on Cus- toms Form 301, containing the bond conditions set forth in §§ 113.62, 113.63, 113.64 and 113.66 of this chapter, to in- sure compliance with Customs require- ments relating to the importation and entry of merchandise as well as the carriage and custody of merchandise under Customs control.
§ 128.23 Entry requirements.
(a) General rule. Except as provided in paragraph (c) of this section, all arti- cles carried by an express consignment entity shall be entered by a person with the right to file entry.
(b) Procedures—(1) General. All ex- press consignment entities utilizing the procedures in this part shall com- ply with the requirements of the Cus- toms Automated Commercial System (ACS). These requirements include those under the Automated Manifest System (AMS), Cargo Selectivity, Statement Processing, the Automated Broker Interface System (ABI), and en- hancements of ACS.
(2) Entry number. All entry numbers must be furnished to Customs in a Cus- toms approved bar coded readable for- mat in order to assist in the processing of express consignment cargo under the Customs Automated Commercial Sys- tem (ACS).
(3) Paper entry document waiver. The port director is authorized, at the time of entry, to accept the appropriate electronic equivalent in lieu of entry documents for those entries designated as not requiring examination or review when the advance manifest require- ments of § 128.21(a) of this part have been met.
(c) Exception. Articles specifically ex- empt from entry by § 141.4(b) of this chapter need not satisfy the general
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rule as set forth in paragraph (a) of this section.
[T.D. 94–51, 59 FR 30294, June 13, 1994]
§ 128.24 Informal entry procedures. (a) Eligibility. Informal entry proce-
dures may generally be used for ship- ments not exceeding $2,000 in value which are imported by express consign- ment operators and carriers. Individual shipments valued at $2,000 or less may be consolidated on one entry. Such pro- cedures, however, may not be used for prohibited or restricted merchandise, merchandise which is subject to a quota or other quantitative restraints, or for any articles precluded from in- formal entry procedures by virtue of section 498, Tariff Act of 1930, as amended, (19 U.S.C. 1498).
(b) Procedures. Customs Form 3461, appropriately modified to cover all im- portations under the special procedures contained in this part, shall be sub- mitted prior to the commencement of hub or express consignment carrier fa- cility operations. The party who may make entry under § 143.26 of this chap- ter may submit a copy of the invoice or the advance manifest as described in § 128.21 in lieu of other control docu- ments.
(c) Alternative procedure. The party who may make entry under § 143.26 of this chapter may be required to submit an individual Customs Form 3461 cov- ering the eligible shipments on a daily basis or by flight basis. Commercial in- voices or advance manifests shall be attached to the Customs Form 3461 which will contain the entry number and such other information deemed necessary by the port director. A nota- tion shall be placed on the Customs Form 3461 that the entry covers mul- tiple shipments.
(d) Entry summary. An entry sum- mary (Customs Form 7501) must be pre- sented in proper form, and estimated duties deposited within 10 days of the release of the merchandise under either the regular or alternative procedure described in this section. However, see paragraph (e) of this section if the ship- ment is valued at $200 or less.
(e) Shipments valued at $200 or less. Shipments valued at $200 or less meet- ing the requirements of § 10.151 of this chapter shall be passed free of duty and
tax. Such shipments must be seg- regated on the manifest from ship- ments valued at more than $200 if an advance manifest is used as the entry document, as provided for in § 128.21. If such an advance manifest is used as the entry document, the following are not required to be provided for shipments qualifying under this paragraph:
(1) The Harmonized Tariff Schedule of the United States (HTSUS) sub- heading number (see § 128.21(a)(4)); and
(2) An entry summary (see paragraph (d) of this section).
[T.D. 89–53, 54 FR 19566, May 8, 1989, as amended by T.D. 94–51, 59 FR 30294, June 13, 1994; T.D. 95–31, 60 FR 18991, Apr. 14, 1995; T.D. 98–28, 63 FR 16417, Apr. 3, 1998]
§ 128.25 Formal entry procedures.
Formal entry, as provided for under 19 U.S.C. 1484 in parts 141, 142, and 143 (except for subpart C), of this chapter, is required for all shipments exceeding the monetary limitation for informal entry (see § 128.24) and any shipment for which the informal entry proce- dures may not be used (see § 128.24).
[T.D. 94–51, 59 FR 30295, June 13, 1994]
PART 132—QUOTAS
Sec. 132.0 Scope.
Subpart A—General Provisions
132.1 Definitions. 132.2 Enactment and administration of
quotas. 132.3 Observation of official hours. 132.4 Quota quantity entry limits. 132.5 Merchandise imported in excess of
quota quantities. 132.6 Exception to reduced rates.
Subpart B—Administration of Quotas
132.11 Quota priority and status. 132.11a Time of presentation. 132.12 Procedure on opening of potentially
filled quotas. 132.13 Quotas after opening. 132.14 Special permits for immediate deliv-
ery; entry of merchandise before pre- senting entry summary for consumption; permits of delivery.
132.15 Export certificate for beef subject to tariff-rate quota.
132.16 [Reserved]
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132.17 Export certificate for sugar-con- taining products subject to tariff-rate quota.
132.18 License for certain worsted wool fab- ric subject to tariff-rate quota.
Subpart C—Mail Importation of Absolute Quota Merchandise
132.21 Regulations applicable. 132.22 When quota is filled. 132.23 Partial release procedure. 132.24 Entry. 132.25 Undeliverable shipment.
AUTHORITY: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States (HTSUS)), 1623, 1624.
Sections 132.15, 132.17, and 132.18 also issued under 19 U.S.C. 1202 (additional U.S. Note 3 to Chapter 2, HTSUS; additional U.S. Note 8 to Chapter 17, HTSUS; and subchapter II of Chapter 99, HTSUS, respectively), 1484, 1508.
SOURCE: T.D. 73–203, 38 FR 20230, July 30, 1973, unless otherwise noted.
§ 132.0 Scope. This part sets forth rules and proce-
dures applicable to quotas adminis- tered by Headquarters, U.S. Customs Service.
Subpart A—General Provisions
§ 132.1 Definitions. When used in this part, the following
terms shall have the meaning indi- cated:
(a) Absolute (or quantitative) quotas. ‘‘Absolute (or quantitative) quotas’’ are those which permit a limited num- ber of units of specified merchandise to be entered or withdrawn for consump- tion during specified periods. Once the quantity permitted under the quota is filled, no further entries or with- drawals for consumption of merchan- dise subject to quota are permitted. Some absolute quotas limit the entry or withdrawal of merchandise from particular countries (geographic quotas) while others are global quotas and limit the entry or withdrawal of merchandise not by source but by total quantity.
(b) Tariff-rate quotas. ‘‘Tariff-rate quotas’’ permit a specified quantity of merchandise to be entered or with- drawn for consumption at a reduced duty rate during a specified period.
(c) [Reserved]
(d) Presentation. ‘‘Presentation’’ is the delivery in proper form to the ap- propriate Customs officer of:
(1) An entry summary for consump- tion, which shall serve as both the entry and the entry summary, with es- timated duties attached (see § 141.0a(b)); or
(2) An entry summary for consump- tion, which shall serve as both the entry and the entry summary, without estimated duties attached, if the entry/ entry summary information and a valid scheduled statement date (pursu- ant to § 24.25 of this chapter) have been successfully received by Customs via the Automated Broker Interface; or
(3) A withdrawal for consumption with estimated duties attached.
(e) Quota-class merchandise. ‘‘Quota- class merchandise’’ is any imported merchandise subject to limitations under an absolute or a tariff-rate quota.
(f) Quota priority. ‘‘Quota priority’’ is the precedence granted to one entry or withdrawal for consumption of quota- class merchandise over other entries or withdrawals of merchandise subject to the same quota.
(g) Quota status. ‘‘Quota status’’ is the standing which entitles quota-class merchandise to admission under an ab- solute quota, or to a reduced rate of duty under a tariff-rate quota, or to any other quota benefit.
[T.D. 73–203, 38 FR 20230, July 30, 1973, as amended by T.D. 79–221, 44 FR 46814, Aug. 9, 1979; T.D. 89–104, 54 FR 50498, Dec. 7, 1989]
§ 132.2 Enactment and administration of quotas.
(a) Enactment. Tariff-rate quotas and absolute quotas are established by Presidential proclamations, Executive orders, and legislative enactments. These documents are published in the Customs Bulletin.
(b) Administration. Quotas vary by the type of commodity involved, the coun- try of exportation, the period or peri- ods the quota is open and the type of quota. Quotas are divided into two cat- egories: Quotas administered directly by Headquarters, U.S. Customs Serv- ice, and quotas administered by other agencies which are enforced by Head- quarters, U.S. Customs Service, and which may require special procedures
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or special documentation in accord- ance with the regulations and direc- tives of the particular agency involved.
(c) Strict construction employed. The terms of a Presidential proclamation, Executive order, or legislative enact- ment establishing a quota, and the reg- ulations implementing the quota, must be strictly complied with.
§ 132.3 Observation of official hours. An entry summary for consumption
or a withdrawal for consumption for quota-class merchandise shall be pre- sented only during official office hours, except as provided in §§ 132.12 and 141.62(b) of this chapter. For purposes of administering quotas, ‘‘official office hours’’ shall mean 8:30 a.m. to 4:30 p.m. in all time zones.
[T.D. 79–221, 44 FR 46814, Aug. 9, 1979]
§ 132.4 Quota quantity entry limits. At the opening of the quota no im-
porter shall be permitted to present en- tries or withdrawals for consumption of quota-class merchandise for a quan- tity in excess of the quantity admis- sible under the applicable quota.
§ 132.5 Merchandise imported in ex- cess of quota quantities.
(a) Absolute quota merchandise. Abso- lute quota merchandise imported in ex- cess of the quantity admissible under the applicable quota must be disposed of in accordance with paragraph (c) of this section.
(b) Tariff-rate quota merchandise. Mer- chandise imported in excess of the quantity admissible at the reduced quota rate under a tariff-rate quota is permitted entry at the higher duty rate. However, it may be disposed of in accordance with paragraph (c) of this section.
(c) Disposition of excess merchandise. Merchandise imported in excess of ei- ther an absolute or a tariff-rate quota may be held for the opening of the next quota period by placing it in a foreign- trade zone or by entering it for ware- house, or it may be exported or de- stroyed under Customs supervision.
§ 132.6 Exception to reduced rates. Reduced or modified duty rates under
tariff-rate quotas established pursuant
to section 350 of the Tariff Act of 1930, as amended and extended (19 U.S.C. 1351), are not applicable to products imported directly or indirectly from the countries or areas listed under General Note 3(b), Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
[T.D 73–203, 53 FR 20230, July 30, 1973, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 90–78, 55 FR 40166, Oct. 2, 1990]
Subpart B—Administration of Quotas
§ 132.11 Quota priority and status.
(a) Determination of quota priority and status. Quota priority and status are determined as of the time of presen- tation of the entry summary for con- sumption, or withdrawal for consump- tion, in proper form in accordance with § 132.1(d).
(b) Documentation and deposit of duties in proper form required. Merchandise covered by an entry summary for con- sumption, which serves as both the entry and entry summary, or by a withdrawal for consumption, shall be regarded as entered for purposes of quota priority and shall acquire quota status if:
(1) The entry summary or withdrawal for consumption is in proper form, and duties have been attached to the entry summary or withdrawal for consump- tion in proper form; or
(2) The entry summary for consump- tion is in proper form, and the entry/ entry summary information and a valid scheduled statement date (pursu- ant to § 24.25 of this chapter) have been successfully received by Customs via the Automated Broker Interface.
See §§ 141.4, 141.63, 141.68, 141.69, and 141.101 of this chapter.
(c) Informal entries. Mail entries or in- formal entries shall be regarded as pre- sented for purposes of quota priority when all requirements have been met for the preparation of such an entry.
(d) Premature presentation of entry or withdrawal. Quota status will not at- tach to merchandise in a quota period by reason of the presentation of an entry or withdrawal for consumption
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at any time prior to the opening of that period.
[T.D. 73–203, 38 FR 20230, July 30, 1973, as amended by T.D. 79–221, 44 FR 46814, Aug. 9, 1979; T.D. 89–104, 54 FR 50498, Dec. 7, 1989]
§ 132.11a Time of presentation.
(a) General rule. Except as provided in paragraph (b) of this section, the time of presentation of an entry/entry sum- mary for quota purposes shall be the time of delivery in proper form of:
(1) An entry summary for consump- tion, which serves as both the entry and the entry summary, with esti- mated duties attached; or
(2) An entry summary for consump- tion, which shall serve as both the entry and the entry summary without estimated duties attached, if the entry/ entry summary information and a valid scheduled statement date have been successfully received by Customs via the Automated Broker Interface (see § 132.1(d)(2); payment must be sub- sequently made by the statement proc- essing method as set forth in § 24.25 of this chapter); or
(3) A withdrawal for consumption with estimated duties attached.
(b) Before arrival of merchandise. The entry summary for consumption, with- out estimated duties attached, may be submitted for preliminary review be- fore the merchandise arrives within the limits of the port where entry is to be made. In that case, the time of presen- tation of the entry summary for con- sumption shall be the time estimated duties are deposited after the import- ing carrier arrives within the port lim- its.
(c) Failure to use statement processing method. If presentation is chosen to be made pursuant to § 132.11a(a)(2) and payment is not made as required through the statement processing method, the port director may require filing of an entry summary for con- sumption with estimated duties at- tached as described in § 132.11(a)(1) for future filings.
[T.D. 79–221, 44 FR 46814, Aug. 9, 1979, as amended by T.D. 89–104, 54 FR 50498, Dec. 7, 1989]
§ 132.12 Procedure on opening of po- tentially filled quotas.
(a) Preliminary review before opening. When it is anticipated that a quota will be filled at the opening of the quota pe- riod, entry summaries for consump- tion, or withdrawals for consumption, with estimated duties attached, shall not be presented before 12 noon Eastern Standard Time in all time zones. How- ever, an entry summary for consump- tion, or withdrawal for consumption, for merchandise which has arrived within the Customs territory of the United States may be submitted for preliminary review without deposit of estimated duties within a time period before the opening approved by the port director. Submission of these doc- uments before opening will not accord the merchandise quota priority or sta- tus.
(b) Simultaneous presentation. Special arrangements shall be made so that all entry summaries for consumption, or withdrawals for consumption, for quota merchandise may be presented at the exact moment of the opening of the quota in all time zones. All importers prepared to present entry summaries for consumption, or withdrawals for consumption, when the quota opens shall be given equal opportunity to do so. All entry summaries for consump- tion, or withdrawals for consumption, presented in proper form (including those submitted for review before open- ing of the quota period if accompanied by the deposit of estimated duties) shall be considered to have been pre- sented simultaneously.
(c) Proration of quantities. (1) The quantities on all entry summaries for consumption, or withdrawals for con- sumption, submitted simultaneously shall be prorated by Headquarters against the quota quantity admissible to determine the percentage to be allo- cated to each importer under the quota. Merchandise in excess of the quota shall be disposed of in accord- ance with § 132.5.
(2) In the event a quota is prorated, entry summaries for consumption, or withdrawals for consumption, with es- timated duties attached, shall be re- turned to the importer for adjustment. The time of presentation for quota pur- poses, in that event, shall be the exact
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moment of the opening of the quota provided:
(i) An adjusted entry summary for consumption, or withdrawal for con- sumption, with estimated duties at- tached, is deposited within 5 working days after Headquarters authorizes re- lease of the merchandise, and
(ii) The importer takes delivery of the merchandise within 15 working days after release is authorized.
[T.D. 79–221, 44 FR 46814, Aug. 9, 1979]
§ 132.13 Quotas after opening. (a) Procedure when nearing fulfillment.
To secure for each importer the right- ful quota priority and status for his quota-class merchandise, and to close the quota simultaneously at all ports of entry:
(1) For release of merchandise—(i) Tar- iff-rate. When instructed by Head- quarters, the port director shall re- quire an importer to present an entry summary for consumption, with esti- mated duties attached, at the over- quota rate of duty until Headquarters has determined the quantity, if any of the merchandise entitled to the quota rate. If any of the merchandise entered at the over-quota rate is entitled to the quota rate, Customs shall amend the entry summary and refund to the im- porter any excess duties paid. This sec- tion does not prohibit an importer from obtaining release of the merchan- dise under the immediate delivery pro- cedure. If an importer desires to enter only that quantity entitled to the quota rate, he may request that the merchandise not be released from Cus- toms custody until Headquarters has determined the quantity entitled to the quota rate.
(ii) Absolute. Except as provided for in § 142.21 (e)(2) and (g) of this chapter, ab- solute quota merchandise shall not be released under the immediate delivery procedure. An entry summary for con- sumption, with estimated duties at- tached, setting forth the quantity de- sired to be entered, shall be presented. However, the merchandise shall not be released until Customs has determined the quantity entitled to absolute quota status and priority.
(iii) Quota Proration. When it is deter- mined that entry summaries for con- sumption or withdrawals for consump-
tion must be amended to permit only the quantity of tariff-rate and absolute quota merchandise determined to be within the quota, the entry summaries for consumption or withdrawals for consumption must be returned to the importer for adjustment. The time of presentation for quota purposes in that event shall be the same as the time of the initial presentation of the entry summaries for consumption or with- drawals for consumption provided:
(A) An adjusted entry summary for consumption, or withdrawals for con- sumption, with estimated duties at- tached, is deposited within 5 working days after Headquarters authorizes re- lease of the merchandise, and
(B) The importer takes delivery of the merchandise within 15 working days after release is authorized.
(2) Report of time of presentation. The date, hour and minute that an entry summary for consumption or with- drawal for consumption is presented at a port of entry must be indicated on the document by a method deemed ac- ceptable by Customs. The appropriate Customs officer shall report this infor- mation to Headquarters.
(b) Closing of the quota. Except as pro- vided by § 132.12, at the closing of a quota all entries or withdrawals for consumption which have acquired quota status due to priority of presen- tation shall be entitled to quota bene- fits. All other entries or withdrawals are without quota status and are not entitled to any quota benefits. All the latter shall be disposed of in accord- ance with § 132.5.
[T.D. 73–203, 38 FR 20230, July 30, 1973, as amended by T.D. 79–221, 44 FR 46815, Aug. 9, 1979; T.D. 80–26, 45 FR 3901, Jan. 21, 1980; T.D. 81–260, 46 FR 49841, Oct. 8, 1981; T.D 88–27, 53 FR 19897, June 1, 1988]
§ 132.14 Special permits for immediate delivery; entry of merchandise be- fore presenting entry summary for consumption; permits of delivery.
(a) Effect of issuance of special permit for immediate delivery or filing entry doc- umentation before presentation of entry summary—(1) Requirements for release. Quota-class merchandise shall not be released upon filing entry documenta- tion before the proper presentation of an entry summary for consumption, or
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a withdrawal for consumption, pursu- ant to § 132.1 of this part. However, quota-class merchandise may be re- leased under a special permit for imme- diate delivery in accordance with § 142.21(e) of this chapter.
(2) Effect of release under immediate de- livery. Release of quota-class merchan- dise under a special permit for imme- diate delivery before proper presen- tation of an entry summary for con- sumption, or a withdrawal for con- sumption, pursuant to § 132.1 of this part, shall not accord merchandise any quota priority or status or entitle it to any other quota benefit.
(3) Effect of inadvertent release. Inad- vertent release under a special permit for immediate delivery, or upon filing entry documentation, before proper presentation of an entry summary for consumption, or a withdrawal for con- sumption, pursuant to § 132.1 of this part, shall not accord the merchandise any quota priority or status or entitle it to any other quota benefit.
(4) Procedures following inadvertent re- lease—(i) Quota nearing fulfillment. If quota-class merchandise is released in- advertently under a special permit for immediate delivery, or under entry documentation, before the proper pres- entation of an entry summary for con- sumption, or a withdrawal for con- sumption, pursuant to § 132.1 of this part, and the quota is nearing fulfill- ment:
(A) The port director may demand the return to Customs custody of the released merchandise in accordance with § 141.113 of this chapter;
(B) The port director shall require the timely presentation of the entry summary for consumption, or a with- drawal for consumption, with the esti- mated duties attached;
(C) The port director may assess liq- uidated damages under the bond on Customs Form 301, containing the basic importation and entry bond con- ditions set forth in § 113.62 of this chap- ter in an amount equal to the value of the merchandise, plus estimated duties (computed at the over-quota rate for tariff-rate quota merchandise), if the merchandise is (1) released before pres- entation of an entry summary for con- sumption or a withdrawal for consump- tion, with estimated duties attached;
(2) the merchandise is not returned to Customs custody within 30 days from the date of demand for redelivery; or (3) the entry summary for consump- tion, or the withdrawal for consump- tion, with estimated duties attached, is not presented timely; and
(D) The Fines, Penalties, and Forfeit- ures Officer may cancel the claim for liquidated damages if he is satisfied by the evidence that release was due to causes wholly beyond the control of the importer, that no act or omission on the part of the importer formed the basis for the release, and that there was no intent on the part of the im- porter to evade any law or regulation. The port director also may cancel the claim for liquidated damages if the merchandise is redelivered to Customs custody within 30 days from the date of the demand, or if the entry summary for consumption, or withdrawal for consumption, with estimated duties at- tached, is presented timely.
(ii) Quota not nearing fulfillment. If quota-class merchandise is released in- advertently under a special permit for immediate delivery, or under entry documentation, before the proper pres- entation of an entry summary for con- sumption, or a withdrawal for con- sumption, pursuant to § 132.1 of this part, and the quota is not nearing ful- fillment:
(A) The port director shall require the timely presentation of the entry summary for consumption, or a with- drawal for consumption, with esti- mated duties attached;
(B) The port director may assess liq- uidated damages under the bond on Customs Form 301, containing the basic importation and entry bond con- ditions set forth in § 113.62 of this chap- ter in an amount equal to the value of the merchandise, plus estimated duties (computed at the over quota-rate for tariff-rate quota merchandise), if the merchandise is:
(1) Released before presentation of an entry summary for consumption, or a withdrawal for consumption, with esti- mated duties attached; or
(2) If the entry summary for con- sumption, or the withdrawal for con- sumption with estimated duties at- tached, is not presented timely; and
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(C) The Fines, Penalties, and Forfeit- ures Officer may cancel the claim for liquidated damages if he is satisfied by the evidence that the release was due to causes wholly beyond the control of the importer, that no act or omission on the part of the importer formed the basis for release, and that there was no intent on the part of the importer to evade any law or regulation. The port director also may cancel the claim for liquidated damages if the entry sum- mary for consumption, or withdrawal for consumption, with estimated duties attached, is presented timely.
(b) Permit of delivery—(1) Effect of fil- ing. The issuance of a permit of deliv- ery shall not accord the merchandise any quota priority or status nor entitle it to any other quota benefit.
(2) Time of issuance—(i) Absolute quota merchandise. A permit of delivery for merchandise subject to an absolute quota shall not be issued before a de- termination of the quota status of the merchandise.
(ii) Tariff-rate, quota merchandise. A permit delivery for merchandise sub- ject to a tariff-rate quota shall not be issued before a determination of the quota status of the merchandise unless estimated duties are deposited at the over-quota rate of duty.
(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as amended (19 U.S.C. 66, 1623, 1624))
[T.D. 79–221, 44 FR 46815, Aug. 9, 1979, as amended by T.D. 84–213, 49 FR 41183, Oct. 19, 1984; T.D. 89–104, 54 FR 50498, Dec. 7, 1989; T.D. 99–27, 64 FR 13674–13675, Mar. 22, 1999]
§ 132.15 Export certificate for beef sub- ject to tariff-rate quota.
(a) Requirement. In order to claim the in-quota tariff rate of duty on beef, de- fined in 15 CFR 2012.2(a), that is the product of a participating country, de- fined in 15 CFR 2012.2(e), the importer must possess a valid export certificate at the time that such beef is entered, or withdrawn from warehouse for con- sumption. The importer must record the unique identifying number of the export certificate for the beef on the entry summary or warehouse with- drawal for consumption (Customs Form 7501, Column 34), or its electronic equivalent.
(b) Validity of certificate. The export certificate, to be valid, must meet the requirements of 15 CFR 2012.3(b), and with respect to the requirement of 15 CFR 2012.3(b)(3) that the certificate be distinct and uniquely identifiable, the certificate must have a distinct and unique identifying number composed of three elements set forth in the fol- lowing order:
(1) The last digit of the year for which the export certificate is in ef- fect;
(2) The 2-digit ISO country of origin code from Annex B of the HTSUS which identifies the participating country (see § 142.42(d) of this chapter); and
(3) Any 6-digit number issued by the participating country with respect to the export certificate.
(c) Retention and submission of certifi- cate to Customs—(1) Retention. The ex- port certificate must be retained by the importer for a period of at least 5 years from the date of entry, or with- drawal from warehouse, for consump- tion (see § 163.4(a) of this chapter).
(2) Submission to Customs. The im- porter shall submit a copy of the ex- port certificate to Customs upon re- quest.
[T.D. 95–58, 60 FR 39109, Aug. 1, 1995, as amended by T.D. 99–87, 64 FR 67483, Dec. 2, 1999; T.D. 00–7, 65 FR 5431, Feb. 4, 2000]
§ 132.16 [Reserved]
§ 132.17 Export certificate for sugar- containing products subject to tar- iff-rate quota.
(a) Requirement. For sugar-containing products described in additional U.S. Note 8 to chapter 17, HTSUS, that are classified in HTSUS subheading 1701.91.54, 1704.90.74, 1806.20.75, 1806.20.95, 1806.90.55, 1901.90.56, 2101.12.54, 2101.20.54, 2106.90.78, or 2106.90.95, and that are products of a participating country, as defined in 15 CFR 2015.2(e), the im- porter must possess a valid export cer- tificate in order to claim the in-quota tariff rate of duty on the products at the time they are entered or withdrawn from warehouse for consumption. The importer must record the unique iden- tifier of the export certificate for these products on the entry summary or warehouse withdrawal for consumption
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(Customs Form 7501, column 34), or its electronic equivalent.
(b) Validity of export certificate. To be valid, the export certificate must meet the requirements of 15 CFR 2015.3(b), and with respect to the requirement of 15 CFR 2015.3(b)(3) that the certificate have a distinct and uniquely identifi- able number, this unique identifier must consist of 8 characters in any alpha/numeric combination.
(c) Retention and production of certifi- cate to Customs. The export certificate is subject to the recordkeeping require- ments of part 163 of this chapter (19 CFR part 163). Specifically, the certifi- cate must be retained for a period of 5 years in accordance with § 163.4(a) of this chapter, and must be made avail- able to Customs upon request in ac- cordance with § 163.6(a) of this chapter.
[T.D. 00–7, 65 FR 5431, Feb. 4, 2000]
§ 132.18 License for certain worsted wool fabric subject to tariff-rate quota.
(a) Requirement. For worsted wool fabric that is entered under HTSUS subheading 9902.51.11 or 9902.51.12, the importer must possess a valid license, or a written authorization from the li- censee, pursuant to regulations of the U.S. Department of Commerce (15 CFR 335.5), in order to claim the in-quota rate of duty on the worsted wool fabric at the time it is entered or withdrawn from warehouse for consumption. The importer must record the distinct and unique 9-character number for the li- cense covering the worsted wool fabric on the entry summary or warehouse withdrawal for consumption (Customs Form 7501, column 34), or its electronic equivalent (see paragraph (c)(1) of this section).
(b) Importer certification. By entering the worsted wool fabric under HTSUS subheading 9902.51.11 or 9902.51.12, the importer thus certifies that the wor- sted wool fabric is suitable for use in making suits, suit-type jackets, or trousers, as required under these sub- headings.
(c) Validity of license—(1) License num- ber. To be valid, the license, or written authorization issued under the license and including its unique control num- ber, must meet the requirements of 15 CFR 335.5, and with respect to the re-
quirement in 15 CFR 335.5(a) that the license have a unique control number, the license must have a distinct and unique identifying number consisting of 9 characters comprised of the fol- lowing three elements:
(i) The first character must be a ‘‘W’’;
(ii) The second and third characters must consist of the last 2 digits of the calendar year for which the license is issued and during which it is in effect; and
(iii) The final 6 characters represent the distinct and unique identifier as- signed to the license by the Depart- ment of Commerce.
(2) Use of license. A license covering worsted wool fabric that is entered under HTSUS subheading 9902.51.11 or 9902.51.12 is in effect, and may be used to obtain the applicable in-quota rate of duty for fabric that is entered or withdrawn for consumption, only dur- ing the specific calendar year (January 1—December 31, inclusive) for which the license is issued (see 15 CFR 335.2 and 335.5(b) and (d)).
(d) Retention and production of license or authorization to Customs. The license and any written authorization from the licensee to the importer are subject to the recordkeeping requirements of part 163 of this chapter (19 CFR part 163). Specifically, the license and any writ- ten authorization must be retained for a period of 5 years in accordance with § 163.4(a) of this chapter, and must be made available to Customs upon re- quest in accordance with § 163.6(a) of this chapter.
[T.D. 01–35, 66 FR 21666, May 1, 2001]
Subpart C—Mail Importation of Absolute Quota Merchandise
§ 132.21 Regulations applicable.
In addition to the regulations appli- cable to all mail importations (see part 145 of this chapter), the regulations in this subpart shall apply to mail impor- tations of absolute quota merchandise.
§ 132.22 When quota is filled.
Any packages containing merchan- dise subject to an absolute quota which
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is filled shall be returned to the post- master for return to the sender imme- diately as undeliverable mail. The ad- dressee will be notified on Customs Form 3509 or in any other appropriate manner that entry has been denied be- cause the quota is filled.
§ 132.23 Partial release procedure.
(a) Notification of quota restrictions. If because of quota restrictions, a mail importation cannot be released, the di- rector of the port of destination shall notify the addressee on Customs Form 3509 of the procedure required by para- graph (b) of this section, and shall in- form the addressee that upon return of the Acknowledgement of Delivery by Postal Service, the packages admis- sible under the absolute quota will be forwarded to him and the restricted packages will be returned to the sender as inadmissible. The port director may at his discretion hold packages if it ap- pears that the absolute quota will re- open in less than 30 days.
(b) Acknowledgement of delivery. An Acknowledgement of Delivery by Post- al Service shall be sent to the ad- dressee. He shall be advised that if he desires to secure release of less than the total number of packages of the merchandise, the Acknowledgement of Delivery by Postal Service must be signed by him and returned to the port director. Such Acknowledgment of De- livery by Postal Service shall be in the following form:
ACKNOWLEDGMENT OF DELIVERY BY POSTAL SERVICE
In consideration of the fact that certain articles in a mail importation consisting of llllllllllllllllllllllll
(state number) packages mailed to me by llllllllllll (name of sender) of llllllllllllll (address) on llllllll (date of mailing), are subject to quota restrictions under which only a por- tion of such articles may be admitted to entry at one time, and the Postal Service permits no division of the importation before delivery thereof, and since I am desirous of receiving the packages of such importation which are admissible to entry under the quota administered by the United States Customs, I hereby agree and acknowledge that delivery of the package or packages to
the United States Customs shall be regarded as delivery by the Postal Service to me.
———————————— (Signature of addressee)
(c) Agreement to less than full delivery. If, in any case, the sender of a mail package has indicated his agreement to the delivery of less than the entire im- portation at one time, an Acknowledg- ment of Delivery by Postal Service need not be secured from the addressee.
(d) Deposit required. If a portion of a mail shipment may be released, the port director may require a deposit of an amount sufficient to defray the ex- penses of repacking merchandise for shipment by mail to the addressee. The shipment shall be under Government frank without new postage.
§ 132.24 Entry. Unless a formal entry or entry by ap-
praisement is required, a mail entry on Customs Form 3419 shall be issued and forwarded with the package to the postmaster for delivery to the ad- dressee and collection of any duties in the same manner as for any other mail package subject to Customs treatment.
§ 132.25 Undeliverable shipment. If within a reasonable time, but not
to exceed 30 days, the addressee fails to indicate to the port director an inten- tion to receive delivery of the packages or a portion thereof in accordance with the notice on Customs Form 3509 which was sent to him by the port director, the importation shall be treated in the same manner as other undeliverable mail.
PART 133—TRADEMARKS, TRADE NAMES, AND COPYRIGHTS
Sec. 133.0 Scope.
Subpart A—Recordation of Trademarks
133.1 Recordation of trademarks. 133.2 Application to record trademark. 133.3 Documents and fee to accompany ap-
plication. 133.4 Effective date, term, and cancellation
of trademark recordation and renewals. 133.5 Change of ownership of recorded trade-
mark. 133.6 Change in name of owner of recorded
trademark.
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133.7 Renewal of trademark recordation.
Subpart B—Recordation of Trade Names
133.11 Trade names eligible for recordation. 133.12 Application to record a trade name. 133.13 Documents and fee to accompany ap-
plication. 133.14 Publication of trade name recorda-
tion. 133.15 Term of CBP trade name recordation.
Subpart C—Importations Bearing Reg- istered and/or Recorded Trademark or Recorded Trade Names
133.21 Articles bearing counterfeit trade- marks.
133.22 Restrictions on importation of arti- cles bearing copying or simulating trade- marks.
133.23 Restrictions on importation of gray market articles.
133.24 Restrictions on articles accom- panying importer and mail importations.
133.25 Procedure on detention of articles subject to restriction.
133.26 Demand for redelivery of released merchandise.
133.27 Civil fines for those involved in the importation of merchandise bearing a counterfeit mark.
Subpart D—Recordation of Copyrights
133.31 Recordation of copyrighted works. 133.32 Application to record copyright. 133.33 Documents and fee to accompany ap-
plication. 133.34 Effective date, term, and cancellation
of recordation. 133.35 Change of ownership of recorded
copyright. 133.36 Change in name of owner of recorded
copyright. 133.37 Renewal of copyright recordation.
Subpart E—Importations Violating Copyright Laws
133.41 [Reserved] 133.42 Infringing copies or phonorecords. 133.43 Procedure on suspicion of infringing
copies. 133.44 Decision of disputed claim of in-
fringement. 133.45 [Reserved] 133.46 Demand for redelivery of released ar-
ticles.
Subpart F—Procedure Following Forfeiture or Assessment of Liquidated Damages
133.51 Relief from forfeiture or liquidated damages.
133.52 Disposition of forfeited merchandise. 133.53 Refund of duty.
AUTHORITY: 17 U.S.C. 101, 601, 602, 603; 19 U.S.C. 66, 1624; 31 U.S.C. 9701.
Section 133.1 also issued under 15 U.S.C. 1096, 1124;
Sections 133.2 through 133.7, 133.11 through 133.13, and 133.15 also issued under 15 U.S.C. 1124;
Sections 133.21 through 133.25 also issued under 15 U.S.C. 1124, 19 U.S.C. 1526;
Sections 133.26 and 133.46 also issued under 19 U.S.C. 1623;
Sections 133.27 and 133.52 also issued under 19 U.S.C. 1526;
Section 133.53 also issued under 19 U.S.C. 1558(a).
SOURCE: T.D. 72–266, 37 FR 20678, Oct. 3, 1972, unless otherwise noted.
§ 133.0 Scope.
This part provides for the recorda- tion of trademarks, trade names, and copyrights with the U.S. Customs and Border Protection for the purpose of prohibiting the importation of certain articles. It also sets forth the proce- dures for the disposition of articles bearing prohibited marks or names, and copyrighted or piratical articles, including release to the importer in ap- propriate circumstances.
Subpart A—Recordation of Trademarks
§ 133.1 Recordation of trademarks.
(a) Eligible trademarks. Trademarks registered by the U.S. Patent and Trademark Office under the Trade- mark Act of March 3, 1881, the Trade- mark Act of February 20, 1905, or the Trademark Act of 1946 (15 U.S.C. 1051 et seq.) except those registered on the sup- plemental register under the 1946 Act (15 U.S.C. 1096), may be recorded with the U.S. Customs and Border Protec- tion if the registration is current.
(b) Notice of recordation and other ac- tion. Applicants and recordants will be notified of the approval or denial of an application filed in accordance with §§ 133.2, 133.5, 133.6, and 133.7 of this sub- part.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
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§ 133.2 Application to record trade- mark.
An application to record one or more trademarks shall be in writing, ad- dressed to the Intellectual Property Rights (IPR) & Restricted Merchandise Branch, U.S. Customs and Border Pro- tection, 1300 Pennsylvania Avenue, NW., Washington, DC 20229, and shall include the following information:
(a) The name, complete business ad- dress, and citizenship of the trademark owner or owners (if a partnership, the citizenship of each partner; if an asso- ciation or corporation the State, coun- try, or other political jurisdiction within which it was organized, incor- porated, or created);
(b) The places of manufacture of goods bearing the recorded trademark;
(c) The name and principal business address of each foreign person or busi- ness entity authorized or licensed to use the trademark and a statement as to the use authorized; and
(d) The identity of any parent or sub- sidiary company or other foreign com- pany under common ownership or con- trol which uses the trademark abroad. For this purpose:
(1) Common ownership means indi- vidual or aggregate ownership of more than 50 percent of the business entity; and
(2) Common control means effective control in policy and operations and is not necessarily synonymous with com- mon ownership.
(e) Lever-rule protection. For owners of U.S. trademarks who desire protection against gray market articles on the basis of physical and material dif- ferences (see Lever Bros. Co. v. United States, 981 F.2d 1330 (D.C. Cir. 1993)), a description of any physical and mate- rial difference between the specific ar- ticles authorized for importation or sale in the United States and those not so authorized. In each instance, owners who assert that physical and material differences exist must state the basis for such a claim with particularity, and must support such assertions by competent evidence and provide sum- maries of physical and material dif- ferences for publication. CBP deter- mination of physical and material dif- ferences may include, but is not lim- ited to, considerations of:
(1) The specific composition of both the authorized and gray market prod- uct(s) (including chemical composi- tion);
(2) Formulation, product construc- tion, structure, or composite product components, of both the authorized and gray market product;
(3) Performance and/or operational characteristics of both the authorized and gray market product;
(4) Differences resulting from legal or regulatory requirements, certification, etc.;
(5) Other distinguishing and explic- itly defined factors that would likely result in consumer deception or confu- sion as proscribed under applicable law.
(f) CBP will publish in the Customs Bulletin a notice listing any trade- mark(s) and the specific products for which gray market protection for phys- ically and materially different prod- ucts has been requested. CBP will ex- amine the request(s) before issuing a determination whether gray market protection is granted. For parties re- questing protection, the application for trademark protection will not take ef- fect until CBP has made and issued this determination. If protection is granted, CBP will publish in the Cus- toms Bulletin a notice that a trade- mark will receive Lever-rule protection with regard to a specific product.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–21, 64 FR 9062, Feb. 24, 1999; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 133.3 Documents and fee to accom- pany application.
(a) Documents. The application shall be accompanied by:
(1) A status copy of the certificate of registration certified by the U.S. Pat- ent and Trademark Office showing title to be presently in the name of the ap- plicant; and
(2) Five copies of this certificate, or of a U.S. Patent and Trademark Office facsimile. The copies may be repro- duced privately and shall be on paper approximately 8″×101⁄2″ in size. If the certificate consists of two or more pages, the copies may be reproduced on both sides of the paper.
(b) Fee. The application shall be ac- companied by a fee of $190 for each
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19 CFR Ch. I (4–1–12 Edition)§ 133.4
trademark to be recorded. However, if the trademark is registered for more than one class of goods (based on the class, or classes, first stated on the cer- tificate of registration, without consid- eration of any class, or classes, also stated in parentheses) the fee for rec- ordation shall be $190 for each class for which the applicant desires to record the trademark with the United States Customs Service. For example, to se- cure recordation of a trademark reg- istered for three classes of goods, a fee of $570 is payable. A check or money order shall be made payable to the United States Customs Service.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 73–174, 38 FR 16850, June 27, 1973; T.D. 75–160, 40 FR 28790, July 9, 1975; T.D. 84–133, 49 FR 26571, June 28, 1984; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.4 Effective date, term, and can- cellation of trademark recordation and renewals.
(a) Effective date. Recordation of trademark and protection thereunder shall be effective on the date an appli- cation for recordation is approved, as shown on the recordation notice issued by the U.S. Customs and Border Pro- tection instructing U.S. Customs and Border Protection Officers as to the terms and conditions of import protec- tion appropriate.
(b) Term. The recordation or renewal of an existing recordation of a trade- mark shall remain in force concur- rently with the 20-year current reg- istration period or last renewal thereof in the U.S. Patent and Trademark Of- fice.
(c) Cancellation of recordation. Rec- ordation of a trademark with the U.S. Customs and Border Protection shall be canceled if the trademark registra- tion is finally canceled or revoked.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.5 Change of ownership of re- corded trademark.
If there is a change in ownership of a recorded trademark and the new owner wishes to continue the recordation with the United States Customs Serv- ice, he shall apply therefor by:
(a) Complying with § 133.2;
(b) Describing any time limit on the rights of ownership transferred;
(c) Submitting a status copy of the certificate of registration certified by the U.S. Patent and Trademark Office showing title to be presently in the name of the new owner; and
(d) Paying a fee of $80, which covers all trademarks included in the applica- tion which have been previously re- corded with the United States Customs Service. A check or money order shall be made payable to the United States Customs Service.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.6 Change in name of owner of re- corded trademark.
If there is a change in the name of the owner of a recorded trademark, but no change in ownership, written notice thereof shall be given to the IPR & Re- stricted Merchandise Branch, CBP Headquarters, accompanied by:
(a) A status copy of the certificate of registration certified by the U.S. Pat- ent and Trademark Office showing title to be presently in the name as changed; and
(b) A fee of $80, which covers all trademarks included in the application which have been previously recorded with the U.S. Customs and Border Pro- tection. A check or money order shall be made payable to the U.S. Customs and Border Protection.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.7 Renewal of trademark recorda- tion.
(a) Application to renew. To continue uninterrupted CBP protection for trademarks, the trademark owner shall submit a written application to renew CBP recordation to the IPR & Re- stricted Merchandise Branch not later than 3 months after the date of expira- tion of the current 20–year trademark registration issued by the U.S. Patent and Trademark Office. A timely appli- cation to renew a CBP recordation must include the following:
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(1) A status copy of the certificate of registration certified by the U.S. Pat- ent and Trademark Office showing re- newal of the trademark and title to be in the name of the applicant;
(2) A statement describing any change of ownership or in the name of owner, in compliance with §§ 133.5 and 133.6 of this part, and any change of ad- dresses of owners or places of manufac- ture; and
(3) A fee of $80 for each renewal of a trademark recordation. Where the trademark covers several classes, a fee of $80 is required for each class. A check or money order shall be made payable to the U.S. Customs and Bor- der Protection.
(b) Delayed application. Upon request made during the grace period of 3 months afforded by paragraph (a) of this section, a trademark owner whose application for renewal of recordation is unavoidably delayed may be afforded a reasonable extended period within which to comply with the requirements of paragraph (a) of this section. The re- quest shall be in writing, addressed to the IPR & Restricted Merchandise Branch, and shall set forth the cir- cumstances due to which application is delayed.
(c) Untimely application. Failure of the trademark owner to submit a re- newal application within the 3–month grace period afforded in accordance with paragraph (a) of this section or within an extension of time granted in accordance with paragraph (b) of this section, shall deprive the trademark owner of the renewal process. A delin- quent applicant will be required to apply anew to record the renewed trademark in accordance with the pro- cedures and requirements of §§ 133.2 and 133.3.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
Subpart B—Recordation of Trade Names
§ 133.11 Trade names eligible for rec- ordation.
The name or trade style used for at least 6 months to identify a manufac- turer or trader may be recorded with the United States Customs Service.
Words or designs used as trademarks, whether or not registered in the U.S. Patent and Trademark Office shall not be accepted for recordation as a trade name. Generally, the complete busi- ness name will be recorded unless con- vincing proof establishes that only a part of the complete name is custom- arily used.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.12 Application to record a trade name.
An application to record a trade name shall be in writing addressed to the IPR & Restricted Merchandise Branch, 1300 Pennsylvania Avenue, NW., Washington, DC 20229, and shall include the following information:
(a) The name, complete business ad- dress, and citizenship of the trade name owner or owners (if a partner- ship, the citizenship of each partner; if an association or corporation, the State, country, or other political juris- diction within which it was organized, incorporated or created);
(b) The name or trade style to be re- corded;
(c) The name and principal business address of each foreign person or busi- ness entity authorized or licensed to use the trade name and a statement as to the use authorized;
(d) The identity of any parent or sub- sidiary company, or other foreign com- pany under common ownership or con- trol which uses the trade name abroad (see § 133.2(d)); and
(e) A description of the merchandise with which the trade name is associ- ated.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 133.13 Documents and fee to accom- pany application.
(a) Documents. The application shall be accompanied by a statement of the owner, partners, or principal corporate officer, and by statements by at least two other persons not associated with or related to the applicant but having actual knowledge of the facts, stating that to his best knowledge and belief:
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(1) The applicant has used the trade name in connection with the class or kind of merchandise described in the application for at least 6 months;
(2) The trade name is not identical or confusingly similar to any other trade name or registered trademark used in connection with such class or kind of merchandise; and
(3) The applicant has the sole and ex- clusive right to the use of such trade name in connection with the merchan- dise of that class or kind.
(b) Fee. The application shall be ac- companied by a fee of $190 for each trade name to be recorded. A check or money order shall be made payable to the U.S. Customs and Border Protec- tion.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975]
§ 133.14 Publication of trade name rec- ordation.
(a) Notice of tentative recordation. No- tice of tentative recordation of a trade name shall be published in the FED- ERAL REGISTER and the Customs Bul- letin. The notice shall specify a proce- dure and a time period within which in- terested parties may oppose the rec- ordation.
(b) Notice of final action. After consid- eration of any claims, rebuttals, and other relevant evidence, notice of final approval or disapproval of the applica- tion shall be published in the FEDERAL REGISTER and the Customs Bulletin.
§ 133.15 Term of CBP trade name rec- ordation.
Protection for a recorded trade name shall remain in force as long as the trade name is used. The recordation shall be canceled upon request of the recordant or upon evidence of disuse. From time to time, the IPR & Re- stricted Merchandise Branch may re- quest the trade name owner to advise whether the name is still in use. The failure of a trade name owner to re- spond to such a request shall be re- garded as evidence of disuse.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
Subpart C—Importations Bearing Registered and/or Recorded Trademarks or Recorded Trade Names
SOURCE: T.D. 99–21, 64 FR 9062, Feb. 24, 1999, unless otherwise noted.
§ 133.21 Articles bearing counterfeit trademarks.
(a) Counterfeit trademark defined. A ‘‘counterfeit trademark’’ is a spurious trademark that is identical to, or sub- stantially indistinguishable from, a registered trademark.
(b) Seizure. Any article of domestic or foreign manufacture imported into the United States bearing a counterfeit trademark shall be seized and, in the absence of the written consent of the trademark owner, forfeited for viola- tion of the customs laws.
(c) Notice to trademark owner. When merchandise is seized under this sec- tion, Customs shall disclose to the owner of the trademark the following information, if available, within 30 days, excluding weekends and holidays, of the date of the notice of seizure:
(1) The date of importation; (2) The port of entry; (3) A description of the merchandise; (4) The quantity involved; (5) The name and address of the man-
ufacturer; (6) The country of origin of the mer-
chandise; (7) The name and address of the ex-
porter; and (8) The name and address of the im-
porter. (d) Samples available to the trademark
owner. At any time following seizure of the merchandise, Customs may provide a sample of the suspect merchandise to the owner of the trademark for exam- ination, testing, or other use in pursuit of a related private civil remedy for trademark infringement. To obtain a sample under this section, the trade- mark/trade name owner must furnish Customs a bond in the form and amount specified by the port director, conditioned to hold the United States, its officers and employees, and the im- porter or owner of the imported article harmless from any loss or damage re- sulting from the furnishing of a sample by Customs to the trademark owner.
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Customs may demand the return of the sample at any time. The owner must return the sample to Customs upon de- mand or at the conclusion of the exam- ination, testing, or other use in pursuit of a related private civil remedy for trademark infringement. In the event that the sample is damaged, destroyed, or lost while in the possession of the trademark owner, the owner shall, in lieu of return of the sample, certify to Customs that: ‘‘The sample described as [insert description] and provided pursuant to 19 CFR 133.21(d) was (dam- aged/destroyed/lost) during examina- tion, testing, or other use.’’
(e) Failure to make appropriate disposi- tion. Unless the trademark owner, within 30 days of notification, provides written consent to importation of the articles, exportation, entry after oblit- eration of the trademark, or other ap- propriate disposition, the articles shall be disposed of in accordance with § 133.52, subject to the importer’s right to petition for relief from the for- feiture under the provisions of part 171 of this chapter.
§ 133.22 Restrictions on importation of articles bearing copying or simu- lating trademarks.
(a) Copying or simulating trademark or trade name defined. A ‘‘copying or simu- lating’’ trademark or trade name is one which may so resemble a recorded mark or name as to be likely to cause the public to associate the copying or simulating mark or name with the re- corded mark or name.
(b) Denial of entry. Any articles of foreign or domestic manufacture im- ported into the United States bearing a mark or name copying or simulating a recorded mark or name shall be denied entry and subject to detention as pro- vided in § 133.25.
(c) Relief from detention of articles bearing copying or simulating trademarks. Articles subject to the restrictions of this section shall be detained for 30 days from the date on which the goods are presented for Customs examina- tion, to permit the importer to estab- lish that any of the following cir- cumstances are applicable:
(1) The objectionable mark is re- moved or obliterated as a condition to entry in such a manner as to be illegi-
ble and incapable of being reconsti- tuted, for example by:
(i) Grinding off imprinted trade- marks wherever they appear;
(ii) Removing and disposing of plates bearing a trademark or trade name;
(2) The merchandise is imported by the recordant of the trademark or trade name or his designate;
(3) The recordant gives written con- sent to an importation of articles oth- erwise subject to the restrictions set forth in paragraph (b) of this section or § 133.23(c) of this subpart, and such con- sent is furnished to appropriate Cus- toms officials;
(4) The articles of foreign manufac- ture bear a recorded trademark and the one-item personal exemption is claimed and allowed under § 148.55 of this chapter.
(d) Exceptions for articles bearing coun- terfeit trademarks. The provisions of paragraph (c)(1) of this section are not applicable to articles bearing counter- feit trademarks at the time of importa- tion (see § 133.26).
(e) Release of detained articles. Arti- cles detained in accordance with § 133.25 may be released to the importer during the 30-day period of detention if any of the circumstances allowing exemption from trademark or trade name restric- tion set forth in paragraph (c) of this section are established.
(f) Seizure. If the importer has not ob- tained release of detained articles within the 30-day period of detention, the merchandise shall be seized and forfeiture proceedings instituted. The importer shall be promptly notified of the seizure and liability to forfeiture and his right to petition for relief in accordance with the provisions of part 171 of this chapter.
§ 133.23 Restrictions on importation of gray market articles.
(a) Restricted gray market articles de- fined. ‘‘Restricted gray market arti- cles’’ are foreign-made articles bearing a genuine trademark or trade name identical with or substantially indis- tinguishable from one owned and re- corded by a citizen of the United States or a corporation or association created or organized within the United States and imported without the authoriza- tion of the U.S. owner. ‘‘Restricted
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gray market goods’’ include goods bearing a genuine trademark or trade name which is:
(1) Independent licensee. Applied by a licensee (including a manufacturer) independent of the U.S. owner, or
(2) Foreign owner. Applied under the authority of a foreign trademark or trade name owner other than the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise sub- ject to common ownership or control with the U.S. owner (see §§ 133.2(d) and 133.12(d) of this part), from whom the U.S. owner acquired the domestic title, or to whom the U.S. owner sold the for- eign title(s); or
(3) ‘‘Lever-rule’’. Applied by the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise sub- ject to common ownership or control with the U.S. owner (see §§ 133.2(d) and 133.12(d) of this part), to goods that the Customs Service has determined to be physically and materially different from the articles authorized by the U.S. trademark owner for importation or sale in the U.S. (as defined in § 133.2 of this part).
(b) Labeling of physically and materi- ally different goods. Goods determined by the Customs Service to be phys- ically and materially different under the procedures of this part, bearing a genuine mark applied under the au- thority of the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise subject to common owner- ship or control with the U.S. owner (see §§ 133.2(d) and 133.12(d) of this part), shall not be detained under the provi- sions of paragraph (c) of this section where the merchandise or its pack- aging bears a conspicuous and legible label designed to remain on the prod- uct until the first point of sale to a re- tail consumer in the United States stating that: ‘‘This product is not a product authorized by the United States trademark owner for importa- tion and is physically and materially different from the authorized product.’’ The label must be in close proximity to the trademark as it appears in its most prominent location on the article itself or the retail package or container. Other information designed to dispel consumer confusion may also be added.
(c) Denial of entry. All restricted gray market goods imported into the United States shall be denied entry and sub- ject to detention as provided in § 133.25, except as provided in paragraph (b) of this section.
(d) Relief from detention of gray market articles. Gray market goods subject to the restrictions of this section shall be detained for 30 days from the date on which the goods are presented for Cus- toms examination, to permit the im- porter to establish that any of the fol- lowing exceptions, as well as the cir- cumstances described above in § 133.22(c), are applicable:
(1) The trademark or trade name was applied under the authority of a for- eign trademark or trade name owner who is the same as the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise subject to com- mon ownership or control with the U.S. owner (in an instance covered by §§ 133.2(d) and 133.12(d) of this part); and/or
(2) For goods bearing a genuine mark applied under the authority of the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise sub- ject to common ownership or control with the U.S. owner, that the merchan- dise as imported is not physically and materially different, as described in § 133.2(e), from articles authorized by the U.S. owner for importation or sale in the United States; or
(3) Where goods are detained for vio- lation of § 133.23(a)(3), as physically and materially different from the articles authorized by the U.S. trademark owner for importation or sale in the U.S., a label in compliance with § 133.23(b) is applied to the goods.
(e) Release of detained articles. Arti- cles detained in accordance with § 133.25 may be released to the importer during the 30-day period of detention if any of the circumstances allowing exemption from trademark restriction set forth in § 133.22(c) of this subpart or in para- graph (d) of this section are estab- lished.
(f) Seizure. If the importer has not ob- tained release of detained articles within the 30-day period of detention, the merchandise shall be seized and forfeiture proceedings instituted. The
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U.S. Customs and Border Protection, DHS; Treasury § 133.25
importer shall be notified of the sei- zure and liability of forfeiture and his right to petition for relief in accord- ance with the provisions of part 171 of this chapter.
§ 133.24 Restrictions on articles accom- panying importer and mail importa- tions.
(a) Detention. Articles accompanying an importer and mail importations subject to the restrictions of §§ 133.22 and 133.23 shall be detained for 30 days from the date of notice that such re- strictions apply, to permit the estab- lishment of whether any of the cir- cumstances described in § 133.22(c) or 133.23(d) are applicable.
(b) Notice of detention. Notice of de- tention shall be given in the following manner:
(1) Articles accompanying importer. When the articles are carried as accom- panying baggage or on the person of persons arriving in the United States, the Customs inspector shall orally ad- vise the importer that the articles are subject to detention.
(2) Mail importations. When the arti- cles arrive by mail in noncommercial shipments, or in commercial shipments valued at $250 or less, notice of the de- tention shall be given on Customs Form 8.
(c) Release of detained articles—(1) General. Articles detained in accord- ance with paragraph (a) of this section may be released to the importer during the 30-day period of detention if any of the circumstances allowing exemption from trademark or trade name restric- tion(s) set forth in § 133.22(c) or 133.23(d) of this subpart are established.
(2) Articles accompanying importer. Ar- ticles arriving as accompanying bag- gage or on the person of the importer may be exported or destroyed under Customs supervision at the request of the importer, or may be released if:
(i) The importer removes or obliter- ates the marks in a manner acceptable to the Customs officer at the time of examination of the articles; or
(ii) The request of the importer to ob- tain skillful removal of the marks is granted by the port director under such conditions as he may deem necessary, and upon return of the article to Cus-
toms for verification, the marks are found to be satisfactorily removed.
(3) Mail importations. Articles arriving by mail in noncommercial shipments, or in commercial shipments valued at $250 or less, may be exported or de- stroyed at the request of the addressee or may be released if:
(i) The addressee appears in person at the appropriate Customs office and at that time removes or obliterates the marks in a manner acceptable to the Customs officer; or
(ii) The request of the addressee ap- pearing in person to obtain skillful re- moval of the marks is granted by the port director under such conditions as he may deem necessary, and upon re- turn of the article to Customs for verification, the marks are found to be satisfactorily removed.
(d) Seizure. If the importer has not obtained release of detained articles within the 30-day period of detention, the merchandise shall be seized and forfeiture proceedings instituted. The importer shall be promptly notified of the seizure and liability to forfeiture and his right to petition for relief in accordance with the provisions of part 171 of this chapter.
§ 133.25 Procedure on detention of ar- ticles subject to restriction.
(a) In general. Articles subject to the restrictions of §§ 133.22 and 133.23 shall be detained for 30 days from the date on which the merchandise is presented for Customs examination. The im- porter shall be notified of the decision to detain within 5 days of the decision that such restrictions apply. The im- porter may, during the 30-day period, establish that any of the circumstances described in § 133.22(c) or § 133.23(d) are applicable. Extensions of the 30-day time period may be freely granted for good cause shown.
(b) Notice of detention and disclosure of information. From the time merchan- dise is presented for Customs examina- tion until the time a notice of deten- tion is issued, Customs may disclose to the owner of the trademark or trade name any of the following information in order to obtain assistance in deter- mining whether an imported article bears an infringing trademark or trade name. Once a notice of detention is
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issued, Customs shall disclose to the owner of the trademark or trade name the following information, if available, within 30 days, excluding weekends and holidays, of the date of detention:
(1) The date of importation; (2) The port of entry; (3) A description of the merchandise; (4) The quantity involved; and (5) The country of origin of the mer-
chandise. (c) Samples available to the trademark
or trade name owner. At any time fol- lowing presentation of the merchandise for Customs examination, but prior to seizure, Customs may provide a sample of the suspect merchandise to the owner of the trademark or trade name for examination or testing to assist in determining whether the article im- ported bears an infringing trademark or trade name. To obtain a sample under this section, the trademark/trade name owner must furnish Customs a bond in the form and amount specified by the port director, conditioned to hold the United States, its officers and employees, and the importer or owner of the imported article harmless from any loss or damage resulting from the furnishing of a sample by Customs to the trademark owner. Customs may de- mand the return of the sample at any time. The owner must return the sam- ple to Customs upon demand or at the conclusion of the examination or test- ing. In the event that the sample is damaged, destroyed, or lost while in the possession of the trademark or trade name owner, the owner shall, in lieu of return of the sample, certify to Customs that: ‘‘The sample described as [insert description] and provided pursuant to 19 CFR 133.25(c) was (dam- aged/destroyed/lost) during examina- tion or testing for trademark infringe- ment.’’
(d) Form of notice. Notice of detention of articles found subject to the restric- tions of § 133.22 or § 133.23 shall be given the importer in writing.
§ 133.26 Demand for redelivery of re- leased merchandise.
If it is determined that merchandise which has been released from CBP cus- tody is subject to the restrictions of § 133.22 or § 133.23 of this subpart, the port director shall promptly make de-
mand for the redelivery of the mer- chandise under the terms of the bond on CBP Form 301, containing the bond conditions set forth in § 113.62 of this chapter, in accordance with § 141.113 of this chapter. If the merchandise is not redelivered to CBP custody, a claim for liquidated damages shall be made in accordance with § 141.113(h) of this chapter.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 99–64, 64 FR 43266, Aug. 10, 1999]
§ 133.27 Civil fines for those involved in the importation of merchandise bearing a counterfeit mark.
In addition to any other penalty or remedy authorized by law, CBP may impose a civil fine under 19 U.S.C. 1526(f) on any person who directs, as- sists financially or otherwise, or aids and abets the importation of merchan- dise for sale or public distribution that bears a counterfeit mark resulting in a seizure of the merchandise under 19 U.S.C. 1526(e) (see § 133.21 of this sub- part), as follows:
(a) First violation. For the first sei- zure of merchandise under this section, the fine imposed will not be more than the value the merchandise would have had if it were genuine, according to the manufacturer’s suggested retail price in the United States at the time of sei- zure.
(b) Subsequent violations: For the sec- ond and each subsequent seizure under this section, the fine imposed will not be more than twice the value the mer- chandise would have had if it were gen- uine, according to the manufacturer’s suggested retail price in the United States at the time of seizure.
[CBP Dec. 03–12, 68 FR 43637, July 24, 2003]
Subpart D—Recordation of Copyrights
§ 133.31 Recordation of copyrighted works.
(a) Eligible works. Claims to copyright which have been registered in accord- ance with the Copyright Act of July 30, 1947, as amended, or the Copyright Act of 1976, as amended, may be recorded with Customs for import protection.
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(b) Persons eligible to record. The copy- right owner, including any person who has acquired copyright ownership through an exclusive license, assign- ment, or otherwise, and claims actual or potential injury because of actual or contemplated importations of copies (or phonorecords) of eligible works, may file an application to record a copyright. ‘‘Copyright owner,’’ with re- spect to any one of the exclusive rights comprised in a copyright, refers to the owner of that particular right.
(c) Notice of recordation and other ac- tion. Applicants and recordants will be notified of the approval or denial of an application filed in accordance with § 133.32, § 133.35, § 133.36, or § 133.37.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 73–212, 38 FR 21397, Aug. 8, 1973; T.D. 87–40, 52 FR 9474, Mar. 25, 1987]
§ 133.32 Application to record copy- right.
An application to record a copyright to secure customs protection against the importation of infringing copies or phonorecords shall be in writing ad- dressed to the IPR & Restricted Mer- chandise Branch, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue, Washington, DC 20229, and shall include the following informa- tion:
(a) The name and complete address of the copyright owner or owners;
(b) If the applicant is a person claim- ing actual or potential injury by rea- son of actual or contemplated importa- tions of copies or phonorecords of the eligible work, a statement setting forth the circumstances of such actual or potential injury;
(c) The country of manufacture of genuine copies or phonorecords of the protected work;
(d) The name and principal address of any foreign person or business entity authorized or licensed to use the pro- tected work, and a statement as to the exclusive rights authorized;
(e) The foreign title of the work, if different from the U.S. title; and
(f) In the case of an application to record a copyright in a sound record- ing, a statement setting forth the name(s) of the performing artist(s), and any other identifying names appearing on the surface of reproduction of the
sound recording, or its label or con- tainer.
[T.D. 87–40, 52 FR 9474, Mar. 25, 1987, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991; T.D. 99–27, 64 FR 13675, Mar. 22, 1999]
§ 133.33 Documents and fee to accom- pany application.
(a) Documents. The application for recordation shall be accompanied by the following documents:
(1) An ‘‘additional certificate’’ of copyright registration issued by the U.S. Copyright Office. If the name of the applicant differs from the name of the copyright owner identified in the certificate, the application shall be ac- companied by a certified copy of any assignment, exclusive license, or other document recorded in the U.S. Copy- right Office showing that the applicant has acquired copyright ownership in the copyright.
(2) Five photographic or other likenesses reproduced on paper ap- proximately 8″ × 101⁄2″ in size of any copyrighted work. An application shall be excepted from this requirement if it covers a work such as a book, maga- zine, periodical, or similar copyrighted matter readily identifiable by title and author or if it covers a sound record- ing. Five likenesses of a component part of a copyrighted work, together with the name or title, if any, by which the part depicted is identifiable, may accompany an application covering an entire copyrighted work.
(b) Fee. Each application shall be ac- companied by a fee of $190 for each copyright to be recorded. A check or money order shall be made payable to the United States Customs Service.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1973, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 84–133, 49 FR 26571, June 28, 1984; T.D. 87–40, 52 FR 9475, Mar. 25, 1987]
§ 133.34 Effective date, term, and can- cellation of recordation.
(a) Effective date. Recordation of copyright and protection thereunder shall be effective on the date an appli- cation for recordation is approved, as shown on the recordation notice issued by the United States Customs Service instructing Customs officers as to the terms and conditions of import protec- tion appropriate.
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(b) Term. The recordation of copy- right shall remain in effect for 20 years unless the copyright ownership of the recordant expires before that time. If the ownership expires in less than 20 years, recordation shall remain in ef- fect until the ownership expires. If the ownership has not expired after 20 years, recordation may be renewed as provided in § 133.37.
(c) Cancellation. Recordation of a copyright with the United States Cus- toms Service shall be canceled upon re- quest of the recordant, or if the reg- istration in the U.S. Copyright Office is finally canceled or revoked.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 87–40, 52 FR 9475, Mar. 25, 1987]
§ 133.35 Change of ownership of re- corded copyright.
(a) Application. If the ownership of a recorded copyright is transferred and the owner wishes to continue the rec- ordation with the CBP, he shall make written application to the IPR & Re- stricted Merchandise Branch as fol- lows:
(1) Comply, as appropriate, with § 133.32; and
(2) Describe any time limit on the rights of ownership transferred.
(b) Document and fee. The application shall be accompanied by:
(1) A certified copy of any assign- ment, exclusive license, or other docu- ment recorded in the U.S. Copyright Office showing the applicant has ac- quired an ownership interest in the copyright; and
(2) A fee of $80, which covers all copy- rights included in the application which have been previously recorded with the U.S. Customs and Border Pro- tection. A check or money order shall be made payable to the U.S. Customs and Border Protection.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.36 Change in name of owner of recorded copyright.
If there is a change in the name of the owner of a recorded copyright, but no transfer of ownership, written no- tice specifying the change shall be given to the IPR & Restricted Mer-
chandise Branch accompanied by the following:
(a) A certified copy of any document recorded in the U.S. Copyright Office showing the change in the name of the owner; and
(b) Payment of a fee of $80, which covers all copyrights included in the application which have been previously recorded with the CBP. A check or money order shall be made payable to U.S. Customs and Border Protection.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75–160, 40 FR 28791, July 9, 1975; T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
§ 133.37 Renewal of copyright recorda- tion.
(a) Term of renewal. If a recorded copyright has a term which exceeds the original 20-year recordation, continued Customs protection may be obtained by renewing the recordation. The re- newed recordation shall remain in ef- fect for 20 years, unless the recordant’s copyright ownership expires sooner, in which case it shall remain in effect until the ownership expires. There is no limit to the number of times rec- ordation of a subsisting copyright may be renewed.
(b) Application for renewal. An appli- cation to renew recordation shall be made no later than 3 months before the date the recordation then in effect ex- pires. The application shall be in writ- ing addressed to the IPR & Restricted Merchandise Branch.
(c) Materials to be submitted with appli- cation. An application to renew Cus- toms recordation shall include:
(1) Proof that the recordant’s copy- right ownership is valid. The proof re- quired shall vary with the date that the work was first copyrighted as fol- lows:
(i) Works in which copyright subsists on or after January 1, 1978. An affidavit signed by the recordant attesting to the continued validity of the copy- right, stating the date the copyright was registered with the U.S. Copyright Office, whether the author of the work is still alive and, if not, the date of his death, and any additional information that Customs may require of the recordant.
(ii) Works under statutory copyright on December 31, 1977. If the copyright is
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still in its first term when recordation expires, a certificate of registration issued by the U.S. Copyright Office or, if the copyright has been renewed, a certificate of renewal registration issued by the U.S. Copyright Office.
(2) A statement describing any change of ownership or name of owner, in compliance with §§ 133.35 and 133.36, and any change of address of the owner.
(3) Payment of a fee of $80. A check or money order shall be made payable to the U.S. Customs and Border Protec- tion.
(d) Untimely application. If the recordant fails to submit a renewal ap- plication at least 3 months before the recordation expires, he may not renew the recordation. The recordant shall be required to reapply to record the copy- right in accordance with the proce- dures and requirements of §§ 133.32 and 133.33.
[T.D. 87–40, 52 FR 9475, Mar. 25, 1987, as amended by T.D. 91–77, 56 FR 46115, Sept. 10, 1991]
Subpart E—Importations Violating Copyright Laws
§ 133.41 [Reserved]
§ 133.42 Infringing copies or phonorecords.
(a) Definition. Infringing copies or phonorecords are ‘‘piratical’’ articles, i.e., copies or phonorecords which are unlawfully made (without the author- ization of the copyright owner).
(b) Importation prohibited. The impor- tation of infringing copies or phonorecords of works copyrighted in the U.S. is prohibited by Customs. The importation of lawfully made copies is not a Customs violation.
(c) Seizure and forfeiture. The port di- rector shall seize any imported article which he determines is an infringing copy or phonorecord of a copyrighted work protected by Customs. The port director also shall seize an imported article if the importer does not deny a representation that the article is an in- fringing copy or phonorecord as pro- vided in § 133.43(a). In either case, the port director also shall institute for- feiture proceedings in accordance with part 162 of this chapter. Lawfully made
copies are not subject to seizure and forfeiture by Customs.
(d) Disclosure. When merchandise is seized under this section, Customs shall disclose to the owner of the copy- right the following information, if available, within 30 days, excluding weekends and holidays, of the date of the notice of seizure:
(1) The date of importation; (2) The port of entry; (3) A description of the merchandise; (4) The quantity involved; (5) The name and address of the man-
ufacturer; (6) The country of origin of the mer-
chandise; (7) The name and address of the ex-
porter; and (8) The name and address of the im-
porter. (e) Samples available to the copyright
owner. At any time following seizure of the merchandise, Customs may provide a sample of the suspect merchandise to the owner of the copyright for exam- ination, testing, or any other use in pursuit of a related private civil rem- edy for copyright infringement. To ob- tain a sample under this section, the copyright owner must furnish to Cus- toms a bond in the form and amount specified by the port director, condi- tioned to hold the United States, its of- ficers and employees, and the importer or owner of the imported article harm- less from any loss or damage resulting from the furnishing of a sample by Cus- toms to the copyright owner. Customs may demand the return of the sample at any time. The owner must return the sample to Customs upon demand or at the conclusion of the examination, testing, or other use in pursuit of a re- lated private civil remedy for copy- right infringement. In the event that the sample is damaged, destroyed, or lost while in the possession of the copyright owner, the owner shall, in lieu of return of the sample, certify to Customs that: ‘‘The sample described as [insert description] provided pursu- ant to 19 CFR 133.42(e) was (damaged/ destroyed/lost) during examination, testing, or other use.’’
(f) Referral to the U.S. Attorney. In the event that phonorecords or copies of motion pictures arrive in the U.S. bear- ing counterfeit labels, Customs officers
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should consider referring the violation to the U.S. Attorney, Department of Justice, for possible criminal prosecu- tion pursuant to the ‘‘Piracy and Coun- terfeiting Amendments Act of 1982’’ (18 U.S.C. 2318). This law provides a min- imum fine of $25,000 or imprisonment for not more than one year, or both, for willful infringement of a copyright for commercial advantage, and a max- imum fine of $250,000 or imprisonment for not more than 5 years, or both, where trafficking in counterfeit labels for phonorecords or copies of motion pictures or other audiovisual works is involved.
[T.D. 87–40, 52 FR 9475, Mar. 25, 1987; 52 FR 10668, Apr. 2, 1987, as amended by T.D. 97–30, 62 FR 19493, Apr. 22, 1997; T.D. 98–21, 63 FR 12000, Mar. 12, 1998]
§ 133.43 Procedure on suspicion of in- fringing copies.
(a) Notice to the importer. If the port director has any reason to believe that an imported article may be an infring- ing copy or phonorecord of a recorded copyrighted work, he shall withhold delivery, notify the importer of his ac- tion, and advise him that if the facts so warrant he may file a statement deny- ing that the article is in fact an in- fringing copy and alleging that the de- tention of the article will result in a material depreciation of its value, or a loss or damage to him. The port direc- tor also shall advise the importer that in the absence of receipt within 30 days of a denial by the importer that the ar- ticle constitutes an infringing copy or phonorecord, it shall be considered to be such a copy and shall be subject to seizure and forfeiture.
(b) Notice to copyright owner. If the importer of suspected infringing copies or phonorecords files a denial as pro- vided in paragraph (a) of this section, the port director shall furnish to the copyright owner the following informa- tion, if available, within 30 days, ex- cluding weekends and holidays, of the receipt of the importer’s denial:
(1) The date of importation; (2) The port of entry; (3) A description of the merchandise; (4) The quantity involved; (5) The country of origin of the mer-
chandise; and
(6) Notice that the imported article will be released to the importer unless, within 30 days from the date of the no- tice, the copyright owner files with the port director:
(i) A written demand for the exclu- sion from entry of the detained im- ported article; and
(ii) A bond, in the form and amount specified by the port director, condi- tioned to hold the importer or owner of the imported article harmless from any loss or damage resulting from Customs detention in the event the Commis- sioner or his designee determines that the article is not an infringing copy prohibited importation under section 602 of the Copyright Act of 1976 (17 U.S.C. 602) (See part 113 of this chap- ter).
(c) Samples available to the copyright owner. At any time following presen- tation of the merchandise for Customs examination, but prior to seizure, Cus- toms may provide a sample of the sus- pect merchandise to the owner of the copyright for examination or testing to assist in determining whether the arti- cle imported is a piratical copy. To ob- tain a sample under this section, the copyright owner must furnish Customs a bond in the form and amount speci- fied by the port director, conditioned to hold the United States, its officers and employees, and the importer or owner of the imported article harmless from any loss or damage resulting from the furnishing of a sample by Customs to the copyright owner. Customs may demand the return of the sample at any time. The owner must return the sample to Customs upon demand or at the conclusion of the examination or testing. In the event that the sample is damaged, destroyed, or lost while in the possession of the copyright owner, the owner shall, in lieu of return of the sample, certify to Customs that: ‘‘The sample described as [insert description] provided pursuant to 19 CFR 133.43(c) was (damaged/destroyed/lost) during examination or testing for copyright infringement.
(d) Result of action or inaction by copy- right owner. After notice to the copy- right owner that delivery is being with- held for imported articles suspected of being infringing copies of his recorded copyrighted work, the port director
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shall proceed in accordance with the following procedures:
(1) Demand and bond; exchange of briefs. If the copyright owner files a written demand for exclusion of the suspected infringing copies together with a proper bond, the port director shall promptly notify the importer and copyright owner that, during a speci- fied time limited to not more than 30 days, they may submit any evidence, legal briefs or other pertinent material to substantiate the claim or denial of infringement. The burden of proof shall be upon the party claiming that the ar- ticle is in fact an infringing copy.
(i) Exchange of briefs. Before timely submitting the additional evidence, legal briefs, or other pertinent mate- rial to Customs, pursuant to paragraph (c)(1) of this section, in regard to the disputed claim of infringement, the im- porter and the copyright owner shall first provide each other with a copy of all such information, including the im- porter’s denial of infringement and the copyright owner’s demand for exclu- sion. The subsequent submission of this information to Customs shall be ac- companied by a written statement con- firming that a copy has already been provided to the opposing party. The port director shall notify the importer and the copyright owner that they shall have additional time, not to ex- ceed 30 days, in which to provide a re- sponse to the arguments submitted by the opposing party, and that rebuttal arguments, timely submitted, shall be fully considered in the decision-making process. During this rebuttal period and before timely submitting the re- buttal arguments to Customs, the im- porter and the copyright owner shall first provide each other with a copy of all such material. The submission of this rebuttal material to Customs shall be accompanied by a written statement confirming that a copy has been pro- vided to the opposing party. The port director shall not accept any addi- tional material from the parties to sub- stantiate the claim or denial of in- fringement after the final 30-day rebut- tal period expires.
(ii) Decision. Upon receipt of rebuttal arguments, or 30 days after notifica- tion if no rebuttal arguments are sub- mitted, the port director shall forward
the entire file, together with a sample of each style that is considered pos- sibly infringing, to CBP Headquarters, (Attention: Border Security and Trade Compliance Division, Regulations and Rulings, Office of International Trade), for decision on the disputed claim of infringement. The final decision on the disputed claim of infringement shall be forwarded to the port director who shall send a copy thereof to the copy- right owner as well as to the importer.
(2) Infringement disclaimed or unsup- ported. If the copyright owner disclaims that the specified imported article is an infringing copy of his recorded copy- righted work, or fails to present suffi- cient evidence or proof to substantiate a claim of infringement, the port direc- tor shall release the detained shipment to the importer and all further impor- tations of the same article, by whom- ever imported, without further notice to the copyright owner.
(3) Failure to file demand or bond. If the copyright owner fails to file a writ- ten demand for exclusion and bond as required by paragraph (b) of this sec- tion, the port director shall release the detained articles to the importer and notify the copyright owner of the re- lease.
(4) Withdrawal of bond. Where the copyright owner has posted a bond on the grounds that the imported article is infringing, the copyright owner may not withdraw the bond until a decision on the issue of infringement has been reached.
(e) Alternative procedure: court action. As an alternative to the administrative procedure described in this section, the copyright owner, whether or not he has recorded his copyright with Customs, may seek a court order enjoining im- portation of the article. To obtain Cus- toms enforcement of an injunction, the copyright owner shall submit a cer- tified copy of the court order to the Commissioner of Customs, Attention: Office of the Chief Counsel, Wash- ington, DC 20229. In addition, if the copyright in question is not recorded with Customs, the copyright owner shall submit the $190 fee required by § 133.33(b) and, if the work is a three-di- mensional or other work not readily
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identifiable by title and author, 5 pho- tographic or other likenesses repro- duced on paper approximately 8″ × 101⁄2″ in size.
[T.D. 87–40, 52 FR 9475, Mar. 25, 1987, as amended by T.D. 93–87, 58 FR 57740, Oct. 27, 1993; T.D. 98–21, 63 FR 12000, Mar. 12, 1998; 63 FR 15088, Mar. 30, 1998]
§ 133.44 Decision of disputed claim of infringement.
(a) Claim of infringement sustained. Upon determination by the Commis- sioner of Customs or his designee that the detained article forwarded in ac- cordance with § 133.43(c)(1) is an in- fringing copy, the port director shall seize the imported article and institute forfeiture proceedings in accordance with part 162 of this chapter. The bond of the copyright owner shall be re- turned.
(b) Denial of infringement sustained. Upon determination by the Commis- sioner of Customs or his designee that the detained article forwarded in ac- cordance with § 133.43(c)(1) is not an in- fringing copy, the port director shall release all detained merchandise and transmit the copyright owner’s bond to the importer.
[T.D. 87–40, 52 FR 9476, Mar. 25, 1987, as amended by T.D. 97–30, 62 FR 19493, Apr. 22, 1997]
§ 133.45 [Reserved]
§ 133.46 Demand for redelivery of re- leased articles.
If it is determined that articles which have been released from Customs custody are subject to the prohibitions or restrictions of this subpart, the di- rector of the port of entry shall promptly make demand for redelivery of the articles under the terms of the bond on Customs Form 301, containing the bond conditions set forth in § 113.62 of this chapter, in accordance with § 141.113 of this chapter. If the articles are not redelivered to Customs cus- tody, a claim for liquidated damages shall be made in accordance with § 141.113(h) of this chapter.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973; T.D. 74–227, 39 FR 32023, Sept. 4, 1974; T.D. 84–213, 49 FR 41183, Oct. 19, 1984; T.D. 99– 64, 64 FR 43266, Aug. 10, 1999]
Subpart F—Procedure Following Forfeiture or Assessment of Liquidated Damages
§ 133.51 Relief from forfeiture or liq- uidated damages.
(a) Petition for relief. The importer may petition in accordance with parts 171 and 172 of this chapter for relief from, or cancellation of, a forfeiture incurred for violation of the trademark or copyright laws, or a claim for liq- uidated damages for failure to rede- liver released merchandise incurred under the provisions of § 133.24 or § 133.46.
(b) Conditioned relief. In appropriate cases, except for articles bearing a counterfeit trademark, relief from a forfeiture may be granted pursuant to a petition for relief upon the following conditions and such other conditions as may be specified by the appropriate Customs authority:
(1) The unlawfully imported or pro- hibited articles are exported or de- stroyed under Customs supervision and at no expense to the Government;
(2) All offending trademarks or trade names are removed or obliterated prior to release of the articles:
(3) In the case of books or periodicals manufactured abroad contrary to the terms of the ‘‘American manufacturing clause’’ of the Copyright Act of 1976 (17 U.S.C. 602, 603):
(i) Satisfactory evidence is submitted that a statement of abandonment has been filed and recorded in the Copy- right Office by the copyright owner in accordance with the procedures of the Copyright Office; and
(ii) The notice of copyright is com- pletely obliterated prior to release of the books or periodicals.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 79–159, 44 FR 31968, June 4, 1979; T.D. 87–40, 52 FR 9476, Mar. 25, 1987]
§ 133.52 Disposition of forfeited mer- chandise.
(a) Trademark (other than counterfeit) or trade name violations. Articles for- feited for violation of the trademark laws, other than articles bearing a counterfeit trademark, shall be dis- posed of in accordance with the proce- dures applicable to forfeitures for vio- lation of the Customs laws, after the
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removal or obliteration of the name, mark, or trademark by reason of which the articles were seized.
(b) Copyright violations. Articles for- feited for violation of the copyright laws shall be destroyed.
(c) Articles bearing a counterfeit trade- mark. Merchandise forfeited for viola- tion of the trademark laws shall be de- stroyed, unless it is determined that the merchandise is not unsafe or a haz- ard to health and the Commissioner of Customs or his designee has the writ- ten consent of the U.S. trademark owner, in which case the Commissioner of Customs or his designee may dispose of the merchandise, after obliteration of the trademark, where feasible, by:
(1) Delivery to any Federal, State, or local government agency that, in the opinion of the Commissioner or his des- ignee, has established a need for the merchandise; or
(2) Gift to any charitable institution that, in the opinion of the Commis- sioner or his designee, has established a need for the merchandise; or
(3) Sale at public auction, if more than 90 days has passed since the for- feiture and Customs has determined that no need for the merchandise has been established under paragraph (c)(1) or (c)(2) of this section.
[T.D. 79–159, 44 FR 31969, June 4, 1969, as amended by T.D. 94–90, 59 FR 55997, Nov. 10, 1994; T.D. 97–91, 62 FR 61232, Nov. 17, 1997]
§ 133.53 Refund of duty.
If a violation of the trademark or copyright laws is not discovered until after entry and deposit of estimated duty, the entry shall be endorsed with an appropriate notation and the duty refunded as an erroneous collection upon exportation or destruction of the prohibited articles in accordance with § 158.41 or § 158.45 of this chapter.
[T.D. 72–266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973]
PART 134—COUNTRY OF ORIGIN MARKING
Sec. 134.0 Scope.
Subpart A—General Provisions
134.1 Definitions. 134.2 Additional duties. 134.3 Delivery withheld until marked and
redelivery ordered. 134.4 Penalties for removal, defacement, or
alteration of marking.
Subpart B—Articles Subject to Marking
134.11 Country of origin marking required. 134.12 Foreign articles reshipped from a
U.S. possession. 134.13 Imported articles repacked or manip-
ulated. 134.14 Articles usually combined.
Subpart C—Marking of Containers or Holders
134.21 Special marking. 134.22 General rules for marking of con-
tainers or holders. 134.23 Containers or holders designed for or
capable of reuse. 134.24 Containers or holders not designed
for or capable of reuse. 134.25 Containers or holders for repacked J-
list articles and articles incapable of being marked.
134.26 Imported articles repacked or manip- ulated.
Subpart D—Exceptions to Marking Requirements
134.31 Requirements of other agencies. 134.32 General exceptions to marking re-
quirements. 134.33 J-List exceptions. 134.34 Certain repacked articles. 134.35 Articles substantially changed by
manufacture. 134.36 Inapplicability of marking exception
for articles processed by importer.
Subpart E—Method and Location of Marking Imported Articles
134.41 Methods and manner of marking. 134.42 Specific method may be required. 134.43 Methods of marking specific articles. 134.44 Location and other acceptable meth-
ods of marking. 134.45 Approved markings of country name. 134.46 Marking when name of country or lo-
cality other than country of origin ap- pears.
134.47 Souvenirs and articles marked with trademarks or trade names.
Subpart F—Articles Found Not Legally Marked
134.51 Procedure when importation found not legally marked.
134.52 Certificate of marking.
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19 CFR Ch. I (4–1–12 Edition)§ 134.0
134.53 Examination packages. 134.54 Articles released from Customs cus-
tody. 134.55 Compensation of Customs officers and
employees.
AUTHORITY: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Sched- ule of the United States), 1304, 1624.
SOURCE: T.D. 72–262, 37 FR 20318, Sept. 29, 1972, unless otherwise noted.
§ 134.0 Scope. This part sets forth regulations im-
plementing the country of origin mark- ing requirements and exceptions of sec- tion 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), together with certain marking provisions of the Har- monized Tariff Schedule of the United States (19 U.S.C. 1202). The con- sequences and procedures to be fol- lowed when articles are not legally marked are set forth in this part. The consequences and procedures to be fol- lowed when articles are falsely marked are set forth in § 11.13 of this chapter. Special marking and labeling require- ments are covered elsewhere. Provi- sions regarding the review and appeal rights of exporters and producers re- sulting from adverse North American Free Trade Agreement marking deci- sions are contained in subpart J of part 181 of this chapter.
[T.D. 81–290, 46 FR 58070, Nov. 30, 1981, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 94–1, 58 FR 69471, Dec. 30, 1993]
Subpart A—General Provisions § 134.1 Definitions.
When used in this part, the following terms shall have the meaning indi- cated:
(a) Country. ‘‘Country’’ means the po- litical entity known as a nation. Colo- nies, possessions, or protectorates out- side the boundaries of the mother country are considered separate coun- tries.
(b) Country of origin. ‘‘Country of ori- gin’’ means the country of manufac- ture, production, or growth of any arti- cle of foreign origin entering the United States. Further work or mate- rial added to an article in another country must effect a substantial transformation in order to render such other country the ‘‘country of origin’’
within the meaning of this part; how- ever, for a good of a NAFTA country, the NAFTA Marking Rules will deter- mine the country of origin.
(c) Foreign origin. ‘‘Foreign origin’’ refers to a country of origin other than the United States, as defined in para- graph (e) of this section, or its posses- sions and territories.
(d) Ultimate purchaser. The ‘‘ultimate purchaser’’ is generally the last person in the United States who will receive the article in the form in which it was imported; however, for a good of a NAFTA country, the ‘‘ultimate pur- chaser’’ is the last person in the United States who purchases the good in the form in which it was imported. It is not feasible to state who will be the ‘‘ulti- mate purchaser’’ in every cir- cumstance. The following examples may be helpful:
(1) If an imported article will be used in manufacture, the manufacturer may be the ‘‘ultimate purchaser’’ if he sub- jects the imported article to a process which results in a substantial trans- formation of the article, even though the process may not result in a new or different article, or for a good of a NAFTA country, a process which re- sults in one of the changes prescribed in the NAFTA Marking Rules as effect- ing a change in the article’s country of origin.
(2) If the manufacturing process is merely a minor one which leaves the identity of the imported article intact, the consumer or user of the article, who obtains the article after the proc- essing, will be regarded as the ‘‘ulti- mate purchaser.’’ With respect to a good of a NAFTA country, if the manu- facturing process does not result in one of the changes prescribed in the NAFTA Marking Rules as effecting a change in the article’s country of ori- gin, the consumer who purchases the article after processing will be re- garded as the ultimate purchaser.
(3) If an article is to be sold at retail in its imported form, the purchaser at retail is the ‘‘ultimate purchaser.’’
(4) If the imported article is distrib- uted as a gift the recipient is the ‘‘ul- timate purchaser’’, unless the good is a good of a NAFTA country. In that case, the purchaser of the gift is the ulti- mate purchaser.
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U.S. Customs and Border Protection, DHS; Treasury § 134.4
(e) United States. ‘‘United States’’ in- cludes all territories and possessions of the United States, except the Virgin Is- lands, American Samoa, Wake Island, Midway Islands, Kingman Reef, John- ston Island, and the island of Guam.
(f) Customs territory of the United States. ‘‘Customs territory of the United States,’’ as used in this chapter includes the States, the District of Co- lumbia, and the Commonwealth of Puerto Rico.
(g) Good of a NAFTA country. A ‘‘good of a NAFTA country’’ is an article for which the country of origin is Canada, Mexico or the United States as deter- mined under the NAFTA Marking Rules.
(h) NAFTA. ‘‘NAFTA’’ means the North American Free Trade Agreement entered into by the United States, Can- ada and Mexico on August 13, 1992.
(i) NAFTA country. ‘‘NAFTA coun- try’’ means the territory of the United States, Canada or Mexico, as defined in Annex 201.1 of the NAFTA.
(j) NAFTA Marking Rules. The ‘‘NAFTA Marking Rules’’ are the rules promulgated for purposes of deter- mining whether a good is a good of a NAFTA country.
(k) Conspicuous. ‘‘Conspicuous’’ means capable of being easily seen with normal handling of the article or container.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–1, 58 FR 69471, Dec. 30, 1993; T.D. 95–68, 60 FR 46362, Sept. 6, 1995]
§ 134.2 Additional duties.
Articles not marked as required by this part shall be subject to additional duties of 10 percent of the final ap- praised value unless exported or de- stroyed under Customs supervision prior to liquidation of the entry, as provided in 19 U.S.C. 1304(f). The 10 per- cent additional duty is assessable for failure either to mark the article (or container) to indicate the English name of the country of origin of the ar- ticle or to include words or symbols re- quired to prevent deception or mistake.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 90–51, 55 FR 28190, July 10, 1990]
§ 134.3 Delivery withheld until marked and redelivery ordered.
(a) Any imported article (or its con- tainer) held in CBP custody for inspec- tion, examination, or appraisement will not be delivered until marked with its country of origin, or until esti- mated duties payable under 19 U.S.C. 1304(f), or adequate security for those duties (see § 134.53(a)(2)), are deposited.
(b) The port director may demand re- delivery to CBP custody of any article (or its container) previously released which is found to be not marked le- gally with its country of origin for the purpose of requiring the article (or its container) to be properly marked. A de- mand for redelivery will be made, as required under § 141.113(a) of this chap- ter, not later than 30 days after—
(1) The date of entry, in the case of merchandise examined in public stores and places of arrival, such as docks, wharfs, or piers; or
(2) The date of examination, in the case of merchandise examined at the importer’s premises or such other ap- propriate places as determined by the port director.
(c) Nothing in this part shall be con- strued as excepting any article (or its container) from the particular require- ments of marking provided for in any other provision of law.
[T.D. 80–88, 45 FR 18921, Mar. 24, 1980, as amended by T.D. 90–51, 55 FR 28190, July 10, 1990; CBP Dec. 08-25, 73 FR 40726, July 16, 2008]
§ 134.4 Penalties for removal, deface- ment, or alteration of marking.
Any intentional removal, deface- ment, destruction, or alteration of a marking of the country of origin re- quired by section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), and this part in order to conceal this informa- tion may result in criminal penalties of up to $5,000 and/or imprisonment for 1 year, as provided in 19 U.S.C. 1304(h).
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 90–51, 55 FR 28191, July 10, 1990]
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19 CFR Ch. I (4–1–12 Edition)§ 134.11
Subpart B—Articles Subject to Marking
§ 134.11 Country of origin marking re- quired.
Unless excepted by law, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that every article of foreign origin (or its container) im- ported into the United States shall be marked in a conspicuous place as leg- ibly, indelibly, and permanently as the nature of the article (or container) will permit, in such manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article, at the time of importation into the Customs territory of the United States. Containers of ar- ticles excepted from marking shall be marked with the name of the country of origin of the article unless the con- tainer is also excepted from marking.
§ 134.12 Foreign articles reshipped from a U.S. possession.
Articles of foreign origin imported into any possession of the United States outside its Customs territory and reshipped to the United States are subject to all marking requirements applicable to like articles of foreign or- igin imported directly from a foreign country to the United States.
§ 134.13 Imported articles repacked or manipulated.
(a) Marking requirement. An article within the provisions of this section shall be marked with the name of the country of origin at the time the arti- cle is withdrawn for consumption un- less the article and its container are exempted from marking under provi- sions of subpart D of this part at the time of importation.
(b) Applicability. The provisions of this section are applicable to the fol- lowing articles:
(1) Articles repacked in a bonded warehouse under § 19.8 of this chapter;
(2) Articles manipulated under sec- tion 562, Tariff Act of 1930, as amended (19 U.S.C. 1562), and § 19.11 of this chap- ter;
(3) Articles manipulated, but not manufactured, in a foreign-trade zone under § 146.32 of this chapter.
§ 134.14 Articles usually combined.
(a) Articles combined before delivery to purchaser. When an imported article is of a kind which is usually combined with another article after importation but before delivery to an ultimate pur- chaser and the name indicating the country of origin of the article appears in a place on the article so that the name will be visible after such com- bining, the marking shall include, in addition to the name of the country of origin, words or symbols which shall clearly show that the origin indicated is that of the imported article only and not that of any other article with which the imported article may be combined after importation.
(b) Example. Labels and similar arti- cles so marked that the name of the country of origin of the label or article is visible after it is affixed to another article in this country shall be marked with additional descriptive words such as ‘‘Label made (or printed) in (name of country)’’ or words of similar meaning. See subpart C of this part for marking of bottles, drums, or other containers.
(c) Applicability. This section shall not apply to articles of a kind which are ordinarily so substantially changed in the United States that the articles in their changed condition become products of the United States. An arti- cle excepted from marking under sub- part D of this part is not within the scope of section 304(a)(2), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)(2)), and is not subject to the requirements of this section.
Subpart C—Marking of Containers or Holders
§ 134.21 Special marking.
This subpart includes only country of origin marking requirements and ex- ceptions under section 304(b), Tariff Act of 1930, as amended (19 U.S.C. 1304(b)), for containers or holders. Spe- cial marking may be required by the Internal Revenue Service on alcoholic beverage bottles and other require- ments may be imposed by reason of the nature of the contents by other Gov- ernment agencies.
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§ 134.22 General rules for marking of containers or holders.
(a) Contents excepted from marking. When an article is excepted from the marking requirements by subpart D of this part, the outermost container or holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the country of ori- gin of the article whether or not the article is marked to indicate its coun- try of origin.
(b) Containers or holders treated as im- ported articles. Containers or holders for imported merchandise which are sub- ject to treatment as imported articles under the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), shall be marked to indicate clearly the country of their own origin in addition to any marking which may be required to show the country of origin of their contents; however, no marking is re- quired for any good of a NAFTA coun- try which is a usual container.
(c) Containers or holders bearing a U.S. address. Containers or holders of im- ported merchandise bearing the name and address of an importer, distributor, or other person or company in the United States shall be marked in close proximity to the U.S. address to indi- cate clearly the country of origin of the contents with a marking such as ‘‘Contents made in France’’ or ‘‘Con- tents Product of Spain.’’
(d) Usual containers—(1) ‘‘Usual con- tainer’’ defined. For purposes of this subpart, a usual container means the container in which a good will ordi- narily reach its ultimate purchaser. Containers which are not included in the price of the goods with which they are sold, or which impart the essential character to the whole, or which have significant uses, or lasting value inde- pendent of the contents, will generally not be regarded as usual containers. However, the fact that a container is sturdy and capable of repeated use with its contents does not preclude it from being considered a usual container so long as it is the type of container in which its contents are ordinarily sold. A usual container may be any type of container, including one which is spe- cially shaped or fitted to contain a spe- cific good or set of goods such as a camera case or an eyeglass case, or
packing, storage and transportation materials.
(2) A good of a NAFTA country which is a usual container. A good of a NAFTA country which is a usual container, whether or not disposable and whether or not imported empty or filled, is not required to be marked with its own country of origin. If imported empty, the importer must be able to provide satisfactory evidence to Customs at the time of importation that it will be used only as a usual container (that it is to be filled with goods after importa- tion and that such container is of a type in which these goods ordinarily reach the ultimate purchaser).
(e) Exceptions. Containers or holders of imported articles are not required to be marked if:
(1) Excepted articles. They are con- tainers or holders of articles within the exceptions set forth in paragraph (f), (g), or (h) in § 134.32 or they are con- tainers of a good of a NAFTA country within the exceptions set forth in para- graph (e), (f), (g), (h), (i), (p) or (q) of § 134.32.
(2) Excepted containers or holders. The container or holder itself is within an exception set forth in subpart D of this part.
(3) To be filled by the importer. The container or holder is within the excep- tion set forth in § 134.24(c).
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–1, 58 FR 69471, Dec. 30, 1993]
§ 134.23 Containers or holders de- signed for or capable of reuse.
(a) Usual and ordinary reusable con- tainers or holders. Except for goods of a NAFTA country which are usual con- tainers, containers or holders designed for or capable of reuse after the con- tents have been consumed, whether im- ported full or empty, must be individ- ually marked to indicate the country of their own origin with a marking such as, ‘‘Container Made in (name of country).’’ Examples of the containers or holders contemplated are heavy duty steel drums, tanks, and other similar shipping, storage, transpor- tation containers or holders capable of reuse. These containers or holders are subject to the treatment specified in General Rule of Interpretation 5(b),
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19 CFR Ch. I (4–1–12 Edition)§ 134.24
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
(b) Other reusable containers or hold- ers. Containers or holders which give the whole importation its essential character, as described in General Rule of Interpretation 5(a) (19 U.S.C. 1202), must be individually marked to clearly indicate their own origin with a mark- ing such as, ‘‘Container made in (name of country).’’ Examples of the con- tainers contemplated are mustard jars reusable as beer mugs; shaving soap containers reusable as shaving mugs; fancy cologne bottles reusable as flow- er vases, and other containers which have a lasting value or decorative use.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89–1, 53 FR 51256, Dec. 21, 1988; T.D. 94–1, 58 FR 69471, Dec. 30, 1993]
§ 134.24 Containers or holders not de- signed for or capable of reuse.
(a) Containers ordinarily discarded after use. Disposable containers or hold- ers subject to the provisions of this section are the usual ordinary types of containers or holders, including cans, bottles, paper or polyethylene bags, pa- perboard boxes, and similar containers or holders which are ordinarily dis- carded after the contents have been consumed.
(b) Imported empty. Disposable con- tainers or holders imported for dis- tribution or sale are subject to treat- ment as imported articles in accord- ance with the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), and shall be marked to in- dicate clearly the country of their own origin. However, when the containers are packed and sold in multiple units (dozens, gross, etc.), this requirement ordinarily may be met by marking the outermost container which reaches the ultimate purchaser.
(c) Imported to be filled—(1) If un- marked. When disposable containers or holders or usual containers which are goods of a NAFTA country are im- ported by persons or firms who fill or package them with various products which they sell, these persons or firms are the ‘‘ultimate purchasers’’ of these containers or holders or usual con- tainers which are goods of a NAFTA country and they may be excepted from individual marking pursuant to 19
U.S.C. 1304(a)(3)(D). The outside wrap- pings or packages containing the con- tainers shall be clearly marked to indi- cate the country of origin.
(2) If marked. If the disposable con- tainers or holders or the usual con- tainers which are goods of a NAFTA country are marked with the country of origin at the time of importation and the marking will be visible after they are filled, the marking shall clearly indicate that the container only and not the contents were made in the named country. For example, bot- tles, drums, or other containers im- ported empty, to be filled in the United States, shall be marked with such words as ‘‘Bottle (or container) made in (name of country).’’
(d) Imported full—(1) When contents are excepted from marking. Usual dispos- able containers in use as such at the time of importation shall not be re- quired to be marked to show the coun- try of their own origin, but shall be marked to indicate the origin of their contents regardless of the fact that the contents are excepted from marking requirements; however, such marking is not required if the contents are ex- cepted from marking requirements under paragraph (f), (g), or (h) of § 134.32 or, in the case of a good of a NAFTA country, under paragraph (e), (f), (g), (h), (i), (p) or (q) of that section.
(2) Sealed containers or holders. Dis- posable containers or holders of im- ported merchandise, which are sold without normally being opened by the ultimate purchaser (e.g., individually wrapped soap bars or tennis balls in a vacuum sealed can), shall be marked to indicate the country of origin of their contents.
(3) Unsealed containers. Unsealed dis- posable containers of imported mer- chandise normally unopened by the ul- timate purchaser, may be excepted from marking if the article is so marked that the country of origin is clearly visible without unpacking the container. However, if the container is normally opened by the ultimate pur- chaser prior to purchase, only the arti- cle need be marked.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 94–1, 58 FR 69471, Dec. 30, 1993]
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U.S. Customs and Border Protection, DHS; Treasury § 134.26
§ 134.25 Containers or holders for re- packed J-list articles and articles incapable of being marked.
(a) Certification requirements. If an ar- ticle subject to these requirements is intended to be repacked in new con- tainers for sale to an ultimate pur- chaser after its release from Customs custody, or if the port director having custody of the article, has reason to be- lieve such article will be repacked after its release, the importer shall certify to the port director that: (1) If the im- porter does the repacking, the new con- tainer shall be marked to indicate the country of origin of the article in ac- cordance with the requirements of this part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or trans- feree, in writing, at the time of sale or transfer, that any repacking of the ar- ticle must conform to these require- ments. The importer, or his authorized agent, shall sign the following state- ment.
CERTIFICATE OF MARKING—REPACKED J-LIST ARTICLES AND ARTICLES INCAPABLE OF BEING MARKED
(Port of entry) lllllllllllllll I, of , certify that if the arti-
cle(s) covered by this entry (entry no.(s) dated ), is (are) repacked in a new con- tainer(s), while still in my possession, the new containers, unless excepted, shall be marked in a conspicuous place as legibly, in- delibly, and permanently as the nature of the container(s) will permit, in such manner as to indicate the country of origin of the ar- ticle(s) to the ultimate purchaser(s) in ac- cordance with the requirements of 19 U.S.C. 1304 and 19 CFR part 134. I further certify that if the article(s) is (are) intended to be sold or transferred by me to a subsequent purchaser or repacker, I will notify such pur- chaser or transferee, in writing, at the time of sale or transfer, of the marking require- ments. Date lllllllllllllllllllll Importer llllllllllllllllll
The certification statement may ap- pear as a typed or stamped statement on an appropriate entry document or commercial invoice, or on a preprinted attachment to such entry or invoice; or it may be submitted in blanket form to cover all importations of a particular product for a given period (e.g., cal- endar year). If the blanket procedure is
used, a certification must be filed at each port where the article is entered.
(b) Facsimile signatures. The certifi- cation statement may be signed by means of an authorized facsimile signa- ture.
(c) Time of filing. The certification statement shall be filed with the port director at the time of entry summary. If the certification is not available at that time, a bond shall be given for its production in accordance with § 141.66, Customs Regulations (19 CFR 141.66). In case of repeated failure to timely file the certification required under this section, the port director may decline to accept a bond for the missing docu- ment and demand redelivery of the merchandise under § 134.51, Customs Regulations (19 CFR 134.51).
(d) Notice to subsequent purchaser or repacker. If the article is sold or trans- ferred to a subsequent purchaser or re- packer the following notice shall be given to the purchaser or repacker:
NOTICE TO SUBSEQUENT PURCHASER OR REPACKER
These articles are imported. The require- ments of 19 U.S.C. 1304 and 19 CFR part 134 provide that the articles or their containers must be marked in a conspicuous place as legibly, indelibly and permanently as the na- ture of the article or container will permit, in such a manner as to indicate to an ulti- mate purchaser in the United States, the English name of the country of origin of the article.
(e) Duties and penalties. Failure to comply with the certification require- ments in paragraph (a) may subject the importer to a demand for liquidated damages under § 134.54(a) and for the additional duty under 19 U.S.C. 1304. Fraud or negligence by any person in furnishing the required certification may also result in a penalty under 19 U.S.C. 1592.
[T.D. 83–155, 48 FR 33863, July 26, 1983]
§ 134.26 Imported articles repacked or manipulated.
(a) Certification requirements. If an ar- ticle subject to these requirements is intended to be repacked in retail con- tainers (e.g., blister packs) after its re- lease from Customs custody, or if the port director having custody of the ar- ticle, has reason to believe such article will be repacked after its release, the
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19 CFR Ch. I (4–1–12 Edition)§ 134.31
importer shall certify to the port direc- tor that: (1) If the importer does the re- packing, he shall not obscure or con- ceal the country of origin marking ap- pearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this part; or (2) if the article is in- tended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of sale or transfer, that any repacking of the article must conform to these re- quirements. The importer, or his au- thorized agent, shall sign the following statement.
CERTIFICATE OF MARKING BY IMPORTER— REPACKED ARTICLES SUBJECT TO MARKING
(Port of entry) lllllllllllllll I, llll of llll, certify that if the ar-
ticle(s) covered by this entry (entry no.(s) ll dated ll), is (are) repacked in retail container(s) e.g., blister packs), while still in my possession, the new container(s) will not conceal or obscure the country of origin marking appearing on the article(s), or else the new container(s), unless excepted, shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the container(s) will permit, in such manner as to indicate the country of origin of the ar- ticle(s) to the ultimate purchaser(s) in ac- cordance with the requirements of 19 U.S.C. 1304 and 19 CFR part 134. I further certify that if the article(s) is (are) intended to be sold or transferred by me to a subsequent purchaser or repacker, I will notify such pur- chaser or transferee, in writing, at the time of sale or transfer, of the marking require- ments. Date lllllllllllllllllllll Importer llllllllllllllllll
The certification statement may ap- pear as a typed or stamped statement on an appropriate entry document or commercial invoice, or on a preprinted attachment to such entry or invoice; or it may be submitted in blanket form to cover all importations of a particular product for a given period (e.g., cal- endar year). If the blanket procedure is used, a certification must be filed at each port where the article(s) is en- tered.
(b) Facsimile signatures. The certifi- cation statement may be signed by means of an authorized facsimile signa- ture.
(c) Time of filing. The certification statement shall be filed with the port director at the time of entry summary. If the certification is not available at that time, a bond shall be given for its production in accordance with § 141.66, Customs Regulations (19 CFR 141.66). In case of repeated failure to timely file the certification required under this subsection, the port director may de- cline to accept a bond for the missing document and demand redelivery of the merchandise under § 134.51, Customs Regulations (19 CFR 134.51).
(d) Notice to subsequent purchaser or repacker. If the article is sold or trans- ferred to a subsequent purchaser or re- packer the following notice shall be given to the purchaser or repacker:
NOTICE TO SUBSEQUENT PURCHASER OR REPACKER
These articles are imported. The require- ments of 19 U.S.C. 1304 and 19 CFR part 134 provide that the articles in their containers must be marked in a conspicuous place as legibly, indelibly and permanently as the na- ture of the article or container will permit, in such a manner as to indicate to an ulti- mate purchaser in the United States, the English name of the country of origin of the article.
(e) Duties and penalties. Failure to comply with the certification require- ments in paragraph (a) may subject the importer to a demand for liquidated damages under § 134.54(a) and for the additional duty under 19 U.S.C. 1304. Fraud or negligence by any person in furnishing the required certification may also result in a penalty under 19 U.S.C. 1592.
(f) Exceptions. The requirements of this section do not apply to repack- aging in a container that can readily be opened for inspection by the ulti- mate purchaser in the United States, unless such container bears a U.S. ad- dress or other potentially misleading marking.
[T.D. 84–127, 49 FR 22795, June 1, 1984]
Subpart D—Exceptions to Marking Requirements
§ 134.31 Requirements of other agen- cies.
Nothing in this subpart shall be con- strued as excepting any article (or its
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container) from the particular require- ments of marking provided for in any other provision of any law, such as those of the Federal Trade Commis- sion, Food and Drug Administration, and other agencies.
§ 134.32 General exceptions to marking requirements.
The articles described or meeting the specified conditions set forth below are excepted from marking requirements (see subpart C of this part for marking of the containers):
(a) Articles that are incapable of being marked;
(b) Articles that cannot be marked prior to shipment to the United States without injury;
(c) Articles that cannot be marked prior to shipment to the United States except at an expense economically pro- hibitive of its importation;
(d) Articles for which the marking of the containers will reasonably indicate the origin of the articles;
(e) Articles which are crude sub- stances;
(f) Articles imported for use by the importer and not intended for sale in their imported or any other form;
(g) Articles to be processed in the United States by the importer or for his account otherwise than for the pur- pose of concealing the origin of such articles and in such manner that any mark contemplated by this part would necessarily be obliterated, destroyed, or permanently concealed;
(h) Articles for which the ultimate purchaser must necessarily know, or in the case of a good of a NAFTA country, must reasonably know, the country of origin by reason of the circumstances of their importation or by reason of the character of the articles even though they are not marked to indicate their origin;
(i) Articles which were produced more than 20 years prior to their im- portation into the United States;
(j) Articles entered or withdrawn from warehouse for immediate expor- tation or for transportation and expor- tation;
(k) Products of American fisheries which are free of duty;
(l) Products of possessions of the United States;
(m) Products of the United States ex- ported and returned;
(n) Articles exempt from duty under §§ 10.151 through 10.153, 145.31 or 145.32 of this chapter;
(o) Articles which cannot be marked after importation except at an expense that would be economically prohibitive unless the importer, producer, seller, or shipper failed to mark the articles before importation to avoid meeting the requirements of the law;
(p) Goods of a NAFTA country which are original works of art; and
(q) Goods of a NAFTA country which are provided for in subheading 6904.10 or heading 8541 or 8542 of the Har- monized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202).
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 73–135, 38 FR 13369, May 21, 1973; T.D. 73–175, 38 FR 17447, July 2, 1973; T.D. 94–1, 58 FR 69471, Dec. 30, 1993; T.D. 94– 4, 59 FR 140, Jan. 3, 1994; T.D. 96–48, 61 FR 28980, June 6, 1996]
§ 134.33 J-List exceptions. Articles of a class or kind listed
below are excepted from the require- ments of country of origin marking in accordance with the provisions of sec- tion 304(a)(3)(J), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)(3)(J)). How- ever, in the case of any article de- scribed in this list which is imported in a container, the outermost container in which the article ordinarily reaches the ultimate purchaser is required to be marked to indicate the origin of its contents in accordance with the re- quirements of subpart C of this part. All articles are listed in Treasury Deci- sions 49690, 49835, and 49896. A reference different from the foregoing indicates an amendment.
Articles References
Art, works of. Articles classified under sub-
headings 9810.00.15, 9810.00.25, 9810.00.40 and 9810.00.45, Harmonized Tariff Schedule of the United States.
T.D. 66–153.
Articles entered in good faith as antiques and rejected as unauthentic.
Bagging, waste. Bags, jute. Bands, steel. Beads, unstrung. Bearings, ball, 5⁄8–inch or less in
diameter. Blanks, metal, to be plated.
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Articles References
Bodies, harvest hat. Bolts, nuts, and washers. Briarwood in blocks. Briquettes, coal or coke. Buckles, 1 inch or less in greatest
dimension. Burlap. Buttons. Cards, playing. Cellophane and celluloid in
sheets, bands, or strips. Chemicals, drugs, medicinal, and
similar substances, when im- ported in capsules, pills, tablets, lozenges, or troches.
Cigars and cigarettes. Covers, straw bottle. Dies, diamond wire, unmounted. Dowels, wooden. Effects, theatrical. Eggs. Feathers. Firewood. Flooring, not further manufactured
than planed, tongued and grooved.
T.D.s 49750; 50366(6).
Flowers, artificial, except bunches.
Flowers, cut. Glass, cut to shape and size for
use in clocks, hand, pocket, and purse mirrors, and other glass of similar shapes and sizes, not including lenses or watch crystals.
Glides, furniture, except glides with prongs.
Hairnets. Hides, raw. Hooks, fish (except snelled fish
hooks). T.D. 50205(3).
Hoops (wood), barrel. Laths. Leather, except finished. Livestock. Lumber, sawed ............................. T.D.s 49750; 50366(6). Metal bars, except concrete rein-
forcement bars; billets, blocks, blooms; ingots; pigs; plates; sheets, except galvanized sheets; shafting; slabs; and metal in similar forms.
Mica not further manufactured than cut or stamped to dimen- sions, shape or form.
Monuments. Nails, spikes, and staples. Natural products, such as vegeta-
bles, fruits, nuts, berries, and live or dead animals, fish and birds; all the foregoing which are in their natural state or not advanced in any manner further than is necessary for their safe transportation.
Nets, bottle, wire. Paper, newsprint. Paper, stencil. Paper, stock. Parchment and vellum. Parts for machines imported from
same country as parts. Pickets (wood). Pins, tuning.
Articles References
Plants, shrubs and other nursery stock.
Plugs, tie. Poles, bamboo. Posts (wood), fence. Pulpwood. Rags (including wiping rags) Rails, joint bars, and tie plates
covered by subheadings 7302.10.10 through 7302.90.00, Harmonized Tariff Schedule of the United States.
Ribbon. Rivets. Rope, including wire rope; cord-
age; cords; twines, threads, and yarns.
Scrap and waste. Screws. Shims, track. Shingles (wood), bundles of (ex-
cept bundles of red-cedar shin- gles).
T.D. 49750.
Skins, fur, dressed or dyed. Skins, raw fur. Sponges. Springs, watch. Stamps, postage and revenue,
and other articles covered in subheadings 9704.00.00 and 4807.00.00, Harmonized Tariff Schedule of the United States.
T.D. 66–153.
Staves (wood), barrel. Steel, hoop. Sugar, maple. Ties (wood), railroad. Tides, not over 1 inch in greatest
dimension. Timbers, sawed. Tips, penholder. Trees, Christmas. Weights, analytical and precision
in sets T.D.s 49750; 51802.
Wicking, candle. Wire, except barbed.
[T.D. 72–262, 35 FR 20318, Sept. 29, 1972, as amended by T.D. 85–123, 50 FR 29954, July 23, 1985; T.D. 89–1, 53 FR 51256, Dec. 21, 1988; T.D. 95–79, 60 FR, 49752, Sept. 27, 1995]
§ 134.34 Certain repacked articles. (a) Exception for repacked articles. An
exception under § 134.32(d) may be au- thorized in the discretion of the port director for imported articles which are to be repacked after release from Customs custody under the following conditions:
(1) The containers in which the arti- cles are repacked will indicate the ori- gin of the articles to an ultimate pur- chaser in the United States.
(2) The importer arranges for super- vision of the marking of the containers by Customs officers at the importer’s expense or secures such verification, as may be necessary, by certification and
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the submission of a sample or other- wise, of the marking prior to the liq- uidation of the entry.
(b) Liquidation of entries. The liquida- tion of such entries may be deferred for a period of not more than 60 days from the date that a request for repacking is granted. Extensions of the 60-day defer- ral period may be granted by the port director in his discretion upon written application by the importer.
[T.D. 84–127, 49 FR 22795, June 1, 1984]
§ 134.35 Articles substantially changed by manufacture.
(a) Articles other than goods of a NAFTA country. An article used in the United States in manufacture which results in an article having a name, character, or use differing from that of the imported article, will be within the principle of the decision in the case of United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98). Under this principle, the manufacturer or processor in the United States who converts or combines the imported ar- ticle into the different article will be considered the ‘‘ultimate purchaser’’ of the imported article within the con- templation of section 304(a), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)), and the article shall be excepted from marking. The outermost containers of the imported articles shall be marked in accord with this part.
(b) Goods of a NAFTA country. A good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA Marking Rules is ex- cepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–1, 58 FR 69472, Dec. 30, 1993]
§ 134.36 Inapplicability of marking ex- ception for articles processed by importer.
An article which is to be processed in the United States by the importer or for his account shall not be considered to be within the specifications of sec- tion 304(a)(3)(G), of the Tariff Act of
1930, as amended (19 U.S.C. 1304(a)(3)(G)), if there is a reasonable method of marking which will not be obliterated, destroyed, or permanently concealed by such processing.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 97–72, 62 FR 44214, Aug. 20, 1997]
Subpart E—Method and Location of Marking Imported Articles
§ 134.41 Methods and manner of mark- ing.
(a) Suggested methods of marking. Sec- tion 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), requires that the marking of the country of origin be legible, indelible, and permanent. Defi- nite methods of marking are prescribed only for articles provided for in § 134.43 and for articles which are the objects of special rulings by the Commissioner of Customs. As a general rule, marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is sug- gested that the country of origin on metal articles be die sunk, molded in or etched; on earthenware or chinaware be glazed on in the process of firing; and on paper articles be imprinted.
(b) Degree of permanence and visibility. The degree of permanence should be at least sufficient to insure that in any reasonably foreseeable circumstance, the marking shall remain on the arti- cle (or its container) until it reaches the ultimate purchaser unless it is de- liberately removed. The marking must survive normal distribution and store handling. The ultimate purchaser in the United States must be able to find the marking easily and read it without strain.
§ 134.42 Specific method may be re- quired.
Marking merchandise by specific methods, such as die stamping, cast-in- the-mold lettering, etching, or engrav- ing, or cloth labels may be required by the Commissioner of Customs in ac- cordance with section 304(a), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)). Notices of such rulings shall be pub- lished in the FEDERAL REGISTER and the Customs Bulletin.
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§ 134.43 Methods of marking specific articles.
(a) Marking previously required by cer- tain provisions of the Tariff Act of 1930. Except for goods of a NAFTA country, articles of a class or kind listed below shall be marked legibly and conspicu- ously by die stamping, cast-in-the- mold lettering, etching (acid or elec- trolytic), engraving, or by means of metal plates which bear the prescribed marking and which are securely at- tached to the article in a conspicuous place by welding, screws, or rivets: knives, forks, steels, cleavers, clippers, shears, scissors, safety razors, blades for safety razors, surgical instruments, dental instruments, scientific and lab- oratory instruments, pliers, pincers, nippers and hinged hand tools for hold- ing and splicing wire, vacuum con- tainers, and parts of the above articles. Goods of a NAFTA country shall be marked by any reasonable method which is legible, conspicuous and per- manent as otherwise provided in this part.
(b) Watch, clock, and timing apparatus. The country of origin marking require- ments on watches, clocks, and timing apparatus are intensive and require special methods. (See § 11.9 of this chapter and Chapter 91, Additional U.S. Note 4, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)).
(c) Native American-style jewelry—(1) Definition. For the purpose of this pro- vision, Native American-style jewelry is jewelry which incorporates tradi- tional Native American design motifs, materials and/or construction and therefore looks like, and could possibly be mistaken for, jewelry made by Na- tive Americans.
(2) Method of marking. Except as pro- vided in 19 U.S.C. 1304(a)(3) and in para- graph (c)(3) of this section, Native American-style jewelry must be indeli- bly marked with the country of origin by cutting, die-sinking, engraving, stamping, or some other permanent method. The indelible marking must appear legibly on the clasp or in some other conspicuous location, or alter- natively, on a metal or plastic tag in- delibly marked with the country of ori- gin and permanently attached to the article.
(3) Exception. If it is technically or commercially infeasible to mark in the manner specified in paragraph (c)(2) of this section, or in the case of a good of a NAFTA country, the article may be marked by means of a string tag or ad- hesive label securely affixed, or some other similar method.
(d) Native American-style arts and crafts—(1) Definition. For the purpose of this provision, Native American-style arts and crafts are arts and crafts, such as pottery, rugs, kachina dolls, baskets and beadwork, which incorporate tradi- tional Native American design motifs, materials and/or construction and therefore look like, and could possibly be mistaken for, arts and crafts made by Native Americans.
(2) Method of Marking. Except as pro- vided for in 19 U.S.C. 1304(a)(3) and § 134.32 of this part, Native American- style arts and crafts must be indelibly marked with the country of origin by means of cutting, die-sinking, engrav- ing, stamping, or some other equally permanent method. On textile articles, such as rugs, a sewn in label is consid- ered to be an equally permanent meth- od.
(3) Exception. Where it is technically or commercially infeasible to mark in the manner specified in paragraph (d)(2) of this section, or in the case of a good of a NAFTA country, the article may be marked by means of a string tag or adhesive label securely affixed, or some other similar method.
(e) Assembled articles. Where an arti- cle is produced as a result of an assem- bly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such ar- ticle may be marked, as appropriate, in a manner such as the following:
(1) Assembled in (country of final as- sembly);
(2) Assembled in (country of final as- sembly) from components of (name of country or countries of origin of all components); or
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(3) Made in, or product of, (country of final assembly).
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 89–1, 53 FR 51255, Dec. 21, 1988; T.D. 89–88, 54 FR 39524, Sept. 27, 1989; T.D. 90–75, 55 FR 38317, Sept. 18, 1990; T.D. 90– 78, 55 FR 40166, Oct. 2, 1990; T.D. 94–1, 58 FR 69472, Dec. 30, 1993; T.D. 94–4, 59 FR 140, Jan. 3, 1994; T.D. 96–48, 61 FR 28980, June 6, 1996]
§ 134.44 Location and other acceptable methods of marking.
(a) Other acceptable methods. Except for articles described in § 134.43 of this part or the subject of a ruling by the Commissioner of Customs, any method of marking at any location insuring that country of origin will conspicu- ously appear on the article shall be ac- ceptable. Such marking must be legible and sufficiently permanent so that it will remain on the article (or its con- tainer when the container and not the article is required to be marked) until it reaches the ultimate purchaser un- less deliberately removed.
(b) Articles marked with paper sticker labels. If paper sticker or pressure sen- sitive labels are used, they must be af- fixed in a conspicuous place and so se- curely that unless deliberately re- moved they will remain on the article while it is in storage or on display and until it is delivered to the ultimate purchaser.
(c) Articles marked with tags. When tags are used, they must be attached in a conspicuous place and in a manner which assures that unless deliberately removed they will remain on the arti- cle until it reaches the ultimate pur- chaser.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–1, 58 FR 69472, Dec. 30, 1993]
§ 134.45 Approved markings of country name.
(a) Language. (1) Except as otherwise provided in paragraph (a)(2) of this sec- tion, the markings required by this part shall include the full English name of the country of origin, unless another marking to indicate the English name of the country of origin is specifically authorized by the Com- missioner of Customs. Notice of accept- able markings other than the full English name of the country of origin
shall be published in the FEDERAL REG- ISTER and the Customs Bulletin.
(2) A good of a NAFTA country may be marked with the name of the coun- try of origin in English, French or Spanish.
(b) Abbreviations and variant spellings. Abbreviations which unmistakably in- dicate the name of a country, such as ‘‘Gt. Britain’’ for ‘‘Great Britain’’ or ‘‘Luxemb’’ and ‘‘Luxembg’’ for ‘‘Lux- embourg’’ are acceptable. Variant spellings which clearly indicate the English name of the country of origin, such as ‘‘Brasil’’ for ‘‘Brazil’’ and ‘‘Italie’’ for ‘‘Italy,’’ are acceptable.
(c) Adjectival form. The adjectival form of the name of a country shall be accepted as a proper indication of the name of the country of origin of im- ported merchandise provided the adjec- tival form of the name does not appear with other words so as to refer to a kind or species of product. For exam- ple, such terms as ‘‘English walnuts’’ or ‘‘Brazil nuts’’ are unacceptable.
(d) Colonies, possessions, or protector- ates. The name of a colony, possession, or protectorate outside the boundaries of the mother country shall usually be considered acceptable marking. When the Commissioner of Customs finds that the name is not sufficiently well known to insure that the ultimate pur- chasers will be fully informed of the country of origin, or where the name appearing alone may cause confusion, deception, or mistake, clarifying words shall be required. In such cases, the Commissioner of Customs shall specify in decisions published in the FEDERAL REGISTER and the Customs Bulletin the additional wording to be used in con- junction with the name of the colony, possession, or protectorate.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–1, 58 FR 69472, Dec. 30, 1993]
§ 134.46 Marking when name of coun- try or locality other than country of origin appears.
In any case in which the words ‘‘United States,’’ or ‘‘American,’’ the letters ‘‘U.S.A.,’’ any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or
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locality other than the country or lo- cality in which the article was manu- factured or produced appear on an im- ported article or its container, and those words, letters or names may mis- lead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by ‘‘Made in,’’ ‘‘Product of,’’ or other words of similar meaning.
[T.D. 97–72, 62 FR 44214, Aug. 20, 1997]
§ 134.47 Souvenirs and articles marked with trademarks or trade names.
When as part of a trademark or trade name or as part of a souvenir marking, the name of a location in the United States or ‘‘United States’’ or ‘‘Amer- ica’’ appear, the article shall be leg- ibly, conspicuously, and permanently marked to indicate the name of the country of origin of the article pre- ceded by ‘‘Made in,’’ ‘‘Product of,’’ or other similar words, in close proximity or in some other conspicuous location.
Subpart F—Articles Found Not Legally Marked
§ 134.51 Procedure when importation found not legally marked.
(a) Notice to mark or redeliver. When articles or containers are found upon examination not to be legally marked, the port director shall notify the im- porter on Customs Form 4647 to ar- range with the port director’s office to properly mark the article or con- tainers, or to return all released arti- cles to Customs custody for marking, exportation, or destruction.
(b) Identification of articles. When an imported article which is not legally marked is to be exported, destroyed, or marked under Customs supervision, the identity of the imported article shall be established to the satisfaction of the port director.
(c) Supervision. Verification of mark- ing, exportation, or destruction of arti- cles found not to be legally marked shall be at the expense of the importer and shall be performed under Customs supervision unless the port director ac-
cepts a certificate of marking as pro- vided for in § 134.52 in lieu of marking under Customs supervision.
§ 134.52 Certificate of marking.
(a) Applicability. Port directors may accept certificates of marking sup- ported by samples of articles required to be marked, for which Customs Form 4647 was issued, from importers or from actual owners complying with the pro- vision of § 141.20 of this chapter, to cer- tify that marking of the country of ori- gin on imported articles as required by this part has been accomplished.
(b) Filing of certificates of marking. The certificates of marking shall be filed in duplicate with the port direc- tor, and a sample of the marked mer- chandise shall accompany the certifi- cate. The port director may waive the production of the marked sample when he is satisfied that the submission of such sample is impracticable.
(c) Notice of acceptance. The port di- rector shall notify the importer or ac- tual owner when the certificate of marking is accepted. Such notice of ac- ceptance may be granted on the dupli- cate copy of the certificate of marking by use of a stamped notation of accept- ance. The port director is authorized to spot check the marking of articles on which a certificate has been filed. If a spot check is performed, the approved copy of the certificate, if approval is granted, shall be returned to the im- porter or actual owner after the spot check is completed.
(d) Filing of false certificate of marking. If a false certificate of marking is filed with the port director indicating that goods have been properly marked when in fact they have not been so marked, a seizure shall be made or claim for monetary penalty reported under sec- tion 592, Tariff Act of 1930, as amended (19 U.S.C. 1592). In addition, in cases in- volving, willful deceit, a criminal case report may be made charging a viola- tion of section 1001, title 18, United States Code, which provides for a fine up to $10,000 and/or imprisonment up to 5 years for anyone who willfully con- ceals a material fact or uses any docu- ment knowing the same to contain any
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false or fraudulent statement in con- nection with any matter within the ju- risdiction of an agency of the United States.
(e) Authority to require physical super- vision when deemed necessary. The port director may require physical super- vision of marking as specified in § 134.51(c) in those cases in which he de- termines that such action is necessary to insure compliance with this part. In such cases the expenses of the Customs officer shall be reimbursed to the Gov- ernment as provided for in § 134.55.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 73–175, 38 FR 17447, July 2, 1973; T.D. 84–18, 49 FR 1678, Jan. 13, 1984]
§ 134.53 Examination packages.
(a) Site of marking—(1) Customs cus- tody. Articles (or containers) in exam- ination packages may be marked by the importer at the place where they have been discharged from the import- ing or bonded carrier or in the public stores.
(2) Importer’s premises or elsewhere. If it is impracticable to mark the articles (or containers) in examination pack- ages as provided in paragraph (a)(1) of this section, the merchandise may be turned over to the importer after the amount of duty, estimated to be pay- able under 19 U.S.C. 1304(f) has been de- posited to insure compliance with the marking requirements and the pay- ment of any additional expense which will be incurred on account of Customs supervision. (See § 134.55.) The port di- rector may at his discretion accept the bond on Customs Form 301, containing the basic importation and entry bond conditions set forth in § 113.62 of this chapter as security for the require- ments of 19 U.S.C. 1304 (f) and (g).
(b) Failure to export, destroy, or prop- erly mark merchandise in examination packages. If the articles (or containers) in examination packages are not ex- ported, destroyed, or properly marked by the importer within a reasonable time (not more than 30 days), they shall be sent to general-order stores for disposition in accordance with part 127 of this chapter, unless covered by a warehouse entry. If covered by a ware- house entry, they shall be sent to the warehouse containing the rest of the
shipment for marking prior to with- drawal.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 78–99, 43 FR 13061, Mar. 29, 1978; T.D. 84–213, 49 FR 41183, Oct. 19, 1984; T.D. 90–51, 55 FR 28191, July 10, 1990]
§ 134.54 Articles released from Cus- toms custody.
(a) Demand for liquidated damages. If within 30 days from the date of the no- tice of redelivery, or such additional period as the port director may allow for good cause shown, the importer does not properly mark or redeliver all merchandise previously released to him, the port director shall demand payment of liquidated damages in- curred under the bond in an amount equal to the entered value of the arti- cles not properly marked or redeliv- ered.
(b) Failure to petition for relief. A writ- ten petition addressed to the Commis- sioner of Customs for relief from the payment of liquidated damages may be filed with the Fines, Penalties, and Forfeitures Officer in accord with part 172 of this chapter.
(c) Relief from full liquidated damages. Any relief from the payment of the full liquidated damages incurred will be contingent upon the deposit of the marking duty required by 19 U.S.C. 1304(f), and the satisfaction of the Fines, Penalties, and Forfeitures Offi- cer that the importer was not guilty of bad faith in permitting the illegally marked articles to be distributed, has been diligent in attempting to secure compliance with the marking require- ments, and has attempted by all rea- sonable means to effect redelivery of the merchandise.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 79–159, 44 FR 31969, June 4, 1979; T.D. 83–217, 48 FR 48659, Oct. 20, 1983; T.D. 90–51, 55 FR 28191, July 10, 1990; T.D. 99– 27, 64 FR 13675, Mar. 22, 1999; T.D. 00–57, 65 FR 53575, Sept. 5, 2000]
§ 134.55 Compensation of Customs offi- cers and employees.
(a) Time for which compensation is charged. The time for which compensa- tion is charged shall include all periods devoted to supervision and all periods during which Customs officers or em- ployees are away from their regular
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19 CFR Ch. I (4–1–12 Edition)§ 134.55
posts of duty by reason of such assign- ment and for which compensation to such officers and employees is provided for by law.
(b) Applicability—(1) Official hours. The compensation of Customs Officers or employees assigned to supervise the exportation, destruction, or marking of articles so as to exempt them from the application of marking duties shall be computed in accordance with the provi- sions of §§ 24.16 or 24.17(a)(3), respec- tively, of this chapter when such super- vision is performed during a regularly- scheduled tour of duty.
(2) Overtime. When such supervision is performed by a Customs Officer or em- ployee in an overtime status, the com- pensation with respect to the overtime shall be computed in accordance with the provisions of § 24.16 or § 24.17, re- spectively, of this chapter.
(c) Expenses included. In formulating charges for expenses pertaining to su-
pervision of exportation, destruction, or marking, there shall be included all expenses of transportation, per diem allowance in lieu of subsistence, and all other expenses incurred by reason of such supervision from the time the Customs officer leaves his official sta- tion until he returns thereto.
(d) Services rendered for more than one importer. If the importations of more than one importer are concurrently su- pervised, the service rendered for each importer shall be regarded as a sepa- rate assignment, but the total amount of the compensation, and any expenses properly applicable to more than one importer, shall be equitably appor- tioned among the importers concerned.
[T.D. 72–262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94–74, 59 FR 46757, Sept. 12, 1994]
PARTS 135–140 [RESERVED]
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FINDING AIDS
A list of CFR titles, subtitles, chapters, subchapters and parts and an alphabet- ical list of agencies publishing in the CFR are included in the CFR Index and Finding Aids volume to the Code of Federal Regulations which is published sepa- rately and revised annually.
Table of CFR Titles and Chapters Alphabetical List of Agencies Appearing in the CFR Chapter I Subject Index List of CFR Sections Affected
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Table of CFR Titles and Chapters (Revised as of April 1, 2012)
Title 1—General Provisions
I Administrative Committee of the Federal Register (Parts 1—49)
II Office of the Federal Register (Parts 50—299)
III Administrative Conference of the United States (Parts 300—399)
IV Miscellaneous Agencies (Parts 400—500)
Title 2—Grants and Agreements
SUBTITLE A—OFFICE OF MANAGEMENT AND BUDGET GUIDANCE FOR GRANTS AND AGREEMENTS
I Office of Management and Budget Governmentwide Guidance for Grants and Agreements (Parts 2—199)
II Office of Management and Budget Circulars and Guidance (200— 299)
SUBTITLE B—FEDERAL AGENCY REGULATIONS FOR GRANTS AND AGREEMENTS
III Department of Health and Human Services (Parts 300— 399)
IV Department of Agriculture (Parts 400—499)
VI Department of State (Parts 600—699)
VII Agency for International Development (Parts 700—799)
VIII Department of Veterans Affairs (Parts 800—899)
IX Department of Energy (Parts 900—999)
XI Department of Defense (Parts 1100—1199)
XII Department of Transportation (Parts 1200—1299)
XIII Department of Commerce (Parts 1300—1399)
XIV Department of the Interior (Parts 1400—1499)
XV Environmental Protection Agency (Parts 1500—1599)
XVIII National Aeronautics and Space Administration (Parts 1800— 1899)
XX United States Nuclear Regulatory Commission (Parts 2000—2099)
XXII Corporation for National and Community Service (Parts 2200— 2299)
XXIII Social Security Administration (Parts 2300—2399)
XXIV Housing and Urban Development (Parts 2400—2499)
XXV National Science Foundation (Parts 2500—2599)
XXVI National Archives and Records Administration (Parts 2600—2699)
XXVII Small Business Administration (Parts 2700—2799)
XXVIII Department of Justice (Parts 2800—2899)
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Chap. Title 2—Grants and Agreements—Continued
XXX Department of Homeland Security (Parts 3000—3099)
XXXI Institute of Museum and Library Services (Parts 3100—3199)
XXXII National Endowment for the Arts (Parts 3200—3299)
XXXIII National Endowment for the Humanities (Parts 3300—3399)
XXXIV Department of Education (Parts 3400—3499)
XXXV Export-Import Bank of the United States (Parts 3500—3599)
XXXVII Peace Corps (Parts 3700—3799)
LVIII Election Assistance Commission (Parts 5800—5899)
Title 3—The President
I Executive Office of the President (Parts 100—199)
Title 4—Accounts
I Government Accountability Office (Parts 1—199)
II Recovery Accountability and Transparency Board (Parts 200— 299)
Title 5—Administrative Personnel
I Office of Personnel Management (Parts 1—1199)
II Merit Systems Protection Board (Parts 1200—1299)
III Office of Management and Budget (Parts 1300—1399)
V The International Organizations Employees Loyalty Board (Parts 1500—1599)
VI Federal Retirement Thrift Investment Board (Parts 1600—1699)
VIII Office of Special Counsel (Parts 1800—1899)
IX Appalachian Regional Commission (Parts 1900—1999)
XI Armed Forces Retirement Home (Parts 2100—2199)
XIV Federal Labor Relations Authority, General Counsel of the Fed- eral Labor Relations Authority and Federal Service Impasses Panel (Parts 2400—2499)
XV Office of Administration, Executive Office of the President (Parts 2500—2599)
XVI Office of Government Ethics (Parts 2600—2699)
XXI Department of the Treasury (Parts 3100—3199)
XXII Federal Deposit Insurance Corporation (Parts 3200—3299)
XXIII Department of Energy (Parts 3300—3399)
XXIV Federal Energy Regulatory Commission (Parts 3400—3499)
XXV Department of the Interior (Parts 3500—3599)
XXVI Department of Defense (Parts 3600— 3699)
XXVIII Department of Justice (Parts 3800—3899)
XXIX Federal Communications Commission (Parts 3900—3999)
XXX Farm Credit System Insurance Corporation (Parts 4000—4099)
XXXI Farm Credit Administration (Parts 4100—4199)
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Chap. Title 5—Administrative Personnel—Continued
XXXIII Overseas Private Investment Corporation (Parts 4300—4399)
XXXIV Securities and Exchange Commission (Parts 4400—4499)
XXXV Office of Personnel Management (Parts 4500—4599)
XXXVII Federal Election Commission (Parts 4700—4799)
XL Interstate Commerce Commission (Parts 5000—5099)
XLI Commodity Futures Trading Commission (Parts 5100—5199)
XLII Department of Labor (Parts 5200—5299)
XLIII National Science Foundation (Parts 5300—5399)
XLV Department of Health and Human Services (Parts 5500—5599)
XLVI Postal Rate Commission (Parts 5600—5699)
XLVII Federal Trade Commission (Parts 5700—5799)
XLVIII Nuclear Regulatory Commission (Parts 5800—5899)
XLIX Federal Labor Relations Authority (Parts 5900—5999)
L Department of Transportation (Parts 6000—6099)
LII Export-Import Bank of the United States (Parts 6200—6299)
LIII Department of Education (Parts 6300—6399)
LIV Environmental Protection Agency (Parts 6400—6499)
LV National Endowment for the Arts (Parts 6500—6599)
LVI National Endowment for the Humanities (Parts 6600—6699)
LVII General Services Administration (Parts 6700—6799)
LVIII Board of Governors of the Federal Reserve System (Parts 6800— 6899)
LIX National Aeronautics and Space Administration (Parts 6900— 6999)
LX United States Postal Service (Parts 7000—7099)
LXI National Labor Relations Board (Parts 7100—7199)
LXII Equal Employment Opportunity Commission (Parts 7200—7299)
LXIII Inter-American Foundation (Parts 7300—7399)
LXIV Merit Systems Protection Board (Parts 7400—7499)
LXV Department of Housing and Urban Development (Parts 7500— 7599)
LXVI National Archives and Records Administration (Parts 7600—7699)
LXVII Institute of Museum and Library Services (Parts 7700—7799)
LXVIII Commission on Civil Rights (Parts 7800—7899)
LXIX Tennessee Valley Authority (Parts 7900—7999)
LXX Court Services and Offender Supervision Agency for the District of Columbia (Parts 8000—8099)
LXXI Consumer Product Safety Commission (Parts 8100—8199)
LXXIII Department of Agriculture (Parts 8300—8399)
LXXIV Federal Mine Safety and Health Review Commission (Parts 8400—8499)
LXXVI Federal Retirement Thrift Investment Board (Parts 8600—8699)
LXXVII Office of Management and Budget (Parts 8700—8799)
LXXX Federal Housing Finance Agency (Parts 9000—9099)
LXXXII Special Inspector General for Iraq Reconstruction (Parts 9200— 9299)
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Chap. Title 5—Administrative Personnel—Continued
XCVII Department of Homeland Security Human Resources Manage- ment System (Department of Homeland Security—Office of Personnel Management) (Parts 9700—9799)
Title 6—Domestic Security
I Department of Homeland Security, Office of the Secretary (Parts 1—99)
Title 7—Agriculture
SUBTITLE A—OFFICE OF THE SECRETARY OF AGRICULTURE (PARTS 0—26)
SUBTITLE B—REGULATIONS OF THE DEPARTMENT OF AGRICULTURE
I Agricultural Marketing Service (Standards, Inspections, Mar- keting Practices), Department of Agriculture (Parts 27—209)
II Food and Nutrition Service, Department of Agriculture (Parts 210—299)
III Animal and Plant Health Inspection Service, Department of Ag- riculture (Parts 300—399)
IV Federal Crop Insurance Corporation, Department of Agriculture (Parts 400—499)
V Agricultural Research Service, Department of Agriculture (Parts 500—599)
VI Natural Resources Conservation Service, Department of Agri- culture (Parts 600—699)
VII Farm Service Agency, Department of Agriculture (Parts 700— 799)
VIII Grain Inspection, Packers and Stockyards Administration (Fed- eral Grain Inspection Service), Department of Agriculture (Parts 800—899)
IX Agricultural Marketing Service (Marketing Agreements and Or- ders; Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900—999)
X Agricultural Marketing Service (Marketing Agreements and Or- ders; Milk), Department of Agriculture (Parts 1000—1199)
XI Agricultural Marketing Service (Marketing Agreements and Or- ders; Miscellaneous Commodities), Department of Agriculture (Parts 1200—1299)
XIV Commodity Credit Corporation, Department of Agriculture (Parts 1400—1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts 1500—1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600— 1699)
XVII Rural Utilities Service, Department of Agriculture (Parts 1700— 1799)
XVIII Rural Housing Service, Rural Business-Cooperative Service, Rural Utilities Service, and Farm Service Agency, Depart- ment of Agriculture (Parts 1800—2099)
XX Local Television Loan Guarantee Board (Parts 2200—2299)
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Chap. Title 7—Agriculture—Continued
XXV Office of Advocacy and Outreach, Department of Agriculture (Parts 2500—2599)
XXVI Office of Inspector General, Department of Agriculture (Parts 2600—2699)
XXVII Office of Information Resources Management, Department of Agriculture (Parts 2700—2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800— 2899)
XXIX Office of Energy Policy and New Uses, Department of Agri- culture (Parts 2900—2999)
XXX Office of the Chief Financial Officer, Department of Agriculture (Parts 3000—3099)
XXXI Office of Environmental Quality, Department of Agriculture (Parts 3100—3199)
XXXII Office of Procurement and Property Management, Department of Agriculture (Parts 3200—3299)
XXXIII Office of Transportation, Department of Agriculture (Parts 3300—3399)
XXXIV National Institute of Food and Agriculture (Parts 3400—3499)
XXXV Rural Housing Service, Department of Agriculture (Parts 3500— 3599)
XXXVI National Agricultural Statistics Service, Department of Agri- culture (Parts 3600—3699)
XXXVII Economic Research Service, Department of Agriculture (Parts 3700—3799)
XXXVIII World Agricultural Outlook Board, Department of Agriculture (Parts 3800—3899)
XLI [Reserved]
XLII Rural Business-Cooperative Service and Rural Utilities Service, Department of Agriculture (Parts 4200—4299)
Title 8—Aliens and Nationality
I Department of Homeland Security (Immigration and Naturaliza- tion) (Parts 1—499)
V Executive Office for Immigration Review, Department of Justice (Parts 1000—1399)
Title 9—Animals and Animal Products
I Animal and Plant Health Inspection Service, Department of Ag- riculture (Parts 1—199)
II Grain Inspection, Packers and Stockyards Administration (Packers and Stockyards Programs), Department of Agri- culture (Parts 200—299)
III Food Safety and Inspection Service, Department of Agriculture (Parts 300—599)
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Chap. Title 10—Energy
I Nuclear Regulatory Commission (Parts 0—199)
II Department of Energy (Parts 200—699)
III Department of Energy (Parts 700—999)
X Department of Energy (General Provisions) (Parts 1000—1099)
XIII Nuclear Waste Technical Review Board (Parts 1300—1399)
XVII Defense Nuclear Facilities Safety Board (Parts 1700—1799)
XVIII Northeast Interstate Low-Level Radioactive Waste Commission (Parts 1800—1899)
Title 11—Federal Elections
I Federal Election Commission (Parts 1—9099)
II Election Assistance Commission (Parts 9400—9499)
Title 12—Banks and Banking
I Comptroller of the Currency, Department of the Treasury (Parts 1—199)
II Federal Reserve System (Parts 200—299)
III Federal Deposit Insurance Corporation (Parts 300—399)
IV Export-Import Bank of the United States (Parts 400—499)
V Office of Thrift Supervision, Department of the Treasury (Parts 500—599)
VI Farm Credit Administration (Parts 600—699)
VII National Credit Union Administration (Parts 700—799)
VIII Federal Financing Bank (Parts 800—899)
IX Federal Housing Finance Board (Parts 900—999)
X Bureau of Consumer Financial Protection (Parts 1000—1099)
XI Federal Financial Institutions Examination Council (Parts 1100—1199)
XII Federal Housing Finance Agency (Parts 1200—1299)
XIII Financial Stability Oversight Council (Parts 1300—1399)
XIV Farm Credit System Insurance Corporation (Parts 1400—1499)
XV Department of the Treasury (Parts 1500—1599)
XVI Office of Financial Research (Parts 1600—1699)
XVII Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Development (Parts 1700—1799)
XVIII Community Development Financial Institutions Fund, Depart- ment of the Treasury (Parts 1800—1899)
Title 13—Business Credit and Assistance
I Small Business Administration (Parts 1—199)
III Economic Development Administration, Department of Com- merce (Parts 300—399)
IV Emergency Steel Guarantee Loan Board (Parts 400—499)
V Emergency Oil and Gas Guaranteed Loan Board (Parts 500—599)
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Chap. Title 14—Aeronautics and Space
I Federal Aviation Administration, Department of Transportation (Parts 1—199)
II Office of the Secretary, Department of Transportation (Aviation Proceedings) (Parts 200—399)
III Commercial Space Transportation, Federal Aviation Adminis- tration, Department of Transportation (Parts 400—1199)
V National Aeronautics and Space Administration (Parts 1200— 1299)
VI Air Transportation System Stabilization (Parts 1300—1399)
Title 15—Commerce and Foreign Trade
SUBTITLE A—OFFICE OF THE SECRETARY OF COMMERCE (PARTS 0— 29)
SUBTITLE B—REGULATIONS RELATING TO COMMERCE AND FOREIGN TRADE
I Bureau of the Census, Department of Commerce (Parts 30—199)
II National Institute of Standards and Technology, Department of Commerce (Parts 200—299)
III International Trade Administration, Department of Commerce (Parts 300—399)
IV Foreign-Trade Zones Board, Department of Commerce (Parts 400—499)
VII Bureau of Industry and Security, Department of Commerce (Parts 700—799)
VIII Bureau of Economic Analysis, Department of Commerce (Parts 800—899)
IX National Oceanic and Atmospheric Administration, Department of Commerce (Parts 900—999)
XI Technology Administration, Department of Commerce (Parts 1100—1199)
XIII East-West Foreign Trade Board (Parts 1300—1399)
XIV Minority Business Development Agency (Parts 1400—1499)
SUBTITLE C—REGULATIONS RELATING TO FOREIGN TRADE AGREE- MENTS
XX Office of the United States Trade Representative (Parts 2000— 2099)
SUBTITLE D—REGULATIONS RELATING TO TELECOMMUNICATIONS AND INFORMATION
XXIII National Telecommunications and Information Administration, Department of Commerce (Parts 2300—2399)
Title 16—Commercial Practices
I Federal Trade Commission (Parts 0—999)
II Consumer Product Safety Commission (Parts 1000—1799)
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Chap. Title 17—Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1—199)
II Securities and Exchange Commission (Parts 200—399)
IV Department of the Treasury (Parts 400—499)
Title 18—Conservation of Power and Water Resources
I Federal Energy Regulatory Commission, Department of Energy (Parts 1—399)
III Delaware River Basin Commission (Parts 400—499)
VI Water Resources Council (Parts 700—799)
VIII Susquehanna River Basin Commission (Parts 800—899)
XIII Tennessee Valley Authority (Parts 1300—1399)
Title 19—Customs Duties
I U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury (Parts 0—199)
II United States International Trade Commission (Parts 200—299)
III International Trade Administration, Department of Commerce (Parts 300—399)
IV U.S. Immigration and Customs Enforcement, Department of Homeland Security (Parts 400—599)
Title 20—Employees’ Benefits
I Office of Workers’ Compensation Programs, Department of Labor (Parts 1—199)
II Railroad Retirement Board (Parts 200—399)
III Social Security Administration (Parts 400—499)
IV Employees’ Compensation Appeals Board, Department of Labor (Parts 500—599)
V Employment and Training Administration, Department of Labor (Parts 600—699)
VI Office of Workers’ Compensation Programs, Department of Labor (Parts 700—799)
VII Benefits Review Board, Department of Labor (Parts 800—899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900—999)
IX Office of the Assistant Secretary for Veterans’ Employment and Training Service, Department of Labor (Parts 1000—1099)
Title 21—Food and Drugs
I Food and Drug Administration, Department of Health and Human Services (Parts 1—1299)
II Drug Enforcement Administration, Department of Justice (Parts 1300—1399)
III Office of National Drug Control Policy (Parts 1400—1499)
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Chap. Title 22—Foreign Relations
I Department of State (Parts 1—199)
II Agency for International Development (Parts 200—299)
III Peace Corps (Parts 300—399)
IV International Joint Commission, United States and Canada (Parts 400—499)
V Broadcasting Board of Governors (Parts 500—599)
VII Overseas Private Investment Corporation (Parts 700—799)
IX Foreign Service Grievance Board (Parts 900—999)
X Inter-American Foundation (Parts 1000—1099)
XI International Boundary and Water Commission, United States and Mexico, United States Section (Parts 1100—1199)
XII United States International Development Cooperation Agency (Parts 1200—1299)
XIII Millennium Challenge Corporation (Parts 1300—1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations Authority; General Counsel of the Federal Labor Relations Authority; and the Foreign Service Impasse Disputes Panel (Parts 1400—1499)
XV African Development Foundation (Parts 1500—1599)
XVI Japan-United States Friendship Commission (Parts 1600—1699)
XVII United States Institute of Peace (Parts 1700—1799)
Title 23—Highways
I Federal Highway Administration, Department of Transportation (Parts 1—999)
II National Highway Traffic Safety Administration and Federal Highway Administration, Department of Transportation (Parts 1200—1299)
III National Highway Traffic Safety Administration, Department of Transportation (Parts 1300—1399)
Title 24—Housing and Urban Development
SUBTITLE A—OFFICE OF THE SECRETARY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (PARTS 0—99)
SUBTITLE B—REGULATIONS RELATING TO HOUSING AND URBAN DE- VELOPMENT
I Office of Assistant Secretary for Equal Opportunity, Department of Housing and Urban Development (Parts 100—199)
II Office of Assistant Secretary for Housing-Federal Housing Com- missioner, Department of Housing and Urban Development (Parts 200—299)
III Government National Mortgage Association, Department of Housing and Urban Development (Parts 300—399)
IV Office of Housing and Office of Multifamily Housing Assistance Restructuring, Department of Housing and Urban Develop- ment (Parts 400—499)
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Chap. Title 24—Housing and Urban Development—Continued
V Office of Assistant Secretary for Community Planning and De- velopment, Department of Housing and Urban Development (Parts 500—599)
VI Office of Assistant Secretary for Community Planning and De- velopment, Department of Housing and Urban Development (Parts 600—699) [Reserved]
VII Office of the Secretary, Department of Housing and Urban Devel- opment (Housing Assistance Programs and Public and Indian Housing Programs) (Parts 700—799)
VIII Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Section 8 Housing Assistance Programs, Section 202 Di- rect Loan Program, Section 202 Supportive Housing for the El- derly Program and Section 811 Supportive Housing for Persons With Disabilities Program) (Parts 800—899)
IX Office of Assistant Secretary for Public and Indian Housing, De- partment of Housing and Urban Development (Parts 900—1699)
X Office of Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Interstate Land Sales Registration Program) (Parts 1700—1799)
XII Office of Inspector General, Department of Housing and Urban Development (Parts 2000—2099)
XV Emergency Mortgage Insurance and Loan Programs, Depart- ment of Housing and Urban Development (Parts 2700—2799)
XX Office of Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Develop- ment (Parts 3200—3899)
XXIV Board of Directors of the HOPE for Homeowners Program (Parts 4000—4099)
XXV Neighborhood Reinvestment Corporation (Parts 4100—4199)
Title 25—Indians
I Bureau of Indian Affairs, Department of the Interior (Parts 1— 299)
II Indian Arts and Crafts Board, Department of the Interior (Parts 300—399)
III National Indian Gaming Commission, Department of the Inte- rior (Parts 500—599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700—799)
V Bureau of Indian Affairs, Department of the Interior, and Indian Health Service, Department of Health and Human Services (Part 900)
VI Office of the Assistant Secretary-Indian Affairs, Department of the Interior (Parts 1000—1199)
VII Office of the Special Trustee for American Indians, Department of the Interior (Parts 1200—1299)
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Chap. Title 26—Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1— End)
Title 27—Alcohol, Tobacco Products and Firearms
I Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury (Parts 1—399)
II Bureau of Alcohol, Tobacco, Firearms, and Explosives, Depart- ment of Justice (Parts 400—699)
Title 28—Judicial Administration
I Department of Justice (Parts 0—299)
III Federal Prison Industries, Inc., Department of Justice (Parts 300—399)
V Bureau of Prisons, Department of Justice (Parts 500—599)
VI Offices of Independent Counsel, Department of Justice (Parts 600—699)
VII Office of Independent Counsel (Parts 700—799)
VIII Court Services and Offender Supervision Agency for the District of Columbia (Parts 800—899)
IX National Crime Prevention and Privacy Compact Council (Parts 900—999)
XI Department of Justice and Department of State (Parts 1100— 1199)
Title 29—Labor
SUBTITLE A—OFFICE OF THE SECRETARY OF LABOR (PARTS 0—99)
SUBTITLE B—REGULATIONS RELATING TO LABOR
I National Labor Relations Board (Parts 100—199)
II Office of Labor-Management Standards, Department of Labor (Parts 200—299)
III National Railroad Adjustment Board (Parts 300—399)
IV Office of Labor-Management Standards, Department of Labor (Parts 400—499)
V Wage and Hour Division, Department of Labor (Parts 500—899)
IX Construction Industry Collective Bargaining Commission (Parts 900—999)
X National Mediation Board (Parts 1200—1299)
XII Federal Mediation and Conciliation Service (Parts 1400—1499)
XIV Equal Employment Opportunity Commission (Parts 1600—1699)
XVII Occupational Safety and Health Administration, Department of Labor (Parts 1900—1999)
XX Occupational Safety and Health Review Commission (Parts 2200—2499)
XXV Employee Benefits Security Administration, Department of Labor (Parts 2500—2599)
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Chap. Title 29—Labor—Continued
XXVII Federal Mine Safety and Health Review Commission (Parts 2700—2799)
XL Pension Benefit Guaranty Corporation (Parts 4000—4999)
Title 30—Mineral Resources
I Mine Safety and Health Administration, Department of Labor (Parts 1—199)
II Bureau of Safety and Environmental Enforcement, Department of the Interior (Parts 200—299)
IV Geological Survey, Department of the Interior (Parts 400—499)
V Bureau of Ocean Energy Management, Department of the Inte- rior (Parts 500—599)
VII Office of Surface Mining Reclamation and Enforcement, Depart- ment of the Interior (Parts 700—999)
XII Office of Natural Resources Revenue, Department of the Interior (Parts 1200—1299)
Title 31—Money and Finance: Treasury
SUBTITLE A—OFFICE OF THE SECRETARY OF THE TREASURY (PARTS 0—50)
SUBTITLE B—REGULATIONS RELATING TO MONEY AND FINANCE
I Monetary Offices, Department of the Treasury (Parts 51—199)
II Fiscal Service, Department of the Treasury (Parts 200—399)
IV Secret Service, Department of the Treasury (Parts 400—499)
V Office of Foreign Assets Control, Department of the Treasury (Parts 500—599)
VI Bureau of Engraving and Printing, Department of the Treasury (Parts 600—699)
VII Federal Law Enforcement Training Center, Department of the Treasury (Parts 700—799)
VIII Office of International Investment, Department of the Treasury (Parts 800—899)
IX Federal Claims Collection Standards (Department of the Treas- ury—Department of Justice) (Parts 900—999)
X Financial Crimes Enforcement Network, Department of the Treasury (Parts 1000—1099)
Title 32—National Defense
SUBTITLE A—DEPARTMENT OF DEFENSE
I Office of the Secretary of Defense (Parts 1—399)
V Department of the Army (Parts 400—699)
VI Department of the Navy (Parts 700—799)
VII Department of the Air Force (Parts 800—1099)
SUBTITLE B—OTHER REGULATIONS RELATING TO NATIONAL DE- FENSE
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909
Chap. Title 32—National Defense—Continued
XII Defense Logistics Agency (Parts 1200—1299)
XVI Selective Service System (Parts 1600—1699)
XVII Office of the Director of National Intelligence (Parts 1700—1799)
XVIII National Counterintelligence Center (Parts 1800—1899)
XIX Central Intelligence Agency (Parts 1900—1999)
XX Information Security Oversight Office, National Archives and Records Administration (Parts 2000—2099)
XXI National Security Council (Parts 2100—2199)
XXIV Office of Science and Technology Policy (Parts 2400—2499)
XXVII Office for Micronesian Status Negotiations (Parts 2700—2799)
XXVIII Office of the Vice President of the United States (Parts 2800— 2899)
Title 33—Navigation and Navigable Waters
I Coast Guard, Department of Homeland Security (Parts 1—199)
II Corps of Engineers, Department of the Army (Parts 200—399)
IV Saint Lawrence Seaway Development Corporation, Department of Transportation (Parts 400—499)
Title 34—Education
SUBTITLE A—OFFICE OF THE SECRETARY, DEPARTMENT OF EDU- CATION (PARTS 1—99)
SUBTITLE B—REGULATIONS OF THE OFFICES OF THE DEPARTMENT OF EDUCATION
I Office for Civil Rights, Department of Education (Parts 100—199)
II Office of Elementary and Secondary Education, Department of Education (Parts 200—299)
III Office of Special Education and Rehabilitative Services, Depart- ment of Education (Parts 300—399)
IV Office of Vocational and Adult Education, Department of Edu- cation (Parts 400—499)
V Office of Bilingual Education and Minority Languages Affairs, Department of Education (Parts 500—599)
VI Office of Postsecondary Education, Department of Education (Parts 600—699)
VII Office of Educational Research and Improvement, Department of Education [Reserved]
XI National Institute for Literacy (Parts 1100—1199)
SUBTITLE C—REGULATIONS RELATING TO EDUCATION
XII National Council on Disability (Parts 1200—1299)
Title 35 [Reserved]
Title 36—Parks, Forests, and Public Property
I National Park Service, Department of the Interior (Parts 1—199)
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Chap. Title 36—Parks, Forests, and Public Property—Continued
II Forest Service, Department of Agriculture (Parts 200—299)
III Corps of Engineers, Department of the Army (Parts 300—399)
IV American Battle Monuments Commission (Parts 400—499)
V Smithsonian Institution (Parts 500—599)
VI [Reserved]
VII Library of Congress (Parts 700—799)
VIII Advisory Council on Historic Preservation (Parts 800—899)
IX Pennsylvania Avenue Development Corporation (Parts 900—999)
X Presidio Trust (Parts 1000—1099)
XI Architectural and Transportation Barriers Compliance Board (Parts 1100—1199)
XII National Archives and Records Administration (Parts 1200—1299)
XV Oklahoma City National Memorial Trust (Parts 1500—1599)
XVI Morris K. Udall Scholarship and Excellence in National Environ- mental Policy Foundation (Parts 1600—1699)
Title 37—Patents, Trademarks, and Copyrights
I United States Patent and Trademark Office, Department of Commerce (Parts 1—199)
II Copyright Office, Library of Congress (Parts 200—299)
III Copyright Royalty Board, Library of Congress (Parts 300—399)
IV Assistant Secretary for Technology Policy, Department of Com- merce (Parts 400—499)
V Under Secretary for Technology, Department of Commerce (Parts 500—599)
Title 38—Pensions, Bonuses, and Veterans’ Relief
I Department of Veterans Affairs (Parts 0—199)
II Armed Forces Retirement Home (Parts 200—299)
Title 39—Postal Service
I United States Postal Service (Parts 1—999)
III Postal Regulatory Commission (Parts 3000—3099)
Title 40—Protection of Environment
I Environmental Protection Agency (Parts 1—1099)
IV Environmental Protection Agency and Department of Justice (Parts 1400—1499)
V Council on Environmental Quality (Parts 1500—1599)
VI Chemical Safety and Hazard Investigation Board (Parts 1600— 1699)
VII Environmental Protection Agency and Department of Defense; Uniform National Discharge Standards for Vessels of the Armed Forces (Parts 1700—1799)
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Chap. Title 41—Public Contracts and Property Management
SUBTITLE A—FEDERAL PROCUREMENT REGULATIONS SYSTEM [NOTE]
SUBTITLE B—OTHER PROVISIONS RELATING TO PUBLIC CONTRACTS
50 Public Contracts, Department of Labor (Parts 50–1—50–999)
51 Committee for Purchase From People Who Are Blind or Severely Disabled (Parts 51–1—51–99)
60 Office of Federal Contract Compliance Programs, Equal Employ- ment Opportunity, Department of Labor (Parts 60–1—60–999)
61 Office of the Assistant Secretary for Veterans’ Employment and Training Service, Department of Labor (Parts 61–1—61–999)
62-100 [Reserved]
SUBTITLE C—FEDERAL PROPERTY MANAGEMENT REGULATIONS SYSTEM
101 Federal Property Management Regulations (Parts 101–1—101–99)
102 Federal Management Regulation (Parts 102–1—102–299)
103-104 [Reserved]
105 General Services Administration (Parts 105–1—105–999)
109 Department of Energy Property Management Regulations (Parts 109–1—109–99)
114 Department of the Interior (Parts 114–1—114–99)
115 Environmental Protection Agency (Parts 115–1—115–99)
128 Department of Justice (Parts 128–1—128–99)
129-200 [Reserved]
SUBTITLE D—OTHER PROVISIONS RELATING TO PROPERTY MANAGE- MENT [RESERVED]
SUBTITLE E—FEDERAL INFORMATION RESOURCES MANAGEMENT REGULATIONS SYSTEM [RESERVED]
SUBTITLE F—FEDERAL TRAVEL REGULATION SYSTEM
300 General (Parts 300–1—300–99)
301 Temporary Duty (TDY) Travel Allowances (Parts 301–1—301–99)
302 Relocation Allowances (Parts 302–1—302–99)
303 Payment of Expenses Connected with the Death of Certain Em- ployees (Part 303–1—303–99)
304 Payment of Travel Expenses from a Non-Federal Source (Parts 304–1—304–99)
Title 42—Public Health
I Public Health Service, Department of Health and Human Serv- ices (Parts 1—199)
IV Centers for Medicare & Medicaid Services, Department of Health and Human Services (Parts 400—599)
V Office of Inspector General-Health Care, Department of Health and Human Services (Parts 1000—1999)
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Chap. Title 43—Public Lands: Interior
SUBTITLE A—OFFICE OF THE SECRETARY OF THE INTERIOR (PARTS 1—199)
SUBTITLE B—REGULATIONS RELATING TO PUBLIC LANDS
I Bureau of Reclamation, Department of the Interior (Parts 400— 999)
II Bureau of Land Management, Department of the Interior (Parts 1000—9999)
III Utah Reclamation Mitigation and Conservation Commission (Parts 10000—10099)
Title 44—Emergency Management and Assistance
I Federal Emergency Management Agency, Department of Home- land Security (Parts 0—399)
IV Department of Commerce and Department of Transportation (Parts 400—499)
Title 45—Public Welfare
SUBTITLE A—DEPARTMENT OF HEALTH AND HUMAN SERVICES (PARTS 1—199)
SUBTITLE B—REGULATIONS RELATING TO PUBLIC WELFARE
II Office of Family Assistance (Assistance Programs), Administra- tion for Children and Families, Department of Health and Human Services (Parts 200—299)
III Office of Child Support Enforcement (Child Support Enforce- ment Program), Administration for Children and Families, Department of Health and Human Services (Parts 300—399)
IV Office of Refugee Resettlement, Administration for Children and Families, Department of Health and Human Services (Parts 400—499)
V Foreign Claims Settlement Commission of the United States, Department of Justice (Parts 500—599)
VI National Science Foundation (Parts 600—699)
VII Commission on Civil Rights (Parts 700—799)
VIII Office of Personnel Management (Parts 800—899) [Reserved]
X Office of Community Services, Administration for Children and Families, Department of Health and Human Services (Parts 1000—1099)
XI National Foundation on the Arts and the Humanities (Parts 1100—1199)
XII Corporation for National and Community Service (Parts 1200— 1299)
XIII Office of Human Development Services, Department of Health and Human Services (Parts 1300—1399)
XVI Legal Services Corporation (Parts 1600—1699)
XVII National Commission on Libraries and Information Science (Parts 1700—1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800—1899)
XXI Commission on Fine Arts (Parts 2100—2199)
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Chap. Title 45—Public Welfare—Continued
XXIII Arctic Research Commission (Part 2301)
XXIV James Madison Memorial Fellowship Foundation (Parts 2400— 2499)
XXV Corporation for National and Community Service (Parts 2500— 2599)
Title 46—Shipping
I Coast Guard, Department of Homeland Security (Parts 1—199)
II Maritime Administration, Department of Transportation (Parts 200—399)
III Coast Guard (Great Lakes Pilotage), Department of Homeland Security (Parts 400—499)
IV Federal Maritime Commission (Parts 500—599)
Title 47—Telecommunication
I Federal Communications Commission (Parts 0—199)
II Office of Science and Technology Policy and National Security Council (Parts 200—299)
III National Telecommunications and Information Administration, Department of Commerce (Parts 300—399)
IV National Telecommunications and Information Administration, Department of Commerce, and National Highway Traffic Safe- ty Administration, Department of Transportation (Parts 400— 499)
Title 48—Federal Acquisition Regulations System
1 Federal Acquisition Regulation (Parts 1—99)
2 Defense Acquisition Regulations System, Department of Defense (Parts 200—299)
3 Health and Human Services (Parts 300—399)
4 Department of Agriculture (Parts 400—499)
5 General Services Administration (Parts 500—599)
6 Department of State (Parts 600—699)
7 Agency for International Development (Parts 700—799)
8 Department of Veterans Affairs (Parts 800—899)
9 Department of Energy (Parts 900—999)
10 Department of the Treasury (Parts 1000—1099)
12 Department of Transportation (Parts 1200—1299)
13 Department of Commerce (Parts 1300—1399)
14 Department of the Interior (Parts 1400—1499)
15 Environmental Protection Agency (Parts 1500—1599)
16 Office of Personnel Management, Federal Employees Health Benefits Acquisition Regulation (Parts 1600—1699)
17 Office of Personnel Management (Parts 1700—1799)
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Chap. Title 48—Federal Acquisition Regulations System—Continued
18 National Aeronautics and Space Administration (Parts 1800— 1899)
19 Broadcasting Board of Governors (Parts 1900—1999)
20 Nuclear Regulatory Commission (Parts 2000—2099)
21 Office of Personnel Management, Federal Employees Group Life Insurance Federal Acquisition Regulation (Parts 2100—2199)
23 Social Security Administration (Parts 2300—2399)
24 Department of Housing and Urban Development (Parts 2400— 2499)
25 National Science Foundation (Parts 2500—2599)
28 Department of Justice (Parts 2800—2899)
29 Department of Labor (Parts 2900—2999)
30 Department of Homeland Security, Homeland Security Acquisi- tion Regulation (HSAR) (Parts 3000—3099)
34 Department of Education Acquisition Regulation (Parts 3400— 3499)
51 Department of the Army Acquisition Regulations (Parts 5100— 5199)
52 Department of the Navy Acquisition Regulations (Parts 5200— 5299)
53 Department of the Air Force Federal Acquisition Regulation Supplement [Reserved]
54 Defense Logistics Agency, Department of Defense (Parts 5400— 5499)
57 African Development Foundation (Parts 5700—5799)
61 Civilian Board of Contract Appeals, General Services Adminis- tration (Parts 6100—6199)
63 Department of Transportation Board of Contract Appeals (Parts 6300—6399)
99 Cost Accounting Standards Board, Office of Federal Procure- ment Policy, Office of Management and Budget (Parts 9900— 9999)
Title 49—Transportation
SUBTITLE A—OFFICE OF THE SECRETARY OF TRANSPORTATION (PARTS 1—99)
SUBTITLE B—OTHER REGULATIONS RELATING TO TRANSPORTATION
I Pipeline and Hazardous Materials Safety Administration, De- partment of Transportation (Parts 100—199)
II Federal Railroad Administration, Department of Transportation (Parts 200—299)
III Federal Motor Carrier Safety Administration, Department of Transportation (Parts 300—399)
IV Coast Guard, Department of Homeland Security (Parts 400—499)
V National Highway Traffic Safety Administration, Department of Transportation (Parts 500—599)
VI Federal Transit Administration, Department of Transportation (Parts 600—699)
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Chap. Title 49—Transportation—Continued
VII National Railroad Passenger Corporation (AMTRAK) (Parts 700—799)
VIII National Transportation Safety Board (Parts 800—999)
X Surface Transportation Board, Department of Transportation (Parts 1000—1399)
XI Research and Innovative Technology Administration, Depart- ment of Transportation [Reserved]
XII Transportation Security Administration, Department of Home- land Security (Parts 1500—1699)
Title 50—Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Inte- rior (Parts 1—199)
II National Marine Fisheries Service, National Oceanic and Atmos- pheric Administration, Department of Commerce (Parts 200— 299)
III International Fishing and Related Activities (Parts 300—399)
IV Joint Regulations (United States Fish and Wildlife Service, De- partment of the Interior and National Marine Fisheries Serv- ice, National Oceanic and Atmospheric Administration, De- partment of Commerce); Endangered Species Committee Reg- ulations (Parts 400—499)
V Marine Mammal Commission (Parts 500—599)
VI Fishery Conservation and Management, National Oceanic and Atmospheric Administration, Department of Commerce (Parts 600—699)
CFR Index and Finding Aids
Subject/Agency Index
List of Agency Prepared Indexes
Parallel Tables of Statutory Authorities and Rules
List of CFR Titles, Chapters, Subchapters, and Parts
Alphabetical List of Agencies Appearing in the CFR
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Alphabetical List of Agencies Appearing in the CFR (Revised as of April 1, 2012)
Agency CFR Title, Subtitle or
Chapter
Administrative Committee of the Federal Register 1, I Administrative Conference of the United States 1, III Advisory Council on Historic Preservation 36, VIII Advocacy and Outreach, Office of 7, XXV African Development Foundation 22, XV
Federal Acquisition Regulation 48, 57 Agency for International Development 2, VII; 22, II
Federal Acquisition Regulation 48, 7 Agricultural Marketing Service 7, I, IX, X, XI Agricultural Research Service 7, V Agriculture Department 2, IV; 5, LXXIII
Advocacy and Outreach, Office of 7, XXV Agricultural Marketing Service 7, I, IX, X, XI Agricultural Research Service 7, V Animal and Plant Health Inspection Service 7, III; 9, I Chief Financial Officer, Office of 7, XXX Commodity Credit Corporation 7, XIV Economic Research Service 7, XXXVII Energy Policy and New Uses, Office of 2, IX; 7, XXIX Environmental Quality, Office of 7, XXXI Farm Service Agency 7, VII, XVIII Federal Acquisition Regulation 48, 4 Federal Crop Insurance Corporation 7, IV Food and Nutrition Service 7, II Food Safety and Inspection Service 9, III Foreign Agricultural Service 7, XV Forest Service 36, II Grain Inspection, Packers and Stockyards Administration 7, VIII; 9, II Information Resources Management, Office of 7, XXVII Inspector General, Office of 7, XXVI National Agricultural Library 7, XLI National Agricultural Statistics Service 7, XXXVI National Institute of Food and Agriculture 7, XXXIV Natural Resources Conservation Service 7, VI Operations, Office of 7, XXVIII Procurement and Property Management, Office of 7, XXXII Rural Business-Cooperative Service 7, XVIII, XLII, L Rural Development Administration 7, XLII Rural Housing Service 7, XVIII, XXXV, L Rural Telephone Bank 7, XVI Rural Utilities Service 7, XVII, XVIII, XLII, L Secretary of Agriculture, Office of 7, Subtitle A Transportation, Office of 7, XXXIII World Agricultural Outlook Board 7, XXXVIII
Air Force Department 32, VII Federal Acquisition Regulation Supplement 48, 53
Air Transportation Stabilization Board 14, VI Alcohol and Tobacco Tax and Trade Bureau 27, I Alcohol, Tobacco, Firearms, and Explosives, Bureau of 27, II AMTRAK 49, VII American Battle Monuments Commission 36, IV American Indians, Office of the Special Trustee 25, VII Animal and Plant Health Inspection Service 7, III; 9, I
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Agency CFR Title, Subtitle or
Chapter
Appalachian Regional Commission 5, IX Architectural and Transportation Barriers Compliance Board 36, XI Arctic Research Commission 45, XXIII Armed Forces Retirement Home 5, XI Army Department 32, V
Engineers, Corps of 33, II; 36, III Federal Acquisition Regulation 48, 51
Bilingual Education and Minority Languages Affairs, Office of 34, V Blind or Severely Disabled, Committee for Purchase from
People Who Are 41, 51
Broadcasting Board of Governors 22, V Federal Acquisition Regulation 48, 19
Bureau of Ocean Energy Management, Regulation, and Enforcement
30, II
Census Bureau 15, I Centers for Medicare & Medicaid Services 42, IV Central Intelligence Agency 32, XIX Chemical Safety and Hazardous Investigation Board 40, VI Chief Financial Officer, Office of 7, XXX Child Support Enforcement, Office of 45, III Children and Families, Administration for 45, II, III, IV, X Civil Rights, Commission on 5, LXVIII; 45, VII Civil Rights, Office for 34, I Court Services and Offender Supervision Agency for the
District of Columbia 5, LXX
Coast Guard 33, I; 46, I; 49, IV Coast Guard (Great Lakes Pilotage) 46, III Commerce Department 2, XIII; 44, IV; 50, VI
Census Bureau 15, I Economic Affairs, Under Secretary 37, V Economic Analysis, Bureau of 15, VIII Economic Development Administration 13, III Emergency Management and Assistance 44, IV Federal Acquisition Regulation 48, 13 Foreign-Trade Zones Board 15, IV Industry and Security, Bureau of 15, VII International Trade Administration 15, III; 19, III National Institute of Standards and Technology 15, II National Marine Fisheries Service 50, II, IV National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV, VI National Telecommunications and Information
Administration 15, XXIII; 47, III, IV
National Weather Service 15, IX Patent and Trademark Office, United States 37, I Productivity, Technology and Innovation, Assistant
Secretary for 37, IV
Secretary of Commerce, Office of 15, Subtitle A Technology, Under Secretary for 37, V Technology Administration 15, XI Technology Policy, Assistant Secretary for 37, IV
Commercial Space Transportation 14, III Commodity Credit Corporation 7, XIV Commodity Futures Trading Commission 5, XLI; 17, I Community Planning and Development, Office of Assistant
Secretary for 24, V, VI
Community Services, Office of 45, X Comptroller of the Currency 12, I Construction Industry Collective Bargaining Commission 29, IX Consumer Financial Protection Bureau 12, X Consumer Product Safety Commission 5, LXXI; 16, II Copyright Office 37, II Copyright Royalty Board 37, III Corporation for National and Community Service 2, XXII; 45, XII, XXV Cost Accounting Standards Board 48, 99 Council on Environmental Quality 40, V Court Services and Offender Supervision Agency for the
District of Columbia 5, LXX; 28, VIII
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Agency CFR Title, Subtitle or
Chapter
Customs and Border Protection 19, I Defense Contract Audit Agency 32, I Defense Department 2, XI; 5, XXVI; 32,
Subtitle A; 40, VII Advanced Research Projects Agency 32, I Air Force Department 32, VII Army Department 32, V; 33, II; 36, III, 48,
51 Defense Acquisition Regulations System 48, 2 Defense Intelligence Agency 32, I Defense Logistics Agency 32, I, XII; 48, 54 Engineers, Corps of 33, II; 36, III National Imagery and Mapping Agency 32, I Navy Department 32, VI; 48, 52 Secretary of Defense, Office of 2, XI; 32, I
Defense Contract Audit Agency 32, I Defense Intelligence Agency 32, I Defense Logistics Agency 32, XII; 48, 54 Defense Nuclear Facilities Safety Board 10, XVII Delaware River Basin Commission 18, III District of Columbia, Court Services and Offender Supervision
Agency for the 5, LXX; 28, VIII
Drug Enforcement Administration 21, II East-West Foreign Trade Board 15, XIII Economic Affairs, Under Secretary 37, V Economic Analysis, Bureau of 15, VIII Economic Development Administration 13, III Economic Research Service 7, XXXVII Education, Department of 2, XXXIV; 5, LIII
Bilingual Education and Minority Languages Affairs, Office of
34, V
Civil Rights, Office for 34, I Educational Research and Improvement, Office of 34, VII Elementary and Secondary Education, Office of 34, II Federal Acquisition Regulation 48, 34 Postsecondary Education, Office of 34, VI Secretary of Education, Office of 34, Subtitle A Special Education and Rehabilitative Services, Office of 34, III Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII Election Assistance Commission 2, LVIII; 11, II Elementary and Secondary Education, Office of 34, II Emergency Oil and Gas Guaranteed Loan Board 13, V Emergency Steel Guarantee Loan Board 13, IV Employee Benefits Security Administration 29, XXV Employees’ Compensation Appeals Board 20, IV Employees Loyalty Board 5, V Employment and Training Administration 20, V Employment Standards Administration 20, VI Endangered Species Committee 50, IV Energy, Department of 2, IX; 5, XXIII; 10, II,
III, X Federal Acquisition Regulation 48, 9 Federal Energy Regulatory Commission 5, XXIV; 18, I Property Management Regulations 41, 109
Energy, Office of 7, XXIX Engineers, Corps of 33, II; 36, III Engraving and Printing, Bureau of 31, VI Environmental Protection Agency 2, XV; 5, LIV; 40, I, IV,
VII Federal Acquisition Regulation 48, 15 Property Management Regulations 41, 115
Environmental Quality, Office of 7, XXXI Equal Employment Opportunity Commission 5, LXII; 29, XIV Equal Opportunity, Office of Assistant Secretary for 24, I Executive Office of the President 3, I
Administration, Office of 5, XV
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Agency CFR Title, Subtitle or
Chapter
Environmental Quality, Council on 40, V Management and Budget, Office of 2, Subtitle A; 5, III,
LXXVII; 14, VI; 48, 99 National Drug Control Policy, Office of 21, III National Security Council 32, XXI; 47, 2 Presidential Documents 3 Science and Technology Policy, Office of 32, XXIV; 47, II Trade Representative, Office of the United States 15, XX
Export-Import Bank of the United States 2, XXXV; 5, LII; 12, IV Family Assistance, Office of 45, II Farm Credit Administration 5, XXXI; 12, VI Farm Credit System Insurance Corporation 5, XXX; 12, XIV Farm Service Agency 7, VII, XVIII Federal Acquisition Regulation 48, 1 Federal Aviation Administration 14, I
Commercial Space Transportation 14, III Federal Claims Collection Standards 31, IX Federal Communications Commission 5, XXIX; 47, I Federal Contract Compliance Programs, Office of 41, 60 Federal Crop Insurance Corporation 7, IV Federal Deposit Insurance Corporation 5, XXII; 12, III Federal Election Commission 5, XXXVII; 11, I Federal Emergency Management Agency 44, I Federal Employees Group Life Insurance Federal Acquisition
Regulation 48, 21
Federal Employees Health Benefits Acquisition Regulation 48, 16 Federal Energy Regulatory Commission 5, XXIV; 18, I Federal Financial Institutions Examination Council 12, XI Federal Financing Bank 12, VIII Federal Highway Administration 23, I, II Federal Home Loan Mortgage Corporation 1, IV Federal Housing Enterprise Oversight Office 12, XVII Federal Housing Finance Agency 5, LXXX; 12, XII Federal Housing Finance Board 12, IX Federal Labor Relations Authority 5, XIV, XLIX; 22, XIV Federal Law Enforcement Training Center 31, VII Federal Management Regulation 41, 102 Federal Maritime Commission 46, IV Federal Mediation and Conciliation Service 29, XII Federal Mine Safety and Health Review Commission 5, LXXIV; 29, XXVII Federal Motor Carrier Safety Administration 49, III Federal Prison Industries, Inc. 28, III Federal Procurement Policy Office 48, 99 Federal Property Management Regulations 41, 101 Federal Railroad Administration 49, II Federal Register, Administrative Committee of 1, I Federal Register, Office of 1, II Federal Reserve System 12, II
Board of Governors 5, LVIII Federal Retirement Thrift Investment Board 5, VI, LXXVI Federal Service Impasses Panel 5, XIV Federal Trade Commission 5, XLVII; 16, I Federal Transit Administration 49, VI Federal Travel Regulation System 41, Subtitle F Financial Crimes Enforcement Network 31, X Financial Research Office 12, XVI Financial Stability Oversight Council 12, XIII Fine Arts, Commission on 45, XXI Fiscal Service 31, II Fish and Wildlife Service, United States 50, I, IV Food and Drug Administration 21, I Food and Nutrition Service 7, II Food Safety and Inspection Service 9, III Foreign Agricultural Service 7, XV Foreign Assets Control, Office of 31, V Foreign Claims Settlement Commission of the United States 45, V Foreign Service Grievance Board 22, IX
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Agency CFR Title, Subtitle or
Chapter
Foreign Service Impasse Disputes Panel 22, XIV Foreign Service Labor Relations Board 22, XIV Foreign-Trade Zones Board 15, IV Forest Service 36, II General Services Administration 5, LVII; 41, 105
Contract Appeals, Board of 48, 61 Federal Acquisition Regulation 48, 5 Federal Management Regulation 41, 102 Federal Property Management Regulations 41, 101 Federal Travel Regulation System 41, Subtitle F General 41, 300 Payment From a Non-Federal Source for Travel Expenses 41, 304 Payment of Expenses Connected With the Death of Certain
Employees 41, 303
Relocation Allowances 41, 302 Temporary Duty (TDY) Travel Allowances 41, 301
Geological Survey 30, IV Government Accountability Office 4, I Government Ethics, Office of 5, XVI Government National Mortgage Association 24, III Grain Inspection, Packers and Stockyards Administration 7, VIII; 9, II Harry S. Truman Scholarship Foundation 45, XVIII Health and Human Services, Department of 2, III; 5, XLV; 45,
Subtitle A, Centers for Medicare & Medicaid Services 42, IV Child Support Enforcement, Office of 45, III Children and Families, Administration for 45, II, III, IV, X Community Services, Office of 45, X Family Assistance, Office of 45, II Federal Acquisition Regulation 48, 3 Food and Drug Administration 21, I Human Development Services, Office of 45, XIII Indian Health Service 25, V Inspector General (Health Care), Office of 42, V Public Health Service 42, I Refugee Resettlement, Office of 45, IV
Homeland Security, Department of 2, XXX; 6, I; 8, I Coast Guard 33, I; 46, I; 49, IV Coast Guard (Great Lakes Pilotage) 46, III Customs and Border Protection 19, I Federal Emergency Management Agency 44, I Human Resources Management and Labor Relations
Systems 5, XCVII
Immigration and Customs Enforcement Bureau 19, IV Transportation Security Administration 49, XII
HOPE for Homeowners Program, Board of Directors of 24, XXIV Housing and Urban Development, Department of 2, XXIV; 5, LXV; 24,
Subtitle B Community Planning and Development, Office of Assistant
Secretary for 24, V, VI
Equal Opportunity, Office of Assistant Secretary for 24, I Federal Acquisition Regulation 48, 24 Federal Housing Enterprise Oversight, Office of 12, XVII Government National Mortgage Association 24, III Housing—Federal Housing Commissioner, Office of
Assistant Secretary for 24, II, VIII, X, XX
Housing, Office of, and Multifamily Housing Assistance Restructuring, Office of
24, IV
Inspector General, Office of 24, XII Public and Indian Housing, Office of Assistant Secretary for 24, IX Secretary, Office of 24, Subtitle A, VII
Housing—Federal Housing Commissioner, Office of Assistant Secretary for
24, II, VIII, X, XX
Housing, Office of, and Multifamily Housing Assistance Restructuring, Office of
24, IV
Human Development Services, Office of 45, XIII Immigration and Customs Enforcement Bureau 19, IV
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Agency CFR Title, Subtitle or
Chapter
Immigration Review, Executive Office for 8, V Independent Counsel, Office of 28, VII Indian Affairs, Bureau of 25, I, V Indian Affairs, Office of the Assistant Secretary 25, VI Indian Arts and Crafts Board 25, II Indian Health Service 25, V Industry and Security, Bureau of 15, VII Information Resources Management, Office of 7, XXVII Information Security Oversight Office, National Archives and
Records Administration 32, XX
Inspector General Agriculture Department 7, XXVI Health and Human Services Department 42, V Housing and Urban Development Department 24, XII, XV
Institute of Peace, United States 22, XVII Inter-American Foundation 5, LXIII; 22, X Interior Department 2, XIV
American Indians, Office of the Special Trustee 25, VII Bureau of Ocean Energy Management, Regulation, and
Enforcement 30, II
Endangered Species Committee 50, IV Federal Acquisition Regulation 48, 14 Federal Property Management Regulations System 41, 114 Fish and Wildlife Service, United States 50, I, IV Geological Survey 30, IV Indian Affairs, Bureau of 25, I, V Indian Affairs, Office of the Assistant Secretary 25, VI Indian Arts and Crafts Board 25, II Land Management, Bureau of 43, II National Indian Gaming Commission 25, III National Park Service 36, I Natural Resource Revenue, Office of 30, XII Ocean Energy Management, Bureau of 30, V Reclamation, Bureau of 43, I Secretary of the Interior, Office of 2, XIV; 43, Subtitle A Surface Mining Reclamation and Enforcement, Office of 30, VII
Internal Revenue Service 26, I International Boundary and Water Commission, United States
and Mexico, United States Section 22, XI
International Development, United States Agency for 22, II Federal Acquisition Regulation 48, 7
International Development Cooperation Agency, United States
22, XII
International Joint Commission, United States and Canada 22, IV International Organizations Employees Loyalty Board 5, V International Trade Administration 15, III; 19, III International Trade Commission, United States 19, II Interstate Commerce Commission 5, XL Investment Security, Office of 31, VIII Iraq Reconstruction, Special Inspector General for 5, LXXXVII James Madison Memorial Fellowship Foundation 45, XXIV Japan–United States Friendship Commission 22, XVI Joint Board for the Enrollment of Actuaries 20, VIII Justice Department 2, XXVIII; 5, XXVIII;
28, I, XI; 40, IV Alcohol, Tobacco, Firearms, and Explosives, Bureau of 27, II Drug Enforcement Administration 21, II Federal Acquisition Regulation 48, 28 Federal Claims Collection Standards 31, IX Federal Prison Industries, Inc. 28, III Foreign Claims Settlement Commission of the United
States 45, V
Immigration Review, Executive Office for 8, V Offices of Independent Counsel 28, VI Prisons, Bureau of 28, V Property Management Regulations 41, 128
Labor Department 5, XLII
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Agency CFR Title, Subtitle or
Chapter
Employee Benefits Security Administration 29, XXV Employees’ Compensation Appeals Board 20, IV Employment and Training Administration 20, V Employment Standards Administration 20, VI Federal Acquisition Regulation 48, 29 Federal Contract Compliance Programs, Office of 41, 60 Federal Procurement Regulations System 41, 50 Labor-Management Standards, Office of 29, II, IV Mine Safety and Health Administration 30, I Occupational Safety and Health Administration 29, XVII Office of Workers’ Compensation Programs 20, VII Public Contracts 41, 50 Secretary of Labor, Office of 29, Subtitle A Veterans’ Employment and Training Service, Office of the
Assistant Secretary for 41, 61; 20, IX
Wage and Hour Division 29, V Workers’ Compensation Programs, Office of 20, I
Labor-Management Standards, Office of 29, II, IV Land Management, Bureau of 43, II Legal Services Corporation 45, XVI Library of Congress 36, VII
Copyright Office 37, II Copyright Royalty Board 37, III
Local Television Loan Guarantee Board 7, XX Management and Budget, Office of 5, III, LXXVII; 14, VI;
48, 99 Marine Mammal Commission 50, V Maritime Administration 46, II Merit Systems Protection Board 5, II, LXIV Micronesian Status Negotiations, Office for 32, XXVII Millennium Challenge Corporation 22, XIII Mine Safety and Health Administration 30, I Minority Business Development Agency 15, XIV Miscellaneous Agencies 1, IV Monetary Offices 31, I Morris K. Udall Scholarship and Excellence in National
Environmental Policy Foundation 36, XVI
Museum and Library Services, Institute of 2, XXXI National Aeronautics and Space Administration 2, XVIII; 5, LIX; 14, V
Federal Acquisition Regulation 48, 18 National Agricultural Library 7, XLI National Agricultural Statistics Service 7, XXXVI National and Community Service, Corporation for 2, XXII; 45, XII, XXV National Archives and Records Administration 2, XXVI; 5, LXVI; 36,
XII Information Security Oversight Office 32, XX
National Capital Planning Commission 1, IV National Commission for Employment Policy 1, IV National Commission on Libraries and Information Science 45, XVII National Council on Disability 34, XII National Counterintelligence Center 32, XVIII National Credit Union Administration 12, VII National Crime Prevention and Privacy Compact Council 28, IX National Drug Control Policy, Office of 21, III National Endowment for the Arts 2, XXXII National Endowment for the Humanities 2, XXXIII National Foundation on the Arts and the Humanities 45, XI National Highway Traffic Safety Administration 23, II, III; 47, VI; 49, V National Imagery and Mapping Agency 32, I National Indian Gaming Commission 25, III National Institute for Literacy 34, XI National Institute of Food and Agriculture 7, XXXIV National Institute of Standards and Technology 15, II National Intelligence, Office of Director of 32, XVII National Labor Relations Board 5, LXI; 29, I National Marine Fisheries Service 50, II, IV National Mediation Board 29, X
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Agency CFR Title, Subtitle or
Chapter
National Oceanic and Atmospheric Administration 15, IX; 50, II, III, IV, VI National Park Service 36, I National Railroad Adjustment Board 29, III National Railroad Passenger Corporation (AMTRAK) 49, VII National Science Foundation 2, XXV; 5, XLIII; 45, VI
Federal Acquisition Regulation 48, 25 National Security Council 32, XXI National Security Council and Office of Science and
Technology Policy 47, II
National Telecommunications and Information Administration
15, XXIII; 47, III, IV
National Transportation Safety Board 49, VIII Natural Resources Conservation Service 7, VI Natural Resource Revenue, Office of 30, XII Navajo and Hopi Indian Relocation, Office of 25, IV Navy Department 32, VI
Federal Acquisition Regulation 48, 52 Neighborhood Reinvestment Corporation 24, XXV Northeast Interstate Low-Level Radioactive Waste
Commission 10, XVIII
Nuclear Regulatory Commission 2, XX; 5, XLVIII; 10, I Federal Acquisition Regulation 48, 20
Occupational Safety and Health Administration 29, XVII Occupational Safety and Health Review Commission 29, XX Ocean Energy Management, Bureau of 30, V Offices of Independent Counsel 28, VI Office of Workers’ Compensation Programs 20, VII Oklahoma City National Memorial Trust 36, XV Operations Office 7, XXVIII Overseas Private Investment Corporation 5, XXXIII; 22, VII Patent and Trademark Office, United States 37, I Payment From a Non-Federal Source for Travel Expenses 41, 304 Payment of Expenses Connected With the Death of Certain
Employees 41, 303
Peace Corps 2, XXXVII; 22, III Pennsylvania Avenue Development Corporation 36, IX Pension Benefit Guaranty Corporation 29, XL Personnel Management, Office of 5, I, XXXV; 45, VIII
Human Resources Management and Labor Relations Systems, Department of Homeland Security
5, XCVII
Federal Acquisition Regulation 48, 17 Federal Employees Group Life Insurance Federal
Acquisition Regulation 48, 21
Federal Employees Health Benefits Acquisition Regulation 48, 16 Pipeline and Hazardous Materials Safety Administration 49, I Postal Regulatory Commission 5, XLVI; 39, III Postal Service, United States 5, LX; 39, I Postsecondary Education, Office of 34, VI President’s Commission on White House Fellowships 1, IV Presidential Documents 3 Presidio Trust 36, X Prisons, Bureau of 28, V Procurement and Property Management, Office of 7, XXXII Productivity, Technology and Innovation, Assistant
Secretary 37, IV
Public Contracts, Department of Labor 41, 50 Public and Indian Housing, Office of Assistant Secretary for 24, IX Public Health Service 42, I Railroad Retirement Board 20, II Reclamation, Bureau of 43, I Recovery Accountability and Transparency Board 4, II Refugee Resettlement, Office of 45, IV Relocation Allowances 41, 302 Research and Innovative Technology Administration 49, XI Rural Business-Cooperative Service 7, XVIII, XLII, L Rural Development Administration 7, XLII Rural Housing Service 7, XVIII, XXXV, L
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Agency CFR Title, Subtitle or
Chapter
Rural Telephone Bank 7, XVI Rural Utilities Service 7, XVII, XVIII, XLII, L Saint Lawrence Seaway Development Corporation 33, IV Science and Technology Policy, Office of 32, XXIV Science and Technology Policy, Office of, and National
Security Council 47, II
Secret Service 31, IV Securities and Exchange Commission 5, XXXIV; 17, II Selective Service System 32, XVI Small Business Administration 2, XXVII; 13, I Smithsonian Institution 36, V Social Security Administration 2, XXIII; 20, III; 48, 23 Soldiers’ and Airmen’s Home, United States 5, XI Special Counsel, Office of 5, VIII Special Education and Rehabilitative Services, Office of 34, III State Department 2, VI; 22, I; 28, XI
Federal Acquisition Regulation 48, 6 Surface Mining Reclamation and Enforcement, Office of 30, VII Surface Transportation Board 49, X Susquehanna River Basin Commission 18, VIII Technology Administration 15, XI Technology Policy, Assistant Secretary for 37, IV Technology, Under Secretary for 37, V Tennessee Valley Authority 5, LXIX; 18, XIII Thrift Supervision Office, Department of the Treasury 12, V Trade Representative, United States, Office of 15, XX Transportation, Department of 2, XII; 5, L
Commercial Space Transportation 14, III Contract Appeals, Board of 48, 63 Emergency Management and Assistance 44, IV Federal Acquisition Regulation 48, 12 Federal Aviation Administration 14, I Federal Highway Administration 23, I, II Federal Motor Carrier Safety Administration 49, III Federal Railroad Administration 49, II Federal Transit Administration 49, VI Maritime Administration 46, II National Highway Traffic Safety Administration 23, II, III; 47, IV; 49, V Pipeline and Hazardous Materials Safety Administration 49, I Saint Lawrence Seaway Development Corporation 33, IV Secretary of Transportation, Office of 14, II; 49, Subtitle A Surface Transportation Board 49, X Transportation Statistics Bureau 49, XI
Transportation, Office of 7, XXXIII Transportation Security Administration 49, XII Transportation Statistics Bureau 49, XI Travel Allowances, Temporary Duty (TDY) 41, 301 Treasury Department 5, XXI; 12, XV; 17, IV;
31, IX Alcohol and Tobacco Tax and Trade Bureau 27, I Community Development Financial Institutions Fund 12, XVIII Comptroller of the Currency 12, I Customs and Border Protection 19, I Engraving and Printing, Bureau of 31, VI Federal Acquisition Regulation 48, 10 Federal Claims Collection Standards 31, IX Federal Law Enforcement Training Center 31, VII Financial Crimes Enforcement Network 31, X Fiscal Service 31, II Foreign Assets Control, Office of 31, V Internal Revenue Service 26, I Investment Security, Office of 31, VIII Monetary Offices 31, I Secret Service 31, IV Secretary of the Treasury, Office of 31, Subtitle A Thrift Supervision, Office of 12, V
Truman, Harry S. Scholarship Foundation 45, XVIII
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Agency CFR Title, Subtitle or
Chapter
United States and Canada, International Joint Commission 22, IV United States and Mexico, International Boundary and Water
Commission, United States Section 22, XI
Utah Reclamation Mitigation and Conservation Commission 43, III Veterans Affairs Department 2, VIII; 38, I
Federal Acquisition Regulation 48, 8 Veterans’ Employment and Training Service, Office of the
Assistant Secretary for 41, 61; 20, IX
Vice President of the United States, Office of 32, XXVIII Vocational and Adult Education, Office of 34, IV Wage and Hour Division 29, V Water Resources Council 18, VI Workers’ Compensation Programs, Office of 20, I World Agricultural Outlook Board 7, XXXVIII
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Chapter I—Subject Index EDITORIAL NOTE: This listing is provided for information purposes only. It is compiled and
kept up-to-date by the U.S. Customs and Border Protection, Department of Homeland Secu- rity, Department of the Treasury. This index is updated as of April 1, 2012.
The number preceding the decimal is the part number. The number following the decimal is the section number. The letter ‘‘N’’ indicates a footnote.
10+2 (See IMPORTER SECURITY FILING), Part 149
A ABANDONED MERCHANDISE (See, Unclaimed and Aban-
doned Merchandise) ABORTION ............................................................................... 12.40(f), 12.40(h),
145.52 ACCOUNTS
Bills for sums due .............................................................. 24.3 Inventory control and record-keeping system ................... 19.12 Overtime service, charges for ............................................ 24.16 Sale of merchandise; presentation ..................................... 127.35 Services of officers, reimbursable ...................................... 24.17
ACH (See, Automated Clearinghouse) ACTUAL USE .......................................................................... 10.131, 10.133,
10.134, 10.137- 10.139, 54.5
ADJUSTMENT OF DUTIES (Withdrawals from warehouse for Consumption) ........................................................................ 144.38
ADMINISTRATIVE DUTY EXEMPTIONS .............................. 10.151-10.153, 128.24(e), 145.31- 145.34, 148.12(b), 148.51-148.55, 148.64, 159.6
ADMINISTRATIVE OVERHEAD CHARGES ........................... 24.21 ADMINISTRATIVE REVIEW
Authority to review ........................................................... 173.1 Commissioner’s decision .................................................... 158.30(b) Mail entries ........................................................................ 145.21-145.26 Port director’s decision ..................................................... 158.30(a) Review of entry
Covering household and personal effects ..................... 173.5 Reviewable transactions .................................................... 173.2 Voluntary reliquidation ..................................................... 173.3
ADMINISTRATIVE RULINGS Drawback rulings
General manufacturing drawback rulings ................... 191.7 Specific manufacturing drawback rulings ................... 191.8
General Ruling Procedure .................................................. Part 177, subpart A
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19 CFR Ch. I (4–1–12 Edition)
ADMINISTRATIVE RULINGS—Continued Change in status of transaction ................................... 177.5 Change of practice ....................................................... 177.10(c) Coastwise transportation of merchandise .................... 4.80b Completed transactions, not subject to ....................... 177.1(a)(2)(ii) Current (ongoing) transactions .................................... 177.1(a)(2)(i),
177.11(b) Definitions ................................................................... 177.1(d) Drawback rulings ......................................................... 191.7, 191.8 Effect of ruling letters ................................................. 177.9 Inconsistent customs decisions .................................... 177.13 Internal advice ............................................................. 177.11 NAFTA
Advance Ruling Procedures ................................... Part 181, subpart I Review and Appeal of Adverse Marking Decisions . Part 181, subpart
J Nonconforming requests for rulings ............................ 177.3 Oral discussions ........................................................... 177.4 Prospective transactions ............................................. 177.1(a)(1) Publication of decisions ............................................... 177.10 Requests for advice by field offices .............................. 177.11 Submission of ruling requests
How to submit request for ..................................... 177.2 When requests for rulings will not be issued ................ 177.1(a)(1), (2) Withdrawal of ruling requests ..................................... 177.6
Government procurement, country-of-origin determina- tions ................................................................................ Part 177, subpart
B Applicability ................................................................ 177.21 Country of origin advisory ruling
By whom a request is filed ..................................... 177.24 Form and content of request ................................. 177.25 Issuance ................................................................. 177.28 Oral discussion of issues ........................................ 177.27 Where request filed ................................................ 177.26 Who may request ................................................... 177.23
Definitions ................................................................... 177.22 Final determinations
Issuance ................................................................. 177.28 Publication of notice ............................................. 177.29 Review ................................................................... 177.30 Reexamination ....................................................... 177.31 Request .................................................................. 177.23
ADMINISTRATOR OR EXECUTOR—Entry by ........................ 141.14 AD VALOREM USER FEE MERCHANDISE ............................ 24.23 ADVANCE ELECTRONIC INFORMATION FOR AIR, TRUCK
AND RAIL CARGO EXEMPT FROM DISCLOSURE ............. 103.31a ADVANCE FILING OF VESSEL CARGO DECLARATION
(‘‘24-hour’’ rule) ..................................................................... 4.7, 4.7a ADVANCE ELECTRONIC INFORMATION FOR CARGO AR-
RIVING BY RAIL, TRUCK, VESSEL OR AIRCRAFT ........... 123.91, 123.92, 4.7, 122.48(a)
ADVANCE ELECTRONIC INFORMATION FOR CREW MEM- BERS AND NON-CREW MEMBERS ONBOARD COMMER- CIAL AIRCRAFT ARRIVING IN, CONTINUING WITHIN, AND OVERFLYING THE UNITED STATES ......................... 122.49b, 122.75b
ADVANCE ELECTRONIC INFORMATION FOR PRIVATE AIRCRAFT ARRIVING AND DEPARTING THE U.S. ........... 122.22, 122.31,
122.154
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Subject Index
ADVANCE IN VALUE—Notice to importer ............................. 152.2 ADVERTISEMENTS
Sale of unclaimed and abandoned merchandise ................. 127.25 Sale of seized perishable and other property ..................... 162.48 Seizure and intent to forfeit property ............................... 162.45
AFRICA Special duty-free treatment .............................................. 10.178a Trade benefits to designated sub-Saharan ......................... 10.211-217
AGENCIES, OTHER ................................................................. 12.1, 12.16, 145.56, 145.57,161.2
AGENT, DECLARATION BY, ON ENTRY ............................... 141.19 AGRICULTURAL AND VEGETABLE SEEDS
Admittance requirements .................................................. 12.16 AGREEMENT ON TRADE IN CEMENT ................................... 12.155, Appendix
to Part 163 Interim (a)(1)(A) List
AIR COMMERCE REGULATIONS Access to Customs security areas ...................................... Part 122, subpart
S Air carrier smuggling prevention program ........................ Part 122, subpart
R Electronic manifest requirements ..................................... Part 122, subparts
E and F AIRCRAFT
Accidental damage ............................................................. 10.107 Advance electronic information for crew members and
non-crew members onboard commercial aircraft arriv- ing in, continuing within, and overflying the U.S. ......... 122.49b, 122.75b
Advance electronic information for private aircraft arriv- ing and departing the U.S. .............................................. 122.22, 122.31,
122.154 Air cabotage ....................................................................... 122.165 Application to private aircraft .......................................... 122.21 Arrival
Advance notice ............................................................. 122.22, 122.31 Private aircraft from south of U.S. .............................. 122.23-122.25
Private aircraft, defined ........................................ 122.23(a) Arriving, search of ............................................................. 162.5 Baggage .............................................................................. Part 122, subpart
K Bonds international carrier condition ............................... 113.64 Brought-in for temporary use under international traffic . 10.41, Part 122 Certificate .......................................................................... 122.94 Civil ................................................................................... 10.183 Clearance and permission to depart ................................... Part 122, subpart
G Clearance
Contiguous country, from ............................................ 122.87 Contiguous transport ................................................... 4.85 Cuba, entry and clearance ........................................... Part 122, subpart
O Customs laws and regulations applicable .................... 122.2, 122.30,
122.161 Documents ................................................................... 122.3, 122.5, Part
122, subpart H Emergency landing ...................................................... 122.35, 122.37 Failure to depart .......................................................... 122.65
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19 CFR Ch. I (4–1–12 Edition)
AIRCRAFT—Continued Clearance—Continued
General requirements .................................................. Part 122, subparts E and F, 122.61
Scheduled airlines ........................................................ 122.63 Crew list ............................................................................. 122.45, 122.46 Entry
Documents required ..................................................... 122.42 General order merchandise or baggage ........................ 122.50 General requirements .................................................. 122.2, 122.30, 122.41-
122.49, 122.161 Landing requirements .................................................. Part 122, subpart
D Scheduled airlines ........................................................ 122.41, 122.42,
122.63 Equipment, supplies, spare parts for searches, etc. for ac-
cidentally damaged aircraft ........................................... 10.107 Fees, private aircraft ......................................................... 24.22(e) Forced landings .................................................................. 122.35 Foreign-owned, brought in for temporary stay, when
entry required ................................................................. 10.41, 122.53 Forfeiture and sale ............................................................ 162.45 Forms of documents .......................................................... 122.3-122.5
Inspection of documents .............................................. 162.5 Landing
Emergency or forced .................................................... 122.35 Exemption from ........................................................... 122.25 Requirements ............................................................... 122.24, Part 122,
subpart D Liquor kits ......................................................................... Part 122, subpart
M Passengers ......................................................................... 122.88 Penalties
Limitation of ............................................................... 122.161 Petitions, relief from penalties and forfeitures ........... 122.161, Part 171 Smuggling, aviation .................................................... 122.167
Permit and special license to unlade and lade ................... 122.38 Permit, international traffic ............................................. Part 122, subpart
F Permit to proceed, when required ...................................... 122.32, 122.41,
122.83 Precleared .......................................................................... 122.37 Private aircraft .................................................................. Part 122, subpart
G Advance passenger information requirements ............. 122.22 Application .................................................................. 122.21 Arrival ......................................................................... 122.22, 122.23,
122.31 Departure ..................................................................... 122.22, 122.31 Documents required ..................................................... 122.27 Entry and clearance ..................................................... 122.26 Landing requirements .................................................. 122.24, 122.25 List of designated airports ........................................... 122.24 Notice of arrival .......................................................... 122.22, 122.23,
122.31, 122.154 Taken abroad by U.S. residents ................................... 122.28 Overtime service .......................................................... 122.29
Repair or alteration ........................................................... 10.36a
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Subject Index
AIRCRAFT—Continued Residue cargo ..................................................................... Part 122, subpart I Responsibility of aircraft commander ............................... 122.36 Seized
Appraisement ............................................................... 162.43 Award or sale ............................................................... 162.45, 162.46 Transfer to another port for sale ................................. 162.46
Seizure When used in or employed to aid in unlawful importa-
tion of merchandise .................................................. 122.161, 161.2, 162.22
Supplies and equipment, foreign trade zone, removal . 146.42 Stores list .......................................................................... 122.47 Substitution ....................................................................... 122.86 Supplies and stores aboard arriving aircraft ..................... 122.43, 122.47 Supplies for, exempt from duty and internal-revenue tax . 10.59 Taken abroad for temporary use, tariff status on return .. 148.32 Tobacco products for use on .............................................. 10.65 Transit air cargo
Documentation ............................................................ 122.112-122.114, 122.116
Exportation at port of arrival ...................................... 122.118 Labeling of ................................................................... 122.115 Manifest procedures ..................................................... Part 122, subpart
L Penalties ...................................................................... Part 122, subpart
Q Requirements for ......................................................... 122.117 Shipments to interior port .......................................... 122.164 Time limits, delivering and exportation ...................... 122.119 Transfer to another port for export ............................. 122.120 Virgin Islands, flight to and from ................................ Part 122, subpart
N Transportation in bond and merchandise in transit .......... Part 122, subpart
J Withdrawal of turbine fuel ................................................. 10.62b
AIRCRAFT, AUTOMOBILES, AND TRAILERS STOLEN AND RETURNED FROM MEXICO-LBCIP ..................................... 123.82
AIRMEN, RESIDENT—Registration of valuable effects .......... 148.1 AIRPORTS
Customs security areas ...................................................... Part 122, subpart S
International Defined ......................................................................... 122.1(e) Designated as international ......................................... 122.11 Listed ........................................................................... 122.13 Operation ..................................................................... 122.12
Landing rights ................................................................... 122.1(f), 122.14 Defined ......................................................................... 122.1(f) Operation ..................................................................... 122.14
Permission to land ............................................................. 122.14, 122.15, 122.33
Private aircraft, list of airports designated for ................. 122.24 User-fee .............................................................................. 122.1(m), 122.15
Defined ......................................................................... 122.1(m) Listed ........................................................................... 122.15
ALCOHOL, ETHYL—Importation for non-beverage purposes .. 10.99 ALCOHOLIC BEVERAGES
Belonging to crewmember ................................................. 148.64
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19 CFR Ch. I (4–1–12 Edition)
ALCOHOLIC BEVERAGES—Continued Import taxes ...................................................................... 24.4 Imported by nonresidents .................................................. 148.8, 148.43 Imported in bottles and similar containers, regulations of
Bureau of Alcohol, Tobacco and Firearms applicable ..... 11.7 Imported or destined to foreign countries via U.S. on
small vessels, bond for foreign landing certificate ......... 4.13 In baggage of returning residents ...................................... 148.33 Mail importations of .......................................................... 145.54 Trade fair, entered for ....................................................... 147.22 Vessels not over 500 tons, on .............................................. 4.13
ALLOWANCE Claim for moisture in sugar ............................................... 151.23 Drawback ........................................................................... 191.4 Excessive moisture petroleum ........................................... 151.46, 158.13 Losses, clean yield of wool and hair, defined ..................... 151.61 Smelting and refining (metal-bearing materials) .............. 19.18, 151.55 Wastage in smelting and refining ...................................... 19.18, 19.19
ALTERATIONS (See also, REPAIRS) Articles
Exported ...................................................................... 10.8 Imported ...................................................................... 10.36a Re-entered
ALUMINUM AND ALLOYS, ADDITIONAL INFORMATION REQUIRED ON INVOICE ...................................................... 141.89
AMERICAN FISHERIES, ENTRY OF PRODUCTS OF ............ 10.78 AMERICAN GOODS RETURNED ............................................. 10.1, 10.103, 145.35
Animals straying or driven across border .......................... 10.74 Articles assembled abroad with U.S. components ............. 10.11-10.18, 10.21,
10.23-10.26 Certificate of exportation, form, contents, and disposi-
tion ................................................................................. 10.1 Cloth boards ....................................................................... 10.5 Containers or coverings ..................................................... 10.3 Containers, substantial ...................................................... 10.3, 10.7 Declaration of
Foreign shipper, form and use ..................................... 10.1 Owner, form ................................................................. 10.1, 145.35
Drawback paid, dutiable or not dutiable ........................... 10.3 Drums, drawback, amount to be paid ................................ 10.3, 10.7 Entry requirements ........................................................... 10.1, 145.35 Government importations, procedure ................................ 10.103 Internal-revenue marks on containers, removal of ............ 10.4 Mail .................................................................................... 145.35 Merchandise exported from bonded manufacturing ware-
house, duties ................................................................... 10.3 Motion-picture films, exhibited on vessels, etc., or other-
wise ................................................................................. 10.68 Shooks and staves
Certificates Boxmaker—Form 4455 ............................................ 10.6 Exportation—Form 4455 ......................................... 10.5
Theatrical effects ............................................................... 10.68 Tools of trade ..................................................................... 10.68
AMERICAN SAMOA ................................................................ 7.2, 148.101, 148.102, Part 148, subpart K, 191.5
AMMUNITION, IMPORTS AND EXPORTS ............................. 161.2
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Subject Index
ANDEAN TRADE PREFERENCE ............................................ Part 10, Subpart C ANDEAN TRADE PROMOTION AND DRUG ERADICATION
ACT Apparel and Other Textile Articles Under the Andean
Trade Promotion and Drug Eradication Act ................... Part 10, Subpart F Additional requirements for preferential treatment of
brassieres .................................................................. 10.248 Applicability ................................................................ 10.241 Articles eligible for preferential treatment ................. 10.243 Certificate of origin ..................................................... 10.244 Definitions ................................................................... 10.242 Filing of claim for preferential treatment ................... 10.245 Maintenance of records and submission of certificate
by importer ............................................................... 10.246 Verification and justification of claim for preferential
treatment .................................................................. 10.247 Extension of ATPA Benefits to Tuna and Certain Other
Non-Textile Articles ....................................................... 10.251-10.257 Applicability ................................................................ 10.251 Articles eligible for preferential treatment ................. 10.253 Certificate of Origin ..................................................... 10.254 Definitions ................................................................... 10.252 Filing of claim for preferential treatment ................... 10.255 Maintenance of records and submission of Certificate
by importer ............................................................... 10.256 Verification and justification of claim for preferential
treatment .................................................................. 10.257 ANIMAL & PLANT HEALTH INSPECTION SERVICE,
U.S.D.A. Animals, domestic, and animal by-products, etc.
Jurisdiction ................................................................. 12.24 Animals for export, inspection by ................................ 4.71 Animals, purebred, inspection by ................................ 10.70 Meat and meat-food products
For export—inspection, certification .................... 4.61, 4.72 Imported, inspection by ............................................... 12.8, 12.9 Notice of arrival of viruses, serums, and toxins to be
furnished to ............................................................... 12.17 ANIMAL BY-PRODUCTS, FEEDING MATERIALS, ETC.—
Entry procedure .................................................................... 12.24 ANIMAL CASINGS, RELEASE—Restriction ........................... 12.9 ANIMAL FEEDING MATERIALS—Inspection ........................ 12.24 ANIMALS
Brought in for breeding, exhibition, or competition for prizes ............................................................................... 10.33, 10.70, 10.71
Domestic Importation procedure ................................................. 12.24 Pastured or strayed abroad, dutiable status upon re-
turn ........................................................................... 10.3(e), 10.74 Dying
During bond period ...................................................... 10.39(c) While under transportation entry ................................ 18.6
Exportation of, inspection by Department of Agriculture . 4.71 Exported for exhibition, return, entry requirements ......... 10.66 Feeding and watering of (in-transit through Canada) ....... 123.27 Game
Killed for noncommercial purposes ............................. 10.76(d) Live, for stocking purposes .......................................... 10.76(a)
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934
19 CFR Ch. I (4–1–12 Edition)
ANIMALS—Continued Offspring, foreign pasturage and strays ............................. 10.74 Purebred, entry .................................................................. 10.70, 10.71 Seizure of, when used in or employed to aid in unlawful
importation of merchandise ............................................ 162.22 Straying or driven across border ....................................... 10.74 Temporary importation bond ............................................ 10.31 Theatrical effects, as ......................................................... 10.33 Wild
Importation procedure ................................................. 10.76, 12.26-12.28 Scientific or educational purposes, for ........................ 10.75 Zoological collection ................................................... 10.75
ANTIDUMPING MATTERS ..................................................... 159.58 ANTIQUES ............................................................................... 10.53 APIS, (Advance Passenger Information System) ..................... 4.64, 122.22(b),
122.49a, 122.49b, 122.49c, 122.75a, 122.75b
APPEALS By domestic interested party(ies) ...................................... Part 175 Centralized Examination Stations .................................... 118.23(a) Commercial gaugers .......................................................... 151.13 Commercial laboratories ................................................... 151.12 Customs brokers ................................................................ 111.75 Decision of Court of Appeals for the Federal Circuit ......... 176.31(b) Decision of Court of International Trade .......................... 176.31(a) Notice of appeal to U. S. Court of Appeals for the Federal
Circuit ............................................................................. 176.2 Request for records, from denial of .................................... 103.5-103.7 Suspension or revocation of license, cartage or lighter-
age .................................................................................. 112.30 APPORTIONMENT, ASSISTS, TRADE AGREEMENTS ACT
OF 1979 .................................................................................. 152.103(e) APPRAISEMENT
Basis for Articles assembled abroad with U.S. components, ex-
ported to the U.S. prior to July 1, 1980 ...................... 10.18 Basis of appraisement, Trade Agreements Act of 1979,
when .......................................................................... 152.101 Computed value, Trade Agreements Act of 1979, when 152.106 Country of exportation ................................................ 152.23 Deductive value, Trade Agreements Act of 1979, when 152.105 Definition, Trade Agreements Act of 1979 .................... 152.102 Dutiable charges defined for articles exported to the
U.S. prior to July 1, 1980 ........................................... 152.101 Exportation, time of .................................................... 152.1(c) Interpretative notes, Trade Agreements Act of 1979 .... 152.100 Property under seizure, subject to forfeiture, or pro-
hibited merchandise .................................................. 162.43 Transaction value
Identical merchandise and similar merchandise ... 152.104 Trade Agreements Act of 1979 ................................ 152.103
Unacceptable bases of appraisement, Trade Agree- ments Act of 1979 ...................................................... 152.108
Unclaimed and abandoned merchandise ...................... 127.23 Value if other values cannot be determined, Trade
Agreements Act of 1979 ............................................. 152.107 Entries (Appraisement entries)
Form and procedure ..................................................... 143.12-143.16
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Subject Index
APPRAISEMENT—Continued Entries (Appraisement entries)—Continued
Liquidation of .............................................................. 159.9 Merchandise eligible for .............................................. 143.11
Examination At importer’s premises ................................................ 151.7(a) At place where assembled ............................................ 151.8(c) At place of arrival ........................................................ 151.6, 151.7 At public stores ............................................................ 151.6, 151.7 At wharf ....................................................................... 151.6, 151.7 Cording and sealing, when required ............................. 151.7(a) Expenses of, when assessed .......................................... 151.7(c)
Information as to values prior to appraisement, request of importer ...................................................................... 152.26
Loss, theft, injury, or destruction of merchandise in pub- lic stores ......................................................................... 158.21
Merchandise Entered by false documents ......................................... 152.103 Produced in one country, imported from another ....... 152.23
Protests Domestic interested party(ies) .................................... Part 175 By importer or consignee ............................................. 174.11, 174.12
Quantities to be examined ................................................. 151.2 Samples from packages not designated, request ................ 151.11 Samples, when permitted ................................................... 151.10, 151.11 Seized property .................................................................. 162.43 Time period ........................................................................ 158.21 Unclaimed and abandoned merchandise ............................ 127.23
ARMED FORCES OF THE U.S.—Household and personal ef- fects ...................................................................................... 148.74
ARMS, AMMUNITION AND IMPLEMENTS OF WAR Controlled imports and exports, seizure of ........................ 161.2, 145.53 Exportation ........................................................................ 4.61, 4.73, 145.53,
161.2 Mail importations .............................................................. 145.59
ARMY AND NAVY TRANSPORTS Baggage declaration and manifest ..................................... 148.73 Manifest of passengers and baggage ................................... 4.5 Search ................................................................................ 162.3(b)
ARRESTS, WHO MAY MAKE .................................................. 162.22 ART, WORKS OF ..................................................................... 10.48, 10.49, 10.52-
10.54 ARTICLES
Agreements in restraint of trade, imported under—special duties .............................................................................. 159.44
Assembled abroad with U.S. components .......................... 10.11-10.26 Appraisement
Basis of appraisement ............................................ 152.101 Transaction value .................................................. 152.103 Valuation of assembled articles ............................. 10.18 Valuation of exempted components ....................... 10.17
Assembly operations abroad ........................................ 10.16 Definitions ................................................................... 10.12 Documents required ..................................................... 10.24 Fabricated components
Subject to exemption ............................................. 10.14 Not subject to exemption ....................................... 10.15
Operations incidental to assembly process .................. 10.16(b)
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ARTICLES—Continued Operations not incidental to assembly process ............ 10.16(c) Quotas, standards and visas ......................................... 10.23 Subheading 9802.00.80, HTSUS ...................................... 10.13 Substantial transformation of foreign-made articles
or materials .............................................................. 10.14(b) Updating cost data and other information .................. 10.21
Bearing trade-marks or trade names ................................. 133.21-133.24 Disposition of, not properly marked .................................. 134.51-134.53 Exported for exhibition, return of—entry requirements .... 10.66 Exported
For processing .............................................................. 10.9 For reimportation ........................................................ 10.8a For scientific, or educational purposes, return of ....... 10.67
For testing, experimental, or review purposes—Tem- porary importation bond ................................................ 10.31
Gold or silver, marking—False, penalty ............................ 11.13 Illustrators and photographers, imported by, for use sole-
ly as models—Temporary importation bond ................... 10.31 In violation of laws ............................................................ 161.2 Of special design, for use in connection with manufacture
of articles for export—Temporary importation bond ...... 10.31 Registration of foreign ...................................................... 148.1 Special marking requirements—Exception ........................ 11.9, 11.13, 134.32-
134.36, 134.43 Taken ashore by crew members ......................................... Part 148, subpart
G To be repaired, altered, or otherwise changed in condi-
tion—Temporary importation bond ................................ 10.31 ASSAYING AND SAMPLING OF METAL BEARING ORES
AND OTHER METAL-BEARING MATERIALS .................... Part 151, subpart D
ASSEMBLY OF ARTICLES ABROAD WITH U.S. COMPO- NENTS .................................................................................. 10.11-10.26
ASSENT OF SURETIES TO EXTENSION OF TIME OF BONDS .................................................................................. 113.44
ASSERTED LIQUIDATION ...................................................... 159.11 ASSIGNED ENTRY NUMBERS ............................................... 142.3a ASSIST-DEFINED, TRADE AGREEMENTS ACT OF 1979 ....... 152.102(a) ATOMIC ENERGY MATERIAL, CONTROLLED IMPORTS
AND EXPORTS—Seizure ...................................................... 161.2 ATTORNEY, POWER OF—Surety ........................................... 113.37, Part 141,
subpart C AUCTIONEER’S CHARGES FOR SELLING MERCHANDISE . 127.34 AUDITS ................................................................................... 163.0, 163.11
Sampling methods ............................................................. 163.11(c) Penalties-offsetting (netting) ............................................ 163.11(d)
AUTOMATED CLEARINGHOUSE (ACH) ................................. 24.1, 24.25 Credit ................................................................................. 24.26
AUTOMATED COMMERCIAL SYSTEM (ACS) ........................ 128.11, 128.23, Part 143, subpart D
Automated Broker Interface (ABI) .................................... 24.1, 24.25, Part 143, subpart A, 143.32
Automated Export System (AES) ...................................... 4.76, Part 192, subpart B
Automated Manifest System (AMS) .................................. 103.31, 128.11, 128.23
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Subject Index
AUTOMOBILES Brought in by a person not a returning resident ............... 148.45 Brought in for temporary use under international traffic . 10.41 Export of ............................................................................ 192.2 Rented abroad by returning resident and brought in for
temporary use ................................................................. 148.39 AUTOMOBILES, MOTORCYCLES, AIRPLANES, ETC., TO
TAKE PART IN RACES—Temporary importation bond ...... 10.31 AUTOMOBILES—Safety standards ......................................... 12.80 AUTOMOBILES, TRAILERS, AND AIRCRAFT STOLEN AND
RETURNED FROM MEXICO ................................................ 123.82 AUTOMOTIVE PRODUCTS TRADE ACT ................................ 10.84 AVAILABILITY OF INFORMATION
Disclosure or production in federal, state, local, and for- eign proceedings ............................................................. Part 103, subpart
B Documents and records available for inspection and copy-
ing ................................................................................... 103.11, 103.31 Documents and records exempt from disclosure ................ 103.12 Fees .................................................................................... 103.10 Investigatory files ............................................................. 103.12(g) Personnel and medical files ............................................... 103.12(f) Privileged or confidential information—improper disclo-
sure, penalty ................................................................... 103.34 Public reading rooms
Documents available for inspection and copying ......... 103.11 List .............................................................................. 103.1
Release of information to foreign agencies ........................ 103.33 Request for a record
Administrative appeal to Director, Office of Regula- tions & Rulings ......................................................... 103.7
Definition ..................................................................... 103.5(h) Improper disclosure of confidential information, pen-
alty ........................................................................... 103.34 Judicial review—U.S. district court ............................ 103.9 Procedure to follow ...................................................... 103.5 Referral to other agencies ........................................... 103.5(b) Time extensions ........................................................... 103.8
Requests for records, documents and testimony by U.S. Court ............................................................................... 103.22, 103.26
Seizures and investigations pending .................................. 103.32 Vessel manifests, examination of ...................................... 103.31
AVIATION SMUGGLING, Penalties ........................................ 122.167 AWARDS OF COMPENSATION TO INFORMERS—Claims ..... Part 161, subpart
B
B BAD ORDER, BREAKAGE, OUTAGE, DAMAGE—Duty allow-
ance ....................................................................................... 158.11, 158.12, 158.21-158.27
BAGGAGE Accompanied in transit ..................................................... 122.48(e), 122.101,
122.102 Alcoholic beverages
By returning resident .................................................. 148.33 By a nonresident .......................................................... 148.43
Antiques in ........................................................................ 10.53
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19 CFR Ch. I (4–1–12 Edition)
BAGGAGE—Continued Appraisement ..................................................................... 148.24 Army and Navy transports ................................................ 148.73 Cigars and cigarettes ......................................................... 148.33, 148.43,
148.51, 148.74 Civilian (U.S.) employees ................................................... Part 148, subpart
H Commercial travelers’ samples
Transported by automobile Through Canada and returned ............................... 123.51 Through U.S. and returned to Canada ................... 123.52
Exported and returned ................................................. 10.68 Under bond ................................................................... 10.36
Consular officers ................................................................ 148.82 Contiguous country ........................................................... 123.1, 123.2, Part
123, subpart G Crews’ effects ..................................................................... Part 148, subpart
G Customs officer may unlock vehicle or compartment ....... 123.63 Declaration
Amendment .................................................................. 148.16 Crew members .............................................................. 148.65, 148.66 False statement, etc., penalty ..................................... 148.18, 148.19,
148.67 Failure to declare, etc., penalty .................................. 148.18, 148.19,
148.67 Form and contents ....................................................... 148.12, 148.13,
148.65, 148.66 Requirements ............................................................... Part 148, subpart
B Detained if not opened by owner or agent, penalty ........... 123.63(b) Diplomatic, consular, and other official representatives .. 148.82, 148.87 Domestic, through contiguous foreign territory ............... 123.51, 123.52,
123.64, 123.65 Duty exemption, restrictions, penalty ............................... 148.18, 148.19 Evacuees ............................................................................ Part 148, subpart
H Examination in foreign country ........................................ 148.22 Examination procedure
Formal entry, when required ....................................... 143.22, 148.15, 148.23
Inspector may pass ...................................................... 148.23 Invoice ......................................................................... 148.23 Opening closed baggage ............................................... 148.21 Preclearance of air travelers ....................................... 148.4, 148.22 Preclearance stations .................................................. 148.4(c) Reappraisement ........................................................... 148.24, 148.25 Receipts for duty, forms .............................................. 148.27 Reexamination and receipt form ................................. 148.25(a)
Exemptions allowed Returning resident ....................................................... Part 148, subpart
D Nonresident .................................................................. Part 148, subpart
E Other special ................................................................ Part 148, subpart
F Failure to declare, penalty ................................................ 148.18, 148.19 Foreign military personnel and immediate families ......... 148.90
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Subject Index
BAGGAGE—Continued Gifts ................................................................................... 148.33(c), 148.44 In bond
For examination at port of destination ....................... 18.13 For exportation in transit through the U.S. ................ 18.14, 123.64
In transit Through foreign territory ............................................ 123.65 Through U.S. ................................................................ 123.64
Inspection .......................................................................... 162.6 Landed, undisposed of, when to be sent to general order ... 148.7 Liquors, entry forms, internal-revenue tax, strip stamps . 148.26, 148.27 List, passengers ................................................................. 4.7, 4.7a Merchandise ....................................................................... 148.15, 148.23 Military (U.S.) personnel ................................................... Part 148, subpart
H Narcotics, marihuana and certain other drugs .................. Part 162, subpart
F Noncommercial importations of limited value .................. Part 148, subpart
J Nonresidents ...................................................................... Part 148, subparts
E and F Organization of American States, representatives ............ 148.87, 148.88 Permit or special license for unlading or lading ................ 4.30 Public international organizations, representatives ......... 148.87 Regular entry ..................................................................... 148.5 Release for unaccompanied shipment ................................ 148.6 Replacements for unsatisfactory articles acquired abroad 148.37 Residents, returning .......................................................... Part 148, subpart
D Search of baggage and persons ........................................... 162.6, 162.7 Seizure ............................................................................... 162.21 Status of passengers, residents or other ............................ 148.2 Tea ..................................................................................... 148.23(d) Tobacco and tobacco products ........................................... 148.26, 148.33(d),
148.43, 148.74 Tools of trade under bond .................................................. 10.36 Unaccompanied, arriving by aircraft ................................. 122.48(d) Unaccompanied articles
Entry, declaration ....................................................... 148.6, 148.11 Unclaimed and unaccompanied .................................... 148.7 Undeclared, penalty ..................................................... 148.18 Value ............................................................................ 148.24
BAGGAGE AND MERCHANDISE, REPORT OF REQUIRED TO BE MADE BY CERTAIN PASSENGER VESSELS .......... 4.2
BAGGAGE ENTRIES, LIQUIDATION OF ................................ 159.10 BAGS OR DUNNAGE OF VESSEL ........................................... 4.39 BAHAMAS, THE—Customs preclearance offices ..................... 101.5 BAHRAIN FREE TRADE AGREEMENT (See, UNITED
STATES-BAHRAIN FREE TRADE AGREEMENT) BANKRUPT IMPORTERS
Duties due U.S.—Priority of claim .................................... 141.1 Refund of excessive duty .................................................... 24.36
BARGES .................................................................................. 4.81(g) BEEF, FRESH—Chilled or frozen ............................................ 10.180 BEES, HONEY—Importation procedure .................................. 12.32 BERMUDA—Customs preclearance office ................................ 101.5 BILLS AND ACCOUNTS .......................................................... 24.3 BILLS OF HEALTH (PRATIQUE), PRODUCTION OF, ON
ENTRY OF VESSEL ............................................................. 4.9(d)
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19 CFR Ch. I (4–1–12 Edition)
BILLS OF LADING Bond, form ......................................................................... 113.14, 113.69,
141.15(b) Bond for production ........................................................... 141.15 Consolidated shipments ..................................................... 141.54 Disposition ......................................................................... 141.16 Duplicate
Disposition, receipt ...................................................... 141.16(a) Entry on ....................................................................... 141.11(a)(1)
Extract from, to be certified by carrier ............................. 141.11(a)(2) Unique bill of lading number ............................................. 4.7a
BIRDS Dying while under transportation entry ............................ 18.6 Game
Killed for noncommercial purposes ............................. 10.76 Live, for stocking purposes .......................................... 10.76(a)
Wild Importation procedure ................................................. 10.76, 12.26-12.29 Scientific or educational purposes ............................... 10.75 Zoological collection ................................................... 10.75
BLACK STRAP MOLASSES .................................................... 10.139(b) BLENDING OF WINES OR LIQUORS—Permit requirements .. 12.37 BOARDING AND SEARCHING OF VESSELS AND VEHI-
CLES ..................................................................................... 4.1, 162.3-162.7 BOARDING OF VESSELS OR VEHICLES
Master’s refusal to comply with lawful demand—Penalty . 4.1 Obstruction of officer by master, penalty .......................... 4.1(b)(4) Who may board .................................................................. 4.1
BOARDING OF VESSELS WITHOUT PERMISSION-Penalty . 4.1 BOATS, PLEASURE, FOREIGN OWNED—When exempt from
duties .................................................................................... 4.94, 148.32, 148.45 BOATS—Safety standards ....................................................... 12.85 BOLTING CLOTH FOR MILLING PURPOSES ........................ 10.58 BOND CONDITIONS FOR DEFERRAL OF DUTY ON LARGE
YACHTS IMPORTED FOR SALE AT UNITED STATES BOAT SHOWS ....................................................................... 113.75
BOND CONDITIONS TO INDEMNIFY A COMPLAINANT UNDER SECTION 337 OF TARIFF ACT OF 1930, AS AMENDED ............................................................................ 113.74
BONDING AND LICENSING CUSTOMS CARTMEN AND LIGHTERMEN ...................................................................... Part 112, subpart
C BOND LIABILITY .................................................................... 122.189 BONDS
Advance cargo information ................................................ 113.64 Agricultural and vegetable seeds ....................................... 12.16 Aircraft .............................................................................. 113.62-113.64 Air waybill, evidence of right to make entry .................... 141.15 Alcohol on vessels .............................................................. 4.13 Alterations ......................................................................... 113.23 Amount, less than $100 ....................................................... 113.13 Application for ................................................................... 113.12 Approved by port directors ................................................ 113.11
Retention of ................................................................. 113.15 Approved forms, when inapplicable, procedure .................. 113.14 Assent of sureties to extension of time .............................. 113.44 Attorneys in fact acting for both principal and surety ..... 113.31 Authority to require .......................................................... 113.0-113.2
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Subject Index
BONDS—Continued Bills of lading
Conditions .................................................................... 113.69 Evidence of right to make entry .................................. 141.15
Cancellation of ................................................................... 10.39, Part 113, subpart F
Cancellation or crediting—Vessel supplies ........................ 10.64 Carnets, serves as ............................................................... 113.4, 114.3 Carpet wool and camel’s hair ............................................. 113.68 Carrier’s certificate and duplicate bill of lading—Bonds
not to be taken ............................................................... 141.15 Carrier’s (International) .................................................... 113.64 Cartmen’s or lightermen’s, form ........................................ 112.2, 113.63 Cartmen’s or lightermen’s liability ................................... 125.35, 125.41 Cash deposit in lieu of surety on bond ............................... 113.40 Centralized Examination Stations .................................... 118.4(g) Certificate of pure breeding, form—Cancellation .............. 10.71 Charges, cancellation of erroneous .................................... 113.54 Claim for seized property ................................................... 162.47 Claimant of seized goods, form .......................................... 113.72 Clearance of vessels, unmanifested narcotics .................... 162.65(b), 162.65(e) Commercial gauger and commercial laboratory condi-
tions ................................................................................ 113.67, 151.12, 151.13
Common and contract carrier Application .................................................................. 18.1, 112.12 Discontinuance ............................................................ 18.1, 112.14 Form ............................................................................ 112.12 Liabilities .................................................................... 18.8
Conditions .......................................................................... Part 113, subpart G
Custodial ...................................................................... 113.63 Consignee’s declaration ..................................................... 141.20 Consumption entry ............................................................ 113.62 Containerized cargo, form .................................................. 113.66 Copyright, form ................................................................. 113.70 Corporation, as principals .................................................. 113.33 Documents, time period for production ............................. 113.42 Documents, free entry, cancellation of bond (or charge
against bond) .................................................................. 172.22(c) Electronic entry filing ....................................................... 113.62(j)(1) Entry, general term ........................................................... 113.62 Entry requirements ........................................................... 142.4 Exhibition, works of art .................................................... 10.49 Export, cancellation of ...................................................... 113.55 Exportation, form .............................................................. 18.25, 113.62 Extension of time, application ........................................... 113.42-113.44 Fiber products .................................................................... 113.68 Foods, drugs, devices, cosmetics, insecticides, pesticides,
etc. .................................................................................. 12.3, 141.113 Foreign merchandise destined foreign on board arriving
vessels, form ................................................................... 4.88 Foreign trade zone operator conditions ............................. 113.73 Forms, approved, when inapplicable—Procedure ............... 113.14 Forwarder, freight ............................................................. 18.1 Fur products ...................................................................... 113.68 General instructions .......................................................... Part 113, subpart
C
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19 CFR Ch. I (4–1–12 Edition)
BONDS—Continued General term bond for entry of merchandise ..................... 113.62 Government importations ................................................. 10.104, 141.102(d),
143.3(a) Importation and entry ....................................................... 113.62 Importer security filing bond ............................................ Appendix D – Part
113, 149.5 Importer security filing requirements ............................... 113.62, 113.63,
113.64, 113.73 Incorporating by reference, bond conditions to particular
Customs activity ............................................................. 113.61 Information required on bond ............................................ 113.21 Installment shipments, invoices covering ......................... 141.82 Instruments of international traffic .................................. 113.66 International carrier conditions ........................................ 113.64 Invoices
Cancellation of, by 1 photocopy ................................... 141.84(e) Photocopy to satisfy bond entry without required in-
voice .......................................................................... 141.84(e), 141.91(d) Production of ............................................................... 141.91(d)
Laboratory, commercial .................................................... 113.67, 151.12 Landing certificate, alcoholic liquors ................................ 4.13 Landing from vessels in distress—Customs custody .......... 4.32 Liability of surety on terminated ...................................... 113.3 Liens in dispute ................................................................. 141.112(g) Manifest ............................................................................. 113.64 Manufacturing warehouse .................................................. 19.3, 113.63 Meat and meat-food products, importation of ................... 12.8 Missing documents
Bond required for ......................................................... 141.66 Charge for production .................................................. 113.45 Entry made prior to production of documents, form ... 113.41 Failure to produce—Liquidated damages .................... 113.45, 172.22
Narcotic drug penalty, for vessel clearance ....................... 162.65 Neutrality observance—Clearance of vessels, form ........... 4.73, 113.71 Outward manifest .............................................................. 4.75, 122.74 Overtime ............................................................................ 4.10, 24.16, 113.62-
113.64 Aircraft, unlading or lading of ..................................... 122.38 Vessels, boarding, entry or clearance of, lading, etc. .. 4.10, 4.30
Overtime service, vessels less than 5 net tons ................... 123.8 Partnership, execution by .................................................. 113.32 Plants and plant products .................................................. 12.12 Power of attorney, surety .................................................. 113.35, 113.37 Preparation and execution of ............................................. Part 113, subparts
C and D Principals and sureties ...................................................... Part 113, subpart
D Proprietor’s warehouse, form ............................................ 19.2 Prosecution for failure to satisfy ....................................... 113.52 Recall of merchandise ........................................................ 113.62, 141.113 Release of seized property .................................................. 113.72, 162.47,
162.49 Removal from Customs custody
Examination of merchandise at importer’s premises .. 151.7(d) Failure to—Liquidated damages .................................. 10.39(d), 141.113,
151.11 Repayment of erroneous drawback payment ..................... 113.65
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Subject Index
BONDS—Continued Requirements ..................................................................... Part 113, subpart
C, 142.4 Retention of approved ........................................................ 113.15 Rewarehouse ...................................................................... 144.41(d) Riders ................................................................................. 113.24 Salt for curing fish ............................................................. 10.80, 10.81, 10.83 Seals .................................................................................. 113.25 Seized property .................................................................. 113.72, 162.47 Simultaneous vessel transactions ...................................... 4.90 Summary forfeiture ........................................................... 162.47 Supplies for vessels ............................................................ 10.59, 10.60 Sureties
Assent for extension of period ..................................... 113.44 Cash deposit accepted in lieu of, application of, or de-
fault .......................................................................... 113.40 Corporation .................................................................. 113.37 Delinquent ................................................................... 113.38 Individual ..................................................................... 113.35 Liability ....................................................................... 113.3 Married women ............................................................ 113.35(b)(2) Partners ....................................................................... 113.36 Principals cannot act as .............................................. 113.31 U.S. bonds and notes in lieu of ..................................... 113.40 U.S. obligations accepted in lieu of ............................. 113.40
Tea importations ............................................................... 12.33 Temporary importations ................................................... 10.31, 10.37, 10.39,
10.104, 113.62 Uncommon transaction ..................................................... 113.14 Unfair practices in import trade ........................................ 12.39, 113.62 Vehicle, form ..................................................................... 113.62-113.64 Vessel, form ....................................................................... 113.62-113.64 Vessels owned by the U.S., to unlade or lade, not re-
quired .............................................................................. 4.30(j) Warehouse entry
Form ............................................................................ 113.63, 144.13, 144.14
Liability under ............................................................. 144.2 Warehouse proprietor’s ...................................................... 19.2, 113.63 Withdrawals from warehouse, conditionally free .............. 113.63 Witnesses Required ............................................................ 113.22 Wool, carpet, and camel’s hair, form ................................. 113.68
BOOKS (See also, PROHIBITED OR RESTRICTED IMPOR- TATIONS)
And other articles—Institutions, Conditionally free ......... 145.36 Engravings, etc.—U.S. Conditionally Free ........................ 10.46, 145.37 In packages for Library of Congress, Conditionally free ... 10.46, 145.37
BOUNDARY LINE OF U.S., MERCHANDISE FOUND IN BUILDINGS ON OR NEAR .................................................... 123.81
BOUNTIES—Countervailing duties ......................................... 159.47 BRASSIERES , ADDITIONAL REQUIREMENTS FOR PREF-
ERENTIAL TREATMENT OF ............................................... 10.228 BREEDING ANIMALS ............................................................. 10.70, 10.71 BRIX VALUES—Fruit juices ................................................... 151.91 BUILDINGS, SEARCH OF
On international boundary line ......................................... 123.81 Warrants—Restrictions ...................................................... 162.11-162.13,162.15
BULK CARGO—Correction of manifest ................................... 4.12
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19 CFR Ch. I (4–1–12 Edition)
BULLETIN NOTICE OF LIQUIDATION ................................... 159.9, 159.10 BUNKER FUEL, STORES, AND EQUIPMENT—Transfer ........ 4.39 BUSINESS INFORMATION, Confidentiality ........................... 103.31; 177.2; Part
181, subpart K BUSSES
Brought in for temporary use under international traffic . 10.41(a) Domestic, repaired abroad ................................................. 123.17 Foreign-owned—Brought in for hire .................................. 10.41(d) Taken abroad for temporary use ........................................ 123.16
C CABOTAGE—Air, penalties ..................................................... 122.165 CANADA .................................................................................. Parts 123 and 181
Articles Repaired or altered ...................................................... 181.64
Customs (U.S.) preclearance offices ................................... 101.5 In-transit truck shipments ................................................ 123.51, 123.52 Softwood lumber entries .................................................... 12.140
CANADA, U.S.-FREE TRADE AGREEMENT .......................... 10.84, Part 10, subpart G
CANADIAN ARTICLE—Automotive products ......................... 10.84 CANADIAN CRUDE PETROLEUM .......................................... 10.179 CANCELLATION
Bonds ................................................................................. 10.39, Part 113, subpart F
Carnets ............................................................................... 114.26 Liability of cartage ............................................................ 125.42 Liquidated damages ........................................................... 125.42, 172.11, Part
172, subpart C Penalty and forfeiture claims ............................................ 133.51, 171.11
CARGO Advance filing of cargo declaration ................................... 4.7 Bonded
Carried coastwise, report of vessel ............................... 4.2, 4.81 Seal requirements ........................................................ 18.4
Bulk Discharge of, outside port of entry .............................. 4.35 For orders, amendment of manifest ............................. 4.36
Coastwise—Vessels touching at foreign port ..................... 4.82 Container certification ...................................................... 115.41 Container status messages ................................................. 4.7d Declaration ........................................................................ 4.7a Discharge, time limit and compensation of discharging
officer .............................................................................. 4.36, 24.17, 122.36 Entry of, from wrecked vessels .......................................... 4.41 Foreign—Destined to foreign countries via U.S. port—
Bond for foreign landing certificate ............................... 4.88 Inaccessible ........................................................................ 4.34 Inward, accounting for ....................................................... 4.61, 4.62 Landing from vessels in distress
Customs custody .......................................................... 4.32 Narcotic drugs or marihuana contained in ........................ Part 162, subpart
F Outbound, advance reporting requirements ....................... 192.14 Overage of manifested quantity ......................................... 4.12, 122.49 Overcarried ........................................................................ 4.34 Permit or special license for unlading or lading ................ 4.30, 122.38
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CARGO—Continued Prematurely discharged ..................................................... 4.34 Recovered from sunk or wrecked vessel or as derelict ...... 4.41 Release, permits ................................................................ 4.38 Residue .............................................................................. 4.85, 4.86, 4.88, 4.90,
122.81-122.84, 122.86-122.87
Short of manifested quantity ............................................ 4.12 Stow plan ........................................................................... 4.7c Transit Air (See Aircraft) Transshipment
Casualty ....................................................................... 4.31(a) Procedure ..................................................................... 4.91
Undelivered, return from foreign destination of ................ 4.34 Unentered, when to be sent to general order warehouse .... 4.37 Unique bill of lading number ............................................. 4.7a Unladen or transshipped on account of unavoidable cause 4.31 Vessel
In trade with noncontiguous territory ........................ 4.84 Proceeding foreign via domestic ports ......................... 4.87 Trading between U.S. ports on Great Lakes and other
U.S. ports .................................................................. 4.83 Wrecked or dismantled, disposition of ......................... 4.40, 4.41
CARGO CONTAINER CERTIFICATION ................................... Part 115 CARIBBEAN BASIN INITIATIVE ............................................ Part 10, subpart B
certain leather-related articles ......................................... 10.198a Non-textile articles ............................................................ 10.231-10.237 Puerto Rico ........................................................................ 10.198b Textile articles .................................................................. 10.221-10.227
CARNETS Acceptance ......................................................................... 114.21
For various samples ..................................................... 114.32 Additional items prohibited ............................................... 114.24 Approval of issuing and guaranteeing associations ........... Part 114, subpart
B Bond ................................................................................... 114.3 Customs Conventions and Agreements .............................. 114.2 Definitions ......................................................................... 114.1 Destruction, loss, or theft of carnet document .................. 114.25 Discharge of ....................................................................... 114.26 Entry document ................................................................. 114.3 Fraud, violation, or abuse of privileges ............................. 114.33 Liquidated damages ........................................................... 114.33, 114.34 Merchandise covered by ..................................................... 114.22 Period of validity ............................................................... 114.23 Processing .......................................................................... Part 114, subpart
C Provisions, scope ................................................................ Part 114 Restrictions—Mail importations, temporary importations
and transportation in bond ............................................. 114.31 Samples for taking orders .................................................. 114.32 Use and area of validity ..................................................... 114.3
CARPET WOOL AND CAMEL’S HAIR—BOND ........................ 113.68 CARRIAGE OF U.S. SECURITIES, ETC. ................................. 4.61 CARRIERS
Approval of applications .................................................... 112.13 Authorization to carry bonded material ............................ Part 112, subpart
B
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CARRIERS—Continued Bond or license required .................................................... 112.2 Certificate
Bond for, not to be taken ............................................. 141.15 Disposition of ............................................................... 141.16 Entry on ....................................................................... 141.11
Release of merchandise ...................................................... 141.111 Types of ............................................................................. 112.11
CARTAGE Appraisement entries—Additional expense payable by im-
porter .............................................................................. Part 143, subpart B
Discrepancies ..................................................................... 125.34 Expenses ............................................................................ 127.32 Government—Contract requirements ................................ 125.1, 125.3, 125.11 Importers
Failure to designate cartmen ...................................... 125.23 Procedure to designate cartmen .................................. 125.1(b), 125.22
Marking of vehicles, lighters, etc. ..................................... 112.27 Marking, removal of .......................................................... 112.27(d) Supervision of .................................................................... 125.2, 125.24
CARTAGE AND LIGHTERAGE ............................................... 112.1, 112.2, Part 125
Examination ...................................................................... 125.11, 125.12 Not for examination .......................................................... 125.21
CARTAGE CONTRACT BOND—Form ...................................... 113.63 CARTAGE TICKETS—Form, disposition ................................. 125.31-125.34 CARTMEN
Accidents to be reported to port director .......................... 125.35 Bonding and licensing of .................................................... 112.2, 112.21-112.26,
112.28, 112.30 Designation of, by importer on entry and permit .............. 125.22 Designation of, on warehouse entry ................................... 144.11(b) Government contracts ....................................................... 125.1, 125.3, 125.11 Identification cards for employees .................................... Part 112, subpart
D Liability for loss or damage to merchandise ..................... 125.41 License or identification card, production of .................... 112.28 Receipt for merchandise delivered to, form ....................... 125.31-125.33 Suspension or revocation of licenses of ............................. 112.30 Undeliverable merchandise ................................................ 125.36
CASH DEPOSIT IN LIEU OF SURETY Cash deposits or obligations on bonds ............................... 113.40 Temporary importation bonds
Amount ........................................................................ 10.31(f) Refund .......................................................................... 10.40
CASUALTY, LOSS, AND THEFT OF MERCHANDISE ............ Part 158, subpart C
CASUALTY—Vessel—Unlading or transshipment at other than port of entry ................................................................. 4.31
CATALOGS OF SALES OF MERCHANDISE ........................... 127.26 CATTLE
Dying while under bond, duty allowance ........................... 18.6 Immediate transportation restrictions .............................. 18.11 Importation restrictions .................................................... 12.24 Straying or driven across boundary ................................... 10.74
CAUSTIC SUBSTANCES—Importation procedure .................. 12.1, 12.3-12.5 CENTRALIZED EXAMINATION STATIONS (CES) ................. Part 118, 151.15
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CENTRALIZED EXAMINATION STATIONS (CES)—Continued Appeal to the Asst. Commissioner ..................................... 118.23 Application contents ......................................................... 118.11 Customs review of application ........................................... 118.12 Fee schedule ....................................................................... 118.5 Notice ................................................................................ 118.13, 118.22 Responsibility .................................................................... 118.4 Suspension ......................................................................... 118.21 Written agreement ............................................................. 118.3
CERTIFICATE Alcohol, tobacco and firearms ........................................... 191.104 Arrival ............................................................................... 146.38 Delivery—Drawback .......................................................... 191.10, 191.24,
191.34 Export; beef ........................................................................ 132.15
Lamb meat ................................................................... 132.16 Sugar-containing products .......................................... 132.17
For liquor shipments on small vessels, penalty ................. 4.13 Landing .............................................................................. 191.76 Manufacture ....................................................................... 191.24 Merchandise from
Insular possessions ....................................................... 7.3 NAFTA Countries ........................................................ 181.11
Of exportation—American goods returned, waiver of ........ 10.1 Of lading for exportation (aircraft) .................................... 122.94 Of origin
AGOA ........................................................................... 10.214 CBTPA ......................................................................... 10.224, 10.234 Softwood lumber from Canada ..................................... 12.140 Foreign—Merchandise not produced by convict,
forced, or indentured labor ....................................... 12.43 Unaccompanied shipments from insular possessions ... Part 148, subpart
K Of pedigree—Animals for pure breeding, bond ................... 10.70, 10.71 Of registration
Automobiles, etc., taken abroad temporarily .............. 148.32 Commercial traveler’s samples taken abroad .............. 10.68, 10.69 Exports for repairs or alterations—Form—Waiver of .. 10.8 Moving-picture films and Theatrical effects taken
abroad ....................................................................... 10.68 Of tonnage tax or light money payment-form ................... 4.23
CERTIFICATION Blanket .............................................................................. 10.183, 12.121 Chemical substances .......................................................... 12.121 Civil aircraft parts ............................................................. 10.183 Containers and road vehicles ............................................. Part 115 Drawback compliance program ......................................... 191.192, 191.195 Substantial containers or holders ...................................... 10.7
CHANGE OF PRACTICE .......................................................... 177.10(c) CHARGES
Cartage, storage, and labor; additional, borne by importer on appraisement entry .................................................... 143.14
Dutiable and nondutiable for articles exported to the U.S. prior to July 1, 1980, definitions ...................................... 152.1
CHECKS Acceptable in payment of duties ........................................ 24.1 Mailed to other than payee, authority, form ..................... 24.36
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CHEESE, affidavits for entry ................................................... 12.6 CHEMICALS, TOXIC SUBSTANCES ....................................... 12.118-12.127 CHILE FREE TRADE AGREEMENT (See, UNITED STATES-
CHILE FREE TRADE AGREEMENT) CIGARETTE PAPERS AND TUBES, PACKAGE AND NOTICE
REQUIREMENTS .................................................................. 11.3 CIGARS, CIGARETTES, AND TOBACCO
Cuban origin ...................................................................... 151.111 For consumption on vessel or aircraft ............................... 10.65 Importation ....................................................................... 11.1 In passengers’ baggage ....................................................... 148.33, 148.43,
148.51, 148.74 In mail ............................................................................... 145.13 Manufactured tobacco, examination, marking .................. 11.2 Release without payment of tax ........................................ 11.2a
CITIZEN OF U.S.—Presumed to be a resident ......................... 148.2 CITIZENS DYING ABROAD, EFFECTS OF ............................. 143.21, 148.54 CIVIL AIRCRAFT .................................................................... 10.183 CIVIL ASSET FORFEITURE REFORM ACT ........................... Part 162, subpart
H CLAIMS
AGOA ................................................................................. 10.215, 10.217 CBTPA ............................................................................... 10.225, 10.227,
10.235, 10.237 Compensation to informants ............................................. Part 161, subpart
B Compromise of ................................................................... 161.5 Damage to or loss of privately-owned property caused by
customs employees ......................................................... 24.71 Death benefits .................................................................... 24.32(b) Deceased importers, payment due ..................................... 24.70(a) Deceased or incompetent public creditors or contractors,
payment due ................................................................... 24.70(c) In favor of U.S., payment by set-off ................................... 24.72 Miscellaneous .................................................................... 24.73 Personal injury .................................................................. 24.71 Seized property .................................................................. 162.47 Surplus proceeds of sale of unclaimed merchandise .......... 127.36 Unpaid salary and other moneys due deceased employees . 24.32(a)
CLASSIFICATION (See also, APPRAISEMENT and ADMIN- ISTRATIVE RULINGS)
Applicable rates of duty ..................................................... 152.11, 152.12 Change in rate of duty by
Headquarters decisions Current (ongoing) transactions .............................. 177.10 Petitions, Domestic interested party(ies), etc. ...... 175.22 Prospective transactions ....................................... 177.10 Protests ................................................................. 174.27, 174.29,
174.32 Judicial decisions ........................................................ 152.16 Law .............................................................................. 152.17 Notice of port director to increase duties .................... 152.2 Presidential proclamation ........................................... 152.17
Commingling of merchandise ............................................ 152.13 Merchandise from
Designated beneficiary developing countries (GSP) .................................................................. 10.171-10.178
Guantanamo Bay Naval Station ............................ 7.11
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CLASSIFICATION (See also, APPRAISEMENT and ADMINIS- TRATIVE RULINGS)—Continued
Merchandise from—Continued Insular possessions ................................................. 7.3
Reimported merchandise ................................................... 10.1, 10.11, 141.2 Rewarehouse entries .......................................................... 144.41
CLEAN AIR ACT ...................................................................... 12.73, 12.74 CLEARANCE OF AIRCRAFT
Documents for .................................................................... Part 122.71, subpart H
General requirements ........................................................ Part 122, subpart G
Preclearance of passengers ................................................ 24.18 Private aircraft passengers ................................................ 122.22 Scheduled airlines .............................................................. 122.63 Serially numbered holders ................................................. 10.41b
CLEARANCE OF VESSELS At other than port of entry, expenses ................................ 24.17, 101.4 Canal Zone, to .................................................................... 4.60 Coastwise
Requirements ............................................................... 4.81, 4.83, 4.84 To or from Great Lakes ports
Via Hudson River ................................................... 4.83 Via St. Lawrence River .......................................... 4.83
Coastwise and foreign trade combined ............................... 4.89 Common carrier may be refused ........................................ 162.22(c) Crew list ............................................................................. 4.61, 4.68 Documentation required .................................................... 4.61 Foreign and coastwise trade combined .............................. 4.89 Foreign vessels proceeding coastwise, when permitted ..... 4.80, 4.81 Livestock, carrying—Exportation of animals—Inspection 4.61, 4.71 Manifests, outward foreign, and bond for .......................... 4.63, 4.75 Maritime administration—Exemption from liabilities ...... 162.22(e) Meat Inspection certificate requirements ......................... 4.61, 4.72 Nationality and tonnage, verification of ........................... 4.61, 4.65 Neutrality observance—Bond ............................................ 4.61, 4.73 Not required, when ............................................................. 4.60 Pratique ............................................................................. 4.70 Proceeding foreign via domestic ports ............................... 4.87 Records .............................................................................. 4.95 Requirements ..................................................................... 4.60, 4.61 Seamen’s Act ..................................................................... 4.61, 4.69 Shipping articles ................................................................ 4.61, 4.69 Withheld until
Compliance with State inspection laws ....................... 4.61 Federal and State fees are paid .................................... 4.61 Narcotic drug penalty paid .......................................... 162.65(e) Reimbursable expenses paid ......................................... 4.36
CLEARANCE OF VESSELS TO CLOSED PORTS OR PLACES ................................................................................ 4.61, 4.67
CLEARANCE OR PERMISSION TO DEPART DENIED ........... 122.66 CLERICAL ERROR (See also, ADMINISTRATIVE REVIEW) . 4.12(a)(5), 162.73,
173.4, 173.4a CLOSED PORTS OR PLACES ................................................. 4.61, 4.67 CLOTH
Boards ................................................................................ 10.5 Bolting for milling purposes .............................................. 10.58
COASTWISE MOVEMENTS Entry and clearance of vessels ........................................... 4.81-4.89
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COASTWISE MOVEMENTS—Continued Foreign vessels, restrictions .............................................. 4.80, 4.81
COASTWISE TRADE Break in continuity ........................................................... 4.80b Empty vans, tanks, and barges, etc. .................................. 4.93 Foreign vessels, restrictions .............................................. 4.80, 4.80a Intent ................................................................................. 4.80 Limited to American vessels ............................................. 4.80 New and different product ................................................. 4.80b Privileges reciprocal, nations granting ............................. 4.93(b)(1) and
(b)(2) Vessels entitled to engage in ............................................. 4.80 Vessels touching at foreign port, while in ......................... 4.82, 4.90
COFFEE—Puerto Rico, shipped to, from U.S. ......................... 7.1(c) COINS
Counterfeit—Prohibited importation ................................ 12.48 Illustrations of, when permitted entry .............................. 12.48
COLLECTIONS Accounts due, receipt for payment of ................................ 24.3 Customs, persons authorized to receive ............................. 24.2
COMMERCIAL GAUGERS ....................................................... 151.13 COMMERCIAL LABORATORIES ............................................ 151.12 COMMERCIAL INVOICE ......................................................... 141.83(c), 142.3(c)
Requirements ..................................................................... 142.6 When not required .............................................................. 141.83(d)
COMMERCIAL TRAVELERS’ SAMPLES Accompanied through Canada and return .......................... 123.52 Accompanied through U.S. and return to Canada .............. 123.51 Exported and returned ....................................................... 10.68, 10.69 Temporary importation bond ............................................ 10.31, 10.36
COMMINGLING OF GOODS Assessment at higher rate ................................................. 152.13 When imported by U.S. Government and covering Amer-
ican goods returned and other duty-free items ............... 10.103(b) COMMISSION-DEFINED, TRADE AGREEMENTS ACT OF
1979 ........................................................................................ 152.102(b) COMMON CARRIER
Bonded ............................................................................... 18.1 Bonds, discontinued use of ................................................. 112.14 Clearance may be refused .................................................. 162.22(c) Receipt for merchandise transported in bond .................... 18.2 Sealing of conveyances, etc. .............................................. 18.4 Transshipment of merchandise .......................................... 18.3 Warning cards to be attached to doors of car, etc.—Form . 18.4
COMPENSATION (See also, WAGES) Overtime ............................................................................ 24.16 Reimbursable ..................................................................... 4.35, 24.17, 101.4,
134.55, 141.86(f), 151.5, 151.7(c)
Reimbursable and not reimbursable Full charge made if services are not clearly seg-
regated ...................................................................... 24.17 COMPROMISE OF CLAIMS ..................................................... 161.5 COMPUTED VALUE ................................................................ 152.106 CONCENTRATED FRUIT JUICES—Brix values ...................... 151.91 CONDEMNED MERCHANDISE—Allowance in duty ................ 158.14 CONDITIONAL SALE, PROPERTY SOLD ON—Seized from
purchaser—Petition for restoration ...................................... 171.41-171.43
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Subject Index
CONFIDENTIAL COMMERCIAL INFORMATION; EXEMPT .. 103.35 CONFIDENTIALITY OF BUSINESS INFORMATION .............. 103.12(d), 103.31,
177.2, 181.121, 181.122
CONSIGNEE Liability for additional or increased duties ....................... 141.20 Nonresident, entry of merchandise by ............................... 141.17 Notice of sale of unclaimed goods to be sent to ................. 127.24 Refusal of merchandise by, to be treated as unclaimed ..... 141.1(f)
CONSOLIDATED SHIPMENTS, ENTRY OF ............................ 141.52, 141.54 CONSOLIDATION OF SHIPMENTS, IMMEDIATE TRANS-
PORTATION ENTRY, ON ..................................................... 18.11 CONSULAR OFFICERS
Baggage .............................................................................. 148.82, 148.83 Free entry privilege ........................................................... 148.82, 148.85
CONTAINER—Cargo, certification .......................................... Part 115 CONTAINER STATIONS
Application for transfer of merchandise ............................ 19.42 Carrier responsibility ........................................................ 19.44 Employee lists ................................................................... 19.46 Entry of containerized merchandise .................................. 19.49 Establishment, relocation or alteration of containerized
stations ........................................................................... 19.40 Filing of application .......................................................... 19.43 Movement of containerized cargo to a container station .. 19.41 Security ............................................................................. 19.47 Suspension or revocation of the privilege of operating a
container station; hearings ............................................. 19.48 Transfer of merchandise, approval and method ................. 19.45
CONTAINERS Clearance of serially numbered ......................................... 10.41b For compressed gases, and other merchandise
Temporary importation bond ...................................... 10.31 Instruments of international traffic .................................. 10.41(a) Substantial ........................................................................ 10.3, 10.7
CONTAINERS OR COVERINGS American manufacture, returned as .................................. 10.3 In manufacturing warehouse, disposition of ...................... 19.15
CONTIGUOUS COUNTRY Importations from ............................................................. 123.1, 123.3, 123.7,
123.51, 123.52, 148.35(a)
In transit through, between U.S. ports .............................. 18.14, Part 123, subpart C, 123.51, 123.65
In transit through U.S. ...................................................... 123.31, 123.32, 123.34, 123.42, 123.52, 123.64
Report of arrival from ....................................................... 123.1, 123.2, 123.5, 123.6
Vehicles and vessels arriving from .................................... 123.1-123.5 CONTINUED DUMPING AND SUBSIDY OFFSET
Certifications ..................................................................... 159.63 Distribution of offset ......................................................... 159.64 General .............................................................................. 159.61 Notice of distribution ........................................................ 159.62
CONTRACTORS—Deceased or incompetent, claims for pay- ment due ............................................................................... 24.70
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CONTRACTS—Cartage and lighterage .................................... 125.11 CONTRARY TO LAW—Importing merchandise ....................... 12.97, 145.4, 162.22 CONTROLLED SUBSTANCES ................................................. 162.45, 162.45a CONTROLLED EXPORTS—Imports, seizure ........................... 161.2 CONVERSION OF CURRENCY
Date of exportation, definition .......................................... 152.1(c), 159.32 Rates of exchange .............................................................. Part 159, subpart
C CONVEYANCES—Seizure of, when used in or employed to aid
in unlawful importation of merchandise .............................. 162.22 CONVICT, FORCED, OR INDENTURED LABOR—Merchan-
dise produced by, importation prohibited ............................. 12.42-12.45 COPIES OF RECORDS—When importers may make ............... 103.4 COPPER-BEARING FLUXING MATERIAL—Entry require-
ments .................................................................................... 10.98 COPPER-METAL-BEARING MATERIALS, SMELTING AND
REFINING—Allowance for loss ............................................ 19.18, 151.55 COPYRIGHT—Mail importations marked ............................... 145.37 COPYRIGHTED ARTICLES ..................................................... Part 133, subparts
D and E CORN OR MAIZE SEED—REDUCED RATE ............................ 10.57 CORPORATIONS
Bonds, execution by ........................................................... 113.33 Sureties on bonds ............................................................... 113.37
CORROSIVE SUBSTANCES—Importation procedure ............. 12.1, 12.3-12.5 COST OF PRODUCTION
Definition and when to be shown on invoice ...................... 141.88 Valuation of articles assembled abroad ............................. 10.18
COTTON Commercial travelers’ samples of ...................................... 10.68 Examination and measurement ......................................... Part 151, subpart
F COUNTERFEIT COINS, OBLIGATIONS, AND SECURITIES—
Importation prohibited ......................................................... 12.48 COUNTERVAILING DUTIES—Port director, action by .......... 159.58 COUNTRY OF ORIGIN
CBI ..................................................................................... 10.195, 10.198 Definitions ......................................................................... 134.1 Evidence of for GSP purposes ............................................ 10.173 GSP .................................................................................... 10.173, 10.176 Marking requirements ....................................................... Part 134, subpart
B, Part 134, subpart E
Exceptions to ............................................................... Part 134, subpart D
COUNTRY OF ORIGIN DETERMINATIONS—Government procurement .......................................................................... Part 177, subpart
B COUNTRY OF ORIGIN (NAFTA) ............................................. Part 102 COURTESY NOTICE—Liquidation .......................................... 159.9, 159.11, 159.12
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Subject Index
COURT OF INTERNATIONAL TRADE (CIT) .......................... 4.20(h), 19.3(g), 111.17(c), 111.75, 112.30(f), 152.16, 159.57, 174.31, 175.31, 176, 177.2, 177.7(b), 177.11(b)(8), 177.30, 177.31, 181.33, 181.93, 181.98, 181.102, 181.115, 181.116
COURT SUBPOENA FOR CUSTOMS DOCUMENTS ................ 176.11 CREAM AND MILK—Importation, special requirements ........ 12.7 CREW OF VESSELS
Crew list Deposit of, on entry of American vessel ...................... 4.68 Presentation of, form ................................................... 4.61, 4.68
Declarations and exemptions ............................................. Part 148, subpart G
Declaration of articles unladen by, when required ............ 148.62 CREWS, ARTICLES ACQUIRED BY, LISTED AS SEA
STORES—Form .................................................................... 4.7 CREW’S EFFECTS ................................................................... 148.63 CUBA—Entry and clearance of aircraft ................................... Part 122, subpart
O CUBAN CIGARS OR CIGARILLOS .......................................... 151.111 CULTURAL PROPERTY ......................................................... 12.104-12.104j CURRENCY CONVERSION ...................................................... 152.25, Part 159,
subpart C Date of exportation, Definition ......................................... 152.1(c), 159.32 Rates of exchange .............................................................. Part 159, subpart
C CUSTOMS BROKERS
Charges against Statement of .......................................................... 111.58 Notice of ................................................................ 111.62
Hearing ........................................................................ 111.67 Extension of time for ............................................. 111.65 Failure to appear ................................................... 111.66 Service of notice and other papers for ................... 111.64
Mistakes, immaterial .................................................. 111.71 New proceedings ........................................................... 111.72 Preliminary proceedings .............................................. 111.59
Decision on ............................................................ 111.61 Proposed findings and conclusions ............................... 111.68
Recommended decision .......................................... 111.69 Reopening the case ...................................................... 111.76 Representation ............................................................. 111.5 Request for additional information ............................. 111.60 Service of notice and statement of charges ................. 111.63 Settlement and compromise ........................................ 111.81 Submissions, additional ............................................... 111.70 Vacated or modified order, notice of ........................... 111.77
Complaints, investigation of .............................................. 111.55 Review ......................................................................... 111.56 Determination ............................................................. 111.57
Definitions ......................................................................... 111.1 Diligence in correspondence and payment monies ............ 111.29
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CUSTOMS BROKERS—Continued Duties and responsibilities ................................................ Part 111, subpart
C Fees .................................................................................... 111.96 License or Permit
Appeal from the Secretary’s decision revoking or sus- pending ..................................................................... 111.75
Application for— .......................................................... 111.11-111.15 Application for—Investigation and examination ......... 111.11-111.15 Cancellation of ............................................................. 111.51 Employment of broker who has lost ............................ 111.79 For more than one Customs port ................................. 111.19 Issuance or denial of .................................................... 111.13, 111.15-111.19 Reprimands .................................................................. 111.78 Required ....................................................................... 111.2 Revocation, cancellation or suspension of ................... 111.50-111.53, 111.81
Grounds for ............................................................ 111.53 When voluntary ..................................................... 111.52
Monetary penalty .............................................................. 111.74, 111.91-111.95 Permit (See, License or permit) Records .............................................................................. 111.21-111.27 Representation before Government agencies ..................... 111.5
CUSTOMS COLLECTIONS—Persons authorized to receive ..... 24.2 CUSTOMS COURT (See also, COURT OF INTERNATIONAL
TRADE (CIT)) Documents and other evidence, produced for .................... 103.22, 176.11 Reliquidation under decision of ......................................... 176.31
CUSTOMS CUSTODY Continuous, merchandise exported from ........................... 18.25-18.26 Demand to return to .......................................................... 141.113
CUSTOMS EMPLOYEES Death—Claim for unpaid salary and other moneys due ..... 24.32 Identification cards ........................................................... 101.8 Information, giving out ..................................................... 103.0, 103.12 Prohibitions against .......................................................... 4.101
CUSTOMS FEES (See, FEES) CUSTOMS FORMS (CF)
Reproduction or substitution ............................................ 4.99, 122.5 Salable ............................................................................... 24.14
CUSTOMS INSPECTION STAMPS—Cigars, etc., imported in mails ..................................................................................... 11.2(b), 145.13
CUSTOMS—List of Offices in foreign countries ................................................ 101.5 Ports .................................................................................. 101.3 Stations ............................................................................. 101.4
CUSTOMS OFFICERS Authority of ....................................................................... 101.2 Baggage, not to open .......................................................... 123.63 Boarding or search by ........................................................ 162.3-162.8, 162.13 Compensation for service
Required in the discharge of cargo after time limit .... 4.36, 24.17 When assigned on board a vessel or vehicle
Proceeding between ports ...................................... 24.17 To protect the revenue .......................................... 4.36, 24.17
Identification cards ........................................................... 101.8 Marking, supervision of, by—Compensation ...................... 134.55 Prohibitions against .......................................................... 4.101 Search and seizure by ........................................................ 162.3-162.13, 162.21,
162.22
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955
Subject Index
CUSTOMS OFFICERS—Continued Supervision by ................................................................... 101.2(c)
CUSTOMS OFFICES (U.S.)—In foreign countries ................... 101.5 CUSTOMS REVENUE FUNCTION REGULATIONS ................. 0.1
All other Customs regulations issued under the Authority of DHS ............................................................................. 0.2
CUSTOMS SEAL—Impression ................................................. 101.7 CUSTOM SEALS
Penalty for breaking .......................................................... 18.4 Procuring and accounting .................................................. 24.13 Removal, by carrier ........................................................... 18.3(d) When required .................................................................... 18.4
CUSTOMS SECURITY AREAS—Access ................................... Part 122 subpart S CUSTOMS STATIONS and PORTS OF ENTRY ....................... 101.3, 101.4 CUSTOMS SUPERVISION ....................................................... 19.4, 19.34, 19.38,
101.2(c), 146.3 Trade fairs ......................................................................... Part 147, subpart
D
D DAMAGED MERCHANDISE—Duty allowance ........................ Part 158, subparts
B and C DANGEROUS AND HIGHLY INFLAMMABLE MERCHAN-
DISE, RESTRICTIONS ON—Warehousing ............................ 144.1(a) DATE OF ENTRY—Definition ................................................. 141.68 DATE OF IMPORTATION—Definition .................................... 101.1 DEATHS OF CUSTOMS EMPLOYEES—Claim for unpaid sal-
ary and other monies due ...................................................... 24.32 DEBTS DUE U.S.—Duties, collection ...................................... 141.1, 141.3 DECISIONS AFFECTING RATE OF DUTY ............................. 152.16, 152.17,
174.27, 174.29, 175.22, 177.10
DECLARATION OF USE—Vessel supplies ............................... 10.64 DECLARATIONS
Agent’s, on entry ............................................................... 141.19(b) American goods returned ................................................... 10.103, 145.35 Articles
Assembled abroad ........................................................ 10.24 Exported for processing ............................................... 10.9
For repairs ............................................................. 10.8 ATPA ................................................................................. 10.207 Baggage
Articles not declared or false statement, penalty ....... 148.18, 148.19, 148.67
Bond for production of consignee’s .................................... 141.19 Books, periodicals, etc. ...................................................... 141.19(c) CBI ..................................................................................... 10.198 Consignee to make, on entry ............................................. 141.19 Crew ................................................................................... 148.62, 148.66 Department of Defense transports, baggage ...................... 148.73 Domestic products ............................................................. 10.1 GSP .................................................................................... 10.173 Household effects used abroad, form, bond ........................ 148.52 Imported articles exported ................................................ 10.8a Mail shipments .................................................................. 145.11 Match importations ........................................................... 12.34 Motor vehicles and motor vehicle equipment .................... 12.80
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956
19 CFR Ch. I (4–1–12 Edition)
DECLARATIONS—Continued Oral .................................................................................... 148.12 Owner’s declaration, production of by nominal consignee . 141.20 Requirements ..................................................................... 148.11-148.17,
148.65, 148.66 Tools of trade, form ........................................................... 148.53
DEDUCTIVE VALUE ............................................................... 152.105 DEEMED LIQUIDATEDS ......................................................... 159.11 DEFENSE PRODUCTION ACT OF 1950—Transportation or-
ders ....................................................................................... 4.74 DEFICIENCIES IN CONTENTS OF PACKAGES ...................... 158.5 DEFICIT IN DUTY AFTER APPLYING PROCEEDS OF
SALE .................................................................................... 127.37 DEFINITIONS
ABI ..................................................................................... 143.32(b) Absolute (or quantitative) quotas ...................................... 132.1 Abstract ............................................................................. 191.2(a) Abstract (drawback) .......................................................... 191.2(i) Accessories, spare parts or tools that are delivered with
a good and form part of the good’s standard accessories, spare parts or tools ......................................................... 181 App
ACS .................................................................................... 143.32(a) Act ..................................................................................... 12.90, 12.110,
146.1(b)(1), 147.1, 191.2(b)
Activation .......................................................................... 146.1(b)(2) Activities ........................................................................... 163.1 Actual loss of duties .......................................................... 162.71(a)(1) Actual loss of revenue ........................................................ 162.71(b)(1) Adjusted to an F.O.B basis ................................................. 181 App Administrative workweek ................................................. 24.16(b)(2) Administrator .................................................................... 12.110 Admit ................................................................................. 146.1(b)(3) Advanced in value .............................................................. 102.1(a) Advance ruling ................................................................... 181.92(a)(1) Adverse marking decision .................................................. 181.112(a) Advisory ruling (government procurement) ...................... 177.22(b) Agent ................................................................................. 122.1, 141.19(b)(1) Agreement (NAFTA) .......................................................... 143.32(c) Aircraft .............................................................................. 122.1
Civil ............................................................................. 10.183(a) Foreign ........................................................................ 122.165(a) Commercial .................................................................. 122.1 Private ......................................................................... 122.1(h), 122.23(a)
Aircraft commander .......................................................... 122.1 Alteration .......................................................................... 146.1(b)(4) American fishery ............................................................... 10.78(b) American-made .................................................................. 10.12(a) American vessel ................................................................. 4.9 Analysis record (Laboratories) .......................................... 151.12 Apparel article ................................................................... 10.26
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Applicable change in tariff classification .......................... 181 App. Archaeological or ethnological material of the State
Party to the 1970 UNESCO Convention ........................... 12.104(a) Arrival (fees for services) ................................................... 24.22(a)(2) Arrival of a vessel .............................................................. 4.0
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957
Subject Index
DEFINITIONS—Continued Article ................................................................................ 12.120(a)
Chemical substances .................................................... 12.120(a)(1)(iii) Exported ...................................................................... 191.172(c) Qualified ...................................................................... 191.172(a) Same kind and quality ................................................. 191.172(b)
Articles Apparel ........................................................................ 10.26(c)(1) For a fair ...................................................................... 147.1 Textile ......................................................................... 10.26(c)(1) Textile or apparel ........................................................ 10.26(c)(1)
Assembly ............................................................................ 10.12(b) Assembled articles ....................................................... 10.12
In one or more countries AGOA .................................................................. 10.212 CBTPA ................................................................ 10.222
Assembly operations abroad ........................................ 10.16(a) Operations incidental to assembly .............................. 10.16(b) Operations not incidental to assembly ........................ 10.16(c)
Assist (valuation of merchandise) ...................................... 152.102(a) Assistant Commissioner (Laboratories) ............................ 151.12 Assistant Commissioner (Office of Field Operations) ........ 111.1 Associated equipment (safety standards) .......................... 12.85 A.T.A. carnet (admission Temporaire—Temporary Admis-
sion) ................................................................................ 114.1(d) Attribution (petroleum/FTZ) ............................................. 146.92(a) Audit (recordkeeping) ........................................................ 163.1 Authorized agent ............................................................... 177.1(d)(4),
181.92(a)(2) Automotive component (NAFTA) ...................................... 181 App. Automotive component (assembly) ................................... 181 App. Baggage and effects (personal or household use) ............... 148.81(b), 148.84(b) Barges, Lash-Types ............................................................ 4.81(g), 4.81a Barrels ............................................................................... 151.41 Base pay (overtime services) .............................................. 24.16 Beneficiary country
AGOA ........................................................................... 10.212 ATPA ........................................................................... 10.26(c)(2), 10.202 CBI ............................................................................... 10.191(b)(1),
10.195(b) Developing ................................................................... 10.178a
Blackstrap molasses .......................................................... 10.139 Boats (safety standards) .................................................... 12.85(a) Bona fide gift ..................................................................... 10.153 Broker ................................................................................ 111.1, 143.32(d) Business day ...................................................................... 101.1 Calendar year (fees for services) ........................................ 24.22(a)(3) Callback (overtime services) .............................................. 24.16 Canada (NAFTA) ................................................................ 181.1(a) Canadian article ................................................................ 10.84 Cargo .................................................................................. 128.1(b) Cargo (harbor maintenance fee) ......................................... 24.24 Carrier ............................................................................... 112.1
Common ....................................................................... 18.1(a)(1), 112.1 Contract ....................................................................... 112.1 Private ......................................................................... 112.1
Cartman ............................................................................. 112.1 Casualty ............................................................................. 4.14(h)(2)(i)
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958
19 CFR Ch. I (4–1–12 Edition)
DEFINITIONS—Continued CBERA ............................................................................... 10.222, 10.232 CBTPA beneficiary country ............................................... 10.222, 10.232
Originating good .......................................................... 10.232 Centralized examination station (CES) ............................. 118.1 Certificate of delivery ........................................................ 191.2(c) Certificate of manufacture and delivery ............................ 191.2(d) Certification ...................................................................... 143.32(e) Certified (export control) ................................................... 192.1 Certified recordkeeper ....................................................... 163.1 Certifying Authority .......................................................... 115.3(a) Change in classification (CFTA) ........................................ 10.303(c) Charges (liens) ................................................................... 141.112 Check samples (Laboratories) ............................................ 151.12 Chemical substance in bulk form ...................................... 12.120(b) Citizen ................................................................................ 4.0 Civil aircraft ...................................................................... 10.183 Claimant (liens) ................................................................. 141.112 Clean kg ............................................................................. 151.61(a) Clean pound (wool and hair) .............................................. 151.61 Clean yield (wool and hair) ................................................ 151.61(b) Clerical error or other mistake .......................................... 122.162, 123.9(g)
Manifest discrepancy ................................................... 4.12(a)(5)(a) Special procedures ....................................................... 162.71(e)
Closely integrated administrative control ........................ 128.1(f) Closing date (trade fairs) ................................................... 147.1 Coastwise port ................................................................... 4.80a Commercial
Aircraft ........................................................................ 122.1 Cargo (harbor maintenance fee) ................................... 24.24 Gaugers ........................................................................ 151.13 Importation (NAFTA) .................................................. 181.1(b) Laboratories ................................................................ 151.12 Vessel (harbor maintenance fee) .................................. 24.24
Commercially interchangeable merchandise ..................... 191.2(e) Commingled (rules of origin) ............................................. 102.1(b) Commission ........................................................................ 152.102(b) Commissioner
Carnets ......................................................................... 114.1 Certification ................................................................ 115.3(b)
Commodity Group Brochure (Laboratories) ...................... 151.12 Common carrier ................................................................. 18.1, 112.1
Control, ownership; trademarks .................................. 133.2 Commute compensation (overtime) ................................... 24.16 Complete copy (export control) ......................................... 192.1 Compliance assessment (recordkeeping) ............................ 163.1(e) Conditionally admissible merchandise .............................. 146.1 Conspicuous (marking) ...................................................... 134.1(k) Constructive transfer (foreign trade zones) ....................... 146.1(b) Container (certification) .................................................... 115.3(c) Continuous assignment (overtime services) ...................... 24.16(b)(6) Contract carrier ................................................................. 112.1 Convention (cultural property) .......................................... 12.104(b)
Vessel ........................................................................... 4.96 Copy (export control) ......................................................... 192.1 Costs incurred in packing (NAFTA) ................................... 181 App. Country
GSP .............................................................................. 10.171(b)
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959
Subject Index
DEFINITIONS—Continued Country—Continued
Marking ....................................................................... 134.1 Political entity ............................................................ 134.1(a) Possessions .................................................................. 152.23
Country of origin Government procurement ............................................ 177.22(a) Marking purposes ......................................................... 134.1(b) Pre-Columbian monumental or architectural sculp-
ture or mural ............................................................ 12.105(c) Textile and apparel products ....................................... 102.21(b)(1)
Courier shipment ............................................................... 128.1(c) Crib .................................................................................... 19.37(a) Crude petroleum ................................................................ 10.179 Cuba ................................................................................... 122.151(b) Cultural property ............................................................... 12.104(c) Current (ongoing) transactions .......................................... 177.1(d)(3) Customs
Accredited Laboratories .............................................. 151.12 Administration (NAFTA) ............................................. 181.1 And related laws .......................................................... 177.1(d)(5) And TIR/Container Plan .............................................. 115.3(g) Approved gaugers ......................................................... 151.13 Broker .......................................................................... 111.1 Business ....................................................................... 111.1 Documents ................................................................... 103.21(c) Duty (NAFTA) ............................................................. 181.1(d) Employee ..................................................................... 103.21(b) Officer (overtime services) ........................................... 24.16 Security area ............................................................... 122.181 Station ......................................................................... 101.1 Supervision .................................................................. 101.2(c) Territory (foreign trade zones) .................................... 146.1(b) Territory of the U.S. .................................................... 101.1, 134.1(f), 145
(Appendix) Value (NAFTA) ............................................................ 181 App.
Cut in one or more AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Dangerous caustic or corrosive substances ........................ 12.1 Data ................................................................................... 143.32(f) Data, technical (recordkeeping) ........................................ 163.1 Date
Closing ......................................................................... 147.1(e) Entry ........................................................................... 101.1, 141.68 Exportation .................................................................. 101.1, 152.1 Importation ................................................................. 101.1(h) Landing ........................................................................ 158.14 Liquidation .................................................................. 159.9, 159.10, 174.12
Days (NAFTA) ................................................................... 181 App. Deactivation (foreign trade zones) ..................................... 146.1(b)(7) Default ............................................................................... 146.1(b)(8) Degree/sugar degree ........................................................... 151.21(a) Departure of a vessel ......................................................... 4.0(g) Designated archaeological or ethnological material ......... 12.104(d) Designated merchandise (drawback) .................................. 191.2(f) Destruction ........................................................................ 191.2(g) Determination of origin ..................................................... 181.1(e)
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960
19 CFR Ch. I (4–1–12 Edition)
DEFINITIONS—Continued Development assistance (harbor maintenance fee) ............ 24.24 Direct cost of processing operations (GSP) ....................... 10.178(a) Direct cost of processing or assembly (CFTA) ................... 10.305 Direct costs of processing (ATP) ........................................ 10.206 Direct costs of processing (CBI) ......................................... 10.197 Direct identification drawback .......................................... 191.2(h) Direct labor costs (NAFTA) ............................................... 181 App. Direct material costs (NAFTA) ......................................... 181 App. Direct overhead (NAFTA) .................................................. 181 App. Direct physical identification ............................................ 102.1(c) Direct shipment (insular possessions) ............................... 7.3(e) Direct shipment (CFTA) .................................................... 10.306 Distant foreign port ........................................................... 4.80(a) District .............................................................................. 111.1, 112.1 Documentation .................................................................. 143.32 Documented (Vessel) .......................................................... 4.0(c) Domestic interested party(ies) .......................................... 175.3 Domestic (international traffic) ........................................ 123.12 Domestic (locomotives and equipment) ............................. 123.12 Domestic material (rules of origin) ................................... 102.1 Domestic merchandise (foreign trade zones) ..................... 146.1(b) Domestic value (seized property) ....................................... 162.43 Drawback (drawback) ........................................................ 191.2(i) Drawback claim (drawback) .............................................. 191.2(j) Drawback entry (drawback) ............................................... 191.2(k) Drawback product (drawback) ........................................... 191.2(r) Duties ................................................................................ 101.1(i) EDIFACT ........................................................................... 143.32(h) Electronic entry ................................................................. 143.32(j) Electronic entry summary ................................................. 143.32(k) Electronic immediate delivery .......................................... 143.32(i) Eligible (ATP) .................................................................... 10.202 Eligible articles (CBI) ........................................................ 10.191 Embark .............................................................................. 4.80a(a)(4) Employee ........................................................................... 111.1 Entered (ATP) .................................................................... 10.202(c) Entered (CBI) ..................................................................... 10.191(b)(4) Entered for consumption ................................................... 141.0a(f) Entered for warehouse ....................................................... 141.0a(g) Enterprise (NAFTA) ........................................................... 181 App. Entry for temporary inspection bond ................................ 141.0a(h) Entry ................................................................................. 141.0a(a) Entry or withdrawal for consumption ............................... 101.1 Entry records/(a)(1)(A) list (recordkeeping) ....................... 163.1(f) Entry summary .................................................................. 141.0a(b) Estimated duties ................................................................ 10.39 Excluded costs (NAFTA) .................................................... 181 App. Executive Director (Labs) .................................................. 151.12(a) Exemption (assembled articles) ......................................... 10.12 Export ................................................................................ 192.1 Exportation ........................................................................ 101.1 Exportation, country of ..................................................... 152.23 Exportation (drawback) ..................................................... 191.2(m)(1) Exported article (petroleum derivatives) ........................... 191.172(c) Exporter (drawback) .......................................................... 191.2(m)(2) Exporter (NAFTA) ............................................................. 181.1(f), 181.112(b) Express consignment operator or carrier .......................... 128.1(a)
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961
Subject Index
DEFINITIONS—Continued Fabric ................................................................................ 10.25 Fabric (CBI) ....................................................................... 10.195 Fabric-making process ....................................................... 102.21 Fabricated component (assembled abroad with U.S. com-
ponents) .......................................................................... 10.12(d) Fabricated component (assembled abroad with U.S. com-
ponents) .......................................................................... 10.14 Fabricated component (assembled abroad with U.S. com-
ponents) .......................................................................... 10.15 Fair (trade fairs) ................................................................ 147.1 Fair operator (trade fairs) ................................................. 147.1 Fair retail value (classification and appraisement) ........... 152.1(d) Feedstock factor (petroleum/FTZ) ..................................... 146.92(c) Feedstocks (petroleum/FTZ) .............................................. 146.92(b) Ferry (fees for services) ..................................................... 24.22(a)(4) Ferry (harbor maintenance fee) ......................................... 24.24(b)(4) Filer ................................................................................... 143.32 Filing ................................................................................. 141.0a(d) Filing (drawback) .............................................................. 191.2 Final determination (gov’t procurement) .......................... 177.22 Final product (petroleum/FTZ) .......................................... 146.92 Findings and trimmings
AGOA ........................................................................... 10.213 CBTPA ......................................................................... 10.223
Fiscal year pay cap (overtime services) ............................. 24.16(b)(8) Fishing ............................................................................... 4.96 Foreign
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Foreign (international traffic) ........................................... 123.12 Foreign (locomotives and other equipment) ...................... 123.12 Foreign account and ownership ......................................... 191.133 Foreign area ....................................................................... 122.141 Foreign civil aircraft ......................................................... 122.165 Foreign material (rules of origin) ...................................... 102.1 Foreign materials (insular possessions) ............................. 7.3 Foreign merchandise (foreign trade zones) ........................ 146.1(b) Foreign origin (marking) ................................................... 134.1(c) Foreign port or place ......................................................... 4.2 Formal entry (vessels) ....................................................... 4.9 Formed uppers ................................................................... 102.20 Fraud ................................................................................. 181.82 Freight (liens) .................................................................... 141.112 Freight forwarder .............................................................. 111.1, 112.1 Fungible goods (NAFTA) ................................................... 181 App. Fungible goods/materials (rules of origin) ......................... 102.1 Fungible materials (NAFTA) ............................................. 181 App. Fungible merchandise (foreign trade zones) ...................... 146.1(b) Fungible merchandise/articles (drawback) ........................ 191.2(o) Fur product ........................................................................ 11.12a Further review (protests) ................................................... 174.1 Gaugers, Customs-approved (testing of merchandise) ....... 151.13(a) General average (liens) ...................................................... 141.112 General manufacturing drawback ...................................... 191.2 General sample (wool and hair) ......................................... 151.61(e) Generally accepted accounting principles ......................... 152.102(c), 181.1 Good of a NAFTA country (country of origin marking) .... 134.1(g)
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962
19 CFR Ch. I (4–1–12 Edition)
DEFINITIONS—Continued Good wholly obtained/produced (rules of origin) ............... 102.1(g) Government cartage .......................................................... 125.1(a) Guaranteeing association (carnets) ................................... 114.1(c) Harmonized System (NAFTA) ........................................... 181 App. Harmonized System (rules of origin) ................................. 102.1 Headquarters office ............................................................ 177.1 Headquarters office (NAFTA) ............................................ 181.92 Heavy-duty vehicle (NAFTA) ............................................. 181 App. Holiday (hours of business) ................................................ 101.6 Holiday (overtime services) ............................................... 24.16(b) Household effects ............................................................... 148.52 HTSUS
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222 and 10.232 NAFTA ......................................................................... 181.1
Hub .................................................................................... 128.1 Humanitarian assistance (harbor maintenance fee) .......... 24.24(b)(5) Identical goods (NAFTA) ................................................... 181 App. Identical materials (NAFTA) ............................................. 181 App. Identical merchandise (valuation) ..................................... 152.102(d) Imported directly ............................................................... 10.175
AGOA ........................................................................... 10.213 CBTPA ......................................................................... 10.223 and 10.233
Imported directly ATP .............................................................................. 10.204 CBI ............................................................................... 10.193 GSP .............................................................................. 10.175(e)(2)
Importer ............................................................................. 101.1 Importer (NAFTA) ............................................................. 181.1 Importer’s cartage ............................................................. 125.1(b) Importer security filing importer ...................................... 149.1 Importer filing importation ............................................... 149.1 Importer security filing bulk cargo ................................... 149.1 Importer security filing break bulk cargo ......................... 149.1 Improved in condition (rules of origin) .............................. 102.1 Incorporated (NAFTA) ....................................................... 181 App. Incorporated (rules of origin) ............................................. 102.1 Indirect material (NAFTA) ................................................ 181 App. Indirect materials (rules of origin) .................................... 102.1 Information letter ............................................................. 177.1(d)(2) Information letter (NAFTA) .............................................. 181.92 Inquiry (recordkeeping) ..................................................... 163.1 Insignificant preliminary preparation ............................... 12.95(b) Instruments of int’l traffic ................................................ 10.41a Interest costs (NAFTA) ...................................................... 181 App. Interlinings
AGOA ........................................................................... 10.213 CBTPA ......................................................................... 10.223
Intermediate material (NAFTA) ........................................ 181.1, 181 App. Intermittent employee (overtime services) ....................... 24.16(b)(10) Issuing association (carnets) ............................................. 114.1 International airport ......................................................... 122.1 Knit to shape ..................................................................... 102.21
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Laboratory, Customs-accredited ........................................ 151.12 Landing rights airport ....................................................... 122.1
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963
Subject Index
DEFINITIONS—Continued LASH-type barges .............................................................. 4.81(g) Letter class mail ................................................................ 145.1(b) Light-duty automotive good (NAFTA) .............................. 181 App. Light-duty vehicle (NAFTA) .............................................. 181 App. Lighterman ........................................................................ 112.1 Limits of any Customs port ............................................... 4.6(b), 101.3 Liquidation ........................................................................ 159.1 Listed material (NAFTA) .................................................. 181 App. Location of the producer (NAFTA) .................................... 181 App. Locomotives or other railroad equipment, domestic and
foreign ............................................................................. 123.12(d) Loss of duties (special procedures) .................................... 162.71 Loss of revenue (special procedures) .................................. 162.71 Made in one or more CBTPA .............................................. 10.222 Mail article ........................................................................ 145.1 Major conversion ............................................................... 191.133 Majority of hours (overtime services) ................................ 24.16 Major parts ........................................................................ 102.21
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Manufacturing period (petroleum/FTZs) ........................... 146.92(e) Manufacture or production (drawback) ............................. 191.2 Manufacturer (certification) .............................................. 115.3 Marking rules (NAFTA) ..................................................... 134.1, 181.1 Material (NAFTA) ............................................................. 181 App. Material (rules of origin) ................................................... 102.1 Materials (CFTA) ............................................................... 10.303 Materials produced in a (CBI) ............................................ 10.196 Materials produced in the U.S. (ATPA) ............................. 10.206(c) Measure (NAFTA) .............................................................. 181.1 Meat and meat food products ............................................. 12.8 Merchandise (foreign trade zones) ..................................... 146.1 Merchandise of the same class ........................................... 152.102 Mexico (NAFTA) ................................................................ 181.1 Minor processing (rules of origin) ...................................... 102.1 Mistake of fact (special procedures) .................................. 162.71 Month (NAFTA) ................................................................. 181 App. Motor vehicle assembler (NAFTA) .................................... 181 App. Multiple products (drawback) ............................................ 191.2 Museum (cultural property) ............................................... 12.104 NAFTA ............................................................................... 181.1
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222, 10.232 Country (NAFTA) ........................................................ 181.App. Drawback ..................................................................... 181.1 Marking and marking rules ......................................... 134.1 Transaction (NAFTA) .................................................. 181.92
National (NAFTA) ............................................................. 181 App. National Commodity Specialist Division .......................... 181.92(a)(6) Nearby foreign port ............................................................ 4.80a Net cost method (NAFTA) ................................................. 181 App. Net cost of a good (NAFTA) ............................................... 181.1 New or different article (GSP) ........................................... 10.176 Night work (overtime services) .......................................... 24.16 Noncommerical importation (special procedures) ............. 162.71(d) Noncontiguous territory of the U.S. .................................. 4.0(d) Nonconvention
Cargo vessel ................................................................. 4.96(a)(3)
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19 CFR Ch. I (4–1–12 Edition)
DEFINITIONS—Continued Nonconvention—Continued
Fishing vessel .............................................................. 4.96(a)(2) Nonresidents ...................................................................... 141.31, 148.2 Non-allowable interest costs (NAFTA) .............................. 181 App. Non-originating good (NAFTA) ......................................... 181 App. Non-originating material (NAFTA) ................................... 181 App. Non-profit (harbor maintenance fee) ................................. 24.24 Officer ................................................................................ 111.1 Operations incidental to assembly .................................... 10.16 Operator (foreign trade zones) ........................................... 146.1 Origin of goods (insular possessions) ................................. 7.3 Original (recordkeeping) .................................................... 163.1 Original equipment (NAFTA) ............................................ 181 App. Original motor-vehicle equipment ..................................... 10.84 Originating
AGOA ........................................................................... 10.212 CFTA ........................................................................... 10.302 NAFTA ......................................................................... 181.1
Originating component (availability of information) ........ 103.21(d) Originating good (NAFTA) ................................................ 181 App. Originating material (NAFTA) .......................................... 181 App. Other costs (NAFTA) ......................................................... 181 App. Overtime pay (overtime services) ...................................... 24.16 Package ............................................................................. 145.1(a) Packaging materials (NAFTA) .......................................... 181 App. Packing costs ..................................................................... 152.102(e) Packing materials (NAFTA) .............................................. 181 App. Party-at-interest (government procurement) .................... 177.22(d) Party/person (recordkeeping) ............................................. 163.1 Passenger ........................................................................... 4.50, 4.80a Payable .............................................................................. 152.103 Payments (NAFTA) ........................................................... 181 App. Period costs (NAFTA) ........................................................ 181 App. Permit ................................................................................ 111.1 Permitted merchandise ...................................................... 158.1 Person ................................................................................ 111.1 Person (NAFTA) ................................................................ 181 App., 181.1 Person of a NAFTA country (NAFTA) ............................... 181 App. Personal effects ................................................................. 148.74 Petroleum refinery (petroleum/FTZ) ................................. 146.92 Piratical copies (trademarks) ............................................ 133.42(a) Place .................................................................................. 122.23 Point of direct shipment (NAFTA) .................................... 181 App. Port director (foreign trade zones) .................................... 146.1 Port (harbor maintenance fee) ........................................... 24.24 Port of arrival .................................................................... 122.112 Port/port of entry .............................................................. 101.1 Port (trade fairs) ................................................................ 147.1 Possession (drawback) ....................................................... 191.2 Possessions of the U.S. (harbor maintenance fee) .............. 24.24 Potential loss of duties ...................................................... 162.71 Potential loss of revenue ................................................... 162.71 Preclassification/binding ruling number ........................... 143.32(m) Preclearance ...................................................................... 122.1 Pre-Columbian monumental and architectural sculpture
and murals ...................................................................... 12.105 Preferential tariff treatment
CBTPA ......................................................................... 10.232
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Subject Index
DEFINITIONS—Continued Preferential tariff treatment—Continued
NAFTA ......................................................................... 181.1 Preferential treatment
CBTPA ......................................................................... 10.222 AGOA ........................................................................... 10.212
Premium pay differential (overtime services) ................... 24.16 Presentation ...................................................................... 141.0a(e) Presentation (quotas) ........................................................ 132.1 Price of product (petroleum/FTZ) ...................................... 146.92 Price paid or payable ......................................................... 152.102(f) Principal field officer ......................................................... 101.1 Private aircraft .................................................................. 122.1, 122.23 Private carrier ................................................................... 112.1 Produced in beneficiary developing country (GSP) ........... 10.177(a) Producer (NAFTA) ............................................................. 181.1, 181.112, 181
App. Producibility (petroleum/FTZ) .......................................... 146.92 Product costs (NAFTA) ...................................................... 181 App. Production (NAFTA) .......................................................... 181.1, 181 App. Production (rules of origin) ............................................... 102.1 Product of the U.S. (assembly) .......................................... 10.12(e) Product (safety standards) ................................................. 12.85 Prohibited merchandise (foreign trade zones) ................... 146.1(b) Prospective Customs transaction ...................................... 177.1(d)(3) Prototype (certification) ................................................... 115.3 Public aircraft ................................................................... 122.1 Qualified article (petroleum derivatives) .......................... 191.172(a) Quotas ................................................................................ 132.1 Reactivation (foreign trade zones) ..................................... 146.1 Recordkeeper, certified (recordkeeping) ............................ 163.1(d) Recordkeeper, third-party (recordkeeping) ....................... 163.1(l) Records .............................................................................. 111.1 Records (drawback) ............................................................ 191.2 Records (recordkeeping) .................................................... 163.1(a)(1) Records (special entry procedures) .................................... 143.32 Region ................................................................................ 111.1 Regularly-scheduled administrative workweek ................. 24.16(b)(15) Reimbursable ..................................................................... 128.1 Related persons (cultural property) ................................... 12.104c Related persons (NAFTA) .................................................. 181 App. Related persons (valuation of merchandise) ...................... 152.102(g) Relative value (drawback) ................................................. 191.2 Relative value (petroleum/FTZ) ........................................ 146.92 Released conditionally ....................................................... 141.0a Remote location filing (RLF) ............................................ 143.32 Repetitive violation (special procedures) .......................... 162.71(c) Request for record .............................................................. 103.5(h) Residents (powers of attorney) .......................................... 141.31 Residents (status of arriving persons) ............................... 148.2 Residue cargo ..................................................................... 122.1 Responsible supervision and control .................................. 111.1 Reusable scrap (NAFTA) .................................................... 181 App. Right to use (NAFTA) ........................................................ 181 App. Road vehicle (certification) ............................................... 115.3 Royalties (NAFTA) ............................................................ 181 App. Ruling ................................................................................ 177.1(d)(1) Sales promotion, marketing (NAFTA) .............................. 181 App.
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19 CFR Ch. I (4–1–12 Edition)
DEFINITIONS—Continued Same class or kind ............................................................. 152.102(h) Same kind and quality article (petroleum derivatives) ..... 191.172(b) Sampling unit (wool and hair) ........................................... 151.61(d) Satisfactory evidence (cultural property) ......................... 12.104(c) Schedule (drawback) .......................................................... 191.2 Scheduled airline ............................................................... 122.1 Sealed letter class mail ..................................................... 145.1(c) Secretary (cultural property) ............................................ 12.104 Selectivity criteria ............................................................ 143.32 Self-produced material (NAFTA) ....................................... 181 App. Self-propelled vehicle (export control) .............................. 192.1 Selling commission (valuation of merchandise) ................ 152.102 Sent ................................................................................... 10.152 Service port ....................................................................... 101.1 Shipment ........................................................................... 101.1 Shipping and packing costs (NAFTA) ................................ 181 App. Shook ................................................................................. 10.5 Similar goods (NAFTA) ..................................................... 181 App. Similar materials (NAFTA) ............................................... 181 App. Similar merchandise (valuation of merchandise) .............. 152.102(i) Simple assembly (rules of origin) ...................................... 102.1 Specific manufacturing drawback ruling ........................... 191.2 Staple length (cotton) ........................................................ 151.81 Statement processing ........................................................ 143.32 State party (cultural property) ......................................... 12.104 Stone carving/wall art ....................................................... 12.105 Sub-component (NAFTA) ................................................... 181 App. Subject to a regional value-content requirement .............. 181 App. Submission ......................................................................... 141.0a(c) Substantial transformation (assembled abroad) ................ 10.14(b) Substituted merchandise/articles (drawback) .................... 191.2(x) Subzone (foreign trade zones) ............................................ 146.1 Sufficient information (valuation of merchandise) ........... 152.102(j) Summons (recordkeeping) ................................................. 163.1(j) Switchblade knife .............................................................. 12.95(a) Sugar degree ...................................................................... 151.21(a) Tariff provision (NAFTA) .................................................. 181 App. Tariff-rate quotas .............................................................. 132.1 TECRO/Al carnet (carnets) ................................................ 114.1 Territory (NAFTA) ............................................................ 10.26 Textile component ............................................................. 10.25 Textile component (CBI) .................................................... 10.195 Textile or apparel product ................................................. 10.26, 102.21 Theatrical scenery, properties and apparel ....................... 10.33(b) Third-party recordkeeper (recordkeeping) ......................... 163.1(l) Time of separation (petroleum/FTZ) ................................. 146.92 TIR carnet (carnets) .......................................................... 114.1 Tonnage years .................................................................... 4.20 Total cost (NAFTA) ........................................................... 181 App. Total sugars (sugars, sirups and molasses) ........................ 151.21(b) Transaction value (NAFTA) .............................................. 181.1 Transaction value method (NAFTA) .................................. 181 App. Transfer (foreign trade zones) ............................................ 146.1 Transfer/transferred ........................................................... 122.112 Transit air cargo ................................................................ 122.112 Transit air cargo manifest ................................................. 122.112 Treasury Dept. or any representative of the Treas. Dept. . 111.1
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Subject Index
DEFINITIONS—Continued Treaty vessel ...................................................................... 4.96 Ultimate purchaser (export control) .................................. 192.1 Ultimate purchaser (marking) ........................................... 134.1(d) Unclaimed merchandise ..................................................... 127.11 Unique identifier (foreign trade zones) .............................. 146.1 United States (marking) .................................................... 134.1 United States (NAFTA) ..................................................... 181.1 United States/U.S. (cultural property) .............................. 12.104 Unit price in greatest aggregate quantity ......................... 152.102(k) U.S. .................................................................................... 122.1, 122.141,
122.151 U.S. (American fisheries) ................................................... 10.78(b) Used (export control) ......................................................... 192.1 Used (NAFTA) .................................................................... 181.1, 181 App. User fee airport .................................................................. 122.1 User (foreign trade zones) .................................................. 146.1 U.S. mainland (harbor maintenance fee) ........................... 24.24 Utilitarian use (switchblade knife) .................................... 12.95 Value limitation (insular possessions) ............................... 7.3 Value (NAFTA) .................................................................. 181.1 Value of materials (CFTA) ................................................. 10.305 Value of the goods when exported ...................................... 10.305(c) Value (rules of origin) ........................................................ 102.1 Verification (drawback) ..................................................... 191.2 Verification of origin (NAFTA) ......................................... 181 App. Vessel ................................................................................. 4.0 Vessel, arrival .................................................................... 4.0 Vessel, citizen .................................................................... 4.0 Vessel, convention (fisheries) ............................................ 4.96 Vessel, departure ............................................................... 4.0 Vessel, documented ............................................................ 4.0 Vessel, (fees for services) ................................................... 24.22 Vessel, noncontiguous territory of the U.S. ...................... 4.0 Vessel, nonconvention cargo (fisheries) ............................. 4.96(a)(3) Vessel, nonconvention fishing (fisheries) ........................... 4.96(a)(2) Vessel of the U.S. ............................................................... 4.0 Vessel, treaty (fisheries) .................................................... 4.96(a)(4) Voluntarily ........................................................................ 181.82 Weighted average (petroleum/FTZ) ................................... 146.92 Wholly assembled .............................................................. 102.21
AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Wholly formed AGOA ........................................................................... 10.212 CBTPA ......................................................................... 10.222
Wholly the growth ATP .............................................................................. 10.202 GSP .............................................................................. 10.176
Wholly the growth, product, or manufacture (CBI) ........... 10.191(b)(3) Wool product ...................................................................... 11.12 Zone lot (foreign trade zones) ............................................ 146.1 Zone site (foreign trade zones) ........................................... 146.1 Zone status (foreign trade zones) ....................................... 146.1
DEMAND FOR RETURN TO CUSTOMS CUSTODY—Form ..... 141.113 DENATURING OF VEGETABLE OILS .................................... 10.56 DEPARTURE BEFORE REPORT OF VESSEL OR VEHI-
CLE—Penalty ....................................................................... 4.6
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968
19 CFR Ch. I (4–1–12 Edition)
DERELICTS—Vessels, report of arrival .................................. 4.2(c) DESCRIPTIVE LIST OF THEATRICAL EFFECTS, FILMS,
AND TRAVELERS’ SAMPLES TAKEN ABROAD AND RE- TURNED ............................................................................... 10.68, 10.69
DESIGNATION OF EXAMINATION PACKAGES .................... 151.1-151.11 DESIGNATION OF EXAMINATION PACKAGES, INFORMA-
TION AS TO RESTRICTED .................................................. 151.4, 151.5 DESTRUCTION
Abandoned merchandise subject to sale—Application— Form ............................................................................... 158.43, 158.44
Articles subject to internal revenue tax ............................ 127.28(g) In lieu of payment of duty on merchandise in bond ........... 158.43 Merchandise—Expenses of supervision of .......................... 24.17 Rejected merchandise
Food and drug products ............................................... 159.55 Plants and plant products Refund of duty ............................................................. 12.15 Viruses, serums, toxins, etc. ........................................ 12.20-12.23
Seizure ............................................................................... 162.46(d), 162.50(c) DETENTION, VESSEL OR VEHICLE ...................................... 162.22 DIPLOMATIC AND CONSULAR OFFICERS—Free entry
privilege ................................................................................ 148.82, 148.85 DISASSEMBLED ENTITIES ................................................... 141.58 DISASSEMBLY ....................................................................... 181.132 DISCLOSURE OF INFORMATION
Judicial proceedings .......................................................... Part 103, subpart B
Restricted access ............................................................... Part 103, subpart C
Under the FOIA .................................................................. Part 103, subpart A
DISCLOSURE, PRIOR, PENALTIES ....................................... 162.74 DISMANTLED VESSELS, TREATMENT OF CARGO AND
STORES ................................................................................ 4.40, 4.41 DISPOSITION OF GOODS AFTER SUMMARY FOR-
FEITURE .............................................................................. 162.46 DISTILLED SPIRITS, BOTTLES AND SIMILAR CON-
TAINERS, IMPORTED Regulations of Internal Revenue Service applicable ......... 11.7
DISTILLED SPIRITS, WINES, AND MALT LIQUORS Marking requirements ....................................................... 11.6 Summary forfeiture ........................................................... 162.46(e)
DIVERSIONS Bonded merchandise .......................................................... 18.5 Vessel, while en route ........................................................ 4.91 Vessel or cargo, emergency ................................................ 4.33 Vessel supplies ................................................................... 10.63
DOCK PASSES ......................................................................... 4.1 DOCUMENTED, DEFINITION ................................................. 4.0(c) DOCUMENTS
Availability of ................................................................... 10.24, Part 103 Extension of time to produce ............................................. 113.43 Free entry
Cancellation of bond (or charge against bond) ............. 10.64, 113.51 Late filing of ................................................................ 10.112
Missing—Bond for .............................................................. 141.66 Official, charge for copies of .............................................. 103.10 Reduced duty, late filing of ............................................... 10.112
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Subject Index
DOCUMENTS—Continued Time for production of missing documents ....................... 113.42, 113.43 Waiver of requirement for—Effect on liability .................. 113.53
DOMESTIC CONTAINERS RETURNED—Procedure ............... 10.7 DOMESTIC INTERESTED PARTY(IES), APPEALS AND
PROTESTS BY Petitions
Contents ....................................................................... 175.12 Court decision, procedure following ............................ 175.31 Decision, procedure following ...................................... 175.22-175.24 Public inspection ......................................................... 175.21 Published notice of filing ............................................. 175.21 When and how filed ...................................................... 175.11 Requests for classification, appraised value and rate
of duty ...................................................................... 175.1, 175.2 DOMINICAN REPUBLIC - CENTRAL AMERICA - UNITED
STATES FREE TRADE AGREEMENT ................................. Part 10, subpart J Textile and apparel goods, refunds of excessive duties on . 10.699
DRAWBACK Abstract of manufacturer’s records ................................... 191.2, 191.23 Agency ............................................................................... 191.9 Aircraft, supplies for .......................................................... 191.141 Allowance .......................................................................... 191.4 Allowance, Meats cured with imported salt ...................... 191.121 American goods returned—Dutiability .............................. 10.3 Ascertainment of ............................................................... 191.105 Authority of the Commissioner of Customs ...................... 191.1 Claims filed under NAFTA ................................................. 191.0a Definitions ......................................................................... 191.2 Designation of imported merchandise, substitution .......... 191.32 Distilled Spirits, wines or beers which are
unmerchantable, etc. ...................................................... Part 191, subpart P
Destruction of merchandise ......................................... 191.166 Documentation ............................................................ 191.163 Exportation by mail .................................................... 191.165 Liquidation .................................................................. 191.167 Procedure ..................................................................... 191.162 Refund of taxes ............................................................ 191.161 Returned to Customs custody ...................................... 191.164 Time limit for exportation or destruction ................... 191.168
Documents, powers of attorney required for signing of ..... 191.6 Documents required to complete claim
Notice of exportation—Form ....................................... 191.51-191.53 Duties and fees subject or not subject to drawback ........... 191.3 Duties paid to Puerto Rico, drawback on .......................... 191.5, 191.151 Entries
Liquidation of .............................................................. 191.81 Suspension of liquidation until rate established ......... 191.81
Exportation and destruction .............................................. Part 191, subpart G
Certification of exportation by mail ............................ 191.74 Exportation by the Government .................................. 191.75
Exportation, notice of ........................................................ 191.35, 191.36, 191.51-191.53, 191.91
Exportation procedures ..................................................... 191.72 Falsification of drawback claims ....................................... 191.62, 191.194
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19 CFR Ch. I (4–1–12 Edition)
DRAWBACK—Continued Foreign-Built Jet Aircraft Engines Processed in the
United States .................................................................. Part 191, subpart N
Guam ................................................................................. 191.5, 191.151 Guantanamo Bay Naval Station ........................................ 191.5, 191.151 Identification of imported merchandise ............................ 191.22, 191.23 Identification of merchandise or articles by accounting
method ............................................................................ 191.14 Import entries, charges against for ................................... 191.81 Import entries, liquidation ................................................ 191.81 Internal Revenue Tax on Flavoring Extracts and Medic-
inal or Toilet Preparations (Including Perfumery) Man- ufactured From Domestic Tax-Paid Alcohol .................. Part 191, subpart
J Landing certificates ........................................................... 191.76 Liquidation and Protest of Drawback Entries ................... Part 191, subpart
H Liquidation of duties ......................................................... Part 159 Liquidation of entries, bulletin notice of .......................... 159.9 Liquidation of import entries necessary prior to allow-
ance of ............................................................................. 191.81 Manufacturing ................................................................... Part 191, subpart
B Person entitled to claim drawback .............................. 191.28 Time limitations .......................................................... 191.27
Materials for construction and equipment of vessels and aircraft ............................................................................ Part 191, subpart
M Allowance .................................................................... 191.111 Procedure ..................................................................... 191.112
Meats cured with imported salt ......................................... 191.121-191.123 Merchandise Exported From Continuous Customs Cus-
tody ................................................................................. Part 191, subpart O
Merchandise not conforming to sample or specifications or shipped without the consent of the consignee ............ 181.45, 181.47,
191.185 Merchandise shipped to U.S. possessions ........................... 191.5, 191.151 Merchandise sold to U.S. Government ............................... 191.4 Merchandise Transferred to a Foreign Trade Zone From
Customs Custody ............................................................ Part 191, subpart R
Multiple products .............................................................. 191.2, 191.22, 191.23, 191.81
Notice of exportation Certification by port director ...................................... 191.51-191.53 Form ............................................................................ 191.51-191.53 Numbering ................................................................... 191.51-191.53 Time of filing, limitations as to .................................. 191.51-191.53
Notice of intent to export .................................................. 191.35, 191.36, 191.91
Notice of lading, supplies for vessels or aircraft ................ 191.72, 191.112 Powers of attorney ............................................................. 191.6 Proposal
Proper applicant .......................................................... 191.21(a) Sample ......................................................................... 191.21(c) Subcontractors ............................................................ 191.21(a)(2)
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Subject Index
DRAWBACK—Continued Protests ............................................................................. 191.7 Quantities of merchandise, ascertainment ........................ 191.22 Rate, application, establishment ....................................... 191.22 Recordkeeping ................................................................... 191.15 Record of, on import entries .............................................. 191.71 Records, manufacturers’ .................................................... 191.22, 191.23 Rejected merchandise ........................................................ 191.142, 191.165 Renewal of rate .................................................................. 191.22 Restrictions ....................................................................... Part 181, subpart
E Salt used for curing meats ................................................. 191.121-191.123 Samoa ................................................................................ 191.5, 191.151 Statement of manufacturer (basis for rate) ....................... 191.22 Substitution of Finished Petroleum Derivatives ............... Part 191, subpart
Q Time limitations ................................................................ 191.27, 191.32(d) Two or more products, distribution ................................... 191.81 Unused merchandise .......................................................... Part 191, subpart
C Destruction under Customs supervision ...................... 191.37 Direct identification .................................................... 191.31 Failure to file ‘‘Notice of Intent to Export Destroy or
Return Merchandise for Purposes of Drawback’’ ...... 191.36 Notice of intent to export; examination of Merchan-
dise ............................................................................ 191.35 Records ........................................................................ 191.38
U.S. possessions, applicability on shipments to ................ 191.5, 191.151 Verification of drawback claims ........................................ 191.61 Vessels
Documents required to complete claim ....................... 191.51, 191.52 Material for original construction and equipment ...... Part 191, subpart
M Virgin Islands, shipments to .............................................. 191.5, 191.151 Wastes, valuable ................................................................ Part 191, subpart
B DRUGS, ETC.—Importation procedure .................................... 12.1, 12.3-12.5 DRUMS (substantial containers or holders)
Domestic manufacture returned ........................................ 10.7(a) Duty to be collected in lieu of drawback paid, amount of . 10.7(f) Foreign manufacture exported and returned ..................... 10.7(b)
DUMPING DUTIES .................................................................. 159.41, 159.58 DUNNAGE ................................................................................ 4.14, 4.39 DUTIABLE CONTENTS METAL BEARING MATERIALS ...... 19.19, 151.55 DUTIES
Abandoned merchandise—Refund ...................................... Part 158, subpart D
Accrue, when ...................................................................... 141.1 Additional
Antiques ....................................................................... 159.45 Articles not legally marked ......................................... 134.2, 159.46 Discrimination by foreign country .............................. 159.42 Dumping ...................................................................... 159.41, 159.58 Foreign export duties, etc., contingent upon ............... 159.44
Allowance Casualty, loss, or theft while in Customs custody ....... Part 158, subpart
C Damaged or defective merchandise .............................. Part 158, subpart
B
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19 CFR Ch. I (4–1–12 Edition)
DUTIES—Continued Allowance—Continued
Destroyed, abandoned, or exported merchandise ......... Part 158, subpart D
Excessive moisture, etc. .............................................. 151.46, 158.13 Merchandise lost, stolen, destroyed, injured, aban-
doned, or shortshipped .............................................. 159.8 Natural force or leakage .............................................. 158.7 Nonimportation ........................................................... 158.11 Perishable and condemned merchandise ...................... 158.11, 158.14 Shortages, lost or missing packages ............................ 158.3 Warehoused merchandise ............................................. 144.3, 144.4
Bill to importer for increased or additional—Form ........... 24.11 Change in rates .................................................................. 152.16, 152.17,
175.22, 177.10 Chargeable ......................................................................... 127.33 Checks receivable in payment of ....................................... 24.1 Computation of .................................................................. 159.1, 159.3, 159.4,
159.6, 141.104 Consignee’s liability for ..................................................... 141.19, 141.20 Corn or maize seed, reduced rate ....................................... 10.57 Countervailing ................................................................... 159.47 Death of importer .............................................................. 141.1 Deficit after applying proceeds of sale ............................... 127.37 Difference between liquidated and estimated duties ......... 159.6 Dumping ............................................................................ 159.58 Effective date ..................................................................... 141.1 Erroneous construction of law or regulation—Importer’s
liability ........................................................................... 141.1 Estimated
Depositing of ................................................................ Part 141, subpart G
On entries .................................................................... Part 141, subpart G
Raw sugar .................................................................... 151.22 Warehouse entries, on .................................................. 144.12 Flat rate ...................................................................... 148.102
Government importations ................................................. 10.100-10.104, 141.102(d)
Importations having a value not exceeding $200 ................ 10.151 Importer’s liability as a personal debt .............................. 141.1 Increased (possible) ............................................................ 141.105, 152.2 Insolvency of importer ....................................................... 141.1 Insufficient proceeds of sale ............................................... 127.37 Liability for ....................................................................... 162.80 Liability for—Warehouse merchandise .............................. 144.2, 144.3 Lien on merchandise .......................................................... 141.1(d) Marking, assessment of ..................................................... 134.2, 159.46 Noncommercial importations of limited value .................. Part 148, subpart
J Personal debt ..................................................................... 141.1(b) Potatoes, seed—Reduced rate of duty ................................ 10.57 Priority of Government claim for ...................................... 141.1(c) Protest of payment ............................................................ 145.22, 174.11 Rates of informal mail entry ............................................. 145.12 Rates of, to be noted on invoice ......................................... 141.90 Receipt for, baggage declarations—Forms ......................... 148.27 Receipts for formal or appraisement entries—Form .......... 24.3
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Subject Index
DUTIES—Continued Refund of
Certain leather-related articles ................................... 10.198a Exportation of merchandise from Customs custody .... 158.45 Reliquidation, refunds ................................................. 24.36, 176.31 To whom payable ......................................................... 24.36
Salt for curing fish—Conditionally free ............................. 10.80, 10.81,10.83 Seized merchandise ............................................................ 148.18, 148.19 Seizure or Penalty—Collection .......................................... 148.19, 162.79(b) Smuggled articles .............................................................. 148.18(a) Special, on articles imported under agreements in re-
straint of trade ............................................................... 159.44 States not exempt from payment of .................................. 141.1(e) Supplies for vessels exempt from ....................................... 10.59 Wool and hair products after determining clean content .. 151.65
DUTY-FREE ENTRY FOR CERTAIN BEVERAGES PRO- DUCED IN CANADA FROM CARIBBEAN RUM .................... 10.199
DUTY-FREE STORES ............................................................. 19.35-19.39 DUTY-FREE TREATMENT FOR SUB-SAHARAN AFRICAN
COUNTRIES .......................................................................... 10.178a DUTY-FREE TREATMENT; PUERTO RICO ........................... 10.198b DUTY-PAID GOODS IN PUBLIC STORES OR BONDED
WAREHOUSE UNDELIVERED—Disposition ........................ 127.14
E EDUCATIONAL PURPOSES, ARTICLES FOR ........................ 10.67 EFFECTS OF CITIZENS DYING ABROAD .............................. 148.54 EFFECTS, PERSONAL AND HOUSEHOLD
Military, Civilian employees of U.S. and evacuees ............ Part 148, subpart H
Noncommercial importations of limited value .................. Part 148, subpart J
Nonresidents ...................................................................... Part 148, subpart E
Returning residents ........................................................... Part 148, subpart D
Repairs or alterations ........................................................ 148.31(b) EGGS AND PLUMAGE OF WILD BIRDS, IMPORTATION—
Restrictions .......................................................................... 12.29 ELECTRONIC ENTRY AND ENTRY SUMMARY DOCU-
MENTATION ......................................................................... 143.31-37, 143.39 Remote location filing ....................................................... Part 143, subpart
E ELECTRONIC INFORMATION FOR AIR CARGO REQUIRED
IN ADVANCE OF ARRIVAL ................................................. 122.48a ELECTRONIC INFORMATION FOR OUTWARD CARGO RE-
QUIRED IN ADVANCE OF DEPARTURE ............................. 192.14 ELECTRONIC MANIFEST REQUIREMENT FOR CREW
MEMBERS AND NON-CREW MEMBERS ON-BOARD COM- MERCIAL AIRCRAFT ARRIVING IN, CONTINUING WITH- IN, AND OVERFLYING THE UNITED STATES ................... 122.49b
ELECTRONIC MANIFEST REQUIREMENT FOR CREW MEMBERS AND NON-CREW MEMBERS ONBOARD COM- MERCIAL AIRCRAFT DEPARTING FROM THE UNITED STATES ................................................................................ 122.75b
ELECTRONIC MANIFEST REQUIREMENT FOR PAS- SENGERS ONBOARD COMMERCIAL AIRCRAFT ARRIV- ING IN THE UNITED STATES ............................................. 122.49a
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ELECTRONIC MANIFEST REQUIREMENT FOR PAS- SENGERS ONBOARD COMMERCIAL AIRCRAFT DEPART- ING FROM THE UNITED STATES ....................................... 122.75a
ELECTRONIC PASSENGER AND CREW ARRIVAL MANI- FESTS .................................................................................. 4.7b
ELECTRONIC PASSENGER AND CREW MEMBER DEPAR- TURE MANIFESTS .............................................................. 4.64
ELECTRONIC PRODUCTS ....................................................... 12.90, 12.91 EMERGENCY—Diversion of cargo ........................................... 4.33 EMERGENCY LANDING, AIRCRAFT ..................................... 122.35 EMERGENCY PURCHASES OF WAR MATERIAL ABROAD .. 10.102(b) EMERGENT TEMPORARY USE OF FIRE-FIGHTING, RES-
CUE AND RELIEF EQUIPMENT AND SUPPLIES ............... 10.107 EMISSION STANDARDS ......................................................... 12.73 ENFORCEMENT POWERS ...................................................... Part 161 ENGINES, NONROAD, COMPLIANCE WITH FEDERAL AN-
TIPOLLUTION EMISSION REQUIREMENTS ...................... 12.74 ENGLISH LANGUAGE; REQUIREMENT ................................ 122.4, 141.86 ENGRAVINGS, BOOKS, ETC.—U.S. Agencies, conditionally
free ........................................................................................ 10.46, 145.37 ENGRAVINGS—Free entry, evidence required ........................ 10.48 ENTRIES
Affidavits required to accompany ...................................... 12.6 Engines, nonroad ............................................................... 12.74 Filing of—When ................................................................. 141.4, 141.5 Form of .............................................................................. 141.61, 143.31-
143.37, 143.39 Gauging, measuring, or weighing order when noted on ..... 141.86(f) Requirements on ................................................................ 141.61-141.64,
141.66-141.68 Shipments arriving on one vessel or vehicle consigned to
one consignee—Separate, when ....................................... 141.51, 141.52 Signing of ........................................................................... 141.61(b)
ENTRY AND CLEARANCE, AIRCRAFT .................................. 122.41, 122.42, 122.62, 122.64, 122.77
ENTRY AND CLEARANCE, CUBA .......................................... 122.151-122.158 ENTRY AND CLEARANCE—Vessels, who may make ............. 4.9 ENTRY DOCUMENT—Carnet .................................................. 114.3 ENTRY—Gifts, not exceeding $100 in value, no entry re-
quired .................................................................................... 10.152 ENTRY OF MERCHANDISE
Abandoned or destroyed goods—Duty allowance ............... 158.41-158.44 Actual owner’s declaration—superseding bond .................. 141.20 Administrator or executor may make ............................... 141.14 Agent of consignee may make ........................................... 141.19(b) Applicable rate of duty ...................................................... 141.69 Appraisement entries
Form and procedure ..................................................... 143.11-143.16 Liquidation of .............................................................. 159.9 Warehouse entries may be substituted for ................... 143.16
Arrival as condition for ..................................................... 141.63, 141.68 Auditory or visual materials ............................................. 10.121 Automated broker interface (ABI) ..................................... 143.1-143.8 Automobiles, safety standards ........................................... 12.80 Baggage—
Declaration and baggage entries—Forms .................... 148.6, 148.11-148.17 Formal entry, when not required ................................. 148.23(c), 143.21
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Subject Index
ENTRY OF MERCHANDISE—Continued Baggage——Continued
Liquidation of, entries ................................................. 159.10 Baggage not declared penalty ............................................ 148.18 Bills of lading ..................................................................... 141.11 Boats, safety standards ...................................................... 12.85 Bond for production of bill of lading .................................. 141.15 Bonded cartman or lighterman to be designated on ware-
house entry ..................................................................... 125.11 Bonded merchandise, cartman to be designated by im-
porter .............................................................................. 125.22 Caribbean Basin Initiative ................................................. 10.191-10.198 Cheeses ............................................................................... 12.6 Commercial invoices, when and when not required ........... 141.91, 141.92,
141.81-141.83 Condemned perishable goods—Duty allowance .................. 158.14 Conditionally free, cancellation of bond ............................ 10.39 Consignee ........................................................................... 141.19, 141.20, 101.1,
141.14 Consolidated shipments ..................................................... 141.52-141.54,
141.61(d)(2) Damaged goods, duty allowance ........................................ 158.11, 158.12,
158.14, 158.21- 58.27
Declarations required on entry .......................................... 141.19, 141.20 Derelict merchandise, ships’ stores, equipment, etc. ......... 4.40, 4.41 Discrepancy between shipment and invoice—Liquidation . 152.3 Duty liability ..................................................................... 141.1-141.3 Electronic entry ................................................................. Part 143, subparts
D and E Entered for consumption ................................................... 141.0a(f) Entered for warehouse ....................................................... 141.0a(g) Entered for temporary importation bond .......................... 141.0a(h) Entire consignment, when to be covered by one entry ...... 141.51, 141.52 Estimated duties to be deposited by importer ................... 143.28, 143.15,
141.101-141.105 Estimation of duties on entries ......................................... 141.90 Entry, definition ................................................................ 141.0a(a) Entry documentation
Assigned entry numbers ............................................... 142.3a Bond requirements ....................................................... 142.4 Electronic .................................................................... 142.3(d) Examination ................................................................ 142.7 Failure to file timely ................................................... 142.8 Invoice requirements ................................................... 142.6 Required ....................................................................... 142.3 Time for filing ............................................................. 142.2
Entry, rate of duty ............................................................. 141.69 Entry summary
Definition ..................................................................... 141.0a(b) Delinquent payment .................................................... 142.14 Electronic entry/entry summary ................................. 143.31-143.37,
143.39, 143.44 Failure to file timely ................................................... 142.15 Form ............................................................................ 142.11, 142.16 Mandatory filing .......................................................... 142.13 Multiple ultimate consignees ...................................... 142.17a Multiple entries ........................................................... 142.17
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19 CFR Ch. I (4–1–12 Edition)
ENTRY OF MERCHANDISE—Continued Entry summary—Continued
Preliminary review ...................................................... 141.63 Prohibited merchandise ............................................... 142.18 Release of merchandise ................................................ 142.19 Single for one transportation entry ............................. 141.56 Statistics ..................................................................... 141.61(e)
Entry, time of .................................................................... 141.68 Evidence of right to make ................................................. 141.11 Excessive moisture and other impurities—Duty allow-
ance ................................................................................. 158.13 Exportation, direct ............................................................ 18.25 Exported under lease and returned .................................... 10.108 Express consignments ........................................................ Part 128 Extracts from invoices for use in ....................................... 141.84 Filing
Definition ..................................................................... 141.0a(d) Time and place of ......................................................... 141.62
Foreign corporation may make—Special requirements .... 141.18, 143.22, 145.12
Free under executive order ................................................ 148.87, 148.88 Late filing of documents .............................................. 10.112
Immediate delivery, articles for ........................................ 142.0, 142.3 Immediate delivery, articles for U.S. Government ............ 10.100-10.104 Immediate transportation without appraisement entries . 18.11, 18.12, 151.9 Importer security filing (unified filing) ............................. 149.6 Imports from Guantanamo Bay Naval Station .................. 7.11 In transit through U.S. ...................................................... 18.20-18.24 Incomplete invoices ........................................................... 141.86-141.89 Informal entries
Information to be shown on—Form ............................. Part 141.82 Liquidation of .............................................................. 159.10
Informal entry procedures ................................................. 128.24, 143.21, 145.31, 148.12, 148.62
Institutions, articles for .................................................... 10.43, 10.49, 10.52, 145.36
Instruments and apparatus for educational and scientific institutions ..................................................................... 10.114
Invoices Commercial or special—Failure to produce, liquidated
damages .................................................................... 163.6 Installment shipments ................................................. 141.82 Requirements and exceptions ...................................... Part 141, Subpart
F Liability of consignee for duty .......................................... 101.1,141.19, 141.20 Library of Congress, articles ............................................. 10.46, 145.37 Liens .................................................................................. 141.112 Limited to ports of entry and customs stations ................ 101.1 Liquidation of entries ........................................................ 159.9, 159.10 Mail entries liquidation of ................................................. 159.10 Mail importations .............................................................. 132.24
Over $2,000 in value ...................................................... 145.12 Under $2,000 in value .................................................... 145.12, 145.35,
145.41 Making entry ..................................................................... 141.61-141.64,
141.66-141.69 Manifest used as an entry for unconditionally free mer-
chandise valued not over $250 ......................................... 123.7
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Subject Index
ENTRY OF MERCHANDISE—Continued Motor vehicles, safety standards ....................................... 12.80 Motor vehicles and engines—Clean Air Act ....................... 12.73 Noncommercial importations of limited value .................. 148.101-148.106 Nonresident consignee may make—Bond requirements .... 141.17 Not specified on invoice ..................................................... 152.3 Packed packages ................................................................ 141.52 Passengers baggage ............................................................ 148.4-148.27 Possession, when evidence of ownership for entry pur-
poses ............................................................................... 141.12 Powers of attorney ............................................................. 141.31, 141.39,
141.46, 174.3 Preliminary examination of entry papers ......................... 141.63 Preparation and form of entries ........................................ 141.61-141.64,
141.66-141.69 Pro forma invoice, use ....................................................... 141.82, 141.84,
141.91 Quota quantity limits ........................................................ 132.4 Rate of duty applicable ...................................................... 141.69 Receiver may make ........................................................... 141.14 Reduced duty, late filing of documents ............................. 10.112 Reliquidation of entries upon protest ................................ 152.16, 173.2, 174.26,
174.2, 175.22, 176.31
Repairs and equipment obtained abroad for vessels .......... 4.14 Required, when and when not ............................................ 141.4, 10.151, 10.152,
148.62(b), 148.85- 148.88
Rewarehouse entries Combined rewarehouse and withdrawal for consump-
tion ........................................................................... 144.42 General provisions ....................................................... 144.34(b), 144.41
Samples, taking of, prior to ............................................... 151.3-151.5 Shipments arriving on one vessel or vehicle consigned to
one consignee, separate entries—When ........................... 141.51, 141.52 Shortages—Duty allowance ............................................... 158.2-158.6 Softwood lumber ................................................................ 12.140, 12.142 Special invoices, when and when not required ................... 141.91, 141.83 Submission, definition ....................................................... 141.0a(c) Supplies for aircraft or vessels withdrawn from ware-
house Cancellation of bonds ................................................... 10.64 Form and procedure ..................................................... 10.60 Permit for delivery ...................................................... 10.61
Temporary importation bond entries—Form and con- tents ................................................................................ 10.31
Temporary removal and return to port before customs re- lease ................................................................................ 141.69
Time within which entry must be made ............................ 141.5 Trade-mark or trade names, goods bearing ....................... 133.21-133.24 Transportation and exportation entries ............................ 144.37 Transportation entries, classes of ...................................... 18.10 Unclaimed merchandise ..................................................... 127.11 Unclaimed merchandise, entry before sale ........................ 127.14 Unfair competition, exclusion—Entry under bond ............ 12.39 U.S., articles for ................................................................. 10.46, 141.102(d),
145.37, 10.100- 10.104
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19 CFR Ch. I (4–1–12 Edition)
ENTRY OF MERCHANDISE—Continued Value to be shown by importer .......................................... 141.90(c) Value when not in excess of $200 ........................................ 10.151 Visual or auditory materials ............................................. 10.121 Warehouse entries
General provisions ....................................................... 144.1-144.5, 144.7 Making entry ............................................................... 141.11-141.64,
141.66-141.69, 144.11-144.15
Warehouse withdrawals Consumption ................................................................ 144.38 Exportation .................................................................. 144.37 Transportation ............................................................. 144.22, 144.36
When and by whom to be made .......................................... 141.4 Who may make .................................................................. 141.11-141.20 Wrecked or abandoned at sea ............................................. 141.13
ENTRY OF VESSELS American ........................................................................... 4.9(b) At other than port of entry, expenses ................................ 101.4 Coastwise
Requirements ............................................................... 4.81, 4.83, 4.84 Via Hudson River ......................................................... 4.83(b) Via St. Lawrence River ................................................ 4.83(a)
Coastwise and foreign trade combined ............................... 4.89 Contiguous country, vessels arriving from—Report re-
quired .............................................................................. 123.1, 123.34 Foreign .............................................................................. 4.9(c) Formal—Oath, Form .......................................................... 4.9(b) Preliminary—Certification, Form ..................................... 4.8 Records .............................................................................. 4.95 Repairs and equipment obtained abroad ............................ 4.14 When required .................................................................... 4.3 Who may make .................................................................. 4.9 Yachts, when not required ................................................. 4.94
EQUIPMENT AND REPAIRS American vessels abroad .................................................... 4.14 Election to proceed ............................................................ 162.72(a)
EQUIPMENT AND STORES OF VESSELS Landing—Entry, when required ......................................... 4.39
EQUIPMENT AND SUPPLIES Aircraft searches, fire-fighting, rescue and relief .............. 10.107 Withdrawal for vessels ....................................................... 10.59
EQUIPMENT, ETC., FROM WRECKED OR DISMANTLED VESSELS .............................................................................. 4.40
ERRONEOUS CONSTRUCTION OF LAW OR REGULATION, LIABILITY FOR DUTIES ..................................................... 141.1
ERRORS, CORRECTION OF, ON LIQUIDATION OR RE- LIQUIDATION OF ENTRIES ................................................ 173.1-173.5
ESTABLISHED AND UNIFORM PRACTICE ........................... 177.10(c) ESTATES OF DECEDENTS, LIABILITY FOR DUTY ............. 141.1 ETHYL ALCOHOL—Importation for non-beverage purposes ... 10.99 EXAMINATION OF MERCHANDISE
Additional packages, requisition for —Form ..................... 141.113, 151.11 Altars, etc., to be set up ..................................................... 151.8 Baggage in foreign countries ............................................. 148.22 Cotton ................................................................................ 151.81-151.85 Crew effects ........................................................................ 148.62-148.67 Designation of packages .................................................... 151.1-151.11
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Subject Index
EXAMINATION OF MERCHANDISE—Continued Expenses of outside examination ....................................... 151.7 Immediate transportation entries ..................................... 151.9 Importer’s premises
Bond for return to Customs custody ............................ 151.7(d) Cording and sealing of packages required .................... 151.7(a)
Machinery, etc., to be set up .............................................. 151.8 Mail importations .............................................................. 145.2, 145.4 On vessels and vehicles ...................................................... 162.3 Outside of public stores ..................................................... 151.7 Petroleum products ........................................................... 151.41, 151.42,
151.44-151.47 Prior to entry, inspection charges ..................................... 151.5 Sugar, syrups, and molasses .............................................. 151.21-151.30 Tobacco, Cuban leaf—Examiners ....................................... 151.111 Wool and hair ..................................................................... 151.61-151.71;
151.73-151.76 EXAMINATION OF PERSONS AND BAGGAGE ...................... 162.3-162.7 EXAMINATION OF WOOL AND HAIR BY IMPORTER ........... 151.67 EXAMINATION PACKAGES
Cartage of, to importer’s premises or elsewhere ................ 125.11-125.14 Designation of .................................................................... 151.1-151.11
EXCESSIVE MOISTURE AND OTHER IMPURITIES—Duty allowance .............................................................................. 158.13
EXECUTOR Entry by ............................................................................. 141.14 Liability of Estate for debts due the U.S. .......................... 141.1
EXEMPTION Allowed nonresidents ......................................................... Part 148, Subpart
E Allowed returning residents .............................................. Part 148, Subpart
D Other .................................................................................. Part 148, Subpart
F EXEMPTION, FALSE CLAIM, FAILURE TO DECLARE PEN-
ALTY .................................................................................... 148.18, 148.19 EXHIBITION BOND—Form ...................................................... 113.14 EXHIBITION, RETURN OF ARTICLES EXPORTED FOR ...... 10.66 EXHIBITION, WORKS OF ART, AND OTHER ARTICLES
Entry ................................................................................. 10.49 Transfer to other institution ............................................. 10.49(c)
EXPENSES Examination of merchandise outside public stores ........... 151.7 General expenses and profit ............................................... 152.105(e),
152.106(c) Seizure and forfeiture payment of ..................................... 162.51 For services rendered ......................................................... 24.17
EXPLOSIVE SUBSTANCES Exportation of, on arrival .................................................. 18.21(d), 18.25 Sale of unclaimed .............................................................. 127.22 Warehousing of, prohibited ................................................ 18.25(f)
EXPORTED ARTICLES RETURNED ...................................... 10.66, 10.67 EXPORT BONDS, CANCELLATION OF .................................. 113.55 EXPORT CONTROL
Definition ........................................................................... 192.1 Liability of carriers ........................................................... 192.4 Penalties ............................................................................ 192.3 Requirements for exportations .......................................... 192.2
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19 CFR Ch. I (4–1–12 Edition)
EXPORT DECLARATIONS Filing of ............................................................................. 4.61, 4.63, 4.75,
122.76 Incomplete—Bond .............................................................. 4.75 Vessel, proceeding foreign via domestic ports ................... 4.87
EXPORTATION Arms and munitions .......................................................... 4.61, 4.73, 161.2 Articles
Repaired abroad, to be ................................................. 10.8 Scientific or educational purposes, return of .............. 10.67
Atomic energy material, equipment, and devices .............. 161.2 Bond—Cancellation of requirement for ............................. 113.55 Bonds—Form ...................................................................... 18.25, 113.14 Cancellation of bond to produce export declaration .......... 172.22, 113.55 Continuous Customs custody ............................................. 158.45 Customs supervision .......................................................... 18.7, 18.45 Date of, for conversion of currency .................................... 159.32 Date of, for textiles ............................................................ 102.23(c) Drawback on merchandise exported via ports outside con-
tinental U.S. ................................................................... 191.51-191.53 Entered merchandise in Customs custody—Liquidated
and unliquidated entries ................................................. 158.45 Expenses of ........................................................................ 24.17 Helium gas ......................................................................... 161.2 In bond—Indirect ............................................................... 18.26 Inspection .......................................................................... Part 118 Limitation of time for ....................................................... 18.24 Mail, dutiable articles by—Waiver of right to withdraw ... 145.40, 145.71 Manufacturing warehouse products ................................... 19.15 Marihuana .......................................................................... 162.61 Merchandise
Denied admission by a Government agency ................. 18.25, 18.26 Received under warehouse withdrawal for transpor-
tation ........................................................................ 144.36(h) Unclaimed, restrictions ............................................... 127.14 Unentered .................................................................... 18.25, 18.26 Unliquidated consumption entry ................................. 18.25, 18.26
Munitions of war ................................................................ 161.2(a)(1) Narcotics and certain other drugs—Requirements, pen-
alties ............................................................................... 12.36, 161.2, 162.61, 162.63
Port of, final ...................................................................... 123.28 Rejected merchandise
Food and drug products ............................................... 12.4 General provisions ....................................................... 158.45 Plants and plant products, refund of duty ................... 12.15 Viruses, serums, and toxins ......................................... 12.20, 12.23
Seizure of articles and transporting vessel, vehicle or air- craft ................................................................................ 161.2(b)
Temporary importation bond entries ................................ 10.38, 10.39 Time of, to be used in appraising ....................................... 152.1(c) Tobacco products for consumption on vessel or aircraft
deemed to be ................................................................... 10.65 Used self-propelled vehicles ............................................... Part 192, Subpart
A Warehouse, withdrawals for ............................................... 144.37 Wild animals, birds, etc., when prohibited ......................... 12.27
EXPORTS, CONTROLLED—Seizure ........................................ 161.2(b)
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Subject Index
EXPRESS CONSIGNMENT CARRIERS ................................... Part 128 EXTENSION OF TIME—Liquidation ....................................... 159.12
F FAILURE TO DECLARE ARTICLES IN BAGGAGE—Penalty 148.18 FAMILY GROUP, BAGGAGE DECLARATIONS ...................... 148.14, 148.34,
148.103 FATS, INEDIBLE—Exportation .............................................. 4.61, 4.72 FEES
Ad valorem merchandise .................................................... 24.23 Aircraft arrival .................................................................. 24.22, 122.29 Commercial truck .............................................................. 24.22(c) Commercial vessel ............................................................. 24.22(b) Container Station, establishment of .................................. 19.40(b) Customs bonded warehouse, establishment of ................... 19.2, 19.13 Customs brokers ................................................................ 24.22(h), 111.96 Customs cartage or lighterage license, issuance of ........... 111.96, 112.22 Customhouse broker’s license, issuance of ........................ 111.12, 111.19 Dutiable mail ..................................................................... 24.22(f) Express consignment application ...................................... 128.13 Freedom of Information Act .............................................. 103.10 Harbor maintenance .......................................................... 24.24 Issuance of a customhouse broker’s license/permits .......... 24.22(h) 111.12,
111.19, Navigational ...................................................................... 4.98 Patent infringement information ...................................... 24.12 Passengers aboard vessels or aircraft ................................ 24.22(g) Private vessel/aircraft ....................................................... 24.22(e) Railroad car ....................................................................... 24.22(d) Recording
Copyright ..................................................................... Part 133, subpart C
Trademark ................................................................... Part 133, subpart A
Tradename ................................................................... Part 133, subpart B
Storage in Government buildings ...................................... 24.12 Tonnage ............................................................................. 4.20
FIBER PRODUCTS IDENTIFICATION ACT, COMPLIANCE WITH ..................................................................................... 11.12b(d)-(f)
FILMS Exhibited on vessels ........................................................... 10.68 Motion picture, return of—Domestic or foreign origin ...... 10.68(b) When prohibited ................................................................. 12.41
FINAL PORT OF EXPORTATION IN CROSSING CONTIG- UOUS FOREIGN TERRITORY .............................................. 123.28
FINES, PENALTIES, AND FORFEITURES (See also, PEN- ALTIES)
Applicability ...................................................................... 162.70 Importations contrary to law ............................................ 161.2(b), 162.22 Information ........................................................................ 103.32 Notice of, to offender ......................................................... 162.31 Prior disclosure .................................................................. 162.74 Remission or mitigation of ................................................ 162.31, 171.11,
171.21-171.24 FINGERPRINTS ...................................................................... 19.2, 111.12, 112.42,
118.4, 122.182, 146.6
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19 CFR Ch. I (4–1–12 Edition)
FIREARMS, MAIL IMPORTATIONS ....................................... 145.53, 145.59 FIRE FIGHTING, RESCUE AND RELIEF EQUIPMENT FOR
EMERGENT TEMPORARY USE ........................................... 10.107 FISH, SALT FOR CURING ...................................................... 10.80, 10.81, 10.83 FISHERIES, AMERICAN
Definition ........................................................................... 10.78 Entry products of ............................................................... 10.78 Limited to American vessels ............................................. 4.96 Products of—Definition ..................................................... 10.78(d)
FISHING VESSELS TOUCHING AND TRADING AT FOR- EIGN PLACES—Permit form ............................................... 4.15
FLAT RATE OF DUTY ............................................................ 148.102 FLIES, ARTIFICIAL, ENTRY PROCEDURE ........................... 12.29 FLORENCE AGREEMENT ....................................................... 10.114 FLUXING MATERIAL, ENTRY REQUIREMENTS ................. 10.98 FOODS, IMPORTATION PROCEDURE .................................... 12.1, 12.3-12.5 FORCED LABOR, MERCHANDISE PRODUCED BY ................ 12.42-12.45 FORCED LANDING, AIRCRAFT ............................................. 122.35 FOREIGN ASSETS CONTROL ................................................. 12.150, 145.56, 161.2 FOREIGN CERTIFICATE OF INSPECTION, MATCH IMPOR-
TATIONS .............................................................................. 12.34 FOREIGN CERTIFICATE OF ORIGIN, MERCHANDISE NOT
PRODUCED BY CONVICT, FORCED, OR INDENTURED LABOR, WHEN ..................................................................... 12.43, 12.44
FOREIGN CORPORATION, ENTRY OF MERCHANDISE BY .. 141.18 FOREIGN INLAND FREIGHT ................................................. 152.103(a)(5) FOREIGN MILITARY PERSONNEL AND IMMEDIATE FAM-
ILIES .................................................................................... 148.90 FOREIGN REPRESENTATIVES
Diplomatic pouches, bags and mail ................................... 145.38, 148.83, 145.2 Free entry privilege ........................................................... 148.81, 148.82,
148.85, 148.89 Mail for .............................................................................. 145.2
FOREIGN TRADE STATISTICS .............................................. 18.25(c), 113.62(b)(3), 141.0a(b) and (d)(2), 141.92(a)(2)
FOREIGN TRADE ZONES ....................................................... Part 146 Application, zone, who may file ......................................... 146.9, 146.32 Carriers, use of zone by ...................................................... 146.12 Changes .............................................................................. 146.7 Customs, control of merchandise in ................................... 146.51 Customs forms and procedures .......................................... 146.13 Importer security filing ..................................................... 146.32, 149.1 Merchandise
Admission of, procedure for ......................................... 146.10, Part 146, subpart C
Appraisement and tariff classification ........................ 146.65 Destruction or exhibition of ........................................ 146.52 Exportation of, direct .................................................. 146.67 Manipulation or manufacture of .................................. 146.52 Permitted in a zone ..................................................... 146.31 Release and removal from zone .................................... 146.71 Seals; authority of operator to break or affix ............. 146.8 Sending of into Customs territory ............................... 146.61-146.68 Shortages and overages ............................................... 146.53 Transfer of to another zone ......................................... 146.66
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Subject Index
FOREIGN TRADE ZONES—Continued Merchandise—Continued
Transportation of to a zone ......................................... 146.11 With Zone status of
Nonprivileged domestic ......................................... 146.43 Nonprivileged foreign ............................................ 146.42, 146.65 Privileged domestic ............................................... 146.43 Privileged foreign .................................................. 146.41, 146.65
Zone restricted ............................................................. 146.44 Transfer into Customs territory ............................ 146.70
Penalties ............................................................................ 146.81 Port director as board representative ................................ 146.2 Retail trade within a zone ................................................. 146.14 Revocation of zone grant ................................................... 146.83 Suspension ......................................................................... 146.82 Supplies, equipment, and repair material for vessels or
aircraft ............................................................................ 146.69 FOREIGN VESSELS, BOARDING OR SEARCH ...................... 162.3 FORFEITURES
Actions for—Property valued in excess of $10,000 .............. 162.32 Appraisement of merchandise subject to forfeiture ........... 162.43 Controlled substances, narcotics and marihuana .............. 162.61 Compromise of claims ........................................................ 161.5 Copyrights, trademarks; procedures .................................. Part 133, subpart
F Destruction of, in lieu of sale ............................................ 162.46, 162.50(c) Disposition of goods summarily forfeited .......................... 162.46 Expenses of seizure and forfeiture ..................................... 162.51 Importations contrary to law ............................................ 162.22 Notice of, to offender and prepenalty notice ..................... 162.31 Passengers baggage ............................................................ 148.18 Prior disclosure .................................................................. 162.74 Prohibited importation of immoral articles ...................... 12.40-12.42 Release of, upon payment of appraised value .................... 162.44 Relief ................................................................................. 133.51 Remission or mitigation of, by port director, when .......... 171.21-171.24 Remission or mitigation of—Petitions .............................. 162.31, 162.32,
171.11-171.33 Reports to U.S. Attorney—When required ......................... 162.32(c), 162.47(d),
162.49 Sale of ................................................................................ 162.45, 162.46,
162.48, 162.50, 162.51, 162.52
Seizure of property subject to ............................................ 162.11-162.22, 122.161, 148.18, 148.19
Smuggling or other fraudulent acts ................................... 161.2 Summary—Disposition of goods ........................................ 162.46, 162.48 Value not exceeding $500,000 .............................................. 162.45, 162.46,
162.48 Value not exceeding $500,000—Filing of claim and bond to
stop summary forfeiture proceedings ............................. 162.47 FORMS
Reproduction or substitution ............................................ 4.99, 122.5 Salable ............................................................................... 24.14
FORMULAS, DENATURING VEGETABLE OILS .................... 10.56 FORWARDER, FREIGHT, BONDED ........................................ 18.1
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FREE TRADE AGREEMENTS Dominican Republic-Central America-United States Free
Trade Agreement ............................................................ Part 10, subpart J North American Free Trade Agreement (NAFTA) (See
NORTH AMERICAN FREE TRADE AGREEMENT) Trade Promotion Acts
US-Peru Trade Promotion Act (PTPA) ........................ Part 10, subpart Q United States-Bahrain Free Trade Agreement .................. Part 10, subpart N United States-Canada Free Trade Agreement ................... Part 10, subpart G United States-Chile Free Trade Agreement ....................... Part 10, subpart H United States-Jordan Free Trade Agreement .................... Part 10, subpart K United States-Morocco Free Trade Agreement ................. Part 10, subpart M United States-Oman Free Trade Agreement ...................... Part 10, subpart P United States-Singapore Free Trade Agreement ............... Part 10, subpart I
FREEDOM OF INFORMATION ACT ........................................ 103.0-103.13 FRESH FRUITS AND VEGETABLES FROM CANADA AND
MEXICO—Special permit for immediate delivery ................ 142.21(b) FRUIT BOXES, SHOOKS, DUTIABLE STATUS ...................... 10.5 FRUIT, CONDEMNED .............................................................. 158.14 FRUIT JUICES—Brix values ................................................... 151.91 FUR PRODUCTS
Definition ........................................................................... 11.12a Labeling of ......................................................................... 11.12a
FURS AND FUR SKINS ........................................................... 12.60-12.63 FURTHER PROCESSING-VALUATION
Deductive value ................................................................. 152.105(i)
G GAME ANIMALS AND BIRDS
Killed for noncommercial purposes ................................... 10.76 Live, for stocking purposes ................................................ 10.76
GAUGERS, COMMERCIAL ...................................................... 151.13 GAUGING
Ethyl alcohol ..................................................................... 10.99 Liquors
Bulk ............................................................................. 11.6 Dutiable and taxable quantities .................................. 159.21
Molasses and syrups ........................................................... 151.28 Petroleum products ........................................................... 151.41,151.42,
151.44-151.47 Warehoused goods for exportation or transportation ........ 144.37
GENERAL AVERAGE LIENS .................................................. 141.112 GENERALIZED SYSTEM OF PREFERENCES
ATPA ................................................................................. 10.207 Certificate of origin ........................................................... 10.173 Costs or value of materials produced in the beneficiary
developing country Determination of ......................................................... 10.177(c) Produced in the beneficiary developing country, de-
fined .......................................................................... 10.177(a) When origin is questionable ......................................... 10.177(b)
Country, defined ................................................................ 10.171(b), 10.176(a) Country of origin
Criteria ........................................................................ 10.176 Evidence of—certification of origin ............................. 10.173(b) Shipments valued in excess of $250 .............................. 10.173(a)
Direct cost of processing operations Defined ......................................................................... 10.178(a)
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Subject Index
GENERALIZED SYSTEM OF PREFERENCES—Continued Direct cost of processing operations—Continued
Items included in ......................................................... 10.178(a) Items not included in ................................................... 10.178(b)
Direct shipment Evidence of
Documents required ............................................... 10.174(a) Waiver of ................................................................ 10.174(b)
Imported directly, defined ........................................... 10.175 Informal entry of ............................................................... 143.23(g)
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES—De- fined, Trade Agreements Act (1979) ....................................... 152.102(c)
GENERAL ORDER Baggage .............................................................................. 4.37, 148.7 Defined ............................................................................... 127.4 Merchandise
Immediate transportation entry, forwarding under .... 18.11 Period, how calculated ....................................................... 4.37
When to be sent ............................................................ 4.37 Period of, defined ............................................................... 127.4 Weighing merchandise before deposit in warehouse .......... 4.37 Withdrawal from general order for entry or exportation ... 127.2 Withdrawal of less than single lot ..................................... 127.2(c)
GIFTS Baggage in ......................................................................... 148.33(c), 148.44 Bona fide, not exceeding $100 in value ............................... 10.152, 10.153,
145.32 Flat rate of duty for noncommercial importations of lim-
ited value ........................................................................ Part 148, Subpart J
GOBELIN TAPESTRIES .......................................................... 10.54 GOLD ARTICLES, FALSE MARKING OF—Penalty ................ 11.13 GOVERNMENT, IMPORTATIONS LIQUIDATION .................. 10.104, 141.102(d) GOVERNMENT PROCUREMENT; COUNTRY OF ORIGIN DE-
TERMINATIONS ................................................................... Part 177, Subpart B
GOVERNMENT VESSELS Manifest of passengers and baggage ................................... 4.5
GREAT LAKES, U.S. PORTS ON—Vessels trading between such ports and other ports of U.S. ........................................ 4.83
GUAM Customs administration of ................................................ 7.2 Exports to—Drawback ....................................................... 191.5, 191.81,
191.131, 191.151 Imports in .......................................................................... 7.2(b) Not within Customs territory of U.S. ................................ 7.2(a) Unaccompanied shipments from ........................................ Part 148, Subpart
K GUANO BROUGHT IN VESSELS ENGAGED IN COASTWIDE
TRADE .................................................................................. 4.84 GUANTANAMO BAY NAVAL STATION
Drawback, foreign territory for ......................................... 191.5, 191.13, 191.131, 191.151
Importations from ............................................................. 7.11 GUNPOWDER, EXPORTATION OF, ON ARRIVAL ................. 18.25
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H HAITIAN HEMISPHERIC OPPORTUNITY THROUGH PART-
NERSHIP ENCOURAGEMENT ACT (‘‘Haiti HOPE I and II’’) ........................................................................................ Part 10, subpart O
HARBOR MAINTENANCE FEE ............................................... 24.24 Payment and refund request .............................................. 24.24
HEADQUARTERS PORTS, LIST OF ....................................... 101.3 HELIUM GAS, CONTROLLED EXPORTS—Seizure ................. 161.2 HOLIDAYS
Definition ........................................................................... 24.16 National, list of .................................................................. 101.6
HONEY BEES AND SEMEN ..................................................... 12.32 HORSES
Exported for racing ............................................................ 10.66 Exported for temporary exhibition .................................... 10.66, 10.67 Taken abroad temporarily; tariff status on return ............ 148.31, 148.32
HOURS Entry papers ...................................................................... 141.62 Of business, official ............................................................ 101.6 Quota-class merchandise ................................................... 132.3
HOUSEHOLD EFFECTS Baggage .............................................................................. 148.31, 148.51 Definitions ......................................................................... 148.52, 148.74 Diplomatic, consular and military personnel, foreign rep-
resentatives, etc. ............................................................. Part 148, Subpart I
Entry of, not accompanying the importer ......................... 148.6 Entry, requirements on ...................................................... 148.6, 148.52 Military, civilian employees of U.S., and evacuees ........... 148.74 Noncommercial importations of limited value .................. Part 148, subpart
J Reliquidation of entry ....................................................... 173.5 Used abroad, definition ...................................................... 148.52
HOUSES OF WORSHIP, STAINED OR PAINTED GLASS WINDOWS ............................................................................. 10.52
I IDENTICAL MERCHANDISE—Defined, Trade Agreements
Act (1979) ............................................................................... 152.102(d) Transaction value of .......................................................... 152.104
IDENTIFICATION CARDS Cartmen’s employees ......................................................... Part 112, subpart
D Customs employees ............................................................ 101.8 Customs Security Areas .................................................... Part 122, subpart
S IDENTIFICATION NUMBER ................................................... 24.5 IMMEDIATE DELIVERY OF ARTICLES PRIOR TO ENTRY . Part 142, subpart
C IMMEDIATE DELIVERY OF ARTICLES PRIOR TO
ENTRY—U.S. Government importations .............................. 10.100-10.104 IMMEDIATE TRANSPORTATION WITHOUT
APPRAISEMENTS By aircraft ......................................................................... 122.92(b) Consolidated shipments ..................................................... 18.11(g) Form of entry .................................................................... 18.11(h)
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Subject Index
IMMEDIATE TRANSPORTATION WITHOUT APPRAISEMENTS—Continued
From general order warehouse .......................................... 18.11(a) Livestock shipments .......................................................... 18.11(d) Procedure at destination ................................................... 18.12, 151.9, 151.7 Procedure at port of origin ................................................ 18.11(c) Restricted products ............................................................ 18.11(e) Splitting shipments at port of origin ................................. 122.92(d), 18.11 To other than a port of entry ............................................. 18.11(c) Unclaimed merchandise, entry permitted when ................ 18.12 Value stated on entry ........................................................ 18.11(e) When consumption or warehouse entry may be accepted .. 141.55 Who may make entry ......................................................... 18.11(b)
IMMIGRANTS, PROFESSIONAL BOOKS—Tools of trade ...... 148.53 IMMORAL ARTICLES—Importation prohibited ..................... 12.40,12.41 IMPORTATIONS
Atomic energy material, equipment, and devices .............. 161.2 Contiguous country, from .................................................. 123.0-123.9, 123.63 Contrary to law .................................................................. 161.2, 162.11, 162.22 Controlled—Penalty .......................................................... 161.2 Copyright articles .............................................................. 133.42-133.44, 133.46 Date of, definition .............................................................. 101.1 Engines, nonroad ............................................................... 12.74 Mail .................................................................................... Part 145 Narcotics and certain other drugs—Requirements—Pen-
alties ............................................................................... 12.36, 161.2, 162.61 Noncommercial importations of limited value .................. 148.101-148.106 Temporarily free of duty, metal articles ........................... 54.5, 54.6 Trademarked articles ........................................................ 133.21-133.24 U.S. Government, for ......................................................... 10.100-10.104
IMPORTATIONS BY STATES ARE DUTIABLE ..................... 141.1 IMPORTER
Identification number ........................................................ 24.5 Liability of, for duty .......................................................... 141.1 Refund of excessive duties or taxes .................................... 24.36 Request for value information ........................................... 152.26 Warehouse designated by ................................................... 144.11(c)
IMPORTER SECURITY FILING Automated Broker Interface (ABI) .................................... 143.1 Bonds ................................................................................. 113.62, 113.63,
113.64, 113.73, Appendix D – Part 113, 149.5
Break bulk cargo exemption .............................................. 149.4 Bulk cargo exemption ........................................................ 149.4 Data elements .................................................................... 149.3 Definitions ......................................................................... 149.1 Eligibility to file ................................................................ 149.5 Entry and entry summary (unified filing) ......................... 149.6 Flexible requirements ........................................................ 149.2 Foreign trade zones ............................................................ 146.32, 149.1 Freight remaining on board (FROB) .................................. 149.3 Immediate exportation shipments ..................................... 18.5, 149.3 Powers of attorney ............................................................. 149.5 Requirement ...................................................................... 149.2 Transmission ..................................................................... 149.2 Transportation and exportation shipments ....................... 18.5, 149.3 Unified filing ...................................................................... 149.6
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19 CFR Ch. I (4–1–12 Edition)
IMPORTER SECURITY FILING—Continued Updates .............................................................................. 149.2 Verification ........................................................................ 149.2 Withdrawal ........................................................................ 149.2
IMPURITIES, DUTY ALLOWANCE, WHEN ............................ 158.13 IN BOND SEALS, PROCURING AND ACCOUNTING ............... 24.13 INCONSISTENT CUSTOMS DECISIONS ................................. 177.13 INDENTURED LABOR, MERCHANDISE PRODUCED BY—
Importations prohibited ....................................................... 12.42-12.45 INEDIBLE FATS—Exportation ............................................... 4.61, 4.72 INFORMAL ENTRIES
Generalized system of preferences ..................................... 143.23 Information to be shown on—Form ................................... 141.82(d), Part 143,
subpart C Liquidation of .................................................................... 159.10 Procedure ........................................................................... 143.23-143.28
INFORMATION AS TO VALUES; FURNISHED TO IMPORT- ERS ....................................................................................... 152.26
INFORMATION, CLASSES OF CUSTOMS DOCUMENTS EX- EMPT FROM DISCLOSURE ................................................. 103.12
INFORMATION COLLECTION REQUIREMENTS, AP- PROVAL OF .......................................................................... Part 178
INFORMATION, FREEDOM OF ............................................... 103.0-103.13 INFORMATION, RESTRICTED
Fines, Penalties ................................................................. 103.32 Foreign agents ................................................................... 103.33 Sanctions ........................................................................... 103.34
INFORMATION SUBJECT TO RESTRICTED ACCESS ........... Part 103, subpart C
INFORMERS Awards of compensation to ................................................ 161.12, 161.14-161.16 Claim for compensation—Form ......................................... 161.12 Confidentiality of identity ................................................. 161.15
INFRINGING COPIES—Definition .......................................... 133.42 INLAND FREIGHT, FOREIGN ................................................ 152.103(a)(5) INSECTICIDES, IMPORTATION PROCEDURE ....................... 12.1, 12.3 INSOLVENT DEBTORS—Duty due U.S. is a preferred claim .. 141.1 INSPECTION AND SEARCH OF TRUNKS, VEHICLES, ETC.,
FROM CONTIGUOUS COUNTRY .......................................... 123.63 INSPECTION OF CUSTOMS RECORDS .................................. 103.0-103.11 INSPECTION OF MERCHANDISE
By importer prior to entry ................................................. 151.4, 151.5 Centralized examination stations ...................................... Part 118 Exported merchandise ....................................................... 161.2 Meat and meat food products ............................................. 12.8, 12.9
INSPECTION OF PERSONS, BAGGAGE, AND MERCHAN- DISE ON BOARD VESSELS AND VEHICLES ...................... 162.3-162.7
INSPECTION OF VESSELS Certificate
Required ....................................................................... 4.66 Verification .................................................................. 4.61, 4.66
INSTALLMENT SHIPMENTS, INVOICES FOR ...................... 141.82 INSTITUTIONS
Character of, evidence as to ............................................... 10.43 INSTRUMENTS AND APPARATUS FOR EDUCATIONAL
AND SCIENTIFIC INSTITUTIONS (‘‘Florence Agree- ment’’), General provisions ................................................... 10.114
INSTRUMENTS OF INTERNATIONAL TRAFFIC .................. 10.41(a)
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Subject Index
INSULAR POSSESSIONS, CUSTOMS RELATIONS ................ 7.2, 191.5 Drawback ........................................................................... 191.5 Duty ................................................................................... 148.101, 148.102,
Part 148, subpart K
Guantanamo Bay Naval Station ........................................ 7.11 Puerto Rico, spirits, wines, and coffee ............................... 7.1
INTERCOASTAL RESIDUE CARGO PROCEDURE ................. 4.83, 4.85, 4.86, 4.89 INTEREST CHARGES ON CERTAIN BILLS ........................... 24.3a INTERIM (A)(1)(a) LIST .......................................................... Appendix to Part
163 INTERNAL ADVICE ................................................................ 177.11 INTERNAL-REVENUE MARKS, ERASURE OF, AT EX-
PENSE OF IMPORTER ......................................................... 10.4 INTERNAL-REVENUE REQUIREMENTS
Cigarette papers, and tubes ............................................... 11.3, 159.5 Cigars, cigarettes, medicinal preparations, and per-
fumery ............................................................................ 11.1 Distilled spirits .................................................................. 11.6, 11.7, 134.21,
159.4 Tobacco .............................................................................. 11.2
INTERNAL-REVENUE TAXES American goods returned ................................................... 10.3 Bill to importer for taxes due—Form ................................ 24.11 Carrier liable for, shortage, etc. ........................................ 18.8 Computation of, upon liquidation ...................................... 159.4, 159.6,
159.21(b) Destruction of articles subject to ...................................... 127.28(e)-(g) Diplomatic, consular and military personnel, foreign rep-
resentatives, etc., exempt from ...................................... 148.89, 148.90 Ethyl alcohol for nonbeverage purposes, conditionally ex-
empt from ....................................................................... 10.99 Forfeited or unclaimed goods ............................................ 127.28, 162.45 Importations having a value not exceeding $200 ................ 10.151 Liquor in passengers’ baggage ........................................... 148.26, 148.27,
148.51, 148.64 Liquor—Taxable quantity .................................................. 159.21 Merchandise subject to seizure .......................................... 148.18, 148.19 Refund of ............................................................................ 24.36 Regauge of liquors for assessment of ................................. 159.21(b) Sale of articles subject to .................................................. 127.28 Supplies for vessels exempt from ....................................... 10.59 Tobacco and tobacco products in baggage of nonresident . 148.43 Tobacco products for consumption on vessel or aircraft ... 10.65
INTERNATIONAL CUSTOMS CONVENTIONS, PURSUANT TO CARGO CONTAINER AND ROAD VEHICLE CERTIFI- CATION ................................................................................. Part 115
INTERNATIONAL (Public) ORGANIZATIONS ........................ 148.87, 148.88 INTERNATIONAL TRAFFIC ................................................... 10.41, 10.41a,
10.41b, Part 123, subpart B
INTERSTATE COMMERCE COMMISSION, MERCHANDISE SHIPPED IN BOND, EXAMINATION BY .............................. 18.9
IN-TRANSIT MERCHANDISE ................................................. Part 123, subparts A-F
Restricted and prohibited merchandise ............................. 18.21-18.23 Through contiguous foreign territory
Animals ........................................................................ 123.24(a)(3), 123.27
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19 CFR Ch. I (4–1–12 Edition)
IN-TRANSIT MERCHANDISE—Continued Through contiguous foreign territory—Continued
Authority for ............................................................... 123.21 Manifest—Form, contents and disposition of .............. 123.21, 123.22,
123.25 Procedure at port of exit ............................................. 123.22(a), 123.28 Procedure at port of reentry ........................................ 123.29 Sealing of ..................................................................... 123.24 Seals, in bond or in transit, breaking of ...................... 123.21, 123.26,
123.29 Storage in foreign territory ......................................... 123.26(b) Train consist sheets ..................................................... 123.23, 123.29 Transshipment in foreign territory ............................. 123.26
Through U.S. between ports of a contiguous foreign coun- try ................................................................................... Part 123, subpart
D, 123.52, 123.64 IN-TRANSIT SEALS, PROCURING AND ACCOUNTING PRO-
CEDURE ............................................................................... 24.13 INVENTORIES OF TOBACCO PRODUCTS FOR CONSUMP-
TION ON VESSELS OR AIRCRAFT ..................................... 10.65 INVENTORY, RAILWAY SUPPLIES, INTERNATIONAL
TRAINS ................................................................................ 123.11 INVESTIGATORY FILES—Disclosure of information ............ 103.10(g) INVOICES
Additional information, when required ............................. 141.86, 141.89 All invoices with entry to be numbered consecutively ...... 141.86(h) Baggage declarations, special or commercial invoices ...... 148.23(c) Bond for, canceled by photocopy ....................................... 141.84(e) Commercial
Bond for production of ................................................. 141.91(d) When required .............................................................. 141.83, 141.92
Cost of production, when to be shown on ........................... 141.88 Cotton ................................................................................ 151.82 Duty rates to be noted ....................................................... 141.90 Entry of merchandise ........................................................ Part 141, subpart
F General requirements on ................................................... 141.86 Goods arriving within a period of 10 days .......................... 141.82 Information required on .................................................... 141.86-141.92 Mail shipments .................................................................. 145.11 Merchandise found not to correspond with invoice de-
scription .......................................................................... 152.3 Merchandise, list of, requiring special information ........... 141.89 Multiple ............................................................................. 141.61(f) Photocopies from, for entry purposes ................................ 141.84 Pro forma ........................................................................... 141.82, 141.84,
141.85, 141.91, 141.92, 142.22
Required on entry Exceptions ................................................................... 141.83, 141.91,
141.92 Single shipment to be covered ..................................... 141.81, 141.82(a),
141.84 Requirements ..................................................................... 142.6 Separate sheets to be numbered ........................................ 141.86(h) Single ................................................................................. 141.61(f) Special
Bond for productions of ............................................... 141.91, 141.92
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Subject Index
INVOICES—Continued Special—Continued
Entry procedures ......................................................... 143.27 When required .............................................................. 141.83
Time limit, failure to produce—Liquidated damages ........ 172.22 Wool and hair ..................................................................... 151.62
INWARD CARGO, ACCOUNTING FOR .................................... 4.61, 4.62 IRREGULAR DELIVERY OF BONDED MERCHANDISE ........ 18.6
J JEWELRY AND ARTICLES OF PERSONAL ADORNMENT
EXEMPTIONS, SALE OF ...................................................... 148.46 JOHNSTON ATOLL ................................................................. 7.2, 191.5 JORDAN FREE TRADE AGREEMENT (See, UNITED
STATES-JORDAN FREE TRADE AGREEMENT) JUICES, FRUIT—Brix values .................................................. 151.91 JUDICIAL REVIEW ................................................................. 103.9, 112.30(f),
151.12(g) and (k), 151.13(e) and (i), 174.31, Part 176
Disclosure of information .................................................. Part 103, subpart B
K KINGMAN REEF ..................................................................... 4.0, 4.21, 122.0,
134.1, 191.5, 191.101, 191.151
L LABELING
Fur products ...................................................................... 11.12a Textile fiber products ........................................................ 11.12b Wool products .................................................................... 11.12
LABELS, IN BOND, IN LIEU OF CORDS AND SEALS—Form 18.4 LABORATORY, COMMERCIAL ............................................... 151.12, 151.14 LABORATORY TESTING (WOOL AND HAIR) ........................ 151.71 LADING AND UNLADING OF VESSELS, PERMIT OR SPE-
CIAL LICENSE FOR—Form ................................................. 4.30 LADING, EXPORTATION IN BOND, CUSTOMS SUPER-
VISION .................................................................................. 18.7 LADING, CERTIFICATE OF, FOR AIRCRAFT ....................... 122.94 LADING OR UNLADING, VEHICLES AND VESSELS OF
LESS THAN 5 NET TONS FROM CONTIGUOUS COUNTRY, PERMITS FOR ...................................................................... 123.8
LANDING CARGO AT OTHER THAN PORT OF DESTINA- TION DUE TO DISTRESS ..................................................... 4.32
LANDING CERTIFICATES Cancellation of export bonds ............................................. 113.51, 113.55 Foreign merchandise destined for foreign ports—Bond ..... 4.88 Temporary importation bond—Exportation ...................... 10.39 Waivers .............................................................................. 113.55(c)(3)
LARGE YACHTS IMPORTED FOR SALE ............................... 4.94a LASH-TYPE BARGES ............................................................. 4.81a LAY-ORDER PERIOD, EXTENSION OF, HOW CAL-
CULATED ............................................................................. 4.37 LEASE, ARTICLES UNDER, EXPORTED AND RE-
IMPORTED ........................................................................... 10.108
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19 CFR Ch. I (4–1–12 Edition)
LEATHER ARTICLES ............................................................. 10.198a LETTERS, SEARCH AND SEIZURE ....................................... 162.4 LIBRARY OF CONGRESS
Articles for ......................................................................... 10.46, 145.37(a) Books, engravings, etc., conditionally free ........................ 10.46, 145.37(b)
LICENSE FOR CERTAIN WORSTED WOOL FABRIC SUB- JECT TO TARIFF-RATE QUOTA ......................................... 132.18
LICENSE, SPECIAL FOR UNLADING AND LADING ............. 4.30, 122.38 LICENSES
Carriers, cartmen and lightermen ..................................... 112.30 Cartmen and lightermen to produce .................................. 112.28 Cartmen’s suspension or revocation .................................. 112.30 CES; revocation ................................................................. 118.21 Customs brokers ................................................................ 111.0
Revocation ................................................................... Part 111, subpart D
Gaugers revocation ............................................................ 151.13 Importations in vessel less than 30 net tons ...................... 4.100 Laboratories; revocation ................................................... 151.12 Yachts, pleasure, when required ........................................ 4.94
LICENSING AND BONDING OF CARTMEN AND LIGHTERMEN ...................................................................... Part 112, subpart
C LIENS
Discharge of ....................................................................... 141.112 Duty constitutes ................................................................ 141.1 Freight and other charges ................................................. 141.112(a)(1), 171.44 Payment from proceeds of sales ......................................... 127.31 Seized property—Awarded for official use—Payment of
liens ................................................................................ 171.44 LIGHTERAGE .......................................................................... Part 112, subparts
A, C and D; 125; 127.32
LIGHTERMEN, designation of, on warehouse entry ................ 144.11 LIGHTERMEN’S BOND ........................................................... 113.63 LIGHTERS, ETC., MARKING OF LICENSED .......................... 112.27 LIGHT MONEY
Exemptions ........................................................................ 4.21 Payment of—Certificate, form ........................................... 4.23 Refund of ............................................................................ 4.24 Table, classes of vessels ..................................................... 4.20
LIQUIDATED DAMAGES Bonded cartmen, failure to remove marking ..................... 112.27(d) Carnets, fraud, violation, or abuse of privileges ................ 114.33, 114.34 Copyrights, trademarks ..................................................... Part 133, subpart
F Decisions not protestable .................................................. 172.22 Failure to petition for relief .............................................. 172.2 Free withdrawal of supplies ............................................... 10.59 Notice of liquidated damages incurred .............................. 172.1(a) Petition for relief ............................................................... 133.51, Part 172,
subparts A-C Return to Customs custody, failure to .............................. 10.39(e), 141.113(g) Temporary importation bond—Application for relief ........ 10.39(e) Temporary importation bond, assessment under ............... 10.39 Under carrier’s bond .......................................................... 18.8
LIQUIDATION Appraisement entries ......................................................... 159.9
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Subject Index
LIQUIDATION—Continued Articles not specified on invoice ........................................ 152.3 Baggage entries .................................................................. 159.10 Bonded merchandise—Shortages ....................................... 18.6 Bulletin notice—Forms ...................................................... 159.9, 159.10 Change in rate of duty by
Congress or presidential proclamation ........................ 152.17 Court decision .............................................................. 152.16 Headquarters decisions ................................................ 174.27, 174.29,
175.22, 177.10 Classification, change in .................................................... 152.2 Clerical errors, correction of ............................................. Part 173 Commingling of goods ........................................................ 152.13 Computation of duties ....................................................... 141.104, 159.1, 159.3,
159.4, 159.6 Conditionally free—Failure to produce missing docu-
ments .............................................................................. 172.22 Conversion of currency ...................................................... Part 159, subpart
C Courtesy notice .................................................................. 159.9(d) Currency, basis for conversion of ....................................... 159.35 Deemed .............................................................................. 159.1 Difference between estimated and liquidated duties ......... 159.6 Effective date of rate of duty ............................................. 152.16, 159.7(b),
177.10 Entries
Discrepancy on—New entry required ........................... 152.3 Drawback ..................................................................... 191.71 Informal ....................................................................... 159.10 Mail .............................................................................. 159.10
Protest ................................................................... 145.22(c) Merchandise entered by false documents and seized ... 162.80 Rewarehouse ................................................................ 159.7 Subject to—Exceptions ................................................ 159.2 Stamped with date ....................................................... 159.9(c) Visual or auditory materials, suspension .................... 10.121(b) Warehouse .................................................................... 159.9, 159.21, 159.52
Withdrawals ........................................................... 159.9 Evidence ....................................................................... 159.9(c)
Excessive duties or taxes paid, notice of refund of—Form 24.36 Exportation, date of ........................................................... 159.32 Extension of time .............................................................. 159.12 Fractional parts of dollar or unit of quantity ................... 159.3 Instruments and apparatus ................................................ 10.114 Internal revenue taxes, computation of ............................. 159.4, 159.21 Merchandise manipulated in warehouse ............................ 159.21(a) Method of ........................................................................... 159.3-159.10 Net weight, when basis for ................................................. 159.21, 159.22 Notice of ............................................................................ 159.9, 159.10 Operation of law ................................................................. 159.11 Protests against ................................................................. 174.11, 174.12,
174.14 Accelerated disposition of
Rates of exchange .............................................................. 159.31, 159.38 Required ............................................................................. 159.2 Shortages, allowance of ..................................................... 18.6, 158.2-158.6 Smelting or refining of metal-bearing materials, entries
of ..................................................................................... 151.55
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LIQUIDATION—Continued Special duties .................................................................... Part 159, subpart
D Suspension of ..................................................................... 159.51-159.53,
159.54, 159.55 Weight, gauge, or measure ................................................. 159 subpart B
LIQUORS Aircraft kits ....................................................................... Part 122, subpart
M Baggage of diplomatic officials or other representatives .. 148.81, 148.82,
148.87-148.90 Blending, permit requirements .......................................... 12.37 Bottles and similar containers, imported .......................... 11.7 Bottling, permit requirements ........................................... 12.37 Bulk importations (in casks and similar containers) ........ 11.6 Certificate for shipments on small vessels—Penalty ......... 4.13 Crewmembers’ declarations and exemptions ..................... 148.66 Distilled spirits and wines shipped to Puerto Rico ............ 7.1 Foreign military personnel, exemptions ............................ 148.90 Importation restricted, permits ......................................... 12.37 Labeling packages, requirements—penalty ....................... 12.38 Nonresidents ...................................................................... 148.43 Quantities dutiable or taxable ........................................... 159.21 Residents ........................................................................... 148.33 Strip stamps for bottled .................................................... 11.6, 11.7 Taxes, internal revenue ..................................................... 148.26(b)
LITERATURE, TREASONABLE, ETC.—Importation prohib- ited ........................................................................................ 12.40, 145.51
LIVESTOCK Exported for exhibition, return—Entry requirements ....... 10.66 Immediate transportation restricted ................................. 18.11
LOAD-LINE REGULATIONS ................................................... 4.61, 4.65a LOCOMOTIVES
Domestic, repaired in foreign country—Dutiable status ... 123.13 Foreign, operating in U.S.—Entry of, when not required .. 123.12
LOSS OF MERCHANDISE IN PUBLIC STORES ..................... 158.26 LOTTERY MATTER, MAIL IMPORTATIONS, PROHIBI-
TION ..................................................................................... 145.51, 146.1 LUMBER, SOFTWOOD FROM CANADA ................................. 12.140 LUMBER, SOFTWOOD FROM ANY COUNTRY ....................... 12.142
M MACHINERY, EXAMINATION OF, AT MILL OR FACTORY .. 151.8 MAIL
Absolute quota merchandise .............................................. Part 132, subpart C
Books, engravings, etc., for Government departments or agencies .......................................................................... 145.37
Books or other articles imported for institutions ............. 145.36 Carnets not accepted for importation by mail ................... 114.31(a) Carriage on vessels ............................................................ 4.61 Cigars ................................................................................. 11.1, 11.2, 145.13 Commercial shipments, invoice requirements ................... 145.11(b) Copyright, articles marked for .......................................... 145.37 Customs declarations and invoices required ...................... 145.11(a) Diplomatic pouches, official documents ............................ 145.38 Duties, refund of ................................................................ Part 145, subpart
C
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Subject Index
MAIL—Continued Entry
Examination of ............................................................ 145.2, 145.3 Firearms ...................................................................... 145.53 Formal ......................................................................... 145.12(a) Forms ........................................................................... 145.12(e)(2) Free, conditionally ...................................................... 10.43, 10.46,
145.12(d), 145.35- 145.39, 145.41
Gifts valued not over $100 ............................................ 145.32 Informal ....................................................................... 145.12(b) Institutions, free list of; books, music, etc., for .......... 10.43, 145.36, Internal revenue tax on mail entries ........................... 11.1(a), 145.13 Liquidation of .............................................................. 159.9, 159.10 Lottery matter ............................................................ 145.51 Marking requirements law (Search for letters) ........... 162.4 Personal and household effects .................................... 145.34 Plant material for export ............................................ 145.40, 145.57 Plants and plant products ............................................ 145.57 Prohibited or restricted articles, disposition of .......... 145.4, Part 145,
subpart E Protests ....................................................................... 145.22, 145.23 Rates of duty in effect ................................................. 145.12(b)(2) Reading of correspondence, when prohibited ............... 145.2, 145.3 Review of ..................................................................... Part 145, subpart
C Search for letters ......................................................... 162.4 Search warrant to read foreign mail ............................ 145.3 Seizure of, addressee to be notified .............................. 145.59(b) Seizure, when imported contrary to law ...................... 145.4, 145.59 Separate shipments, combining for entry .................... 145.12(a)(3) Shipments not exceeding $200 in value ........................ 145.31 Trademarks, trade names and copyrights ................... 145.55 Tools of trade ............................................................... 145.34 Undeliverable, detention and disposition of ................ 145.5 U.S. Government offices or officials, articles for ........ 145.12(c) Value exceeding $2,000, entry of ................................... 145.12(a)(2) Value not more than $200 ............................................. 145.31 When not exceeding $2,000 in value .............................. 145.4, 145.12(b),
145.41 Exportations
Continuous Customs custody ....................................... 145.71 Imported articles, remission of duties, when ............... 145.40, 145.71,
145.72 Plant material ............................................................. 145.40 Waiver of right to withdraw ........................................ 145.71(b)
Fees, dutiable mail ............................................................ 24.22(f) Foreign representatives, for .............................................. 145.2(b)(3), 145.38,
145.39, 148.83, 148.85
Importations Abortion and contraceptive matter ............................. 145.52 Absolute quota merchandise ........................................ Part 132, subpart
C Addressee dissatisfied with duties assessed ................. Part 145, subpart
C Administrative review of mail entries ......................... Part 145, subpart
C
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MAIL—Continued Importations—Continued
Alcoholic beverages, nonmailable ................................ 145.54 American, Samoa, Guam, or Virgin Islands, from ....... Part 148, subpart
K MAIZE SEED—Reduced rate ................................................... 10.57 MANIFESTS
Air commerce .................................................................... 122.22(b), 122.49a, 122.49b, 122.49c, 122.75a, 122.75b
Amendment of, bulk cargo ................................................. 4.12 Baggage
Domestic, through contiguous foreign territory ......... 123.21, 123.65 Foreign, from contiguous foreign territory ................. 123.3-123.5 In bond—Form ............................................................. 18.13 In transit through U.S. ................................................ 18.14, 123.64
Boarding vessels for examination of .................................. 162.3 Cargo, departure with to noncontiguous territory ............ 4.84 Cargo from wrecked vessel ................................................. 4.41 Cargo, vessels trading between U.S. ports on Great Lakes
and other U.S. ports ........................................................ 4.83 Coastwise, vessel touching at foreign port ........................ 4.82 Commercial travelers’ samples
Accompanied through Canada and return .................... 10.68, 123.21, 123.51 Accompanied through U.S. and return to Canada ........ 10.68, 123.21, 123.52
Confidential treatment of information .............................. 103.31(d) Contiguous countries, vehicles and vessels less than 5 net
tons, from—Form ............................................................ 123.3, 123.4, 123.7 Delivery to boarding officer ............................................... 4.7 Discrepancies in—Penalty ................................................. 4.12 Diversion of cargo from port shown on, amendment of ..... 4.33 Entry of merchandise; line release .................................... 142.46, 142.48 Failure to manifest articles when required ....................... 4.7a(b)(4) Failure to manifest narcotic drugs or marihuana ............. 162.65 Failure to list crew’s purchases ......................................... 4.7a(b)(4) Form .................................................................................. 18.2, 122.92 Government vessel from foreign port, required ................. 4.5 In-transit
Baggage through foreign territory, form ..................... 123.64, 123.65 Commercial travelers’ samples
Merchandise through contiguous foreign terri- tory, form ........................................................... Part 123, subpart
C Merchandise through U.S., form ............................ Part 123, subpart
D Truck procedures ................................................... 123.41, 123.42
Inward Foreign Contents, forms ............................................................ 4.7 Information required and alternative forms ................ 4.7a Shipments of containerized or palletized cargo ........... 4.7a(c)(1) Shipper’s load and count and use of term ‘‘SLAC’’ ...... 4.7a(c)(2)
Merchandise transported in bond Conveyance, manifest to accompany each ................... 18.2, 18.3 Disposition of ............................................................... 18.2
Merchandise valued not over $250 unconditionally free, manifest used as entry .................................................... 123.7
Outward foreign Before clearance .......................................................... 4.61, 4.63, 4.75
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Subject Index
MANIFESTS—Continued Outward foreign—Continued
Incomplete, bond ......................................................... 4.75 Passenger—Unaccompanied baggage on board vessel ........ 4.7a(e)(4) Permit, used as .................................................................. 18.2 Prematurely discharged or overcarried cargo, form .......... 4.34 Refusal of master to produce to boarding officer, penalty 4.7 Sea and ships’ stores, etc., when to be manifested ............ 4.7, 4.7a Special manifest ................................................................ 18.10a Transit air cargo procedures .............................................. Part 122, subpart
L Transshipment of ............................................................... 18.3 Vehicles ............................................................................. 123.3, 123.4 Vessels
Discrepancies, and corrections .................................... 4.12 In trade with noncontiguous territory ........................ 4.84 Inward foreign—Forms, contents ................................. 4.7 Overage of cargo—Form ............................................... 4.12, 4.62 Proceeding foreign via domestic ports ......................... 4.87 Shortage of cargo—Form ............................................. 4.12, 4.62 Vessels and vehicles, examination of ........................... 162.3
MANIPULATION IN WAREHOUSE OR ELSEWHERE ............ 19.11 MANIPULATION OUTSIDE BONDED WAREHOUSE, EX-
PENSES OF .......................................................................... 24.17(a)(8) MARIHUANA AND NARCOTIC DRUGS
Permit to unlade, penalty .................................................. 162.66 Unmanifested, penalty ....................................................... 162.65 When permissible on vessels, aircraft and individuals ....... 162.62
MARINE PRODUCTS, CONDITIONALLY FREE ..................... 10.78 MARITIME ADMINISTRATION, VESSELS OF, EXEMPT
FROM PENALTIES .............................................................. 162.22(e) MARKING
Bolting cloth for milling purposes ..................................... 10.58 Containers, foreign substantial, for reimportation ........... 10.7 Corn or maize, seed ............................................................ 10.57 Country of origin ............................................................... Part 134
Additional duties ......................................................... 134.2 Articles repacked or manipulated ............................... 134.26, 134.34 Articles subject to marking ......................................... Part 134, subpart
B Certificate of marking ................................................. 134.52 Compensation for services of Customs officers and
employees ................................................................. 134.55 Containers and holders, marking of ............................. Part 134, subpart
C Definition of ................................................................. 134.1(b) Delivery withheld ........................................................ 134.3 Exceptions to marking ................................................ Part 134, subpart
D Filing of false certificate, penalty ............................... 134.52(d) Intentional alterations, penalty .................................. 134.4 Liquidated damages ..................................................... 134.54 Notice to mark or redeliver, form ............................... 134.51(a) Requirements and methods of marking ....................... Part 134, subpart
E Specific articles, method of marking ........................... 134.43 Ultimate purchaser, defined ........................................ 134.1(d) Watches, clocks, and timing apparatus ....................... 11.9, 134.43(b)
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MARKING—Continued Customs officers, compensation of .................................... 24.17, 134.55 Disposition of articles not properly marked ...................... 134.51-134.54 Drums of foreign manufacture exported ............................ 10.7 Duties ................................................................................ 159.46 Furs, other skins or seal skins ........................................... 12.61-12.63 Gold or silver articles, false, penalty ................................. 11.13 Labeling ............................................................................. 11.9, 11.12, 11.12a,
11.12b, 11.13 Liquor packages, penalty ................................................... 12.38 Liquors in casks and similar containers ............................ 11.6 Milk and cream containers ................................................ 12.7 Packages containing merchandise produced by convict
labor, penalty .................................................................. 12.45 Potatoes, seed .................................................................... 10.57 Vehicles and vessels ........................................................... 112.27 Viruses, serums, and toxins, containers of ........................ 12.18, 12.22
MARKING OF LICENSED VEHICLES AND LIGHTERS, CARTAGE ............................................................................. 112.27
MARKING OF PACKAGES SHIPPED BY MAIL ...................... 145.11 MASTER CREW MEMBER LIST AND MASTER NON-CREW
MEMBER LIST REQUIREMENT FOR COMMERCIAL AIR- CRAFT ARRIVING IN, CONTINUING WITHIN, AND OVER- FLYING THE UNITED STATES ........................................... 122.49c
MASTER RECORDS AND METAL MATRICES ....................... 10.90 MASTER’S DECLARATION—Repairs and equipment ob-
tained abroad ........................................................................ 4.14 MASTER’S OATH, CLEARANCE OF VESSEL ON—Form ....... 4.63 MATCHES, WHITE PHOSPHORUS—Importation prohibited .. 12.34 MEASUREMENT
Cotton ................................................................................ Part 151, subpart F
Petroleum products ........................................................... Part 151, subpart C
Sugar, syrups, and molasses .............................................. Part 151, subpart B
Wool and hair ..................................................................... Part 151, subpart E
MEASURING WAREHOUSED GOODS FOR EXPORTATION OR TRANSPORTATION ....................................................... 144.37(e)
MEAT AND MEAT-FOOD PRODUCTS Entry procedure ................................................................. 12.8, 12.9 Exportation of, inspection by Animal and Plant Health
Inspection Service, U.S.D.A. ........................................... 4.61, 4.72 MEDICINAL PREPARATIONS, STAMPING ........................... 11.1 MELTING, METAL ARTICLES TO BE USED IN REMANU-
FACTURE BY ....................................................................... 54.5, 54.6 MERCHANDISE
Abandoned, forfeited, or unclaimed goods subject to in- ternal-revenue tax, disposition of ................................... 127.28(e), (f), (g)
Abandoned or destroyed Application to abandon, form ...................................... Part 158, subpart
D Duty allowance ............................................................ Part 158, subpart
D Appraisement entries ......................................................... Part 143, subpart
B Appraisement to be made .................................................. 152.101
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Subject Index
MERCHANDISE—Continued Articles not specified on invoice ........................................ 152.3 Baggage, not for personal use, in ....................................... 148.23(c) Bearing trademarks or trade names .................................. Part 133, subpart
C Bonded
Carrier to furnish warning cards for cars, etc. ............. 18.4 Diversion of Transportation entry to another port ..... 18.5 Immediate transportation without appraisement ....... 18.11, 18.12 Marking required for vehicles or lighters to carry ...... 112.27 Receipt by Carrier ....................................................... 18.2 Sealing of conveyances, etc. ........................................ 18.4 Seals, removal ............................................................. 18.3(d) Shortages ..................................................................... 18.6 Splitting shipments at intermediate or destination
port ........................................................................... 18.5(d) Transportation of ......................................................... 18.1-18.7, Part 112,
subpart B Transportation of, nonbonded goods with .................... 18.4(c) Transshipment ............................................................. 18.3
Cartage and lighterage ...................................................... Part 125 Cartmen’s liability ............................................................ 125.41, 125.42 Coastwise transportation ................................................... 4.80b Commingling of—Segregation ........................................... 152.13 Condemned perishable—Allowance in duty ....................... 158.14 Contiguous country, from .................................................. 123.3-123.8 Contrary to law, imported ................................................. 162.21, 162.22 Copyrighted ....................................................................... Part 133, subpart
E Damaged or Defective—Duty allowance ............................ Part 158, subpart
B Designation of packages for examination .......................... 151.1-151.3 Detention of ....................................................................... 151.16 Discrepancy between shipment and invoice, liquidation ... 152.3 Dutiable, in baggage examined in foreign country ............ 148.22 Duty paid, in public stores or bonded warehouses—Unde-
livered, disposition ......................................................... 127.14 Entry for manipulation ..................................................... 19.11 Entry; line release processing ............................................ Part 142, subpart
D Entry of
From vessel sunk for 2 years ....................................... 4.41(c) Unclaimed, before sale ................................................. 127.14
Entry, when and when not required ................................... 141.4, 10.151-10.153, 148.62(b), 148.85- 148.88
Examination of, prior to entry, inspection charges ........... 151.5 Excessive moisture and other impurities—Duty allow-
ance ................................................................................. 158.13 Exportation of, final port, in transit ................................. 123.28 Exported contrary to law, seizure ...................................... 161.2(b) Exported for
Alterations or repairs .................................................. 10.8 Exhibition, return of .................................................... 10.66 Scientific or educational purposes, return .................. 10.67
Exported from Customs custody ........................................ 158.45 Fee, ad valorem merchandise ............................................. 24.23 Foreign, destined to foreign countries via U.S. port ......... 4.88, 4.89
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19 CFR Ch. I (4–1–12 Edition)
MERCHANDISE—Continued Foreign military personnel and their immediate families 148.90 Foreign representative, free entry privilege ...................... Part 148, subpart I Forfeited
Remission or mitigation of fine, penalty, and for- feiture—Petitions ..................................................... 162.32, Part 171,
subparts B-D Sold, petition for restoration of proceeds .................... Part 171, subpart
E Forfeiture
Failure to declare in baggage, penalty ........................ 148.18 Prohibited importation of immoral articles ................ 12.40-12.41 Sale .............................................................................. 162.45-162.48
General order procedure .................................................... 4.37 Government importations ................................................. 141.102(d), 10.100-
10.104, 145.37 Immediate delivery, special permit for .............................. Part 142, subpart
C Importation date ................................................................ 101.1 Imported in vessels of less than 30 net tons ....................... 4.100 Importing contrary to law ................................................. 162.22 Informal entry of, information to be shown ...................... Part 143, subpart
C Institutions, articles—Conditionally free .......................... 10.43 In transit through contiguous foreign territory
Authority for ............................................................... 123.21(c) Manifest—Form, contents, and disposition ................. Part 123, subpart
C Procedure at port of exit ............................................. 123.22(a), 123.28 Procedure at port of reentry ........................................ 123.29 Sealing ......................................................................... 123.24 Seals, in bond or in transit, breaking .......................... 123.21, 123.26,
123.29 Storage in foreign territory ......................................... 123.26(b) Train consist sheets ..................................................... 123.23, 123.29 Transshipment in foreign country ............................... Part 123, subpart
D, 123.52, 123.64 In transit through U.S.
Between ports of a contiguous country ....................... Part 123, subpart D, 123.52, 123.64
To foreign countries .................................................... 18.20-18.24 Laden on vehicle or vessel without special license or per-
mit .................................................................................. 148.67(b), 162.22 Landed, unentered, when to be sent to general order ........ 4.37 Library of Congress, articles for ........................................ 10.46, 145.37 Line release processing ...................................................... Part 142, subpart
D Loss of, by cartmen—Liability .......................................... 125.35, Part 125,
subpart E Loss of, in public stores ..................................................... Part 158, subpart
C Mail importations .............................................................. Part 145 Manipulated in warehouse ................................................. 19.11, 159.21(a) Marking country of origin, exceptions .............................. 11.9, Part 134,
subparts D and E
Noncommercial importations of limited value .................. Part 148, subpart J
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Subject Index
MERCHANDISE—Continued Nonimportation—Duty allowance ..................................... 158.11 Not properly marked, disposition of .................................. Part 134, subpart
F Obscene, etc.—Importation ................................................ 12.40, 12.41 Omission of merchandise on invoice .................................. 152.3 Perishable
Inspection before entry or while in transit, inspection charges ...................................................................... 151.4, 151.5
Unclaimed, sale ............................................................ 127.28(c) Place of examination ......................................................... 151.6, 151.7, 151.8 Proceeds of sale of, disposition of ...................................... Part 127, subpart
D Produced by convict, forced, or indentured labor—Impor-
tation prohibited ............................................................. 12.42-12.45 Recall ................................................................................. 141.113, 151.11 Recovered from wrecked vessel or as derelict, Disposi-
tion ................................................................................. 4.41 Refused by consignee, when to be treated as unclaimed .... 141.1(f) Reimported goods dutiable, exceptions ............................. 141.2 Rejected
Exportation of .............................................................. 158.45 Exportation of—Drawback ........................................... 191.42 Viruses, serums, and toxins ......................................... 12.20, 12.23
Release of In warehouse, limitation on ......................................... 19.6 Nonexamination packages, form ................................. 141.102(d) From carrier or warehouse proprietor ......................... Part 141, subpart
H When lien exists ........................................................... 141.112
Remaining unsold .............................................................. 127.29 Responsibility for, in warehouse ........................................ 144.2 Restricted or prohibited importations, Burmese covered
articles ............................................................................ 12.151 Restricted or prohibited importations, exportation .......... 18.25, 18.26 Return to Customs custody—Default on bond, liquidated
damages .......................................................................... 141.113(g), Part 113, subpart F, Part 172, subpart C
Rewarehousing ................................................................... 144.41, 144.42 Sale notices—Catalogs ....................................................... 127.24, 127.26 Sale
Abandoned or unclaimed .............................................. Part 127, subpart C
Forfeited ...................................................................... 162.46, 162.48, 162.49
Forfeited, disposition of proceeds—Expenses ............... 162.51 Unclaimed perishable goods ......................................... 127.28(c)
Samples, taking of prior to entry ...................................... 151.4, 151.5 Sealed by Customs officer .................................................. 123.24, 123.33, 18.4 Search and examination .................................................... 162.6 Seized
Appraisement of ........................................................... 162.43 By State officer—Adoption by Customs ....................... 162.21 Disposition after summary forfeitures ........................ 162.46 Disposition when inspection by other Government
agency required ........................................................ 162.46(b)
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19 CFR Ch. I (4–1–12 Edition)
MERCHANDISE—Continued Seized—Continued
Perishable or liable to waste or deteriorate in value— sale ............................................................................ 162.48
Release On payment of appraised value .............................. 162.44 Petition for ............................................................ 162.31, Part 171,
subpart B, 171.22, Part 171, subpart D
Under bond—Petition to court ............................... 162.47(b), 162.49(b) Subject to summary forfeiture
Release under bond ............................................. 162.47, 162.49 Claim and bond to stop summary forfeiture ....... 162.47
Treatment of ................................................................ Part 162, subpart E
Proceedings by libel ............................................... 162.42 Seized and forfeited
Destruction of, when .................................................... 162.46, 162.50 Disposition ................................................................... 162.46, 162.48 Reports to U.S. attorneys—When required .................. 162.32, 162.47(d),
162.49(a), 172.3 Sale .............................................................................. 162.45-162.52 State laws prohibiting sale .......................................... 162.46(c)(2), 162.50 Transfer to other districts for sale .............................. 162.46, 162.50
Seizure of—In passengers’ baggage .................................... 148.18, 148.19 Shortages—Duty allowance ............................................... 158.2-158.6 Smuggled ........................................................................... 162.22, 148.18(a) Special marking requirements, exceptions ........................ 11.9, Part 134,
subpart D 134.42- 134.44
Special permit for immediate delivery .............................. Part 142, subpart C
State importations dutiable .............................................. 141.1(e) Summary sale .................................................................... 162.45 -162.48 Supplies for vessels withdrawn from warehouse ................ 10.59 Transfer to another warehouse .......................................... 144.34 Transportation of, by bonded carriers ............................... Part 112, subpart
B Transported by pipeline
Abandonment of exportation ....................................... 18.44 Applicability ................................................................ 18.41 Direct exportation ....................................................... 18.42 Indirect exportation .................................................... 18.43 Pipeline transportation of bonded merchandise .......... 18.31 Supervision of exportation .......................................... 18.45
Unclaimed Abandonment and sale ................................................. 127.13, 127.14, Part
127, subpart C, Part 127, subpart D
Entry of ....................................................................... 127.13(a), 127.2 Storage and other expenses, payment of ............................ 127.13(b) Unclaimed or in warehouse beyond the time fixed by law,
disposition ...................................................................... 127.11, 127.14 Undeliverable by cartmen .................................................. 125.36 Unentered, exportation of .................................................. 158.45(a) U.S., articles of .................................................................. 145.37, 141.102(d),
10.100-10.104
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Subject Index
MERCHANDISE—Continued Unladen from vehicle or vessel without special license or
permit ............................................................................. 162.22 Valuation ........................................................................... 152.101 Value not exceeding $5 ....................................................... 10.153(e) Warehouse, sent to public stores—Disposition .................. 19.10 Warehouse withdrawal period ............................................ 144.5 Warehouse withdrawals for exportation ............................ 144.37 Warehoused, liability for duties ......................................... 144.2 Weighing, gauging, or measuring warehouse merchandise
for exportation or transportation ................................... 144.37(e) When duties accrue on ....................................................... 141.1 Withdrawal from warehouse for consumption—Form and
procedure ........................................................................ 144.38 Withdrawal from sale ......................................................... 127.14 Withdrawal of, by transferee ............................................. 144.27, Part 144,
subpart C Withdrawn for exportation but not laden, disposition of
by inspector .................................................................... 144.37(f) METAL ARTICLES FOR REMANUFACTURE BY MELTING . Part 54 METAL-BEARING ORES AND METAL-BEARING MATE-
RIALS ................................................................................... Part 151, subpart D
METAL MATRICES FOR SOUND RECORDS FOR EXPORT ... 10.90 MEXICO
Articles repaired or altered ............................................... 181.64 Resident returning from—exemption ................................ 148.35(a) Vehicles, stolen, returned from ......................................... 123.82
MIDWAY ISLANDS ................................................................. 7.2, 7.3, 191.5 MILK AND CREAM, IMPORTATION OF—Special require-
ments .................................................................................... 12.7 MISSING DOCUMENTS, BOND FOR ....................................... 141.66 MISTAKE OF FACT ................................................................. 162.71, 162.73 MITIGATION OF FINES, PENALTIES, AND FORFEIT-
URES—Petitions ................................................................... 162.31, 162.32, Part 171, subpart B
MODELS AND PATTERNS FOR INSTITUTIONS ................... 10.43 MODELS OF WOMEN’S WEARING APPAREL—Temporary
importation bond .................................................................. 10.31, 10.35 MOISTURE ALLOWANCE
Ores and metals ................................................................. 151.55 Petroleum products ........................................................... 151.46 Raw sugar .......................................................................... 151.23
MOISTURE, EXCESSIVE, DUTY ALLOWANCE ..................... 158.13 MOLASSES (SEE SUGAR, SIRUPS, AND MOLASSES.) MOROCCO FREE TRADE AGREEMENT (See, UNITED
STATES-MOROCCO FREE TRADE AGREEMENT) MOTION-PICTURE FILMS
American goods returned ................................................... 10.1 Exported and returned ....................................................... 10.68 Theatrical effects, not ....................................................... 10.33
MOTOR CARRIERS, BONDED CARRIERS, AS ....................... 18.1, 112.11, 112.12(b)(4)
MOTOR VEHICLES—Safety standards .................................... 12.80 MULTIPLE ENTITIES ............................................................. 141.58 MULTIPLE INVOICES ............................................................. 141.61(f) MUNITIONS AND ARMS, EXPORTATION OF ........................ 4.61, 4.73 MUNITIONS OF WAR, CONTROLLED IMPORTS AND EX-
PORTS—Seizure ................................................................... 161.2
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19 CFR Ch. I (4–1–12 Edition)
N NAFTA (See NORTH AMERICAN FREE TRADE AGREE-
MENT) NARCOTICS
Arrests and seizures ........................................................... 162.63 Controlled imports and exports, seizure of ........................ 161.2(b), 162.63 Exportation to other countries, unlawful .......................... 162.61 Forfeited, disposition of ..................................................... 162.63 Importation and exportation procedure ............................ 12.36 In transit through U.S. ...................................................... 18.21 Medical stores on vessels ................................................... 4.39, 162.62 Permit to unlade—Penalty ................................................ 162.66 Seized, disposition ............................................................. 162.63 Unmanifested—Penalties ................................................... 162.65
NATIONALITY OF VESSEL, VERIFICATION OF .................. 4.61, 4.65 NAVIGATION FEES ................................................................ 4.98 NEUTRALITY
Bonds, special .................................................................... 113.71 Observance of, by vessels ................................................... 4.73
NEWSPAPERS, INFORMATION TO ........................................ 10.31, 103.31 NEWSREEL FILMS EXPOSED ABROAD ................................ 10.10 NIGHT, DEFINITION ............................................................... 24.16 NOMINAL CONSIGNEE, BANKRUPT—REFUND OF EXCES-
SIVE DUTIES AND INTERNAL-REVENUE TAXES ............ 24.36 NONCONTIGUOUS TERRITORY
Definition ........................................................................... 4.0 Vessels in trade with .......................................................... 4.84, 4.90
NONIMPORTATION, WHAT CONSTITUTES—Duty allow- ance ....................................................................................... 158.11
NONRESIDENTS Articles carried through U.S. ............................................ 148.41 Consignee, entry of merchandise ....................................... 141.17 Definition ........................................................................... 148.2(c) Exemptions allowed ........................................................... Part 148, subparts
E and F Jewelry, sale ...................................................................... 148.46 Vehicles, free entry ............................................................ 148.45
NORTH AMERICAN FREE TRADE AGREEMENT .................. 10.31(f), 24.23(c)(3), Part 102, 174.12(a)(5), 174.15(b), Part 181
NORTHERN MARIANA ISLANDS, Commonwealth of the ...... 7.2, 148.101, 148.102, Part 148,subpart K
NOTICES Advance in value ................................................................ 152.2 Clean yield (wool or hair) to importer ............................... 151.64, 151.71(b) Commingling of merchandise ............................................ 152.13(a) Denial of protest ................................................................ 174.30 Duties due, to importer ..................................................... 24.11 Fines, penalties, and forfeitures, to offender ..................... 162.31(a) Grade (wool or hair), to importer ...................................... 151.76(b) Increased duties, possible .................................................. 152.2 Internal-revenue taxes due, to importer ............................ 24.11 Internal-revenue taxes, refund of ....................................... 24.36 Liquidated damages incurred ............................................. 172.1
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Subject Index
NOTICES—Continued Liquidated entries, to be posted ........................................ 159.9, 159.10 Mail importations value over $2,000, notice to addressee ... 145.12(a)(4) Motor vehicles—Safety standards ...................................... 12.80(h) Penalties ............................................................................ 111.92 Return to customs custody—Form .................................... 141.113, 151.11 Sale of merchandise, to importer ...................................... 127.24 Seizure, addressee to be notified ........................................ 145.59 Seizure and intent to forfeit property ............................... 162.45 Shooks and staves—Form .................................................. 10.5 Staple length (cotton), to importer ................................... 151.84 Substantial containers or holders ...................................... 10.7 Test of sugar, molasses, and syrup, to importer ................ 151.31
O OBLIGATIONS OF THE U.S.
Counterfeit, prohibited importation .................................. 12.48 OBSCENE MATTER—Importation prohibited ......................... 12.40, 12.41 OFFERS IN COMPROMISE ..................................................... 161.5 OFFICIALS OF FOREIGN GOVERNMENT—FREE ENTRY
PRIVILEGE .......................................................................... Part 148, subpart I OFFSETTING (NETTING) ....................................................... 163.11 OFFSPRING OF ANIMALS—FOREIGN PASTURAGE AND
STRAYS ................................................................................ 10.74 OIL OR REFUSE DISCHARGED BY VESSEL IN NAVI-
GABLE WATERS .................................................................. 4.66a, 4.66b, 4.66c OILS
Product of American fisheries ........................................... 10.78 Vegetable—Olive, palm-kernel, rapeseed, sunflower, and
sesame Denaturing ................................................................... 10.56 Release ......................................................................... 10.56
OMB CONTROL NUMBERS, LISTING OF ............................... 178.2 OPIUM
Controlled substances ........................................................ 162.61 Unmanifested—Penalty ..................................................... 162.65
OMAN FREE TRADE AGREEMENT (See, UNITED STATES- OMAN FREE TRADE AGREEMENT)
OPTIONAL PORTS IN INTERCOASTAL TRADE .................... 4.86 ORAL DECLARATIONS ........................................................... 148.12 ORES AND CRUDE METALS .................................................. Part 151, subpart
D ORES AND METALS
Domestic substituted, for drawback .................................. 191.32 Entry of, in bond ................................................................ 19.17 Sampling and assaying ...................................................... 19.17, 151.51, 151.52
ORGANIZATION OF AMERICAN STATES ............................. 148.88 ORIGINAL EQUIPMENT—AUTOMOTIVE ............................... 10.84 ORIGIN
Country of .......................................................................... Part 134 Rules; CAFTA-DR .............................................................. 10.593-605 Rules; NAFTA .................................................................... 181.131
OTTER FUR SKINS ................................................................. 12.60-12.63 OUTBOUND ADVANCE CARGO REPORTING REQUIRE-
MENTS ................................................................................. 192.14 OVERAGE OF CARGO—FORM ................................................ 4.12, 4.62 OVERTIME
Application for service—Form—Bond ................................ 4.10, 24.16
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19 CFR Ch. I (4–1–12 Edition)
OVERTIME—Continued Application for unlading or lading, approval of—Form—
Bond ................................................................................ 4.30 Assignments ....................................................................... 24.16(d) Bond covering—Vehicles .................................................... 123.8 Bond for—Vessel of less than 5 net tons, contiguous coun-
try, from ......................................................................... 123.8 Compensation—Bond ......................................................... 24.16 Computation of compensation ........................................... 24.16 Definition—
Holiday ........................................................................ 24.16 Night ............................................................................ 24.16
Entry and clearance on board vessels ................................ 4.16 License, special, unlading or lading vessels—Form ........... 4.30 Marking, supervision ......................................................... 134.55 One-half day’s pay, definition of ........................................ 24.16 Request for service in connection with boarding, entry or
clearance of vessels—Form—Bond .................................. 4.10 Waiting time subject to overtime compensation ............... 24.16
OWNER OF MERCHANDISE Consignee (nominal) as ...................................................... 141.19, 141.20 Examination of, citation to appear and testify ................. 162.2
P PACKAGE SEALS, PROCURING AND ACCOUNTING ............ 24.13 PACKAGES, DESIGNATION OF, FOR EXAMINATION .......... 151.1-151.3 PACKED PACKAGES, ENTRY OF ........................................... 141.52 PACKING COSTS—VALUATION-DEFINED, TRADE AGREE-
MENTS ACT OF 1979 ............................................................. 152.102(e) PACKING TOBACCO PRODUCTS ............................................ 11.1, 11.2 PANAMA CANAL
Vessels transiting— Clearance of ................................................................. 4.60 Crews’ effects ............................................................... 148.3 Passengers’ baggage ..................................................... 148.3 Report of ...................................................................... 4.4 Tonnage tax not affected by transiting ....................... 4.20
PARCEL POST, IMPORTATIONS BY ..................................... Part 145, subpart B
PARCEL POST PACKAGES, EXPORTATION FROM WARE- HOUSE .................................................................................. 144.37(c)
PARROTS—IMPORTATION PROCEDURE .............................. 12.26 PARTNERSHIPS
Bond, execution by ............................................................. 113.32 Partners as sureties on bond ........................................ 113.36
PASSENGER LIST Foreign trade—Production ................................................ 4.50 Specifications .................................................................... 4.50, 4.7
PASSENGER NAME RECORD (PNR) INFORMATION ............ 122.49d PASSENGERS
Aircraft; stopover .............................................................. 122.88 Articles taken out, registered for identification ............... 148.1 Baggage not accompanying ............................................... 148.6 Classes—Residents and all others ...................................... 148.2 Coastwise transportation ................................................... 4.80a Contiguous country, from— ............................................... 123.1-123.5 Definition ........................................................................... 4.50
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Subject Index
PASSENGERS—Continued Fees, passengers aboard vessels or aircraft ....................... 24.22(g) Personal or household effects not accompanying .............. 148.51-148.53 Report of arrival ................................................................ 123.1 Request for reexamination of baggage ............................... 148.25
PASSENGERS AND BAGGAGE, LIST OF ............................... 4.7 PASSENGERS’ DECLARATIONS—OMITTED ARTICLES—
PENALTY ............................................................................. 148.18 PASSES, CUTTER AND DOCK ................................................ 4.1 PATENTS
Fee ..................................................................................... 24.12(a) ATNA RICE ........................................................................ 10.132
PAY.GOV ................................................................................. 24.24 PAYMENTS OF STATE AND FEDERAL FEES ...................... 4.61 PAYMENTS DUE DECEASED OR INCOMPETENT PUBLIC
CONTRACTORS AND IMPORTERS OR OWNERS OF MER- CHANDISE ............................................................................ 24.70
PENALTIES Air cabotage ....................................................................... 122.165
Cargo manifest discrepencies ....................................... 122.162 Commerce .................................................................... Part 122, subpart
Q Aircraft, remission or mitigation of .................................. 171.11 Arrival, departure, discharge, and ..................................... 122.166 Articles, various—Import and export controls .................. 161.2(b) Aviation smuggling ........................................................... 122.167 Baggage and vehicles from contiguous country, failure to
open ................................................................................ 123.63 Baggage declaration, false statement, etc., as to .............. 148.19 Baggage, failure to declare articles in ............................... 148.18 Boarding or leaving vessels without permission—Penalty 4.1 Cancellation of ................................................................... 133.51 Clerical errors .................................................................... 162.73 Compromise of claims ........................................................ 161.5 Contiguous countries, vehicles and vessels from, failure
to report .......................................................................... 123.2 Controlled imports and exports ......................................... 161.2, 162.61 Copyrighted articles .......................................................... 133.41(b), 133.52(b) Crews’ effects—Failure to declare ..................................... 148.67 Definitions ......................................................................... 162.71 Demand for payment of, smuggled articles of small value 162.31(c) Determination of, measured by value ................................ 162.43 Exportation from different port ......................................... 122.164 Fishing vessels, touching and trading foreign ................... 4.15, 4 N 28 Fraud ................................................................................. 162.73 Gold and silver articles, false marking of .......................... 11.13 Gross negligence ................................................................ 162.73 Guidelines
19 U.S.C. 1497 ................................................................ Part 171, Appendix A
19 U.S.C. 1592 ................................................................ Part 171, Appendix B
19 U.S.C. 1641 ................................................................ Part 171, Appendix C
Mitigation, availability of ........................................... 171.23 Holding and proceeding against vessel or vehicle for pay-
ment of ............................................................................ 162.22 Importations contrary to law ............................................ 162.21, 162.22, 145.4,
162.63, 123.81
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19 CFR Ch. I (4–1–12 Edition)
PENALTIES—Continued Liquor, Customs marking and stamping bulk ................... 11.6 Locomotives and railway equipment, foreign—irregular
use ................................................................................... 123.12(c) Mail, unlabeled, dutiable goods in sealed .......................... 145.4 Manifest—Discrepancies in ................................................ 4.12 Marihuana—Unmanifested-Unladen without permit ......... 162.65, 162.66 Maritime Administration vessels, exemption from ........... 162.22(e) Marking of gold or silver articles, false ............................. 11.13 Marking of liquor packages ............................................... 12.38 Master of vessel or vehicle—
Failure to— Report arrival from contiguous countries ............. 123.1, 123.2
Merchandise arriving under bond, failure to deliver ......... 18.8 Merchandise in buildings on boundary line ....................... 123.81 Mitigation of—Petition ..................................................... 162.31, 171.11 NAFTA transactions .......................................................... Part 181, subpart
H Narcotics and certain other drugs—
Unmanifested—Unladen without permit ..................... 162.65, 162.66 Narcotics, marihuana, and certain other drugs—Importa-
tion and exportation of ................................................... 12.36, 162.63 Negligence .......................................................................... 162.73 Nonpayment of—Claim to be referred to U.S. attorney ..... 162.32 Notice of, to offender, and prepenalty notice .................... 162.31, 162.76-
162.79(a) Obscene matter, etc., importation of ................................. 12.40, 12.41 Offsetting (netting) ............................................................ 163.11(d) Oil or refuse discharged from vessel into navigable wa-
ters .................................................................................. 4.66a, 4.66b Oral presentations seeking relief ....................................... 171.3 Passenger—
Failure to declare ........................................................ 148.18 Personal—
Detention of vessel or vehicle as security ................... 162.22(d) Persons assisting or financing unlawful importation
or transportation of merchandise ............................. 162.22(b) Smuggling activities, etc. ............................................ 162.22
Petition for relief from ...................................................... 171.11, 171.12 Pre-Columbian artifacts .................................................... 12.109 Prepenalty notice .............................................................. 162.76-162.79(a) Prior disclosure .................................................................. 162.74
Use of sampling methods ............................................. 162.74(j) Railway equipment and supplies ........................................ 123.12(c) Recovery of actual loss of duties, taxes and fees or actual
loss of revenue ................................................................ 162.79b Remission or mitigation of fines, penalties, and forfeit-
ures ................................................................................. 148.18(b), 162.32, 171.11
Remission or mitigation of—Petitions .............................. 171.11 Seals, breaking of bond ...................................................... 18.4 Section 593A, Tariff Act of 1930 .......................................... 162.73a Switchblade knives ............................................................ 12.97, 12.101, 12.103 Trademarked articles ........................................................ 133.21, 133.52(a) Transit air cargo ................................................................ 122.163 Transportation in bond—Shortage or irregular delivery ... 18.8 Unlading prior to report or entry ...................................... 4.6 Unmanifested merchandise of vessel crew ......................... 4.7a(b)(4)
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1009
Subject Index
PENALTIES—Continued Vessels—
Departure of, before report or entry ............................ 4.6 Discharging oil or refuse matter in navigable waters .. 4.66a, 4.66b Failure to make report of arrival or entry .................. 123.2 Maritime Administration, exemption from ................. 162.22(e) Violation of coastwise laws ......................................... 4.80(b)
Wild animals and birds, unlawful importation .................. 12.27, 12.28 PERFUMERY, STAMPING ...................................................... 11.1 PERISHABLE MERCHANDISE
Condensed—Allowance in duty .......................................... 158.14(b) Inspection before entry or while in transit ........................ 151.4, 151.5 Sale of seized ...................................................................... 162.48-162.51 Sale of unclaimed .............................................................. Part 127, subpart
C Unclaimed, transfer to bonded cold-storage warehouse ..... 127.28(c) Warehousing of, prohibited ................................................ 144.1
PERMISSION TO DEPART TO NONCONTIGUOUS TERRI- TORY, WHEN REQUIRED FOR VESSELS OF U.S. .............. 4.84
PERMITS Agency of U.S. Government ............................................... 142.21(c) Application for, form ......................................................... 142.22 Articles of a trade fair ....................................................... 142.21(d) Blending or rectifying wines or liquors ............................. 12.37 Bottling liquors ................................................................. 12.37 Customs brokers ................................................................ 111.19 Delinquent payment .......................................................... 142.26 Discontinuance of immediate delivery .............................. 142.25 Failure to file timely ......................................................... 142.27 Fresh fruits and vegetables ................................................ 142.21(b) Immediate delivery, special permit ................................... 142.21-142.28 Lading or unlading vehicle and vessel of less than 5 net
tons from contiguous country ........................................ 123.8 Liquor, when required ........................................................ 12.37 Merchandise eligible for ..................................................... 142.21 Merchandise from Canada and Mexico (including fresh
fruits and vegetables) ..................................................... 142.21(b) Milk and cream importations ............................................ 12.7 Plant and plant product importations ............................... 12.11-12.13 Prohibited merchandise ..................................................... 142.28 Quota-class merchandise ................................................... 142.21(e) Release of cargo ................................................................. 4.38 Rewarehouse, issuance of—form ........................................ 144.34 Softwood lumber from Canada export permits .................. 12.140 Supplies for vessels withdrawn from warehouse, delivery
permit ............................................................................. 10.61 Term special permit ........................................................... 142.24 Time for filing ................................................................... 142.23 Trucks, buses, and taxicabs—international traffic ............ 123.14(d) Unlading of crews effects ................................................... 4.30, 4.39 Vehicles and vessels from contiguous country .................. 123.2 Vessel permit to unlade or lade—form ............................... 4.30, 123.8 Viruses, serums, and toxins for treatment of domestic
animals ........................................................................... 12.17 Warehouse entry, issuance of ............................................. 144.11, 144.38,
144.21 Warehouse withdrawals for consumption, disposition of,
by warehouse officer ....................................................... 144.38
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19 CFR Ch. I (4–1–12 Edition)
PERSONAL AND HOUSEHOLD EFFECTS OF CERTAIN CLASSES OF PERSONS IN THE SERVICE OF THE U.S., OF THEIR FAMILIES, AND OF EVACUEES, FREE ENTRY OF ......................................................................................... 148.71
PERSONAL DUTY EXEMPTION ............................................. 148.31-38 PERSONAL EFFECTS
Baggage .............................................................................. Part 148, subpart C
Citizens dying abroad ........................................................ 148.54 Noncommercial importations of limited value .................. Part 148, subpart
J Reliquidation of entry ....................................................... 173.5
PERSONAL OR HOUSEHOLD EFFECTS—PROTEST UNNEC- ESSARY FOR RELIQUIDATION .......................................... 173.5
PERSONNEL AND MEDICAL FILES—DISCLOSURE OF IN- FORMATION ......................................................................... 103.12(f)
PERSONS AUTHORIZED TO RECEIVE CUSTOMS COLLEC- TIONS ................................................................................... 24.2
PERSONS RETURNING FROM ABROAD—PROFESSIONAL BOOKS—TOOLS OF TRADE ................................................. 148.53
PERSONS, SEARCH AND EXAMINATION OF ........................ 162.6 PERU TRADE PROMOTION ACT (PTPA) (See, FREE TRADE
AGREEMENTS) PESTICIDES AND DEVICES ................................................... 12.110-12.117 PETITIONS
Authority of Customs officers to act ................................. 171.11-171.13, 172.11-172.13
Disposition of ..................................................................... Part 171, subpart C, Part 172, subpart C
Generally ........................................................................... Part 171, subpart A, Part 172, subpart A
Headquarters advice .......................................................... 171.14, 172.14 Limitation on consideration of petitions .......................... 171.13 Offers to compromise ......................................................... Part 171, subpart
D, Part 172, subpart D
Relief from fines, penalties, or forfeitures ......................... 162.31, 171.11, 171.21, 171.24
Relief from liquidated damages ......................................... Part 172, subpart B
Restoration of proceeds ..................................................... Part 171, subpart E
Waivers of statutes of limitation ....................................... 171.64, 172.43 PETROLEUM AND PETROLEUM PRODUCTS ....................... Part 146, subpart
H Allowance for excessive water and sediment ..................... 151.46, 158.13 Controls on lading and gauging ......................................... 151.42 Information on entry summary ......................................... 151.41 Released under entry or immediate delivery ..................... 151.47 Storage tanks .................................................................... 151.44 Storage tanks bonded as warehouses ................................. 151.45
PETROLEUM, CRUDE, CANADIAN ........................................ 10.179 PIRATICAL Articles ................................................................ 133.42 PLANT PESTS ........................................................................ 12.31 PLANTS AND PLANT PRODUCTS
Entry procedure ................................................................. 12.10-12.15
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1011
Subject Index
PLANTS AND PLANT PRODUCTS—Continued Mail importations .............................................................. 12.10-12.15, 145.40,
145.57 Unclaimed shipments, disposition of ................................. 12.13
PLUMAGE Artificial flies for fishing ................................................... 12.29 Domesticated and wild birds .............................................. 12.29 Game birds ......................................................................... 10.76, 12.29
PLUMAGE AND EGGS OF WILD BIRDS, IMPORTATION— RESTRICTIONS .................................................................... 12.29
POLLUTION OF COASTAL AND NAVIGABLE WATERS ....... 4.66a, 4.66b, 4.66c PORT MARKS
Merchandise to be exported ............................................... 18.27 Merchandise withdrawn from warehouse for exportation .. 144.37(d)
PORT OF DESTINATION, CHANGE OF, EMERGENCY .......... 4.33 PORTS OF ENTRY
By districts ........................................................................ 101.3(b) Customs stations ............................................................... 101.4 Definition ........................................................................... 101.1 Merchandise subject to sale at, to be reported to head-
quarters for disposition .................................................. 127.22 Shortage reports under transportation entries .................. 18.6
PORTS OR PLACES, CLOSED ................................................ 4.61, 4.67 PORT ENTRY .......................................................................... 4.12, 4.62 POSTAGE STAMPS, ILLUSTRATIONS OF ............................ 12.48 POTATOES, SEED—REDUCED RATE OF DUTY .................... 10.57 POWERS OF ATTORNEY
Corporate surety ................................................................ 113.37 General, definitions and form of ........................................ 141.31-141.32,191.6 Importer security filing ..................................................... 149.5 Protests ............................................................................. 174.3
PRACTICE, ESTABLISHED AND UNIFORM .......................... 177.10(c) PRATIQUE ............................................................................... 4.9, 4.61, 4.70 PRE-COLUMBIAN SCULPTURE ............................................. 12.106-12.109 PRECLEARANCE OF AIR TRAVELERS’ BAGGAGE ............. 148.22 PREFERENTIAL TARIFF TREATMENT
Andean Trade Preference Act (ATPA) ............................... Part 10, subpart C Haitian Hemisphere Opportunity Through Partnership
Encouragement Act of 2006 and 2008 (‘‘Haiti HOPE I and II’’) .................................................................................. Part 10, subpart 0
U.S.–Caribbean Basin Trade Partnership Act (CBTPA) ..... Part 10, subpart E PREFERENTIAL TREATMENT
AGOA ................................................................................. 10.213, 10.215, 10.217
ATPA ................................................................................. 10.201 CAFTA–DR ........................................................................ 10.583 CBERA ............................................................................... 10.191, 10.195 CBTPA ............................................................................... 10.223, 10.225,
10.227 PRELIMINARY ENTRY OF VESSELS—CERTIFICATION—
FORM .................................................................................... 4.8 PRESS, INFORMATION .......................................................... 10.31, 103.31 PRESUMPTIONS
ATPA ................................................................................. 10.206 CBI ..................................................................................... 10.195 GSP .................................................................................... 10.176
PRICE PAID OR PAYABLE—VALUATION-DEFINED, TRADE AGREEMENTS ACT OF 1979 ................................... 152.102(f)
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19 CFR Ch. I (4–1–12 Edition)
PRIOR DISCLOSURE, PENALTIES ........................................ 162.74 PRIVILEGES
Container station; revocation ............................................ 19.48 FTZ; revocation ................................................................. 146.83
PROCEEDINGS, FOREIGN; DISCLOSURE OF ........................ Part 103, subpart B
PROCEEDS OF SALE Abandoned merchandise, disposition of ............................. 158.44 Seized property—Disposition, expenses ............................. 162.51 Petition for restoration of ................................................. 171.41-171.44 Surplus, claim for .............................................................. 127.36 Unclaimed merchandise ..................................................... 127.31-127.37 Warehouse merchandise ..................................................... 127.32, 127.37 When insufficient to pay duty ........................................... 127.32
PROCESSING, FURTHER-VALUATION Deductive value ................................................................. 152.105(i)
PROFESSIONAL ARTISTS, LECTURERS, AND SCI- ENTISTS, ARTICLES BROUGHT IN UNDER TEMPORARY IMPORTATION BOND BY .................................................... 10.31
PROFESSIONAL EQUIPMENT OF NONRESIDENTS SO- JOURNING TEMPORARILY—TEMPORARY IMPORTA- TION BOND ........................................................................... 10.31, 10.36
PROFIT AND GENERAL EXPENSES—VALUATION Computed value ................................................................. 152.106(c) Deductive value ................................................................. 152.105(e)
PROGRAM; AIR CARRIER SMUGGLING PREVENTION ....... Part 122, subpart R
PROGRAMS CES .................................................................................... Part 118 Customs ............................................................................. Part 122, subpart
R, , Part 142, subpart D, 163.12, Part 191, subpart S
Entry of merchandise; line release .................................... Part 142, subpart D
Gaugers .............................................................................. 151.13 Immediate delivery ............................................................ Part 142, subpart
C Industry Partnership ......................................................... Part 142, subpart
D Laboratories ...................................................................... 151.12 Line release ........................................................................ Part 142, subpart
D Test procedures .................................................................. 101.9 Testing of merchandise; accredited ................................... 151.12 Testing of merchandise; approved ...................................... 151.13
PROHIBITED OR RESTRICTED IMPORTATIONS Abortions, articles for causing .......................................... 12.40, 145.51 Agricultural and vegetable seeds ....................................... 12.16 Alcoholic beverages ........................................................... 12.37, 145.54 Animals, domestic, animal by-products, etc. ..................... 12.24 Arms and munitions .......................................................... 145.53, 161.2 Articles with false designation of origin ........................... 11.13(a) Birds, wild .......................................................................... 10.76, 12.26-12.28 Caustic or corrosive substances ......................................... 12.1-12.5 Conception, articles for preventing ................................... 12.40, 145.51 Controlled substances ........................................................ 161.2, Part 162,
subpart F
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PROHIBITED OR RESTRICTED IMPORTATIONS—Continued Convict, forced, or indentured labor, goods made by ......... 12.42-12.45 Copyrights ......................................................................... 133.41 Counterfeit coins, etc. ....................................................... 12.48 Cream ................................................................................. 12.7 Destruction of .................................................................... 158.41 Diversion of, under transportation entry .......................... 18.5(e) Drugs ................................................................................. 12.1-12.5 Eggs of wild birds ............................................................... 12.29 Exportation of .................................................................... 18.25-18.26 Films .................................................................................. 12.41 Foods ................................................................................. 12.1-12.5 Foreign trade zones ............................................................ 146.1 Fungicides .......................................................................... 12.1-12.5 Immoral articles ................................................................ 12.40, 145.51 Insect pests ........................................................................ 12.31 Insecticides ........................................................................ 12.1-12.5 In transit through U.S. to foreign countries ...................... 18.21-18.23 Jadeite, mined or extracted from Burma ........................... 12.151 Jewelry, articles of, containing jadeite or rubies mined or
extracted from Burma .................................................... 12.151 Liquors ............................................................................... 12.37, 145.54 Literature, seditious, treasonable, etc. ............................. 12.40, 145.51 Lottery matter .................................................................. 145.51(b) Mail, arriving via ............................................................... 145.51-145.59 Marihuana .......................................................................... 161.2, Part 162,
subpart F Matches .............................................................................. 12.34 Meat and meat-food products ............................................ 12.8-12.9 Milk ................................................................................... 12.7 Motor vehicles and engines—Clear Air Act—Emission
standards ........................................................................ 12.73 Motor vehicles and equipment—Safety standards ............. 12.80 Munitions of war ................................................................ 145.53, 161.2 Narcotics and certain other drugs ..................................... 12.36, 161.2, Part
162, subpart F Obscene matter .................................................................. 12.40, 12.41 Packages containing obscene or immoral matter ............. 145.51 Parrots ............................................................................... 12.26 Pesticides and devices ........................................................ 12.110-12.117 Piratical copies .................................................................. 133.42 Plants and plant products .................................................. 12.10-12.15 Plumage of wild birds ........................................................ 12.29 Postage stamps, facsimiles of uncanceled ......................... 12.48 Pre-Columbian artifacts .................................................... 12.105-12.109 Rubies, mined or extracted from Burma ............................ 12.151 Securities and illustrations thereof, etc. ........................... 12.48 Serums ............................................................................... 12.17-12.23 Skins, fur-seal or sea-otter ................................................ 12.60 Stamps, postage ................................................................. 12.48 Switchblade knives ............................................................ 12.95-12.103 Tea ..................................................................................... 12.33 Toxins ................................................................................ 12.17-12.23 Trademarks or trade names ............................................... 133.21 Treasonable or insurrectionary matter—Forcible resist-
ance to law—Threats to persons ..................................... 12.40, 145.51 Unfair competitions, articles involved in .......................... 12.39
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PROHIBITED OR RESTRICTED IMPORTATIONS—Continued Value .................................................................................. 162.43 Viruses ............................................................................... 12.17-12.23 Whales ................................................................................ 12.30 Wild animals ...................................................................... 10.76, 12.26-12.28
PROPERTY Forfeited
Destruction of .............................................................. 162.46(d), 162.50(c) Disposition of proceeds of sale
Not under 19 U.S.C. 1592 ......................................... 162.51 Under 19 U.S.C. 1592 ............................................... 162.52
Liens, payment of, when property awarded for official use ............................................................................. 171.44
State laws prohibiting sale of ...................................... 162.46(c)(2), 162.50 Transfer to other port for sale ..................................... 162.46(c)(2), 162.50
Forfeiture and sale of ........................................................ 162.45-162.48 Petitions for remission or mitigation of forfeiture ........... 148.18(b), 162.32,
171.11, 171.22 Privately owned, damage to or loss of, caused by Customs
officer .............................................................................. 24.71 Release of, on payment of appraised value ........................ 162.44 Reports to U.S. attorney—When required .......................... 162.32(c), 162.47(d),
162.49 Search and seizure ............................................................. Part 162, subparts
A-C Seized—
Appraisement of ........................................................... 162.43 Award or sale of ........................................................... 162.46 Claim and bond to stop summary forfeiture ................ 162.47, 162.47(b),
162.49(b) Disposition ................................................................... 162.46-162.52
PROSPECTIVE IMPORTS, CLASSIFICATION OF .................. 177.1 PROTESTS
Accelerated disposition of .................................................. 174.22 Amendment of .................................................................... 174.14 Appeals from court decision .............................................. 176.31 Applicability of provisions ................................................. 174.2 Application for further review ........................................... 174.25 Consideration of additional arguments ............................. 174.28 Contents of ......................................................................... 174.13 Criteria for further review ................................................. 174.24 Domestic interested party(ies) .......................................... Part 175, subparts
B and C Form of .............................................................................. 174.12 Further review of ............................................................... 174.23 General requirements ........................................................ Part 174, subpart
B Household or personal effects—Formal protest unneces-
sary for reliquidation ...................................................... 173.5 Mail entries ........................................................................ 145.22, 145.23 Matters subject to protests ................................................ 174.11 Notice or denial of ............................................................. 174.30 Power of attorney .............................................................. 174.3 Publication of protest review decision .............................. 174.32 Refund of duties on reliquidation ...................................... 24.36, 174.29, 176.31 Review of, by port director ................................................ 174.21, 174.26,
174.29
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Subject Index
PROTESTS—Continued Review of further protests, by whom ................................. 174.26 Rewarehouse entries .......................................................... 144.41(h) Samples, when required for protest purposes .................... 176.11 Stipulations ....................................................................... 176.21 Time for filing ................................................................... 174.12(e) Transmission to court ........................................................ 176.11
PROTOTYPES USED EXCLUSIVELY FOR PRODUCT DE- VELOPMENT AND TESTING ............................................... 10.91
PUBLICATION— Customs Bulletin Federal Register ................................................................ 103.3
PUBLIC INTERNATIONAL ORGANIZATIONS ....................... 148.87, 148.88 PUBLIC READING ROOMS ..................................................... 103.1 PUERTO RICO
Coffee, foreign-grown shipped from U.S.—Entry of ........... 7.1(c) Distilled spirits and wines from warehouse, shipped to—
Dutiable .......................................................................... 7.1 Shipments to—Drawback of internal-revenue tax ............. 191.101
PURCHASER, DEFINITION (SPECIAL MARKING) ................ 11.9 PUREBRED ANIMALS, ENTRY OF ........................................ 10.70, 10.71
Q QUARANTINE, ANIMALS, DOMESTIC ................................... 12.24 QUOTA; EXPORT CERTIFICATE
Beef .................................................................................... 132.15 Lamb meat ......................................................................... 132.16 Sugar-containing ............................................................... 132.17
QUOTAS Absolute quota defined ...................................................... 132.1(a) Administration .................................................................. 132.2 Definitions ......................................................................... 132.1 Effect of release under immediate delivery ....................... 132.14(a)(2) Entry of quota merchandise—
Acceptance of entry ..................................................... 132.3 As establishing priority ............................................... 132.11-132.14 Informal ....................................................................... 132.11(c) Mail importation ......................................................... Part 132, subpart
C Noting of time of filing on the entry, when ................. 132.13
Exception to reduced rates ................................................ 132.6 Excess merchandise ........................................................... 132.5 Export certificates ............................................................. 132.15-132.17 Immediate delivery permits .............................................. 132.14 Inadvertent release ............................................................ 132.14 Notification of restrictions, mail entries .......................... 132.23(a) Official office hours ........................................................... 132.3 Presentation—definition .................................................... 132.1(d) Priority and status ............................................................ 132.11 Tariff-rate quota defined ................................................... 132.1(b) Time of presentation ......................................................... 132.11(a)
R RAILROAD—
Car fees .............................................................................. 24.22(d) Equipment
Domestic, repaired in foreign country, dutiable sta- tus ............................................................................. 123.13
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RAILROAD——Continued Equipment—Continued
Foreign, operating in U.S.—Entry of, when required .. 123.12 Supplies ............................................................................. 123.11
RAPESEED OIL ....................................................................... 10.56 RATES OF DUTY, INVOICE TO SHOW ................................... 141.90 RECEIPTS
Bills and accounts, for ....................................................... 24.3 Duties on baggage declarations—Forms ............................ 148.27 Seizures, for ....................................................................... 162.15
RECEIVER, ENTRY BY ........................................................... 141.14 RECORDKEEPING ................................................................... Part 163
AGOA ................................................................................. 10.216 CBTPA ............................................................................... 10.226, 10.236 Requirements, warehouse .................................................. 19.12, Part 163 Softwood Lumber ............................................................... Part 163 Interim
(a)(1)(A) List RECORDS
Actual use .......................................................................... 10.137 Copies of, importers may make ......................................... 103.7-103.11 Classified ............................................................................ 103.5(b)(3) Confidential or privilege .................................................... 103.11(g), 103.31(d),
111.24, 143.4, 174.15, 177.2, 177.8, 177.13, 181.93, 181.99, 181.121, 181.122
Definition ........................................................................... 163.1 Entry and clearance of vessels ........................................... 4.95 Laboratory analysis ........................................................... 151.12 Persons required to maintain ............................................ 163.2 Retention ........................................................................... 143.37
RECORDS AND FILES, DISCLOSURE OF INFORMATION FROM .................................................................................... Part 103, subpart
A REDELIVERY OF MERCHANDISE (See, RETURN TO CUS-
TOMS CUSTODY) RE-EXAMINATION OF PERSONS, BAGGAGE OR MER-
CHANDISE ............................................................................ 148.25 REFUNDS
Abandoned or destroyed merchandise ................................ 158.41 Cash deposit on temporary importation bond ................... 10.40 Duties, to whom payable ................................................... 24.36 Internal-revenue tax .......................................................... 24.36
REFUSE MATTER, DISCHARGED FROM VESSEL IN NAVI- GABLE WATERS—PENALTY .............................................. 4.66a, 4.66b
REGALIA ................................................................................. 10.43 REGISTER OF VESSELS
Deposit of upon entry ........................................................ 4.9 REGISTRATION OF ARTICLES
Exported for alterations or repairs .................................... 10.8 Of foreign origin being taken out of the U.S. .................... 148.1
REIMBURSABLE COMPENSATION ........................................ 4.35, 19.7, 24.16, 24.17, 101.4, 134.52(e), 134.55, 141.86(f), 151.5(c), 151.7(c)
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REIMPORTATION OF MERCHANDISE, DUTIABLE STA- TUS—EXCEPTIONS ............................................................. 141.2
RELATED PERSONS—VALUATION-DEFINED, TRADE AGREEMENTS ACT OF 1979 ................................................. 152.102(g)
RELEASE OF MERCHANDISE Foods, drugs, devices, cosmetics, insecticides, etc. ........... 12.3, 141.113 From warehouse ................................................................. 144.38(e) Immediate delivery, special permit for .............................. Part 142, subpart
C Immediate delivery for U.S. Government .......................... 10.100-10.104 Liens, existence of ............................................................. 141.112 Meat and meat-food products—Restriction ....................... 12.8, 12.9 Permits, when issued for release of cargo .......................... 4.38 Release order from carrier, form ....................................... 141.111 Release order from warehouse proprietor—Form .............. 141.111 Seized—
Payment of appraised value ......................................... 162.44 Under bond—Petition to court ..................................... 162.47, 162.49
Warehouse entry permits, issuance of—Form .................... 144.38(e) RELIEF AND RESCUE EQUIPMENT AND SUPPLIES FOR
EMERGENT TEMPORARY USE ........................................... 10.107 RELIGIOUS PURPOSES, ARTICLES FOR .............................. 10.43, 10.52 RELIQUIDATION
Change in rate of duty ....................................................... 177.10 Change of practice ............................................................. 177.10(c) Clerical error, mistake of fact, inadvertence ..................... 173.4 Excessive duties or taxes paid, notice of refund of—Form 24.36 Limitation upon ................................................................. 173.4(c) Mail entries ........................................................................ Part 145, subpart
C Notice of ............................................................................ 173.3(b) Protest ............................................................................... 173.2(d) Refund of duty ................................................................... 24.36(a)(1)(ii),
176.31 Rewarehouse—District of liquidation ................................ 159.7(b) Under decisions of U.S. Court of International Trade and
Court of Appeals for the Federal Circuit ........................ Part 176, subpart D
Voluntary .......................................................................... 173.3 REMISSION OR MITIGATION OF FINES, PENALTIES AND
FORFEITURES ..................................................................... 148.18(b), 162.32, 171.1, 171.11, 172.2
REMOTE LOCATION FILING .................................................. Part 143, subpart E
REPACKING BY IMPORTER, MERCHANDISE IN WARE- HOUSE .................................................................................. 19.8
REPAIRS Antiquities ......................................................................... 10.53(d) Articles exported for .......................................................... 10.8 Automobiles, vehicles, aircraft, boats, teams and saddle
horses, noncommercial, taken abroad ............................ 148.31(a), 148.32(c) Busses, trucks, taxicabs, and their equipment taken
abroad for temporary use ................................................ 123.17 Dutiable status of merchandise repaired abroad ............... 10.8 Personal and household effects taken abroad by returning
resident ........................................................................... 148.31(b) Railway, made in foreign country, dutiable status ........... 123.12, 123.13
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REPAIRS—Continued Railway, made in foreign country, report—
Penalty ........................................................................ 123.12(c), 123.13 Vehicles, pleasure boats, and aircraft ................................ 10.36a Vessels, made abroad ......................................................... 4.14
REPLACEMENTS FOR ARTICLES DECLARED BY RE- TURNING RESIDENTS ........................................................ 148.37
REPORT OF ARRIVAL Aircraft, penalties ............................................................. 122.166 Coastwise trade .................................................................. 4.81 Contiguous country, from .................................................. 123.1, 123.2 Method of reporting ........................................................... 123.1(d) Of individuals ..................................................................... 4.51, 123.1(a) Of vehicles .......................................................................... 123.1(b) Of vessels ........................................................................... 4.2 Panama Canal .................................................................... 4.4 Penalties for failure to report ............................................ 4.3a, 4.52, 123.2 Vessels, failure to make—Penalty ..................................... 4.3a, 123.2
REPORTS; LABORATORY ANALYSIS ................................... 151.12 REPORTS TO U.S. ATTORNEY, WHEN REQUIRED ............... 12.103, 162.32(c),
162.47(d), 162.65(d), 172.3
REPRODUCTION OF FORMS .................................................. 4.99, 122.5 REQUESTS FOR CUSTOMS RECORDS AND DOCUMENTS,
PROCEDURE ........................................................................ 103.2-103.5 RESCUE AND RELIEF EQUIPMENT AND SUPPLIES FOR
EMERGENT TEMPORARY USE ........................................... 10.107 RESIDENTS
Definition ........................................................................... 148.2 Exemption allowed returning ............................................ Part 148, subpart
D, 148.52 Failure to declare .............................................................. 148.18 False or fraudulent claim on returning ............................. 148.19
RESIDUE CARGO .................................................................... 4.85, 4.86, 4.88, 4.90 RESTRAINT OF TRADE, ARTICLES IMPORTED UNDER
AGREEMENTS IN—SPECIAL DUTIES ................................ 159.44 RESTRICTED IMPORTATIONS (See, PROHIBITED OR RE-
STRICTED IMPORTATIONS) RESTRICTED INFORMATION
Advanced electronic information, Importer security filing for vessel cargo ............................................................... 103.31a
Fines, Penalties ................................................................. 103.32 Foreign agencies ................................................................ 103.33 Sanctions ........................................................................... 103.32-103.34
RESTRICTED MERCHANDISE, IMMEDIATE TRANSPOR- TATION ................................................................................ 18.11
RETENTION OF VESSEL OR VEHICLE ................................. 162.22(d) RETIREMENT DEDUCTIONS, DECEASED EMPLOYEES—
PROCEDURE OF REFUND ................................................... 24.32 RETURN TO CUSTOMS CUSTODY—DEFAULT ON BOND—
LIQUIDATED DAMAGES ..................................................... 141.113, 151.11, 172.21, 172.22, 172.33
RETURN TO UNITED STATES OF ARTICLES Exported for exhibition ...................................................... 10.66 Exported for scientific or educational purposes ................ 10.67
RETURNING RESIDENTS Crew members .................................................................... 148.63
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Subject Index
RETURNING RESIDENTS—Continued Personal duty exemption ................................................... 148.31-38
REVIEW OF PROTESTS BY COMMISSIONER ....................... 158.30, 174.26 REVIEW OF PROTESTS BY PORT DIRECTOR ...................... 174.21, 174.26,
174.29 REVOCATION
ABI participation ............................................................... 143.7 Access to Customs Security Area ...................................... 122.187 Accredited laboratory ........................................................ 151.12 Air Carrier Smuggling Prevention Program ...................... 122.176 Approved gauger ................................................................ 151.13 CES .................................................................................... Part 118, subpart
C Container stations ............................................................. 19.48 Customs brokers ................................................................ Part 111, subpart
D FTZ grant .......................................................................... 146.83 Identification card ............................................................. 112.48 Recordkeeping Compliance Program ................................. 163.13
REWARDS, INFORMER’S COMPENSATION—CLAIM ............ Part 161, subpart B
REWAREHOUSE AND WITHDRAWAL FOR CONSUMPTION ENTRY .................................................................................. 144.42
REWAREHOUSE ENTRY Bond—Form ....................................................................... 144.41(d) Form and procedure ........................................................... 144.41, 144.42 Liquidation ........................................................................ 159.7, 159.52 Reliquidation change in duty rate ..................................... 159.7(b) Transferee—Right to withdraw .......................................... 144.27
ROAD VEHICLE CERTIFICATION .......................................... Part 115 ROYALTIES—LICENSE FEES
Trade Agreements Act of 1979, Transaction value ............. 152.103(f) RULES OF ORIGIN
Appendix—Textile and apparel manufacturer identifica- tion ................................................................................. 102
Disassembly ....................................................................... 181.132 Entry of textile and apparel products ................................ 102.24 For textile and apparel products of Israel ......................... 102.22 Origin and manufacturer identification ............................ 102.23 Textile or apparel products under the North American
Free Trade agreement ..................................................... 102.25 RULINGS, ADMINISTRATIVE
General Ruling Procedure Change of practice ....................................................... 177.10(c) Completed transactions, not subject to ....................... 177.1(a)(2)(ii) Current (ongoing) transactions .................................... 177.1(a)(2)(i), 177.11 Definitions ................................................................... 177.1(d) Effect ........................................................................... 177.9, 177.10 How to submit request for ........................................... 177.2 Internal advice ............................................................. 177.11 Oral discussions ........................................................... 177.4 Prospective transactions ............................................. 177.1(a)(1) Publication of decisions ............................................... 177.10 Requests for advice by field offices .............................. 177.11 When requests for rulings will not be issued ................ 177.1(a)(1),
177.1(a)(2) Government Procurement; country-of-origin determina-
tions Applicability ................................................................ 177.21
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19 CFR Ch. I (4–1–12 Edition)
RULINGS, ADMINISTRATIVE—Continued Government Procurement; country-of-origin determina-
tions—Continued Definitions ................................................................... 177.22 Country of origin advisory ruling ................................ 177.24
Form and content of request ................................. 177.25 Issuance ................................................................. 177.28 Oral discussion of issues ........................................ 177.27 Where request filed ................................................ 177.26 Who may request ................................................... 177.23
Final Determinations Issuance ................................................................. 177.28 Publication of notice of ......................................... 177.29 Review ................................................................... 177.30
Reexamination ............................................................. 177.31 Request ........................................................................ 177.23
S SAFETY STANDARDS FOR BOATS AND OTHER EQUIP-
MENT .................................................................................... 12.85 SAFETY STANDARDS FOR ELECTRONIC PRODUCTS ........ 12.90, 12.91 SAFETY STANDARDS—MOTOR VEHICLES AND EQUIP-
MENT .................................................................................... 12.80 ST. LAWRENCE RIVER, VESSELS IN COASTWISE TRADE
VIA ........................................................................................ 4.83 SALABLE CUSTOMS FORMS ................................................. 24.14 SALE OF MERCHANDISE
Abandoned in bonded warehouse ........................................ 127.14 Abandoned or unclaimed .................................................... Part 127, subparts
B and C Advertising ........................................................................ 127.25 Articles subject to internal-revenue taxes ........................ 127.28(e)-(g) Auctioneer’s commission ................................................... 127.34 Catalogs ............................................................................. 127.26 Charges, payment .............................................................. 127.31, 127.32 Inspection by Department of Agriculture of seeds, drugs,
etc., prior to .................................................................... 127.28(a) Inspection by Environmental Protection Agency of pes-
ticides and devices .......................................................... 127.28(b) Merchandise previously offered for sale ............................. 127.29 Merchandise remaining unsold .......................................... 127.29 Notice of—Catalogs ............................................................ 127.26 Proceeds, disposition—
Claim for surplus ......................................................... 127.36 Unclaimed goods .......................................................... 127.36(a) Warehouse goods .......................................................... 127.36(b)
Seized goods— Court decree ................................................................. 162.49-162.51 Inspection by other Government agency, when re-
quired ........................................................................ 162.46(b) Perishable or liable to waste or deteriorate in value—
Procedure .................................................................. 162.48, 162.50 Petition for restoration of proceeds ............................. Part 171, subpart
E Proceeds, disposition of—Expenses .............................. 162.51 State laws prohibiting ................................................. 162.46(c)(2), 162.50 Transfer to other district for sale ................................ 162.46(c)(2), 162.50
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Subject Index
SALE OF MERCHANDISE—Continued Storage and other expenses, payment of ............................ 127.31, 127.32 Unclaimed and abandoned goods ........................................ Part 127, subparts
B and C Unclaimed perishable goods ............................................... 127.22, 127.28(c) Unclaimed and remaining on dock .................................... 127.28(h) Withdrawal of goods from sale ........................................... 127.14
SALT FOR CURING FISH ....................................................... 10.80, 10.81, 10.83 SALVAGE VESSELS—RESTRICTIONS .................................. 4.97 SALVORS AND UNDERWRITERS, ENTRY BY ...................... 141.13 SAME CLASS OR KIND OF MERCHANDISE—VALUATION-
DEFINED, TRADE AGREEMENTS ACT OF 1979 ................. 152.102(h) SAMOA, American
Shipments to—Drawback of internal-revenue tax ............. 191.5, 191.81 Unaccompanied shipments from ........................................ Part 148, subpart
K SAMPLES ................................................................................ 181.62
Appraisement on ................................................................ 151.10, 151.11 Carnets ............................................................................... 114.32 Commercial travelers’ baggage .......................................... 10.31, 10.36, 10.68,
10.69 Commercial travelers’ samples
Accompanied through Canada and return .................... 123.51 Accompanied through U.S. and return to Canada ........ 123.52 Temporary importation bond ...................................... 10.36
For reproduction—Temporary importation bond .............. 10.31 For taking orders—Temporary importation bond ............. 10.31 Metal-bearing ores ............................................................. 151.51-151.53 Official samples, transmission to Court ............................ 176.11 Pesticides and devices ........................................................ 12.116 Prior to entry, taking of .................................................... 151.4, 151.5, 151.11 Request for ruling .............................................................. 177.2(b)(3) Sugar ................................................................................. 151.24, 151.27,
151.29 Viruses, serums, and toxins for treatment of domestic
animals and man ............................................................. 12.19, 12.22 Wool and hair ..................................................................... Part 151, subpart
E Wool and hair, for importer ............................................... 151.67
SAMPLING Agricultural and vegetable seeds ....................................... 12.16 Cotton ................................................................................ Part 151, subpart
F Metal-bearing ores and metal-bearing materials ............... 151.51-151.53 Merchandise in warehouse ................................................. 19.17(f), 151.51 Sugars, syrups, and molasses ............................................. Part 151, subpart
B Wool and hair ..................................................................... Part 151, subpart
E SCIENTIFIC OR EDUCATIONAL ARTICLES EXPORTED,
RETURN ............................................................................... 10.67 SCULPTURE AND MODELS FOR EDUCATIONAL PUR-
POSES .................................................................................. 10.43 SCULPTURE, ORIGINAL, FREE ENTRY, EVIDENCE RE-
QUIRED ................................................................................ 10.48 SCULPTURE OR MURAL—PRE-COLUMBIAN MONU-
MENTAL OR ARCHITECTURAL .......................................... 12.106-12.109 SEAL, FUR SKINS .................................................................. 12.60-12.63
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SEALING, MEAT AND MEAT-FOOD PRODUCTS ................... 12.8 SEALS
Bond requirements ............................................................. 113.25 Car, compartment, package
Kinds ............................................................................ 24.13 Car, compartment, and package seals; and fastenings;
standards; acceptance by Customs .................................. 24.13a In bond
Penalty for breaking .................................................... 18.4(h) Removal of ................................................................... 18.3(d) When required .............................................................. 18.4, 18.4a
In transit ........................................................................... 123.21-123.26 On railcars
Numbering and marking of .......................................... 24.13 Of stores ............................................................................. 4.11
SEAMEN, DECLARATION OF ARTICLES UNLADEN BY, WHEN REQUIRED ................................................................ 148.62
SEAMEN’S ACT ....................................................................... 4.61, 4.69 SEARCH AND SEIZURE .......................................................... 162.5-162.7, 162.21,
162.22 SEARCH OF PERSONS, BAGGAGE, AND MERCHANDISE .... 162.6 SEARCH OF BUILDINGS
Dwelling, search rooms ...................................................... 162.13 On boundary line ................................................................ 123.81 Warrants ............................................................................ Part 162, subpart
B Application for ............................................................. 162.11 Requirements ............................................................... Part 162, subpart
B Seizure without ............................................................ 162.21
SEARCHING AND BOARDING OF VESSELS AND VEHI- CLES ..................................................................................... 162.3, 162.5
SEA STORES Excessive ............................................................................ 4.39(d) Manifesting ........................................................................ 4.7, 4.7a Narcotics included in ......................................................... 4.39(e) Retained on board vessel ................................................... 4.7 Sealing and release ............................................................ 4.11 Transfer, landing ............................................................... 4.39 Vessels proceeding foreign via domestic ports ................... 4.87 Vessels with residue cargo for domestic ports ................... 4.85 Wrecked or dismantled vessels .......................................... 4.40
SECURITIES, ETC., CARRIAGE ON VESSELS ...................... 4.61 SEDITIOUS MATTER, PROHIBITED FROM ENTRY ............. 12.40 SEEDS, AGRICULTURAL AND VEGETABLE
Entry procedure ................................................................. 12.16 Prohibited entry, when ...................................................... 12.16 Samples and sampling ....................................................... 12.16
SEIZURE Abandoned merchandise .................................................... 123.81 Addressee of mail articles to be notified of ....................... 145.59(b) Alcoholic beverages, containers not labeled ...................... 12.38 Alcoholic beverages imported in the mails ........................ 145.54(b) Appraisement of ................................................................. 162.43 Articles requiring inspection by other Government agen-
cies, disposition of .......................................................... 162.46(b) Claim for ............................................................................ 162.47 Compromise of claims ........................................................ 161.5
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Subject Index
SEIZURE—Continued Contrary to law .................................................................. 145.4, 162.21, 162.22 Contributions in general average ....................................... 141.112(f) Conveyances importing contrary to law ............................ 162.22 Criminal or civil action—Reports to U.S. attorney ........... 162.32(c), 162.47(d),
162.65(d), 172.2 Destruction of forfeited property, when ............................ 162.46(d), 162.50 Disposition of goods summarily forfeited .......................... 133.42, 162.46 Duties on ............................................................................ 148.18(a) Expenses, payment of ........................................................ 162.51(a) Exporting merchandise contrary to law ............................ 161.2 Forfeiture and sale of ........................................................ 162.45-162.48 Immoral articles, etc. ........................................................ 12.40, 12.41 Liens for freight and other charges ................................... 171.44 Limited under section 592, Tariff Act of 1930, as amended . 162.75 Mail importations contrary to law .................................... Part 145, subpart
E Marihuana .......................................................................... Part 162, subpart
F Merchandise imported contrary to law .............................. 162.21, 162.22 Narcotics and certain other drugs ..................................... Part 162, subpart
F Penalty, demand for payment of, articles of small value .. 162.31(c) Perishable or liable to waste or deteriorate in value—Sale
of ..................................................................................... 162.48, 162.49 Persons other than Customs officers making .................... 162.21(b) Pre-Columbian artifacts .................................................... 12.109 Receipts ............................................................................. 162.15, 162.21(a) Release of
Payment of appraised value ......................................... 162.44 Petitions for ................................................................. 162.31, 171.11,
171.21, 171.52 Release of information—pending seizures and investiga-
tions ................................................................................ 103.12, 103.13 Reports to U.S. attorney, when required ........................... 12.103, 162.32(c),
162.47(d), 162.65(d), 172.2
State officers, by—Adoption of by Customs ...................... 162.21(c) Summary sale .................................................................... 162.45, 162.46,
162.48 Switchblade knives ............................................................ 12.97, 12.101-12.103 Taxes on ............................................................................. 148.18(a) Transfer to other district for sale ...................................... 162.46(c) Vehicles used in or employed to aid in lawful importation
of merchandise ................................................................ 162.22 Warrant, without, when ..................................................... 162.11 Who may make .................................................................. 162.21
SEMEN, HONEYBEE ............................................................... 12.32 SERUMS
For treatment of domestic animals—Entry procedure ...... 12.17-12.20 For treatment of man—Entry procedure ........................... 12.21-12.23
SERVICES Officers, reimbursable ........................................................ 24.17 Overtime, charges for ........................................................ 24.16
SET-OFF CLAIMS ................................................................... 24.72 SETTLEMENT TEST, ORES AND CRUDE METALS—AS-
SAYING AND SAMPLING .................................................... 151.52, 151.54
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19 CFR Ch. I (4–1–12 Edition)
SHIPMENTS ARRIVING ON ONE VESSEL OR VEHICLE, CONSIGNED TO ONE CONSIGNEE—SEPARATE ENTRIES FOR, WHEN .......................................................................... 141.52
SHIPPER’S EXPORT DECLARATIONS Aircraft .............................................................................. 122.76 Bond for, cancellation of—Liquidation damages ............... 113.54, 172.22, Bond for—Form .................................................................. 113.14 Confidential treatment of information .............................. 103.31(d) Filing of ............................................................................. 4.61, 4.63, 4.75, 4.84 Filing of, in event of war ................................................... 4.75(c) Incomplete—Bond .............................................................. 4.75, 4.84 Penalties ............................................................................ 171.21, 171.31 Vessel proceeding foreign via domestic ports .................... 4.87
SHIPPING ARTICLES ............................................................. 4.61, 4.69 SHIPPING COMMISSIONER, EXECUTION OF SHIPPING
ARTICLES BEFORE ............................................................. 4.69 SHIPPING RECEIPT, ENTRY ON ........................................... 141.11 SHIPS’ STORES
Landing of .......................................................................... 4.39 Manifesting ........................................................................ 4.7, 4.7a Retention on board ............................................................ 4.7 Transfer of ......................................................................... 4.39 Vessels proceeding foreign via domestic ports ................... 4.87 Vessels with residue cargo for domestic ports ................... 4.85 Wrecked or dismantled vessels .......................................... 4.40
SHOOKS AND STAVES Certificate of exportation .................................................. 10.5 Certificate of foreign shipper and box matter—Form ........ 10.6 Declaration of importer, when required ............................ 10.6 Definition ........................................................................... 10.5(b) Exported and returned ....................................................... 10.5, 10.6 Notice of intent to export .................................................. 10.5
SHORTAGES Duty allowance .................................................................. 158.3 In packages ........................................................................ 158.5, 158.6 Withdrawal for export from manufacturing warehouse ..... 19.15
SILVER ARTICLES, FALSE MARKING OF—PENALTY ........ 11.13 SIMILAR MERCHANDISE—VALUATION-DEFINED, TRADE
AGREEMENT ACT OF 1979 ................................................... 152.102(i) Transaction value of .......................................................... 152.104
SIMULTANEOUS VESSEL TRANSACTIONS—BOND ............. 4.90 SINGAPORE FREE TRADE AGREEMENT (See, UNITED
STATES-SINGAPORE FREE TRADE AGREEMENT) SINGLE ENTRY FOR SPLIT SHIPMENTS ............................. 141.57 SINGLE ENTRY FOR UNASSEMBLED OR DISASSEMBLED
ENTITIES ............................................................................. 141.58 SINGLE INVOICES .................................................................. 141.61(f) SIRUPS (See, SUGAR, SIRUPS, AND MOLASSES) SKINS—Seal or Sea-Otter ....................................................... 12.60-12.63 SMUGGLING ........................................................................... 122.167, 148.18(a),
162.22, 162.31(b) SMUGGLING, PASSENGERS’ BAGGAGE—PENALTY ........... 148.18 SOFTWOOD LUMBER FROM CANADA .................................. 12.140
Entry code ......................................................................... 12.140 Basic importation and entry bond conditions ................... 113.62(k) Certificate of origin ........................................................... Index to Part 163 Export permit .................................................................... Index to Part 163
SOFTWOOD LUMBER FROM ANY COUNTRY ........................ 12.142
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Subject Index
SOUND RECORDING—RECORDATION COPYRIGHTS ........... 133.32(f) SPECIAL CUSTOMS INVOICE ................................................ 141.83, 141.89 SPECIAL DUTY-FREE TREATMENT FOR SUB-SAHARAN
AFRICAN COUNTRIES ......................................................... 10.178a SPLITTING OF SHIPMENTS
Immediate transportation at port of origin ....................... 18.11 Transportation and exportation entries ............................ 18.24 Withdrawals for transportation and exportation ............... 144.32, 144.36,
144.37 STAINED OR PAINTED GLASS WINDOWS FOR HOUSES OF
WORSHIP .............................................................................. 10.52 STAMPING
Cigarette papers and tubes ................................................ 11.3 Liquors in casks and similar containers ............................ 11.6 Medicinal preparations ...................................................... 11.1 Perfumery .......................................................................... 11.1 Tobacco products, returned domestic ................................ 11.1, 11.2
STAMPS Customs inspection—Cigars, etc., imported in mails ......... 11.1, 145.13 Postage
Illustrations of, prohibited entry—Exceptions ............ 12.48 Revenue, illustrations of, prohibited entry—Exceptions ... 12.48
STANDARDS, OFFICIAL COTTON, FOR LENGTH OF STA- PLE ....................................................................................... Part 151, subpart
F STANDARDS, OFFICIAL, FOR GRADES OF WOOL ............... Part 151, subpart
E STAPLING OF COTTON .......................................................... Part 151, subpart
F STATE INSPECTION AND FEES—CLEARANCE OF VES-
SELS WITHHELD FOR COMPLIANCE ................................. 4.61 STATE LAWS PROHIBITING SALE OF FORFEITED PROP-
ERTY .................................................................................... 162.46(c)(2) STATEMENT PROCESSING ................................................... 24.1, 24.25 STATES AND THEIR INSTRUMENTALITIES NOT EXEMPT
FROM PAYMENT OF DUTY ................................................. 141.1(e) STATIONS, CUSTOMS ............................................................ 101.4 STATUARY
Original—Free entry evidence required ............................. 10.48 Sculptures, patterns, models, etc., imported by institu-
tions ................................................................................ 10.43 STATUTE OF LIMITATIONS .................................................. 171.64, 172.43 STEEL PRODUCTS
Entry or admission of certain steel products .................... 12.145 STIPULATION OF LESSEES OF BONDED WAREHOUSES ... 19.2(b) STIPULATIONS ....................................................................... 176.21 STOCKPILING, STRATEGIC AND CRITICAL MATERIALS
FOR ....................................................................................... 10.100-10.104 STOLEN OR EMBEZZLED MOTOR VEHICLES, ETC.,
TAKEN TO MEXICO AND RETURNED ................................ 123.82 STOPPING VEHICLES OR PERSONS ..................................... 162.5, 162.7 STORAGE CHARGES ON GOODS IN PUBLIC STORES .......... 19.7, 24.12 STORAGE, GOODS IN MANUFACTURING WAREHOUSES .... 19.13 STORAGE OF CARGO—FORM ................................................ 4.12, 4.62 STORE LIST OF VESSEL SUPPLIES WITHDRAWN ............. 10.60 STOREKEEPERS (See, WAREHOUSE OFFICERS, CUS-
TOMS) STORES AND EQUIPMENT OF VESSELS, LANDING OF
Entry, when required ......................................................... 4.39
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19 CFR Ch. I (4–1–12 Edition)
STORES AND EQUIPMENT OF VESSELS, LANDING OF—Con- tinued
Wrecked or dismantled vessels .......................................... 4.40 STORES, SEA AND SHIPS’
Issuing of, while under seal ................................................ 4.11 Permit or special license for unlading or lading—Form .... 4.30 Sealing of, when ................................................................. 4.11
STRATEGIC AND CRITICAL MATERIALS, STOCKPILING .. 10.100-10.104 STRIP STAMPS
Bottles and similar containers .......................................... 11.7 Liquor in passengers’ baggage ........................................... 148.26, 148.27,
148.51, 148.64 When not required .............................................................. 148.26(b)
SUBPOENA FOR CUSTOMS DOCUMENTS ............................. Part 103, subpart B
SUBSTANTIAL TRANSFORMATION ..................................... 10.14(b), 10.16(c), 10.195(a), 10.196, 102.20, 134.1, 134.35
SUBSTITUTION OF FORMS ................................................... 4.99, 122.5 SUGAR, SIRUPS, AND MOLASSES
Allowance for moisture in raw sugar ................................. 151.23 Closets ............................................................................... 151.30 Definitions, degree, sugar degree, total sugars .................. 151.22 Estimated duties on raw sugar refund ............................... 151.22 Expense of unlading, weighing, sampling, etc. .................. 151.29 Facilities for unlading bulk sugar ..................................... 151.24 Molasses, Blackstrap ......................................................... 10.139 Molasses or syrups gauging of, discharged in storage
tanks ............................................................................... 151.28 Molasses or syrups in tank cars, certificate necessary ...... 151.26 Weighing and sampling done at time of unlading .............. 151.27
SUMMONS—Defined ................................................................ 163.1(j), 163.7 SUPERVISION ......................................................................... 111.1, 111.2, 125.2,
146.4 SUPPLEMENTAL PETITION FOR RELIEF FROM LIQ-
UIDATED DAMAGES OR PENALTIES SECURED BY BONDS .................................................................................. Part 172, subpart
E SUPPLEMENTAL PETITION FOR RELIEF FROM UNSE-
CURED PENALTIES OR FORFEITURES ............................. Part 171, subpart G
SUPPLIES Sealing of railway cars ...................................................... 123.11 Vessels, for—Bond .............................................................. 10.60-10.64
SUPPLIES WITHDRAWN FROM BONDED WAREHOUSE FOR
Aircraft and vessels ........................................................... 10.59-10.65 SURETIES, LIABILITY UNDER WAREHOUSE ENTRY
BOND .................................................................................... 144.2 SURETIES ON BONDS ............................................................ Part 113, subpart
D, 141.41 SURETIES ON BONDS—ASSENT TO EXTENSION OF TIME
ON BONDS ............................................................................ 113.44 SURPLUS PROCEEDS FROM SALE—UNCLAIMED MER-
CHANDISE—DISPOSITION OF—CLAIM FOR ...................... 127.36 SWITCHBLADE KNIVES
Definitions ......................................................................... 12.95
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Subject Index
SWITCHBLADE KNIVES—Continued Forfeiture .......................................................................... 12.102 Importations allowed
Common and special purpose knives—utilitarian use . 12.96 Permitted by statute ................................................... 12.98
Importations allowed/prohibited ....................................... 12.97 Notice of seizure ................................................................ 12.101(b) One-armed person .............................................................. 12.98(c), 12.99(a)(3),
12.99(c)(2) Procedures for permitted entry ......................................... 12.99 Report to U.S. attorney ..................................................... 12.103 Seizure of prohibited switchblade knives
Importations in good faith—exportations ................... 12.100 Inadmissible importations ........................................... 12.101(a)
T TABLE OF NAVIGATION FEES TO BE POSTED ................... 4.98 TAPESTRIES, GOBELIN ......................................................... 10.54 TARE
Actual—Invoice—Schedule ................................................ Part 159, subpart B
Excessive moisture and other impurities .......................... 158.13 TAXES ON SEIZED MERCHANDISE ...................................... 148.18(a), 148.19 TAXICABS
Domestic, repaired abroad ................................................. 123.17 Foreign-owned, brought in for hire .................................... 10.41, 123.14, 123.15 Taken abroad for hire, return ............................................ 123.16 Taken abroad for temporary use—Tariff status on return 123.16
TEAS Baggage, in ........................................................................ 148.23(d) Importation procedure ....................................................... 12.33
TEMPORARY IMPORTATION BOND Amount of .......................................................................... 10.31 Application for extension .................................................. 10.37 Cancellation ....................................................................... 10.39 Cash deposit in lieu of surety, refund of ............................ 10.31, 10.40 Entry—
Liquidation .................................................................. 10.31(h) Substitute for another entry ....................................... 10.31
Exportation of articles under—Landing certificate, when required ........................................................................... 10.38, 10.39
Entry—Form and contents ................................................ 10.31 Liquidated damages, when assessed ................................... 10.39 Merchandise destroyed by casualty or during experiment 10.39 Proof of purpose—
Models of women’s wearing apparel ............................. 10.35 Theatrical effects ............................................................... 10.33
TESTING ................................................................................. 115.31, 115.66, 151.54, 151.71,151.73
TEST—VALUES-RELATED PARTY TRANSACTIONS, TRADE AGREEMENTS ACT OF 1979
Test programs .................................................................... 101.9 Transaction value .............................................................. 152.103(l)(2)
TEXTILE AND APPAREL ARTICLES African countries ............................................................... 10.211-10. 217 Caribbean countries ........................................................... 10.221-10.227
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19 CFR Ch. I (4–1–12 Edition)
TEXTILE AND APPAREL GOODS UNDER NAFTA ................ 102.25 TEXTILE FIBER PRODUCTS—LABELING ............................ 11.12b TEXTILE MACHINERY—FOR INSTITUTIONS, CONDI-
TIONALLY FREE ................................................................. 10.43 TEXTILES AND APPAREL PRODUCTS ................................. 102.21-102.25 THEATRICAL EFFECTS, EXPORTED AND RETURNED ....... 10.68 THEATRICAL SCENERY, PROPERTIES, ETC., BROUGHT
IN BY PROPRIETORS OR MANAGERS OF THEATRICAL EXHIBITIONS—TEMPORARY IMPORTATION BOND ......... 10.31, 10.33
THEFT OF MERCHANDISE IN PUBLIC STORES ................... 158.26 THREATS TO TAKE LIFE OR INFLICT BODILY HARM ON
ANY PERSON IN U.S., ANY MATTER ON—PROHIBITED IMPORTATION ..................................................................... 12.40
TIME LIMIT Discharge of cargo ............................................................. 4.36 Entry of merchandise ........................................................ 141.5
TITLE TO UNCLAIMED AND ABANDONED MERCHANDISE VESTING IN GOVERNMENT
Government title to unclaimed and abandoned merchan- dise .................................................................................. 127.41
Disposition of merchandise owned by Government ..... 127.42 Petition of party for surplus proceeds had merchan-
dise been sold ............................................................ 127.43 TOBACCO AND TOBACCO PRODUCTS
Baggage, nonresidents ....................................................... 148.43, 148.44 Baggage, residents ............................................................. 148.33 Cuban leaf tobacco—Examiners ......................................... 151.111 For consumption on vessel or aircraft ............................... 10.65 Mail importations .............................................................. 145.13 Packing and marking requirements .................................. 11.1, 11.2
TONNAGE OF VESSELS, VERIFICATION OF ........................ 4.61, 4.65 TONNAGE TAX
Exemptions ........................................................................ 4.21 Noncitizen officers of vessels ............................................. 4.20 Panama Canal, vessels passing through ............................. 4.20(e) Payment of—Certificate—Form ........................................ 4.23 Rates—Table ...................................................................... 4.20 Refund of ............................................................................ 4.24 Special—Exemptions ......................................................... 4.20, 4.22 Vessels, coastwise, touching at Canadian ports ................. 4.83 Vessels touching at foreign port while in coastwise trade . 4.82 Wrong tonnage on document—How fixed ........................... 4.20 Yachts ................................................................................ 4.21(b)(5)
TONNAGE YEAR—HOW COMPUTED ...................................... 4.20 TOOLS OF TRADE BY NONRESIDENTS SOJOURNING
TEMPORARILY IN U.S.—TEMPORARY IMPORTATION BOND .................................................................................... 10.31, 10.36
TOOLS OF TRADE OF IMMIGRANTS OR PERSONS RE- TURNING FROM ABROAD, ENTRY PROCEDURE .............. 148.53
TOUCH AND TRADE ............................................................... 4.15, 4 N 28 TOWING OPERATIONS ........................................................... 4.92 TOXIC SUBSTANCES CONTROL ACT .................................... 12.118-12.127 TOXINS
For treatment of domestic animals—Entry procedure ...... 12.17-12.20 For treatment of man—Entry procedure ........................... 12.21-12.23
TRADE FAIRS Abandonment ..................................................................... 147.46, 147.47 Articles which may be entered .......................................... 147.2
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Subject Index
TRADE FAIRS—Continued Compliance, provisions of Plant Quarantine Act of 1912,
and Federal Food, Drug and Cosmetic Act ..................... 147.23 Definitions ......................................................................... 147.1 Detail of Customs officers to protect revenue—Expenses .. 147.32 Disposition of articles entered for fairs—Entry or trans-
fer—Destruction—Abandonment, voluntary or manda- tory—
Exportation .................................................................. Part 147, subpart E
Entry—Appraisement—Procedure ..................................... Part 147, subpart B
Invoices—Marking—Bond .................................................. 147.3, 147.12, 147.21, 147.22
Requirements of other laws ............................................... Part 147, subpart C
TRADE PROMOTION ACTS (See, Free Trade Agerements) TRADEMARKS; Recordation .................................................. Part 133, subpart
A TRADEMARKS AND TRADE NAMES ..................................... 133.21-133.24
Importations violating ...................................................... Part 133, subpart C
TRADEMARKS AS SPECIAL MARKING ................................ 11.9 TRADE NAMES; Recordation .................................................. Part 133, subpart
B TRANSACTION VALUE .......................................................... 152.103 TRANSACTION VALUE—IDENTICAL AND SIMILAR MER-
CHANDISE ............................................................................ 152.104 TRANSFER OF CARGO AND PASSENGERS—AMERICAN
VESSELS .............................................................................. 4.91 TRANSFEREES
Liability for duties ............................................................ 144.2 Rewarehouse entry—Procedure ......................................... Part 144, subpart
E Rights and privileges, warehouse merchandise— ............... Part 144, subpart
D Withdrawals by—
For consumption .......................................................... 144.31, 144.38 For exportation ............................................................ 144.31, 144.37
TRANSIT AIR CARGO (See, Aircraft) TRANSIT AIR CARGO MANIFEST (TACM) ............................ Part 122, subpart
L TRANSPORTATION AND EXPORTATION
Baggage— For examination at port of destination ....................... 18.13 For exportation in transit through U.S. ...................... 18.14, 123.31, 123.52
Bond for—Form .................................................................. 113.14 Cargo not sealed allowed to proceed .................................. 18.4 Carriers—Bonds ................................................................. 18.1 Change of destination ........................................................ 18.23 Change of Entry ................................................................. 18.23 Common carrier not available ........................................... 18.20 Diversions at port .............................................................. 18.5 Entries, kinds .................................................................... 18.10 Entry procedure—Form ..................................................... 18.20, 122.92 Examination of merchandise by agents of the Surface
Transportation Board and trunk line associations ......... 18.9 Exit, procedure at port ...................................................... 18.22, 122.92
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19 CFR Ch. I (4–1–12 Edition)
TRANSPORTATION AND EXPORTATION—Continued Foreign manifests .............................................................. 123.32 Forwarding port, procedure at ........................................... 18.20 Immediate transportation without appraisement ............. 18.11, 122.92(b) In transit through U.S. ...................................................... 18.20, Part 123,
subparts C and D
Irregular delivery (shortages) ............................................ 18.6, 18.8 Labeling of packages in lieu of sealing .............................. 18.4, 122.92(f),
122.92(g) Liability of carrier ............................................................. 18.8 Limit of time merchandise may remain in U.S ................. 18.24, 18 N 9 Manifests, disposition ........................................................ 18.2, 18.3, 122.93 Merchandise entered for, when treated as unclaimed ........ 18.2, 18 N 9 Nonbonded goods with bonded ........................................... 18.4 Receipt by bonded common carrier ................................... 18.2 Restricted and prohibited merchandise ............................. 18.21-18.23 Retention of goods on dock ................................................ 18.24 Sealing of conveyances ...................................................... 18.4, 122.92(f) Short shipments ................................................................. 18.6, 18.8 Shortages of irregular deliveries, report of—Penalty ........ 18.6, 18.8 Splitting of shipments ....................................................... 18.24, 122.92(d) Transportation and exportation warehouse withdrawals .. Part 144, subpart
D Warehouse and rewarehouse withdrawals for transpor-
tation .............................................................................. 144.22, 144.36, 159.7 Warehouse withdrawals for exportation ............................ 144.32, 144.37 Warning cards on cars, etc ................................................. 18.4 Withdrawals from smelting and refining warehouse .......... 19.20
TRANSPORTATION OF WILD ANIMALS AND BIRDS—RE- STRICTIONS ......................................................................... 12.27
TRANSPORTATION ORDERS—DEFENSE PRODUCTION ACT OF 1950 .......................................................................... 4.74
TRANSSHIPMENT—BONDED MERCHANDISE ...................... 18.3 TRANSSHIPMENT OF CARGO ................................................ 4.91 TREASONABLE LITERATURE, ETC. ..................................... 12.40 TRUCK SHIPMENTS TRANSITING CANADA ........................ 123.41 TRUCK SHIPMENTS TRANSITING THE U.S. ........................ 123.42 TRUCKS
Brought in for temporary use in international traffic ....... 10.41, 123.14 Domestic, repaired abroad ................................................. 123.17 Fees, commercial trucks .................................................... 24.22(c) Foreign-owned brought in for hire ..................................... 10.41, 123.14, 123.15 Taken abroad for temporary use—Tariff status on return 123.16 Taken abroad under hire and returned .............................. 123.16
TRUNK LINE ASSOCIATIONS—MERCHANDISE SHIPPED IN BOND, EXAMINATION BY .............................................. 18.9
TRUST TERRITORIES ............................................................ 191.5 ‘‘TWENTY-FOUR HOUR’’ RULE (‘‘24-hour’’ rule) ................... 4.7
U UNASSEMBLED ENTITIES .................................................... 141.58 UNCLAIMED AND ABANDONED MERCHANDISE
Allowance in duties ........................................................... Part 158, subpart D
Application to abandon ...................................................... 158.42, 158.43 Appraisement of ................................................................. 127.23
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1031
Subject Index
UNCLAIMED AND ABANDONED MERCHANDISE—Continued Auctioneer’s commission ................................................... 127.34 Cartage .............................................................................. 125.14 Defined ............................................................................... 127.11 Dutiable status after 1 year ............................................... 127.14 Duty deficit collectible from consignee, when ................... 127.37 Entry of, before sale ........................................................... 127.14 Exportation of—Controlled ................................................ 161.2 Immediate transportation entry after 6 months from date
of importation, when permitted ...................................... 127.2 Involuntarily, abandonment of .......................................... 127.12 Plants and plant products .................................................. 12.13 Sale —
General procedure ........................................................ 127.21-127.27 Notice of—Catalogs ...................................................... 127.26 Perishable .................................................................... 127.28(c) Proceeds, claim for surplus .......................................... 127.36 Proceeds, disposition of ............................................... 127.31 Proceeds insufficient ................................................... 127.37 Proceeds, surplus, payable to owner or consignee ....... 127.36 Special items, i.e., drugs, arms, tobacco and alcoholic
beverages .................................................................. 127.28 Storage .............................................................................. 127.13 Time period—abandonment ............................................... 158.43(c)(2) Time period—destruction .................................................. 158.43(d)(2) Transportation and exportation, merchandise entered for,
when treated as ............................................................... 18.20, 18 N 9 Unordered goods not accepted by consignee ...................... 141.1(f) Warehouse entry when not permitted ................................ 127.14 Withdrawal from sale ......................................................... 127.14(b)
UNCLAIMED FOR UNACCOMPANIED BAGGAGE ................. 148.7 UNDERVALUATION, ENTRY BY MEANS OF FALSE IN-
VOICES, DOCUMENTS, PRACTICES, ETC.—PENALTY ..... 148.19 UNDERWRITERS
Certificate of, for bonded warehouse ................................. 19.2 Entry by ............................................................................. 141.13
UNFAIR COMPETITION; Patent owner import survey ........... 12.39 UNFAIR PRACTICES IN IMPORT TRADE—BOND ................. 113.62 UNITED NATIONS AND ITS SPECIALIZED AGENCIES ........ 148.87, 148.88 UNITED STATES, CERTAIN CLASSES OF PERSONS IN
THE SERVICE OF, AND THEIR FAMILIES—FREE ENTRY OF PERSONAL AND HOUSEHOLD EFFECTS ..................... 148.71
UNITED STATES-BAHRAIN FREE TRADE AGREEMENT .... Part 10, subpart N UNITED STATES-CANADA FREE TRADE AGREEMENT ..... Part 10, subpart G UNITED STATES-CHILE FREE TRADE AGREEMENT ......... Part 10, subpart H UNITED STATES-JORDAN FREE TRADE AGREEMENT ...... Part 10, subpart K UNITED STATES-MOROCCO FREE TRADE AGREEMENT ... Part 10, subpart M UNITED STATES-OMAN FREE TRADE AGREEMENT .......... Part 10, subpart P UNITED STATES-SINGAPORE FREE TRADE AGREEMENT Part 10, subpart I UNIT PRICE—VALUATION-DEFINED, TRADE AGREE-
MENTS ACT OF 1979 ............................................................. 152.102(k) UNLADING
Crews effects ...................................................................... Part 148, subpart G
Merchandise or baggage, from contiguous country ........... 123.8 Vessels—Permit or special license, form ........................... 4.30
USER FEES ............................................................................. 24.22, 111.96
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1032
19 CFR Ch. I (4–1–12 Edition)
U.S. American goods returned consigned to—Free entry proce-
dure ................................................................................. 10.103 Articles for any department, bureau, or division of .......... 10.46, 10.100-10.104,
141.102(d), 145.37 Books, engravings and other articles, conditionally free .. 10.46, 145.37 Emergency purchases abroad by armed forces ................... 10.100-10.104 Enforcement of laws administered by agencies other than
Customs .......................................................................... 161.2 Entry and liquidation procedure ........................................ 10.100 -10.104,
141.83(d)(8), 141.102(d)
Fisheries—See ‘‘Fisheries, American’’ ............................... 10.78 Mail importations for offices or officials ........................... 145.37 Shipments consigned to Government departments, bu-
reaus, etc.—Entry of ....................................................... 10.100-10.104, 141.83(d)(8), 141.102(d)
Strategical and critical materials, stockpiling ................. 10.102 U.S. AGENCIES
Books, engravings, etc., conditionally free ........................ 10.46, 145.37 U.S. ATTORNEYS, REPORTS TO, IN CIVIL, CRIMINAL,
PENALTY, OR FORFEITURE CASES, WHEN REQUIRED .. 162.32(c), 162.47(d), 162.65(d), 172.3
U.S. DEPARTMENT OF AGRICULTURE—MEAT AND MEAT-FOOD PRODUCTS FOR EXPORT, INSPECTION BY 4.61, 4.72
U.S. MARITIME ADMINISTRATION Vessels exempt from penalties ........................................... 162.22(e)
U.S. OBLIGATIONS ACCEPTED IN LIEU OF SURETIES ON BONDS .................................................................................. 113.39
U.S., VESSELS OWNED BY—Bond not required to unlade on bonds ..................................................................................... 4.30
V VALUE
Absence of, cannot be determined ...................................... 152.107 Advances in—Notice to importer ....................................... 152.2 Articles assembled abroad and exported to the U.S. prior
to July 1, 1980 .................................................................. 10.18 Baggage .............................................................................. 148.13(d), 148.24,
148.33 Basis upon which appraisement is made ............................ 152.101 Computed value ................................................................. 141.88 Cost of production—When to be shown on invoice ............. 141.88 Date of exportation ............................................................ 152.1(c) Declarations ....................................................................... 148.13(d) Entered value, how shown on entry ................................... 141.61 Furnishing of information to importer .............................. 152.26 Further processing ............................................................. 152.105(i) Immediate transportation entry, used on .......................... 18.11 Importer to show on entry ................................................. 141.90(c) Rewarehouse entries .......................................................... 144.41(e) Seized property or penalty ................................................. 162.43 Time of exportation ........................................................... 152.1(c)
VEGETABLE OILS—OLIVE, PALM-KERNEL, RAPESEED, SUNFLOWER, AND SESAME—DENATURING—RELEASE, REQUIREMENTS FOR ......................................................... 10.56
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1033
Subject Index
VEHICLE, ROAD, CERTIFICATION ........................................ Part 115 VEHICLES
Automotive products—Canadian article ............................ 10.84 Bond—Form ....................................................................... 113.62-113.64 Common carrier, clearance of ............................................ 162.22 Compensation of Customs officer assigned to board—Pro-
ceeding between ports ..................................................... 24.17(a)(7) To protect the revenue ................................................ 24.17(a)(1)
Contiguous countries, from—Report and Manifest—Per- mits—Penalty ................................................................. Part 123, subpart
A Detention of, to secure payment of personal penalties ...... 162.22(d) Entry ................................................................................. 12.73, 12.74, 12.80 Exportation of used ............................................................ Part 192, subpart
A Forfeited, petition to be filed ............................................ 162.31, 162.32 Forfeiture and sale of ........................................................ 162.45, 162.46,
162.47 Holding and proceeding against, for payment of penalty .. 162.22 Inspection .......................................................................... Part 162, subpart
A Lading without special license or permit .......................... 162.22 Manifest—
Disposition of ............................................................... 4.7 Examination of ............................................................ 162.5
Marking of licensed cartage and lighterage ....................... 112.27 Motor vehicles—Canadian article ...................................... 10.84 Motor vehicles—Clean Air Act—emission standards ......... 12.73 Motor vehicles—safety standards ...................................... 12.80 Narcotics and certain other drugs—Unmanifested—Un-
laden without permit ...................................................... 162.65, 162.66 Nonresident—Free entry .................................................... 148.45 Overtime, bond—Form ....................................................... 123.8(c) Persons and baggage, examination .................................... 162.6, 162.7 Petitions, relief from penalties and forfeitures ................. 171.2, 171.11 Repair or alteration ........................................................... 10.36a Report of arrival ................................................................ 123.1(b) Retention of ....................................................................... 162.22(d) Safety standards—National Traffic and Motor Vehicle
Safety Act ....................................................................... 12.80 Sealed merchandise arriving in—Penalty .......................... 18.4 Search ................................................................................ 162.5, 162.7 Seized—
Appraisement ............................................................... 162.43 Award or sale ............................................................... 162.45-162.47
Seizure ............................................................................... 161.2, 162.22 Conveyances ................................................................. 162.22 Release of, on payment of appraised value .................. 162.44 Release of, petition for ................................................ 162.31, 162.32,
171.11 Release on bond ........................................................... 162.47, 162.49 Remission or mitigation of forfeiture .......................... 162.31, 162.32, Part
171, subparts B- D
Stolen in Mexico ................................................................ 123.82 Subject to summary forfeiture—Release under bond ......... 162.47, 162.49 Taken abroad temporarily, tariff status on return ............ 148.32 Transfers to other district for sale .................................... 162.46(c)(2)
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1034
19 CFR Ch. I (4–1–12 Edition)
VEHICLES—Continued Claim and bond to stop summary forfeiture ................ 162.47 Seizure by State officers, adoption of, by Customs ..... 162.21 Seizure —
When used in or employed to aid in unlawful im- portation merchandise ........................................ 162.21, 162.22
Stopping and searching .......................................... 162.5, 162.7 Unlading without special license or permit ....................... 162.22
VEHICLES, MOTOR, ETC., STOLEN OR EMBEZZLED, TAKEN TO MEXICO AND RETURNED ................................ 123.82
VESSELS Advance filing of cargo declaration ................................... 4.7 Alcoholic liquors on vessels not over 500 tons ................... 4.13 American—Transfer of cargo and passengers .................... 4.91 American-built, for foreign account, clearance of ............. 4.61(c) Army and Navy transports, Customs supervision and
search of .......................................................................... 162.3(b) Arrival of ........................................................................... 4.1, 4.2 Arriving with foreign merchandise destined for foreign
ports ................................................................................ 4.88, 4.89 Arrival, reports of, Coastwise Trade .................................. 4.81 Boarding of ........................................................................ 162.3, 4.1 Boarding or leaving without permission—Penalty ............ 4.1 Bonds—Forms .................................................................... 113.62-113.64 Bonded cargo not sealed .................................................... 18.4 Bulk merchandise, unlading of, outside port of entry—Ex-
penses reimbursable ........................................................ 4.35 Cargo—
Bulk for orders—Manifest, amendment ....................... 4.36 Certificate of inspection, verification .......................... 4.61, 4.66 Discharge of, exceeding time limit—Compensation of
discharging officer .................................................... 4.36, 24.17 Discharge of, outside port of entry—Compensation
and expenses of discharging officer ........................... 24.17 General-order procedure .............................................. 4.37 Inward, accounting for ................................................. 4.61, 4.62 Recovered from sunk or wrecked vessel or as derelict 4.41, 4 N 76, 4 N 78 Unlading, time limit .................................................... 4.36
Clearance— Bond—Unmanifested narcotics .................................... 162.65(e) Common carrier—Penalty incurred by master or
owner ........................................................................ 162.22(c) Foreign—Penalty ......................................................... 4.61, 162.22 Requirements ............................................................... 4.60, 4.61 Transportation orders issued under Defense Produc-
tion Act of 1950 .......................................................... 4.74 When not required ........................................................ 4.60
Clearance of—(See also Clearance of vessels) At other than port of entry—Expenses ........................ 24.17, 101.4 Documentation required .............................................. 4.61 Neutrality observance ................................................. 4.61, 4.73 Outward foreign manifests required ............................ 4.61, 4.63, 4.75 Requirements as to crew list ....................................... 4.61, 4.68 Requirements as to seamen’s act and shipping arti-
cles ............................................................................ 4.61, 4.69 To Panama Canal ......................................................... 4.60(c) To closed ports or places .............................................. 4.61, 4.67 When not required ........................................................ 4.60
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1035
Subject Index
VESSELS—Continued Coasting trade and fishing—Documents required .............. 4.80 Coastwise—
Bonded cargo, report of ................................................ 4.81(b) Clearance ..................................................................... 4.81, 4.83, 4.84 Entitled to engage in ................................................... 4.80 Entry of ....................................................................... 4.81, 4.83, 4.84 Intercoastal movements .............................................. 4.86 Passengers on foreign vessels taken on board and
landed in the U.S. ..................................................... 4.80a Report of arrival .......................................................... 4.81 St. Lawrence River, via ............................................... 4.83 Touching at foreign port .............................................. 4.82, 4.90
Common carriers, clearance may be refused ...................... 162.22 Compensation of Customs officers assigned to board—
Proceeding between ports ............................................... 24.17 To protect the revenue ................................................ 4.36, 24.17
Container status messages ................................................. 4.7d Contiguous country, from—Report and manifest—Per-
mits—Penalty ................................................................. 123.1-123.8 Convention—Fisheries ....................................................... 4.96 Crew-Articles landed or taken ashore ................................ 148.62-148.66 Crew assisting in unlawful importation of merchandise—
Penalty ........................................................................... 148.67, 162.22 Crew list ............................................................................. 4.61, 4.68 Crews, articles acquired by ................................................ 4.7, 4.81, 148.62-
148.66 Cruising license ................................................................. 4.94 Customs stations ............................................................... 101.4 Definition ........................................................................... 4.0 Departure—
Before report or entry—Penalty .................................. 4.6 Time of, definition ....................................................... 4.3
Derelict— Report of arrival .......................................................... 4.2 Who may report ........................................................... 4.2
Detention of, to secure penalty ......................................... 162.22 Discrepancies in cargo correction—Penalty ...................... 4.12, 4.62 Discriminating countries, from—Restrictions ................... 4.17 Dismantled in American port, hulls and fittings ............... 4.40 Distress—Landing cargo at other than port of destina-
tion ................................................................................. 4.32 Diversion of cargo from port of destination ...................... 4.33 Diversion of, while en route ............................................... 4.91 Diverted after clearance, with supplies withdrawn from
warehouse ....................................................................... 10.63 Drawback—Material for original construction and equip-
ment ................................................................................ Part 191, subpart M
Dunnage ............................................................................. 4.39(c) Electronic passenger and crew arrival manifests .............. 4.7b Electronic passenger and crew member departure mani-
fests ................................................................................ 4.64 Engaged in several movements or transactions simulta-
neously ............................................................................ 4.90 Enrolled or licensed for coasting trade and mackerel fish-
eries—Restrictions .......................................................... 4.15(d) Entitled to engage in coastwise trade ................................ 4.80
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1036
19 CFR Ch. I (4–1–12 Edition)
VESSELS—Continued Entry and clearance of records .......................................... 4.95 Entry of—
American ..................................................................... 4.9 At other than port of entry—Expenses ........................ 24.17, 101.4 Foreign ........................................................................ 4.9 When required .............................................................. 4.3
Equipment purchased abroad for American ....................... 4.14 Examination of .................................................................. 162.3, 162.5 Export declarations—Vessel proceeding foreign via do-
mestic ports .................................................................... 4.87 Fees, commercial vessel ..................................................... 24.22(b) Fees for recording documents ............................................ 4.98 Fees, private vessels .......................................................... 24.22(e) Fisheries of U.S.—Limited to American ............................ 4.96 Fishing, enrolled and licensed for, touching and trading
at foreign places—Permit—Form .................................... 4.15 Foreign trade—
Touching at intermediate foreign port while pro- ceeding via domestic ports ........................................ 4.89
Forfeiture and sale of ........................................................ 162.45-162.47 Formal entry—Oath—Form ............................................... 4.9 Frontier enrollment and license, under—Touching at for-
eign port ......................................................................... 4.82, 4.90 Government owned ............................................................ 4.5 Great Lakes, trade between ports ...................................... 4.83 Holding and proceeding against, for payment of penalty .. 162.22(d) Hudson River, proceeding to sea via .................................. 4.83(b) Importation restrictions—Vessels of less than 30 net tons 4.100 Inspection of ...................................................................... 162.3, 162.5 Lading or unlading without special license or permit ....... 4.30 Letters on, disposition ....................................................... 162.4 Licenses—
Less than 30 net tons ................................................... 4.100 Yachts, cruising licenses ............................................. 4.94
Light money, table ............................................................ 4.20 Light money, yachts .......................................................... 4.94 Livestock-carrying—Exportation of animals—Inspection . 4.61, 4.71 Mail, carriage .................................................................... 4.61 Manifest—
Examination ................................................................ 162.3, 162.5 Incorrect ...................................................................... 4.12 Inward foreign—Contents—Form ................................. 4.7 Outward foreign ........................................................... 4.61, 4.63, 4.75 Vessel proceeding foreign via domestic ports .............. 4.87
Marihuana— Cargo or passenger’s baggage ....................................... 162.65 Unladen without a permit—Penalty ............................ 162.66 Unmanifested—Penalty ............................................... 162.65
Maritime Administration, exempted from penalties ......... 162.22(e) Measuring, expenses of, reimbursable ................................ 24.17 Meat inspection certificate required before clearance of—
Master’s oath .................................................................. 4.61, 4.72 Merchandise and baggage on vessels not required to
enter, report of ................................................................ 4.2 Narcotics and certain other drugs, etc.—
Cargo or passenger’s baggage ....................................... 162.65 Clearance ..................................................................... 162.65(e)
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1037
Subject Index
VESSELS—Continued Narcotics and certain other drugs, etc.——Continued
Sea stores ..................................................................... 4.39 Unladen without permit .............................................. 162.66 Unmanifested—Penalties ............................................. 162.65
No clearance without issuance of certificate of free pra- tique ................................................................................ 4.70
Noncontiguous territory; report of arrival, entry, clear- ance or permission to depart to ...................................... 4.84
Nonconvention—Fisheries ................................................. 4.96 Oil discharged into coastal navigable waters —Penalty .... 4.66a, 4.66b Overage of cargo—Form ..................................................... 4.12, 4.62 Overtime—Boarding, entry or clearance in connection
with—Forms—Bond ........................................................ 4.10 Panama Canal, transiting, report ...................................... 4.4 Passenger list, to be submitted by master ......................... 4.50 Passengers—
Requirements ............................................................... 4.50 Passengers and baggage, list .............................................. 4.7 Permit or special license to unlade or lade—Form ............ 4.30 Persons and baggage, examination .................................... 162.6 Petitions, relief from penalties and forfeitures ................. 162.31, 162.32, Part
171 Pleasure yachts, when required to be licensed .................. 4.94 Pratique (bills of health), when required ........................... 4.9(d) Preliminary entry of vessels—Certification—Form .......... 4.8 Prematurely discharged or overcarried cargo, disposition 4.34 Proceeding foreign via domestic ports ............................... 4.87 Reexamination and search ................................................. 162.6 Refuse matter discharged or deposited in navigable wa-
ters—Penalty .................................................................. 4.66a, 4.66b Repair or alteration ........................................................... 10.36a Repairs to American, abroad ............................................. 4.14 Residue cargo ..................................................................... 4.85, 4.86, 4.88 Retention of ....................................................................... 162.22(d) St. Lawrence River, via ..................................................... 4.83 Salvage—Restrictions as to ............................................... 4.97 Sea, and ships’ stores ......................................................... 4.39, 4.87 Sealed ................................................................................ 4.11, 18.3, 18.4,
18.4a, 123.24 Sea or medical stores—Narcotic drugs .............................. 4.39, 162.65, 162.66 Search of—Baggage and persons ........................................ 4.1, 162.6, 162.7 Securities, etc., carriage .................................................... 4.61 Seized—
Appraisement ............................................................... 162.43 Claim and bond to stop summary forfeiture ................ 162.47 Release of, on payment of appraised value .................. 162.44 Release on bond ........................................................... 162.47, 162.49(b) Remission or mitigation of forfeiture .......................... 162.31,162.32, Part
171, subparts B- E
Seizure by State officers, adoption of, by Customs ........... 162.21 Seizure —
When used in or employed to aid in unlawful importa- tion of merchandise .................................................. 162.21,162.22
When used in unlawful exportation of articles ............ 161.2(b) Shippers’ export declarations ............................................ 4.63, 4.75 Shortage of cargo—Form ................................................... 4.12, 4.62
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1038
19 CFR Ch. I (4–1–12 Edition)
VESSELS—Continued Sold under chattel mortgage or conditional sale con-
tract—Petition ................................................................ 171.13(b) Special license issued under Anti-Smuggling Act to ves-
sels of less than 30 net tons ............................................. 4.100 Special license to unlade or lade—Form ............................ 4.30 Stores and equipment, landing of retention on board—
Entry, when required ...................................................... 4.39 Stores, sea and ships’, sealing of, when ............................. 4.11 Stow plan ........................................................................... 4.7c Subject to summary forfeiture—Release under bond ......... 162.47, 162.49 Supervision of, while in port .............................................. 4.1 Supplies and equipment for—
Foreign Trade Zone, Removal ...................................... 146.69 Withdrawn from bonded warehouse, Customs custody,
internal-revenue bonded warehouse, etc. .................. 10.59-10.64 Tonnage tax—Exemptions ................................................. 4.20-4.22 Towing operations ............................................................. 4.92 Transfer to other districts for sale .................................... 162.46 Transiting Panama Canal—baggage .................................. 148.3 Transports, Government, manifest of passengers and bag-
gage—Form ..................................................................... 4.5 Transshipment of cargo due to casualty ............................ 4.31 Undelivered cargo at foreign destination, returned, dis-
position of ....................................................................... 4.34 Unlading—
Articles by seaman or officer ....................................... Part 148, subpart G
Elsewhere than at port of entry ................................... 4.35 Prior to report or entry—Penalty ................................ 4.6 Unlading or transshipment at other than port of
entry to casualty ...................................................... 4.31 Unmanifested narcotics, marihuana, and certain other
drugs ............................................................................... 162.65 U.S. Government owned, bond not required to unlade or
lade ................................................................................. 4.30(j) U.S. Government, supplies withdrawn for ......................... 10.59 U.S. ports on Great Lakes and other ports in U.S., trading
between ........................................................................... 4.83 Verification of nationality and tonnage ............................ 4.61, 4.65 Voyage—
Inward foreign, when completed .................................. 4 N 121 Outward foreign, when begun ...................................... 4 N 121
Whale fisheries, privileges and exemptions ....................... 4.96 Withdrawal of supplies and equipment from ...................... 10.59
Aircraft turbine fuel .................................................... 10.62b Blanket ........................................................................ 10.62a Bunker fuel oil ............................................................. 10.62 Foreign Trade Zone ..................................................... 146.69 Warehouse .................................................................... 144.35 Wrecked—
Manifest for an entry of cargo ............................... 4.41 Underwriters or salver of cargo deemed consignee 141.13
Yachts ................................................................................ 4.94, 4.94a VIRGIN ISLANDS, U.S. ........................................................... 101.1, 191.5
Drawback ........................................................................... 191.5 Duty ................................................................................... 148.101, 148.102 Flights to and from ............................................................ Part 122, subpart
N
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1039
Subject Index
VIRGIN ISLANDS, U—Continued Not ‘‘ports of entry’’ .......................................................... 101.1 Unaccompanied shipments from ........................................ 148.110-148.116 Vessels arriving at or from, examination of persons, bag-
gage, or merchandise ...................................................... 162.6 VIRUSES, SERUMS, AND TOXINS
For treatment of domestic animals—Entry procedures ..... 12.17-12.20 For treatment of man—Entry procedure ........................... 12.21-12.23 Mail importations .............................................................. 12.17-12.23, 145.57
VOUCHERS, BILLS OF SALE, OR INVOICES; CERTIFI- CATION ................................................................................. 24.34
W WAGES
Callback ............................................................................. 24.16 Customs—
Employees .................................................................... 24.17 Officers ......................................................................... 24.16
Customs Officer Pay Reform Act ....................................... 24.16 Federal Employees Pay Act ............................................... 24.17 Limitations ........................................................................ 24.16(h) Overtime pay ..................................................................... 24.16(e) Premium pay ..................................................................... 24.16(g) Work assignment priorities ............................................... 24.16(d)
WAKE ISLAND ........................................................................ 7.2, 191.5 WAREHOUSE ENTRY
Allowance of duties on ....................................................... 144.3 Arrival as condition for ..................................................... 141.63 Bond—Form ....................................................................... 144.13 Estimated duties on ........................................................... 144.12 Form and procedure ........................................................... Part 144, subparts
B and C Liquidation ........................................................................ 159.7, 159.9 Transferee—
Liability for duties ...................................................... 144.2 Rights and obligations of ............................................. 144.21-144.31
Transferor—Liability for duties ........................................ 144.2, 144.21 Unclaimed merchandise ..................................................... 127.14
WAREHOUSE PROPRIETOR’S BOND—FORM ........................ 113.14 WAREHOUSES
Abandonment of merchandise—Duty allowance ................ 158.41-158.43 Bonded
Alterations or Relocation ............................................ 19.3 Amount of bond ........................................................... 113.13 Application to bond—Annual Fee ................................ 19.2 Articles exported from, and returned .......................... 10.3(d) Bins for storage of grain .............................................. 19.1 Blanket permits to withdraw ....................................... 19.6 Bonded stores, definition ............................................. 19.1 Bonds ........................................................................... 19.2 Buildings or enclosures as ........................................... 19.1 Charges after sale of merchandise ............................... Part 127, subpart
D Deposits ....................................................................... 19.6 Suspensions; discontinuance ........................................ 19.3 Withdrawals ................................................................. 19.6 Withdrawals for exportation ........................................ 144.37
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1040
19 CFR Ch. I (4–1–12 Edition)
WAREHOUSES—Continued Classes of, description ........................................................ 19.1 Cleaning, sorting, and repacking—Established for ............ 19.1
Damage or loss of merchandise .................................... Part 158, subparts B and C
Destruction of merchandise in ..................................... Part 158, subpart D
Discontinuance of ........................................................ 19.3 Disposition of merchandise in—
After expiration of warehouse period ..................... 127.13, 127.14 Duty paid, undelivered ........................................... 127.14
Elevators for storage of grain ...................................... 19.1 Examination packages, delivery of .............................. 19.10 Examining, repacking, sampling, transferring mer-
chandise by importers ............................................... 19.8 Expenses of labor and storage, merchandise liable for 19.7 Fires, lights, and locks ................................................ 19.4 Importer to designate on entry—the bonded ware-
house ......................................................................... 144.11(c) Importer’s private, definition ...................................... 19.1 Liability for duty on merchandise in ........................... 144.2, 144.3 Liens for freight ........................................................... 19.6 Locks, Customs, required ............................................ 19.4 Manipulated merchandise—Dutiable weight, etc. ........ 159.21, 159.22 Merchandise in, under change of law ........................... 152.12, 152.16,
152.17 New bond, when necessary ........................................... 19.2 Offices for warehouse officer ........................................ 19.4 Protection requirements .............................................. 19.1 Public—For merchandise ............................................. 19.1 Public store, definition ................................................ 19.1 Release of merchandise ................................................ 19.6, 144.38(e) Renewal of bond ........................................................... 19.2 Recordkeeping, storage ................................................ 19.12 Sanitary requirements ................................................. 19.4 Stables for storage of animals ..................................... 19.1 Stipulation of lessee .................................................... 19.2 Storage and labor charges ........................................... 19.7, 24.12 Storage tanks for petroleum products ......................... 151.45 Suspended status, nonbonded, storage permitted ........ 19.3 Transfer of merchandise from discontinued ................ 19.3 Yards or sheds for bulky articles ................................. 19.1
Cigar manufacturing— Application for establishing ........................................ 19.13(b) Bond—Form ................................................................. 19.13, 113.11 Buildings or parts of, designated as ............................. 19.13 Byproducts, withdrawal of ........................................... 19.15 Constructive manipulation warehouses ....................... 19.1 Containers or coverings of materials ........................... 19.15 Entry of goods into—Form—Bond ............................... 19.14 Export procedure ......................................................... 19.15 Exportation of products required ................................. 19.15 Formula of manufacture .............................................. 19.13 Free material, application to receive—Form .............. 19.14 Manufacturer’s statement ........................................... 19.15 Manufacturing ............................................................. 19.13-19.15 Marking of products .................................................... 19.13 Puerto Rico, liquors withdrawn for shipment to ......... 7.1, 19.15(i)
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1041
Subject Index
WAREHOUSES—Continued Cigar manufacturing——Continued
Rectifying liquors ........................................................ 7 N 2 Shortages, etc., in transportation—Charge against
carrier ....................................................................... 19.15(m) Storage of goods ........................................................... 19.13 Transfer of domestic spirits and wines to .................... 19.14(d) Waste, withdrawal of ................................................... 19.15 Warehouse officer to verify manufacturer’s state-
ment .......................................................................... 19.15(j) Withdrawals ................................................................. 19.15
Inventory control ............................................................... 19.12 Period of warehousing ....................................................... 144.5 Smelting and refining ........................................................ 19.17-19.25
Assaying of metal-bearing ores and metals ................. Part 151, subpart D
Bond, renewal .............................................................. 19.17 Bond charges and credits, basis for .............................. 19.15 Credit for dutiable metals lost ..................................... 19.25 Different establishments, done in ................................ 19.21 Discontinuance ............................................................ 19.17 Entry procedure ........................................................... 19.17 Establishment of—Application—Bond ......................... 19.17, 113.12 Manufacturer’s statements .......................................... 19.19 Metal refined from crude metal (imported and pro-
duced from imported materials) ............................... 19.22 Moisture allowance in ores and metals ........................ 151.52, 151.54 Premises, change in list ............................................... 19.17 Records, manufacturer’s, required ............................... 19.19 Sampling procedures .................................................... 19.17, 151.52 Segregation of bonded metal-bearing ores ................... 19.17 Theoretical transfer ..................................................... 19.24 Transfer of credits on bonds ........................................ 19.24 Wastage, allowance for ................................................ 19.18, 19.19 Withdrawal credits ...................................................... 19.25 Withdrawals for consumption ...................................... 19.18 Withdrawals for exportation, credit for ....................... 19.20, 19.23 Withdrawals for transfer .............................................. 19.20, 19.24, 19.25
Storage-manipulation— Application to manipulate ........................................... 19.11 Entry for ...................................................................... 19.11 Repacking after manipulation ..................................... 19.11 Requirements ............................................................... 19.11 Transfer of merchandise .............................................. 19.11 Withdrawal from .......................................................... 19.11
WARRANTS, SEARCH, PROCURING AND SERVING OF ....... Part 162, subpart B
WASTAGE—SMELTING AND REFINING ............................... 19.18, 19.19 WATCHES AND WATCH MOVEMENTS FROM ....................... 7.4, 11.9, 134.43 WAX DISKS AS MASTER RECORDS FOR SOUND RECORDS
FOR EXPORT ....................................................................... 10.90 WEIGHING
Expenses ............................................................................ 141.86(f) Sugar, syrup, and molasses ................................................ 151.27, 151.29 Tare, determination ........................................................... 159.22 Warehoused goods, for exportation or transportation ....... 144.37(e) Wool and hair ..................................................................... 151.68, 151.69
WHALE FISHERIES, VESSELS IN, PRIVILEGES AND EX- EMPTIONS ........................................................................... 4.96(h)
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1042
19 CFR Ch. I (4–1–12 Edition)
WHALES—IMPORTATION AND EXPORTATION RESTRIC- TIONS ................................................................................... 12.30
WHEAT .................................................................................... 19.29-19.34 WILD ANIMALS
Exported for exhibition, return ......................................... 10.66 Importation procedure ....................................................... 10.76, 12.26-12.28 Scientific or educational purposes, for .............................. 10.75
WINDOWS, STAINED OR PAINTED GLASS—Houses of wor- ship ....................................................................................... 10.52
WINES (BULK IMPORTATIONS), IN CASKS AND SIMILAR CONTAINERS ....................................................................... 11.6
WITHDRAWAL OF MERCHANDISE FROM SALE .................. 127.14 WITHDRAWAL OF SUPPLIES
Aircraft turbine fuel .......................................................... 10.62b Blanket .............................................................................. 10.62a Bunker fuel oil ................................................................... 10.62
WITHDRAWALS, CONDITIONALLY FREE, BOND FOR— FORM .................................................................................... 113.62
WITHDRAWALS FOR TRANSPORTATION AND EXPOR- TATION CONVERTED TO WITHDRAWAL FOR CONSUMP- TION ..................................................................................... 144.37
WITHDRAWALS FROM WAREHOUSE Bonded manufacturing ....................................................... 19.15 Consumption
Computation of duties ................................................. 141.104 Form and procedure ..................................................... Part 144, subpart
D Transferee, when by ..................................................... Part 144, subpart
C Exportation ........................................................................ 144.37 Manipulated merchandise .................................................. 19.11 Period ................................................................................ 127.14, 144.5 Petroleum products ........................................................... 151.45 Smelting and refining ........................................................ 19.18, 19.25 Transportation, for—
Before liquidation ........................................................ 144.36 Before liquidation without deposit in warehouse ........ 144.36 Entry—Form ................................................................ 144.36(c) Procedure at destination ............................................. 144.36(g) Procedure, forwarding ................................................. 144.36(f) Samples withdrawn, duties on ..................................... 144.36(e)
Vessel supplies—Form ....................................................... 10.60-10.64 Weighing, gauging, and measuring merchandise for expor-
tation or transportation ................................................. 144.37(e) WITHDRAWALS FROM WAREHOUSE OR CUSTOMS CUS-
TODY—TOBACCO PRODUCTS FOR CONSUMPTION ON VESSELS—BLANKET WITHDRAWALS—INVENTORIES ... 10.65
WITHDRAWAL OF SUPPLIES AND EQUIPMENT FOR VES- SELS ..................................................................................... 10.59
WOOL AND HAIR Clean content
Determination of by laboratory testing ...................... 151.70, 151.71 Expenses of retests ....................................................... 151.71(d), 151.73(c),
151.74 Notice to importer required ......................................... 151.71(b)
Commercial test, clean content by .................................... 151.73 Definitions of clean pound, clean yield, general sample
and sampling unit ........................................................... 151.61
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1043
Subject Index
WOOL AND HAIR—Continued Duties, collection postponed, when .................................... 151.66 Duties, how determined ..................................................... 151.65 Duties on samples .............................................................. 151.66 Entry ................................................................................. 151.63, 151.64 Grading .............................................................................. 151.76 Invoice requirements ......................................................... 151.62 Losses, commercial cleaning wool and hair ....................... 151.61(b) Notice of higher rate of duty ............................................. 151.76(b) Notice of percentage clean yield and grade of wool or hair
filed with entry ............................................................... 151.64 Official standards for grade ............................................... 151.76(a) Retest ................................................................................ 151.71(c), 151.73,
151.74 Samples drawn by importer, weighed and recorded ........... 151.67 Sampling procedure ........................................................... 151.68 Standards for grades .......................................................... 151.76 Weighing ............................................................................ 151.61-151.63, 151.68
WOOL, CARPET, AND CAMEL’S HAIR—BOND—FORM ......... 113.68 WOOL PRODUCTS, LABELING OF ......................................... 11.12 WORKS OF ART
Antiquities ......................................................................... 10.53 Baggage, in ........................................................................ 148.23 Exhibition, articles for—Bond ........................................... 10.49 Gobelin and other hand-woven tapestries .......................... 10.54 Professional artists, temporary importations by .............. 10.31 Stained or painted glass windows ...................................... 10.52 Statuary and casts of sculpture ......................................... 10.48 Transfer of imported—For exhibition ................................ 10.49
WORKS OF ART, DRAWINGS, ETC., BROUGHT BY PRO- FESSIONAL ARTISTS, LECTURERS, OR SCIENTISTS— TEMPORARY IMPORTATION BOND ................................... 10.31
WRECKED OR ABANDONED AT SEA—ENTRY OF MER- CHANDISE ............................................................................ 4.40, 4.41, 141.13
WRECKED VESSELS, DISPOSITION OF CARGO AND STORES ................................................................................ 4.40, 4.41
Y YACHTS
Cargo and passengers, restrictions in carriage of .............. 4.94(a) Foreign—
Cruising licenses may be issued ................................... 4.94(b) Tonnage tax and other charges, when exempt ............. 4.94
Imported for sale ............................................................... 4.94a Pleasure, when required to be licensed .............................. 4.94(a) When exempt from foreign clearances ............................... 4.60(b)(1) When not required to make entry ...................................... 4.94(a)
Z ZOOLOGICAL COLLECTIONS OF WILD ANIMALS AND
BIRDS ................................................................................... 10.75
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1045
List of CFR Sections Affected All changes in this volume of the Code of Federal Regulations that
were made by documents published in the FEDERAL REGISTER since Jan- uary 1, 2001, are enumerated in the following list. Entries indicate the nature of the changes effected. Page numbers refer to FEDERAL REGISTER pages. The user should consult the entries for chapters and parts as well as sections for revisions.
For the period before January 1, 2001, see the ‘‘List of CFR Sections Affected, 1949–1963, 1964–1972, 1973–1985, and 1986–2000’’ published in 11 sep- arate volumes.
2001 19 CFR 66 FR
Page
Chapter I 4.14 Revised; eff. 4–25–01 ................ 16397
Meeting .......................................19720 10 Authority citation amend-
ed...................................... 9645, 50537 10.31 (a)(1) amended........................ 8767 10.184 Undesignated center head-
ing added; section revised; in- terim........................................ 20395
10.191 (b)(1), (3) and (4) amended; interim ...................................... 9645
10.199 Added; interim ..................... 9645 10.222 Introductory text amend-
ed; interim................................ 50537 10.223 (a)(6) and (7) amended; in-
terim........................................ 50537 10.228 Added; interim.................... 50537
(c)(3)(ii) introductory text and (E) corrected.............................51864
12 Authority citation amend- ed ............................................. 16853
12.3 Revised; eff. 4–27–01 ................ 16853 12.73 (d) amended............................ 8767 12.74 (b)(2) amended........................ 8767 12.104g (a) tableamended................ 7401
(a) tableand (b) tableamended ................................................. 63499
19.2 (f) amended.............................. 8767 24.24 (e)(4) revised ......................... 16857
(e)(4)(i) and (ii)(A) corrected; in- terim ........................................21086
(e) heading and (4) revised; (e)(2)(ii) amended......................34818
101 Authority citation amend- ed ............................................. 56431
101.5 Revised ................................ 56431
19 CFR—Continued 66 FR Page
Chapter I—Continued 102.21 (e) introductory text redes-
ignated as (e)(1); new (e)(1) re- vised; new (e)(1) table amend- ed; (e)(2) added; interim............. 21661
Table corrected............................23981 103.31 (e)(1) amended ...................... 8767 111.12 (a) amended .......................... 8767 111.19 (e) amended .......................... 8767 112.42 Amended .............................. 8767 113.62 (l)(1) amended; eff. 4–27–
01.............................................. 16854 113.63 (h)(1) amended; eff. 4–27–
01.............................................. 16854 113.64 (b) amended; eff. 4–27–01 .......16854 113.67 (a)(2)(i) and (b)(2)(i) amend-
ed; eff. 4–27–01............................ 16854 113.73 (a)(2) amended; eff. 4–27–
01.............................................. 16854 122 Authority citation amend-
ed ............................................. 67484 122.15 (b) tableamended .......49275, 50104 122.49a Added................................ 67484 132 Authority citation amend-
ed ............................................. 21666 Technical correction ...................27454
132.18 Added; interim.................... 21666
2002 19 CFR 67 FR
Page
Chapter I 4.7 Heading revised; (b) text re-
designated as (b)(1); new (b)(1) amended; (b)(2), (3), (4) and (e) added........................................ 66331
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1046
19 CFR (4–1–12 Edition)
19 CFR—Continued 67 FR Page
Chapter I—Continued 4.7a (c)(1) amended; (c)(4) and (f)
added........................................ 66332 4.8 (b) amended ............................. 66332 4.30 (n) added ................................ 66332 4.37 (d) through (g) redesignated
as (e) through (h); (c) and new (e) amended;new (d)added ........ 68032
4.94 (b) amended............................ 52862 7 Authority citation revised.......15098 10 Authority citation amend-
ed ............................................. 39289 10.183 Revised ............................... 39289 10.184 (g)(1) amended; (g)(2) re-
vised; interim............................. 3059 10.199 Revised ............................... 62882 11 Authority citation revised .....15098 12 Technical correction........1809, 43247,
66333 Authoritycitation revised ...........15098
12.104g (a) correctly des- ignated........................................ 953
(a) amended ......38878, 47449, 59160, 61260 18 Authority citation revised .....15098 19 Authority citation revised .....15098 19.1 (a) heading, (11) and (c) added;
(a)(1) and (b) revised .................. 68032 19.2 (d) added; (f) amended............. 68032 19.9 (a) revised .............................. 68032 19.12 (a) introductory text re-
vised......................................... 68033 24 Authority citation revised .....15098
Authoritycitationamended ........31953 24.23 (c)(1)(iv) amended .............. 15098 24.24 (e)(4)(iv) revised.................... 31953 54 Authority citation revised .....15098 101 Authority citation re-
vised......................................... 15098 102 Authority citation re-
vised......................................... 15098 102.21 (b)(5) and (e)(1) table cor-
rected; interim ......................... 51752 111 Authority citation re-
vised......................................... 15098 113.64 (a) amended; (c) through (f)
redesignated as (d) through (g); new (c) added ............................ 66333
114 Authority citation re- vised......................................... 15098
122 Authority citation amend- ed .................................... 42712, 55721
122.15 (b) amended ........................ 35723 122.48 (c) revised ........................... 55721 122.49a (c)(2) amended ................... 42712 122.49b Added................................ 42712
19 CFR—Continued 67 FR Page
Chapter I—Continued 122.50 Heading revised; (d), (e) and
(f) redesignated as (e), (f) and (g); (c) andnew(e) amended ....... 68033
122.181 Amended; interim ............. 48984 122.182 (a), (c) and (d) revised; (b),
(e), (f) and (g) amended; in- terim........................................ 48984
Corrected.....................................51928 122.183 (a) and (d) revised; (c)
amended; interim ..................... 48985 122.184 Revised; interim................ 48986
Corrected.....................................51928 122.185 Revised; interim................ 48986 122.186 Revised; interim................ 48986 122.187 Revised; interim................ 48986
Corrected............................51928, 54023 122.188 Heading and (a) through
(d) amended; interim ................ 48988 122.189 Added ................................ 48988 123 Authority citation re-
vised......................................... 15098 123.10 Heading revised; (d), (e) and
(f) redesignated as (e), (f) and (g); (c) and new (e) amended; new (d) added; (a) introductory text revised .............................. 68033
127 Authority citation amend- ed ............................................. 68033
127.1 Authority citation re- moved ...................................... 68034
127.2 Authority citation re- moved ...................................... 68034
127.11 Authority citation re- moved ...................................... 68034
127.12 Authority citation re- moved ...................................... 68034
127.13 Authority citation re- moved; (a) revised ..................... 68034
127.14 Authority citation re- moved; (a) revised ..................... 68034
127.21 Authority citation re- moved; amended ....................... 68034
127.23 Authority citation re- moved ...................................... 68034
127.24 Authority citation re- moved ...................................... 68034
127.25 Authority citation re- moved ...................................... 68034
127.26 Authority citation re- moved ...................................... 68034
127.27 Authority citation re- moved ...................................... 68034
127.28 Authority citation re- moved; (a) amended .................. 68034
127.29 Authority citation re- moved ...................................... 68034
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1047
List of CFR Sections Affected
19 CFR—Continued 67 FR Page
Chapter I—Continued 127.31 Authority citation re-
moved ...................................... 68034 127.32 Authority citation re-
moved ...................................... 68034 127.33 Authority citation re-
moved ...................................... 68034 127.34 Authority citation re-
moved ...................................... 68034 127.35 Authority citation re-
moved ...................................... 68034 127.36 Authority citation re-
moved ...................................... 68034 127.37 Authority citation re-
moved ...................................... 68034 127.41—127.43 (Subpart E)
Added ....................................... 68034 128 Authority citation re-
vised......................................... 15098 132 Authoritycitation revised ......15098
Authoritycitationamended ........46588 132.16 Removed............................. 46588 132.18 Regulation at 66 FR 21666
confirmed................................. 55723 134 Authority citation re-
vised......................................... 15098
2003 19 CFR 68 FR
Page
Chapter I Chapter IHeading revised............. 51869 0 added ......................................... 51869 4 Authority citation amended;
eff. 4–21–03................................. 13625 Authoritycitationamended ........13820 Technical correction ...................14476 Authoritycitation revised ...........68168
4.5 (a) amended ............................. 68168 4.7 (b)(3)(i) corrected ...................... 1801
(b)(1) and (b)(3)(i) amended; (b)(2) revised; (b)(3)(iii) and (5) added ................................................. 68168
4.7a (c)(4)(viii) and (ix) revised; (c)(4)(xiii) and (xiv) amended; (c)(4)(xv) and (xvi) added ........... 68169
4.20 (a), (b) and (c) table amend- ed ............................................. 48280
4.61 (c)(24) added ........................... 68169 4.80 (b)(2) revised .......................... 13820 4.92 Amended................................ 13820 4.94a Added; eff. 4–21–03 ................. 13625 10 Authority citation amend-
ed ............................................. 43624 Technical correction ...................67338
19 CFR—Continued 68 FR Page
Chapter I—Continued Regulation at 68 FR 14486 author-
ity citation corrected; CFR correction.................................67338
10.184 Undesignated center head- ingandsection removed............ 43624
10.201 Regulation at 68 FR 14486 correctly revised; CFR correc- tion .......................................... 67338
10.202 Regulation at 68 FR 14486 introductory text corrected; (b)(1) through (8) correctly re- moved; new (b)(1) through (4) correctly added; CFR correc- tion .......................................... 67338
10.208 Regulation at 68 FR 14487 corrected;CFRcorrection ........ 67338
10.212 Amended; interim............... 13824 10.213 (a)(1) through (a)(5) and (8)
revised; (a)(7) amended; (b)(2) redesignated as (b)(3); (a)(11) and new (b)(2) added; in- terim........................................ 13824
10.214 (b) and (c) revised; in- terim........................................ 13825
10.215 (a) revised; interim.............. 13827 10.216 (b)(4)(ii) amended; in-
terim........................................ 13827 10.217 (a)(2) and (3) amended; in-
terim........................................ 13827 10.222 Amended; interim............... 13831 10.223 (a)(1), (2), (3), (6), and (12) re-
vised; (b), (c), and new (c)(1)(ii) redesignated as (c), (d), and new (c)(1)(iii); (a)(4), (11), and (c)(1)(iii) amended; (a)(13), new (b), (c)(1)(ii) and (3) added; in- terim........................................ 13832
10.224 (b) and (c) revised; in- terim........................................ 13833
10.225 (a) revised; interim.............. 13835 10.226 (b)(4)(ii) amended; in-
terim........................................ 13835 10.227 (a)(2), (3), and (b)(3) amend-
ed; interim................................ 13835 10.228 Revised; interim ................. 56169 10.241 Regulation at 68 FR 14487
undesignated center heading and section correctly added; CFRcorrection......................... 67338
10.242 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
10.243 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
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1048
19 CFR (4–1–12 Edition)
19 CFR—Continued 68 FR Page
Chapter I—Continued 10.244 Regulation at 68 FR 14487
correctly added; CFR correc- tion .......................................... 67338
10.245 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
10.246 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
10.247 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
10.248 Regulation at 68 FR 14487 correctly added; CFR correc- tion .......................................... 67338
10.251 Regulation at 68 FR 14497 undesignated center heading and section correctly added; CFRcorrection......................... 67349
10.252 Regulation at 68 FR 14497 correctlyadded ........................ 67349
10.253 Regulation at 68 FR 14497 correctlyadded ........................ 67349
10.254 Regulation at 68 FR 14497 correctlyadded ........................ 67349
10.255 Regulation at 68 FR 14497 correctlyadded ........................ 67349
10.256 Regulation at 68 FR 14497 correctlyadded ........................ 67349
10.257 Regulation at 68 FR 14497 correctlyadded ........................ 67349
12.104g (a) and (b) amended...51904, 55004 (a) table corrected........................58371
12.145 Undesignated center head- ingandsectionadded ................ 13839
24.22 (g)(2) through (7) redesig- nated as (g)(3) through (8); (b)(3), (4)(iv), (c)(3), (e)(1), (2), (g)(1), new (g)(3), (4), (5), (h) and (i) revised; (d)(3), (4)(ii)(5), new (g)(7) amended; new (g)(2) added........................................ 43627
24.25 (a), (c)(2) and (d) amend- ed ............................................. 43630
101.3 (b)(1) tableamended .....3384, 42587, 42589
102.20 Tableamended.................... 43631 102.21 (e)(2)(ii) and (iii) introduc-
tory text revised......................... 8713 103 Authority citation amend-
ed .................................... 47454, 68169 103.31a Added................................ 68169 103.35 Added; interim.................... 47454 111.1 Amended .............................. 47460 111.13 (b) amended; interim........... 31977 111.19 (c) and (f)(4) revised ............. 43630
19 CFR—Continued 68 FR Page
Chapter I—Continued 111.96 (b) revised; (c) amended .......43630 113 Authority citation amended;
eff. 4-21-03 ................................. 13626 Technical correction ...................14476
113.62 (j) heading revised; (j) ex- isting text designated as (j)(1); (j)(2) added; (l)(1) amended ........ 68169
113.64 (a) amended; (c) revised ....... 68169 113.75 Added; eff. 4–21–03 ................ 13626 113 Appendix C added; eff. 4–21–
03.............................................. 13626 122 Authoritycitation revised ......68170 122.12 (c) amended......................... 68170 122.14 (d)(4) and (5) redesignated
as (d)(5) and (6); new (d)(4) added;new (d)(5) revised............ 68170
122.15 (b) amended................ 42589, 50698 122.33 (a) introductory text and
(1) revised ................................. 68170 122.38 (c) amended; (g) added ......... 68170 122.41 Introductory text revised;
(a) amended; (b) redesignated as (c); new (b) added................... 68170
122.48 (a) revised ........................... 68170 122.48a Added................................ 68170 122.66 Added ................................. 68173 123 Authority citation amend-
ed ............................................. 68173 123.8 (a) and (d) amended ............... 68173 123.91—123.92 (Subpart J)
Added ....................................... 68173 133.27 Revised ............................... 43637
2004 19 CFR 69 FR
Page
Chapter I 4.13 Removed................................ 52599 10 Authority citation amend-
ed ............................................. 63449 10.33 Introductory text amend-
ed ............................................. 52599 10.91 Undesignated center head-
ingandsectionadded ................ 63449 10.228 Revised ............................... 69518 12 Authority citation amend-
ed ............................................. 52599 12.38 Amended .............................. 52599 12.39a Removed ............................ 52813 12.104g (a) amended....................... 12270 18.9 Headingand (a) revised........... 52599 19.12 (d)(4)(ii) amended ................. 52599 24 Authoritycitation revised........35235 24.12 (a)(3) removed....................... 52813 24.16 (b)(7) revised......................... 35235
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1049
List of CFR Sections Affected
19 CFR—Continued 69 FR Page
Chapter I—Continued 101.3 (b)(1) tableamended....41750, 50065,
52599 101.4 (c) amended .......................... 52599 111.13 Regulation at 68 FR 31977
confirmed................................. 52814 122 Policy statement .................... 10151 122.27 (b)(2) amended..................... 52599 122.62 (b) and ((c) amended............. 52599
Technical correction ...................54179 123 Compliancenotification .........51007 123.1 (a) amended .......................... 52599
2005 19 CFR 70 FR
Page
Chapter I 4 Authoritycitationamended ......17850 4.7b Added .................................... 17850 4.64 Added .................................... 17851 7 Authoritycitation revised .........53061 10 Authority citation amend-
ed ............................................. 10872 Authoritycitation revised ...........53061
10.1—10.183 (Subpart A) Des- ignated as new Subpart A; new subpart heading added; in- terim........................................ 10872
10.31 (f) amended; interim ............. 10872 10.36a (a) amended; interim........... 10872 10.191—10.199 (Subpart B) Des-
ignated as new Subpart B; un- designated center heading re- moved; new subpart heading added; interim .......................... 10872
10.201—10.207 (Subpart C) Des- ignated as new Subpart C; un- designated center heading re- moved; new subpart heading added; interim .......................... 10872
10.211—10.217 (Subpart D) Des- ignated as new Subpart D; un- designated center heading re- moved; new subpart heading added; interim .......................... 10872
10.221—10.237 (Subpart E) Des- ignated as new Subpart E; new subpart heading added; in- terim........................................ 10872
10.241—10.257 (Subpart F) Des- ignated as new Subpart F; new subpart heading added; in- terim........................................ 10872
19 CFR—Continued 70 FR Page
Chapter I—Continued 10.301—10.311 (Subpart G) Des-
ignated as new Subpart G; un- designated center heading re- moved; new subpart heading added; interim .......................... 10872
10.401—10.490 (Subpart H) Added; interim..................................... 10873
12 Authority citation amend- ed ............................................. 11540
Authoritycitation revised ...........53061 Authoritycitationamended ........58013
12.104g (a) tableamended .....11540, 61032 12.130—12.132 Undesignated cen-
ter heading removed; in- terim........................................ 58013
12.130 Removed; interim ............... 58013 12.131 Removed; interim ............... 58013 12.132 Removed; interim ............... 58013 18 Authoritycitation revised........53061 19 Authoritycitation revised........53061 24 Authority citation amend-
ed ............................................. 10884 Authoritycitation revised ...........53061
24.23 (c)(6) and (7) added; in- terim........................................ 10884
54 Authoritycitation revised........53062 101 Authoritycitation revised ......53062 102 Authoritycitation revised .....53062,
58013 102.0 Revised; interim................... 58013 102.22 Added; interim.................... 58013 102.23 Added; interim.................... 58013 102.24 Added; interim.................... 58013 102.25 Added; interim.................... 58013 102 Appendixadded; interim .........58015 111 Authoritycitation revised ......53062 114 Authoritycitation revised ......53062 122 Authority citation amend-
ed ............................................. 17851 122.15 (b) amended ............... 22783, 22784 122.41—122.50 (Subpart E) Head-
ing revised................................ 17851 122.49a Revised ............................. 17852 122.49b Redesignated as 122.49d;
new122.49badded ...................... 17852 122.49c Added................................ 17854 122.49d Redesignated from
122.49b ...................................... 17852 122.71—122.80 (Subpart H) Head-
ing revised................................ 17855 122.75a Added................................ 17855 122.75b Added................................ 17855 123 Authoritycitation revised ......53062 128 Authoritycitation revised ......53062 132 Authoritycitation revised ......53062 134 Authoritycitation revised ......53062
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1050
19 CFR (4–1–12 Edition)
2006 19 CFR 71 FR
Page
Chapter I 10 Authority citation amend-
ed ............................................. 11306 10.241 Revised ............................... 44574 10.242 Revised ............................... 44574 10.243 Revised ............................... 44574 10.244 Revised ............................... 44574 10.245 Revised ............................... 44574 10.246 Revised ............................... 44574 10.247 Revised ............................... 44574 10.248 Revised ............................... 44574 10.252 Amended............................. 44583 10.254 Revised ............................... 44583 10.256 (b)(2) revised ....................... 44583 10.401 Amended............................. 76131 10.402 (c) and (s) revised; (o) re-
moved; (n) redesignated as (o); new (n)added ............................ 76131
10.410 (a) amended; (b) revised .......76131 10.411 (a)(2)(vii) and (3) removed;
(b) through (e) redesignated as (c) through (f); new (b) added; heading, (a) introductory text, (2)(iv), new (c) introductory text, (d), (e)(2) and (f) introduc- tory text revised ....................... 76132
10.412 (a) and (b)(1) revised; (d) re- moved ...................................... 76132
10.413 Amended............................. 76132 10.414 Heading, (a) introductory
textand (b) revised ................... 76132 10.415 (a) introductory text re-
vised......................................... 76133 10.416 (a) revised; (b) amended .......76133 10.420 Amended............................. 76133 10.421 Amended............................. 76133 10.422 (a) introductory text
amended; (a)(2)(ii) through (vii) redesignated as (a)(2)(iii) through (viii); new (a)(2)(ii) added; (d)(2) revised .................. 76133
10.424 (a) and (b) amended.............. 76133 10.440 Amended............................. 76133 10.441 (a) amended; (b)(2) and (4)
revised ..................................... 76133 10.442 (a), (c)(2), (d)(1) and (3)
amended; (b) and (d)(2) re- vised......................................... 76133
10.450 Introductory text amend- ed ............................................. 76133
10.455 (a)(1), (b) heading, (1)(i), (2)(i) and (c) revised................... 76133
10.457 (a)(4) amended..................... 76134 10.458 (a) amended......................... 76134 10.460 Amended............................. 76134
19 CFR—Continued 71 FR Page
Chapter I—Continued 10.461 Example 1amended ............. 76134 10.470 (a) heading revised; (a) in-
troductorytextamended .......... 76134 10.473 Itroductory text and (c) re-
vised......................................... 76134 10.474 Amended............................. 76134 10.483 (a)(2) amended; (c) intro-
ductory text revised.................. 76134 10.699 (Subpart J) Added; in-
terim........................................ 11306 12.104g (a) tableamended......3001, 13766,
51726, 69477 (b) tableamended.........................51726
12.140 Revised; interim ................. 61402 101 Authoritycitation revised........2458
Authoritycitationamended ........33236 101.3 (b)(1) tableamended .....2458, 20006,
28262, 33236, 52289 103.35 Regulation at 68 FR 47454
confirmed................................. 54198 122.15 (b) amended................ 20006, 28262 123 Policy statement .................... 62922
2007 19 CFR 72 FR
Page
Chapter I 4.14 (c), (f) and (i)(1) amended ........59167 4.64 (b)(2)(i) amended .................... 48342 4.80a (d) amended.......................... 59168 4.80b (b) amended.......................... 59168 10 Authority citation amend-
ed .........31994, 34369, 35156, 35651, 58515 10.31 (f) amended; interim ...31994, 35651,
58515 10.36a (a) amended; interim........... 31995 10.37 Amended .............................. 59168 10.236 (b) introductory text and
(1) amended .............................. 59168 10.256 (b)(1) amended..................... 59168 10.311 (a), (b) and (c) amended ........59168 10.501—10.570 (Subpart I) Added;
interim..................................... 31995 10.699 Heading revised; (a), (b) in-
troductory text and (c) intro- ductory text amended; (d)(2) redesignated as (d)(3); new (d)(2) added ............................... 29250
10.701—10.712 (Subpart K) Added; interim..................................... 35156
10.761—10.788 (Subpart M) Added; interim..................................... 35651
10.801—10.827 (Subpart N) Added; interim..................................... 58515
10.841—10.850 (Subpart O) Added; interim..................................... 34369
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1051
List of CFR Sections Affected
19 CFR—Continued 72 FR Page
Chapter I—Continued 12.39 (b)(4) and (e)(1) amended........59168 12.104g (a) tableamended ....31177, 38474,
53416, 54539 12.155 Undesignated center head-
ing and section added; eff. 4–5– 07.............................................. 10005
(d) correctlyamended ..................11944 19.4 Heading and (b)(8)(iii)
amended................................... 59168 24.17 Heading revised; (a) through
(d) amended; (a)(12) and (13) re- moved; (a)(14) redesignated as new(a)(12) ................................ 31723
24.22 (b)(1)(i), (2)(i), (c)(1), (d)(1), (e)(1), (2), (f), (g)(1)(i), (ii), (5)(v), (i)(7) and (8) amended; (g)(2) table revised...................... 3733
24.23 (a), (c)(1) introductory text, (2)(i), (3) and (5) amended; (b)(1)(i)(A) and (2) revised; (b)(3) and (4) added .................... 31723
(c)(6) added; interim.....................32003 (c)(8) added; interim.....................58521
102 Authoritycitation revised ......58522 102.0 Amended; interim ................ 58522 103.1 Amended .............................. 52782 111.1 Amended .............................. 59168 111.5 (a) and (b) amended ............... 59168 111.13 (f) amended ......................... 59168 111.17 (b) amended......................... 59168
(c) amended..................................59169 111.19 (c) amended .......................... 3734
(d)(2), (e) and (f) introductory textamended ............................59169
111.23 (b)(2) introductory text and (iii) amended ............................ 59169
111.24 Amended............................. 59169 111.25 Amended............................. 59169 111.26 Amended............................. 59169 111.27 Amended............................. 59169 111.29 (b)(1) amended..................... 59169 111.30 (c) amended......................... 59169 111.31 (a) and (b) amended.............. 59169 111.32 Amended............................. 59169 111.34 Amended............................. 59169 111.38 Amended............................. 59169 111.51 (a) amended......................... 59169 111.66 Amended............................. 59169 111.69 Amended............................. 59169 111.70 Amended............................. 59169 111.71 Amended............................. 59169 111.72 Amended............................. 59169 111.74 Amended............................. 59169 111.75 Amended............................. 59169 111.76 (b) amended......................... 59169 111.77 Amended............................. 59169
19 CFR—Continued 72 FR Page
Chapter I—Continued 111.81 Amended............................. 59169 111.96 (c) amended .......................... 3734 113.14 Amended............................. 59169 113.15 Amended............................. 59169 113.38 (c)(1) and (4) amended .......... 59169 113.39 (a) introductory text and
(b) amended .............................. 59169 113.62 (d) amended; eff. 5–1–07 .......... 4429 113.64 (a) amended......................... 31724 122.15 (b) amended ........................ 59943 122.49a (a) amended; (b)(1) and (2)
revised ..................................... 48342 122.75a (b)(1) and (3) revised ........... 48344 123 Policy statement ....2435, 8109, 18574,
25965, 39312, 63805 133.1 (a) amended .......................... 59169 133.2 Introductory text, (e) intro-
ductory text and (f) amend- ed ............................................. 59170
133.4 (a) and (c) amended ............... 59170 133.6 Introductory text and (b)
amended................................... 59170 133.7 (a) introductory text, (3) and
(b) amended .............................. 59170 133.12 Introductory text amend-
ed ............................................. 59170 133.13 (b) amended ........................ 59170 133.15 Amended............................. 59170 133.26 Amended............................. 59170 133.32 Introductory text amend-
ed ............................................. 59170 133.35 (a) and (b)(2) amended.......... 59170 133.36 Introductory text and (b)
amended................................... 59170 133.37 (b) and (c)(3) amended.......... 59170 133.43 (d)(1)(ii) amended................ 59170
2008 19 CFR 73 FR
Page
Chapter I 0.1 (a)(1) amended ......................... 40724 0.2 Headingand (a) amended .........40724 4 Authoritycitationamended .....12634,
40724, 71779 4.0 (c) amended ............................. 40725 4.7 (b)(2) revised; (e) amended........71779 4.7a (f) amended............................ 71779 4.7c Added .................................... 71779 4.7d Added .................................... 71779 4.22 Amended................................ 12634 4.60 (b)(2) removed; (b)(3) and (4)
redesignated as new (b)(2) and (3)............................................. 40725
4.80 (a)(2), (d) and (e) revised.......... 40725 4.82 (c) amended............................ 40725
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1052
19 CFR (4–1–12 Edition)
19 CFR—Continued 73 FR Page
Chapter I—Continued 4.87 (a) amended............................ 40725 4.88 (a) amended............................ 40725 4.90 (d) amended............................ 40725 4.92 Amended................................ 40725 4.94 (b) amended............................ 60944 7.2 (c) amended ............................. 40725 7.3 (f)(1) amended.......................... 40725 7.4 Amended ................................. 40725 10 Authority citation amend-
ed ............................................. 33678 Regulation at 72 FR 58515 con-
firmed.......................................42681 Regulation at 72 FR 35651 con-
firmed.......................................45354 Regulation at 72 FR 34369 con-
firmed.......................................56725 10 Regulation at 72 FR 35156 con-
firmed; eff. 4–30–08..................... 16754 10.16 (b) introductory text and (3)
revised; (c) introductory text amended; (c)(3) removed; (c)(4) and (5) redesignated as new (c)(3) and (4) .............................. 33300
10.31 (f) amended; interim ............. 33678 Regulation at 72 FR 58515 con-
firmed.......................................42681 Regulation at 72 FR 35651 con-
firmed.......................................45354 10.581—10.625 (Subpart J) Re-
vised; interim ........................... 33678 10.701—10.712 (Subpart K) Regula-
tion at 72 FR 35156 confirmed; eff. 4–30–08................................. 16754
10.761—10.788 (Subpart M) Regu- lation at 72 FR 35651 con- firmed ...................................... 45354
10.761 Amended............................. 45354 10.769 (i) revised; (o) removed ........45354 10.770 (a)(2) amended..................... 45354 10.785 Removed; new 10.785 redes-
ignated from10.786.................... 45354 10.786 Redesignated as new 10.785;
new 10.786 redesignated from 10.787 ........................................ 45354
10.787 Redesignated as new 10.786; new 10.787 redesignated from 10.788 ........................................ 45354
10.788 Redesignated as new 10.787 ........................................ 45354
10.801—10.827 (Subpart N) Regula- tion at 72 FR 58515 con- firmed ...................................... 42681
10.804 (a)(2)(vi) correctly amend- ed ............................................. 42681
10.822 (b) correctlyamended .........42681
19 CFR—Continued 73 FR Page
Chapter I—Continued 10.841—10.850 (Subpart O) Regula-
tion at 72 FR 34369 confirmed; headingamended...................... 56725
10.841 Revised ............................... 56725 10.842 (p) revised ........................... 56725 10.843 Introductory text, (b), (c)
and (d) revised; (e) through (k) added........................................ 56725
10.844 (a)(4)(iii), (iv) and (v) redes- ignated as (a)(4)(iv), (v) and (vi); new (a)(4)(iii) added; (a)(2)(iii), (3), (4)(i) introduc- tory text, (ii) introductory text and new (v) introductory text revised; new (a)(4)(vi), (5)(ii)(D)and (c)(2) amended ......56727
10.846 Revised ............................... 56728 10.847 (a)(1) through (5) revised;
(a)(6) through (12) added ............ 56728 12 Authority citation amend-
ed .................................... 23342, 49937 12.3 (b)(2) and (c) amended............. 71780 12.38 Amended .............................. 40725 12.104b (a) amended....................... 40725 12.104g (a) tableamended .............. 54313 12.104j Added ................................ 23342 12.140 Revised ............................... 20784
Undesignated center heading amended; interim .....................49937
12.142 Added; interim.................... 49937 18.5 (a) amended; (g) added ............ 71780 18.7 (a) amended............................ 40725 24.3a Heading, (a), (b), (c)(5),
(d)(1)(vii), (2)(i) introductory text, (H) and (ii) amended; (c)(1) and (d)(1) introductory text revised .............................. 40726
24.23 (c)(9) added; interim.............. 33690 Regulation at 72 FR 58521 con-
firmed.......................................42681 24.24 (e)(1)(ii), (2)(iii), (4)(i) and (g)
amended................................... 40726 101.6 Introductory text, (a) intro-
ductory text and (b) through (g) amended; (a)(2) through (9) redesignated as (a)(3) through (10); new (a)(2) added ................. 40726
102 Regulation at 72 FR 58522 con- firmed ...................................... 42681
102.0 Regulation at 72 FR 58522 confirmed................................. 42681
Amended .....................................45354 102.20 Introductory text and table
correctlyamended.................... 64519 102.21 (a) through (d), (b)(5) and (e)
tableamended .......................... 64538
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1053
List of CFR Sections Affected
19 CFR—Continued 73 FR Page
Chapter I—Continued (e) table corrected ........................66171
103 Authority citation amend- ed ............................................. 71780
103.31 (e) heading, (1), (2) and (3) amended................................... 40726
103.31a Revised ............................. 71780 113.62 (k)amended ........................ 20785
(j), (k) and (l) redesignated as (k), (l) and (m); new (j) added; new (k), (m)(1), (4) and (5) amended ................................................. 71781
113.63 (g) and (h) redesignated as (h) and (i); new (g) added ............ 71781
113.64 (c) through (g) redesig- nated as (d) and (h) through (k); new (c), (e), (f) and (g) added; new (d)amended ....................... 71781
113.73 (c) and (d) redesignated as (d) and (e); new (c) added............ 71781
113 AppendixDadded.................... 71781 115.6 (c) amended .......................... 40727 122 Authority citation amend-
ed ............................................. 68309 122.0 Revised ................................ 68309 122.12 (c) revised ........................... 68309 122.14 (a) and (b) revised ................ 68309 122.15 (b) tableamended .......35340, 52578 122.22 Revised ............................... 68310 122.23 Heading, (a)(1) introduc-
tory textand (b) revised ............ 68312 122.24 (b) amended; eff. 4–7–08 ........12262
Heading, (a) and (b) heading re- vised; (b) amended.....................68312
122.25 (d)(1) introductory text and (4) introductory text amend- ed ............................................. 68312
122.26 Revised ............................... 68312 122.31 Revised ............................... 68312 122.32 Revised ............................... 68313 122.48a (c)(2) amended ................... 71782 122.61 (a) introductory text re-
vised......................................... 68313 122.154 (a) revised; (d) added .......... 68313 123 Authority citation amend-
ed ............................................. 40727 123.92 (c)(2) amended..................... 71782 134.3 (a) and (b) introductory text
amended................................... 40727
2009 19 CFR 74 FR
Page
Chapter I 4 Authoritycitationamended ........2836 4.7 (b)(2) amended; (b)(5) re-
moved ...................................... 52677
19 CFR—Continued 74 FR Page
Chapter I—Continued 4.7b (a) amended; interim ......2836, 25388 4.14 (a) revised; (d), (e), (f), (h) and
(j)(1) amended........................... 53652 10.817 (a)(2) revised; interim..........23951
Regulation at 74 FR 23951 con- firmed.......................................68680
10.822 (a)(2) revised; interim..........23951 Regulation at 74 FR 23951 con-
firmed.......................................68680 12 Authority citation amend-
ed............................................... 2846 12.104g (a) tableamended.......2843, 10483 12.151 Added;interim...................... 2846 12.155 Undesignated center head-
ingandsection removed............ 48852 19 Authority citation amend-
ed ............................................. 68683 19.6 (a)(1), (b)(1), (2), (c),
(d)(1)(i)(A), (2), (3), (4), (5) and (e) amended; (d)(1)(ii) revised; (d)(1)(iii) added ......................... 68684
19.12 (a)(1), (3), (b)(1), (2), (c)(1), (3), (d)(1), (2), (ii), (4)(i), (ii), (iii), (5), (e), (f)(1), (2), (5) through (9), (g), (h)(1), (3), (i) and (j) amended; (d)(3) and (h)(2) revised............................. 68684
19.36 (a), (b), (c), (f) and (g) amend- ed; (e) revised............................ 68685
24.24 (c)(8) introductory text, (ii), (d)(3) introductory text, (e)(2)(i), (ii), (4)(i), (ii), (iii), (iv) introductory text, (A), (B)(1), (2), (3), (4), (5), (C), (g), (h)(1), (2) and (3) amended; (c)(8)(i), (e)(1)(ii), (2)(iii) and (3)(ii) re- vised......................................... 61269
101.3 (b)(1) amended ....23111, 28602, 63981 101.5 Revised ................................ 64601 111.2 (b)(2)(i)(C) revised................. 69018 111.13 (f) revised............................ 52401 113.62 (k)(1) amended .................... 69018 113 Appendix D correctly re-
vised......................................... 68377 115.6 Revised ................................ 36926 122 Authority citation amend-
ed............................................... 2836 122.15 (b) tableamended ................. 7647
(b) amended ...............28602, 53882, 53883 122.48a (a) amended; (e) re-
moved ...................................... 52677 122.49a (a) amended; interim........... 2836
(a) amended; interim....................25388 123.91 (a) amended; (e) re-
moved ...................................... 52677
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1054
19 CFR (4–1–12 Edition)
19 CFR—Continued 74 FR Page
Chapter I—Continued 123.92 (a) amended; (e) re-
moved ...................................... 52677
2010 19 CFR 75 FR
Page
Chapter I Chapter I Heading revised............. 12445 4.2 (a) through (d) amended ........... 69585 4.3 (a)(3) and (b)(2) amended .......... 69585 4.9 (a) and (b) amended .................. 69585 4.12 (a)(5)(a) redesignated as
(a)(5)......................................... 52450 4.60 (a), (3), (b)(1), (c), (d) and (e)
amended................................... 69585 10 Regulation at 73 FR 33678 con-
firmed ...................................... 50698 Authoritycitation revised ...........52450
10.31 Regulation at 73 FR 33678 confirmed; (f) amended ............. 50698
(g) amended .................................52450 10.36 (a), (b) and (c) amended.......... 52450 10.121 Revised ............................... 69585 10.191 (b)(1) and (2)(iv) amend-
ed ............................................. 52450 10.195 (b) introductory text and
(1) amended .............................. 52450 10.411 (a)(2)(vi) amended ............... 52450 10.442 (d)(1) amended..................... 52450 10.470 (a) introductory text
amended................................... 52450 10.581—10.625 (Subpart J) Regula-
tion at 73 FR 33678 con- firmed ...................................... 50698
10.582 (d)(2) amended..................... 50698 10.583 (c) amended......................... 50699 10.592 (d)(1) amended..................... 50699 10.593 (b)(3) and (p) amended.......... 50699 10.595 (d)(2) amended..................... 50699 10.598 (c)(1)(ii) and (3) revised ........50699 10.606 Revised ............................... 50699 10.607 Revised ............................... 50699 10.608 Heading revised; amend-
ed ............................................. 50700 10.616 (a) introductory text and
(4) amended .............................. 50700 10.617 (b)(3)(ii) amended................ 50700 10.625 (b) introductory text, (c)
introductory text and (d) re- vised......................................... 50700
10.809 (d)(7) and (n)amended.......... 52450 10.811 (a)(1) amended..................... 52450 12 Regulation at 74 FR 2846 con-
firmed ...................................... 13677 Authoritycitation revised ...........52450
19 CFR—Continued 75 FR Page
Chapter I—Continued Regulation at 73 FR 49937 con-
firmed.......................................52455 12.1 (a) amended............................ 52450 12.3 (a) amended............................ 52451 12.8 (a) amended............................ 52451 12.74 Heading, (a), (b)(1), (c)(3)(iii)
and (iv) revised; (b)(2), (c)(1), (2), (3)(i), (ii), (d) and (e) amend- ed ............................................. 52451
12.104g (a) tableamended .............. 64655 12.112 (b) amended ........................ 52451 12.123 (b) amended ........................ 52451 12.140 Regulation at 73 FR 49937
confirmed................................. 52455 12.142 Regulation at 73 FR 49937
confirmed................................. 52455 12.151 Regulation at 74 FR 2846
confirmed; eff. 4–22–10 ............... 13677 18 Authority citation amend-
ed ............................................. 52451 18.11 (e) amended .......................... 52451 24.23 Regulation at 73 FR 33690
confirmed................................. 50698 (c)(9) amended..............................50700
101.3 (b)(1) tableamended.....24393, 52451 103.31 (e)(2) amended..................... 52452 111.13 (a), (b), (c) and (e) amend-
ed ............................................. 52458 118.3 Amended .............................. 52452 122.42 (b)(2) amended..................... 52452
2011 19 CFR 76 FR
Page
Chapter I 4.7 Heading, (b)(3)(i) and (4) intro-
ductory text revised; (a), (b)(1), (2), (4)(i), (ii), (4)(ii)(B), (C), (d)(1)(ii) and (e) amended........... 27608
4.7a (a), (b), (c)(1), (2)(ii), (iii), (3) introductory text, (4) intro- ductory text, (xv) introductory text, (d), (e)(1) and (f) amend- ed ............................................. 27609
4.8 (a) and (b) amended .................. 27609 4.22 Amended................................ 68067 4.30 (n) revised .............................. 27609 10 Authority citation amend-
ed ................................................ 701 Regulation at 76 FR 701 con-
firmed.......................................65366 Authoritycitationamended ........68072
10.31 (f) amended; interim ................ 701 Regulation at 76 FR 701 con-
firmed.......................................65366 (f) amended; interim ....................68072
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1055
List of CFR Sections Affected
19 CFR—Continued 76 FR Page
Chapter I—Continued 10.861—10.889 (Subpart P) Added;
interim........................................ 701 Regulation at 76 FR 701 con-
firmed.......................................65366 10.901—10.934 (Subpart Q) Added;
interim..................................... 68072 12 Regulation at 70 FR 58013 con-
firmed ...................................... 14584 Technical correction ...................16531
12.104g (a) tableamended......3014, 13880, 74691, 74695
12.130 Regulation at 70 FR 58013 confirmed................................. 14584
12.131 Regulation at 70 FR 58013 confirmed................................. 14584
12.132 Regulation at 70 FR 58013 confirmed................................. 14584
24.23 (c)(10) corrected; interim .........708 Regulation at 76 FR 708 con-
firmed.......................................65366 (c)(11) added; interim ...................68083
101.5 Revised ................................ 22805 102 Regulation at 70 FR 58013 con-
firmed ...................................... 14584 Technical correction ...................16531
102.0 Regulation at 70 FR 58013 confirmed................................. 14584
102.20 Table corrected; CFR cor- rection ..................................... 45402
Tableamended.............................54696 102.21 (c)(3)(ii) revised; (e)(1) table
amended................................... 54697
19 CFR—Continued 76 FR Page
Chapter I—Continued 102.22 Regulation at 70 FR 58013
confirmed................................. 14584 102.23 Regulation at 70 FR 58013
confirmed; (a) revised ............... 14584 102.24 Regulation at 70 FR 58013
confirmed................................. 14584 102.25 Regulation at 70 FR 58013
confirmed................................. 14584 102 Regulation at 70 FR 58015 con-
firmed;Appendixamended........14584 122.15 (b) amended ............... 30823, 31824 122.153 Revised ............................... 5060 122.154 (b)(2) revised ....................... 5061 123 Heading revised; authority ci-
tationamended.......................... 6689 123.71—123.76 (Subpart H) Re-
moved ........................................ 6689
2012 (Regulations published from January 1,
2012, through April 1, 2012)
19 CFR 77 FR Page
Chapter I 10 Authority citation amend-
ed .................................... 10369, 15948 10.31 (f) amended; interim ............. 15948 10.121 (b) revised ........................... 10369 10.1001—10.34 (Subpart R) Added;
interim..................................... 15948 24.23 (c)(12) added; interim ............ 15959
Æ
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