[Title 19 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2008 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          19


          Parts 0 to 140

                         Revised as of April 1, 2008


          Customs Duties
          



________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of April 1, 2008
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

          U.S. GOVERNMENT OFFICIAL EDITION NOTICE

          Legal Status and Use of Seals and Logos
          
          
          The seal of the National Archives and Records Administration 
              (NARA) authenticates the Code of Federal Regulations (CFR) as 
              the official codification of Federal regulations established 
              under the Federal Register Act. Under the provisions of 44 
              U.S.C. 1507, the contents of the CFR, a special edition of the 
              Federal Register, shall be judicially noticed. The CFR is 
              prima facie evidence of the original documents published in 
              the Federal Register (44 U.S.C. 1510).

          It is prohibited to use NARA's official seal and the stylized Code 
              of Federal Regulations logo on any republication of this 
              material without the express, written permission of the 
              Archivist of the United States or the Archivist's designee. 
              Any person using NARA's official seals and logos in a manner 
              inconsistent with the provisions of 36 CFR part 1200 is 
              subject to the penalties specified in 18 U.S.C. 506, 701, and 
              1017.

          Use of ISBN Prefix

          This is the Official U.S. Government edition of this publication 
              and is herein identified to certify its authenticity. Use of 
              the 0-16 ISBN prefix is for U.S. Government Printing Office 
              Official Editions only. The Superintendent of Documents of the 
              U.S. Government Printing Office requests that any reprinted 
              edition clearly be labeled as a copy of the authentic work 
              with a new ISBN.

              
              
          U . S . G O V E R N M E N T P R I N T I N G O F F I C E

          ------------------------------------------------------------------

          U.S. Superintendent of Documents  Washington, DC 
              20402-0001

          http://bookstore.gpo.gov

          Phone: toll-free (866) 512-1800; DC area (202) 512-1800

[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 19:
          Chapter I--Bureau of Customs and Border Protection, 
          Department of Homeland Security; Department of the 
          Treasury                                                   3
  Finding Aids:
      Table of CFR Titles and Chapters........................     797
      Alphabetical List of Agencies Appearing in the CFR......     815
      Chapter I Subject Index.................................     825
      List of CFR Sections Affected...........................     941

[[Page iv]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 19 CFR 0.1 refers to 
                       title 19, part 0, section 
                       1.

                     ----------------------------

[[Page v]]



                               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 agencies 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 subdivided 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 determine 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, 2008), 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 
Register 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 usually 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

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments 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, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2001 published in seven separate 
volumes. For the period beginning January 1, 2001, a ``List of CFR 
Sections Affected'' is published at the end of each CFR volume.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    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 published 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.
    Regulations containing properly approved incorporations by reference 
in this volume are listed in the Finding Aids at the end of their CFR 
volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
the Finding Aids of this volume as an approved incorporation by 
reference, please contact the agency that issued the regulation 
containing that incorporation. If, after contacting the agency, you find 
the material is not available, please notify the Director of the Federal 
Register, National Archives and Records Administration, Washington DC 
20408, or call 202-741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. The CFR Index also contains the parallel table of 
statutory authorities and agency rules. A list of CFR titles, chapters, 
subchapters, and parts and an alphabetical list of agencies publishing 
in the CFR.
    An index to the text of ``Title 3--The President'' is carried within 
3 CFR.
    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 Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

[[Page vii]]


REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected].

SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call toll-free, 
866-512-1800, or DC area, 202-512-1800, M-F 8 a.m. to 4 p.m. e.s.t. or 
fax your order to 202-512-2250, 24 hours a day. For payment by check, 
write to: US Government Printing Office - New Orders, P.O. Box 979050, 
St. Louis, MO 63197-9000. For GPO Customer Service call 202-512-1803.

ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers, Weekly Compilation of Presidential 
Documents and the Privacy Act Compilation are available in electronic 
format at www.gpoaccess.gov/nara (``GPO Access''). For more information, 
contact Electronic Information Dissemination Services, U.S. Government 
Printing Office. Phone 202-512-1530, or 888-293-6498 (toll-free). E-
mail, [email protected].
    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.archives.gov/federal-
register. The NARA site also contains links to GPO Access.

    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    April 1, 2008.







[[Page ix]]



                               THIS TITLE

    Title 19--Customs Duties is composed of three volumes. The first two 
volumes, parts 0 to 140 and parts 141 to 199 contain the regulations in 
Chapter I--Bureau of 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--Bureau of 
Immigration 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, 2008.

    A Subject Index to Chapter I--Bureau of Customs and Border 
Protection, Department 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 Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.


[[Page 1]]



                        TITLE 19--CUSTOMS DUTIES




                   (This book contains parts 0 to 140)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Bureau of Customs and Border Protection, 
  Department of Homeland Security, Department of the 
  Treasury..................................................           3

[[Page 3]]



   CHAPTER I--BUREAU OF 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........          77
10              Articles conditionally free, subject to a 
                    reduced rate, etc.......................          83
11              Packing and stamping; marking...............         310
12              Special classes of merchandise..............         316
18              Transportation in bond and merchandise in 
                    transit.................................         371
19              Customs warehouses, container stations and 
                    control of merchandise therein..........         389
24              Customs financial and accounting procedure..         425
54              Certain importations temporarily free of 
                    duty....................................         480
101             General provisions..........................         481
102             Rules of origin.............................         494
103             Availability of information.................         540
111             Customs brokers.............................         561
112             Carriers, cartmen, and lightermen...........         585
113             Customs bonds...............................         593
114             Carnets.....................................         620
115             Cargo container and road vehicle 
                    certification pursuant to international 
                    customs conventions.....................         624
118             Centralized examination stations............         634
122             Air Commerce regulations....................         639
123             Customs relations with Canada and Mexico....         710
125             Cartage and lighterage of merchandise.......         738
127             General order, unclaimed, and abandoned 
                    merchandise.............................         742

[[Page 4]]

128             Express consignments........................         750
132             Quotas......................................         754
133             Trademarks, trade names, and copyrights.....         762
134             Country of origin marking...................         778
135-140

[Reserved]

[[Page 5]]



PART 0_TRANSFERRED OR DELEGATED AUTHORITY--Table of Contents




Sec.
0.1 Customs revenue function regulations issued under the authority of 
          the Departments of the Treasury and Homeland Security.
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.



Sec. 0.1  Customs revenue function regulations 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 delegated to 
the Secretary of Homeland Security the authority to prescribe all 
Customs regulations relating to customs revenue functions, except that 
the Secretary of the Treasury retains the sole authority to approve such 
Customs regulations concerning subject matters listed in paragraph 
1(a)(i) of the order. Regulations 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 published in the Federal Register, the preamble of the document 
accompanying the regulation will clearly indicate that it is being 
issued in accordance with paragraph (a)(1) of this section.
    (b) Regulations with respect to which the Department of Homeland 
Security is authorized to sign for the Department of the Treasury. (1) 
By Treasury Department Order No. 100-16, set forth in the appendix to 
this part, the Secretary of the Treasury delegated to the Secretary of 
Homeland Security the authority to prescribe and approve regulations 
relating to customs revenue functions on behalf of the Secretary of the 
Treasury when the subject matter of the regulations is not listed in 
paragraph 1(a)(i) of the order. Such regulations 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 published in the Federal Register, the preamble of the document 
accompanying the regulation will clearly indicate that it is being 
issued in accordance with paragraph (b)(1) of this section.
    (c) Sole signature by Secretary of the Treasury. (1) Pursuant to 
Treasury Department Order No. 100-16, set forth in the appendix to this 
part, the Secretary 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 regulations of both Departments.
    (2) When a regulation described in paragraph (c)(1) of this section 
is published in the Federal Register, the preamble of the document 
accompanying the regulation will clearly indicate that the regulation is 
being issued in accordance with paragraph (c)(1) of this section.



Sec. 0.2  All other Customs regulations issued under the authority of the Department of Homeland Security.

    (a) The authority of the Secretary of the Treasury with respect to 
Customs regulations that are not related to customs revenue functions 
was transferred to the Secretary of Homeland Security pursuant to 
section 403(1) of the Homeland Security Act of 2002. Such regulations 
are signed by the Secretary of Homeland Security (or his or her 
delegate) and are the official regulations of the Department of Homeland 
Security.

[[Page 6]]

    (b) When a regulation described in paragraph (a) of this section is 
published 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.



  Sec. Appendix to 19 CFR Part 0--Treasury Department Order No. 100-16

    Delegation from the Secretary of the Treasury to the Secretary of 
Homeland Security 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 section 
412 of the Homeland Security Act of 2002 (Pub. L. 107-296) (Act), it is 
hereby ordered:
    1. Consistent with the transfer of the functions, personnel, assets, 
and liabilities of the United States Customs Service to the Department 
of Homeland Security as set forth in section 403(1) of the Act, there is 
hereby delegated to the Secretary of Homeland Security 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 exceptions and to paragraph 6 of this Delegation of Authority:
    (a)(i) The Secretary of the Treasury retains the sole authority to 
approve any regulations concerning import quotas or trade bans, user 
fees, marking, labeling, copyright and trademark enforcement, and the 
completion 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 programs, and the establishment of recordkeeping 
requirements relating thereto. The Secretary of Homeland Security shall 
provide 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 Committee on Finance every six months.
    (ii) The Secretary of the Treasury shall retain the authority to 
review, modify, or revoke any determination or ruling that falls within 
the criteria set forth in paragraph 1(a)(i), and that is under 
consideration pursuant 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 Secretary of Homeland Security periodically shall identify 
and describe for the Secretary of the Treasury such determinations and 
rulings that are under consideration under sections 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 
Security's exercise of such authority. The Secretary of Homeland 
Security shall provide a copy of these identifications and descriptions 
so made to the Chairman and Ranking Member of the Committee on Ways and 
Means and the Chairman and Ranking Member of the Committee on Finance 
every six months. The Secretary of the Treasury shall list any case 
where Treasury modified or revoked such a determination or ruling.
    (b) Paragraph 1(a) notwithstanding, if the Secretary of Homeland 
Security finds an overriding, immediate, and extraordinary security 
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 taking any 
such action, the Secretary of Homeland Security shall certify in writing 
to the Secretary of the Treasury and to the Chairman and Ranking Member 
of the Committee on Ways and Means and the Chairman and Ranking Member 
of the Committee on Finance the specific reasons therefor. The action 
shall terminate within 14 days or as long as the overriding, immediate, 
and extraordinary security threat exists, whichever is shorter, unless 
the Secretary of the Treasury approves the continued action and provides 
notice of such approval to the Secretary of Homeland Security.
    (c) The Advisory Committee on Commercial 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 Secretary of the Treasury and the 
Secretary of Homeland Security. The COAC shall advise the Secretary of 
the Treasury and the Secretary of Homeland Security jointly.
    2. Any references in this Delegation of Authority 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 intended to create or confer 
any right, privilege, or benefit on any private person, including 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 requires any revocation of any other 
prior Order or Directive of the Secretary of the Treasury, such prior 
Order or Directive is hereby revoked.

[[Page 7]]

    5. This Delegation of Authority is effective May 15, 2003. This 
Delegation is subject to review 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 Committee 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 Delegation of Authority, promulgate regulations, or exercise 
authority at any time based upon the statutory authority reserved to the 
Secretary by the Act.

John W. Snow, Secretary of the Treasury.

                          PARTS 1	3 [RESERVED]



PART 4_VESSELS IN FOREIGN AND DOMESTIC TRADES--Table of Contents




                      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 reporting and entry requirements.
4.4 Panama Canal; report of arrival required.
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 filing of cargo declaration.
4.7a Inward manifest; information required; alternative forms.
4.7b Electronic passenger and crew arrival manifests.
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 receipt.
4.24 Application for refund of tonnage tax.

                      Landing and Delivery of Cargo

4.30 Permits and special licenses for unlading and lading.
4.31 Unlading or transshipment due to casualty.
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 retention on board.
4.40 Equipment, etc., from wrecked or dismantled 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 tonnage.
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 waters.
4.66c Oil pollution by oceangoing vessels.
4.67 Closed ports or places.
4.68 Federal Maritime Commission certificates 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 export declarations; bond.
4.76 Procedures and responsibilities of carriers filing outbound vessel 
          manifest information via the AES.

                           Coastwise Procedure

4.80 Vessels entitled to engage in coastwise trade.
4.80a Coastwise transportation of passengers.

[[Page 8]]

4.80b Coastwise transportation of merchandise.
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 coastwise 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 intermediate 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 traffic; 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 vessels.
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. App. 163;
    Section 4.2 also issued under 19 U.S.C. 1441, 1486;
    Section 4.3 also issued under 19 U.S.C. 288, 1441; 46 U.S.C. App. 
111;
    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); 46 U.S.C. App. 
883a, 883b;
    Section 4.7a also issued under 19 U.S.C. 1498, 1584;
    Section 4.7b also issued under 8 U.S.C. 1221;
    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, 14512, 14513, 14701, 14702, 46 U.S.C. App. 121, 128;
    Section 4.21 also issued under 19 U.S.C. 1441, 46 U.S.C. App. 121-
125, 128, 129, 132, 135;
    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. 
App. 100;
    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. App. 883;
    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. App. 91;
    Section 4.66a also issued under 33 U.S.C. 1321, 46 U.S.C. App. 91;
    Section 4.66b also issued under 33 U.S.C. 407, 1321;
    Section 4.68 also issued under 46 U.S.C. App. 817d, 817e;
    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. App. 91;
    Section 4.75 also issued under 46 U.S.C. App. 91;
    Section 4.80 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 12106; 
46 U.S.C. App. 251, 289, 319, 802, 808, 883, 883-1;
    Section 4.81 also issued under 19 U.S.C. 1442, 1486; 46 U.S.C. 251, 
883;
    Section 4.81a also issued under 46 U.S.C. App. 883;

[[Page 9]]

    Section 4.82 also issued under 19 U.S.C. 293, 294, 46 U.S.C. App. 
123;
    Section 4.83 also issued under 46 U.S.C. App. 91, 111, 123;
    Section 4.84 also issued under 46 U.S.C. App. 883-1;
    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. App. 
316(a);
    Section 4.93 also issued under 19 U.S.C. 1322(a), 46 U.S.C. App. 
883;
    Section 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C. App. 104;
    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, 46 
U.S.C. App. 251;
    Section 4.98 also issued under 31 U.S.C. 9701;
    Section 4.100 also issued under 19 U.S.C. 1706.

    Source: 28 FR 14596, Dec. 31, 1963, unless otherwise noted.

                      Arrival and Entry of Vessels



Sec. 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 
transportation 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, American Samoa, 
Wake, Midway, or Kingman Reef, and other employments for which another 
endorsement is not required), (2) coastwise endorsement (generally, 
entitles a vessel to employment in the coastwise trade, and other 
employments for which another endorsement is not required), (3) Great 
Lakes endorsement (generally, entitles a vessel to engage in the 
coastwise trade on the Great Lakes and their tributary and connecting 
waters, in trade with Canada, and in other employments for which another 
endorsement is not required), (4) fishery endorsement (generally, 
subject to federal and state laws regulating the fisheries, 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 (5) recreational 
endorsement (entitles a vessel to recreational use only). Any other 
terminology used elsewhere in this part to describe the particular 
documentation of a vessel shall be read as synonymous with the 
applicable terminology contained in this paragraph. Generally, any 
vessel of at least 5 net tons and wholly owned by a United States 
citizen or citizens is eligible for documentation except that for a 
coastwise, Great Lakes, or fisheries endorsement a vessel must also be 
built in the United States. Detailed Coast Guard regulations on 
documentation are set forth in Title 46, Code of Federal Regulations, 
Sec. 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 defined by the U.S. Coast Guard 
for purposes of vessel documentation (see subpart 67.03 of title 46, 
Code of Federal Regulations.)
    (f) Arrival of a vessel. The phrase ``arrival of a vessel'' means 
that time 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]

[[Page 10]]



Sec. 4.1  Boarding of vessels; cutter and dock passes.

    (a) Every vessel arriving at a Customs port will be subject to such 
supervision while in port as the port director considers necessary. The 
port director may detail Customs officers to remain on board a vessel to 
secure enforcement 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.
---------------------------------------------------------------------------

    \1-27\ [Reserved]
---------------------------------------------------------------------------

    (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 Animal and Plant Health Inspection Service 
of the U.S. Department of Agriculture, or an agent of the vessel or 
consular officer exclusively for purposes 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 officer 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 Sec. 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 provisions of this paragraph 
shall be subject to Customs and quarantine regulations.
    (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 authorities and taken in charge 
by an officer of the Customs, as follows: (1) To persons on official 
business; (2) to news reporters, newspaper photographers, photographers 
of established motionpicture companies, and broadcasters of established 
radio broadcasting cmmpanies; and (3) in cases of special exigency in 
which the port director 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 business.
    (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 authorized 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 forfeited 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]



Sec. 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 bonded merchandise 
or foreign merchandise for which entry has not been made, the master of 
the vessel shall immediately report that arrival to the nearest Customs 
facility or other location designated by the

[[Page 11]]

port director. The report of arrival, except as supplemented in local 
instructions issued by the port director and made available to 
interested parties by posting in Customs offices, publication in a 
newspaper of general circulation, and other appropriate means, shall be 
made by any means of communication to the port director or to a Customs 
officer assigned to board the vessel. The Customs officer may require 
the production of any documents or papers deemed necessary for the 
proper inspection/examination of the vessel, cargo, passenger, or crew.
    (b) For purposes of this part, ``foreign port or place'' includes a 
hovering vessel, 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 merchandise.
    (c) In the case of certain vessels arriving either in distress or 
for the limited purpose of taking on certain supplies and departing 
within a 24-hour time period without having landed or taken on any 
passengers or other merchandise (see section 441(4), Tariff Act of 1930, 
as amended), the report may be filed by either the master, owner, or 
agent, and shall be in the form and give the information required by 
that statute, except that the report need not be under oath. A derelict 
vessel shall be considered one in distress and any person bringing it 
into port may report its arrival.
    (d) The report of baggage and merchandise required to be made by 
certain passenger vessels making three or more trips a week between U.S. 
and foreign ports and vessels used exclusively as ferryboats carrying 
passengers, baggage, or merchandise (see section 441(2), Tariff Act of 
1930, as amended), is in addition to the required report of arrival, and 
shall 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]



Sec. 4.3  Vessels required to enter; place of entry.

    (a) Formal entry required. Unless specifically excepted by law, 
within 48 hours after the arrival at any port or place in the United 
States, the following vessels are required to make formal entry:
    (1) Any vessel from a foreign port or place;
    (2) Any foreign vessel from a domestic port;
    (3) Any vessel of the United States having merchandise on board 
which is being transported in-bond (not including bonded ship's stores 
or supplies), or foreign merchandise 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 outside the territorial sea.
    (b) Completion of entry. (1) When vessel entry is to be made at the 
customhouse, either the master, licensed deck officer, or purser may 
appear in person during regular working hours to complete preliminary or 
formal vessel entry; or necessary documents properly executed by the 
master or other authorized officer may be delivered at the customhouse 
by the vessel agent or other personal representative of the master.
    (2) The appropriate Customs 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. Customs may 
take local resources into consideration in allowing formal entry to be 
transacted on board vessels or at other mutually convenient approved 
sites and times within or outside of port limits. When services are 
requested to be provided outside the limits of a Customs 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 formal entry will be sufficiently under Customs 
control at the time of entry, and that the expenses incurred by Customs 
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 locations. A master, owner, or agent of a vessel who

[[Page 12]]

desires that entry be made at an optional location will file with the 
appropriate port director an application on Customs Form 3171 and a 
single entry or continuous bond on Customs Form 301 containing the bond 
conditions set forth in Sec. 113.64 of this chapter, in such amount as 
that port director deems appropriate but not less than $1,000. If the 
application is approved, the port director or a designated Customs 
officer will formally 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 inspected or receive clearance from other 
Federal agencies upon arrival in the United States.

[T.D. 00-4, 65 FR 2872, Jan. 19, 2000]



Sec. 4.3a  Penalties for violation of vessel reporting and entry requirements.

    Violation of the arrival or entry reporting requirements provided 
for in this part may result in the master being liable for certain civil 
and criminal penalties, as provided under 19 U.S.C. 1436, in addition to 
other penalties applicable under other provisions of law. The penalties 
include civil monetary penalties for failure to report arrival or make 
entry, and any conveyance used in connection with any such violation is 
subject to seizure and forfeiture. 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 imposed, and the 
merchandise may be seized and forfeited unless properly entered by the 
importer or consignee. The criminal penalties, applicable upon 
conviction, include fines and imprisonment if the master intentionally 
commits 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]



Sec. 4.4  Panama Canal; report of arrival required.

    Vessels which merely transit the Panama Canal without transacting 
any business there shall be required to report their arrival because of 
such transit. The report of arrival shall be made in accordance with 
Sec. 4.2(a).

[T.D. 79-276, 44 FR 61956, Oct. 29, 1979]



Sec. 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 management 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 personnel 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 
business of the United States, or it is ballast. 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 Government 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. Notwithstanding Sec. 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 vessel arriving from abroad shall file a Cargo Declaration, 
Customs Form 1302, or an equivalent form issued by the Department 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 arrival of the vessel. The other 
copy shall be made available for use by the discharging inspector at the 
pier. See Sec. 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 transporting other 
property or passengers, and every vessel so owned or controlled but not 
so manned, whether in ballast or transporting cargo or passengers, shall 
be reported in accordance with Sec. 4.2 and the vessel shall be entered 
in accordance with Sec. 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

[[Page 13]]

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]



Sec. 4.6  Departure or unlading before report or entry.

    (a) No vessel which has arrived within 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 Sec. 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 
penalties 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]



Sec. 4.7  Inward foreign manifest; production on demand; contents and form; advance filing of cargo declaration.

    (a) The master of every vessel arriving in the United States and 
required to make entry shall have on board his vessel a manifest, as 
required by section 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 translation shall be furnished with the 
original and with any required copies. The manifest shall consist of a 
Vessel Entrance or Clearance Statement, Customs Form 1300, and the 
following documents: (1) Cargo Declaration, Customs Form 1302, (2) 
Ship's Stores Declaration, Customs Form 1303, (3) Crew's Effects 
Declaration, Customs Form 1304, or, optionally, a copy of the Crew List, 
Customs and Immigration Form I-418, to which are attached crewmember's 
declarations on Customs Form 5129, (4) Crew List, Customs and 
Immigration Form I-418, and (5) Passenger List, Customs and Immigration 
Form I-418. Any document 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 appropriate. 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 Customs 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 additional copy of the manifest 
shall be available for certification as a traveling manifest (see Sec. 
4.85). The port director 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) Subject to the effective date provided in paragraph (b)(5) of 
this section, and with the exception of any bulk or authorized break 
bulk cargo as prescribed in paragraph (b)(4) of this section, Customs 
and Border Protection (CBP) must receive from the incoming carrier, for 
any vessel covered under paragraph (a) of this section, the CBP-approved 
electronic equivalent of the vessel's Cargo Declaration (Customs Form 
1302), 24 hours before the cargo is laden aboard the vessel at the 
foreign port (see Sec. 4.30(n)(1)). The current approved system for 
presenting electronic cargo declaration information to CBP is the Vessel 
Automated Manifest System (AMS).
    (3)(i) Where a non-vessel operating common carrier (NVOCC), as 
defined in

[[Page 14]]

paragraph (b)(3)(ii) of this section, delivers cargo to the vessel 
carrier for lading aboard the vessel at the foreign port, the NVOCC, if 
licensed by or registered with the Federal Maritime Commission and in 
possession of an International Carrier Bond containing the provisions of 
Sec. 113.64 of this chapter, may electronically transmit the 
corresponding required cargo manifest information directly to Customs 
through the Vessel Automated Manifest System (AMS) that must be received 
24 or more hours before the related cargo is laden aboard the vessel at 
the foreign port (see Sec. 113.64(c) of this chapter); in the 
alternative, the NVOCC must fully disclose and present the required 
manifest information for the related cargo to the vessel carrier which, 
is required to present this information to Customs via the vessel AMS 
system.
    (ii) A non-vessel operating common carrier (NVOCC) means a common 
carrier that does not operate the vessels by which the ocean 
transportation is provided, and is a shipper in its relationship with an 
ocean common carrier. 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 
information required in Sec. 4.7a(c)(4) receives any of this 
information from another party, CBP will take into consideration how, in 
accordance with ordinary commercial practices, 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 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)(4)(ii) of this section are exempt with respect to that 
cargo from the requirement set forth in paragraph (b)(2) of this section 
that a cargo declaration be filed with Customs 24 hours before such 
cargo is laden aboard the vessel at the foreign port. Any carriers of 
bulk or break bulk cargo that are exempted from the filing requirement 
of paragraph (b)(2) of this section must present their cargo 
declarations to Customs 24 hours prior to arrival in the U.S. if they 
are participants in the vessel AMS program, or upon arrival if they are 
non-automated carriers. These carriers must still report 24 hours in 
advance of loading any containerized or non-qualifying break bulk cargo 
they will be transporting.
    (i) A carrier is exempt from the filing requirement of paragraph 
(b)(2) of this section with respect to the bulk cargo it is 
transporting. 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, lumber, 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 purposes of this 
section, break bulk cargo is cargo that is not containerized, but which 
is otherwise packaged or bundled.
    (A) To apply for an exemption, the carrier must submit a written 
request for exemption to the U.S. Customs Service, National Targeting 
Center, 1300 Pennsylvania Ave., NW., Washington, DC 20229. Until an 
application for an exemption is granted, the carrier must comply with 
the 24 hour advance manifest requirement set out in paragraph (b)(2) of 
this section. The written request for exemption must clearly set forth 
information such that Customs may assess whether any security concerns 
exist, such as: The carrier's IRS number; the source, identity 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

[[Page 15]]

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 
members of C-TPAT (The Customs-Trade Partnership Against Terrorism).
    (B) Customs will evaluate each application for an exemption on a 
case by case basis. If Customs, by written response, provides an 
exemption to a break bulk carrier, the exemption is only applicable 
under the circumstances clearly set forth in the application for 
exemption. If circumstances set forth in the approved application 
change, it will be necessary to submit a new application.
    (C) Customs may rescind an exemption granted to a carrier at any 
time.
    (5) Within 90 days of December 5, 2003, all ocean carriers, and 
NVOCCs electing to participate, must be automated on the Vessel AMS 
system at all ports of entry in the United States.
    (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 
registry, coastwise license, or Great Lakes license endorsement, or a 
vessel not so documented but intended to be employed in the foreign, 
coastwise, or Great Lakes trade, or
    (ii) A documented vessel with a fishery license endorsement which 
has a permit to touch and trade (see Sec. 4.15) or a vessel with a 
fishery license endorsement lacking a permit to touch and trade but 
intended to engage in trade--

at the port of first arrival from a foreign country shall declare on 
Customs 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 Customs 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 proviso 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 
separately 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 alteration, including the construction of any major 
component of the hull or superstructure of the vessel, which comes to 
his attention unless the port director is satisfied that the owner of 
the vessel has filed an application for rebuilt 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 information; penalties/liquidated 
damages. Any master who fails to provide manifest information as 
required by this section, or who presents or transmits electronically 
any document required by this section that is forged, altered or false, 
or who fails to present or transmit the information required by this 
section in a timely manner, may be liable for civil penalties as 
provided under 19 U.S.C. 1436, in addition to penalties applicable under 
other provisions of law. In addition, if any non-vessel operating common 
carrier (NVOCC) as defined in paragraph (b)(3)(ii) of this section 
elects to transmit cargo manifest information to Customs electronically 
and fails to do so in the manner and in the time period required by 
paragraph (b)(3)(i) of this section, or electronically transmits any 
false, forged or altered document, paper, manifest or data to Customs, 
such NVOCC may be liable for the payment of liquidated damages as 
provided in Sec. 113.64(c) of this chapter, in addition to any other

[[Page 16]]

penalties applicable under other provisions of law.

[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]



Sec. 4.7a  Inward manifest; information required; alternative forms.

    The forms designated by Sec. 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, 
Customs Form 1303. Less than whole packages of sea or ship's stores may 
be described as ``sundry small and broken stores.''
    (b) Crew's Effects Declaration. (Customs Form 1304). (1) The 
declaration number of the Crew Member's Declaration, Customs 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 Declaration, Customs Form 1304 opposite 
the respective crewmember's name.
    (2) In lieu of describing the articles on Customs Form 1304, the 
master may furnish a Crew List, Customs and Immigration Form I-418, 
endorsed 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 Customs 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 declare, the word ``None'' shall be placed 
opposite his name instead of a declaration number.
    (3) For requirements concerning the preparation of Customs Form 
5129, see subpart 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 (Customs Form 1302 
or a Customs-approved electronic equivalent) must list all the inward 
foreign cargo on board the vessel regardless of the U.S. port of 
discharge, 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 remains aboard a vessel during either direct 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 merchandise. 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 column No. 8 or 9, shall refer to the respective 
bills of lading. Either column No. 8 or column No. 9 shall be used, as 
appropriate. The gross weight in column No. 8 shall be expressed in 
either pounds or kilograms. The measurement in column No. 9 shall be 
expressed according to the unit of measure specified 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 sequence 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 column No. 6 
opposite the bill of lading number. The number of any other bill of 
lading for cargo in that container

[[Page 17]]

also shall be listed in column No. 6 immediately 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 procedure described in paragraph (i), 
a separate list of the bills of lading covering each container on the 
vessel may be submitted on Customs 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 Customs Form 1302, or on the 
separate sheet; and
    (B) The number of each bill of lading covering cargo in a particular 
container, 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 Customs Form 1302 is used, or either opposite or under the number of 
the container if a separate 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 characters in length. The unique bill of lading 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., Directory of Standard Multi-Modal 
Carrier 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. Customs 
processing of the unique identifier will be limited to checking the 
validity of the Standard Carrier Alpha Codes (SCAC) and ensuring that 
the identifier has not been duplicated within a 3-year period. Carriers 
and broker/importers will be responsible for reconciliation of 
discrepancies between manifests and entries. Customs will not perform 
any reconciliation except in a post-audit process.
    (3) For shipment of containerized or palletized cargo, Customs 
officers shall accept a Cargo Declaration which indicates that it has 
been prepared on the basis of information furnished by the shipper. The 
use of words of qualification 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 declaration relating to the 
quantity and description of the cargo is in each instance based on the 
shipper's load and count. I have no knowledge or information which would 
lead me to believe or to suspect that the information furnished by the 
shipper is incomplete, inaccurate, 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 ``shipper's load and count,'' or an appropriate 
abbreviation if similar words are used, is approved: Provided, That 
abbreviation is placed next to each containerized or palletized shipment 
on the declaration and the following statement is placed on the 
delaration:

    The information appearing on this declaration 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 
information 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 paragraphs (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 containing'' are not acceptable. The use of 
an asterisk or other character instead of appropriate abbreviations, 
such as ``SLAC'', is not acceptable.
    (4) In addition to the cargo manifest information required in 
paragraphs

[[Page 18]]

(c)(1)-(c)(3) of this section, for all inward foreign cargo, the Cargo 
Declaration, either on Customs Form 1302, or on a separate sheet or 
Customs-approved electronic equivalent, 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 Customs territory;
    (v) The numbers and quantities from the carrier's ocean bills of 
lading, either master or house, as applicable (this means that the 
carrier must transmit the quantity of the lowest external 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 
information is received from the shipper) and weight of the cargo or, 
for a sealed container, the shipper's declared description and weight of 
the cargo. Generic 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 Operating Common 
Carrier (NVOCC), freight forwarder, container station or other carrier 
is sufficient; for non-consolidated shipments, and for each house bill 
in a consolidated shipment, the identity 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 
contrast, the identity of the carrier, NVOCC, freight forwarder or 
consolidator is not acceptable; 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 forwarder, 
container station or other carrier may be listed as the consignee. For 
non-consolidated shipments, and for each house bill in a consolidated 
shipment, 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 party's identity and contact 
information (address) in the ``Notify Party'' field of the advance 
electronic data transmission to CBP, to the extent that the CBP-approved 
electronic data interchange system is capable of receiving this data. 
The identification number will be a unique number assigned by CBP upon 
implementation of the Automated Commercial Environment);
    (x) The vessel name, country of documentation, and official vessel 
number. (The vessel number is the International Maritime Organization 
number assigned to the vessel);
    (xi) The foreign port where the cargo is laden on board;
    (xii) Internationally recognized hazardous material code when such 
materials are being shipped;
    (xiii) Container numbers (for containerized 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 element relates to the departure of the vessel from the foreign 
port with respect to which the advance cargo declaration is filed (see 
Sec. 4.7(b)(2)); the time frame for reporting this data element will be 
either:
    (A) No later than 24 hours after departure from the foreign port of 
lading,

[[Page 19]]

for those vessels that will arrive in the United States more than 24 
hours after sailing from that foreign port; or
    (B) No later than the presentation of the permit to unlade (Customs 
Form (CF) 3171, or electronic equivalent), for those vessels 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 Sec. 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 requirements of the Immigration and Naturalization Service, United 
States Department of Justice (8 CFR part 251).
    (e) Passenger List. (1) The Passenger List shall be completed in 
accordance with Sec. 4.50 and with the requirements of the Immigration 
and Naturalization Service, U.S. Department of Justice (8 CFR part 231), 
and the following certification shall be placed on its last page:

    I certify that Customs baggage declaration requirements have been 
made known to incoming passengers; that any required Customs baggage 
declarations have been or will simultaneously herewith be filed as 
required by law and regulation with the proper Customs 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 Customs 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 Sec. 4.50.
    (3) If there are no steerage passengers aboard upon arrival, the 
listing of the passengers may be in the form of a vessel ``souvenir 
passenger list,'' or similar list, in which the names of the passengers 
are listed alphabetically and to which the certificate referred to in 
paragraph (e)(1) of this section is attached.
    (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 information; penalties/liquidated 
damages. Any master who fails to provide manifest information as 
required by this section, or who presents or transmits electronically 
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 
addition to penalties applicable under other provisions of law. In 
addition, if any non-vessel operating common carrier (NVOCC) as defined 
in Sec. 4.7(b)(3)(ii) elects to transmit cargo manifest information to 
Customs electronically, and fails to do so as required by this section, 
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 Sec. 113.64(c) of this chapter, in addition to 
other penalties applicable under other provisions of law.

[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]



Sec. 4.7b  Electronic passenger and crew arrival manifests.

    (a) Definitions. The following definitions apply for purposes of 
this section:
    Appropriate official. ``Appropriate official'' means the master or 
commanding officer, or authorized agent, owner, or consignee, of a 
commercial vessel; this term and the term ``carrier'' are sometimes used 
interchangeably.
    Carrier. See ``Appropriate official.''
    Commercial vessel. ``Commercial vessel'' 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

[[Page 20]]

``crew member'' applicable to this section should not be applied in the 
context of other customs laws, to the extent this definition differs 
from the meaning of ``crew member'' contemplated in such other customs 
laws.
    Emergency. ``Emergency'' means, with respect to a vessel arriving at 
a U.S. port due to an emergency, an urgent situation due to a 
mechanical, medical, or security problem affecting the voyage, or to an 
urgent situation affecting the non-U.S. port of destination that 
necessitates a detour to a U.S. port.
    Ferry. ``Ferry'' means any vessel which is being used to provide 
transportation only between places that are no more than 300 miles apart 
and which is being used to transport only passengers 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 
commercial vessel who is not a crew member.
    United States. ``United States'' means the continental United 
States, Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands of the 
United States.
    (b) Electronic arrival manifest--(1) General requirement. Except as 
provided in paragraph (c) of this section, an appropriate official of 
each commercial vessel arriving in the United States from any place 
outside the United States must transmit to Customs and Border Protection 
(CBP) an electronic passenger arrival manifest and an electronic 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 approved by CBP. If the transmission is in US EDIFACT 
format, the passenger manifest and the crew member manifest must be 
transmitted separately; and
    (ii) Must set forth the information specified in paragraph (b)(3) of 
this section.
    (2) Place and time for submission--(i) General requirement. The 
appropriate official must transmit each electronic arrival manifest 
required under paragraph (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 entering 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 emergency 
situation.
    (ii) Amendment of crew member manifests. In any instance where a 
crew member boards the vessel after initial submission of the manifest 
under paragraph (b)(2)(i) of this section, the appropriate 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 transmitted 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 electronic arrival manifest required 
under paragraph (b)(1) of this section must contain the following 
information for all passengers and crew members, except 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:
    (i) Full name (last, first, and, if available, middle);
    (ii) Date of birth;

[[Page 21]]

    (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 information is not required for 
U.S. citizens, lawful permanent residents, crew members, or persons who 
are in transit to a location outside the United States;
    (xiii) Passenger Name Record locator, if available;
    (xiv) Foreign port/place where transportation to the United States 
began (foreign port code);
    (xv) Port/place of first arrival (CBP port code);
    (xvi) Final foreign port/place of destination for in-transit 
passenger and crew member (foreign port code);
    (xvii) Vessel name;
    (xviii) Vessel country of registry/flag;
    (xix) International Maritime Organization number or other official 
number of the vessel;
    (xx) Voyage number (applicable only for multiple arrivals on the 
same calendar day); and
    (xxi) Date of vessel arrival.
    (c) Exceptions. The electronic arrival manifest requirement 
specified in paragraph (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 Defense commercial chartered 
vessel.
    (d) Carrier responsibility for comparing information collected with 
travel document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing 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 document 
was issued.
    (e) Sharing of manifest information. Information contained in 
passenger and crew member manifests 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 17850, Apr. 7, 2005]



Sec. 4.8  Preliminary entry.

    (a) Generally. Preliminary entry allows a U.S. or foreign vessel 
arriving under circumstances that require it to formally enter, to 
commence lading and unlading operations prior to making formal entry. 
Preliminary entry may be accomplished electronically pursuant to an 
authorized electronic data interchange system, or by any other means of 
communication approved by the Customs Service.
    (b) Requirements and conditions. Preliminary entry must be made in 
compliance with Sec. 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 subsequent to arrival of the vessel, is 
conditioned upon the presentation to and acceptance by Customs of all 
forms, electronically or otherwise, comprising a complete manifest as 
provided in Sec. 4.7, except that the Cargo Declaration, Customs Form 
(CF) 1302, must be presented to Customs electronically in the manner 
provided in Sec. 4.7(b)(2). Vessels seeking preliminary entry in 
advance of arrival must do so: By presenting to Customs the electronic 
equivalent of a complete Customs Form 1302 (Cargo Declaration), in the 
manner provided in Sec. 4.7(b), showing all cargo on board the vessel; 
and by presenting Customs Form 3171 electronically no less than 48 hours 
prior to vessel arrival. The CF

[[Page 22]]

3171 will also serve as notice of intended date of arrival. The port 
director may allow for the presentation of the CF 1302 and CF 3171 less 
than 48 hours prior to arrival in order to grant advanced preliminary 
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 effective upon arrival at the port granting preliminary 
entry. Additionally, Customs 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 amended by T.D. 02-62, 67 FR 
66332, Oct. 31, 2002]



Sec. 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 American 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 Sec. 4.0(b)) as well as, when arriving by sea, a vessel 
entitled to be documented except for its size (see Sec. 4.0(c)). The 
formal entry of a foreign vessel arriving within the limits of any 
Customs 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 
Customs.
    (b) Procedures for American vessels. Under certain circumstances, 
American 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 merchandise aboard which is being transported 
in-bond, or when they have unentered foreign merchandise aboard. For the 
purposes of the vessel entry requirements, merchandise transported in-
bond does not include bonded ship's stores or supplies. While American 
vessels transporting unentered foreign merchandise must fully comply 
with the usual formal entry procedures, American vessels carrying no 
unentered foreign merchandise but which have in-bond merchandise aboard 
may satisfy vessel entry requirements by making a required report of 
arrival, and presenting a completed Customs Form 1300 (Vessel Entrance 
or Clearance Statement). Report of arrival as provided in Sec. 4.2 of 
this part, together with presenting a completed Customs Form 1300 
(Vessel Entrance or Clearance Statement), 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 delivered 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 delivery (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 delivered 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 
clearance is granted under Sec. 4.61. It will not be lawful for any 
foreign consul to deliver to the master of any foreign vessel the 
register, or document in lieu thereof, deposited with him in accordance 
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 (section 438, Tariff 
Act of 1930, as amended; 19 U.S.C. 1438).
    (d) Failure to make required entry; penalties. Any master who fails 
to make entry as required by this section or who presents or transmits 
electronically 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 addition 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]

[[Page 23]]



Sec. 4.10  Request for overtime services.

    Request for overtime services in connection with entry or clearance 
of a vessel, including the boarding of a vessel in accordance with Sec. 
4.1 shall be made on Customs Form 3171. (See Sec. 24.16 of this chapter 
regarding pleasure 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 limited to 
the service requested) has been issued (see Sec. 4.30(g)) and 
arrangements are made locally so that the proper Customs officer will be 
notified during official hours in advance of the rendering 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 revoked) unless the carrier 
complies with the provisions of paragraphs (l) and (m) of Sec. 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 Sec. 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]



Sec. 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 articles acquired abroad by officers and members 
of the crew, for which no permit to land has been issued, shall be 
placed under seal, unless the Customs officer is of the opinion that the 
circumstances 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 requires, may issue stores from under seal for consumption on 
board the vessel by its passengers and crew. (See Sec. 4.39.)



Sec. 4.12  Explanation of manifest discrepancy.

    (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 manifested) of merchandise.
    (2) Shortages shall be reported to the port direct by the master or 
agent of the vessel by endorsement on the importer's claim for shortage 
on Customs Form 5931 as provided for in Sec. 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 proper disposition or other corrective action (see Sec. 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 completion of a post entry or 
suitable explanation of corrective action (see Sec. 4.34) on the 
Customs Form 5931.
    (4) The port director shall immediately advise the master or agent 
of those discrepancies which are not reported by the master or agent. 
Notification may be in any appropriate manner, including the furnishing 
of a copy of Customs Form 5931 to the master or agent. The master or 
agent shall satisfactorily resolve the matter within 30 days after the 
date of such notification, or within 60 days after entry of the vessel, 
whichever is later.
    (5)(a) Unless the required notification and explanation is made 
timely and the port director is satisfied that the discrepancies 
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 Sec. 162.31 of this 
chapter). For purposes of this section, the term ``clerical error'' is 
defined as a non-negligent, inadvertent, or typographical mistake in the 
preparation, assembly, or submission (electronically or otherwise) of 
the manifest. However, repeated similar manifest discrepancies by the 
same

[[Page 24]]

parties may be deemed the result of negligence and not clerical error or 
other mistake. For the purpose of assessing applicable penalties, the 
value of the merchandise shall be determined as prescribed in Sec. 
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 director is satisfied that the difference 
between the manifested quantity and the quantity unladen, whether the 
difference constitutes an overage or a shortage, is an ordinary and 
usual difference properly attributable to absorption of moisture, 
temperature, faulty weighing at the port of lading, or other similar 
reason. A correction in the manifest shall not be required because of 
discrepancies between marks or numbers on packages of merchandise and 
the marks or numbers for the same packages as shown on the manifest of 
the importing vessel when the quantity and description of the 
merchandise in such packages are correctly given.
    (c) Manifest discrepancies (shortages and overages) of petroleum and 
petroleum 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]



Sec. 4.13  [Reserved]



Sec. 4.14  Equipment purchases by, and repairs to, American vessels.

    (a) General provisions and applicability. Under section 466, Tariff 
Act of 1930, as amended (19 U.S.C. 1466), purchases for or repairs made 
to certain vessels while they are outside the United States, including 
repairs made while those vessels are on the high seas, are subject to 
declaration, entry and payment of ad valorem duty. This does not apply 
to reimbursement paid to members of the regular crew of a vessel for 
labor expended in making repairs to the vessel. 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 documented under U.S. law for the foreign or coastwise trades, as 
well as those which were previously documented 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 Customs interpretations. Duty is based on actual foreign 
cost. This includes the original foreign purchase price of articles 
which have been imported into the United States and are later sent 
abroad for use. For the purposes of this section, expenditures made in 
American Samoa, the Guantanamo Bay Naval Station, Guam, Puerto Rico, or 
the U.S. Virgin Islands are considered to have been made in the United 
States, and are not subject to declaration, entry or duty. Under 
separate provisions of law, the cost of labor performed, and of parts 
and materials produced 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. Even in 
the absence of any liability for duty, it is still required that all 
repairs and purchases, including those made in Canada, Mexico, and 
Israel, be declared and entered.
    (b) Applicability to specific types of vessels--(1) Fishing vessels. 
As provided in Sec. 4.15, vessels documented under U.S. law with a 
fishery endorsement are subject to vessel repair duties for covered 
foreign expenditures. Undocumented 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 vessels. Vessels normally subject 
to the vessel repair statute because of documentation or intended use 
are not excused from duty liability merely because they are either owned 
or chartered by the U.S. Government.
    (3) Vessels continuously away for two years or longer--(i) Liability 
for expenditures throughout entire absence from U.S. Vessels that 
continuously remain outside the United States for two years or longer 
are liable for duty on any fish nets and netting purchased at any time

[[Page 25]]

during the entire absence. Vessels designed and used primarily for 
transporting 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 duration of their absence 
from the United States.
    (ii) Liability for expenditures made during first six months of 
absence. Except as provided in paragraph (b)(3)(i) of this section, 
vessels that continuously remain 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 absence. See paragraph (h)(3) of 
this section. However, even though some costs might not be dutiable 
because of the six-month rule, all repairs, materials, parts and 
equipment-related expenditures must be declared and entered.
    (c) Estimated duty deposit and bond requirements. Generally, the 
person authorized to submit a vessel repair declaration 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 sufficient value to cover all potential duty on the 
foreign repairs and purchases must be identified by surety, number and 
amount on the vessel repair 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 
paragraph (g) of this section, that same identifying information must be 
identified 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 liability necessarily being subject to full 
consideration of evidence by CBP. CBP officials at the port of arrival 
may consult 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 International 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 authorized agent must submit a vessel repair 
declaration on Customs 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 Customs officer boards the vessel. If no foreign repair-related 
expenses were incurred, that fact must be reported either on the 
declaration form or by approved electronic means. The Customs port of 
arrival receiving either a positive or negative vessel repair 
declaration or electronic equivalent will immediately forward it to the 
appropriate 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 section for which a positive 
declaration has been filed must submit a vessel repair entry on Customs 
Form 226 or transmit its electronic equivalent. The entry must show all 
foreign voyage expenditures for equipment, parts of equipment, repair 
parts, materials and labor. The entry submission must indicate whether 
it provides a complete or incomplete account of covered expenditures. 
The entry must be presented or electronically transmitted by the vessel 
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 supporting 
evidence of cost within stated time limits, including any extensions

[[Page 26]]

granted under this section, is considered 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 submits acceptable evidence that 
final cost information is not yet available, initial or interim cost 
estimates given prior to or after the work was authorized by the 
operator. The proper VRU port of entry may grant one 30-day extension of 
time to submit final cost evidence if a satisfactory written explanation 
of the need for an extension is received before the expiration of the 
original 90-day submission period. All extensions will be issued in 
writing. Inadequate, vague, or open-ended requests 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 & 
Immigration Branch, Office of International 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 Enforcement to begin procedures to 
obtain the needed evidence. That office may also investigate the reason 
for a failure to file or for an untimely submission. 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 section. Extensions granted for the filing of 
necessary evidence may also extend the time for filing Applications for 
Relief (see paragraph (i)(1) of this section).
    (g) Location and jurisdiction of vessel repair unit ports of entry. 
Vessel Repair Units (VRUs) are responsible for processing vessel repair 
entries. VRUs are located in New York, New York; New Orleans, Louisiana; 
and San Francisco, California. The New York unit processes vessel repair 
entries received from ports of arrival on the Great Lakes and the 
Atlantic Coast of the United States north of, but not including, those 
located in the State of Virginia. 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 
Puerto Rico. The San Francisco unit processes 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 submitted to Customs. 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 
paragraphs (h)(1)-(h)(4) of this section.
    (1) Relief under 19 U.S.C. 1466(a). Requests for relief from duty 
under 19 U.S.C. 1466(a) consist of claims that a foreign shipyard 
operation or expenditure is not considered to be a repair or purchase 
within the terms of the vessel repair statute or as determined under 
judicial or administrative interpretations. Example: a claim that the 
shipyard 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 expenditure involves any of the following:
    (i) Stress of weather or other casualty. Relief will be granted if 
good and sufficient 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 outside the United States, to purchase such 
equipment or make those repairs

[[Page 27]]

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 ``casualty'' 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 repaired, 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 
members of the regular crew of the vessel perform any necessary labor in 
connection with such installations.
    (iii) Dunnage. Relief will be granted if any equipment, equipment 
parts, materials, or labor were used for the purpose of providing 
dunnage for the packing 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). Requests 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 outside 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). Requests for relief from duty 
under 19 U.S.C. 1466(h) consist of claims that a foreign shipyard 
operation or expenditure involves any of the following:
    (i) Expenditures on LASH barges. Relief 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 materials. Relief will be granted 
with respect 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 entered the United States.
    (iii) Certain spare parts necessarily installed 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 necessarily 
installed prior to their first entry into the United States with duty 
payment under the appropriate commodity classification(s) as found in 
the Harmonized Tariff Schedule of the United States.
    (i) General procedures for seeking relief--(1) Applications for 
Relief. Relief from the assessment of vessel repair duty will not be 
granted unless an Application 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 Application 
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 paragraph (h) of this section. An 
Application must also state that all repair operations performed aboard 
a vessel during the one-year period prior to the current submission have 
been declared and entered. A valid Application is required to be 
supported by complete evidence as detailed in paragraphs (i)(1)(i)-(vi) 
and (i)(2) of this section. Except as further provided in this 
paragraph, 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 provisions 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 
extension of the time period for filing Applications for Relief as well. 
Applications

[[Page 28]]

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 International 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 Application for Relief is received, the 
duty amount will be determined without regard to any potential claims 
for relief from duty (see paragraph (h) of this section). Each 
Application for Relief must include copies of:
    (i) Itemized bills, receipts, and invoices 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 other items 
listed in the vessel repair entry;
    (ii) Photocopies of relevant parts of vessel logs, as well as of any 
classification society reports which detail damage and remedies;
    (iii) A certification by the senior officer with personal knowledge 
of all relevant circumstances relating to casualty damage (time, place, 
cause, and nature of damage);
    (iv) A certification by the senior officer with personal knowledge 
of all relevant circumstances relating to foreign repair expenditures 
(time, place, and nature of purchases and work performed);
    (v) A certification by the master that casualty-related expenditures 
were necessary to ensure the safety and seaworthiness 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 vessel that are relevant to the request for relief.
    (2) Additional evidence. In addition, copies of any other evidence 
and documents the applicant may wish to provide as evidentiary support 
may be submitted. Elements of applications which are not supported by 
required evidentiary elements will be considered fully dutiable. All 
documents submitted 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 
translation, certified by the translator to be accurate. Upon receipt of 
an Application for Relief by the VRU within the prescribed time limits, 
a determination of duties owed will be made. After a decision is made on 
an Application for Relief by a VRU, the applicant will be notified of 
the right to protest any adverse 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 applicable 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 relevant correspondence from the appropriate 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 repairs described in this section 
without reasonable cause to believe the truth of the statements; or aids 
or procures any false statements regarding any material 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 Customs, is subject to seizure 
and forfeiture and is recoverable from the owner (see Sec. 162.72 of 
this chapter).
    (2) False declaration. If any person required to file a vessel 
repair declaration or entry under this section, knowingly and willfully 
falsifies, conceals or covers up by any trick, scheme, or device a 
material fact, or makes any materially false, fictitious or fraudulent 
statement or representation, or makes or uses any false writing or 
document

[[Page 29]]

knowing the same to contain any materially 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]



Sec. 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 equipment to replace existing vessel equipment, 
the master of the vessel must either clear for that foreign port or 
obtain 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 subject 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.
---------------------------------------------------------------------------

    \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]
---------------------------------------------------------------------------

    (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 arrival, 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 forthwith be 
surrendered to the port director.
    (d) No permit to touch and trade shall be issued to a vessel which 
does not have a Certificate of Documentation with a fishery license 
endorsement.

[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]



Sec. 4.16  [Reserved]



Sec. 4.17  Vessels from discriminating countries.

    The prohibition against imports in, and the penalty of forfeiture 
of, certain vessels from countries which discriminate 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 
Sec. Sec. 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



Sec. 4.20  Tonnage taxes.

    (a) Except as specified in Sec. 4.21, a regular 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, Central America, the West Indies, the Bahama 
Islands, the Bermuda Islands, the coast of South America bordering on 
the Caribbean Sea (considered to include 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, as defined in Sec. 2101 of Title 46) 
that depart a U.S. port or place and return to the same port or place 
without being entered in the United States from another port or place, 
and regular tonnage tax of 6 cents per net ton, not to exceed 30 cents 
per net ton per annum,

[[Page 30]]

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, tonnage 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 
transported 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, without regard to whether the vessel thereafter has proceeded 
to the United States in ballast or with cargo or passengers 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 computed 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 payments at the 
maximum (6 cent) and 5 at the minimum (2-cent) rate during a tonnage 
year, so that the maximum assessment 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 circumstances 
specified in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                     Rate per net ton
                                                                         ---------------------------------------
                           Classes of vessels                                               Special      Light
                                                                            Regular tax       tax        money
----------------------------------------------------------------------------------------------------------------
Vessels of the United States:
  1. Under provisional register, without regard to citizenship of           $.02 or $.06  ..........  ..........
   officers.............................................................
  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          .02 or .06  ..........  ..........
   money................................................................
  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             .02 or .06    \4\ 2.00     \4\ .50
     entering from a foreign port or place where vessels of the U.S. are
     not ordinarily permitted to enter and trade \3a\...................
----------------------------------------------------------------------------------------------------------------
\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 payment 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 sufficient 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.

    (d) Tonnage tax shall be imposed upon a vessel even though she 
enters a port of the United States only for orders.
    (e) The fact that a vessel passes through the Panama Canal does not 
affect the rate of tonnage tax otherwise applicable to the vessel.

[[Page 31]]

    (f) For the purpose of computing tonnage tax, the net tonnage of a 
vessel stated in the vessel's marine document shall be accepted unless 
(1) such statement is manifestly wrong, in which case the net tonnage 
shall be estimated, pending admeasurement of the vessel, or the tonnage 
reported for her by any recognized classification society 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, Customs Form 1002, and on the 
Vessel Entrance or Clearance Statement, Customs Form 1300. For the 
purpose of computing tonnage tax on a vessel with a tonnage mark and 
dual tonnages, the higher of the net tonnages stated in the vessel's 
marine document or tonnage certificate shall be used unless the Customs 
officer concerned is satisfied by report of the boarding officer, 
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 
tonnage 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 interpretation relating to 
the collection of tonnage tax or to the refund of such tax when 
collected erroneously or illegally, and any question of doubt shall be 
referred to him for instructions.
    (h) Any person adversely affected by a decision of the Commissioner 
of Customs relating to the collection of tonnage 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 accordance with the rules of the Court within 2 
years after the cause of action first accrues.

[28 FR 14596, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 4.20, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 4.21  Exemptions from tonnage taxes.

    (a) Tonnage taxes and light money shall be suspended in whole or in 
part whenever the President by proclamation shall so direct.
    (b) The following vessels, or vessels arriving in the circumstances 
as defined below, shall be exempt from tonnage tax and light money:
    (1) It comes into port for bunkers (including 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 complete control and management of the United States or the 
government of a foreign country, and which is not carrying passengers or 
merchandise in trade or, if in ballast, which is not arriving 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 vessel not carrying passengers 
or merchandise in trade.
    (6) It is engaged exclusively in scientific 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 entered a foreign port for fuel or supplies, if it did not carry 
passengers or merchandise 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 license endorsement on its 
vessel document, when towing vessels which are required to make entry.

[[Page 32]]

    (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 transportation of merchandise or passengers, or the 
towing of a vessel other than a vessel in distress, between points in 
the U.S. via a foreign point) (see Sec. Sec. 4.80, 4.80a, 4.80b, and 
4.92).
    (15) It is a vessel entering directly from the Virgin Islands 
(U.S.), American Samoa, the islands of Guam, Wake, Midway, Canton, or 
Kingman Reef, or Guantanamo Bay Naval Station.
    (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 
navigable 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 proceeding between ports in the United States, touched at a 
foreign port under circumstances which would have exempted 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]



Sec. 4.22  Exemptions from special tonnage taxes.

    Vessels of the following nations are exempted by treaties, 
Presidential proclamations, or orders of the Secretary of the Treasury 
from the payment 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
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
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

[[Page 33]]


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 citations affecting Sec. 4.22, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 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 recorded shall be written. This certificate shall constitute 
the official evidence 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 obtained 
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]



Sec. 4.24  Application for refund of tonnage 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 Sec. 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 referred 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 Customs officer to whom payment was made. After verification of the 
pertinent facts asserted in the claim, the application shall be 
forwarded with any necessary report or recommendation to the appropriate 
port director. Applications for refund of special tonnage tax and light 
money (see Sec. 4.20(c)) with the reports and recommendations submitted 
therewith shall be forwarded by the port director to the Commissioner of 
Customs for decision. Any refund authorized by the Port Director under 
paragraph (a) of this section or any refund of special tonnae tax or 
light money authorized by the Commissioner of Customs shall be made by 
the appropriate 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 refund 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 
payments 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 officer at 
each port at which any claimed payment was made verifying the facts and 
showing in each case whether refunds have been authorized.
    (e) The application shall include a certificate by the owner or by 
the owner's agent that payment of tonnage tax at the applicable rate has 
been or will be made for each entry of the vessel on a voyage on which 
that rate is applicable before the end of the current tonnage year, 
exclusive of any payment which has been refunded or which may be 
refunded as a result of such application.
    (f) The owner or operator of the vessel involved, or other party in 
interest, may file with the port Director a petition addressed to the 
Commissioner of Customs for a review of the port director's decision on 
an application for refund of regular tonnage tax. Such petition shall be 
filed in duplicate within 30 days from the date of notice of the

[[Page 34]]

initial decision, shall completely identify the case, and shall set 
forth in detail 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



Sec. 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 Sec. 123.8 of this chapter, and except in the case of a 
vessel exempt from entry or clearance fees under 19 U.S.C. 288, no 
passengers, cargo, baggage, or other article shall be unladen from a 
vessel which arrives directly or indirectly from any port or place 
outside the Customs territory of the U.S., including the adjacent waters 
(see Sec. 4.6 of this part), or from a vessel which transits the Panama 
Canal and no cargo, baggage, or other article shall be laden on a vessel 
destined to a port or place outside the Customs territory of the U.S., 
including the adjacent waters (see Sec. 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 interchange 
system or other means of communication 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 provided in Sec. 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 preliminary or formal entry 
at the second and subsequent ports. Foreign 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 at the second and 
subsequent ports prior to formal entry without the necessity of making 
preliminary entry. In these circumstances, after the master has reported 
arrival of the vessel, the port director may issue the permit or special 
license or may, in his discretion, require the vessel to be boarded, the 
master 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 require delivery of the manifest prior to issuing the 
permit.
    (b) Application for a permit or special license will be made by the 
master, owner, or agent of the vessel on Customs Form 3171, or 
electronically pursuant to an authorized electronic data interchange 
system or other means of communication approved by the Customs Service, 
and will specifically indicate the type of service desired at that time, 
unless a term permit or term special 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 charter arrangement) are required to indicate on the CF 3171 all 
carriers on board the vessel and indicate whether each carrier is 
transmitting its cargo declaration electronically or is presenting it on 
the Customs Form 1302. In the case of a term permit or term special 
license, upon entry of each vessel, a copy of the term permit or special 
license 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 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 special license shall not be 
approved (previously 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 employee 
lists, and the required cash deposit or bond has been filed on Customs

[[Page 35]]

Form 301, containing the bond conditions set forth in Sec. 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 Sec. 113.63 of this chapter relating to basic custodial bond 
conditions, no further bond shall be required solely by reason of the 
unlading or lading at night or on a Sunday or holiday of merchandise or 
baggage covered by bonded transportation entries. Separate bonds shall 
be required if overtime services are requested by different principals.
---------------------------------------------------------------------------

    \62\ ``Before any such special license to unlade shall be granted, 
the master, owner, or agent of such vessel or vehicle, or the person in 
charge of such vehicle, shall be required to deposit sufficient money to 
pay, or to give a bond in an amount to be fixed by the Secretary 
conditioned to pay, the compensation and expenses of the customs 
officers and employees assigned to duty in connection 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 Secretary of the Treasury 
to cover and include the issuance of special licenses for the unlading 
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]
---------------------------------------------------------------------------

    (d) Except as prescribed in paragraph (f) or (g) of this section, a 
separate application for a permit or special license shall be filed in 
the case of each arrival.
    (e) Stevedoring companies and others concerned in lading or unlading 
merchandise, or in removing or otherwise securing it, shall ascertain 
that the applicable preliminary Customs requirements have been complied 
with before commencing such operation, since performance in the absence 
of such compliance 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 revoked by the port director, 
terminated by the carrier, or automatically cancelled by termination of 
the supporting continuous bond, to unlade merchandise, 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, terminated by the carrier, or automatically cancelled by 
termination of the supporting continuous bond, to unlade merchandise, 
passengers, or baggage, or to lade merchandise or baggage during 
overtime hours or on a Sunday or holiday when Customs supervision is 
required. (See Sec. 24.16 of this chapter regarding 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 facilities at the 
place of unlading or lading render the issuance of such special license 
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, containing the bond conditions set 
forth in Sec. 113.64 of this chapter relating to international 
carriers, or cash deposit shall have been given; or
    (3) The merchandise is to be discharged into the custody of the port 
director 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 required application for unlading passengers and 
baggage to be made orally,

[[Page 36]]

and may authorize his inspectors to grant oral permission for unlading 
at any time, and to grant requests on Customs 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 director determines that 
the applicant provides or the terminal at which the applicant will 
unlade the cargo provides (1) sufficient space, capable of being locked, 
sealed, or otherwise secured, 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 adequate number of vehicles, capable of 
being locked, sealed, or otherwise secured, 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 subsequent to such issuance that the requirements 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 director, 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, having 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, storage 
and delivery of imported merchandise within 10 days after such 
employment. 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 carrier if 
he is an officer or employee of an independent contractor engaged by a 
carrier to load, unload, transport or otherwise handle cargo.
    (n)(1) Customs will not issue a permit to unlade before it has 
received the cargo declaration information pursuant to Sec. 4.7(b). In 
cases in which Customs does not receive complete cargo manifest 
information from the carrier or from the NVOCC, in the manner and format 
required by Sec. 4.7(b), 24 hours prior to the lading of the cargo 
aboard the vessel at the foreign port, Customs may delay issuance of a 
permit to unlade the entire vessel until all required information is 
received. Customs may also decline to issue a permit to unlade the 
specific cargo for which a declaration is not received 24 hours before 
lading in a foreign port. Furthermore, where the carrier does not 
present an advance cargo manifest to Customs electronically, in the 
manner provided in Sec. 4.7(b)(2), preliminary entry pursuant to Sec. 
4.8(b) will be denied.
    (2) In addition, while the advance presentation of the cargo 
manifest for any vessel subject to Sec. 4.7(b)(2) may be made in paper 
form or by electronic transmission through a Customs-approved electronic 
data interchange system, the submission of an electronic manifest for 
the cargo in this regard, as opposed to a paper manifest, will further 
facilitate the prompt issuance of a permit to unlade the cargo.

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 68-247, 33 FR 15022, 
Oct. 8, 1968; T.D. 71-39, 36 FR 1891, Feb. 3, 1971; T.D. 72-189, 38 FR 
13975, July 15, 1972; T.D. 73-27, 38 FR 2448, Jan. 26, 1973; T.D. 84-
213, 49 FR 41163, Oct. 19, 1984; T.D. 88-12, 53 FR 9314, Mar. 22, 1988; 
T.D. 92-74, 57 FR 35751, Aug. 11, 1992; T.D. 93-66, 58 FR 44130, Aug. 
19, 1993; T.D. 93-96, 58 FR 67316, Dec. 21, 1993; T.D. 94-2, 58 FR 
68523, Dec. 28, 1993; T.D. 95-77, 60 FR 50010, Sept. 27, 1995; T.D. 96-
11, 61 FR 2414, Jan. 26, 1996; T.D. 93-96, 61 FR 3569, Feb. 1, 1996; 
T.D. 00-4, 65 FR 2873, Jan. 19, 2000; T.D. 02-62, 67 FR 66332, Oct. 31, 
2002]



Sec. 4.31  Unlading or transshipment due to casualty.

    (a) When any cargo or stores of a vessel 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

[[Page 37]]

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, regarding such accident, stress of weather, or 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 person next to the master in command shall be one, as proof that the 
unlading or transshipment was necessary by reason of unavoidable cause.
    (b) The port director may then permit 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 Customs at the port 
where it is discharged or forwarded to the port of original destination 
under an entry for immediate transportation or for transportation and 
exportation, as the case may be. All regulations shall apply in such 
cases as if the unlading and delivery 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]



Sec. 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. Merchandise 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 safekeeping.
    (b) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.64 of this chapter relating to international carriers 
shall be given in an amount to be determined by the port director to 
insure the proper disposition 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]



Sec. 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 destination 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 existing at the port of destination, 
the port director authorizes the vessel to proceed in accordance with 
the residue cargo bond procedure to the alternative port. The owner or 
agent of the vessel shall apply for such authorization in writing, 
stating the reasons and agreeing to hold the port director and the 
Government harmless for the diversion.
    (b) Disposition of cargo or baggage at emergency port. Cargo and 
baggage unladen 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 Declaration, Customs Form 1302, of a vessel may be changed at any 
time to permit 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 diversion 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 director 
shall require for local Customs purposes; and

[[Page 38]]

    (3) The certified traveling manifest is not altered or added to in 
any way by the master, owner, or agent of the vessel. When an 
application under paragraph (c)(1) of this section is approved, the port 
director shall securely attach an approved copy of the amended manifest 
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 result of a strike or other emergency at a United 
States port for which inward foreign cargo is manifested, it is desired 
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 master, 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 domestic 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 application, the port director is 
authorized to require such bond as he deems necessary to insure that 
export control laws and regulations are not circumvented.

[T.D. 77-255, 42 FR 56320, Oct. 25, 1977]



Sec. 4.34  Prematurely discharged, overcarried, and undelivered cargo.

    (a) Prematurely landed cargo. Upon receipt of a satisfactory written 
application from the owner or agent of a vessel establishing that cargo 
was prematurely landed and left behind by the importing vessel through 
error or emergency, the port director may permit 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, Customs Form 1302, of 
the first vessel, provided the importing vessel actually entered the 
port of destination of the prematurely landed cargo. Unless so forwarded 
within 30 days from the date of landing, the cargo shall be 
appropriately entered for Customs clearance or for forwarding in bond; 
otherwise, it shall be sent to general order as unclaimed. If the 
merchandise is so entered for Customs clearance at the port of unlading, 
or if it is so forwarded in bond, other than by the importing vessel or 
by another vessel owned or chartered by the owner of the importing 
vessel, representatives of the importing vessel shall file at the port 
of unlading 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 establishing that cargo 
was not landed at its destination and was overcarried to another 
domestic port through error or emergency, the port director may permit 
the cargo to be returned in the importing vessel, or in another vessel 
owned or chartered by the owner of the importing vessel, to the 
destination shown on the Cargo Declaration, Customs Form 1302, of the 
importing vessel, provided the importing vessel actually entered the 
port of destination. \67\
---------------------------------------------------------------------------

    \67\ See Sec. 141.69(c) of this chapter for the conditions 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 consumption entry which had been filed therefore before the 
merchandise was removed from the port of intended entry.
    68-69 [Reserved]
---------------------------------------------------------------------------

    (c) Inaccessibly stowed cargo. Cargo so stowed as to be inaccessible 
upon arrival at destination may be retained on board, carried forward to 
another domestic port or ports, and returned to the port of destination 
in the importing vessel or in another vessel owned or chartered by the 
owner of the importing 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

[[Page 39]]

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 application 
shall be supported by a Cargo Declaration, Customs Form 1302, in such 
number of copies as the port director may require. Whenever practicable, 
the application shall be made on the face of the Cargo Declaration below 
the description of the merchandise. The application shall specify the 
vessel on which the cargo was imported, even though the forwarding to 
destination is by another vessel owned or chartered by the owner of the 
importing vessel, and all ports of departure and dates of sailing of the 
importing 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 
substitute 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-reference shall be 
placed on the original traveling manifest to show that the vessel has 
one or more substitute traveling 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 reference to the nature of such cargo, 
identifying it with the importing vessel.
    (f) Residue cargo procedure. A vessel with prematurely landed or 
overcarried cargo on board shall comply upon arrival at all domestic 
ports of call with all the requirements of part 4 relating to foreign 
residue cargo for domestic ports. The substitute traveling manifest, 
carried forward from port to port by the oncarrying vessel, shall be 
finally 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 undelivered at the foreign 
destination and returned, shall be manifested as ``Undelivered-to be 
returned to original foreign 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 application of the steamship company, 
issue a permit on a Delivery Ticket, Customs Form 6043, allowing the 
merchandise to be transferred to another vessel for return to the 
original foreign destination. No charge shall be made against the bond 
on Customs Form 301, containing the bond conditions relating to 
international carriers set forth in Sec. 113.64 of this chapter. The 
items shall be remanifested outward and an explanatory reference of the 
attending circumstances and compliance with export 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]



Sec. 4.35  Unlading outside port of entry.

    (a) Upon written application from the interested party, the port 
director concerned, if he considers it necessary, may permit any vessel 
laden with merchandise 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 
Government for the compensation, travel, and subsistence expenses of the 
officers detailed to supervise the unlading and delivery 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]



Sec. 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

[[Page 40]]

merchandise on board more than 25 days after the date of the vessel's 
arrival, their compensation and subsistence expenses shall be reimbursed 
to the Government by the owner or master.
    (b) The compensation of all Customs officers and employees assigned 
to supervise 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.
---------------------------------------------------------------------------

    \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 compensation 
of the inspectors or other customs officers whose services are required 
in connection with the unlading shall, for every day consumed in 
unlading in excess of twenty-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]
---------------------------------------------------------------------------

    (c) When cargo is manifested ``for orders'' upon the arrival of the 
vessel, no amendment of the manifest to show another port of discharge 
shall be permitted after 15 days after the date of the vessel's arrival, 
except as provided for in Sec. 4.33.
    (d) All reimbursements payable in accordance 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]



Sec. 4.37  General order.

    (a) Any merchandise or baggage regularly landed but not covered by a 
permit for its release shall be allowed to remain at the place of 
unlading until the fifteenth calendar day after landing. 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 merchandise or baggage 
for which entry has not been made. Such notification shall be provided 
in writing or by any appropriate 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 merchandise 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 Customs of any such merchandise or baggage for which entry has 
not been made. Such notification shall be provided 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 Sec. 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 presence of such unreleased and unentered 
merchandise or baggage to a bonded warehouse certified by the port 
director as qualified to receive general order merchandise. Such 
notification shall be provided in writing or by any appropriate 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 responsibility of the bonded 
warehouse proprietor to arrange for the transportation 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

[[Page 41]]

merchandise was transferred by the arriving 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 designated by the port director or an electronic 
equivalent as authorized by Customs, to cover the proprietor'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 Sec. 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 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-authorized permit to transfer 
or in-bond entry fails to notify a Customs-approved bonded warehouse of 
such merchandise or baggage within the applicable 20-calendar-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 
carrier or custodial bond (see Sec. Sec. 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 
merchandise has been transferred by means of a Customs-authorized permit 
to transfer or in-bond entry fails to timely relinquish custody of the 
merchandise to a Customs-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 section, he may be liable for the payment of 
liquidated damages under the terms and conditions of his custodial bond 
(see Sec. 113.63(a)(1) of this chapter). If the port director finds 
that the warehouse operator cannot accept the goods because they are 
required by law to be exported or destroyed (see Sec. 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 responsible 
under bond for exporting or destroying the goods, as necessary (see 
Sec. Sec. 113.63(c)(3) and 113.64(b) of this chapter).
    (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 facility, 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 prescribed 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 expense and risk of the 
owners of the merchandise. Any merchandise so unladen shall be sent 
forthwith by the port director to a general order warehouse and stored 
at the risk and expense of the owners of the merchandise.
    (h) Merchandise taken into the custody 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 entered, 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]

[[Page 42]]



Sec. 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 issued by the port director only after the merchandise has been 
entered and, except as provided for in Sec. 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 delivery 
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 alternative 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 submission of paper documents after reviewing the entry 
data submitted electronically through ABI and its selectivity criteria 
(see Sec. 143.34). The report shall be posted in a conspicuous area to 
which the public has access in the customhouse 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 transmitted 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 traveling via in-bond movement, the 
report will contain the following data elements:
    (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 
carrier 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 latter 
carrier's facility. Upon receipt of the merchandise the latter carrier 
assumes liability for the merchandise to the same extent as though the 
merchandise had arrived on its own vessel.
    (b) When packages of merchandise bear marks or numbers which differ 
from those appearing on the Cargo Declaration, Customs Form 1302, of the 
importing 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 director 
may approve the application upon condition that (1) the contents of the 
packages be identified with an invoice or transportation entry as set 
forth below and (2) the applicant furnish at his own expense any bonded 
cartage or lighterage service which the granting of the application may 
require. The application shall be in writing in such number of copies as 
may be required for local Customs purposes. Before permitting delivery 
of packages under such an application, the port director 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 transportation 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.

[[Page 43]]

    (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 factor related to the protection of merchandise in Customs 
custody requires such measures, he shall require as a 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 executed pickup 
order in substantially the following format, in triplicate, to obtain 
delivery of any imported merchandise:
[GRAPHIC] [TIFF OMITTED] TC14NO91.167


The pickup order shall contain a duly authenticated customhouse broker's 
signature, unless it is presented by a person properly identified as an 
employee or agent of the ultimate consignee. 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 delivered 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 possession of 
a subsequent carrier or an importer or the agent of either is completed 
under the supervision of a Customs officer, and only to the extent of 
the actual delivery of merchandise described 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]



Sec. 4.39  Stores and equipment of vessels and crews' effects; unlading or lading and retention on board.

    (a) The provisions of Sec. 4.30 relating to unlading under a permit 
on Customs Form 3171 are applicable to the unlading of articles, other 
than cargo or baggage, 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.

[[Page 44]]

    (b) Any articles other than cargo or baggage landed for delivery for 
consumption 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 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 included 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 treated as cargo of such vessel.
    (e) Under section 446, Tariff Act of 1930, port directors may permit 
narcotic drugs, except smoking opium, in reasonable quantities and 
properly listed 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 section 446, Tariff Act of 
1930, shall be made and the permit therefor granted on Customs Form 
3171.
    (g) Equipment of a vessel arriving either directly or indirectly 
from a foreign 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 Sec. 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 appropriate International Carrier 
Bond during the period that equipment is temporarily landed for repairs 
(see Sec. 113.64(b) of this chapter), and so resort to the procedures 
established for the temporary importation of merchandise under bond is 
unnecessary. Once equipment 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]



Sec. 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 outside 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 articles 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 
import taxes, but if such articles are recovered from vessels outside 
the waters of the United States and brought into a United States port, 
they shall be treated as imported merchandise.



Sec. 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 subject 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, underwriter (if the 
merchandise has been abandoned to him), or the salvor of the merchandise 
shall make entry on Customs Form 7501, and any such applicant shall be 
regarded as the consignee of the merchandise for Customs purposes. \76\
---------------------------------------------------------------------------

    \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)
---------------------------------------------------------------------------

    (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

[[Page 45]]

entry. If it is not entered by the person entitled to make entry, or is 
not disposed of pursuant to court order, it shall be subject to sale as 
unclaimed merchandise.
    (c) If such merchandise is from a vessel 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 shall be permitted 
to enter the merchandise 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.
---------------------------------------------------------------------------

    \77\ ``Whenever any vessel laden with merchandise, 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 
prescribe.'' (Tariff Act of 1930, sec. 310; 19 U.S.C. 1310)
---------------------------------------------------------------------------

    (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.
---------------------------------------------------------------------------

    \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]

[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



Sec. 4.50  Passenger lists.

    (a) The master of every vessel arriving at a port of the United 
States from a port or place outside the Customs territory (see Sec. 4.6 
of this part) and required 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 Sec. 4.7(a) of this part. If the vessel is arriving from 
noncontiguous foreign territory and is carrying steerage passengers, the 
additional information 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 navigation, 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]



Sec. 4.51  Reporting requirements for individuals arriving by vessel.

    (a) Arrival of vessel reported. Individuals on vessels, which have 
reported their arrival to Customs in accordance with19 U.S.C. 1433 and 
Sec. 4.2 of this part, shall remain on board until authorized by 
Customs to depart. Upon departing the vessel, such individuals shall 
immediately report to a designated Customs location together with all of 
their accompanying articles.
    (b) Arrival of vessel not reported. Individuals on vessels, which 
have not reported their arrival to Customs in accordance with 19 U.S.C. 
1433 and Sec. 4.2 of this part, shall immediately notify Customs and 
report their arrival together with appropriate information regarding the 
vessel, and shall present themselves and their accompanying articles at 
a designated Customs location.
    (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]



Sec. 4.52  Penalties applicable to individuals.

    Individuals violating any of the reporting requirements of Sec. 
4.51 of this

[[Page 46]]

part or who present any forged, altered, or false document or paper to 
Customs in connection with this section, may be liable for certain civil 
penalties, as provided under 19 U.S.C. 1459, in addition to other 
penalties applicable under other provisions of law. Further, if the 
violation of these reporting requirements is intentional, upon 
conviction, additional criminal penalties may be applicable, as provided 
by under 19 U.S.C. 1459, in addition 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



Sec. 4.60  Vessels required to clear.

    (a) Unless specifically excepted by law, the following vessels must 
obtain clearance from the Customs Service 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 merchandise on board that is being transported 
in-bond (not including bonded ship's stores or supplies), or 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 merchandise or passengers while 
outside the territorial sea, as well as foreign vessels delivering 
merchandise or passengers while outside the territorial sea.
    (b) The following vessels are not required to clear:
    (1) A documented vessel with a pleasure license endorsement or an 
undocumented 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) Any documented vessel with a Great Lakes license endorsement 
which during a voyage on the Great Lakes will touch at a foreign port 
only for taking on bunker fuel. (see Sec. 4.82).
    (3) A vessel exempted from entry by section 441, Tariff Act of 1930. 
(See Sec. 4.5.)
    (4) 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 shall not be required to be cleared 
because of such transit.
    (d) In the event that departure is delayed beyond the second day 
after clearance, the delay shall be reported within 72 hours after 
clearance to the port director who shall note the fact of detention on 
the certificate of clearance and on the official record of clearance. 
When the proposed voyage is canceled after clearance, the reason 
therefor shall be reported in writing within 24 hours after such 
cancellation and the certificate of clearance and related papers shall 
be surrendered.
    (e) No vessel shall be cleared for the high seas except, a vessel 
bound to another 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 
transport 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]



Sec. 4.61  Requirements for clearance.

    (a) Application for clearance. A clearance application for a vessel 
intending to depart for a foreign port must be made by filing Customs 
Form 1300 (Vessel Entrance or Clearance Statement) executed by the 
vessel master or other proper officer. The master, licensed deck 
officer, or purser may appear in person to clear the vessel, or the 
properly executed Customs Form

[[Page 47]]

1300 may be delivered to the customhouse by the vessel agent or other 
personal representative of the master. Necessary information may also be 
transmitted electronically pursuant to a system authorized by Customs. 
Clearance will be granted by Customs either on the Customs Form 1300 or 
by approved electronic means. Customs port directors may permit the 
clearance of vessels at locations other than the customhouse, and at 
times outside of normal 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 
either within or outside of port limits. Customs must be satisfied that 
the place designated for clearance is sufficiently under Customs control 
at the time of clearance, and that the expenses incurred by Customs will 
be reimbursed as authorized. Customs may require that advance notice of 
vessel departure be given prior to granting requests for optional 
clearance locations.
    (b) When clearance required. Under certain circumstances, American 
vessels departing from ports of the United States directly for other 
United States ports must obtain Customs clearance. The clearance of such 
vessels is required when they have merchandise aboard which is being 
transported in-bond, or when they have unentered foreign merchandise 
aboard. For the purposes of the vessel clearance requirements, 
merchandise transported in-bond does not include bonded ship's stores or 
supplies. While American vessels 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 communication 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 documents or papers deemed necessary for the 
proper inspection/examination of the vessel, cargo, passenger, or crew. 
Report of departure together with providing information to Customs as 
specified 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 Sec. 4.60 and this 
section, the port director will verify compliance with respect to the 
following matters:
    (1) Accounting for inward cargo (see Sec. 4.62).
    (2) Outward Cargo Declarations; shippers export declarations (see 
Sec. 4.63).
    (3) Documentation (see Sec. 4.0(c)).
    (4) Verification of nationality and tonnage (see Sec. 4.65).
    (5) Verification of inspection (see Sec. 4.66).
    (6) Inspection under State laws (46 U.S.C. App. 97).
    (7) Closed ports or places (see Sec. 4.67).
    (8) Passengers (see Sec. 4.68).
    (9) Shipping articles and enforcement of Seamen's Act (see Sec. 
4.69).
    (10) Medicine and slop chests.
    (11) Load line regulations (see Sec. 4.65a).
    (12) Carriage of United States securities, etc. (46 U.S.C. App. 98).
    (13) Carriage of mail.
    (14) Public Health regulations (see Sec. 4.70).
    (15) Inspection of vessels carrying livestock (see Sec. 4.71).
    (16) Inspection of meat, meat-food products, and inedible fats (see 
Sec. 4.72).
    (17) Neutrality exportation of arms and munitions (see Sec. 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 Sec. 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 
Sec. 4.14).
    (21) Illegal discharge of oil (see Sec. 4.66a).
    (22) Attached or arrested vessel.
    (23) Immigration laws.
    (24) Electronic receipt of required vessel cargo information (see 
Sec. 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

[[Page 48]]

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 vessel using the flag of the United States or any distinctive 
signs or markings indicating that the vessel is an American vessel (22 
U.S.C. 454a).
    (f) Clearance in order of itinerary. Unless 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 place for orders, that is, for 
instructions to masters as to destination of the vessel, may be accepted 
if the vessel 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]



Sec. 4.62  Accounting for inward cargo.

    Inward cargo discrepancies shall be accounted for and adjusted by 
correction 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 
Sec. 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]



Sec. 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 Sec. 4.87(b)), unless there has been filed with the appropriate 
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 required by pertinent regulations of the Bureau of 
the Census, Department of Commerce; or
    (2) An incomplete Cargo Declaration as provided for in Sec. 4.75.
    (b) Except as hereafter stated, the number of the export declaration 
covering each shipment for which an authenticated export declaration is 
required 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 Outward With Commercial Forms (Customs 
Form 1302-A) describing the basis for the exemption with a reference to 
the number of the section in the Census Regulations (see 15 CFR 30.39, 
30.50 through 30.57) where the particular exemption is provided. If 
shipments are exempt on the basis of value and destination, the 
appearance of the value and destination on a bill of lading or other 
commercial documents is acceptable as evidence of the exemption and 
reference to the applicable section in the Census Regulations is not 
required.
    (c) The following minimal information shall be included on the Cargo 
Declaration Outward With Commercial Forms, Customs Form 1302-A (other 
information 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 paragraph (d) of this section);
    (3) Number of packages and gross weight (see paragraph (d) of this 
section);
    (4) Name of vessel or carrier;
    (5) Port of exit (this shall be the port where the merchandise is 
loaded on the vessel); 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 information need not be shown again on the 
Customs Form 1302-A. However, in

[[Page 49]]

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 commercial documents.''
    (e) For each shipment to be exported under an entry or withdrawal 
for exportation or for transportation and exportation, the Cargo 
Declaration Outward With Commercial Forms, Customs Form 1302-A, or 
commercial document attached to the Cargo Declaration and made a part 
thereof in accordance with paragraph (a)(1) of this section, shall 
clearly show for such shipment 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 
Commercial Forms, Customs Form 1302-A, covering containerized or 
palletized cargo which indicates by the use of appropriate words of 
qualification (see Sec. 4.7a(c)(3)) that the declaration has been 
prepared on the basis of information furnished by the shipper.

[T.D. 84-193, 49 FR 35484, Sept. 10, 1984; T.D. 00-22, 65 FR 16515, Mar. 
29, 2000]



Sec. 4.64  Electronic passenger and crew member departure manifests.

    (a) Definitions. The definitions contained in Sec. 4.7b(a) also 
apply for purposes of this section.
    (b) Electronic departure manifest--(1) General requirement. Except 
as provided in paragraph (c) of this section, an appropriate official of 
each commercial vessel departing from the United States to any port or 
place outside the United States must transmit to Customs and Border 
Protection (CBP) an electronic passenger departure manifest and an 
electronic crew member departure manifest. Each electronic departure 
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 approved by CBP. If the transmission is in US EDIFACT 
format, the passenger manifest and the crew member manifest must be 
transmitted separately; and
    (ii) Must set forth the information specified in paragraph (b)(3) of 
this section.
    (2) Place and time for submission--(i) General requirement. The 
appropriate official 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 vessel departs 
from the United States.
    (ii) Amended crew member manifests. If a crew member boards the 
vessel after submission of the manifest under paragraph (b)(2)(i) of 
this section, the appropriate 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 transmitted 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 electronic departure manifest 
required under paragraph (b)(1) of this section must contain the 
following information for all passengers and crew members, except that 
the information specified 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 (foreign port code);
    (xiv) Vessel name;
    (xv) Vessel country of registry/flag;

[[Page 50]]

    (xvi) International Maritime Organization number or other official 
number of the vessel;
    (xvii) Voyage number (applicable only for multiple departures on the 
same calendar day); and
    (xviii) Date of vessel departure.
    (c) Exceptions. The electronic departure manifest requirement 
specified in paragraph (b) of this section is subject to the following 
conditions:
    (1) No passenger or crew member departure manifest is required if 
the departing commercial vessel is operating as a ferry;
    (2) If the departing commercial vessel is not transporting 
passengers, only a crew member departure manifest is required;
    (3) No passenger departure manifest is required for active duty U.S. 
military personnel on board a departing Department of Defense commercial 
chartered vessel.
    (d) Carrier responsibility for comparing information collected with 
travel document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing 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. Information contained in 
passenger and crew member manifests 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 17851, Apr. 7, 2005, as amended by CBP Dec. 07-
64, 72 FR 48342, Aug. 23, 2007]



Sec. 4.65  Verification of nationality and tonnage.

    The nationality and tonnage of a vessel shall be verified by 
examination of its marine document. If such examination discloses that 
insufficient tonnage tax was collected on entry of the vessel, no 
clearance shall be granted until the deficiency is paid.



Sec. 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, clearance shall not be granted until the order is 
withdrawn.
    (b) If a port director issues a detention order under the Coastwise 
Load Line Act, 1935, as amended, or is notified 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]



Sec. 4.66  Verification of inspection.

    (a) No clearance shall be granted unless 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 required to be inspected as 
specified in Title 46, Code of Federal Regulations.
    (2) A foreign vessel carrying passengers from the United States.
    (b) In the case of vessels of foreign nations which are signatories 
of the International Convention for the Safety of Life at Sea, 1948, 
carrying passengers from the United States, an unexpired Certificate of 
Examination for Foreign Passenger Vessel, Form CG-989, or an unexpired 
Certificate for Foreign Vessel to Carry Persons in Addition to Crew, 
Form CG-3463, issued by the United States Coast Guard, may be accepted 
as evidence that a proper certificate of inspection is in force and the 
vessel is in compliance with such certificate.
    (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,

[[Page 51]]

shall be accepted in lieu of the certificate of inspection required by 
this section.

[T.D. 56173, 29 FR 6681, May 22, 1964, as amended by T.D. 69-266, 34 FR 
20422, Dec. 31, 1969]



Sec. 4.66a  Illegal discharge of oil and hazardous 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 hazardous substance 
into or upon the navigable waters of the United States, adjoining 
shorelines, or into or upon the waters of the contiguous zone in 
quantities determined to be harmful by appropriate authorities, such 
clearance shall not be granted until the port director 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]



Sec. 4.66b  Pollution of coastal and navigable waters.

    (a) If any Customs officer has reason to believe that any refuse 
matter is being or has been deposited in navigable 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 hazardous 
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 
recommendation, to the district commander 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]



Sec. 4.66c  Oil pollution by oceangoing vessels.

    (a) If a port director receives a request from a Coast Guard officer 
to refuse or revoke the clearance or permit to proceed of a vessel 
because the vessel, its owner, operator, or person in charge, is liable 
for a fine or civil penalty, or reasonable cause exists to believe 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 Pollution from Ships, 
1973 (MARPOL Protocol), 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 notification from a Coast Guard 
officer that an order has been issued to detain a vessel required to 
have an International Oil Pollution Prevention (IOPP) Certificate which 
does not have a valid certificate on board, or whose condition or whose 
equipment's condition does not substantially agree with the particulars 
of the certificate on board, or which presents 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 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 notification from a Coast Guard 
officer to detain a vessel operated under the authority 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 accordance with 
and complies with the requirements of the MARPOL Protocol, or whose 
condition or whose equipment's condition does not substantially agree 
with the particulars of the certificate on board, or which presents an 
unreasonable threat of harm

[[Page 52]]

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 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]



Sec. 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.



Sec. 4.68  Federal Maritime Commission certificates for certain passenger vessels.

    No vessel having berth or stateroom accommodations for 50 or more 
passengers 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 established that the vessel has valid certificates issued 
by the Federal Maritime Commission.

[T.D. 00-4, 65 FR 2874, Jan. 19, 2000]



Sec. 4.69  Shipping articles.

    No vessel of the U.S. on a voyage between 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, including any seaman's allotment agreement, 
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]



Sec. 4.70  Public Health Service requirements.

    No clearance will be granted to a vessel subject to the foreign 
quarantine regulations of the Public Health Service.

[T.D. 00-4, 65 FR 2874, Jan. 19, 2000]



Sec. 4.71  Inspection of livestock.

    A proper export inspection certificate 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]



Sec. 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 director such 
copies of export certificates concerning such meat or meat-food products 
as are required by the pertinent regulations of the U.S. Department of 
Agriculture, Food Safety and Inspection Service, Meat and Poultry 
Inspection (9 CFR part 322). If such certificate has been obtained but 
is unavailable 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 shipper's agent's letterhead, certifying the number of 
boxes, the number of pounds, the product name and the U.S. Department of 
Agriculture export certificate number that covers the shipment 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 Sec. 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 Department of 
Agriculture, unless the port director is furnished with a certificate by

[[Page 53]]

the exporter that the article is inedible.

[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]



Sec. 4.73  Neutrality; exportation of arms and munitions.

    (a) 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 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.
---------------------------------------------------------------------------

    \104\ See 18 U.S.C. 961 through 967 and 22 U.S.C. 441 through 457.
---------------------------------------------------------------------------

    (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 principally 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 subjects, citizens, or property or any foreign 
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.
---------------------------------------------------------------------------

    \105\ Clearance for vessel shall not be denied for the sole reason 
that her cargo contains contraband of war.
    106-110 [Reserved]
---------------------------------------------------------------------------

    (c) A port director shall promptly communicate all the facts to 
Headquarters, 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 believe 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, dispatches, 
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.



Sec. 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).



Sec. 4.75  Incomplete manifest; incomplete export declarations; bond.

    (a) Pro forma manifest. Except as provided for in Sec. 4.75(c), if 
a master desiring 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 Sec. 4.63) in 
accordance with 46 U.S.C. 91, or all required shipper's export 
declarations (see 15 CFR 30.24), the port director may accept in lieu 
thereof an incomplete manifest (referred to as a pro forma manifest) on 
the Vessel Entrance or Clearance Statement, Customs Form 1300, if there 
is on file in his office a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.64 of this chapter relating to 
international carriers, executed by the vessel owner or other person as 
attorney 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 manifest 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 deliver to the director of each port a complete Cargo 
Declaration Outward with Commercial Forms, Customs Form 1302-A, in 
accordance with Sec. 4.63, of the cargo laden at such port together 
with duplicate copies of all required shipper's export declarations for 
such cargo and a Vessel Entrance or Clearance Statement, Customs Form 
1300. The statutory grace period of 4

[[Page 54]]

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.
    (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 enforcement of export laws and regulations, no 
vessel shall be cleared for any port in the following countries until a 
complete 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]



Sec. 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 electronically (see, 15 CFR part 30). All sea 
carriers are eligible to apply for participation in the Sea Carrier's 
Module. Application 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 Regulations (15 CFR 
part 30) concerning the electronic submission of an outbound vessel 
manifest information meets the outward cargo declaration filing 
requirements (CF 1302-A) of Sec. Sec. 4.63 and 4.75, except as 
otherwise provided in Sec. Sec. 4.75 and 4.84.
    (b) Responsibilities. The performance requirements and operational 
standards and procedures for electronic submission of outbound vessel 
manifest information are detailed in the AES Trade Interface 
Requirements handbook (available on the Customs internet web site 
(www.customs.gov)). Carriers and their agents are responsible for 
reporting accurate and timely information and for responding to all 
notifications 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 Sec. 30.66 of the Census 
Regulations (15 CFR 30.66) and any other applicable recordkeeping 
requirements. Where paper SEDs have been submitted by exporters prior to 
departure, participant 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 Sec. Sec. 4.75 or 4.84. Upon written agreement with participant sea 
carriers, Customs and Census can provide for an alternative to the 
location filing requirement for paper SEDs set forth in Sec. 4.75(b) by 
which the participant carriers are otherwise bound.
    (c) Messages required to be filed within the sea carrier's module. 
Participant carriers will be responsible for transmitting and responding 
to the following messages:
    (1) Booking. Booking information identifies all the freight that is 
scheduled for export. Booking information will be transmitted to Customs 
via AES for each shipment as far in advance 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 received;
    (2) Receipt of booking. When the carrier receives the cargo or 
portion of the cargo that was booked, the carrier will inform Customs so 
that Customs can

[[Page 55]]

determine if an examination of the cargo is necessary. Customs will 
notify the carrier of shipments designated for examination. Customs will 
also notify the carrier when the shipment designated for inspection is 
released and may be loaded on the vessel;
    (3) Departure. No later than the first calendar day following the 
actual departure 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 destination of the vessel is a foreign port 
listed in Sec. 4.75(c), the carrier must transmit complete manifest 
information before vessel departure. Time requirements for transmission 
of complete manifest information for carriers destined to Puerto Rico 
and U.S. possessions are the same as the requirement for the submission 
of the complete manifest as found in Sec. 4.84.
    (d) All penalties and liquidated damages that apply to the 
submission of paper manifests (see, applicable provisions in this part) 
apply to the electronic submission of outbound vessel manifest 
information through the Sea Carrier's Module.

[T.D. 99-57, 64 FR 40986, July 28, 1999]

                           Coastwise Procedure



Sec. 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 between such 
points, unless it is:
    (1) Owned by a citizen and is so documented 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 entitled to be 
documented with a coastwise license or, where appropriate, a Great Lakes 
license endorsement.
    (3) Owned by a partnership or association in which at least a 75 
percent interest is owned by such a citizen, is exempt from 
documentation and is entitled 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, whether 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 illegal transportation of merchandise between coastwise points 
is forfeiture of the merchandise or, in the discretion of the port 
director, forfeiture of a monetary amount up to the value of the 
merchandise to be recovered from the consignor, seller, owner, importer, 
consignee, agent, or other person or persons so transporting or causing 
the merchandise to be transported (46 U.S.C. 883).
    (2) The penalty imposed for the unlawful transportation of 
passengers between coastwise points is $300 for each passenger so 
transported and landed (46 U.S.C. App. 289, as adjusted by the Federal 
Civil Penalties Inflation Adjustment Act of 1990).
    (c) Any vessel of the United States, whether or not entitled under 
paragraph (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 Sec. 4.93. 
Cargo laden at a foreign port may be retained onboard during such 
movements. Furthermore, 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 accordance with 
Sec. 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. 883-1) shall 
be used in any trade

[[Page 56]]

other than the coastwise trade and shall not be used in that trade 
unless it is properly documented for such use or is exempt from 
documentation and is entitled to or, except for its tonnage, would be 
entitled to a coastwise license, or where appropriate, a Great Lakes 
license endorsement. Such a vessel shall not be documented for nor 
engage in the foreign trade or the fisheries and shall not transport 
merchandise 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 demise 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 
Interstate Commerce Act, as amended (49 U.S.C. 901 through 923), which 
otherwise qualifies as a citizen of the United States under section 2 of 
the Shipping Act, 1916, as amended (46 U.S.C. 802), and which is not 
connected, directly or indirectly, by way of ownership or control 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 in or documented under 
the laws of the United States, shall have the right to engage in such 
trade if it thereafter has been sold or transferred foreign in whole or 
in part or placed under foreign registry, or, if of more than 500 gross 
tons, has been rebuilt unless the entire rebuilding, including the 
construction of any major components of the hull or superstructure of 
the vessel, was effected within the United States, its Territories (not 
including trust territories), or its possessions. However, no rebuilt 
vessel shall be deemed to have lost its coastwise privileges within the 
meaning of the above if rebuilt within the United States, its 
Territories (not including trust territories), or its possessions under 
a contract executed before July 5, 1960, if the work of rebuilding 
commenced not later than 24 months after such date.
    (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 continues 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 foreign-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 otherwise 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 available 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 percent owned by a citizen as 
defined in 46 CFR subpart 68.05, and which, except for citizenship 
requirements, is otherwise entitled to be documented with a coastwise 
endorsement, may be documented with a limited coastwise endorsement, 
provided the vessel is owned by a not-for-profit oil spill response 
cooperative or by one or more members of such a cooperative who dedicate 
the vessel to the use of the cooperative (46 U.S.C. 12106(d)). 
Notwithstanding 46 U.S.C. App. 883, a vessel may be documented with such 
a limited endorsement even if formerly owned by a not-for-profit oil 
spill response cooperative or by one or more members thereof, as long as 
the citizenship criteria of 46 CFR subpart 68.05 are met. A vessel so 
documented may operate on the navigable waters of the

[[Page 57]]

United States or in the Exclusive Economic Zone only for the purpose of 
training for oil spill cleanup operations; 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 purposes by meeting 
the applicable requirements of 46 CFR part 67.
    (i) Any vessel, entitled to be documented and not so documented, 
employed in a trade for which a Certificate of Documentation is issued 
under the vessel documentation laws (see Sec. 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 
Documentation. If such a vessel has on board any foreign merchandise 
(sea stores excepted), or any domestic taxable 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 forfeiture.

[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]



Sec. 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 embraced within the coastwise laws.
    (2) Nearby foreign port means any foreign port in North America, 
Central America, the Bermuda Islands, or the West Indies (including the 
Bahama Islands, 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 foreign port that is not a nearby 
port.
    (4) Embark means a passenger boarding a vessel for the duration of a 
specific voyage and disembark means a passenger leaving a vessel at the 
conclusion of a specific voyage. The terms embark and disembark are not 
applicable to a passenger going ashore temporarily at a coastwise port 
who reboards the vessel and departs with it on sailing from the port.
    (5) Passenger has the meaning defined in Sec. 4.50(b).
    (b) The applicability of the coastwise law (46 U.S.C. 289) to a 
vessel not qualified 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 distant foreign port or ports (whether or not the voyage includes 
a nearby foreign 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 passenger vessels not qualified to engage in the 
coastwise trade. Such transportation 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 foreign vessel or any other 
interested person may request from Headquarters, U.S. Customs and Border 
Protection, Attention: Cargo Security, Carriers & Immigration Branch, 
Office of International Trade, an advisory ruling as to whether a 
contemplated voyage would be considered to be coastwise

[[Page 58]]

transportation in violation of 46 U.S.C. 289. Such a request shall be 
filed in accordance 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]



Sec. 4.80b  Coastwise transportation of merchandise.

    (a) Effect of manufacturing or processing at intermediate port or 
place. A coastwise transportation of merchandise 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, regardless of the origin or ultimate 
destination of the merchandise. However, merchandise is not transported 
coastwise 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 
coastwise laws), it is manufactured or processed into a new and 
different product, and the new and different product thereafter is 
transported to a coastwise point.
    (b) Request for ruling. Interested parties 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 merchandise 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]



Sec. 4.81  Reports of arrivals and departures in coastwise trade.

    (a) No vessel which is documented with a coastwise license or 
registry endorsement 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 report 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 obtain 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 transporting 
merchandise to a port in noncontinguous territory. \111\
---------------------------------------------------------------------------

    \111\ See Sec. 4.84.
    112-114 [Reserved]
---------------------------------------------------------------------------

    (b) When the facts are as above stated except that the vessel is 
carrying bonded merchandise, the master shall report its arrival as 
provided for in Sec. 4.2.
    (c) [Reserved]
    (d) The traveling Crew's Effects Declaration, Customs Form 1304, or 
Customs and Immigration Form I-418 with attached Customs Form 5129, 
referred to in Sec. 4.85 (b), (c), and (e) shall be deposited with the 
port director upon arrival at each port in the United States and finally 
surrendered to the appropriate 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 Sec. 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 Sec. 4.93 must 
be manifested on the Cargo Declaration, as required by Sec. 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 Sec. 4.85(b)), the duplicate copy, together with two copies of the 
Cargo Declaration covering articles to be transported in accordance with 
Sec. 4.93, must be returned to the master.

[[Page 59]]

The traveling Crew's Effects Declaration, Customs Form 1304, and all 
unused crewmembers' declarations on Customs Form 5129 will be placed in 
a sealed envelope addressed to the appropriate Customs officer at the 
next intended domestic port and returned to the master for delivery. The 
master must execute a receipt for all unused crewmembers' declarations 
which are returned to him. Immediately upon arrival 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 Statement 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 remaining on 
board, both copies of the Cargo Declaration covering articles 
transported in accordance with Sec. 4.93, and the document of the 
vessel. The traveling Crew's Effects Declaration and all unused 
crewmembers' declarations on Customs Form 5129 returned at the prior 
port to the master must be delivered by him to the appropriate Customs 
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 provisions of this section or of Sec. Sec. 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 representative of the master.
    (g) In lieu of the procedures stated in Sec. Sec. 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 regularly 
carried aboard a vessel in the foreign 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 arrival and entry must be made 
immediately 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 unladen, a new permit to proceed must be 
obtained and the inward foreign manifests 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 Customs officer. A single permit to proceed 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 Entrance or Clearance Statement, Customs 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 proceeding to the same port in 
the same tow.
    (4) In lieu of the master of the towing vessel executing and 
delivering documents required under permit-to-proceed procedures (see 
Sec. 4.81(f)) at the port where a LASH-type barge begins a coastwise 
movement, the master of the

[[Page 60]]

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 operator of the barges may 
designate representatives to perform such functions at ports or places 
where permit-to-proceed documents must be delivered. Documents obtained 
from Customs officers at one place by such a representative may be 
forwarded by any suitable means to the representative who must present 
them to Customs officers at another place, the only requirement being 
that the forms are properly completed and are presented within the 
prescribed time periods. Moreover, instead of a written designation from 
each master of a towing vessel, a blanket designation in writing from 
the owner or operator of one or more towing vessels on behalf of masters 
of their towing vessels, designating the owner or operator of the barges 
to be the representative of the master for purposes of executing and 
delivering permit-to-proceed documents, is authorized.
    (5) [Reserved]
    (6) When a LASH-type barge is proceeding to a place in the United 
States that is not a port of entry, Sec. 101.4(a) and (b) of this 
chapter are applicable. No merchandise shall be unladen from a LASH-type 
barge until a permit or special license therefor is obtained in 
accordance with Sec. 4.30 except that a single permit to unlade may be 
used for all barges that arrived at the port of unlading 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]



Sec. 4.81a  Certain barges carrying merchandise transferred from another barge.

    (a) A LASH-type barge (as defined in Sec. 4.81(g)) documented as a 
vessel of the United States but not qualified to engage 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 between points embraced within the coastwise 
laws of the United States after the merchandise has been transferred 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 noncontiguous States, districts, 
territories, and possessions embraced within 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 operator of the LASH-type 
barge from which the merchandise was transferred.
    (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]



Sec. 4.82  Touching at foreign port while in coastwise trade.

    (a) A United States documented vessel with a registry or, coastwise 
endorsement, 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 Sec. 4.63), shall show only the cargo for foreign destination. 
(See Sec. Sec. 4.61 and 4.87.)
    (b) The master shall also present to the port director a coastwise 
Cargo Declaration in triplicate of the merchandise to be transported via 
the foreign port or ports to the subsequent ports in the United States. 
It shall describe the merchandise and show the

[[Page 61]]

marks and numbers of the packages, the names of the shippers and 
consignees, and the destinations. The port director shall certify the 
two copies and return them to the master. Merchandise carried by the 
vessel in bond under a transportation entry and manifest, Customs Form 
7512, shall not be shown on the coastwise Cargo Declaration.
    (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 unless the vessel is 
properly operating under a document with Great Lakes license 
endorsement. The master shall present Cargo Declaration in accordance 
with Sec. 4.7 and the certified copies of the coastwise Cargo 
Declaration, 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 revenue. 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]



Sec. 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 foreign 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, provided 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 
otherwise than by sea, may operate under a document with a Great Lakes 
license endorsement and shall not be subject to the requirements for 
clearance, report 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]



Sec. 4.84  Trade with noncontiguous territory.

    (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 Columbia, 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 
applicable provisions of Sec. 4.61 of the regulations of this part, 
including clearance of a vessel simultaneously engaged in one or more of 
the transactions listed in Sec. 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 noncontiguous territory, and 
when this transportation is not forbidden by the coastwise laws, the 
merchandise may be laden and shipped without shipper's export 
declarations.
    (b) The master of every foreign vessel arriving at a port in any 
State or the District of Columbia or in noncontiguous territory of the 
United States from a port in noncontiguous territory to which the 
coastwise laws do not apply (e.g., Virgin Islands and American 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 arrival and make entry for the vessel 
within 48 hours after its arrival.

[[Page 62]]

    (c)(1) A vessel which is not required to clear but which is 
transporting merchandise from a port in any State or the District of 
Columbia to any noncontiguous territory of the United States (excluding 
Puerto Rico), or from Puerto Rico to any State or the District of 
Columbia, or any other noncontiguous territory, shall not be permitted 
to depart without filing a complete manifest, when required by 
regulations 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 required 
documents, as specified in 15 CFR 30.24. Requests for permission to 
depart may be written or oral and permission to depart shall be granted 
orally by the appropriate Customs officer. However, if the request is to 
depart prior to the filing of the required manifest and export 
declarations, permission shall not be granted unless the appropriate 
bond is on file. In the latter case, the Customs officer shall keep a 
simplified record of the necessary information 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 Sec. 4.63(a)), required at the time of clearance is not required 
to be taken to obtain permission to depart.
    (2) A vessel which is not required to clear but which is 
transporting merchandise 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 Declarations within one business day after 
arrival, as defined in Sec. 4.2(b) of this part, with the appropriate 
Customs officer in Puerto Rico. If the complete manifest and all 
required Shipper's Export 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 
required 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 necessary information in order to ensure that the manifest and 
export declarations are filed not later than the seventh business day 
after arrival in Puerto 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 territory other than Puerto Rico, the master shall 
immediately report its arrival and shall prepare, produce, and file a 
Cargo Declaration in the form and manner and at the times specified in 
Sec. Sec. 4.7 and 4.9 but shall not be required to make entry. If the 
vessel proceeds 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 
Sec. 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 unladen from any such vessel until Cargo 
Declarations have been filed and a permit to unlade has been issued in 
accordance with the procedure specified in Sec. 4.30.
    (e) No vessel shall bring guano to the United States from a guano 
island appertaining to the United States (see 48 U.S.C. 1411) unless 
such a vessel is entitled 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 corporation, 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]



Sec. 4.85  Vessels with residue cargo for domestic ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement, arriving from a 
foreign port with cargo or passengers manifested for ports in the United 
States other than

[[Page 63]]

the port of first arrival, may proceed with such cargo or passengers 
from port to port, provided a bond on Customs Form 301, containing the 
bond conditions set forth in Sec. 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. \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 manifest (hereinafter 
referred to as the traveling manifest). The certified copy shall have a 
legend similar to the following endorsed on the Vessel Entrance or 
Clearance Statement, Customs Form 1300:
---------------------------------------------------------------------------

    \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 thereof.'' (Tariff Act of 1930, sec. 
442; 19 U.S.C. 1442)
    116-118 [Reserved]

________________________________________________________________________
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 described in paragraph (a) of this 
section, the master must present to the director of such port of 
departure an application 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 following legend must be endorsed on the form:

Port
Date
Permission is granted to proceed to the port named in item 12.
----------------
Signature and title

    (2) The duplicate must be attached to the traveling manifest and the 
triplicate (the permit to proceed to be delivered at the next port) must 
be returned 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 
parentheses 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, together with the 
unused crewmembers' declarations prepared for such articles, will be 
placed in a sealed envelope addressed to the appropriate Customs officer 
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 passengers 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 permit to proceed (Customs Form 1300 endorsed in 
accordance with paragraph (b) of this section), the traveling manifest, 
and the traveling Crew's Effects Declaration (Customs Form 1304), 
together with the crewmembers' declarations 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, Customs and Immigration Form I-418, in such number of 
copies as may be required for local Customs purposes, of any cargo or 
passengers on board manifested 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 applicable, the Cargo Declaration 
required by Sec. 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:


[[Page 64]]


    Vessel on an inward foreign voyage with residue cargo/passengers for 
--------. No cargo or passengers for discharge at this port.

    (2) The traveling manifest, together with a copy of the newly 
executed Vessel 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 special license to lade or unlade, the abstract 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 remains on board for discharge at a foreign port 
or ports, the traveling manifest shall be surrendered at the final port 
of departure from the United States. However, it shall not be 
surrendered at the port from which the vessel departs for another United 
States port, via an intermediate foreign port, under Sec. 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 
surrendered 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]



Sec. 4.86  Intercoastal residue--cargo procedure; optional ports.

    (a) When a vessel arrives at an Atlantic or Pacific coast port from 
a foreign port or ports with residue cargo for delivery at a port or 
ports on the opposite coast or on the Great Lakes, or where such arrival 
is at a port on the Great Lakes, with residue cargo for delivery at a 
port or ports on the Atlantic 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 Sec. 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 traveling 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, Customs Form 1302 in original 
only of inward 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 discharge on that coast and shall be 
used to verify the abstract Cargo Declarations surrendered at subsequent 
ports on that coast.

[T.D. 77-255, 42 FR 56323, Oct 25, 1977]



Sec. 4.87  Vessels proceeding foreign via domestic ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement 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 Declaration Outward With Commercial Forms, Customs Form 1302-A, in 
accordance with Sec. 4.63(a), of all the cargo laden for export at that 
port. The Vessel Entrance or Clearance Statement must clearly indicate 
all previous ports of lading.
    (c) Upon compliance with the applicable provisions of Sec. 4.61, 
the port director will grant the permit to proceed by making the 
endorsement prescribed by Sec. 4.85(b) on the Vessel Entrance or 
Clearance Statement, Customs Form 1300. One copy will be returned to the

[[Page 65]]

master, together with the vessel's document 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 
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 Entrance or Clearance Statement, Customs 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 retained on 
board, and a Ship's Stores Declaration, Customs Form 1303, in duplicate 
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 crewmembers' declarations returned 
to the master at the prior port, will be delivered by him to the port 
director.
    (e) Clearance shall be granted at the final port of departure from 
the United States in accordance with Sec. 4.61.
    (f) If a complete Cargo Declaration Outward With Commercial Forms, 
Customs Form 1302-A (see Sec. 4.63), and all required shipper's export 
declarations are not available for filing before departure of a vessel 
from any port, clearance on the Vessel Entrance or Clearance Statement, 
Customs Form 1300, may be granted in accordance with Sec. 4.75, subject 
to the limitation specified in Sec. 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 Declaration Outward With Commercial Forms, Customs 
Form 1302-A (see Sec. 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]



Sec. 4.88  Vessels with residue cargo for foreign ports.

    (a) Any foreign vessel or documented vessel with a registry or, 
where appropriate, a Great Lakes license endorsement which arrives at a 
port in the United States from a foreign 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 
Sec. 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\
---------------------------------------------------------------------------

    \119\ ``Any vessel having on board merchandise 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 therefor, without 
unlading the same and without the payment of duty thereon. * * *'' 
(Tariff Act of 1930, sec. 442; 19 U.S.C. 1442)
---------------------------------------------------------------------------

    (b) The port director shall designate the items of such merchandise, 
if any, for which foreign landing certificates \120\ will be required.
---------------------------------------------------------------------------

    \120\ ``The Secretary of the Treasury may by regulations require the 
production of landing certificates in respect of merchandise exported 
from the United States, or in respect of residue cargo, in cases in 
which he deems it necessary for the protection of the revenue.'' (Tariff 
Act of 1930, sec. 622; 19 U.S.C. 1622)
---------------------------------------------------------------------------

    (c) If the vessel clears directly foreign 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 Sec. 4.63), by the insertion 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

[[Page 66]]

item of the cargo from a foreign port which has been retained on board 
(see Sec. 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 procedure like that set forth in Sec. 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]



Sec. 4.89  Vessels in foreign trade proceeding via domestic ports and touching at intermediate foreign ports.

    (a) A vessel proceeding from port to port in the United States in 
accordance with Sec. Sec. 4.85, 4.86, or 4.87 may touch at an 
intermediate foreign port or ports to lade or discharge cargo or 
passengers. 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 Sec. 4.63), shall show the cargo for such foreign destination in 
the manner provided in Sec. 4.88(c).
    (b) The master shall also present to the port director the Cargo 
Declaration or Cargo Declarations required by Sec. Sec. 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 Sec. Sec. 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]



Sec. 4.90  Simultaneous vessel transactions.

    (a) A vessel may proceed from port to port in the United States for 
the purpose of engaging in two or more of the following transactions 
simultaneously, \121\ subject to the limitations hereafter mentioned in 
this section and the conditions stated in the sections indicated in the 
list:
---------------------------------------------------------------------------

    \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 destination.
---------------------------------------------------------------------------

    (1) Coastwise trade (Sec. 4.80).
    (2) Touching at a foreign port while in coastwise trade (Sec. 
4.82).
    (3) Trade with noncontiguous territory of the United States (Sec. 
4.84).
    (4) Carriage of residue cargo or passengers from foreign ports 
(Sec. Sec. 4.85-4.86).
    (5) Carriage of cargo or passengers laden for foreign ports (Sec. 
4.87).
    (6) Carriage of residue cargo for foreign ports (Sec. 4.88).
    (b) When a vessel is engaged simultaneously in two or more such 
transactions, the master shall indicate each type of transaction in 
which the vessel is engaged in his application for clearance on Customs 
Form 1300. The master 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 coastwise trade, including trade with noncontiguous 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 or, where appropriate, 
a Great Lakes license endorsement. Such a vessel shall not engage in 
transactions (1) or (3) unless permitted by the endorsement on its 
Certificate of Documentation to do so.

[[Page 67]]

    (e) When a single entry bond, containing the bond conditions set 
forth in Sec. 113.64, relating to international carriers, is filed at 
any port and it is applicable to the current voyage of the vessel, it 
shall cover all other transactions engaged in on that voyage of a like 
nature and another bond containing 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]



Sec. 4.91  Diversion of vessel; transshipment of cargo.

    (a) If any vessel granted a permit to proceed from one port in the 
United States for another such port as provided for in Sec. Sec. 
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 
(Customs Form 1300), \122\ the owner or agent of the vessel immediately 
shall give notice of the diversion to the port director who granted the 
permit, 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 an amendment of the 
permit previously granted, shall authorize the vessel to proceed to the 
new destination, and shall be filed by the director of the latter port 
with the Form 1300 submitted on entry of the vessel.
---------------------------------------------------------------------------

    \122\ See Sec. 4.33.
---------------------------------------------------------------------------

    (b) If any vessel cleared from a port in the United States for a 
foreign port as provided for in Sec. 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 permit to proceed coastwise, and shall 
authorize the vessel to proceed to the new destination. On arrival at 
the new destination, 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 certificate 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 discharged), (4) a Crew's Effects Declaration in 
duplicate of all unentered articles acquired abroad by the officers and 
crew of the vessel which are still retained on board, and (5) a Ship's 
Stores Declaration in duplicate of the stores on board.
    (c) In a case of necessity, a port director may grant an application 
on Customs Form 3171 of the owner or agent of an established line for 
permission to transship \123\ all cargo and passengers from one vessel 
of the United States to another such vessel under Customs supervision, 
if the first vessel is transporting residue cargo for domestic or 
foreign ports or is on an outward foreign voyage or a voyage to 
noncontiguous territory of the United States, and is following the 
procedure prescribed in Sec. Sec. 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 Immigration 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-reference shall be made on the separate traveling 
manifest to show whether any other traveling manifest is being carried 
forward on the same vessel.
---------------------------------------------------------------------------

    \123\ See Sec. 4.31.
    \124\ [Reserved]

[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]

[[Page 68]]



Sec. 4.92  Towing.

    No vessel other than a vessel documented for the coastwise or Great 
Lakes trade, or which would be entitled to be so documented except for 
its tonnage (see Sec. 4.80), may tow a vessel other than a vessel in 
distress between points in the 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 further 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 Adjustment 
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]



Sec. 4.93  Coastwise transportation by certain vessels of empty vans, tanks, and barges, equipment for use with vans and tanks; empty instruments of 
          international traffic; stevedoring equipment and material; 
          procedures.

    (a) Vessels of the United States prohibited 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 embraced within the coastwise laws of the United 
States:
    (1) Empty cargo vans, empty lift vans, and empty shipping tanks; 
equipment for use with cargo vans, lift vans, or shipping tanks; empty 
barges specifically designed for carriage aboard a vessel and equipment, 
excluding propulsion equipment, for use with such barges; and empty 
instruments of international traffic exempted 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 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 material, if such equipment and 
material is owned or leased by the owner or operator of the transporting 
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. \125\
---------------------------------------------------------------------------

    \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 registry, 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 extends 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 coastwise 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 exempted 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 described 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]
---------------------------------------------------------------------------

    (b)(1) The following nations have been found to extend privileges 
reciprocal 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

[[Page 69]]


Malta
Marshall Islands, Republic of the
Mexico
Netherlands
Netherlands Antilles
Norway
Pakistan
Philippines
Polish People's Republic
Portugal
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 articles 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 describe any article 
mentioned in paragraph (a) of this section laden aboard and transported 
from one United States port to another, giving its identifying 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 include a statement (1) that the articles 
specified in paragraph (a)(1) of this section are owned or leased by the 
owner or operator of the transporting vessel and are transported for his 
use in handing 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 stevedoring 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 transportation of the article without identifying 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 include such 
information provided the Cargo Declaration includes a statement, that 
the director of the port of unlading will be presented with a statement 
at the time of entry of the vessel that will list the identifying number 
or symbol or other appropriate identifying 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 assessed for violation of 
this paragraph.

[T.D. 68-302, 33 FR 18436, Dec. 12, 1968]

    Editorial Note: For Federal Register citations affecting Sec. 4.93, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.

                                 General



Sec. 4.94  Yacht privileges and obligations.

    (a) Any documented vessel with a pleasure license endorsement, as 
well as any undocumented American pleasure vessel, shall be used 
exclusively for pleasure and shall not transport merchandise 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 
clearing and is not subject to entry upon its arrival in a port of the 
U.S., provided it

[[Page 70]]

has not visited a hovering vessel, received merchandise while in the 
customs waters beyond the territorial sea, or received merchandise while 
on the high seas. Such a vessel shall immediately report arrival to 
Customs when 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 satisfaction of the Secretary 
of the Treasury 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 satisfaction of the Secretary of the 
Treasury that yachts of the United States are granted such privileges in 
the following countries:

Argentina
Australia
Austria
Bahama Islands
Belgium
Bermuda
Canada
Denmark
Finland
France
Germany, Federal Republic of
Great Britain (including Turks and Caicos Islands; St. Vincent 
(including the territorial waters of the Northern Grenadine Islands), 
the Cayman Islands, the St. Christopher - Nevis - Anguilla Islands and 
the British Virgin Islands)
Greece
Honduras
Ireland
Italy
Jamaica
Liberia
Marshall Islands
Netherlands
New Zealand
Norway
Sweden
Switzerland
Turkey

    (c) In order to obtain a cruising license 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 
description 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 application, the port director will issue a cruising 
license in the form prescribed by paragraph (d) of this section 
permitting the yacht, for a stated period not to exceed one year, to 
arrive and depart 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 proceed, 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 immediately reporting arrival at the 
nearest Customs facility or other place designated by the port director. 
Individuals shall remain on board until directed 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 -------- from --------(Date) the --------(Flag) ----
---- (Rig) yacht --------(Name) belonging to ---------------- of 
(Owner's name) ----------------(Address) shall be permitted to arrive at 
and depart from the United States and to cruise in the waters of the 
Customs port of
________________________________________________________________________
 (Name of port or ports)
without entering and clearing, without filing manifests and obtaining or 
delivering permits to proceed, and without the payment of entry and 
clearance fees, or fees for receiving manifests and granting permits to 
proceed, duty on tonnage, tonnage tax, or light money.
    This license is granted subject to the condition 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.

[[Page 71]]

    Issued this ---------- day of --------------, 19----
________________________________________________________________________
                                              (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 Rico), for 
sale or charter to a resident thereof, or
    (2) If brought into the United States (including 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 considered 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 described, 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 applicable to foreign 
vessels arriving at, departing from, and proceeding between ports of the 
United States.

[T.D. 69-266, 34 FR 20423, Dec. 31, 1969]

    Editorial Note: For Federal Register citations affecting Sec. 4.94, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 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 consumer 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 deferral 
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 certify to Customs in writing that 
the vessel 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 
question, including any transaction referred 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 license under Sec. 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 completion and duty payment are deferred under paragraph (a) of 
this section is completed within the 6-month bond period specified in 
paragraph (a)(2) of this

[[Page 72]]

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 appropriate duty (calculated at the 
applicable rates provided for under subheading 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 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 paragraph (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 subheading 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 importation). Upon entry 
completion and deposit of duty under this paragraph, the bond posted 
with Customs will be returned to the importer of record, and a new bond 
on Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter, may be required by the appropriate port 
director.

[68 FR 13625, Mar. 20, 2003]



Sec. 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 Sec. 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]



Sec. 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 provided for by the Halibut Fishing Vessels 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 citizen 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 products \131a\ and
---------------------------------------------------------------------------

    \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 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)
    \132\ [Reserved]
---------------------------------------------------------------------------

    (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

[[Page 73]]

with Canada on Pacific Coast Albacore Tuna Vessels and Port Privileges, 
entered 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 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 paragraphs (d) and (g) of this 
section), 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 vessel 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 applies to landing 
in a Foreign Trade Zone). However, the prohibition is limited 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'' includes processing, storing, transporting 
(except in foreign commerce), planting, cultivating, catching, taking, 
or harvesting 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 secure supplies, 
equipment, or repairs. Such a vessel may come into any other port of 
entry or, if properly authorized to do so under Sec. 101.4(b) of this 
chapter, into any place other than a port of entry, for the purpose of 
securing supplies, equipment, or repairs only, but shall not land its 
catch. A convention vessel which comes into the United States as 
provided for in this paragraph shall comply with the usual requirements 
applicable to foreign vessels 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 Sec. 101.4(b) of this chapter, into a place other than a port of 
entry for the purpose of securing supplies, equipment, or repairs, but 
shall not land its catch. A nonconvention fishing vessel which comes 
into the United States as provided for in this paragraph shall comply 
with the usual requirements applicable to foreign vessels arriving at 
and departing from ports of the United States.
    (f) A nonconvention cargo vessel, although 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 requirements. 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

[[Page 74]]

port of entry or, if properly authorized to do so under Sec. 101.4(b) 
of this chapter, into any place other than a port of entry, for the 
purpose of securing supplies, 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 
applicable to foreign vessels arriving at and departing from ports of 
the United States.
    (h) A convention vessel, a nonconvention fishing vessel, a 
nonconvention cargo vessel, or a treaty vessel, which arrives in the 
United States in distress shall be subject to the usual requirements 
applicable to foreign vessels arriving in distress. While in the United 
States, supplies, equipment, or repairs may be secured, but, except as 
specified 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 possible, 
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 arriving 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, including 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]



Sec. 4.97  Salvage vessels.

    (a) Only a vessel of the United States, a numbered motorboat owned 
by a citizen, or a vessel operating within the purview of paragraph (d) 
or (e) of this section, shall engage in any salvage operation in 
territorial waters of the United States unless an application addressed 
to the Commissioner of Customs to use another specified vessel in a 
completely described operation has been granted. \133\
---------------------------------------------------------------------------

    \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 waters, including any portion of the Saint Lawrence River 
through which the international boundary line extends, or in territorial 
waters of the United States on the Gulf of Mexico, except when 
authorized by a treaty or in accordance with the provisions of section 
725 of this title: Provided, however, That if, on investigation, 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 pursuant to section 288 
of this title, is available in any particular locality he may authorize 
the use of a foreign vessel or vessels in salvaging 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 assistance to vessels or salvage operations authorized by 
Article II of the treaty between the United States and Great Britain 
`concerning reciprocal rights for United States and Canada 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 facilitate 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))
---------------------------------------------------------------------------

    (b) Upon receipt of such an application, the Commissioner of Customs 
will cause an investigation to be made immediately to determine whether 
a suitable 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 available and that the facts otherwise warrant 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 permitted to conduct such operations by

[[Page 75]]

article II of the treaty between the United States and Great Britain 
signed on May 18, 1908, \134\ or by section 725, title 46, United States 
Code. \135\ If any such vessel engages in a salvage operation 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.
---------------------------------------------------------------------------

    \134\ ``The High Contracting Parties agree that vessels and wrecking 
appliances, either from the United States or from the Dominion of 
Canada, may salve any property wrecked and may render aid and assistance 
to any vessels wrecked, disabled or in distress in the waters or on the 
shores of the other country in that portion of the St. Lawrence 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 distance 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 operations of such 
vessels or wrecking appliances.
    ``Vessels from either country employed in salving in the waters of 
the other shall, as soon as practicable afterwards, make full report at 
the nearest custom house of the country in whose waters such salving 
takes place.'' (35 Stat. 2036)
    \135\ ``Canadian vessels and wrecking appurtenance may render aid 
and assistance to Canadian or other vessels and property wrecked, 
disabled, or in distress in the waters 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 contiguous to the Dominion of 
Canada within the meaning of this statute.
---------------------------------------------------------------------------

    (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\
---------------------------------------------------------------------------

    \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 intersection of the 
International Boundary Line and the coast of the Gulf of Mexico.'' (49 
Stat. 3360)

[28 FR 14596, Dec. 31, 1963, as amended by T.D. 69-266, 34 FR 20423, 
Dec. 31, 1969]



Sec. 4.98  Navigation fees.

    (a)(1) The Customs Service shall publish a General Notice in the 
Federal Register and Customs Bulletin periodically, setting forth a 
revised schedule 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 manifest.
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 foreign vessels only.
8 Furnishing copy of official document, including certified outward 
          foreign manifest, and others not elsewhere enumerated.


The published revised fee schedule shall remain in effect until changed.
    (2) The fees shall be calculated in accordance with Sec. 24.17(d) 
Customs Regulations (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

[[Page 76]]

this section for which reimbursable overtime compensation is payable 
under 19 U.S.C. 267 or 19 U.S.C. 1451 and Sec. 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.
    (4) The revised fee schedule shall be made available to the public 
in Customs offices.
    (5) The respective fees shall be designated 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 directly 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, northeastern, or 
northwestern frontier otherwise 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 interior waters not navigable to the ocean.
    (d) Fee 3 shall be collected for granting a permit to a foreign 
vessel to proceed to another Customs port. It shall be collected from a 
foreign vessel clearing directly for a port in noncontiguous 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 
transactions.
    (e) Fee 4 shall be collected for receiving the manifest of a foreign 
vessel arriving from another Customs port. It shall be collected from a 
foreign vessel entering directly from a port in noncontiguous 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 another port on a voyage by sea via a foreign 
port. Only one fee shall be collected in the case of simultaneous vessel 
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 provisions of Sec. 4.12(a)(3). An original post 
entry may be supplemented by additional post entries in instances where 
items were omitted from the original post entry. A separate fee shall be 
collected for each supplemental post entry made to the original post 
entry.
    (f) [Reserved]
    (g) Fee 7 shall be collected from foreign vessels only.
    (h) Fee 8 shall be collected for each copy of any official document, 
whether certified or not, furnished to any person other than a 
Government officer.
    (i) Private and commercial vessels, and passengers aboard commercial 
vessels, may be subject to the payment of fees for services provided in 
connection with their arrival as set forth in Sec. 24.22 of this 
chapter.
    (j) The loading or unloading of merchandise or passengers from a 
commercial vessel at a U.S. port may cause the harbor maintenance fee 
set forth in Sec. 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]



Sec. 4.99  Forms; substitution.

    (a) Customs Forms 1300, 1302, 1302-A, 1303, and 1304 printed by 
private parties or foreign governments shall be accepted 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 metric A4 size paper, 210 by 297 
millimeters (approximately 8\1/4\ by 11\2/3\ inches).
    (ii) The vertical format of Customs Forms 1300, 1302-A, 1303, and 
1304 may

[[Page 77]]

be increased in size up to a maximum of 14 inches.
    (iii) Customs Form 1302 may be reduced in size to not less than 
either 8\1/2\ by 11 inches or 210 by 297 millimeters (metric A4 size). 
If Customs Form 1302 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 discretion, 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 government first must obtain specific approval 
from Headquarters, U.S. Customs Service.
    (d) Forms which do not comply with the requirements of this section 
are not acceptable without the specific approval of the Commissioner of 
Customs.

[T.D. 79-255, 44 FR 57088, Oct. 4, 1979; T.D. 00-22, 65 FR 16517, Mar. 
29, 2000]



Sec. 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 August 5, 1935, shall be addressed to the Secretary of the 
Treasury and delivered 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 imported.
    (6) Country or countries of exportation.
    (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 jeopardized 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 believes 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 license was issued may revoke the license if any of its terms 
have been willfully or intentionally violated or for any other cause 
which may be considered prejudicial to the revenue or otherwise against 
the interest of the United States.

[T.D. 72-211, 37 FR 16486, Aug. 15, 1972]



Sec. 4.101  Prohibitions against Customs officers and employees.

    No Customs officer or employee shall:
    (a) Own, in whole or in part, any vessel except a yacht or other 
pleasure boat;
    (b) Act as agent, attorney, or consignee 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 STATION--Table of Contents




Sec.
7.1 Puerto Rico; spirits and wines withdrawn 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.

[[Page 78]]

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.



Sec. 7.1  Puerto Rico; spirits and wines withdrawn from warehouse for shipment to; duty on foreign-grown coffee.

    (a) When spirits and wines are withdrawn 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 merchandise (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 containers so 
used, and their classification and value, shall be shown on the 
withdrawal in accordance with Sec. 144.41 of this chapter. If no 
imported merchandise or containers have been used, the warehouse 
withdrawal shall bear an endorsement to that effect. (See Sec. Sec. 
191.105 and 191.106 of this chapter.)
---------------------------------------------------------------------------

    \1\ [Reserved]
    \2\ ``* * * Distilled spirits and wines which are rectified in 
bonded manufacturing warehouses, 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 hereinbefore provided, and likewise for shipment in bond to 
Puerto Rico, subject to the provisions of this section, and under such 
regulations as the Secretary of the Treasury may prescribe, there to be 
withdrawn for consumption or be rewarehoused and subsequently withdrawn 
for consumption: Provided, 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 containers used in the manufacture and putting up 
of such spirits and wines in such warehouses: Provided further, That no 
internal-revenue tax shall be imposed on distilled spirits and wines 
rectified in class six warehouses 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)
---------------------------------------------------------------------------

    (b) The spirits and wines shall be forwarded 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\
---------------------------------------------------------------------------

    \3\ Section 319, Tariff Act of 1930, authorizes the Legislature of 
Puerto Rico to impose a duty on coffee imported into Puerto Rico, 
including 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.

(Secs. 311, 319, 484(a), 46 Stat. 691, as amended, 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]



Sec. 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 customs 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 Sec. 7.3 or in part 148 of this chapter. The 
principal such insular 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 Commonwealth 
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 Sec. 7.3 and of part 148 of this chapter.
    (b) Importations into Guam, American Samoa, Wake Island, Midway 
Islands, Johnston Atoll, and the Commonwealth of the Northern Mariana 
Islands are not governed by the Tariff Act of 1930, as amended, or the 
regulations contained in this chapter. The

[[Page 79]]

customs administration of Guam is under the Government of Guam. The 
customs administration of American Samoa is under the Government of 
American Samoa. The customs administration of Wake Island is under the 
jurisdiction of the Department of the Air Force (General Counsel). The 
customs administration of Midway Islands is under the jurisdiction of 
the Department 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 Commonwealth.
    (c) The Secretary of the Treasury administers the customs laws of 
the U.S. Virgin Islands through the United States Customs Service. The 
importation 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 applicable 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]



Sec. 7.3  Duty-free treatment of goods imported from insular possessions of the United States other than Puerto Rico.

    (a) General. Under the provisions of General Note 3(a)(iv), 
Harmonized Tariff 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 possession 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 except 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 
manufactured or produced in any such insular 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 insular possession.
    (b) Origin of goods. For purposes of this section, goods shall be 
considered to be the growth or product of, or manufactured 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 different article of commerce as a 
result of production or manufacture performed in the insular possession.
    (c) Foreign materials. For purposes of this section, the term 
``foreign materials'' covers any material incorporated in goods 
described in paragraph (b)(2) of this section other than:
    (1) A material which was wholly the growth or product of an insular 
possession or of the customs territory of the United States;
    (2) A material which was substantially transformed in an insular 
possession 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

[[Page 80]]

    (3) A material which may be imported into the customs territory of 
the United States from a foreign country and entered free of duty 
either:
    (i) At the time the goods which incorporate the material are 
entered; or
    (ii) At the time the material is imported into the insular 
possession, provided that the material was incorporated into the goods 
during the 18-month period after the date on which the material was 
imported into the insular possession.
    (d) Foreign materials value limitation. For purposes of this 
section, the determination of whether goods contain foreign materials 
valued at more than 70 or 50 percent of the total value of the goods 
shall be made based on a comparison between:
    (1) The landed cost of the foreign materials, 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 manufacture 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 possession and any charges which may accrue after 
landing; and
    (2) The final appraised value of the goods imported into the customs 
territory of the United States, as determined 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 possession, or to be shipped from the United States directly to 
an insular possession and returned from the insular possession 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 except for the purpose of sale other than at retail, and the 
port director is satisfied that the importation into the insular 
possession or the United States results 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 
appropriate 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 possession to the United States by direct 
shipment within the meaning of paragraph (e)(1) of this section, and 
such evidence of direct shipment shall be subject to such verification 
as deemed necessary by the port director. Evidence of direct shipment 
shall not be required when the port director is otherwise satisfied, 
taking into consideration the kind and value of the merchandise, 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

[[Page 81]]

provided in paragraph (a)(1) of this section, there shall be filed with 
the entry/entry summary a properly completed certificate of origin on 
Customs Form 3229, signed by the chief or assistant chief customs 
officer or other official responsible for customs administration 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 section. 
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 required for any shipment eligible for informal entry under Sec. 
143.21 of this chapter or in any case where the port director 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 eligible for informal entry under 
Sec. 143.21 of this chapter are sought to be admitted free of duty as 
provided in paragraph (a)(2) of this section, the following 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, -------------------- (name) of -------------------- 
(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 ------------, 19----, to -------------------- (name) of ------
-------------- (organization) on -------------------- (insular 
possession) via the -------------------- (name of carrier) and that the 
goods remained in said insular possession until shipped by me directly 
to the United States via the -------------------- (name of carrier) on 
------------, 19----.

----------------------------------------------------------------------------------------------------------------
                 Marks                      Numbers        Quantity            Description             Value
----------------------------------------------------------------------------------------------------------------
 
 
 
 
 
 
----------------------------------------------------------------------------------------------------------------

    Dated at ----------------, this -------- day of ------------, 19--
--.
Signature:______________________________________________________________

    (ii) A declaration by the importer in the United States in 
substantially the following form:

    I, -------------------- (name), of -------------------- 
(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 previously 
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 -------------------- 
(name of carrier) on ------------, 19----.

________________________________________________________________________
(Date)

________________________________________________________________________
(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 insular possession of the 
United States other than Puerto Rico without payment 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 
insular possession. No drawback of internal-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 Islands or Johnston Atoll.

[T.D. 97-75, 62 FR 46439, Sept. 3, 1997]

[[Page 82]]



Sec. 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 Customs 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 containing 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, provided that the articles for which refunds are requested 
were entered during a 3-year period beginning 2 years before the date of 
issuance of the Form ITA-360 certificate from the Department of 
Commerce.
    (b) The Form ITA-360 may not be used to secure refunds. To secure a 
refund, the party requesting the refund of duties (claimant) must 
present to Customs Form ITA-361, Request for Refund of Duties on Watches 
and Watch Movements, properly executed, and authenticated by the 
Department of Commerce.
    (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 Customs at the same port 
where the watch import entry was originally filed and duties paid. The 
documentation accompanying Form ITA-361 shall include a copy of the 
import entry, providing proof that duty was paid on the watches and 
watch movements.
    (e) When requesting the refund of duties on Form ITA-361, the 
claimant also must complete and submit to Customs 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 knowledge and belief; that no notices of exportation of 
articles with benefit of drawback were filed upon exportation of this 
merchandise from the United States; that no liquidated 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 
reimbursement to salaries and expenses of those Customs 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 transferee named on Form ITA-360 must be filed within this 
1-year period. This expiration date applies equally to all refund 
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 expires 1 year from 
its date of issuance.
    (h) Customs will process only those refund requests made in 
accordance with the joint rules of the Departments of Commerce and the 
Interior governing the issuance and handling of certificates 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. Redesignated 
and amended by T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 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]

[[Page 83]]



PART 10_ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, ETC.--Table of Contents




                      Subpart A_General Provisions

                     Articles Exported and Returned

Sec.
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 exemption.
10.7 Substantial containers or holders.
10.8 Articles exported for repairs or alterations.
10.8a Imported articles exported and reimported.
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 information.
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 assembled 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; professional equipment and tools of 
          trade; theatrical 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 substantial 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 windows for religious 
          institutions.
10.53 Antiques.
10.54 Gobelin and other hand-woven tapestries.

                             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 merchandise.
10.62b Aircraft turbine fuel.
10.63 Landing of supplies and stores from receiving 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 exhibition and returned; horses 
          exported for horse racing and returned; procedure on entry.
10.67 Articles exported for scientific or educational purposes and 
          returned; procedure on entry.

[[Page 84]]

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.

                            Animals and Birds

10.70 Purebred animals for breeding purposes; 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 collections.
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 manufacture of automotive vehicles.

                   Master Records, and Metal Matrices

10.90 Master records and metal matrices.

                               Prototypes

10.91 Prototypes used exclusively for product 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 nonbeverage 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 reduced 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 character.

                 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 between United States and Canadian refiners.

[[Page 85]]

                 Certain Fresh, Chilled, or Frozen Beef

10.180 Certification.

        Watches and Watch Movements From U.S. Insular Possessions

10.181-10.182 [Reserved]

                             Civil Aircraft

10.183 Duty-free entry of civil aircraft, aircraft 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 treatment claim and submitting 
          supporting documentation.

  Subpart D_Textile and Apparel Articles Under the African Growth and 
                             Opportunity 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 treatment.
10.216 Maintenance of records and submission 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 treatment.
10.226 Maintenance of records and submission of Certificate by importer.
10.227 Verification and justification of claim for preferential 
          treatment.
10.228 Additional requirements for preferential treatment of brassieres.

   Non-Textile Articles Under the United States-Caribbean Basin Trade 
                             Partnership 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 submission 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 treatment.
10.246 Maintenance of records and submission of Certificate by importer.
10.247 Verification and justification of claim for preferential 
          treatment.
10.248 Additional requirements for preferential 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 treatment.
10.256 Maintenance of records and submission of Certificate by importer.

[[Page 86]]

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.
10.308 Records retention.
10.309 Verification of documentation.
10.310 Election to average for motor vehicles.
10.311 Documentation for election to average 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 information.
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 transshipment.

                         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 eligibility.
10.423 Certificate of eligibility not required.
10.424 Effect of noncompliance; failure to provide documentation 
          regarding transshipment 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 containers.
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 determinations.
10.474 Repeated false or unsupported preference 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 declarations and certifications.

                Goods Returned After Repair or Alteration

10.490 Goods re-entered after repair or alteration 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.

[[Page 87]]

10.521 Goods eligible for tariff preference level claims.
10.522 Submission of certificate of eligibility.

                             Rules of Origin

10.530 Definitions.
10.531 Originating goods.
10.532 Integrated Sourcing Initiative.
10.533 De minimis.
10.534 Accumulation.
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 containers.
10.540 Packing materials and containers for shipment.
10.541 Indirect materials.
10.542 Third country transportation.
10.543 Certain apparel goods made from fabric 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 determinations.
10.552 Information sharing by CBP regarding 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 statement.
10.562 Framework for correcting claims or supporting statements.

                Goods Returned After Repair or Alteration

10.570 Goods re-entered after repair or alteration in Singapore.

 Subpart J_Dominican Republic_Central America_United States Free Trade 
                                Agreement

 Retroactive Preferential Tariff Treatment for Textile and Apparel Goods

10.699 Refunds of excess customs duties.

           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 transshipment.

                             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 shipment.
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 transshipment of non-originating fabric or apparel 
          goods.

[[Page 88]]

                 Origin Verifications and Determinations

10.784 Verification and justification of claim for preferential 
          treatment.
10.785 Special rule for verifications in Morocco of U.S. imports of 
          textile and apparel products.
10.786 Issuance of negative origin determinations.

                                Penalties

10.787 Violations relating to the MFTA.

                Goods Returned After Repair or Alteration

10.788 Goods re-entered after repair or alteration 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 transshipment.

                             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 shipment.
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 transshipment of non-originating fabric or apparel 
          goods.

                 Origin Verifications and Determinations

10.824 Verification and justification of claim for preferential 
          treatment.
10.825 Issuance of negative origin determinations.

                                Penalties

10.826 Violations relating to the BFTA.

                Goods Returned After Repair or Alteration

10.827 Goods re-entered after repair or alteration in Bahrain.

     Subpart O_Haitian Hemispheric Opportunity through Partnership 
                        Encouragement Act of 2006

10.841 Applicability.
10.842 Definitions.
10.843 Articles eligible for duty-free treatment.
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 treatment.
10.848 Declaration of compliance.
10.849 Importer obligations.
10.850 Verification of claim for duty-free treatment.

    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;
    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;
    Sec. 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;
    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;

[[Page 89]]

    Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721;
    Sections 10.221 through 10.228 and Sec. Sec. 10.231 through 10.237 
also issued under 19 U.S.C. 2701 et seq.
    Sections 10.241 through 10.248 and Sec. Sec. 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).
    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.

    Source: 28 FR 14663, Dec. 31, 1963, unless otherwise noted.



                      Subpart A_General Provisions

                     Articles Exported and Returned



Sec. 10.1  Domestic products; requirements 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 Sec. 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 Schedule of the United States (HTSUS):
    (1) A declaration by the foreign shipper in substantially the 
following form:
    I, ----------------------,
declare that to the best of my knowledge and belief the articles herein 
specified were exported from the United States, from the port of ------
---------- on or about ----------------, 19----, and that they are 
returned without having been advanced in value or improved in condition 
by any process of manufacture or other means.

----------------------------------------------------------------------------------------------------------------
      Marks              Number            Quantity              Description              Value, in U.S. coin
----------------------------------------------------------------------------------------------------------------
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                   .................  .................  ...........................  ..........................
                           (Date)     .................  ...........................              (Signature)
                   .................  .................  ...........................  ..........................
                        (Address)     .................  ...........................               (Capacity)
----------------------------------------------------------------------------------------------------------------

    (2) A declaration by the owner, importer, consignee, or agent having 
knowledge of the facts regarding the claim for free entry. If the owner 
or ultimate consignee is a corporation, such declaration may be signed 
by the president, 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 attorney executed under the conditions 
outlined in subpart C, part 141 of this chapter and a certification by 
the corporation 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, --------------,
declare that the (above) (attached) declaration by the foreign shipper 
is true and correct to the best of my knowledge and belief, that the 
articles were manufactured by ---------------- (name of manufacturer) 
located in ---------------- (city and state), that the articles were not 
manufactured or produced in the United States under subheading 
9813.00.05, HTSUS, and that the articles were exported from the United 
States without benefit of drawback.

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)


[[Page 90]]


    (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 section, such other 
documentation or evidence as may be necessary to substantiate the claim 
for duty-free treatment. 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 articles.
    (c) A certificate from the master of a vessel stating that products 
of the United States are returned without having been unladen from the 
exporting vessel may be accepted in lieu of the declaration of the 
foreign shipper required by paragraph (a)(1) of this section.
    (d) If the port director is reasonably satisfied, because of the 
nature of the articles or production of other evidence, that the 
articles are imported in circumstances meeting the requirements 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 conditions 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 coverings or containers 
of merchandise not subject to an ad valorem rate of duty unless such 
articles would be dutiable 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 
purposes) 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 returned 
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 motion 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 returned to the United States 
under subheading 9801.00.10, HTSUS, by or for the account of an aircraft 
owner or operator 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 documentation 
required by Sec. 142.3 of this chapter. If the Customs officer is 
satisfied that the articles are products of the United States, that they 
have not been improved in condition or advanced in value while abroad, 
and that no drawback 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 Customs Form 3311:
    (i) The name and address of the aircraft owner or operator by whom 
or for whose account the articles are returned 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 equipment returned to the United States

[[Page 91]]

under subheading 9801.00.10, HTSUS, the entry summary may be made on 
Customs Form 3311. The entry summary on Customs Form 3311 shall be 
executed in duplicate by the entrant and supported by the entry 
documentation required by Sec. 142.3 of this chapter. Before an entry 
summary on Customs Form 3311 may be accepted for nonconsumable vessel 
stores and equipment, the Customs officer shall be satisfied that:
    (i) The articles are products of the United States.
    (ii) The articles have not been improved 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 revenue 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 person 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 Government,
    (ii) Not landed in a foreign country, except for any needed repairs, 
adjustments, 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 unquestionably products of the United States and do not 
appear to have been advanced in value or improved in condition while 
abroad and no quota is involved, free entry thereof may be made under 
subheading 9801.00.10 on Customs Form 3311, executed by the owner, 
importer, consignee, 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 believe 
that Customs drawback or exemption from internal revenue tax, or both, 
were probably allowed on exportation of the articles or that they are 
otherwise subject to duty. The entrant 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 articles were returned to the United 
States, and the value of the articles. The entrant shall also produce 
evidence of his right to make entry (except as provided in Sec. 
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 
ultimate consignee thereof may be required 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 alteration, 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 submitted as well for such articles as provided in 
Sec. 143.23(h) of this chapter), executed by the owner, importer, 
consignee, 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 believe that 
Customs drawback or exemption from internal revenue tax, or both, were 
probably allowed on exportation of the articles or that they are 
otherwise subject to duty. The person making entry shall show on Customs

[[Page 92]]

Form 3311 the name of the importing conveyance, the date of its arrival, 
the name of the country from which the articles 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 Sec. 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 ultimate consignee thereof may be required 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]



Sec. 10.3  Drawback; internal-revenue tax.

    (a) Except as prescribed in Sec. 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 
satisfied 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 
importation was paid in respect of the imported article before it was 
exported from the United States and was not refunded. Except as provided 
for in Sec. 10.1(f), when it is impracticable, because of the 
destruction of Customs records or other circumstances, to determine 
whether drawback was allowed, or the amount of drawback allowed, with 
respect to an article established to be a returned product of the United 
States which has not been advanced in value or improved in condition 
while abroad, there shall be assessed on the returned article an amount 
of duty determined as follows:
    (1) If there is any likelihood that drawback was allowable on the 
exportation of like articles at any time when the imported article may 
have been exported from the United States, the estimated amount of any 
drawback which would have been allowable if duty had been paid on any 
foreign merchandise 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 importation 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 article, the amount of any 
internal-revenue tax which would be payable at the time of importation 
if the returned article 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 returned article were wholly of foreign 
origin and originally imported. (See Sec. 10.7(a).) Except as provided 
for in Sec. 10.1(f), if the imported article is of a kind which would 
be subject to an internal-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 warehouse for consumption on like 
articles of foreign origin, plus the amount of any drawback allowed on 
the exportation 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 
exportation 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

[[Page 93]]

amount in excess of the ordinary Customs duty and internal-revenue tax 
applicable to like articles of foreign origin. In any case, where 
payment of internal-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 evidence as to the nonallowance 
of drawback or the amount thereof allowed on the following articles of 
American manufacture or production, duty shall be assessed thereon in 
the amounts respectively 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    24 cents each.
 accordance with sec. 10.3(c)).
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      $0.08478 per square
   yarn dyed).                                   meter.
Tallow, refined, inedible.....................  $0.003 per kilogram.
------------------------------------------------------------------------

    (c) The following articles shall be admitted free of duty, even 
though exported 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 containers of merchandise;
    (3) Any article provided for in subheadings 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 
Government disproportionate to the probable amount of such duty; and
    (4) Other articles of domestic manufacture 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 produced in the United States in a 
Customs bonded warehouse and exported shall be subject on reimportation 
to a duty equal to the total duty and internal-revenue tax, if any, 
imposed at the time of entry for consumption or withdrawal from 
warehouse for consumption with respect to the importation of like 
articles not previously exported from the United States.
    (e) Animals straying across the border or driven across the border 
for pasturage purposes or for feeding to improve them for the market and 
not returned within 8 months are excluded from free entry as domestic 
products returned.
    (f) Tobacco products and cigarette papers and tubes classifiable 
under subheading 9801.00.80, HTSUS, may be released 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 Internal 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]

[[Page 94]]



Sec. 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.



Sec. 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, provided their 
identity is established under the regulations in this part.
    (b) The term ``shook'' embraces only shooks which at the time of 
exportation 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 barrels shall file in 
triplicate with the director of the port of exportation, at least 6 
hours before the landing of the articles on the exporting vessel, a 
Certificate of Registration, Customs Form 4455.
    (e) The Certificate of Registration, CF 4455, shall be completed in 
triplicate by the port director after verification from the manifest of 
the exporting vessel and the return of the lading officer. The original 
shall be forwarded by the port director to the consignee. 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 
American 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 certificate 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 director of the port of 
exportation of the shooks and staves as to each exportation thereof and 
as to the returns thereof in boxes, barrels, etc. Notifications of such 
returns shall be given to the port of exportation by the director of the 
port of importation. When returns 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 making inquiry about the merchandise 
being imported and alleged to contain shooks or staves covered by the 
particular exportation.
    (h) A record of cloth boards of domestic 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 Chapter 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]



Sec. 10.6  Shooks and staves; claim for duty exemption.

    An importer, seeking an exemption from duty on account of boxes or 
barrels 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 director of the port of exportation of the

[[Page 95]]

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 
question 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]



Sec. 10.7  Substantial containers or holders.

    (a) Substantial containers or holders, which are products of the 
United States, which are of the usual and ordinary types used in the 
shipment or transportation of goods, which are reusable for such 
purposes, and which are imported containing or holding merchandise, 
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 
admitted without entry if readily identifiable 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 purpose, and which are imported containing or 
holding merchandise, shall be exempt from duty if (1) exported in 
accordance with the regulations contained in Sec. 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, ----------------, of ----------------, do hereby certify that to 
the best of my knowledge and belief the substantial containers and 
holders mentioned in (the annexed invoice) (invoice No. -------- of ----
----, 19----) * are of the manufacture of ---------------- and were 
exported from the United States at the port of ------------, per S.S. --
-------------- on ----------, 19----, and that the same are being 
returned to the United States (empty) filled with --------) (holdings --
------------).*
---------------------------------------------------------------------------

    * Cross out inapplicable words.
---------------------------------------------------------------------------

________________________________________________________________________
                                                                 Shipper

    (d) The port director, after verification of the foreign shipper's 
certificate with the records of the director 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 Sec. 
10.6 shall be applicable.
    (e) If claim for exemption from duty for such containers or holders 
of foreign 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 
imported duty paid are reimported empty, they may be admitted without 
entry if readily identifiable as having been previously 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]



Sec. 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 Sec. 181.64 of this chapter, the following 
documents shall be filed in connection with the entry of articles which 
are returned after having been exported for repairs or alterations and 
which are claimed to be subject to duty only on the value of the repairs 
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,----------------, 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 ----------------, 19----, 
from---------------- (name and address of owner or exporter in the 
United States); that

[[Page 96]]

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 whatever has been made to replace any of the 
articles originally received by me (us) from the owner or exporter 
thereof mentioned above.

------------------------------------------------------------------------
                                              Full cost or
                                                (when no
                                                charge is
                                 Description   made) value   Total value
                                 of articles   of repairs    of articles
       Marks and numbers           and of          or           after
                                 repairs or    alterations   repairs or
                                 alterations      (see       alterations
                                               subchapter
                                               II, chapter
                                               98, HTSUS)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (2) A declaration by the owner, importer, consignee, or agent having 
knowledge of the pertinent facts in substantially the following form:

    I, ----------,
declare that the (above) (attached) declaration 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 exported from the United States for repairs or 
alterations and without benefit of drawback from ---------------- (port) 
on ----------------, 19----; 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.

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (b) The port director may require such additional documentation as 
is deemed necessary to prove actual exportation of the articles from the 
United States for repairs or alterations, 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 evidence, that the 
articles are imported under circumstances meeting the requirements 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 estimated duties based upon the full cost or value of the repairs or 
alterations. The cost or value of the repairs or alterations 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 limited to the cost or value of the repairs 
or alterations actually performed abroad, which will include all 
domestic and foreign articles furnished for the repairs or alterations 
but shall not include any of the expenses incurred in this country 
whether by way of engineering costs, preparation of plans or 
specifications, furnishing of tools or equipment for doing the repairs 
or alterations 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]



Sec. 10.8a  Imported articles exported and reimported.

    (a) In addition to regular entry procedures, 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 articles 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

[[Page 97]]

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 imported them into and exported them from the United States.
    (b) The following supplementary documents 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 the---------------------- (Description of articles) 
were received by me from ---------------------------------- (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 --------------------------------(Name and address 
of consignee in the United States) because they do not conform to sample 
or specifications for the following reasons:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
(Date) (Signature)
________________________________________________________________________
(Address) (Title)

    (2) A declaration by the owner, importer, consignee, or agent, in 
substantially the following form:

    I declare that the ---------------------- (Description of articles) 
were previously imported into the United States at the Port of --------
-------- (Name of port), Entry No.------, on -------------- (Date of 
entry) by ---------------------- (Name and address of importer) at which 
time duty was paid; that they were exported from the United States at 
the Port of ---------------- (Name of port) on -------------------- 
(Date of exportation) by ---------------------- (Name and address of 
exporter) without benefit of drawback; that the articles are being 
reimported by or for the account of ----------------, and, that the 
attached declaration from -------------------------------- (Name of 
foreign shipper) is correct in every respect.
________________________________________________________________________
(Date) (Signature)
________________________________________________________________________
(Address) (Title)

    (c) If the port director concerned is reasonably satisfied because 
of the nature 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]



Sec. 10.9  Articles exported for processing.

    (a) Except as otherwise provided for in this section, the following 
documents shall be filed in connection with the entry of articles which 
are returned 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:

    I, ----------, 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 ------------, 19 ------, from 
---------------- (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.

------------------------------------------------------------------------
                                               Full cost or
                                                 (when no
                                                 charge is
                                 Description    made) value  Total value
                                 of articles        of       of articles
       Marks and numbers            and of      processing      after
                                  processing       (see       processing
                                                subchapter
                                                II, chapter
                                                98, HTSUS)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)


[[Page 98]]


________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (2) A declaration by the owner, importer, consignee, or agent having 
knowledge of the pertinent facts in substantially the following form:

 I, ----------, declare that the (above) (attached) declaration by the 
person who performed 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 ---------------- (name and address) or, if of 
foreign origin, were subjected to ---------------- (show processes of 
manufacture, such as molding, casting, machining) in the United States 
by ---------------- (name and address); that the articles were not 
manufactured or produced in the United States under subheading 
9813.00.05, HTSUS; that the articles were exported for processing and 
without benefit of drawback from ---------------- (port) on ------------
, 19 ------; 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 
returned articles will be subjected to ---------------- (describe 
processing to be performed in the United States) by ---------------- 
(name and address of U.S. processor).___________________________________

________________________________________________________________________
(Date)

________________________________________________________________________
(Address)

________________________________________________________________________
(Signature)

________________________________________________________________________
(Capacity)

    (b) The port director may require such additional documentation as 
is deemed necessary to prove actual exportation 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 evidence, that the 
articles are imported under circumstances meeting the requirements of 
subheading 9802.00.60, 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 estimated 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 processing actually performed abroad, which 
will include all domestic and foreign articles used in the processing 
but shall not include the exported United States metal article or any of 
the expenses incurred in this country whether by way of engineering 
costs, preparation of plans or specifications, furnishing of tools or 
equipment for doing the processing abroad, or otherwise.

[T.D. 94-47, 59 FR 25568, May 17, 1994]



Sec. 10.10  [Reserved]

         Articles Assembled Abroad With United States Components



Sec. 10.11  General.

    (a) Sections 10.12 through 10.23 set forth definitions and 
interpretative regulations adopted by the Commissioner of Customs 
pertaining to the construction of subheading 9802.00.80, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202) and related 
provisions of law. These provisions 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 regulations 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 Tariff Schedule of the United States (19 U.S.C. 1202), at the 
various ports of entry. Nothing in these regulations

[[Page 99]]

purports or is intended to restrict the legal right of importers or 
others to a judicial review of the matters contained therein.
    (b) Section 10.24 sets forth the documentary requirements applicable 
to the entry of assembled articles claimed to be subject to the 
exemption provided under subheading 9802.00.80, Harmonized 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 documentary requirements set forth in Sec. 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]



Sec. 10.12  Definitions.

    As used in Sec. Sec. 10.11 through 10.24, the following terms shall 
have the meanings indicated:
    (a) American-made. The term ``American-made'' is used to refer to a 
product 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 article.
    (d) Fabricated component. ``Fabricated component'' means a 
manufactured article ready for assembly in the condition 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 Customs territory of the United 
States and may consist wholly of United States components or materials, 
of United States and foreign components or materials, or wholly of 
foreign components or materials. If the article consists wholly or 
partially of foreign components or materials, the manufacturing 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 article.

[T.D. 75-230, 40 FR 43021, Sept. 18, 1975, as amended by T.D. 89-1, 53 
FR 51247, Dec. 21, 1988]



Sec. 10.13  Statutory provision: Subheading 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 
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 assembled and except by operations incidental 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 dutiable portion of the imported 
article is that which is applicable to the imported article as a whole 
under the appropriate provision of the HTSUS (19 U.S.C. 1202) for such 
article. If that provision requires a specific or compound rate of duty, 
the total duties assessed on the imported article are reduced in such 
proportion as the cost or value of the returned United States components 
which qualify for the exemption 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 importation, 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 transistors assembled therein.
    Example 2. A solid-state watch movement is assembled abroad from 
foreign-made components and an American-made integrated circuit. If the 
movement in question is subject to the specific rate of duty of 75 cents 
if

[[Page 100]]

the value of the assembled movement is $30, and if the value of the 
American-made integrated circuit is $10, then the value of the 
integrated circuit represents one third of the total value of the 
assembled article and the duty on the assembled article will be reduced 
by one third ($.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]



Sec. 10.14  Fabricated components subject to the exemption.

    (a) Fabricated components, the product of the United States. Except 
as provided in Sec. 10.15, the exemption provided under subheading 
9802.00.80, Harmonized Tariff Schedule of the United States (HTSUS) (19 
U.S.C. 1202), applies to fabricated 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 entitlement to the exemption by being subjected to operations 
incidental to the assembly either before, during, or after their 
assembly with other components. Materials undefined in final dimensions 
and shapes, which are cut into specific shapes or patterns abroad are 
not considered fabricated components.

    Example 1. Articles identifiable in their exported condition as 
components or parts of the article into which they will be assembled, 
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 multiple unit strips in which the individual frame units are 
connected to each other, or integrated circuit wafers containing 
individual 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 cutting, or the segmentation of the wafer 
into individual dice by flexing and breaking along scribed or scored 
lines, is regarded as an operation incidental to the assembly process.
    Example 3. Wires of various type, electrical conductors, metal 
foils, insulating tapes, ribbons, findings used in dressmaking, and 
similar products, which are in a finished state when exported from the 
United States, and are ready for use in the assembly of the imported 
article, are regarded as fabricated components if they are only cut to 
length or subjected to operations incidental to the assembly process 
while abroad.
    Example 4. Uncut textile fabrics exported in bolts from which 
wearing apparel components will be cut according to a pattern are not 
regarded as fabricated components. Similarly, other materials, such as 
lumber, leather, sheet metal, plastic sheeting, exported in basic shapes 
and forms to be fabricated into components for assembly, are not 
eligible for treatment as fabricated components.

    (b) Substantial transformation of foreign-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. Substantial 
transformation occurs when, as a result of manufacturing processes, a 
new and different article emerges, having a distinctive name, character, 
or use, which is different from that originally possessed by the article 
or material before being subject to the manufacturing process. The mere 
finishing 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 country. 
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 transformation 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 performed 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,

[[Page 101]]

including all of its parts is regarded as a fabricated 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]



Sec. 10.15  Fabricated components not subject to the exemption.

    Fabricated components which are not products of the United States 
are excluded from the exemption. In addition, the exemption is not 
applicable to any component exported from the Customs territory of the 
United States:
    (a) From continuous Customs custody with remission, abatement, or 
refund of duty;
    (b) With benefit of drawback;
    (c) To comply with any law of the United States or regulation of any 
Federal 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 manufactured into finished motors under the 
provisions 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 assembled abroad into electric 
fans which are subsequently imported into the United States. 
Irrespective of the fact that the assembly 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 subheading 
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]



Sec. 10.16  Assembly abroad.

    (a) Assembly operations. The assembly operations performed abroad 
may consist of any method used to join or fit together solid components, 
such as welding, soldering, riveting, force fitting, gluing, laminating, 
sewing, or the use of fasteners, and may be preceded, accompanied, or 
followed by operations incidental to the assembly as illustrated 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 importation 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 capacitor is assembled abroad 
from American-made aluminum foil, paper, tape, and Mylar film. In the 
foreign assembly plant the aluminum 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 prevent 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 protective washer. As 
imported, the capacitor is subject to the ad valorem rate of duty 
applicable 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 either assembly steps or steps 
incidental to assembly.
    Example 3. The manufacture abroad of cloth on a loom using thread or 
yarn exported 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 operation involving the assembly of solid 
components.

    (b) Operations incidental to the assembly process. Operations 
incidental to the assembly process whether performed before, during, or 
after assembly, do not constitute further fabrication, and shall not 
preclude the application of the exemption. The following are examples of 
operations which are incidental to the assembly process:

[[Page 102]]

    (1) Cleaning;
    (2) Removal of rust, grease, paint, or other preservative coating;
    (3) Application of preservative paint or coating, including 
preservative metallic coating, lubricants, or protective 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 exported 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, marking, sorting, pressing, and 
folding of assembled articles.
    (c) Operations not incidental to the assembly process. Any 
significant process, operation, or treatment other than assembly 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 substantial transformation of the 
article, shall not be regarded as incidental to the assembly and shall 
preclude the application of the exemption to such article. The following 
are examples of operations not considered incidental to the assembly as 
provided under subheading 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 according to pattern from exported 
material;
    (3) Painting primarily intended to enhance the appearance of an 
article or to impart distinctive features or characteristics;
    (4) Chemical treatment of components or assembled articles to impart 
new characteristics, such as showerproofing, permapressing, sanforizing, 
dying or bleaching of textiles;
    (5) Machining, polishing, burnishing, peening, plating (other than 
plating incidental 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 article affected.
    (d) Joining of American-made and foreign-made components. An 
assembly operation may involve the use of American-made components and 
foreign-made components. The various requirements for establishing 
entitlement to the exemption apply only to the American-made components 
of the assembly.

    Example. Diodes are assembled abroad from American-made components. 
The process includes 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 assembled, the assembled unit is placed in a transfer 
molding machine, where, by use of the pellet, molten epoxy is caused to 
flow around 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 American-made components, but not 
for the value of the plastic pellet. If the plastic pellet used for 
encapsulation was of United States origin, its value would still be a 
part of the dutiable value of the diode, because the plastic pellet is 
not a fabricated component of a type designed to be fitted together by 
assembly, but merely a premeasured quantity of material which was 
applied to the assembled unit by a process not constituting an assembly.

    (e) Subassembly. An assembly operation may involve the joining or 
fitting of American-made components into a part or subassembly of an 
article, followed 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 electrodes 
and dielectric of a capacitor. Following this procedure, the rolls are 
assembled 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 otherwise qualify for the 
exemption and which are packaged abroad following

[[Page 103]]

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 accordance with General Rule of Interpretation 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]



Sec. 10.17  Valuation of exempted components.

    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 shipment for 
exportation, f.o.b. United States port of exportation or point of border 
crossing, as set out in the invoice and entry papers. However, if the 
appraising officer concludes that the cost or value of the fabricated 
components so ascertained does not represent a reasonable cost or value, 
then the value of the components shall be determined 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]



Sec. 10.18  Valuation of assembled articles.

    As in the case of the appraisement of any other import merchandise 
(see subpart C of part 152 of this chapter), the full value of assembled 
articles imported under subheading 9802.00.80, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), is determined 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]



Sec. Sec. 10.19-10.20  [Reserved]



Sec. 10.21  Updating cost data and other information.

    When a claim for the exemption is predicated on estimated cost data 
furnished either in advance of or at the time of entry, this fact should 
be clearly 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 actual cost data. Actual cost data must be submitted as 
soon as accounting procedures permit. To insure that information used 
for Customs purposes is reasonably current, the importer shall 
ordinarily be required to furnish updated cost and assembly data at 
least every six months, regardless of whether 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 merchandise involved, or 
because of the accounting period normally used in the trade, or because 
of other relevant circumstances.

[T.D. 75-230, 40 FR 43025, Sept. 18, 1975]



Sec. 10.23  Standards, quotas, and visas.

    All requirements and restrictions applicable 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]



Sec. 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, Harmonized Tariff Schedule of 
the United States (HTSUS) (19 U.S.C. 1202).
    (1) Declaration by the assembler. A declaration by the person who 
performed the assembly operations abroad shall be filed in substantially 
the following form:

    I, ----------, declare that to the best of my knowledge and belief 
the ---------- were assembled in whole or in part from fabricated 
components listed and described below, which are products of the United 
States:

[[Page 104]]



----------------------------------------------------------------------------------------------------------------
                                                             Unit value at
       Marks of                                             time and place   Port and date of
   identification,       Description of       Quantity      of export from      export from     Name and address
       numbers             component                         United States     United States    of manufacturer
                                                                  \1\
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------
 \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)):

________________________________________________________________________
Date Signature
________________________________________________________________________
Address Capacity

    (2) Endorsement by the importer. An endorsement, in substantially 
the following form, shall be signed by the importer:

    I declare that to the best of my knowledge and belief the (above), 
(attached) declaration, 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).
________________________________________________________________________
Date Signature

________________________________________________________________________
Address Capacity

    (b) Revision of format. In specific cases, the port director may 
revise the format of either of the documents specified in paragraph (a) 
of this section and may make such changes as conditions warrant, 
provided the data and information required to be supplied in these 
documents are presented. For example, if the components were furnished 
by the importer, the information 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 documents. In lieu of filing 
duplicate lists of components and descriptions of assembly operations 
with each entry, the documents specified in paragraph (a) of this 
section may refer to assembly descriptions and lists of components 
previously 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 examination by 
authorized Customs officers.
    (d) Waiver of specific details for each entry. There are cases where 
large quantities of United States components are purchased from various 
sources or exported at various ports and dates on a continuing basis, so 
that 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 subheading 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 exemption is claimed are in fact 
products of the United States. These controls shall include strict 
physical segregation of United States and foreign components, 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 importer and assembler for 5 years from the 
date of the released entry in a manner so that they are readily 
available for audit, inspection, copying, reproduction or other official 
use by authorized 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 specified in paragraph (a) of this section, or of any of the 
information set forth therein, impractical and is further satisfied that 
the requirements of subheading 9802.00.80, HTSUS, and related

[[Page 105]]

legal notes have been met, he may waive the production of such 
document(s) or information.
    (f) Unavailability of documents at time of entry. If either or both 
of the documents 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 Sec. 113.62 of this chapter for the 
production of the document(s) may be given pursuant to Sec. Sec. 
113.41-113.46 and 141.66 of this chapter.
    (g) Responsibility of correctness. Subject to the civil and criminal 
sanctions provided by law for false or fraudulent entries, the importer 
has the ultimate responsibility for supplying all information needed by 
the Customs Service to process an entry, and for the completeness and 
truthfulness of such information. If certain information cannot 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]



Sec. 10.25  Textile components cut to shape in the United States and assembled 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 assembly into an 
article that is then returned to the United States and entered, 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 determining 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 Sec. 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 Sec. 10.16 
insofar as they may be applicable to a textile component; and
    (c) The valuation and documentation provisions of Sec. Sec. 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]



Sec. 10.26  Articles assembled or processed in a beneficiary country in whole of U.S. components or ingredients; articles assembled in a beneficiary country 
          from textile components cut to shape in the United States.

    (a) No article (except a textile article, 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 treated as a foreign article or as subject to duty:
    (1) If the article is assembled or processed in a beneficiary 
country in whole of fabricated components that are a product of the 
United States; or
    (2) If the article is processed in a beneficiary country in whole of 
ingredients (other than water) that are a product of the United States; 
and
    (3) Neither the fabricated components, materials or ingredients 
after their exportation from the United States, nor the article before 
its importation into the United States, enters into the commerce of any 
foreign country other than a beneficiary country.
    (b) No article (except a textile or apparel 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 paragraph (b)(1) of this section 
and components that are products of the United States; and
    (3) Neither the components after their exportation from the United 
States, nor the article before its importation into the United States, 
enters into the commerce of any foreign country other than a beneficiary 
country.
    (c) For purposes of this section:

[[Page 106]]

    (1) The terms ``textile article'', ``apparel article'', and 
``textile or apparel product'' cover all articles, other than footwear 
and parts of footwear, that are classifiable in an HTSUS subheading 
which carries a textile and apparel category number designation;
    (2) The term ``beneficiary country'' has the meaning set forth in 
Sec. 10.191(b)(1); and
    (3) A component, material, ingredient, or article shall be deemed to 
have not entered into the commerce of any foreign country other than a 
beneficiary country if:
    (i) The component, material, or ingredient 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 country; or
    (ii) Where the component, material, ingredient, or article passed 
through the territory of a non-beneficiary country 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 destination 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, ingredient, 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



Sec. 10.30c  [Reserved]

                    Temporary Importations Under Bond



Sec. 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, 
Harmonized 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 Sec. 142.3 of this chapter. However, when 
Sec. 10.36 or Sec. 10.36a is applicable, or the aggregate value of the 
article 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 entry and entry summary, and Customs Form 3461 or 7533 shall 
not be required. 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 determine 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

[[Page 107]]

United States beyond 90 days, formal entry and bond shall be taken.
    (c) When any article has been admitted without formal entry or 
security for exportation and the importer thereafter 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 article 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) Describe each article in detail; 
(2) set forth the value of each article; and (3) set forth any marks or 
numbers thereon or other distinguishing features thereof. In the case of 
a vehicle, aircraft, or pleasure boat entered under subheading 
9813.00.05, HTSUS and Sec. 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 
extent which will enable the Customs officer 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 appraisement 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 Sec. 
113.62 of this chapter, in an amount equal to double the duties, 
including 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 revenue) had all 
the articles covered by the entry been entered under an ordinary 
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, including fees, determined at the time of entry. If 
appropriate a carnet, under the provisions of part 114 of this chapter, 
may be filed in lieu of a bond on Customs Form 301 (containing the bond 
conditions set forth in Sec. 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, or 
9813.00.50, HTSUS without formal entry, as provided for in Sec. Sec. 
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 professional equipment necessary for carrying 
out the business activity, trade or profession of a business person, 
equipment for the press or for sound or television broadcasting, 
cinematographic equipment, articles imported for sports purposes and 
articles intended for display or demonstration, if brought into the 
United States by a resident of Canada, Mexico, Chile, Singapore, 
Morocco, or Bahrain and entered under Chapter 98, Subchapter XIII, 
HTSUS, no bond or other security will be required if the entered article 
is a good originating, within the meaning of General Notes 12, 25, 26, 
27 and 30, HTSUS, in the country of which the importer is a resident.
    (g) Claim for free entry under Chapter 98, Subchapter XIII, HTSUS 
may be made for articles of any character described therein which have 
been previously entered under any other provision of law and the entry 
amended accordingly upon compliance with the requirements of this 
section, provided

[[Page 108]]

the articles have not been released from Customs custody, or even though 
released from Customs custody if it is established that the original 
entry was made on the basis of a clerical error, mistake of fact, or 
other inadvertence within the meaning of section 520(c)(1), Tariff Act 
of 1930, as amended, and was brought to the attention of the Customs 
Service within the time limits of that section. If an entry is so 
amended, the period of time during which the merchandise may remain in 
the Customs territory of the United States under bond shall be computed 
from the date of importation. In the case of articles covered by an 
informal mail entry, such a claim may be made within a reasonable time 
either before or after the articles have been released from Customs 
custody.
    (h) After the entry and bond have been accepted, the articles may be 
released to the importer. The entry shall not be liquidated as the 
transaction does not involve liquidated duties. However, a TIB importer 
may be required to file an entry for consumption and pay duties, or pay 
liquidated damages 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 Sec. 181.53 of this 
chapter).

[28 FR 14663, Dec. 31, 1963, as amended by T.D. 66-39, 31 FR 2817, Feb. 
17, 1966; T.D. 69-146, 34 FR 9798, June 25, 1969; T.D. 70-89, 35 FR 
6002, Apr. 11, 1970; T.D. 79-221, 44 FR 46813, Aug. 9, 1979; 44 FR 
51567, Sept. 4, 1979; T.D. 80-26, 45 FR 3901, Jan. 21, 1980; 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; T.D. 95-22, 60 FR 14632, Mar. 20, 
1995; T.D. 96-14, 61 FR 2910, Jan. 30, 1996; T.D. 98-10, 63 FR 4167, 
Jan. 28, 1998; T.D. 01-14, 66 FR 8767, Feb. 2, 2001; CBP Dec. 05-07, 70 
FR 10872, Mar. 7, 2005; CBP Dec 07-28, 72 FR 31994, June 11, 2007; CBP 
Dec. 07-51, 72 FR 35651, June 29, 2007; CBP Dec. 07-81, 72 FR 58515, 
Oct. 16, 2007]



Sec. 10.33  Theatrical effects.

    For purposes of the entry of theatrical scenery, properties and 
apparel under subheading 9817.00.98, Harmonized Tariff Schedule of the 
United States:
    (a) Animals imported for use or exhibition 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 
effects taken from the United States, see Sec. 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]



Sec. 10.35  Models of women's wearing apparel.

    (a) Models of women's wearing apparel admitted under subheading 
9813.00.10, Harmonized Tariff Schedule of the United States (HTSUS), 
shall not be removed from the importer's establishment for reproducing, 
copying, painting, sketching, or for any other use by others, nor be 
used in the importer's establishment for such purposes except by the 
importer or his employees.
    (b) Invoices covering models of women's wearing apparel entered 
under subheading 9813.00.10 or 9813.00.25, HTSUS shall state the kind 
and color of the principal material from which the apparel is made, and 
shall contain a description of the lining and the trimming, stating 
whether composed of fur, lace, embroidery, or other material. Invoices 
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]



Sec. 10.36  Commercial travelers' samples; professional equipment and tools of trade; theatrical effects and other articles.

    (a) Samples accompanying a commercial traveler who presents an 
adequate descriptive list or a special Customs invoice, and professional 
equipment, tools of trade, and repair components for such equipment or 
tools imported in his baggage for his own use

[[Page 109]]

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 Tariff Schedule of the United States, (HTSUS), at 
the place of arrival in the same manner as other passengers' baggage. 
The examination may be made by an inspector who is qualified, in the 
opinion of the port director, to determine the amount of the bond 
required by Sec. 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 subheading 9813.00.65, HTSUS, contemplates side trips to a 
contiguous country with the exhibition within the period of time during 
which the merchandise 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 officer and 
returned to the proprietor or manager for use in registering the effects 
with the Customs officers at the port of exit, and in clearing them 
through Customs on his return. Cancellation of the bond shall be 
effected by exportation in accordance with the provisions of Sec. 10.38 
at the time the theatrical effects are finally 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, including any lawful extension. Similar treatment may be 
accorded articles entered under other subheadings in chapter 98, 
subchapter XIII, HTSUS, upon approval by Headquarters, U.S. Customs 
Service.
    (c) When a commercial traveler contemplates side trips to a 
contiguous country within the period of time during which the 
merchandise may remain in the Customs territory of the United States 
under bond, including any lawful extension, a copy of his baggage 
declaration and a copy of the descriptive list or special Customs 
invoice furnished by him may be certified by the examining officer and 
returned to the traveler for use in registering the samples with Customs 
officers at the port of exit, and in clearing them through Customs upon 
his return. Cancellation of the bond shall be effected by exportation in 
accordance with the provisions of Sec. 10.38 at the time the samples 
are finally 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, including any lawful 
extension.
    (d) The privilege of clearance of commercial travelers' samples or 
professional 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 declaration under bond 
without surety or cash deposit shall not be accorded to a commercial 
traveler or such nonresident who, through fraud or culpable negligence, 
has failed to comply with the provisions of such a bond in connection 
with a prior arrival.

Such a commercial traveler or nonresident shall be required to file a 
formal entry under subheading 9813.00.20 or subheading 9813.00.50, HTSUS 
with a bond supported by a surety or cash deposit 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]



Sec. 10.36a  Vehicles, pleasure boats and aircraft brought in for repair or alteration.

    (a) A vehicle (such as an automobile, truck, bus, motorcycle, 
tractor, trailer), pleasure boat, or aircraft brought into the United 
States by an operator of such vehicle, pleasure boat, or aircraft for 
repair or alteration (as defined in Sec. Sec. 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

[[Page 110]]

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 another vehicle, the operator of the towing or 
transporting vehicle may make entry for the vehicle, aircraft or 
pleasure boat to be repaired or altered. The bond, prescribed by Sec. 
10.31(f), filed to support entry under this section shall be without 
surety or cash deposit except as provided by this paragraph and 
paragraph (d) of this section. The examination may be made by an 
inspector who is qualified to determine the amount of such bond to be 
filed in support of the entry. The privilege accorded by this paragraph 
shall not apply when two or more vehicles, pleasure boats, or aircraft 
are to be entered by the same importer under subheading 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 Sec. 10.31.
    (c) Exportation shall be effected in accordance with the provisions 
of Sec. 10.38.
    (d) The privilege of clearance of a vehicle, pleasure boat, or 
aircraft brought in by the operator of such vehicle, pleasure boat, or 
aircraft, for repair or alteration on his baggage declaration 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 supported 
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]



Sec. 10.37  Extension of time for exportation.

    The period of time during which merchandise entered under bond under 
chapter 98, subchapter XIII, Harmonized 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 appropriate. Extensions 
may be granted by the director of the port where the entry was filed 
upon written application on CBP Form 3173, provided the articles have 
not been exported or destroyed before the receipt of the application, 
and liquidated damages have not been assessed under the bond before 
receipt of the application. Any untimely request for an extension of 
time for exportation shall be referred to the Director, Commercial and 
Trade Facilitation Division, Office of International Trade, CBP 
Headquarters, for disposition. Any request for relief from a liquidated 
damage assessment in excess of a Fines, Penalties, and Forfeitures 
Officer's delegated authority shall be referred to the Director, Border 
Security and Trade Compliance Division, Office of International Trade, 
CBP Headquarters, for disposition. No extension 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]



Sec. 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 application on 
Customs Form 3495 shall be filed in duplicate with the port director a 
sufficient length of time in advance of exportation to permit the 
examination and identification of the articles 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 
reexportation voucher of the carnet shall be

[[Page 111]]

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 
examination, the cording and sealing of such articles, and their 
transfer for exportation 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 application 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 another port, they shall be forwarded to the port of exportation 
under a transportation 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 examination. Waiver of the right to withdraw the package from the 
mails shall be endorsed on each package to be so exported and signed by 
the exporter.
    (f) Whenever the circumstances warrant, 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 Sec. Sec. 18.7 and 191.61 of this chapter.
    (g) Upon the presentation of satisfactory 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 seizure. 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]



Sec. 10.39  Cancellation of bond charges.

    (a) Charges against bonds taken pursuant to Chapter 98, Subchapter 
XIII, Harmonized Tariff Schedule of the United States, (HTSUS), may be 
canceled in the manner prescribed in Sec. 113.55 of this chapter. A 
completed reexportation counterfoil on a carnet establishes 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 Sec. 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 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 Customs supervision in 
accordance with section 557, Tariff Act of 1930, as amended, and Sec. 
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 certificate of lading received 
from the port of exportation, showing that such exportation was made 
within the period of time during which the articles may remain in the 
Customs territory of the United States under bond. In addition, the port 
director may require the production of a landing certificate

[[Page 112]]

signed by a revenue officer of the country to which the merchandise is 
exported.
    (c) When articles entered temporarily free of duty under bond are 
destroyed within the bond period by death, accidental fire, or other 
casualty, petition for relief from liability under the bond shall be 
made to the United States Customs Service. The petition shall be 
accompanied by a statement of the importer, or other person having 
knowledge of the facts, setting forth the circumstances 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 
extension), the Fines, Penalties, and Forfeitures Officer shall make a 
demand in writing under the bond for the payment of liquidated damages 
equal to double the estimated duties applicable to such entry, unless a 
different amount is prescribed by Sec. 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 
purposes of this section, the term estimated duties shall include any 
merchandise 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 expiration of that 
period make demand in writing upon the importer and guaranteeing 
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 association shall 
forthwith pay the liquidated damages provided for above. The payment 
shall be refunded if the guaranteeing association within 3 months from 
the date of payment furnishes the proof referred to above. No claim for 
payment under a carnet covering a temporary importation may be made 
against the guaranteeing association more than 1 year after the 
expiration 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, professional 
equipment, tools of trade, and repair components for professional 
equipment and tools of trade, the liquidated 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 covered 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 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, subchapter XIII, and that there was no intent to defraud the 
revenue or delay the payment of duty, the Fines, Penalties, and 
Forfeitures Officer may cancel the liability for the payment of 
liquidated damages in any case in his or her delegated authority as 
follows:
    (1) If evidence is furnished which satisfies the Fines, Penalties, 
and Forfeitures 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 
liquidated damages.
    (2) If the article has been exported or destroyed under Customs 
supervision

[[Page 113]]

but not within the period of time during 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 director 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 circumstances reasonably beyond the control of the parties 
concerned and which could not have been anticipated by a reasonably 
prudent person.
    (3) If the article was exported or destroyed within the period of 
time during which the articles may remain in the Customs territory of 
the United States under bond but not under Customs supervision and 
satisfactory documentary evidence of actual exportation, such as a 
foreign landing certificate, or of death or other complete destruction, 
such as a veterinarian's certificate or certificates of two 
disinterested witnesses, are furnished together with a complete 
explanation by the applicant of the failure to obtain Customs 
supervision, upon the payment of such lesser amount as the Fines, 
Penalties, and Forfeitures Officer 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 reimportation entered in the carnet 
by the Customs authorities of another contracting party, or a 
certificate with respect 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 consumption entry, or equal to 110 percent of such duties where 
that percentage is prescribed in Sec. 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 entered 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 period has 
expired of the anticipatory breach. At the time of written notification 
of the breach, the importer shall pay to Customs the full amount of 
liquidated damages that would be assessed 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 Sec. 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 supplemental petition, both the 
original and the supplemental petitions shall be transmitted to the 
designated Headquarters 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]



Sec. 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 Sec. 10.38.
    (b) If any article entered under Chapter 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

[[Page 114]]

of the United States under bond (including any lawful extension), the 
port director shall notify the importer in writing that the entire cash 
deposit will be transferred to the regular account 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 regular 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



Sec. 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 treatment 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 Sec. Sec. 10.31, 10.183, or 
paragraph (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 carrying merchandise or 
passengers between points in the United States for hire or as an element 
of a commercial transaction, except as provided at Sec. Sec. 123.12 (a) 
and (b), 123.14(c), and 141.4(b)(4), is subject to treatment as an 
importation of merchandise from a foreign country and a regular entry 
for such vehicle, aircraft or boat will be made. The use of any such 
vehicle, aircraft, or boat without a proper entry having been made may 
result in liabilities 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 special 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 limitation of the storage period to the usual 3-year 
warehousing period. International cables laid under the territorial 
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]



Sec. 10.41a  Lift vans, cargo vans, shipping tanks, skids, pallets, and similar instruments 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 designated as ``instruments of 
international traffic'' within the meaning of section 322(a), Tariff Act 
of 1930, as amended. The Commissioner of Customs is authorized to 
designate as instruments of international traffic, in decisions to be 
published in the weekly Customs Bulletin, such additional articles or 
classes of articles as he shall find should be so designated. Such 
instruments 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 foreign production which is an instrument of international traffic 
may be entered

[[Page 115]]

or withdrawn from warehouse for consumption without the deposit of duty 
if the person making the entry or withdrawal from warehouse files a 
declaration that the repair component was imported to be used in the 
repair of a container 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 international 
traffic. The port director must be satisfied that the importer of the 
repair component, accessory, or equipment had the declared intention at 
the time of importation.
    (3) As used in this section, ``instruments of international 
traffic'' includes the normal accessories and equipment imported with 
any such instrument which is a ``container'' as defined in Article 1 of 
the Customs Convention 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 required in the case of a duly authenticated 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 supervision at the expense of the parties concerned, 
following the procedure outlined in Sec. 158.43(c) of this chapter. Any 
salvaged parts and materials shall be subjected to applicable import 
duties and import taxes. Replaced parts which are not reexported shall 
be subjected to import duties and import taxes except where abandoned 
free of expense to the Government or destroyed 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 accordance with the provisions of 
that paragraph only after the applicant for such release has filed a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.66 of this chapter. The required application may be filed at 
the port of arrival or at a subsequent 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 container on the Goods Manifest of 
the carnet. If the container is listed on the Goods Manifest of the 
carnet, the application may be filed at the port of arrival 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 
application 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 before the fact of approval of the 
applicant's bond has been established, the applicant must submit with 
the application, 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 satisfy 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 the fact of approval of the applicant's 
bond has been established, and the bond has not been subsequently 
discontinued, the instruments of international traffic will be released 
as provided for in paragraph (a) of this section.
    (3) Upon the request of the applicant, the appropriate Customs 
officer at the port at which the instruments of international 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 officer 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 released under this 
section and is subsequently diverted to point-to-point local

[[Page 116]]

traffic within the United States, or is otherwise withdrawn in the 
United States from its use as an instrument of international traffic, it 
becomes subject 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 application 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 abandoned or 
destroyed, as described in paragraph (b) of this section, or (2) that 
the instrument is the subject of a diversion or withdrawal as described 
in paragraph (d) of this section, in which event he shall file with the 
port director a consumption entry for the instrument and pay all import 
duties and import taxes due on the container or instrument 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 container 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 follows in point-
to-point traffic, provided such traffic is incidental to the efficient 
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 arrival 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 loaded 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 instrument in the 
United States from its use as an instrument of international traffic 
under this section.
    (g)(1) Except as provided in paragraph (j) of this section, a 
container (as defined in Article 1 of the Customs Convention on 
Containers) that is designated as an instrument of international 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 application for release under paragraph 
(a)(1) of this section is responsible for keeping and maintaining such 
records, otherwise generated and retained in the ordinary course of 
business, as may be necessary to establish the international 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 required under this section, any containers 
considered removed from international 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 importer of record is required, using 
reasonable care, to complete the entry by filing with Customs the 
declared value, classification and rate of duty applicable to the 
merchandise. The importer of record must use the value of the container 
as determined in accordance

[[Page 117]]

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 instrument established in accordance with 
Section 606, Tariff Act of 1930.
    (i) When an instrument of international traffic, as provided in 
paragraph (a) of this section, is returned to the United States and 
released in accordance 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 instrument 
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 instrument left the United States.
    (j) Containers and other articles designated as instruments of 
international traffic in accordance with this section are nevertheless 
subject to the application of the coastwise laws of the United States, 
with particular reference to Section 883, Title 46, United States Code 
(see Sec. 4.93 of this chapter).

[28 FR 14663, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
10.41a, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 10.41b  Clearance of serially numbered substantial holders or outer containers.

    (a) The holders and containers described in this section may be 
released without entry or the payment of duty, subject to the provisions 
of this section.
    (b) Subject to the approval of a port director pursuant to the 
procedures described in this paragraph, certain foreign- or U.S.-made 
shipping devices arriving from Canada or Mexico, including racks, 
holders, pallets, totes, boxes and cans, need not be serially numbered 
or marked if they are always transported on or within either intermodal 
and similar containers or containers which are themselves vehicles or 
vehicle appurtenances and accessories 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 exempt from 
serial numbering or marking requirements pursuant to this paragraph: 
``The shipping devices transported herein, which are not serially 
numbered or marked, have been exempted from such requirement pursuant to 
an application approved under 19 CFR 10.41b(b).'' Also, pallets and 
other solid wood shipping devices must be accompanied by an importer 
document, to the extent that this is required by the U.S. Department of 
Agriculture, Animal and Plant Health Inspection Service, attesting to 
the admissibility of such devices as regards plant pest risk, as 
provided for in 7 CFR 319.40-3.
    (1) An importer or his agent, regardless of whether the importer is 
the owner of the foreign- or U.S.-manufactured shipping devices, may 
apply to a port director of Customs at one of the importer's chiefly 
utilized Customs ports or the port within which the importer's or 
agent's recordkeeping center 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 shipping 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 devices covered, their 
classification under the Harmonized Tariff Schedule of the U.S. (HTSUS), 
their countries of origin, and whether and to whom required duty was 
paid for them or when

[[Page 118]]

it will be paid for them, including duties 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 intended to be 
utilized;
    (iii) Describe the applicant's proposed program for accounting for 
and reporting these shipping devices;
    (iv) Identify the reporting period (which shall in no event be less 
frequent than annual), as well as the payment period within which 
applicable duty and fees must be tendered (which shall in no event 
exceed 90 days following the close of the related reporting 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 period of at least 3 years from the date such 
reports are filed with the port director.)
    (3) The application shall be filed along with a continuous bond 
containing the conditions set forth in Sec. 113.66(c) of this chapter. 
If the application is approved by the port director and the conditions 
set forth in the application or of the bond are violated, the port 
director may issue a claim for liquidated damages equal to the domestic 
value of the container. If the domestic 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 application shall evaluate the 
program proposed to account for, report and maintain records of the 
shipping devices. The port director may suggest amendments to the 
applicant's proposal. 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 application, 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 Commissioner, Office of Field Operations, Customs 
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 appeal, and shall constitute the final Customs determination 
concerning the application.
    (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 utilized. 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 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 devices.
    (c) In the case of serially numbered holders or containers of United 
States manufacture for which free clearance under subheading 9801.00.10, 
Harmonized Tariff Schedule of the United States, is claimed, the owner 
shall place thereon the following markings:
    (1) 9801.00.10, unless the holder or container has permanently 
attached thereto 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 positioned as indicated in the 
example below, or elsewhere conspicuously shown on the holder or 
container.

[[Page 119]]

    (3) The serial number assigned by the owner, which shall be one of 
consecutive numbers and not to be duplicated. For example: 9801.00.10 * 
* * Zenda * * * 2468.
    (d)(1) In the case of serially numbered holders or containers of 
foreign manufacture, other than those provided for in paragraph (d)(2) 
of this section, 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 numbers of the port of entry, the 
entry number, and the last two digits of the fiscal year of entry 
covering the importation 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 
consecutive numbers and not to be duplicated. 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 transport 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 subheading 9803.00.50, HTSUS (19 
U.S.C. 1202), is claimed, only the following clear, conspicuous and 
durable markings are required to be on the container:
    (i) The identity of the owner or operator of the container.
    (ii) The serial number assigned by the owner or operator of the 
container, which shall be one of consecutive numbers 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 figures of such size as to be readily discernible. 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 holders 
and containers under this procedure.
    (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 disposition made of 
such holders and containers 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 Department of Commerce on exportation 
with respect to the filing of ``Shipper's Export Declaration,'' Form 
7525-V.
    (3) The treatment of articles covered herein under the coastwise 
laws of the United States, with particular reference 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 appear on the 
inward foreign manifest so as to be related to the cargo contained 
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 intact 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 procedure 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 Sec. 
113.66 of this chapter shall be filed with the port director. If the 
conditions are violated the port director shall issue a claim for 
liquidated damages equal to the domestic value of the holder or 
container established in accordance with section 606, Tariff Act of 
1930, as amended (19 U.S.C. 1606). If the domestic value exceeds the 
amount of the bond the claim

[[Page 120]]

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



Sec. 10.43  Duty-free status.

    (a) The port director may, at his discretion, require appropriate 
proof of duty-free status for articles for institutions 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]



Sec. 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 executive 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]



Sec. 10.47  [Reserved]

                              Works of Art



Sec. 10.48  Engravings, sculptures, etc.

    (a) Invoices covering works of art claimed to be free of duty under 
subheadings 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 examination 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, --------, do hereby declare that I am the producer, seller, 
shipper or importer of certain works of art, namely -------- covered by 
the annexed invoice dated --------; that any sculptures or statuary 
included in that invoice are the original works or models or one of the 
first twelve castings, replicas, or reproductions made from the 
sculptor's original work or model; and that any etchings, engravings, 
woodcuts, lithographs, or prints made by other hand-transfer processes 
included in that invoice were printed by hand from hand-etched, hand-
drawn, or hand-engraved plates, stones, or blocks.

    (c) The port director may waive the declaration requirement set 
forth in paragraph (b) of this section.
    (d) Artists' proof etchings, engravings, woodcuts, lithographs, or 
prints made by other hand-transfer processes should bear the genuine 
signature or mark of the artist as evidence of their authenticity. In 
the absence 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 director.

[T.D. 94-3, 58 FR 68742, Dec. 29, 1993]



Sec. 10.49  Articles for exhibition; requirements 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 entitlement to entry as claimed, and a

[[Page 121]]

bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 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 previously entered under any other provision of 
law and the entry amended accordingly upon compliance with the 
requirements 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 society 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 
demanded by the port director in connection 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, provided 
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 manner 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 collected immediately by the director of 
the port of entry and deposited as duties. If the articles are exported 
or destroyed under Customs supervision within such 5-year period, the 
liability under the bond shall be treated as terminated.

[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]



Sec. 10.50  [Reserved]



Sec. 10.52  Painted, colored or stained glass windows for religious institutions.

    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 discretion, require appropriate proof that the importation was 
designed by, and produced 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]



Sec. 10.53  Antiques.

    (a) Articles accompanying a passenger 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, Harmonized Tariff Schedule of the United States (HTSUS), may 
be admitted free of duty upon the execution of a declaration on the face 
of the entry provided that the passenger or person filing the informal 
entry is the owner of the articles and that they are for his personal 
use and not for sale or other commercial use and provided the Customs 
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 admitted under the provisions of paragraph (e) of this section, shall 
be admitted 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 entities and 
the basis for such report shall be plainly indicated on the invoice by 
the appraiser. In such cases duty shall be assessed on the portion 
added. If the repairs consist of an addition to an article of a feature 
which changes it substantially from the article originally produced, or 
if the antique portion has otherwise been so

[[Page 122]]

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 defined as `movable articles of 
convenience or decoration for use in furnishing a house, apartment, 
place of business or accommodation'. This definition 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 custody or it 
has been found upon examination before such release to be described in 
subheading 9706.00.00, HTSUS.
    (e) Antique articles otherwise prohibited 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 
threatened 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 Sec. 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 requirements 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 subheading 9706.00.00, HTSUS, if such article 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 classification has begun.
    (g) The additional duty provided for in additional U.S. Note 2, 
Chapter 97, HTSUS shall not be assessed if the importer established by 
evidence satisfactory to the port director that the article was not 
imported for sale. In the case of any article imported in a passenger's 
baggage or entered under an informal entry, the Customs officer 
concerned may accept the statement of the owner that the article was not 
imported for sale if he is satisfied of the truth of such statement.

[28 FR 14663, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
10.53, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 10.54  Gobelin and other hand-woven tapestries.

    Pursuant to subheading 5805.00.10, Harmonized Tariff Schedule of the 
United States, Gobelin tapestries produced in the Manufacture Nationale 
des Gobelins factories at Paris and Beauvais under the direction and 
control 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



Sec. 10.56  Vegetable oils, denaturing; release.

    (a) Olive, palm-kernel, rapeseed, sunflower, and sesame oil shall be 
classifiable 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,

[[Page 123]]

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 formula 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 mechanical or manufacturing purposes.
    (b) Each cask or package of oil claimed to have been before 
importation denatured or otherwise rendered unfit for use as food or for 
any but mechanical or manufacturing purposes shall be sampled and tested 
by an appraising officer.
    (c) Formulas prescribed by Headquarters, U.S. Customs Service, 
except proprietary mixtures, will be circulated to all Customs officers 
and will appear as abstracts of United States Customs Service decisions 
published in the weekly Customs Bulletins. Proprietary mixtures approved 
by the Commissioner of Customs will not be published 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 
prescribe additional formulas, and will consider any formula for special 
denaturing that may be submitted.
    (e) The port director may, if he deems it advisable, require an 
importer requesting permission to use any authorized denaturant to 
submit to the appraiser an adequate sample of such denaturant, in order 
that the appraiser may report to the port director whether or not such 
denaturant is suitable for rendering the oil unfit for use as food or 
for any but mechanical or manufacturing 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



Sec. 10.57  Certified seed potatoes, and seed corn or maize.

    Claim for classification as seed potatoes 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 
government. 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 potatoes or corn in the container with an 
inspection record of the foreign government 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



Sec. 10.58  Bolting cloths; marking.

    (a) As a prerequisite to the free entry of bolting cloth for milling 
purposes under subheading 5911.20.20, Harmonized Tariff Schedule of the 
United States, the cloth shall be indelibly marked from selvage to 
selvage at intervals of not more then 10.16 centimeters with ``bolting 
cloth expressly for milling purposes'' in block letters 7.62 centimeters 
in height. Bolting cloths composed of silk imported expressly for 
milling purposes shall be considered only such cloths as are suitable 
for and are used in the act or process of grading, screening, bolting, 
separating, classifying, or sifting dry materials, 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

[[Page 124]]

importers in public stores under the supervision 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



Sec. 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 between 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 passengers or cargo in such trade. A written declaration of 
the owner or agent of the vessel may be required in connection with the 
withdrawal, certifying to the vessel's suitableness and substantial 
readiness with necessary fittings, outfit, and equipment already 
installed 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 section 309, Tariff Act of 1930, as amended, include the containers 
in which the articles are withdrawn and laden even though for tariff 
purposes the containers are classifiable separately from their contents, 
except unusual containers 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 provided for therein, an 
aircraft shall be deemed to be a vessel within the meaning of each 
provision of this section and of Sec. Sec. 10.60 through 10.64 which 
may be applied to aircraft.
    (e) A documented vessel with a fisheries 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 satisfied from the quantity requested, in the 
light of (1) whether the vessel is employed in substantially continuous 
fishing activities, and (2) the vessel's complement, that none of the 
withdrawn articles is intended to be removed from the vessel in, or 
otherwise returned to, the United States without the payment of duty or 
tax. Such withdrawal shall be permitted only after the approval by the 
port director of a special written application, in triplicate, on 
Customs Form 5125, of the withdrawer, supported by a bond on Customs 
Form 301, containing the bond conditions set forth in Sec. 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,

[[Page 125]]

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 subsequent arrival 
of the vessel at a Customs port or station and that an accounting 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 evidence of consumption on board or landing under Customs 
supervision.) The approval shall be subject to the further conditions 
that any such withdrawn article remaining on board while the vessel 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 withdrawal 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 entered, or withdrawn, for consumption.
    Exemption from internal-revenue tax on distilled spirits, alcohol, 
wines, and beer removed from any internal-revenue bonded warehouse, 
industrial alcohol premises, bonded wine cellar, or brewery; and 
drawback on taxpaid distilled 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 Department 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 
amended. Advices also have been received of changes and limitations of 
privileges allowed. In accordance with these advices, Treasury decisions 
are issued extending to the aircraft of foreign countries free 
withdrawal privileges reciprocal 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:

------------------------------------------------------------------------
                                       Treasury    Exceptions if any, as
              Country                Decision(s)          noted--
------------------------------------------------------------------------
Abu Dhabi..........................        95-45
Argentina..........................    54925 (1)  Applicable only as to
                                           92-20   aircraft 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  Not applicable to
                                          69-245   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
                                                   aircraft supplies.
Czechoslovakia.....................   70-107 (1)
Denmark............................    51966 (3)
Dominican Republic.................    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
                                                   aviation fuels and
                                                   lubricants.
Iran...............................       75-254
Ireland............................    55291 (1)

[[Page 126]]

 
Israel.............................    52831 (3)
Italy..............................       69-223  Not applicable to
                                                   ground equipment.
Ivory Coast........................       71-215
Jamaica............................       70-250
Japan..............................   53550 (1),  Not applicable to
                                           88-45   ground support
                                                   equipment as of
                                                   August 1, 1986
Jordan.............................       74-102
Kenya..............................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Lebanon............................    53902 (1)
Luxembourg.........................        89-77  Applicable only as to
                                                   aviation fuels.
Mexico.............................    54506 (5)
Morocco............................       75-254
Netherlands........................    52494 (2)
Netherlands Antilles...............       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),  Not applicable to
                                           82-91   ground equipment.
Tanzania...........................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Thailand...........................  71-138, 89-
                                               6
Trinidad and Tobago................    56441 (1)
Turkey.............................         89-7
Uganda.............................       71-102  Applicable only as to
                                                   aircraft fuels and
                                                   lubricants.
Union of Soviet Socialist Republics   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 citations affecting Sec. 
10.59, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 10.60  Forms of withdrawals; bond.

    (a) Withdrawals from warehouse shall be made on Customs Form 7501. 
Each withdrawal shall contain the statement prescribed for withdrawals 
in Sec. 144.32 of this chapter and all of the statistical information 
as provided in Sec. 141.61(e) of this chapter. Withdrawals from 
continuous Customs custody elsewhere 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 Sec. 10.59(a)(3), a notation 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 
warehouse or rewarehouse entry, as the case may be, the assent of such 
principal shall be endorsed on the withdrawal, unless the principal has 
otherwise authorized such withdrawal in writing.
    (c) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 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 rewarehouse entry, as provided for in paragraph (b) of this 
section.
    (d) Except as otherwise provided in Sec. 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 Sec. 309, Tariff 
Act of 1930, as amended, when the supplies are to be laden at a port 
other than the port of withdrawal from warehouse, 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 procedure shall 
be the same as that prescribed in Sec. 144.37 of this chapter (the six 
copies of Customs Form 7501 taking the place of the entry copies of 
Customs 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

[[Page 127]]

section, when articles are withdrawn from continuous Customs custody 
elsewhere than in a bonded warehouse for lading at the port of 
withdrawal, the procedure provided for in Sec. 18.25 of this chapter 
shall be followed, except that the bond required shall be on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter. Unless transfer is permitted under the provisions of 
paragraph (h) of this section, when articles are withdrawn from 
continuous Customs custody elsewhere than in a bonded warehouse for 
lading at another port, the procedure set forth in Sec. 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 Sec. 113.62 of this chapter. There shall be 
such examination of the articles as may be necessary 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 quantity declared for 
them are correct.
    (g) A withdrawal under Sec. 10.59(e) shall be supported by a bond 
on Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter.
    (h) If a request is made for permission 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 director in his discretion may permit the articles 
to be so transferred under Customs supervision under a permit on Customs 
Form 3171 in lieu of a formal withdrawal under the pertinent statute. In 
such a case, the pertinent statute shall be indicated by an endorsement 
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]



Sec. 10.61  Withdrawal permit.

    Upon the filing of the withdrawal and the execution of the bond, 
when required, 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]



Sec. 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 Sec. 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 intended only for lading duty free 
as supplies 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 partial 
release takes place, the partial release procedure set forth in Sec. 
19.6(d) of this chapter shall be followed for each partial release. 
However, each abstract copy of Customs Form 7501 shall include the 
following additional information:
    (1) Type of oil withdrawn.
    (2) Number or other identification of sales order therefor.
    (3) Name of bonded carrier, date it received oil.
    (4) Receipt signed by master or other person in charge of delivering 
conveyance identified by number, or name, and if Customs bonded 
lighterman or cartman, by the carrier's license number.
    (5) Name and location of vessel obtaining 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''

[[Page 128]]

and limited to the aggregate quantity and value of fuel oil which it is 
estimated 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 section 309 of the 
tariff act, the port director may, when necessary to enable a supplier 
to meet fuel specifications, permit the blending of the oils in the 
delivering conveyance or in other suitable 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 withdrawer 
shall be required to file a withdrawal for consumption for the excess 
quantity withdrawn. For example, if the quantity withdrawn consists of 
1,500 barrels of bunker C fuel oil classifiable at the rate of one-
eighth cent per gallon and 500 barrels of diesel oil classifiable 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, 
withdrawals for consumption are required for 500 barrels of diesel oil 
at the higher rate and for 100 barrels of bunker C fuel oil at the lower 
rate.
    (2) Delivering transferer receipt. The receipt 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 
classifiable 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 supplies at one port may be laden 
at another port on a vessel or vessels entitled to the free withdrawal 
privileges of section 309 of the tariff act, under procedures prescribed 
in this section, provided the movement to the receiving vessel or 
vessels is under the bond of a qualified carrier as described in Sec. 
18.1(a) of this chapter. In such cases, the provisions of Sec. 10.60(d) 
of this chapter shall be deemed inapplicable.
    (e) If a vessel not entitled to duty-free withdrawal of supplies 
from Customs bonded warehouses under section 309 of the Tariff Act of 
1930, as amended, 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 withdrawal 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 filing 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, 
representatives of the port director will from time to time verify 
various withdrawals against all pertinent records, including financial 
records, of the withdrawers, deliverers, and receivers of the oil. The 
withdrawer shall maintain all pertinent records relating to the 
withdrawal, delivery, or receipt of the fuel oil for 5 years from the 
date of 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]



Sec. 10.62a  Blanket withdrawals for certain 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 
warehouse except fuel oil covered under Sec. 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 
release are the same as those provided in Sec. 19.6(d) of this chapter, 
except as noted in paragraph (b).

[[Page 129]]

    (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 Sec. 19.6(d) of this chapter, as merchandise is needed for 
delivery to a using vessel. The original of the partial release document 
shall accompany the merchandise for delivery to the Customs officer who 
will supervise lading, or if a Customs officer does not physically 
supervise lading, to the master of the vessel. The original shall be 
returned to the proprietor for record purposes after the Customs officer 
or master 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]



Sec. 10.62b  Aircraft turbine fuel.

    (a) General. Unless otherwise provided, 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 withdrawal only if 
such commingling is approved by the appropriate Customs official for the 
port where the commingling occurs. The appropriate Customs official may 
approve such commingling if the fueling system in which the commingling 
will occur contains adequate physical safeguards to prevent the possible 
unauthorized entry into the Customs 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 period;
    (2) Used under section 309 within that 24-hour period; or
    (3) Entered or withdrawn for consumption, with duty deposited, as 
required under the applicable regulations (see part 144 of this 
chapter).
    (b) Duty-free withdrawal from warehouse of aircraft turbine fuel 
under section 557(a), Tariff Act of 1930, as amended (19 U.S.C. 
1557(a)). Turbine fuel intended for use as supplies on aircraft under 
section 309, Tariff Act of 1930, as amended, and withdrawn from a 
Customs bonded warehouse shall be entitled to the privileges provided 
for in section 309 if an amount equal to or exceeding the quantity of 
such fuel is established, 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 accordance with the procedures in 
Sec. Sec. 10.59 through 10.64, unless otherwise provided in this 
section. Withdrawals under this paragraph shall be annotated with the 
term ``Withdrawal under 19 CFR 10.62b(b)''.
    (c) Establishment of use of fuel by qualifying aircraft. (1) The 
person withdrawing aircraft turbine fuel under paragraph (b) of this 
section must establish 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 warehouse entry was filed, within 
the time provided in paragraph (d) of this section, either--
    (i) Records prepared in the normal course of business effecting the 
transfer to identified (e.g., by aircraft company name, flight number, 
flight origin and destination, and date of flight) aircraft 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 intended 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

[[Page 130]]

which is not entered and on which duties 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 certification possesses evidence 
(documentary or electronic) available for Customs inspection at a named 
place which supports each of the above statements.
    (2) Upon request by Customs, the person who submits the 
certification provided for in paragraph (c)(1) of this section shall 
promptly provide the evidence required to support the claim for 
treatment under this section (including the records described in Sec. 
10.62b(c)(1)(i)) and Sec. Sec. 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 withdrawing aircraft turbine fuel under paragraph (b) of this 
section shall submit the records or certification provided for in 
paragraph (c) of this section by the 40th day after the date of 
withdrawal of the fuel unless the fuel was withdrawn under a blanket 
withdrawal under paragraph (g) of this section. If the fuel was 
withdrawn under a blanket withdrawal, the person withdrawing aircraft 
turbine fuel under this section shall submit the records or 
certification provided for in paragraph (c) of this section by the 40th 
day after all of the fuel covered by the blanket permit 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 quantity 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 consumption shall be filed and duties 
shall be deposited for the excess of fuel so withdrawn 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 withdrawal of the 
fuel in accordance with the procedures in Sec. 144.38 of this chapter. 
Interest shall be payable and deposited 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 account for turbine fuel 
withdrawn under paragraphs (b) through (h) of this section shall result 
in liquidated damages against the person withdrawing the turbine fuel, 
as provided for under Sec. 113.62 of this chapter. Such failure to 
account for turbine fuel includes:
    (1) The failure to timely file the withdrawal for consumption and 
payment 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 provided for in 
paragraph (e) of this section;
    (2) The failure to timely file the evidence or certification 
establishing such use of the fuel which is not entered and on which 
duties are not paid, as provided for in paragraph (c) of this section; 
or
    (3) The failure to promptly provide the evidence required to support 
the claim for treatment under paragraph (b) of this section, upon 
request by Customs, as provided for in paragraph (c)(2) of this section.
    (g) Blanket withdrawals. Blanket withdrawals, as provided for in 
Sec. Sec. 10.62 and 19.6(d), may be used for withdrawals 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 Sec. Sec. 
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 permit per Sec. Sec. 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

[[Page 131]]

entry or warehouse entry/entry summary, 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 Sec. 19.6(d)(2)) will be a commercially acceptable 
document of receipt (such as a ``withdrawal ticket'') issued by the 
warehouse proprietor, identified with a unique alpha-numeric code and 
containing the following information:
    (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 withdrawn.
    (6) The date of withdrawal, for purposes of calculating the 30-day 
period in which fuel must be used on qualifying aircraft under this 
section, shall be the date on which physical removal of the fuel from 
the warehouse commences;
    (7) The blanket permit summary prepared by the proprietor as 
provided for in Sec. 19.6(d)(4) shall be prepared when all of the fuel 
covered by the blanket permit has been withdrawn and shall account for 
all merchandise withdrawn under the blanket permit, as required by Sec. 
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 Sec. 
19.6(d)(4)) shall be that the merchandise listed thereunder was 
withdrawn in compliance with Sec. Sec. 10.62, 10.62b, and 19.6(d); and
    (9) The person withdrawing aircraft turbine fuel under these blanket 
procedures shall submit the records or certification provided for in 
Sec. 10.62b(c) by the 40th day after all of the fuel covered by the 
blanket permit has been withdrawn (see Sec. 10.62b(d)). At the 
discretion of the port director for the port where blanket withdrawal 
was approved, submission of the records and evidence required to 
establish use of the fuel on qualifying aircraft may be required to be 
submitted electronically, in a format compatible with Customs electronic 
record-keeping systems.
    (h) Recordkeeping. The person withdrawing 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]



Sec. 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 country. See Sec. 4.39 of this chapter. Except when transfer to 
another vessel entitled to the free withdrawal privilege is permitted 
under the original withdrawal under section 309, Tariff Act of 1930, as 
amended, the landed articles 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]



Sec. 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 Sec. 113.62 of this chapter may be 
credited or canceled in respect of such articles upon the vessel'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 withdrawer 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 operated by the United States and proceeds 
in ballast from the port where the articles are laden to another port to 
lade passengers or cargo for carriage in a

[[Page 132]]

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 declaration as prescribed below. The declaration shall be 
executed by one of the following who has knowledge of the facts:
    (1) The operations manager or port captain for the vessel on which 
the articles are laden but not a representative of the supplier.
    (2) The master or other officer of the vessel on which the articles 
are laden. The declaration shall be in substantially the following form:

I,______________________________________________________________________
(Operations manager, port captain, master, or other officer) of the 
vessel ------------ declare that I have knowledge of the facts set forth 
herein, and that upon the lading of the articles described below covered 
by withdrawal No. --------, filed at ----------------(Name of port), the 
vessel then proceeded in ballast to ----------------(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:
________________________________________________________________________
                                        (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:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

________________________________________________________________________
                                                        (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 prescribed 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]



Sec. 10.64a  [Reserved]



Sec. 10.65  Cigars and cigarettes.

    (a) Imported cigars and cigarettes in bonded warehouse or otherwise 
in Customs custody, and such articles manufactured with the use of 
imported materials in a bonded manufacturing warehouse of class 6, may 
be withdrawn under section 317, Tariff Act of 1930, as amended, for 
consumption beginning beyond the 3-mile limit or international boundary, 
as the case may be, (1) on vessels actually engaged in the foreign, 
intercoastal, or noncontiguous territory trade within the purview of 
Sec. 10.59(a); (2) on vessels departing from the port where the 
withdrawal 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 waters for an indefinite period without sailing schedules, nor 
shall it be granted 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), Tariff Act of 1930, as amended, that such 
country allows privileges to aircraft registered in the United States 
substantially 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 
identification and contains not less than 250 cigars or 1,000 
cigarettes. In the case of imported cigars and cigarettes so

[[Page 133]]

packed, only one unit from each shipping case shall be opened for 
examination, unless the port director shall deem it necessary for the 
protection of the revenue to examine a greater quantity. 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 shipping 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 separate withdrawal for each 
unit. In such event, the withdrawal shall be retained by the warehouse 
proprietor until delivery receipts are obtained for the entire quantity 
covered by the withdrawal, provided the total period of time prior to 
delivery to the using vessel or aircraft does not exceed 5 years. A bond 
on Customs Form 301, containing the bond conditions set forth in Sec. 
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 bonded 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 properly accounted for, duties shall be paid thereon 
before any further withdrawals are permitted.
    (5) The declaration of use, when required, shall include a statement 
that consumption of the articles covered by the withdrawal did not begin 
until the withdrawing vessel or aircraft had proceeded 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.



Sec. 10.66  Articles exported for temporary exhibition and returned; horses exported for horse racing and returned; procedure on entry.

    (a) In connection with the entry of articles, including livestock or 
other animals, exported for temporary exhibition and returned and 
claimed to be exempt from duty under subheading 9801.00.50 or 
9801.00.60, Harmonized Tariff 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 either 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 
exportation 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 Sec. 113.62 of this 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 Schedule 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 paragraph (a) or 
(b) of this section if:
    (1) Prior to the exportation of such articles, an application on 
Customs Form 4455 (accompanied by an appropriate 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

[[Page 134]]

with the regulations set forth in Sec. Sec. 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 
inventory 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]



Sec. 10.67  Articles exported for scientific or educational purposes and returned; procedure on entry.

    (a) In connection with each entry of articles exported for 
scientific or educational purposes and returned under subheading 
9801.00.40, Harmonized Tariff Schedule of the United States (HTSUS), the 
following shall be required, irrespective of the value of the shipment:
    (1) A certificate of exportation on Customs Form 3311;
    (2) A declaration by the foreign shipper in the same form as that 
prescribed in Sec. 10.66(a)(2) but stating that such articles were sent 
from the United States solely for temporary scientific or educational 
use and describing the specific use to which they were put while abroad.
    (3) A declaration of the ultimate consignee in substantially the 
following form:

Port of ----------------, Port Director's Office, ------------------, 
19----.
    I, --------------------, declare that the several 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 ------------ 
day of ------------, 19----, by ------------------ (Actual shipper) 
address ----------------, for the account of ----------------, address 
----------------that they are returned to ----------------, address ----
------------, for the account of ----------------, address ------------
-- that the said articles were exported solely for temporary scientific 
or educational purposes and for no other use abroad than for exhibition, 
examination, or experimentation; that they are being returned without 
having been changed in condition in any manner, except by reason of 
their bona fide use as follows:
________________________________________________________________________
                                          (Describe change in condition)
________________________________________________________________________
________________________________________________________________________
                                                    (Ultimate consignee)

    (b) If it is shown to be impracticable to produce the certificate of 
exportation required by paragraph (a)(1) of this section, the port 
director may accept other satisfactory evidence of exportation. The port 
director may take a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 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 articles claimed to be exempt 
from duty under subheading 9801.00.40, Harmonized Tariff Schedule of the 
United States (HTSUS), an application on Customs Form 4455 (accompanied 
by an appropriate inventory when, in the discretion of the port 
director, such inventory 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 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' Samples, 
                           and Tools of Trade



Sec. 10.68  Procedure.

    (a) Theatrical scenery, properties, and effects, motion-picture 
films (including motion-picture films taken aboard a vessel for 
exhibition only during 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, 
instruments, and tools of trade, occupation,

[[Page 135]]

or employment (see Sec. 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 application on Customs Form 4455 was filed, and the 
merchandise was identified as set forth in Sec. 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 paragraph, be returned without entry or the payment 
of duty. If Customs Form 4455 is utilized, commercial travelers' 
samples, professional books, implements, instruments, and tools of 
trade, occupation, or employment may be returned with either an informal 
entry or a declaration on Customs Form 3299; theatrical scenery, 
properties, and effects and motion-picture films may be returned only 
with an informal entry. When articles other than those exported by mail 
or parcel post are examined and registered at one port and exported 
through another port, the port director may require proof of exportation 
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 examination 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 directors 
may waive examination and supervision 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. 
Customs officers for entry at any Canadian or Mexican port where U.S. 
Customs officers are stationed. Application and examination before the 
time of exportation 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 articles before they are released from foreign 
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 stationed, 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 
manner 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' samples consisting of raw cotton are 
taken to and returned from Canada, the application 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]



Sec. 10.69  Samples to Great Britain and Ireland under reciprocal agreement.

    Descriptive lists of samples taken to Great Britain and Ireland by 
commercial travelers of the United States under the joint declarations 
of December 3 and 8, 1910 (State Department treaty series 552), shall be 
required in triplicate, verified by the affidavit of the commercial 
traveler before a Customs officer, and shall show that the samples are 
for use as models or patterns for the purpose of obtaining orders and 
not for sale and that the lists contain a full description of the 
articles. One copy shall be retained and the others shall be delivered 
to the commercial traveler--one for the identification 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 attested by a 
consular officer of the country concerned in the United States.

[[Page 136]]

                            Animals and Birds

    Cross Reference: For regulations with respect to recognition of 
breeds and purebred animals, see 9 CFR part 151.



Sec. 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, Harmonized 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 Agriculture a certificate that the animal is purebred of a 
recognized breed and duly registered in a book of record recognized by 
the Secretary of Agriculture for that breed. Importers are required by 
regulation of the Department of Agriculture to make application for a 
certificate of pure breeding to the U.S. Department of Agriculture, 
Animal and Plant Health Inspection Service, Veterinary 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 
regulations of the Department of Agriculture for the importation of 
animals (9 CFR 92.3). However, applications for certificates for dogs 
(other than dogs for handling 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 Department of 
Agriculture prescribing the requirements for the issuance of 
certificates of pure breeding provide that all animals imported under 
such regulations 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 certificates 
and transfers, such action shall constitute a waiver of any further 
claim to certification under such regulations.
    (b) In the cases of cats and dogs arriving at Canadian border ports, 
Customs officers and employees are hereby authorized and directed to 
make the examination required by such regulations 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, Customs officers shall make the examination 
of dogs and cats, whether or not accompanied by the owners, if there is 
no inspector of the Department of Agriculture 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]



Sec. 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 conditions set forth in Sec. 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 (2) the declaration required by 
Sec. 10.70(a) submitted in letter form if such declaration was not 
filed at the time of entry. The release of the animal from customs 
custody requires the presentation of the pedigree certificate and 
evidence of transfer of ownership in accordance with the regulations of 
the Department of Agriculture mentioned in Sec. 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 certificate and evidence of transfer 
of ownership have been presented in accordance with the regulations of 
the Department of Agriculture, the importer, if he so elects, may, in 
lieu of giving a bond, deposit estimated duties and file a stipulation 
with the port director 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, whereupon the liquidation of the entry shall

[[Page 137]]

be suspended. (See Sec. 113.42 of this chapter.)
    (d) If the pedigree certificate and evidence of transfer of 
ownership were not presented in accordance with such regulations of the 
Department of Agriculture, 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 Sec. 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 exceed $500. In such case the entry shall be supported 
by a bond on Customs Form 301, containing the bond conditions set forth 
in Sec. 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]



Sec. Sec. 10.72-10.73  [Reserved]



Sec. 10.74  Animals straying across boundary for pasturage; offspring.

    When domestic animals for which free entry is to be claimed under 
subheading 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 representative 
of the Animal and Plant Health Inspection Service of the Department of 
Agriculture. Any such arrival found not to have been so reported or held 
shall be subject to seizure 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]



Sec. 10.75  Wild animals and birds; zoological collections.

    When wild animals or birds are claimed to be free of duty under 
subheading 9810.00.70, Harmonized Tariff Schedule of the United States 
(HTSUS), (19 U.S.C. 1202), the port director may, at his discretion, 
require appropriate proof that the animals or birds were specially 
imported pursuant to negotiations conducted prior to importation for the 
delivery of animals or birds of a named species meeting agreed 
specifications of reasonable particularity 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 
connection with any enterprise conducted for profit. The fact that an 
animal or bird may have been sent on approval shall not preclude free 
entry under subheading 9810.00.70, HTSUS, when it is actually accepted 
as a part of the zoological 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]



Sec. 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, 
Department 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.

[[Page 138]]

                                  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 subheading 9817.00.70, Harmonized Tariff Schedule of the United 
States shall be referred to the United States Customs Service for 
consideration. Animals imported 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 requiring a written declaration upon the filing of a 
declaration on U.S. Fish and Wildlife Service Form 3-177, Declaration 
for Importation or Exportation of Fish or Wildlife. No bond or cash 
deposit to insure the destruction or exportation 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]



Sec. 10.77  [Reserved]

                     Products of American Fisheries



Sec. 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 transferred 
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 American 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 conjunction 
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 marine products taken by citizens of a foreign country on the 
high seas or in foreign 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 employed by and under the supervision of the master or owner 
of the fishery. Fish (except cod, haddock, hake, pollock, 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 free entry, whether or not such processing is done by the 
American fishery. Products of an American fishery prepared 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]



Sec. 10.79  [Reserved]

                          Salt For Curing Fish



Sec. 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 waters 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.

[[Page 139]]

(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 duties thereon 
shall be remitted. In no case shall the quantity of salt withdrawn 
exceed the reasonable requirements of the case. Withdrawal shall be made 
on Customs Form 7501. Each withdrawal shall contain the statement 
prescribed for withdrawals in Sec. 144.32 of this chapter. When the 
withdrawal is made by a person other than the importer of record, a bond 
on Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter for the production of proof of proper use shall 
be filed. Upon acceptance 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]



Sec. 10.81  Use in any port.

    (a) Salt withdrawn under bond for use in curing fish on the shores 
of navigable waters may be used for such purpose 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 curing fish on shore at another 
port than that in which it is warehoused in bond may be withdrawn under 
a transportation 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. Thereupon, and upon 
the filing of a bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 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]



Sec. 10.82  [Reserved]



Sec. 10.83  Bond; cancellation; extension.

    (a) If it shall appear to the satisfaction of the port director 
holding the bond referred to in Sec. 10.80, that the entire quantity of 
salt covered by the bond has been duly accounted for, either by having 
been used in curing fish or by the payment of duty, the port director 
may cancel the charges against the bond. The port director may require 
additional evidence in corroboration of the proof of use produced.
    (b) On application of the person making 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



Sec. 10.84  Automotive vehicles and articles 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 Products Trade Act of 1965. The articles designated for such 
duty-free treatment are defined in General Note 3(c)(iii), HTSUS (19 
U.S.C. 1202). Specifically, such articles are those designated [as 
``Free (B)''] in the ``Special'' subcolumn in Chapter 87, HTSUS, and 
must qualify as ``Canadian articles'' as defined in General Note 
3(c)(iii)(A)(1), HTSUS. To claim exemption from duty under the 
Automotive Products Trade Act of 1965, an importer must establish, to 
the satisfaction 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 
satisfactory 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 circumstances of the importation a certificate is 
unnecessary.
    (2) Under the United States-Canada Free-Trade Agreement and 
implementing legislation (Pub. L. 100-449, 102

[[Page 140]]

Stat. 1851) a manufacturer of motor vehicles may elect to average, over 
its 12-month financial year, its calculation of the value-content 
requirement for vehicles in establishing its eligibility for tariff 
preference. Requirements for averaging are set forth in Sec. 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 covered by the ---------- 
(Describe the invoice, bill of lading, or other document or statement 
identifying the shipment) annexed or appended to this certificate of 
Canadian origin at the time it was subscribed were wholly 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 production or in the production of any 
intermediate 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 certificate in the 
following form may be accepted as evidence that the commodity is 
nevertheless a ``Canadian article'':

    The product covered by the ---------- (Describe the invoice, bill of 
lading, or other document or statement identifying the shipment) annexed 
or appended to this certificate 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 ---------- (Description sufficient 
for tariff classification of the materials, and number of units) of 
third country materials of which the price paid was ---------- per unit 
of quantity, plus ---------- 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 adequately 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 ---------- (Describe the invoice, bill of 
lading, or other document or statement identifying the shipment) annexed 
or appended to this certificate 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 materials are 
described (sufficient for tariff classification purposes) as follows: --
--------.

    (4) The certificates described in paragraphs (b)(2) and (b)(3) of 
this section shall not be accepted if the statements therein make it 
evident that the importation is not a ``Canadian article'' within the 
meaning of General Note 3(c), HTSUS.
    (5) If more than one kind of article is covered by a certificate 
provided for in paragraph (b) (1), (2), or (3) of this section, the 
information required by the certificate shall be shown with respect to 
each kind. When more than one kind of material, other than originating 
material, 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 brokerage fees paid in Canada and/or the United States on the 
material, per unit of each kind of materials.
    (6) A certificate conforming to paragraph (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 documentary evidence which 
identifies the article to which the certificate pertains,
    (ii) The certificate is signed by the manufacturer or producer of 
the article

[[Page 141]]

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 annexed to the certificate when it was signed.
    (c) In lieu of the certification in paragraph (b) (1), (2), or (3) 
of this section, a manufacturer of motor vehicles who claims a 
preference under the United States-Canada Free-Trade Agreement and 
elects to average pursuant to Sec. 10.310(a), shall be subject to the 
requirements of Sec. Sec. 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 connection therewith his declaration that the articles are 
being imported for use as original equipment in the manufacture in the 
United States of the kinds of motor vehicles specified in the General 
Note and furnish the name and address of the motor vehicle manufacturer. 
A copy of the written order, contract, or letter of intent shall be 
attached to the importer's declaration except that if the port director 
is satisfied that a copy of the written order, contract, or letter of 
intent will be made available by the importer or ultimate consignee for 
inspection by customs officials upon request during a period 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 exportation under Customs supervision or pay duties in 
accordance with General Note 3(c)(iii)(B)(2), HTSUS. If such article is 
not destroyed or exported under Customs supervision or the duties 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



Sec. 10.90  Master records and metal matrices.

    (a) Consumption entries covering importations 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 located.
    (b) The invoice filed with the entry shall contain or be supported 
by a detailed statement of the cost of production, in the country where 
made, of each master record or metal matrix covered thereby.
    (c) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter shall be filed for importations 
under this section.
    (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 respect to any article 
covered thereby only upon payment of liquidated damages in an amount 
equal to the duties which would have accrued had the master records or 
metal matrices been imported for use otherwise than in the manufacture 
of sound records for export 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]

[[Page 142]]

                               Prototypes



Sec. 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 defined as 
``prototypes'' and meeting the other requirements prescribed in 
paragraph (b) of this section may be entered or withdrawn from warehouse 
for consumption, duty-free, under subheading 9817.85.01, Harmonized 
Tariff Schedule of the United States (HTSUS), on CBP Form 7501 or an 
electronic equivalent. A separate entry or withdrawal must be made for a 
qualifying prototype article each time the article is imported/
reimported to the United States.
    (2) Importer declaration. (i) Entry accepted as declaration. Entry 
or withdrawal from warehouse for consumption under HTSUS subheading 
9817.85.01 may be accepted by the port director as an effective 
declaration that the articles will be used solely for the purposes 
stated in the subheading.
    (ii) Proof (declaration) of actual use. If it is believed the 
circumstances so warrant, the port director may request the submission 
of proof of actual use, executed 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 consumption. Liquidation of the related entry may be extended until 
the requested 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 expired. While requested proof of use must be given to 
CBP within three years of the date of entry, the prototype may continue 
to be used thereafter for the purposes enumerated in HTSUS subheading 
9817.85.01. If requested proof of use is not timely received, 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 
electronically 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 determine 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 completion of their use under 
HTSUS 9817.85.01 (also see paragraphs (c) and (d) of this section 
concerning the disposition(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 incorporated into other 
products that are sold, after the articles have been entered or 
withdrawn from warehouse for consumption and prior to the completion 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 subheading 9817.85.01, the term ``prototypes'' means 
originals or models of articles pertaining to any industry that:
    (i) Are either in the preproduction, production or postproduction 
stage and are to be used exclusively for development, 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 production or postproduction stage, are associated with a design 
change from current production (including a refinement, advancement, 
improvement, development or quality control in either the product itself 
or the means of producing the product).
    (2) Additional requirements. In accordance with U.S. Note 6(b) and 
(c) to subchapter XVII of chapter 98, HTSUS, applicable to subheading 
9817.85.01, the following additional restrictions apply to articles that 
may be classified as prototypes:

[[Page 143]]

    (i) Importations limited. Prototypes may be imported pursuant to 
this section only in limited noncommercial quantities in accordance with 
industry practice.
    (ii) Sale prohibited after entry and prior to use. Prototypes or 
parts of prototypes may not be sold, or be incorporated 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 subheading 9817.85.01, except that, after having been used 
for the purposes for which they were entered or withdrawn from warehouse 
under HTSUS subheading 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 licensing requirements, or that must comply with laws, rules 
or regulations administered by an agency other than CBP before being 
imported, may be entered as prototypes pursuant to this section if they 
meet all applicable provisions of law and otherwise meet the definition 
of prototypes in paragraph (b)(1) of this section.
    (iv) Articles excluded from being prototypes. Articles that are in 
fact subject at the time of entry to quantitative restrictions, 
antidumping orders or countervailing 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 prototypes, 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 paragraph (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 purposes contemplated in HTSUS subheading 9817.85.01, the prototype 
or any part(s) of the prototype (including a prototype or any part that 
is incorporated into another product) is sold as scrap, waste, or for 
recycling, the importer 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 actual 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 required for the notice of sale, a consumption entry (CBP Form 
7501), appropriately 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) 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 Sec. 24.25 of this chapter). The notice 
of sale must be executed by the importer, or other person having 
knowledge 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 actual use was requested under paragraph (a)(2)(ii) of this 
section; and a detailed description of the condition of the prototype 
following use for the intended permissible purposes, including any 
damage, degradation or deterioration to the article resulting from such 
use

[[Page 144]]

and/or otherwise resulting to the article 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 article (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 
execution.
    (d) Prototypes not sold following use. As to those prototypes or 
parts of prototypes 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 
merchandise after the merchandise's use under HTSUS subheading 
9817.85.01 other than sale to the extent authorized under paragraph 
(c)(1) of this section.
    (e) Recordkeeping; retention and production--(1) Recordkeeping. The 
importer must be prepared to submit to the CBP officer, if requested, 
any information, including any supporting documents, reports and 
records, as was necessary for the preparation of the declaration 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 necessary. Supporting documentary evidence 
must be made available to the CBP officer, upon request, for a period of 
five years (see Sec. 163.4(a) of this chapter) from the date of filing 
in complete and proper form, the declaration of use, if requested, and, 
if applicable, the notice of sale. The supporting records must be made 
available to the CBP officer upon request in accordance with Sec. 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, testing, review, manipulation, experimentation, 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 production 
facility, where these activities occurred, sufficient to demonstrate 
that the purposes enumerated in HTSUS subheading 9817.85.01 are taking 
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 consumption entry was made under subheading 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;
    (C) The HTSUS subheading number for scrap, waste, or recycled 
material, as applicable, claimed in connection with the sale of the 
prototype is accurate;
    (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 prototypes or parts of 
prototypes that are sold as scrap, or waste, or for recycling, 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

[[Page 145]]

condition following use for the purposes 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 otherwise 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 
component 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 procedure presented in paragraph (f)(2) of this section, an 
entry of an article made under a temporary importation bond (TIB) solely 
for testing, experimental 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 following conditions exist:
    (i) The article meets the definition for ``prototypes'' in paragraph 
(b) of this section (U.S. Note 6(a) to subchapter 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 
subheading 9813.00.30 to a duty-free entry under HTSUS subheading 
9817.85.01, provided that the port director is satisfied 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 director will provide a courtesy acknowledgment to this effect to 
the importer in writing or electronically.

[CBP Dec. 04-36, 69 FR 63449, Nov. 2, 2004]



Sec. Sec. 10.92-10.97  [Reserved]

                            Fluxing Material



Sec. 10.98  Copper-bearing fluxing material.

    (a) For the purpose of this section, ores usable as a flux or 
sulphur reagent, mentioned in the provision for such ores in subheading 
2603.00.00, Harmonized 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 warehouse, 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 
suspended pending proof of use for fluxing purposes as hereinafter 
provided.
    (d) Samples of the material shall be taken in accordance with the 
commercial method in effect at the plant if to be used in a bonded 
smelting warehouse, or in accordance with Sec. Sec. 151.52 through 
151.55 of this chapter if entered for consumption, and the copper 
content 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 liquidated, a statement based on its records of 
operation for each quarterly period showing for each furnace or 
converter the total quantity of material charged during each month or 
part thereof of each quarter, the total quantity of material used for 
fluxing purposes, and the quantity of imported ores used for fluxing 
purposes for which free entry was claimed under the above-mentioned 
provision, together

[[Page 146]]

with the copper content of such imported ores computed in accordance 
with the Government assay. If the quantity of ores used for fluxing 
purposes in any furnace or converter during 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 accompanied by an 
explanation of the necessity 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



Sec. 10.99  Importation of ethyl alcohol for nonbeverage purposes.

    (a) If claim is made by an importer other than the United States or 
a governmental agency thereof for the classification of ethyl alcohol of 
an alcoholic 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 alcohol is to be used for nonbeverage purposes 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 
distilled spirits plant upon deposit of estimated 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, Bureau of Alcohol, Tobacco and Firearms (BATF) 
Regulations (27 CFR part 251, subpart I). The transfer shall be 
accomplished 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 
connection with the withdrawal of ethyl alcohol from Customs custody by 
the United States or any governmental agency thereof for its own use for 
nonbeverage purposes. Such permit shall be filed before release under 
the entry without the deposit of estimated duties, if any, and internal 
revenue tax, or before release in accordance with the provisions of 
Sec. 141.102(d) of this chapter. (See subpart M of part 251, Bureau 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 Virgin 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



Sec. 10.100  Entry, examination, and tariff status.

    Except as otherwise provided for in Sec. Sec. 10.101, 10.102, 
10.104, 141.83(d)(8), 141.102(d), or elsewhere in this chapter, 
importations made by or for the account of any agency or office of the 
United States Government are subject to the usual Customs entry and 
examination 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, 9808.00.60, 9808.00.70, or other 
subheadings 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]



Sec. 10.101  Immediate delivery.

    (a) Shipments entitled to immediate delivery. 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 regarded for purposes of these regulations 
as shipments the immediate delivery 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 
preceding paragraph may be released upon

[[Page 147]]

the filing of immediate delivery applications on Customs Form 3461 as 
set forth in subpart A of part 142 of this chapter. Such applications 
may be limited to particular shipments or may cover all shipments 
imported by the Government agency making the application. They may be 
approved for specific periods of time or for indefinite periods of time, 
provided in either case they are supported by carrier's certificates and 
stipulations as provided for in paragraph (c) of this section.
    (c) Carrier's certificates and stipulations. 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 accordance with the provisions of Sec. Sec. 141.11 and 
141.12 of this chapter.
    (d) Bond. No bond shall be required in support of an immediate 
delivery application 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, --------, -------- (Title), a duly authorized representative of the__
________________________________________________________________________
(Name of United States Government department or agency) stipulate and 
agree on behalf of such department or agency that all applicable 
provisions of the Tariff Act of 1930, as amended, and the regulations 
thereunder, and all other laws and regulations, relating to the release 
and entry of merchandise will be observed and complied with in all 
respects.
________________________________________________________________________
                                                             (Signature)

    (e) Timely entries required. If proper entries for consumption for 
importations released under these regulations are not filed within a 
reasonable time, appropriate steps shall be taken to insure 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]



Sec. 10.102  Duty-free entries.

    (a) Invoice or declaration. No invoice or other declaration of the 
shipper shall be required for shipments expressly 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, memorandum 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 Sec. 141.85 of this chapter, setting forth adequate information 
for examination and determination of the dutiable status of the 
merchandise. In addition, the port director 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 described in paragraph (b) of this section.
    (b) Certification. One of the following certificates executed by a 
duly authorized officer or official of the appropriate 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 the certification is clearly and unmistakably 
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 Department of the (name of 
military department), and it is accordingly requested that such material 
be admitted free of duty pursuant to subheading 9808.00.30, HTSUS.

________________________________________________________________________
 (Name)
________________________________________________________________________
(Title), who has been designated to execute free-entry certificates for 
the above-named department.
________________________________________________________________________
(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

[[Page 148]]

and critical materials procured under the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98e).

________________________________________________________________________
 (Name)
________________________________________________________________________
(Title), Defense Logistics Agency, who has been duly authorized to 
execute the above certificate.

    (3) Articles for the Department of Energy, subheading 9808.00.50, 
HTSUS. I certify to the Secretary of the Treasury 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 subheading 9808.00.50, HTSUS.

________________________________________________________________________
 (Name)
________________________________________________________________________
(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 materials 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 warehouse, for 
consumption in the name of the Government department whose 
representative executes the certificate set forth in Sec. 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]



Sec. 10.103  American goods returned.

    (a) Certificate required. Articles entered, 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 Department 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 --------------------
---- (Name of Carrier) at the port of ------------------------ (Port) on 
------------ (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 --------
---------------- (Agency or Office)


------------------------------------------------------------------------
                                                 General description of
 Number of containers   Bill of lading No.\1\           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 Tariff Schedule of the United States (HTSUS) free 
of duty.
    4. That I am a military installation transportation officer having 
knowledge of the facts involved in this certificate.
 or
    I am an officer or official authorized by ---------------- (Agency 
or Office) (Whichever is applicable) to execute this certificate.
________________________________________________________________________
 (Name)
________________________________________________________________________

            (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 combined certificate which follows the 
requirements of Sec. 10.102(b) and paragraph (a) of this section.
    (c) Execution of certificate. The certificate required by paragraph 
(a) of this

[[Page 149]]

section may be executed by any military 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 Government agency or office. If the 
merchandise arrived on a commercial carrier, 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]



Sec. 10.104  Temporary importation entries 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, Subchapter 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 Sec. 141.102(d) of this 
chapter. In those cases in which the provisions of Chapter 98, 
Subchapter 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 delivery 
under the procedures set forth in Sec. 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



Sec. 10.106  [Reserved]

                         Rescue and Relief Work



Sec. 10.107  Equipment and supplies; admission.

    (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 article 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 exportation as soon as possible after exportation 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 admitted 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 
connection with a use contemplated for it by section 322 (b) that it has 
only a salvage value, it shall not be required to be exported.
    (c) Any article admitted under paragraph (a) of this section which 
is used in the United States otherwise than for a purpose contemplated 
for it by section 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



Sec. 10.108  Entry of reimported articles exported under lease.

    Free entry shall be accorded under subheading 9801.00.20, Harmonized 
Tariff 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

[[Page 150]]

V of the Trade Act of 1974, is being reimported without having been 
advanced in value or improved in condition 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



Sec. 10.110  [Reserved]

          Late Filing of Free Entry and Reduced Duty Documents



Sec. 10.112  Filing free entry documents or reduced duty documents after entry.

    Whenever a free entry or a reduced duty document, form, or statement 
required 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 
liquidated, before the liquidation becomes final. See Sec. 113.43(c) of 
this chapter for satisfaction of the bond and cancellation of the bond 
charge.

[T.D. 74-227, 39 FR 32015, Sept. 4, 1974]

  Instruments and Apparatus for Educational and Scientific Institutions



Sec. 10.114  General provisions.

    The consolidated regulations of the Commerce and Treasury 
Departments relating to the entry of instruments and apparatus for 
educational and scientific institutions are contained in 15 CFR part 
301.

[T.D. 82-224, 47 FR 53727, Nov. 29, 1982]



Sec. Sec. 10.115-10.119  [Reserved]

                      Visual or Auditory Materials



Sec. 10.121  Visual or auditory materials of an educational, scientific, or cultural 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 subheading 9817.00.40, 
HTSUS, there shall be filed in connection with the entry covering such 
articles a document issued by the U.S. Information Agency certifying 
that it has determined that the articles are visual or auditory 
materials 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, 
Subchapter XVII, chapter 98, HTSUS.
    (b) Articles entered under subheading 9817.00.40, Harmonized Tariff 
Schedule of the United States (HTSUS), shall be released from Customs 
custody prior to submission of the document required in paragraph (a) of 
this section only upon the deposit of estimated duties with the port 
director. Liquidation of an entry covering merchandise which has been 
released under this procedure shall be suspended for a period of 90 days 
from the date of entry or until the required document is submitted, 
whichever occurs first. In the event that the director of the port of 
entry does not receive the required document within the 90-day period, 
the merchandise shall be immediately classified and liquidated in the 
ordinary course, without regard to subheading 9817.00.40, HTSUS.

[T.D. 67-185, 32 FR 11641, Aug. 11, 1967, as amended by T.D. 89-1, 53 FR 
51252, Dec. 21, 1988; T.D. 90-78, 55 FR 40166, Oct. 2, 1990]

                 Rate of Duty Dependent Upon Actual Use



Sec. 10.131  Circumstances in which applicable.

    The provisions of Sec. Sec. 10.131 through 10.139 are applicable in 
those circumstances in which the rate of duty

[[Page 151]]

applicable to merchandise is dependent upon actual use, unless there is 
a specific provision in this part which governs the treatment of the 
merchandise. However, specific marking or certification 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]



Sec. 10.132  [Reserved]



Sec. 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 entered 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]



Sec. 10.134  Declaration of intent.

    A showing of intent by the importer as to the actual use of imported 
merchandise shall be made by filing with the entry for consumption or 
for warehouse 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, 
provided the port director is satisfied the merchandise will be so used. 
However, the port director shall require a written 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]



Sec. 10.135  Deposit of duties.

    When the requirement of Sec. 10.134 has been met the merchandise 
may be entered 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]



Sec. 10.136  Suspension of liquidation.

    Liquidation of an entry covering merchandise for which a declaration 
of intent has been made pursuant to Sec. 10.134 and any required 
deposit of duties 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]



Sec. 10.137  Records of use.

    (a) Maintenance by importer. The importer shall maintain accurate 
and detailed records showing the use or other disposition of the 
imported merchandise. The burden shall be on the importer to keep 
records so that the claim of actual use can be readily established.
    (b) Retention of records. The importer shall retain records of use 
or disposition 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 inspection by an authorized Customs officer.

[T.D. 71-139, 36 FR 10726, June 2, 1971]



Sec. 10.138  Proof of use.

    Within 3 years from the date of entry or withdrawal from warehouse 
for consumption, the importer shall submit in duplicate in support of 
his claim for free entry or for a reduced rate of duty

[[Page 152]]

a certificate executed by (1) the superintendent or manager of the 
manufacturing plant, or (2) the individual end-user or other person 
having knowledge of the actual use of the imported article. The 
certificate shall include a description of the processing in sufficient 
detail to show that the use contemplated by the law has actually taken 
place. A blanket certificate covering all purchases of a given type of 
merchandise from a particular importer during a given period, or all 
such purchases with specified exceptions, may be accepted for this 
purpose, provided the importer shall furnish 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]



Sec. 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 
withdrawal from warehouse for consumption, the entry shall be liquidated 
dutiable 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 Sec. 10.134 and the deposit of estimated duties required by 
Sec. 10.135 without compliance with Sec. Sec. 10.136, 10.137, and 
10.138. Blackstrap molasses is ``final'' molasses practically free from 
sugar crystals, containing not over 58 percent total sugars and having a 
ratio of

total sugars x 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 
molasses within the meaning of this paragraph.

[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



Sec. 10.151  Importations not over $200.

    Subject to the conditions in Sec. 10.153 of this part, the port 
director shall pass free of duty and tax any shipment of merchandise, as 
defined in Sec. 101.1 of this chapter, imported by one person on one 
day having a fair retail value, as evidenced 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 shipment 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 pertinent law or regulation. Merchandise 
subject to this exemption shall be entered under the informal entry 
procedures (see subpart C, part 143, and Sec. Sec. 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]



Sec. 10.152  Bona-fide gifts.

    Subject to the conditions in Sec. 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 foreign country to a person in the United 
States, provided that the aggregate fair retail value in the country of 
shipment 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 entered under the informal entry procedures (see 
subpart C, part 143, and Sec. Sec. 145.32, 148.12, 148.51, and 148.64, 
of this chapter). An article is ``sent'' for purposes of this section if 
it is conveyed in any manner other than on the person

[[Page 153]]

or in the accompanied or unaccompanied baggage of the donor or donee.

[T.D. 94-51, 59 FR 30293, June 13, 1994]



Sec. 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 
Sec. 10.151 or Sec. 10.152:
    (a) A ``bona fide gift'' for purposes of Sec. 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 exchange, 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 outside to indicate that it contains a gift. Such marking 
is not conclusive evidence 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 person 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 shipment.
    (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 Sec. 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 Sec. Sec. 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 consigned 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 articles sent from persons 
in the Virgin Islands, Guam, and American Samoa) included 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 persons 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 country of shipment of all 
merchandise contained in the shipment does not exceed $5), cigars, or 
cigarettes shall be exempted from the payment of duty and tax under 
Sec. 10.151 or Sec. 10.152.
    (f) The exemptions provided for in Sec. 10.151 or Sec. 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 shipment 
in excess of $100 ($200, in the case of articles sent from persons in 
the Virgin Islands, Guam, and American Samoa), except as indicated in 
paragraph (d) of this section. For example, 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), 
Tariff Act of 1930, as amended (19 U.S.C. 1401a or 1402), even though 
the dutiable value is less than the $100 (or $200) exemption.
    (g) The exemption referred to in Sec. 10.151 is not to be allowed 
in the case

[[Page 154]]

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



Sec. 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 Preferences (GSP) to provide duty-free treatment 
for eligible articles imported directly from designated beneficiary 
developing countries. Beneficiary developing countries and articles 
eligible for duty-free treatment are designated by the President by 
Executive order in accordance with sections 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 Sec. Sec. 10.171 through 
10.178, except as otherwise provided in Sec. 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 countries which is a 
free trade area or customs union or which is contributing to 
comprehensive regional economic integration among its members through 
appropriate means, including but not limited to, the reduction of 
duties, the President may by Executive order provide that all members of 
such association 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 Sec. Sec. 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]



Sec. 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 Sec. Sec. 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 subheading 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]



Sec. 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 beneficiary developing country. 
(i) Declaration. In a case involving merchandise covered by a formal 
entry which is not wholly the growth, product, or manufacture of a 
single beneficiary developing country, the exporter of the merchandise 
or other appropriate party having knowledge of the relevant facts shall 
be prepared to submit directly to the port director, upon request, a 
declaration setting forth all pertinent detailed information concerning 
the production or manufacture of the merchandise. When requested by the 
port director, the declaration shall be prepared in substantially the 
following form:

                             GSP DECLARATION

 I,_____________________________________________________________________
(name), hereby declare that the articles described below were produced 
or manufactured in ---------------- (country) by means of processing 
operations performed in that country as set forth below and were also 
subjected 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 produced in the country named above or 
in any

[[Page 155]]

other country or countries which are members of the same association of 
countries as set forth below:

----------------------------------------------------------------------------------------------------------------
                                                 Processing operations performed      Materials produced in a
                                                           on articles            beneficiary developing country
                                                ---------------------------------     or members of the same
                                                                                            association
                                 Description of                                  -------------------------------
  Number and date of invoices     articles and    Description of                  Description of
                                    quantity        processing     Direct costs      material,
                                                  operations and   of processing    production     Cost or value
                                                    country of      operations     process, and     of material
                                                    processing                      country of
                                                                                    production
----------------------------------------------------------------------------------------------------------------
 
 
 
 
----------------------------------------------------------------------------------------------------------------

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration 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 
requests submission of the declaration 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. Failure 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 developing country, a statement to that effect 
shall be included on the commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section will 
not be required for a shipment covered by an informal entry, the port 
director may require 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 obtaining the necessary verification, the port 
director may treat the entry as dutiable.

[T.D. 94-47, 59 FR 25569, May 17, 1994]



Sec. 10.174  Evidence of direct shipment.

    (a) Documents constituting evidence of direct shipment. The port 
director may require that appropriate shipping papers, 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 Sec. 10.175. Any evidence of direct shipment required by the 
port director shall be subject to such verification as he deems 
necessary.
    (b) Waiver of evidence of direct shipment. The port director may 
waive the submission of evidence of direct shipment when he is otherwise 
satisfied, taking into consideration the kind and value of the 
merchandise, that the merchandise clearly qualifies for treatment 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]



Sec. 10.175  Imported directly defined.

    Eligible articles shall be imported directly from a beneficiary 
developing country to qualify for treatment under the Generalized System 
of Preferences. For purposes of Sec. Sec. 10.171 through 10.178 the 
words ``imported directly'' mean:
    (a) Direct shipment from the beneficiary country to the United 
States

[[Page 156]]

without passing through the territory of any other country; or
    (b) If the shipment is from a beneficiary developing country to the 
U.S. through the territory of any other country, the merchandise in the 
shipment does not enter into the commerce of any other country while en 
route to the U.S., and the invoice, bills of lading, and other shipping 
documents show the U.S. as the final destination; or
    (c) If shipped from the beneficiary developing country to the United 
States through a free trade zone in a beneficiary developing country, 
the merchandise shall not enter into the commerce of the country 
maintaining the free trade zone, and
    (1) The eligible articles must not undergo 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 operations 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 export 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 
commerce of the country maintaining the free trade zone; or
    (d) If the shipment is from any beneficiary 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 original 
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 countries treated as one country 
under section 507(2), Trade Act of 1974, as amended (19 U.S.C. 2467(2)), 
through the territory of a former beneficiary developing country whose 
designation as a member of the same association for GSP purposes was 
terminated by the President 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 commerce of the former beneficiary 
developing country except for purposes of performing one or more of the 
operations 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]



Sec. 10.176  Country of origin criteria.

    (a) Merchandise produced in a beneficiary developing country or any 
two or more countries which are members of the same association of 
countries--(1) General. Except as otherwise provided in this section, 
any article which either is wholly the growth, product, or manufacture 
of, or is a new or different article of commerce that has been grown,

[[Page 157]]

produced, or manufactured in, a beneficiary developing country may 
qualify for duty-free entry under the Generalized System of Preferences 
(GSP). No article will be considered to have been grown, produced, or 
manufactured in a beneficiary developing country by virtue of having 
merely undergone simple (as opposed to complex or meaningful) combining 
or packaging operations or mere dilution with water or mere dilution 
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 beneficiary developing country or any two or 
more countries that are members of the same association of countries and 
are treated as one country under section 507(2) of the Trade Act of 
1974, as amended (19 U.S.C. 2467(2)), plus the direct costs of 
processing operations performed 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 entered.
    (2) Combining, packaging, and diluting operations. No article which 
has undergone only a simple combining or packaging 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 
section:
    (i) Simple combining or packaging operations and mere dilution 
include, but are not limited to, the following:
    (A) The addition of batteries to devices;
    (B) Fitting together a small number of components by bolting, 
glueing, soldering, 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 components together;
    (F) Reconstituting orange juice by adding water to orange juice 
concentrate; and
    (G) Diluting chemicals with inert ingredients to bring them to 
standard degrees 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 reaction creating a new 
chemical compound; 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 fabricated in the beneficiary developing country where the 
assembly took place); and
    (iii) The fact that an article has undergone more than a simple 
combining or packaging operation or mere dilution is not necessarily 
dispositive of the question of whether that processing constitutes a 
substantial transformation 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 Sec. 10.171(b), and manufactured 
products consisting of materials produced only in such country or 
countries, shall normally be presumed to meet the requirements 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]



Sec. 10.177  Cost or value of materials produced in the beneficiary developing country.

    (a) ``Produced in the beneficiary developing country'' defined. For 
purposes of

[[Page 158]]

Sec. Sec. 10.171 through 10.178, the words ``produced in the 
beneficiary developing country'' refer to the constituent materials of 
which the eligible article is composed which are either:
    (1) Wholly the growth, product, or manufacture of the beneficiary 
developing country; or
    (2) Substantially transformed in the beneficiary developing country 
into a new and different article of commerce.
    (b) Questionable origin. When the origin of an article either is not 
ascertainable or not satisfactorily demonstrated to the port director, 
the article shall not be considered to have been produced in the 
beneficiary developing country.
    (c) Determination of cost or value of materials produced in the 
beneficiary developing country. (1) The cost or value of materials 
produced in the beneficiary developing country includes:
    (i) The manufacturer's actual cost for the materials;
    (ii) When not included in the manufacturer'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 spoilage (material list), less the 
value of recoverable scrap; and
    (iv) Taxes and/or duties imposed on the materials by the beneficiary 
developing country, or an association of countries treated as one 
country, provided they are not remitted upon exportation.
    (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 computing the sum of:
    (i) All expenses incurred in the growth, production, manufacture or 
assembly of the material, including general 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 
materials is not available, the appraising officer 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]



Sec. 10.178  Direct costs of processing operations performed in the beneficiary developing country.

    (a) Items included in the direct costs of processing operations. As 
used in Sec. 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 consideration. Such costs 
include, but are not limited to:
    (1) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (2) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (3) Research, development, design, engineering, and blueprint costs 
insofar 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 product. 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, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.

[T.D. 76-2, 40 FR 60049, Dec. 31, 1975]

[[Page 159]]



Sec. 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 otherwise excluded from duty-free treatment 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 President 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 African 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 African 
country and meets the requirements specified or referred to in paragraph 
(d) of this section:
    (1) Watches, except those watches entered after June 30, 1989, that 
the President specifically determines, after public 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 wearing apparel which were not eligible articles for purposes of 
the GSP on January 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-
sensitive in the context of the GSP.
    (c) Claim for duty-free treatment. A claim for the duty-free 
treatment referred to in paragraph (a) of this section must be made by 
placing on the entry document the symbol ``D'' as a prefix to the 
subheading of the Harmonized Tariff Schedule of the United States for 
each article for which duty-free treatment is claimed;
    (d) Origin and related rules. The provisions of Sec. Sec. 10.171, 
10.173, and 10.175 through 10.178 will apply for purposes of duty-free 
treatment under this section. However, application of those provisions 
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 Sec. 10.173(a)(1)(i), the 
column heading ``Materials produced in a beneficiary developing country 
or members of the same association'' should read ``Material produced in 
a beneficiary sub-Saharan African country or in the U.S.;''
    (3) The provisions of Sec. 10.175(c) will not apply; and
    (4) For purposes of determining compliance with the 35 percent value 
content requirement set forth in Sec. 10.176(a):
    (i) An amount not to exceed 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, and 
the provisions of Sec. 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 included in the article that are 
produced in more than one beneficiary sub-Saharan African country may be 
applied without regard to whether those countries are members of the 
same association of countries.
    (e) Importer requirements. In order to make a claim for duty-free 
treatment under this section, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the article qualifies for duty-free treatment;
    (2) Must have records that demonstrate that the importer is claiming 
that the article qualifies for duty-free treatment because it is the 
growth of a beneficiary sub-Saharan African country or because it is the 
product of a beneficiary sub-Saharan African country or because it is 
the manufacture of a beneficiary sub-Saharan African

[[Page 160]]

country. If the importer is claiming that the article is the growth of a 
beneficiary sub-Saharan African country, the importer must have records 
that indicate that the product was grown in that country, such as a 
record of receipt from a farmer whose crops are grown in that country. 
If the importer is claiming that the article is the product of, or the 
manufacture of, a beneficiary 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 Sec. 10.176(a) and paragraph (d) of this 
section. A properly completed GSP declaration in the form set forth in 
Sec. 10.173(a)(1) is one example of a record that would serve this 
purpose;
    (3) Must establish and implement internal 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 country to the United States. If the 
imported article was shipped through a country other than a beneficiary 
sub-Saharan African country and the invoices and other documents from 
the beneficiary sub-Saharan African 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 Sec. 
10.175(d)(1) through (3) were met;
    (5) Must have records that demonstrate the cost or value of the 
materials produced in the United States and the cost or value of the 
materials produced in a beneficiary sub-Saharan African country or 
countries and the direct costs of processing operations incurred in the 
beneficiary sub-Saharan African country that were relied upon by the 
importer to determine that the article met the 35 percent value content 
requirement set forth in Sec. 10.176(a) and paragraph (c) of this 
section. A properly completed GSP declaration in the form set forth in 
Sec. 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 Customs and must be prepared to explain how those 
records and the internal controls 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



Sec. 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 certificate from the importer establishing that:
    (1) The petroleum is imported pursuant to a commercial exchange 
agreement between United States and Canadian 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 export 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 the 180th day after the date of entry; and
    (2) Articles entered, or withdrawn from warehouse, for consumption, 
pursuant to a commercial exchange agreement.
    (c) Verification of the quantities of crude petroleum exported to or 
imported from Canada under such a commercial exchange agreement shall be 
made in accordance with import

[[Page 161]]

verification provided in Part 151, Subpart 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



Sec. 10.180  Certification.

    (a) The foreign official's meat-inspection certificate required by 
U.S. Department 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 certification shall be made, 
prior to exportation 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 requirements 
contained in 9 CFR 327.4. Appropriate officials of the exporting country 
should consult with the U.S. Department of Agriculture as to the beef 
grades or standards within their country that satisfy the certification 
requirement. 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 
satisfy 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 
jurisdiction.

                              Certification

    I hereby certify to the best of my knowledge and belief that the 
herein described fresh, chilled, or frozen beef, meets the 
specifications prescribed in regulations issued by the U.S. Department 
of Agriculture (7 CFR 2853.106 (a) and (b)).
    (b) Appropriate officials of the following countries have agreed 
with the U.S. Department of Agriculture as to the grades or standards 
for fresh, chilled, or frozen beef within their respective countries 
which will satisfy the certification requirements of paragraph (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



Sec. Sec. 10.181-10.182  [Reserved]

                             Civil Aircraft



Sec. 10.183  Duty-free entry of civil aircraft, 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 engines, and ground 
flight simulators, including their parts, components, and subassemblies, 
that qualify as civil aircraft 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, repair, maintenance, rebuilding, modification, or 
conversion of aircraft; and
    (2) They are either:
    (i) Manufactured or operated pursuant to a certificate issued by the 
Administrator 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 recognized by the FAA 
as an acceptable substitute for the FAA certificate;
    (ii) Covered by an application for such certificate, submitted to 
and accepted by the FAA, filed by an existing type and production 
certificate holder pursuant to 49 U.S.C. 44702 and implementing 
regulations (Federal Aviation Administration Regulations, title 14, Code 
of Federal Regulations); or
    (iii) Covered by an application for such approval or certificate 
which will

[[Page 162]]

be submitted in the future by an existing type and production 
certificate holder, pending the completion of design 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 section 
only if they are used as original or replacement equipment in the 
design, development, testing, evaluation, manufacture, repair, 
maintenance, rebuilding, modification, or conversion of aircraft and 
meet the requirements of either paragraph (a)(2)(i) or (a)(2)(ii) of 
this section.
    (c) Claim for admission free of duty. Merchandise qualifying under 
paragraph (a) or paragraph (b) of this section is entitled to duty-free 
admission in accordance with General Note 6, HTSUS, upon meeting the 
requirements of this section. An importer will make a claim for duty-
free admission under this section and General Note 6, HTSUS, by properly 
entering qualifying 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 benefit of 
drawback does not preclude free entry under this section.
    (d) Importer certification. In making a claim for duty-free 
admission as provided for under paragraph (c) of this section, the 
importer is deemed to certify, in accordance with General Note 6(a)(ii), 
HTSUS, that the imported merchandise 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 summary 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 admission, including the written order or contract and other 
evidence that the merchandise entered qualifies under General Note 6, 
HTSUS, as a civil aircraft, aircraft engine, or ground flight simulator, 
or their parts, components, and subassemblies. Evidence that the 
merchandise qualifies under the general note includes evidence of 
compliance with paragraph (a)(1) of this section concerning use of the 
merchandise and evidence of compliance with the airworthiness 
certification requirement 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 airworthiness by an 
airworthiness authority in the country of export and evidence that the 
FAA recognizes that approval as an acceptable substitute for an FAA 
certification; an application for a certification submitted to and 
accepted by the FAA; a type and production certificate issued by the 
FAA; and/or evidence that a type and production certificate holder will 
submit an application for certification or approval in the future 
pending completion of design 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 
stipulated by the FAA. This documentation 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 treatment 
and may result in such other measures permitted under the regulations as 
the port director finds necessary to more closely monitor the importer's 
importations of merchandise claimed to be duty-free under this section. 
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 filing an entry that made 
no such duty-

[[Page 163]]

free claim, by filing a written statement 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 treatment under the general note and its certification that 
the entered merchandise is a civil aircraft or has been imported for use 
in a civil aircraft and will be so used. In accordance with General Note 
6, HTSUS, any refund resulting 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. 01-31, 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.



Sec. 10.191  General.

    (a) Statutory authority. Subtitle A, Title II, Pub. L. 98-67, 
entitled the Caribbean 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 articles from 
any beneficiary country.
    (b) Definitions--(1) Beneficiary country. For purposes of Sec. 
10.191 through Sec. 10.199 and except as otherwise provided in Sec. 
10.195(b), the term ``beneficiary country'' means any country or 
territory or successor political entity with respect to which there is 
in effect a proclamation by the President designating such country, 
territory or successor political entity as a beneficiary country in 
accordance with section 212(a)(1)(A) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(a)(1)(A)).
    (2) Eligible articles. Except as provided herein, for purposes of 
Sec. 10.191(a), the term ``eligible articles'' means any merchandise 
which is imported directly from a beneficiary country as provided in 
Sec. 10.193 and which meets the country of origin criteria set forth in 
Sec. 10.195 or in Sec. 10.198b. The following merchandise shall not be 
considered eligible 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 August 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 derived from petroleum, provided for 
in headings 2709 and 2710, Harmonized Tariff Schedule of the United 
States (HTSUS).
    (v) Watches and watch parts (including cases, bracelets and straps), 
of whatever type including, but not limited to, mechanical, quartz 
digital or quartz analog, if such 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.
    (vi) Articles to which reduced rates of duty apply under Sec. 
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 treatment of such articles are limited by Additional U.S. Note 
4, Chapter 17, HTSUS.
    (viii) Articles subject to the provisions 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 Recovery 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 pursuant to sections 213 (c)(2), 
(e)(1), or (f)(3) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703 (c)(2), (e)(1), or (f)(3)).
    (3) Wholly the growth, product, or manufacture of a beneficiary 
country. For purposes of Sec. 10.191 through Sec. 10.199, the

[[Page 164]]

expression ``wholly the growth, product, or manufacture of a beneficiary 
country'' refers both to any article which has been entirely grown, 
produced, or manufactured in a beneficiary country or two or more 
beneficiary countries and to all materials incorporated in an article 
which have been entirely grown, produced, or manufactured in any 
beneficiary country or two or more beneficary countries, as 
distinguished from articles or materials imported into a beneficiary 
country from a non-beneficiary country whether or not such articles or 
materials were substantially transformed into new or different articles 
of commerce after their importation into the beneficiary country.
    (4) Entered. For purposes of Sec. 10.191 through Sec. 10.199, the 
term ``entered'' means entered, or withdrawn from warehouse for 
consumption, in the customs 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]



Sec. 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 requirements set forth in this section and Sec. 10.193 through 
Sec. 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]



Sec. 10.193  Imported directly.

    To qualify for treatment under the CBI, an article shall be imported 
directly from a beneficiary country into the customs territory of the 
U.S. For purposes of Sec. 10.191 through Sec. 10.198b the words 
``imported directly'' mean:
    (a) Direct shipment from any beneficiary country to the U.S. without 
passing through the territory of any non-beneficiary country; or
    (b) If the shipment is from any beneficiary country to the U.S. 
through the territory of any non-beneficiary country, 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 lading, 
and other shipping documents show the U.S. as the final destination; or
    (c) If the shipment is from any beneficiary country to the U.S. 
through the territory of any non-beneficiary 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 original 
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]



Sec. 10.194  Evidence of direct shipment.

    (a) Documents constituting evidence of direct shipment. The port 
director may require that appropriate shipping papers, 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 Sec. 10.193. Any evidence of direct shipment required shall 
be subject to such verification as deemed necessary by the port 
director.
    (b) Waiver of evidence of direct shipment. The port director may 
waive the submission of evidence of direct shipment when otherwise 
satisfied, taking into consideration the kind and value of the 
merchandise, that the merchandise was, in fact, imported directly and 
that it otherwise clearly qualifies for treatment under the CBI.

[[Page 165]]



Sec. 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 manufacture 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, produced, or 
manufactured in a beneficiary country by virtue of having merely 
undergone simple (as opposed to complex or meaningful) combining or 
packaging operations, or mere dilution with water or mere dilution with 
another substance that does not materially 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 material produced in a 
beneficiary country 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 
entered.
    (2) Combining, packaging, and diluting operations. No article which 
has undergone only a simple combining or packaging operation or a mere 
dilution in a beneficiary country within the meaning 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 requirement 
set forth in that paragraph.
    (i) For purposes of this section, simple combining or packaging 
operations and mere dilution include, but are not limited to, the 
following processes:
    (A) The addition of batteries to devices;
    (B) Fitting together a small number of components by bolting, 
glueing, soldering 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 components together;
    (F) Reconstituting orange juice by adding water to orange juice 
concentrate; and
    (G) Diluting chemicals with inert ingredients to bring them to 
standard degrees of strength.
    (ii) For purposes of this section, simple 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 reaction creating a new 
chemical compound; 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 components, one of which 
was fabricated in the beneficiary country where the assembly took 
place).

The fact that an article or material has undergone more than a simple 
combining or packaging operation or mere dilution is not necessarily 
dispositive of the question of whether that processing constitutes a 
substantial transformation for purposes of determining the country of 
origin of the article or material.
    (b) Commonwealth of Puerto Rico and U.S. Virgin Islands--(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 and the U.S. Virgin Islands. Any cost or 
value of materials or direct costs of processing operations attributable 
to the U.S. Virgin Islands must be included in the article prior to its 
final exportation 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 beneficiary country is entered under bond for processing 
or use in manufacturing in the Commonwealth of Puerto Rico,

[[Page 166]]

no duty will be imposed on the withdrawal from warehouse for consumption 
of the product of that processing or manufacturing provided that:
    (i) The article entered in the warehouse in the Commonwealth of 
Puerto Rico was grown, produced, or manufactured in a beneficiary 
country within the meaning of paragraph (a) of this section and was 
imported directly from a beneficiary country within the meaning of Sec. 
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 requirement 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 section, an amount not 
to exceed 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 U.S. (other than the 
Commonwealth of Puerto Rico). In the case of materials produced in the 
customs territory of the U.S., the provisions of Sec. 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 attributed 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 
beneficiary 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 paragraph, the terms 
``textile component'' and ``fabric'' have reference only to goods 
covered by the definition of ``textile or apparel product'' set forth in 
Sec. 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 beneficiary country exclusively from materials which 
are wholly the growth, product, or manufacture of a beneficiary country 
or countries, shall normally be presumed to meet the requirements set 
forth in paragraph (a) of this section.
    (f) Country of origin marking. The general country of origin marking 
requirements 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]



Sec. 10.196  Cost or value of materials produced in a beneficiary country or countries.

    (a) ``Materials produced in a beneficiary country or countries'' 
defined. For purposes of Sec. 10.195, the words ``materials produced in 
a beneficiary country or countries'' refer to those materials 
incorporated in an article which are either:
    (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 Sec. 10.195(a), 
substantially transformed in any beneficiary country or two or more 
beneficiary countries into a new or different article of commerce which 
is then used in any beneficiary country in the production or manufacture 
of a new or different article which is imported directly into the U.S.

    Example 1. A raw, perishable skin of an animal grown in one 
beneficiary country is sent to another beneficiary country where it is 
tanned to create nonperishable ``crust leather''. The tanned product is 
then imported directly 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 entire cost or 
value of that material may be counted toward the 35 percent value 
requirement set forth in Sec. 10.195.
    Example 2. A raw, perishable skin of an animal grown in a non-
beneficiary country is sent to a beneficiary country where it is tanned 
to create nonperishable ``crust leather''. The tanned skin is then 
imported directly 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 Sec. 10.195(a), the cost or

[[Page 167]]

value of the raw skin may not be counted toward the 35 percent value 
requirement because (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 operation 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 
imported 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 animal grown in a non-
beneficiary country is sent to a beneficiary country where it is tanned 
to create nonperishable ``crust leather''. 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 
imported article may be counted toward the 35 percent value requirement. 
The cost or value of the metal buckle imported into the beneficiary 
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 different article prior to its incorporation in 
the finished belt.
    Example 4. A raw, perishable skin of an animal 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 different article of 
commerce produced in a beneficiary country within the meaning of Sec. 
10.195(a), and under Sec. 10.195(b), the raw skin from which the tanned 
product was made is considered to have been grown in a beneficiary 
country for the purpose of applying the 35 percent value requirement. 
The tanned material of which the imported article 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 origin of a material either is not 
ascertainable or is not satisfactorily demonstrated to the port 
director, the material 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 country. (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 manufacturer'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 spoilage (material list), less the 
value of recoverable scrap; and
    (iv) Taxes and/or duties imposed on the materials by any beneficiary 
country, 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 computing the sum of:
    (i) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (ii) An amount for profit; and
    (iii) Freight, insurance, packing, and all other costs incurred in 
transporting the material to the manufacturer's plant.

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.



Sec. 10.197  Direct costs of processing operations performed in a beneficiary country or countries.

    (a) Items included in the direct costs of processing operations. As 
used in Sec. 10.195 and Sec. 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 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:

[[Page 168]]

    (1) All actual labor costs involved in the growth, production, 
manufacture or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (2) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (3) Research, development, design, engineering, and blueprint costs 
insofar 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 product. 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, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.

[T.D. 84-237, 49 FR 47993, Dec. 7, 1984; 49 FR 49575, Dec. 20, 1984]



Sec. 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 involving 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 
knowledge of the relevant facts in the beneficiary country where the 
article was produced or last processed shall be prepared to submit 
directly to the port director, upon request, a declaration setting forth 
all pertinent detailed information concerning the production or 
manufacture of the article. When requested by the port director, the 
declaration shall be prepared in substantially the following form:

                             CBI Declaration

    I, ----------------------------,
(name), hereby declare that the articles described below (a) were 
produced or manufactured in ---------------- (country) by means of 
processing operations performed in that country as set forth below and 
were also subjected 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 beneficiary 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 Commonwealth of Puerto Rico) as set forth below:

----------------------------------------------------------------------------------------------------------------
                                                 Processing operations performed      Material produced in a
                                                           on articles             beneficiary country or in the
                                                ---------------------------------              U.S.
                                                                                 -------------------------------
                                 Description of   Description of                  Description of
  Number and date of invoices     articles and      processing     Direct costs      material,
                                    quantity      operations and   of processing    production     Cost or value
                                                    country of      operations     process, and     of material
                                                    processing                      country of
                                                                                    production
----------------------------------------------------------------------------------------------------------------
 
 
 
 
----------------------------------------------------------------------------------------------------------------

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (ii) Retention of records and submission of declaration. The 
information necessary for preparation of the declaration 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 
requests submission of the declaration

[[Page 169]]

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. Failure to submit the declaration in a timely fashion will result 
in a denial of duty-free treatment.
    (iii) Value added after final exportation. In a case in which value 
is added to an article in a bonded warehouse or in a foreign-trade zone 
in the Commonwealth 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 requirement under Sec. 10.195(a), the 
declaration provided for in paragraph (a)(1)(i) of this section shall be 
filed by the importer or consignee with the entry summary as evidence of 
the country of origin. The declaration shall be properly completed by 
the party responsible for the addition of such value.
    (2) Merchandise wholly the growth, product, or manufacture of a 
beneficiary country. In a case involving merchandise covered by a formal 
entry which is wholly the growth, product, or manufacture of a single 
beneficiary country, a statement to that effect shall be included on the 
commercial invoice provided to Customs.
    (b) Shipments covered by an informal entry. Although the filing of 
the declaration provided for in paragraph (a)(1)(i) of this section will 
not be required for a shipment covered by an informal entry, the port 
director may require 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 obtaining the necessary verification, the port 
director may treat the entry as dutiable.

[T.D. 94-47, 59 FR 25570, May 17, 1994]



Sec. 10.198a  Duty reduction for certain leather-related articles.

    Except as otherwise provided in Sec. 10.233, reduced rates of duty 
as proclaimed 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 manufactured in a beneficiary country 
within the meaning of Sec. 10.195;
    (b) Meets the 35 percent value-content requirement prescribed in 
Sec. 10.195; and
    (c) Was imported directly from a beneficiary country within the 
meaning of Sec. 10.193.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000]



Sec. 10.198b  Products of Puerto Rico processed in a beneficiary country.

    Except in the case of any article described in Sec. 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 manufacture of the 
Commonwealth of Puerto Rico and that is by any means advanced in value 
or improved in condition in a beneficiary country, provided that:
    (a) If any materials are added to the article in the beneficiary 
country, those materials consist only of materials 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 
Sec. 10.193.

[T.D. 00-68, 65 FR 59658, Oct. 5, 2000]



Sec. 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 territory of Canada and that is classifiable under subheading 
2208.40 or 2208.90, Harmonized Tariff Schedule of the United States 
(HTSUS), will be entitled, upon entry or withdrawal from warehouse for 
consumption, to duty-free treatment under section 213(a)(6) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(6)), also known 
as the Caribbean Basin Initiative (CBI), if the spirituous beverage

[[Page 170]]

has been produced in the territory of Canada from rum, provided that the 
rum:
    (1) Is the growth, product, or manufacture 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 Islands; 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 entering such beverage under subheading 9817.22.05, HTSUS, on 
the entry summary document or its electronic equivalent. In order to 
claim the exemption, the importer must have the records described 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 beverage is the growth, product or 
manufacture 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 territory of the 
United States from Canada; 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 customs territory of the United 
States from Canada means:
    (i) Direct shipment from the territory of Canada to the U.S. without 
passing through the territory of any other country; or
    (ii) If the shipment is from the territory 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 territory 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 shipment are imported directly only if they:
    (A) Remained under the control of the customs authority of the 
intermediate country;
    (B) 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 original 
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 beneficiary country or from the 
U.S. Virgin Islands into the territory of Canada means:
    (i) Direct shipment from a beneficiary 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 beneficiary country or from the U.S. 
Virgin Islands into the territory of Canada through the territory of any 
non-beneficiary country, the rum does not enter into the commerce of any 
non-beneficiary country while en route to Canada; or
    (iii) If the shipment is from a beneficiary country or from the U.S. 
Virgin Islands into the territory of Canada through the territory of any 
non-beneficiary country, the rum in the shipment is imported directly 
into the territory of Canada only if it:
    (A) Remained under the control of the customs authority of the 
intermediate country;

[[Page 171]]

    (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 activities necessary to 
preserve the product in good condition.
    (d) Evidence of direct shipment--(1) Spirituous beverages imported 
from Canada. The importer must be prepared to provide to the port 
director, if requested, 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, invoice, air waybill, freight 
waybill, or cargo manifest. Any evidence of the direct shipment of these 
spirituous beverages 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 
Islands. The importer must be prepared to provide to the port director, 
if requested, 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 described in 
paragraph (c)(2) of this section. This evidence may include documents 
such as a Canadian customs entry, Canadian customs invoice, Canadian 
customs manifest, cargo manifest, bill of lading, landing certificate, 
airway bill, or freight waybill. Any evidence 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 subject to such verification as deemed necessary by the 
port director.
    (e) Origin of rum used in production of the spirituous beverage--(1) 
Origin criteria. 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, produced, or manufactured in a 
beneficiary country or in the U.S. Virgin Islands by virtue of having 
merely undergone blending, combining or packaging operations, or mere 
dilution with water or mere dilution with another substance that does 
not materially alter the characteristics of the product.
    (2) Evidence of origin of rum--(i) Declaration. The importer must be 
prepared to submit directly to the port director, if requested, a 
declaration prepared and signed by the person who produced or 
manufactured the rum, affirming that the rum is the growth, product or 
manufacture of a beneficiary country or of the U.S. Virgin Islands. 
While no particular form is prescribed for the declaration, it must 
include all pertinent information concerning the processing operations 
by which the rum was produced or manufactured, 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 
evidence as to the origin of the rum may be subject to such verification 
as deemed necessary by the port director.
    (f) Canadian processor declaration; supporting documentation--(1) 
Canadian processor declaration. The importer must be prepared to submit 
directly to the port director, if requested, a declaration prepared by 
the person who produced the spirituous beverage(s) in Canada, setting 
forth all pertinent information concerning the production of the 
beverages. The declaration will be in substantially the following form:

    I, -------- declare that the spirituous beverages 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
    -------- (date), from -------- (name and address of owner or 
exporter in the beneficiary

[[Page 172]]

country or in the U.S. Virgin Islands, as applicable); 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.


------------------------------------------------------------------------
                                                             Alcoholic
                                                            content of
                                       Description of        products;
         Marks and numbers             products and of       alcoholic
                                         processing         content (%)
                                                           attributable
                                                            to rum \1\
------------------------------------------------------------------------
                                    ....................  ..............
                                    ....................  ..............
                                    ....................  ..............
------------------------------------------------------------------------
\1\ The production records must establish, for each lot of beverage
  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 attributable to the qualifying rum. If rum from
  two or more qualifying 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 finished beverage, as
  reflected in the production records.


Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (2) Availability of supporting documents. The information, including 
any supporting documents and records, necessary for the preparation of 
the declaration, 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 
documentary evidence necessary to support the declaration consists of 
those documents and records which satisfactorily establish:
    (i) The receipt of the rum by the Canadian processor, including the 
date of receipt and the name and address of the party from whom the rum 
was received (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 production lot(s) 
involved; the quantity of qualifying rum that is used in producing the 
finished beverage, including a description of the processing and of the 
finished products; 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 attributable to the qualifying rum.
    (g) Importer system for review of necessary recordkeeping. The 
importer will 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 availability 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 finished beverage imported from 
Canada; and
    (4) The direct shipment of the finished beverage from Canada to the 
United States.
    (h) Submission of documents to Customs. The importer must be 
prepared to submit directly to the port director, if requested, those 
documents and/or supporting records as described in paragraphs (d), (e) 
and (f) of this section, for a period of 5 years from the date of entry 
of the related spirituous beverages under section 213(a)(6) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(a)(6)), as 
provided in Sec. 163.4(a) of this chapter. If requested, the importer 
must submit such documents and/or supporting records to the port 
director within 60 calendar days of the date of the request or such 
additional 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 appear at T.D. 98-76, 63 FR 
51292, Sept. 25, 1998, unless otherwise noted.



Sec. 10.201  Applicability.

    Title II of Pub. L. 102-182 (105 Stat. 1233), entitled the Andean 
Trade Preference Act (ATPA) and codified at 19 U.S.C. 3201 through 3206, 
authorizes the President to proclaim duty-free treatment for all 
eligible articles from any

[[Page 173]]

beneficiary country and to designate countries as beneficiary countries. 
The provisions of Sec. Sec. 10.202 through 10.207 set forth the legal 
requirements and procedures that apply for purposes of obtaining that 
duty-free treatment for certain articles from a beneficiary country 
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 
preferential treatment of apparel and other textile articles under the 
ATPA are contained in Sec. Sec. 10.241 through 10.248, and provisions 
regarding preferential treatment of tuna and certain other non-textile 
articles under the ATPA are contained in Sec. Sec. 10.251 through 
10.257.

[T.D. 03-16, 68 FR 14486, Mar. 25, 2003; 68 FR 67338, Dec. 1, 2003]



Sec. 10.202  Definitions.

    The following definitions apply for purposes of Sec. Sec. 10.201 
through 10.207:
    (a) Beneficiary country. Except as otherwise provided in Sec. 
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 designating such country or successor 
political entity as a beneficiary country in accordance with section 203 
of the ATPA (19 U.S.C. 3202).
    (b) Eligible articles. The term ``eligible'' when used with 
reference to an article means merchandise which is imported directly 
from a beneficiary country as provided in Sec. 10.204, which meets the 
country of origin criteria set forth in Sec. 10.205 and the value-
content requirement set forth in Sec. 10.206, and which, if the 
requirements of Sec. 10.207 are met, is therefore entitled to duty-free 
treatment under the ATPA. However, the following merchandise shall not 
be considered eligible articles entitled 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 Sec. Sec. 10.241 through 
10.248;
    (2) Rum and tafia classified in subheading 2208.40, Harmonized 
Tariff Schedule of the United States;
    (3) Sugars, syrups, and sugar-containing 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 as otherwise provided in Sec. Sec. 10.251 through 10.257.
    (c) Entered. The term ``entered'' means entered, or withdrawn from 
warehouse for consumption, in the customs territory of the United 
States.
    (d) Wholly the growth, product, or manufacture of a beneficiary 
country. The expression ``wholly the growth, product, or manufacture of 
a beneficiary country'' has the same meaning as that set forth in Sec. 
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]



Sec. 10.203  Eligibility criteria in general.

    An article classifiable under a subheading 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 parentheses is eligible for duty-free treatment, and will be 
accorded such treatment, if each of the following requirements is met:
    (a) Imported directly. The article is imported directly from a 
beneficiary country as provided in Sec. 10.204.
    (b) Country of origin criteria. The article complies with the 
country of origin criteria set forth in Sec. 10.205.
    (c) Value content requirement. The article complies with the value 
content requirement set forth in Sec. 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 Sec. 10.207.



Sec. 10.204  Imported directly.

    In order to be eligible for duty-free treatment under the ATPA, an 
article shall be imported directly from a beneficiary country into the 
customs territory of the United States. For purposes

[[Page 174]]

of this requirement, the words ``imported directly'' mean:
    (a) Direct shipment from any beneficiary 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-beneficiary country, the articles in 
the shipment did not enter into the commerce 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-beneficiary 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 imported 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 original 
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 activities necessary to 
preserve the articles in good condition.



Sec. 10.205  Country of origin criteria.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an article may be eligible for duty-free treatment under the 
ATPA if the article is either:
    (1) Wholly the growth, product, or manufacture of a beneficiary 
country; or
    (2) A new or different article of commerce which has been grown, 
produced, or manufactured in a beneficiary country.
    (b) Exceptions. No article shall be eligible for duty-free treatment 
under the ATPA by virtue of having merely undergone simple (as opposed 
to complex or meaningful) combining or packaging operations, or mere 
dilution with water or mere dilution with another substance that does 
not materially alter the characteristics of the article. The principles 
and examples set forth in Sec. 10.195(a)(2) of this part shall apply 
equally for purposes of this paragraph.



Sec. 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 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 entered.
    (b) Commonwealth of Puerto Rico, U.S. Virgin Islands and CBI 
beneficiary countries. 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 defined in Sec. 
10.191(b)(1) of this part. Any cost or value of materials or direct 
costs of processing operations attributable to the Virgin Islands or any 
CBI beneficiary country must be included in the article prior to its 
final exportation to the United States from a beneficiary country as 
defined in Sec. 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 exceed 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 
paragraph (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) ``Materials produced in a 
beneficiary country or countries'' defined. For purposes of paragraph 
(a) of this section, the words

[[Page 175]]

materials produced in a beneficiary country or countries refer to those 
materials incorporated in an article which are either:
    (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 different article of commerce 
which is then used in any beneficiary country as defined in Sec. 
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 transformed into a new or different article of commerce by 
virtue of having merely undergone simple (as opposed to complex or 
meaningful) combining or packaging operations, or mere dilution with 
water or mere dilution with another substance that does not materially 
alter the characteristics of the article. The examples set forth in 
Sec. 10.196(a) of this part, and the principles and examples set forth 
in Sec. 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 origin of a material either is not 
ascertainable or is not satisfactorily demonstrated to the appropriate 
port director, the material shall not be considered 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 materials produced in a beneficiary country or countries or in 
the customs territory of the United States includes:
    (A) The manufacturer's actual cost for the materials;
    (B) When not included in the manufacturer'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 spoilage, less the value of 
recoverable scrap; and
    (D) Taxes and/or duties imposed on the materials by any beneficiary 
country or by the United States, provided they are not remitted upon 
exportation.
    (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 computing the sum of:
    (A) All expenses incurred in the growth, production, or manufacture 
of the material, including general expenses;
    (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 appraising officer may 
ascertain or estimate the value thereof using all reasonable ways and 
means at his disposal.
    (e) Direct costs of processing operations--(1) Items included. For 
purposes of paragraph (a) of this section, 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 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 merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (ii) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (iii) Research, development, design, engineering, and blueprint 
costs insofar 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''

[[Page 176]]

do not include items which are not directly attributable to the 
merchandise under consideration or are not costs of manufacturing the 
product. These include, but are not limited to:
    (i) Profit; and
    (ii) General expenses of doing business which either are not 
allocable to the specific merchandise or are not related to the growth, 
production, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, 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 Sec. 10.202(a), and 
any article produced or manufactured in a beneficiary country as defined 
in Sec. 10.202(a) exclusively from materials which are wholly the 
growth, product, or manufacture of a beneficiary country or countries, 
shall normally be presumed to meet the requirement set forth in 
paragraph (a) of this section.



Sec. 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 subheading number applicable to each article 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 involving 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 Sec. 10.202(a), the exporter or other appropriate 
party having knowledge of the relevant facts in the beneficiary country 
as defined in Sec. 10.202(a) where the article was produced or last 
processed shall be prepared to submit directly to the port director, 
upon request, a declaration setting forth all pertinent detailed 
information concerning the production or manufacture of the article. 
When requested by the port director, the declaration shall be prepared 
in substantially the following form:

                            ATPA DECLARATION

    I, ------------ (name), hereby declare that the articles described 
below (a) were produced or manufactured in ------------ (country) by 
means of processing operations performed in that country as set forth 
below and were also subjected to processing operations 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 Commonwealth of Puerto Rico) as set forth below:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Processing operations performed on articles    Material produced in a beneficiary country
                                                            -----------------------------------------------                or in the U.S.
                                                                                                           ---------------------------------------------
    Number and date of invoices          Description of          Description of                                 Description of
                                      articles and quantity   processing operations     Direct costs of      material, production     Cost or value of
                                                                 and country of      processing operations   process, and country         material
                                                                   processing                                   of production
 
--------------------------------------------------------------------------------------------------------------------------------------------------------

Date____________________________________________________________________
Address_________________________________________________________________
Signature_______________________________________________________________
Title___________________________________________________________________

    (ii) Retention of records and submission of declaration. The 
information necessary for the preparation of the declaration shall be 
retained in the files of the party responsible for its preparation and 
submission for a period of 5

[[Page 177]]

years. In the event that the port director requests submission of the 
declaration 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. Failure to submit the declaration in a 
timely fashion will result in a denial of duty-free treatment.
    (iii) Value added after final exportation. 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 Sec. 10.202(a), in order to ensure compliance 
with the value requirement under Sec. 10.206(a), the declaration 
provided for in paragraph (b)(1)(i) of this section shall be filed by 
the importer or consignee 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, product, or manufacture of a single beneficiary 
country as defined in Sec. 10.202(a), a statement to that effect shall 
be included on the commercial invoice provided 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 paragraph (b)(1)(i) of this section will not be 
required, in a case involving a shipment 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 require that appropriate shipping papers, 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 Sec. 10.204.
    (2) Waiver. The port director may waive the submission of evidence 
of direct importation when otherwise satisfied, taking into 
consideration the kind and value of the merchandise, that the 
merchandise was, in fact, imported directly 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 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.



Sec. 10.211  Applicability.

    Title I of Public Law 106-200 (114 Stat. 251), entitled the African 
Growth and Opportunity Act (AGOA), authorizes 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 provisions of Sec. Sec. 10.211-10.217 of 
this part set forth the legal requirements and procedures that apply for 
purposes of obtaining preferential treatment pursuant to section 112.



Sec. 10.212  Definitions.

    When used in Sec. Sec. 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

[[Page 178]]

the context of a textile or apparel article has reference to a joining 
together of two or more components that occurred in one or more 
beneficiary countries, whether or not a prior joining operation 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 country 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 countries. ``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 country other than the United States 
or a beneficiary country.
    HTSUS. ``HTSUS'' means the Harmonized 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 article, 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 determination of whether an apparel 
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 containing a self-
start edge. Minor cutting or trimming will not affect the determination 
of whether a component is ``knit-to-shape.''
    Major parts. ``Major parts'' means integral 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 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Originating. ``Originating'' means having the country of origin 
determined by application of the provisions of Sec. 102.21 of this 
chapter.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative limitations 
as provided 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 beneficiary 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 components) 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 production 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, entangling or other process, took 
place in the United States or in one or more beneficiary countries.
    Wholly formed on seamless knitting machines. ``Wholly formed on 
seamless knitting machines,'' when used to describe 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 article. 
When taken from the knitting machine, an apparel article created by this 
process either is in its final form

[[Page 179]]

or requires only minor cutting or trimming or the addition of minor 
components 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 including 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]



Sec. 10.213  Articles eligible for preferential treatment.

    (a) General. The preferential treatment referred to in Sec. 10.211 
applies to the following textile and apparel articles 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 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 beneficiary 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 classifiable under heading 5602 or 5603 of 
the HTSUS and are wholly formed in the United States).
    (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 
countries, or apparel articles wholly formed on seamless knitting 
machines in a beneficiary country from yarns originating either in the 
United States or in one or more beneficiary countries, subject to the 
applicable quantitative limit published in the Federal Register pursuant 
to U.S. Note 2, Subchapter XIX, Chapter 98, HTSUS;
    (5) Apparel articles wholly assembled, or knit-to-shape and wholly 
assembled, or both, in one or more lesser developed beneficiary 
countries regardless of the country of origin of the fabric or the yarn 
used to make the articles, subject to the applicable quantitative limit 
published in the Federal Register pursuant to U.S. Note 2, Subchapter 
XIX, Chapter 98, HTSUS;
    (6) Sweaters, in chief weight of cashmere, 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-

[[Page 180]]

shape in one or more beneficiary countries;
    (8) Apparel articles, other than brassieres 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 apparel articles of those fabrics or yarn would 
be considered an originating good under General Note 12(t), HTSUS, if 
the apparel articles had been imported directly from Canada or Mexico;
    (9) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more beneficiary 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 
country or countries that is certified as a handloomed, handmade, or 
folklore article by the competent authority of the beneficiary country 
or countries, provided that the President or his designee has determined 
that the article in question will be treated as being a handloomed, 
handmade, or folklore article.
    (11) Apparel articles sewn or otherwise assembled in one or more 
beneficiary countries with thread formed in the United States:
    (i) From components cut in the United States and in one or more 
beneficiary countries from fabric 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 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 paragraph (a)(11)(i) or 
paragraph (a)(11)(ii) of this section.
    (b) Special rules for certain component materials--(1) General. An 
article otherwise described under paragraph (a) of this section will not 
be ineligible for the preferential treatment referred to in Sec. 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 percent 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;
    (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 ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve header,'' 
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 interlinings of foreign origin, if the total value of those findings 
and trimmings and interlinings does not exceed 25 percent 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 interlinings referred to in 
paragraph (b)(1) of this section means:
    (i) The price of the components, findings and trimmings, or 
interlinings when last purchased, f.o.b. port of exportation, as set out 
in the invoice or other commercial 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 adjusted to arrive at an f.o.b. port of exportation price; or
    (B) If no exportation to a beneficiary country is involved, the 
price as set out in the invoice or other commercial

[[Page 181]]

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 unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, or 
other processing of the components, findings and trimmings, or 
interlinings, including the cost or value of materials and general 
expenses, plus a reasonable amount for profit, and the freight, 
insurance, packing, 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 countries 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 purposes of paragraph (a) of this 
section, the words ``imported directly'' mean:
    (1) Direct shipment from any beneficiary country to the United 
States without passing through the territory of any non-beneficiary 
country;
    (2) If the shipment is from any beneficiary country to the United 
States through the territory of any non-beneficiary country, the 
articles in the shipment do not enter into the commerce 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 beneficiary country to the United 
States through the territory of any non-beneficiary country, and the 
invoices and other documents do not show the United States as the final 
destination, the articles in the shipment upon arrival 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 original 
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]



Sec. 10.214  Certificate of Origin.

    (a) General. A Certificate of Origin must be employed to certify 
that a textile or apparel article being exported from a beneficiary 
country to the United States qualifies for the preferential treatment 
referred to in Sec. 10.211. The Certificate of Origin must be prepared 
by the exporter in the beneficiary country in the form specified in 
paragraph (b) of this section. Where the beneficiary country exporter is 
not the producer of the article, that exporter may complete and sign a 
Certificate of Origin on the basis of:
    (1) Its reasonable reliance on the producer's written representation 
that the article qualifies for preferential treatment; or
    (2) A completed and signed Certificate of Origin for the article 
voluntarily 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:

[[Page 182]]

[GRAPHIC] [TIFF OMITTED] TR21MR03.001

    (c) Preparation of Certificate. The following 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 treatment 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)

[[Page 183]]

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 Customs 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 according to the 
description contained in the CFR provision cited on the Certificate for 
that group;
    (6) Block 5 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice description 
and to the description of the article in the international 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 completed 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 
identifier ``8'' and/or ``H'' is inserted in block 4 and should state 
the name of the fabric or yarn that is in short supply in the NAFTA or 
that has been designated as not available in commercial quantities in 
the United States;
    (13) Block 11 must contain the signature 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 articles as described in block 5 
that are imported into the United States during a specified period of up 
to one year (see Sec. 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, attach 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]



Sec. 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 Sec. 10.213, 
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 classified will constitute the written declaration. 
Except in any of the circumstances described in Sec. 10.216(d)(1), the 
declaration required under this paragraph must be based on an original 
Certificate of Origin that has been completed and properly executed in 
accordance with Sec. 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 importer has reason to believe 
that a Certificate of Origin on which a declaration was based contains 
information that is not correct, the importer must within 30 calendar 
days after the date

[[Page 184]]

of discovery of the error make a corrected declaration and pay any 
duties that may be due. A corrected declaration will be effected by 
submission of a letter or other written statement to the Customs port 
where the declaration 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]



Sec. 10.216  Maintenance of records and submission of Certificate by importer.

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec. 10.215 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 Certificate of Origin referred to in Sec. 
10.215(a) and any other relevant documents or other records as specified 
in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on a textile or apparel article under Sec. 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 submitted 
to Customs under this paragraph:
    (1) Must be in writing or must be transmitted electronically 
pursuant to any electronic data interchange system authorized by Customs 
for that purpose;
    (2) Must be signed by the exporter or by the 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 completed 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 single 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 identical 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 Sec. 10.214(c)(15), ``identical articles'' means articles 
that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate 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 Certificate 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, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

    I hereby certify that the article covered by this shipment qualifies 
for preferential treatment under the AGOA.

Check One:
    ( ) Producer
    ( ) Exporter
    ( ) Importer
    ( ) Agent

________________________________________________________________________

[[Page 185]]

Name
________________________________________________________________________
Title
________________________________________________________________________
Address
________________________________________________________________________
Signature and Date

    (2) Exception. If the port director determines 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 Origin 
requirement under Sec. Sec. 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 Certificate 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 failure to timely obtain the Certificate of 
Origin will result in denial of the claim for preferential treatment. 
For purposes of this paragraph, a ``series of importations'' means two 
or more entries covering articles arriving on the same day from the same 
exporter and consigned 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]



Sec. 10.217  Verification and justification of claim for preferential treatment.

    (a) Verification by Customs. A claim for preferential treatment made 
under Sec. 10.215, including any statements or other information 
contained on a Certificate of Origin submitted to Customs under Sec. 
10.216, will be subject to whatever verification the port director deems 
necessary. In the event that the port director for any reason is 
prevented 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 information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, information relating 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 
treatment under Sec. 10.215, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion 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 described in one of the provisions 
under Sec. 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 importer must have records that identify the U.S. 
producer of the fabric or yarn. A properly completed Certificate of 
Origin in the form set forth in Sec. 10.214(b) is a record that would 
serve these purposes;
    (2) Must establish and implement internal 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 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 Sec. 
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

[[Page 186]]

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-Caribbean 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.



Sec. 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 additional 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 apparel 
articles from CBERA beneficiary countries. The provisions of Sec. Sec. 
10.221-10.227 of this part set forth the legal requirements 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]



Sec. 10.222  Definitions.

    When used in Sec. Sec. 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 beneficiary countries. ``Assembled in 
one or more CBTPA beneficiary countries'' when used in the context of a 
textile or apparel article has reference to a joining together of two or 
more components 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 Caribbean Basin Economic Recovery Act, 19 
U.S.C. 2701-2707.
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated 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 beneficiary countries.
    Foreign. ``Foreign'' means of a country other than the United States 
or a CBTPA beneficiary country.
    HTSUS. ``HTSUS'' means the Harmonized 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 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 consideration being given 
to patch pockets, appliques, 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.''
    Luggage. ``Luggage'' means travel goods (such as trunks, hand 
trunks, lockers, valises, satchels, suitcases, wardrobe cases, overnight 
bags, pullman 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

[[Page 187]]

cases, binocular cases, gun cases, occupational 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 articles, by whatever name known, customarily 
carried by women or girls). The term ``luggage'' also does not include 
flat goods (that is, small flatware designed to be carried on the 
person, such as banknote cases, bill cases, billfolds, bill purses, bill 
rolls, card cases, change cases, cigarette cases, coin purses, coin 
holders, compacts, currency cases, key cases, letter cases, license 
cases, money cases, pass cases, passport cases, powder cases, spectacle 
cases, stamp cases, vanity cases, tobacco pouches, and similar 
articles).
    Made in one or more CBTPA beneficiary 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 wholly assembled in one or more CBTPA beneficiary countries.
    Major parts. ``Major parts'' means integral 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 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative 
restrictions, limitations, or consultation levels as provided in 19 
U.S.C. 2703(b)(2).
    Wholly assembled in one or more CBTPA beneficiary countries. 
``Wholly assembled in one or more CBTPA beneficiary countries'' when 
used in the context of a textile or apparel article has reference to a 
joining together of all components (including thread, decorative 
embellishments, buttons, zippers, or similar components) that occurred 
only in one or more CBTPA beneficiary countries.
    Wholly formed. ``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 including 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, and, 
when used with reference to fabric(s), means that all of the production 
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, entangling 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]



Sec. 10.223  Articles eligible for preferential treatment.

    (a) General. The preferential treatment referred to in Sec. 10.221 
applies to the following textile and apparel articles 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 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, and provided that any other 
processing involving the article conforms to the rules set forth in 
paragraph (b) of this section;
    (2) Apparel articles sewn or otherwise assembled in one or more 
CBTPA 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

[[Page 188]]

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 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 provided that any other processing involving the article 
conforms to the rules set forth in paragraph (b) of this section;
    (3) Apparel articles sewn or otherwise assembled in one or more 
CBTPA beneficiary countries with thread formed in the United States from 
fabrics wholly formed in the United States and cut in one or more CBTPA 
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 classifiable under heading 5602 or 5603 of 
the HTSUS and are wholly 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;
    (4) Apparel articles (other than socks provided for in heading 6115 
of the HTSUS) knit to shape in a CBTPA beneficiary country from yarns 
wholly formed in the United States, and knitted or crocheted apparel 
articles (other than non-underwear t-shirts classifiable 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 fabrics formed in one or more 
CBTPA beneficiary 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 beneficiary countries);
    (5) Non-underwear t-shirts, classifiable 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 subheading 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 articles 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 Sec. 10.228 
are met;
    (7) Apparel articles, other than articles described in paragraph 
(a)(6) of this section, that are both cut (or knit-to-shape) and sewn or 
otherwise assembled 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 countries, to the extent that apparel articles of 
those fabrics or yarn would be eligible for preferential treatment, 
without regard to the source of the fabrics or yarn, under Annex 401 of 
the NAFTA;
    (8) Apparel articles that are both cut (or knit-to-shape) and sewn 
or otherwise assembled in one or more CBTPA beneficiary 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;
    (9) A handloomed, handmade, or folklore textile or apparel article 
of a CBTPA beneficiary country that the President or his designee and 
representatives of the CBTPA beneficiary country mutually agree is a 
handloomed, handmade, or folklore article and that is certified as a 
handloomed, handmade, or folklore article 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

[[Page 189]]

from fabric wholly formed in the United States from yarns wholly formed 
in the United States;
    (12) Knitted or crocheted apparel articles cut and assembled in one 
or more CBTPA beneficiary countries from fabrics 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 fabrics 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 otherwise 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 fabric 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 paragraph (a)(13)(i) or 
paragraph (a)(13)(ii) of this section; and
    (iv) Provided that any processing not described in this paragraph 
(a)(13) conforms to the rules set forth in paragraph (b) of this 
section.
    (b) Dyeing, printing, finishing and other operations--(1) Dyeing, 
printing and finishing operations. Dyeing, printing, 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, provided 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 following 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 dyeing, printing, or finishing 
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)(10) 
of this section, an operation may be performed in a CBTPA beneficiary 
country only if that operation is incidental to the assembly process 
within the meaning of Sec. 10.16.
    (2) Other operations. An article described under paragraph (a) of 
this section that is otherwise eligible for preferential treatment will 
not be disqualified 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 operation may be 
performed in a CBTPA 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 Sec. 10.16.
    (c) Special rules for certain component materials--(1) Foreign 
findings, trimmings, 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 Sec. 10.221 
because the article contains:
    (A) Findings and trimmings of foreign origin, if the value of those 
findings and trimmings does not exceed 25

[[Page 190]]

percent 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) 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 ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve header,'' 
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 
interlinings of foreign origin, if the total value of those findings and 
trimmings and interlinings does not exceed 25 percent 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 described in 
paragraph (a)(1) through (a)(5) or (a)(12) of this section containing 
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 interlinings 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 exportation, as set out 
in the invoice 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 adjusted to arrive at an f.o.b. port of exportation price; or
    (2) 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 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 section or if Customs finds that price to be unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, or 
other processing of the components, findings and trimmings, or 
interlinings, including the cost or value of materials and general 
expenses, plus a reasonable amount for profit, and the freight, 
insurance, packing, 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 countries 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 Sec. 10.221 because the article contains nylon filament yarn 
(other than elastomeric 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 treatment referred to in Sec. 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 purposes of paragraph (a) of this 
section, the words ``imported directly'' mean:

[[Page 191]]

    (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 
beneficiary country, the articles in the shipment do not enter into the 
commerce of any country that is not a CBTPA 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 CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, and the invoices and other documents do not show 
the United States as the final destination, the articles in the shipment 
upon arrival 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 original 
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]



Sec. 10.224  Certificate of Origin.

    (a) General. A Certificate of Origin must be employed to certify 
that a textile or apparel article being exported from a CBTPA 
beneficiary country to the United States qualifies for the preferential 
treatment referred to in Sec. 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 section. Where the CBTPA beneficiary 
country exporter is not the producer of the article, that exporter may 
complete and sign a Certificate of Origin on the basis of:
    (1) Its reasonable reliance on the producer's written representation 
that the article qualifies for preferential treatment; or
    (2) A completed and signed Certificate of Origin for the article 
voluntarily 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:

[[Page 192]]

[GRAPHIC] [TIFF OMITTED] TR21MR03.002

    (c) Preparation of Certificate. The following 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 treatment may be claimed;
    (2) Block 1 should state the legal name and address (including 
country) of the exporter;

[[Page 193]]

    (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 Customs 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 provision cited on the Certificate for that group;
    (6) Block 5 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice description 
and to the description of the article in the international 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 completed 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 incorporates 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 supply in the NAFTA or that has been designated as not 
available in commercial quantities in the United States;
    (13) Block 11 must contain the signature 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 articles as described in block 5 
that are imported into the United States during a specified period of up 
to one year (see Sec. 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, attach 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]



Sec. 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 Sec. 10.223, 
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 classified will constitute the written declaration. 
Except in any of the circumstances described in Sec. 10.226(d)(1), the 
declaration required under this paragraph must be based on a Certificate 
of Origin that has been completed and properly executed in accordance 
with Sec. 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 importer has reason to believe 
that a Certificate of Origin on which a declaration 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 corrected 
declaration and pay any duties

[[Page 194]]

that may be due. A corrected declaration will be effected by submission 
of a letter or other written statement to the Customs port where the 
declaration 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]



Sec. 10.226  Maintenance of records and submission of Certificate by importer.

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec. 10.225 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 Certificate of Origin referred to in Sec. 
10.225(a) and any other relevant documents or other records as specified 
in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on a textile or apparel article under Sec. 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 submitted 
to Customs under this paragraph:
    (1) Must be in writing or must be transmitted electronically 
pursuant to any electronic data interchange system authorized by Customs 
for that purpose;
    (2) Must be signed by the exporter or by the 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 completed 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 single 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 identical 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 Sec. 10.224(c)(15), ``identical articles'' means articles 
that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate 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 Certificate 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, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

    I hereby certify that the article covered by this shipment qualifies 
for preferential treatment under the CBTPA.
    Check One:

( ) Producer
( ) Exporter
( ) Importer
( ) Agent

________________________________________________________________________
Name

________________________________________________________________________

[[Page 195]]

Title

________________________________________________________________________
Address

________________________________________________________________________
Signature and Date

    (2) Exception. If the port director determines 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 Origin 
requirement under Sec. Sec. 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 Certificate 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 failure to timely obtain the Certificate of 
Origin will result in denial of the claim for preferential treatment. 
For purposes of this paragraph, a ``series of importations'' means two 
or more entries covering articles arriving on the same day from the same 
exporter and consigned 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]



Sec. 10.227  Verification and justification of claim for preferential treatment.

    (a) Verification by Customs. A claim for preferential treatment made 
under Sec. 10.225, including any statements or other information 
contained on a Certificate of Origin submitted to Customs under Sec. 
10.226, will be subject to whatever verification the port director deems 
necessary. In the event that the port director for any reason is 
prevented 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 information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, information relating 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 
treatment under Sec. 10.225, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion 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 described in one of the provisions 
under Sec. 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 completed Certificate of Origin in the form 
set forth in Sec. 10.224(b) is a record that would serve these 
purposes;
    (2) Must establish and implement internal 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 Sec. 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

[[Page 196]]

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]



Sec. 10.228  Additional requirements for preferential treatment of brassieres.

    (a) Definitions. When used in this section, the following terms have 
the meanings indicated:
    (1) Producer. ``Producer'' means an individual, corporation, 
partnership, association, or other entity or group that exercises 
direct, daily operational control over the production process in a CBTPA 
beneficiary country.
    (2) Entity controlling production. ``Entity controlling production'' 
means an individual, corporation, partnership, association, or other 
entity or group that is not a producer and that controls the production 
process in a CBTPA beneficiary country through a contractual 
relationship or other indirect 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 reference 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 commercial 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 adjusted to arrive at an f.o.b. port of exportation 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 fabrics to the place of production if included 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 unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, 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 expenses, plus a reasonable amount for 
profit, and the freight, insurance, packing, 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 reference to fabric contained in an article means the sum of:
    (i) The cost of fabrics formed in the United States that the 
producer or entity controlling production can verify; and
    (ii) The cost of all other fabric contained 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 production, the f.o.b. port of exportation price of the 
fabric as set out in the invoice 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 adjusted to arrive at an f.o.b. port of exportation price, 
plus expenses for embroidering and dyeing, printing, and finishing 
operations applied to the fabric if not included in that price; or
    (2) If no exportation to a CBTPA 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 transporting 
the fabric to the place of production if included in that price;
    (B) In the case of fabric for which the cost cannot be determined 
under paragraph (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 embroidering and dyeing, printing, and

[[Page 197]]

finishing expenses, plus a reasonable amount for profit, and the 
freight, insurance, 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 materials, and less 
expenses for cutting or other processing to create the fabric components 
other than knitting to shape, that the producer or entity controlling 
production can verify, 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 adjusted to arrive at an f.o.b. port of exportation price, 
less the cost or value of any non-textile materials, and less expenses 
for cutting or other processing to create the fabric components other 
than knitting to shape, that the producer or entity controlling 
production can verify; or
    (2) If no exportation to a CBTPA 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 processing to create the fabric components other than 
knitting to shape, that the producer or entity controlling production 
can verify, and less the freight, insurance, packing, and other costs 
incurred in transporting the fabric components 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 determined under paragraph (a)(5)(ii)(C) 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 components, 
including the cost or value of materials (which does not include the 
cost of recoverable scrap generated in the growth, production, or 
manufacture of the fabric components) and general expenses, but 
excluding the cost or value of any non-textile materials, and excluding 
expenses for cutting or other processing to create the fabric components 
other than knitting to shape, that the producer or entity controlling 
production can verify, plus a reasonable 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 ending on September 30 but does not include any 12-month period that 
began prior to October 1, 2000.
    (7) Entered. ``Entered'' means entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States.
    (b) Limitations on preferential treatment--(1) General. During the 
year that begins on October 1, 2002, and during any subsequent year, 
articles of a producer or an entity controlling production that conform 
to the production standards set forth in Sec. 10.223(a)(6) will be 
eligible for preferential treatment only if:
    (i) The aggregate cost of fabrics (exclusive 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 Sec. 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 trimmings) contained in all of those articles of that 
producer or that entity controlling production that are entered as 
articles described in Sec. 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 articles of that producer or that entity controlling 
production were not eligible 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 
production of all of those articles of that producer or that entity 
controlling production that conform to the production standards set 
forth in Sec. 10.223(a)(6) and that were entered during the immediately 
preceding year was at least 85

[[Page 198]]

percent of the aggregate declared customs 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 standards set forth in Sec. 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 Sec. 10.225, the importer records on the entry summary 
or warehouse withdrawal for consumption (CBP Form 7501, column 34), or 
its electronic equivalent, the distinct and unique identifier assigned 
by CBP to the applicable 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 purposes of preparing 
and filing the documentation 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 Sec. 10.223(a)(6) and the articles 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 specified 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 Sec. 
10.223(a)(6) are not to be considered in determining compliance with the 
75 percent standard specified in paragraph (b)(1)(i) of this section;
    (D) For purposes of determining compliance 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 Sec. 10.223(a)(6) 
must be considered, regardless 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 preferential treatment in a given year, a producer of, or entity 
controlling production 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 
paragraph (b)(1)(i) of this section during a year, articles of that 
producer or entity controlling production:
    (1) Will not be eligible for preferential treatment during the 
following year;
    (2) Will remain ineligible for preferential treatment until the year 
that follows a year in which articles of that producer or entity 
controlling production met the 85 percent standard specified in 
paragraph (b)(1)(ii) of this section; and
    (3) After the 85 percent standard specified in paragraph (b)(1)(ii) 
of this section has been met, will again be subject to the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
following year for purposes of determining eligibility for preferential 
treatment in the next year.
    (G) A new producer or new entity controlling production, that is, a 
producer or entity controlling production which did not produce or 
control production of articles that were entered as articles described 
in Sec. 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 prerequisite to preparation of the 
declaration of compliance referred to in paragraph (c) of this section;
    (H) A declaration of compliance prepared by a producer or by an 
entity controlling production must cover all production of that producer 
or all production that the entity controls for the year in question;
    (I) A producer is not required to prepare a declaration of 
compliance if all of its production is covered by a declaration of 
compliance prepared by an entity controlling production;

[[Page 199]]

    (J) In the case of a producer, the 75 or 85 percent standard 
specified in paragraph (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 question, 
even if some but not all of that production is also covered by a 
declaration of compliance prepared by an entity controlling production;
    (K) The U.S. importer does not have to be the producer or the entity 
controlling production who prepared the declaration of compliance; and
    (L) The exclusion references regarding findings and trimmings in 
paragraph (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 principles set forth in paragraph (b)(2)(i) of this section.

    Example 1. A CBTPA beneficiary country producer of articles that 
meet the production standards specified in Sec. 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 Sec. 
10.223(a)(6); one of those shipments is entered under the HTSUS 
subheading that covers articles described in Sec. 10.223(a)(6), the 
second shipment is entered under the HTSUS subheading that covers 
articles described in Sec. 10.223(a)(12), and the third shipment is 
entered under subheading 9802.00.80, HTSUS. In determining whether the 
minimum 75 percent standard has been met in the first year for purposes 
of entry of articles under the HTSUS subheading that covers articles 
described in Sec. 10.223(a)(6) during the following (that is, second) 
year, consideration must be restricted to the articles in the first 
shipment and therefore must not include the articles 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 Sec. 
10.223(a)(6); some of those articles are entered 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 Sec. 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 
aggregate for all of the articles entered in the second year, in the 
next (that is, third) year articles of that producer may receive 
preferential treatment under the HTSUS subheading which pertains to 
articles described in Sec. 10.223(a)(6).
    Example 4. An entity controlling production of articles that meet 
the description in Sec. 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. Notwithstanding the fact that some 
of the articles ultimately ended up in Canada or Mexico, 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 consumption.
    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 following 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 produced 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 Sec. 10.223(a)(6) and that are then shipped to the United 
States and entered during that same year. In determining whether the 
entered 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 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

[[Page 200]]

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 Sec. 10.223(a)(6) is sent to a 
U.S. importer in two separate shipments, one in February and the other 
in June of the same calendar year; the articles shipped in February do 
not meet the minimum 75 percent standard, the articles shipped in June 
exceed the 85 percent standard, and the articles in the two shipments, 
taken together, do meet the 75 percent standard; the articles covered by 
the February shipment are entered for consumption on March 1 of that 
calendar year, and the articles covered by the June shipment are placed 
in a CBP bonded warehouse upon arrival 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 articles in the first shipment because those 
articles 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 compliance since they were entered in a 
different year. However, the CBTPA beneficiary country 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 Sec. 10.223(a)(6), but the entered articles do 
not meet the requisite 85 percent standard until the third year; the 
entered 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 during 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 immediately 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 standard was not met in the 
immediately preceding (that is, fourth) year. The producer's articles 
may not receive preferential treatment 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 preceding (that is, 
sixth) year, and during that seventh year the 75 percent standard is 
applicable for purposes of determining whether the producer's articles 
are eligible for preferential treatment in the following (that is, 
eighth) year.
    Example 8. An entity controlling production (Entity A) uses five 
CBTPA beneficiary country producers (Producers 1-5), all of which 
produce only articles that meet the description in Sec. 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 Entity A, but Producer 4 also operates independently 
of Entity A by producing for several 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 Entity A must cover all of the articles of Producers 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 entity 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 independently for other U.S. importers; a declaration 
of compliance prepared by Entity B must cover that portion of the 
production of Producer 4 that it controls as well as all of the 
production of Producer 6 because Entity B also controls all of the 
production of Producer 6. Producer 6 would not prepare a declaration of 
compliance because all of its production is covered by the declaration 
of compliance prepared by Entity B.

    (c) Documentation--(1) Initial declaration of compliance. In order 
for an importer to comply with the requirement set forth in paragraph 
(b)(1)(iii) of this section, the producer or the entity controlling 
production must have filed with CBP, in accordance with paragraph (c)(4) 
of this section, a declaration of compliance with the applicable

[[Page 201]]

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 responsible for advising each appropriate U.S. 
importer of that distinct and unique identifier for purposes of 
recording that identifier on the entry summary or warehouse withdrawal. 
In order to provide sufficient time for advising the U.S. importer of 
that distinct and unique identifier prior to the arrival of the articles 
in the United States, the producer or the entity controlling production 
should file the declaration 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 estimate because final year-end information was 
not available at that time and the final data differs from the estimate, 
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 available or within 30 calendar days 
after the date of discovery of the error:
    (i) The producer or the entity controlling production must file with 
the CBP office identified in paragraph (c)(4) of this section an amended 
declaration of compliance containing that final year-end information or 
other corrected information; or
    (ii) If that final year-end information or other corrected 
information demonstrates noncompliance with the applicable 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 appropriate 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,   Official U.S. Customs and Border
 ------.
 Year ending date: September 30,     Protection Use Only
 ------.
                                     Assigned number: ----------
                                     Assignment date: ----------
2. Identity of preparer (producer or entity controlling production):
 Full name and address:              Telephone number: ----------
                                     Facsimile number: ----------
                                     Importer identification number: ----
                                      ------
3. If the preparer is an entity controlling production, provide the
 following for each producer:
 Full name and address:              Telephone number: ----------
                                     Facsimile number: ----------
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: ----------
5. Aggregate declared customs value of the fabric (exclusive of all
 findings and trimmings) contained in brassieres that were entered
 during the year: ----------
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):
------------------
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 commencing October 1 and ending 
September 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;

[[Page 202]]

    (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 Sec. 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 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 articles 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 knowledge of the relevant facts 
and the date must be the date on which the declaration 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 covered by the declaration 
were produced. If the declaration is completed in a language other than 
English, the producer or the entity controlling production 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 compliance--(1) Verification 
procedure. A declaration 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 statements made on a 
declaration of compliance, CBP may deny any claim for preferential 
treatment made under Sec. 10.225 that is based on that declaration. 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 controlling production, or any 
other person under part 163 of this chapter;
    (ii) Documentation and other information regarding all articles that 
meet the production standards specified in Sec. 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 Sec. 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 shipping 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 shipping documents, and customs import and clearance 
documents, work orders and other production records, and inventory 
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, invoices and bills of 
lading will be accomplished through the review of a distinct audit 
trail. The audit trail documents must consist of a cash disbursement 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 producer or entity 
controlling production. The inventory records must reflect the 
production of the finished article which must be referenced to the 
original purchase order or lot number covering the fabric used in 
production. In the inventory production records, the inventory

[[Page 203]]

should show the opening balance of the inventory plus the purchases made 
during the accounting period and the inventory closing balance.
    (2) Notice of determination. If, based on a verification of a 
declaration of compliance 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.



Sec. 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 additional 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 preferential tariff treatment of certain non-
textile articles that are otherwise excluded from duty-free treatment 
under the CBERA. The provisions of Sec. Sec. 10.231-10.237 of this part 
set forth the legal requirements and procedures that apply for purposes 
of obtaining preferential 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]



Sec. 10.232  Definitions.

    When used in Sec. Sec. 10.231 through 10.237, the following terms 
have the meanings indicated:
    CBERA. ``CBERA'' means the Caribbean Basin Economic Recovery Act, 19 
U.S.C. 2701-2707.
    CBTPA beneficiary country. ``CBTPA beneficiary country'' means a 
``beneficiary country'' as defined in Sec. 10.191(b)(1) for purposes of 
the CBERA which the President also has designated as a beneficiary 
country for purposes of preferential duty treatment of articles under 19 
U.S.C. 2703(b)(3) 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).
    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 Sec. 10.233(b).
    HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the United 
States.
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential tariff treatment. ``Preferential tariff treatment'' 
when used with reference to an imported article means entry, or 
withdrawal from warehouse 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 imported 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]



Sec. 10.233  Articles eligible for preferential tariff treatment.

    (a) General. The preferential tariff treatment referred to in Sec. 
10.231 applies to any of the following articles, provided that the 
article in question is a CBTPA originating good, is imported directly 
into the customs territory of the United States from a CBTPA beneficiary 
country, and is not accorded duty-free treatment under U.S. Note 2(b), 
Subchapter II, Chapter 98, HTSUS (see Sec. 10.26):
    (1) Footwear not designated on August 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;

[[Page 204]]

    (3) Petroleum, or any product derived from petroleum, provided for 
in headings 2709 and 2710 of the HTSUS;
    (4) Watches and watch parts (including cases, bracelets, and 
straps), of whatever type including, but not limited 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 Sec. 
10.198a, except as otherwise provided in paragraph (c) of this section.
    (b) Application of NAFTA rules of origin. In determining whether an 
article is a CBTPA originating good for purposes 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 subject to 
the following rules:
    (1) No country other than the United States and a CBTPA beneficiary 
country 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 
beneficiary 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 combination 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 article 
in question also would otherwise qualify for a reduced rate of duty 
under Sec. 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 article for purposes of preferential tariff treatment 
under this section.
    (d) Imported directly defined. For purposes 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 
beneficiary country, the articles in the shipment do not enter into the 
commerce of any country that is not a CBTPA 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 CBTPA beneficiary country to the 
United States through the territory of any country that is not a CBTPA 
beneficiary country, and the invoices and other documents do not show 
the United States as the final destination, the articles in the shipment 
upon arrival 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 original 
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.



Sec. 10.234  Certificate of Origin.

    A Certificate of Origin as specified in Sec. 10.236 must be 
employed to certify that an article described in Sec. 10.233(a)(1) 
through (5) being exported from a CBTPA beneficiary country to the 
United States qualifies for the preferential tariff treatment referred 
to in Sec. 10.231. The Certificate of Origin must be prepared by the 
exporter in the CBTPA beneficiary country. Where the CBTPA beneficiary 
country exporter is

[[Page 205]]

not the producer of the article, that exporter may complete and sign a 
Certificate of Origin on the basis of:
    (a) Its reasonable reliance on the producer's written representation 
that the article qualifies for preferential tariff treatment; or
    (b) A completed and signed Certificate of Origin for the article 
voluntarily provided to the exporter by the producer.



Sec. 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 Sec. 10.233(a)(1) through (5), 
the importer must make a written declaration that the article qualifies 
for that treatment. The written declaration should be made by including 
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 
Sec. 10.236(d)(1), the declaration required under this paragraph must 
be based on a complete and properly executed original Certificate of 
Origin 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 importer has reason to believe 
that a Certificate of Origin on which a declaration 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 corrected 
declaration and pay any duties that may be due. A corrected declaration 
will be effected by submission of a letter or other written statement to 
the Customs port where the declaration was originally filed.



Sec. 10.236  Maintenance of records and submission of Certificate by importer.

    (a) Maintenance of records. Each importer claiming preferential 
tariff treatment for an article under Sec. 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 Certificate of Origin referred to in 
Sec. 10.235(a) and any other relevant documents or other records as 
specified in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
tariff treatment on an article under Sec. 10.235(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 paragraph:
    (1) Must be on CBP Form 450, including 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 Protection, 
Washington, DC 20229. An alternative 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 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 completed 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 single 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 identical 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 determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period

[[Page 206]]

referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate 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 Certificate of Origin because the 
port director is otherwise satisfied that the article qualifies for 
preferential tariff 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, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

    I hereby certify that the article covered by this shipment qualifies 
for preferential tariff treatment under the CBTPA.

    Check One:
( ) Producer
( ) Exporter
( ) Importer
( ) Agent
________________________________________________________________________
Name
________________________________________________________________________
Title
________________________________________________________________________
Address
________________________________________________________________________
Signature and Date

    (2) Exception. If the port director determines 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 Origin 
requirement under Sec. Sec. 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 Certificate of Origin to 
support the claim for preferential tariff treatment. The importer will 
have 30 calendar days from the date of the written notice to obtain a 
valid Certificate of Origin, and a failure 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 entries covering articles 
arriving on the same day from the same exporter and consigned to the 
same person.



Sec. 10.237  Verification and justification of claim for preferential tariff treatment.

    (a) Verification by Customs. A claim for preferential tariff 
treatment made under Sec. 10.235, including any statements or other 
information contained on a Certificate of Origin submitted to Customs 
under Sec. 10.236, will be subject to whatever verification the port 
director deems necessary. In the event that the port director for any 
reason is prevented 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 information in a CBTPA beneficiary 
country regarding the country of origin of an article and its 
constituent materials, including, but not limited to, production 
records, information relating 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 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 
tariff treatment under Sec. 10.235, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the article qualifies for preferential tariff treatment. 
Those records must include documents that

[[Page 207]]

support a claim that the article in question qualifies for preferential 
tariff treatment because it meets the applicable 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 Sec. 10.236(b) is a record that would serve this purpose;
    (2) Must establish and implement internal 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 Sec. 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 Promotion 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.



Sec. 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 Preference Act (the 
ATPA, 19 U.S.C. 3201-3206) to authorize the President to extend 
additional trade benefits to countries 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 beneficiary countries 
which the President designates as ATPDEA beneficiary countries. The 
provisions of Sec. Sec. 10.241 through 10.248 of this part set forth 
the legal requirements and procedures that apply for purposes of 
obtaining preferential treatment pursuant to ATPA section 204(b)(3) and 
Subchapter XXI, Chapter 98, HTSUS.



Sec. 10.242  Definitions.

    When used in Sec. Sec. 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 assembled 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 reference to a 
joining together of two or more components that occurred in one or more 
ATPDEA beneficiary countries, whether or not a prior joining operation 
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 Sec. 10.202(a) for purposes of 
the ATPA which the President also has designated 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 beneficiary country has satisfied the 
requirements of 19 U.S.C. 3203(b)(5)(A)(ii).
    Chief value. ``Chief value'' when used with reference to llama, 
alpaca, and vicu[ntilde]a means that the value of those materials 
exceeds the value of any

[[Page 208]]

other single textile material in the fabric or component under 
consideration, with the value in each case determined by application of 
the principles set forth in Sec. 10.243(c)(1)(ii).
    Cut in one or more ATPDEA beneficiary countries. ``Cut'' when used 
in the context of production of textile luggage in one or more ATPDEA 
beneficiary countries 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 operation in the United States prior to 
cutting of fabric and assembly of the article in one or more ATPDEA 
beneficiary countries, or both.
    Foreign origin. ``Foreign origin'' means, in the case of a finding 
or trimming 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 
production requirements for yarns, fabrics, and/or components specified 
under Sec. 10.243(a) for the article in which it is incorporated.
    HTSUS. ``HTSUS''means the Harmonized 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, 
containing at least one self-start edge. Minor cutting or trimming will 
not affect 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, pullman 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, occupational 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 articles, by whatever name known, customarily carried by 
women or girls). The term ``luggage'' also does not include flat goods 
(that is, small flatware designed to be carried on the person, such as 
banknote cases, bill cases, billfolds, bill purses, bill rolls, card 
cases, change cases, cigarette cases, coin purses, coin holders, 
compacts, currency cases, key cases, letter cases, license cases, money 
cases, pass cases, passport cases, powder cases, spectacle cases, stamp 
cases, vanity cases, tobacco pouches, and similar articles).
    NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada, and Mexico on December 17, 
1992.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative 
restrictions, limitations, or consultation levels as provided 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. Several 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 
reference to fabric components, means that all of the production 
processes, starting with the production of wholly formed fabric and 
ending with a component 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 production processes, starting with 
polymers, fibers, filaments, textile strips, yarns, twine, cordage, 
rope, or strips of fabric and ending with a fabric by a weaving,

[[Page 209]]

knitting, needling, tufting, felting, entangling 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 including drawing to 
fully orient a filament 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 
beneficiary countries.



Sec. 10.243  Articles eligible for preferential treatment.

    (a) General. Subject to paragraphs (b) and (c) of this section, 
preferential treatment applies to the following apparel and other 
textile articles that are imported directly into the customs territory 
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 classifiable 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 fabrics or from knitted or crocheted or woven wholly 
formed fabric components produced from fabric, all dyeing, printing, and 
finishing of that knitted or crocheted or woven fabric or component 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 countries, 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 countries) or components are in chief 
value of llama, alpaca, and/or vicu[ntilde]a;
    (iii) Fabrics or yarns, provided that apparel articles (except 
articles classifiable 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 President or his designee has 
designated in the Federal Register as fabrics or yarns that cannot be 
supplied by the domestic industry in commercial quantities 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 components, knit-to-
shape components or yarns described in two or more of paragraphs 
(a)(1)(i) through (a)(1)(iv) of this section;
    (3) A handloomed, handmade, or folklore apparel or other textile 
article of an ATPDEA beneficiary country that the President or his 
designee and representatives of the ATPDEA beneficiary country mutually 
agree is a handloomed, handmade, or folklore article and that is 
certified as a handloomed, handmade, or folklore article by the 
competent authority of the ATPDEA beneficiary country;
    (4) Brassieres classifiable under subheading 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 articles described in paragraphs (a)(1) through 
(a)(3) and (a)(7) of this section, and provided that any applicable 
additional requirements set forth in Sec. 10.248 are met;
    (5) Textile luggage assembled in an ATPDEA 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;
    (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

[[Page 210]]

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 (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 
countries), including apparel articles sewn or otherwise assembled 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, printing, 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, provided 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 following 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 component 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 described in paragraph (a)(1)(i) of this section, any 
dyeing, printing, or finishing 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 meaning of Sec. 10.16.
    (2) Other operations. An article described under paragraph (a) of 
this section that is otherwise eligible for preferential treatment will 
not be disqualified 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 operation 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 Sec. 10.16.
    (c) Special rules for certain component materials--(1) Foreign 
findings, trimmings, interlinings, 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 Sec. 10.241 
because the article contains:
    (A) Findings and trimmings of foreign origin, if the value of those 
findings and trimmings does not exceed 25 percent of the cost of the 
components of the assembled article. For purposes of this section 
``findings and trimmings'' 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 ``interlinings'' 
include only a chest type plate, a ``hymo'' piece, or ``sleeve header,'' 
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 
interlinings of foreign origin, if the total value of those findings and 
trimmings

[[Page 211]]

and interlinings does not exceed 25 percent 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 interlinings referred to in 
paragraph (c)(1)(i) of this section means:
    (A) The ex-factory price of the components, 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 commercial 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 section or if CBP finds that price to be unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, or 
other processing of the components, findings and trimmings, or 
interlinings, including the cost or value of materials and general 
expenses, 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 ineligible for the preferential treatment 
referred to in Sec. 10.241 because the article contains nylon filament 
yarn (other than elastomeric yarn) that is classifiable 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 entered free of duty from Canada, Mexico, or Israel.
    (d) Imported directly defined. For purposes 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 
commerce of any country that is not an ATPDEA 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 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 arrival 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 original 
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.



Sec. 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 Sec. 10.241. The Certificate of Origin must be 
prepared in the ATPDEA beneficiary country by the producer or exporter 
or by the producer's or exporter's authorized agent in the format

[[Page 212]]

specified in paragraph (b) of this section. If the person preparing the 
Certificate 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 
representation that the article qualifies for preferential treatment; or
    (2) A completed and signed Certificate of Origin for the article 
voluntarily 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           19 CFR
                       Only a Summary of the Cited
                             CFR Provision.
------------------------------------------------------------------------
A..................  Apparel assembled from U.S.        10.243(a)(1)(i).
                      formed, dyed, printed and
                      finished fabrics or fabric
                      components, or U.S. formed
                      knit-to-shape components
                      from U.S. or Andean yarns.
B..................  Apparel assembled from Andean     10.243(a)(1)(ii).
                      chief value llama, alpaca or
                      vicu[ntilde]a fabrics,
                      fabric components, or knit-
                      to-shape components, from
                      Andean yarns.
C..................  Apparel assembled from           10.243(a)(1)(iii).
                      fabrics or yarns considered
                      as being in short supply in
                      the NAFTA.
D..................  Apparel assembled from            10.243(a)(1)(iv).
                      fabrics or yarns designated
                      as not available in
                      commercial quantities in the
                      United States.
E..................  Apparel assembled from a              10.243(a)(2).
                      combination of two or more
                      yarns, fabrics, fabric
                      components, or knit-to-shape
                      components described in
                      preference groups A though D.
F..................  Handloomed, handmade, or              10.243(a)(3).
                      folklore textile and apparel
                      goods.
G..................  Brassieres assembled in the           10.243(a)(4).
                      U.S. and/or one or more
                      Andean beneficiary countries.
H..................  Textile luggage assembled         10.243(a)(5)&(6).
                      from U.S. formed fabrics
                      from U.S. yarns.
I..................  Apparel assembled from Andean         10.243(a)(7).
                      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.
------------------------------------------------------------------------
6. U.S./Andean Fabric Producer Name & Address:
------------------------------------------------------------------------
7. U.S./Andean Yarn Producer Name & Address:
------------------------------------------------------------------------
8. Handloomed, Handmade, or Folklore Article:
------------------------------------------------------------------------

[[Page 213]]

 
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 connection 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 following 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 treatment 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 Customs and Border Protection (CBP) 
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) Block 4 should provide a full description of each article. The 
description should be sufficient to relate it to the invoice description 
and to the description of the article in the international 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 provision cited on the Certificate for that group;
    (7) Blocks 6 through 9 must be completed 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 the article is handloomed or handmade of handloomed fabric;

[[Page 214]]

    (11) Block 9 should be completed if the article described in block 4 
incorporates 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 completed 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 signature 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 articles as described in block 4 
that are imported into the United States during a specified period of up 
to one year (see Sec. 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, attach a continuation 
sheet.



Sec. 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 described in Sec. 
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 classified will constitute the written 
declaration. Except in any of the circumstances described in Sec. 
10.246(d)(1), the declaration required under this paragraph must be 
based on a Certificate of Origin that has been completed and properly 
executed in accordance with Sec. 10.244, 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 importer has reason to believe 
that a Certificate of Origin on which a declaration 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 corrected 
declaration and pay any duties that may be due. A corrected declaration 
will be effected by submission of a letter or other written statement to 
the CBP port where the declaration was originally filed.



Sec. 10.246  Maintenance of records and submission of Certificate by importer.

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec. 10.245 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 a copy of the Certificate of Origin referred to in Sec. 
10.245(a) and any other relevant documents or other records as specified 
in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on an apparel or other textile article under Sec. 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 paragraph:
    (1) Must be in writing or must be transmitted electronically through 
any electronic data interchange system authorized by CBP for that 
purpose;
    (2) If in writing, must be signed by the producer or exporter or the 
producer'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 completed in a language other than English, the importer 
must provide to

[[Page 215]]

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 single 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 identical 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 Sec. 10.244(c)(14), ``identical articles'' means articles 
that are the same in all material respects, including physical 
characteristics, quality, and reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate 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 Certificate 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, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

    I hereby certify that the article covered by this shipment qualifies 
for preferential treatment under the ATPDEA.

Check One:
( ) Producer
( ) Exporter
( ) Importer
( ) Agent
________________________________________________________________________

Name
________________________________________________________________________

Title
________________________________________________________________________

Address
________________________________________________________________________

Signature and Date

    (2) Exception. If the port director determines 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 Origin 
requirement under Sec. Sec. 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 Certificate 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 failure to timely obtain the Certificate of 
Origin will result in denial of the claim for preferential treatment. 
For purposes of this paragraph, a ``series of importations'' means two 
or more entries covering articles arriving on the same day from the same 
exporter and consigned to the same person.



Sec. 10.247  Verification and justification of claim for preferential treatment.

    (a) Verification by CBP. A claim for preferential treatment made 
under Sec. 10.245, including any statements or other information 
contained on a Certificate of Origin submitted to CBP under Sec. 
10.246, will be subject to whatever verification the port director deems 
necessary. In the event that the port director for any reason is 
prevented 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:

[[Page 216]]

    (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 information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, information relating 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 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 
treatment under Sec. 10.245, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the apparel or other textile 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 described in one of the provisions 
under Sec. 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 completed 
Certificate of Origin in the form set forth in Sec. 10.244(b) is a 
record that would serve these purposes;
    (2) Must establish and implement internal 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 demonstrates that the 
conditions set forth in Sec. 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 paragraphs (b)(1) through 
(b)(3) of this section justify the importer's claim for preferential 
treatment.



Sec. 10.248  Additional requirements for preferential treatment of brassieres.

    (a) Definitions. When used in this section, the following terms have 
the meanings indicated:
    (1) Producer. ``Producer'' means an individual, corporation, 
partnership, association, or other entity or group that exercises 
direct, daily operational control over the production process in an 
ATPDEA beneficiary country.
    (2) Entity controlling production. ``Entity controlling production'' 
means an individual, corporation, partnership, association, or other 
entity or group that is not a producer and that controls the production 
process in an ATPDEA beneficiary country through a contractual 
relationship or other indirect 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 reference 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 commercial 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 adjusted to arrive at an f.o.b. port of exportation 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 costs incurred in 
transporting the fabrics to the place of production if included in that 
price; or

[[Page 217]]

    (ii) If the price cannot be determined under paragraph (a)(4)(i) of 
this section or if CBP finds that price to be unreasonable, all 
reasonable expenses incurred in the growth, production, manufacture, 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 expenses, plus a reasonable amount for 
profit, and the freight, insurance, packing, 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 reference to fabric contained in an article means the sum of:
    (i) The cost of fabrics formed in the United States that the 
producer or entity controlling production can verify; and
    (ii) The cost of all other fabric contained 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 production, the f.o.b. port of exportation price of the 
fabric as set out in the invoice 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 adjusted to arrive at an f.o.b. port of exportation price, 
plus expenses for embroidering and dyeing, printing, and finishing 
operations applied to the fabric 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 transporting 
the fabric to the place of production if included in that price;
    (B) In the case of fabric for which the cost cannot be determined 
under paragraph (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 embroidering and dyeing, printing, and finishing expenses, plus a 
reasonable amount for profit, and the freight, insurance, 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 materials, and less 
expenses for cutting or other processing to create the fabric components 
other than knitting to shape, that the producer or entity controlling 
production can verify, 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 adjusted to arrive at an f.o.b. port of exportation price, 
less the cost or value of any non-textile materials, and less expenses 
for cutting or other processing to create the fabric components other 
than knitting to shape, that the producer or entity controlling 
production 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 processing to create the fabric components other than 
knitting to shape, that the producer or entity controlling production 
can verify, and less the freight, insurance, packing, and other costs 
incurred in transporting the fabric components 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 determined under paragraph (a)(5)(ii)(C) 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 components, 
including the cost or value of materials (which does not include the 
cost of recoverable scrap generated in

[[Page 218]]

the growth, production, or manufacture of the fabric components) and 
general expenses, but excluding the cost or value of any non-textile 
materials, and excluding expenses for cutting or other processing to 
create the fabric components other than knitting to shape, that the 
producer or entity controlling production can verify, plus a reasonable 
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 ending on September 30 but does not include any 12-month period that 
began prior to October 1, 2002.
    (7) Entered. ``Entered'' means entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States.
    (b) Limitations on preferential treatment--(1) General. During the 
year that begins on October 1, 2003, and during any subsequent year, 
articles of a producer or an entity controlling production that conform 
to the production standards set forth in Sec. 10.243(a)(4) will be 
eligible for preferential treatment only if:
    (i) The aggregate cost of fabrics (exclusive 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 Sec. 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 trimmings) contained in all of those articles of that 
producer or that entity controlling production that are entered as 
articles described in Sec. 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 articles of that producer or that entity controlling 
production were not eligible 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 
production of all of those articles of that producer or that entity 
controlling production that conform to the production standards set 
forth in Sec. 10.243(a)(4) and that were entered during the immediately 
preceding year was at least 85 percent of the aggregate declared customs 
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 standards set forth in Sec. 
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 Sec. 10.245, the importer records on the entry summary 
or warehouse withdrawal for consumption (CBP Form 7501, column 34), or 
its electronic equivalent, the distinct and unique identifier assigned 
by CBP to the applicable 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 purposes of preparing 
and filing the documentation 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 Sec. 10.243(a)(4) and the articles 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 specified 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 Sec. 
10.243(a)(4) are not to be considered in determining compliance with the 
75 percent standard specified in paragraph (b)(1)(i) of this section;
    (D) For purposes of determining compliance 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 Sec. 10.243(a)(4) 
must be considered, regardless of the HTSUS subheading under which they 
were entered;

[[Page 219]]

    (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 preferential treatment in a given year, a producer of, or entity 
controlling production 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 
paragraph (b)(1)(i) of this section during a year, articles of that 
producer or entity controlling production:
    (1) Will not be eligible for preferential treatment during the 
following year;
    (2) Will remain ineligible for preferential treatment until the year 
that follows a year in which articles of that producer or entity 
controlling production met the 85 percent standard specified in 
paragraph (b)(1)(ii) of this section; and
    (3) After the 85 percent standard specified in paragraph (b)(1)(ii) 
of this section has been met, will again be subject to the 75 percent 
standard specified in paragraph (b)(1)(i) of this section during the 
following year for purposes of determining eligibility for preferential 
treatment in the next year.
    (G) A new producer or new entity controlling production, that is, a 
producer or entity controlling production who did not produce or control 
production of articles that were entered as articles described in Sec. 
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 prerequisite to preparation of the 
declaration of compliance referred to in paragraph (c) of this section;
    (H) A declaration of compliance prepared by a producer or by an 
entity controlling production must cover all production of that producer 
or all production 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 paragraph (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 question, 
even if some but not all of that production is also covered by a 
declaration of compliance prepared by an entity controlling production;
    (K) The U.S. importer does not have to be the producer or the entity 
controlling production who prepared the declaration of compliance; and
    (L) The exclusion references regarding findings and trimmings in 
paragraph (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 principles set forth in paragraph (b)(2)(i) of this section.

    Example 1. An ATPDEA beneficiary country producer of articles that 
meet the production standards specified in Sec. 10.243(a)(4) in the 
first year sends 50 percent of that production 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 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 Sec. 
10.243(a)(4); one of those shipments is entered under the HTSUS 
subheading that covers articles described in Sec. 10.243(a)(4), the 
second shipment is entered under the HTSUS subheading that covers 
articles described in Sec. 10.243(a)(7), and the third shipment is 
entered under subheading 9802.00.80, HTSUS. In determining whether the 
minimum 75 percent standard has been met in the first year for purposes 
of entry of articles under the

[[Page 220]]

HTSUS subheading that covers articles described in Sec. 10.243(a)(4) 
during the following (that is, second) year, consideration must be 
restricted to the articles in the first shipment and therefore must not 
include the articles 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 Sec. 
10.243(a)(4); some of those articles are entered 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 Sec. 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 
aggregate for all of the articles entered in the second year, in the 
next (that is, third) year articles of that producer may receive 
preferential treatment under the HTSUS subheading which pertains to 
articles described in Sec. 10.243(a)(4).
    Example 4. An entity controlling production of articles that meet 
the description in Sec. 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. Notwithstanding the fact that some 
of the articles ultimately ended up in Canada or Mexico, 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 consumption.
    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 following 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 brassiere straps and labels 
produced in an Asian country and other fabrics, components or materials 
produced in the ATPDEA beneficiary country to form articles that meet 
the production standards specified in Sec. 10.243(a)(4) and that are 
then shipped to the United States and entered during that same year. In 
determining whether the entered articles meet the minimum 75 or 85 
percent standard, the fabric in the labels is to be disregarded entirely 
because the labels constitute 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 country producer's entire 
production of articles that meet the description in Sec. 10.243(a)(4) 
is sent to a U.S. importer in two separate shipments, one in February 
and the other in June of the same calendar year; the articles shipped in 
February do not meet the minimum 75 percent standard, the articles 
shipped in June exceed the 85 percent standard, and the articles in the 
two shipments, taken together, do meet the 75 percent standard; the 
articles covered by the February shipment are entered for consumption on 
March 1 of that calendar year, and the articles covered by the June 
shipment are placed in a CBP bonded warehouse upon arrival 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 articles in the 
first shipment because those articles 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 compliance 
since they were entered in a different year. However, the ATPDEA 
beneficiary country 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 Sec. 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 preferential treatment during 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 immediately 
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.
    Example 8. An entity controlling production (Entity A) uses five 
ATPDEA beneficiary country producers (Producers 1-5), all of which 
produce only articles that meet the

[[Page 221]]

description in Sec. 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 Entity A, but 
Producer 4 also operates independently of Entity A by producing for 
several 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 Entity A must 
cover all of the articles of Producers 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 entity 
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 
independently for other U.S. importers; a declaration of compliance 
prepared by Entity B must cover that portion of the production of 
Producer 4 that it controls as well as all of the production of Producer 
6 because Entity B also controls all of the production of Producer 6. 
Producer 6 would not prepare a declaration of compliance because all of 
its production is covered by the declaration of compliance prepared by 
Entity B.

    (c) Documentation--(1) Initial declaration of compliance. In order 
for an importer to comply with the requirement set forth in paragraph 
(b)(1)(iii) of this section, the producer or the entity controlling 
production must have filed with CBP, in accordance with paragraph (c)(4) 
of this section, a declaration 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 responsible for advising each appropriate U.S. importer of that 
distinct and unique identifier for purposes of recording that identifier 
on the entry summary or warehouse withdrawal. In order to provide 
sufficient time for advising the U.S. importer of that distinct and 
unique identifier prior to the arrival of the articles in the United 
States, the producer or the entity controlling production should file 
the declaration 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 estimate because final year-end information was 
not available at that time and the final data differs from the estimate, 
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 available or within 30 calendar days 
after the date of discovery of the error:
    (i) The producer or the entity controlling production must file with 
the CBP office identified in paragraph (c)(4) of this section an amended 
declaration of compliance containing that final year-end information or 
other corrected information; or
    (ii) If that final year-end information or other corrected 
information demonstrates noncompliance with the applicable 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 appropriate 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:

[[Page 222]]



     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,       Official U.S. CBP Use Only
 ------------------------
    Year ending date: September 30, ---- Assigned number:
     --------------------                 ------------------------
                                         Assignment date:----------------
                                          --------
------------------------------------------------------------------------
2. Identity of preparer (producer or
 entity controlling production):
    Full name and address:               Telephone number: --------------
                                          ----------
                                         Facsimile number: --------------
                                          ----------
                                         Importer identification
                                          number:------------
------------------------------------------------------------------------
3. If the preparer is an entity controlling production, provide the
 following for each producer:
------------------------------------------------------------------------
    Full name and address:               Telephone number: --------------
     ------------------------             ----------
                                         Facsimile number: --------------
                                          ----------
------------------------------------------------------------------------
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:
------------------------
------------------------------------------------------------------------
5. Aggregate declared customs value of the fabric (exclusive of all
 findings and trimmings) contained in brassieres that were entered
 during the year:
------------------------
------------------------------------------------------------------------
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
 brassieres entered during the year.
------------------------------------------------------------------------
7. Authorized signature:---------------- 8. Name and title (print or
 --------                                 type):------------------------
------------------------------------------------------------------------
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 commencing October 1 and ending 
September 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 Sec. 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 articles 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 knowledge of the relevant facts 
and the date

[[Page 223]]

must be the date on which the declaration 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 covered by the declaration 
were produced. If the declaration is completed in a language other than 
English, the producer or the entity controlling production 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 compliance--(1) Verification 
procedure. A declaration 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 statements made on a 
declaration of compliance, CBP may deny any claim for preferential 
treatment made under Sec. 10.245 that is based on that declaration. 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 controlling production, or any 
other person under part 163 of this chapter;
    (ii) Documentation and other information regarding all articles that 
meet the production standards specified in Sec. 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 Sec. 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 shipping 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 shipping documents, and customs import and clearance 
documents, work orders and other production records, and inventory 
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, invoices and bills of 
lading will be accomplished through the review of a distinct audit 
trail. The audit trail documents must consist of a cash disbursement 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 producer or entity 
controlling production. The inventory records must reflect the 
production of the finished article which must be referenced to the 
original purchase order or lot number covering the fabric used in 
production. In the inventory production records, the inventory should 
show the opening balance of the inventory plus the purchases made during 
the accounting period and the inventory closing balance.
    (2) Notice of determination. If, based on a verification of a 
declaration of compliance 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 
                                Articles

    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 otherwise noted.

[[Page 224]]



Sec. 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 Preference Act (the 
ATPA, 19 U.S.C. 3201-3206) to authorize the President to extend 
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 articles that were not 
entitled to duty-free treatment under the ATPA prior to enactment of the 
ATPDEA. The provisions of Sec. Sec. 10.251-10.257 of this part set 
forth the legal requirements and procedures that apply for purposes of 
obtaining preferential treatment pursuant to ATPA sections 204(b)(1) and 
(b)(4).



Sec. 10.252  Definitions.

    When used in Sec. Sec. 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 Sec. 10.202(a) for purposes of 
the ATPA which the President also has designated 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 designee, published in the Federal Register, 
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 supervisory 
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 
beneficiary country; and
    (e) Of which at least 75 percent of the crew are nationals of an 
ATPDEA beneficiary country.
    HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the United 
States.
    Preferential treatment. ``Preferential treatment'' means entry, or 
withdrawal from warehouse for consumption, in the customs territory of 
the United States free of duty and free of any quantitative restrictions 
in the case of tuna described in Sec. 10.253(a)(1) and free of duty in 
the case of any article described in Sec. 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]



Sec. 10.253  Articles eligible for preferential treatment.

    (a) General. Preferential treatment applies to any of the following 
articles, provided that the article in question is imported directly 
into the customs territory 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

[[Page 225]]

    (2) Any of the following articles that the President has determined 
are not import-sensitive in the context of imports from ATPDEA 
beneficiary countries, provided that the article in question meets the 
country of origin and value content requirements set forth in paragraphs 
(c) and (d) of this section:
    (i) Footwear not designated on December 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 derived from petroleum, provided for 
in headings 2709 and 2710 of the HTSUS;
    (iii) Watches and watch parts (including cases, bracelets, and 
straps), of whatever type including, but not limited 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 
apparel that were not designated on August 5, 1983, as eligible articles 
for purposes of the GSP.
    (b) Imported directly defined. For purposes 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 
commerce of any country that is not an ATPDEA 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 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 arrival 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 original 
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) General. Except as otherwise 
provided in paragraph (c)(2) of this section, an article 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 
beneficiary country; or
    (ii) A new or different article of commerce which has been grown, 
produced, or manufactured in an ATPDEA beneficiary country.
    (2) Exceptions. No article will be eligible 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 dilution with another substance that does 
not materially alter the characteristics of the article. The principles 
and examples set forth in Sec. 10.195(a)(2) will apply equally for 
purposes of this paragraph.
    (d) Value content requirement--(1) General. An article may be 
eligible for preferential treatment only if the sum of the cost or value 
of the materials produced in an ATPDEA beneficiary country 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 countries. For the specific purpose of determining the 
percentage referred to in paragraph (d)(1) of this section, the term 
``ATPDEA beneficiary country'' includes the Commonwealth of Puerto

[[Page 226]]

Rico, the U.S. Virgin Islands, and any CBI beneficiary country as 
defined in Sec. 10.191(b)(1). Any cost or value of materials or direct 
costs of processing operations attributable to the Virgin Islands 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 Sec. 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 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 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 purposes of this paragraph.
    (4) Cost or value of materials--(i) ``Materials produced in an 
ATPDEA beneficiary country or countries'' defined. For purposes of 
paragraph (d)(1) of this section, the words ``materials produced in an 
ATPDEA beneficiary country or countries'' refer to those materials 
incorporated in an article which are either:
    (A) Wholly the growth, product, or manufacture of an ATPDEA 
beneficiary 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 commerce which is then used in any ATPDEA beneficiary country as 
defined in Sec. 10.252 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)(4)(i)(B), no material will be considered 
to be substantially transformed into a new or different article of 
commerce by virtue of having merely undergone simple (as opposed to 
complex or meaningful) combining or packaging operations, or mere 
dilution with water or mere dilution with another substance that does 
not materially alter the characteristics of the article. The examples 
set forth in Sec. 10.196(a), and the principles and examples set forth 
in Sec. 10.195(a)(2), will apply for purposes of the corresponding 
context 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 material, that material 
may not be considered to have been grown, produced, or manufactured in 
an ATPDEA beneficiary country or in the customs territory 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 materials produced in an ATPDEA beneficiary 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 manufacturer'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 spoilage, less the value of 
recoverable scrap; and
    (4) Taxes and/or duties imposed on the materials by any ATPDEA 
beneficiary 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 expenses;
    (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 operations--(i) Items included. For 
purposes of paragraph (d)(1) of this section, the

[[Page 227]]

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 merchandise 
under consideration. Those costs include, but are not limited to the 
following, to the extent that they are includable in the appraised value 
of the imported merchandise:
    (A) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific merchandise, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (B) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific merchandise;
    (C) Research, development, design, engineering, and blueprint costs 
insofar 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 operations'' do not 
include items which are not directly attributable to the merchandise 
under consideration or are not costs of manufacturing the product. These 
include, but are not limited to:
    (A) Profit; and
    (B) General expenses of doing business which either are not 
allocable to the specific merchandise or are not related to the growth, 
production, manufacture, or assembly of the merchandise, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.
    (6) Articles wholly the growth, product, or manufacture of an ATPDEA 
beneficiary country. Any article which is wholly the growth, product, or 
manufacture of an ATPDEA beneficiary country as defined in Sec. 10.252, 
and any article produced or manufactured in an ATPDEA beneficiary 
country as defined in Sec. 10.252 exclusively from materials which are 
wholly the growth, product, or manufacture of an ATPDEA beneficiary 
country or countries, will normally be presumed to meet the requirement 
set forth in paragraph (d)(1) of this section.



Sec. 10.254  Certificate of Origin.

    A Certificate of Origin as specified in Sec. 10.256 must be 
employed to certify that an article described in Sec. 10.253(a) being 
exported from an ATPDEA beneficiary country to the United States 
qualifies for the preferential treatment referred to in Sec. 10.251. 
The Certificate of Origin must be prepared in the ATPDEA beneficiary 
country by the producer or exporter or by the producer's or exporter's 
authorized agent. If the person preparing the Certificate of Origin is 
not the producer of the article, the person may complete and sign a 
Certificate on the basis of:
    (a) The person's reasonable reliance on the producer's written 
representation that the article qualifies for preferential treatment; or
    (b) A completed and signed Certificate of Origin for the article 
voluntarily provided to the person by the producer.

[CBP Dec. 06-21, 71 FR 44583, Aug. 7, 2006]



Sec. 10.255  Filing of claim for preferential treatment.

    (a) Declaration. In connection with a claim for preferential 
treatment for an article described in Sec. 10.253(a), the importer must 
make a written declaration that the article qualifies for that 
treatment. The written declaration should be made by including on the 
entry summary, or equivalent documentation, the symbol ``J+'' as a 
prefix to the subheading of the HTSUS in which the article in question 
is classified. Except in any of the circumstances described in Sec. 
10.256(d)(1), the declaration required under this paragraph must be 
based on a complete and properly executed original Certificate of Origin 
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 importer has reason to believe 
that a Certificate of Origin on which a declaration was based contains 
information that is not correct, the importer must within 30 calendar 
days after the date

[[Page 228]]

of discovery of the error make a corrected declaration and pay any 
duties that may be due. A corrected declaration will be effected by 
submission of a letter or other written statement to the Customs port 
where the declaration was originally filed.



Sec. 10.256  Maintenance of records and submission of Certificate by importer.

    (a) Maintenance of records. Each importer claiming preferential 
treatment for an article under Sec. 10.255 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 Certificate of Origin referred to in Sec. 
10.255(a) and any other relevant documents or other records as specified 
in Sec. 163.1(a) of this chapter.
    (b) Submission of Certificate. An importer who claims preferential 
treatment on an article under Sec. 10.255(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 Customs 
under this paragraph:
    (1) Must be on CBP Form 449, including 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 Protection, 
Washington, DC 20229. An alternative 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 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 completed 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 single 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 identical 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, including physical characteristics, quality, and 
reputation.
    (c) Correction and nonacceptance of Certificate. If the port 
director determines that a Certificate of Origin is illegible or 
defective or has not been completed in accordance with paragraph (b) of 
this section, the importer will be given a period of not less than five 
working days to submit a corrected Certificate. A Certificate will not 
be accepted in connection with subsequent importations during a period 
referred to in paragraph (b)(4)(ii) of this section if the port director 
determined that a previously imported identical article covered by the 
Certificate did not qualify for preferential treatment.
    (d) Certificate not required--(1) General. Except as otherwise 
provided in paragraph (d)(2) of this section, an importer is not 
required to have a Certificate 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 Certificate 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, exporter, importer or authorized agent includes on, or 
attaches to, the invoice or other document accompanying the shipment the 
following signed statement:

    I hereby certify that the article covered by this shipment qualifies 
for preferential tariff treatment under the ATPDEA.
    Check One:

( ) Producer
( ) Exporter
( ) Importer

[[Page 229]]

( ) Agent

----------------------------------
Name

----------------------------------
Title

----------------------------------
Address

----------------------------------
Signature and Date

    (2) Exception. If the port director determines 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 Origin 
requirement under Sec. Sec. 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 Certificate 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 failure to timely obtain the Certificate of 
Origin will result in denial of the claim for preferential treatment. 
For purposes of this paragraph, a ``series of importations'' means two 
or more entries covering articles arriving on the same day from the same 
exporter and consigned 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]



Sec. 10.257  Verification and justification of claim for preferential treatment.

    (a) Verification by Customs. A claim for preferential treatment made 
under Sec. 10.255, including any statements or other information 
contained on a Certificate of Origin submitted to Customs under Sec. 
10.256, will be subject to whatever verification the port director deems 
necessary. In the event that the port director for any reason is 
prevented 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 information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, information relating 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 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 
treatment under Sec. 10.255, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the 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 meets the 
country of origin and value content requirements set forth in Sec. 
10.253(c) and (d). A properly completed Certificate of Origin in the 
form prescribed in Sec. 10.254(b) is a record that would serve this 
purpose;
    (2) Must establish and implement internal 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 demonstrates that the 
conditions set forth in Sec. 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.

[[Page 230]]



           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.



Sec. 10.301  Scope and applicability.

    The provisions of Sec. Sec. 10.302 through 10.311 of this part 
relate to the procedures for obtaining duty preferences on imported 
goods under the United States-Canada Free-Trade Agreement (the 
Agreement) entered into on January 2, 1988, and the United States-Canada 
Free-Trade Agreement Implementation 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 coincide with the entry into force 
of the North American Free Trade Agreement (see part 181 of this 
chapter) and, accordingly, the provisions of Sec. Sec. 10.302 through 
10.311 of this part apply only to goods imported from Canada that were 
entered for consumption, or withdrawn from warehouse for consumption, 
during the period January 1, 1989, through December 31, 1993. In 
situations involving goods subject to bilateral restrictions or 
prohibitions, or country of origin marking, other criteria for 
determining origin may be applicable pursuant to Article 407 of the 
Agreement.

[T.D. 96-35, 61 FR 19835, May 3, 1996]



Sec. 10.302  Eligibility criteria in general.

    Subject to the more specific explanations of the criteria in 
Sec. Sec. 10.303 and 10.305 of this part, goods classifiable under an 
HTSUS heading or subheading for which the symbol ``CA'' appears in the 
``special'' column are eligible for a preference if:
    (a) Originating goods. The goods originate in Canada or the United 
States, or both, and
    (b) Direct shipment required. Except as provided in Sec. 10.306(b), 
are directly shipped to the United States from Canada.



Sec. 10.303  Originating goods.

    (a) General. For purposes of eligibility for a preference under the 
Agreement, goods may be regarded as originating 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 classification. The goods have been 
transformed by a processing which results in a change in classification 
and, if required, 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 disassembled, pursuant to General Rule of Interpretation 
2(a), HTSUS, or because the tariff subheading for the goods provides 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 Sec. 
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 subsequently processed or further 
assembled in a third country; and
    (iii) The goods satisfy the requirement in Sec. 10.306.
    (b) Originating materials. For purposes of this section and Sec. 
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 purposes of paragraph (a) of this 
section, the expression ``change in classification'' means a change of 
classification within the Harmonized Commodity Description and Coding 
System (Harmonized System) as published and

[[Page 231]]

amended from time to time by the Customs 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]



Sec. 10.304  Exclusions.

    (a) Changes based on simple processing. No goods shall be considered 
originating for purposes of eligibility under the Agreement if they have 
merely undergone simple packaging or simple combining operations, or 
have undergone mere dilution with water or with another substance that 
does not materially alter the characteristics of the goods.
    (b) Other excluded processing. No goods shall be considered to be 
originating merely by virtue of having undergone any process or work in 
which the facts clearly justify the presumption that the sole object was 
to circumvent the provisions of Chapter 3 of the Agreement.



Sec. 10.305  Value content requirement.

    (a) Direct cost of processing or assembling--(1) Definition. For 
purposes of applying a specific rule of origin under the Agreement which 
requires a value content determination, the terms ``direct cost of 
processing'' and ``direct cost of assembling'' mean the costs directly 
incurred in, or that can be reasonably 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 supervision, quality 
control, shipping, receiving, storage, packaging, management at the 
location of the process or assembly, and other like labor, whether 
provided by employees or independent 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 engineering costs;
    (v) Rent, mortgage interest, depreciation 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 processing or assembling. 
Excluded from the direct costs of processing or assembling are:
    (i) Costs relating to the general expense of doing business, such as 
the cost of providing executive, financial, sales, advertising, 
marketing, accounting 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 licensing agreement to distribute 
or sell the goods;
    (vi) Rent, mortgage interest, depreciation on buildings, property 
insurance premiums, maintenance, taxes, and the cost of utilities for 
real property used by personnel charged with administrative functions; 
and
    (vii) Profit on the goods.
    (3) Interpretation--(i) Indirect materials. Under the definition of 
``materials'' set forth in Sec. 10.303(b), certain types of materials 
are treated as direct costs of processing or assembling under paragraph 
(a) of this section. This applies principally to materials used or 
consumed indirectly in the production of exported goods, where no 
portion of those materials is physically incorporated in the exported 
goods. In addition to the items specified in paragraph (a)(1)(iii) of 
this section, such materials include items such as gloves and safety 
glasses worn by production workers, tape used in painting processes, and 
tools, materials and spare parts used in the repair and maintenance of 
machinery and equipment used in the production of the exported goods. 
Such materials are to be distinguished from waste and spoilage specified 
in paragraph (b)(1)(ii)(C) of this section, which relate to materials 
that are physically incorporated in the exported goods.

[[Page 232]]

    (ii) Directly incurred. In order for costs incurred by a production 
facility to be treated as direct costs of processing 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 operate the facility. In addition to the 
exclusions set forth in paragraph (a)(2) of this section, such 
peripheral costs include labor costs for nurses tending to employees, 
for accounting personnel involved in physical inventory taking, for 
personnel responsible for purchasing or requisitioning materials to be 
used or consumed in the production process, and for second level 
supervisors and above who are not directly involved in the production 
process.
    (iii) Labor costs. Under paragraph (a)(1)(i) of this section, labor 
costs includable as direct costs of processing or assembling are limited 
to labor provided 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 exported to the United 
States.
    (iv) Interest expense. Bona fide interest payments on debt of any 
form, secured or unsecured, undertaken on arm's length terms in the 
ordinary course of business to finance the acquisition of fixed assets 
such as real property, 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 entire 
production facility is covered by a mortgage and incorporates both 
production and administrative or other general expense space, an 
appropriate allocation must be made in order to ensure that only that 
portion of the interest allocated to the production area is counted 
toward the value-content requirement. Interest expenses attributable to 
general and administrative costs or expenses, including interest on 
funds borrowed to meet the payroll of personnel directly involved in the 
production of goods, are not considered direct costs of processing or 
assembly.
    (b) Value of originating materials--(1) Definition. The term ``value 
of materials originating in the United States or Canada or both'' means 
the aggregate of:
    (i) The price paid by the producer of exported goods for materials 
originating in either the United States or Canada, or both, or for 
materials imported 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 resulting from the use or 
consumption of such materials, less the value of renewable 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 Implementation of Article VII of the General Agreement on 
Tariffs and Trade.
    (2) Directly attributable. Whenever a value-content determination is 
required 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 treated 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 section, the ``price paid'' for materials by the producer of 
exported goods forms the basis for determining the value of such 
materials when incorporated in

[[Page 233]]

the exported goods. The actual price paid for such materials will 
determine the value of those materials for purposes of the value-content 
requirement, even though a relationship between 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. Notwithstanding these examples, the 
totality of the facts must be examined in each case to determine whether 
Sec. 10.304(b) is applicable.

    Example 1. Non-originating materials are sold by Company X (a 
foreign corporation located outside the United States or Canada) to 
Company Y (a Canadian corporation) for $100; Company X also sold 
identical materials 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 Company Y (a Canadian corporation) 
which incorporated the materials in goods exported to the United States. 
In this case the $104 price paid by Company Y to Company X constitutes 
the value of the materials for purposes of the value-content 
requirement.
    Example 3. Company X (a foreign corporation 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 Company Z (a Canadian corporation) which incorporated 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 requirement 
because the materials were sold at a reduced cost within the meaning of 
subparagraph 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 export from materials which that producer 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 
integrated 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 purposes of 
applying the value-content requirement 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 panels 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 panels 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 country and used or 
consumed in the production of the body panels.
    Example 2. An automobile exporter in Canada purchases and imports 
body panels fabricated 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 material, 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 originating material any domestic 
steel coil used in producing the vertically (locally) fabricated body 
panels, in which case the value of originating material is the price 
paid for the domestic steel coil.


[[Page 234]]


    (c) Value of goods when exported. The term ``value of the goods when 
exported to the United States'' means the aggregate of:
    (1) The price paid by the producer for all materials, whether or not 
the materials originate in the United States, or Canada, or both, and, 
when not included in the price paid for the materials, the following 
costs related thereto:
    (i) Freight, insurance, packing, and all other costs incurred in 
transporting all materials to the location of the producer;
    (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 resulting from the use or 
consumption of such materials, less the value of renewable 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 Implementation 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]



Sec. 10.306  Direct shipment to the United States.

    Goods shall be considered as directly shipped to the United States 
from Canada 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 commerce of any third country;
    (2) The goods did not undergo any operation other than unloading, 
reloading, or any operation necessary to transport them to the United 
States or to preserve them in good condition; and
    (3) All shipping and export documents show the United States as the 
final destination.



Sec. 10.307  Documentation.

    (a) Claims for a preference. A preference in accordance with the 
Agreement may be claimed by including on the entry summary, or 
equivalent documentation, the symbol ``CA'' as a prefix to the 
subheading of the HTSUS under which each eligible good is classified.
    (b) Failure to claim a preference. Failure to make a timely claim 
for a preference 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 
Agreement shall be based on the Exporter's Certificate of Origin, 
properly completed and signed by the person who exports or knowingly 
causes the goods to be exported from Canada. The Exporter's Certificate 
of Origin must be available 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 format as is approved by the Headquarters, U.S. 
Customs Service, Office of Trade Operations, Washington, DC 20229. 
Alternative formats must contain the same information and certification 
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 certification actually qualify for treatment 
under the Agreement. A blanket certification does not allow an exporter 
to average its costs over the blanket certification period in order to 
establish that the exported goods meet the criteria for originating 
goods under the Agreement. Under Sec. 10.308, the exporter must retain 
supporting records that will permit a review of the eligibility

[[Page 235]]

of the goods in each shipment covered by a blanket certification.
    (e) Exceptions to documentation requirements. Exceptions to the 
foregoing documentation requirements may be authorized at the discretion 
of the port director in the following circumstances:
    (1) Exception for informal entries. As set forth in paragraphs 
(e)(1) (i) and (ii) of this section, an Exporter's Certificate of Origin 
may be waived in connection with an entry entitled to informal entry 
procedures as authorized in Sec. Sec. 143.21 and 143.22 of this chapter 
if:
    (i) Commercial goods which qualify for informal entry. The invoice, 
or an appropriate Customs release document, for commercial goods which 
qualify both for informal entry and a preference must include the 
following statement, on the invoice or appropriate 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 Agreement.
    Check One:

( ) Manufacturer
( ) Supplier
( ) Exporter
________________________________________________________________________
Signature
________________________________________________________________________
Title
Date:___________________________________________________________________

    (ii) Noncommercial goods which qualify for informal entry. The 
importation of goods from Canada by a person for noncommercial 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 shipment. The port director may 
waive the submission of evidence of direct shipment 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]



Sec. 10.308  Records retention.

    (a) Importer. The importer of record shall retain the exporter's 
certificate of origin required by Sec. 10.307(d) for a period of 5 
years and it must be made available upon request by the appropriate 
Customs official.
    (b) Exporter. Any person who exports, or who knowlingly causes to be 
exported, any merchandise to Canada shall make, keep, and render for 
examination 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.



Sec. 10.309  Verification of documentation.

    Any evidence of country of origin or of direct shipment submitted in 
support of a preference under the Agreement shall be subject to such 
verification as the appropriate Customs official may deem necessary. If 
the U.S. importer or U.S. exporter or their agent does not provide the 
information requested by the appropriate Customs officer, the port 
director may refuse to grant the claim for preference, in addition to 
other available sanctions.



Sec. 10.310  Election to average for motor vehicles.

    (a) Election. In determining whether a motor vehicle is originating 
for purposes 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-content requirement for vehicles of the same 
class or sister vehicles which are assembled in the same plant as 
provided for in the Agreement. A manufacturer must declare its election 
to average before the importation of any vehicles produced within the 
identified 12-

[[Page 236]]

month period. The election to average is subject to the conditions and 
requirements set forth in Sec. Sec. 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 remain binding for the plant for the entire period 
covered by the election. If a manufacturer's annual report, required by 
Sec. 10.311, does not verify the claim that the vehicles are 
originating goods under the Agreement or Canadian articles under APTA, 
or if a manufacturer otherwise fails to comply with the reporting 
requirements, entries of the vehicles identified in the averaging 
declaration will be subject to liquidation in accordance with the rate 
of duty which would otherwise apply.
    (c) Election in lieu of certificate of origin. In lieu of the 
Exporter's Certificate of Origin required in Sec. 10.307(c), an 
importer of vehicles covered by an election 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]



Sec. 10.311  Documentation for election to average for motor vehicles.

    A manufacturer who elects to average 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 declaration of election to average, 
signed by an authorized company official, shall be submitted by the 
manufacturer to the U.S. Customs and Border Protection, Office of 
International Trade, Regulatory Audit, Detroit, Michigan 48226-2568 on 
CBP Form 355, Declaration of Election to Average.
    (b) Quarterly Report. A quarterly report shall be submitted to the 
Office of International Trade, Regulatory Audit, at the above address, 
on CBP Form 356, Vehicle Cost Report (Quarterly), within 30 days after 
the end of each quarter. In lieu of the CBP Form 356, the manufacturer 
may submit the information required on the form in an approved 
computerized format or such other format as is approved by the U.S. 
Customs and Border Protection, Office of International Trade, Regulatory 
Audit, Detroit, Michigan 48226-2568. Alternative formats must contain 
the same information set forth on the CBP Form 356. Negative quarterly 
reports are required.
    (c) Annual Report. An annual report shall be submitted to the U.S. 
Customs and Border Protection, Office of International Trade, Regulatory 
Audit, Detroit, Michigan 48226-2568, on CBP Form 357, Vehicle Cost 
Report (Annual), within 90 days of the end of the financial year 
identified in the Election to Average, CBP Form 355. In lieu of the CBP 
Form 357, Vehicle Cost Report (Annual), the manufacturer may submit the 
information required on the form in an approved computerized format or 
such other format as is approved by the U.S. Customs and Border 
Protection, Office of International Trade, Regulatory Audit, Detroit, 
Michigan 48226-2568. Alternative formats must contain the same 
information 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



Sec. 10.401  Scope.

    This subpart implements the duty preference and related customs 
provisions 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 Agreement Implementation Act (the Act; 
117 Stat. 909). Except as otherwise specified 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 
implementing 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]

[[Page 237]]



Sec. 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 origin'', 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 treatment. ``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 exemption from the 
merchandise processing fee;
    (d) Customs authority. ``Customs authority'' means the competent 
authority that is responsible under the law of a Party for the 
administration of customs 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'' includes any customs or import 
duty and a charge of any kind imposed in connection with the importation 
of a good, including any form of surtax or surcharge in connection with 
such importation, but, for purposes of implementing the US-CFTA, 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 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; 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 countries;
    (k) Harmonized System. ``Harmonized System (HS)'' means the 
Harmonized Commodity Description and Coding System, including its 
General Rules of Interpretation, Section Notes, and Chapter Notes, as 
adopted and implemented by the Parties in their respective tariff laws;
    (l) Heading. ``Heading'' means the first four digits in the tariff 
classification 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 material'' means a good used in 
the production, 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 operation 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;

[[Page 238]]

    (4) Lubricants, greases, compounding materials, and other materials 
used in production or used to operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, 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 incorporated into the good but 
whose use in the production of the good can reasonably 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. ``Preferential tariff treatment'' 
means the duty rate applicable to an originating good under the US-CFTA, 
and an exemption from the merchandise processing fee.
    (t) Subheading. ``Subheading'' means the first six digits in the 
tariff classification number under the Harmonized System;
    (u) Tariff preference level. ``Tariff preference level'' means a 
quantitative limit for certain non-originating textiles and textile 
apparel goods that may be entitled to preferential tariff treatment as 
if such goods were originating based on the goods meeting the production 
requirements set forth in Sec. 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 Textiles 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 sovereignty, and the exclusive economic zone and the continental 
shelf within which it exercises sovereign rights and 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 rights with respect to the seabed and 
subsoil and their natural resources;
    (x) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization 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



Sec. 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 declaration is made by including on the entry summary, or 
equivalent documentation, the symbol ``CL'' as a prefix to the 
subheading of the HTSUS under which each qualifying good is classified, 
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 declaration 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 corrected declaration and pay any duties 
that may be due. A corrected declaration 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 office where the original 
declaration was

[[Page 239]]

filed specifying the correction (see Sec. Sec. 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]



Sec. 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 certification or other information 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 information:
    (i) The legal name, address, telephone and e-mail address of the 
importer of record of the good (if known);
    (ii) The legal name, address, telephone and e-mail address of the 
exporter of the good (if different from the producer);
    (iii) The legal name, address, telephone and e-mail address of the 
producer of the good (if known);
    (iv) A description of the good for which preferential tariff 
treatment is claimed, which must be sufficiently detailed 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 classification rule for the 
good set forth in General Note 26(n), HTSUS;
    (vi) The preference criterion as set forth in paragraph (e) of this 
section.
    (b) Statement. A certification submitted 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain, and present upon request, 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 
production 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 United States; and
    This document consists of ---- pages, including all attachments.''

    (c) Responsible official or agent. A certification 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 producer's authorized agent having knowledge of the 
relevant facts. The certification must include the legal name and 
address of the responsible official or authorized agent signing the 
certification, and should include that person's telephone and e-mail 
address, if available. If the person making the certification is not the 
producer of the good, or the producer's authorized agent, the person may 
sign the certification of origin based on:
    (1) A certification that the good qualifies as originating issued by 
the producer; or
    (2) Knowledge of the exporter or importer 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 provide to the port director, upon 
request, a written English translation of the certification or other 
information.
    (e) Applicability of certification. A certification may be 
applicable to:
    (1) A single importation of a good into the United States, including 
a single 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,

[[Page 240]]

not exceeding 12 months. In the case of multiple shipments of identical 
goods, the certification must specify the blanket period in ``mm/dd/yyyy 
to mm/dd/yyyy'' format.
    (f) Preference criteria. The preference criterion to be included on 
the certification 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 produced 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 materials used in the production of 
the good undergoes an applicable change in tariff classification 
specified in General Note 26(n), HTSUS, or
    (ii) The good otherwise satisfies any applicable regional value 
content or other requirements specified in General 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]



Sec. 10.412  Importer obligations.

    (a) General. An importer who makes a declaration under Sec. 
10.410(a) of this subpart is responsible for the truthfulness of the 
declaration and of all the information and data contained in the 
certification or other information submitted to CBP under Sec. 
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 
information, including cost and sourcing information.
    (b) Compliance. In order to make a claim for preferential treatment 
under Sec. 10.410 of this subpart, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the good qualifies for preferential 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 applicable rules of origin set forth in General Note 26, 
HTSUS, and in this subpart. Those records may include a properly 
completed certification or other information as set forth in Sec. 
10.411 of this subpart; and
    (2) May be required to demonstrate that the conditions set forth in 
Sec. 10.463 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 issued a certification based on information 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 corrected declaration will not be subject to 
penalties for having made an incorrect declaration (see Sec. 10.481 of 
this subpart).

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-
39, 71 FR 76132, Dec. 20, 2006]



Sec. 10.413  Validity of certification.

    A certification that is completed, signed and dated in accordance 
with the requirements listed in Sec. 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 
certification is illegible or defective or has not been completed in 
accordance with Sec. 10.411 of this subpart, the importer 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]



Sec. 10.414  Certification or other information not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section,

[[Page 241]]

an importer will not be required to submit a certification or other 
information demonstrating that the good qualifies as originating under 
Sec. 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 determines 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 submit such a certification or other 
information 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]



Sec. 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 certification (or a copy 
thereof) or other information demonstrating that the good qualifies as 
originating, and any records and documents that the importer 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 importers as provided in Sec. 
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]



Sec. 10.416  Effect of noncompliance; failure to provide documentation regarding transshipment.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a 
certification of origin or other information demonstrating that the good 
qualifies as originating under Sec. 10.411(a) of this subpart or 
submission of a corrected certification under Sec. 10.413 of this 
subpart, the port director may deny preferential tariff treatment to the 
imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential tariff treatment to an originating good 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 director, copies of documents demonstrating to the 
satisfaction of the port director that the requirements set forth in 
Sec. 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



Sec. 10.420  Filing of claim for tariff preference level.

    A cotton or man-made fiber fabric or apparel good described in Sec. 
10.421 of this subpart that does not qualify as an originating good 
under Sec. 10.451 of this subpart may nevertheless be entitled to 
preferential tariff treatment under the US-CFTA under an applicable 
tariff preference level (TPL). To make a TPL claim, the importer must 
include on the entry summary, or equivalent documentation, the 
applicable subheading in Chapter 99 of the HTSUS (9911.99.20

[[Page 242]]

for a good described in Sec. 10.421(a) or (b) of this subpart or 
9911.99.40 for a good described in Sec. 10.421(c) of this subpart) 
immediately above the applicable subheading in Chapter 52 through 62 of 
the HTSUS under which each non-originating 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]



Sec. 10.421  Goods eligible for tariff preference claims.

    The following goods are eligible for a TPL claim filed under Sec. 
10.420 of this subpart:
    (a) Woven fabrics. Certain woven fabrics of Chapters 52, 54 and 55 
of the HTSUS (Headings 5208 to 5212; 5407 and 5408; 5512 to 5516) that 
meet the applicable conditions 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 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 
conditions 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\
---------------------------------------------------------------------------

    \1\ The relevant HTSUS subheadings for fabric 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.
---------------------------------------------------------------------------

    (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 preferential 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]



Sec. 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 certificate of 
eligibility containing information demonstrating that the good satisfies 
the requirements for entry under the applicable TPL, as set forth in 
Sec. 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 information:
    (i) The legal name, address, telephone and e-mail address of the 
importer 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, telephone and e-mail address of the 
exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone and e-mail address 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 the HS nomenclature;
    (vi) The HTSUS tariff classification of the good, to six or more 
digits, as well as the applicable subheading in

[[Page 243]]

Chapter 99 of the HTSUS (9911.99.20 or 9911.99.40);
    (vii) For a single shipment, the commercial invoice number;
    (viii) For multiple shipments of identical goods, the blanket period 
in ``mm/dd/yyyy to mm/dd/yyyy'' format (12-month maximum); and
    (3) 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain and present upon request, 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, 
subchapter 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 operation necessary to preserve it in 
good condition or to transport the good to the United States; and
    This document consists of ---- pages, including 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 official of the importer or by the importer's authorized 
agent having knowledge of the relevant facts.
    (c) Language. The certificate of eligibility must be completed 
either in the English or Spanish language. If the certificate 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 eligibility. A certificate of 
eligibility may be applicable to:
    (1) A single importation of a good into the United States, including 
a single 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]



Sec. 10.423  Certificate of eligibility not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit 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 determines 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 importer 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 denial of the 
claim for preferential tariff treatment.



Sec. 10.424  Effect of noncompliance; failure to provide documentation regarding transshipment of non-originating cotton or man-made fiber fabric or apparel 
          goods.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a 
certificate of eligibility under Sec. 10.422 of this subpart, the port 
director may deny preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential tariff treatment to a good for which a TPL

[[Page 244]]

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 director, copies of 
documents demonstrating to the satisfaction of the port director that 
the requirements set forth in Sec. 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]



Sec. 10.425  Transit and transshipment of non-originating cotton or man-made fiber fabric or apparel goods.

    (a) General. A good will not be considered 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 subsequent to that production the good undergoes 
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 importer making a claim for 
preferential tariff treatment may be required to demonstrate, to CBP's 
satisfaction, that no further production or subsequent operation, other 
than permitted under paragraph (a) of this section, occurred outside the 
territories of Chile or the United States. An importer may demonstrate 
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 customs entry and exit documents.

                           Export Requirements



Sec. 10.430  Export requirements.

    (a) Submission of certification to CBP. 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 provide a copy of the 
certification (or such other medium or format approved by the Chile 
customs authority for that purpose) to CBP upon request.
    (b) Notification of errors in certification. 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 certification contains or 
is based on information that is not correct, must immediately 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 validity of the certification.
    (c) Maintenance of records--(1) General. 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 
certification was signed, all records and supporting documents relating 
to the origin of a good for which the certification 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 production 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 accordance 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 Sec. 163.5 of this 
chapter.
    (3) Availability of records. For purposes of determining compliance 
with the provisions of this part, the exporter's or producer's records 
required to be maintained under this section must be stored and made 
available for examination and inspection by the port director or other 
appropriate CBP officer in the same manner as provided in part 163 of 
this chapter.

[[Page 245]]



Sec. 10.431  Failure to comply with requirements.

    The port director may apply such measures as the circumstances may 
warrant where an exporter or a producer in the United States fails to 
comply with any requirement of this part. Such measures may include the 
imposition of penalties pursuant to 19 U.S.C. 1508(g) for failure to 
retain records required to be maintained under Sec. 10.430.

                   Post-Importation Duty Refund Claims



Sec. 10.440  Right to make post-importation 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 procedures set forth in Sec. 10.441 of this 
subpart. Subject to the provisions of Sec. 10.416 of this subpart, CBP 
may refund any excess duties by liquidation or reliquidation of the 
entry covering the good in accordance with Sec. 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]



Sec. 10.441  Filing procedures.

    (a) Place of filing. A post-importation claim for a refund under 
Sec. 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-importation 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 Sec. 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 summary or equivalent 
documentation to any other person. If such documentation 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 protest 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]



Sec. 10.442  CBP processing procedures.

    (a) Status determination. After receipt of a post-importation claim 
under Sec. 10.441 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 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 refund 
filed under this subpart until the decision on the protest becomes 
final. If a summons involving the tariff classification 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 refund under this 
subpart in connection with the liquidation of the entry.
    (2) Liquidated 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 been liquidated, whether or not the liquidation 
has become final,

[[Page 246]]

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 administrative review of a protest or as a result of judicial 
review, the port director will reliquidate the entry taking into account 
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 Sec. 10.441 of this subpart if the claim was 
not filed timely, if the importer has not complied with the requirements 
of Sec. 10.441 of this subpart, if the certification submitted under 
Sec. 10.441(b)(2) of this subpart cannot be accepted as valid (see 
Sec. 10.413 of this subpart), or if, following initiation of an origin 
verification under Sec. 10.470 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 exists upon 
which preferential tariff treatment may be denied under Sec. 10.470 of 
this subpart.
    (2) Unliquidated entry. If the port director determines that a claim 
for a refund filed under this subpart should be denied and the entry 
covering the good has not been liquidated, the port director 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 
importer in writing or via an authorized electronic data interchange 
system.
    (3) Liquidated entry. If the port director determines that a claim 
for a refund 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 
administrative 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 director will give the importer notice 
of the denial and the reason for the denial in writing or via an 
authorized electronic 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]

                             Rules of Origin



Sec. 10.450  Definitions.

    For purposes of Sec. Sec. 10.450 through 10.463 of this subpart:
    (a) Adjusted value. ``Adjusted value'' means the value determined in 
accordance with Articles 1 through 8, Article 15, and the corresponding 
interpretative 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 merchandise from the country of 
exportation to the place of importation and the value of packing 
materials and containers for shipment as defined in Sec. 10.450(m) of 
this subpart;
    (b) Exporter. ``Exporter'' means a person who exports goods from the 
territory of a Party;
    (c) Fungible goods or materials. ``Fungible 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 
Accounting Principles'' means the principles, rules, and procedures, 
including both broad and specific guidelines, that define the accounting 
practices accepted in the territory of a Party;
    (e) Good. ``Good'' means any merchandise, 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 Parties;
    (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 vessels registered or recorded with a Party and flying its flag;

[[Page 247]]

    (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 person of a Party from the seabed or 
beneath 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 processed 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 territory of one or both of the 
Parties, provided such goods are fit only for the recovery 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 
exclusively from goods referred to in paragraphs (f)(1) through (f)(10) 
of this section, or from their derivatives, at any stage of production;
    (g) Importer. ``Importer'' means a person who imports goods into the 
territory 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 production of a good;
    (j) Material. ``Material'' means a good that is used in the 
production of another good, including a part, ingredient, or indirect 
material;
    (k) Non-originating good. ``Non-originating good'' means a good that 
does not qualify as originating under this subpart;
    (l) Non-originating material. ``Non-originating material'' means a 
material that does not qualify as originating 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 materials 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, manufacturing, processing, 
assembling, or disassembling 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 recovered parts 
in the production of a remanufactured good of Annex 4.18, US-CFTA;
    (q) Remanufactured goods. ``Remanufactured goods'' means industrial 
goods assembled in the territory of a Party, listed in Annex 4.18, US-
CFTA, that:
    (1) Are entirely or partially comprised 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-produced material'' means a 
material that is produced by the producer of a good and used in the 
production of that good; and
    (s) Value. ``Value'' means the value of a good or material for 
purposes of calculating 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]



Sec. 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:

[[Page 248]]

    (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 applicable requirements 
of this subpart, and
    (1) Each of the non-originating materials used in the production of 
the good undergoes an applicable change in tariff classification 
specified in General Note 26(n), HTSUS, and
    (2) The good otherwise satisfies any applicable regional value 
content or other requirements specified in General Note 26(n), HTSUS; or
    (c) The good is produced entirely in the territory of Chile or the 
United States, or both, exclusively from originating materials.



Sec. 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 undergone:
    (a) Simple combining or packaging operations; or
    (b) Mere dilution with water or with another substance that does not 
materially alter the characteristics of the good or material.



Sec. 10.453  Treatment of textile and apparel 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 Interpretation 3, 
HTSUS, will not be regarded 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.



Sec. 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 otherwise specified in the note.
    (a) Build-down method. For the build-down method, the regional value 
content must be calculated on the basis of the formula RVC = ((AV-VNM)/
AV) x 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) x 
100, where RVC is the regional value content, expressed as a percentage; 
AV is the adjusted value; and VOM is the value of originating materials 
used by the producer in the production of the good.



Sec. 10.455  Value of materials.

    (a) Calculating the regional value content. For purposes of 
calculating the regional value content of a good under General Note 
26(n), HTSUS, and for purposes of applying the de minimis (see Sec. 
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 adjusted value of the material with respect to that importation;
    (2) In the case of a material acquired in the territory where the 
good is produced, 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--
    (i) All expenses incurred in the growth, production or manufacture 
of the material, including general expenses, 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 production of the material, 
including general expenses, and
    (ii) A reasonable amount for profit.
    (b)  Permissible additions to, and deductions from, the value of 
materials. The

[[Page 249]]

value of materials may be adjusted as follows:
    (1) For originating materials, the following 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 location of the producer;
    (ii) Duties, taxes and customs brokerage 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, refundable or otherwise 
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 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 location of the producer;
    (ii) Duties, taxes and customs brokerage 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, refundable or otherwise 
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-products; and
    (iv) The cost of originating materials used in the production of the 
non-originating 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 recorded and maintained in 
accordance with the generally accepted accounting principles applicable 
in the territory of the Party in which the good is produced (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]



Sec. 10.456  Accessories, spare parts or tools.

    Accessories, spare parts or tools that form part of the good's 
standard accessories, spare parts or tools and are delivered 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.



Sec. 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 method. 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 recognized in the generally accepted 
accounting 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 fungible goods or materials 
must continue to use that method for those fungible goods or materials 
throughout the fiscal 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]



Sec. 10.458  Accumulation.

    (a) Originating goods or materials of Chile or the United States 
that are incorporated 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

[[Page 250]]

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 requirements of 
Sec. 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]



Sec. 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 considered to be an 
originating good if--
    (1) The value of all non-originating materials that are used in the 
production of the good and do not undergo the applicable change in 
tariff classification 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 applicable requirements of General Note 
26(n), HTSUS.
    (b) Paragraph (a) of this section does not apply to:
    (1) A non-originating material provided for in Chapter 4 of the 
Harmonized System, or a non-originating dairy preparation containing 
over 10 percent by weight of milk solids provided for in subheadings 
1901.90 or 2106.90 of the Harmonized System, that is used in the 
production of a good provided for in Chapter 4 of the Harmonized System;
    (2) A non-originating material provided for in Chapter 4 of the 
Harmonized System, or non-originating dairy preparations containing over 
10 percent by weight of milk solids provided 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 provided 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 preparations 
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 System; beverages containing milk 
provided 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 provided for in heading 0805 of the 
Harmonized System or subheadings 2009.11 through 2009.30 of the 
Harmonized System that is used in the production of a good provided for 
in subheadings 2009.11 through 2009.30 of the Harmonized System, or in 
fruit or vegetable juice of any single fruit or vegetable, fortified 
with minerals or vitamins, concentrated or unconcentrated, provided for 
in subheadings 2106.90 or 2202.90 of the Harmonized System;
    (4) A non-originating material provided for in Chapter 15 of the 
Harmonized 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 provided for in heading 1701 of the 
Harmonized System that is used in the production of a good provided for 
in headings 1701 through 1703 of the Harmonized System;
    (6) A non-originating material provided for in Chapter 17 or in 
heading 1805 of the Harmonized System that is used in the production of 
a good provided for in subheading 1806.10 of the Harmonized System;
    (7) A non-originating material provided 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 Harmonized System; and
    (8) A non-originating material used in the production of a good 
provided for in Chapters 1 through 21 of the Harmonized System unless 
the non-originating material is provided for in a different subheading 
than the good for

[[Page 251]]

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 considered 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 classification of the good is all of the fibers in the yarn, 
fabric or group of fibers.



Sec. 10.460  Indirect materials.

    An indirect material, as defined in Sec. 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. 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 Sec. 10.451(b)(1) and General Note 26(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 
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 indirect 
materials and are considered originating without regard to where they 
are produced.

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-
39, 71 FR 76134, Dec. 20, 2006]



Sec. 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 applicable 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 
containers will be taken into account as originating or non-originating 
materials, 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 Sec. 10.455(a)(1), the value of the blister 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) x 100 (see Sec. 10.454(a) of 
this subpart), in determining 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 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 United States importer had used the 
build-up method, RVC = (VOM/AV) x 100 (see Sec. 10.454(b)), the 
adjusted value of the blister packaging would be included as part of the 
VOM, value of originating material.

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-
39, 71 FR 76134, Dec. 20, 2006]



Sec. 10.462  Packing materials and containers for shipment.

    (a) Packing materials and containers for shipment, as defined in 
Sec. 10.450(m), are to be disregarded in determining whether the non-
originating materials used in the production of the good undergo an 
applicable change in tariff classification set out in General Note 
26(n), HTSUS. Accordingly, such materials and containers do not have to 
undergo the applicable change in tariff classification even if they are 
non-originating.
    (b) Packing materials and containers for shipment, as defined in 
Sec. 10.450(m),

[[Page 252]]

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 materials and containers for shipment (whether originating or 
non-originating) 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 purchased from 
Company B in Chile. The shipping container is originating. The value of 
the shipping container determined under section Sec. 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 includes the $3 shipping 
container. The U.S. importer decides to use the build-up method, RVC = 
(VOM/AV) x 100 (see Sec. 10.454(b)), 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 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 included in the VOM, value of 
originating materials.



Sec. 10.463  Transit and transshipment.

    (a) General. A good will not be considered an originating good 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 as an originating good if subsequent to that production 
the good undergoes 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 importer making a claim that a good is 
originating may be required to demonstrate, to CBP's satisfaction, that 
no further production or subsequent operation, other than permitted 
under paragraph (a) of this section, occurred outside the territories of 
Chile or the United States. An importer may demonstrate 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 customs entry and exit documents.

                 Origin Verifications and Determinations



Sec. 10.470  Verification and justification of claim for preferential treatment.

    (a) Verification. A claim for preferential tariff treatment made 
under Sec. 10.410 of this subpart, 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 is provided with insufficient information to 
verify or substantiate the claim, the port director may deny the claim 
for preferential tariff treatment. 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 information regarding the country of 
origin of an article and its constituent materials, including, but not 
limited to, production records, supporting accounting and financial 
records, information relating 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 that documents the use of U.S. or Chilean materials in 
the production of the article subject to the verification, such as 
purchase orders, invoices, bills of lading and other shipping documents, 
customs import and clearance documents, and bills of material and 
inventory records.
    (b) Applicable accounting principles. When conducting a verification 
of origin to which Generally Accepted Accounting Principles may be 
relevant, CBP will apply and accept the Generally Accepted Accounting 
Principles

[[Page 253]]

applicable in the country of production.

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-
39, 71 FR 76134, Dec. 20, 2006]



Sec. 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 purpose of determining that a claim of origin for a textile or 
apparel good is accurate, CBP may request that the government 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 directed by The 
Committee for the Implementation of Textile Agreements (CITA), which may 
include suspending the application of preferential treatment to the 
textile or apparel good for which a claim of origin has been made. If 
CBP is unable to make the determination described in this paragraph 
within 12 months after a request for a verification, CBP may take 
appropriate action with respect to the textile and apparel good subject 
to the verification, and with respect to similar 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 regulations of the U.S. For purposes of enabling CBP to determine 
that an exporter or producer is complying with applicable customs laws, 
regulations, and procedures in cases in which CBP has a reasonable 
suspicion that a Chilean exporter or producer is engaging in unlawful 
activity relating to trade in textile and apparel goods, CBP may request 
that the government of Chile conduct a verification, regardless of 
whether a claim is made for preferential tariff treatment. A 
``reasonable suspicion'' for the purpose of this paragraph will be based 
on relevant factual information, including information of the type set 
forth in Article 5.5 of the US-CFTA, that indicates circumvention of 
applicable laws, regulations or procedures regarding trade in textile 
and apparel goods. CBP may undertake or assist in a verification under 
this paragraph 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. While a verification under this 
paragraph is being conducted, CBP may take appropriate action, as 
directed by CITA, which may include suspending the application of 
preferential tariff treatment 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 
determination described in this paragraph within 12 months after a 
request for a verification, CBP may take appropriate action with respect 
to any textile or apparel goods exported or produced by the entity 
subject to the verification, if directed by CITA.
    (c) Assistance by CBP to Chilean authorities. 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 information provided to CBP. Any 
production, trade and transit documents and other information necessary 
to conduct a verification under this section, provided to CBP by the 
government of Chile consistent with the laws, regulations, 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 commencing appropriate action 
under paragraph (a) or (b) of this section, CBP will notify the 
government of Chile. CBP may continue to take appropriate action under 
paragraph (a) or (b) of this section until it receives information 
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

[[Page 254]]

verification will be conducted principally by CBP, including through 
means described in paragraphs (a) and (b) of this section. CBP retains 
the authority to exercise its rights under paragraphs (a) and (b) of 
this section.



Sec. 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 endeavor, at the request of the government 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 regardless 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 request for a verification, Chile may take appropriate action 
with respect to the textile and apparel good subject to the 
verification, and with respect to similar goods exported or produced by 
the entity that exported or produced the good.
    (b) Procedures to determine compliance with applicable customs laws 
and regulations of Chile. CBP will endeavor to conduct a verification at 
the request of the government of Chile for purposes of enabling Chile to 
determine that the U.S. exporter or producer is complying with 
applicable customs laws, regulations, and procedures, if Chile has a 
reasonable suspicion that a U.S. exporter or producer is engaging in 
unlawful activity relating to trade in textile and apparel goods. A 
verification will be conducted under this paragraph regardless of 
whether a claim is made for preferential tariff treatment. A 
``reasonable suspicion'' for the purpose of this paragraph will be based 
on relevant factual information, including information of the type set 
forth in Article 5.5 of the US-CFTA, that indicates circumvention of 
applicable laws, regulations or procedures regarding trade in textile 
and apparel goods. If the government of Chile is unable to make the 
determination described in this paragraph within 12 months after a 
request for a verification, it may take action as permitted under its 
laws with respect to any textile or apparel goods exported or produced 
by the entity subject to the verification.
    (c) Visits by CBP. CBP may conduct visits to the premises of a U.S. 
exporter or producer or any other enterprise involved in the movement of 
textile 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 
initiative, 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 information. CBP will endeavor to 
provide to the government of Chile, consistent with U.S. laws, 
regulations, and procedures, production, trade, and transit documents 
and other information necessary 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.



Sec. 10.473  Issuance of negative origin determinations.

    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 
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 
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 Sec. Sec. 10.450 
through 10.463 of this subpart, the legal basis for the determination; 
and
    (d) A notice of intent to deny preferential tariff treatment on the 
good

[[Page 255]]

which is the subject of the determination.

[CBP Dec. 05-07, 70 FR 10873, Mar. 7, 2005, as amended by CBP Dec. 06-
39, 71 FR 76134, Dec. 20, 2006]



Sec. 10.474  Repeated false or unsupported preference claims.

    Where verification or other information reveals indications of a 
pattern of conduct by an importer of false or unsupported 
representations that a good imported into the United States qualifies as 
originating, CBP may deny subsequent 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 satisfaction 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



Sec. 10.480  General.

    Except as otherwise provided in this subpart, all criminal, civil or 
administrative penalties which may be imposed 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.



Sec. 10.481  Corrected declaration by importers.

    A U.S. importer who makes a corrected declaration under Sec. 
10.410(b) will not be subject to civil or administrative penalties for 
having made an incorrect declaration, provided that the corrected 
declaration was voluntarily made.



Sec. 10.482  Corrected certifications of origin by exporters or producers.

    Civil or administrative penalties provided 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 written 
notification pursuant to Sec. 10.430(b) with respect to the making of 
an incorrect certification.



Sec. 10.483  Framework for correcting declarations and certifications.

    (a) ``Voluntarily'' defined. For purposes 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 Sec. 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 statement setting forth the information 
specified in paragraph (c) of this section; and
    (5) In the case of a corrected declaration, accompanied or followed 
by a tender of any actual loss of duties and merchandise processing 
fees, if applicable, in accordance with paragraph (e) of this section.
    (b) Cases involving fraud. Notwithstanding paragraph (a) of this 
section, a person who acted fraudulently in making an incorrect 
declaration or certification may not make a voluntary 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 certification must be 
accompanied by a statement, submitted in writing or via an 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 declaration, identifies each affected 
import transaction, including each port of importation and the 
approximate date of each importation, and in the case of a notification 
of an incorrect certification, identifies each affected exportation 
transaction, including each port of exportation and the approximate

[[Page 256]]

date of each exportation. A U.S. producer who provides written 
notification that certain information in a certification of origin is 
incorrect and who is unable to identify the specific export transactions 
under this paragraph must provide as much information concerning those 
transactions as the producer, by the exercise of good faith and due 
diligence, is able to obtain;
    (3) Specifies the nature of the incorrect statements or omissions 
regarding the declaration or certification; and
    (4) Sets forth, to the best of the person's knowledge, the true and 
accurate information or data which should have been covered by or 
provided in the declaration or certification, and states that the person 
will provide any additional pertinent information or data which is 
unknown at the time of making the corrected declaration or certification 
within 30 calendar days or within 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 purposes 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 paragraph (c) of this section, provided that:
    (1) CBP is satisfied that the information was provided before the 
commencement of a formal investigation; and
    (2) The information provided includes, orally or in writing, 
substantially the same information as that specified in paragraph (c) of 
this section.
    (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 calendar 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 
necessary to calculate the duties owed.
    (f) Applicability of prior disclosure provisions. Where a person 
fails to meet the requirements of this section because the correction of 
the declaration or the written notification of an incorrect 
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 Sec. 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



Sec. 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 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 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 condition 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 preparation or manufacture of finished 
goods.
    (c) Documentation. The provisions of Sec. 10.8(a), (b), and (c) 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 Chile after 
having been exported for repairs or alterations and which are claimed to 
be duty free.

[[Page 257]]



         Subpart I_United States-Singapore Free Trade Agreement

    Source: CBP Dec. 07-28, 72 FR 31995, June 11, 2007, unless otherwise 
noted.

                           General Provisions



Sec. 10.501  Scope.

    This subpart implements the duty preference and related customs 
provisions 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 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 
implementing certain aspects of the SFTA and the Act are contained in 
parts 24, 162, and 163 of this chapter.



Sec. 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 treatment. ``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 merchandise 
processing fee;
    (b) Customs duty. ``Customs duty'' includes any customs or import 
duty and a charge of any kind imposed in connection with the importation 
of a good, including any form of surtax or surcharge in connection with 
such importation, but, for purposes of implementing 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 
Party'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 
Agriculture.
    (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 profit, and whether 
privately-owned or governmentally-owned, including any corporation, 
trust, partnership, sole proprietorship, joint venture, or other 
association;
    (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 System, including its 
General Rules of Interpretation, 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 
classification number under the Harmonized System;
    (i) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the 
United States as promulgated by the U.S. International Trade Commission;
    (j) Indirect material. ``Indirect material'' means a good used in 
the production, testing, or inspection of a good in the territory of the 
United States or Singapore but not physically incorporated into the 
good, or a good used in the maintenance of buildings or the operation of 
equipment associated with the production of a good in the territory of 
the United States or Singapore, including:
    (1) Fuel and energy;
    (2) Tools, dies, and molds;

[[Page 258]]

    (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 equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, 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 incorporated into the good but 
whose use in the production of the good can reasonably be demonstrated 
to be a part of that production;
    (k) Originating. ``Originating'' means qualifying for preferential 
tariff treatment under the rules of origin set out in SFTA Chapter Three 
(Rules of Origin) and General Note 25, HTSUS;
    (l) Party. ``Party'' means the United States or the Republic of 
Singapore;
    (m) Person. ``Person'' means a natural person or an enterprise;
    (n) Preferential tariff treatment. ``Preferential 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 classification number under the Harmonized System;
    (p) Tariff preference level. ``Tariff preference level'' means a 
quantitative limit for certain non-originating textiles and textile 
apparel goods that may be entitled to preferential tariff treatment 
based on the goods meeting the production requirements set forth in 
Sec. 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 Textiles 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 territorial sea as well as the maritime zones beyond the territorial 
sea, including the seabed and subsoil over which the Republic of 
Singapore exercises sovereign rights or jurisdiction under its national 
laws and international law for the purpose of exploration 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 resources; and
    (s) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994.

                           Import Requirements



Sec. 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 
possession that the good qualifies as an originating 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 Sec. 10.532 of this subpart), the claim is made by including on the 
entry summary, or equivalent documentation, 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 entry summary, or 
equivalent documentation, the letters ``SG'' as a prefix to the 
subheading of the HTSUS under which each qualifying good is classified, 
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 importer must promptly correct the claim and pay any 
duties that may be

[[Page 259]]

due. The importer must submit a statement either in writing or via an 
authorized electronic data interchange system to the CBP office where 
the original claim was filed specifying the correction (see Sec. Sec. 
10.561 and 10.562 of this subpart).



Sec. 10.511  Supporting statement.

    (a) Contents. An importer who makes a claim under Sec. 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 
statement 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 information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good;
    (ii) The legal name, address, telephone, and e-mail address (if any) 
of the responsible official or authorized agent of the importer signing 
the supporting statement (if different from the information required by 
paragraph (a)(2)(i) of this section);
    (iii) The legal name, address, telephone, and e-mail address (if 
any) of the exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone, 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 detailed 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 classification rule for the 
good set forth in General Note 25(o), HTSUS;
    (vii) The applicable rule of origin set forth in General Note 25, 
HTSUS, under which the good qualifies as an originating good; and
    (3) 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain and present upon request, 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 origin 
requirements specified for those goods in the United States-Singapore 
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; and
    This document consists of ------ pages, including 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 statement required to be submitted 
under paragraph (a) of this section must be completed in the English 
language.
    (d) Applicability of supporting statement. The supporting statement 
required to be submitted under paragraph (a) of this section may be 
applicable to:
    (1) A single importation of a good into the United States, including 
a single 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 statement. For purposes of this paragraph, ``identical 
goods'' means goods that are the same in all respects relevant to the 
particular rule of origin that qualifies the goods as originating.



Sec. 10.512  Importer obligations.

    (a) General. An importer who makes a claim under Sec. 10.510(a) of 
this subpart is responsible for the truthfulness of the claim and of all 
the information and

[[Page 260]]

data contained in the supporting statement provided for in Sec. 10.511 
of this subpart, for submitting any supporting documents requested by 
CBP, and for the truthfulness of the information contained in those 
documents. However, 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 Sec. Sec. 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 exporter or producer of business 
confidential or other sensitive information, including cost and sourcing 
information.
    (b) Compliance. In order to make a claim for preferential tariff 
treatment under Sec. 10.510(a) of this subpart, the importer:
    (1) Must have records that explain how the importer came to the 
conclusion that the good qualifies for preferential 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 applicable rules of origin set forth in General Note 25, 
HTSUS, and in this subpart. Those records may include a properly 
completed importer's supporting statement as set forth in Sec. 10.511 
of this subpart; and
    (2) May be required to present evidence that the conditions set 
forth in Sec. 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 statement based on information 
provided by an exporter or producer will not relieve the importer of the 
responsibility referred to in the first sentence of paragraph (a) of 
this section.



Sec. 10.513  Supporting statement not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a supporting 
statement under Sec. 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 determines 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.



Sec. 10.514  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good imported into the United States under Sec. 10.510(a) of this 
subpart must maintain, for five years after the date of importation of 
the good, any records and documents that the importer 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) Applicability of other recordkeeping requirements. The records 
and documents referred to in paragraph (a) of this section 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.
    (c) Method of maintenance. The records and documents referred to in 
paragraph (a) of this section must be maintained by importers as 
provided in Sec. 163.5 of this chapter.

[[Page 261]]



Sec. 10.515  Effect of noncompliance; failure to provide documentation regarding third country transportation.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a complete 
supporting statement under Sec. 10.511 of this subpart, when requested, 
the port director may deny preferential treatment to the imported good.
    (b) Failure to provide documentation regarding third country 
transportation. Where the requirements for preferential treatment set 
forth elsewhere in this subpart are met, the port director nevertheless 
may deny preferential treatment to an originating good if the good is 
shipped through or transshipped in a country other than Singapore or the 
United States, and the importer of the good does not provide, at the 
request of the port director, evidence demonstrating to the satisfaction 
of the port director that the conditions set forth in Sec. 10.542 of 
this subpart were met.

                         Tariff Preference Level



Sec. 10.520  Filing of claim for tariff preference level.

    A cotton or man-made fiber apparel good described in Sec. 10.521 of 
this subpart that does not qualify as an originating good under Sec. 
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 importer must include on the entry 
summary, or equivalent documentation, the applicable tariff item in 
Chapter 99 of the HTSUS (9910.61.01 through 9910.61.89) and the 
applicable subheading in Chapter 61 or 62 of the HTSUS under which each 
non-originating cotton or man-made fiber apparel 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 certificate of eligibility as set forth in Sec. 
10.522 of this subpart.



Sec. 10.521  Goods eligible for tariff preference level claims.

    Goods eligible for a TPL claim consist of cotton or man-made fiber 
apparel goods provided for in Chapters 61 and 62 of the HTSUS that are 
both cut (or knit-to-shape) and sewn or otherwise assembled in Singapore 
from fabric or yarn produced or obtained outside the territory of 
Singapore or the United States, and that meet the applicable conditions 
for preferential tariff treatment under the SFTA, other than the 
condition that they are originating goods. The preferential tariff 
treatment is limited to the quantities specified in U.S. Note 13, 
Subchapter X, Chapter 99, HTSUS.



Sec. 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 Singapore, 
demonstrating that the good is eligible for entry under the applicable 
TPL, as set forth in Sec. 10.521 of this subpart.

                             Rules of Origin



Sec. 10.530  Definitions.

    For purposes of Sec. Sec. 10.530 through 10.542:
    (a) Adjusted value. ``Adjusted value'' means the value determined in 
accordance with Articles 1 through 8, Article 15, and the corresponding 
interpretative notes of the Customs Valuation Agreement, adjusted, if 
necessary, to exclude:
    (1) Any costs, charges, or expenses incurred for transportation, 
insurance and related services incident to the international shipment of 
the merchandise 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 (j) of this section;
    (b) Exporter. ``Exporter'' means a person who exports goods from the 
territory of a Party;
    (c) Fungible goods or materials. ``Fungible goods or materials'' 
means goods or materials, as the case may be, that are interchangeable 
for commercial

[[Page 262]]

purposes and the properties of which are essentially identical;
    (d) Generally Accepted Accounting Principles. ``Generally Accepted 
Accounting principles'' means the recognized consensus or substantial 
authoritative support in the territory of a Party, with respect to the 
recording of revenues, expenses, costs, assets, and liabilities, the 
disclosure of information, and the preparation of financial statements. 
These standards may encompass broad guidelines of general application as 
well as detailed standards, practices, and procedures;
    (e) Good. ``Good'' means any merchandise, 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 Parties;
    (4) Goods obtained from hunting, trapping, fishing, or aquaculture 
conducted in the territory of one or both of the Parties;
    (5) Goods (fish, shellfish and other marine life) taken from the sea 
by vessels 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 person of a Party from the seabed or 
beneath 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 processed 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 territory of one or both of the 
Parties, provided such goods are fit only for the recovery 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 referred to in paragraphs (f)(1) through (f)(9) of this section or 
from the derivatives of such goods;
    (g) Material. ``Material'' means a good that is used in the 
production of another good;
    (h) Non-originating good. ``Non-originating good'' means a good that 
does not qualify as originating under General Note 25, HTSUS;
    (i) Non-originating material. ``Non-originating material'' means a 
material that does not qualify as originating under General Note 25, 
HTSUS;
    (j) 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 materials and containers in which a good is 
packaged for retail sale;
    (k) Producer. ``Producer'' means a person who grows, raises, mines, 
harvests, fishes, traps, hunts, manufactures, processes, assembles or 
disassembles a good;
    (l) Production. ``Production'' means growing, mining, harvesting, 
fishing, raising, trapping, hunting, manufacturing, processing, 
assembling, or disassembling 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 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 recovered 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

[[Page 263]]

related parties in accordance with Article 15.4 of the Customs Valuation 
Agreement;
    (o) Remanufactured good. ``Remanufactured 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-produced 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 calculating customs duties or for purposes of applying this 
subpart.



Sec. 10.531  Originating goods.

    Except as provided in Sec. 10.543 of this subpart, a good imported 
into the customs 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 undergoes 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 General Note 25(o), HTSUS; or
    (c) The good, in its condition as imported into the United States, 
is enumerated as an Integrated Sourcing Initiative good in General Note 
25(m), HTSUS, and is imported from the territory of Singapore.



Sec. 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 imported, is both classified in a 
tariff provision enumerated in the first column of General Note 25(m), 
HTSUS, and described opposite that tariff provision in the list of 
information technology articles 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 Sec. 
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 Singapore will not be considered an 
originating material for purposes of determining the eligibility for 
preferential tariff treatment of such other good unless:
    (1) The good enumerated in General Note 25(m), HTSUS, satisfies an 
applicable 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 territory of the United States 
prior to being used in the production of a good in Singapore.



Sec. 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 considered 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 applicable 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 calculating the value of 
non-originating materials for any applicable regional value content 
requirement for the good under General Note 25(o), HTSUS; and

[[Page 264]]

    (3) The good meets all other applicable requirements of General Note 
25, HTSUS.
    (b) Paragraph (a) does not apply to:
    (1) A non-originating material provided 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 provided 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 provisions: Subheading 
1901.10, 1901.20 or 1901.90; heading 2105; or subheading 2106.90, 
2202.90 or 2309.90;
    (3) A non-originating material provided 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 provided for in Chapter 15, HTSUS, 
that is used in the production of a good provided for in headings 1501 
through 1508, 1512, 1514 or 1515, HTSUS;
    (5) A non-originating material provided for in heading 1701, HTSUS, 
that is used in the production of a good provided for in headings 1701 
through 1703, HTSUS;
    (6) A non-originating material provided 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 provided 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, unless 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 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 
25(o), HTSUS, will nevertheless be considered 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. 
Notwithstanding the preceding sentence, 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 in the territory 
of a Party.



Sec. 10.534  Accumulation.

    (a) Originating materials of Singapore or the United States that are 
used in the production of 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 produced in the territory of one or both of the 
Parties by one or more producers, will be considered an originating good 
if the good satisfies:
    (1) The applicable requirements of Sec. 10.531 of this subpart and 
General Note 25, HTSUS; or
    (2) The provisions of Sec. 10.532 of this subpart.



Sec. 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 preferential 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 basis of the formula RVC = ((AV 
-VNM)/AV) x 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 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

[[Page 265]]

must be calculated on the basis of the formula RVC = (VOM /AV) x 100, 
where RVC is the regional value content, expressed as a percentage; AV 
is the adjusted value; 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.



Sec. 10.536  Value of materials.

    (a) Calculating the value of materials. Except as provided in Sec. 
10.541, for purposes of calculating the regional value content of a good 
under General Note 25(o), HTSUS, and for purposes of applying the de 
minimis (see Sec. 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 adjusted 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 material to which 
paragraph (a)(3) of this section applies, the adjusted value of the 
material with reasonable modifications to the provisions of the Customs 
Valuation Agreement so as to permit their application to the domestic 
acquisition by the producer. Such reasonable modifications include, but 
are not limited to, treating a domestic purchase by the producer as if 
it were a sale for export to the country of importation; or

    Example 1. The producer in Singapore purchases material x from an 
unrelated seller in Singapore for $100. Under the provisions of Article 
1 of the Customs Valuation Agreement, transaction value is the price 
actually paid or payable for the goods when sold for export to the 
country of importation adjusted in accordance with the provisions of 
Article 8. In order to apply Article 1 to this domestic purchase by the 
producer, such purchase 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 provisions of Article 
8. In this example, it is irrelevant whether material x was initially 
imported into Singapore by the seller (or by anyone else). So long as 
the producer acquired material x in Singapore, it is intended 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, except 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 exported at or about 
the same time as the goods being valued. In order to permit the 
application of Article 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 producer in Singapore. Thus, if the seller of 
material x also sold an identical material to another buyer in Singapore 
without restrictions, that other sale would be used to determine the 
adjusted value of material x.

    (3) In the case of a self-produced material, or in a case in which 
the relationship between the producer of the good and the seller of the 
material influenced the price actually paid or payable for the material, 
including a material obtained without charge, the sum of:
    (i) All expenses incurred in the production of the material, 
including general expenses; and
    (ii) A reasonable amount for profit.
    (b) Permissible additions to, and deductions from, the value of 
materials--(1) Additions to originating materials. For originating 
materials, the following 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 location of the producer;
    (ii) Duties, taxes, and customs brokerage 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 otherwise 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 by-product; and
    (2) Deductions from non-originating materials. For non-originating 
materials, if included under paragraph (a) of this

[[Page 266]]

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 location of the producer;
    (ii) Duties, taxes, and customs brokerage fees on the material paid 
in one or both of the Parties, other than duties and taxes that are 
waived, refunded, refundable or otherwise 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-products;
    (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-originating 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 recorded and maintained in 
accordance with the Generally Accepted Accounting Principles applicable 
in the territory of the country in which the good is produced (whether 
Singapore or the United States).



Sec. 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 originating 
good, and will be disregarded in determining whether all the non-
originating materials used in the production 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 originating or non-originating materials, as the case may be, 
in calculating the regional value content of the good under Sec. 10.535 
of this subpart.



Sec. 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 material is originating either 
based on the physical segregation of each fungible good or material or 
by using an inventory management method. 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 recognized in the Generally Accepted 
Accounting 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 fungible goods or materials 
must continue to use that method for those fungible goods or materials 
throughout the fiscal year of that person.



Sec. 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-originating materials used in the production 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 
content requirement, the value of such packaging materials and 
containers will be taken into account as originating or non-originating 
materials, as the case may be, in calculating the regional value content 
of the good.

    Example 1. Singaporean Producer A of good C imports 100 non-
originating blister packages to be used as retail packaging for good C. 
As provided in Sec. 10.536(a)(1) of this subpart, the value of the 
blister packages is their adjusted value, which in this case is $10. 
Good C has a regional value content requirement.

[[Page 267]]

The United States importer of good C decides to use the build-down 
method, RVC=((AV-VNM)/AV) x 100 (see Sec. 10.535(b) of this subpart), 
in determining 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 
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) x 100 (see Sec. 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.



Sec. 10.540  Packing materials and containers for shipment.

    (a) Packing materials and containers for shipment, as defined in 
Sec. 10.530(j) of this subpart, are to be disregarded in determining 
whether the non-originating materials used in the production of the good 
undergo an applicable change in tariff classification set out in General 
Note 25(o), HTSUS. Accordingly, such materials and containers are not 
required to undergo the applicable change in tariff classification even 
if they are non-originating.
    (b) Packing materials and containers for shipment, as defined in 
Sec. 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 materials and containers for 
shipment (whether originating or non-originating) 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 Sec. 10.536(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 container. The United States importer decides to use the 
build-up method, RVC=(VOM/AV) x 100 (see Sec. 10.535(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 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 included in the VOM, value of originating materials.



Sec. 10.541  Indirect materials.

    An indirect material, as defined in Sec. 10.502(j) of this subpart, 
will be considered 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 producer 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 Sec. 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 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 
indirect materials and are considered originating without regard to 
where they are produced.



Sec. 10.542  Third country transportation.

    (a) General. A good will not be considered 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 outside the 
territories of the Parties, 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 a Party.
    (b) Documentary evidence. An importer making a claim that a good is 
originating may be required to demonstrate, to CBP's satisfaction, that 
no further production or subsequent operation, other than permitted 
under paragraph (a) of this section, occurred outside the territories of 
the Parties.

[[Page 268]]

An importer may demonstrate 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, 
receiving and inventory records, and customs entry and exit documents.



Sec. 10.543  Certain apparel goods made from fabric or yarn not available in commercial quantities.

    Notwithstanding the provisions of Sec. 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 origin, designated by the Committee for 
the Implementation of Textile Agreements (``CITA'') as not available in 
commercial quantities in a timely manner in the United States. Such 
designations 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 notices to fabric or yarn formed in the United States 
will be interpreted as also including fabric or yarn formed in 
Singapore.
---------------------------------------------------------------------------

    \1\ These designations are set forth in notices 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 September 5, 2002 (67 FR 56806).
---------------------------------------------------------------------------

                 Origin Verifications and Determinations



Sec. 10.550  Verification and justification of claim for preferential treatment.

    (a) Verification. A claim for preferential treatment made under 
Sec. 10.510(a) of this subpart, 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 is provided 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 treatment 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 arrange for the exporter or 
producer to provide information directly to CBP;
    (4) Visits to the premises of the exporter or producer in Singapore, 
in accordance with procedures that the Parties adopt pertaining to 
verification; and
    (5) Such other procedures as the Parties may agree.
    (b) Applicable accounting principles. When conducting a verification 
of origin to which Generally Accepted Accounting Principles may be 
relevant, CBP will apply and accept the Generally Accepted Accounting 
Principles applicable in the country of production.



Sec. 10.551  Issuance of negative origin determinations.

    If, as a result of an origin verification initiated under Sec. 
10.550 of this subpart, CBP denies a claim for preferential treatment 
made under Sec. 10.510(a) of this subpart, it will issue a 
determination in writing or via an authorized 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 25, HTSUS, and in Sec. Sec. 10.530 
through 10.543 of this subpart, the legal basis for the determination.

[[Page 269]]



Sec. 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 written request from the Government of Singapore containing a brief 
statement of the matter at issue and the cooperation requested, CBP will 
promptly request from a U.S. enterprise and provide to the Government of 
Singapore, to the extent available, all correspondence, reports, bills 
of lading, invoices, order confirmations, and other documents or 
information relevant to circumvention that the Government of Singapore 
considers may have taken place.
    (b) Circumvention defined. For purposes of this section and Sec. 
10.554 of this subpart, ``circumvention'' means providing a false claim 
or false information for the purpose of, or with the effect 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, prohibitions, restrictions, trade remedies, including 
antidumping or countervailing duties, or safeguard measures, or in 
obtaining preferential tariff treatment. Examples of circumvention 
include: Illegal transshipment; rerouting; fraud; false claims 
concerning country of origin, fiber content, quantities, description, or 
classification; falsification of documents; and smuggling.



Sec. 10.553  Textile and apparel site visits.

    (a) Visits to enterprises of Singapore. U.S. officials may undertake 
to conduct 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 Agreements (CITA), exclude from the territory 
of the United States textile or apparel 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 enterprise that textile or apparel goods it produces or has 
produced are originating goods or products of Singapore.



Sec. 10.554  Exclusion of textile or apparel goods for intentional circumvention.

    (a) General. If CITA finds that an enterprise 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 enterprise for a period no 
longer than the applicable period described in paragraph (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 circumvention is made by CITA and will remain in effect for the 
following applicable 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 subsequent 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 finding, 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.

                                Penalties



Sec. 10.560  General.

    Except as otherwise provided in this subpart, all criminal, civil or 
administrative penalties which may be imposed on U.S. importers for 
violations of the customs and related laws and regulations will also 
apply to U.S. importers for violations of the laws and regulations 
relating to the SFTA.

[[Page 270]]



Sec. 10.561  Corrected claim or supporting statement.

    An importer who makes a corrected claim under Sec. 10.510(b) will 
not be subject to civil or administrative penalties under 19 U.S.C. 1592 
for having made an incorrect claim or supporting statement, provided 
that the corrected claim is promptly and voluntarily made.



Sec. 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 subpart, the making 
of a corrected claim or supporting statement will be deemed to have been 
done promptly and voluntarily 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 following 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 
meaning of Sec. 162.74(g) of this chapter; or
    (B) Before any of the events specified in Sec. 162.74(i) of this 
chapter has occurred; or
    (C) Within 30 days after the importer initially becomes aware that 
the incorrect claim is not valid; and
    (2) Accompanied by a statement setting forth the information 
specified in paragraph (c) of this section; and
    (3) Accompanied or followed by a tender of any actual loss of duties 
and merchandise processing fees, if applicable, 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 meaning set 
forth in paragraph (C)(3) of appendix B to Part 171 of this chapter.
    (2) Subsequent incorrect claims. An importer who makes one or more 
incorrect claims after becoming aware that a claim involving the same 
merchandise and circumstances is invalid may not make a voluntary 
correction of the subsequent claims pursuant to paragraph (a)(1)(ii)(C) 
of this section.
    (c) Statement. For purposes of this subpart, each corrected claim 
must be accompanied by a statement, submitted 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 importation and the approximate date of each importation.
    (3) Specifies the nature of the incorrect statements or omissions 
regarding the claim; and
    (4) Sets forth, to the best of the person'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 
information or data.
    (d) Substantial compliance. For purposes of this section, a person 
will be deemed to have submitted the statement described in paragraph 
(c) of this section even though that person provided corrected 
information in a manner which does not conform to the requirements of 
the statement specified in paragraph (c) of this section, provided that 
the information submitted includes, orally or otherwise, substantially 
the same information as that specified in paragraph (c) of this section.
    (e) 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 corrected claim, or within 30 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 necessary to calculate the 
duties owed.
    (f) Applicability of prior disclosure provisions. Where a person 
fails to meet the requirements of this section, that person may 
nevertheless qualify for prior disclosure treatment under 19

[[Page 271]]

U.S.C. 1592(c)(4) and 162.74 of this chapter.

                Goods Returned After Repair or Alteration



Sec. 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 subheadings 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 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 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 condition 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 
Sec. 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 exported for repairs or alterations and 
which are claimed to be duty free.



 Subpart J_Dominican Republic_Central America_United States Free Trade 
                                Agreement

 Retroactive Preferential Tariff Treatment for Textile and Apparel Goods



Sec. 10.699  Refunds of excess customs duties.

    (a) Applicability. The Dominican Republic-Central America-United 
States Free Trade Agreement (CAFTA-DR or Agreement) was entered into by 
the governments of Costa Rica, the Dominican Republic, El Salvador, 
Guatemala, Honduras, Nicaragua, and the United States on August 5, 2004. 
The Congress approved the CAFTA-DR in the Dominican Republic--Central 
America--United States Free Trade Agreement Implementation Act (the 
Act), Public Law 109-53, 119 Stat. 462 (19 U.S.C. 4001 et seq.), as 
amended by Sec. 1634(d) of the Pension Protection Act of 2006 (Pub. L. 
109-280). Section 205 of the Act, as amended, provides for the 
retroactive 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 certain 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 warehouse for consumption on or after January 1, 2004, 
and before the date of the entry into force of the Agreement with 
respect to the last CAFTA-DR country 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 customs 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 Sec. 
203 of the Act if the good had been entered after the date of entry into 
force of the Agreement for that country; and

[[Page 272]]

    (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 reliquidation. 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 within 90 days after 
the date of the entry into force of the Agreement for the last CAFTA-DR 
country, and the request contains sufficient information to enable CBP:
    (1) To locate the entry or to reconstruct the entry if it cannot be 
located; and
    (2) To determine that the good satisfies the conditions set forth in 
paragraph (b) of this section.
    (d) Definitions. For purposes of this section:
    (1) ``Eligible CAFTA-DR country'' means a country that the United 
States Trade Representative has determined, by notice published in the 
Federal Register, to be an eligible country for purposes of section 205 
of the Act; and
    (2) ``Last CAFTA-DR country'' means, of Costa Rica, the Dominican 
Republic, El Salvador, Guatemala, Honduras, and Nicaragua, the last 
country for which the Agreement enters into force.
    (3) ``Textile or apparel good'' means a good listed in the Annex to 
the Agreement on Textiles and Clothing referred to in section 101(d)(4) 
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other than a 
good listed in Annex 3.29 of the Agreement.

[CBP Dec. 06-06, 71 FR 11306, Mar. 7, 2006, as amended by CPB Dec. 07-
26, 72 FR 29250, May 25, 2007]



           Subpart K_United States	Jordan Free Trade Agreement

    Source: CBP Dec. 07-50, 72 FR 35156, June 27, 2007, unless otherwise 
noted.

                           General Provisions



Sec. 10.701  Scope.

    This subpart implements the duty preference and related customs 
provisions 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 specified 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 
implementing certain aspects of the US-JFTA are contained in part 163 of 
this chapter.



Sec. 10.702  Definitions.

    The following definitions apply for purposes of Sec. Sec. 10.701 
through 10.712:
    (a) Claim for preferential tariff treatment. ``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 authority'' means the competent 
authority 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 entered, or withdrawn from warehouse 
for consumption, in the customs territory of the United States;
    (f) Good. ``Good'' means any merchandise, product, article, or 
material;
    (g) Harmonized System. ``Harmonized System'' means the Harmonized 
Commodity Description and Coding System, including its General Rules of 
Interpretation, 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 
classification number under the Harmonized System;

[[Page 273]]

    (i) HTSUS. ``HTSUS'' means the Harmonized 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 another good;
    (k) New or different article of commerce. ``New or different article 
of commerce'' means a good that has been substantially transformed into 
a new and different 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 classification number under the Harmonized System;
    (o) Territory. ``Territory'' means:
    (1) With respect to Jordan, the land, maritime and air space under 
its sovereignty, and the exclusive economic zone within which it 
exercises sovereign rights and 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 rights with respect to the seabed and 
subsoil and their natural resources;
    (p) Textile or apparel good. ``Textile or apparel good'' means a 
good listed in the Annex to the Agreement on Textiles and Clothing 
(commonly referred to as ``the ATC''), which is part of the WTO 
Agreement;
    (q) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994;
    (r) Wholly the growth, product, or manufacture of Jordan. ``Wholly 
the growth, product, or manufacture of Jordan'' refers both to any good 
which has been entirely grown, produced, or manufactured in Jordan and 
to all materials incorporated in a good which have been entirely grown, 
produced, or manufactured in Jordan, as distinguished from goods or 
materials imported into Jordan from another country, whether or not such 
goods or materials were substantially transformed into new or different 
articles of commerce after their importation into Jordan.

                           Import Requirements



Sec. 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 equivalent 
documentation, the symbol ``JO'' as a prefix to the subheading of the 
HTSUS under which each qualifying good is classified, or by the method 
specified for equivalent reporting via an authorized electronic data 
interchange system.



Sec. 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 declaration setting forth all pertinent information 
concerning the 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 information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good;
    (ii) The legal name, address, telephone, and e-mail address (if any) 
of the responsible official or authorized agent of the importer signing 
the declaration (if different from the information required by paragraph 
(a)(2)(i) of this section);

[[Page 274]]

    (iii) The legal name, address, telephone and e-mail address (if any) 
of the exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone and e-mail address (if any) 
of the producer of the good (if known);
    (v) A description of the good, quantity, 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 
operations;
    (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 foreign materials used in the 
good that are claimed to have been sufficiently processed in Jordan so 
as to be materials 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 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain, and present upon request, documentation 
necessary to support these representations;
    The goods comply with all the requirements for preferential tariff 
treatment specified for those goods in the United States-Jordan Free 
Trade Agreement; and
    This document consists of ---- pages, including all attachments.''

    (b) Responsible official or agent. The declaration 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 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 single 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 paragraph, ``identical 
goods'' means goods that are the same in all respects relevant to the 
production that qualifies the goods for preferential tariff treatment.



Sec. 10.705  Importer obligations.

    (a) General. An importer who makes a claim for preferential tariff 
treatment under Sec. 10.703 of this subpart:
    (1) Will be deemed to have certified that the good is eligible for 
preferential tariff treatment under the US-JFTA:
    (2) Is responsible for the truthfulness of the information and data 
contained in the declaration provided for in Sec. 10.704 of this 
subpart;
    (3) Is responsible 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 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 referred to in 
paragraph (a) of this section.



Sec. 10.706  Declaration not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a declaration under 
Sec. 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.

[[Page 275]]

    (b) Exception. If the port director determines 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 declaration 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.



Sec. 10.707  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good under Sec. 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 documents 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 Sec. 163.5 of this chapter.



Sec. 10.708  Effect of noncompliance; failure to provide documentation regarding third-country transportation.

    (a) Effect of noncompliance. If the importer fails to comply with 
any requirement under this subpart, including submission of a complete 
declaration under Sec. 10.704 of this subpart, when requested, the port 
director may deny preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding third country 
transportation. Where the requirements for preferential tariff treatment 
set forth elsewhere in this subpart are met, the port director 
nevertheless may deny preferential treatment to a good if the good is 
shipped through or transshipped in a country other than Jordan or the 
United States, and the importer of the good does not provide, at the 
request 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 Sec. 10.711(a) of this subpart.

                             Rules of Origin



Sec. 10.709  Country of origin criteria.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, a good imported directly from Jordan into the customs territory 
of the United States will be eligible for preferential tariff treatment 
under the US-JFTA only if:
    (1) The good is either:
    (i) Wholly the growth, product, or manufacture of Jordan; or
    (ii) A new or different article of commerce 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 requirement specified in 
Sec. 10.710 of this subpart.
    (b) Exceptions--(1) Combining, packaging, and diluting operations. 
No good will be considered to meet the requirements of paragraph (a)(1) 
of this section by virtue of having merely undergone simple combining or 
packaging operations, or mere dilution with water or mere dilution with 
another substance that does not materially alter the characteristics of 
the good. The principles and examples set forth in Sec. 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 classified 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 purposes of determining whether a 
textile or apparel good meets the requirements of paragraph (a)(1) of 
this section, the provisions of Sec. 102.21 of this chapter will apply.

[[Page 276]]



Sec. 10.710  Value-content requirement.

    (a) General. A good described in Sec. 10.709(a)(1)(ii) may be 
eligible for preferential tariff treatment under the US-JFTA only if the 
sum of the cost or value of the materials produced in Jordan, 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 
entered.
    (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 
materials 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 specified in Sec. 10.709(b) of this 
subpart, substantially 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 manufacture of a new 
or different article of commerce that is imported into the United 
States. Except where the context otherwise requires, the examples set 
forth in Sec. 10.196(a) of this part will apply for purposes of this 
paragraph.
    (c) Cost or value of materials--(1) Materials produced in Jordan 
defined. For purposes of paragraph (a) of this section, the words 
``materials produced in Jordan'' refer to those materials incorporated 
into a good that are either:
    (i) Wholly the growth, product, or manufacture of Jordan; or
    (ii) Subject to the exceptions specified in Sec. 10.709(b) of this 
subpart, substantially 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. 
Except where the context otherwise requires, the examples set forth in 
Sec. 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 includes:
    (A) The manufacturer's actual cost for the materials;
    (B) When not included in the manufacturer'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 spoilage, 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 exportation.
    (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 expenses;
    (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 director may ascertain or 
estimate the value thereof using all reasonable ways and means at his or 
her disposal.
    (d) Direct costs of processing operations--(1) Items included. For 
purposes of paragraph (a) of this section, 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 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, including fringe 
benefits, on-the-job training, and the cost of engineering,

[[Page 277]]

supervisory, quality control, and similar personnel;
    (ii) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific goods;
    (iii) Research, development, design, engineering, and blueprint 
costs insofar 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 directly attributable to the goods under 
consideration or are not costs of manufacturing the product. These 
include, but are not limited to:
    (i) Profit; and
    (ii) General expenses of doing business 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 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.



Sec. 10.711  Imported directly.

    (a) General. To be eligible for preferential tariff treatment under 
the US-JFTA, a good must be imported directly from Jordan into the 
customs territory of the United States. For purposes of this 
requirement, the words ``imported directly'' mean:
    (1) Direct shipment from Jordan to the United States without passing 
through the territory of any intermediate 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 intermediate 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 retail, provided that the 
goods are imported as a result of the original commercial transaction 
between the importer and the producer or the producer's sales agent; and
    (iii) Have not been subjected to operations other than loading and 
unloading, and other activities necessary to preserve the goods in good 
condition.
    (b) Documentary evidence. An importer 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 defined in paragraph (a) of this section. An 
importer may demonstrate 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, 
receiving and inventory records, and customs entry and exit documents.

                          Origin Verifications



Sec. 10.712  Verification of claim for preferential tariff treatment.

    A claim for preferential tariff treatment made under Sec. 10.703 of 
this subpart, 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 prevented 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.

[[Page 278]]

                           General Provisions



Sec. 10.761  Scope.

    This subpart implements the duty preference and related customs 
provisions 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 procedures and requirements of general 
application contained elsewhere in this chapter. Additional provisions 
implementing certain aspects of the MFTA and the Act are contained in 
parts 162 and 163 of this chapter.



Sec. 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 originating good;
    (b) Claim for preferential tariff treatment. ``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'' includes any customs or import 
duty and a charge of any kind imposed in connection with the importation 
of a good, including any form of surtax or surcharge in connection with 
such importation, 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 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; 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 material'' 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 merchandise, product, article, or 
material;
    (j) Harmonized System. ``Harmonized System (HS)'' means the 
Harmonized Commodity Description and Coding System, including its 
General Rules of Interpretation, 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 
classification number under the Harmonized System;
    (l) HTSUS. ``HTSUS'' means the Harmonized 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 origin set forth in General Note 27, HTSUS, and MFTA Chapter 
Four (Textiles 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. ``Preferential 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 classification number under the Harmonized System;

[[Page 279]]

    (r) Textile or apparel good. ``Textile or apparel good'' means a 
good listed in the Annex to the Agreement on Textiles 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 sovereignty, and the exclusive economic zone and the continental 
shelf within which it exercises sovereign rights and 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 rights with respect to the seabed and 
subsoil and their natural resources;
    (t) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994.

                           Import Requirements



Sec. 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 
documentation, the symbol ``MA'' as a prefix to the subheading of the 
HTSUS under which each qualifying good is classified, or by the method 
specified for equivalent reporting via an authorized electronic data 
interchange system.



Sec. 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 information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good;
    (ii) The legal name, address, telephone, and e-mail address (if any) 
of the responsible official or authorized agent of the importer signing 
the declaration (if different from the information required by paragraph 
(a)(2)(i) of this section);
    (iii) The legal name, address, telephone, and e-mail address (if 
any) of the exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone, 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 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 wholly the growth, product, or 
manufacture of one or both of the Parties, and a statement as to the 
value of such materials;
    (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 substantially transformed in the 
territory of one or both of the Parties, or have not

[[Page 280]]

undergone an applicable change in tariff classification specified in 
General Note 27(h), HTSUS;
    (3) 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain and present upon request, documentation 
necessary to support these representations;
    The goods comply with all the requirements for preferential tariff 
treatment specified for those goods in the United States-Morocco Free 
Trade Agreement; and
    This document consists of ----pages, including all attachments.''

    (b) Responsible official or agent. The declaration 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 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 single 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 paragraph, ``identical 
goods'' means goods that are the same in all respects relevant to the 
production that qualifies the goods for preferential tariff treatment.



Sec. 10.765  Importer obligations.

    (a) General. An importer who makes a claim for preferential tariff 
treatment under Sec. 10.763 of this subpart:
    (1) Will be deemed to have certified that the good is eligible for 
preferential tariff treatment under the MFTA;
    (2) Is responsible for the truthfulness of the information and data 
contained in the declaration provided for in Sec. 10.764 of this 
subpart; and
    (3) Is responsible 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 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 referred to in 
paragraph (a) of this section.



Sec. 10.766  Declaration not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a declaration under 
Sec. 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 determines 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 importer 
must submit such a declaration 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.



Sec. 10.767  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good under Sec. 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 documents referred to in paragraph (a) of

[[Page 281]]

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 Sec. 163.5 of this chapter.



Sec. 10.768  Effect of noncompliance; failure to provide documentation regarding transshipment.

    (a) General. If the importer fails to comply with any requirement 
under this subpart, including submission of a complete declaration under 
Sec. 10.764 of this subpart, when requested, the port director may deny 
preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential treatment to a good if the good is shipped through or 
transshipped in the territory of a country other than a Party, and the 
importer of the good does not provide, at the request of the port 
director, evidence demonstrating to the satisfaction of the port 
director that the good was imported directly from the territory of a 
Party into the territory of the other Party (see Sec. 10.777 of this 
subpart).

                             Rules of Origin



Sec. 10.769  Definitions.

    For purposes of Sec. Sec. 10.769 through 10.777:
    (a) Exporter. ``Exporter'' means a person who exports goods from the 
territory of a Party;
    (b) Generally Accepted Accounting Principles. ``Generally Accepted 
Accounting Principles'' means the recognized consensus or substantial 
authoritative support in the territory of a Party, with respect to the 
recording of revenues, expenses, costs, assets, and liabilities, the 
disclosure of information, and the preparation of financial statements. 
These standards may encompass broad guidelines of general application as 
well as detailed standards, practices, and procedures;
    (c) Good. ``Good'' means any merchandise, product, article, or 
material;
    (d) Goods wholly the growth, product, or manufacture of one or both 
of the Parties. ``Goods wholly the growth, product, 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 Parties;
    (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 vessels registered or recorded with a Party and flying its flag;
    (7) Goods produced from goods referred 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 person of a Party from the seabed or 
beneath 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 processed 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 territory of one or both of the 
Parties, provided such goods are fit only for the recovery 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 
remanufactured goods; and
    (12) Goods produced in the territory of one or both of the Parties 
exclusively from goods referred to in paragraphs (d)(1) through (d)(10) 
of this section, or from their derivatives, at any stage of production;

[[Page 282]]

    (e) Importer. Importer means a person who imports goods into the 
territory of a Party;
    (f) Indirect material. ``Indirect material'' 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 manufacture 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 manufacture of a good or used to 
operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, 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 incorporated into the good but the 
use of which in the growth, production, or manufacture of the good can 
reasonably be demonstrated to be a part of that growth, production, or 
manufacture;
    (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 manufactured in one or both of the Parties;
    (h) Material produced in the territory of one or both of the 
Parties. ``Material produced in the territory of one or both of the 
Parties'' means a good that is either wholly the growth, product, or 
manufacture of one or both of the Parties, or a new or different article 
of commerce that has been grown, produced, or manufactured in the 
territory of one or both of the Parties;
    (i) New or different article of commerce. The term ``new or 
different article of commerce'' means, except as provided in Sec. 
10.770(c) of this subpart, a good that:
    (1) Has been substantially transformed from a good or material that 
is not wholly the growth, product, of manufacture of one or both of the 
Parties; 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 
material that does not qualify as originating 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 materials 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. ``Remanufactured 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 similar to that of a like good that 
is new;
    (n) Simple combining or packaging operations. ``Simple combining or 
packaging operations'' means operations such as adding batteries to 
electronic devices, fitting together a small number of components by 
bolting, gluing, or soldering, or packing or repacking components 
together;
    (o) Substantially transformed. ``Substantially 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 manufacturing 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;

[[Page 283]]

    (2) The physical properties of the good or material are changed to a 
significant extent; or
    (3) The operation undergone by the good or material is complex by 
reason of the number of processes and materials involved and the time 
and level of skill required to perform those processes.



Sec. 10.770  Originating goods.

    (a) General. A good will be considered an originating good under the 
MFTA when imported directly from the territory 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 article of commerce that has been 
grown, produced, or manufactured in the territory of one or both of the 
Parties, is provided for in a heading or subheading of the HTSUS that is 
not covered by the product-specific rules set forth in General Note 
27(h), HTSUS, and meets the value-content requirement specified in 
paragraph (b) of this section; or
    (3) The good is provided for in a heading or subheading of the HTSUS 
covered 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 General 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 requirements specified in General Note 
27, HTSUS.
    (b) Value-content requirement. A good described in paragraph (a)(2) 
of this section will be considered an originating good under the MFTA 
only if the sum of the value of materials produced in one or both of the 
Parties, plus the direct costs of processing operations (see Sec. 
10.774 of this subpart) 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 territory of the United States.
    (c) Combining, packaging, and diluting operations. For purposes of 
this subpart, 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 Sec. 10.195(a)(2) of this part will apply equally 
for purposes of this paragraph.



Sec. 10.771  Textile or apparel goods.

    (a) De minimis. Except as provided in paragraph (a)(1) of this 
section, a textile or apparel good that is not an originating good under 
the MFTA 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 27(h), HTSUS, will be considered to be an 
originating good if the total weight of all such fibers 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 determines the tariff 
classification of the good will be considered to be an originating good 
only if such yarns are wholly formed in the territory of a Party.
    (2) Yarn, fabric, or group of fibers. For purposes of paragraph (a) 
of this section, 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 classification of the good'' means all of the 
fibers in the yarn, fabric, or group of fibers.
    (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 Interpretation 3, HTSUS, will not be 
considered 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

[[Page 284]]

the set does not exceed ten percent of the appraised value of the set.



Sec. 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 producers is an originating 
good if the good satisfies the requirements of Sec. 10.770 of this 
subpart and all other applicable requirements of General Note 27, HTSUS.



Sec. 10.773  Value of materials.

    (a) General. For purposes of Sec. 10.770(b) of this subpart and, 
except as provided in paragraph (b) of this section, the value of a 
material produced in the territory of one or both of the Parties 
includes 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 
transporting 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 resulting from the use of the 
material in the growth, production, or manufacture of the good, less the 
value of recoverable 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 between the producer of a good 
and the seller of a material influenced the price actually paid or 
payable for the material, or if there is no price actually paid or 
payable by the producer for the material, the value of the material 
produced 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 expenses;
    (2) A reasonable amount for profit; and
    (3) The freight, insurance, packing, and all other costs incurred in 
transporting the material to the producer's plant.



Sec. 10.774  Direct costs of processing operations.

    (a) Items included. For purposes of Sec. 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 manufacture of the 
good in the territory of one or both of the Parties. Such costs include, 
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 
manufacture 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 indirect materials, and 
depreciation on machinery and equipment that are allocable 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 Sec. 10.770(b) of this 
subpart, the words ``direct costs of processing operations'' do not 
include items that are not directly attributable to the good or are not 
costs of growth, production, or manufacture of the good. These include, 
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, advertising, and salesmen's salaries, commissions, or 
expenses.

[[Page 285]]



Sec. 10.775  Packaging and packing materials 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 containers for shipment are to be 
disregarded in determining whether a good qualifies as an originating 
good under Sec. 10.770 of this subpart and General Note 27, HTSUS, 
except to the extent that the value of such packaging and packing 
materials and containers may be included in meeting the value-content 
requirement specified in Sec. 10.770(b) of this subpart.



Sec. 10.776  Indirect materials.

    Indirect materials are to be disregarded in determining whether a 
good qualifies as an originating good under Sec. 10.770 of this subpart 
and General Note 27, HTSUS, except that the cost of such indirect 
materials may be included in meeting the value-content requirement 
specified in Sec. 10.770(b) of this subpart.



Sec. 10.777  Imported directly.

    (a) General. To qualify as an originating 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 territory 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 
``imported directly'' only if the good did not undergo production, 
manufacturing, 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 
outside the territories of the Parties include inspection, removal of 
dust that accumulates during shipment, ventilation, spreading out or 
drying, chilling, replacing salt, sulfur dioxide, or 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 importer 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 
submitting documentary evidence. Such evidence may include, but is not 
limited to, bills of lading, airway bills, packing lists, commercial 
invoices, receiving and inventory records, and customs entry and exit 
documents.

                         Tariff Preference Level



Sec. 10.778  Filing of claim for tariff preference level.

    A fabric or apparel good described in Sec. 10.779 of this subpart 
that does not qualify as an originating good under Sec. 10.770 of this 
subpart may nevertheless be entitled to preferential tariff treatment 
under the MFTA under an applicable tariff preference level (TPL). To 
make a TPL claim, the importer must include on the entry summary, or 
equivalent documentation, 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 
fabric or apparel good is classified.



Sec. 10.779  Goods eligible for tariff preference claims.

    The following goods are eligible for a TPL claim filed under Sec. 
10.778 of this subpart:
    (a) Fabric goods. Fabric goods provided 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 preferential 
tariff treatment under the

[[Page 286]]

MFTA, other than the condition that they are originating; and
    (b) Apparel goods. Apparel goods provided for in Chapters 61 and 62 
of the HTSUS that are cut or knit to shape, or both, and sewn or 
otherwise assembled in Morocco, regardless of the origin of the fabric 
or yarn used to produce the goods, provided that they meet the 
applicable conditions for preferential tariff treatment under the MFTA, 
other than the condition that they are originating goods.



Sec. 10.780  Transshipment of non-originating fabric or apparel goods.

    (a) General. To qualify for preferential tariff treatment under an 
applicable 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 territory 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 
``imported directly'' only if the good did not undergo production, 
manufacturing, 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 
territories of the Parties include inspection, removal of dust that 
accumulates during shipment, ventilation, spreading 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 importer 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 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 submitting 
documentary evidence. Such evidence may include, but is not limited to, 
bills of lading, airway bills, packing lists, commercial invoices, 
receiving and inventory records, and customs entry and exit documents.



Sec. 10.781  Effect of noncompliance; failure to provide documentation regarding transshipment of non-originating fabric or apparel goods.

    (a) Effect of noncompliance. If an importer of a good for which a 
TPL claim is made fails to comply with any applicable requirement under 
this subpart, the port director may deny preferential tariff treatment 
to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless 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 request of 
the port director, evidence demonstrating to the satisfaction of the 
port director that the requirements set forth in Sec. 10.780 of this 
subpart were met.

                 Origin Verifications and Determinations



Sec. 10.784  Verification and justification of claim for preferential treatment.

    (a) Verification. A claim for preferential treatment made under 
Sec. 10.763 of this subpart, including any declaration 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 director may deny the claim 
for preferential treatment.
    (b) Applicable accounting principles. When conducting a verification 
of origin to which Generally Accepted Accounting Principles may be 
relevant,

[[Page 287]]

CBP will apply and accept the Generally Accepted Accounting Principles 
applicable in the country of production.



Sec. 10.785  Special rule for verifications in Morocco of U.S. imports of textile and apparel products.

    (a) Procedures to determine whether a claim of origin is accurate. 
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 Morocco 
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 directed by The 
Committee for the Implementation of Textile Agreements (CITA), which may 
include suspending the application of preferential treatment to the 
textile or apparel good for which a claim of origin has been made. If 
CBP is unable to make the determination described in this paragraph 
within 12 months after a request for a verification, or makes a negative 
determination, CBP may take appropriate action with respect to the 
textile and apparel good subject to the verification, and with respect 
to similar 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 regulations of the United States. For purposes of enabling CBP to 
determine that an exporter or producer is complying with applicable 
customs laws, regulations, and procedures in cases in which CBP has a 
reasonable suspicion that a Moroccan exporter or producer is engaging in 
unlawful activity relating to trade in textile and apparel goods, CBP 
may request that the government of Morocco conduct a verification, 
regardless of whether a claim is made for preferential tariff treatment. 
A ``reasonable suspicion'' for the purpose of this paragraph will be 
based on relevant factual information, including information of the type 
set forth in Article 6.5.5 of the MFTA, that indicates circumvention of 
applicable laws, regulations or procedures regarding trade in textile 
and apparel goods. While a verification under this paragraph is being 
conducted, CBP may take appropriate action, as directed by CITA, which 
may include suspending the application of preferential tariff treatment 
to the textile and apparel goods exported or produced by the Moroccan 
entity where the reasonable suspicion of unlawful activity relates to 
those goods. If CBP is unable to make the determination described in 
this paragraph within 12 months after a request for a verification, or 
makes a negative determination, CBP may take appropriate action with 
respect to any textile or apparel goods exported or produced by the 
entity subject to the verification, if directed by CITA.
    (c) Assistance by U.S. officials to Moroccan authorities. U.S. 
officials may undertake or assist in a verification under this section 
by conducting visits in Morocco, along with the competent authorities of 
Morocco, to the premises of an exporter, producer or any other 
enterprise involved in the movement of textile or apparel goods from 
Morocco to the United States.
    (d) Treatment of documents and information provided to CBP. Any 
production, trade and transit documents and other information necessary 
to conduct a verification under this section, provided to CBP by the 
government of Morocco consistent with the laws, regulations, and 
procedures of Morocco, will be treated in accordance with Article 6.6 of 
the MFTA.
    (e) Notification to Morocco; continuation of appropriate action. 
Prior to commencing appropriate action under paragraph (a) or (b) of 
this section, CBP will notify the government of Morocco. CBP may 
continue to take appropriate action under paragraph (a) or (b) of this 
section until it receives information sufficient to enable it to make 
the determination described in those paragraphs.



Sec. 10.786  Issuance of negative origin determinations.

    If, as a result of an origin verification initiated under this 
subpart, CBP determines that a claim for preferential tariff treatment 
made under Sec. 10.763 of this subpart should be denied, it will issue 
a determination in writing or via an authorized electronic

[[Page 288]]

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 
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 Sec. Sec. 10.769 
through 10.777 of this subpart, the legal basis for the determination.

                                Penalties



Sec. 10.787  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 regulations will also apply to U.S. importers for violations of the 
laws and regulations relating to the MFTA.

                Goods Returned After Repair or Alteration



Sec. 10.788  Goods re-entered after repair or alteration in Morocco.

    (a) General. This section sets forth the rules that apply for 
purposes of obtaining 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 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 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 condition as exported from the United States to Morocco, 
are incomplete for their intended use and for which the processing 
operation performed in Morocco constitutes an operation that is 
performed as a matter of course in the preparation or manufacture of 
finished goods.
    (c) Documentation. The provisions of Sec. 10.8(a), (b), and (c) 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 Morocco after 
having been exported for repairs or alterations and which are claimed to 
be duty free.



          Subpart N_United States-Bahrain Free Trade Agreement

    Source: CBP Dec. 07-81, 72 FR 58515, Oct. 16, 2007, unless otherwise 
noted.

                           General Provisions



Sec. 10.801  Scope.

    This subpart implements the duty preference and related customs 
provisions 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 
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 
implementing certain aspects of the BFTA and the Act are contained in 
parts 24, 102, 162, and 163 of this chapter.



Sec. 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 originating good or a good of a Party;
    (b) Claim for preferential tariff treatment. ``Claim for 
preferential tariff treatment'' means a claim that a good

[[Page 289]]

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 
merchandise 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'' includes any customs or import 
duty and a charge of any kind imposed in connection with the importation 
of a good, including any form of surtax or surcharge in connection with 
such importation, 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 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; 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 material'' 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 merchandise, product, article, or 
material;
    (j) Harmonized System. ``Harmonized System (HS)'' means the 
Harmonized Commodity Description and Coding System, including its 
General Rules of Interpretation, 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 
classification number under the Harmonized System;
    (l) HTSUS. ``HTSUS'' means the Harmonized 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 origin set forth in General Note 30, HTSUS, and BFTA Chapter 
Three (Textiles 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. ``Preferential tariff treatment'' 
means the duty rate applicable under the BFTA to an originating good and 
an exemption from the merchandise processing fee;
    (q) Subheading. ``Subheading'' means the first six digits in the 
tariff classification 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 Textiles 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 territory of Bahrain as well as the 
maritime areas, seabed, and subsoil over which Bahrain exercises, in 
accordance with international law, sovereignty, sovereign 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 resources; and
    (t) WTO Agreement. ``WTO Agreement'' means the Marrakesh Agreement 
Establishing the World Trade Organization of April 15, 1994.

[[Page 290]]

                           Import Requirements



Sec. 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 
documentation, the symbol ``BH'' as a prefix to the subheading of the 
HTSUS under which each qualifying good is classified, or by the method 
specified for equivalent reporting via an authorized electronic data 
interchange system.



Sec. 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 information:
    (i) The legal name, address, telephone, and e-mail address (if any) 
of the importer of record of the good;
    (ii) The legal name, address, telephone, and e-mail address (if any) 
of the responsible official or authorized agent of the importer signing 
the declaration (if different from the information required by paragraph 
(a)(2)(i) of this section);
    (iii) The legal name, address, telephone and e-mail address (if any) 
of the exporter of the good (if different from the producer);
    (iv) The legal name, address, telephone 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 wholly the growth, product, or 
manufacture of one or both of the Parties, and a statement as to the 
value of such materials;
    (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 substantially transformed in the 
territory of one or both of the Parties, or have not undergone an 
applicable change in tariff classification specified in General Note 
30(h), HTSUS;
    (3) 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 understand that I 
am liable for any false statements or material omissions made on or in 
connection with this document;
    I agree to maintain and present upon request, documentation 
necessary to support these representations;
    The goods comply with all the requirements for preferential tariff 
treatment specified for those goods in the United States-Bahrain Free 
Trade Agreement; and
    This document consists of ------ pages, including all attachments.''

    (b) Responsible official or agent. The declaration 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 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 single shipment that results in the filing of one or more entries and 
a series of

[[Page 291]]

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 paragraph, ``identical 
goods'' means goods that are the same in all respects relevant to the 
production that qualifies the goods for preferential tariff treatment.



Sec. 10.805  Importer obligations.

    (a) General. An importer who makes a claim for preferential tariff 
treatment under Sec. 10.803 of this subpart:
    (1) Will be deemed to have certified that the good is eligible for 
preferential tariff treatment under the BFTA:
    (2) Is responsible for the truthfulness of the information and data 
contained in the declaration provided for in Sec. 10.804 of this 
subpart; and
    (3) Is responsible 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 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 referred to in 
paragraph (a) of this section.



Sec. 10.806  Declaration not required.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, an importer will not be required to submit a declaration under 
Sec. 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 determines 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 submit to CBP a declaration. The importer 
must submit such a declaration 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.



Sec. 10.807  Maintenance of records.

    (a) General. An importer claiming preferential tariff treatment for 
a good under Sec. 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 documents 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 Sec. 163.5 of this chapter.



Sec. 10.808  Effect of noncompliance; failure to provide documentation regarding transshipment.

    (a) General. If the importer fails to comply with any requirement 
under this subpart, including submission of a complete declaration under 
Sec. 10.804 of this subpart, when requested, the port director may deny 
preferential tariff treatment to the imported good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless may deny 
preferential treatment to a good if the good is shipped through or 
transshipped in the territory of a country other than a Party, and the 
importer of the good does not provide, at the request of the port 
director, evidence demonstrating to the satisfaction of the port 
director that the good was imported directly from

[[Page 292]]

the territory of a Party into the territory of the other Party (see 
Sec. 10.817 of this subpart).

                             Rules of Origin



Sec. 10.809  Definitions.

    For purposes of Sec. Sec. 10.809 through 10.817:
    (a) Exporter. ``Exporter'' means a person who exports goods from the 
territory of a Party;
    (b) Generally Accepted Accounting Principles. ``Generally Accepted 
Accounting Principles'' means the recognized consensus or substantial 
authoritative support in the territory of a Party, with respect to the 
recording of revenues, expenses, costs, assets, and liabilities, the 
disclosure of information, and the preparation of financial statements. 
These standards may encompass broad guidelines of general application as 
well as detailed standards, practices, and procedures;
    (c) Good. ``Good'' means any merchandise, product, article, or 
material;
    (d) Goods wholly the growth, product, or manufacture of one or both 
of the Parties. ``Goods wholly the growth, product, 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 Parties;
    (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 vessels registered or recorded with a party and flying its flag;
    (7) Goods produced from goods referred to in paragraph (d)(5) of 
this section on board factory ships registered or recorded with that 
Party and flying its flag;
    (8) Goods taken by a Party or a person of a Party from the seabed or 
beneath 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 processed 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 territory of one or both of the 
Parties, provided such goods are fit only for the recovery 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 
remanufactured goods; and
    (12) Goods produced in the territory of one or both of the Parties 
exclusively from goods referred to in paragraphs (d)(1) through (d)(10) 
of this section, 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 material'' 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 manufacture 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 manufacture of a good or used to 
operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, 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 incorporated into the good but the 
use of which in the growth, production, or manufacture of the good can 
reasonably be demonstrated to be a part of that growth, production, or 
manufacture;

[[Page 293]]

    (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 manufactured in one or both of the Parties;
    (h) Material produced in the territory of one or both of the 
Parties. ``Material produced in the territory of one or both of the 
Parties'' means a good that is either wholly the growth, product, or 
manufacture of one or both of the Parties, or a new or different article 
of commerce that has been grown, produced, or manufactured in the 
territory of one or both of the Parties;
    (i) New or different article of commerce. A ``new or different 
article of commerce'' exists when the country of origin of a good which 
is produced in a Party from foreign materials is determined to be that 
country under the provisions of Sec. Sec. 102.1 through 102.21 of this 
chapter;
    (j) Non-originating material. ``Non-originating material'' means a 
material that does not qualify as originating 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 materials 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. ``Remanufactured 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 
standards as, a like good that is new; and
    (3) Enjoys the factory warranty similar to that of a like good that 
is new;
    (n) Simple combining or packaging operations. ``Simple combining or 
packaging operations'' means operations such as adding batteries to 
electronic devices, fitting together a small number of components by 
bolting, gluing, or soldering, or packing or repacking components 
together.



Sec. 10.810  Originating goods.

    (a) General. A good will be considered an originating good under the 
BFTA when imported directly from the territory 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 article of commerce, as defined 
in Sec. 10.809(i) of this subpart, that has been grown, produced, or 
manufactured in the territory of one or both of the Parties, is provided 
for in a heading or subheading of the HTSUS that is not covered by the 
product-specific rules set forth in General Note 30(h), HTSUS, and meets 
the value-content requirement specified in paragraph (b) of this 
section; or
    (3) The good is provided for in a heading or subheading of the HTSUS 
covered 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 General 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 requirements specified in General Note 
30, HTSUS.
    (b) Value-content requirement. A good described in paragraph (a)(2) 
of this section will be considered an originating good under the BFTA 
only if the sum of the value of materials produced in one or both of the 
Parties, plus the direct costs of processing operations performed in one 
or both of the Parties, is not less than 35 percent of the appraised 
value of the good at the

[[Page 294]]

time the good is entered into the territory of the United States.
    (c) Combining, packaging, and diluting operations. For purposes of 
this subpart, 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 Sec. 10.195(a)(2) of this part will apply equally 
for purposes of this paragraph.



Sec. 10.811  Textile or apparel goods.

    (a) De minimis--(1) General. Except as provided in paragraph (a)(2) 
of this section, 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 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 30(h), HTSUS, will be considered 
to be an originating good if the total weight of all such fibers 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 determines the tariff 
classification of the good will be considered to be an originating 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 Interpretation 3, HTSUS, will not be 
considered 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.



Sec. 10.812  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 producers is an originating 
good if the good satisfies the requirements of Sec. 10.810 of this 
subpart and all other applicable requirements of General Note 30, HTSUS.



Sec. 10.813  Value of materials.

    (a) General. For purposes of Sec. 10.810(b) of this subpart and, 
except as provided in paragraph (b) of this section, the value of a 
material produced in the territory of one or both of the Parties 
includes 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 
transporting 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 resulting from the use of the 
material in the growth, production, or manufacture of the good, less the 
value of recoverable 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 between the producer of a good 
and the seller of a material influenced the price actually paid or 
payable for the material, or if there is no price actually paid or 
payable by the producer for the material, the value of the material 
produced 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 expenses;
    (2) A reasonable amount for profit; and
    (3) The freight, insurance, packing, and all other costs incurred in 
transporting the material to the producer's plant.

[[Page 295]]



Sec. 10.814  Direct costs of processing operations.

    (a) Items included. For purposes of Sec. 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 manufacture of the 
good in the territory of one or both of the Parties. Such costs include, 
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 
manufacture 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 indirect materials, and 
depreciation on machinery and equipment that are allocable 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 Sec. 10.810(b) of this 
subpart, the words ``direct costs of processing operations'' do not 
include items that are not directly attributable to the good or are not 
costs of growth, production, or manufacture of the good. These include, 
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, advertising, and salesmen's salaries, commissions, or 
expenses.



Sec. 10.815  Packaging and packing materials 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 containers for shipment are to be 
disregarded in determining whether a good qualifies as an originating 
good under Sec. 10.810 of this subpart and General Note 30, HTSUS, 
except to the extent that the value of such packaging and packing 
materials and containers may be included in meeting the value-content 
requirement specified in Sec. 10.810(b) of this subpart.



Sec. 10.816  Indirect materials.

    Indirect materials are to be disregarded in determining whether a 
good qualifies as an originating good under Sec. 10.810 of this subpart 
and General Note 30, HTSUS, except that the cost of such indirect 
materials may be included in meeting the value-content requirement 
specified in Sec. 10.810(b) of this subpart.



Sec. 10.817  Imported directly.

    (a) General. To qualify as an originating 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 territory 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 
``imported directly'' only if the good:
    (i) Remained under the control of the customs authority of the non-
Party; and
    (ii) Did not undergo production, manufacturing, 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 outside the territories of the Parties 
include inspection, removal of dust that accumulates during shipment, 
ventilation, spreading out or drying, chilling, replacing salt, sulfur 
dioxide, or 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

[[Page 296]]

units of the good, or to transport the good to the territory of a Party.
    (b) Documentary evidence. An importer 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 
submitting documentary evidence. Such evidence may include, but is not 
limited to, bills of lading, airway bills, packing lists, commercial 
invoices, receiving and inventory records, and customs entry and exit 
documents.

                         Tariff Preference Level



Sec. 10.818  Filing of claim for tariff preference level.

    A fabric, apparel, or made-up good described in Sec. 10.819 of this 
subpart that does not qualify as an originating good under Sec. 10.810 
of this subpart may nevertheless be entitled to preferential tariff 
treatment under the BFTA under an applicable tariff preference level 
(TPL). To make a TPL claim, the importer must include on the entry 
summary, 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-originating fabric or apparel good is classified.



Sec. 10.819  Goods eligible for tariff preference claims.

    The following goods are eligible for a TPL claim filed under Sec. 
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 Bahrain 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, 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 produced 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 obtained 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 produced or obtained 
outside the territory of Bahrain or the United States.



Sec. 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 Sec. 
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 
possession of the importer at the time the preferential tariff treatment 
is claimed.



Sec. 10.821  Declaration.

    (a) General. An importer who claims preferential tariff treatment on 
a non-originating cotton or man-made fiber good specified in Sec. 
10.819 of this subpart

[[Page 297]]

must submit, at the request of the port director, a declaration 
supporting such a claim for preferential tariff treatment that sets 
forth all pertinent information concerning the production of the good, 
including:
    (1) A description of the good, quantity, invoice numbers, and bills 
of lading;
    (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 provision in Sec. 10.819 of this 
subpart that forms the basis for the claim for preferential 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 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.



Sec. 10.822  Transshipment of non-originating fabric or apparel goods.

    (a) General. To qualify for preferential tariff treatment under an 
applicable 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 territory 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 
``imported directly'' only if the good:
    (i) Remained under the control of the customs authority of the non-
Party; and
    (ii) Did not undergo production, manufacturing, 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 territories of the Parties 
include inspection, removal of dust that accumulates during shipment, 
ventilation, spreading 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 importer 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 territory of a Party into the territory of the other 
Party, as that terms is defined in paragraph (a) of this section. An 
importer may demonstrate 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, 
receiving and inventory records, and customs entry and exit documents.



Sec. 10.823  Effect of non-compliance; failure to provide documentation regarding transshipment of non-originating 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 requirement under this subpart, the 
port director may deny preferential tariff treatment to the imported 
good.
    (b) Failure to provide documentation regarding transshipment. Where 
the requirements for preferential tariff treatment set forth elsewhere 
in this subpart are met, the port director nevertheless 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 request of 
the port director, evidence demonstrating to the satisfaction of the 
port director that the requirements set forth in Sec. 10.822 of this 
subpart were met.

                 Origin Verifications and Determinations



Sec. 10.824  Verification and justification of claim for preferential treatment.

    (a) Verification. A claim for preferential treatment made under 
Sec. 10.803

[[Page 298]]

of this subpart, including any declaration 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 director may deny the claim for 
preferential treatment.
    (b) Applicable accounting principles. When conducting a verification 
of origin to which Generally Accepted Accounting Principles may be 
relevant, CBP will apply and accept the Generally Accepted Accounting 
Principles applicable in the country of production.



Sec. 10.825  Issuance of negative origin determinations.

    If, as a result of an origin verification initiated under this 
subpart, CBP determines that a claim for preferential tariff treatment 
made under Sec. 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 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 
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 Sec. Sec. 10.809 
through 10.817 of this subpart, the legal basis for the determination.

                                Penalties



Sec. 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 regulations will also apply to U.S. importers for violations of the 
laws and regulations relating to the BFTA.

                Goods Returned After Repair or Alteration



Sec. 10.827  Goods re-entered after repair or alteration in Bahrain.

    (a) General. This section sets forth the rules that apply for 
purposes of obtaining 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 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 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 condition as exported from the United States to Bahrain, 
are incomplete for their intended use and for which the processing 
operation performed in Bahrain 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 
Sec. 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 exported for repairs or alterations and which 
are claimed to be duty free.



     Subpart O_Haitian Hemispheric Opportunity through Partnership 
                        Encouragement Act of 2006

    Source: CBP Dec. 07-43, 72 FR 34369, June 22, 2007, unless otherwise 
noted.

[[Page 299]]



Sec. 10.841  Applicability.

    Title V of Public Law 109-432, entitled the Haitian Hemispheric 
Opportunity through Partnership Encouragement Act of 2006 (HOPE Act), 
amended the Caribbean Basin Economic Recovery Act (the CBERA, 19 U.S.C. 
2701-2707) by adding a new section 213A (19 U.S.C. 2703A) to authorize 
the President to extend additional trade benefits to Haiti. Section 213A 
of the CBERA provides for the duty-free treatment of certain apparel 
articles and certain wiring sets from Haiti. The provisions of this 
subpart set forth the legal requirements and procedures that apply for 
purposes of obtaining duty-free treatment pursuant to CBERA section 
213A.



Sec. 10.842  Definitions.

    As used in this subpart, the following terms 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) 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;
    (b) Applicable one-year period. ``Applicable 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 December 20, 2006, and 
ending on December 19, 2007;
    (2) Second applicable one-year period. ``Second applicable one-year 
period'' means the period beginning on December 20, 2007, and ending on 
December 19, 2008;
    (3) Third applicable one-year period. ``Third applicable one-year 
period'' means the period beginning on December 20, 2008, and ending on 
December 19, 2009;
    (4) Fourth applicable one-year period. ``Fourth applicable one-year 
period'' means the period beginning on December 20, 2009, and ending on 
December 19, 2010; and
    (5) Fifth applicable one-year period. ``Fifth applicable one-year 
period'' means the period beginning on December 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 determined 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 customs territory of 
the United States;
    (f) Entity controlling production. ``Entity controlling production'' 
means an individual, corporation, partnership, association, or other 
entity or group that is not a producer and that controls the production 
process in Haiti through a contractual relationship or other indirect 
means;
    (g) Fabric component. ``Fabric component'' means a component cut 
from fabric to the shape or form of the component as it is used in the 
apparel article;
    (h) Foreign material. ``Foreign material'' means a material not 
produced in Haiti or any eligible country described in Sec. 10.844(c);
    (i) HTSUS. ``HTSUS'' means the Harmonized Tariff Schedule of the 
United States;
    (j) Knit-to-shape articles. ``Knit-to-shape,'' when used with 
reference to 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 article, 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 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, 
containing at least one self-start edge.

[[Page 300]]

Minor cutting or trimming will not affect the determination of whether a 
component is ``knit-to-shape'';
    (l) Major parts. ``Major parts'' means integral components of an 
apparel article 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 component 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 classification number under the HTSUS;
    (p) Wholly assembled in Haiti. ``Wholly assembled in Haiti'' means 
that all of the components of the apparel article (including thread, 
decorative embellishments, buttons, zippers, or similar components) were 
joined together in Haiti; and
    (q) Wholly the growth, product, or manufacture. ``Wholly the growth, 
product, or manufacture,'' when used with reference to Haiti or one or 
more eligible countries described in Sec. 10.844(c) of this subpart, 
refers both to any article which has been entirely grown, produced, or 
manufactured in Haiti or one or more eligible countries described in 
Sec. 10.844(c) of this subpart and to all materials incorporated in an 
article which have been entirely grown, produced, or manufactured in 
Haiti or one or more eligible countries described in Sec. 10.844(c) of 
this subpart.



Sec. 10.843  Articles eligible for duty-free treatment.

    The duty-free treatment referred to in Sec. 10.841 applies to the 
following articles 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 controlling production that are wholly assembled or knit-to-shape 
in Haiti from any combination of fabrics, fabric components, components 
knit-to-shape, and yarns, subject to the applicable quantitative limits 
set forth in U.S. Note 6(g), Subchapter XX, Chapter 98, HTSUS, and 
provided that the applicable value-content requirement set forth in 
Sec. 10.844(a) of this subpart is met through the use of:
    (1) The individual entry method (see Sec. 10.844(a)(1) of this 
subpart); or
    (2) The annual aggregation method (see Sec. 10.844(a)(2) of this 
subpart).
    (b) Certain woven apparel articles. Apparel articles classifiable in 
Chapter 62 of the HTSUS (other than articles classifiable in subheading 
6212.10 of the HTSUS), as in effect on December 20, 2006, that are 
wholly assembled or knit-to-shape in Haiti from any combination of 
fabrics, fabric components, components knit-to-shape, and yarns, but do 
not qualify for duty-free treatment under paragraph (a) of this section 
because they fail to meet the applicable value-content requirement set 
forth in Sec. 10.844(a) of this subpart, subject to the applicable 
quantitative limits set forth in U.S. Note 6(h), Subchapter XX, Chapter 
98, HTSUS;
    (c) Brassieres. Any article classifiable in subheading 6212.10 of 
the HTSUS, that is both cut and sewn or otherwise assembled in Haiti or 
the United States, or both, without regard to the source of the fabric 
or components from which the article is made, subject to the 
quantitative limits set forth in U.S. Note 6(g), Subchapter XX, Chapter 
98, HTSUS; and
    (d) Wiring sets. Any article classifiable in subheading 8544.30.00 
of the HTSUS, as in effect on December 20, 2006, that is the product or 
manufacture of Haiti, provided the article satisfies the value-content 
requirement set forth in Sec. 10.844(b) of this subpart. For purposes 
of this paragraph, the term ``product or manufacture of Haiti'' refers 
to an article that is either:
    (1) Wholly the growth, product, or manufacture of Haiti; or
    (2) A new or different article of commerce that has been grown, 
produced, or manufactured in Haiti;

[[Page 301]]



Sec. 10.844  Value-content requirement.

    (a) Certain apparel articles--(1) General. Except as provided in 
paragraph (a)(2) of this section, apparel articles described in Sec. 
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 Sec. 
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 performed in Haiti or one or more 
eligible countries described in paragraph (c) of this section, or any 
combination thereof, 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 declared customs value of the 
articles entered during the fifth applicable one-year period.
    (2) Annual aggregation--(i) Initial applicable one-year period. In 
the initial applicable one-year period, the applicable 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 
production that are entered during the initial applicable one-year 
period and for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart by aggregating the cost or value of materials 
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 production that are 
wholly assembled or knit-to-shape in Haiti and are entered during the 
initial applicable one-year period (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 requirement set forth in paragraph (a)(1) of this section 
may also be met for apparel 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 Sec. 
10.847(a) of this subpart by aggregating the cost or value of materials 
and the direct costs of processing, as those terms are used in paragraph 
(a)(1) of this section, with respect to all apparel articles of that 
producer or entity controlling production that are wholly assembled or 
knit-to-shape in Haiti and are entered during the preceding applicable 
one-year period (except as provided in paragraph (a)(2)(iii) of this 
section).
    (iii) Exclusions from annual aggregation calculation. (A) The entry 
of a woven apparel article receiving duty-free treatment under Sec. 
10.843(b) of this subpart is not to be included in an annual aggregation 
under paragraph (a)(2)(i) or (a)(2)(ii) of this section.
    (B) The entry of brassieres receiving duty-free treatment under 
Sec. 10.843(c) is not to be included in an annual aggregation under 
paragraph (a)(2)(i) or (a)(2)(ii) of this section unless the producer or 
entity controlling production elects, at the time the annual aggregation 
calculation is made, to include such entry in the aggregation.
    (C) The entry of an apparel article that is wholly assembled or 
knit-to-shape in Haiti and that is receiving preferential tariff 
treatment under any provision of law other than section 213A of the 
CBERA (19 U.S.C. 2703A) or is subject to the rate of duty set forth in 
the ``General'' subcolumn of column 1 of the HTSUS is not to be included 
in an annual aggregation under paragraph (a)(2)(i) or (a)(2)(ii) of this 
section unless the producer or entity controlling production elects, at 
the time the annual aggregation calculation is made, to include such 
entry in the aggregation.
    (3) Election to use the annual aggregation method for an applicable 
one-year period. A producer or entity controlling production that elects 
to use the annual aggregation method for purposes of meeting the 
applicable value-content requirement set forth in paragraph (a)(1) of 
this section during an

[[Page 302]]

applicable one-year period must continue to use that method for all 
apparel articles of that producer or entity controlling production that 
are certified as articles described in Sec. 10.843(a) of this subpart 
during that applicable one-year period (see Sec. 10.847(b) of this 
subpart). Unless a producer or entity controlling production elects to 
use the annual aggregation method with respect to an applicable one-year 
period, all apparel articles of the producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart must be entered under the individual entry 
method during that applicable one-year period.
    (4) Failure to meet applicable requirements--(i) Initial applicable 
one-year period. If CBP determines that apparel articles of a producer 
or entity controlling production that are entered as articles described 
in Sec. 10.843(a) of this subpart during the initial applicable one-
year period have not met the requirements of Sec. 10.843(a) of this 
subpart or the applicable value-content requirement set forth in 
paragraph (a)(1) of this section, then:
    (A) All apparel articles of the producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart that are entered under the annual aggregation 
method during that initial applicable one-year period will be denied 
duty-free treatment;
    (B) Those apparel articles of the producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart that are entered on an individual entry basis 
and that fail to meet the requirements of Sec. 10.843(a)(1) of this 
subpart or the applicable value-content requirement set forth in 
paragraph (a)(1) of this section during that initial applicable one-year 
period will be denied duty-free treatment. However, apparel articles of 
the producer or entity controlling production for which duty-free 
treatment is claimed under Sec. 10.847(a) of this subpart that are 
entered on an individual entry basis prior to an election being made by 
the producer or entity controlling production to use the annual 
aggregation method will be considered to have met the applicable value-
content requirement if that requirement is met through application of 
the individual entry method; and
    (C) All apparel articles of the producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart, whether entered on an individual entry or 
annual aggregation basis, will be not be eligible for duty-free 
treatment during the succeeding applicable one-year periods until the 
increased percentage in the value-content requirement specified in 
paragraph (a)(4)(iii) of this section has been met by all the apparel 
articles of that producer 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 Sec. 10.845 
of this subpart.
    (ii) Other applicable one-year periods. If CBP determines that 
apparel articles of a producer or entity controlling production that are 
entered as articles described in Sec. 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 Sec. 10.843(a) or the 
applicable value-content requirement set forth in paragraph (a) of this 
section, then:
    (A) Those apparel articles of the producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart that are entered on an individual entry basis 
and that fail to meet the requirements of Sec. 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 producer or entity controlling 
production for which duty-free treatment is claimed under Sec. 
10.847(a) of this subpart, 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 
percentage in the value-content requirement specified in paragraph 
(a)(4)(iii) of this section has been met by all the

[[Page 303]]

apparel articles of that producer 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 Sec. 
10.845 of this subpart.
    (iii) Increased percentage. For apparel articles of a producer or 
entity controlling production to meet the increased percentage referred 
to in paragraphs (a)(4)(i)(C) and (a)(4)(ii)(B) of this section, 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 
performed in Haiti or one or more eligible countries described in 
paragraph (c) of this section, or any combination thereof, must not be 
less than the applicable percentage under paragraph (a)(1) of this 
section, plus 10 percent, of the aggregate declared customs value of all 
apparel articles of that producer 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. Once the increased 
value-content percentage has been met for the articles of a producer or 
entity controlling production that are entered during an applicable one-
year period, the articles of that producer or entity controlling 
production that are entered during the next succeeding applicable one-
year period will be subject to the applicable value-content percentage 
specified in paragraph (a)(1) of this section.
    (iv) Articles of a new producer or entity controlling production. A 
new producer or entity controlling production that elects to use the 
annual aggregation method for purposes of meeting the applicable value-
content requirement must first meet the increased value-content 
percentage specified in paragraph (a)(4)(iii) of this section as a 
prerequisite to receiving duty-free treatment during a succeeding 
applicable one-year period. For purposes of this paragraph, a ``new 
producer or entity controlling production'' is a producer or entity 
controlling production that did not produce or control production of 
articles that were entered as articles described in Sec. 10.843(a) 
during the immediately preceding applicable one-year period.

    Example 1. A Haitian producer begins production of apparel articles 
that meet the description in Sec. 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 producer's 
articles entered during the second applicable one-year period meet a 
value-content percentage of 55%; articles entered during the third 
applicable one-year period meet a value-content percentage of 65%; and 
articles entered during the fourth applicable one-year period meet a 
value-content percentage 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 period) 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 applicable one-year period because the 
increased value-content percentage requirement (50% plus 10% = 60%) was 
not met in the immediately preceding period (the second applicable 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-content percentage requirement in the 
immediately 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 percentage requirement in the immediately preceding period (the 
fourth applicable one-year period).
    Example 2. Same facts as in example 1, except that the producer 
elects to use the individual entry method for purposes of meeting the 
applicable value-content requirement for each applicable one-year 
period. The producer'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 requirement. 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.

    (v) Notification of compliance with the increased percentage--(A) 
General. If apparel articles of a producer or entity controlling 
production are required to

[[Page 304]]

meet the increased value-content percentage described in paragraph 
(a)(4)(iii) of this section, either because of failure to meet the 
requirements of Sec. 10.843(a) or the applicable value-content 
requirement set forth in paragraph (a) of this section in an applicable 
one-year period, or because the producer or entity controlling 
production is a new producer or entity controlling production, as 
defined in paragraph (a)(4)(iv) of this section, that elects to use the 
annual aggregation method, the importer of such articles must notify CBP 
that the increased percentage has been met in an applicable one-year 
period by submitting to CBP the declaration of compliance described in 
Sec. 10.848 of this subpart within 30 days following the end of the 
applicable one-year period. An importer that is required to submit a 
declaration of compliance under this paragraph must submit such a 
declaration for each importer of record identification number used by 
that importer. A declaration of compliance required under this paragraph 
must be sent to the address set forth in Sec. 10.848(a) of this 
subpart.
    (B) Contents. A declaration of compliance required under paragraph 
(a)(4)(v)(A) of this section must include, in addition to the 
information specified in Sec. 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 
controlling production was a new producer or entity controlling 
production that elected to use the annual aggregation method.
    (C) Effect of noncompliance. If an importer fails to submit to CBP 
the declaration 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 percentage was met for 
apparel articles of a producer or entity controlling production, CBP may 
deny duty-free treatment to all apparel articles, as described in Sec. 
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. Additionally, the timely submission of a 
declaration of compliance is a prerequisite for a producer or entity 
controlling production to request retroactive application of duty-free 
treatment under Sec. 10.845 of this subpart for apparel articles that 
meet the increased value-content percentage during an applicable one-
year period. However, the submission 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 treatment is sought under 
Sec. 10.845 of this subpart.
    (5) Inclusion of the cost of fabrics or yarns not available in 
commercial quantities 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 (without 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));
    (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 apparel article is an originating good eligible for preferential 
treatment, of a law that implements a free trade agreement that enters 
into force under the Bipartisan Trade Promotion Authority Act of 2002.
    (b) Wiring sets. An article described in Sec. 10.843(d) of this 
subpart will be eligible 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

[[Page 305]]

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 performed in Haiti or the United States, or both, 
is not less than 50 percent 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, Nicaragua, Guatemala, Dominican 
Republic, 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 under the Bipartisan Trade Promotion Authority 
Act of 2002 (19 U.S.C. 3801 et seq.); and
    (3) The designated beneficiary countries 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) Materials produced in Haiti or 
one or more eligible countries described in paragraph (c) of this 
section defined--(i) Certain apparel articles. As used in paragraph (a) 
of this section, the words ``materials produced in Haiti or one or more 
eligible countries described in paragraph (c) of this section'' refer to 
those materials incorporated into an article that are either:
    (A) Wholly obtained or produced, within the meaning of Sec. 
102.1(g) of this chapter, in Haiti or one or more eligible countries 
described in paragraph (c) of this section; or
    (B) Determined to originate in Haiti or one or more eligible 
countries described in paragraph (c) of this section by application of 
the provisions of Sec. 102.21 of this chapter.
    (ii) Wiring sets. As used in paragraph (b) of this section, the 
words ``materials produced in Haiti or one or more eligible countries 
described in paragraph (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 eligible 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 section 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 countries 
described in paragraph (c) of this section includes:
    (1) The manufacturer's actual cost for the materials;
    (2) When not included in the manufacturer'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 spoilage, 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 paragraph (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 the material, including general expenses;
    (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 paragraph (a) of this section, in calculating the cost or 
value of materials produced in Haiti or one or more eligible countries 
described in paragraph (c) of this section, either in regard to 
individual entries or entries entered in the aggregate, deductions are 
to be made for the cost or value of:

[[Page 306]]

    (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 countries described in 
paragraph (c) of this section.
    (e) Direct costs of processing operations--(1) Items included. As 
used in paragraphs (a) and (b) of this section, 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 articles 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 
articles:
    (i) All actual labor costs involved in the growth, production, 
manufacture, or assembly of the specific articles, including fringe 
benefits, on-the-job training, and the cost of engineering, supervisory, 
quality control, and similar personnel;
    (ii) Dies, molds, tooling, and depreciation on machinery and 
equipment which are allocable to the specific articles;
    (iii) Research, development, design, engineering, and blueprint 
costs insofar as they are allocable to the specific articles; and
    (iv) Costs of inspecting and testing the specific articles.
    (2) Items not included. The words ``direct costs of processing 
operations'' do not include items that are not directly attributable to 
the articles under consideration or are not costs of manufacturing the 
product. These include, but are not limited to:
    (i) Profit; and
    (ii) General expenses of doing business that either are not 
allocable to the specific articles or are not related to the growth, 
production, manufacture, or assembly of the articles, such as 
administrative salaries, casualty and liability insurance, advertising, 
and salesmen's salaries, commissions, or expenses.



Sec. 10.845  Retroactive application of duty-free treatment for certain apparel articles.

    (a) General. Notwithstanding 19 U.S.C. 1514 or any other provision 
of law, if apparel articles, as described in Sec. 10.843(a) of this 
subpart, of a producer or entity controlling production are ineligible 
for duty-free treatment in an applicable one-year period because the 
apparel articles of the producer or entity controlling production did 
not meet the requirements of Sec. 10.843(a) of this subpart or the 
applicable value-content requirement set forth in Sec. 10.844(a) of 
this subpart, and the apparel articles of the producer or entity 
controlling production satisfy the increased value-content percentage 
set forth in Sec. 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 duties 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 Sec. 10.843(a) and 
the applicable value-content requirement set forth in Sec. 10.844(a) of 
this subpart;
    (2) A declaration of compliance with the increased value-content 
percentage is submitted to CBP within 30 days following the end of the 
applicable one-year period during which the increased percentage is met 
(see Sec. 10.844(a)(4)(v) of this subpart); and
    (3) A request for liquidation or reliquidation 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 production satisfy the increased value-content 
percentage set forth in Sec. 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 
Sec. 10.843(a) of this

[[Page 307]]

subpart begins exporting those articles to the United States during the 
initial applicable one-year period and elects to use the annual 
aggregation method for purposes of meeting the applicable value-content 
requirement. The articles entered during that initial period meet a 
value-content percentage of 48%, while articles entered during the 
second applicable one-year period meet a value-content percentage of 
62%. The producer'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 producer's articles also are 
ineligible for duty-free treatment during the second applicable one-year 
period because the 50% value-content requirement was not met in the 
immediately preceding period (the initial applicable one-year period). 
However, because the producer's articles entered during the second 
applicable one-year period satisfy the increased value-content 
percentage requirement (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 compliance with the 
conditions and requirements set forth in Sec. 10.847 of this subpart. 
In addition, the producer's articles entered during the third applicable 
one-year period are eligible for duty-free treatment based on compliance 
with the increased value-content percentage in the second applicable 
one-year period.



Sec. 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 
requirement, the words ``imported directly'' mean:
    (1) Direct shipment from Haiti to the United States without passing 
through the territory of any intermediate country;
    (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 intermediate country and the invoices 
and other documents do not show the United States as the final 
destination, the articles 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 retail, provided that the 
articles are imported as a result of the original commercial transaction 
between the importer and the producer or the producer's sales agent; and
    (iii) Have not been subjected to operations other than loading and 
unloading, and other activities necessary to preserve the articles in 
good condition.
    (b) Documentary evidence. An importer making a claim for duty-free 
treatment under Sec. 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 section. An 
importer may demonstrate 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, 
receiving and inventory records, and customs entry and exit documents.



Sec. 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 Sec. 10.843 of this subpart by including on 
the entry summary, or equivalent documentation, the applicable 
subheading within Subchapter XX of Chapter 98 of the HTSUS under which 
the article is classified, or by the method specified for equivalent 
reporting via an authorized electronic data interchange system. The 
applicable subheadings within Subchapter XX, Chapter 98, HTSUS, are as 
follows:
    (1) Subheading 9820.61.25 for apparel articles described in Sec. 
10.843(a) of this subpart for which the individual entry method is used 
for purposes of meeting the applicable value-content requirement set 
forth in Sec. 10.844(a) of this subpart;
    (2) Subheading 9820.61.30 for apparel articles described in Sec. 
10.843(a) of this subpart for which the annual aggregation method is 
used for purposes of meeting the applicable value-content

[[Page 308]]

requirement set forth in Sec. 10.844(a) of this subpart;
    (3) Subheading 9820.62.05 for woven apparel articles described in 
Sec. 10.843(b) of this subpart;
    (4) Subheading 9820.62.12 for brassieres described in Sec. 
10.843(c) of this subpart; and
    (5) Subheading 9820.85.44 for wiring sets described in Sec. 
10.843(d) of this subpart.
    (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 Sec. 
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 producer 
or entity controlling production setting forth its election to use the 
annual aggregation method for its articles (see Sec. 10.848(c)(3) of 
this subpart). In the absence of receipt of such certification from the 
producer or entity controlling production, an importer of articles 
described in Sec. 10.843(a) of this subpart 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 importer 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 corrected claim 
will be effected by submission of a letter or other written statement to 
the CBP port where the claim was originally filed.



Sec. 10.848  Declaration of compliance.

    (a) General. Each importer claiming duty-free treatment for apparel 
articles, as described in Sec. 10.843(a) of this subpart, of a producer 
or entity controlling production that uses the annual aggregation method 
to satisfy the applicable value-content requirement set forth in Sec. 
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 importer that is required to submit a declaration of 
compliance under this paragraph must submit such a declaration for each 
importer of record identification number used by that importer. The 
declaration of compliance must be sent to: Office of International 
Trade, 1300 Pennsylvania Avenue, NW., Washington, DC 20229.
    (b) Effect of noncompliance--(1) Initial applicable one-year period. 
If an importer fails to submit to CBP the declaration of compliance 
required under paragraph (a) of this section within 30 days following 
the end of the initial applicable one-year period, CBP may deny duty-
free treatment to all entries of apparel articles, as described in Sec. 
10.843(a), of that producer or entity controlling production that were 
filed by that importer during the initial applicable one-year period and 
that are entered by that importer during the next succeeding applicable 
one-year period.
    (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 applicable one-year 
period (other than the initial applicable one-year period), CBP may deny 
duty-free treatment to all entries of apparel articles, as described in 
Sec. 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.
    (c) Contents. A declaration of compliance submitted to CBP under 
paragraph (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 information:
    (i) The applicable one-year period during which the aggregation 
method was used (year beginning December 20, 20--, year ending December 
19, 20--);
    (ii) The legal name, address, telephone, fax number, e-mail address 
(if any), and identification number of the importer of record, and the 
legal name,

[[Page 309]]

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 Sec. 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 controlling production elects to 
include in the aggregation calculation entries of brassieres receiving 
duty-free treatment under Sec. 10.843(c) of this subpart and entries 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 Sec. 
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 
producer(s), and, if applicable, name and address of the entity 
controlling production;
    (v) The value-content percentage that was met during the applicable 
one-year period with respect to each producer or entity controlling 
production;
    (vi) The name and title of the person who prepared the declaration 
of compliance. The declaration must be prepared and signed by a 
responsible official of the importer or by the importer's authorized 
agent having knowledge of the relevant facts;
    (vii) Signature of the person who prepared the declaration of 
compliance; and
    (viii) Date the declaration of compliance was prepared and signed; 
and
    (3) Must include as an attachment to the declaration a copy of a 
certification 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.



Sec. 10.849  Importer obligations.

    (a) General. An importer who makes a claim for duty-free treatment 
under Sec. 10.847 of this subpart for an article described in Sec. 
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 contained in the declaration of compliance, if that document 
is required to be submitted to CBP pursuant to Sec. Sec. 
10.844(a)(4)(v) or 10.848(a) of this subpart; and
    (3) Is responsible for submitting any supporting documents requested 
by CBP and for the truthfulness of the information contained in those 
documents. When requested, CBP may arrange for the direct submission by 
the exporter, producer, or entity controlling production of business 
confidential or other sensitive information, including cost and sourcing 
information.
    (b) Information provided by exporter, producer, or entity 
controlling production. The fact that the importer has made a claim for 
duty-free treatment or prepared a declaration of compliance based on 
information provided by an exporter, producer, or entity controlling 
production will not relieve the importer of the responsibility referred 
to in paragraph (a) of this section.



Sec. 10.850  Verification of claim for duty-free treatment.

    (a) General. A claim for duty-free treatment made under Sec. 10.847 
of this subpart, including any declaration of compliance or other 
information submitted 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 
declaration of compliance (if required under Sec. 10.844(a)(4)(v) or 
Sec. 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 Sec. 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

[[Page 310]]

importer, the producer, the entity controlling production, or any other 
person under part 163 of this chapter; and
    (2) The documentation and information 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 available to CBP by the 
importer or the importer may arrange to have the documentation and 
information made available to CBP directly by the exporter, producer, or 
entity controlling production:
    (i) Documentation and other information regarding all apparel 
articles that meet the requirements specified in Sec. 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 Sec. 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 shipping 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 shipping documents, and customs 
import and clearance documents, work orders and other production 
records, and inventory control records;
    (iii) Records to document the direct costs of processing operations 
performed in Haiti or one or more eligible countries described in Sec. 
10.844(c) of this subpart, such as direct labor and fringe expenses, 
machinery and tooling costs, factory expenses, and testing and 
inspection 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 affidavit or statement of origin should include 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 financial records which relate to the 
source records provided for in paragraphs (b)(2)(i) through (b)(2)(iii) 
of this section.



PART 11_PACKING AND STAMPING; MARKING--Table of Contents




                          Packing and Stamping

Sec.
11.1 Cigars, cigarettes, medicinal preparations, and perfumery.
11.2 Manufactured tobacco.
11.2a Release from Customs custody without payment of tax on cigars, 
          cigarettes and cigarette papers and tubes.
11.3 Package and notice requirements for cigars and cigarettes; package 
          requirements for cigarette papers and tubes.
11.5 [Reserved]
11.6 Distilled spirits, wines, and malt liquors in bulk.
11.7 Distilled spirits and other alcoholic beverages imported in bottles 
          and similar 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



Sec. 11.1  Cigars, cigarettes, medicinal preparations, and perfumery.

    (a) All cigars and cigarettes imported into the United States, 
except importations by mail and in baggage, shall be placed in the 
public stores or in a designated bonded warehouse to remain until 
inspected, weighed, and repacked, if necessary, under the Customs and 
internal-revenue laws. However, if the invoice and entry presented 
specify all of the information necessary for prompt determination of the 
estimate duty and tax on the packages of cigars and cigarettes covered 
thereby, the port director may permit designation of less than the 
entire importation for examination.

[[Page 311]]

    (b) After the cigars and cigarettes have been examined, weighed, and 
appraised, before release the inspecting officer shall verify that they 
are in properly constructed packages, conforming to the requirements of 
the regulations of the Bureau of Alcohol, Tobacco and Firearms, bearing 
a legible imprint or a securely affixed label stating the quantity, 
kind, and classification for tax purposes as required by such 
regulations. Cigars or cigarettes must be in compliance with such 
requirements before being released for consumption unless specifically 
exempted therefrom as indicated in Sec. 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 Customs. 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]



Sec. 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 importation for 
examination.
    (b) In the case of returned American manufactured tobacco, the 
packages shall be marked or stamped by Customs 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]



Sec. 11.2a  Release from Customs custody without payment of tax on cigars, cigarettes and cigarette papers and tubes.

    Cigars, cigarettes, and cigarette papers 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 Firearms Form 2145 (5200.11) or 3072 
(5210.14), certified by the appropriate regional regulatory 
administrator, Bureau of Alcohol, and Tobacco and Firearms. The Customs 
officer shall complete the notice of release, retain one copy, send one 
copy to the regional regulatory administrator, and return one copy to 
the manufacturer. The release may not be made under a mail entry. See 
Sec. 145.13(b) of this chapter.

[T.D. 78-329, 43 FR 43454, Sept. 26, 1978]



Sec. 11.3  Package and notice requirements for cigars and cigarettes; package requirements for cigarette papers and tubes.

    Exemptions from tax on cigars, cigarettes, and cigarette papers and 
tubes apply in accordance with the regulations of the Bureau of Alcohol, 
Tobacco, and Firearms (27 CFR part 275) upon release from Customs 
custody of such articles imported by consular officers and employees of 
foreign states. Cigars, cigarettes, cigarette papers, and tubes may also 
be released without payment of tax as provided in Sec. 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 Subchapter 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), Sec. Sec. 
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 passengers' baggage or are to be released under a mail entry 
for the personal consumption of the importer or for disposition as his 
bona fide gift, the provisions in Part 275 of the regulations of the 
Bureau of Alcohol, Tobacco, and Firearms (27 CFR part 275) as to 
packages 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]



Sec. 11.5  [Reserved]



Sec. 11.6  Distilled spirits, wines, and malt liquors in bulk.

    (a) The port director, in his discretion, may require marks, brands, 
stamps, labels, or similar devices to be

[[Page 312]]

placed on any bulk container used for holding, storing, transferring, or 
conveying imported distilled spirits, 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 inspection, gauging, marking, or measurement may be done, at the 
place of unlading or other suitable place, unless the port director 
determines that inspection, gauging, marking, or measurement shall be 
done at a public store, warehouse, or other appropriate facility.
    (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, surface, 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]



Sec. 11.7  Distilled spirits and other alcoholic 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 bottles and similar containers is subject to regulations of the 
Bureau of Alcohol, Tobacco and Firearms relating to strip stamps and 
other matters. (27 CFR parts 5, 201, and 251). Customs officers and 
employees shall perform such functions as are necessary or proper on 
their part to carry out such regulations.

[28 FR 14701, Dec. 31, 1963, as amended by T.D. 78-329, 43 FR 43454, 
Sept. 26, 1978]

                                 Marking



Sec. 11.9  Special marking on certain articles.

    (a) No movement, case, or dial provided for in Chapter 91, 
Harmonized Tariff Schedule of the United States (HTSUS), shall be 
released for consumption until marked in exact compliance with the 
requirements of additional 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 marking duty shall be assessed, unless such 
marking is accomplished or the merchandise is exported or destroyed 
under Customs supervision prior to the liquidation 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 
articles provided for Chapter 91, Harmonized Tariff Schedule of the 
United States (HTSUS), and specified in Additional U.S. Note 4, Chapter 
91, may be either the actual name of the manufacturer or purchaser or a 
duly registered trade name under which such manufacturer or purchaser 
carries on his business. A trade-mark shall not be accepted as meeting 
any such special marking requirement unless it includes the full name of 
the manufacturer or purchaser. The term ``Purchaser'' as used in this 
paragraph means the purchaser in the United States by whom or for whose 
account the articles are imported.

[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]



Sec. 11.12  Labeling of wool products to indicate 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 thereunder by the Federal Trade Commission (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, reprocessed 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,

[[Page 313]]

the importer shall be afforded a reasonable opportunity to label the 
merchandise under Customs supervision to conform with the requirements 
of such act and the rules and regulations of the Federal Trade 
Commission. The compensation and expenses of Customs officers and 
employees assigned to supervise 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, Sec. 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 connection with the entry bonds on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 and/or Sec. 
113.68 of this chapter, as appropriate, in such amount as the port 
director may require.
    (d) The port director shall give written 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 pursuant to Sec. 
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 notice and demand given pursuant to 
paragraph (d) of this section are not promptly returned to Customs 
custody and the port director is not fully satisfied that they have been 
brought into compliance with the Wool Products Labeling 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 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 damages of a 
lesser amount than the full amount of the liquidated damages incurred, 
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 requested cancellation 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 director, 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]



Sec. 11.12a  Labeling of fur products to indicate composition.

    (a) Fur products imported into the United States shall have affixed 
thereto a label as required by section 4 of the Fur Products Labeling 
Act (15 U.S.C. 69b) and the rules and regulations 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 include such 
articles as the Federal Trade Commission shall exempt by reason 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 reasonable opportunity 
to label the merchandise under Customs supervision to conform with the 
requirements of such act and the rules and regulations of the Federal 
Trade Commission. The compensation and expenses of Customs officers and 
employees assigned to supervise 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, Sec. 134.55 of this chapter.
    (c) Packages of fur products subject to the provisions of this 
section which are not designated for examination

[[Page 314]]

may be released pending examination of the designated packages, but only 
if there shall have been filed in connection with the entry bonds on 
Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 and/or Sec. 113.68 of this chapter, as appropriate, in such 
amount as the port director may require.
    (d) The port director shall give written notice to the importer of 
any lack of compliance with the Fur Products Labeling Act in respect of 
an importation of fur products, and pursuant to Sec. 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 notice and demand given pursuant to 
paragraph (d) of this section are not promptly returned to Customs 
custody and the port director is not fully satisfied that they have been 
brought into compliance with the Fur Products Labeling Act, appropriate 
action shall be taken to effect the collection of liquidated 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 damages of a lesser amount than 
the full amount of the liquidated damages incurred, 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 requested cancellation and shall be in duplicate.
    (f) If any fraudulent violation of the act with respect to imported 
articles comes to the attention of a port director, 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, 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]



Sec. 11.12b  Labeling textile fiber products.

    (a) Textile fiber products imported into the United States shall be 
labeled or marked in accordance with the Textile Fiber Products 
Identification Act (15 U.S.C. 70 through 70k) and the rules and 
regulations promulgated thereunder by the Federal Trade Commission (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 consumer. 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 reasonable 
opportunity to label the merchandise under customs supervision to 
conform with the requirements of such Act and the rules and regulations 
of the Federal Trade Commission. The compensation and expenses of 
Customs officers and employees assigned to supervise 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, Sec. 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 connection with the entry bonds on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 and/or Sec. 
113.68 of this chapter, as appropriate, in such amount as the port 
director may require.

[[Page 315]]

    (d) The port director shall give written notice to the importer of 
any lack of compliance with the Fiber Products Identification Act in 
respect of an importation of fiber products, and pursuant to Sec. 
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 notice 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 compliance with the Fiber Products Identification Act, appropriate 
action shall be taken to effect the collection of liquidated 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 damages of a lesser amount than 
the full amount of the liquidated damages incurred, 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 requested cancellation and shall be in duplicate.
    (f) If any willful or flagrant violation of the Act with respect to 
the importation of articles comes to the attention of a port director, 
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 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]



Sec. 11.13  False designations of origin and false descriptions; false marking of articles of gold or silver.

    (a) Articles which bear, or the containers which bear, false 
designations of origin, or false descriptions or representations, 
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 imported 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 indicate 
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 prohibited importation 
and shall be detained, and the facts shall be reported to the United 
States attorney.
    (c) Whenever any articles are detained in accordance with the 
foregoing 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 articles shall 
be seized and forfeited in the usual manner, except that, upon the 
filing of a petition therefor by the importer 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 indicate their origin, 
contents, or condition, 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 procedure applicable to other Customs forfeitures, 
but may not be released from Customs custody except upon the removal by 
and at the expense of the party in interest of the prohibited

[[Page 316]]

marking by reason of which the articles were seized, except articles 
disposed of under Sec. 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--Table of Contents




Food, Drugs, and Cosmetics, Economic Poisons, Hazardous Substances, and 
                Dangerous Caustic or Corrosive Substances

Sec.
12.1 Cooperation with certain agencies; joint regulations.
12.3 Release under bond; liquidated damages.
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 Department 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 Agriculture.

      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 Agriculture.

                    Wild Animals, Birds, and Insects

12.26 Importations of wild animals, fish, amphibians, reptiles, 
          mollusks, and crustaceans; 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; examination 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 prison-labor products.

[[Page 317]]

 Counterfeit Coins, Obligations, and Other Securities; Illustrations or 
                    Reproductions 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 officers.
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 requirements.
12.74 Nonroad engine compliance with Federal antipollution emission 
          requirements.

  Motor Vehicles and Motor Vehicle Equipment Manufactured on or After 
                             January 1, 1968

12.80 Federal motor vehicle safety standards.

           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 importation 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 designated by agreements or 
          emergency actions.
12.104h Exempt materials and articles.
12.104i Enforcement.

     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 devices.
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.

                             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 disposition; blocked property.

                         Mexican Cement Products

12.155 Entry or admission of Mexican cement products.

    Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624;
    Section 12.1 also issued under 21 U.S.C. 371(b);
    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);

[[Page 318]]

    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;
    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 12.150 also issued under 19 U.S.C. 1595a and 1618; 22 U.S.C. 
401.

    Source: 28 FR 14710, Dec. 31, 1963, unless otherwise noted.

Food, Drugs, and Cosmetics, Economic Poisons, Hazardous Substances, and 
                Dangerous Caustic or Corrosive Substances



Sec. 12.1  Cooperation with certain agencies; joint regulations.

    (a) Federal Food, Drug, and Cosmetic Act. The importation into the 
United States of food, drugs, devices, and cosmetics 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 governed 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 
Secretary 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 pesticides and devices is governed by section 17(c) of 
the Federal Insecticide, Fungicide, and Rodenticide Act, as amended (7 
U.S.C. 136o(c)), and regulations issued under the authority of section 
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 (Sec. 12.110 et seq.).
    (c) Federal Hazardous Substances Act. The importation of hazardous 
substances, misbranded hazardous substances, or banned hazardous 
substances 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]



Sec. 12.3  Release under bond; liquidated damages.

    (a) Release. No food, drug, device, cosmetic, pesticide, hazardous 
substance or dangerous caustic or corrosive substance that is the 
subject of Sec. 12.1 will be released except in accordance with the 
laws and regulations applicable to the merchandise. When any merchandise 
that is the subject of Sec. 12.1 is to be released under bond pursuant 
to regulations applicable to that merchandise, a bond on Customs Form 
301, containing the bond conditions set forth in Sec. 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 circumstances of the particular case that is either:
    (1) Equal to the domestic value (see Sec. 162.43(a) of this 
chapter) of the merchandise at the time of release as if the merchandise 
were admissible and otherwise in compliance; or
    (2) Equal to three times the value of the merchandise as provided in 
Sec. 113.62(l)(1) of this chapter.

[[Page 319]]

    (c) Liquidated damages. Whenever liquidated damages arise with 
regard to any food, drug, device or cosmetic subject to Sec. 12.1(a) 
for failure to redeliver merchandise into Customs custody or for failure 
to rectify any noncompliance with the applicable provisions of 
admission, including the failure to export or destroy the merchandise 
within the time period prescribed by law after the merchandise has been 
refused admission pursuant to the provisions of the Food, Drug and 
Cosmetic Act, those liquidated damages will be assessed pursuant to 
Sec. 113.62(l)(1) of this chapter in the amount of the bond prescribed 
under paragraph (b) of this section.

[T.D. 01-26, 66 FR 16853, Mar. 28, 2001]



Sec. 12.4  Exportation.

    The exportation of merchandise, the subject of Sec. 12.1, refused 
admission into the United States in accordance with regulations 
applicable thereto shall be under Customs supervision in accordance with 
the regulations set forth in Sec. Sec. 18.25 and 18.26 of this chapter.

[T.D. 68-191, 33 FR 11019, Aug. 2, 1968]



Sec. 12.5  Shipment to other ports.

    When imported merchandise, the subject of Sec. 12.1, is shipped to 
another port for reconditioning or exportation, such shipment shall be 
under a Customs carrier'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



Sec. 12.6  Affidavits required to accompany 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 shipments 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 shipments into Puerto Rico, of the 
importer that the cheese will be consumed 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 consumption.
    (b) These affidavits shall not be required 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



Sec. 12.7  Permits required for importation.

    (a) Under the Act of February 15, 1927 (44 Stat. 1101, as amended, 
21 U.S.C. 141-149), commonly known as the Federal 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 holds a valid permit from the Department 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 Department 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 legible type the product 
(raw milk, pasteurized milk, raw cream, or pasteurized cream) the permit 
number and the name and address of the shipper; except that in case of 
unit shipments consisting of milk only or cream only under one permit 
number, each container need not be so marked if the vehicle of 
transportation is sealed and tagged with the above-mentioned tag. In 
such case the tag is required to

[[Page 320]]

show, in addition to the other required information, the number of 
containers and the contents of each. Customs officers 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



Sec. 12.8  Inspection; bond; release.

    (a) All imported meat, meat-food products horse meat and horse meat-
food products offered for entry into the United States are subject to 
the regulations prescribed by the Secretary of Agriculture under section 
306, Tariff Act of 1930. The term ``meat and meat-food products,'' for 
the purpose of this section, shall include any imported article of food 
or any imported article which enters 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, except such articles as organotherapeutic substances, meat 
juice, meat extract, and the like, which are only for medicinal purposes 
and are advertised only to the medical profession. Such meat, meat-food 
products, horse meat and horse meat-food products shall not be released 
from Customs custody prior to inspection 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 Customs supervision. In such case a 
bond for the return to Customs custody of the merchandise shall be given 
by the consignee or agent on Customs Form 301, containing the bond 
conditions set forth in Sec. 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 import-meat seals furnished by the 
Department of Agriculture unless bearing United States Customs seals, or 
in the case of packages otherwise identified as provided 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 Customs officer or inspector 
of the Meat Inspection Division, Agricultural 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. Department of 
Agriculture.

                                 Warning

    Failure to comply with these instructions will result in penalty 
action being taken against the holder of the Customs entry bond.
    If the product is found to be acceptable upon inspection the package 
will be marked ``U.S. Inspected and Passed'' and this warning notice 
defaced.
    (b) Liquidated damages assessed for breach of a bond taken under 
this section, if not in excess of the Fines, Penalties, and Forfeitures 
Officer's delegated authority, and if a written application for relief 
is filed, may be canceled by the port director upon the payment of less 
than the full amount as he shall deem appropriate, or without the 
payment of any amount, as may be deemed appropriate, but the Fines, 
Penalties, and Forfeitures Officer shall not act under this paragraph 
unless the officer in charge of the local office of the Food Safety and 
Inspection Service, Meat and Poultry Inspection, Department of 
Agriculture, is in full agreement with the proposed action. If there is 
no local inspector of the Food Safety and Inspection Service, Meat and 
Poultry Inspection, the port director shall not act unless he has 
obtained the full agreement of the Food Safety and Inspection Service,

[[Page 321]]

Meat and Poultry Inspection in Washington.

[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]



Sec. 12.9  Release for final delivery to consignee.

    No meat, meat-food products, or animal 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



Sec. 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 officers and employees shall perform such functions as 
are necessary or proper on their part to carry out such regulations and 
orders of the Department of Agriculture and the provisions of law under 
which they are made.



Sec. 12.11  Requirements for entry and release.

    (a) The importer or his representative 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 arrival for any type of 
entry except rewarehouse 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 arrival 
which he receives from the importer or his representative with the 
shipping documents, certify its agreement therewith, and transmit it, 
together with any accompanying certificates 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 notice 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 
Quarantine 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 Inspection Service, Plant 
Protection and Quarantine Programs and all Customs requirements for the 
release of the merchandise have been met, the merchandise 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]



Sec. 12.12  Release under bond.

    Plants or plant products which require fumigation, disinfection, 
sterilization, or other treatment as a condition of entry may be 
released to the permittee for treatment at a plant approved by the 
Department of Agriculture upon the giving of a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 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]



Sec. 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 unclaimed, 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.

[[Page 322]]

    (b) Unclaimed plants and plant products not complying with the 
requirements 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]



Sec. 12.14  Detention.

    (a) Port directors shall refuse release of all plants or plant 
products with respect 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 
immediately, the port director shall report the facts to the U.S. 
Department of Agriculture, Animal and Plant Health Inspection 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 pending advice from the 
Department of Agriculture.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 78-99, 43 FR 13060, Mar. 
29, 1978]



Sec. 12.15  Disposition; refund of duty.

    Plants or plant products which are prohibited admission into the 
United States under Federal law or regulations and are exported or 
destroyed under proper supervision are exempt from duty and any duties 
collected thereon shall be refunded. (See Sec. Sec. 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



Sec. 12.16  Joint regulations of the Secretary of the Treasury and the Secretary of Agriculture.

    (a) The importation into the United States of agricultural and 
vegetable seeds and screenings thereof is governed by rules and 
regulations prescribed jointly by the Secretary of the Treasury and the 
Secretary of Agriculture under section 402(b) of the Federal Seed Act of 
August 9, 1939 (7 CFR part 201).
    (b) Under the said joint rules and regulations, 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 Division, 
Agricultural Marketing Service, in the matter.
    (c) It is further provided in said joint rules and regulations that 
after samples 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 requirements of the Federal Seed Act of August 9, 
1939, and the said regulations, but if the containers bear sufficient 
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 contain the bond conditions set forth in Sec. 113.62 of this 
chapter. In case of default the port director shall issue a 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



Sec. 12.17  Importation restricted.

    The importation into the United States of viruses, serums, toxins, 
and analogous products for use in the treatment 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, Veterinary 
Services, Washington, D.C., of the arrival of any such product, and 
detain 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]

[[Page 323]]



Sec. 12.18  Labels.

    Each separate container of such virus, serum, toxin, or analogous 
product imported is required by the regulations 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 following form: ``U.S. 
Veterinary Permit No. --------,'' or an abbreviation thereof 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 
preparation 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]



Sec. 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 Department of Agriculture.
    (b) Samples shall be furnished to the Department of Agriculture upon 
its request, and the port director shall immediately notify the 
consignee of any such request.



Sec. 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 exported under Customs supervision at the expense of the 
importer if exportation is authorized by the Department of Agriculture.

  Viruses, Serums, Toxins, Antitoxins, and Analogous Products for the 
                            Treatment of Man



Sec. 12.21  Licensed establishments.

    The bringing into the United States for sale, barter, or exchange, 
of any virus, therapeutic serum, toxin, antitoxin, or analogous product, 
or arsphenamine or its derivatives (or any other trivalent organic 
arsenic compound), applicable to the prevention, treatment, or cure of 
diseases or injuries 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 Services 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]



Sec. 12.22  Labels; samples.

    Each package of such products imported for sale, barter, or exchange 
shall be labeled or plainly marked with the name, address, and license 
number of the manufacturer, and the date beyond which the contents 
cannot be expected to yield their specific results. From each lot of 
product the port director shall select at random at least two final 
containers. The random sample together with a copy of the associated 
documents which describe and identify the shipment shall be forwarded to 
the Director, Bureau of Biologics, Food and Drug Administration, 8800 
Rockville Pike, Bethesda, Md. 20014. For shipments of 20 or less final 
containers, samples need not be forwarded, provided a copy of an 
official 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]



Sec. 12.23  Detention; examination; disposition.

    (a) Port directors shall detain all importations of unlicensed 
viruses, therapeutic serums, toxins, antitoxins, and analogous products, 
and arsphenamines or its derivatives (or any other trivalent organic 
arsenic compound) for the treatment or cure of diseases or injuries of 
man pending examination by the Director, Bureau of Biologics, unless 
satisfied from evidence furnished at the time of entry that the products 
are intended solely for purposes of controlled investigation and not for 
sale, barter, or exchange, as evidenced by a copy of a filed ``Notice of 
Claimed Investigational Exemption for a New Drug,'' pursuant to Sec. 
312.1 of the Food, Drug, and Cosmetic Act Regulations (21 CFR 312.1), or 
are being imported under the short supply provisions of Sec. 601.22 of 
the Public Health Service Regulations (42 CFR 601.22).

[[Page 324]]

    (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 Biologics Standards, reports that 
the shipment was found upon examination not to conform to the law and 
the regulations, the port director shall not release the shipment but 
shall permit the exportation or destruction thereof under Customs 
supervision at the option 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 accompanied by a Department of Agriculture, Veterinary Services, 
Animal and Plant Health Inspection Service (APHIS) permit, be detained 
until proof is presented 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



Sec. 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 Agriculture, Customs 
officers and employees are authorized and directed to perform such 
functions as are necessary or proper on their part to carry out such 
regulations of the Department of Agriculture.
    (b) Inspection by an inspector of the Animal and Plant Health 
Inspection Service, Veterinary Services is required for all horses, 
cattle, sheep, other ruminants, and swine as a prerequisite to their 
entry from any foreign country. Orders listing the ports designated as 
quarantine stations for the inspection and quarantine of animals 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 director 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



Sec. 12.26  Importations of wild animals, fish, amphibians, reptiles, mollusks, and crustaceans; prohibited and endangered and threatened species; designated 
          ports of entry; permits required.

    (a)(1) The importation into the United States, the Commonwealth of 
Puerto Rico, and the territories and possessions of the United States of 
live specimens of:
    (i) Any species of the so-called ``flying 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 bulbul, Pycnonotus jocosus;
    (x) Any live fish or viable eggs of the family Clariidae;
    (xi) Any other species of wild mammals, wild birds, fish (including 
mollusks and crustacea), amphibians, reptiles, or the offspring or eggs 
of any of the foregoing which the Secretary of

[[Page 325]]

the Interior may prescribe by regulations to be injurious to human 
beings, to the interest of agriculture, horticulture, forestry, or to 
wildlife or the wildlife resources of the United States, is prohibited, 
except as may be authorized by the issuance of a permit by the Director, 
U.S. Fish and Wildlife Service, 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, products, or eggs 
thereof, appearing on the Endangered Species List published by the U.S. 
Fish and Wildlife Service, is imported, Customs release of the 
prohibited specimen or endangered fish or wildlife shall be refused 
unless there has been issued and presented in connection with entry a 
proper U.S. Fish and Wildlife Service permit authorizing the import 
transaction. In the absence of such permit, injurious specimens 
prohibited entry shall be required to be immediately exported or 
destroyed. Changes in injurious species and endangered species or 
subspecies which are prohibited or restricted importation 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 Species and 
Other Fish or Wildlife. Unreleased species or subspecies of live or dead 
endangered fish or wildlife, including parts, products, or eggs thereof, 
shall remain under detention subject to seizure and delivery to an 
appropriate 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 
certification 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 
prepared in accordance with 50 CFR 13.7(c), or otherwise exempted from 
the requirement of certification.
    (3) Regulations (50 CFR part 17) require 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 requirement by 50 CFR part 13 
or part 17. Such declaration on U.S. Fish and Wildlife Service Form 3-
177, available to importers through Customs ports of entry, shall be 
filed with the appropriate 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 of origin of all 
species or subspecies declared, designate and identify any species 
listed on the U.S. List of Endangered 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 requirements.
    (4) Federal agencies, subject to requirements 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 Service, upon filing the declaration on Form 3-177. Importation 
of bald or golden eagles, or their eggs is prohibited.
    (5) Customs entry for consumption or bonded warehousing of fish and 
wildlife, as defined in 50 CFR 17.2 (e) and (f), intended for 
importation into the United States, or admission into a foreign trade 
zone, shall be filed at a port of entry among those designated for 
Customs entry in 50 CFR part 17, appendix B. However, Customs entry for 
consumption or bonded warehousing of

[[Page 326]]

shipments subject to emergency diversion or otherwise authorized under 
regulations 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 release 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 permitted 
importation pursuant to 50 CFR 17.12 except in the case of an emergency 
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 Wildlife Service regulations or permit, may be entered only for 
immediate transportation without appraisement for movement under Customs 
bond to one of the designated ports of entry. Customs entry, release, 
and delivery of any shipment of shellfish and fishery products defined 
in 50 CFR 17.2(j) imported for commercial purposes is authorized at any 
port of entry, except insofar as such items include any species or 
subspecies which appears on the Endangered Species List in 50 CFR part 
17, appendix A.
    (b) Permits are required for the importation of wild animals and 
birds as follows:
    (1) Wild birds protected by the Migratory Bird Treaty Act (16 U.S.C. 
703 through 711) and the regulations promulgated thereunder (50 CFR part 
10), may be imported from foreign countries for scientific, propagating, 
or other limited purposes only under permits issued by the U.S. Fish and 
Wildlife Service, United States Department of the Interior, Washington, 
DC, 20240. State game departments, municipal game farms or parks, and 
public museums, 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 accompanied by 
Mexican export permits (50 CFR 16.3 and 16.5).
    (2) Game mammals (antelopes, mountain 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 accompanied by Mexican export permits (50 CFR 15.3) 
when imported from Mexico.
    (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 
country of exportation. All wild ruminants and swine must be inspected 
at designated ports of entry by veterinarians of the Animal and Plant 
Health Inspection Service, Veterinary Services, United States Department 
of Agriculture.
    (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 treatment center, and psittacine birds taken out 
of the United States but inadmissible under paragraph (c) of this 
section, may be imported when accompanied by a permit issued by the 
Surgeon General. Application for such a permit may be made to the Chief, 
Foreign 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, pigeons, doves, pheasants, grouse, 
partridges, quail, guinea fowl, and pea

[[Page 327]]

fowl, except from Canada, 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 birds are shipped from the country of 
origin. Such birds from Canada must be accompanied by a certificate 
issued by a Canadian Government veterinarian. All such birds must be 
inspected at designated ports of entry by veterinarians of the Animal 
and Plant Health Inspection Service, Veterinary Services, United States 
Department of Agriculture.
    (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 imported under prescribed 
conditions (see 42 CFR 71.164(e)) without permit and without prior 
confinement and treatment, 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, without permit, upon full compliance with 
prescribed conditions of those regulations 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 subject to the Foreign Quarantine 
Regulations 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 Department of the 
Interior, and such permit is not at hand when the birds arrive, 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 released if a bond 
is filed with the port director on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter, in an amount equal 
to the entered value plus estimated 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 
Customs custody at the risk and expense of the importer pending issuance 
of the permit.
    (f) If the permit referred to in paragraph (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 promptly 
recall the property, if delivered under bond, and shall require its 
immediate exportation at the expense of the importer or consignee.
    (g)(1) All import shipments of fish and wildlife subject to the 
regulations 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 statutory authority, shall be subject to 
examination or inspection by that agency's officer serving the port of 
entry, for determination as to permissible release or such other 
disposition as he may direct. Customs officers performing 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 submission by the importer of evidence 
sufficient to establish compliance with those regulations, any 
applicable permit 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 officers of the Customs that the species 
sought to be entered are prohibited or endangered species or subspecies 
imported under other names or descriptions, the importation shall be 
refused

[[Page 328]]

Customs release, and the importer shall be responsible for concluding 
arrangements acceptable to the regional director or other agent of the 
U.S. Fish and Wildlife Service for proper handling, custody, and care, 
at the importer's expense and risk, of the unreleased fish, birds, or 
other wildlife. No Customs disposition of the importation shall be 
concluded pending the determination by the U.S. Fish and Wildlife 
Service of the true nature of the species 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 importation 
shall be required as determined 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 appropriate foreign export permits, 
other acceptable foreign documentary evidence of lawful taking, 
transportation, or sale, or appropriate American consular certificates 
upon importation of fish and wildlife species or subspecies subject to 
such documentation requirements of 50 CFR 17.4 (c) and (d).
    (2) Any antique article imported under Sec. 10.53(g) of this 
chapter shall be entered at one of the following ports:

Boston, Massachusetts
New York, New York
Baltimore, Maryland, Philadelphia, Pennsylvania
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, Illinois

    (h) All invoices of animals and birds shall specify the species 
covered thereby and the number of each species. In the event of the 
return to the port director 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 description stated in the invoice and if no 
satisfactory explanation of any discrepancy is furnished, a claim for 
liquidated damages shall be issued under the bond.
    (i) The privilege of entry for immediate transportation granted by 
section 552, Tariff Act of 1930, shall not be allowed 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 inspection. However, 
entry for immediate transportation properly is allowed for any 
importation of fish, birds, or other wildlife which at the place of 
first arrival 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 
designated in 50 CFR part 17, appendix B, for Customs entry (see 
paragraphs (a) and (b) of this section). Ports of designated entry, 
inspection, quarantine, and related enforcement procedures covering 
certain animals and poultry and certain animal and poultry products 
imported into the United States are regulated by requirements and 
standards prescribed in regulations of the Secretary of Agriculture, 
Department 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 necessary for the species transported.
    (k) When any Customs officer has good reason to believe that wild 
animals 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 ascertain whether they have in fact been transported 
under such conditions. The investigation shall determine the provisions 
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, feeding, watering, 
bedding, and such other

[[Page 329]]

services as may be required for the species 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 Inspection 
Service, Veterinary Services, or Fish and Wildlife Service, or other 
officers or experts, may be called upon to assist customs officers in 
the matter.
    (l) Unless the port director is satisfied that the provisions of 18 
U.S.C. 42 have not been violated, he shall report the matter to the 
United States attorney for appropriate action.

[28 FR 14710, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
12.26, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 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 duties required of them under 
statutory provisions that prohibit or restrict the importation or 
exportation of wild animals or birds, or the dead bodies thereof, or the 
eggs of such birds, killed, captured, taken, transported, etc., contrary 
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]



Sec. 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 released from Customs custody, except as permitted under Sec. 
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 
regulation 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 documentation 
in the manner specified in 50 CFR 17.4(c) (1) or (2) required for import 
transactions subject to foreign laws or regulations regarding taking, 
transportation, or sale of wildlife including wild mammals and birds or 
parts or products thereof (see Sec. 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]



Sec. 12.29  Plumage and eggs of wild birds.

    (a) The provisions of Chapter 5, Additional 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 artificial 
flies used for fishing, (4) plumage on game birds killed in foreign 
countries by residents of the United States and not imported for sale or 
other commercial 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 fishing or for millinery 
purposes only under a permit issued by the Fish and Wildlife Service, 
United States Department 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 
warehouse, for consumption, unless the requisite permit is presented 
with the entry or withdrawal.
    (c) The importation of the eggs of wild nongame birds is prohibited 
except as dead natural history specimens for museum or scientific 
collection purposes. The eggs of migratory birds may be imported for 
propagating purposes or for scientific and other limited purposes under 
permits issued by the Fish and Wildlife Service, U.S. Department of the 
Interior, Washington, DC 20240. State game departments, municipal game 
farms or parks, and public museums, zoological parks or societies, and 
scientific or educational institutions may import the eggs of migratory 
birds without a permit (50 CFR 16.3). The eggs of certain game or 
migratory birds imported for hatching, such as ducks, geese, swans, 
turkeys,

[[Page 330]]

pigeons, doves, pheasant, grouse, partridges, quail, guinea fowl, and 
pea fowl, are subject to the regulations of the Animal and Plant Health 
Inspection Service, Veterinary Services, U.S. Department of Agriculture, 
Washington, DC 20250. Such regulations require that permits, except for 
eggs from Canada offered for entry at certain land border ports, must be 
obtained 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 veterinarian 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, Additional U.S. Note 
26, the eggs shall be seized and the importer accorded an opportunity to 
assent to forfeiture. In the event the importer refuses or fails to 
assent to the forfeiture of the prohibited eggs, the port director shall 
proceed to forfeit them under the provisions of the tariff act 
applicable to seizure and forfeiture of merchandise valued 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]



Sec. 12.30  Whaling.

    The importation and exportation of whales or whale products taken or 
processed in violation of the International 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 Convention Act of 1949 (16 U.S.C. 916 through 916(1)), or 
of any regulation issued under the Act (50 CFR part 351) is unlawful. 
Customs officers and employees shall perform all functions required of 
them by the above-mentioned convention, law and regulation.

[T.D. 89-1, 53 FR 51253, Dec. 21, 1988]



Sec. 12.31  Plant pests.

    The importation in a live state of insects 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 scientific purposes under regulations 
prescribed by the Secretary of Agriculture, 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, Animal and Plant Health Inspection Service, Plant 
Protection and Quarantine Programs of that Department for inspection and 
determination of their admissibility 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]



Sec. 12.32  Honeybees and honeybee semen.

    (a) Honeybees from any country may be imported into the U.S. by the 
Department of Agriculture for experimental or scientific purposes. All 
other importations of honeybees are prohibited except those from a 
country which the Secretary of Agriculture has determined to be free of 
diseases dangerous to honeybees.
    (b) Honeybee semen may be imported into the U.S. only from countries 
determined by the Secretary of Agriculture to be free of undesirable 
honeybees, and which take adequate precautions 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 Agriculture and the Secretary of 
the Treasury published in Treasury Decisions and the Federal Register 
from time to time.

[T.D. 85-3, 50 FR 1044, Jan. 9, 1985, as amended by T.D. 89-1, 53 FR 
51253, Dec. 21, 1988]

                                   Tea



Sec. 12.33  Importation of tea; entry; examination for customs purposes.

    (a) The importation of any merchandise 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

[[Page 331]]

through 50), is prohibited. Customs officers 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 
Sec. Sec. 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 purpose the customary designation shall be made of 
packages for examination in public stores.
    (e) If the invoice has not been received, the importer may use an 
additional 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, marking ``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



Sec. 12.34  Importation prohibited; certificate of inspection; importer's declaration.

    (a) The importation into the United States of white phosphorus 
matches is prohibited.
    (b) Invoices covering matches imported into the United States shall 
be accompanied by a certificate of official inspection of the Government 
of the country of manufacture in the following form:

              Certificate of Official Inspection of Matches

    I, ---------------- (Name), do hereby certify that I am the --------
---- (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;

------------------------------------------------------------------------
                                                             Name of
                                                          consignee and
Number of case    Description of     Name and address   address, vessel,
     mark             matches         of manufacturer      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 
manufactured with the use of poisonous white or yellow phosphorus.
    (d) The production of the above certificate shall not be required on 
the entry of matches manufactured in countries which prohibit the use of 
white or yellow phosphorus in the manufacture of matches.
    (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]



Sec. 12.35  [Reserved]

                             Narcotic Drugs



Sec. 12.36  Regulations of Bureau of Narcotics.

    The importation and exportation of narcotic drugs are governed by 
regulations of the Drug Enforcement Administration 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]

[[Page 332]]

                                 Liquors



Sec. 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 applicable when the port 
director is satisfied that the liquor is for personal use or for 
experimental purposes in the making of analyses, tests, or comparisons.
    (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 
manufacturing warehouses, or the bottling of imported distilled spirits 
in class 8 manipulation warehouses, shall not be permitted unless the 
proprietor has obtained an appropriate permit from the Bureau of 
Alcohol, Tobacco and Firearms.

[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]



Sec. 12.38  Labeling requirements; shipments.

    All shipments of liquor not labeled as required by 18 U.S.C. 1263 
214 and any vessel 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]

                           Unfair Competition



Sec. 12.39  Imported articles involving unfair 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 competition and unfair practices in the importation or 
sale of articles, the effect or tendency of which is to destroy, 
substantially injure, or prevent the establishment of an efficiently and 
economically operated United States industry, or to restrain or 
monopolize trade and commerce in the United States, are unlawful. After 
an investigation of an alleged violation of section 337, the U.S. 
International Trade Commission (``the Commission'') may determine that 
section 337 has been violated. The Commission 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 effective 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 notified 
of his disapproval. If the Commission's determination is not disapproved 
by the President during the 60-day period, or if he notifies the 
Commission 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 violation exists, it may direct the Secretary of the 
Treasury to exclude from entry into the United States the articles 
concerned which are imported by the person violating or suspected of 
violating section 337. The Commission's exclusion 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 determination of the Commission on which the order 
is based is disapproved by the President.
    (2) During the period the Commission's exclusion order remains in 
effect, 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

[[Page 333]]

337 becomes final, as set forth in paragraph (a) of this section, 
articles covered by the determination will be refused entry. If a 
violation of section 337 is found, the bond may be forfeited to the 
complainant under terms and conditions prescribed by the Commission. To 
enter merchandise that is the subject 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 importation 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 forfeiture of this bond.
    (3) Port directors shall notify each importer or consignee of 
articles released under bond pursuant to paragraph (b)(2) of this 
section when the Commission's determination of a violation 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 
supervision within the 30-day period.
    (4) In addition to the notice given to importers or consignees of 
articles released 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 Targeting and 
Enforcement, Office of International Trade, at CBP Headquarters, and to 
the Office of The General 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 Sec. 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 notified the owner, importer, 
or consignee 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.
    (2) Upon receipt of any seizure order issued by the Commission in 
accordance 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 administrative forfeiture 
proceedings. All petitions will be decided by the appropriate 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 accordance with standard Customs procedures.
    (5) Forfeited merchandise shall be disposed of in accordance with 
the Customs 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

[[Page 334]]

the use of the United States, or imported 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 
semiconductor chip products which infringe his rights in such mask work, 
the owner must obtain a court order enjoining, or an order of the U.S. 
International Trade Commission (USITC), under section 337, Tariff Act of 
1930, as amended (19 U.S.C.1337), excluding, importation of such 
products. Exclusion orders issued by the USITC are enforceable by CBP 
under paragraph (b) of this section. Court orders or exclusion orders 
issued by the USITC shall be forwarded, 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 registration 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



Sec. 12.40  Seizure; disposition of seized articles; reports to United States attorney.

    (a) Any book, pamphlet, paper, writing, advertisement, circular, 
print, picture, or drawing containing any matter advocating or urging 
treason or insurrection 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 bodily 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 consideration 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 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 importation was made deliberately with intent to evade the law, 
the facts and evidence shall be submitted to the United States attorney 
for consideration 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 simultaneously with 
the mailing to the importer of the seizure notice and the assent to 
forfeiture form. If the importer declines to execute an assent to 
forfeiture of the articles other than those mentioned in paragraph (a) 
of this section and fails to submit, within 30 days after being notified 
of his privilege to do so, a petition under section 618, Tariff Act of 
1930 (19 U.S.C. 1618), for remission of the forfeiture and permission to 
export the seized articles, then

[[Page 335]]

the U.S. Attorney, who has already received information concerning the 
seizure pursuant to this paragraph, may proceed with the condemnation 
action.
    (f) If seizure is made of books or other articles which do not 
contain obscene matter but contain information or advertisements 
relative to means of causing unlawful abortion, the procedure 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 declines to execute an assent to forfeiture on the ground that 
the book is a classic, or of recognized and established literary or 
scientific merit, a petition 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, 
advertisements 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]



Sec. 12.41  Prohibited films.

    (a) Importers of films, shall certify on Customs Form 3291 that the 
imported films contain no obscene or immoral matter, nor any matter 
advocating or urging treason or insurrection against the United States 
or forcible 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 certification may be made on Customs Form 3311 in 
the space designated ``Remarks'' 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 undeveloped 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.

      Merchandise Produced By Convict, Forced, or Indentured Labor



Sec. 12.42  Findings of Commissioner of Customs.

    (a) If any port director or other principal Customs officer has 
reason to believe that any class of merchandise that is being, or is 
likely to be, imported into the United States is being produced, whether 
by mining, manufacture, or other means, in any foreign locality 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 substantially the same information as is required in 
paragraph (b) of this section, if in the possession of the port director 
or other officer or readily available to him.
    (b) Any person outside the Customs Service who has reason to believe 
that merchandise produced in the circumstances 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

[[Page 336]]

belief to any port director or the Commissioner of Customs. Every such 
communication shall contain, or be accompanied by, (1) a full statement 
of the reasons for the belief, (2) a detailed description 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 conform. 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 
submitted 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 circumstances of the case and the Commissioner or his 
designated representative 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 conclusively indicates that 
merchandise within the purview of section 307 is being, or is likely to 
be, imported, he will promptly advise all port directors accordingly 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 Customs, with the approval of the Secretary 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 specified in a finding made under 
paragraph (f) of this section, which is imported directly 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 be considered and treated as an importation 
prohibited by section 307, Tariff Act of 1930, unless the importer 
establishes 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, 
Tariff Act of 1930 are currently in effect with respect to the 
merchandise listed below:

------------------------------------------------------------------------
             Merchandise                        Country            T.D.
------------------------------------------------------------------------
Furniture, clothes hampers, and palm   Ciudad Victoria,            53408
 leaf bags.                             Tamaulipas, Mexico.        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]



Sec. 12.43  Proof of admissibility.

    (a) If an importer of any article detained under Sec. 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 Commissioner 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 
seller 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

[[Page 337]]

to the United States, an additional certificate in such form and signed 
by the last owner or seller in such other country, substituting the 
facts of transportation from such other country for the statements with 
respect to shipment from the country of exportation, shall be so 
submitted.

                          Certificate of Origin

    I, ----------------, foreign seller or owner of the merchandise 
hereinafter described, certify that such merchandise, consisting of ----
------------ (Quantity) of ---------------- (Description) in ----------
---------- (Number and kind of packages) bearing the following marks and 
numbers ------------ was mined, produced, or manufactured by ----------
------ (Name) at or near ----------------, and was laden on board ------
-------------- (Carrier to the United States) at ---------------- (Place 
of lading) (Place of final departure from country of exportation) which 
departed from on ------------; (Date); and that -------------------- 
(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 thereof.
    Dated ------------

________________________________________________________________________
                                                             (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 ascertain 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 merchandise is 
admissible, the port director concerned will be advised to that effect, 
whereupon he shall release the merchandise upon compliance with the 
usual entry requirements.



Sec. 12.44  Disposition.

    (a) Export and abandonment. Merchandise detained pursuant to Sec. 
12.42(e) may be exported at any time prior to seizure pursuant to 
paragraph (b) of this section, or before it is deemed to have been 
abandoned as provided in this section, whichever occurs first. Provided 
no finding has been issued by the Commissioner of Customs under Sec. 
12.42(f) and the merchandise has not been exported within 3 months after 
the date of importation, the port director will ascertain whether the 
proof specified in Sec. 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 advises the port director that the 
proof furnished does not establish the admissibility of the merchandise, 
the port director will promptly advise the importer in writing that the 
merchandise is excluded from entry. Upon the expiration of 60 days after 
the delivery or mailing of such advice by the port director, the 
merchandise will be deemed to have been abandoned and will be destroyed, 
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 Sec. 12.42(f), if the Commissioner of 
Customs advises the port director that the proof furnished under Sec. 
12.43 does not establish the admissibility of the merchandise, or if no 
proof has been timely furnished, the port director shall seize the 
merchandise for violation of 19 U.S.C. 1307 and commence 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 concerning prison-labor goods.

[T.D. 00-52, 65 FR 45875, July 26, 2000]



Sec. 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 article comes to the attention 
of a port director, he shall detain the article and report the facts to 
the appropriate

[[Page 338]]

United States attorney. If the United States attorney advises the port 
director that action should be taken against the article, it shall be 
seized and held pending the receipt of further instructions 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



Sec. 12.48  Importation prohibited; exceptions 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; counterfeits 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 
making any of the foregoing, when brought into the United States, shall 
be seized, and delivered to the nearest representative of the United 
States Secret Service, together with a report of the facts, for 
appropriate disposition.
    (b) In accordance with section 504 of title 18, United States Code, 
the printing, publishing, or importation or the making or importation of 
the necessary plates for such printing or publishing for philatelic, 
numismatic, educational, historical, or newsworthy purposes in articles, 
books, journals, newspapers, or albums (but not for advertising 
purposes, except illustrations of stamps and paper money in philatelic 
or numismatic advertising of legitimate numismatists and dealers in 
stamps or publishers of or dealers in philatelic or numismatic articles, 
books, journals, newspapers, or albums) of black and white illustrations 
of canceled and uncanceled United States postage stamps shall be 
permitted.
    (c) The importation (but not for advertising purposes except 
philatelic advertising) 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 obligations or 
securities of any foreign government, bank, or corporation shall be 
permitted.
    (d) Printed matter of the character described in section 504, title 
18, United States Code, \32\ containing reproductions of postage or 
revenue stamps, executed in accordance with any exception stated in 
section 504, or colored reproductions of canceled foreign postage

[[Page 339]]

stamps may be admitted to entry. Printed matter containing illustrations 
or reproductions not executed in accordance with such exceptions shall 
be treated as prohibited importations. If no application for exportation 
or assent to forfeiture and destruction is received by the port director 
within 30 days from the date of notification to the importer that the 
articles are prohibited, the articles shall be reported to the United 
States attorney for forfeiture.
---------------------------------------------------------------------------

    \32\ Notwithstanding any other provision of this chapter, the 
following are permitted:
    (1) The printing, publishing, or importation, or the making or 
importation of the necessary plates for such printing or publishing, of 
illustrations of:
    (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 security of any foreign government, bank, or 
corporation, for philatelic, numismatic, educational, historical, or 
newsworthy purposes in articles, books, journals, newspapers, or albums 
(but not for advertising purposes, except illustrations of stamps and 
paper money in philatelic or numismatic advertising of legitimate 
numismatists and dealers in stamps or publishers of or dealers in 
philatelic or numismatic articles, books, journals, newspapers, or 
albums). Illustrations permitted by the foregoing provisions of this 
section shall be made in accordance with the following 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 illustrations of uncanceled 
postage stamps in color) shall be of a size less than three-fourths or 
more than one and one-half, in linear dimension, of each part of any 
matter so illustrated 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 illustrations 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 making the illustrations 
shall be destroyed after their final use in accordance with this 
section.
    (2) The making or importation, but not for advertising purposes 
except philatelic advertising, 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 
obligations or securities of any foreign government, 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).

[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



Sec. 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 provisions 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 
inapplicable to skins taken for scientific purposes under a special 
permit.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]



Sec. 12.61  Fur-seal or sea-otter skins permitted 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 authority 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 certificate.
    (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 agreement 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]



Sec. 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 regulation 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 pursuant thereto; and shall seize fur seals and sea otters, or the 
skins thereof, killed, captured, transported, imported, 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, Department 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. Customs Service with a detailed report 
of the facts in the particular case involved.

[28 FR 14710, Dec. 31, 1963, as amended by T.D. 89-1, 53 FR 51253, Dec. 
21, 1988]

[[Page 340]]



Sec. 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 utilized as dressed fur shall not be 
subject to the requirements of the regulations in this part.

Entry of Motor Vehicles, Motor Vehicle Engines and Nonroad Engines Under 
                      the Clean Air Act, as Amended



Sec. 12.73  Motor vehicle and engine compliance with Federal antipollution emission requirements.

    (a) Applicability of EPA requirements. This section is ancillary to 
the regulations of the U.S. Environmental Protection 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 information concerning EPA emission requirements. The 
requirements apply to imported motor vehicles, but do not apply to 
separately imported non-chassis mounted engines to be used in light-duty 
trucks or other light-duty vehicles. Other separately imported engines 
for heavy-duty motor vehicles are covered, 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 applicability 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 applicable emission requirements for the 
purpose of Customs admissibility and entry liquidation determinations. 
This paragraph does not apply to importations of ICI's covered by 
paragraph (d) of this section.
    (2) Pending certification. Vehicles otherwise covered by paragraph 
(b)(1) of this section which were manufactured for compliance with 
applicable emission requirements, but for which an application for a 
certificate of conformity is pending with the EPA may be conditionally 
released from Customs custody pending production of the certificate of 
conformity within 120 days of release.
    (c) Importation of vehicles previously in compliance--(1) Vehicles 
of returning residents. Vehicles of residents returning from Canada, 
Mexico or other countries 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 crossing the Canadian or Mexican border, or 
waive the requirements for Mexico or Canadian-registered vehicles of 
tourists or other travelers.
    (3) Participants in EPA-approved catalytic converter or oxygen 
sensor control programs. Further evidence of emissions compliance will 
not be required for catalytic converter or oxygen sensor-equipped 
vehicles imported for participating in EPA-approved catalytic converter 
or oxygen sensor control programs and subject to the requirements of 
those programs.
    (4) Previously labeled, modified or imported vehicles. Any other 
vehicle of United States or foreign origin manufactured with a catalytic 
converter or oxygen sensor, or any previously imported vehicle 
subsequently modified with a catalytic converter or oxygen sensor, will 
not be deemed in compliance with applicable emission requirements if 
used outside of the United States, Canada, Mexico, or other countries as 
EPA may designate, until the catalytic converter and/or oxygen sensor 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 approval and other requirements of EPA, replacement of a catalytic 
converter or oxygen sensor may be avoided if the equipment is 
disconnected before export from the United States and reconnected after 
subsequent importation.
    (d) Importation of vehicles by ICI's. Except for motor vehicles 
imported in the

[[Page 341]]

applicable circumstances covered by paragraphs (c), (e), (f), (g) or (h) 
of this section, an individual or business other than an independent 
commercial importer (ICI) holding a currently valid EPA certificate of 
conformity may not enter a motor vehicle which does not conform with EPA 
emission requirements. An ICI, subject to the more specific definition 
in EPA regulations, is an importer which does not have a contract with a 
foreign or domestic motor vehicle manufacturer for distributing products 
into the United States market. However, a motor vehicle may not be 
conditionally admitted unless it falls within one of the categories 
provided 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 admitted into the United States, the ICI must keep 
the vehicle in storage for a 15-working day period. This period follows 
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 emissions compliance. 
Individuals and businesses not entitled to enter nonconforming motor 
vehicles may arrange for their importation through an ICI certificate 
holder. In these circumstances, the ICI will not act as an agent or 
broker for Customs transaction purposes unless otherwise licensed or 
authorized to do so.
    (e) Exemptions and exclusions from emission requirements based on 
age of vehicle. The following motor vehicles, except as shown, may be 
imported by any person and do not have to be shown to be in compliance 
with emission requirements or modified before entitled to admissibility:
    (1) Gasoline-fueled light-duty trucks and light-duty motor vehicles 
manufactured before January 1, 1968;
    (2) Diesel-fueled light-duty motor vehicles 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 before January 1, 1970; and
    (6) Motor vehicles not otherwsie exempt from EPA emission 
requirements and more than 20 years old. Age is determined by 
subtracting the year of production (as opposed to model year) from the 
year of importation. The exemption under this subparagraph is available 
only if the vehicle is imported by an ICI.
    (f) Exemption for exports. A motor vehicle 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 exempt from 
applicable United States emission requirements. 40 CFR 85.1709.
    (g) Exemptions for diplomats, foreign military personnel and 
nonresidents. Subject to the condition that they are not resold in the 
United States, the following 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 foreign 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 principles of international law. For special 
documentation requirements see paragraph (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 repairs or alterations and which is not sold, leased, 
registered or licensed for use or operated on public roads or highways 
in the United States. 40 CFR 85.1511(b)(1);

[[Page 342]]

    (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 request is 
made under 40 CFR 85.1705(f) for a one-year extension;
    (3) Prototype vehicles. Any motor vehicle 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 paragraph (1) of this section;
    (4) Display vehicles. Any motor vehicle which is imported solely for 
display and which will not be sold, leased, registered or licensed for 
use on or operated 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 vehicle imported by anyone 
qualifying for a hardship exemption. 40 CFR 85.1511(c)(3).
    (i) Documentation requirements--(1) Exception for manufacturers. The 
special documentation requirements of this paragraph do not apply to the 
entry of any motor vehicles shown to be in compliance with applicable 
emission requirements under paragraph (b)(1) of this section relating to 
labeling.
    (2) Declarations of other importers. Release from Customs custody 
shall be refused 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 affirms its status as an original equipment 
manufacturer, an ICI holding an applicable certificate of conformity, or 
other status, and further declares or affirms the status or condition of 
the imported vehicles and the circumstances concerning importation 
including a citation to the specific paragraph or subparagraph in this 
section upon which application for conditional or final release from 
Customs custody is applied for.
    (3) Other documentation and information. An importer's declaration 
shall include or be submitted with the following further information and 
documentation:
    (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 his or her current address 
and telephone number in the United States if different than as provided 
for in paragraph (3)(A) of this paragraph;
    (C) Identification, where applicable, of the place where the vehicle 
will be stored until EPA approval of the importer's application to EPA 
for final admission as required for vehicles imported under 40 CFR 
85.1505, 85.1509, or 85.1512 having reference to certain importations 
under paragraphs (c)(4) or (d)(1) of this section;
    (D) Authorization for EPA enforcement officers to conduct 
inspections or testing otherwise permitted by the Clean Air Act and 
regulations promulgated thereunder;
    (E) Identification, where applicable, of the certificate of 
conformity by means of which the vehicle is being imported;
    (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 applicable;
    (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

[[Page 343]]

under paragraph (g)(2) of this section, there must also be attached to 
the declaration required under paragraph (i)(2) of this section a copy 
of the motor vehicle importer's official orders, if any, or if a 
qualifying member of the personnel of a foreign government on assignment 
in the United States, the name of the embassy to which the importer 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 circumstances described in either paragraph (c)(4), (h)(1), 
(h)(2), (h)(3) or (h)(4) of this section, the entry shall be accepted 
only if the importer or consignee gives a bond on Customs Form 301, 
containing the bond condition set forth in Sec. 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 director may allow for good cause shown, the importer or consignee 
shall deliver to the port director the prescribed statement. If the 
statement is not delivered 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 director those vehicles which were released 
under a bond required by this paragraph. 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 detention. If a motor vehicle is 
determined to be inadmissible before release from Customs custody, or 
inadmissible after release from Customs custody, the importer or 
consignee shall be notified in writing of the inadmissibility 
determination and/or redelivery requirement. However, if a motor vehicle 
cannot be released from Customs custody merely because the importer has 
failed to attach to the entry the documentation required by paragraph 
(i) of this section, the vehicle shall be held in detention 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 documentation has not been filed, a notice 
of inadmissibility will be issued.
    (l) Disposal of vehicles not entitled to admission. A motor vehicle 
denied admission under any provision of this section shall be disposed 
of in accordance with applicable Customs laws and regulations. However, 
a motor vehicle or engine will not be disposed of in a manner in which 
it may ultimately either directly or indirectly reach a consumer in a 
condition in which it is not in conformity with applicable EPA emission 
requirements.
    (m) Prohibited importations. The importation 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]



Sec. 12.74  Nonroad engine compliance with Federal antipollution emission requirements.

    (a) Applicability of EPA regulations. The requirements governing the 
importation of nonroad engines subject to conformance with applicable 
emissions standards of the U.S. Environmental Protection Agency (EPA) 
are contained in EPA regulations, issued under the Clean Air Act, as 
amended (42 U.S.C. 7401 et seq.). These EPA regulations should be 
consulted for detailed information as to the admission requirements for 
subject nonroad engines, as follows:
    (1) For nonroad compression-ignition engines at or above 37 
kilowatts, see 40 CFR part 89, subpart G;
    (2) For nonroad spark-ignition engines at or below 19 kilowatts, see 
40 CFR part 90, subpart G; and

[[Page 344]]

    (3) For marine spark-ignition engines, see 40 CFR part 91, subpart 
H.
    (b) Admission of nonconforming nonroad engines--(1) EPA declaration 
required. EPA Form 3520-21, ``Importation of Nonroad Engines and Nonroad 
Engines Incorporated Into Nonroad Equipment or Vehicles, Subject to 
Federal Air Pollution Regulations'', must be completed by the importer 
and retained on file by him before making a customs entry for such 
nonroad engines/equipment/vehicles.
    (2) Retention and submission of records to Customs. Documents 
supporting the information required in the EPA declaration must be 
retained by the importer for a period of at least 5 years in accordance 
with Sec. 163.4 of this chapter and shall be provided to Customs upon 
request.
    (c) Release under bond--(1) Conditional admission. If the EPA 
declaration states that the entry for a nonconforming nonroad engine is 
being filed under one of the exemptions described in paragraphs 
(c)(3)(i) through (c)(3)(iv) of this section, under which the engine 
must be conditionally admitted under bond, the entry for such engine 
shall be accepted only if a bond is given on Customs Form 301 containing 
the conditions set forth in Sec. 113.62 of this chapter for the 
presentation of an EPA statement that the engine has been brought into 
conformity with Federal emissions requirements.
    (2) Final admission. Should final admission be sought and granted 
pursuant to EPA regulations for an engine conditionally admitted 
initially under one of the exemptions described in paragraphs (c)(3)(i) 
through (c)(3)(iv) of this section, the importer or consignee shall 
deliver to the port director the prescribed statement. The statement 
shall be delivered within the period authorized by EPA for the specific 
exemption, or such additional period as the port director of Customs 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, either for export or other disposition under applicable Customs 
laws and regulations (see paragraph (e) of this section). If such engine 
is not redelivered within 5 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 89.612-96(d), 90.613(c) 
& (d), 91.705(c) & (d)).
    (3) Exemptions. The specific exemptions under which a nonconforming 
nonroad engine may be conditionally admitted, and for which a Customs 
bond is required, are as follows:
    (i) Repairs or alterations (see 40 CFR 89.611-96(b)(1), 
90.612(b)(1), 91.704(b)(1));
    (ii) Testing (see 40 CFR 89.611-96(b)(2), 90.612(b)(2), 
91.704(b)(2));
    (iii) Precertification (see 40 CFR 89.611-96(b)(3), 89.906); and
    (iv) Display (see 40 CFR 89.611-96(b)(4), 90.612(b)(3), 
91.704(b)(3)).
    (d) Notice of inadmissibility or detention. If an engine is found to 
be inadmissible either before or after release from Customs custody, the 
importer or consignee shall be notified in writing of the 
inadmissibility determination and/or redelivery requirement. However, an 
engine which cannot be released merely due to a failure to furnish with 
the entry any documentary information as required by EPA shall be held 
in detention by the port director for 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 information. 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 
required documentation has not been filed, a notice of inadmissibility 
will be issued.
    (e) Disposal of engines not entitled to admission; prohibited 
importations. A nonroad engine denied admission under EPA regulations 
shall be disposed of consistent with such EPA regulations and in 
accordance with applicable Customs laws and regulations. The importation 
of nonroad engines otherwise than as prescribed under EPA regulations is 
prohibited.

[T.D. 98-50, 63 FR 29122, May 28, 1998, as amended by T.D. 01-14, 66 FR 
8767, Feb. 2, 2001]

[[Page 345]]

  Motor Vehicles and Motor Vehicle Equipment Manufactured On or After 
                             January 1, 1968



Sec. 12.80  Federal motor vehicle safety standards.

    (a) Standards prescribed by the Department of Transportation. Motor 
vehicles and motor vehicle equipment manufactured on or after January 1, 
1968, offered for sale, or introduction or delivery for introduction in 
interstate Commerce, or importation into the United States are subject 
to Federal motor vehicle safety standards (``safety standards'') 
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 vehicle or equipment item was manufactured.
    (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 territory of the United States shall be 
denied entry unless the importer or consignee files with the entry a 
declaration, in duplicate, which declares or affirms one of the 
following:
    (i) The vehicle or equipment item was manufactured on a date when no 
applicable safety standards were in effect.
    (ii) The vehicle or equipment item conforms to all applicable safety 
standards (or, the vehicle does not conform solely because readily 
attachable equipment items which will be attached to the vehicle before 
it is offered for sale to the first purchaser for purposes other than 
resale are not attached) and bears a certification label or tag to that 
effect permanently affixed 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 has been or will 
be brought into conformity. Within 120 days after entry, or within a 
period not to exceed 180 days after entry, if additional time is granted 
by the Administrator, National Highway Traffic Safety Administration 
(``Administrator, NHTSA''), the importer or consignee will submit a true 
and complete statement to the Administrator, NHTSA, identifying the 
manufacturer, contractor, or other person who has brought the vehicle or 
equipment 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 Administrator, NHTSA, 
issues an approval letter to the port director stating that the vehicle 
or equipment item described in the declaration has been brought into 
conformity with all applicable safety standards.
    (iv) The vehicle or equipment item is intended solely for export, 
and the vehicle or equipment item, and the outside 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 importing 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 stated his passport 
number and country of issue, if he has a passport, on the declaration.
    (vi) The importer or consignee is a member 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 is within the class of persons for whom

[[Page 346]]

free entry of vehicles has been authorized by the Department of State in 
accordance with general principles of international law, is importing 
the vehicle or equipment item for purposes other than resale; and a copy 
of his official orders, if any, is attached to the declaration (or, if a 
qualifying member of the personnel of a foreign government on assignment 
in the U.S., the name of the Embassy to which he is accredited 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 alteration, and the statement 
required by 19 CFR 12.80(c)(2) or (c)(3) is attached to the declaration.
    (viii) The vehicle was not manufactured 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 vehicle'' 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 declaration filed under 
paragraph (b)(1) of this section shall include the name and address in 
the United States of the importer or consignee, the date and the entry 
number (if applicable), the make, model, and engine and body serial 
numbers, 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 paragraph (b)(1)(vii) of this 
section which relates to a vehicle or equipment item reported for the 
purpose of show, competition, repair, or alteration shall have attached 
a statement fully describing the use to be made of the vehicle or 
equipment item and its ultimate disposition.
    (3) Each declaration filed under paragraph (b)(1)(vii) of this 
section which relates to a vehicle imported solely for the purpose of 
test or experiment shall have attached a statement fully describing the 
test or experiment, the estimated 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 experiment.
    (4) Any declaration filed under paragraph (b)(1) of this section 
may, if appropriate, relate to more than one vehicle 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 Administration, 
Washington, DC 20590.
    (e) Release under bond. (1) If a declaration is filed under 
paragraph (b)(1)(iii) of this section, the entry shall be accepted only 
if the importer or consignee gives a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this 
chapter. An approval letter shall be issued upon approval by the 
Administrator, NHTSA, of the conformity statement submitted by the 
importer or consignee as provided 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 received 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

[[Page 347]]

allowed by the port director in the Notice 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 condition to the introduction of a vehicle or 
equipment item into the Customs territory 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 introduced by means of a fraudulent or 
false declaration. Any person who enters, introduces, attempts to enter 
or introduce, or aids or abets the entry, introduction, or attempted 
entry or introduction, 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 vehicle 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 redelivered to Customs custody under paragraph (e) 
of this section, which is not exported under Customs supervision 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 
regulations, except that disposition shall not result in the 
introduction of the vehicle or equipment item into the Customs 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



Sec. 12.85  Coast Guard boat and associated equipment safety standards.

    (a) Applicability of standards or regulations prescribed by the 
Commandant, U.S. Coast Guard. Boats and associated equipment (as 
hereinafter defined) are subject to U.S. Coast Guard safety regulations 
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 carrying of six or fewer passengers 
(see section 4.80 of this chapter on prohibitions against foreign 
vessels transporting passengers in the coastwise trade).
    (2) For purposes of Sec. 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 principally used for governmental purposes, 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 manufactured or sold for 
replacement, repair, or improvement of such system, part, or component 
(excluding radio equipment).

[[Page 348]]

    (ii) Any accessory or equipment for, or appurtenance to, a boat 
(excluding radio equipment).
    (iii) Any marine safety article, accessory, 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 accompanied by 
evidence of compliance with standards or regulations as follows:
    (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 requirements 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 manufacturer. 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 evidence required as condition of entry and release. Certain 
products shall be permitted entry and release without a compliance 
certification label or hull identification number affixed, as is 
required by subparts B and C, 33 CFR part 181, if they fall within one 
of the following categories, and if the conditions for entry and release 
specified for each category of product are met:
    (1) Products manufactured before standards or regulations in effect. 
For certain products manufactured before an applicable standard or 
regulation was in effect, a declaration will be filed in accordance with 
the requirements of paragraph (d) of this section. The declaration will 
state that the product was manufactured before the applicable standard 
or regulation was in effect. 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 alteration of the product is not 
required.
    (2) Products exempted from standards or regulations by Coast Guard 
Grant of Exemption. For certain products specifically exempted from 
applicable standards 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 state that the product has been 
specifically exempted from applicable standards 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 declaration.
    (3) Products to be brought into conformity. 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 safety standards or regulations, but that the 
importer or consignee will bring the product into conformity with safety 
standards or regulations, and will also state that the product will not 
be sold or offered for sale, or used on waters subject to the 
jurisdiction of the United States and on the high seas beyond the 
territorial seas for a vessel owned in the United States except for the 
purpose of bringing it into conformity, until the bond has been 
satisfied with respect to this obligation. To secure entry under this 
provision, bond must be given in accordance with paragraph (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 alterations to 
it for a period not exceeding 1 year from the date of entry, a 
declaration will be filed in accordance

[[Page 349]]

with paragraph (d) of this section. The declaration shall state that the 
importer 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 capacities set forth in 
this subparagraph, a declaration will be filed in accordance with 
paragraph (d) of this section. The declaration shall state that the 
importer or consignee is either a member 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 
product for purposes other than resale.
    (6) Certain products entered for tests, experiments, exhibits, or 
races. An importer 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 accordance 
with paragraph (d) of this section. The declaration shall state that the 
importer or consignee is importing the product solely for the stated 
purpose and that it will not be sold or operated 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 description of use for which the product is being 
imported, the time period estimated for completion, and disposition to 
be made of the product after completion. 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 declarations submitted must:
    (1) Be filed at the time of entry, in duplicate on Form CG-5096.
    (2) Be signed by the importer or consignee.
    (3) State the name and U.S. address of the importer or consignee.
    (4) State the entry number and date.
    (5) Provide the make, model, and hull identification number, if 
affixed, or date of manufacture if hull identification 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 principally 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 conditions set forth in Sec. 113.62 of this chapter, in such 
amount as the port director deems appropriate, when a declaration is 
made that a product is to be brought into conformity. When the importer 
or consignee of a product declares that it will be brought into 
conformity 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 beyond 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 statement shall identify 
the person or firm who has brought the product into conformity with the 
standards or regulations 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 consignee shall 
deliver to both the port director and the Commandant, U.S.

[[Page 350]]

Coast Guard, a copy of the statement for production of which the bond 
was obligated. If the statement is not delivered to the director of the 
port of entry of the product within 180 days after the date of entry, 
the importer or consignee shall deliver or cause to be delivered 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 products. 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 
Customs supervision within 90 days from the date of notice of refusal of 
admission or date of redelivery, shall be disposed of under Customs laws 
and regulations. 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



Sec. 12.90  Definitions.

    As used in Sec. Sec. 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 Control 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]



Sec. 12.91  Electronic products offered for importation under the Act.

    (a) Standards prescribed by the Department of Health and Human 
Services. Electronic products offered for importation into the customs 
territory of the United States are subject to standards prescribed under 
section 358 of the Act (42 U.S.C. 263f) unless intended solely for 
export. Prescribed standards shall not apply to any electronic product 
intended solely for export if:
    (1) Such product and the outside of any shipping container used in 
the export of such product are labeled or tagged to show that it is 
intended for export, and
    (2) Such product meets all the applicable 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 standards 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 performance standard (the date of 
manufacture shall be specified); or
    (2) That the electronic products 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), 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 product; 
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 research, 
investigations, studied, demonstrations, or training, (ii) that the 
products will not be introduced into commerce and when the use for which

[[Page 351]]

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, chapter 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 accordance 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 sampling of a product offered for 
importation has been requested by the Secretary 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 importer of record prompt notice of delivery of, or 
intention to deliver, the sample. If the notice so requires, the owner 
or importer of record shall hold the shipment of which the sample is 
typical 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 product fulfills the requirements of the Act.
    (d) Release under bond. If a declaration filed in accordance with 
paragraph (b) of this section states that the entry is being made under 
circumstances described in paragraph (b)(4) of this section, 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 Sec. 
113.62 of this chapter, for the production of a notification from the 
Secretary of Health and Human Services or his designee, in accordance 
with 21 CFR 1005.23, that the electronic product described in the 
declaration filed by the importer of record is in compliance with the 
applicable standards. The bond shall be in an amount deemed appropriate 
by the port director. Within 180 days after the entry of such additional 
period as the port director may allow for good cause shown, the importer 
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 of entry of 
the electronic products within 180 days of the date of entry or such 
additional period as may be allowed 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 products which were released. In the 
event that any electronic products are not redelivered to Customs 
custody or exported under Customs supervision within the period allowed 
by the port director in the Notice of Redelivery (Customs Form 4647), 
liquidated damages 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 exemptions. For certain electronic 
products 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 special 
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 notification of compliance from 
the Secretary of Health and Human Services shall be deemed to have been 
satisfied.
    (f) Merchandise refused entry. If electronic 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 
exported under Customs supervision

[[Page 352]]

within 90 days from the date of notice of refusal of admission or date 
of redelivery, shall be disposed of under Customs 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



Sec. 12.95  Definitions.

    Terms as used in Sec. Sec. 12.96 through 12.103 of this part are 
defined as follows:
    (a) Switchblade knife. ``Switchblade knife'' means any imported 
knife, or components thereof, or any class of imported 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 automatically by hand pressure applied to a 
button 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 automatically by hand pressure applied to a button or 
device in the handle of the knife or by operation of inertia, gravity, 
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 operation 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 preparation. ``Insignificant 
preliminary preparation'' means preparation with the use of ordinarily 
available tools, instruments, devices, and materials by one having no 
special manual training or skill for the purpose of modifying blade 
heels, relieving binding parts, altering spring restraints, or making 
similar minor alterations which can be accomplished in a relatively 
short period of time.
    (c) Utilitarian use. ``Utilitarian use'' includes but is not 
necessarily limited to use:
    (1) For a customary household purpose;
    (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 pursuits 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]



Sec. 12.96  Imports unrestricted under the Act.

    (a) Common and special purpose knives. Imported knives with a blade 
style designed for a primary utilitarian use, as defined in Sec. 
12.95(c), shall be admitted to unrestricted entry provided that in 
condition as entered the imported knife is not a switchblade knife as 
defined in Sec. 12.95(a)(1). Among admissible common and special 
purpose knives are jackknives and similar standard pocketknives, 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. Importations 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 release 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]

[[Page 353]]



Sec. 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]



Sec. 12.98  Importations permitted by statutory 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 acting in the performance of his duty; or
    (c) A switchblade knife, other than a ballistic knife, having a 
blade not exceeding 3 inches in length is in the possession 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]



Sec. 12.99  Procedures for permitted entry.

    (a) Declaration required. The entry of switchblade knives, the 
importation of which is permitted under Sec. 12.98 shall be accompanied 
by a declaration, in duplicate, of the importer or consignee stating 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 entered, 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 aggregate entered value of the 
importation.
    (3) Importation by a one-armed person. A statement that the knife 
has a blade not exceeding 3 inches in length and is possessed by and 
transported on the declarant's person solely for his necessary personal 
convenience, accommodation, and use as a one-armed individual.
    (b) Attachments to declaration. Details for purposes of a 
declaration required under paragraph (a) of this section may be 
furnished by reference in the declaration to attachment of the original 
or copy of the contract or other documentation which contains the 
information.
    (c) Execution of declaration. Declarations required by paragraph (a) 
of this section shall be executed as follows:
    (1) Contract supplier; Armed Forces branch; member or employee. 
Declarations made under paragraph (a) or (b) of Sec. 12.98 shall affirm 
that facts and data furnished are declared on knowledge, information, or 
belief of a signing officer, partner, or authorized representative of an 
importing contract supplier or of a commissioned officer, contracting 
officer, or employee authorized to represent an Armed Forces importing 
branch. The signature to a declaration shall appear over the declarant'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 Sec. 
12.98, signed by the eligible person, shall be presented upon his 
arrival directly to a Customs officer who shall visually confirm the 
facts declared. An eligible knife shall be released only to the 
declarant.
    (d) Verification of declared information. The importer, consignee, 
or declarant of knives permitted entry under Sec. 12.98 upon request 
shall furnish Customs additional 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

[[Page 354]]

discrepancy disclosed by the importation, entry, or related 
documentation;
    (3) Establish the declarant's authority to act; or
    (4) Authenticate a signature.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971]



Sec. 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 
Government, under the procedures of Sec. Sec. 18.25 through 18.27 of 
this chapter.
    (b) Common or contract carriers. In accordance with 15 U.S.C. 
1244(1), excepted from the penalties of the Act are the shipping, 
transporting, or delivering for shipment in interstate commerce, in the 
ordinary course of business of common or contract carriage, of any 
switchblade knife. However, imported switchblade knives as defined in 
Sec. 12.95(a) so shipped or transported to a port of entry or place of 
Customs examination are prohibited importations subject to Sec. Sec. 
12.95-12.103 and disposition as therein required, authorized, or 
permitted.

[T.D. 71-243, 36 FR 18860, Sept. 23, 1971, as amended by T.D. 90-50, 55 
FR 28192, July 10, 1990]



Sec. 12.101  Seizure of prohibited switchblade knives.

    (a) Importations contrary to law. Inadmissible importations which 
are not exported in accordance with Sec. 12.100(a) shall be seized 
under 19 U.S.C. 1595a(c).
    (b) Notice of seizure. Notice of Customs seizure shall be sent or 
given to the importer or consignee, which shall inform him of his right 
to file a petition under section 618, Tariff Act of 1930, as amended (19 
U.S.C. 1618), for remission of the forfeiture and permission 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]



Sec. 12.102  Forfeiture.

    If the importer or consignee fails to submit, within 60 days after 
being notified 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 export the seized importation, the seized 
prohibited knives shall be forfeited in 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]



Sec. 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 question of criminal liability, the evidence, accompanied 
by reports of investigative disclosures, findings, and recommendation, 
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.



Sec. 12.104  Definitions.

    For purposes of Sec. Sec. 12.104 through 12.104i:
    (a) The term, archaeological or ethnological material of the State 
Party to the 1970 UNESCO Convention means--
    (1) Any object of archaeological interest. 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

[[Page 355]]

    (iii) Was normally discovered as a result of scientific excavation, 
clandestine or accidental digging, or exploration on land or under 
water; or in addition to paragraphs (a)(1) (i) and (ii) of this section;
    (iv) Meets such standards as are generally acceptable as 
archaeological such as, but not limited to, artifacts, buildings, parts 
of buildings, or decorative elements, without regard to whether the 
particular objects are discovered by exploration or excavation;
    (2) Any object of ethnological interest. No object may be considered 
to be an object of ethnological interest unless such object--
    (i) Is the product of a tribal or nonindustrial society, and
    (ii) Is important to the cultural heritage of a people because of 
its distinctive characteristics, comparative rarity, or its contribution 
to the knowledge of the origins, development or history of that people;
    (3) Any fragment or part of any object referred to in paragraph (a) 
(1) or (2) of this section which was first discovered within, and is 
subject to export control by the State Party.
    (b) The term Convention means the Convention on the Means of 
Prohibiting and Preventing the Illicit Import, Export, and Transfer of 
Ownership of Cultural Property adopted by the General 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 includes 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 interest;
    (2) Property relating to history, including the history of science 
and technology 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 excavations (including regular and 
clandestine) 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 engraved seals;
    (6) Objects of ethnological interest;
    (7) Property of artistic interest, such as:
    (i) Pictures, paintings and drawings produced entirely by hand on 
any support and in any material (excluding industrial designs and 
manufactured articles 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, photographic and cinematographic 
archives;
    (11) Articles of furniture more than 100 years old and old musical 
instruments.
    (d) The term designated archaeological or ethnological material 
means any archaeological 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 
institution organized on a permanent basis for essentially educational 
or esthetic purposes, 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 regulations, the term recognized 
museum under the Cultural Property Implementation Act shall be 
synonymous with museum.

[[Page 356]]

    (f) The term Secretary means the Secretary 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 Convention.
    (h) The term United States or U.S., includes 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 responsible.

[T.D. 86-52, 51 FR 6907, Feb. 27, 1986; 51 FR 15316, Apr. 23, 1986; 51 
FR 17332, May 12, 1986]



Sec. 12.104a  Importations prohibited.

    (a) No article of cultural property documented as appertaining to 
the inventory of a museum or religious or secular public monument or 
similar institution 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, whichever 
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 Sec. 12.104g, that is exported (whether 
or not such exportation is to the U.S.) from the State Party after the 
designation of such material under 19 U.S.C. 2604 may be imported into 
the U.S. unless the State Party issues a certificate or other 
documentation which certifies that such exportation was not in violation 
of the laws of the State Party.



Sec. 12.104b  State Parties to the Convention.

    (a) The following is a list of State Parties which have deposited an 
instrument of ratification, acceptance, accession or succession, the 
date of such deposit 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.
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.
Columbia.............................  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    May 13, 1983 (R)..........................  Aug. 13, 1983.
 of.

[[Page 357]]

 
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:
1. The Republic of Armenia, the Republic of Georgia, and the Republic of Tadjikistan each deposited a
  notification of succession 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
  continues without interruption the participation of the USSR in all UNESCO Conventions. The instrument of
  ratification was deposited 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 accomplished 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]



Sec. 12.104c  Importations permitted.

    Designated archaeological or ethnological 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 documentation, 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 designated material was exported from the

[[Page 358]]

State Party not less than 10 years before the date of such entry and 
that neither the person for whose account the material is imported (or 
any related person) contracted for or acquired an interest, directly or 
indirectly, in such material more than 1 year before that date of entry, 
or
    (c) Satisfactory evidence is presented to the port director that 
such designated 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 imported, 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 indirectly, in such 
material more than 1 year before the date of entry of the material; and
    (ii) A statement provided by the consignor, 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 reasons 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 imported, 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 importer 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 person to an importer, 
or to a person for whose account material is imported, if such person--
    (1) Is a member of the same family as the importer or person of 
account, including, but not limited to, membership 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 venture; or
    (3) Is a corporation or other legal entity in which the importer or 
person of account directly or indirectly owns, controls, or holds power 
to vote 20 percent or more of the outstanding voting stock or shares in 
the entity.



Sec. 12.104d  Detention of articles; time in which to comply.

    In the event an importer cannot produce the certificate, 
documentation, or evidence required in Sec. 12.104c at the time of 
making entry, the port director shall take the designated archaeological 
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 
consignee until the certificate, documentation, or evidence is presented 
to such officer. The certificate, documentation, or evidence must be 
presented within 90 days after the date on which the material is taken 
into Customs custody, or such longer period as may be allowed by the 
port director for good cause shown.



Sec. 12.104e  Seizure and forfeiture.

    (a) Whenever any designated archaeological or ethnological material 
is imported into the U.S. in violation of 19 U.S.C. 2606, and the 
importer states in writing that he will not attempt to secure the 
certificate, documentation, or evidence required by Sec. 12.104c, or 
such certificate, documentation, or evidence is not presented to the 
port director before the expiration of the time provided in Sec. 
12.104d, the material shall be seized and summarily forfeited to the

[[Page 359]]

U.S. in accordance with part 162 of this chapter.
    (1) Any designated archaeological or ethnological material which is 
forfeited 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 paragraph (a)(1)(ii) of this 
section, be disposed of in the manner prescribed by law for articles 
forfeited for violation of the customs laws. No return of material 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 incurred 
incident to the return and delivery, and complies with such other 
requirements 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 provisions of Title III of Pub. 
L. 97-446, 2609(c):
    (i) First be offered for return to the State Party in whose 
territory is situated the institution referred to in 19 U.S.C. 2607 and 
shall be returned if that State Party bears the expenses incident 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.



Sec. 12.104f  Temporary disposition of materials and articles.

    Pending a final determination as to whether any archaeological or 
ethnological material, or any article of cultural 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 permit such material or article to be retained at a 
museum or other cultural 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.



Sec. 12.104g  Specific items or categories designated by agreements or emergency actions.

    (a) The following is a list of agreements imposing import 
restrictions on the described articles of cultural property of State 
Parties. The listed Treasury Decision contains the Designated Listing 
with a complete description of specific items or categories of 
archaeological or ethnological material designated 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 period may be 
extended for additional periods 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 
extension is indicated in the listing.

----------------------------------------------------------------------------------------------------------------
                  State party                            Cultural  Property                 Decision No.
----------------------------------------------------------------------------------------------------------------
Bolivia........................................  Archaeological and Ethnological      T.D. 01-86 extended by CBP
                                                  Material from Bolivia.                              Dec. 06-26
Cambodia.......................................  Khmer Archaeological Material                    CBP Dec. 03-28
                                                  from the 6th century through the
                                                  16th century A.D.
Canada.........................................  Archaeological artifacts and                         T.D. 97-31
                                                  ethnological material culture of
                                                  Canadian origin.

[[Page 360]]

 
Colombia.......................................  Pre-Columbian archaeological                     CBP Dec. 06-09
                                                  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.
Cyprus.........................................  Archaeological material of pre-                  CBP Dec. 07-52
                                                  Classical and Classical periods
                                                  ranging approximately from the
                                                  8th millennium B.C. to 330 A.D.
                                                  and ecclesiastical and ritual
                                                  ethnological material
                                                  representing the Byzantine
                                                  period ranging from
                                                  approximately the 4th century
                                                  A.D. through approximately the
                                                  15th century A.D.
El Salvador....................................  Archaeological material              T.D. 95-20 extended by CBP
                                                  representing Prehispanic                            Dec. 05-10
                                                  cultures of El Salvador.
Guatemala......................................  Archaeological material from         T.D. 97-81 extended by CBP
                                                  sites in the Peten Lowlands of                      Dec. 07-79
                                                  Guatemala, and related Pre-
                                                  Columbian material from the
                                                  Highlands and the Southern Coast
                                                  of Guatemala.
Honduras.......................................  Archaeological material of Pre-                  CBP Dec. 04-08
                                                  Colombian cultures ranging
                                                  approximately from 1200 B.C. to
                                                  1500 A.D.
Italy..........................................  Archaeological material of pre-      T.D. 01-06 extended by CBP
                                                  Classical, Classical, and                           Dec. 06-01
                                                  Imperial Roman periods ranging
                                                  approximately from the 9th
                                                  century B.C. to the 4th century
                                                  A.D..
Mali...........................................  Archaeological material from Mali                CBP Dec. 07-77
                                                  from the Paleolithic Era (Stone
                                                  Age) to approximately the mid-
                                                  eighteenth century.
Nicaragua......................................  Archaeological material of pre-      T.D. 00-75 extended by CBP
                                                  Columbian cultures ranging                          Dec. 05-33
                                                  approximately from 8000 B.C. to
                                                  1500 A.D.
Peru...........................................  Archaeological artifacts and         T.D. 97-50 extended by CBP
                                                  ethnological material from Peru.                    Dec. 07-27
----------------------------------------------------------------------------------------------------------------

    (b) The following is a list of emergency actions imposing import 
restrictions on the described articles of cultural property of State 
Parties. The listed decision contains a complete description of specific 
items or categories of archaeological or ethnological material 
designated by the emergency actions 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 
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 condition continues to apply with respect to the 
archaeological or ethnological material. Any such extension is indicated 
in the listing.

----------------------------------------------------------------------------------------------------------------
                  State party                            Cultural property                  Decision No.
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------


[[Page 361]]


[T.D. 86-52, 51 FR 6907, Feb. 27, 1986, as amended by T.D. 90-3, 55 FR 
1810, Jan. 19, 1990; T.D. 90-37, 55 FR 19030, May 7, 1990; T.D. 91-34, 
56 FR 15182, Apr. 15, 1991; T.D. 92-28, 57 FR 9975, Mar. 23, 1992; T.D. 
93-34, 58 FR 29349, May 20, 1993; T.D. 93-74, 58 FR 49430, Sept. 23, 
1993; T.D. 94-54, 59 FR 32903, June 27, 1994; T.D. 94-84, 59 FR 54818, 
Nov. 2, 1994; T.D. 95-20, 60 FR 13360, 13361, Mar. 10, 1995; T.D. 97-31, 
62 FR 19492, Apr. 22, 1997; T.D. 97-50, 62 FR 31721, June 11, 1997; T.D. 
97-80, 62 FR 49596, Sept. 23, 1997; T.D. 97-81, 62 FR 51774, Oct. 3, 
1997; T.D. 99-35, 64 FR 17531, Apr. 12, 1999; T.D. 99-88, 64 FR 67481, 
Dec. 2, 1999; T.D. 00-16, 65 FR 12470, Mar. 9, 2000; T.D. 00-75, 65 FR 
64142, Oct. 26, 2000; T.D. 01-06, 66 FR 7401, Jan. 23, 2001; T.D. 01-86, 
66 FR 63499, Dec. 7, 2001; 67 FR 953, Jan. 8, 2002; T.D. 02-30, 67 FR 
38878, June 6, 2002; T.D. 02-37, 67 FR 47449, July 19, 2002; T.D. 02-55, 
67 FR 59160, Sept. 20, 2002; T.D. 02-56, 67 FR 61260, Sept. 30, 2002; 
CBP Dec. 03-25, 68 FR 51904, Aug. 29, 2003; CBP Dec. 03-28, 68 FR 55004, 
Sept. 22, 2003; 68 FR 58371, Oct. 9, 2003; CBP Dec. 04-08, 69 FR 12270, 
Mar. 16, 2004; CBP Dec. 05-10, 70 FR 11540, Mar. 9, 2005; CBP Dec. 05-
33, 70 FR 61032, Oct. 20, 2005; CBP Dec. 06-01, 71 FR 3001, Jan. 19, 
2006; CBP Dec. 06-09, 71 FR 13766, Mar. 17, 2006; CBP Dec. 06-22, 71 FR 
51726, Aug. 31, 2006; CBP Dec. 06-26, 71 FR 69477, Dec. 1, 2006; CBP 
Dec. 07-27, 72 FR 31177, June 6, 2007; CBP Dec. 07-52, 72 FR 38474, July 
13, 2007; CBP Dec. 07-77, 72 FR 53416, Sept. 19, 2007; CBP Dec. 07-79, 
72 FR 54539, Sept. 26, 2007]



Sec. 12.104h  Exempt materials and articles.

    The provisions of these regulations shall not apply to--
    (a) Any archaeological or ethnological material or any article of 
cultural 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. Information 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 cultural significance imported into the 
United States for temporary display or exhibition, and for other 
purposes'', approved 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 period of not less than 3 
consecutive years by a recognized museum or religious 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 publication of such institution, any regularly 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 article or 
materials sought to be exempted from these regulations,
    (ii) Such material or article has been exhibited to the public for a 
period or periods aggregating at least 1 year during such 3-year period, 
or
    (iii) Such article or material has been cataloged and the catalog 
material 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 exhibited for not less than 5 years during such period in a 
recognized museum or religious or secular monument or similar 
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 
prescribe) of its location within the U.S.; and
    (4) If none of the preceding subparagraphs apply, has been within 
the U.S. for a period of not less than 20 consecutive years and the 
claimant establishes that it purchased the material or article for value 
without knowledge or reason to believe that it was imported in violation 
of law.



Sec. 12.104i  Enforcement.

    In the customs territory of the United States, and in the U.S. 
Virgin Islands, the provisions of these regulations shall be enforced by 
appropriate customs officers. In any other territory

[[Page 362]]

or area within the U.S., but not within such customs territory or the 
U.S. Virgin Islands, such provisions shall be enforced by such persons 
as may be designated by the President.

     Pre-Columbian Monumental and Architectural Sculpture and Murals



Sec. 12.105  Definitions.

    For purposes of Sec. Sec. 12.106 through 12.109:
    (a) The term pre-Columbian monumental 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-Columbian Indian culture of 
Belize, Bolivia, Columbia, Costa Rica, Dominican Republic, Ecuador, El 
Salvador, Guatemala, 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 calendrical 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, observatories, plazas, platforms, facades, reservoirs, 
retaining walls, roadways, shrines, temples, tombs, walls, walkways, 
wells;
    (3) Architectural masks, decorated capstones, decorative beams of 
wood, frescoes, friezes, glyphs, graffiti, mosaics, moldings, or any 
other carving or decoration which had been part of or affixed to any 
monument or architectural structure, including cave paintings or 
designs;
    (4) Any fragment or part of any stone carving or wall art listed in 
the preceding subparagraphs.
    (c) The term country of origin, as applied to any pre-Columbian 
monumental or architectural sculpture or mural, means the country where 
the sculpture or mural was first discovered.

[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]



Sec. 12.106  Importation prohibited.

    Except as provided in section 12.107, no pre-Columbian monumental or 
architectural sculpture or mural which is exported (whether or not such 
exportation 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]



Sec. 12.107  Importations permitted.

    Pre-Columbian monumental or architectural sculpture or mural for 
which entry is sought into the Customs territory of the United States 
will be permitted entry if at the time of making entry:
    (a) A certificate, issued by the Government of the country of origin 
of such sculpture or mural, in a form acceptable to the Secretary, 
certifying that such exportation was not in violation 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 country 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 Sec. 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]



Sec. 12.108  Detention of articles; time in which to comply.

    If the importer cannot produce the certificate or evidence required 
in Sec. 12.107 at the time of making entry, the port director shall 
take the sculpture 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 certificate or evidence is presented to

[[Page 363]]

such officer. The certificate or evidence must be presented within 90 
days after the date on which the sculpture or mural is taken into 
Customs custody, 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]



Sec. 12.109  Seizure and forfeiture.

    (a) Whenever any pre-Columbian monumental or architectural sculpture 
or mural listed in Sec. 12.105 is detained in accordance with Sec. 
12.108 and the importer 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 Sec. 12.108, the sculpture or mural shall be 
seized and summarily forfeited to the United States in accordance 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 incurred 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 Sec. 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



Sec. 12.110  Definitions.

    Except as otherwise provided below, the terms used in Sec. Sec. 
12.111 through 12.117 shall have the meanings set forth for those terms 
in the Federal Insecticide, Fungicide, and Rodenticide Act, as amended 
(7 U.S.C. 136 et seq.), hereinafter referred to as ``the Act.'' The term 
Administrator shall mean the Administrator of the Environmental 
Protection Agency.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 12.111  Registration.

    All imported pesticides are required to be registered under the 
provisions of section 3 of the Act, and under the regulations (40 CFR 
162.10) promulgated thereunder by the Administrator before 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 misleading in any particular.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 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 Administrator a Notice of 
Arrival of Pesticides and Devices (Environmental Protection Agency Form 
3540-1), hereinafter referred to as a Notice of Arrival, prior to the 
arrival of the shipment in the United States. The Administrator shall 
complete the Notice of 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 importer 
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 Abbreviated List of Pesticides compiled by the 
Environmental Protection Agency, may be entered without the submission 
of the Notice of Arrival.

[T.D. 75-194, 40 FR 32321, Aug. 1, 1975]



Sec. 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 completed by the 
Administrator and indicating the Customs action to be taken with respect 
to the shipment. The port director shall compare entry documents for the 
shipment of pesticides or

[[Page 364]]

devices with the Notice of Arrival and notify the Administrator of any 
discrepancies.
    (b) Notice of arrival not presented. When a shipment of pesticides 
or devices arrives in the United States without the presentation by the 
importer or his agent of the Notice of Arrival completed by the 
Administrator, the shipment shall be detained by the director of the 
importer's risk and expense until the completed Notice of Arrival is 
presented or until other disposition is ordered by the Administrator, 
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 importer or his agent 
requesting an extension 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 completed Notice of Arrival or nonreceipt of an order 
of the Administrator as to its disposition shall be treated as a 
prohibited importation. The port director shall cause the destruction of 
any such shipment not exported by the consignee within 90 days after the 
expiration of the detention period specified or authorized pursuant to 
Sec. 12.113(b).

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 12.114  Release or refusal of delivery.

    If the completed Notice of Arrival directs the port director to 
release the shipment of pesticides or devices, the shipment shall be 
released to the consignee. If the completed Notice of Arrival directs 
the port director to refuse delivery of the shipment, the shipment shall 
be refused delivery and treated as a prohibited importation. The port 
director shall cause the destruction of any shipment refused delivery 
and not exported by the consignee within 90 days after notice of such 
refusal of delivery.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 12.115  Release under bond.

    If the completed Notice of Arrival so directs, a shipment of 
pesticides or devices shall be detained at the importer's expense by the 
port director pending an examination by the Administrator to determine 
whether the shipment complies with the requirements of the Act. However, 
a shipment detained for examination may be released to the consignee 
prior to a determination by the Administrator provided a bond is 
furnished on Customs Form 301, containing the bond conditions set forth 
in Sec. 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 pesticides 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]



Sec. 12.116  Samples.

    Upon the request of the Administrator, either on the completed 
Notice of Arrival or otherwise, the port director shall deliver to the 
Administrator samples of the imported pesticides or devices, together 
with all accompanying labels, circulars, and advertising matter 
pertaining to such merchandise. The port director shall notify the 
consignee, in writing, that the samples of imported pesticides or 
devices, together with all accompanying labels, circulars, and 
advertising matter pertaining to such merchandise have been delivered to 
the Administrator.

[T.D. 75-194, 40 FR 32322, Aug. 1, 1975]



Sec. 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 Administrator 
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

[[Page 365]]

shall be notified promptly by the Administrator of the nature of the 
violation and be given a reasonable time, not to exceed 20 days, to 
submit written material or, at his option, to appear before the 
Administrator and introduce 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 delivery to the consignee, or (2) if the shipment has 
been released to the consignee under bond, demand redelivery of the 
shipment under the terms of the bond. If the merchandise is not 
redelivered within 30 days after the date of demand by the port 
director, the port director shall issue a demand for liquidated 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 director shall cause the destruction of any 
merchandise refused delivery to the consignee, or redelivered by the 
consignee pursuant to a demand therefor, and not exported by the 
consignee within 90 days after notice of such refusal 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.



Sec. 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 governed by the Toxic 
Substances Control Act (``TSCA'') (15 U.S.C. 2601 et seq.), and by 
regulations issued under the authority of section 13(b), TSCA (15 U.S.C. 
2612(b)) by the Secretary of the Treasury in consultation with the 
Administrator, Environmental Protection Agency (``EPA'').



Sec. 12.119  Scope.

    Sections 12.120 through 12.127 apply to the importation into the 
customs territory of the United States of chemical 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 Administrator by specific rule under TSCA.



Sec. 12.120  Definitions.

    Except as otherwise provided below, the terms used in Sec. Sec. 
12.121 through 12.127 have the meanings set forth for those terms in 
TSCA.
    (a) Article--(1) Article means a manufactured item which:
    (i) Is formed to a specific shape or design during manufacture,
    (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 Sec. 12.120(a)(2); except that fluids and particles are 
not considered articles regardless of shape or design.
    (2) The allowable changes of composition, referred to in Sec. 
12.120(a)(1), are those which result from a chemical reaction that 
occurs upon the end use of other chemical substances, mixtures, or 
articles such as adhesives, paints, miscellaneous cleaners or other 
household 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 manufactured 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 transportation or containment, provided

[[Page 366]]

that the chemical substance is intended to be removed from the container 
and has an end use or commercial purpose separate from the container.



Sec. 12.121  Reporting requirements.

    (a) Chemical substances in bulk or mixtures--(1) Certification 
required. The importer of a chemical substance imported in bulk or as 
part of a mixture, or the authorized agent of such an importer, 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 
Customs 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 
shipment and, except when a blanket certification 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 document 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 
delivery as provided for in Sec. 142.21 of this chapter or in the case 
of an entry as provided for in Sec. 142.3 of this chapter, on the 
commercial invoice or on an attachment to that invoice.
    (ii) Blanket certifications. A port director may, in his discretion, 
approve an importer's use of a ``blanket'' certification, in lieu of 
filing a separate certification for each chemical shipment, for any 
chemical shipment that conforms to a product description provided to 
Customs pursuant to paragraph (a)(2)(ii)(A) of this section. In 
approving the use of a ``blanket'' certification, the port director 
should consider 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 remain 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 substances that are not subject to 
TSCA; and
    (C) An importer for whom the use of a ``blanket'' certification has 
been approved must include, on the invoice used in connection with the 
entry and entry summary procedures for each shipment covered by the 
``blanket'' certification, a statement referring to the ``blanket'' 
certification and incorporating it by reference. This statement 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 certification requirements set forth in paragraph (a) of 
this section only if required to do so by a rule or order issued under 
TSCA.
    (c) Facsimile signatures. The certification statements required 
under paragraph (a)(1) of this section may be signed by means of an 
authorized facsimile signature.

[T.D. 00-13, 65 FR 10704, Feb. 29, 2000]



Sec. 12.122  Detention of certain shipments.

    (a) The director of the port of arrival shall detain, at the 
importer's risk and expense, shipments of chemical substances, 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

[[Page 367]]

    (2) Which have been ordered seized because of imminent hazards as 
specified under section 7 of TSCA (15 U.S.C. 2606).
    (b) The director of the port of entry shall detain shipments of 
chemical substances, mixtures, or articles at the importer's risk and 
expense, in the following 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 
required by Sec. 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 disposition as provided for in Sec. Sec. 12.127 and 
127.28(i), unless previously released to the importer under bond as 
provided in Sec. 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.



Sec. 12.123  Procedure after detention.

    (a) Submission of written documentation. If a shipment is detained 
by a port director under Sec. 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 
shipment 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 director may release to the 
importer a shipment detained for any of the reasons given in Sec. 
12.122 when the port director has reasonable grounds to believe that the 
shipment may be brought into compliance, or when the port director deems 
it appropriate under Sec. 141.66 of this chapter. Any such release 
shall be conditioned upon furnishing a bond on Customs Form 7551, 7553, 
or 7595 for the return of the shipment to Customs custody. The bond 
shall be for the full amount required in Sec. 113.14 of this chapter. 
If a shipment 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 otherwise disposed of until the Administrator 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 permit or refuse entry of the shipment. If the 
Administrator finds that the shipment is in compliance with TSCA, the 
port director shall release the shipment to the importer. If the 
Administrator 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 damages in 
the full amount of the bond.



Sec. 12.124  Time limitations and extensions.

    (a) Time limitations. The importer of a shipment of chemical 
substances, mixtures, or articles which has been detained under Sec. 
12.122 shall bring the shipment into compliance with TSCA or export the 
shipment from the customs territory of the United States within 90 days 
after notice of detention or 30 days of demand for redelivery, whichever 
comes first.

[[Page 368]]

    (b) Time extensions. The port director, upon notification by the 
Administrator, may grant an extension of not more than 30 days if, due 
to delays caused by the Environmental Protection 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 required time period; 
or
    (2) The importer is unable to export the shipment from the customs 
territory of the United States within the required time period.



Sec. 12.125  Notice of exportation.

    Whenever the Administrator directs the port director to refuse entry 
under Sec. 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 redelivery, the importer shall give written notice of the 
fact of exportation to the Administrator and the port director. The 
importer shall include the following information in the notice of 
exportation:
    (a) The name and address of the exporter or his agent;
    (b) A description of the chemical substances, mixtures, or articles 
exported;
    (c) The destination (country);
    (d) The port of arrival at the destination;
    (e) The carrier;
    (f) The date of exportation; and
    (g) The bill of lading or the air way bill number.



Sec. 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 export the 
merchandise. The importer shall remain liable for any expense incurred 
in the storage and/or disposal of abandoned merchandise.



Sec. 12.127  Decision to store or dispose.

    (a) A shipment detained under Sec. 12.122 shall be considered to be 
unclaimed or abandoned and shall be turned over to the Administrator for 
storage or disposition as provided for in Sec. 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 Sec. 12.124. The importer shall 
remain liable for any expenses in the storage and/or disposal of 
abandoned merchandise.

                       Softwood Lumber From Canada



Sec. 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 definitions apply for purposes of 
this section:
    (1) British Columbia Coast. ``British Columbia Coast'' means the 
Coastal Forest Regions as defined by the existing Forest Regions and 
Districts Regulation, B.C. Reg. 123/2003.
    (2) British Columbia Interior. ``British Columbia Interior'' means 
the Northern Interior Forest Region and the Southern Interior Forest 
Region as defined by the existing Forest Regions and Districts 
Regulation, B.C. Reg. 123/2003.
    (3) Date of shipment. ``Date of shipment'' 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 conveyance for export. If a 
shipment is transshipped through a Canadian reload center or other 
inventory location, the date of shipment is the date the merchandise 
leaves the reload center or other inventory location for final shipment 
to the United States.
    (4) Maritimes. ``Maritimes'' means New Brunswick, Canada; Nova 
Scotia, Canada; Prince Edward Island, Canada; and Newfoundland and 
Labrador, Canada.
    (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,

[[Page 369]]

Canada; Saskatchewan, Canada; Quebec, Canada; or Yukon Territory, 
Canada.
    (6) Region of Origin. ``Region of Origin'' means the Region where 
the facility at which the softwood lumber product was first produced 
into such a product 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 product 
(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 originating in a non-Maritime Region 
will be the Region 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 originated.
    (7) SLA 2006. ``SLA 2006'' or ``SLA'' means the Softwood Lumber 
Agreement entered into between the Governments 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 
Agreement.
    (b) Reporting requirements. In the case of softwood lumber products 
from Canada listed in Annex 1A of the SLA 2006, the following 
information must be included on the electronic entry summary 
documentation (CBP Form 7501) for each entry:
    (1) Region of Origin. The letter code representing a softwood lumber 
product'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. The 8-digit Canadian-issued Export Permit 
Number, preceded by one of the following letter codes:
    (i) The letter code assigned to represent the date of shipment 
(i.e., ``A'' represents January, ``B'' represents February, ``C'' 
represents March, etc.), except for those softwood lumber products 
produced by a company listed in Annex 10 of the SLA 2006 or whose Region 
of Origin is the Maritimes, Yukon, Northwest Territories or Nunavut;
    (ii) The letter code ``X'', which designates a company listed in 
Annex 10 of the SLA 2006; or
    (iii) The letter code assigned to represent the Maritimes (code M); 
Yukon (code Y); Northwest Territories (code W); or Nunavut (code N), for 
softwood lumber products originating in these regions.
    (c) Original Maritime Certificate of Origin. 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 Lumber Bureau must be 
submitted to CBP with the paper entry summary documentation for each 
entry. The Certificate of Origin must specifically state that the 
corresponding CBP entries are for softwood lumber products first 
produced in the Maritimes from logs originating in the Maritimes or 
State of Maine.
    (d) Recordkeeping. Importers must retain copies of export permits, 
certificates of origin, and any other substantiating documentation 
issued by the Canadian Government pursuant to the recordkeeping 
requirements set forth in part 163 of title 19 to the CFR.

[CBP Dec. 06-25, 71 FR 61402, Oct. 18, 2006]

                             Steel Products



Sec. 12.145  Entry or admission of certain steel products.

    In any case in which a steel import license number is required to be 
obtained 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 
equivalent, 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

[[Page 370]]

    (b) On Customs Form 214, at the time of filing under Part 146 of 
this chapter, 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



Sec. 12.150  Merchandise prohibited by economic sanctions; detention; seizure or other disposition; blocked property.

    (a) Generally. Merchandise from certain countries designated by the 
President as constituting a threat to the national security, foreign 
policy, or economy of the United States shall be detained 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 importation of merchandise subject 
to OFAC's regulations is determined to be prohibited, no entry for any 
purpose shall be permitted and, unless the immediate reexportation or 
other disposition of such merchandise under Customs 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 importation of 
otherwise prohibited merchandise under certain conditions. If such a 
license is issued subsequent to the attempted entry and seizure of the 
merchandise, importation shall be conditioned upon the importer:
    (1) Agreeing in writing to hold the Government harmless, and
    (2) Paying any storage and other Customs 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 certain designated countries has 
an interest 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 merchandise 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]

                         Mexican Cement Products



Sec. 12.155  Entry or admission of Mexican cement products.

    (a) In general. On March 6, 2006, the United States Trade 
Representative, United States Department of Commerce and Mexico's 
Secretaria de Economia entered into an ``Agreement on Trade in Cement'' 
(Agreement). Pursuant to the Agreement, the United States Department of 
Commerce will administer an import licensing system that covers imports 
of Mexican cement as defined in section I.L. of the Agreement. The 
Secretary of the Treasury, through the Bureau of Customs and Border 
Protection (CBP), is responsible for the promulgation and administration 
of regulations regarding the entry of the subject merchandise into the 
United States. The Agreement will terminate on March 31, 2009, unless it 
has been terminated prior to that date.
    (b) Reporting the import license number. For every entry of 
merchandise for which a Mexican cement import license is required to be 
obtained under regulations promulgated by the U.S. Department of 
Commerce, set forth at 19 CFR 361.101 through 361.105, the entry (unless 
otherwise directed by CBP) must be a paper filing and the license number 
must be included:
    (1) On the entry summary, 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, except for Mexican cement that 
was previously admitted to a FTZ and for which an import license number 
was already provided to CBP on the CBP Form 214. If the entry summary 
requires more than one cement import license, each license number must 
be reported within the column on the line item covering the subject 
cement; or

[[Page 371]]

    (2) On CBP Form 214 or on an electronic version of CBP Form 214 (CBP 
Form e-214), as required by CBP, at the time of filing under part 146 of 
this chapter, in the case of an application for foreign trade zone (FTZ) 
admission and/or status designation.
    (c) Import license information. There is no requirement to present 
physical copies of the import license to CBP at the time of filing 
either the CBP Form 7501 or CBP Form 214; however, importers must 
maintain copies in accordance with the applicable recordkeeping 
provisions set forth in the chapter.
    (d) Export license information. Under regulations promulgated by the 
U.S. Department of Commerce, set forth at 19 CFR 361.101(d), importers 
of Mexican cement must submit an original, physical copy of a valid 
Mexican export license to CBP with the entry summary documentation 
(unless otherwise directed by CBP). In the case of an application for 
FTZ admission and/or status designation, the original physical copy of a 
valid Mexican export license must be provided to the FTZ operator with 
the CBP Form 214 (unless otherwise directed by CBP) and, in such case, 
upon withdrawal from the FTZ no paper export license will be required to 
be submitted to CBP with the merchandise's subsequent entry summary 
documentation. For multiple shipments at multiple ports, or multiple 
entries at one port, the original physical copy of the Mexican export 
license must be submitted to CBP (unless otherwise directed by CBP) with 
the first entry summary or to the FTZ operator with the CBP Form 214 or 
CBP Form e-214, as required by CBP, and a copy of the export license 
must be presented with each subsequent entry summary or CBP Form 214/e-
214. Importers must also retain copies of the export license issued by 
the Mexican Government pursuant to the recordkeeping requirements set 
forth in part 163 of this title.
    (e) Duration of requirements. The provisions set forth in this 
section are applicable for as long as the Agreement remains in effect.

[72 FR 10005, Mar. 6, 2007; 72 FR 11944, Mar. 14, 2007]



PART 18_TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT--Table of Contents




                           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 compartments; labeling packages; warning 
          cards.
18.4a Containers or road vehicles accepted for transport under customs 
          seal; requirements.
18.5 Diversion.
18.6 Short shipments; shortages; entry and allowance.
18.7 Lading for exportation, verification of.
18.8 Liability for shortage, irregular delivery, 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 foreign countries.

  Merchandise in Transit Through the United States to Foreign Countries

18.20 Entry procedure; forwarding.
18.21 Restricted and prohibited merchandise.
18.22 Procedure at port of exit.
18.23 Change of destination; change of entry.
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 merchandise.

[[Page 372]]

  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 Schedule 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



Sec. 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, contract carrier, 
freight forwarder, or private 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 bonded 
or nonbonded carriers. For the purposes of this section, the term 
``common carrier'' means a common carrier of merchandise owning or 
operating a railroad, steamship, pipeline, or other transportation line 
or route. Only vessels entitled to engage in the coastwise trade (see 
Sec. 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 merchandise not otherwise subject to Customs control, 
as provided in Sec. Sec. 18.41 through 18.45, shall be delivered to a 
common carrier or contract carrier bonded for that purpose, but the 
merchandise thereafter may be transported with the use of other bonded 
or nonbonded 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 
Sec. 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 common carrier or contract 
carrier bonded for that purpose, but the merchandise thereafter may be 
transported with the use of other bonded or nonbonded common 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 Sec. 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 request of the 
party in interest, may permit 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 
accordance with the provisions of part 112 of this chapter, if the port 
director is satisfied that the transportation of such 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]



Sec. 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

[[Page 373]]

paragraphs (a)(2) and (a)(3) of this section, within 5 working days 
after presentation of an entry for merchandise to be transported in-
bond, the forwarding carrier shall take receipt of the merchandise if no 
other entry is filed. If the forwarding carrier fails to take receipt of 
the merchandise within the prescribed period, the transportation entry 
shall be canceled and the merchandise 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 
merchandise laden. The carrier's receipt shall be given immediately to 
the lading inspector on the Customs in-bond document (the appropriate 
Customs Form 7512, or the carnet) covering the merchandise. In the case 
of a carnet, the receipt shall be given on the appropriate vouchers in 
the following form:

    Received the cargo listed herein for delivery to Customs at the 
indicated port of destination or exportation, or for direct exportation.

Name of Carrier (or Exporter)___________________________________________
Attorney-in-fact or Agent of Carrier (or Exporter)______________________
________________________________________________________________________
Date____________________________________________________________________

    (3) Merchandise delivered from warehouse. When merchandise is 
delivered from a warehouse to a bonded carrier for transportation in 
bond, supervision of lading shall be accomplished in accordance with the 
procedure set forth in Sec. 19.6(b) of this chapter.
    (4) Merchandise delivered from foreign trade zone. When merchandise 
is delivered from a foreign trade zone to a bonded carrier for 
transportation in bond, supervision of lading will be accomplished in 
accordance with the procedure set forth in Sec. 146.71(a) of this 
chapter.
    (b) A Customs in-bond document, containing a description of the 
merchandise, shall be prepared by the carrier or any of the parties 
named in Sec. 18.11(b), whenever merchandise is being transported in 
bond. The Customs in-bond document thus prepared shall then be signed by 
the carrier or any of the parties named in Sec. 18.11(b). All copies of 
the in-bond document shall be signed by the importing carrier or his 
agent and the in-bond carrier or his agent to indicate the quantity 
delivered for transportation in bond. When there is no discrepancy 
between the quantity manifested by the importing carrier and the 
quantity delivered to the in-bond carrier, the port director may 
authorize waiving the signature of the parties in interest as to 
delivered quantities. Quantities of goods transported in bond from a 
Customs bonded warehouse shall be accounted for under the procedures set 
forth in Sec. 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 prepared for each entry and, if the consignment 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 document, Customs Form 7512 (in 
duplicate), 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 conveyance. A TIR carnet (see Sec. 
18.3(b)) shall not be used if more than one conveyance is required.
    (2) Except transit air cargo provided for in Sec. 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 destination or exportation within 30 
days after the date of receipt by the forwarding carrier at the port of 
origin, if transported on land. If the merchandise is transported on 
board a vessel engaged in the United States coastwise trade, delivery to 
Customs at the port of destination or exportation shall be

[[Page 374]]

within 60 days after the date of receipt by the forwarding carrier at 
the port of origin. Failure to deliver the merchandise within the 
prescribed period shall constitute an irregular delivery and the initial 
bonded carrier shall be subject to applicable penalties (see Sec. 
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 carrier shall surrender the in-bond manifest (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 obtaining copies of the 
original in-bond manifest. Failure to surrender the in-bond manifest or 
report the arrival of bonded merchandise within the prescribed period 
shall constitute an irregular delivery and the initial bonded carrier 
shall be subject to applicable penalties (see Sec. 18.8).

[T.D. 71-70, 36 FR 4485, Mar. 6, 1971, as amended 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]



Sec. 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 transshipment for execution of a certificate of transfer 
thereon. The in-bond document shall be returned to the carrier to 
accompany the merchandise to the port of destination or exportation. 
Except as provided in paragraph (c) of this section, merchandise covered 
by a TIR carnet shall not be transshipped if the transshipment involves 
the unlading of the merchandise from a container 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 Sec. 18.11(b) shall prepare for each 
such conveyance two additional copies of the Customs Form 7512 which 
accompanied the merchandise to the place of transshipment. The Customs 
Form 7512 which accompanied 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 conductor, 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 delivery to the 
director of the port of destination or exportation.
    (c) Merchandise covered by a TIR carnet may be transshipped in a 
case involving the unlading of the merchandise from a container or road 
vehicle only if the transshipment is necessitated by casualty en route. 
In the event of transshipment, a TIR approved container or road vehicle 
shall be used if available. If the transshipment 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 
casualty or for other good reason, and it cannot be done under Customs 
supervision because of the element of time involved or because there is 
no Customs officer stationed at such point, a responsible agent of the 
carrier may remove 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, serial numbers of the new seals applied,

[[Page 375]]

and the reason therefor. This authorization shall not apply in any case 
not involving a real emergency.
    (e) All transfers to or from the conveyance or warehouse of 
merchandise undergoing transportation in bond shall be made under the 
provisions of part 125 of this chapter and at the expense of the parties 
in interest, unless the bond of the carrier on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.63 of this chapter 
or a TIR carnet is liable for the safekeeping and delivery of the 
merchandise while it is being transferred.

[T.D. 71-70, 36 FR 4486, Mar. 6, 1971, as amended 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]



Sec. 18.4  Sealing conveyances and compartments; labeling packages; warning cards.

    (a)(1) Conveyances or compartments in which carload lots of bonded 
merchandise are transported shall be sealed with commercial shipper 
seals, Customs red in-bond seals, or other accepted 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 adequately protect the revenue and prevent 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 jurisdiction 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 manifest. 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 protect the revenue or to prevent violations of the 
Customs laws and regulations.
    (2) The port director shall cause a Customs seal to be affixed to a 
container or road vehicle which is being used to transport merchandise 
under cover of a TIR carnet unless the container or road vehicle bears a 
customs seal (domestic or foreign). The port director 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 Manifest of 
the carnet and the merchandise which is to be transported, he shall 
cause a Customs seal or label to be affixed only when the listing of the 
merchandise in the carnet and a physical inventory agree.
    (b) Ports at which the facilities are insufficient to maintain 
continuous customs supervision over vessels arriving with bonded cargo 
while the bonded merchandise is not under Customs seals shall permit the 
vessels to proceed 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 
conveyances 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 
packages must meet Customs standards provided in Sec. 24.13a of this 
chapter, and may be obtained in accordance with Sec. 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 sentence 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, containing the following legend in 
black

[[Page 376]]

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 removal of this package or any of its contents.

Transportation Entry No. --------; From --------To --------; This 
package to be delivered to Customs at ---------------- (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 omitted the information called 
for must be filled in. If the size of the package renders the use of a 5 
x 8 inch warning label impracticable because of lack of space, a 3x5 
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 1\1/2\ 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 either when the packages are transported in a conveyance or 
compartment sealed with Customs seals, or when the sealing of the 
conveyance or compartment in which the packages are transported is 
waived under paragraph (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 merchandise 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 specify in any case 
where he is of the opinion that one is not adequate.
    (g) When, in the case of crates and similar packages, it is 
impossible to attach 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 merchandise.
    (h) Bonded carriers shall furnish and securely attach to the side 
doors of cars, to the doors of compartments, and on vehicles carrying 
bonded merchandise which are secured with Customs seals, bright red 
cards, 8 by 10\1/4\ 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' imprisonment, or $5,000 fine, or 
both, is the penalty for the unlawful removal of United States Customs 
seals on this car, vehicle, or compartment. United States Customs 
officers only are authorized to break these seals.

Car or vessel___________________________________________________________
Number or name__________________________________________________________
From____________________________________________________________________
To______________________________________________________________________
    Notice: The merchandise in this car, vehicle, or compartment shall 
be delivered to the chief officer of the customs at --------.

    (i) Removal of seals. Except as provided in Sec. 18.3(d) and Sec. 
19.6(e) of this chapter, seals affixed under this section shall be 
removed only under Customs supervision.

[28 FR 14755, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 18.4, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 18.4a  Containers or road vehicles accepted for transport under customs seal; requirements.

    (a)(1) Containers covered by the Customs Convention on Containers 
shall be accepted for transport under Customs seal (see Sec. 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 outlined in Annex 1 to the Customs Convention 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 approval by a competent authority.

[[Page 377]]

    (2) Containers carrying merchandise covered by a TIR carnet shall be 
accepted for transport under Customs seal (see Sec. 18.4) if (i) 
durably marked with the name and address of the owner, particulars of 
tare, and identification marks and numbers, (ii) constructed and 
equipped as outlined in Annex 6 to the TIR Convention, as evidenced by 
an accompanying unexpired certificate of approval in the form prescribed 
by Annex 8 to that Convention, or by a metal plate showing design type 
approval by a competent authority, and (iii) if the container or road 
vehicle hauling the container has affixed to it a rectangular plate 
bearing the letters ``TIR'' in accordance with Article 31 of the TIR 
Convention.
    (b) Road vehicles carrying merchandise 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, particulars 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 
approval 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 applicable Convention.
    (d) Containers or road vehicles which are not approved under the 
provisions of a Customs Convention may be accepted 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 effectively 
sealed and (2) no goods can be removed from or introduced into the 
container or road vehicle without obvious damage to it or without 
breaking the seal. A container or road vehicle so accepted shall not 
carry merchandise covered by a TIR carnet.

[T.D. 71-70, 36 FR 4486, Mar. 6, 1971, as amended by T.D. 89-1, 53 FR 
51254, Dec. 21, 1988]



Sec. 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) and (f) of this section, prior application 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 consumption, 
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 diversion 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 required. 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 director of the port where diversion takes place 
shall complete the original transaction and shall require the filing of 
a new transportation entry or entries for the portion or portions 
forwarded. In the case, however, of merchandise 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 Agricultural Research Service of the Department of 
Agriculture shall be allowed only upon written permission or under 
regulations issued by the agency concerned.

[[Page 378]]

    (f) The diversion of in-bond shipments, which contain textiles or 
textile products subject to section 204, Agricultural Act of 1956, as 
amended (7 U.S.C. 1854), during the in-bond movement shall be allowed 
only upon the prior written permission of the director of the port of 
origin.

[T.D. 71-70, 36 FR 4487, Mar. 6, 1971, as amended 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]



Sec. 18.6  Short shipments; shortages; entry and allowance.

    (a) When there has been a short shipment and the short-shipped 
packages are subsequently received, they may be forwarded only under a 
new transportation 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 unauthorized locations, or 
delivery to the consignee without the permission of Customs, the port 
director may demand 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 Customs custody shall be made on the bonded carrier, 
cartman, or lighterman identified on the Transportation Entry and 
Manifest of Goods Subject to Customs Inspection and Permit, Customs Form 
7512, the Transit Air Cargo Manifest (TACM), or other appropriate 
document. The demand for the return of the merchandise shall be made on 
Customs 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 occurred while the merchandise was in the possession 
of the bonded carrier.
    (c) If the merchandise cannot be recovered intact, as specified 
above, entry shall be accepted in accordance with Sec. 141.4 of this 
chapter for the full manifested quantity unless a lesser amount is 
otherwise permitted in accordance 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 damages on Customs 
Form 5955-A, in the case of nondelivery of an entire shipment 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 section, entry shall not be 
accepted; there shall be sent to the appropriate guaranteeing 
association a demand for liquidated damages, duties, and taxes as 
prescribed in Sec. 18.8(e); and, if appropriate, there shall also be 
sent to the initial bonded carrier a demand for any excess, as provided 
in Sec. 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 merchandise reported short at 
destination, including merchandise found by the appraising 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 subpart D of part 123 of this chapter, and Sec. 18.11, or 
Sec. 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 amended 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]

[[Page 379]]



Sec. 18.7  Lading for exportation, verification of.

    (a) Promptly, but no more than 2 working days, after arrival of any 
portion of the in-bond shipment at the port of exportation, the 
delivering carrier shall surrender the in-bond manifest (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 obtaining copies of the 
original in-bond manifest. Failure to surrender the in-bond manifest or 
report the arrival of bonded merchandise within the prescribed period 
shall constitute an irregular delivery and the initial bonded carrier 
shall be subject to applicable penalties (see Sec. 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 warrant, 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 examination of the 
carrier's records of claims and settlement of export freight charges and 
any other records which may relate to the transaction. The exporting 
carrier shall maintain these records for 5 years from the date of 
exportation 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]



Sec. 18.8  Liability for shortage, irregular delivery, or nondelivery; penalties.

    (a) The initial bonded carrier shall be responsible for shortage, 
irregular delivery, or nondelivery at the port of destination or 
exportation of bonded merchandise received by it for carriage. An 
acceptable proof of proper delivery of bonded merchandise to Customs at 
the port of destination or exportation is a properly receipted copy of 
the in-bond document (the appropriate 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 presumed to have occurred while the 
merchandise was in the possession of the carrier, unless conclusive 
evidence to the contrary is produced.
    (b) Carriers shall be liable for payment of liquidated damages under 
the carriers bond for any shortage, failure to deliver, or irregular 
delivery, as provided in such bond.
    (c) In addition to the penalties described in paragraph (b) of this 
section, the carrier shall pay any internal-revenue taxes, duties, or 
other taxes accruing to the United States on the missing merchandise, 
together with all costs, charges, and expenses caused by the failure to 
make the required transportation, report, and delivery.
    (d) In any case in which liquidated damages are imposed in 
accordance with this section and the Fines, Penalties, and Forfeitures 
Officer is satisfied 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 circumstances.
    (e)(1) The domestic guaranteeing association 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 shortage, 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. Penalties imposed as liquidated damages on the initial 
bonded carrier, and sums assessed the guaranteeing association

[[Page 380]]

in lieu of duties and taxes for any shortage, irregular delivery, or 
nondelivery shall be in accordance with this section. If a TIR carnet 
has not been discharged or has been discharged subject to a reservation, 
the guaranteeing association shall be notified within 1 year of the date 
upon which the carnet is taken on charge, including time for receipt of 
the notification, except that if the discharge shall have been obtained 
improperly or fraudulently the period shall be 2 years. However, in 
cases which become the subject of legal proceedings during the above-
mentioned period, no claim for payment 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 demand for payment is made by the 
port director as provided by Sec. 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 
Sec. 114.22(d) of this chapter), the carrier shall pay the excess. The 
amount paid shall be refunded if, within a period of 1 year from the 
date on which the claim for payment was made, it is established to the 
satisfaction of the Commissioner of Customs that no irregularity 
occurred. The Fines, Penalties, and Forfeitures Officer may cancel 
liquidated damages assessed against the guaranteeing association to the 
extent authorized by paragraph (d) of this section.
    (3) The domestic guaranteeing association 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 guaranteeing 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 discharged with respect to certain 
goods, the guaranteeing association will no longer be liable on the 
carnet with respect to those goods unless it is subsequently 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 
guaranteeing 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 discharge of the 
A.T.A. or TECRO/AIT carnet. If such proof is not furnished within the 
time specified, the guranteeing association shall either deposit 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 the goods to recover the sums deposited or paid.

[28 FR 14755, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 18.8, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec. 18.9  Examination by inspectors of trunk line associations or agents of the Surface Transportation Board.

    (a) Upon presentation of proper credentials showing the applicant to 
be a representative of the Trunk Line Association, the Surface 
Transportation Board, the Joint Rate Inspection Bureau of Chicago or the 
Southern Weighing and Inspection Bureau of Atlanta, inspectors of CBP in 
charge will permit such applicant to examine packages containing in-bond 
merchandise described in the manifest in general terms for the purpose 
of ascertaining whether the merchandise is properly classified under the 
interstate commerce 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 presence 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

[[Page 381]]

Customs officer shall require the packages to be securely closed, and 
shall note on the manifest the packages so inspected, the date, and by 
whom inspected.

[28 FR 14755, Dec. 31, 1963, as amended by CBP Dec. 04-28, 69 FR 52599, 
Aug. 27, 2004]



Sec. 18.10  Kinds of entry.

    (a) The following entries and withdrawals may be made for 
merchandise to be transported in bond:
    (1) Entry for immediate transportation without appraisement.
    (2) Warehouse or rewarehouse withdrawal for transportation.
    (3) Warehouse or rewarehouse withdrawal for exportation or for 
transportation and exportation.
    (4) Entry for transportation and exportation.
    (5) Entry for exportation.
    (b) The copy of each entry or withdrawal 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 withdrawal. 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 withdrawal on Customs Form 7512 shall be 
filed and shall be mailed by the receiving port director to the port 
director, Charlotte Amalie, St. Thomas, Virgin Island (U.S.). Before 
shipping merchandise in bond to another port for the purpose of 
warehousing or rewarehousing, the shipper should ascertain 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]



Sec. 18.10a  Special manifest.

    (a) General. Merchandise for which no other type of bonded movement 
is appropriate (e.g., prematurely discharged or overcarried merchandise 
and other such types of movements whereby the normal transportation-in-
bond procedures are not applicable) may be shipped in bond from the port 
of unlading to the destination shown on the importing carrier's manifest 
(manifested port) when authorized by the port director having custody of 
the merchandise. 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, including to the port of diversion (see section 4.33 of 
this chapter), when different from the original manifested port.
    (2) The application and accompanying completed Customs Form 7512 
shall identify the prematurely discharged 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 
merchandise to be returned, if known. If the port director is satisfied 
that the merchandise will be delivered to Customs custody at the 
manifest port before expiration 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 approve 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



Sec. 18.11  Entry; classes of goods for which entry is authorized; form used.

    (a) Entry for immediate transportation 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 transportation 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 merchandise under its bond or a 
carnet for transportation to the port of destination, or (3) any person 
shown by the

[[Page 382]]

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 interest in the merchandise for that purpose.
    (c) Before a shipment covered by an entry for immediate 
transportation, including a carnet, or a manifest of baggage shipped in 
bond (other than baggage to be forwarded in bond to a Customs station--
see Sec. 18.13(a)), shall be allowed to be transported directly to a 
place of deposit outside a port of entry for examination and release as 
contemplated 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 Sec. 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 Sec. 18.5, at the port of destination 
of the merchandise or baggage) and will comply with the provisions of 
Sec. 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 reloading 
of the stock may be done under Customs supervision.
    (e) Entries for immediate transportation without appraisement 
covering merchandise subject to detention of supervision by any Federal 
agency shall contain a sufficient description of the merchandise to 
enable the representative of the agency concerned to determine the 
contents of the shipment. Such merchandise covered by quarantines 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 
immediate transportation without appraisement covering textiles and 
textile products subject to section 204, Agricultural Act of 1956, as 
amended (7 U.S.C. 1854), 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 
correctness of the value and quantity stated in the entry (e.g. Detailed 
quantity description, 14 cartons, 2 dozen per carton); Detailed 
description 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 
(including immediate packing but excluding 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 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 
immediate transportation without appraisement, provided all the 
merchandise covered by the invoice is entered simultaneously and any 
carnet which may cover such merchandise is discharged as to that 
merchandise.
    (g) Several importations may be consolidated in one immediate 
transportation without appraisement entry when bills of lading or 
carrier's certificates name only one consignee at the port of first 
arrival. However, merchandise 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 Sec. 
122.92 of this chapter), shall be used as a combined 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 additional copies of Customs Form 7512 or the Goods 
Manifest of the carnet for

[[Page 383]]

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 covering the merchandise. 
The merchandise 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 
correctness 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 Sec. 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 obligation 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]



Sec. 18.12  Entry at port of destination.

    (a) Merchandise received under an immediate transportation without 
appraisement 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 consumption shall be accepted. Such entry shall show 
the name of the port of first arrival, the transporting carrier, and the 
number of the immediate transportation entry. (See Sec. 127.2 of this 
chapter.)
    (b) The right to make entry at the port of destination shall be 
determined in accordance with the provisions of Sec. 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 consumption or warehouse at one 
or more subsequent ports, the entry at each subsequent port may be made 
on an extract of the invoice as provided for in Sec. 141.84 of this 
chapter.
    (d) All merchandise included in an immediate transportation without 
appraisement 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 Sec. 4.37 or Sec. 122.50 
or Sec. 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]

                       Shipment of Baggage in Bond



Sec. 18.13  Procedure; manifest.

    (a) Baggage may be forwarded in bond to another port of entry, or to 
a Customs station listed in Sec. 101.4 of this chapter, at the request 
of the passenger, the transportation company, or the agent of either, 
with the use of a baggage manifest described in paragraph (b) of this 
section without examination 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 2\1/2\ by 4 inches in size with the 
following printed text, for attachment (by wire or cord) to the baggage:

                          United States Customs

Check No._______________________________________________________________
Baggage in bond:
Carrier_________________________________________________________________
From____________________________________________________________________

                            to port director

At (destination)________________________________________________________
    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 otherwise at a port on the Atlantic 
or Pacific coast, destined to a port on the opposite coast, may be laden 
under

[[Page 384]]

Customs supervision, without examination 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]



Sec. 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 
exportation. Such baggage shall be shipped under the regulations 
prescribed in Sec. 18.13, except that the card or poster shall be 
printed on yellow paper and shall read ``Baggage in bond for export.'' 
See Sec. 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



Sec. 18.20  Entry procedure; forwarding.

    (a) When an importation is entered for transportation and 
exportation, except as provided for in subparts D, E, F and G of part 
123 of this chapter (relating to merchandise in transit through the U.S. 
between two points in contiguous foreign territory), a carnet, three 
copies of an air waybill (see Sec. 122.92 of this chapter), or four 
copies of Customs Form 7512 shall be required. The port director, 
however, may require additional 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 transportation and exportation 
entries shall be subject to the requirements prescribed in Sec. 
18.11(b) for entry of merchandise for immediate transportation without 
appraisement.
    (b) Except in respect to merchandise covered by a carnet (see Sec. 
18.1(a) (2) and (3)), in places where no bonded common carrier 
facilities are reasonably available and merchandise is permitted to be 
transported otherwise than by a bonded common carrier, the port director 
may permit entry in accordance with the procedure outlined in paragraph 
(a) of this section if he is satisfied that the revenue will not be 
endangered. A bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 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 Sec. 113.55 of this chapter for cancellation of 
export bonds.)
    (c) The merchandise shall be forwarded in accordance with the 
general provisions for transportation in bond, Sec. Sec. 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]



Sec. 18.21  Restricted and prohibited merchandise.

    (a) Merchandise subject upon importation to examination, 
disinfection, or further treatment under quarantines and Quarantine 
Division, Agricultural Research Service, Department of Agriculture, 
shall be released for transportation or exportation only upon written 
permission of, or under regulations issued by, that Bureau. (See 
Sec. Sec. 12.10 to 12.15 of this chapter.)
    (b) Narcotics and other articles prohibited admission into the 
commerce of the United States shall not be entered for transportation 
and exportation and any such merchandise offered 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 
chemicals, without evidence to satisfy the

[[Page 385]]

port director that they are non-narcotic, 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 director 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 obtained 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]



Sec. 18.22  Procedure at port of exit.

    (a) If transfer is necessary, the procedure shall be as prescribed 
in Sec. 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 deliverable to the owner on board the exporting vessel, such articles 
may be transferred 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 terminal to the exporting vessel for lading under 
Customs supervision, if the express 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 exporting 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.



Sec. 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 merchandise is subject on 
importation to quarantine and regulations administered 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 Sec. Sec. 12.10 to 12.15 of this chapter.)



Sec. 18.24  Retention of goods on dock; splitting of shipments.

    (a) Upon written application of a party in interest and the written 
consent of the owner of the dock, the port director, in his discretion, 
may allow in-transit merchandise, including merchandise covered by a 
carnet, to remain on the dock under the supervision of a Customs officer 
without extra expense to the Government for a period not exceeding 90 
days. Upon further application, 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 director. The port director may take 
possession 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 possible by reason of 
the different destinations to which portions of the shipment are 
destined, when the exporting vessel cannot properly accommodate the 
entire quantity, or in similar circumstances. In the case, however, of 
merchandise being transported under cover of a carnet, splitting up of a 
shipment shall not be permitted.

[T.D. 71-70, 36 FR 4489, Mar. 6, 1971, as amended 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 Covered by 
 an Unliquidated Consumption Entry, or Merchandise Denied Admission by 
                             the Government



Sec. 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

[[Page 386]]

unliquidated consumption entry, or when merchandise which has been 
entered in good faith is found to be prohibited under any law of the 
United States, and such merchandise is to be exported directly without 
transportation 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 without 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 furnished for use in connection with 
delivery 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 transportation, the carnet shall be discharged by the 
certification of the appropriate transportation and reexportation 
vouchers by Customs officers as necessary.
    (b) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.63 of this chapter, shall be required. (See also 
Sec. 158.45 of this chapter.)
    (c) If the merchandise has been landed 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 Sec. 30.3(a)(2) of the Foreign Trade 
Statistics 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 during 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 Sec. 113.64 of this chapter, if on file, or if 
a continuous bond is not on file, a single entry bond containing the 
bond conditions set forth in Sec. 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 Sec. 
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 
exportation as required by the port director under Sec. 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 immediate 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]



Sec. 18.26  Indirect exportation.

    (a) When merchandise of the character enumerated in Sec. 18.25(d) 
is to be transported in bond to another port for exportation, it may be 
entered for transportation and exportation in accordance with the 
procedure in Sec. 18.20. Upon acceptance of the entry by Customs and 
acceptance of the merchandise by the bonded carrier, the bonded carrier 
assumes liability for the transportation and exportation of the 
merchandise. In the case of merchandise prohibited entry by any 
Government agency, that fact shall be prominently noted on Customs Form 
7512 for the information 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 canceled at the port of importation and the 
merchandise transported under an entry on Customs Form 7512 (see Sec. 
18.25). If merchandise has been imported 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 certified at the port of exportation.
    (b) The merchandise shall be forwarded in accordance with the 
general

[[Page 387]]

provisions for transportation in bond, Sec. Sec. 18.1 through 18.8.
    (c) If the merchandise is to be transferred after arrival at the 
selected port of exportation, the procedure prescribed in Sec. 18.3(d) 
shall be followed. The provisions of Sec. Sec. 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 required by the port 
director under Sec. 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]



Sec. 18.27  Port marks.

    Port marks may be added by authority 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



Sec. 18.31  Pipeline transportation of bonded merchandise.

    (a) General. Merchandise may be transported by pipeline under the 
procedures in this part, as appropriate and unless otherwise 
specifically provided for in this section.
    (b) Bill of lading to account for merchandise. Unless Customs has 
reasonable cause to suspect fraud, Customs shall accept a bill of lading 
or equivalent document of receipt issued by the pipeline operator to the 
shipper and accepted by the consignee to account for the quantity of 
merchandise transported by pipeline and to maintain the identity of the 
merchandise.
    (c) Procedures when pipeline is only carrier. When a pipeline is the 
only carrier of bonded merchandise and there is no transfer to another 
carrier, the bill of lading or equivalent document of receipt issued by 
the pipeline operator to the shipper shall be included with, and made a 
part of, the Customs in-bond document (see Sec. 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 reasonable cause to 
suspect fraud, the bill of lading or equivalent document of receipt 
shall be accepted by Customs at the port of destination or exportation 
(see Sec. Sec. 18.2(d) and 18.7) as establishing the quantity and 
identity of the merchandise transported. The pipeline operator shall be 
responsible for any discrepancies, including shortages, irregular 
deliveries, or nondeliveries at the port of destination or exportation 
(see Sec. 18.8).
    (d) Procedures when there is more than one carrier (i.e., transfer 
of the merchandise)--(1) Pipeline as initial carrier. When a pipeline is 
the initial carrier of bonded merchandise and the merchandise is 
transferred to another conveyance (either a different mode of 
transportation or a pipeline operated by another operator), the 
procedures in Sec. 18.3 and paragraph (c) of this section shall be 
followed, except that--
    (i) When the merchandise is to be transferred to one conveyance, 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 
the conveyance for delivery, along with the in-bond document, to the 
appropriate Customs official at the port of destination or exportation; 
or
    (ii) When the merchandise is to be transferred to more than one 
conveyance, 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 appropriate Customs 
official at the port of destination or exportation.
    (2) Transfer to pipeline from initial carrier other than a pipeline. 
When bonded merchandise initially transported by a carrier other than a 
pipeline is transferred to a pipeline, the procedures in Sec. 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 
operator to the shipper shall be delivered, along with the in-bond 
document, to the appropriate Customs officer at the port of destination 
or exportation.

[[Page 388]]

    (3) Initial carrier liable for discrepancies. In the case of either 
paragraph (d)(1) or (d)(2) of this section, the initial carrier shall be 
responsible for any discrepancies, including shortages, irregular 
deliveries, or nondeliveries, at the port of destination or exportation 
(see Sec. 18.8).
    (e) Recordkeeping. The shipper, pipeline operator, and consignee are 
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 6779, Feb. 22, 1996]

  Merchandise Not Otherwise Subject to Customs Control Exported Under 
                          Cover of a TIR Carnet



Sec. 18.41  Applicability.

    The provisions of Sec. Sec. 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. exporter or other party in interest and do not 
apply to merchandise otherwise required to be transported in bond under 
the provisions of this chapter. Merchandise 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 nonbonded carriers.

[T.D. 71-263, 36 FR 20291, Oct. 20, 1971]



Sec. 18.42  Direct exportation.

    At the port of exportation, the container or road vehicle, the 
merchandise, and the TIR carnet shall be made available to the port 
director. Any required 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 Export 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 satisfactory 
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 ascertain that the TIR plates are 
properly affixed and sealed. (See Sec. 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]



Sec. 18.43  Indirect exportation.

    (a) When merchandise is to move from one U.S. port to another for 
actual exportation at the second port, any export declarations required 
to be validated shall be filed in accordance with the port of origin 
procedure described in the applicable regulations of the Bureau of the 
Census and of the Office of Export Control.
    (b) The port director shall follow the procedure provided in Sec. 
18.42 in respect to examination of the merchandise, supervision of 
loading, sealing or labeling, 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 exportation.
    (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 intact 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]



Sec. 18.44  Abandonment of exportation.

    In the event that exportation is abandoned at any time after 
merchandise has been placed under cover of a TIR carnet, the carrier or 
agent shall deliver the carnet to the nearest customs office or to the 
Customs office at the port of origin for cancellation (see Sec. 
114.26(c) of this chapter). When the carnet has been canceled, the 
carrier or

[[Page 389]]

agent may remove Customs seals or labels 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]



Sec. 18.45  Supervision of exportation.

    The provisions of Sec. Sec. 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--Table of Contents




Sec.
19.1 Classes of customs warehouses.

                           General Provisions

19.2 Applications to bond.
19.3 Bonded warehouses; alterations; relocation; 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 byproducts 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 statement.
19.20 Withdrawal of products from bonded smelting or refining 
          warehouses.
19.21 Smelting and refining in separate establishments.
19.22 Withdrawal of metal refined in part from imported crude metal and 
          in part from crude metal produced from imported 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 operations.
19.37 Crib operations.
19.38 Supervision of exportation.
19.39 Delivery for exportation.

                           Container Stations

19.40 Establishment, relocation or alteration of container stations.
19.41 Movement of containerized cargo to a container station.
19.42 Application for transfer of merchandise.
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 privilege 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 Schedule of the United States), 1624;
    Section 19.1 also issued under 19 U.S.C. 1311, 1312, 1555, 1556, 
1557, 1560, 1561, 1562;

[[Page 390]]

    Section 19.6 also issued under 19 U.S.C. 1555;
    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 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.



Sec. 19.1  Classes of customs warehouses.

    (a) Classifications. Customs warehouses 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 
require, and used for the storage of merchandise 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 bonded exclusively for the 
storage of goods imported by the proprietor thereof, in which case it 
shall be known as a private bonded warehouse.
    (3) Class 3. Public bonded warehouses used exclusively for the 
storage of imported merchandise.
    (4) Class 4. Bonded yards or sheds for the storage of heavy and 
bulky imported 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 portions shall be effectively 
separated from the rest of the building.
    (6) Class 6. Warehouses for the manufacture in bond, solely for 
exportation, of articles made in whole or in part of imported materials 
or of materials subject to internal-revenue tax; and for the manufacture 
for home consumption or exportation of cigars in whole of tobacco 
imported from one country.
    (7) Class 7. Warehouses bonded for smelting and refining imported 
metal-bearing materials for exportation or domestic consumption.
    (8) Class 8. Bonded warehouses established for the purpose of 
cleaning, sorting, 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 delivered from the 
Class 9 warehouse to an airport or other exit point for exportation 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 defined in Sec. 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 
merchandise are also Class 9 warehouses.
    (10) [Reserved]
    (11) Class 11. Bonded warehouses, known as ``general order 
warehouses,'' established for the storage and disposition exclusively of 
general order merchandise as described in Sec. 127.1 of this chapter.

[[Page 391]]

    (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 constructive manipulation 
(class 8) warehouse when the exigencies of the service so require.
    (c) General order. General order merchandise as described in Sec. 
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 certified by the port director as meeting 
the criteria for a class 11 warehouse, following an application under 
Sec. 19.2. So far as such warehouses are used for the purpose of 
handling general order goods, they will also be considered general order 
(class 11) warehouses. If there is no space at a warehouse of any of 
these classes available, the proprietor of such a warehouse, with the 
approval of the port director of the port nearest to where the warehouse 
is located, 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



Sec. 19.2  Applications to bond.

    (a) Application. An owner or lessee desiring to establish a bonded 
warehouse facility shall make written application to the director of the 
port nearest to where the warehouse is located, describing the premises, 
giving its location, and stating the class of warehouse desired. If 
required by the port director, the applicant shall provide a list of 
names and addresses of all officers 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 
treatment of merchandise belonging to the applicant or whether it is to 
be operated as a public bonded warehouse. If the warehouse facility is 
to be operated as a private bonded warehouse, the application 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 determined 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 applicant must 
prepare and have available at the warehouse a procedures manual 
describing the inventory control and recordkeeping system that will be 
used in the warehouse. A certification by the proprietor that the 
inventory control and recordkeeping system meets the requirements of 
Sec. 19.12 will be submitted with the application. The physical 
security of the facility must meet the approval of the port director.
    (b) The applicant shall submit evidence 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 application 
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 fraction of an inch of height, certified by the proprietor 
to be correct, shall accompany 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

[[Page 392]]

concurred in by the sureties, agreeing that, prior to the expiration of 
the lease covering the premises without renewal thereof, he will 
transfer any merchandise remaining in the bonded warehouse to an 
approved bonded warehouse, pay all duties, charges, or exactions due on 
such merchandise, or otherwise 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 procedures, which includes 
inventory control, recordkeeping, and delivery methods. 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 exported;
    (3) If an airport duty-free store, a description of the store's 
procedures for restricting sales of conditionally duty-free merchandise 
to personal-use quantities; and
    (4) A statement by an authorized official of the appropriate state, 
local or other governmental authority administering the exit point 
facility that the applicant duty-free store is authorized to deliver 
conditionally duty-free merchandise to purchasers at or through that 
exit point facility. A separate statement shall be required for each 
governments authority having jurisdiction over exit point facilities 
through which the duty-free store intends to deliver merchandise to 
purchasers. If the merchandise will be delivered through an exit point 
which is not under the jurisdiction 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 Sec. 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 requirements imposed by the port 
director to accommodate the storage of general order merchandise. Any 
space requirements will be posted by written notice at the customhouse 
and on the appropriate 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 warehouse may be required on 10 days' 
notice from the port director to furnish a new bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 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 
proprietor. A new bond is required if the bonded warehouse is 
substantially altered 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. personal 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 applications from a business entity, may require 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 application 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

[[Page 393]]

final Customs administrative determination 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]



Sec. 19.3  Bonded warehouses; alterations; relocation; suspensions; discontinuance.

    (a) Alterations or relocation. Alterations 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 exceed one year on written application of the proprietor 
if there are no bonded goods in the area. Upon written application 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 
application 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 
status of the warehouse, he shall make written application to the port 
director. 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 Sec. 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 proprietor in the 
carriage, receiving, storage, or delivery of any bonded merchandise. If 
a list has been previously furnished the proprietor shall advise the 
port director in writing of the names, addresses, social security 
numbers, and dates and places of birth of any new personnel employed by 
him in the carriage, receiving, storage, or delivery of bonded 
merchandise within 10 days after such employment. For the purpose of 
this part a person shall not be deemed to be employed by a warehouse 
proprietor if he is an officer or employee 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 suspend 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 paragraph 
(f) of this section. If the bonded status is revoked or suspended for 
cause, the port director shall require all goods in the warehouse to be 
transferred to a bonded warehouse without expense to the Government. The 
bonded status of a warehouse may be revoked 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 committed 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 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 application of this provision;

[[Page 394]]

    (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, addresses, and other information required by Sec. 19.3(d);
    (6) The bond required by Sec. 19.2(c) or (d) of this chapter is 
determined to be insufficient in amount or lacking sufficient 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 warehouse is or has been unable to 
provide reasonable assurance that conditionally duty-free merchandise is 
or was exported in compliance with the regulations of this part.
    (f) Procedure for revocation or suspension 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 continue the bonded 
status of his warehouse should not be revoked or suspended for cause. 
Such notice shall advise the proprietor of the grounds for the proposed 
action and shall afford the proprietor an opportunity to respond in 
writing within 30 days. Thereafter, 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 testimony of witnesses in such proceedings, 
including substantiation of the allegations and the responses thereto 
shall be presented, with the right of cross-examination to both parties. 
A stenographic 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 action. The proprietor may submit in writing 
additional views or arguments to the Assistant Commissioner, Office of 
Field Operations or designee following 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.
    (g) Review by the Court of International Trade. Any proprietor 
adversely affected by a decision of the Assistant 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]



Sec. 19.4  CBP and proprietor responsibility and supervision over warehouses.

    (a) Customs supervision. The character and extent of Customs 
supervision to be exercised in connection with any warehouse facility or 
transaction provided for in this part shall be in accordance with Sec. 
101.2(c) of this chapter. Independent of any need to appraise or 
classify merchandise, the port director may authorize a Customs officer 
to supervise any transaction or procedure at the bonded warehouse 
facility. Such supervision may be performed through periodic audits of 
the warehouse proprietor's records, quantity counts of goods in 
warehouse inventories, spot

[[Page 395]]

checks of selected warehouse transactions or procedures or reviews of 
conditions of recordkeeping, storage, security, or safety in a warehouse 
facility.
    (b) Proprietor responsibility and supervision--(1) Supervision. The 
proprietor shall supervise all transportation, receipts, deliveries, 
sampling, recordkeeping, repacking, manipulation, destruction, physical 
and procedural security, conditions of storage, and safety in the 
warehouse as required by law and regulations. Supervision by the 
proprietor shall be that which a prudent manager of a storage and 
manipulation facility would be expected to exercise.
    (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 entered in Customs bonded warehouses. The proprietor or his 
employees shall safeguard and shall not disclose proprietary information 
contained in or on related documents to anyone other than the importer, 
importer's transferee, or owner of the merchandise to whom the document 
relates or their authorized agent.
    (4) Records maintenance--(i) Maintenance. The proprietor shall:
    (A) Maintain the inventory control and recordkeeping system in 
accordance with the provisions of Sec. 19.12 of this part;
    (B) Retain all records required in this part and defined in Sec. 
163.1(a) of this chapter, pertaining to bonded merchandise for 5 years 
after the date of the final withdrawal under the entry; and
    (C) Protect proprietary information in its custody from unauthorized 
disclosure.
    (ii) Availability. Records shall be readily available for Customs 
review at the warehouse. In addition, a proprietor may keep records at 
another location for Customs review, but only if the proprietor first 
receives written approval for such storage from the port director.
    (5) Record retention in lieu of originals. A warehouse proprietor 
may, in accordance with Sec. 163.5 of this chapter, utilize alternative 
storage methods in lieu of maintaining records in their original 
formats.
    (6) Warehouse and merchandise security. The warehouse proprietor 
shall maintain the warehouse facility in a safe and sanitary condition 
and establish procedures adequate to ensure the security of all 
merchandise under Customs custody stored in the facility. The warehouse 
construction will be a factor that will be considered by the port 
director in deciding whether to approve the application. The facility 
shall be built in such a manner as to render it impossible for 
unauthorized personnel to enter the premises without such violence as to 
make the entry easy to detect. If a portion of the facility 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-
bonded merchandise, such as a wall, fence, or painted line. All inlets 
and outlets 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 hazards to persons, and meet local, state, and 
Federal requirements applicable to specific kinds of goods. Doors and 
entrances shall be left unblocked for access by Customs officers and 
warehouse proprietor personnel.
    (8) Manner of storage. Packages shall be received in the warehouse 
and recorded 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 numbers. Packages with 
exceptions due to damage or loss of contents, or not identical as to 
quantity or quality of contents shall be stored separately until the 
discrepancy is resolved with Customs. Merchandise received in the 
warehouse shall be stored in a manner directly identifying the 
merchandise with the entry, general order, or seizure number; using a 
unique identifier for inventory categories composed of fungible 
merchandise accounted for on

[[Page 396]]

a First-In-First-Out (FIFO) basis; or using a unique identifier for 
inventory categories composed of fungible merchandise accounted for 
using another approved alternative inventory method.
    (i) Direct identification. The warehouse proprietor shall mark all 
shipments for identification, showing the general order or warehouse 
entry number or seizure number and the date of the general order, entry, 
or delivery ticket in the case of seizures. Containers covered by a 
given warehouse entry, general order or seizure shall not be mixed with 
goods covered by any other entry, general order or seizure. Merchandise 
covered by a given warehouse entry, general order or seizure may be 
stored in multiple locations within the warehouse if the proprietor's 
inventory control system specifically identifies all locations where 
merchandise for each entry, general order or seizure is stored and the 
quantity in each location. The proprietor must provide, upon request by 
a Customs 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 specific identification by 
warehouse entry number, provided the merchandise meets the criteria for 
fungibility and the recordkeeping requirements contained in Sec. 19.12 
of this part are met. As of the beginning date of FIFO procedures, each 
kind of fungible merchandise in the warehouse under FIFO shall 
constitute a separate inventory category. Each inventory category shall 
be assigned a unique number or other identifier by the proprietor to 
distinguish it from all other inventory categories under FIFO. All of 
the merchandise in a given inventory category shall be physically placed 
so as to be segregated from merchandise under other inventory categories 
or merchandise accounted for under other inventory 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 inventory 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 proprietor 
must provide, upon request by a Customs officer, a record balance of 
goods, specifying the quantity in each storage location, covered by any 
warehouse 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 methods. Other alternative 
inventory systems 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.
    (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 recordkeeping systems, and other requirements 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]



Sec. 19.5  [Reserved]



Sec. 19.6  Deposits, withdrawals, blanket permits to withdraw and sealing requirements.

    (a)(1) Deposit in warehouse. The port director may authorize the 
deposit of merchandise in designated bonded warehouses, without physical 
supervision by a Customs officer. Goods for which a warehouse or 
rewarehouse entry has been accepted, according to the procedures in part 
144, subpart B, of this chapter, shall be examined or inspected at the 
place of unlading, bonded warehouse, or other location as ordered by the 
port director. When merchandise is deposited in a proprietor's warehouse 
or is accepted and receipted for by a proprietor or his agent for

[[Page 397]]

transport to the proprietor's warehouse, the proprietor will be 
responsible for the quantity and condition of merchandise reflected on 
entry documentation adjusted by (i) any allowance made under part 158, 
subparts A and B, of this chapter by the port director, and (ii) any 
discrepancy report made jointly on the appropriate cartage documents as 
set forth in Sec. 125.31 of this chapter by the warehouse proprietor 
and the bonded carrier or licensed cartman or lighterman delivering the 
goods to the warehouse, or an independent weigher, gauger, measurer, and 
signed by an authorized representative of the above within 15 calendar 
days after deposit. A copy of any joint report of discrepancy shall be 
made within five business days of agreement and provided to the port 
director on the appropriate cartage documents as set forth in Sec. 
125.31 of this chapter. If the proprietor of the bonded warehouse 
transports the goods to the warehouse, no discrepancy report shall be 
necessary.
    (2) Allowance after deposit. After merchandise has been deposited in 
the warehouse the proprietor's liability may be further modified by any 
adjustment for duties allowed by the port director for concealed 
shortages (i.e., Sec. 158.5(a)), casualty loss (i.e., part 158, subpart 
C), destruction (i.e., Sec. 158.43), or manipulation (i.e, Sec. 19.11, 
19 U.S.C. 1562).
    (b)(1) Withdrawal and removal from warehouse. The port director may 
authorize the withdrawal and removal of merchandise, without physical 
supervision or examination by a Customs officer under permit issued 
under the procedure set forth in Sec. 144.39 of this chapter. When a 
withdrawal or removal is not physically supervised by a Customs officer, 
the warehouse proprietor will be relieved 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 warehouse, the proprietor will 
be relieved of responsibility only if it receives the signed receipt on 
the withdrawal or removal document of the carrier named in the document. 
The proprietor's responsibility 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 shall be noted on 
the permit copy of the withdrawal or removal document. A copy of any 
joint report of discrepancy shall be promptly provided to the port 
director.
    (2) Retention in warehouse after withdrawal. Merchandise for which a 
permit for withdrawal has been issued, whether duty-paid or not, need 
not be physically 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 Customs custody. 
All other goods which have been withdrawn, but not removed, remain in 
Customs custody until the end of the 5-year warehouse entry bond period.
    (c) Customs determination of liability. When a Customs officer 
physically supervises the deposit or removal of merchandise under 
paragraphs (a)(1) or (b)(1) of this section, the Customs officer's 
report of merchandise received or removed shall be determinative of the 
quantity and condition of merchandise received or removed from the 
warehouse for Customs 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 procedure of Sec. 
144.37(h) of this chapter (Class 9 warehouses only);
    (B) Aircraft or vessel supplies under Sec. 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.

[[Page 398]]

    (ii) Blanket permits to withdraw may be used only for delivery at 
the port where withdrawn and not for transportation in bond to another 
port, except for a withdrawal for transportation to another port by a 
duty-free sales enterprise which meets the requirements for exemption as 
stated in Sec. 144.34(c) of this chapter. Blanket permits to withdraw 
may not be used for delivery to a location for retention or splitting of 
shipments under the provisions of Sec. 18.24 of this chapter. A 
withdrawer who desires a blanket permit shall state in capital letters 
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 section 19.6(d), C.R.'' Customs 
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 withdrawn 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 regulation Customs is charged with administering. Merchandise 
covered by an entry for which a blanket permit was issued may be 
withdrawn for purposes other than those specified in this paragraph if a 
withdrawal is properly filed as required in subpart D, part 144, of this 
chapter.
    (2) Withdrawals under blanket permit. Withdrawals may be made under 
blanket permit without any further Customs approval, and shall be 
documented by placing a copy of the withdrawal document in the 
proprietor's permit file folder. Each withdrawal shall be filed on 
Customs Form 7501 and shall be consecutively numbered, prefixed with the 
letter``B''. The withdrawal shall specify the quantity and value of each 
type of merchandise to be withdrawn. Each copy shall bear the summary 
statement described in Sec. 144.32(a) of this chapter, reflecting the 
balance of merchandise 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 
supplementary withdrawal shall be made on the copy and reported to the 
port director as provided in paragraph (b)(1) of this section. A copy of 
the withdrawal shall be retained in the records of the proprietor as 
provided in Sec. 19.12(d)(4) of this part. Merchandise shall not be 
removed from the warehouse prior to the preparation of the supplementary 
withdrawal. If merchandise is so removed, the proprietor shall be 
subject to liquidated damages as if it were removed without Customs 
permit.
    (3) Withdrawals under blanket permit from duty-free stores. 
Withdrawals under blanket permit from duty-free stores shall be made on 
the sales ticket described in Sec. 144.37(h) of this chapter. The sales 
ticket need not contain the summary statement described in Sec. 
144.32(a) of this chapter, since the information required is included in 
the sales ticket register. The sales ticket shall be serially numbered 
as provided in Sec. 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 number 
or vessel sailing, may be filed on one Customs Form 7512; however, an 
attachment form, developed by the warehouse proprietor and approved by 
the port director may be used for all withdrawals. This attachment form 
shall provide a sufficient summary of the goods being withdrawn, and 
shall include 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 information, 
the duty rate and amount, and any applicable Internal Revenue tax 
calculation, for each warehouse entry being withdrawn. A copy of Customs 
Form 7512 and the summary attachment must be attached to each permit 
file folder unless the warehouse proprietor qualifies for the permit 
file folder exemption under Sec. 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, including withdrawals made for purposes

[[Page 399]]

other than duty-free store delivery, vessel or aircraft supply, or 
diplomatic use, the proprietor shall prepare a report on a copy of 
Customs Form 7501, or a form on the letterhead of the proprietor, which 
provides an account of the disposition of the merchandise covered by the 
blanket permit. The form shall bear the words ``BLANKET PERMIT SUMMARY'' 
in capital letters conspicuously printed or stamped in the top margin. 
On the form, the proprietor shall certify that the merchandise listed 
thereunder was withdrawn in compliance with Sec. 19.6(d), and shall 
account for all of the merchandise withdrawn under blanket permit by 
HTSUS (Harmonized Tariff Schedule of the United States) number, HTSUS 
quantity (where applicable) and value. If applicable, the account shall 
separately list and identify merchandise withdrawn for
    (i) Duty-free store exportation,
    (ii) Vessel or aircraft supply use, and
    (iii) Personal or official use of persons and organizations set 
forth in subpart I, part 148, of this chapter. If all of the merchandise 
was withdrawn under the sales ticket procedure of Sec. 144.37(h) of 
this chapter, the sales ticket register may be substituted for the 
blanket permit summary. The form will be placed in the permit file 
folder and treated as provided in Sec. 19.12(a) of this part.
    (e) Affixing or breaking of seals. The port director may authorize a 
warehouse proprietor to: (1) Break Customs in bond seals affixed under 
Sec. 18.4 of this chapter, or under any Customs order or directive, on 
any vehicle or container of goods entered for warehouse upon arrival of 
the vehicle or container at the warehouse: or (2) affix Customs in bond 
seals to any vehicle or container of goods for which a withdrawal 
document has been approved for movement in bond. The affixing or 
breaking of seals so authorized, shall be deemed to have been done under 
Customs supervision. The proprietor shall report to the port director 
any seal found, upon arrival of the vehicle or container at the 
warehouse, to be broken, missing, or improperly affixed, and hold the 
vehicle or container and its contents intact pending instructions from 
the port director.

[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]



Sec. 19.7  Expenses of labor and storage.

    (a) All merchandise deposited in public stores or in bonded 
warehouses shall be held liable for the expenses of labor and storage 
chargeable thereon at the customary rates and for all other expenses 
accruing upon the goods.
    (b) The rates of storage and labor shall be agreed upon between the 
importer and the warehouse proprietor, but in case of disagreement the 
port director may, with the consent of all parties in interest, 
determine the rates to be charged.
    (c) Except in cases provided for by Sec. 141.102(d) of this 
chapter, when merchandise 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 existing 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]



Sec. 19.8  Examination of goods by importer; sampling; repacking; examination of merchandise by prospective purchasers.

    Importers may, upon application approved by the port director on 
Customs Form 3499 examine, sample, and repack \12\ or transfer 
merchandise in bonded warehouse. Where there will be no interference 
with the orderly conduct of Customs business and no danger to the 
revenue prospective purchaser may be permitted to examine merchandise in 
bonded warehouses upon the written request of the owner, importer, 
consignee, or transferee.
---------------------------------------------------------------------------

    \12\ Repacking shall be considered a manipulation within the purview 
of sec. 562, Tariff Act of 1930, as amended.

[28 FR 14763, Dec. 31, 1963, as amended by T.D. 82-204, 47 FR 49371, 
Nov. 1, 1982]

[[Page 400]]



Sec. 19.9  General order, abandoned, and seized merchandise.

    (a) Acceptance of merchandise. 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 receipt of 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). A joint 
determination will be made by the warehouse proprietor and the bonded 
carrier of the quantity and condition of the goods or articles so 
delivered to the warehouse. Within two working days of the joint 
determination, the warehouse proprietor will report to the port director 
any discrepancy between the quantity and condition of the goods and that 
reported on CF 6043, or other similar Customs document as designated by 
the port director or an electronic equivalent as authorized 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 Sec. 19.12.
    (c) Release of merchandise. Merchandise in general order may be 
released by the warehouse proprietor, after Customs inspection or 
examination as ordered by the port director, to the person named in a 
release order under Sec. 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 
Customs Form 3461, 7501, 368 or 368A or other Customs form as designated 
by the port director. General order goods which have been unclaimed 
under Sec. 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 warehouse 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 transferred shall be determined jointly by 
the proprietor and the cartman or lighterman picking up the goods for 
delivery to the place of sale. Any discrepancies 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 only upon 
such written terms and conditions 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]



Sec. 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 delivery unless the warehouse proprietor endorses the duty-paid 
permit to authorize delivery to another person.

[T.D. 82-204, 47 FR 49371, Nov. 1, 1982]

             Manipulation in Bonded Warehouses and Elsewhere



Sec. 19.11  Manipulation in bonded warehouses 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 manipulation.
    (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 storage-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. Merchandise 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 
warehouse, to another storage warehouse,

[[Page 401]]

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 jurisdiction of the warehouse or 
other designated place of manipulation, shall describe the contemplated 
manipulation 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, Tariff Act of 1930, as amended. If 
the port director is satisfied that the merchandise 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 approve a 
blanket application to manipulate on Customs Form 3499, for a period of 
up to one year, for a continuous or a repetitive manipulation. The 
warehouse proprietor must maintain a running record of manipulations 
performed under a blanket application, indicating the quantities before 
and after each manipulation. The record must show what took place at 
each manipulation describing marks and numbers of packages, location 
within the facility, quantities, and description of goods before and 
after manipulation. The port director is authorized to revoke a blanket 
approval to manipulate and require the proprietor to file individual 
applications if necessary to protect the revenue, administer any law or 
regulation, or both. Manipulation resulting in a change in condition of 
the merchandise, which will make it subject 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 manipulated elsewhere than in a bonded 
warehouse unless the merchandise has been regularly entered for 
consumption or warehouse and is of a class entitled to the warehousing 
privilege under section 557, Tariff Act of 1930, as amended.
    (f) Upon compliance with the provisions of paragraph (d) of this 
section, manipulated merchandise may be further manipulated before 
withdrawal in cases where the port director is satisfied that this will 
not endanger the revenue or interfere with the efficient conduct of 
Customs business. The merchandise remaining in the warehouse shall be 
properly repacked after each manipulation.
    (g) Except as provided in Sec. 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 repacked package. 
Each type of withdrawal filed shall contain a summary statement 
indicating the quantity in the warehouse account after manipulation and 
immediately before the withdrawal, the quantity withdrawn on the 
particular withdrawal, and the quantity remaining in the warehouse after 
the withdrawal. When merchandise covered by a consumption entry is 
manipulated 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 Sec. 159.9 of this chapter.
    (h) Merchandise which has been entered for warehouse and placed in a 
Class 9 warehouse (duty-free store) may be unpacked into its smallest 
irreducible unit for sale without a prior permit issued by the port 
director. The port director may issue a blanket permit 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 merchandise 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 protection of the revenue. The proprietor shall maintain 
a record of unpacking merchandise into saleable units and destruction 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]

[[Page 402]]

                                Accounts



Sec. 19.12  Inventory control and recordkeeping system.

    (a) Systems capability. The proprietor of a class 11 general order 
warehouse as described in Sec. 19.1 must have an automated inventory 
control and recordkeeping system. Proprietors of existing class 3, 4, or 
5 warehouses as described in Sec. 19.1 certified before December 9, 
2002, to receive general order merchandise 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 
warehouse proprietors have a choice of maintaining manual or automated 
inventory control and recordkeeping systems or a combination of manual 
and automated systems. All inventory control and recordkeeping systems 
must be capable of:
    (1) Accounting for all merchandise transported, deposited, stored, 
manipulated, manufactured, smelted, refined, destroyed in or removed 
from the bonded warehouse and all merchandise collected by a proprietor 
or his agent for transport to his warehouse. The records shall provide 
an audit trail from deposit through manipulation, manufacture, 
destruction, and withdrawal from the bonded warehouse either by specific 
identification or other Customs 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 
Customs of the proprietor's compliance with these regulations and 
correctness of his annual submission or reconciliation;
    (2) Producing accurate and timely reports and documents as required 
by this part; and
    (3) Identifying shortages and overages 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 Customs on a timely basis.
    (b) Procedures manual. (1) The proprietor shall have available at 
the warehouse an English language copy of its written inventory control 
and recordkeeping systems procedures manual in accordance with the 
requirements of this part.
    (2) The proprietor shall keep current its procedures manual and 
shall submit to the port director a new certification at the time any 
change in the system is implemented.
    (c) Entry of merchandise into a warehouse--(1) Identification. All 
merchandise collected by a proprietor or his agent for transport to his 
warehouse shall be receipted. In addition, all merchandise entered in a 
warehouse will be recorded in a receiving report or document using a 
Customs entry number or unique identifier if an alternate inventory 
control method has been approved. All merchandise will be traceable to a 
Customs entry and supporting documentation.
    (2) Quantity verification. Quantities received will be reconciled to 
a receiving report or document such as an invoice with any discrepancy 
reported to the port director as provided in Sec. 19.6(a).
    (3) Recordation. Merchandise received will be accurately recorded in 
the accounting and inventory system records from the receiving report or 
document using the Customs entry number or unique identifier if an 
alternative inventory control method has been approved.
    (d) Accountability for merchandise in a warehouse--(1) 
Identification of merchandise. The Customs entry number or unique 
identifier, as applicable under Sec. 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 alternative inventory control 
method is approved:
    (i) The location of the merchandise within the warehouse;
    (ii) Except for merchandise in general order, the cost or value of 
the merchandise, unless the proprietor's financial records maintain cost 
or value and the records are made available for Customs review; and

[[Page 403]]

    (iii) The beginning balance, cumulative receipts and withdrawals, 
adjustments, destructions, and current balance on hand by date and 
quantity.
    (3) Theft, shortage, overage or damage. 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 merchandise is subject to duties 
and taxes in excess of $100) shall be immediately brought to the 
attention of the port director, 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 
business days of the date of discovery. The applicable duties, taxes and 
interest on thefts and shortages so reported shall be paid by the 
responsible party to Customs within 20 calendar days following the end 
of the calendar month in which the shortage is discovered. The port 
director may allow the consolidation of duties and taxes applicable to 
multiple shortages into one payment; however, the amount applicable to 
each warehouse entry is to be listed on the submission and shall specify 
the applicable duty, tax and interest. These same requirements shall 
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 shall record all shortages and overages 
in its inventory control and recordkeeping system, whether or not they 
are required to be reported to the port director at the time. The 
proprietor must also record all shortages and overages as required in 
the Customs Form 300 or annual reconciliation report under paragraphs 
(g) or (h) of this section, as appropriate. Duties and taxes applicable 
to any non-extraordinary shortage or damage and not required to be paid 
earlier must be reported and submitted to the port director no later 
than the date the certification of preparation of Customs Form 300 is 
due or at the time the certification of preparation of the annual 
reconciliation report is due, as prescribed in paragraphs (g) or (h) of 
this section. Discrepancies found in a Class 9 warehouse with integrated 
locations as set forth in Sec. 19.35(c) will be the net discrepancies 
for a unique identifier (see Sec. 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 facilities in different 
ports without being required to file a rewarehouse entry in accordance 
with Sec. 144.34 of this chapter may offset overages and shortages 
within the same unique identifier for merchandise located in stores in 
different ports (see Sec. 19.4(b)(8)(ii) of this part).
    (4) Permit file folders--(i) Maintenance. Permit file folders shall 
be maintained and kept up to date by filing all receipts, damage or 
shortage reports, manipulation requests, withdrawals, removals and 
blanket permit summaries within five business days after the event 
occurs. The permit file folders shall be kept in a secure area and shall 
be made available for inspection by Customs at all reasonable hours.
    (ii) Review. When the final withdrawal of merchandise relating to a 
specific warehouse entry, general order or seizure occurs, the warehouse 
proprietor shall: review the permit file folder to ensure that all 
necessary documentation is in the file folder accounting for the 
merchandise covered by the entry; notify Customs of any merchandise 
covered by the warehouse entry, general order or seizure which has not 
been withdrawn or removed; and file the permit file folder with Customs 
within 30 calendar days after final withdrawal, except as allowed by 
paragraph (d)(4)(iv) of this section. The permit file folder for 
merchandise not withdrawn during the general order period shall be 
submitted to the port director upon receipt from Customs of the Customs 
Form 6043.
    (iii) Exemption to maintenance requirement. Maintenance of permit 
file folders will not be required, if the proprietor has an automated 
system capable of: satisfactorily summarizing all actions by Customs 
warehouse entry; providing upon demand by Customs an

[[Page 404]]

entry activity summary report which lists all individual receipts, 
withdrawals, destructions, manipulations and adjustments by warehouse 
entry and is cross-referenced to the source documents for each 
transaction; and maintaining source documents so that the documents can 
be readily retrieved upon request. Failure to provide the entry activity 
summary report or documentation supporting the entry activity summary 
report upon demand by the port director or the field director of 
regulatory audit could result in reinstatement by the port director of 
the requirement to maintain the permit file folder for all warehouse 
entries. When final withdrawal is made, the proprietor must submit the 
entry activity summary report to Customs. Prior to submission, the 
proprietor must ensure the accuracy of the summary report and assure 
that all supporting documentation is on file and available for review if 
requested by Customs.
    (iv) Exemption to submission requirement. At the discretion of the 
port director, 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 calendar days 
of each final withdrawal. If approved to use this procedure the 
proprietor could be required by the port director to submit permit file 
folders or entry activity summaries on a selective basis. Failure to 
promptly provide the permit file folder or entry activity summary upon 
request by the port director or the field director of regulatory audit 
could result in withdrawal of this privilege.
    (5) Physical inventory. The proprietor shall 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 Customs so that Customs 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 Sec. 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 shall notify the port director of any 
discrepancies, record appropriate adjustments in the inventory control 
and recordkeeping system, and make required payments and entries to 
Customs, 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 inventory control and recordkeeping system. The inventory 
control and recordkeeping system must have the capability to trace all 
withdrawals back to a Customs entry and to ultimate disposition of the 
merchandise by the proprietor.
    (f) Special provisions for use of FIFO inventory procedures--(1) 
Notification. A proprietor who wishes to use FIFO procedures for all or 
part of the merchandise in a bonded warehouse shall provide the port 
director a written certification that: The proprietor has read and 
understands Customs FIFO procedures set forth in this section; the 
proprietor's procedures are in accordance with Customs FIFO procedures, 
and the proprietor agrees to abide by those procedures; and the 
proprietor of a public warehouse will obtain the written consent of any 
importer using the warehouse before applying FIFO procedures to their 
merchandise.
    (2) Qualifying merchandise. FIFO inventory 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 interchangeability is 
usually decided between buyer and seller or between proprietor and 
importer, Customs is the final arbiter of fungibility in bonded 
warehouses. The criteria for determining whether merchandise is fungible 
include, but are not limited to, Governmental and recognized industrial 
standards, part numbers, tariff classification, value, brand name, unit 
of quantity (such as barrels, gallons,

[[Page 405]]

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 inventory 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 paragraph (f)(2) of this 
section:
    (i) Merchandise subject to quota, visa or export restrictions 
chargeable to different countries of origin;
    (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 merchandise itself (such 
as kits, merchandise 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 
transactions);
    (iv) Merchandise with different legal requirements for marking, 
labeling or stamping;
    (v) Merchandise with different trademarks;
    (vi) Merchandise of different grades or qualities;
    (vii) Merchandise with different importers of record;
    (viii) Damaged or deteriorated merchandise;
    (ix) Restricted merchandise; or
    (x) General order, abandoned or seized merchandise.
    (4) Maintenance of FIFO. FIFO procedures used for merchandise in any 
inventory category, must be used consistently throughout the warehouse 
storage and recordkeeping practices and procedures for the merchandise. 
For example, merchandise may not be added to inventory by FIFO but 
withdrawn by bypassing certain inventory layers to reach a specific 
warehouse entry other than the oldest one. However, this does not 
preclude the use of specific identification for some merchandise in a 
warehouse entry and FIFO for other merchandise, so long as they are 
segregated in physical storage and clearly distinguished in the 
inventory and accounting records.
    (5) FIFO recordkeeping. In the inventory and accounting records, the 
proprietor shall establish an inventory layer for each warehouse entry 
represented in each inventory category. The layers shall be established 
in the order of time of acceptance of the entry or by the date of 
importation of merchandise covered by each applicable warehouse entry. 
There shall be no mixing of layering both by time of acceptance and date 
of importation in the same warehouse. Records for each layer shall, as a 
minimum, show the warehouse entry number, date of acceptance, date of 
importation, quantity and unit of quantity. They shall also show for 
each entry the type of warehouse withdrawal number or other specific 
removal event charged against the entry, by date and quantity. Each 
addition to or deduction from the inventory category shall be posted in 
the appropriate inventory category within 2 business days after the 
event occurs. All FIFO records and documentation shall consistently use 
the same unit of quantity within each inventory category.
    (6) Entry requirements. Warehouse entries 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 shall show the unique identifier of each inventory category to 
be accounted for under FIFO, the quantity in each inventory category and 
the unit of quantity.
    (7) Receipts. Any shortages, overages, or damage found upon receipt 
shall 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 accounting records shall 
show the quantities of merchandise in each inventory category appearing 
in the product covered by the new unique identifier. The withdrawal 
shall show the unique identifiers of both the materials used in the

[[Page 406]]

manipulation and the product as manipulated. The quantities of the 
original unique identifiers will be deducted from their respective 
warehouse entries on a FIFO basis when the resultant product is 
withdrawn.
    (9) Discontinuance of FIFO. A proprietor 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 shall clearly describe the merchandise, by commercial names 
and unique identifiers, to be removed from FIFO. Following notification, 
the merchandise shall be segregated in both the recordkeeping system and 
the physical location by warehouse entry number and the quantities so 
removed shall be deducted from the appropriate FIFO inventory category 
balances. Merchandise so removed shall be maintained under the specific 
identification inventory 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 
paragraph (h) of this section or Sec. 19.19(b) of this part, the 
warehouse proprietor must prepare a Warehouse Proprietor's Submission on 
Customs Form (CF) 300 within 45 calendar days from the end of the 
business year and maintain the Submission on file for 5 years from the 
end of the business year covered by the Submission. The proprietor must 
submit to the port director, within 10 business days after preparation 
of the CF 300, a letter signed by the proprietor certifying that the CF 
300 has been prepared, is available for Customs review, and is accurate. 
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 Sec. 144.34 of this chapter, the CF 
300 shall cover all locations and warehouses of the proprietor. An 
alternative format may be used for providing the information required on 
the CF 300.
    (h) Annual reconciliation--(1) Report. Instead of preparing Customs 
Form 300 as required under paragraph (g) of this section, the proprietor 
of a class 2, importers' 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 fiscal year unless the port director 
authorizes 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 Customs, but need not be furnished to Customs 
unless requested. There is no form specified for the preparation of the 
report.
    (2) Information required. The report must contain the company name; 
address of the warehouse; class of warehouse; date of inventory or 
information on cycle counts; a description of merchandise for each entry 
or unique identifier, quantity on hand at the beginning of the year, 
cumulative receipts and transfers (by unit), quantity on hand at the end 
of the year, and cumulative positive and negative adjustments (by unit) 
made during the year. 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 Sec. 144.34 of this 
chapter, the reconciliation shall cover all locations and warehouses of 
the proprietor at the same port. If the annual reconciliation includes 
entries for which merchandise was transferred to a warehouse without 
filing a rewarehouse entry, as allowed under Sec. 144.34, the annual 
reconciliation must contain sufficient detail to show all required 
information by location where the merchandise is stored. For example, if 
merchandise covered by a single entry is stored in warehouses located in 
3 different ports, the annual reconciliation should specify individually 
the beginning and ending inventory balances, cumulative receipts, 
transfers, and positive and negative adjustments for each location.
    (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

[[Page 407]]

the annual reconciliation has been prepared, is available for Customs 
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 warehouse; the name, title, and telephone number of the 
person having custody of the records; and the address where the records 
are stored. Reporting of shortages and overages based on the annual 
reconciliation will be made in accordance with paragraph (d)(3) of this 
section. Any previously unreported shortages and overages should be 
reported to the port director and any unpaid duties, taxes and fees 
should be paid at this time.
    (i) System review. The proprietor shall perform an annual internal 
review of the inventory control and recordkeeping system and shall 
prepare and maintain on file a report identifying any deficiency 
discovered and corrective action taken, to ensure that the system meets 
the requirements of this part.
    (j) Special requirements. A warehouse proprietor submission (CF 300) 
or annual reconciliation must be prepared for each facility or location 
as defined in Sec. Sec. 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 Sec. 144.34(c) 
of this chapter, 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]

                        Manufacturing Warehouses



Sec. 19.13  Requirements for establishment of warehouse.

    (a) Buildings or parts of buildings and other enclosures may be 
designated as bonded manufacturing warehouses if the port director is 
satisfied that their location, construction, and arrangement afford 
adequate protection 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 
warehouses.
    (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 materials 
intended to be stored and used therein.
    (c) The procedure outlined in Sec. 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 exported 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 
taxable.
    (e) Proprietors of such warehouses are required to conform strictly 
to the formulas filed with the bond, or subsequently, and in no instance 
shall an article be permitted to be manufactured in or withdrawn from 
the warehouse which does not contain all the ingredients and in the 
quantities specified in the formula for the manufacture of such article, 
or which contains any ingredient 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 
insignia or name as may be indicated or desired by the purchaser, if 
such additional marking will in no manner conflict with the requirements 
of the formula or present or create a false or misleading statement or 
impression.
    (g) Secure storage. Each bonded manufacturing warehouse shall have a 
secured area separated from the remainder of the premises to be used 
exclusively for the storage of imported merchandise, domestic spirits, 
and merchandise subject to internal-revenue

[[Page 408]]

tax transferred into the warehouse for manufacture. A like area shall be 
provided to be used exclusively for the storage of products manufactured 
in the warehouse. The area shall be secured to prevent any unauthorized 
person 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 prescribed in Sec. 19.4(b)(6) of this part. The 
proprietor shall mark each package with the correct warehouse entry 
number and date until manufacturing takes place. After manufacture, the 
proprietor 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 
imported machinery or other equipment or apparatus that is for the 
construction 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]



Sec. 19.13a  Recordkeeping requirements.

    The proprietor of a manufacturing warehouse shall comply with the 
recordkeeping requirements of Sec. Sec. 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 manufacturing area to a finished 
product storage area, in the proprietor's inventory control and 
accounting records;
    (b) Take an annual physical inventory of the merchandise as provided 
in Sec. 19.12(d)(5) in conjunction with the annual submission required 
by Sec. 19.12(g); and
    (c) Record all manufacturing operations 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 merchandise.

[T.D. 84-213, 49 FR 41169, Oct. 19, 1984, as amended by T.D. 97-19, 62 
FR 15839, Apr. 3, 1997]



Sec. 19.14  Materials for use in manufacturing 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 Sec. 
141.61(e) of this chapter. If the merchandise 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 warehouse withdrawal for 
transportation, whichever is applicable.
    (b) Bond required. Before the transfer of the merchandise to the 
manufacturing warehouse is permitted, a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter 
shall be required.
    (c) Domestic merchandise. When the proprietor of any bonded 
manufacturing warehouse desires to receive therein any domestic 
merchandise, except merchandise subject to internal-revenue tax, to be 
used in connection with the manufacturer of articles permitted to be 
manufactured in such warehouse, including packages, coverings, vessels, 
and labels used in putting up such articles, an application in the 
following form shall be sent to the port director for approval and after 
approval retained by the warehouse proprietor:

                  Application To Receive Free Materials

Port of_________________________________________________________________
--------------------, 19----.
    To the Port Director:
    Application is hereby made to receive into the bonded manufacturing 
warehouse known as ----------------, situated at ---------------- the 
following described articles and materials:

----------------------------------------------------------------------------------------------------------------
              Marks                      Nos.             Description          Quantity              Value
----------------------------------------------------------------------------------------------------------------
                                  ..................  ..................  ..................  ..................
                                  ..................  ..................  ..................  ..................
                                  ..................  ..................  ..................  ..................
----------------------------------------------------------------------------------------------------------------


[[Page 409]]

(Signature)_____________________________________________________________
Port____________________________________________________________________
--------------------, 19----.


To the warehouse proprietor in charge of the bonded manufacturing 
warehouse 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 articles as authorized by law.
Port Director___________________________________________________________

    (d) Domestic spirits and wines. For the transfer of domestic spirits 
from the bonded premises of a distilled spirits plant to a bonded 
manufacturing warehouse, 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 Sec. 
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 Internal 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]



Sec. 19.15  Withdrawal for exportation of articles manufactured in bond; waste or byproducts for consumption.

    (a) Except cigars manufactured in bond and supplies for vessels, no 
articles or materials received into a bonded manufacturing warehouse or 
articles manufactured therefrom shall be withdrawn or removed therefrom 
except for direct exportation or transportation and exportation in bond 
to a foreign country. The exportation or shipment shall in every case be 
under the supervision of Customs.
    (b) The coverings or containers of imported articles or materials, 
whether or not subject to duty apart from their contents, are not 
``articles or materials'' within the meaning of section 311, Tariff Act 
of 1930, as amended, and need not be exported, but may be withdrawn from 
the warehouse for consumption 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 containers imported to be used in 
putting up the manufactured articles, if subject to duty or tax, 
constitute ``articles or materials'' within the meaning of section 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 appraised 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 section 402, Tariff Act of 1930, as amended. Upon payment 
of the duty, the withdrawal permit shall be issued for delivery and a 
proper credit given upon the manufacturer's bond.
    (e) Each withdrawal covering the items which are permitted to be 
withdrawn for consumption shall contain a summary statement thereon, 
showing for each class of merchandise the quantity on hand in the 
account, the quantity covered by the withdrawal presented, 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, except that in the 
case of flour each copy of Customs Form 7512 shall bear the following 
legend:

    Produced from wheat imported after September 15, 1930, without 
payment of duty thereon. Must not be exported to Cuba without permission 
from the director of the port of withdrawal.

    (g)(1) Articles may be withdrawn for transportation and delivery to 
a bonded storage warehouse at an exterior port under the provisions of 
section

[[Page 410]]

311, Tariff Act of 1930, as amended (19 U.S.C. 1311), for the sole 
purpose of immediate export, except for distilled spirits which may be 
withdrawn under the provisions of section 311 for transportation and 
delivery to any bonded storage warehouse for the sole purpose of 
immediate export, or may be withdrawn 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 Sec. 144.36 
of this chapter. A rewarehouse entry shall be made in accordance with 
Sec. 144.34(b) of this chapter, supported by a bond on Customs Form 
301, containing the bond conditions set forth in Sec. 113.63 of this 
chapter.
    (2) Domestic distilled spirits transferred from a Customs bonded 
manufacturing warehouse, class 6, to a Customs 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 spirits, see Sec. 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, unless an authorization of the 
manufacturer is endorsed on the face of the withdrawal, or the 
manufacturer previously and in writing has transferred the right of 
withdrawal.
    (i) When spirits and wines are withdrawn for shipment to Puerto Rico 
under section 311, Tariff Act of 1930, as amended, the procedure 
outlined in Sec. 7.1 of this chapter shall be followed.
    (j) As proof of manufacture and exportation, 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 manufacture a statement 
certified by the warehouse proprietor showing the date and number of the 
bond, the quantity and identity of the dutiable or taxable merchandise 
used, and the quantity and description 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 degree of proof.
    (k) The same proofs of exportation shall be required as in the case 
of other warehouse withdrawals for exportation.
    (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]



Sec. 19.16  [Reserved]

                    Smelting and Refining Warehouses



Sec. 19.17  Application to establish warehouse; 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 
directly from the treatment of the dutiable materials provided for in 
chapters 26 and 71 through 83, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), shall be made by the manufacturer, to the 
director of the port nearest in which such plant is situated,

[[Page 411]]

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 approves 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 reduced by 
discontinuance without necessitating a new bond unless the proprietor so 
desires.
    (d) Upon the importation at any seaboard or frontier port of the 
United States of metal-bearing materials in any form intended for a 
bonded smelting or refining warehouse situated at some other port of 
entry, they may be forwarded under an immediate transportation without 
appraisement entry.
    (e) Bond. Upon the arrival of imported 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 entered for warehouse. A bond on Customs Form 301, containing 
the bond conditions set forth in Sec. 113.62 of this chapter shall be 
on file. The port director shall thereupon issue a permit to the 
inspector to send such metal bearing materials from the importing vessel 
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 liquidation 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 principal 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 covered 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 report 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 reconciled by the port director shall be 
reported 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]



Sec. 19.18  Smelting and refining; allowance 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 materials, pursuant to Chapter 26, Additional U.S. Note 1, 
Harmonized Tariff Schedule of the United States (see Sec. 151.55 of 
this chapter), the actual percentage of losses by weight shall be 
allowed if more than 90 percent by weight of:
    (1) The zinc content initially treated at any lead plant, (2) the 
copper content 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 weight of 
the metal content shall be that shown by the manufacturer's annual 
statement. Such losses shall be applied in the liquidation of the entry 
to materials entered for consumption or for warehouse, during a 12-month 
period beginning on the first day of the

[[Page 412]]

month nearest to 90 days after the close of the manufacturer's fiscal 
year immediately preceding such 90-day period, provided the importer 
makes claim therefor in writing at the time the merchandise is entered. 
No further wastage shall be allowed. The full dutiable contents of such 
metal-bearing materials, as ascertained by commercial 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 consumption of metal so smelted or 
refined, or both, duty shall be collected thereon without the allowance 
for wastage, except where the metal was transferred to a bonded Customs 
warehouse other than a smelting warehouse and withdrawn therefrom for 
consumption. 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, 
concentrates, crude metals, or intermediate products. If the warehouse 
withdrawal for consumption covers a product which does not sustain the 
full wastage allowable (see Sec. 19.22) prior to being physically 
released from Customs custody, a proportionate part only of such wastage 
may be allowed. The warehouse withdrawal and delivery permit shall state 
the estimated amount of the dutiable metal contained in the products, 
and the warehouse withdrawal shall specify the applicable wastage. A 
quantity of dutiable metal equivalent to the smelted or refined products 
covered by each withdrawal for consumption must be actually on hand at 
the plant or plants covered 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]



Sec. 19.19  Manufacturers' records; annual statement.

    (a) Every manufacturer engaged in smelting or refining, or both, 
shall immediately notify the director of the port nearest which the 
plant is located of any material change in the character 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 deductions 
provided for in Chapter 26, Additional 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 retention shall run from the date of 
the related 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 prepare and submit to the port director at the port nearest which 
the plant is located an annual statement for the fiscal year for the 
plant involved not later than 60 days after the termination of that 
fiscal year. The annual statement for the smelting or refining warehouse 
or both, shall be in lieu of the warehouse proprietors submission 
required by Sec. 19.12. No specific form is prescribed in which such 
statement shall be prepared. As basic information, the statement shall 
show the quantities of metal-bearing materials on hand at the beginning 
of the period and the dutiable contents thereof; the

[[Page 413]]

quantities of metal-bearing materials received during the period and the 
dutiable contents thereof; the total metal-bearing materials to be 
accounted for and the dutiable contents thereof; the quantities of 
metal-bearing materials on hand at the end of the period and the 
dutiable contents thereof; 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 foreign material and the quantity of 
domestic material put in process during the smelting operations. The 
statement shall contain such further information concerning the 
quantities and kinds of metals and intermediary products 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]



Sec. 19.20  Withdrawal of products from bonded smelting or refining warehouses.

    (a) For exportation. The general procedure governing warehouse 
withdrawals for exportation shall be followed in the case of the 
withdrawal for exportation of dutiable metal from a bonded smelting 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 applicant, and the general regulations governing the transfer of 
bonded merchandise 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 withdrawn the 
wastage applicable thereto, and the imported material from which such 
metal was produced, together with any dutiable metal charged on entry.



Sec. 19.21  Smelting and refining in separate 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 
removed 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 products 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 supervision in accordance with Sec. 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 
liquidation of the warehouse entry.
    (c) The withdrawal for transportation shall show the gross weight of 
the smelted and unrefined products withdrawn, the weight of the dutiable 
metal contained therein, the wastage applicable thereto and the duties 
properly chargeable on the withdrawn products 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 
withdrawal 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 withdrawn, plus the refining 
wastage prescribed for said refining warehouse, plus the smelting 
wastage prescribed for the bonded smelting warehouse in which the 
smelted and unrefined products were produced, together with the amount 
of any dutiable metals entirely lost in the smelting or refining, or 
both. However, when the metal is withdrawn for consumption, duty shall 
be

[[Page 414]]

collected on an amount of metal-bearing materials in their condition as 
imported equivalent to that from which such metal would be producible. 
No allowance for either smelting or refining wastage shall be permitted, 
except where the metal is withdrawn from a Customs warehouse other than 
a bonded 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]



Sec. 19.22  Withdrawal of metal refined in part from imported crude metal and in part from crude metal produced from imported materials.

    Upon withdrawal for exportation of metal from a bonded warehouse 
engaged in refining, or smelting and refining, part of which metal was 
obtained from imported crude metal and part from crude metal produced by 
smelting imported materials, the warehouse 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 exported 
product. However, upon withdrawal of such refined metal for consumption, 
no allowance shall be made for wastage except where the withdrawal is 
made from a bonded Customs warehouse other than a bonded smelting and 
refining warehouse.



Sec. 19.23  Withdrawal for exportation from one port to be credited on warehouse entry account at another port.

    On exportation of metal pursuant to the provisions of section 
312(b)(1), Tariff Act of 1930, as amended, the general procedure 
covering warehouse withdrawals for exportation shall be followed. 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 
director of the port of withdrawal to forward 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 
prepared 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 withdrawal, 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 
movement of the dutiable metal from the plant. In such cases, a so-
called memorandum withdrawal, in the number of copies provided for in 
Sec. 144.37 of this chapter, may be used in the first instance for the 
purpose of obtaining the required Customs record of the exportation of 
the dutiable metal under Customs supervision. All memorandum withdrawals 
shall be conspicuously endorsed ``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]



Sec. 19.24  Theoretical transfer without physical shipment of dutiable metal.

    (a) Transfer may be made from one port of entry to another by a 
withdrawal for transportation and rewarehouse executed in regular form 
without physical shipment of the metal, provided enough like metal in 
any form is on hand at the establishment to which the theoretical 
transfer is made to satisfy the new bond obligations.
    (b) The wastage allowance established for the plant from which the 
original withdrawal for transportation

[[Page 415]]

was made shall be shown on the transfer withdrawal and set up as a part 
of the charge against the bond at the plant to which the metal was 
theoretically transferred. Such wastage shall govern and be the basis 
for allowance when metal is withdrawn from the plant where the 
theoretical rewarehousing was affected.



Sec. 19.25  Credit to be applied under various 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 exported.
    (2) The wastage in effect on the date of entry at the plant of 
initial treatment of such materials.
    (3) The proportion of any other dutiable 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 Sec. 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 connection with the theoretical transfer, irrespective 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 paragraph (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 
manufacturing warehouse, credit shall be applied 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 limited to the quantity of dutiable metal transferred 
to such warehouse.

                  Space Bonded for the Storage of Wheat



Sec. 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 Sec. Sec. 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]



Sec. 19.30  Domestic wheat not to be allowed in bonded space.

    The presence of domestic wheat in space bonded for the storage of 
imported wheat shall not be permitted.



Sec. 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 distinguishable insignia 
securely affixed thereto, so as to facilitate the maintenance 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 containers, 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.



Sec. 19.32  Wheat manipulation; reconditioning.

    (a) The mixing, blending, or commingling of imported wheat and 
domestic

[[Page 416]]

wheat, or of imported wheat of different classes and grades, as an 
incident of transportation or as an incident of exportation under 
transportation and exportation entries, direct export entries, or 
withdrawals for exportation shall not be permitted. Applications for 
permission to manipulate wheat under the provisions of section 562, 
Tariff Act of 1930, as amended, shall be approved only after the 
concurrence of all interested Federal agencies has been furnished by the 
applicant.
    (b) Where it is found that elevating, screening, blowing, 
fumigating, or drying 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 preclude unauthorized access to the 
wheat.



Sec. 19.33  General order; transportation in bond.

    The provisions of Sec. Sec. 19.29 through 19.32 shall be applicable 
to those parts of any premises in which imported wheat is stored in a 
general-order status, or stored pending exportation under an entry for 
exportation or for transportation and exportation.



Sec. 19.34  Customs supervision.

    Port directors shall exercise such supervision and control over the 
transactions covered by Sec. Sec. 19.29 through 19.32 as will insure 
that there will be no unauthorized access to the imported wheat and no 
unauthorized mixing, blending, or commingling of such imported wheat. 
Importers, exporters, proprietors of Customs bonded warehouses, bonded 
common carriers, and others handling imported wheat in continuous 
Customs custody shall maintain such records as will enable Customs 
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 quantity 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 transaction. Port 
directors shall from time to time request the appropriate Customs 
officer to examine such records of importers, exporters, warehouse 
proprietors, bonded common carriers, and others handling such wheat in 
continuous 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, unless otherwise noted.



Sec. 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 foreign 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 departs. ``Conditionally duty-free merchandise'' means 
merchandise sold by a duty-free store on which duties and/or internal 
revenue taxes (where applicable) have not been paid. Except insofar as 
the provisions of this section and Sec. Sec. 19.36-19.39 are more 
specific, the procedures for bonded warehouses apply to duty-free stores 
(Class 9 warehouses).
    (b) Location. A duty-free store (class 9 warehouse) may be 
established or located 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.

[[Page 417]]

    (c) Integrated locations. A Class 9 warehouse with multiple 
noncontiguous sales and crib locations (see Sec. 19.37(a) of this part) 
containing conditionally duty-free merchandise and requested by the 
proprietor may be treated by Customs as one location if:
    (1) The proprietor can provide Customs 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 centralized up to the point where a 
sale is made so as to automatically reduce the sale quantity by location 
from centralized 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 Customs territory, including the gate holding area in the case 
of an airport, but only if there is reasonable assurance that 
conditionally duty-free merchandise 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 individual has no practical alternative to continuing on to a 
foreign country or to returning to Customs territory by passing through 
a U.S. Customs inspection facility. The port director's decision as to 
what constitutes the exit point or reasonable assurance of exportation 
in a given situation is final.
    (e) Notice to customers. Class 9 warehouse proprietors shall display 
in prominent places where they will be noticed and read by customers 
signs which state clearly that any conditionally duty-free merchandise 
purchased 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 personal 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 Sec. 19.4(b)(6) of this part shall be applied 
to the security of the sales rooms and cribs by the port director. The 
proprietor shall establish procedures 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 
governmental authority, incident to its jurisdiction 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 delivered 
to or through such facility for exportation, merchandise incident to 
such operation may not be withdrawn for exportation and transferred to 
or through such facility unless the operator of the duty-free store 
demonstrates 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]



Sec. 19.36  Requirements for duty-free store operations.

    (a) Withdrawals. Merchandise withdrawn under the sales ticket 
procedure in Sec. 144.37(h) of this chapter may be delivered only to 
individuals departing from the Customs territory for exportation 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 Sec. 144.39 of this chapter.
    (b) Procedures required. Each duty-free store shall establish, 
maintain, and follow written procedures to provide reasonable assurance 
to the port director that conditionally duty-free merchandise purchased 
therein will be

[[Page 418]]

exported from the Customs territory. A copy of any change in the 
procedure will be provided to the port director before it is 
implemented. However, receipt by Customs of the procedures of any change 
thereto shall not be construed as approval by Customs of the procedures. 
The port director is responsible for ensuring that each enterprise has 
established guidelines with Customs and is complying with those 
guidelines, giving assurance that proper supervision exists when 
delivery is made to the purchaser at or before the exit point. The port 
director may at any time require any change in the procedures deemed 
necessary 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 shall establish, maintain, and enforce written restrictions 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 
quantities for household or family consumption as well as for gifts to 
others. Proprietors will not knowingly sell or deliver conditionally 
duty-free merchandise in any quantity to any individual for the purpose 
of resale. A copy of the restrictions and of any change thereto shall be 
provided to the port director prior to implementation. However, receipt 
of the written restrictions by Customs shall not be construed as 
approval by Customs of the restrictions. The port director may require 
any change in the restrictions deemed necessary to conform to the 
personal-use quantity restriction of this section.
    (d) Reimported merchandise. Merchandise 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 enforce this 
restriction, the port director may require the proprietor to mark or 
otherwise place a distinguishing identifier on individual items of 
merchandise to indicate the items were sold in a U.S. duty-free store, 
if a pattern is disclosed 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 unrelated violations. Any such marking required by 
the port director will be inconspicuous to the purchaser and will not 
detract from the value of the merchandise. 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 unless all or most items are part of the pattern.
    (e) Merchandise eligible for warehousing. Only conditionally duty-
free merchandise may be placed in a bonded storage area of a Class 9 
warehouse. However, domestic merchandise and merchandise which was 
previously entered or withdrawn for consumption, may be brought into the 
bonded sales or crib area of a Class 9 warehouse for display and sale, 
and in the case of a crib, for delivery to purchasers. However, such 
merchandise must be either identified or marked ``DUTY-PAID'' or ``U.S.-
ORIGIN'', or similar markings, as applicable, so that Customs officers 
can easily distinguish conditionally duty-free merchandise from other 
merchandise in the sales or crib area.
    (f) Sale of merchandise. Conditionally duty-free merchandise for 
exportation at airport or seaport exit points may be sold and delivered 
only to purchasers 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 voyage departing directly from the 
Customs territory with no intermediate stops in the U.S.
    (g) Inventory procedure. Duty-free store proprietors shall maintain, 
at the duty-free store or at another location approved by the port 
director, a current inventory separately for each storage area, crib, 
and sales area containing conditionally duty-free merchandise by 
warehouse entry, or by unique identifier where permitted by the port 
director. Proprietors shall assure that Customs has ready access to 
those records, and that the records are

[[Page 419]]

stored in such a way as to keep transactions of multiple facilities 
separated. The inventory shall be reconcilable with the accounting and 
inventory records and the permit file folder requirements of Sec. 19.12 
(d), (e) and (f) of this part. Proprietors are subject also to the 
recordkeeping requirements of other paragraphs of Sec. 19.12, as well 
as those of Sec. Sec. 19.6(d), 19.37(d), 19.39(d) of this part, and 
144.37(h)(3) of this chapter.

[T.D. 92-81, 57 FR 37698, Aug. 20, 1992, as amended by T.D. 97-19, 62 FR 
15840, Apr. 3, 1997]



Sec. 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 persons departing from the United States. It shall be 
located beyond the exit point, unless exception has been made under 
Sec. 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 necessary for 
the delivery operations for a period, if approved by the port director. 
The port director may increase or decrease the quantity as deemed 
necessary for the protection of the revenue and proper administration of 
U.S. laws and regulations, or may order the return to the storage area 
of goods remaining unsold.
    (b) Delivery and removal of merchandise. Conditionally duty-free 
merchandise 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 Sec. 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 occurred in the bonded warehouse. 
If delivery is made by licensed cartman, cartage vehicles shall be 
conspicuously marked as provided in Sec. 112.27 of this chapter.
    (c) Delivery vehicles. Vehicles, including mobile cribs, containing 
conditionally duty-free merchandise for delivery to or from a crib shall 
carry a listing of the articles contained therein. The proprietor shall 
provide, upon request by Customs, a transfer document sufficient to 
account for each movement of inventory among its locations. The 
merchandise in the vehicles shall be subject to inspection by Customs.
    (d) Retention of records. Class 9 warehouse proprietors shall 
maintain records of conditionally duty-free merchandise transported 
beyond the exit point and returned therefrom, and Customs 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 
Sec. 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]



Sec. 19.38  Supervision of exportation.

    (a) Sales ticket withdrawals. Conditionally duty-free merchandise 
withdrawn under the sales ticket procedure for exportation shall be 
exported only under Customs supervision as provided in this section and 
Sec. 19.39 of this part. General Customs supervision shall be exercised 
as provided in Sec. 19.4 of this part and Sec. 101.2(c) of this 
chapter, and may consist of spot checks of exportation transactions, 
examination of articles being exported, and audits of the proprietor's 
records.
    (b) Supervision of ATF bonded exports. Customs officers may conduct 
general supervision of exportations of cigarettes 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]



Sec. 19.39  Delivery for exportation.

    (a) Delivery to land border locations--(1) Land border locations. 
Land border location means an exit point (see Sec. 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

[[Page 420]]

lake or river, but not including departure 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 beyond the exit point, 
except as specified in paragraph (a)(2) of this section.
    (2) Delivery at or before exit point. Delivery of such merchandise 
may be made at or before the exit point of any location approved by 
Customs as of August 23, 1988. In such cases, delivery shall be done 
under the physical supervision of a Customs officer, or in accordance 
with established guidelines as required by Sec. 19.36(b) of this part. 
The officer shall sign the sales ticket certifying exportation and 
return it to the proprietor for retention in the files. The port 
director may also require that the warehouse proprietor have the person 
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 Sec. 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. Deliveries for exportation from such locations may be 
made only beyond the exit point, except as specified in paragraph (b)(2) 
of this section.
    (2) Delivery at or before exit point. Delivery of such merchandise 
may be made at or before the exit point in the case of any locations 
approved by Customs as of August 23, 1988. In such cases, delivery shall 
be done under the physical supervision of a Customs officer, or in 
accordance with established guidelines as required by Sec. 19.36(b) of 
this part. The officer shall sign the sales ticket certifying 
exportation and return it to the proprietor for retention in the files. 
The port director may also require that the warehouse proprietor have 
the person receiving the article sign the same copy to certify receipt.
    (c) Delivery to airport locations. Airport location means an exit 
point from which conditionally duty-free merchandise is delivered to 
departing individuals for exportation on a scheduled, chartered, or 
``for-hire'' airline. Delivery of conditionally duty-free merchandise to 
be exported from such locations may be made by one of the following five 
procedures:
    (1) Delivery in sterile area. A sterile area is an area that is 
within the airport and to which access is restricted to those passengers 
departing from Customs territory. In such cases, delivery will be made 
directly to the purchaser (or a family member or companion 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 departing on a domestic flight, with individuals departing for 
foreign;
    (2) Passenger delivery. Merchandise may be delivered by the cartman 
or duty-free store operator to the purchaser (or a family member or 
companion 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 marking of its boundaries, or require proper supervision in 
accordance with established guidelines as required by Sec. 19.36(b) of 
this part, if needed for reasonable 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 aircraft on which 
the passenger will depart. The airline will release the merchandise to 
the purchaser when the aircraft has departed for its foreign 
destination;
    (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 passengers holding a through ticket on 
the same flight, with no stopover privileges in the United States, to a 
foreign destination;

[[Page 421]]

    (ii) Merchandise shall be placed on the aircraft on which the 
passenger departs 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. Containers stowed in baggage 
compartments 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 duplicate, of conditionally duty-
free merchandise 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 airline for 
presentation to Customs as requested at the intermediate or final port, 
and the duplicate copy to be returned to and retained by the proprietor 
for record purposes;
    (v) The seals shall not be broken nor shall any of the purchases be 
delivered until the aircraft is secured for departure 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 request, make 
available to Customs the purchaser's name, the purchaser's airline 
ticket number and the identity and quantity of the merchandise delivered 
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 actually 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 establish a procedure to obtain redelivery of that 
merchandise from the airline.
    (d) Lading manifest lists; certificate of exportation. The 
proprietor shall retain copies of lading manifest lists and certificates 
of lading for exportation in its files for not less than 5 years after 
exportation by warehouse entry number or by unique identifier where 
permitted by the port director (see Sec. 19.36(g)).
    (e) Delivery method. Delivery of conditionally duty-free merchandise 
to persons for exportation will be made by licensed cartmen or bonded 
carriers under the procedures in subpart D, part 125, and Sec. 
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 occurred in the bonded warehouse.
    (f) Return of merchandise to stock. Whenever merchandise is 
withdrawn under the sales ticket procedure of Sec. 144.37(h) of this 
chapter, but is undeliverable or is rejected by the purchaser, the 
merchandise may be returned to the duty-free store and the records, 
including the sales ticket and sales ticket register, amended to reflect 
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.



Sec. 19.40  Establishment, relocation or alteration of container stations.

    (a) A container station, independent of the importing carrier, may 
be established at any port or portion of a port, or any other area under 
the jurisdiction of a port director upon the filing of an application 
therefore and its approval by the port director and the posting of a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.63 of this chapter in such amount as the port director shall 
require.
    (b) Alterations to or relocation of a container station may be made 
with the permission of the director of the

[[Page 422]]

port in which the facility is located, or if not within a port's limits, 
nearest to where the facility is located. An application to alter or 
relocate a container station shall be accompanied by the fee required by 
paragraph (c) of this section.
    (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 increased costs, to establish, relocate or alter 
the container station. The published revised fee schedule shall remain 
in effect until changed.
    (2) The fee, rounded off to the nearest dollar, shall be calculated 
in accordance with Sec. 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]



Sec. 19.41  Movement of containerized cargo to a container station.

    Containerized cargo may be moved from the place of unlading to a 
designated container station, or may be received directly at the 
container station from a bonded carrier after transportation 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]



Sec. 19.42  Application for transfer of merchandise.

    The container station operator may file an application for the 
transfer of a container intact to the station. The application shall be 
in duplicate in the following or substantially similar format:

                          U.S. Customs Service

 application and permit to transfer containerized cargo to a container 
                                 station

                                                       Date ------------
    Application is made to transfer the containers and their contents 
listed below which arrived on -------- (Carrier) on -------- (Date) at 
Pier ---- to the -------- (Container station)
    An abstract of the carrier's manifest covering the containers by B/L 
No., marks, numbers, contents, consignee, etc., is attached hereto.

              list of containers by marks and numbers only

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
                                                (Signature of authorized
                                             agent of container station)
    We concur: ------------------------------------------------

                (Signature of agent of importing carrier)

                             transfer record

    Delivered to ------------------------ (cartman), C.H.L. No. ---- in 
apparent good order and condition except as noted:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          Signature of                               Received signature
             Truck No.                  Container numbers             Date                 inspector         Signature of cartman    container operator
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 423]]



Sec. 19.43  Filing of application.

    The application, listing the containers 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 merchandise 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]



Sec. 19.44  Carrier responsibility.

    (a) If merchandise is transferred directly to a container station 
from an importing carrier, the importing carrier shall remain liable 
under the terms of its bond for the proper safekeeping and delivery of 
the merchandise until it is formally receipted for by the container 
station operator.
    (b) If merchandise is transferred directly 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 
delivery 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 applicable, shall be 
responsible for assuring that the provisions of subpart A, part 158 of 
this chapter, relating to quantity determinations, and discrepancy 
reporting and accountability are followed.
    (d) The importing carrier and the bonded carrier, as applicable, 
shall indicate concurrence in the transfer of the merchandise either by 
signing the application for transfer or by physically 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 delivered for transfer to the container station is an 
authorized representative of the operator.
    (f) The importing carrier and the bonded carrier, as applicable, 
shall furnish 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 Sec. 112.1) in which the container station is located 
and transport the merchandise to his container station, the container 
station operator must formally receipt for the merchandise at the time 
of collection, 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]



Sec. 19.45  Transfer of merchandise, approval 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 container 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 carrier shall receipt for the merchandise on both 
copies of the application.

[T.D. 74-54, 39 FR 4876, Feb. 18, 1974]



Sec. 19.46  Employee lists.

    A permit shall not be granted to an operator to transfer a container 
or containers to a container station, if the 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, receipt, 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 calendar days after the 
employment of any new personnel employed in connection with the 
movement, receipt, storage, or delivery of imported merchandise, advised 
the port director in writing of the names, addresses, social security 
numbers, and dates and places of

[[Page 424]]

birth of such new employees. The operator shall, within 10 calendar 
days, advise the port director if the employment of any employee is 
terminated. A person shall not be deemed to be employed by an operator 
if he is an officer or employee of an independent contractor engaged by 
the operator to move, receive, store, deliver, or otherwise handle 
imported merchandise.



Sec. 19.47  Security.

    The space to be used for the purposes of breaking bulk and 
delivering cargo shall be properly secured against access by 
unauthorized persons, including persons not on the list of current 
employees furnished to the port director by the container station 
operator, the principal on the bond, as required by Sec. 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.



Sec. 19.48  Suspension or revocation of the privilege of operating a container station; hearings.

    (a) Grounds for suspension or revocation. 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 refuses or neglects to obey any 
proper order of a Customs officer or any Customs 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 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 
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 application 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 required by Sec. 19.46; or
    (7) The bond required by Sec. 19.40 is determined 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 director shall suspend or revoke the 
privilege of operating a container station by serving notice of the 
proposed action in writing upon the container station operator. The 
notice shall be in the form of a statement specifically setting forth 
the grounds for revocation or suspension 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 operator 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 
duplicate and shall set forth the response of the container station 
operator to the statement of the port director. The container station 
operator, in his notice of appeal, may request a hearing.
    (c) Hearing on appeal. If a hearing is requested, it shall be held 
before a hearing officer designated by the Secretary of the Treasury or 
his designee within 30 days following application therefor. The 
container station operator 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 counsel at the revocation or suspension 
hearing. All testimony in the proceeding shall be subject to cross-
examination. A stenographic record of any such proceeding shall be made 
and a copy thereof shall be delivered to the container station operator. 
At the conclusion of such proceeding or review of a written appeal, the 
hearing officer or

[[Page 425]]

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, together 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 Customs, in writing, additional views and arguments on 
the basis of such record. If neither the container station operator nor 
his attorney appear for a scheduled hearing, the hearing officer shall 
conclude the hearing and transmit all papers with his recommendation 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 officer or the port director. Such 
decision shall be transmitted to the port director 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]



Sec. 19.49  Entry of containerized merchandise.

    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 merchandise transferred to a container station shall 
clearly show that the merchandise is at the container station.



PART 24_CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE--Table of Contents




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 Customs bills; interest assessment; delinquency; notice to 
          principal and surety.
24.4 Optional method for payment of estimated import taxes on alcoholic 
          beverages upon entry, or withdrawal from warehouse, for 
          consumption.
24.5 Filing identification number.
24.11 Notice to importer or owner of increased 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; 
          acceptance by Customs.
24.14 Salable Customs forms.
24.16 Overtime services; overtime compensation and premium pay for 
          Customs Officers; rate of compensation.
24.17 Reimbursable services of CBP employees.
24.18 Preclearance of air travelers in a foreign 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 deceased employees and death 
          benefits.
24.34 Vouchers; vendors' bills of sale; invoices.
24.36 Refunds of excessive duties, taxes, etc.
24.70 Claims; deceased or incompetent public 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;
    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.

[[Page 426]]



Sec. 24.1  Collection of Customs duties, taxes, fees, interest, and other charges.

    (a) Except as provided in paragraph (b) of this section, the 
following procedure shall be observed in the collection of Customs 
duties, taxes, fees, interest, and other charges (see Sec. 111.29(b) 
and 141.1(b) of this chapter):
    (1) Any form of United States currency 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 accepted.
    (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 deposit 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 without 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 reliability 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 ``district'' at Sec. 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. Customs may look 
to the principal (importer) 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 financial 
institution, the port director shall require a certified check, money 
order or cash from the importer or interested party for each subsequent 
payment until such time that the port director 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 endorsed by the payee to the U.S. 
Customs Service, a domestic traveler's check, or a U.S. postal, bank, 
express, or telegraph money order shall be accepted. Before accepting 
this form of payment the Customs cashier or other employee authorized to 
receive Customs 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 Department 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 identity 
and signature of the person tendering such check or money order.
    (5) The face amount of a bank draft, cashier's check, certified 
check, or uncertified check tendered in accordance with this paragraph 
shall not exceed the amount due by more than $1 and any required change 
is authorized to be made out of any available cash funds on hand.
    (6) The face amount of a U.S. Government 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 payment of duties, taxes, 
fees, and/or other

[[Page 427]]

charges at designated Customs-serviced locations. Payment by this manner 
is limited to non-commercial entries and is subject to ultimate 
collection 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 Customs officers.
    (8) Participants in the Automated Broker Interface may use statement 
processing as described in Sec. 24.25 of this part. Statement 
processing allows entry/entry summaries and entry summaries to be 
grouped by either importer or by filer, and allows payment of related 
duties, taxes and fees by a single payment, rather than by individual 
checks for each entry. The preferred method of payment for users of 
statement processing is by Automated Clearinghouse.
    (b) At piers, terminals, bridges, airports and other similar places, 
in addition to the methods of payment prescribed 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 Customs 
inspectors and other Customs employees 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 receive Customs collections will ensure that the 
payor's name, home and business 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 following will be recorded on the 
face side of the instrument: preferably, the payor's social security 
number or, alternatively, a current passport number or current driver's 
license number (including 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 
requirements of paragraph (a)(4) of this section have been met, the 
Customs employee 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 Customs employee 
accepting the check or money order shall obtain the approval of the 
Customs officer in charge who also shall personally verify the 
identification data and indicate his approval by initialing the 
collection voucher below the signature of the Customs employee who 
approved the receipt of the check or money order.
    (3) A personal check tendered in accordance 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 papers covering duties, taxes, fees, 
interest, and other Customs charges shall be made payable to the United 
States Customs 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 
guaranteed by a Customs bond shall be assessed a charge of $30.00 for 
each check which is returned unpaid by a financial institution for any 
reason, except the charge will not be assessed if it is shown that the 
maker of the check was not at fault in connection with the return 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 citations affecting Sec. 24.1, 
see the List of CFR Sections Affected, which appears in the

[[Page 428]]

Finding Aids section of the printed volume and on GPO Access.



Sec. 24.2  Persons authorized to receive Customs collections.

    Port directors, Customs cashiers, Customs inspectors, Customs dock 
tellers, and such other officers and employees as the port director 
shall designate shall receive Customs collections.



Sec. 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 employee on an official 
form.
    (b) A receipt for the payment of estimated 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 additional copy of the 
documentation submitted in support of the payment. The appropriate 
Customs official shall validate the additional copy as paid and return 
it to the payer. Otherwise, a copy of the document filed by the payer 
and the payer's cancelled check shall constitute 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 cancelled 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 
Automated Clearinghouse (ACH) transactions, 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]



Sec. 24.3a  Customs bills; interest assessment; delinquency; notice to principal and surety.

    (a) Due date of Customs bills. Customs bills for supplemental 
duties, taxes and fees(increased or additional duties, taxes, and fees 
assessed upon liquidation or reliquidation) together with interest 
thereon, reimbursable services (such as provided for in Sec. Sec. 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 Sec. 24.3(e).
    (b) Assessment of interest charges--(1) Bills for reimbursable 
services and miscellaneous amounts. If payment is not received by 
Customs on or before the late payment date appearing on the bill, 
interest 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 computation date. The interest computation date is the date 
from which interest is calculated and is initially the bill date.
    (2) Interest on supplemental duties, taxes, fees, and interest--(i) 
Initial interest accrual. Except as otherwise provided in paragraphs 
(b)(2)(i)(A) through (b)(2)(i)(C) of this section, interest assessed due 
to an underpayment of duties, taxes, fees, or interest shall accrue 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 
the applicable entry or reconciliation. An example follows:

    Example: Entry underpaid as determined upon liquidation

[[Page 429]]

[GRAPHIC] [TIFF OMITTED] TR20OC99.000


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 accrue from the date payment was due (January 1) to date 
of liquidation (December 1).

    (A) If a refund of duties, taxes, fees, or interest was made prior 
to liquidation or reliquidation and is determined upon liquidation or 
reliquidation to be excessive, in addition to any other interest 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 liquidation 
or reliquidation of the applicable entry or reconciliation. An example 
follows:

    Example: Pre-liquidation refund but entry liquidates for an increase
    [GRAPHIC] [TIFF OMITTED] TR20OC99.001
    

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 underpayment ($500) from the date of 
deposit (January 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 duties, taxes, fees, or interest made prior to liquidation or 
reliquidation:
    (1) If the additional deposit is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation 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
[GRAPHIC] [TIFF OMITTED] TR20OC99.002


Importer owes interest on $200 as follows:
The importer makes a $1,000 initial deposit on the required date 
(January 1) and an additional pre-liquidation deposit of $200 (May 1) 
and the entry liquidates for $1,200 (December 1). Upon liquidation, the 
importer will be

[[Page 430]]

billed for interest on the original $200 underpayment from the date of 
the initial deposit (January 1) to the date of the additional deposit 
(May 1).

    (2) If the additional deposit is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to be less than 
the full balance owed on the amount initially required to be deposited, 
in addition to any other interest accrued under this paragraph 
(b)(2)(i), interest also shall accrue on the remaining unpaid balance 
from the date deposit was initially required to the date of liquidation 
or reliquidation. An example follows:

    Example: Additional deposit made and entry underpaid as determined 
upon liquidation
[GRAPHIC] [TIFF OMITTED] TR20OC99.003


Importer owes $300 plus interest as follows:
    The importer makes a $1,000 initial deposit on the required date 
(January 1) and an additional 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 accrues in 
two segments: (1) on the additional deposit ($200), from the date 
deposit was required (January 1) to the date of the additional deposit 
(May 1); and (2) on the remaining underpayment ($300), from the date 
deposit was required (January 1), to the date of liquidation (December 
1).

    (3) If an entry or reconciliation is determined upon liquidation or 
reliquidation to involve both an excess deposit and an excess refund 
made prior to liquidation or reliquidation, interest in each case shall 
be computed separately and the resulting amounts shall be netted 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
[GRAPHIC] [TIFF OMITTED] TR20OC99.004


Importer owes $200 plus or minus net 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 $900 (December 1). Upon liquidation, the 
importer will be billed for $200 plus or minus net interest. The 
interest accrues in two segments: (1) Interest accrues 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 Government 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 liquidation or reliquidation of the applicable entry or 
reconciliation to constitute a payment in excess of the amount initially 
required to be deposited, the excess deposit shall be treated as a 
refundable amount on which interest also may be payable (see Sec. 
24.36).
    (C) If a depository bank notifies Customs by a debit voucher that a 
Customs account is being debited due to a

[[Page 431]]

dishonored check or dishonored Automated Clearinghouse (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 specified in Sec. 
24.3(e), any unpaid balance shall be considered delinquent and shall 
bear interest until the full balance is paid.
    (c) Interest rate and applicability. (1) The percentage rate of 
interest to be charged on such bills will be based upon the semiannual 
rate(s) established under sections 6621 and 6622 of the Internal Revenue 
Code of 1954 (26 U.S.C. 6621, 6622). The current rate of interest will 
appear on the Customs bill and may be obtained from the IRS or the 
Customs Accounting Services, Indianapolis, Indiana. Customs will also 
publish the current interest rate in the Customs Bulletin and Federal 
Register on a semiannual basis.
    (2) The percentage rate of interest applied to an overdue bill will 
be adjusted 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 actually 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 applied to the interest charge on the delinquent 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 Customs.
    (d) Notice--(1) Principal. The principal shall be notified at the 
time of the initial billing, and every 30 days after the due date until 
the bill is paid or otherwise closed. 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) Customs office where requests for administrative adjustments 
due to billing errors may be addressed; and
    (viii) Transaction identification (e.g., entry number, reimbursable 
assignment number).
    (2) Surety. (i) Customs will report outstanding 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 otherwise 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) Customs office where requests for administrative adjustments due 
to billing errors may be addressed; and
    (I) Transaction identification (e.g., entry number, reimbursable 
assignment number).
    (ii) Upon the written request of a surety, Customs will provide the 
surety a notice 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]



Sec. 24.4  Optional method for payment of estimated import taxes on alcoholic beverages upon entry, or withdrawal from warehouse, for consumption.

    (a) Application to defer. An importer, including a transferee of 
alcoholic beverages in a Customs bonded warehouse who wishes to pay on a 
semi-monthly basis the estimated import taxes on alcoholic beverages 
entered, or withdrawn from warehouse, for consumption by him during such 
a period may apply by letter to the director of each

[[Page 432]]

port at which he wishes to defer payment. If the importer desires the 
additional 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 payments 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 deferral period beginning after the date of 
the written approval by the port director. 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 supporting documents. (1) An importer 
must state his estimate of the largest amount of taxes to be deferred in 
any semimonthly period based on the largest amount of import taxes on 
alcoholic beverages deposited at that port in such a period during the 
year preceding 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 
following 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 importer, or his authorized agent if requested, of approval.
    (2) An importer who has received approval to make deferred payments 
retains the option of deferring or depositing the estimated tax on 
imported alcoholic 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 estimated duty, he must either pay the estimated tax or 
indicate on the entry or withdrawal that he elects to defer the tax 
payment.
    (e) Tax deferment procedure. If the importer elects to defer the tax 
payments, 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 beverages will be billed on Customs 
Form 6084, United States Customs Service Bill, at the end of each tax 
deferred period 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 succeeding 
deferral period.
    (2) Interest on overdue accounts. When any bill for deferred taxes 
is not paid within the period specified in subparagraph (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 as the basic tax. The rate of 
interest to be assessed shall be 7 percent per annum or such other rate 
as is established by the Secretary of the Treasury or his delegate in 
accordance with 26 U.S.C. 6621(b).
    (g) Restrictions on deferring tax deposits. An importer may not on 
one entry, or withdrawal from warehouse for consumption, 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.

[[Page 433]]

    (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 paragraph (f) of this section, a demand for payment shall 
be made to the surety on the importer's bond. If in the opinion 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 consumption, further 
withdrawals from the warehouse entry on which the tax is delinquent will 
be refused until payment is made of the amount delinquent.
    (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 Customs officer concerned. Termination of the 
privilege for any other reason shall be subject to the approval of the 
Commissioner of Customs. Notice of termination of the tax deferral 
privilege at any port will be disseminated to all other Customs ports.
    (3) Renewal of the tax deferral privilege after it has been 
withdrawn at any port may be made only upon approval of the Commissioner 
of Customs.
    (i) Duration of deferred payment privilege. 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 termination.
    (j) Entries for consumption or warehouse 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 delinquency exists, upon 
deposit of all estimated 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, unless in accordance with section 315 of the Tariff Act of 
1930, as amended, another 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]



Sec. 24.5  Filing identification number.

    (a) Generally. Each person, business firm, Government agency, or 
other organization shall file Customs Form 5106, Notification of 
Importer's Number or Application for Importer's Number, or Notice of 
Change of Name or Address, 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 adjustment of a cash 
collection. A Customs Form 5106 shall also be filed for the ultimate 
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 employer 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 
number 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 duplicate.
    (c) Assignment of importer identification number. Upon receipt of a 
Customs Form 5106 without an Internal Revenue Service employer 
identification number or a Social Security number, an importer 
identification number shall be assigned and entered on the Customs 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 
transactions when an importer number is required. If an Internal Revenue 
Service

[[Page 434]]

employer identification number, a Social Security number, or both, are 
obtained after an importer number has been assigned by Customs, a new 
Customs Form 5106 shall not be filed unless 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 Internal Revenue Service employer identification number 
to provide optional additional identification. The two-digit suffix code 
may be used by a business firm having branch office operations to permit 
the firm to identify transactions originating in its branch offices, or 
by vessel owners to permit them to identify transactions associated 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 
office or vessel to be identified. Transactions may be associated with a 
specific branch office or vessel by reporting the appropriate 
identification number, 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 automatically 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 importer identification number will be removed 
from Customs files. To engage in future transactions described in 
paragraph (a) of this section, the person, business firm, Government 
agency, or other organization, previously covered by an importer 
identificatign number, must file another Customs Form 5106.
    (f) ``Freezing'' importer identification information. Those 
importers identifying Customs transactions through the procedure 
specified in paragraph (d) of this section and desiring to ensure that 
they receive such Customs transaction notifications as may be issued may 
request Customs to ``freeze'' the name and address information, 
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/address changes to the 
Importer's Record Number (IRN) identification information, and 
specifying the IRNs and suffixes to be frozen and the mailing address 
and/or physical location address of the company where Customs 
notifications are to be directed. The request must be made in a separate 
writing on letterhead paper signed by the importer 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 Service, 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]



Sec. 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), Tariff Act of 1930, as amended (19 U.S.C. 1485(d)), and Sec. 
141.20 of this chapter; and
    (b) A bond on Customs Form 301 in accordance with Sec. 141.20 of 
this chapter.

[T.D. 99-75, 64 FR 56439, Oct. 20, 1999]



Sec. 24.12  Customs fees; charges for storage.

    (a) The following schedule of fees prescribed 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]

[[Page 435]]

    (2) No fee will be charged for furnishing an official certificate if 
the request 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 official 
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 revised 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 merchandise. 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 working 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 working days following the day of 
issuance to the importer of oral or written notice 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 examination 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 storage charges. In computing the 2 
working days, and any authorized extension, (1) the day on which the 
permit to release 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) National holidays, shall be excluded.
    (d) Pursuant to the progressive clearance procedures set forth in 
Sec. 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 
international passengers who are arriving at their port of arrival and 
have not yet cleared Customs, a progressive clearance fee of $2.00 per 
domestic (stopover) passenger reinspection in the U.S. will be charged 
by Customs to the affected airlines to offset the additional 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 
overtime basis if the cost of performing such reinspection is reimbursed 
to Customs in accordance with 19 U.S.C. 1451. The fee will not apply to 
the reinspection of non-revenue producing passengers, including but not 
limited to, employees of the carrier and their dependents, deadhead 
crew, employees of other carriers who may be assessed a service charge 
by the transporting carrier, and other persons to whom the carrier is 
authorized to provide free transportation pursuant to 14 CFR part 233. 
The airline industry will be notified at least 90 days in advance of the 
date of any change in the amount of the fee necessitated by either an 
increase 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 citations affecting Sec. 
24.12, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 24.13  Car, compartment, and package seals; kind, procurement.

    (a) Customs seals accepted pursuant to Sec. 24.13a of this chapter 
shall be used in sealing openings, packages, conveyances, or articles 
requiring the security 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

[[Page 436]]

seals used to seal containers of commercial traveler's samples 
transiting the United States as provided by Sec. 123.52 of this chapter 
shall be stamped ``Canada-United States Customs.'' [U.S. Transit], and 
uncolored seals used to seal containers of commercial traveler's samples 
transiting the United States as provided by Sec. 123.52 of this chapter 
shall be stamped ``Canada-United States Customs.'' Blue in-transit seals 
used to seal merchandise transiting foreign territory or waters between 
ports in the United States as provided in Sec. 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 containers of commercial 
traveler's samples transiting Canada between U.S. ports as provided in 
Sec. Sec. 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. Customs.'' 
All seals (except uncolored in-transit seals on containers of commercial 
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 required, with a serial 
number.
    (c) Purchase of seals. Bonded carriers of merchandise, commerical 
associations representing the foregoing or comparable organizations 
approved by the port director under paragraph (f) of this section, a 
foreign trade zone operator and bonded warehouse proprietors may 
purchase quantity supplies of in-bond and in-transit seals from 
manufacturers approved under the provisions of Sec. 24.13a. The order 
shall be prepared 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 airline 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 emergency 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-Excise Inspection, Ottowa, Canada, for approval and forwarding 
to the manufacturer. 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 indicated 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 shipment.
    (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 customs bonded carrier, a nonbonded carrier 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 
security red in-bond seals, the carrier's commercial association or 
comparable representative approved by the port director. In-transit 
seals may be purchased by a bonded or other carrier of merchandise or, 
in the case of blue in-transit seals, by the carrier's commercial 
association or comparable representative approved by the port director. 
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

[[Page 437]]

and in-transit seals sold by port directors shall be charged for at the 
rate of 10 cents per seal, except for high security red in-bond seals 
which shall be charged for at the current manufacturer's list price for 
the quantity purchased.

[28 FR 14808, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
24.13, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 24.13a  Car, compartment, and package 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 readily and identified by unique 
marks (such as a logotype) and numbers;
    (4) Not permit removal or undoing without breaking, or tampering 
without 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 legible.
    (2) Each eyelet in a seal shall be of a size corresponding to that 
of the fastening 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 sufficiently 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 selected 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 otherwise showing obvious damage.
    (3) The material used shall be selected 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 appropriate, shall be 
marked to show that it is a U.S. Customs seal by application 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 legibly 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 qualification of a specific seal, or to an entire 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 
acceptance will be done by the manufacturer or by a private laboratory, 
and not by Customs. However, Customs reserves the right to test, or to 
have tested, seals that have been accepted by Customs.
    (g) Records. The manufacturer's attestation 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 Assistant 
Commissioner, Field Operations, 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]



Sec. 24.14  Salable Customs forms.

    (a) Customs forms for sale to the general public shall be designated 
by the

[[Page 438]]

Commissioner of Customs, or his delegate. Customs forms which are 
designated as salable shall meet the following conditions: (1) The form 
is distributed to private parties for use in completing customs 
transactions; (2) the quantity used nationwide annually is sufficient to 
justify the administrative costs involved in selling the form and 
accounting for the collections involved therein, or the form is 
primarily for the use of a special group; (3) distribution 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, regular commercial importers, etc.) 
rather than to or for the use of individuals or others (tourists, 
churches, schools, occasional importers, etc.) for noncommercial 
purposes.
    (b) The price of each salable Customs form shall be established by 
the Commissioner of Customs, or his delegate, and shall be adjusted 
periodically as the varying costs of printing and distribution require. 
A list of salable customs forms showing the price at which each is sold 
shall be prominently posted in each customhouse in a location accessible 
to the general public.
    (c) Customs forms for sale to the general public, except unusually 
large or otherwise unsuitable forms, shall normally 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 impressed 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]



Sec. 24.16  Overtime services; overtime compensation and premium pay for Customs Officers; rate of compensation.

    (a) General. Customs services for which overtime compensation is 
provided for by section 5 of the Act of February 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 overtime compensation, unless the 
compensation 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). Reimbursements of overtime compensation shall be collected 
by the port director from the applicants for the services. Customs 
Officers entitled to overtime compensation and premium pay, pursuant to 
the provisions of the Customs 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 provision 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, Subchapter D of the Omnibus Budget 
Reconciliation 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 one hour 
after the end of the officer's regularly-scheduled tour of duty and ends 
at least one hour before the beginning of the following regularly-
scheduled assignment and requires the officer to return to a place of 
work.
    (5) ``Commute compensation'' means the compensation which a Customs 
Officer is entitled to receive, in excess of the officer's base pay, for 
returning to work, under certain conditions, to perform an overtime work 
assignment. Commute compensation, within the limits prescribed by the 
Act, shall be

[[Page 439]]

treated as overtime compensation, and is includable for Federal 
retirement benefit purposes.
    (6) Continuous assignment means the grouping of multiple overtime 
assignments, performed by the same Customs Officer(s), which are 
separated by periods of non-work, into a single unit for computation of 
pay purposes.
    (7) Customs Officer means only those individuals assigned to 
position descriptions entitled ``Customs Inspector,'' ``Supervisory 
Customs Inspector,'' ``Canine Enforcement Officer,'' ``Supervisory 
Canine Enforcement Officer,'' ``Customs and Border Protection Officer,'' 
``Supervisory Customs and Border Protection Officer,'' ``Customs and 
Border Protection Agriculture Specialist,'' or ``Supervisory Customs and 
Border Protection Agriculture Specialist.''
    (8) Fiscal year pay cap refers to the statutory maximum, in effect 
for the year involved, in overtime and premium pay a Customs Officer 
shall receive in that fiscal year. This aggregate limit may be waived by 
the Commissioner of Customs or his/her designee in individual cases in 
order to prevent excessive costs or to meet emergency requirements of 
the Customs Service.
    (9) Holiday means any day designated as a holiday by a Federal 
statute or declared 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 context 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 
Customs 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 compensation which a Customs Officer is 
entitled to receive, in excess of the officer's base pay, for performing 
officially-assigned work in excess of the 40 hours of the officer's 
regularly-scheduled administrative workweek or in excess of 8 hours in a 
day, which may include commute compensation as defined at paragraph 
(b)(5) of this section. Overtime pay, within the limits prescribed by 
the Act, is includable for Federal retirement benefit purposes.
    (14) Premium pay differential means the compensation which a Customs 
Officer 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 employee, the 40 hour period within an administrative workweek 
within which the employee is regularly scheduled to work, exclusive of 
any overtime; for a part-time employee, it means the officially 
prescribed days and hours within an administrative workweek during which 
the employee is regularly scheduled 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 Officers at night or on a Sunday or holiday, Customs Form 
3171, supported by the required cash deposit or bond, shall be filed in 
the office of the port director before the assignment of such officers 
for reimbursable overtime services. The cash deposit to secure 
reimbursement shall be fixed by the port director or authorized 
representative in an amount sufficient to pay the maximum probable 
compensation and expenses 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 reimbursement shall be 
on Customs Form 301, containing the appropriate bond conditions set 
forth in subpart G, part 113 of this chapter (see Sec. Sec. 113.62, 
113.63, 113.64 and 113.73), and in an amount to be fixed by the port 
director, unless another 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 Sec. Sec. 113.62, 113.63, 113.64 and 113.73), to secure 
the payment of overtime services rendered private aircraft and private 
vessels shall be taken without surety or cash deposit in lieu of

[[Page 440]]

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 expected arrival to receive an application for night, 
Sunday, or holiday services in connection with the arrival of such 
vessel or aircraft, together with the required 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 properly 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___________________________________________________________
    I hereby request overtime services on ----------------, 19----;, at 
---- a.m., p.m., in connection with the entry of my aircraft (vessel).
________________________________________________________________________

                   (Pilot, Owner, or Person in Charge)

    (3) An application on Customs Form 3171 for overtime services of 
Customs Officers, when supported by the required 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 Officer will be notified timely during official hours 
in advance of the services requested as to the exact times that the 
services will be needed.
    (4) Inspectional services will be provided to owners or operators of 
aircraft without charge for overtime on Sundays and holidays between the 
hours of 8:00 a.m. and 5:00 p.m. Applications for inspectional services 
for aircraft during 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 establishment of regularly-
scheduled administrative tours of duty and assignments of Customs 
Officers to overtime work under this section shall be made in accordance 
with the following priorities, 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, including, but not limited to, what hours should be covered 
by a tour of duty or whether an assignment should be treated as a 
continuous assignment or subject to commute compensation, should be 
based on least cost considerations. However, base pay comparison of 
eligible employees shall not be used in the determination of staffing 
assignments.
    (3) Annuity integrity. For Customs Officers within 3 years of their 
statutory retirement eligibility, the amount of overtime that can be 
worked is limited to the average yearly number of overtime hours the 
Customs Officer worked during his/her career with the Customs Service. 
If the dollar value of the average yearly number of overtime hours 
worked by such Customs Officer exceeds 50 percent of the applicable 
statutory pay cap, then no overtime earning limitation based on this 
annuity integrity provision would apply. Waivers concerning this annuity 
integrity limitation may be granted by the Commissioner of Customs or 
the Commissioner's designee in individual cases in order to prevent 
excessive costs or to meet emergency requirements of Customs.
    (e) Overtime Pay. (1) A Customs Officer who is officially assigned 
to perform work in excess of the 40 hours in the officer's regularly-
scheduled administrative workweek or in excess of 8 hours in a day shall 
be compensated for such overtime work performed at 2 times the hourly 
rate of the officer's base pay, including any locality pay, but not 
including any premium pay differentials 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 smallest fraction of an hour used for paying overtime under this 
subpart.

[[Page 441]]

    (ii) Absence during overtime. Except as expressly authorized by 
statute, regulation, or court order (i.e., military leave, court leave, 
continuation of pay under the workers compensation law, and back pay 
awards), a Customs Officer shall be paid for overtime work only when the 
officer reports as assigned.
    (f) Special provisions relating to overtime work on a callback 
basis--(1) Minimum 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 assignment. 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 
compensated 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 administrative workweek or in excess of 8 hours in a day;
    (ii) Begins at least 1 hour after the end of any previous regularly-
scheduled 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 
regularly-scheduled work assignment; and,
    (v) Commences less than 16 hours after the officer's last regularly-
scheduled work assignment. The 16 hours shall be calculated from the end 
of the Customs Officer's last regularly-scheduled work assignment.
    (3) Commute compensation--Amount. Commute compensation under this 
section 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 eligible commute regardless of 
the actual commute time. However, an unpaid meal period shall not be 
considered a break in service for purposes of commute compensation.
    (4) Maximum Compensation for Multiple Assignments. If a Customs 
Officer is assigned to perform more than one overtime 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 compensation 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 assignments were treated as one continuous 
callback assignment.
    (g) Premium pay differentials. Premium 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 
differentials for any one given period of work. The order of precedence 
for the payment of premium pay differentials is holiday, Sunday, and 
night work.
    (1) Holiday differential. A Customs Officer who performs any 
regularly-scheduled work on a 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 100 percent of that base 
rate. Holiday differential premium pay will be paid only for time 
worked. Intermittent employees are not entitled to holiday 
differentials.
    (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 Sundays. 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

[[Page 442]]

on that date, and Customs Officers who perform regularly-scheduled, non-
overtime, 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 locations 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 differential. When Inauguration Day falls on Sunday, 
the next succeeding day selected for the public observance of the 
inauguration of the President is the legal public holiday.
    (iii) If a legal holiday falls on a Customs 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 Inauguration 
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 receive 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 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 the Wednesday before a Thursday holiday and 
ending at 4 a.m. on Thursday 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 management 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 differential (up to 
8 hours) for work performed during the entire period of the designated 
holiday shift. The Customs Officer shall not receive holiday 
differential 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 differential as appropriate.
    (v) Customs Officers who are regularly 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 differential they would have 
received had the day not been designated as a holiday. To receive 
holiday pay under this paragraph, the Customs Officer must be in a pay 
status (at work or on paid leave), either the last work day before the 
holiday 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 
differential (Sunday or night) for the remaining portion of the shift 
such officer 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 Officer 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 performed on 
a Sunday. A Customs Officer whose regularly-scheduled work occurs in 
part on a Sunday, that is not a Federal holiday, and in part on the 
preceding or following day, will receive the Sunday differential premium 
pay for the hours worked between 12:01 a.m. and 12 Midnight on Sunday. 
Intermittent employees are not entitled to Sunday 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 premium pay differential, as specified below, but 
shall not receive such night

[[Page 443]]

differential for work performed during overtime assignments. When all or 
the majority of the hours of a Customs Officer's regularly-scheduled 
work occur between 3 p.m. and 8 a.m., the officer shall receive a night 
differential premium for all the hours worked during that assignment. 
Intermittent employees are not entitled to night differentials.
    (i) 3 p.m. to Midnight. If more than half of the hours of a Customs 
Officer's regularly-scheduled shift occur between the hours of 3 p.m. 
and 12 Midnight, the officer 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 all the hours worked.
    (ii) 11 p.m. to 8 a.m. If more than half of the hours of a Customs 
Officer's regularly-scheduled shift occur between the hours of 11 p.m. 
and 8 a.m., the officer 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 officer 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 Differential Periods. A Customs 
Officer shall only be paid one night differential rate per regularly-
scheduled shift, except as provided for in paragraph (iii) above. A 
Customs Officer whose regularly-scheduled work occurs during two 
separate differential periods shall receive 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 during 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 Sunday 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 Commissioner of Customs or the Commissioner's designee 
may waive this limitation 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 performed, which 
includes overtime awards during military leave or court leave, 
continuation of pay under workers compensation law, and awards made in 
accordance with back pay settlements, shall not be applied to any 
applicable pay cap calculations.

[28 FR 14808, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
24.16, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 24.17  Reimbursable services of CBP employees.

    (a) Amounts of compensation and expenses chargeable to parties-in-
interest in connection with services rendered by CBP employees during 
regular hours of duty or on Customs overtime assignments (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 
as repayments to the appropriation from which paid.
    (1) When a CBP employee is assigned on board a vessel or vehicle 
under authority 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.

[[Page 444]]

    (2) When a CBP employee is assigned on board a vessel under 
authority of section 458, Tariff Act of 1930, to supervise 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 marking to exempt articles from the duty provided for in 
such section, the importer of such merchandise 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.
    (4) When a CBP employee is assigned pursuant to Sec. 101.4 of this 
chapter to a Customs station or other place which is not a port of entry 
for service in connection 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 
employee from the time he leaves his official 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 private interest shall be 
charged only for the authorized travel and subsistence expenses incurred 
by such employee from the time he leaves his official station 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 Sec. 101.4(b) of this chapter). Where the amount 
chargeable is 50 cents or more, but less than $1, a minimum 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 travel 
and subsistence expenses of such employee from the time he leaves his 
official station until he returns thereto.
    (6) [Reserved]
    (7) When a CBP employee is assigned on any vessel or vehicle, under 
authority of section 456, Tariff Act of 1930, while proceeding from one 
port to another, the master or owner 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, 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 acting 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 
merchandise pursuant to section 557(c), Tariff Act of 1930, as amended, 
at a place where a CBP employee is not regularly 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 Sec. Sec. 
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 Sec. Sec. 11.13(c) and 11.17(b) of the regulations of 
this chapter or to supervise the exportation or destruction of any such 
merchandise, the compensation and expenses of such CBP employee shall be 
reimbursed to the Government by the party in interest.
    (11) When a CBP employee is assigned to supervise examination, 
sampling, weighing, repacking, segregation, or other operation on 
merchandise in accordance with Sec. Sec. 151.4, 151.5, 158.11, 158.14, 
and 158.42 of this chapter, the compensation and other expenses of

[[Page 445]]

such employee shall be reimbursed to the Government by the party-in-
interest except when a warehouse proprietor is liable therefor.
    (12) When a CBP employee is assigned to provide Customs services at 
an airport 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 expenses incurred 
in providing those Customs 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 required 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 interest 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 enumerated in this section for which 
expenses are required to be reimbursed shall include actual 
transportation expenses of a CBP employee within the port limits and any 
authorized travel expenses of a CBP employee, including per diem, when 
the services are performed outside the port limits irrespective of 
whether the services are performed during a regular tour of duty or 
during a Customs overtime assignment. 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 assigned to a regular tour 
of duty. No charge shall be made for transportation 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 reimbursable 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 actually payable 
under 5 U.S.C. 5545. The rate per hour equal to 137 percent of the 
hourly rate of regular pay is computed as follows:

------------------------------------------------------------------------
                                                        Hours     Hours
------------------------------------------------------------------------
Gross number of working hours in 52 40-hour weeks...  ........     2,080
Less:
  9 Legal public holidays--New Years Day,                   72  ........
   Washington's Birthday, Memorial Day, Independence
   Day, Labor Day, Columbus Day, Teterans Day,
   Thanksgiving Day, and Christmas Day..............
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 contributions for              239
 employee uniform allowance, retirement, life insurance and
 health benefits computed at 11\1/2\ percent of annual rate of
 pay of employee..............................................
Equivalent annual working hour charge to Customs appropriation     2,319
                                                               =========
Ratio of annual number of working hours charged to Customs
 appropriation to net number of annual working hours 2,319/
 1,696=137 percent.
------------------------------------------------------------------------

    (1) The charge to be made for the reimbursable 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-employed 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 employee to provide for 
reimbursement of the Government's contribution under the Federal 
Insurance Contributions 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 
between 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

[[Page 446]]

as 1 hour when the services are performed during the regularly scheduled 
tour of duty of the officer or between the hours of 8 a.m. and 5 p.m. on 
weekdays when the officer has no regularly scheduled tour of duty. In no 
case shall the charge be less than $1.
    (2) The necessary transportation expenses and any authorized per 
diem expenses of a CBP employee assigned to perform reimbursable 
services at a location at which he is not regularly assigned shall be 
reimbursed by the responsible party.
    (3) When a CBP employee is regularly assigned to duty at more than 
one location, the charge for his compensation and transportation 
expenses in going from one location to another shall be equitably 
apportioned among the parties concerned. However, no charge shall be 
made for transportation expenses when a CBP employee is reporting 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 applicable laws and regulations, the port director shall report the 
facts to the Accounting Services--Accounts Receivable, which shall take 
appropriate action to collect the charges.
    (e) The reimbursable charge for customs overtime compensation shall 
be computed in accordance with Sec. 24.16.
    (f) Medicare Compensation Costs. In addition to other expenses and 
compensation chargeable to parties-in-interest as set forth in this 
section, such persons shall also be required to reimburse Customs in the 
amount of 1.35 percent of the reimbursable compensation expenses 
incurred. Such payment will reimburse Customs for its share of Medicare 
costs.

[28 FR 14808, Dec. 31, 1963]

    Editorial Note: For Federal Register citations affecting Sec. 
24.17, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 24.18  Preclearance of air travelers in a foreign country; reimbursable cost.

    (a) Preclearance is the tentative examination and inspection of air 
travelers and their baggage at foreign places where U.S. Customs 
personnel are stationed for that purpose.
    (b) At the request of an airline, travelers 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 examining 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 travelers at the place of departure. 
Such excess cost shall include all items attributable to the 
preclearance operation. This does not include the salary of personnel 
regularly assigned to a preclearance station other than approved salary 
differentials related to the foreign assignment and the salary of relief 
details made necessary by reason 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 transportation costs; and
    (6) Equipment, supplies and administrative costs including costs of 
supervising the preclearance installation.
    (d) The reimbursable excess cost described in paragraph (c) of this 
section shall be determined for each preclearance installation. On the 
basis of the excess cost figure for each installation, the excess cost 
of providing preclearance service for a biweekly pay period shall be 
determined. The initial schedule of biweekly excess cost will be based 
on the actual excess cost for fiscal year 1969. Thereafter, a quarterly 
(ending with the pay period closely corresponding to June 30, September 
30, December 31, and March 31) cost analysis will be conducted and the 
schedule

[[Page 447]]

of biweekly excess costs will be adjusted so that the current biweekly 
excess cost schedule will reflect the actual excess costs of the 
previous quarter. Such schedules of biweekly costs for each installation 
shall be published in the Federal Register. The biweekly excess cost in 
effect at an installation at the time the charge is made shall be used 
in calculating the prorated charge for preclearance service for each 
airline in accordance with paragraph (e) of this section.
    (e) The charge to each airline for preclearance service shall be its 
prorated 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 clearances serviced bears to the total number of clearances.
    (3) Eighty-five percent shall be distributed 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 overtime 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 governed by Sec. 24.16 
and are in no way affected 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]



Sec. 24.21  Administrative overhead charges.

    (a) Reimbursable and overtime 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 
expenses of Customs officers performing reimbursable and overtime 
services for the benefit of such parties under Sec. Sec. 24.17 and 
24.16, respectively, 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 expenses of Customs officers 
performing various services for the benefit of such parties. 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. The fees, whether billed or not, include, but are not limited 
to:
    (1) Navigation fees for vessel services in Sec. 4.98;
    (2) [Reserved]
    (3) Fee to establish container stations in Sec. 19.40;
    (4) Fee for furnishing the names and addresses of importers of 
merchandise appearing to infringe a registered patent in Sec. 
24.12(a)(3);
    (5) Charge for storing merchandise in a Government-owned or rented 
building in Sec. 24.12(c);
    (6) Charge for the sale of in-bond and in-transit seals in Sec. 
24.13(f);
    (7) Charge for the sale of Customs forms in Sec. 24.14(b);
    (8) Charge for preclearing aircraft in a foreign country in Sec. 
24.18;
    (9) Fee for issuing a customhouse broker's license in Sec. 
111.12(a);
    (10) Fee for designating a carrier or freight forwarder as a carrier 
of Customs bonded merchandise in Sec. 112.12(a);
    (11) Fee for issuing a Customs bonded cartman's license in Sec. 
112.22(a)(2);
    (12) Fee for recording of trademarks in Sec. 133.3;
    (13) Fee for renewing, or recording a change in name of owner, or of 
ownership of, a trademark in Sec. Sec. 133.5(d), 133.6(b), 133.7(a)(3);
    (14) Fee for recording of trade name in Sec. 133.13(b);
    (15) Fee for recording a copyright in Sec. 133.33(b); and
    (16) Fee for renewing, or recording a change in name of owner, or of 
ownership of, a copyright in Sec. Sec. 133.35(b)(2), 133.36(b), 
133.37(a)(3);
    (c) No administrative overhead charge. No additional charge for 
administrative overhead costs discussed in paragraphs (a) and (b) of 
this section shall be collected if (1) imposition of such charge is 
precluded by law; (2) there is

[[Page 448]]

a formal accounting system for determining administrative overhead for a 
service, in which case that system shall be used for determining the 
cost of the charge for administrative overhead; or (3) the charge for 
administrative overhead for a service is specifically 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]



Sec. 24.22  Fees for certain services.

    (a) Definitions. For purposes of this section:
    (1) The term vessel includes every description of watercraft or 
other contrivance 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 
transportation 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 section, a processing fee in the amount of $437 shall 
be tendered by the master, licensed deck officer, or purser upon arrival 
of any commercial vessel of 100 net tons or more which is required to 
enter under Sec. 4.3 of this chapter or upon arrival of any U.S.-flag 
vessel of 100 net tons or more proceeding coastwise under Sec. 4.85 of 
this chapter. The fee shall be collected for each arrival regardless of 
the number of arrivals taking place in the course of a single voyage.
    (ii) Fee limitation. No fee or portion thereof shall be collected 
under paragraph (b)(1)(i) of this section for the arrival 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 arrival 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 paragraph (b)(2)(i) of this section for the arrival 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 payment is submitted to 
Customs.
    (3) Prepayment. The vessel operator, owner, or agent may at any time 
prepay the maximum calendar year amount specified in paragraph 
(b)(1)(ii) or (b)(2)(ii) of this section, or any remaining portion of 
that amount if individual 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 maximum 
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.
    (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

[[Page 449]]

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 tugboat;
    (iii) Any government vessel for which no report of arrival or entry 
is required as provided in Sec. 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 longitude.
    (c) Fee for arrival of a commercial truck--(1) Fee. The driver or 
other person 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 transported 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 merchandise or for the transportation of non-commercial 
merchandise on a for-hire basis.
    (2) Fee limitation. No fee shall be collected 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 vehicle may at any time prepay a fee of $100 to cover all 
arrivals of that vehicle during a calendar year or any remaining portion 
of a calendar year. Prepayment must be made in accordance with the 
procedures set forth in this paragraph 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 Customs and Border Protection, Decal Program 
Administrator, P.O. Box 382030, Pittsburgh, PA 15250-8030. 
Alternatively, the decal request and prepayment by credit card may be 
made via the Internet through the ``Traveler Information'' 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 maintain 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 vehicle windshield or on the left 
wing window, and otherwise in accordance with the accompanying 
instructions, to show that the vehicle is exempt from payment of the fee 
for individual arrivals 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 loaded 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 payment 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 collected under paragraph (d)(1) 
of this section for the arrival of a railroad car during any calendar 
year once a prepayment of $100 has been made as provided in paragraph 
(d)(3) of this section, 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 railroad company may at any 
time prepay a fee of $100 to cover all arrivals of a 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 additional information required under 
paragraph (i) of this section, must be

[[Page 450]]

mailed to: Customs 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).
    (4) Statement filing and payment procedures. (i) The Association of 
American Railroads (AAR), the National Railroad Passenger Corporation 
(AMTRAK), and any railroad company preferring to act individually, shall 
file monthly statements 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 subject to the arrival fee during 
the relevant 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 
period.
    (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 prepared by the AAR on behalf of 
individual railroad companies shall be filed within 60 days after the 
end of the applicable calendar month, and each railroad 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 company 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 
accounted for by an explanation in, and adjustment of, the next payment 
to Customs. Payment must be made in accordance with this paragraph and 
paragraph (i) of this section and must be sent by mail to the following 
address: Customs 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).
    (5) Maintenance of records. The AAR, AMTRAK, and each railroad 
company preparing and filing its own statements shall maintain all 
documentation necessary for Customs to verify the accuracy of the 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. 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 
officer who is able to verify any statements or records required to be 
filed or maintained under this section, and shall promptly notify 
Customs of any changes in identifying information previously 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, including any such railroad car which is set out for 
repairs outside the United States and then returned to on-line service 
without having undergone loading 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 enclosing, supporting or protecting commercial freight; and
    (iii) Any railroad car which, at the time of arrival, is being 
transported by any vessel other than a ferry.
    (e) Fee for arrival of a private vessel or private aircraft--(1) 
Fee. Except as provided in paragraph (e)(3) of this section, 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 tender 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

[[Page 451]]

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 
permanently affixed by adhesive to the vessel or aircraft, in accordance 
with accompanying 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 remain payable notwithstanding payment of the fee 
specified in this paragraph.
    (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. Prepayment 
must be made in accordance with the procedures set forth in this 
paragraph and paragraph (i) of this section. Prepayment may be sent by 
mail, along with a properly completed Customs Form 339, Annual User Fee 
Decal Request, to the following address: Customs and Border Protection, 
Decal Program Administrator, P.O. Box 382030, Pittsburgh, PA 15250-8030. 
Alternatively, the decal request and prepayment by credit card may be 
made via the Internet through the ``Traveler Information'' 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 maintain user fee 
decal inventories.
    (3) Exceptions. The following are exempt 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 
Sec. 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 documentation shall be 
assessed a processing fee in the amount of $5.50. When the merchandise 
is delivered by the Postal Service, the fee shall be shown as a separate 
item on the entry and collected at the time of delivery of the 
merchandise 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 aircraft--(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 connection with the arrival of each 
passenger aboard a commercial vessel or commercial aircraft from a place 
outside the United States, other than Canada, Mexico, one of the 
territories and possessions 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 possessions 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 islands.
    (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 
journey of the arriving passenger originates in a place outside the 
United States or in the United States.
    (iii) For purposes of this paragraph (g), the term ``territories and 
possessions of the United States'' includes American Samoa, Guam, the 
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands, and 
the term ``adjacent islands'' includes Saint Pierre, Miquelon, Cuba, the 
Dominican Republic, Haiti, Bermuda, the Bahamas, Barbados, Jamaica, the 
Windward and Leeward Islands, Trinidad, Martinique,

[[Page 452]]

and other British, French, and Netherlands territory or possessions in 
or bordering 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 document for transportation into the 
customs territory of the United States.
    (v) For purposes of this paragraph (g), the term ``passenger'' means 
a natural person for whom transportation is provided and includes an 
infant whether a separate ticket or travel document is issued for the 
infant or the infant occupies 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 August 1, 1999, and operates south of 27 degrees latitude and east 
of 89 degrees longitude.
    (vii) In the case of a commercial vessel making a single voyage 
involving two or more United States ports, the applicable fee prescribed 
under paragraph (g)(1)(i) or (g)(1)(ii) of this section 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 Location'' and means Canada, Mexico, 
any territories and possessions of the United States, and any adjacent 
islands;
    (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 presented in the chart preclude 
application of the fee.

----------------------------------------------------------------------------------------------------------------
                                     Fee status for arrival from SL      Fee status for arrival from other than
 Place where journey originates  --------------------------------------                    SL
        (see (g)(1)(iv))                                               -----------------------------------------
                                      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 arriving 
passengers:
    (i) Crew members and persons directly connected with the operation, 
navigation, ownership or business of the vessel or aircraft, provided 
that the crew member or other person is traveling 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, including any agency or political subdivision of the 
United States or foreign government, so long as the aircraft is not 
carrying persons or merchandise for commercial purposes. Passengers on 
commercial aircraft under contract to the U.S. Department of Defense are 
exempted if they have been precleared abroad under the joint DOD/CBP 
Military 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

[[Page 453]]

and for whom CBP inspectional services are not provided;
    (vi) Persons departing from and returning 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 transportation into the customs territory of the United 
States is responsible for collecting from the passenger the applicable 
fee specified in paragraph (g)(1) of this section, including the fee 
applicable 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 without 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 document, 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 foreign country, the fee must be 
collected by the departing carrier upon departure 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 collection must issue a 
receipt to the passenger. U.S.-based tour wholesalers who contract for 
passenger space and issue non-carrier tickets or travel documents must 
collect the fee in the same manner as a carrier.
    (ii) Collection of the fee under paragraph (g)(1)(i) of this section 
will include the following circumstances:
    (A) When a through ticket or travel document is issued covering (or 
a receipt or other document issued for an infant traveling without a 
ticket or travel document indicates that the infant'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 infant traveling without a return 
ticket or travel document is issued) in connection with a journey which 
originates in the United States, includes a stop in a place other than 
Canada, Mexico, one of the territories and possessions of the United 
States, or an adjacent 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 customs territory of the 
United States from a place other than Canada, Mexico, one of the 
territories and possessions of the United States, or an adjacent island, 
is processed by CBP, and the journey does not originate in one of these 
specified places.
    (iii) Collection of the fee under paragraph (g)(1)(ii) of this 
section will include the following circumstances:
    (A) When a through ticket or travel document is issued covering (or 
a receipt or other document issued for an infant traveling without a 
ticket or travel document indicates that the infant'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 island;
    (B) When a return ticket or travel document is issued (or a receipt 
or other document that indicates an infant traveling without a return 
ticket or travel document is issued) in connection with a journey which 
originates in the United States and the return arrival to the United 
States is from Canada, Mexico, one of the territories 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 customs territory of the 
United States from Canada, Mexico, one of the territories and 
possessions of the United

[[Page 454]]

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 paragraph (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 paragraph and paragraph (i) of this 
section, by the party required to collect the fee under paragraph 
(g)(4)(1) of this section. Each quarterly fee payment must be sent to 
the following address: Customs 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 adjustment of, the next due 
quarterly payment to CBP. The quarterly payment must be accompanied by a 
statement that includes the following information:
    (i) The name and address of the party remitting payment;
    (ii) The taxpayer identification number 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 
collected, 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 without a ticket or travel document for which fees 
were required to be collected, the total amount of fees collected and 
remitted to CBP, and a separate breakdown of the foregoing information 
relative to the $5.50 vessel passenger 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 
responsible 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 voyage occurred.
    (7) Maintenance of records. Each air or sea carrier, travel agent, 
tour wholesaler, or other party affected by this paragraph shall 
maintain all such documentation 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 affected 
party shall provide to Customs the name, address, and telephone number 
of a responsible officer who is able to verify any statements or records 
required to be filed or maintained under this section, and shall 
promptly notify Customs of any changes in the identifying information 
previously submitted.
    (8) Limitation on charges. Except in the case of costs reimbursed 
under Sec. 24.17(a)(14) of this part, Customs services provided to 
passengers arriving in the United States on scheduled airline flights 
(as defined in Sec. 122.1(k) of this chapter and operating within the 
requirements 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 paragraph (g)(1) of this section.
    (h) Annual customs broker permit fee. Customs brokers are subject to 
an annual fee for each district permit and for a national permit held by 
an individual, partnership, association, or corporation, as provided in 
Sec. 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 license is delivered.
    (i) Information submission and fee remittance procedures. In 
addition to any information specified elsewhere in this

[[Page 455]]

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 provisions of 
Sec. 24.1 of this part. Authorization for making payments 
electronically can be obtained by writing to the National Finance 
Center, Collections Section, 6026 Lakeside Blvd., Indianapolis, IN 
46278. Where payment is made at a CBP port, credit cards will be 
accepted 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 annotated with the appropriate class 
code. The applicable class codes and payment locations for each fee are 
as follows:
    (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 location: 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 collected 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 location: 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 individual arrival (under the monthly payment 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 statement filing), see paragraph (d)(4)(ii) of this section; 
for prepayment, see paragraph (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. Payment location: port of arrival for each individual 
arrival (fee to be collected by CBP at the time of arrival) or 
prepayment in accordance with paragraph (e)(2) of this section;
    (6) Fee under paragraph (f) of this section (dutiable mail): 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 
commercial vessel and commercial aircraft passengers): class code 495. 
Payment location: see paragraph (g)(5) of this section;
    (8) Fee under paragraph (g)(1)(ii) of this section (the $1.93 fee 
for commercial 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 national permits, 
class code 997. Payment location: see paragraph (h) of this section.
    (j) Treatment of fees as Customs duty--(1) Administration and 
enforcement. Unless otherwise specifically provided in this chapter, all 
administrative and enforcement provisions under the Customs 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 assessed in the same 
manner with respect to any fee required to be paid under this section.

[[Page 456]]

    (2) Jurisdiction. For purposes of determining 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]



Sec. 24.23  Fees for processing merchandise.

    (a) Definitions. The following definitions apply for the purposes of 
this section:
    (1) Centralized hub facility. A centralized hub facility is a 
separate, unique, single purpose facility normally operating outside of 
CBP operating hours approved by the port director for entry filing, 
examination, and release of express consignment shipments, as provided 
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 reference 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 
Interface (ABI) of the CBP Automated Commercial System (ACS) at any port 
within the United States;
    (ii) Any formal or informal entry or release filed at a port where 
cargo selectivity 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 selectivity is fully implemented if filed by an importer or broker 
who is operational for ABI entry summary.
    (5) Small airport or other facility. A small airport or other 
facility is any airport 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 section, 
merchandise that is formally entered or released is subject to the 
payment 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 merchandise as determined under 19 U.S.C. 
1401a. In the case of an express consignment 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 individual air waybill or bill of 
lading fee and, if applicable, to the 0.21 percent ad valorem fee in 
accordance with paragraph (b)(4) of this section.
    (B) Maximum and minimum fees. Subject 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 
exceed $485 and shall not be less than $25.
    (ii) Surcharge for manual entry or release. In the case of any 
formal manual entry or release of merchandise, a surcharge 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 section, 
merchandise that is informally entered or released is subject to the 
payment to CBP of a fee of:

[[Page 457]]

    (i) $2 if the entry or release is automated and not prepared by CBP 
personnel;
    (ii) $6 if the entry or release is manual and not prepared by CBP 
personnel; or
    (iii) $9 if the entry or release, whether automated or manual, is 
prepared by CBP personnel.
    (3) Small airport or other facility. With respect to the processing 
of letters, documents, records, shipments, merchandise, or any other 
item that is valued at $2,000 or less, or any higher amount prescribed 
for purposes of informal entry in Sec. 143.21 of this chapter, a small 
airport or other facility must pay to CBP an amount equal to the 
reimbursement (including overtime) which the facility is required to 
make during the fiscal year under Sec. 24.17.
    (4) Express consignment carrier and centralized hub facilities. Each 
carrier or operator using an express consignment carrier facility or a 
centralized hub facility must pay to CBP a fee in the amount of $1.00 
per individual air waybill or individual bill of lading for the 
processing of airway bills for shipments 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, letter, package, envelope, record, 
document, or shipment. An individual air waybill is the bill at the 
lowest level, and is not a master bill or other consolidated document. 
An individual air waybill or bill of lading is a bill representing an 
individual shipment that has its own unique bill number and tracking 
number, where the shipment is assigned to a single ultimate consignee, 
and no lower bill unit exists. Payment must be made to CBP on a 
quarterly basis and must cover the individual fees for all subject 
transactions that occurred during a calendar quarter. The following 
additional requirements and conditions apply to each quarterly payment 
made under this section:
    (i) The quarterly payment must conform to the requirements of Sec. 
24.1, must be mailed to Customs and Border Protection, 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 quarter to which the 
payment relates.
    (ii) The following information must be included with the quarterly 
payment:
    (A) The identity of the calendar quarter 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 facilities, 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 lading covered by the payment, and a breakdown of that total for each 
facility covered by the payment according to the number covered by 
formal entry procedures, the number covered by informal entry procedures 
specified in Sec. Sec. 128.24(e) and 143.23(j) of this chapter, and the 
number covered by other informal entry procedures.
    (iii) Overpayments or underpayments may be accounted for by an 
explanation in, and adjustment of, the next due quarterly payment to 
CBP. In the case of an overpayment or underpayment that is not accounted 
for by an adjustment of the next due quarterly payment to CBP, the 
following procedures apply:
    (A) In the case of an overpayment, the carrier or operator may 
request a refund by writing to Customs and Border Protection, Revenue 
Division/Attention: 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 initially due to the date that 
payment to CBP is made.

[[Page 458]]

    (iv) The underpayment or failure of a carrier or operator using an 
express consignment carrier facility or a centralized hub facility to 
pay all applicable fees owed to CBP pursuant to paragraph (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 beneficiary 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 subheadings 9802.00.60 
and 9802.00.80.
    (3) The ad valorem, surcharge, and specific fees provided for under 
paragraphs (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, surcharge, and specific fees shall apply only to those 
goods which are not originating goods.
    (4) In the case of agricultural products of the U.S. that are 
processed and packed in a foreign trade zone, the ad valorem fee 
provided for under paragraph (b)(1)(i) of this section shall be applied 
only to the value of any material 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 section 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 
paragraphs (b)(1) and (b)(2)(i) of this section will not apply to goods 
that qualify as originating goods under Sec. 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 
paragraphs (b)(1) and (b)(2)(i) of this section will not apply to goods 
that qualify as originating goods under Sec. 202 of the United States-
Chile Free Trade Agreement Implementation Act (see also General Note 26, 
HTSUS) that are entered, or withdrawn from warehouse for consumption, on 
or after January 1, 2004.
    (8) The ad valorem fee, surcharge, and specific fees provided under 
paragraphs (b)(1) and (b)(2)(i) of this section will not apply to goods 
that qualify as originating goods under Sec. 202 of the United States-
Bahrain Free Trade Agreement Implementation Act (see

[[Page 459]]

also General Note 30, HTSUS) that are entered, or withdrawn from 
warehouse for consumption, on or after August 1, 2006.
    (d) Aggregation of ad valorem fee. (1) Notwithstanding any other 
provision of this section, in the case of entries of merchandise made 
under any temporary monthly entry program established by Customs before 
July 1, 1989, for the purpose of testing entry processing improvements, 
the ad valorem fee charged under paragraph (b)(1)(i) of this section for 
each day's importations 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 applying the ad valorem rate under 
paragraph (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 presentation 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. Unless otherwise specifically provided in this chapter, all 
administrative and enforcement provisions under the Customs 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 assessed in the same 
manner with respect to any fee required to be paid under this section.
    (2) Jurisdiction. For purposes of determining 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; 56 FR 25721, June 5, 1991, as 
amended by T.D. 94-1, 58 FR 69470, Dec. 30, 1993; T.D. 94-32, 59 FR 
15046, Mar. 31, 1994; T.D. 95-29, 60 FR 18348, Apr. 11, 1995; T.D. 97-
82, 62 FR 51770, Oct. 3, 1997; T.D. 99-1, 63 FR 71372, Dec. 28, 1998; 
T.D. 99-61, 64 FR 42031, Aug. 3, 1999; T.D. 00-81, 65 FR 68886, Nov. 15, 
2000; T.D. 02-14, 67 FR 15098, Mar. 29, 2002; CBP Dec. 05-07, 70 FR 
10884, Mar. 7, 2005; CBP Dec. 07-29, 72 FR 31723, June 8, 2007; CBP Dec. 
07-28, 72 FR 32003, June 11, 2007; CBP Dec. 07-81, 72 FR 58521, Oct. 16, 
2007]



Sec. 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 percent (.00125) of its 
value if the loading or unloading occurs at a port within the definition 
of this section, unless exempt under paragraph (c) of this section or 
one of the special rules in paragraph (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 construction, maintenance or operation. It does not 
include channels or harbors deauthorized by Federal law before 1985. A 
complete list of the ports subject 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 descriptions and
      Port code, port name and state                  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

[[Page 460]]

 
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..............  Includes Ventura, Port
 2709--Long Beach Harbor..................   Hueneme, Channel Islands
 2704--Los Angeles........................   Harbor, Santa Barbara,
 2713--Port Hueneme.......................   Marina Del Ray, Los Angeles
 2712--Ventura............................   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 *............  Includes all points inshore
 2813--Alameda............................   of the Golden Gate Bridge
 2830--Carquinez Strait...................   on the bays and the straits
 2815--Crockett...........................   and on the Napa, Sacramento
 2820--Martinez...........................   and San Joaquin Rivers, and
 2811--Oakland............................   on the deep water channels
 2821--Redwood City.......................   to Sacramento and Stockton.
 2812--Richmond...........................   Movements between points
 2816--Sacramento.........................   above Suisun Bay (Longitude
 2809--San Francisco......................   122 degrees West at Port
 2828--San Joaquin........................   Chicago) are intraport.
 2829--San Pablo Bay......................   Movements between points
 2827--Selby..............................   below Longitude 122 degrees
 2810--Stockton...........................   West and the Golden Bridge
 2831--Suisun Bay.........................   are all intraport. All
                                             other movements 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.
 
                 Delaware
 
Delaware River Ports, DE, NJ, PA *........  Includes all points on the
 1102--Chester, PA........................   Delaware River from Trenton
 1107--Camden, NJ.........................   to the sea at a line
 1113--Gloucester, NJ.....................   between Cape Henlopen and
 1118--Marcus Hook, PA....................   Cape May, all points on the
 1105--Paulsboro, NJ......................   lower four miles of the
 1101--Philadelphia, PA...................   Christina River, Delaware,
 1103--Wilmington, DE.....................   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 *.........  Includes all points on the
 5402--Alexandria, VA.....................   Potomac River (see
 5401--Washington, DC.....................   Chesapeake Bay Ports map)
                                             from a line between Point
                                             Lookout and the Little
                                             Wicomico River at
                                             Chesapeake Bay to and
                                             including 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.........................  For HMF purposes, also
 1819--Pensacola..........................   includes Carrabelle and
 1816--Port Canaveral.....................   Port St. Joe.
 5203--Port Everglades....................
Tampa Bay Ports *.........................  Includes Alafia River, Port
 1814--St Petersburg......................   Manatee, Port Sutton, Port
 1801--Tampa..............................   Tampa Weedon Island, and
                                             all other points on or
                                             approached using the Tampa
                                             Harbor Channel inshore of
                                             the Sunshine Skyway Bridge.
                                             Movements between these
                                             points are intraport.

[[Page 461]]

 
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..............  Includes Waukegan Harbor,
 3901--Chicago, IL........................   IL, Indiana Harbor (East
 3904--East Chicago, IN...................   Chicago, IN) Calumet
 3905--Gary, IN...........................   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..............  Includes Waukegan Harbor,
 3901--Chicago, IL........................   IL. Indiana Harbor (East
 3904--East Chicago, IN...................   Chicago, IN) Calumet
 3905--Gary, IN...........................   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     Includes all river points
 Vicinity *.                                 from River Mile 115 Above
 2004--Baton Rouge........................   Head of Passes (AHP) at the
 2010--Gramercy...........................   St. Charles Parish-
                                             Jefferson Parish line, to
                                             River Mile 233.9 AHP at
                                             Baton Rouge. Includes
                                             Destrehan, Good Hope, and
                                             St. Rose. Movements between
                                             these points are intraport.
Mississippi River Ports/New Orleans and     Includes all river points
 Vicinity *.                                 from River mile 115 Above
 2002--New Orleans........................   Head of Passes (AHP) to
 2005--Port Sulphur.......................   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.
 
                   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 *................  Includes all Maryland points
 1303--Baltimore..........................   on the Chesapeake Bay and
 1302--Cambridge..........................   its tributary waters except
 1301--Annapolis..........................   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 Chelsea and Mystic
                                             River and all points on the
                                             Weymouth Fore, and Town and
                                             Black Rivers, 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                 Includes Monroe, Detroit,
 3801--Detroit                               and the Detroit River, St.
 3802--Port Huron                            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.

[[Page 462]]

 
South Central Lake Superior Ports.........  Includes Ontonagon Harbor,
 3809--Marquette..........................   all points on the Harbor,
 3842--Presque Isle.......................   all points on the Keweenaw
                                             Waterway, Presque Isle
                                             Harbor and Marquette and
                                             Grand Marais. Movements
                                             between all Michigan ports
                                             on Lake Superior are
                                             intraport.
Eastern Lake Michigan Ports...............  Fee applies at Charlevoix,
 3815--Muskegon...........................   Frankfort, Portage Lake,
 3816--Grand Haven........................   Manatee, Ludington,
 3844--Ferrysburg.........................   Pentwater Harbor,
                                             Ferrysburg, White Lake
                                             Harbor, Muskegon, Grand
                                             Haven, and South Haven,
                                             Holland, and St. Joseph/
                                             Benton Harbor, MI. All
                                             movements between Eastern
                                             Lake Michigan ports are
                                             intraport.
Upper Lake Huron Ports....................  Includes all points on the
 3803--Sault Ste. Marie...................   St. Mary's River, the ports
 3804--Saginaw-Flint-Bay City.............   of Cheyboygan, Alpena, Bay
 3843--Alpena.............................   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 Saginaw River
                                             are intraport.
 
                 Minnesota
 
Duluth/Superior Area Ports................  Fee applies at Two Harbors
 3601--Duluth.............................   and Duluth, MN, and
 3602--Ashland............................   Superior, WI. Fee also
 3608--Superior...........................   applies at Ashland and Port
 3614--Silver Bay.........................   Wing, WI and Grand Marais,
                                             MN. Fee does not apply at
                                             Taconite, or Silver 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 *........  Includes all points on the
 1102--Chester, PA........................   Delaware River from Trenton
 1107--Camden, NJ.........................   to the sea at a line
 1113--Gloucester, NJ.....................   between Cape Henlopen and
 1118--Marcus Hook, PA....................   Cape May, all points on the
 1105--Paulsboro, NJ......................   lower four miles of the
 1101--Philadelphia, PA...................   Christina River, Delaware,
 1103--Wilmington, DE.....................   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. Highway
                                             13. Includes Absecon Inlet
                                             (Atlantic City) and Cold
                                             Spring Inlet. Movements
                                             between these points are
                                             intraport.
1003--Newark..............................  See New York Harbor.
1004--Perth Amboy.........................  See New York Harbor.
 
                 New York
 
New York Harbor, NY, NJ *.................  Includes all points in New
 1001--New York...........................   York and New Jersey with
 1003-Newark..............................   the Port of New York on the
 1004--Perth Amboy........................   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 Atlantic Ocean
                                             entrance. Movements within
                                             this area are intraport.
 
                   Ohio
 
Lake Erie Ports...........................  Includes Toledo, Sandusky,
 4108--Ashtabula..........................   Huron, Lorain, Cleveland,
 4101--Cleveland..........................   Fairport, Ashtabula,
 4109--Conneaut...........................   Conneaut and Erie.
 4106--Erie, PA...........................   Movements between these
 4111--Fairport...........................   points are intraport. Fee
 4117-Huron...............................   does not apply at
 4121--Lorain.............................   Marblehead.
 4105--Toledo-Sandusky....................
 

[[Page 463]]

 
                  Oregon
 
Columbia River Ports, OR, WA..............  Includes all points on the
 2901--Astoria, OR........................   Columbia River downstream
 2904--Portland, OR.......................   of Bonneville Dam, and all
 2909--Kalama, WA.........................   points on the Willamette
 2905--Longview, WA.......................   River downstream of River
 2908--Vancouver, WA......................   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 *........  Includes all points on the
 1102--Chester, PA........................   Delaware River from Trenton
 1107--Camden, NJ.........................   to the sea at a line
 1113--Gloucester, NJ.....................   between Cape Henlopen and
 1118--Marcus Hook, PA....................   Cape May, all points on the
 1105--Paulsboro, NJ......................   lower four miles of the
 1101--Philadelphia, PA...................   Christina River, Delaware,
 1103--Wilmington, DE.....................   and all points on the lower
                                             six miles of the Schuykill
                                             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
                                             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, including
                                             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. Movements within
                                             this area are intraport.
1602--Georgetown
 
                   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/Galveston county
                                             line to the south.
                                             Movements within this area
                                             are intraport.
5313--Port Lavaca.........................  Includes Matagorda Ship
                                             Channel.
Sabine Ports *............................  Includes Port Neches, Sabine
 2104--Beaumont...........................   Pass and all other points
 2103--Orange.............................   on the Sabine-Neches
 2101--Port Arthur........................   Waterway. Movements between
 2102--Sabine.............................   these points are intraport.
 
                 Virginia
 
Potomac River Ports, DC, MD, VA *.........  Includes all points on the
5402--Alexandria, VA......................   Potomac River (see
5401--Washington, DC......................   Chesapeake Bay Ports map)
                                             from a line between Point
                                             Lookout and the Little
                                             Wicomico River at
                                             Chesapeake Bay to and
                                             including Washington and
                                             Alexandria. Movements
                                             between these points are
                                             intraport.
Chesapeake Bay Ports,VA *.................  Includes all Virginia points
1406--Cape Charles........................   on the Chesapeake Bay
1402--Newport News........................   inshore of a line from Cape
1401--Norfolk.............................   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 Newport News.
                                             Movements between points
                                             within this area are
                                             intraport. (Also see
                                             Chesapeake Bay Ports, MD.)
James River Ports, VA.....................  Includes all points on the
1408--Hopewell............................   James River above the James
1404--Richmond/Petersburg.................   River Bridge at Newport
                                             News. Movements between
                                             these points are intraport.
 

[[Page 464]]

 
                Washington
 
3003--Aberdeen............................  Includes Grays Harbor and
                                             Yaguina Bay and Harbor.
                                             Movements between these
                                             points are intraport.
Puget Sound Ports, WA*....................  Fee applies only at ports
 3005--Bellingham.........................   listed. Bellingham includes
 3006--Everett............................   all of Bellingham Bay and
 3007--Port Angeles.......................   tributary waters north of
 3001--Seattle............................   Chuchanut Bay on the east,
 3002--Tacoma.............................   and Portage Island on the
 3026--Olympia............................   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..........  Includes all points on the
     2901--Astoria, OR....................   Columbia River downstream
     2904--Portland, OR...................   of Bonneville Dam, and all
     2909--Kalama, WA.....................   points on the Willamette
     2905--Longview, WA...................   River downstream of River
     2908--Vancouver, WA..................   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............  Fee applies to all movements
 3703--Green Bay..........................   between points along the
 3702--Marinette..........................   Sturgeon Bay and Lake
                                             Michigan 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.
Western Lake Michigan Ports...............  Includes the ports of
 3701--Milwaukee..........................   Milwaukee, Racine, and
 3708--Racine.............................   Sheboygan, MN. All
 3707--Sheboygan..........................   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 exempted 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 passengers.
    (3) Commercial vessel means, unless exempted by paragraph (c)(3) of 
this section, any vessel used in transporting commercial cargo by water 
for compensation or hire, or in transporting commercial cargo by water 
in the business of the owner, lessee or operator of the vessel.
    (4) Ferry means any vessel which arrives 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 considered to be assistance which is 
required for the survival of the affected population in cases of, or in 
preparation for, emergencies of all kinds. Such relief assistance would 
include, but is not limited to: food items, shelter, clothing, basic 
home utensil kits, and small electric generators.
    (6) Development assistance is considered 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 include, but is not limited to, aid to promote: 
Agricultural productivity, reduction of infant mortality, reduction of 
rates of unemployment and underemployment, and an increase in literacy.

[[Page 465]]

    (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 vehicles between points within the U.S. or between the U.S. and 
contiguous countries.
    (4) Certain loadings and unloadings of cargo in Alaska, Hawaii, or 
the possessions 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 consumption in Alaska, Hawaii, or any possession of the 
U.S.
    (B) Cargo loaded on a vessel in Alaska, Hawaii, or any possession of 
the U.S. for transportation to the U.S. mainland for ultimate use or 
consumption 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 Alaska, 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 continental U.S. excluding Alaska.
    (C) Possessions of the U.S. means Puerto Rico, Guam, American Samoa, 
U.S. Virgin Islands, the Northern Mariana Islands and the Pacific Trust 
Territories.
    (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 
exportation to a foreign country, unless, with respect to cargo exported 
to Canada or Mexico;
    (i) The Secretary of the Treasury determines 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 economic 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 nonprofit organizations or 
cooperatives which is certified by the U.S. Customs Service as intended 
for use in humanitarian or development assistance overseas, including 
contiguous countries.
    (i) The donated cargo is required to be certified as intended for 
use in humanitarian or development assistance overseas by Customs. 
Subsequent to the payment of the fee, a request for refund should be 
made on an Amended Quarterly Summary Report, Customs Form 350, and 
forwarded to the Office of Finance, U.S. Customs Service, Headquarters, 
Washington, DC 20229. To permit certification, supporting evidence that 
the entity donating the cargo is a nonprofit organization or cooperative 
should be included along with supporting evidence that the cargo was 
intended for humanitarian or development assistance overseas. A 
description of the cargo listed in the shipping documents and a brief 
summary of the intended use of the goods, if such use is not reflected 
in the documents, are acceptable evidence for certification purposes. 
Copies of the Harbor Maintenance Fee Quarterly Summary Report, Customs 
Form 349, should be attached for each quarter that a refund is 
requested.
    (ii) Each nonprofit organization or cooperative claiming the 
exemption

[[Page 466]]

under this subpart shall maintain documentation pertaining to the 
exemption for a period of 5 years. The documentation shall be made 
available for inspection by Customs in accordance with the provisions of 
Sec. Sec. 162.1a through 162.1i of this chapter.
    (d) Special rules--(1) Intraport. The fee is not to be assessed on 
the mere movement of commercial cargo within a port.
    (2) Same vessel, same cargo. If a fee is assessed when cargo is 
loaded on a vessel, 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 shall 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 Sec. 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 quarter does not exceed $10,000.
    (e) Collections, supplemental payments, and refunds--(1) Domestic 
vessel movements--(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 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 
transported 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 pursuant to paragraph (d)(2) of this 
section. 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 determined under 19 U.S.C. 
1401a as if it were imported merchandise. The Vessel Operation Report 
(Army Corps of Engineers Form 3925) is to be completed and submitted to 
the Army Corps of Engineers in accordance with the procedures set forth 
in 33 CFR Ch. II, part 207. The shipper's name, either the internal 
revenue service or social security 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 included on the Vessel 
Operation Report.
    (ii) Fee payment. The shipper whose name appears on the Vessel 
Operation Report shall pay the accumulated fees on a quarterly basis in 
accordance with paragraph (f) of this section by mailing a check or 
money order payable to the U.S. Customs Service for all fees for which 
he is liable for the quarter and a Harbor Maintenance Fee Quarterly 
Summary Report, Customs Form 349, to U.S. Customs Service, P.O. Box 
70915, Chicago, Illinois 60673-0915.
    (2) Import vessel movements--(i) Time and place of liability. 
Subject to the exemptions and special rules of this section, 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 admission, 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 U.S. Customs appraised value of the shipment pursuant to 19 
U.S.C. 1401a, the same basis as that used for duty payment. The fee 
shall be collected on all formal entries, including warehouse entries 
and temporary importation under bond entries, and admissions into 
foreign trade zones.
    (ii) Fee payment. The port use fee on unloading of imported cargo 
shall be paid in accordance with the normal Customs collection 
procedures set forth in Sec. Sec. 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 U.S. Customs Entry Summary 
Form (Customs Form 7501), is to be completed with the amount of the fee 
shown and identified on the form. The fee shall be paid by the importer 
by adding it to any normal duty, tax or

[[Page 467]]

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 shall be 
attached to the Customs 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 admitted into a foreign trade zone, the applicant for admission (the 
person or corporation responsible for bringing merchandise into the 
zone) who becomes liable for the fee at the time of unloading pursuant 
to paragraph (e)(3)(i) of this section, shall pay all fees for which he 
is liable on a quarterly basis in accordance with paragraph (f) of this 
section by mailing a check or money order payable to the U.S. Customs 
Service for all fees for the quarter and a Harbor Maintenance Fee 
Quarterly Summary Sheet, Customs Form 349, to U.S. Customs Service, P.O. 
Box 70915, Chicago, Illinois 60673-0915. Fees shall be paid for all 
shipments unloaded and admitted to the zone, or in the case of direct 
deliveries under Sec. Sec. 146.39 and 146.40 of this chapter, unloaded 
and received in the zone under the bond of the foreign trade zone 
operator.
    (3) Passengers--(i) Time and place of liability. Subject to the 
exemptions and special rules of this section, when a passenger boards or 
disembarks a commercial vessel at a port within the definition 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 
comparable 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 
shall pay the accumulated fees on a quarterly basis in accordance with 
paragraph (f) of this section by mailing a check or money order payable 
to the U.S. Customs Service for all fees for which he is liable for the 
quarter and a Harbor Maintenance Fee Quarterly Summary Report, Customs 
Form 349.
    (4) Refunds and supplemental payments--(i) General. To make 
supplemental 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 followed. To make supplemental payments 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. The 
address to mail supplemental payments of quarterly-paid harbor 
maintenance fees is: U.S. Customs Service, P.O. Box 70915, Chicago, 
Illinois 60673-0915. The address to mail requests for refunds of 
quarterly-paid harbor maintenance fees is: U.S. Customs Service, HMT 
Refunds, 6026 Lakeside Blvd., Indianapolis, IN, 46278.
    (ii) Time limit for refund requests. A refund request must be 
received by Customs within one year of the date the fee for which the 
refund is sought was paid to Customs 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 requested relative to quarterly fee payments 
previously made regarding the loading or unloading of domestic cargo, 
the unloading of cargo destined for admission into a foreign trade zone, 
or the boarding or disembarking of passengers, the refund request or 
supplemental payment must be accompanied by a Harbor Maintenance Fee 
Amended Quarterly Summary Report, Customs Form 350, along with a copy of 
the Harbor Maintenance Fee Quarterly Summary Report, Customs Form 349, 
for the quarter(s) covering the payment to which the refund request or 
supplemental payment relates. A request for

[[Page 468]]

a refund must specify the grounds for the refund.
    (iv) For fees paid on export movements. Customs will process refund 
requests relative to fee payments previously made regarding the loading 
of cargo for export 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 
accompanied 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 documentation is not required with the refund 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 
employer 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 facsimile number of a contact 
person.
    (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 supported 
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 
forwarder 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 letter to be processed; however, if Customs 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 behalf, that freight 
forwarder's entire refund request will be removed from the chronological 
processing order and processed after the processing of all exporter 
refund requests is completed.
    (2) HMT Payment Report and Report/Certification. In processing a 
request for a refund, Customs will conduct a search of its records 
(Customs 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. Customs 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 documentation, 
either retained by Customs (relative to payments made on and after July 
1, 1990) or submitted by the exporter 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 letter must be 
filed with Customs before Customs will issue these reports. The Report/
Certification sets forth the total amount of the refund that Customs 
believes it owes the exporter for the payments listed in that report 
(minus any previous refunds). Pre-July 1, 1990, payments listed in the 
HMT Payment Report for which paper documentation has not been provided 
by the exporter will not be listed in the Report/Certification. 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 Customs the Report/Certification in order to receive the refund set 
forth in that report and/or to submit to Customs a request for a Revised 
Report/Certification. Where the exporter chooses to receive the refund 
set forth in the Report/Certification, the exporter must sign and return 
the report to Customs. Customs will issue the refund upon receipt of the 
signed report.
    (3) Revised Report/Certification. A request for a Revised Report/
Certification must be accompanied by documentation to support any 
payments not listed in the Report/Certification

[[Page 469]]

or corrections to listed payments. See paragraph (e)(4)(iv)(C) of this 
section regarding acceptable documentation. If an exporter (or its 
agent, as appropriate) both signs and returns to Customs a Report/
Certification and requests a Revised Report/Certification, Customs will 
not, when reviewing the request for a Revised Report/Certification, 
approve for refund any corrections to the payments that were listed in 
the signed Report/Certification; Customs will, however, in that 
circumstance, consider approving any additional payments that were not 
listed in the signed Report/Certification. If an exporter does not sign 
and return to Customs a Report/Certification, but requests a Revised 
Report/Certification, Customs will consider approving for refund 
corrections to the payments listed in the Report/Certification and 
additional payments. Where the exporter requests a Revised Report/
Certification, Customs will review the documentation submitted with the 
request, make a determination, and, within 60 days of the request's 
receipt, issue a Revised Report/Certification that lists all payments 
approved for refund and the total amount of the refund owed. In order to 
receive the refund set forth in a Revised Report/Certification, the 
exporter must sign and return it to Customs. Customs will issue the 
refund upon its receipt of the signed report. 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 previously issued 
by Customs.
    (4) Protest. For purposes of filing a protest under 19 U.S.C. 1514 
(and 19 CFR part 174), unless issuance of a Revised Report/Certification 
is pending, any payments not approved for refund in a Report/
Certification or a Revised Report/Certification issued by Customs within 
the 120-day period will be considered denied as of the date the period 
expires; a protest covering such payments must be filed within 90 days 
of that date. For any payments not approved for refund in a Revised 
Report/Certification issued after expiration of the 120-day period, a 
protest may be filed within 90 days of that report's issuance.
    (5) Significance of signed Report/Certification and Revised Report/
Certification. A Report/Certification or Revised Report/Certification 
must be signed by an officer of the company duly authorized to bind the 
company or by an agent (such as a broker or freight forwarder) 
representing the exporter in seeking a refund under this section. A 
Report/Certification or Revised Report/Certification signed by the 
exporter or its agent and received by Customs constitutes the exporter's 
agreement that the amount of the refund set forth in the report is 
accurate and Customs payment of that refund amount is in full accord and 
satisfaction of all payments approved 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 Government, its 
officers, agents, and assigns for costs, attorney fees, expenses, 
compensatory 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 Customs and return the refund to Customs 
within one year of its receipt of the refund. Upon receipt of the signed 
Report/Certification or Revised Report/Certification, Customs 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 accordance with paragraphs (e)(4)(iv)(A) and/or (B)(3) of 
this section. For payments made on and after July 1, 1990, supporting 
documentation is not required to obtain a refund, unless the exporter 
seeks to prove corrections of

[[Page 470]]

payments listed in the Report/Certification (if the exporter did not 
sign and return it to Customs) and/or additional payments not listed in 
a Report/Certification, in accordance with paragraph (e)(4)(iv)(B)(3) of 
this section. The supporting documentation that Customs will accept as 
establishing entitlement to a refund, whether submitted with a refund 
request or a request for a Revised Report/Certification, is whichever of 
the following documents Customs accepted with the payment at the time it 
was made: a copy of the Export Vessel Movement Summary Sheet; where an 
Automated Summary Monthly Shipper's Export Declaration was filed, a copy 
of a letter containing the exporter's identification, its employer 
identification number (EIN), the Census Bureau reporting symbol, and, 
the quarter for which the payment was made; or a copy of a Harbor 
Maintenance Fee Quarterly Summary Report, Customs Form 349, for the 
quarter covering the refund requested. Customs also will consider other 
documentation offered as proof of payment 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 
exclusively 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 importer, applicant for admission 
of cargo into a foreign trade zone, shipper and cruise vessel operator 
affected by this section shall maintain all such documentation necessary 
for Customs to verify the accuracy of fee computations and to otherwise 
determine compliance under the law. Such documentation shall be 
maintained for a period of 5 years from the date of fee calculation. The 
affected parties shall advise the Director, Accounting Services--
Accounts Receivable, P.O. Box 68903, Indianapolis, Indiana 46268, of the 
name, address, and telephone number of a responsible officer who shall 
be able to verify any records required to be maintained under this 
paragraph. The Director of Accounting Services, shall be promptly 
notified of any changes in the identifying information submitted. The 
records shall be maintained and made available for inspection, copying, 
reproduction or other official use by Customs 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 penalty 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 shall incur a penalty equal to the amount of 
liquidated damages assessable for late filing of an entry summary 
pursuant to the provisions of Sec. 142.15 of this chapter. An importer 
shall be liable for payment 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 shall follow the procedures 
set forth in part 171 of this chapter in filing an application for 
relief. Any application to cancel liquidated damages incurred shall be 
made in accordance with part 172 of this chapter.
    (3) Mitigation. Any penalty assessed under this provision shall be 
mitigated in a manner consistent with guidelines relating to 
cancellation of claims for liquidated damages for late filing of entry 
summaries. Any liquidated damages assessed under this provision shall be 
mitigated in a manner consistent with guidelines published by the 
authority of the Commissioner of Customs for cancellation of claims for 
untimely payment of estimated duties, taxes and charges.
    (i) Privacy Act notice. Whenever an identification number is 
requested on the summary sheets provided for in

[[Page 471]]

paragraph (e) of this section, the disclosure of the social security 
number is mandatory when an internal revenue service number is not 
disclosed. Identification 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 number will be used to compare the 
information on the summary sheets with information submitted to the 
government on other forms required in the course of shipping or 
importing merchandise, which contain the identification number, e.g., 
Vessel Operation Report, 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]



Sec. 24.25  Statement processing and Automated 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 related 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 importer of 
record has provided a separate check payable to the ``U.S. Customs 
Service'' for Customs charges (duties, taxes, or other debts owed 
Customs (see Sec. 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 statement will not be 
accepted. ACH debit (see paragraph (b)(2) of this section) is an 
arrangement in which the filer electronically provides payment 
authorization for the Treasury-designated ACH processor to perform an 
electronic debit to the payer's bank account; ACH credit is described in 
Sec. 24.26. The payment amount will then be automatically credited to 
the account of the Department 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 
Sec. 142.13(b) of this chapter, he must also use statement processing 
as a normal course of business for the largest possible portion (see 
Sec. 24.25(d)) of his eligible non-special class entries; further, he 
must use the ACH payment mechanism to pay all his ABI statements 
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 intention 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 account number for each 
account from which ACH payments are to be electronically debited. Upon 
the determination by Customs that the ABI filer has the necessary 
software to participate and otherwise qualifies to participate 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 account through an ABI filer, 
the client must provide directly to Customs the 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

[[Page 472]]

number to each of his accounts and provide the assigned unit number 
directly 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 information 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 particular entry summary will be by individual 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 statement date (within 10 
days of entry, but not a Saturday, Sunday or holiday).
    (2) Customs shall provide a preliminary statement to the ABI filer 
on the scheduled statement date. The preliminary 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 statement 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 merchandise provided for in 
Sec. 142.13(b) of this chaper), the filer shall notify Customs 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 authorization or ACH credit payment, 
identify the preliminary statement as paid and shall post the 
appropriate amounts to the related entries. The final statement 
generally shall be available to the filer the day following the 
acceptance 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 electronically whether he desires that a particular entry 
summary be paid by individual payment or through statement processing. 
If a filer opts to use statement processing for entry/entry summaries 
for quota-class and other special classes of merchandise defined in 
Sec. 142.13(b) of this chapter, he shall use statement processing in 
the normal course of business for the largest possible 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 special 
classes of merchandise defined in Sec. 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 occurred. If Customs believes that a broker is using ACH 
for his quota-class entries and not using statement processing 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, that there were sound 
articulable business reasons for the exclusion or deletion of non-
special class entries, Customs may disqualify the participant from using 
statement processing/ACH for quota-class entries.
    (e) Scheduled statement date. Entry/entry summaries and entry 
summaries

[[Page 473]]

must be designated for statement processing within 10 working days after 
the date of entry. It is the responsibility of the ABI filer using 
statement processing to ensure that the elected scheduled 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]



Sec. 24.26  Automated Clearinghouse credit.

    (a) Description. Automated Clearinghouse (ACH) credit is an optional 
payment method that allows a payer to transmit statement processing 
payments (see Sec. 24.25) or deferred tax payments (see Sec. 24.4) or 
bill payments (see Sec. 24.3) electronically, through its financial 
institution, directly to the Customs account maintained by the 
Department of the Treasury.
    (b) Enrollment procedure. A payer interested 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, Indiana 46278: Payer 
name and address; payer contact name(s); payer telephone number(s) and 
facsimile number; payer identification number (importer number or Social 
Security number or Customs assigned number); and 3-digit filer code.
    (c) Routing and format instructions. Following receipt of the 
enrollment information, 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 institution when originating its 
payments: Company name; company contact person name and telephone 
number; company identification number (coded Internal Revenue Service 
employer identification number or DUNS number or Customs assigned 
number); company payment description; effective date; receiving 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 importer of record); document number (daily 
statement number, entry or warehouse withdrawal number for a deferred 
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 message transmission 
through its financial institution to the Customs account, in order to 
validate the routing instructions. When the routing instructions are 
validated, the Financial Management Services Center will notify the 
payer that the prenotification transaction has been accepted and that 
payments 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 financial 
institution, must originate each payment transaction to the Customs 
account no later than one business 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 information when originating each 
payment. Improperly formatted or erroneous 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 Sec. 24.25(c) for ABI filers using statement processing remain 
applicable when payment is effected 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 payment, 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

[[Page 474]]

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 collection date which 
equates to the settlement date. The appropriate daily statement or entry 
or warehouse withdrawal or bill shall be identified as paid as of that 
collection date.
    (g) Removal from the ACH credit program. If a payer repeatedly 
provides improperly formatted or erroneous information 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 Sec. 24.1 or, in the case 
of daily statement payments, to use the ACH debit payment method under 
Sec. 24.25.

[T.D. 98-51, 63 FR 29125, May 28, 1998]



Sec. 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 Compensation of Deceased 
Civilian Employee. A claim made by anyone other than a designated 
beneficiary or surviving spouse for unpaid compensation due an officer 
or employee at the time of his death shall be executed on standard Form 
1155, Claim for Unpaid Compensation of Deceased Civilian Employee. The 
claims shall be forwarded to the Customs office where the deceased 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, Application for Death Benefit, and forwarded 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]



Sec. 24.34  Vouchers; vendors' bills of sale; invoices.

    (a) Vouchers or invoices for transportation and related services 
which are intended for payment from official funds shall contain the 
following certification 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 invoices for purchases or services 
other than personal do not require the foregoing certification.
    (b) Every voucher shall be in the name of the person or persons 
furnishing the service or supplies, except in the case of a service or 
supplies paid for in an emergency by a Customs officer or employee, in 
which case the voucher may be in the name of the officer or employee who 
made the payment.
    (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 memorandum form, duly 
authenticated if desired, may be prepared as administrative 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 transportation furnished Customs 
officers or employees on Government transportation requests, standard 
Form 1169, and vouchers for transportation of freight and express 
furnished on Government bills of lading, standard Form 1103, issued by 
Customs officers or employees shall be rendered on Public Voucher for 
Transportation Charges, standard Form 1171 or 1113, respectively, to the 
Customs office to be billed as indicated on the transportation 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 
``Passenger,'' ``Freight,'' or ``Express,'' as

[[Page 475]]

the case may be, should be printed or otherwise placed by the carrier 
immediately above the title of the voucher form. Original Government 
bills of lading, standard Form 1103, or transportation requests, 
standard Form 1169, or certificates in lieu thereof, standard Forms 1108 
or 1172, respectively, shall be attached to these vouchers.



Sec. 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 excessive duties, taxes, 
fees or interest (at the rate determined in accordance with Sec. 
24.3a(c)(1)) is due, a refund shall be prepared in the name of the 
person to whom the refund is due, as determined 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 authorized 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 
received 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 deposited 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 applicable 
entry or reconciliation. An example follows:

    Example: Entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.005
    

Importer is owed a refund of $600 plus interest 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 deposit (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 interest accrued on the excess additional 
deposit from the date of the additional deposit to the date of 
liquidation or reliquidation of the applicable entry or reconciliation. 
An example follows:

    Example: Additional deposit made and entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.006
    

[[Page 476]]



Importer is owed a refund of $900 plus interest 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 liquidation, the importer will be 
refunded $900 plus interest. The interest accrues in two segments: (1) 
On the additional deposit overpayment ($200), from the date of the 
additional deposit (May 1) to the date of liquidation (December 1); and 
(2) on the initial deposit 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 interest thereon. Interest on such principal 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 duties, taxes, fees or interest were deposited to the date of the 
refund if the amount refunded is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to constitute 
the true excess amount deposited with Customs. An example follows:

    Example: Pre-liquidation refund and entry liquidates for net amount 
collected
[GRAPHIC] [TIFF OMITTED] TR20OC99.007


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 refund 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 deposit (January 1) 
to the date of the pre-liquidation refund (May 1).

    (B) If the amount refunded is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to constitute 
less than the true excess amount deposited with Customs, in addition to 
any other interest accrued under this paragraph (a)(1), interest also 
shall accrue on the remaining excess deposit from the date the duties, 
taxes, fees or interest were deposited to the date of liquidation or 
reliquidation. An example follows:

    Example: Pre-liquidation refund and entry liquidates for an 
additional refund
[GRAPHIC] [TIFF OMITTED] TR20OC99.008


Importer is owed a refund of $700 plus interest as follows:
The importer makes a $1,000 initial deposit (January 1) and receives a 
pre-liquidation refund 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 
liquidation (December 1).

    (C) If an entry or reconciliation is determined upon liquidation or 
reliquidation to involve both an initial underpayment and an additional 
excess deposit, interest in each case shall be

[[Page 477]]

computed separately and the resulting amounts shall be netted for 
purposes of determining the final amount of interest to be reflected in 
the refund. An example follows:

    Example: Additional deposit made and entry liquidates for a refund
    [GRAPHIC] [TIFF OMITTED] TR20OC99.009
    

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 additional pre-liquidation deposit of $300 (May 1) 
and the entry liquidates for $1,100 (December 1). Upon liquidation, the 
importer will be refunded $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 deposit was required 
(January 1) to the date of the additional deposit (May 1); and (2) 
interest accrues in favor of the importer on the overpayment ($200) from 
the date of the additional deposit (May 1) to the date of liquidation 
(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 treated as an underpayment of duties, taxes, fees or interest on 
which interest shall accrue as provided in Sec. 24.3a.
    (2) A refund determined to be due upon liquidation or reliquidation, 
including a refund consisting only of interest 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 refund 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 unless a transferee of 
the right to withdraw merchandise from bonded warehouse 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 section 
485(d), Tariff Act of 1930, or a surety submits evidence of payment to 
Customs, upon default of the principal, of amounts previously determined 
to be due on the same entry or transaction. 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, provided the 
nominal consignee waives in writing his right to file such declaration. 
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 declaration 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 a surety submits evidence of payment to Customs, upon 
default of the principal, for an amount previously determined to be due 
on an entry or transaction 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 become 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 thereto, unless the declaration of the actual

[[Page 478]]

owner has been filed with the port director 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 excessive 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, 
therefore, the types in which the port director 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 instituted before June 15, 
1957;
    (5) The refund of tax is pursuant to a claim based solely on errors 
of computation of the quantity of the imported article, or on 
mathematical errors in computation of the tax due;
    (6) The tax was paid or collected on an imported article seized and 
forfeited, 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 applicable 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 notice 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 assistant 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 
request 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 internal 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 internal 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 
region in which the claimant is located. The certified statement shall 
be attached to and filed in support of such claim which may include 
refunds under more than one entry but shall be limited 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 exception that any data on the certified statement 
also required to be shown in the claim need not be restated in the 
claim.
    (3) The date of allowance of refund or credit in respect of such tax 
for the purposes of section 6407, Internal Revenue Code of 1954 (26 
U.S.C. 6407) shall be that date on which a claim is perfected and the 
refund is authorized for scheduling under the applicable internal 
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]

[[Page 479]]



Sec. 24.70  Claims; deceased or incompetent public creditors.

    (a) Claims for amounts due individual deceased public creditors of 
the United States (except civilian officers and employees subject to the 
provisions of section 61f-61k, Title 5, United States Code), should be 
made on standard Form No. 1055--Revised. Such claims include claims for 
payments due deceased contractors for articles furnished or services 
performed, and claims for payments due deceased importers 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 Government 
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 signature, an application for amounts due an estate of an 
incompetent, setting forth the incompetent's connection with the United 
States Customs Service. This application should be supported by a short 
certificate of the court showing the appointment and qualification of 
the claimant as guardian or committee. In case the total amount due the 
estate of the incompetent 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 incompetent, or 
by close relatives who will hold any amount found due for the use and 
benefit of the incompetent. Applications for recurring payments need not 
be accompanied by an additional certificate of the court, but should be 
supported by a statement that the appointment is still in full force and 
effect. All Government checks drawn on the Treasurer of the United 
States or other authorized Government depository to the order of 
individuals which cannot be paid because of incompetency 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 furnished 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 necessary 
assistance to claimants to insure proper execution of standard Form 
1055--Revised in the case of deceased public creditors, and in the case 
of incompetent public creditors to insure submission of the application 
in proper form. The port director shall settle the claim unless there is 
a doubtful question of fact or law, in which case the claim shall be 
forwarded to the Accounting Services Division, Accounts Receivable 
Group, Indianapolis, Indiana, with originals or certified copies of any 
necessary documents and with an appropriate report and recommendation.

[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]



Sec. 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.



Sec. 24.72  Claims; set-off.

    When an importer of record or other party has a judgment or other 
claim allowed 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 legally fixed and undisputed, the port director shall 
set off so much of the judgment or other claim as will equal the amount 
of the debt due the Government.

[T.D. 56388, 30 FR 4671, Apr. 10, 1965]

[[Page 480]]



Sec. 24.73  Miscellaneous claims.

    Every claim of whatever nature arising under the Customs laws which 
is not otherwise provided for shall be forwarded directly to 
Headquarters, U.S. Customs Service, together with all supporting 
documents and information available.



PART 54_CERTAIN IMPORTATIONS TEMPORARILY FREE OF DUTY--Table of Contents




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

Sec.
54.5 Scope of exemptions; nondeposit of estimated duty.
54.6 Proof of intent; bond; proof of use; liquidation.

    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



Sec. 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 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, and actually so used, shall be entitled to free entry upon 
compliance with Sec. 54.6, if entered, or withdrawn from warehouse for 
consumption, during 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 provision does not apply to:
    (1) Articles of lead, zinc, or tungsten;
    (2) Metal-bearing materials provided for in section VI, Chapter 26 
or subheading 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 withdrawal from warehouse for consumption, of the articles described 
in paragraph (a) of this section if the port director 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 remanufacture by 
melting, or to be processed by shredding, shearing, compacting, or 
similar processing which renders it fit only for the recovery of the 
metal content.

[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]



Sec. 54.6  Proof of intent; bond; proof of use; liquidation.

    Articles predominating by weight of metal, described in Sec. 
54.5(a) shall be admitted free of duty upon compliance with the 
following conditions:
    (a) There shall be filed in connection with the entry a statement of 
the importer consistent with the requirements of Sec. 10.134 of this 
chapter.
    (b) If the articles are entered for consumption or warehouse, a bond 
shall be filed on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter. Withdrawals from warehouse shall 
be made on Customs Form 7501. The liquidation of the consumption 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 superintendent or manager of the 
plant at which the articles were used in remanufacture by melting, or 
were processed by shredding, shearing, compacting, 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,

[[Page 481]]

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 articles; and
    (4) A description of the remanufacture or processing in sufficient 
detail to enable the port director to determine whether it constituted a 
use in remanufacture by melting, or processing by shredding, shearing, 
compacting, or similar processing which rendered the articles fit only 
for the recovery of the metal content. In appropriate 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 business 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 manager 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 furnished within the prescribed time, the entry shall be 
liquidated without the assessment of duty on the covered articles. 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 
classification claimed, the entry shall be liquidated 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 reliquidation may be completed (Sec. 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--Table of Contents




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 Customs stations.
101.5 Customs preclearance offices in foreign countries.
101.6 Hours of business.
101.7 Customs seal.
101.8 Identification cards.
101.9 Test programs or procedures; alternate requirements.

    Authority: 5 U.S.C. 301; 19 U.S.C. 2, 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule 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.



Sec. 101.0  Scope.

    This part sets forth general regulations governing the authority of 
Customs officers, and the location of Customs ports of entry, service 
ports and Customs stations. It further sets forth regulations concerning 
the entry and clearance of vessels at Customs stations and a listing of 
Customs preclearance offices in foreign countries. In addition, this 
part contains provisions concerning the hours of business of Customs 
offices, the Customs seal, and the identification cards issued to 
Customs officers and employees.

[T.D. 77-241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 99-27, 64 
FR 13675, Mar. 22, 1999]

[[Page 482]]



Sec. 101.1  Definitions.

    As used in this chapter, the following terms shall 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 part or portion thereof:
    Business day. A ``business day'' means a weekday (Monday through 
Friday), excluding national holidays as specified in Sec. 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 contained 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 enforce the various 
provisions of the Customs 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 merchandise shall be the effective time of entry of such 
merchandise, as defined in Sec. 141.68 of this chapter.
    Date of exportation. ``Date of exportation'' or ``time of 
exportation'' shall be as defined in Sec. 152.1(c) of this chapter.
    Date of importation. ``Date of importation'' means, in the case of 
merchandise imported otherwise than by vessel, the date on which the 
merchandise arrives within the Customs territory of the United States. 
In the case of merchandise 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 
merchandise.
    Duties. ``Duties'' means Customs duties and any internal revenue 
taxes which attach upon importation.
    Entry or withdrawal for consumption. ``Entry or withdrawal for 
consumption'' means entry for consumption or withdrawal from warehouse 
for consumption.
    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 foreign country. The 
shipment of merchandise abroad with the intention of returning it to the 
United States with a design to circumvent provisions of restriction or 
limitation in the tariff laws or to secure a benefit accruing to 
imported merchandise is not an exportation. Merchandise of foreign 
origin returned from abroad under these circumstances is dutiable 
according to its nature, weight, and value at the time of its original 
arrival in this country.
    Importer. ``Importer'' means the person 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 merchandise, if an actual owner's 
declaration and superseding bond has been filed in accordance with Sec. 
141.20 of this chapter, or
    (4) The transferee of the merchandise, if the right to withdraw 
merchandise 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 Secretary of the Treasury, or by Act of Congress, at which 
a Customs officer is authorized to accept entries of merchandise to 
collect duties, and to enforce the various provisions of the Customs and 
navigation laws. The terms ``port'' and ``port of entry'' incorporate 
the geographical area under the jurisdiction of a port director. (The 
Customs ports in the Virgin Islands, although 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 Headquarters.

[[Page 483]]

    Service port. The term ``service port'' refers to a Customs location 
having a full range of cargo processing functions, including 
inspections, entry, collections, 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 declaration 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]



Sec. 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 directly or by subdelegation, shall be valid despite the 
existence of any statute or regulation, including any provision 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 
action.
    (b) Consolidation of functions. Any reorganization of the Customs 
Service or consolidation of the functions of two or more persons into 
one office which results in the failure of a designated Customs officer 
to perform an action required 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 supervision of 
Customs officers, such supervision 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 Customs in particular cases. In the 
absence of a governing regulation or instruction, 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 supervision will ensure proper enforcement 
of the law and protection of the revenue. Nothing in this section shall 
be deemed to warrant any failure to direct and furnish required 
supervision or to excuse any failure of a party in interest to comply 
with prescribed procedures for obtaining any required supervision.

[T.D. 77-241, 42 FR 54937, Oct. 12, 1977, as amended by T.D. 98-22, 63 
FR 11825, Mar. 11, 1998]



Sec. 101.3  Customs service ports and ports of entry.

    (a) Designation of Customs field organization. The Deputy Assistant 
Secretary (Regulatory, Tariff, and Trade Enforcement), pursuant to 
authority delegated by the Secretary of the Treasury, is authorized to 
establish, rearrange or consolidate, and to discontinue Customs ports of 
entry as the needs of the Customs Service may require.
    (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) additional 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.
------------------------------------------------------------------------

[[Page 484]]

 
                                 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.
------------------------------------------------------------------------
                                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

[[Page 485]]

 
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  T.D.s 86-76 and 89-10.
 Island, IL.
Peoria.......................  Including territory described in T.D.72-
                                130.
Rockford.....................  CBP Dec. 05-38.
------------------------------------------------------------------------
                                 Indiana
------------------------------------------------------------------------
Cincinnati, OH-Lawrenceburg,   Consolidated port, T.D. 84-91.
 IN.
Indianapolis
Owensboro, KY-Evansville, IN.  Consolidated port, T.D. 84-91.
------------------------------------------------------------------------
                                  Iowa
------------------------------------------------------------------------
Davenport,IA-Moline and Rock   T.D.s 86-76 and 89-10.
 Island, IL.
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.
------------------------------------------------------------------------
                                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.

[[Page 486]]

 
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
                                territory 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.
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.

[[Page 487]]

 
St. Joseph
St. Louis....................  Including territory described in T.D.s 67-
                                57 and 69-224.
------------------------------------------------------------------------
                                 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   Included in the Consolidated Port of the
 Salem.                         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
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.
------------------------------------------------------------------------

[[Page 488]]

 
                              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- .
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,   Consolidated port, T.D. 84-91.
 IN.
Cleveland....................  Including territory described in T.D. 77-
                                232; consolidated port, T.D. 87-123.
Columbus.....................  Including territory described in T.D. 96-
                                67.
Dayton.......................  Including territory described in T.D. 76-
                                77.
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.
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.

[[Page 489]]

 
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         Consolidated port, T.D. 74-231; including
 Arthur, Sabine.                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
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.

[[Page 490]]

 
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 Customs 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.
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.
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 citations affecting Sec. 
101.3, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 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

[[Page 491]]

or clearance is authorized by the director 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. Authorization to enter or be cleared at 
a Customs station shall be granted by the director of the port under 
whose jurisdiction 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 navigation laws and regulations are 
complied with.
    (3) The owner, master or agent of a vessel sought to be entered at a 
Customs station reimburses the Government 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 vessel, 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 
connection 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.
------------------------------------------------------------------------
                                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.

[[Page 492]]

 
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.
------------------------------------------------------------------------
                                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. Customs stations may be designated 
for a temporary time only, to provide Customs facilities where needed 
because of certain large-scale operations. Because these designations 
change from time to time they are not listed. However, current 
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 citations affecting Sec. 
101.4, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 101.5  Customs preclearance offices in foreign countries.

    Listed below are the preclearance offices in foreign countries where 
U. S. Customs officers are located. A Director, Preclearance, located in 
the Office of Field Operations at Customs Headquarters, is the 
responsible Customs officer exercising supervisory control over all 
preclearance offices.

------------------------------------------------------------------------
                Country                          Customs office
------------------------------------------------------------------------
Aruba.................................  Orangestad
The Bahamas...........................  Freeport
                                        Nassau
Bermuda...............................  Kindley Field
Canada................................  Calgary, Alberta
                                        Edmonton, Alberta
                                        Montreal, Quebec
                                        Ottawa, Ontario
                                        Toronto, Ontario
                                        Vancouver, British Columbia
                                        Winnipeg, Manitoba
------------------------------------------------------------------------


[T.D. 01-81, 66 FR 56431, Nov. 8, 2001]



Sec. 101.6  Hours of business.

    Except as specified in paragraphs (a) through (g) of this section, 
each Customs office shall be open for the transactions of general 
Customs 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, Customs offices shall be closed 
on the following national holidays:
    (1) The first day of January.
    (2) The third Monday of February.
    (3) The last Monday of May.
    (4) The fourth day of July.
    (5) The first Monday of September.
    (6) The second Monday of October.
    (7) The eleventh day of November.
    (8) The fourth Thursday of November.
    (9) The twenty-fifth day of December.

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 required to maintain 
adequate service, such hours shall be observed provided

[[Page 493]]

the Commissioner of Customs approves them and provided further that a 
notice of business hours is prominently displayed at the principal 
entrance and in each public room of the Customs office.
    (c) Fixing of hours. At each port or station where there is no full-
time Customs employee, the port director shall fix the hours during 
which the Customs office will be open for the transaction of general 
Customs business. Notice of such hours shall be prominently displayed at 
the principal entrance of the office.
    (d) State and local holidays. Each Customs office shall be open for 
the transaction of business on all State and local holidays occurring on 
days other than Saturdays, 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 performance of his work in a Customs office.
    (e) Services performed outside a Customs office. Customs services 
required to be performed outside a Customs office shall be furnished 
between the hours of 8 a.m. and 5 p.m. (or between the corresponding 
hours at ports where different but equivalent hours are required for the 
maintenance of adequate service) on all days when the Customs office is 
open for the transaction of general Customs business.
    (f) Customs services not within prescribed hours. Where there is a 
regularly recurring need for Customs services outside the hours 
prescribed in paragraphs (a) through (e) of this section and the volume 
and duration of the required services are uniformly such as to require, 
of themselves or in immediately consecutive combination with other 
essential Customs activities of the port, the full time of one or more 
Customs 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 Customs.
    (g) Customs services furnished private interests. Other than as 
specified in this section. Customs services shall be furnished private 
interests only in accordance with the provisions of Sec. 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]



Sec. 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 surrounded by an outer circle in 
which appear the words ``Treasury'' at the top and ``U.S. Customs 
Service'' at the bottom.
    (b) Use of the Customs seal. The Customs seal currently in official 
use, including the dies, rolls, plates, and like devices now in the 
possession of the Bureau of Engraving and Printing, 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 replacing and is replaced. Use of the United States Customs 
seal shall be restricted in the following manner:
    (1) The Customs seal of the United States shall be impressed upon 
all official documents requiring the impress of a seal. It shall be 
impressed upon all marine documents and landing certificates, 
certificates of weight, gauge, or measure, and similar classes of 
documents for outside interests.
    (2) The impress of the seal is not necessary 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.



Sec. 101.8  Identification cards.

    Each Customs employee shall be issued an appropriate identification 
card with that employee's photograph and signature, signed by the 
appropriate issuing officer.



Sec. 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

[[Page 494]]

of new technology or operational procedures regarding the processing of 
passengers, vessels, or merchandise, the Commissioner of Customs may 
impose requirements different from those specified in the Customs 
Regulations, but only to the extent that such different requirements do 
not affect the collection of the revenue, public health, safety, or law 
enforcement. The imposition of any such different requirements shall be 
subject to the following conditions:
    (1) Defined purpose. The test is limited in scope, time, and 
application to such relief as may be necessary to facilitate the conduct 
of a specified program or procedure;
    (2) Prior publication requirement. Whenever a particular test allows 
for deviation from any regulatory requirements, 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 
public of the eligibility criteria for voluntary participation in the 
test and the basis for selecting participants.
    (b) NCAP testing. For purposes of conducting an approved test 
program or procedure designed to evaluate planned components of the 
National Customs Automation Program (NCAP), as described in section 
411(a)(2) of the Tariff Act of 1930 (19 U.S.C. 411), the Commissioner of 
Customs may impose requirements different from those specified in the 
Customs Regulations, but only to the extent that such different 
requirements do not affect the collection of the revenue, public health, 
safety, or law enforcement. In addition to the requirement of paragraph 
(a)(1) of this section, the imposition of any such different 
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 implementing such test, followed by publication in the 
Customs Bulletin. The notice shall invite public comments concerning any 
aspect of the test program or procedure, and inform interested members 
of the public of the eligibility criteria for voluntary participation in 
the test and the basis for selecting participants; and,
    (2) Post publication requirement. Within a reasonable time period 
following the completion of the test, a complete description of the 
results shall be published in both the Federal Register and the Customs 
Bulletin.

[T.D. 95-21, 60 FR 14214, Mar. 16, 1995]



PART 102_RULES OF ORIGIN--Table of Contents




Sec.
102.0 Scope.

                            Subpart A_General

102.1 Definitions.

                        Subpart B_Rules of Origin

102.11 General rules.
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 Identification.
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 Apparel 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.



Sec. 102.0  Scope.

    With the exception of Sec. Sec. 102.21 through 102.25, this part 
sets forth rules for determining the country of origin of imported goods 
for the purposes specified in paragraph 1 of Annex 311 of the North 
American Free Trade Agreement (``NAFTA''). These specific purposes are: 
country of origin marking; determining the rate of duty and staging 
category applicable to originating textile and apparel products as

[[Page 495]]

set out in Section 2 (Tariff Elimination) of Annex 300-B (Textile and 
Apparel 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 Sec. Sec. 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 Sec. 
10.809 of the United States-Bahrain Free Trade Agreement regulations. 
The rules for determining the country of origin of textile and apparel 
products set forth in Sec. 102.21 apply for the foregoing purposes and 
for the other purposes stated in that section. Section 102.22 sets forth 
rules for determining 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 requirements 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]



                            Subpart A_General



Sec. 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'' operations 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. ``Direct physical 
identification'' means identification by visual or other organoleptic 
examination.
    (d) Domestic material. ``Domestic material'' means a material whose 
country of origin as determined under these rules is the same country as 
the country in which the good is produced.
    (e) Foreign material. ``Foreign material'' 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 purposes and whose properties are essentially 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 harvested 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 vessels 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, provided such factory ships are 
registered 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 territorial 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 
Commodity Description and Coding System, including its general rules of 
Interpretation, Section Notes and Chapter 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.

[[Page 496]]

    (j) Incorporated. ``Incorporated'' means physically incorporated 
into a good as a result of production with respect to that good.
    (k) Indirect materials. ``Indirect materials'' means a good used in 
the production, 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 operation of equipment associated with the production 
of that other 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 production or used to operate equipment and buildings;
    (5) Gloves, glasses, footwear, clothing, 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 incorporated into the good but 
whose use in the production of the good can reasonably 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 components.
    (m) Minor processing. ``Minor processing'' means the following:
    (1) Mere dilution with water or another substance that does not 
materially alter the characteristics of the good;
    (2) Cleaning, including removal of rust, grease, paint, or other 
coatings;
    (3) Application of preservative or decorative coatings, including 
lubricants, protective encapsulation, preservative or decorative paint, 
or metallic coatings;
    (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, 
repackaging;
    (7) Testing, marking, sorting, or grading;
    (8) Ornamental or finishing operations incidental to textile good 
production designed to enhance the marketing 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 assembly'' means the fitting together 
of five or fewer parts all of which are foreign (excluding fasteners 
such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by 
other means without more than minor processing.
    (p) Value. ``Value'' means, with respect to Sec. 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 customs value or value within the 
meaning of the appendix to part 181 of this chapter.

[T.D. 96-48, 61 FR 28955, June 6, 1996]



                        Subpart B_Rules of Origin



Sec. 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 Sec. 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 incorporated in that good undergoes an 
applicable change in tariff classification set out in Sec. 102.20 and 
satisfies any other applicable requirements of that

[[Page 497]]

section, and all other applicable requirements of these rules are 
satisfied.
    (b) Except for a good that is specifically described in the 
Harmonized System as a set, or is classified as a set pursuant to 
General Rule of Interpretation 3, where the country of origin cannot 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 fungible, has been commingled, and direct physical identification of 
the origin of the commingled material is not practical, the country or 
countries of origin may be determined on the basis of an inventory 
management method provided under the appendix to part 181 of this 
chapter.
    (c) Where the country of origin cannot be determined under paragraph 
(a) or (b) of this section and the good is specifically described in the 
Harmonized System as a set or mixture, or classified as a set, mixture 
or composite good pursuant to General Rule of Interpretation 3, the 
country of origin of the good is the country or countries of origin of 
all materials that merit equal consideration for determining the 
essential character of the good.
    (d) Where the country of origin of a good cannot be determined under 
paragraph (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 determining the 
essential character of the good;
    (2) If the good was produced by simple assembly and the assembled 
parts that merit equal consideration for determining 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 
paragraph (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]



Sec. 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 identification of the origin of the commingled good is not 
practical, the country or countries of origin may be determined on the 
basis of an inventory management method provided under the appendix to 
part 181 of the Customs Regulations.



Sec. 102.13  De Minimis.

    (a) Except as otherwise provided in paragraphs (b) and (c) of this 
section, foreign materials that do not undergo the applicable change in 
tariff classification set out in Sec. 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 incorporated in a good provided for in Chapter 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 Sec. 102.21 or 
satisfy the other applicable 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]



Sec. 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

[[Page 498]]

in Sec. 102.20 or Sec. 102.21, or satisfies the other applicable 
requirements of those sections:
    (1) Packaging materials and containers 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 classified 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]



Sec. 102.17  Non-qualifying operations.

    A foreign material shall not be considered to have undergone an 
applicable change in tariff classification specified in Sec. 102.20 or 
Sec. 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 retail packaging without more than 
minor processing;
    (d) Mere dilution with water or another substance that does not 
materially alter the characteristics of the material; or
    (e) Collecting parts that, as collected, are classifiable in the 
same tariff provision as an assembled good pursuant 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]



Sec. 102.18  Rules of interpretation.

    (a) When General Rule of Interpretation (GRI) 2(a) is referred to in 
Sec. 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 manner as a complete or finished good pursuant to GRI 2(a).
    (b) (1) For purposes of identifying the material that imparts the 
essential character to a good under Sec. 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 Sec. 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 classification is not allowed 
under the specific rule or other requirements applicable to the good 
under consideration. For example, in the case of a good classified in 
HTSUS subheading 8607.11 (the rule for which specifies 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 GRI 2(a)), the only materials that may be considered for purposes of 
identifying the materials that impart the essential 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 producer 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 classified in a tariff provision 
from which a change in tariff classification is not allowed 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 Sec. 102.20 specific rule or other requirements applicable to 
the good, then that material will represent the single material that 
imparts the essential character to the good under Sec. 102.11.
    (2) For purposes of determining which one of two or more materials 
described in paragraph (b)(1) of this section imparts the essential 
character to a good under Sec. 102.11, various factors

[[Page 499]]

may be examined depending upon the type of good involved. These factors 
include, but are not limited to, the following:
    (i) The nature of each material, such as its bulk, quantity, weight 
or value; and
    (ii) The role of each material in relation to the use of the good.

[T.D. 96-48, 61 FR 28957, June 6, 1996]



Sec. 102.19  NAFTA preference override.

    (a) Except in the case of goods covered by paragraph (b) of this 
section, if a good which is originating within the meaning of Sec. 
181.1(q) of this chapter is not determined under Sec. 102.11(a) or (b) 
or Sec. 102.21 to be a good of a single NAFTA country, the country of 
origin of such good is the last NAFTA country in which that good 
underwent production other than minor processing, provided that a 
Certificate of Origin (see Sec. 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 Sec. 
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 improved 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 
improved in condition before its return to the United States.

[T.D. 96-48, 61 FR 28957, June 6, 1996]



Sec. 102.20  Specific rules by tariff classification.

    The following rules are the rules specified in Sec. 102.11(a)(3) 
and other sections of this part. Where a rule under this section permits 
a change to a subheading from another subheading of the same heading, 
the rule shall be satisfied only if the change is from a subheading 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.
0210.90.............................................  A change to subheading 0210.90 from any other chapter; or
                                                      A change to edible meals and flours of subheading 0210.90
                                                       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.
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 heading 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
----------------------------------------------------------------------------------------------------------------
 

[[Page 500]]

 
  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 concentrates 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 ingredient of foreign origin
                                                       constitutes more than 60 percent by weight of the good.
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.

[[Page 501]]

 
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.
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 preparations, 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
                                                      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.

[[Page 502]]

 
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.
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 subheading 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 components 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.

[[Page 503]]

 
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.
2811.23-2811.29.....................................  A change to subheading 2811.23 through 2811.29 from any
                                                       other subheading, including another subheading within
                                                       that group.
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.
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 subheading 2824.10 through 2824.90 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.
2826.11-2833.19.....................................  A change to subheading 2826.11 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.
2833.22-2833.26.....................................  A change to subheading 2833.22 through 2833.26 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 subheading 2833.29 from any other subheading,
                                                       except from heading 2520.

[[Page 504]]

 
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.
2835.26.............................................  A change to subheading 2835.26 from any other subheading,
                                                       except from heading 2510.
2835.29-2835.39.....................................  A change to subheading 2835.29 through 2835.39 from any
                                                       other subheading, including another subheading within
                                                       that group.
2836.10.............................................  A change to subheading 2836.10 from any other subheading.
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.
2836.70.............................................  A change to subheading 2836.70 from any other subheading,
                                                       except from heading 2607.
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
                                                       any other subheading, except from subheading 2617.90; or
                                                      A change to subheading 2836.99 other than to bismuth
                                                       carbonate 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.
2838................................................  A change to heading 2838 from any other heading.
2839.11-2839.19.....................................  A change to subheading 2839.11 through 2839.19 from any
                                                       other subheading outside that group.
2839.20-2839.90.....................................  A change to subheading 2839.20 through 2839.90 from any
                                                       other subheading, including another subheading within
                                                       that group.
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.
2840.30.............................................  A change to subheading 2840.30 from any other subheading.
2841.10-2841.30.....................................  A change to subheading 2841.10 through 2841.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
2841.50.............................................  A change to subheading 2841.50 from any other subheading,
                                                       except from heading 2610.
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 subheading 2841.90 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 subheading 2842.90 from any other subheading,
                                                       provided that the good classified in subheading 2842.90
                                                       is the product of a ``chemical reaction'' as defined 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.
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.
2850-2851...........................................  A change to heading 2850 through 2851 from any other
                                                       heading, including another heading within that group.

[[Page 505]]

 
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.
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.
2903.11-2903.30.....................................  A change to subheading 2903.11 through 2903.30 from any
                                                       other subheading, 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 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.
2906.14.............................................  A change to subheading 2906.14 from any other subheading,
                                                       except from heading 3805.
2906.19.............................................  A change to subheading 2906.19 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 subheading 2907.12 through 2907.22 from any
                                                       other subheading, 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 phenol-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 subheading 2909.11 through 2909.49 from any
                                                       other subheading, including another subheading within
                                                       that 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 subheading 2910.10 through 2910.90 from any
                                                       other subheading, including another subheading within
                                                       that group.
2911................................................  A change to heading 2911 from any other heading.
2912.11-2912.13.....................................  A change to subheading 2912.11 through 2812.13 from any
                                                       other subheading, including another subheading within
                                                       that group.
2912.19-2912.49.....................................  A change to subheading 2912.19 through 2912.49 from any
                                                       other subheading, 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.

[[Page 506]]

 
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.
2915.11-2915.35.....................................  A change to subheading 2915.11 through 2915.35 from any
                                                       other subheading, including another subheading within
                                                       that group.
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 subheading 2917.11 through 2917.39 from any
                                                       other subheading, including another subheading within
                                                       that group.
2918.11-2918.22.....................................  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.
2918.90.............................................  A change to subheading 2918.90 from any other subheading,
                                                       except from heading 3301.90.
2919................................................  A change to heading 2919 from any other heading.
2920.10-2926.90.....................................  A change to subheading 2920.10 through 2926.90 from any
                                                       other subheading, 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 2929.10 through 2930.90 from any
                                                       other subheading, 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.
2936.10-2936.29.....................................  A change to subheading 2936.10 through 2936.29 from any
                                                       other subheading, including another subheading within
                                                       that group.
2936.90.............................................  A change to subheading 2936.90 from any other subheading,
                                                       except from subheading 2936.10 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
                                                       subheading 2939.11 from poppy straw extract of subheading
                                                       1302.19.
2942................................................  A change to heading 2942 from any other chapter.
3001.10.............................................  A change to subheading 3001.10 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 powder
                                                       classified in subheading 3001.10, and except a change
                                                       from subheading 3006.80.
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.
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 3006.80.
3003.10.............................................  A change to subheading 3003.10 from any other subheading,
                                                       except from subheading 2941.10, 2941.20, 3003.20, or
                                                       3006.80.
3003.20.............................................  A change to subheading 3003.20 from any other subheading,
                                                       except from subheading 2941.30 through 2941.90, or
                                                       3006.80.
3003.31.............................................  A change to subheading 3003.31 from any other subheading,
                                                       except from subheading 2937.12 or 3006.80.
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 3006.80.
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 3006.80 or alkaloids or derivatives
                                                       thereof classified in Chapter 29.
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 3006.80.
3004.10.............................................  A change to subheading 3004.10 from any other subheading,
                                                       except from subheading 2941.10, 2941.20, 3003.10,
                                                       3003.20, or 3006.80.

[[Page 507]]

 
3004.20.............................................  A change to subheading 3004.20 from any other subheading,
                                                       except from subheading 2941.30 through 2941.90, 3003.20,
                                                       or 3006.80.
3004.31.............................................  A change to subheading 3004.31 from any other subheading,
                                                       except from subheading 2937.12, 3003.31, 3003.39, or
                                                       3006.80.
3004.32.............................................  A change to subheading 3004.32 from any other subheading,
                                                       except from subheading 3003.39 or 3006.80, 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 3006.80, 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 3006.80, 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 3006.80, or vitamins
                                                       classified in Chapter 29 or products classified in
                                                       heading 2936.
3004.90.............................................  A change to subheading 3004.90 from any other subheading,
                                                       except from subheading 3003.90 or 3006.80, and 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.
3005.10.............................................  A change to subheading 3005.10 from any other subheading,
                                                       except from subheading 3006.80 or 3825.30.
3006.10.............................................  A change to subheading 3006.10 from any other subheading,
                                                       except from subheading 1212.20, 3006.80, 3825.30, or
                                                       4206.10.
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 3006.80 or 3825.30.
3006.70.............................................  A change to subheading 3006.70 from any other subheading,
                                                       except from subheading 3006.80 or 3825.30, and provided
                                                       that no more than 60 percent by weight of the good
                                                       classified in this subheading is attributable to one
                                                       substance or compound.
3006.80.............................................  A change to subheading 3006.80 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.
3102.70.............................................  A change to subheading 3102.70 from any other subheading.
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.
3103.10-3103.20.....................................  A change to subheading 3103.10 through 3103.20 from any
                                                       other subheading, including another subheading within
                                                       that group.
3103.90.............................................  A change to subheading 3103.90 from any other subheading,
                                                       except from subheading 3103.10 or 3103.20.
3104.10-3104.30.....................................  A change to subheading 3104.10 through 3104.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
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.
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.

[[Page 508]]

 
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 subheading 3206.20 through 3209.90 from any
                                                       other subheading, 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.
3301.11-3301.90.....................................  A change to subheading 3301.11 through 3301.90 from any
                                                       other subheading, 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.
3403.91-3403.99.....................................  A change to subheading 3403.91 through 3403.99 from any
                                                       other subheading, including another subheading within
                                                       that group.
3404.10-3404.20.....................................  A change to subheading 3404.10 through 3404.20 from any
                                                       other subheading, including another subheading within
                                                       that group.
3404.90.............................................  A change to subheading 3404.90 from any other subheading,
                                                       except from heading 1521 or subheading 2712.20 or
                                                       2712.90.
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.

[[Page 509]]

 
3807................................................  A change to heading 3807 from any other heading.
3808.10.............................................  A change to subheading 3808.10 from any other subheading,
                                                       except from subheading 1302.14 or from any insecticide
                                                       classified in Chapter 28 or 29.
3808.20.............................................  A change to subheading 3808.20 from any other subheading,
                                                       except from fungicides classified in Chapter 28 or 29.
3808.30.............................................  A change to subheading 3808.30 from any other subheading,
                                                       except from herbicides, antisprouting products and plant-
                                                       growth regulators classified in Chapter 28 or 29; or
                                                      A change to a mixture of subheading 3808.30 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.
3808.40.............................................  A change to subheading 3808.40 from any other subheading.
3808.90.............................................  A change to subheading 3808.90 from any other subheading,
                                                       except from rodenticides and other pesticides classified
                                                       in Chapter 28 or 29; or
                                                      A change to a mixture of subheading 3808.90 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.
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.
3824.20.............................................  A change to subheading 3824.20 from any other subheading.
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 through 3824.90 from any
                                                       other subheading, 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 Sec.  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.
3920.10-3921.90.....................................  A change to subheading 3920.10 through 3921.90 from any
                                                       other subheading, 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.

[[Page 510]]

 
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
                                                       reversible, 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
                                                       reversible, 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
                                                       reversible, 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 Sec.  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.
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 heading 4203 through 4206 from any other
                                                       heading, including 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
----------------------------------------------------------------------------------------------------------------

[[Page 511]]

 
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; 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 heading 4413 through 4421 from any other
                                                       heading, including 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.
4601.20-4601.99.....................................  A change to subheading 4601.20 through 4601.99 from any
                                                       other subheading, including another heading within that
                                                       group.
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;
                                                      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
                                                       unfolded 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 dimension 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.
4815................................................  A change to heading 4815 from any other heading.
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.
4823.12.............................................  A change to subheading 4823.12 from any other subheading.
4823.19.............................................  A change to subheading 4823.19 from any other subheading.
4823.20-4823.40.....................................  A change to subheading 4823.20 through 4823.40 from any
                                                       other chapter.
4823.60-4823.70.....................................  A change to subheading 4823.60 through 4823.70 from any
                                                       other subheading, including another subheading within
                                                       that group.
4823.90.............................................  A change to a good of subheading 4823.90, other than to
                                                       cards not punched and for punchcard machines, from any
                                                       other subheading; or
                                                      A change to cards not punched and for punchcard machines
                                                       of subheading 4823.90 from any other chapter.
4901-4911...........................................  A change to heading 4901 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 Sec.  102.21.
 
6401-6405...........................................  A change to heading 6401 through 6405 from any other
                                                       heading outside that group, except 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.

[[Page 512]]

 
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
                                                       sweatband).
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.
6811.10.............................................  A change to subheading 6811.10 from any other heading.
6811.20.............................................  A change to subheading 6811.20 from any other heading.
6811.30.............................................  A change to subheading 6811.30 from any other heading.
6811.90.............................................  A change to subheading 6811.90 from any other heading.
6812.50.............................................  A change to subheading 6812.50 from any other subheading.
6812.60-6812.70.....................................  A change to subheading 6812.60 through 6812.70 from any
                                                       other subheading outside that group.
6812.90.............................................  A change to subheading 6812.90 from any other heading; or
                                                      A change to yarn and thread of subheading 6812.90 from any
                                                       other subheading including from any other good also
                                                       classified in subheading 6812.90; or
                                                      A change to cords and string, whether or not plaited of
                                                       subheading 6812.90 from any other subheading or from any
                                                       other good also classified in subheading 6812.90, except
                                                       from yarn and thread of subheading 6812.90; or,
                                                      A change to woven or knitted fabric of subheading 6812.90
                                                       from any other subheading including from any other good
                                                       also classified in subheading 6812.90.
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 Sec.  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.
7012-7018...........................................  A change to heading 7012 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.

[[Page 513]]

 
7020................................................  A change to heading 7020 from any other heading, except
                                                       from heading 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.
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.
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 individually or in
                                                       combination;
                                                      (b) adding attachments or weldments for composite
                                                       construction;
                                                      (c) adding attachments for handling purposes;
                                                      (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

[[Page 514]]

 
                                                      (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.
7321.11-7321.83.....................................  A change to subheading 7321.11 through 7321.83 from any
                                                       other heading; or
                                                      A change to subheading 7321.11 through 7321.83 from
                                                       heading 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 heading 7411 through 7418 from any other
                                                       heading, including another heading within that group.
7419.10-7419.99.....................................  A change to subheading 7419.10 through 7419.99 from any
                                                       other subheading, 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 percent.
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.
7616.10-7616.99.....................................  A change to subheading 7616.10 through 7616.99 from any
                                                       other subheading, including another subheading within
                                                       that group.
7801-7803...........................................  A change to heading 7801 through 7803 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.
7805-7806...........................................  A change to heading 7805 through 7806 from any other
                                                       heading, including another heading within that group; or
                                                      A change to any of the following goods classified in
                                                       heading 7805 through 7806, including from materials also
                                                       classified in heading 7805 through 7806: tubes except
                                                       from pipes; pipes except from tubes; tube or pipe
                                                       fittings except from tubes or pipes; cables/stranded wire/
                                                       plaited bands.
7901-7906...........................................  A change to heading 7901 through 7906 from any other
                                                       heading, including another heading within that group; or

[[Page 515]]

 
                                                      A change to any of the following goods classified in
                                                       heading 7901 through 7906, including from materials also
                                                       classified in heading 7901 through 7906: 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 except 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.
7907................................................  A change to heading 7907 from any other heading.
8001................................................  A change to heading 8001 from any other heading.
8002-8004...........................................  A change to heading 8002 through 8004 from any other
                                                       heading, including another heading within that group; or
                                                      A change to any of the following goods classified in
                                                       heading 8002 through 8004, including from materials also
                                                       classified in heading 8002 through 8004: 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 except from
                                                       plate or strip; strip except from sheets or plate.
8005................................................  A change to heading 8005 from any other heading; or
                                                      A change to foil of heading 8005 from powder or flakes of
                                                       that heading; or
                                                      A change to powder of heading 8005 from foil of that
                                                       heading; or
                                                      A change to flakes of heading 8005 from foil of that
                                                       heading.
8006-8007...........................................  A change to heading 8006 through 8007 from any other
                                                       heading, including another heading within that group; or
                                                      A change to any of the following goods classified in
                                                       heading 8006 through 8007, including from materials also
                                                       classified in heading 8006 through 8007: Tubes except
                                                       from pipes; pipes except from tubes; tube or pipe
                                                       fittings except from tubes or pipes; cables/stranded wire/
                                                       plaited bands.
 
  Chapter 81 Note: Waste and scrap are products of the country in which they are collected.
 
8101.10-8101.95.....................................  A change to subheading 8101.10 through 8101.95 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 8101.95, including from
                                                       materials also classified in subheading 8101.10 through
                                                       8101.95: 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.
8101.96.............................................  A change to subheading 8101.96 from any other subheading,
                                                       except from subheading 8101.95.
8101.99.............................................  A change to subheading 8101.99 from any other subheading;
                                                       or
                                                      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 except from tubes; tube or pipe fittings
                                                       except from tubes or pipes; cables/stranded wire/plaited
                                                       bands.
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 subheading 8103.20 through 8113.00 from any
                                                       other subheading, including another subheading within
                                                       that group; 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 except 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.
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.

[[Page 516]]

 
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.
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 another 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.

[[Page 517]]

 
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 subheading 8418.10 through 8418.91 from any
                                                       other subheading, 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.
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 subheading 8425.11 through 8430.69 from any
                                                       other subheading, including another subheading within
                                                       that group.
8431................................................  A change to heading 8431 from any other heading, except
                                                       from heading 8501 when resulting 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.

[[Page 518]]

 
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.
8442.10-8442.30.....................................  A change to subheading 8442.10 through 8442.30 from any
                                                       other subheading outside that group.
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.
8443.11-8443.60.....................................  A change to subheading 8443.11 through 8443.60 from any
                                                       other subheading outside that group.
8443.90.............................................  A change to subheading 8443.90 from any other heading,
                                                       except from heading 8501 when resulting from a simple
                                                       assembly.
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.
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.
8456.10-8456.99.....................................  A change to subheading 8456.10 through 8456.99 from any
                                                       other heading.
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 another 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.
8469.11-8469.12.....................................  A change to subheading 8469.11 through 8469.12 from any
                                                       other subheading outside that group.
8469.20-8469.30.....................................  A change to subheading 8469.20 through 8469.30 from any
                                                       other subheading outside that group.
8470.10-8471.50.....................................  A change to subheading 8470.10 through 8471.50 from any
                                                       other subheading outside that group, except from heading
                                                       8473; or
                                                      A change to subheading 8470.10 through 8471.50 from any
                                                       other subheading within that group or from heading 8473,
                                                       provided that the change is not the result of a simple
                                                       assembly.
8471.60-8472.90.....................................  A change to printing machines of subheading 8472.90 from
                                                       any other subheading, except from subheading 8443.11
                                                       through 8443.60;
                                                      A change to subheading 8471.60 through 8472.90 from any
                                                       other subheading outside that group, except from
                                                       subheading 8504.40 or heading 8473; or

[[Page 519]]

 
                                                      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
                                                       assembly.
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 printing machines of subheading 8479.89 from
                                                       any other subheading, except from subheading 8443.11
                                                       through 8443.60; or
                                                      A change to subheading 8479.10 through 8479.89 from any
                                                       other subheading, including another subheading within
                                                       that group.
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 subheading 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
                                                       classified 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.
8485................................................  A change to subheading 8485 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.
8505.11-8505.30.....................................  A change to subheading 8505.11 through 8505.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
8505.90.............................................  A change to 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 exceeding 300 cm\3\ 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 exceeding 300 cm\3\ 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 exceeding 300 cm\3\ 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 cm\3\ 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

[[Page 520]]

 
                                                      A change to a primary cell or battery of silver oxide of
                                                       an external volume not exceeding 300 cm\3\ 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 cm\3\ 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 cm\3\ 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 cm\3\ of subheading 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.
8509.10-8509.80.....................................  A change to subheading 8509.10 through 8509.80 from any
                                                       other subheading, 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.
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.
8517.11-8517.80.....................................  A change to subheading 8517.11 through 8517.80 from any
                                                       other subheading outside that group, except from
                                                       subheading 8517.90; or
                                                      A change to subheading 8517.11 through 8517.80 from
                                                       subheading 8517.90, provided that the change is not the
                                                       result of a simple assembly.
8517.90.............................................  A change to subheading 8517.90 from any other heading.
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.
8519.10-8519.40.....................................  A change to subheading 8519.10 through 8519.40 from any
                                                       other subheading, including another subheading within
                                                       that group.
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.
8520.10-8520.20.....................................  A change to subheading 8520.10 through 8520.20 from any
                                                       other subheading, including another subheading within
                                                       that group.
8520.32-8520.33.....................................  A change to subheading 8520.32 through 8520.33 from any
                                                       other subheading outside that group.
8520.39-8520.90.....................................  A change to subheading 8520.39 through 8520.90 from any
                                                       other subheading, including another subheading within
                                                       that group.
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 heading 8523 from any other heading.
8524................................................  A change to heading 8524 from any other heading.
8525.10-8525.20.....................................  A change to subheading 8525.10 through 8525.20 from any
                                                       other subheading outside that group.
8525.30-8525.40.....................................  A change to subheading 8525.30 through 8525.40 from any
                                                       other subheading, including another subheading within
                                                       that group, except a change to video camera recorders of
                                                       subheading 8525.40 from television cameras of subheading
                                                       8525.30.
8526.10-8526.92.....................................  A change to subheading 8526.10 through 8526.92 from any
                                                       other subheading, including another subheading within
                                                       that group.

[[Page 521]]

 
8527.12-8527.13.....................................  A change to subheading 8527.12 through 8527.13 from any
                                                       other subheading outside that group.
8527.19-8527.90.....................................  A change to subheading 8527.19 through 8527.90 from any
                                                       other subheading, including another subheading within
                                                       that group.
8528.12-8528.30.....................................  A change to subheading 8528.12 through 8528.30 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.
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 subheading 8536.10 through 8536.90 from any
                                                       other subheading, 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 heading 8541 through 8542 from any other
                                                       subheading, including another subheading within that
                                                       group; 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.
8543.11-8543.19.....................................  A change to subheading 8543.11 through 8543.19 from any
                                                       other subheading outside that group.
8543.20-8543.30.....................................  A change to subheading 8543.20 through 8543.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
8543.40-8543.89.....................................  A change to subheading 8543.40 through 8543.89 from any
                                                       other subheading outside that group.
8543.90.............................................  A change to subheading 8543.90 from any other heading.
8544.11-8544.70.....................................  A change to subheading 8544.11 through 8544.70 from any
                                                       other subheading, including another subheading within
                                                       that group, except when resulting from a 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
                                                       General Rule of Interpretation 2(a).

[[Page 522]]

 
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
                                                       General 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 subheading
                                                       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.
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 satisfy 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.
8708.31.............................................  A change to subheading 8708.31 from any other heading,
                                                       except to mounted brake linings and pads of subheading
                                                       8708.31 from subheading 6813.10.
8708.39.............................................  A change to subheading 8708.39 from any other heading.
8708.40.............................................  A change to subheading 8708.40 from any other subheading,
                                                       except from subheading 8708.99 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
8708.50.............................................  A change to subheading 8708.50 from any other subheading,
                                                       except from subheading 8708.99 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
8708.60.............................................  A change to subheading 8708.60 from any other subheading.
8708.70.............................................  A change to subheading 8708.70 from any other subheading.
8708.80.............................................  A change to subheading 8708.80 from any other subheading,
                                                       except from subheading 8708.99 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
8708.91.............................................  A change to subheading 8708.91 from any other subheading,
                                                       except from subheading 8708.99 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
8708.92.............................................  A change to subheading 8708.92 from any other subheading.
8708.93.............................................  A change to subheading 8708.93 from any other subheading.
8708.94.............................................  A change to subheading 8708.94 from any other subheading,
                                                       except from subheading 8708.99 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
8708.99.............................................  A change to subheading 8708.99 from any other subheading.
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 subheading 8716.90 except when
                                                       that change is pursuant to General Rule of Interpretation
                                                       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, except from heading 8803 when
                                                       that change is pursuant to General Rule of Interpretation
                                                       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.
9001.20-9001.30.....................................  A change to subheading 9001.20 through 9001.30 from any
                                                       other subheading, including another subheading within
                                                       that group.

[[Page 523]]

 
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
                                                       subheading 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.
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 subheading 9006.10 through 9006.69 from any
                                                       other subheading, 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.
9009.11-9009.30.....................................  A change to subheading 9009.11 through 9009.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
9009.91-9009.99.....................................  A change to subheading 9009.91 through 9009.99 from any
                                                       other heading.
9010.10.............................................  A change to subheading 9010.10 from any other subheading.
9010.41-9010.50.....................................  A change to subheading 9010.41 through 9010.50 from any
                                                       other subheading outside that group.
9010.60.............................................  A change to subheading 9010.60 from any other subheading.
9010.90.............................................  A change to subheading 9010.90 from any other heading.
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 subheading 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 telescopes 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-cardiographs 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 monitoring 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.

[[Page 524]]

 
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.
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
                                                       assembly.
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 subheading 9027.10 through 9027.90 from any
                                                       other subheading, 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.
9030.10-9030.40.....................................  A change to subheading 9030.10 through 9030.40 from any
                                                       other subheading, including another subheading within
                                                       that group.
9030.82-9030.83.....................................  A change to subheading 9030.82 through 9030.83 from any
                                                       other subheading outside that group.
9030.89-9030.90.....................................  A change to subheading 9030.89 through 9030.90 from any
                                                       other subheading outside that group.
9031.10-9031.30.....................................  A change to subheading 9031.10 through 9031.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
9031.41-9031.49.....................................  A change to subheading 9031.41 through 9031.49 from any
                                                       other subheading 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.
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 provisions of Sec.  102.21.
 
9101-9107...........................................  A change to heading 9101 through 9107 from any other
                                                       heading outside that group, except from heading 9108
                                                       through 9110; or
                                                      A change to heading 9101 through 9107 from complete
                                                       movements, unassembled, classified in subheading 9110.11
                                                       or 9110.90, or from rough movements classified in
                                                       subheading 9110.19 or 9110.90.
9108-9109...........................................  A change to heading 9108 through 9109 from any other
                                                       heading outside that group, except from heading 9110; or
                                                      A change to heading 9108 through 9109 from complete
                                                       movements, unassembled, classified in subheading 9110.11
                                                       or 9110.90, or from rough movements classified in
                                                       subheading 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.

[[Page 525]]

 
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 heading 9201 through 9208 from any other
                                                       heading, including 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 assembly 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 Sec.  102.21.
 
9401.10-9401.80.....................................  A change to subheading 9401.10 through 9401.80 from any
                                                       other subheading outside that group, except from
                                                       subheading 9403.10 through 9403.80, and except from
                                                       subheading 9401.90 or 9403.90 when that change is
                                                       pursuant to General Rule of Interpretation 2(a).
9401.90.............................................  A change to subheading 9401.90 from any other heading,
                                                       except from subheading 9403.90.
9402................................................  A change to heading 9402 from any other heading, except
                                                       from subheading 9401.10 through 9401.80 or subheading
                                                       9403.10 through 9403.80, and except from subheading
                                                       9401.90 or 9403.90 when that change is pursuant to
                                                       General Rule of Interpretation 2(a).
9403.10-9403.80.....................................  A change to subheading 9403.10 through 9403.80 from any
                                                       other subheading outside that group, except from
                                                       subheading 9401.10 through 9401.80, and except from
                                                       subheading 9401.90 or 9403.90 when that change is
                                                       pursuant to General Rule of Interpretation 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
                                                       pursuant 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.
9501................................................  A change to heading 9501 from any other chapter, except
                                                       from heading 8714 when that change is pursuant to General
                                                       Rule of Interpretation 2(a).
9502.10.............................................  A change to subheading 9502.10 from any other subheading,
                                                       except from skins for stuffed dolls classified in
                                                       subheading 9502.99.
9502.99.............................................  A change to subheading 9502.99 from any other heading,
                                                       except from subheading 9503.41 through 9503.49.
9503.10-9503.30.....................................  A change to subheading 9503.10 through 9503.30 from any
                                                       other subheading, including another subheading within
                                                       that group.
9503.41-9503.49.....................................  A change to toys classified in subheading 9503.41 through
                                                       9503.49 from any other heading; or
                                                      A change to toys classified in subheading 9503.41 through
                                                       9503.49 from parts and accessories classified in
                                                       subheading 9503.41 through 9503.49; or
                                                      A change to parts and accessories classified in subheading
                                                       9503.41 through 9503.49 from any other heading, except
                                                       from heading 9502, 6111, or 6209.
9503.50-9503.60.....................................  A change to subheading 9503.50 through 9503.60 from any
                                                       other subheading, including another subheading within
                                                       that group.
9503.70-9503.90.....................................  A change to subheading 9503.70 through 9503.90 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.

[[Page 526]]

 
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, subheading 5402.10
                                                       through 5402.49, subheading 5406.10 through 5406.20, or
                                                       heading 5603 or 5404.
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 provisions of Sec.  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.
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 Interpretation
                                                       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.
9614.20.............................................  A change to subheading 9614.20 from any other subheading,
                                                       except to roughly shaped blocks of wood or root of
                                                       subheading 9614.20 from heading 4407.
9614.90.............................................  A change to subheading 9614.90 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]



Sec. 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 shall control the determination of the country of origin 
of imported textile and apparel products for purposes of the Customs 
laws and the administration of quantitative restrictions. The provisions 
of this section shall apply to goods entered, or withdrawn from 
warehouse, for consumption on or after July 1, 1996.
    (b) Definitions. The following terms shall have the meanings 
indicated when used in this section:
    (1) Country of origin. The term country of origin means the country, 
territory, or insular possession in which a

[[Page 527]]

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 determination 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.
    (5) Textile or apparel product. A textile or apparel product is any 
good classifiable in Chapters 50 through 63, Harmonized Tariff Schedule 
of the United States (HTSUS), and any good classifiable 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
6503
6504
6505.90
6601.10-99
7019.19.15
7019.19.28
7019.40-59
8708.21
8804
9113.90.40
9404.90
9502.91
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, territory, or insular possession. Minor attachments and minor 
embellishments (for example, appliques, beads, spangles, embroidery, 
buttons) not appreciably affecting the identity of the good, and minor 
subassemblies (for example, collars, cuffs, plackets, pockets), will not 
affect the status of a good as ``wholly assembled'' in a single country, 
territory, or insular possession.
    (c) General rules. Subject to paragraph (d) of this section, the 
country of origin of a textile or apparel product shall be determined by 
sequential application of paragraphs (c) (1) through (5) of this section 
and, in each case where appropriate to the specific context, by 
application of the additional requirements or conditions of Sec. Sec. 
102.12 through 102.19 of this part.
    (1) The country of origin of a textile or apparel product is the 
single country, 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 determined 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 foreign 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 determined 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 single country, territory, or insular possession in which the 
good was knit; or
    (ii) Except for 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, territory, 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 determined under paragraph (c) (1), (2) or (3) of this 
section, the country of origin of the good is the single country, 
territory, or insular possession in which the

[[Page 528]]

most important assembly or manufacturing process occurred.
    (5) Where the country of origin of a textile or apparel product 
cannot be determined 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 
manufacturing process occurred.
    (d) Treatment of sets. Where a good classifiable in the HTSUS as a 
set includes 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 determined under paragraph (c) of this section, the country of 
origin of each component of the set that is a textile or apparel product 
shall be determined separately under paragraph (c) of this section.
    (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:

------------------------------------------------------------------------
            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.

[[Page 529]]

 
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 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 5208 through 5212 from any
                                heading outside that group, provided
                                that the change is the result of a
                                fabric-making 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, 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.
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 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 5309 through 5311 from any
                                heading outside that group, provided
                                that the change is the result of a
                                fabric-making process.
5401-5406....................  A change to heading 5401 through 5406
                                from any other heading, provided that
                                the change is the result 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 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 5407 through 5408 from any
                                heading outside that group, provided
                                that the change is the result of a
                                fabric-making process.
5501-5502....................  A change to heading 5501 through 5502
                                from any other chapter, provided that
                                the change is the result 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 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 5512 through 5516 from any
                                heading outside that group, provided
                                that the change is the result of a
                                fabric-making 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-making 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 extrusion
                                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 spinning 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 extrusion
                                process; or

[[Page 530]]

 
                               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, 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.
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 heading 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
                                process; or
                               (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 heading 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 process.
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
                                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 5804.21 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 stiffening,
                                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 heading, 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 result of a spinning
                                process.

[[Page 531]]

 
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, permanent 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 result 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, 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 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;
                               (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 spinning 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
                                possession 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 Sec.  102.21(c)(4) or,
                                if the country of origin cannot be
                                determined under that section, by
                                application of Sec.  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, 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 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,

[[Page 532]]

 
                               (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, except 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
                               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,
                                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, 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
                                heading, 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 process.
5911.90......................  (1) For goods of yarn, rope, cord, or
                                braid:

[[Page 533]]

 
                               (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 extrusion
                                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 subheading 5911.90
                                from any heading, including a change
                                from another good of heading 5911,
                                provided that the change is the result
                                of the good being wholly assembled in a
                                single country, territory, or insular
                                possession.
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 heading 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, provided
                                that the knit to shape components are
                                knit in a single country, territory, or
                                insular possession.
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.
6209.10.0000-6209.20.5035....  (1) If the good consists of two or more
                                component parts, a change to an
                                assembled good of subheading
                                6209.10.0000 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 6209.10.0000 through
                                6209.20.5035 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 process.
6209.20.5045-6209.90.9000....  (1) If the good consists of two or more
                                component parts, a change to an
                                assembled good of subheading
                                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.
6210-6212....................  (1) If the good consists of two or more
                                component parts, a change to an
                                assembled good of heading 6210 through
                                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.

[[Page 534]]

 
                               (2) If the good does not consist of two
                                or more component parts, a change to
                                heading 6210 through 6212 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.
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 process.
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 process.
6307.10......................  The country of origin of a good
                                classifiable under subheading 6307.10 is
                                the country, territory, or insular
                                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 insular
                                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 process.
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
                                single 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
                                single 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
                                single 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 heading, 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 heading, 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 result of a fabric-making
                                process.

[[Page 535]]

 
6503.........................  (1) If the good consists of two or more
                                components, a change to heading 6503
                                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) If the good does not consist of two
                                or more components, a change to heading
                                6503 from any other heading, except from
                                heading 5602, and provided that the
                                change is the result of a fabric-making
                                process.
6504.........................  (1) If the good consists of two or more
                                components, a change to heading 6504
                                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) 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 result of a fabric-making
                                process.
6505.90......................  (1) 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.
                               (2) If the good does not consist of two
                                or more components, a change to
                                subheading 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, 5608, 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
                                possession.
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 result of a fabric-making
                                process.
                               (2) For seat belts combined with
                                nontextile components, a change to an
                                assembled good of subheading 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 subheading 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 provided 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
                                possession in which the fabric
                                comprising the good was formed by a
                                fabric-making process.
9502.91......................  A change to an assembled good of
                                subheading 9502.91 from unassembled
                                components, provided that the change is
                                the result of the good being wholly
                                assembled in a single country,
                                territory, or insular possession.
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.
------------------------------------------------------------------------


[[Page 536]]

    (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 and 
9404.90.95, except for goods classified under those headings or 
subheadings as of cotton or of wool or consisting 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 comprising the good was both dyed 
and printed when accompanied by two or more of the following finishing 
operations: bleaching, shrinking, fulling, napping, decating, permanent 
stiffening, weighting, permanent embossing, 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 component parts, the 
country of origin is the country, territory, or insular possession 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 section:
    (A) If the good is knit to shape, the country of origin of the good 
is the country, territory, or insular possession in which a change to 
HTSUS subheading 6117.10 from yarn occurs, provided that the knit to 
shape components are knit in a single country, territory, 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 assembled good 
of HTSUS subheading 6117.10 from unassembled components occurs, provided 
that the change is the result of the good being wholly assembled 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]



Sec. 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 apparel product, as defined 
in Sec. 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 product will be a product of Israel if it is wholly 
the growth, product, or manufacture of Israel. However, a textile or 
apparel product that consists of materials produced or derived from, or 
processed in, another country, or insular possession of the United 
States, in addition 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 
transformation 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 determining 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 identity;
    (ii) Fundamental character; or
    (iii) Commercial use.
    (2) In determining whether merchandise has been subjected to 
substantial manufacturing or processing operations, the following will 
be considered:

[[Page 537]]

    (i) The physical change in the material or article as a result of 
the manufacturing or processing operations in Israel or in Israel and a 
foreign territory or country or insular possession of the U.S.;
    (ii) The time involved in the manufacturing or processing operations 
in Israel or in Israel and a foreign territory or country or insular 
possession of the U.S.;
    (iii) The complexity of the manufacturing or processing operations 
in Israel or in Israel and a foreign territory or country or insular 
possession of the U.S.;
    (iv) The level or degree of skill and/or technology required in the 
manufacturing or processing operations in Israel or in Israel and a 
foreign territory 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 foreign territory or country or insular possession of the 
U.S., compared to its value when imported into the U.S.
    (c) Manufacturing or processing operations. (1) An article or 
material usually will be a product of Israel when it has undergone in 
Israel prior to importation into the United States any of the following:
    (i) Dyeing of fabric 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;
    (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 apparel 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 undergone any of the 
following:
    (i) Simple combining operations, labeling, pressing, cleaning or dry 
cleaning, or packaging operations, or any combination thereof;
    (ii) Cutting to length or width and hemming or overlocking fabrics 
which are readily identifiable as being intended for a particular 
commercial use;
    (iii) Trimming and/or joining together 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 
processes (e.g., washing, drying, and mending) normally incident to the 
assembly process;
    (iv) One or more finishing operations on yarns, fabrics, or other 
textile articles, such as showerproofing, superwashing, bleaching, 
decating, fulling, shrinking, mercerizing, or similar operations; 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 section, the 
inquiry into the origin of the product ends. However, if Israel is 
determined not 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 section, the country of origin of the product will be determined 
under the rules of origin set forth in Sec. 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]



Sec. 102.23  Origin and Manufacturer Identification

    (a) Textile or Apparel Product Manufacturer Identification. All 
entries of textile or apparel products listed in Sec. 102.21(b)(5) must 
identify on CBP Form 3461 (Entry/Immediate Delivery) and CBP Form 7501 
(Entry Summary), and in all electronic data transmissions that require 
identification of the manufacturer, the manufacturer of such products 
through a manufacturer identification code (MID) constructed

[[Page 538]]

from the name and address of the entity performing the origin-conferring 
operations pursuant to Sec. 102.21 or Sec. 102.22, as applicable. This 
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. When a single entry is filed for 
products of more than one manufacturer, the products of each 
manufacturer must be separately identified. Importers must be able to 
demonstrate to CBP their use of reasonable care in determining the 
manufacturer. If an entry filed for such merchandise fails to include 
the MID properly constructed from the name and address of the 
manufacturer, the port director may reject the entry or take other 
appropriate action.
    (b) Incomplete or insufficient information. If the port director is 
unable to determine the country of origin of a textile or apparel 
product, the importer must submit additional information as requested by 
the port director. Release of the product from CBP custody will be 
denied until a determination 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 exportation for 
textile or apparel products listed in Sec. 102.21(b)(5) will be the 
date the vessel or carrier leaves the last port in the country of 
origin, as determined by application of Sec. 102.21 or Sec. 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 license requirements or for statistical purposes.

[CBP Dec. 05-32, 70 FR 58013, Oct. 5, 2005]



Sec. 102.24  Entry of textile or apparel products.

    (a) General. Separate shipments of textile or apparel products, 
including samples, which originate from a country subject to visa or 
export license requirements for exports of textile or apparel 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 procedures set forth in Sec. 141.52 of 
this chapter. Port directors will refuse separate informal entries and 
require a formal entry and visa or export license, as appropriate, for 
all such merchandise. A consignee for purposes of this section is the 
ultimate consignee and does not include a freight forwarder or Customs 
broker not importing for its own account.
    (b) Denial of entry pursuant to directive. 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 
Sec. 102.21 or Sec. 102.22, as applicable, have been met, will be 
denied entry where the factory, producer, manufacturer, or other company 
named in the entry documents for such textile or apparel 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 circumstances, no additional information will be 
accepted or considered by CBP for purposes of determining the 
admissibility of such textile or apparel products.

[CBP Dec. 05-32, 70 FR 58013, Oct. 5, 2005]



Sec. 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 apparel 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 Schedule of the United States, the importer must submit to CBP a 
Certificate of Eligibility covering the products. The Certificate of 
Eligibility must be properly completed and signed by an authorized 
official of the Canadian or Mexican government and must be presented to 
CBP at the time the claim for preferential tariff treatment is filed

[[Page 539]]

under Sec. 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 tariff 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]



      Sec. Appendix to Part 102--Textile and Apparel Manufacturer 
                             Identification

    Rules for Constructing the Manufacturer Identification Code (MID)

    1. Pursuant to Sec. 102.23(a) of this part, all entries of textile 
or apparel products listed in Sec. 102.21(b)(5) must identify on CBP 
Form 3461 (Entry/Immediate Delivery) and CBP Form 7501 (Entry Summary), 
and in all electronic data transmissions that require identification of 
the manufacturer, the manufacturer of such products through a 
manufacturer identification code (MID) constructed from the name and 
address of the entity performing the origin-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 origin 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 appropriate 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 
manufacturer'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 
together, 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 example, 
most textile factories in Macau start with the same words, ``Fabrica de 
Artigos de Vestuario,'' which means ``Factory of Clothing.'' 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 prefixes 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 largest 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 Thousand Century Plaza, Suite 345,'' this would 
yield ``345.'' When commas or hyphens separate numbers, all punctuation 
is to be ignored 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.''

[[Page 540]]

    6. As a general rule, in constructing a MID, all punctuation, such 
as commas, periods, apostrophes, and ampersands, are to be ignored. 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, Birmingham, Alabama 35204; USGRE45BIR
CARDUCCIO AND JONES, 88 Canberra Avenue, 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

[CBP Dec. 05-32, 70 FR 58015, Oct. 5, 2005]



PART 103_AVAILABILITY OF INFORMATION--Table of Contents




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 Federal 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 determination.
103.8 Time extensions.
103.9 Judicial review.
103.10 Fees for services.
103.11 Specific Customs Service records subject to disclosure.
103.12 Exemptions.
103.13 Segregability of records.

Subpart B_Production or Disclosure in Federal, State, Local, and Foreign 
                               Proceedings

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 administrative 
          action.
103.23 Factors in determining whether to disclose information pursuant 
          to a demand.
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 proceeding.

        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, penalties, 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;
    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.



Sec. 103.0  Scope.

    This part governs the production/disclosure of agency-maintained 
documents/information requested pursuant to various disclosure laws and/
or legal processes. Thus, the extent of disclosure of requested 
information may be dependent on whether the request is

[[Page 541]]

pursuant to the provisions of the Freedom 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 administrative and/or legal processes. The regulations for 
this part contain a discussion of applicable fees for the search, 
duplication, review, and other tasks associated with processing 
information requests pursuant to the FOIA, and also provide for the 
appeal of agency decisions and sanctions for the improper withholding 
and/or the untimely release of requested information. As information 
obtained by Customs is derived 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 Department 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 
Department of the Treasury, the latter shall prevail. For purposes of 
this part, the Office of the Chief Counsel is considered a part of the 
United States Customs 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 Documents/Disclosure of Information Under the 
                                  FOIA



Sec. 103.1  Public reading rooms.

    Each office listed below will maintain a public reading room or 
public reading area where the material required to be made available 
under 5 U.S.C. 552(a)(2) and this part may be inspected and copied:

United States Customs Service (Headquarters), 1300 Pennsylvania Avenue, 
NW., Washington, DC 20229
Boston, 10 Causeway Street, Boston, Massachusetts 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, California 90012.


The reading rooms are open to the public 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 accordance with Sec. 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]



Sec. 103.2  Information available to the public.

    (a) General. The Freedom of Information Act, as amended (5 U.S.C. 
552), provides for access to information and records developed or 
maintained by Fedral agencies. Subject only to the exemptions set forth 
in Sec. 103.12, the public generally or any individual member is 
entitled to information or records which are described in paragraph (b) 
of this section and which are in the possession of the United States 
Customs Service. Access to that information 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 published in the Federal Register 
(see Sec. 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 Sec. 103.4).
    (3) Information required to be made available to any member of the 
public upon specific request (see Sec. 103.5).

[[Page 542]]



Sec. 103.3  Publication of information in the Federal Register.

    (a) Requirements. Subject to the application of the exemptions 
described in Sec. 103.12 and subject to the limitations provided in 
paragraph (b) of this section, the United States Customs Service is 
required, by 5 U.S.C. 552(a)(1), to separately state, publish and keep 
current in the Federal Register for the guidance of the public the 
following information:
    (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 decisions.
    (2) A statement of the general course and method by which its 
function are channeled and determined, including the nature and 
requirements of all formal and informal procedures available.
    (3) Rules of procedure, descriptions of forms available and the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports, or examinations.
    (4) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by it.
    (5) Each amendment, revision, or repeal of matters referred to in 
paragraphs (a) (1) through (4) of this section.
    (b) Limitations--(1) Incorporation by reference in the Federal 
Register. Matter reasonably available to an affected class of persons, 
whether published by a private organization or an agency of the United 
States, is published in the Federal Register for purposes of paragraph 
(a) of this section when it is incorporated by reference in the Federal 
Register with the approval of the Director of the Federal Register. Any 
matter which is incorporated 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 Federal 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 incorporation 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 manner to resort 
to, or be adversely affected by, that matter if it is not published 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.



Sec. 103.4  Public inspection and copying.

    (a) In general. Subject to the application of the exemption 
described in Sec. 103.12 the United States Customs Service is required, 
by 5 U.S.C. 552(a)(2) and Sec. Sec. 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, including 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 memorandum, 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 interpretations 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 member of the public.
    (b) Indexes. The United States Customs Service is required by 5 
U.S.C. 552(a)(2) to maintain and make available for public inspection 
and copying those current indexes which identify any item described in 
paragraphs (a) (1) 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

[[Page 543]]

published. Unless the Commissioner determines 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 reading rooms listed in 
Sec. 103.1, at a cost not to exceed the direct cost of duplication.
    (c) Effect of failure to publish or make available. No matter, 
described in paragraphs (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 matter or unless the 
matter has been indexed and either made available for inspection or 
published, as provided by this section. This paragraph applies only to 
matters which have precedential significance and does not apply to 
matters which have been made available pursuant to Sec. 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 contained in any matter described in paragraphs (a) 
(1) through (3) of this section are deleted before making that matter 
available for inspection or publication. However, in every case where 
identifying 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 Sec. 103.12, in an attachment 
to the document from which the identifying 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 described 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 obtain copies of the material. There is 
no fee for access to materials, but a fee is charged in accordance with 
Sec. 103.10 for a copy of any material provided.



Sec. 103.5  Specific requests for records.

    (a) In general. Except with respect to the records made available 
under Sec. Sec. 103.3 and 103.4, but subject to the application of the 
exemptions described in Sec. 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 
procedures of this part, to make the requested records promptly 
available to the requester. A request or an appeal from the initial 
denial of a request which does not comply with the requirements set 
forth in this part is not subject to the time limits of Sec. Sec. 
103.6, 103.7, and 103.8 until amended so as to comply. Nevertheless, 
every reasonable effort will be made to answer each request 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 consideration 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 constituent 
unit of the Department of the Treasury other than the United States 
Customs Service, the appropriate Customs officer shall transfer the 
request to the appropriate constituent unit and notify the requester of 
that transfer. Forwarding a request to another constituent unit is not a 
denial of access within the meaning of these regulations. 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 Sec. Sec. 103.6(b) and 103.8(a) commence upon 
receipt of the request by the Disclosure Law Officer, U.S. Customs 
Service. If the United States Customs Service receives a request for a 
record that is not in the possession or control of any constituent unit 
of the Department of the

[[Page 544]]

Treasury, the appropriate Customs officer 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 unclassified 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 Department or agency that, in the absence of 
timely guidance from it, the United States Customs Service will proceed 
to make its own determination in accordance with this part. If it 
becomes necessary to respond to a requester because of the time limits 
set forth in Sec. Sec. 103.6(b) and 103.8(a) without the advice of the 
other Department or agency, the appropriate Customs officer shall make 
the determination in accordance with this part and advise the requester 
accordingly. If the appropriate Customs officer denies access to the 
record under one of the exemptions set forth in Sec. 103.12, that 
officer shall advise the requester of the right to appeal the denial and 
of the possibility of sending a request for the record directly to the 
originating Department or agency. If a requester appeals from a denial 
to the United States Customs Service, the appropriate Customs officer 
shall ask the originating Department or agency for timely advice on 
whether to release the records. Nevertheless, the ultimate decision on 
the appeal from a denial of access to a record rests with the FOIA 
Appeals Officer, as set forth in Sec. 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 material, 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 denial of the request and 
no appeal rights accrue to the requester.
    (c) Form of request. Although no standard form is prescribed for a 
request, in order to be subject to the provisions of this section and 
Sec. Sec. 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 regulations, 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 paragraph (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 wishes to inspect the records or 
desires to have a copy made and furnished without 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 Sec. 
103.10, or request that such fees be reduced or waived and state the 
justification for such request (see Sec. 103.10(d)).

Where the initial request, rather than stating a firm agreement to pay 
the fee ultimately determined in accordance with Sec. 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 Sec. 103.10(d) and notify the 
requester of the decision. If the officer decides to charge the 
requester for all or part of the fees

[[Page 545]]

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 Request,'' U.S. Customs Service, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229. Requests may be 
delivered personally to the Disclosure Law Officer, U.S. Customs 
Service, Headquarters, Washington, DC.
    (2) Field offices. A person shall request records or information 
maintained in a field office of the United States Customs Service by 
either mailing or personally delivering the request to the director of 
the service port, or if the records concern the Office of 
Investigations, 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 familiar with the subject area of the request to locate 
the records without placing an unreasonably burden upon the United 
States Customs Service. While no specific formula for a reasonable 
description of a record can be established, 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 requested records. If a request does not reasonably 
describe the records being sought, the appropriate Customs officer shall 
ask the requester to refine the request. If necessary a requester may be 
granted a conference with knowledgeable Customs personnel. The 
requirement for a reasonably description is not a device for improperly 
withholding 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 writing, by executing a separate 
contract or otherwise, to pay the fees for search and duplication 
determined to be due in accordance with Sec. 103.10; or
    (3) The fees have been waived in accordance with Sec. 103.10(d); or
    (4) Payment in advance has been received from the requester.

A Customs officer or employee who receives a request for records and a 
separate 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 established, the appropriate Customs officer 
shall acknowledge receipt and inform 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 
appropriate Customs officer shall attempt to identify and locate the 
requested records. With respect to records maintained in computerized 
form, a search for a record includes services functionally analogous to 
searches for records which are maintained in a conventional form. 
However, Customs personnel are not required to tabulate or compile 
information for the purpose of creating a record. Only records in 
existence 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 documents created after receipt of the request 
will be honored.
    (h) ``Request for record'' defined. For purposes of uniformity in 
recordkeeping a ``request for a record'' is defined 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 press release, or 
otherwise, or made available in a public reading room, or which has not 
previously been customarily furnished to requesters, whether

[[Page 546]]

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]



Sec. 103.6  Grant or denial of initial request.

    (a) Officers designated to make initial determinations--(1) Service 
ports. The appropriate 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, respectively, 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 appropriate 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 
relates to records which are maintained in an office which is not within 
a division, the initial determination shall be made by the individual 
designated for that purpose by the Assistant Commissioner having 
responsibility for that office.
    (b) Time limit for initial determinations. The time limit for making 
an initial determination to grant or deny a request for records, 
including the time for notifying the requester of that determination, is 
10 days (excepting Saturdays, Sundays, and legal public holidays) after 
the date of receipt of the request (see Sec. 103.5(f)), unless the 
designated officer invokes an extension pursuant to Sec. 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 requested 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 inspect the record, the appropriate Customs officer who grants the 
request shall send written notice to the requester 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 inspection 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 addition, 
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 allowed 
to remove a record from the inspection room. If, after making 
inspection, 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 Sec. 
103.10.
    (d) Denial of request. The Customs officer who denies a request for 
records (whether in whole or in part) shall mail written notice of the 
denial to the requester. The letter of notificatimn shall contain (1) 
the physical location of the requested records, (2) the applicable 
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 Sec. 
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 Sec. 103.8(a), the Customs 
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 notification 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 administrative appeal. The requester 
may also be invited, in the alternative, to 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

[[Page 547]]

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]



Sec. 103.7  Administrative appeal of initial determination.

    (a) To whom appeals should be submitted. A requester may submit an 
administrative appeal to the FOIA Appeals Officer at Headquarters, 
within 35 days after the date of notification described in Sec. 103.6 
or the date of the letter transmitting the last records released, 
whichever is later. A requester shall mail or personally deliver an 
appeal to the United States Customs Service, 1300 Pennsylvania Avenue, 
NW., Washington, DC 20229.
    (b) Form of appeal. The Administrative appeal shall:
    (1) Be in writing and signed by the requester,
    (2) Have conspicuously printed on the face of the envelope the words 
``Freedom of Information Act Appeal'';
    (3) Reasonably describe, in accordance with Sec. 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 request and the date and control 
number of the letter denying the initial request; 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 appeal shall stamp the date of receipt on the appeal and the 
stamped date is the date of receipt for purposes of the appeal. FOIA 
Appeals Officer at Headquarters, 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 Officer 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 Sec. 
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 review 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 Sec. 103.8(a)), the FOIA Appeals Officer shall send 
written notice of that fact to the appellant. In those circumstances, an 
appellant is entitled to commence an action in a district court as 
provided in Sec. 103.9 despite any continuation in the processing of an 
appeal. However, the appellant may also be invited, in the alternative, 
to agree to a voluntary extension of time in which to decide the appeal. 
A voluntary extension does not waive the right of the appellant to 
ultimately commence an action in a United States district court on the 
appellant'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]



Sec. 103.8  Time extensions.

    (a) Ten-day extension. In unusual circumstances, the Customs officer 
who is responsible for deciding an initial request or an appeal may 
extend the time limitations set in Sec. Sec. 103.6 and 103.7 after 
written notice to the requester or appellant. This notice must state the 
reason for the extension and the date on which the determination is 
expected to be dispatched. Any extension or extensions of time are 
limited to a cumulative total of not more than 10 additional working 
days. (For example, if an extension pursuant to this paragraph 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 determination. 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 only to the extent reasonably necessary to 
properly respond to a request. As used in this paragraph, ``unusual

[[Page 548]]

circumstances'' means at least one of the following:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments in buildings 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 
voluminous 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 Treasury, or within 
offices of the United States Customs Service (other than the legal staff 
or Office of Congressional & Public Affairs) having substantial subject-
matter interest therein. Consultations with personnel of the Department 
of Justice concerned with requests for records under the Freedom of 
Information 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 specified in 
Sec. Sec. 103.6 and 103.7 and the requester commences an action under 
Sec. 103.9, the court in which the suit was initiated may retain 
jurisdiction and allow the United States Customs Service additional time 
to review its records, if the Customs Service shows the existence of 
exceptional circumstances 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]



Sec. 103.9  Judicial review.

    (a) Failure to comply with time limitations. If the United States 
Customs Service fails to comply with the time limitations specified in 
Sec. Sec. 103.6, 103.7 or Sec. 103.8, a requester is considered to 
have exhausted the administrative remedies with respect to the request.
    (b) Procedure of initiating judicial review. If a request for 
records is denied upon appeal pursuant to Sec. 103.7, or if no 
determination is made within the 10-day or 20-day periods specified in 
Sec. Sec. 103.6 and 103.7, respectively, together with an extension 
pursuant to Sec. 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 District 
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 Service, 1300 Pennsylvania Avenue, NW., Washington, DC 20229 is 
the officer designated to receive any service of process.
    (c) Proceeding against officer or employee. Under 5 U.S.C. 
552(a)(4)(F), the Special Counsel, Merit Systems Protection 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 disciplinary action is 
warranted against that officer or employee. The Special Counsel, after 
investigation and consideration of the evidence submitted, submits its 
findings and recommendations 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 
representative 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]



Sec. 103.10  Fees for services.

    (a) In general. (1) The fees prescribed in this section are for 
search and duplication and under no circumstances is there a fee for 
determining whether an exemption can or should be asserted, for deleting 
exempt matter being withheld from records to be furnished, or for 
monitoring a requester's inspection of records made available in this 
manner.

[[Page 549]]

    (2) Customs publications which are available for sale through the 
Government Printing Office are on the shelves of the reading rooms and 
similar public inspection facilities, but those publications 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 facilities 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 accordance with the schedule contained in paragraph (g) 
of this section for services rendered in responding to requests for 
records.
    (c) Services performed without charge--(1) Certain classes of 
records. The Commissioner of Customs or any of the Commissioner's 
designees may determine, 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 reduced 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 organizations, 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 reduction of fees must be in writing. The appropriate 
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 satisfaction 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 furnishing the information primarily benefits 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 paragraph (d)(2) of this section by the FOIA Appeals 
Officer. An appeal shall be in writing and mailed to the FOIA Appeals 
Officer within 35 days of the denial of the initial request for waiver 
or reduction. An appeal under this paragraph is entitled to a prompt 
decision.
    (e) Avoidance of unexpected fees. In order to protect a requester 
from unexpected 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 
estimated to exceed that limit, or if the requester 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 officer shall:
    (1) Inform the requester of the estimated 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 running 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 into a contract for the payment of actual costs, as determined 
in accordance

[[Page 550]]

with paragraph (g) of this section, which contract may provide for 
prepayment 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 designee may set an 
appropriate fee for any service not described below. These extraordinary 
fees are imposed and collected pursuant to 31 U.S.C. 483a, subject to 
the constraints imposed by 5 U.S.C. 552(a)(4)(A).
    (1) Duplication. (i) The charge for photocopies per page up to 8\1/
2\x14 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 actual cost of duplication charged by the private 
contractor. No fee is charged where the requester furnishes the supplies 
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 require duplication for copies to be furnished, 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 locating 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 extracting the stored information in the 
format in which it is normally produced. This actual cost of extracting 
information is based on computer time and supplies necessary to comply 
with the request.
    (4) Searches requiring travel or transportation. 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]



Sec. 103.11  Specific Customs Service records subject to disclosure.

    (a) Administrative staff manuals and instructions. Except as 
exempted by Sec. 103.12, all administrative staff manuals and 
instructions to staff that affect any member of the public, and indexes 
thereto, are available for public inspection and copying in the Customs 
Service public reference facilities (see Sec. 103.1), including the 
following:

Forms Catalog. Customs and other agency forms currently available from 
the Customs Service.
Legal Precedent Retrieval System. The directory is a listing by selected 
keywords of all classification rulings issued since early 1974 that 
affect a substantial volume of imports or transactions or are of general 
interest 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 Information Exchange and the Office of Regulations and Rulings. 
The directory also contains limited information on decisions and rulings 
pertaining to entry, value, drawback, marking, country of origin, and 
vessel repairs. The directory is maintained on microfiche and is 
continually updated. Duplicate microfiche are available for 15[cent] 
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 relating 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 circulars, manuals, legal rulings, decisions, and other 
Customs documents.
Operational Handbook of Other Agency Requirements Enforced by the U.S. 
Customs Service.
Customs Valuation under the Trade Agreements Act of 1979.
Fundamentals of Customs Tariff and Trade Operations Handbook. Material 
relating to the duties and responsibilities of import specialists: entry 
of merchandise, restrictions, prohibitions and other agency 
requirements, special trade programs,

[[Page 551]]

invoicing and related documentation, examination of merchandise, Customs 
valuation, tariff classification, liquidation, protests, and 
miscellaneous import specialist concerns.

    (b) Other Customs records. In general, all other documents issued by 
the Secretary of the Treasury, the Commissioner 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 Sec. 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 accordance with Sec. 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 include foreign governments) in response to a published notice of 
proposed rulemaking and of proposed changes in tariff classification, 
unless the submitter states that the information is privileged or 
confidential, giving reasons therefor, and the Commissioner of Customs 
agrees that the information contained therein is exempt from disclosure 
under Sec. 103.12;
    (ii) Advisory committees on Customs matters;
    (iii) Rosters of licensed customhouse brokers;
    (iv) Names of individual licensed customhouse brokers;
    (v) Names and titles of all Customs personnel;
    (vi) Performance awards;
    (vii) Suggestion awards;
    (viii) The administration of and decisions 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, articles, 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 pursuant 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 section 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 merchandise produced by convict, 
forced, or indentured labor (19 U.S.C. 1307);
    (vi) The entry or valuation of merchandise;
    (vii) Liens in cases arising under section 564, Tariff Act of 1930, 
as amended (19 U.S.C. 1564);
    (viii) Bills of lading, carriers' certificates, or rights in respect 
of merchandise, 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, copyrights, patents, and related 
matters;
    (x) Country of origin marking requirements 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 prohibited entry or subject to 
restrictions and controls on entry;
    (xii) Entry of articles admitted temporarily free of duty under bond 
as provided 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 Sec. 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 foreign vessels in waters under 
the jurisdiction of the United States;
    (xvii) Salvage operations by vessels within the territorial waters 
of the United States (46 U.S.C. 316);
    (xviii) The assessment and collection of duties on equipment or 
repairs of vessels or aircraft under section 466,

[[Page 552]]

Tariff Act of 1930, as amended (19 U.S.C. 1466), and the remission or 
refund of such duties;
    (xix) Requirements for entry, clearance, 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 Customs bonded warehouses and control 
of the merchandise stored therein;
    (xxii) Use of protective Customs seals and labels; and
    (xxiii) The itineraries of foreign vessels 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 
Sec. 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]



Sec. 103.12  Exemptions.

    Pursuant to 5 U.S.C. 552(b), the disclosure requirements of 5 U.S.C. 
552(a) are not applicable to U.S. Customs Service records which relate 
to the following:
    (a) Matters kept secret pursuant to Executive order. Matters 
specifically authorized under criteria established by an Executive order 
to be kept secret in the interest of national defense or foreign policy 
and which are, in fact, properly classified pursuant to such Executive 
order (see 31 CFR part 2).
    (b) Certain internal rules and procedures. Information relating 
solely to the internal personnel rules and practices of an agency.
    (c) Matters exempt from disclosure by statute. Information 
specifically exempted from disclosure by statute (other than 5 U.S.C. 
552b), if the statute (1) requires that the matters be withheld 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 information. Trade secrets and 
commercial or financial information obtained from any person which is 
privileged or confidential.
    (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 private party in litigation with the agency.
    (f) Material involving personal privacy. Personnel and medical files 
and similar files the disclosure of which would constitute 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 
proceedings;
    (2) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (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 foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement 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 
prosecutions, or would disclose guidelines for law enforcement 
investigations or prosecutions if such disclosure could reasonably be 
expected to risk circumvention of the law; or
    (6) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (h) Certain pending criminal investigations. Whenever a request is 
made which involves access to records described in paragraph (g)(1) of 
this section and)--
    (1) The investigation or proceeding involves a possible violation of 
criminal law; and
    (2) There is reason to believe that the subject of the investigation 
or proceeding is not aware of its pendency,

[[Page 553]]

and disclosure of the existence of the records could reasonably be 
expected to interfere with enforcement proceedings, Customs may, during 
only such times as that circumstance continues, treat the records as not 
subject to the requirements of this part.
    (i) Certain informant records. Whenever informant records maintained 
by Customs under an informant's name or personal identifier are 
requested by a third party according to the informant's name or personal 
identifier, Customs may treat the records as not subject to the 
requirements of this part unless the informant's status as an informant 
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]



Sec. 103.13  Segregability of records.

    (a) Reasonably segregable portions. Where the record requested 
contains information which is exempt from disclosure under 5 U.S.C. 
552(b) and Sec. 103.12, the reasonably segregable portions of the 
record shall be made available to the requester. For purposes of this 
section, the term ``reasonably segregable portions'' means those 
portions of the record: (1) Which are not exempt from disclosure by 5 
U.S.C. 552(b) and Sec. 103.12; (2) which, after deletion of the exempt 
material, still convey meaningful and nonmisleading information; and (3) 
from which it can reasonably be assumed that a skillful and 
knowledgeable person could not reconstruct the exempt portions.
    (b) Petitions by American manufacturers, producers, or wholesalers. 
Identifying data is not to be deleted from petitions filed by American 
manufacturers, producers, and wholesalers pursuant to section 516, 
Tariff Act of 1930, as amended (19 U.S.C. 1516). See part 175 of this 
chapter.



Subpart B_Production or Disclosure in Federal, State, Local, and Foreign 
                               Proceedings

    Source: T.D. 96-36, 61 FR 19838, May 3, 1996, unless otherwise 
noted.



Sec. 103.21  Purpose and definitions.

    (a) Purpose. (1) This subpart sets forth procedures to be followed 
with respect to the production or disclosure of any documents contained 
in Customs files, any information relating to material contained in 
Customs files, any testimony by a Customs employee, or any information 
acquired by any person as part of that person's performance of official 
duties as a Customs employee or because of that person's official 
status, hereinafter collectively referred to as ``information'', in all 
federal, state, local, and foreign proceedings when a subpoena, notice 
of deposition (either upon oral examination or written interrogatory), 
order, or demand, hereinafter collectively referred to as a ``demand'', 
of a court, administrative agency, or other authority 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 instructed to follow 
internal Customs policies and procedures.
    (b) Customs employee. For purposes of this subpart, the term 
``Customs employee'' 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 knowledge of, any Customs employee while acting in his/her 
official capacity, or because of his/her official status, with respect 
to the administration or enforcement of laws administered or enforced by 
the Customs Service.
    (d) Originating component. For purposes of this subpart, the term 
``originating component'' references the Customs official, or the 
official's designee, in charge of the office responsible for the 
collection, assembly, or other preparation of the information demanded 
or that, at the time the person whose testimony is demanded acquired the 
information in question, employs or employed the person whose testimony 
is demanded.

[[Page 554]]

    (e) Disclosure to government law enforcement or regulatory agencies. 
Nothing in this subpart is intended to impede the appropriate disclosure 
of information 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. Nothing in this subpart is intended to restrict the disclosure of 
Customs information requested by the Court of International Trade, U.S. 
Attorneys, or attorneys 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 information. 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 follow procedures. The failure of 
any Customs employee to follow the procedures specified in this subpart 
neither creates nor confers any rights, privileges, or benefits on any 
person or party.
    (i) In camera inspection of records. Nothing in this subpart 
authorizes Customs personnel to withhold records from a federal court, 
whether civil or criminal, pursuant to its order for such records 
appropriately made, for purposes of in camera inspection of the records 
to determine the propriety of claimed exemption(s) from disclosure.



Sec. 103.22  Procedure in the event of a demand for Customs information in any federal, state, or local civil proceeding or administrative action.

    (a) General prohibition against disclosure. 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 information, furnish Customs documents or testimony 
as to any material 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 person's 
official duties (or because of that person'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 
employee 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 documents or testimony by a Customs 
employee shall be limited to the scope of the demand as summarized in 
such affidavit or statement. The Chief Counsel may, upon request and for 
good cause shown, waive the requirements of this paragraph.
    (d) Requesting party's notification requirement. The demand for 
Customs information, 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 production of the documents or the taking of 
testimony.
    (e) Counsel notification to originating component. Upon receipt of a 
proper demand for Customs information, one which complies with the 
provisions of paragraph (c) of this section, if the Chief Counsel 
believes that it will comply with any part of the demand, it will

[[Page 555]]

immediately advise the originating component.
    (f) Conditions for authorization of disclosure. The Chief Counsel, 
subject to the provisions of paragraph (h) of this section, may 
authorize the production of Customs documents or the appearance and 
testimony of a Customs employee if:
    (1) Production of the demanded documents or testimony, in the 
judgment of the Chief Counsel, are appropriate under the factors 
specified in Sec. 103.23(a) of this subpart; and
    (2) None of the factors specified in Sec. 103.23(b) of this subpart 
exist with respect to the demanded documents or testimony.
    (g) Limitations on the scope of authorized disclosure. (1) The Chief 
Counsel shall authorize the disclosure of Customs information by a 
Customs employee without further authorization from Customs officials 
whenever possible, provided that:
    (i) If necessary, Counsel has consulted with the originating 
component regarding disclosure of the information demanded;
    (ii) There is no objection from the originating component to the 
disclosure 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 Sec. 103.23 of 
this part.
    (2) In the case of an objection by the originating component, the 
Chief Counsel shall make the disclosure determination.
    (h) Disclosure of commercial information. In the case of a demand 
for commercial information or commercial documents concerning 
importations or exportations, the Chief Counsel shall obtain the 
authorization of the Assistant Commissioner (Field Operations) or his/
her designee prior to the Chief Counsel authorizing the production/
disclosure of such documents/information.



Sec. 103.23  Factors in determining whether to disclose information pursuant to a demand.

    (a) General considerations. In authorizing disclosures pursuant to a 
proper demand for Customs information, one which complies with the 
provisions of Sec. 103.22(c), the Chief Counsel should consider the 
following factors:
    (1) Whether the disclosure would be appropriate under the relevant 
substantive law concerning privilege;
    (2) Whether the disclosure would be appropriate under the rules of 
procedure governing the case or matter in which the demand arose; and,
    (3) Whether the requesting party has demonstrated that the 
information requested is:
    (i) Relevant and material to the action pending, based on copies of 
the summons and complaint that are required to be attached to the 
subpoena duces tecum or other demand;
    (ii) Genuinely necessary to the proceeding, 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 particularity.
    (4) Whether consultation with the originating component requires 
that the Chief Counsel make a separate determination as to the 
disclosure of the information requested.
    (b) Circumstances where disclosure will not be made. Among the 
demands in response 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 procedure, 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 confidential source or informant;
    (5) Disclosure would reveal investigatory records compiled for law 
enforcement purposes, interfere with enforcement proceedings, or 
disclose investigative techniques and procedures;

[[Page 556]]

    (6) Disclosure would improperly reveal confidential commercial 
information without the owner's consent (e.g., entry information);
    (7) Disclosure relates to documents which were produced by another 
agency 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 discovery.



Sec. 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.

    If response to a demand is required before the instructions from the 
Chief Counsel are received, the U.S. Attorney, his/her assistant, or 
other appropriate legal representative shall be requested 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 demand pending 
receipt of the requested instructions.



Sec. 103.25  Procedure in the event of an adverse ruling.

    If the court or other authority declines to stay the demand in 
response to a request made in accordance with Sec. 103.24 pending 
receipt of instructions, or rules that the demand must be complied with 
irrespective of instructions rendered in accordance with Sec. Sec. 
103.22, 103.23, 103.26, or 103.27 of this subpart not to produce the 
documents or disclose the information sought, the Customs 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).



Sec. 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 receipt of demands of state or local authorities, and 
at the expense of the State, authorize employees under their supervision 
to attend trials and administrative hearings on behalf of the government 
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 documents or information, 
authorization from the Chief Counsel is required as under Sec. 103.22 
of this subpart. No disclosure of information under this section shall 
be made if any of the factors listed in Sec. 103.23(b) of this subpart 
are present.



Sec. 103.27  Procedure in the event of a demand for Customs information in a foreign proceeding.

    (a) Required prior approval for disclosure. 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 material 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 
person'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 section.
    (b) Employee notification to Counsel. Whenever a demand in a foreign 
proceeding is made upon a Customs employee concerning pre-clearance 
activities within the territory of the foreign country, that employee 
shall immediately notify the appropriate Associate Chief Counsel 
responsible for the

[[Page 557]]

pre-clearance location. All other demands 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 demand for Customs information, one which complies with the 
provisions of Sec. 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 disclosure. The Chief Counsel, 
subject to the terms of paragraph (e) of this section, may authorize the 
disclosure of Customs documents or the appearance and testimony of a 
Customs employee if:
    (1) Production of the demanded documents or testimony, in the 
judgment of the Chief Counsel, are appropriate under the factors 
specified in Sec. 103.23(a) of this subpart; and
    (2) None of the factors specified in Sec. 103.23(b) of this subpart 
exist with respect to the demanded documents or testimony.
    (e) Limitations on the scope of authorized disclosure. (1) The Chief 
Counsel shall authorize the disclosure of Customs information by a 
Customs employee without further authorization from Customs officials 
whenever possible, provided that:
    (i) If necessary, Counsel has consulted with the originating 
component regarding disclosure of the information demanded;
    (ii) There is no objection from the originating component to the 
disclosure 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 Sec. 103.23 of 
this part.
    (2) In the case of an objection by the originating component, the 
Chief Counsel shall make the disclosure determination.



        Subpart C_Other Information Subject to Restricted Access



Sec. 103.31  Information on vessel manifests and summary statistical reports.

    (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 examine vessel 
manifests and summary statistical reports of imports and exports and to 
copy therefrom for publication information and data subject to the 
following rules:
    (1) Of the information and data appearing on outward manifests, only 
the name and address of the shipper, general 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 information, such as the names of the 
consignees, 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 notations from inward or outward 
manifests shall be submitted for examination 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 Customs, information from vessel manifests, subject to the 
rules set forth in

[[Page 558]]

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 consignment 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 notations from them except with reference to the particular 
importation or exportation 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 authorized employee, attorney or 
official of the importer or consignee, must submit a certification (as 
described in paragraph (d)(1)(ii) of this section) claiming confidential 
treatment of its name and address. The name and address of an importer 
or consignee includes marks and numbers which reveal the name and 
address of the importer or consignee. An importer or consignee may file 
a certification requesting confidentiality for all its shippers.
    (ii) There is no prescribed format for a certification. However, the 
certification 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 addresses would likely cause substantial 
harm to the competitive position of the importer or consignee.
    (iii) The certification must be submitted to the Disclosure Law 
Officer, Headquarters, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., Washington, 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 certification. Information so certified may be 
copied, but not published, by the press during the effective period of 
the certification. An importer or consignee shall be given written 
notification by Customs of the receipt of its certification of 
confidentiality.
    (2) Outward manifest. If a shipper wishes to request confidential 
treatment 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 submitted to the Disclosure Law 
Officer, Headquarters, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., Washington, 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 inward and outward manifests or shall make any improper use of 
any information or data obtained from such manifests or other papers 
filed in the customhouse, both he and the party or publication which he 
represents shall thereafter be denied access to such papers.
    (e) Availability of manifest data on magnetic tapes--(1) 
Availability. Manifest data acquired from the Automated Manifest System 
(AMS) is available to interested members of the public on magnetic tape. 
This data, compiled daily, will contain all manifest transactions made 
on the nationwide system within the last 24 hour period. Data for which 
parties have requested confidential treatment in accordance with 
paragraph (d) of this section will not be included on the tapes. These 
tapes may be purchased at the government's production cost. Tapes are 
available for specific days or on a subscription basis.

[[Page 559]]

    (2) Requests and subscriptions. Requests for tapes must be in 
writing and submitted to: U.S. Customs Service, Accounting Services--
Accounts Receivable, P.O. Box 68907, Indianapolis, Indiana 46278. 
Requests must include a check to cover the cost of the tapes requested. 
Actual costs and other specific information should be ascertained by 
contacting the Accounting Services--Accounts Receivable at (317) 298-
1330. Bills for subscriptions will be issued monthly, with the first 
month's fee due in advance. Requested tapes will be mailed from the 
Customs Data 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 Customs in advance. Subscriptions may 
be canceled provided Customs receives written notice at least 10 days 
prior to the end of the month. The U.S. Customs Data Center must be 
notified in writing within seven days of technical problems with tapes 
or non-receipt of tapes in order to receive a replacement or credit 
towards future tape purchases. Refunds will not be provided. Information 
regarding the technical specifications of the tapes, problem tapes or 
the non-receipt of tapes should be directed to U.S. Customs Data Center, 
on (703) 644-5200.
    (3) Data elements. The following are the data elements from the AMS 
manifest which will be provided to the public via magnetic tape:

    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\
---------------------------------------------------------------------------

    \1\ Designates data element which will be deleted where 
confidentiality has been requested.
---------------------------------------------------------------------------

    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]



Sec. 103.31a  Advance electronic information for air, truck, and rail cargo.

    Advance cargo information that is electronically presented to 
Customs and Border Protection (CBP) for inbound or outbound air, rail, 
or truck cargo in accordance with Sec. 122.48a, 123.91, 123.92, or 
192.14 of this chapter, is per se exempt from disclosure under Sec. 
103.12(d), unless CBP receives a specific request for such records 
pursuant to Sec. 103.5, and the owner of the information expressly 
agrees in writing to its release.

[CBP Dec. 03-32, 68 FR 68169, Dec. 5, 2003]



Sec. 103.32  Information concerning fines, penalties, and forfeitures cases.

    Except as otherwise provided in these regulations or in other 
directives (including those published as Treasury Decisions), port 
directors and other Customs officers shall refrain from disclosing facts 
concerning seizures, investigations, and other pending cases until 
Customs action is completed. After the penalty proceeding is closed by 
payment of the claim amount, payment of a mitigated amount, or judicial 
action, the identity of the violator, the section of the law violated, 
the amount of penalty assessed, loss of revenue, mitigated amount (if 
applicable), and the amount of money paid may be disclosed to the public 
by the appropriate port director. Public disclosure of any other item of 
information concerning such cases, whether open or closed, shall only be 
made in conformance with the procedures provided in Sec. 103.5.

[T.D. 81-168, 46 FR 32565, June 24, 1981. Redesignated by T.D. 96-36, 61 
FR 19838, May 3, 1996]

[[Page 560]]



Sec. 103.33  Release of information to foreign agencies.

    (a) The Commissioner or his designee may authorize Customs officers 
to exchange information or documents with foreign customs and law 
enforcement agencies if the Commissioner or his designee reasonably 
believes the exchange of information is necessary to--
    (1) Ensure compliance with any law or regulation enforced or 
administered by Customs;
    (2) Administer or enforce multilateral 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 
enforcement agency, or in relation to a proceeding 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 enforcement agency that has 
violated any assurances described in paragraph (b)(1) of this section.

[T.D. 86-196, 51 FR 40792, Nov. 10, 1986. Redesignated by T.D. 96-36, 61 
FR 19838, May 3, 1996]



Sec. 103.34  Sanctions for improper actions by Customs officers or employees.

    (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 acquired by 
a Customs officer or employee in an official capacity to any person not 
authorized by law or regulations 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 employees are set forth in Sec. 103.9(c).

[T.D. 81-168, 46 FR 32565, June 24, 1981. Redesignated by T.D. 96-36, 61 
FR 19838, May 3, 1996]



Sec. 103.35  Confidential commercial information; 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 provided to 
CBP by a business submitter will be treated as privileged or 
confidential and will not be disclosed pursuant to a Freedom of 
Information Act (FOIA) request or otherwise made known in any manner 
except as provided in this section.
    (b) Notice to business submitters of FOIA requests for disclosure. 
Except as provided in paragraph (b)(2) of this section, CBP will provide 
business submitters with prompt written notice of receipt of FOIA 
requests or appeals that encompass their commercial information. The 
written notice will describe either the exact nature of the commercial 
information requested, or enclose copies of the records or those 
portions of the records that contain the commercial information. The 
written notice also will advise the business submitter of its right to 
file a disclosure objection statement as provided under paragraph (c)(1) 
of this section. CBP will provide notice to business submitters 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, unless 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 notice of receipt of a FOIA request or appeal whenever:
    (i) The business submitter has in good faith designated the 
information

[[Page 561]]

as commercially- or financially-sensitive information. The business 
submitter's claim of confidentiality should be supported by a statement 
by an authorized representative of the business entity providing 
specific justification that the information in question is considered 
confidential commercial or financial information and that the 
information has not been disclosed to the public; or
    (ii) CBP has reason to believe that disclosure of the commercial 
information could reasonably be expected to cause substantial 
competitive harm.
    (2) When notice is not required. The notice requirements of this 
section will not apply if:
    (i) CBP determines that the commercial 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 object to disclosure. A business submitter receiving 
written notice from CBP of receipt of a FOIA request or appeal 
encompassing its commercial information may object to any disclosure of 
the commercial information by providing 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 exemption 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 confidential. The disclosure objection information provided by a 
person pursuant to this paragraph may be subject to disclosure under the 
FOIA.
    (2) Notice to FOIA requester. When notice 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 object to any disclosure of the requested commercial 
information. The requester will be further advised that a delay in 
responding to the request may be considered a denial of access to 
records and that the requester may proceed with an administrative appeal 
or seek judicial review, if appropriate. The notice will also invite the 
FOIA requester to agree to a voluntary extension(s) of time so that CBP 
may review the business submitter's disclosure objection statement.
    (d) Notice of intent to disclose. CBP will consider carefully a 
business submitter's objections and specific grounds for nondisclosure 
prior to determining whether to disclose commercial information. 
Whenever CBP decides to disclose the requested commercial 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 
disclosure 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 notice 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 (b)(1) of this section, CBP will promptly notify the business 
submitter in writing.

[CBP Dec. 03-02, 68 FR 47454, Aug. 11, 2003]



PART 111_CUSTOMS BROKERS--Table of Contents




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.

[[Page 562]]

             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 paying monies.
111.30 Notification of change of business address, organization, name, 
          or location of business records; status report; termination 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 employment.
111.39 Advice to client.
111.40 Protests.
111.41 Endorsement of checks.
111.42 Relations with person who is notoriously disreputable or whose 
          license is under suspension, canceled ``with prejudice,'' 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 Commissioner.
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 officer.
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.

    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.



Sec. 111.0  Scope.

    This part sets forth regulations providing for the licensing of, and 
granting of permits to, persons desiring to transact customs business as 
customs brokers, including the qualifications required of applicants, 
and the procedures for applying for licenses and permits. This part also 
prescribes the duties and responsibilities of brokers, the

[[Page 563]]

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



Sec. 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 Protection, Washington, DC.
    Broker. ``Broker'' means a customs broker.
    Corporate compliance activity. ``Corporate compliance activity'' 
means activity 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 extend to the 
actual preparation or filing of the documents or their electronic 
equivalents. For purposes of this definition, a ``business entity'' is 
an entity that is registered or otherwise on record with an appropriate 
governmental authority for business licensing, taxation, or other legal 
purposes, and the term ``related business entity or entities'' 
encompasses a business entity that has more than a 50 percent ownership 
interest in another business entity, a business entity in which another 
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 transactions with CBP concerning the entry and admissibility 
of merchandise, its classification and valuation, the payment of duties, 
taxes, or other charges assessed or collected by CBP on merchandise 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 furtherance 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 received for transmission to CBP and 
does not include a corporate compliance activity.
    District. ``District'' means the geographic 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 person who meets the common law 
definition of employee and is in the service of a customs broker.
    Freight forwarder. ``Freight forwarder'' 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 
corporation, means a person who has been elected, appointed, or 
designated as an officer of an association or corporation in accordance 
with statute and the articles of incorporation, articles of agreement, 
charter, or bylaws of the association or corporation.
    Permit. ``Permit'' means any permit issued to a broker under Sec. 
111.19.
    Person. ``Person'' includes individuals, partnerships, associations, 
and corporations.
    Records. ``Records'' means documents, data and information referred 
to in, and required to be made or maintained under, this part and any 
other records, as defined in Sec. 163.1(a) of this chapter, that are 
required to be maintained by a broker under part 163 of this chapter.
    Region. ``Region'' means the geographic area covered by a waiver 
issued pursuant to Sec. 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

[[Page 564]]

a broker, including actions necessary to ensure that an employee of a 
broker provides substantially the same quality of service in handling 
customs transactions that the broker is required to provide. While the 
determination 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 include, but are not 
limited to: The training required of employees of the broker; the 
issuance of written instructions 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 Tariff Schedule of the 
United States, and CBP issuances; the availability of an individually 
licensed broker for necessary consultation with employees of the broker; 
the frequency of supervisory visits of an individually licensed broker 
to another office of the broker that does not have a resident 
individually licensed broker; the frequency of audits and reviews by an 
individually licensed broker of the customs transactions handled by 
employees of the broker; the extent to which the individually 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 representative 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]



Sec. 111.2  License and district permit required.

    (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 customs business solely 
on his own account and in no sense on behalf of another 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 executed a power of attorney for that purpose. The broker is not 
required to file the power of attorney with the port director, but must 
provide proof of its existence to Customs upon request; or
    (2) Authorized to transact other business. The broker has filed with 
the port director a statement identifying the employee as authorized to 
transact customs business on his behalf. However, no statement will be 
necessary when the broker is transacting customs 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 on the part of the employee in the transaction of customs 
business, and the broker will be held strictly responsible for the acts 
or omissions of the employee within the scope of his employment 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 paragraph (a)(2)(ii) of this section is withdrawn. 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 licensed as a 
broker.

[[Page 565]]

    (iv) Transportation in bond. Any carrier bringing merchandise to the 
port of arrival or any bonded carrier transporting merchandise for 
another may make entry for that merchandise for transportation in bond 
without being a broker.
    (v) Noncommercial shipments. An individual entering noncommercial 
merchandise for another party is not required to be a broker, provided 
that the requirements of Sec. 141.33 of this chapter are met.
    (vi) Foreign trade zone activities. A foreign 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 merchandise 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 Sec. 111.19) 
is required for each district in which a broker conducts customs 
business.
    (2) Exceptions to district permit rule--(i) National permits. A 
national permit issued to a broker under Sec. 111.19(f) will constitute 
sufficient permit authority for the broker to act in any of the 
following circumstances:
    (A) Employee working in client's facility (employee implant). When a 
broker places an employee in the facility of a client for whom the 
broker is conducting customs business at one or more other locations 
covered by a district permit issued to the broker, and provided that the 
employee's activities are limited to customs business in support 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 electronic 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) NCAP participation. A broker who is a participant in the 
National Customs Automation Program (NCAP) may electronically file 
entries for merchandise from a remote location and may electronically 
transact other customs business that is provided for and operational 
under the NCAP even though the entry is filed, or the other customs 
business is transacted, within a district for which the broker does not 
have a district permit; and
    (D) Representations after entry summary acceptance. After the entry 
summary 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 within which those representations are made, 
provided that, if requested by Customs, the broker submits appropriate 
evidence of his right to represent the client on the matter at issue.
    (ii) Filing of drawback claims. A broker granted a permit for one 
district may file drawback claims manually or electronically at the 
drawback office that has been designated by Customs for the purpose of 
filing those claims, and may represent his client before that office in 
matters concerning those claims, even though the broker does not have a 
permit for the 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]



Sec. 111.3  [Reserved]



Sec. 111.4  Transacting customs business without a license.

    Any person who intentionally transacts customs business, other than 
as provided in Sec. 111.2(a)(2), without holding a valid broker's 
license, will be liable 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 assessed in accordance with subpart E of this part.

[[Page 566]]



Sec. 111.5  Representation before Government agencies.

    (a) Agencies within the Department of Homeland Security. A broker 
who represents a client in the importation or exportation of merchandise 
may represent the client before the Department of Homeland Security or 
any representative of the Department of Homeland Security on any matter 
concerning that merchandise.
    (b) Agencies not within the Department of Homeland Security. In 
order to represent a client before any agency not within the Department 
of Homeland Security, a broker must comply with any regulations of that 
agency governing the appearance of representatives before it.



             Subpart B_Procedure To Obtain License or Permit



Sec. 111.11  Basic requirements for a license.

    (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 application referred to in Sec. 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 Sec. 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 Sec. 111.12(a), that he 
has sufficient knowledge of customs and related laws, regulations and 
procedures, bookkeeping, accounting, 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 partnership who is a 
broker.
    (c) Association or corporation. In order to qualify for a broker's 
license, an association 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.



Sec. 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 applicant intends to do business. The application must be under oath 
and executed on Customs Form 3124. The application must be accompanied 
by the $200 application fee prescribed in Sec. 111.96(a) and one copy 
of the appropriate attachment required by the application form (Articles 
of Agreement or an affidavit signed by all partners, Articles of 
Agreement of the association, 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 applicant'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 applicant took and passed the written examination referred to in 
Sec. Sec. 111.11(a)(4) and 111.13. The port director may require an 
individual applicant to provide a copy of the notification that he 
passed the written examination (see Sec. 111.13(e)) and will require 
the applicant to submit fingerprints on form FD 258 or electronically at 
the time of filing the application. The port director may reject an 
application as improperly filed if the application, on its face, 
demonstrates that one or more of the basic requirements set forth in 
Sec. 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. Following 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 customhouse at the port and similarly at any 
other port where the applicant also proposes to maintain an office. The 
notice 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

[[Page 567]]

the names of all members or officers who are licensed as brokers. The 
notice will invite written comments or information regarding the 
issuance of the license.
    (c) Withdrawal of application. An applicant for a broker's license 
may withdraw 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 
applicant to a refund of the $200 application fee.

[T.D. 00-17, 65 FR 13891, Mar. 15, 2000, as amended by T.D. 01-14, 66 FR 
8767, Feb. 2, 2001]



Sec. 111.13  Written examination for individual 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 procedures, 
bookkeeping, accounting, and all other appropriate matters necessary to 
render valuable service to importers and exporters. The examination will 
be prepared and graded at Customs Headquarters, Washington, DC.
    (b) Date and place of examination. Written examinations will be 
given on the first Monday in April and October unless the regularly 
scheduled examination date conflicts with a national holiday, religious 
observance, or other foreseeable event and the agency publishes in the 
Federal Register an appropriate notice of a change in the examination 
date. An individual who intends to take the written examination must so 
advise the port director in writing at least 30 calendar days prior to 
the scheduled examination date and must remit the $200 examination fee 
prescribed in Sec. 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 partnership, association, or 
corporation loses the required member or officer having an individual 
broker's license (see Sec. Sec. 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 Sec. 111.45(a) before the next scheduled written 
examination, Customs may authorize a special written examination for a 
prospective applicant for an individual license who would serve as the 
required licensed member or officer. Customs may also authorize a 
special written examination for an individual for purposes of continuing 
the business of a sole proprietorship broker. A special written 
examination for an individual may also be authorized by Customs if a 
brokerage firm loses the individual broker who was exercising 
responsible supervision and control over an office in another district 
(see Sec. 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 Sec. 111.45(b) before the next scheduled written 
examination. A request for a special written examination must be 
submitted to the port director in writing and must describe the 
circumstances 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 submitted in accordance with 
Sec. 111.12. The examinee will be responsible for all additional costs 
incurred by Customs in preparing and administering the special 
examination that exceed the $200 examination fee prescribed in Sec. 
111.96(a), and those additional costs must be reimbursed to Customs 
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 scheduled written examination that he will not appear for the 
examination, the port director will refund the $200 examination fee 
referred to in paragraph (b) of this section. No refund of the 
examination fee or additional reimbursed costs will be made in the case 
of a special written examination provided for under paragraph (c) of 
this section.
    (e) Notice of examination result. Customs will provide to each 
examinee written notice of the result of the examination taken under 
this section. A

[[Page 568]]

failure of an examinee to attain a passing grade on the examination will 
preclude the submission of an application under Sec. 111.12 but will 
not preclude the examinee from taking an examination again at a later 
date in accordance with paragraph (b) of this section.
    (f) Appeal of failing grade on examination. 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 Protection, Washington, DC 20229 within 60 calendar days after 
the date of the written notice provided for in paragraph (e) of this 
section. CBP will provide to the examinee written notice of the decision 
on the appeal. If the CBP decision on the appeal affirms the result of 
the examination, the examinee may request review of the decision on the 
appeal by writing to the Secretary of Homeland Security, or his designee 
within 60 calendar days after the date of the notice of 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]



Sec. 111.14  Investigation of the license applicant.

    (a) Referral of application for investigation. The port director 
will immediately refer an application for an individual, partnership, 
association, or corporation license to the special agent in charge or 
other entity designated by Headquarters for investigation and report.
    (b) Scope of investigation. An investigation under this section will 
ascertain 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 applicant; and
    (3) When the applicant is an individual (including a member of a 
partnership or an officer of an association or corporation), the 
character and reputation of the applicant.
    (c) Referral to Headquarters. The port director will forward the 
originals of the application and the report of investigation to the 
Assistant Commissioner. The port director will also submit his 
recommendation for action on the application.
    (d) Additional investigation or inquiry. The Assistant Commissioner 
may require further investigation to be conducted 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 corporation, one or more of its members or 
officers) 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.



Sec. 111.15  Issuance of license.

    If the Assistant Commissioner finds that the applicant is qualified 
and has paid all applicable fees prescribed in Sec. 111.96(a), he will 
issue a license. A license for an individual who is a member of a 
partnership or an officer of an association or corporation will be 
issued in the name of the individual licensee 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.



Sec. 111.16  Denial of license.

    (a) Notice of denial. If the Assistant Commissioner determines that 
the application 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 denial will state 
the reasons why the license was not issued.
    (b) Grounds for denial. The grounds sufficient to justify denial of 
an application 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 Sec. 111.53;
    (2) The failure to meet any requirement set forth in Sec. 111.11;
    (3) A failure to establish the business integrity and good character 
of the applicant;

[[Page 569]]

    (4) Any willful misstatement of pertinent facts in the application 
for the license;
    (5) Any conduct which would be deemed unfair in commercial 
transactions by accepted standards; or
    (6) A reputation imputing to the applicant criminal, dishonest, or 
unethical conduct, or a record of that conduct.



Sec. 111.17  Review of the denial of a license.

    (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 information or arguments in support of the application 
by personal appearance, or in writing, or both. This request must be 
received by the Assistant Commissioner within 60 calendar days of the 
denial.
    (b) By the Secretary. Upon the decision of the Assistant 
Commissioner affirming 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 
Secretary deems appropriate. This request must be received by the 
Secretary within 60 calendar days of the Assistant 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 affirming 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 
Secretary's decision.



Sec. 111.18  Reapplication for license.

    An applicant who has been denied a license may reapply at any time 
by complying with the provisions of Sec. 111.12.



Sec. 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 Sec. 
111.15) is located and without the payment of the $100 fee required by 
Sec. 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 business 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 license 
under paragraph (a) of this section, 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 district and the telephone number of that office;
    (3) A copy of a document which reserves the applicant's business 
name with the state or local government;
    (4) The name of the individual broker who will exercise responsible 
supervision 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 Sec. Sec. 111.21 and 111.23); and
    (7) A list of all persons who the applicant knows will be employed 
in the district, together with the specific employee information 
prescribed in Sec. 111.28(b)(1)(i) for each of those prospective 
employees.
    (c) Fees. Each application for a district permit under paragraph (b) 
of this section must be accompanied by the $100 and $138 fees specified 
in Sec. Sec. 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 Sec. 111.96(b) and the $138 fee specified

[[Page 570]]

in Sec. 111.96(c) must be paid at the port through which the 
applicant's license was delivered (see Sec. 111.15) prior to submission 
of the application. The $138 fee specified in Sec. 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 control--(1) General. The applicant 
for a district permit must have a place of business at the port where 
the application is filed, or must have made firm arrangements 
satisfactory to the port director to establish a place of business, and 
must exercise responsible supervision and control over that place of 
business once the permit is granted. Except as otherwise provided in 
paragraph (d)(2) of this section, the applicant must employ in each 
district for which a permit is granted at least one individual broker to 
exercise responsible supervision and control over the customs business 
conducted in the district.
    (2) Exception to district rule. If the applicant can demonstrate to 
the satisfaction of CBP that he regularly employs 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 supervision and control over the customs business 
conducted in the district, CBP may waive the requirement for an 
individual broker in that district. A request for a waiver under this 
paragraph, supported by information on the volume and type of customs 
business conducted, or planned to be conducted, and supported by 
evidence demonstrating 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 recommendations 
which will be sent to the Office of International Trade, CBP 
Headquarters, for review and decision. A written decision on the waiver 
request 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 waiver.
    (e) Action on application; list of permitted 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 requirements of paragraphs (b), (c), and (d) of 
this section. If the port director is of the opinion that the district 
permit should not be issued, he will submit his written reasons for that 
opinion to the Office of International Trade, CBP Headquarters, for 
appropriate instructions on whether to grant or deny the district 
permit. Each port director will maintain and make available to the 
public an alphabetical list of brokers permitted through his port.
    (f) National permit. A broker who has a district permit issued under 
paragraph (a) or paragraph (e) of this section may apply for a national 
permit for the purpose of transacting customs business in any 
circumstance described in Sec. 111.2(b)(2)(i). An application for a 
national permit under this paragraph must be in the form of a letter 
addressed to the Office of International Trade, U.S. Customs and Border 
Protection, Washington, DC 20229, and must:
    (1) Identify the applicant's broker license number and date of 
issuance;
    (2) Set forth the address and telephone 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 activities 
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 Sec. 111.96(b) and (c) have been paid in accordance with 
paragraph (c) of this section.
    (g) Review of the denial of a permit--(1) By the Assistant 
Commissioner. Upon the denial of an application for a permit

[[Page 571]]

under this section, the applicant may file with the Assistant 
Commissioner, in writing, a request that further opportunity be given 
for the presentation of information or arguments in support of the 
application by personal appearance, or in writing, or both. This request 
must be received by the Assistant Commissioner within 60 calendar days 
of the denial.
    (2) By the Court of International Trade. Upon a decision of the 
Assistant Commissioner affirming the denial of an application for a 
permit under this section, 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 
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 Responsibilities of Customs Brokers



Sec. 111.21  Record of transactions.

    (a) Each broker must keep current in a correct, orderly, and 
itemized manner 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 
business.
    (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.



Sec. 111.22  [Reserved]



Sec. 111.23  Retention of records.

    (a) Place and period of retention--(1) Place. Records must be 
retained by a broker in accordance with the provisions 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 Customs, 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 retained 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 revocation 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 Sec. 111.29(b)(2)(ii), whichever period is later. When merchandise 
is withdrawn from a bonded warehouse, records relating to the withdrawal 
must be retained 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 Sec. 163.5(b) of this chapter, the option 
of maintaining records on a consolidated system basis is available to 
brokers who have been granted permits to do business in more than one 
district.
    (2) Form and content of notice. If consolidated storage is desired 
by the broker, he must submit a written notice addressed to the Office 
of International Trade, Regulatory Audit, 2001 Cross Beam Dr., 
Charlotte, North Carolina 28217. The written notice must include:
    (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 methodology of record 
maintenance, a description of any automated data processing 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

[[Page 572]]

the Office of International Trade, Regulatory Audit, in Charlotte is 
first notified.



Sec. 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 clients, 
their surety on a particular entry, and the Field Director, Office of 
International Trade, Regulatory Audit, the special agent in charge, the 
port director, or other duly accredited officers or agents of the United 
States, except on subpoena by a court of competent jurisdiction.



Sec. 111.25  Records must be available.

    During the period of retention, the broker must maintain the records 
referred to in this part in such a manner that they may readily be 
examined. Records required to be made or maintained under the provisions 
of this part must be made available upon reasonable notice for 
inspection, copying, reproduction 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 requirements of part 163 of this chapter must be made 
available to CBP in accordance with the provisions of that part.



Sec. 111.26  Interference with examination of records.

    Except in accordance with the provisions of part 163 of this 
chapter, a broker must not refuse access to, conceal, 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 reasonable grounds 
to believe may be sought, by the Department of Homeland Security or any 
representative of the Department of Homeland Security, nor may he 
otherwise interfere, or attempt to interfere, with any proper and lawful 
efforts to procure or reproduce information contained in those records.



Sec. 111.27  Audit or inspection of records.

    The Field Director, Regulatory Audit, will make any audit or 
inspection 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 officials of the Treasury Department to determine 
whether or not the broker is complying with the requirements of this 
part.



Sec. 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 officer of an association or corporation that is a broker must 
exercise responsible supervision and control (see Sec. 111.1) over the 
transaction of the customs business of the sole proprietorship, 
partnership, association, or corporation.
    (b) Employee information--(1) Current employees--(i) General. Each 
broker must submit, in writing, to the director of each port at which 
the broker intends 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 submitted upon issuance of a permit for an additional 
district under Sec. 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 submission, 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 required by Sec. 111.30(d).
    (ii) New employees. In the case of a new employee, the broker must 
submit to the port director the written information required under 
paragraph

[[Page 573]]

(b)(1)(i) of this section within 10 calendar 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. Notwithstanding 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 Sec. 111.11(b) or who is a qualifying officer of an 
association or corporation for purposes of Sec. 111.11(c)(2), that 
individual broker must immediately provide written notice 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 
partnership, association, or corporation.
    (d) Change in ownership. If the ownership 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 ownership 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 objects to the new principal, and the broker will be 
given a reasonable period 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, suspension 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.



Sec. 111.29  Diligence in correspondence and paying monies.

    (a) Due diligence by broker. Each broker must exercise due diligence 
in making financial settlements, in answering correspondence, and in 
preparing 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 transmitted to the Government within 5 working days 
from receipt by the broker. Each broker must provide a written statement 
to a client accounting for funds received for the client from the 
Government, or received from a client where no payment to the Government 
has been made, or received from a client in excess of the Governmental 
or other charges properly payable as part of the client's customs 
business, within 60 calendar days of receipt. No written statement is 
required if there is actual payment of the funds by a broker.
    (b) Notice to client of method of payment--(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. Customs and Border Protection'' 
which will be delivered to CBP by the broker.


[[Page 574]]


    (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 September 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 customs business on at 
least two occasions within the 12-month period preceding notification.



Sec. 111.30  Notification of change of business address, organization, name, or location of business records; status report; termination of brokerage 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 address. In 
addition, if an individual broker is not actively engaged in transacting 
business as a broker and changes his non-business mailing address, he 
must give written notice of the new address in the status report 
required by paragraph (d) of this section.
    (b) Change in an organization. A partnership, association, or 
corporation broker must immediately provide written 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 purposes of Sec. 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 
Incorporation relating to the transaction of customs business, or any 
other change in the legal nature of the organization (for example, 
conversion of a general partnership to a limited partnership, merger 
with another organization, divestiture of a part of the organization, or 
entry into bankruptcy protection).
    (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 
documents.
    (d) Status report--(1) General. Each broker must file a written 
status report with Customs on February 1, 1985, and on February 1 of 
each third year after that date. The report must be accompanied by the 
fee prescribed in Sec. 111.96(d) and must be addressed to the director 
of the port through which the license was delivered to the licensee (see 
Sec. 111.15). A report received during the month of February will be 
considered 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 business as a broker. If he is so actively 
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 partnership, association or 
corporation broker for which he is a qualifying member or officer for 
purposes of Sec. 111.11(b) or (c)(2); and
    (iii) State whether or not he still meets the applicable 
requirements of Sec. 111.11 and Sec. 111.19 and has not engaged in any 
conduct that could constitute grounds for suspension or revocation under 
Sec. 111.53.
    (3) Partnership, association or corporation. 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 transacted, its business address, the name and 
address of each licensed member of

[[Page 575]]

the partnership or licensed officer of the association or corporation 
who qualifies it for a license under Sec. 111.11(b) or (c)(2), and 
whether it is actively 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 broker'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 suspension to the broker by certified 
mail, return receipt requested, at the address reflected in Customs 
records. If the broker files the required report and pays the required 
fee within 60 calendar days of the date of the notice of suspension, the 
license will be reinstated. If the broker does not file the required 
report within that 60-day period, the broker's license is revoked by 
operation of law without prejudice to the filing of an application for a 
new license. Notice of the revocation will be published in the Customs 
Bulletin.
    (e) Custody of records. Upon the permanent 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 director of each port where the broker was transacting 
business within each district 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 
brokerage business;
    (2) Each member of a partnership who holds an individual broker's 
license, upon the permanent termination of a partnership brokerage 
business; or
    (3) Each association or corporate officer who holds an individual 
broker's license, upon the permanent termination of an association or 
corporate brokerage business.



Sec. 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. Government service must not 
represent a client before the Department of Homeland 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 employee of U.S. Government. A 
broker must not knowingly assist, accept assistance from, or share fees 
with a person who has been employed by a client in a matter pending 
before the Department of Homeland Security or any representative of the 
Department of Homeland Security to which matter that person gave 
personal consideration 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 restriction will apply 
if a broker's employee is an importer.



Sec. 111.32  False information.

    A broker must not file or procure or assist in the filing of any 
claim, or of any document, affidavit, or other papers, known by such 
broker to be false. In addition, a broker must not knowingly give, or 
solicit or procure the giving of, any false or misleading information or 
testimony in any matter pending before the Department of Homeland 
Security or any representative of the Department of Homeland Security.



Sec. 111.33  Government records.

    A broker must not procure or attempt to procure, directly or 
indirectly, information from Government records or other Government 
sources of any kind to which access is not granted by proper authority.



Sec. 111.34  Undue influence upon Department of Homeland Security employees.

    A broker must not influence or attempt to influence the conduct of 
any representative of the Department of Homeland Security in any matter 
pending before the Department of

[[Page 576]]

Homeland Security or any representative 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.



Sec. 111.35  Acceptance of fees from attorneys.

    With respect to customs transactions, a broker must not demand or 
accept from any attorney (whether directly or indirectly, including, for 
example, from a client as a part of any arrangement with an attorney) on 
account 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 services.



Sec. 111.36  Relations with unlicensed persons.

    (a) Employment by unlicensed person other than importer. When a 
broker is employed for the transaction of customs business by an 
unlicensed person who is not the actual importer, the broker must 
transmit to the actual importer either a copy of his bill for services 
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 unlicensed person. Except as 
otherwise provided in paragraph (c) of this section, a broker must not 
enter into any agreement with an unlicensed person to transact customs 
business for others in such manner that the fees or other benefits 
resulting from the services rendered for others inure to the benefit of 
the unlicensed person.
    (c) Relations with a freight forwarder. A broker may compensate a 
freight forwarder for referring brokerage business, subject to the 
following conditions:
    (1) The importer or other party in interest is notified in advance 
by the forwarder or broker of the name of the broker selected by the 
forwarder for the handling of his Customs transactions;
    (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 forwarder, 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 compensation between the broker and 
the forwarder, nor any action taken pursuant to the agreement, forbids 
or prevents 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.



Sec. 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 broker whose license or permit is 
under suspension), other than his own employees authorized to act for 
him, in the solicitation, promotion or performance of any customs 
business or transaction.



Sec. 111.38  False representation to procure 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 client that he can obtain any 
favors from the Department of Homeland Security or any representative of 
the Department of Homeland Security.



Sec. 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 information. Moreover, a broker must exercise

[[Page 577]]

due diligence to ascertain the correctness of any information which he 
imparts to a client, and he must not knowingly impart to a client false 
information 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 
document, affidavit, or other paper which the law requires the client to 
execute, he must advise the client promptly of that noncompliance, 
error, or omission.
    (c) Illegal plans. A broker must not knowingly suggest to a client 
or prospective client any illegal plan for evading payment of any duty, 
tax, or other debt or obligation owing to the U.S. Government.



Sec. 111.40  Protests.

    A broker must not act on behalf of any person, or attempt to 
represent any person, regarding any protest unless he is authorized to 
do so in accordance with part 174 of this chapter.



Sec. 111.41  Endorsement of checks.

    A broker must not endorse or accept, without authority of his 
client, any U.S. Government draft, check, or warrant drawn to the order 
of the client.



Sec. 111.42  Relations with person who is notoriously disreputable or whose license is under suspension, canceled ``with prejudice,'' or revoked.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, a broker must not knowingly and directly or indirectly:
    (1) Accept employment to effect a Customs transaction as associate, 
correspondent, officer, employee, agent, or subagent from any person who 
is notoriously disreputable or whose broker license 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 
business or transactions from, any person described in paragraph (a)(1) 
of this section, without the approval of the Assistant Commissioner (see 
Sec. 111.79);
    (4) Share fees with any person described in paragraph (a)(1) of this 
section; or
    (5) Permit any person described in paragraph (a)(1) of this section 
to participate, directly or indirectly and whether through ownership or 
otherwise, in the promotion, control, or direction 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 suspension or was cancelled ``with prejudice'' or revoked.



Sec. Sec. 111.43-111.44  [Reserved]



Sec. 111.45  Revocation by operation of law.

    (a) License. If a broker that is a partnership, association, or 
corporation fails to have, during any continuous period of 120 days, at 
least one member of the partnership or at least one officer of the 
association or corporation who holds a valid individual broker's 
license, that failure will, in addition to any other sanction that may 
be imposed under this part, result in the revocation by operation of law 
of the license and any permits issued to the partnership, association, 
or corporation. 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 district fails, for any continuous period of 180 days, to 
employ within that district (or region, as defined in Sec. 111.1, if an 
exception has been granted pursuant to Sec. 111.19(d)) at least one 
person who holds a valid individual broker's license, that failure will, 
in addition to any other sanction that may be imposed under this part, 
result in the revocation of the permit by operation of law.
    (c) Notification. If the license or an additional permit of a 
partnership, association, or corporation is revoked by

[[Page 578]]

operation of law under paragraph (a) or (b) of this section, the 
Assistant Commissioner 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 paragraph (a) or (b) of this section, each broker still has a 
continuing obligation to exercise responsible supervision and control 
over the conduct of its brokerage 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 assessment of a monetary penalty under subpart D or 
subpart E of this part.



Subpart D_Cancellation, Suspension, or Revocation of License or Permit, 
        and Monetary Penalty in Lieu of Suspension or Revocation



Sec. 111.50  General.

    This subpart sets forth provisions relating 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.



Sec. 111.51  Cancellation of license or permit.

    (a) Without prejudice. The Assistant Commissioner may cancel a 
broker's license or permit ``without prejudice'' upon written 
application by the broker if the Assistant Commissioner determines that 
the application for cancellation was not made in order to avoid 
proceedings for the suspension or revocation of the license or permit. 
If the Assistant Commissioner determines that the application for 
cancellation was made in order to avoid those proceedings, he may cancel 
the license or permit ``without prejudice'' only with authorization from 
the Secretary of Homeland Security, or his designee.
    (b) With prejudice. The Assistant Commissioner may cancel a broker's 
license 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 Secretary except that it will not give rise to a right of 
appeal.



Sec. 111.52  Voluntary suspension of license or permit.

    The Assistant Commissioner may accept a broker's written voluntary 
offer of suspension of the broker's license or permit for a specific 
period of time under any terms and conditions to which the parties may 
agree.



Sec. 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 revocation 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 license or permit under this part, or report 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 application for a license under Sec. 111.12, of any felony or 
misdemeanor which:
    (1) Involved the importation or exportation of merchandise;
    (2) Arose out of the conduct of customs business; or
    (3) Involved larceny, theft, robbery, extortion, forgery, 
counterfeiting,

[[Page 579]]

fraudulent concealment, embezzlement, fraudulent conversion, or 
misappropriation of funds;
    (c) The broker has violated any provision 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, commanded, induced, procured, or 
knowingly 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 Customs;
    (e) The broker has knowingly employed, or continues to employ, any 
person who has been convicted of a felony, without written approval of 
that employment from the Assistant Commissioner;
    (f) The broker has, in the course of customs business, with intent 
to defraud, in any manner willfully and knowingly deceived, misled or 
threatened any client or prospective client; or
    (g) The broker no longer meets the applicable requirements of 
Sec. Sec. 111.11 and 111.19.



Sec. 111.54  [Reserved]



Sec. 111.55  Investigation of complaints.

    Every complaint or charge against a broker which may be the basis 
for disciplinary 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 investigation to the 
director of the port and send a copy of it to the Assistant 
Commissioner.



Sec. 111.56  Review of report on investigation.

    The port director will review the report of investigation to 
determine if there is sufficient basis to recommend that charges be 
preferred against the broker. He will then submit his recommendation 
with supporting reasons to the Assistant Commissioner for final 
determination together with a proposed statement of charges when 
recommending that charges be preferred.



Sec. 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 decision.



Sec. 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 constitute grounds for suspension or revocation 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 proposed. 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 purpose 
might have been accomplished, or different intents with which acts might 
have been done, so as to constitute grounds for suspension or revocation 
of the license may be alleged in the alternative under a single count in 
the statement of charges.



Sec. 111.59  Preliminary proceedings.

    (a) Opportunity to participate. The port director will advise the 
broker of his opportunity to participate in preliminary proceedings with 
an opportunity 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 Sec. 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;

[[Page 580]]

    (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 settlement 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 response must be received within 30 
calendar days of the date of the notice.



Sec. 111.60  Request for additional information.

    If, in order to prepare his response, the broker desires additional 
information as to the time and place of the alleged 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 broker's request must set forth in what respect 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 needed. If in the opinion of the port director 
that information is reasonably necessary to enable the broker to prepare 
his response, he will furnish the broker with that information.



Sec. 111.61  Decision on preliminary proceedings.

    The port director will prepare a summary of any oral presentations 
made by the broker or his attorney and forward 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 Commissioner his 
recommendation on action to be taken as a result of the preliminary 
proceedings. If the Assistant Commissioner determines that the broker 
has satisfactorily responded to the proposed charges and that further 
proceedings are not warranted, he will so inform the port director who 
will notify the broker. If no response is filed by the broker or if the 
Assistant Commissioner determines that the broker has not satisfactorily 
responded to all of the proposed charges, he will advise the port 
director of that fact and instruct 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 instruct the port director to omit those charges from the statement 
of charges.



Sec. 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
    (e) Prior to the hearing on the charges, the broker may file, in 
duplicate with the port director, a verified answer to the charges.



Sec. 111.63  Service of notice and statement of charges.

    (a) Individual. The port director will serve the notice of charges 
and the statement of charges against an individual broker as follows:
    (1) By delivery to the broker personally;
    (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 
written communication to the port director; 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 leaving them with 
the person in charge of the broker's office.
    (b) Partnership, association or corporation. The port director will 
serve the notice of charges and the statement of charges against a 
partnership, association, or corporation broker as follows:

[[Page 581]]

    (1) By delivery to any member of the partnership personally or to 
any officer of the association or corporation personally;
    (2) By certified mail addressed to any member of the partnership or 
to any officer of the association or corporation, with demand for a 
return card signed solely by the addressee;
    (3) By any other means which the broker may have authorized in a 
written communication to the port director; 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 leaving 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 return card duly signed 
will be satisfactory evidence of service.



Sec. 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 Sec. 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 relating to the hearing may be served 
by one of the methods set forth in Sec. 111.63 or by ordinary mail or 
upon the broker's attorney.



Sec. 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 designated pursuant to Sec. 
111.67(a) may reschedule 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.



Sec. 111.66  Failure to appear.

    If the broker or his attorney fails to appear for a scheduled 
hearing, the hearing officer designated pursuant to Sec. 111.67(a) will 
proceed with the hearing as scheduled and will hear evidence submitted 
by the parties. The provisions of this part will apply as though the 
broker were present, and the Secretary of Homeland Security, or his 
designee, may issue an order of suspension of the license or permit for 
a specified 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 Sec. 111.74 if he finds that action to be in order.



Sec. 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 examine all exhibits offered at the hearing and will have the 
right to cross-examine witnesses and to present witnesses who will be 
subject to cross-examination by the Government representatives.
    (c) Interrogatories. Upon the written request of either party, the 
hearing officer 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 reasonable time in which to prepare 
cross-interrogatories and, if the deposition is oral, will be permitted 
to cross-examine the witness. The deposition will become part of the 
hearing record.
    (d) Transcript of record. The port director will provide a competent 
reporter 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 officer, 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.



Sec. 111.68  Proposed findings and conclusions.

    The hearing officer will allow the parties a reasonable period of 
time after delivery of the transcript of record in which to submit 
proposed

[[Page 582]]

findings and conclusions and supporting reasons for the findings as 
contemplated by 5 U.S.C. 557(c).



Sec. 111.69  Recommended decision by hearing officer.

    After review of the proposed findings and conclusions submitted by 
the parties pursuant to Sec. 111.68, the hearing officer will make his 
recommended decision 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.



Sec. 111.70  Additional submissions.

    Upon receipt of the record, the Secretary of Homeland Security, or 
his designee, will afford the parties a reasonable opportunity to make 
any additional submissions that are permitted under 5 U.S.C. 557(c) or 
otherwise required by the circumstances of the case.



Sec. 111.71  Immaterial mistakes.

    The Secretary of Homeland Security, or his designee, will disregard 
an immaterial misnomer of a third person, an immaterial mistake in the 
description 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 immaterial allegations in the description of the 
broker's conduct.



Sec. 111.72  Dismissal subject to new proceedings.

    If the Secretary of Homeland Security, or his designee, finds that 
the evidence produced at the hearing indicates 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.



Sec. 111.73  [Reserved]



Sec. 111.74  Decision and notice of suspension or revocation or monetary penalty.

    If the Secretary of Homeland Security, 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 remaining charges if the facts alleged in the 
charges are established by the evidence. If the Secretary of Homeland 
Security, or his designee, in the exercise of his discretion and based 
solely on the record, issues an order suspending 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 Sec. 111.53(b)(3), assessing a 
monetary penalty in lieu of suspension 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 Sec. 111.75), the Assistant Commissioner will publish a 
notice of the suspension or revocation, or the assessment of a monetary 
penalty, in the Federal Register and in the Customs Bulletin. If no 
appeal from the Secretary's order is filed, an order of suspension or 
revocation or assessment of a monetary penalty will become effective 60 
calendar days after issuance of written notification of the order unless 
the Secretary finds that a more immediate effective date is in the 
national or public interest. If a monetary penalty 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 tendered within that 60-day period, the 
license or permit of the broker will immediately be suspended until 
payment is made.



Sec. 111.75  Appeal from the Secretary's decision.

    An appeal from the order of the Secretary of Homeland Security, or 
his designee, suspending or revoking a license or permit, or assessing a 
monetary 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 specifically ordered by the Court, operate as a stay of the 
Secretary's order.

[[Page 583]]



Sec. 111.76  Reopening the case.

    (a) Grounds for reopening. Provided that no appeal is filed in 
accordance with Sec. 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 
application in duplicate to the Assistant Commissioner to reopen the 
case and have the order of suspension or revocation or monetary penalty 
assessment set aside or modified on the ground that new evidence has 
been discovered or on the ground that important evidence is now 
available which could not be produced at the original hearing by the 
exercise of due diligence. The application must set forth the precise 
character of the evidence to be relied upon and must state the reasons 
why the applicant was unable to produce it when the original charges 
were heard.
    (b) Procedure. The Assistant Commissioner will forward the 
application, together with his recommendation for action 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 testimony before the Assistant Commissioner. The Assistant 
Commissioner will notify the applicant of the Secretary's decision. If 
the Secretary grants the application and orders a hearing, the Assistant 
Commissioner will set a time and place for the hearing and give due 
written notice of the hearing to the applicant. The procedures governing 
the new hearing and recommended decision of the hearing officer will be 
the same as those governing the original proceeding. The original order 
of the Secretary will remain in effect pending conclusion of the new 
proceedings and issuance of a new order under Sec. 111.77.



Sec. 111.77  Notice of vacated or modified order.

    If, pursuant to Sec. 111.76 or for any other reason, the Secretary 
of Homeland Security, or his designee, issues an order vacating or 
modifying an earlier order under Sec. 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 notice of the new order in the Federal Register and in the 
Customs Bulletin.



Sec. 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 
revocation proceedings, Headquarters, or the port director with the 
approval of Headquarters, may serve the broker with a written reprimand. 
The reprimand, 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.



Sec. 111.79  Employment of broker who has lost license.

    Five years after the revocation or cancellation ``with prejudice'' 
of a license, the ex-broker may petition the Assistant Commissioner for 
authorization to assist, or accept employment with, a broker. The 
petition will not be approved unless the Assistant Commissioner is 
satisfied that the petitioner has refrained from all activities 
described in Sec. 111.42 and that the petitioner's conduct has been 
exemplary during the period of disability. The Assistant Commissioner 
will also give consideration to the gravity of the misconduct which gave 
rise to the petitioner'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.



Sec. 111.80  [Reserved]



Sec. 111.81  Settlement and compromise.

    The Assistant Commissioner, with the approval of the Secretary of 
Homeland Security, or his designee, may settle 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 
permit.

[[Page 584]]



             Subpart E_Monetary Penalty and Payment of Fees



Sec. 111.91  Grounds for imposition of a monetary penalty; maximum penalty.

    Customs may assess a monetary penalty 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 Sec. Sec. 111.53 
(a) through (f) other than those listed in Sec. 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 Sec. 
111.4 and in an amount not to exceed an aggregate of $30,000 for all 
those transactions or violations.



Sec. 111.92  Notice of monetary penalty.

    (a) Pre-penalty notice. If assessment of a monetary penalty under 
Sec. 111.91 is contemplated, Customs will issue a written notice which 
advises the broker or other person of the allegations or complaints 
against him and explains that the broker or other person has a right to 
respond to the allegations or complaints in writing within 30 days of 
the date of mailing of the notice. The Fines, Penalties, and Forfeitures 
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 response 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 Officer will issue a notice of 
penalty in the same amount as that provided in the written notice of 
allegations or complaints.

[T.D. 00-57, 65 FR 53575, Sept. 5, 2000]



Sec. 111.93  Petition for relief from monetary penalty.

    A broker or other person who receives a notice issued under Sec. 
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]



Sec. 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 Sec. 111.93. 
After Customs has considered the allegations or complaints set forth in 
the notice issued under Sec. 111.92 and any timely response made to the 
notice by the broker or other person, the Fines, Penalties, and 
Forfeitures Officer will issue a written decision 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 liable 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 arrangements for payment are not timely made, Customs will refer the 
matter to the Department of Justice for institution of appropriate 
judicial proceedings.



Sec. 111.95  Supplemental petition for relief 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 subject of a supplemental petition for relief. Any 
supplemental petition also must be filed in accordance with the 
provisions of part 171 of this chapter.

[[Page 585]]



Sec. 111.96  Fees.

    (a) License fee; examination fee; fingerprint fee. Each applicant 
for a broker's license pursuant to Sec. 111.12 must pay a fee of $200 
to defray the costs to Customs in processing the application. Each 
individual who intends to take the written examination provided for in 
Sec. 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 fingerprint check and processing fee; the port director will 
inform the applicant of the current Federal Bureau of Investigation fee 
for conducting fingerprint checks and the Customs fingerprint processing 
fee, the total of which must be paid to Customs before further 
processing of the application will occur.
    (b) Permit fee. A fee of $100 must be paid in connection with each 
permit application under Sec. 111.19 to defray the costs of processing 
the application, including an application for reinstatement 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 permit, including a national permit under Sec. 111.19(f), granted 
to an individual, partnership, association, or corporate broker. The 
user fee is payable when an initial district permit is issued 
concurrently with a license under Sec. 111.19(a), or in connection with 
the filing of an application for a permit under Sec. 111.19 (b) or (f), 
and for each subsequent calendar year at the port through which the 
broker was granted the permit or at the port referred to in Sec. 
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 accordance with the procedures set forth in Sec. 24.22(i) 
of this chapter. When a broker submits an application for a permit or is 
issued an initial district permit under Sec. 111.19, the full $138 user 
fee must be remitted with the application or when the initial district 
permit is issued, regardless of the point during the calendar year at 
which the application 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 permit to operate. The 
notice will constitute revocation of the permit.
    (d) Status report fee. The status report required under Sec. 
111.30(d) must be accompanied by a fee of $100 to defray the costs of 
administering the reporting requirement.
    (e) Method of payment. All fees prescribed 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--Table of Contents




Sec.
112.0 Scope.

                      Subpart A_General Provisions

112.1 Definitions.
112.2 Bond or license required.

     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 identification cards.
112.45 Surrender of identification cards.
112.46 Report of loss or theft.
112.47 Wrongful presentation.
112.48 Revocation or suspension of identification cards.
112.49 Temporary identification cards.

    Authority: 19 U.S.C. 66, 1551, 1565, 1623, 1624.

[[Page 586]]


    Source: T.D. 73-140, 38 FR 13551, May 23, 1973, unless otherwise 
noted.



Sec. 112.0  Scope.

    This part sets forth regulations providing for the bonding of 
carriers which will receive merchandise for transportation in bond, the 
licensing of cartmen and lightermen, and the procedures 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 
suspending licenses and identification cards. Provisions setting forth 
the duties 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



Sec. 112.1  Definitions.

    When used in this part, the following terms shall have the meaning 
indicated:
    Carrier. A ``carrier'' is one who undertakes to transport goods, 
merchandise or people.
    Cartman. A ``cartman'' is one who undertakes to transport goods or 
merchandise within the limits of the port.
    Common carrier. A ``common carrier'' is a carrier owning or 
operating a railroad, steamship, or other transportation 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 transport 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 geographic area in which the 
parties excepted by the last sentence of Sec. 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 forwarder'' is one who engages in the 
business 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 merchandise.

[T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 95-77, 60 FR 
50019, Sept. 27, 1995]



Sec. 112.2  Bond or license required.

    (a) Carriers. A bond provided for in this part is required to 
transact business as a carrier receiving merchandise for transportation 
in bond.
    (b) Cartmen and lightermen--(1) Necessity for bond. A bond, as 
provided for in this part, is required to transact business 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 licensed 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, container station operators and centralized 
examination station operators may engage in limited cartage or 
lighterage 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 transport merchandise 
to his zone from anywhere within the district boundaries (see definition 
of ``district'' at Sec. 112.1) where the foreign trade zone is located. 
A bonded warehouse proprietor may engage in cartage or lighterage under

[[Page 587]]

his bond only for merchandise destined for his bonded warehouse and may 
also transport merchandise to his warehouse from anywhere within the 
district boundaries (see definition of ``district'' at Sec. 112.1) 
where the bonded warehouse is located. A container station operator may 
engage in cartage or lighterage under his bond only for merchandise 
destined for his container station and may also transport merchandise to 
his container station from anywhere within the district boundaries (see 
definition of ``district'' at Sec. 112.1) where the container station 
is located. A centralized examination station operator may engage in 
cartage or lighterage under his bond only for merchandise destined for 
his centralized examination station and may also transport merchandise 
to his centralized examination station from anywhere within the district 
boundaries (see definition of ``district'' at Sec. 112.1) where the 
centralized 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 lighterage of merchandise. Bonded carriers may engage in 
cartage and lighterage under their bonds without obtaining a license. 
Foreign trade zone operators, bonded warehouse proprietors, container 
station operators and centralized 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 Carriers To Carry Bonded Merchandise



Sec. 112.11  Carriers which may be authorized.

    (a) From port to port in the United States. The port director may 
authorize the following types of carriers to receive 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 containerized merchandise) to be 
transported 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 Sec. 113.63 of this 
chapter,
    (b) Between ports in Canada or Mexico through the United States. 
Canadian and Mexican motor vehicle common carriers may be authorized to 
transport merchandise under bond between ports in Canada or Mexico 
through the United States (see part 123 of this chapter), upon 
compliance with the provisions 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]



Sec. 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 Sec. 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 following documents:
    (1) Common carriers other than railroad, steamship, or airline 
companies. Common carriers other than railroad, steamship, or airline 
companies generally 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 operate as a common carrier.
    (2) Contract carriers and freight forwarders. 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

[[Page 588]]

agency and a statement showing that the applicant is operating or 
intends to operate as such.
    (3) Private carriers. The private carrier shall file the bond with 
the director of the port where the private carrier 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 director for each additional port, and include 
with the bond and copies of the bond a list of all Customs districts in 
which he intends to operate. If the private carrier is the proprietor of 
one or more Customs bonded warehouses or bonded container stations, or 
the operator of a foreign trade zone, to which imported merchandise will 
be transported, he shall accompany the bond and copies of the bond by a 
statement showing the location of each warehouse, container station, or 
zone.
    (4) Motor carriers. All motor carriers shall file:
    (i) A detailed description of the terminal facilities employed by 
the principal at the points of origin and destination on the routes 
covered; and
    (ii) A statement showing that facilities are available for the 
segregation and safeguarding of the packages designated by the port 
director for examination 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]



Sec. 112.13  Approval of applications.

    The port director shall approve an application for authorization as 
carriers 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 sufficient.
    (b) All documents required by this subpart have been furnished and 
are in proper form; and
    (c) The fee prescribed has been paid.



Sec. 112.14  Discontinuance of carrier bonds.

    Carrier bonds may be discontinued at any time by the Commissioner of 
Customs or by the director of the port where the bond is filed. 
Authorized carriers desiring to terminate such bonds shall make 
application therefor to such port director.



              Subpart C_Licensing of Cartmen and Lightermen



Sec. 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 Sec. Sec. 18.3 and 125.12 of this 
chapter or, as provided in Sec. 112.2(b), when such merchandise is to 
be transported under the bond of the foreign trade zone operator, bonded 
warehouse proprietor, centralized examination station operator, 
container station operator, or a bonded carrier.

[T.D. 94-81, 59 FR 51495, Oct. 12, 1994]



Sec. 112.22  Application for license.

    (a) General requirements. An applicant for a customhouse cartage or 
lighterage license shall file with the director of the port where he 
proposes to conduct business the following:
    (1) A bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 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 released 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 licensed 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 director for 
examination, after which such documents shall be returned.

[[Page 589]]

    (c) Reapplication by certain terminated licensees. Where the 
applicant for a customhouse cartage or lighterage license has previously 
been issued such a license and the license has been terminated pursuant 
to Sec. 113.56 of this chapter, the port director may waive the filing 
of the items described in paragraphs (a)(2) and (a)(3) of this section, 
as well as the investigation described in Sec. 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 Sec. 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]



Sec. 112.23  Investigation of applicant.

    The port director may refer the application for a cartman's or 
lighterman's license to the appropriate special agent in charge where 
investigation and report concerning the character, qualification, and 
experience of the applicant as well as the nature and fitness of the 
equipment to be used.



Sec. 112.24  Issuance of license.

    The port director shall issue a customhouse cartage and lighterage 
license 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 Sec. 
112.22.



Sec. 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 Sec. 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]



Sec. 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 
Sec. 112.30 or until the required bond is terminated pursuant to Sec. 
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]



Sec. 112.27  Marking of vehicles and vessels.

    (a) Marking required. Every vehicle licensed by Customs for cartage 
and every barge, scow, or other lighter licensed by Customs for 
lighterage shall be marked with the legend ``Customhouse License No. --
------'', and the name of the person or firm to whom the license has 
been issued. The abbreviated legend ``C.H.L. No. --------'' may be used.
    (b) Size of marking. The marking required by this section shall 
appear in 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 legend and name on 
each side by painting directly onto the vehicle, or by the permanent 
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 appear.
    (2) Barges, scows, lighters, and other vessels. Every barge, scow, 
lighter, or other vessel used for Customs lighterage by a licensed 
lighterman shall be conspicuously marked with the required legend and 
name.
    (d) Removal of marking upon termination 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]



Sec. 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.

[[Page 590]]



Sec. 112.29  Records.

    (a) Records of cartage and lighterage. The port director may require 
that licensed Customs cartmen and lightermen shall make, keep, and 
promptly submit for Customs inspection 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 require a licensee to furnish, at such times and intervals 
as the port director deems necessary, a current 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 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]



Sec. 112.30  Suspension or revocation of license.

    (a) Grounds for suspension or revocation of licenses. The port 
director may revoke or suspend the license of a cartman or lighterman 
if:
    (1) His license is not promptly produced upon demand;
    (2) His vehicle or vessel is not properly marked, as required by 
Sec. 112.27;
    (3) The cartman or lighterman refuses or neglects to obey any proper 
order of a Customs officer or any Customs order, rule, or regulation 
relative to the cartage or lighterage of merchandise, including the 
making, keeping, and submitting of current written records relating to 
cartage and lighterage;
    (4) The license was obtained through fraud or the misstatement of a 
material fact;
    (5) The holder of such a license or an officer of a corporation 
holding such a license is convicted of or has committed 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 misdemeanor 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 Sec. 112,41;
    (8) The holder of such license fails to furnish a current list of 
names and addresses of officers and members or employees when required 
by the port director pursuant to Sec. 112.29;
    (9) The holder is guilty of any negligence, dishonest or deceptive 
practices 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 revoke 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 specifically setting forth the grounds for revocation 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 revocation or suspension. The notice of appeal 
shall be filed in duplicate, and shall set forth the response of the 
licensee to the statement of the port director. The licensee in his 
notice of appeal may request a hearing.

[[Page 591]]

    (d) Hearing on appeal--(1) Notification of and time of hearing. If a 
hearing is requested, it shall be held before a hearing 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 answer 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 proceedings 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 the 
hearing, if held, to the Commissioner of Customs, together with his 
recommendation for final action.
    (3) Additional arguments. Following a hearing and within 10 calendar 
days after delivery of a copy of the stenographic record, the licensee 
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 licensee nor his attorney 
appear for a scheduled hearing, the hearing officer shall conclude the 
hearing and transmit all papers with his recommendation to the 
Commissioner of Customs.
    (e) Decision on the appeal. The Commissioner 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



Sec. 112.41  Identification cards required.

    A port director may require each licensed cartman or lighterman and 
each employee thereof who receives, transports, or otherwise handles 
imported merchandise which has not been released 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 possession of the 
person in whose name it is issued at all times when he is engaged in 
transactions with respect to imported merchandise. An identification 
card shall not be issued to any person whose employment in connection 
with the transportation of bonded merchandise will, in the judgment of 
the port director, endanger the revenue.

[T.D. 73-140, 38 FR 13551, May 23, 1973, as amended by T.D. 99-64, 64 FR 
43266, Aug. 10, 1999]



Sec. 112.42  Application for identification card.

    An application for an identification card required pursuant to Sec. 
112.41 of this part, shall be filed personally by the applicant with the 
port director on Customs Form 3078 together with two 1\1/4\ x 
1\1/4\ color photographs of the applicant. The fingerprints 
of the applicant shall also be required on form FD 258 or electronically 
at the time of filing the application. The port director shall 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 with the 
application. The application may be referred for investigation 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]



Sec. 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 employee and a Customs officer 
and the U.S. Customs seal is impressed thereon. The holder shall encase 
the card in

[[Page 592]]

protective transparent plastic so that both sides are clearly visible.



Sec. 112.44  Changes in information on identification cards.

    Where there has been a change in the name, address, or employer of 
the holder, the card shall be promptly submitted 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.



Sec. 112.45  Surrender of identification cards.

    The identification card shall be surrendered 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 Sec. 112.48.



Sec. 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.



Sec. 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.



Sec. 112.48  Revocation or suspension of identification cards.

    (a) Grounds for revocation or suspension of identification cards. An 
identification card issued pursuant to this part may be revoked or 
suspended by the port director for any of the following grounds:
    (1) Such card was obtained through fraud or the misstatement of a 
material fact;
    (2) The holder of such card is convicted of a felony, or convicted 
of a misdemeanor involving theft, smuggling, 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 Sec. 112.45 and part 125 of this chapter.
    (b) Notice of revocation or suspension. The port director shall 
suspend or revoke an identification card by serving notice of the 
proposed action in writing upon the holder of the card. Such notice 
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 revocation or suspension. The notice of appeal shall be 
filed, in duplicate, and shall set forth the response of the holder to 
the statement of the port director. 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 requested, it shall be held before a hearing 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 hearing. All evidence and 
testimony of witnesses in such proceeding, including substantiation of 
charges and the answer 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 
appeal, the hearing officer or the port director, as the case may be, 
shall forthwith transmit all papers and the stenographic record of the 
hearing, if held, to the Commissioner of Customs, together with his 
recommendation for final action.
    (3) Additional arguments. Following a hearing and within 10 calendar 
days after delivery of a copy of the stenographic record, the holder of 
the card

[[Page 593]]

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 transmit all papers with his recommendation to the 
Commissioner of Customs.
    (e) Decision on the appeal. The Commissioner 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.



Sec. 112.49  Temporary identification cards.

    (a) Issuance. When an identification card is required by the port 
director under Sec. 112.41, and the port director determines that the 
application for the identification card cannot be administratively 
processed in a reasonable period of time, any licensed cartman or 
lighterman may upon written request have a temporary identification card 
issued by the port director to his employee if he can show to the 
satisfaction of the port director that a hardship to his business would 
result pending issuance of an identification card.
    (b) Validity and renewal. The temporary 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 
circumstances under which the temporary identification card was 
originally issued continue to exist. The temporary identification card 
shall be returned 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 judgment of the port director 
continuation of the privileges granted thereby would endanger the 
revenue or if the holder of the temporary identification card refuses or 
neglects to obey any proper order of a Customs officer or any Customs 
order, rule, or regulation.
    (d) Bond. The licensed cartman or lighterman shall as a condition 
precedent 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 conditions set forth in Sec. 113.63 of this chapter 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--Table of Contents




Sec.
113.0 Scope.

                      Subpart A_General Provisions

113.1 Authority to require security or execution 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.

[[Page 594]]

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 obligations of the United States 
          in lieu of sureties on bonds.

                    Subpart E_Production of Documents

113.41 Entry made prior to production of documents.
113.42 Time period for production of documents.
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 supported 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 instruments of international traffic 
          bond conditions.
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 material.
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 complainant 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 Deferral of Duty on Large Yachts 
          Imported for Sale at United States Boat Shows

    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.
    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.



Sec. 113.0  Scope.

    This part sets forth the general requirements applicable to bonds. 
It contains the general authority and powers of the Commissioner of 
Customs in requiring bonds, bond approval and execution, bond 
conditions, general and special bond requirements, the requirements 
which must be met to be either a principal or a surety, the requirements 
concerning the production of documents, the authority and manner of 
assessing liquidated damages and requirements for cancelling the bond or 
charges against a bond.



                      Subpart A_General Provisions



Sec. 113.1  Authority to require security or execution of bond.

    Where a bond or other security is not specifically required by law, 
the Commissioner of Customs, pursuant to Treasury Department Order No. 
165 Revised, as amended (T.D. 53654, 19 FR 7241, November 6, 1954), may 
by regulation or specific instruction require, or authorize the port 
director to require, such bonds or other security considered necessary 
for the protection of the revenue or to assure compliance with any 
pertinent law, regulation, or instruction.

[[Page 595]]



Sec. 113.2  Powers of Commissioner of Customs relating to bonds.

    Whenever a bond is required or authorized by law, regulation, or 
instruction, the Commissioner of Customs may:
    (a) Prescribe the conditions and form of the bond and fix the amount 
of penalty, whether for the payment of liquidated damages, or of a penal 
sum, except 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 extend to and cover similar cases of importations 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 consolidated bond (single entry or 
term) in lieu of separate bonds to assure compliance 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 Commissioner of Customs may fix the penalty for 
violation of a consolidated bond without regard to any other provision 
of law, regulation, or instruction.



Sec. 113.3  Liability of surety on a terminated bond.

    The surety, as well as the principal, remains liable on a terminated 
bond for obligations incurred prior to termination.



Sec. 113.4  Bonds and carnets.

    (a) Bonds. All bonds required to be given under the Customs laws or 
regulations shall be known as Customs bonds.
    (b) Carnets. A carnet is an international 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 acceptable without posting further security under the Customs 
laws or regulations requiring bonds.



             Subpart B_Bond Application and Approval of Bond



Sec. 113.11  Bond approval.

    Each person who is required by law, regulation, or specific 
instruction to post a bond to secure a Customs transaction 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 adequate security for the transaction(s). A 
bond relating to repayment of an erroneous drawback payment containing 
the bond conditions set forth in Sec. 113.65 shall be filed with the 
appropriate drawback office for approval.



Sec. 113.12  Bond application.

    (a) Single entry bond application. In order to insure that the 
revenue is adequately protected the port director may require a person 
who will be engaged in a single Customs transaction relating to the 
importation or entry of merchandise to file a written bond application 
which may be in the form of a letter. The application shall identify the 
value and nature of the merchandise involved in the transaction to be 
secured. When the proper bond in a sufficient 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 required.
    (b) Continuous bond application. If a person wants to secure 
multiple transactions relating to the importation or entry of 
merchandise or the operation of a bonded smelting or refining warehouse, 
a bond application, which may be in the form of a letter, shall be 
submitted to the port director.
    (1) Information required. The application shall contain the 
following information:

[[Page 596]]

    (i) The general character of the merchandise to be entered; and
    (ii) The total amount of ordinary Customs duties (including any 
taxes required by law to be treated as duties) accruing on all 
merchandise imported by the principal during the calendar year preceding 
the date of the application, 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 
material respect during the next year the change shall be identified. If 
no imports were made during the calendar year prior to the application, 
a statement of the duties and taxes it is estimated will accrue on all 
importations during the current year shall be submitted.
    (2) Application updates. If the port director approves a bond based 
upon the application, whenever there is a significant change in the 
information provided under this paragraph, the principal on the bond 
shall submit a new application containing an update of the information 
required by paragraph (b)(1) of this section. The new application shall 
be filed no later than 30 days after the new facts become known to the 
principal.
    (c) Certification. Any application submitted under this section 
shall be signed by the applicant and contain the following 
certification:

    I certify that the factual information contained in this application 
is true and accurate and any information provided which is based upon 
estimates is based upon the best information available on the date of 
this application.



Sec. 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. Fractional parts of a dollar shall be 
disregarded 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 erroneous 
drawback payment (see Sec. 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 transaction(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 enforcement and 
administration of Customs and other laws and regulations;
    (3) The value and nature of the merchandise involved in the 
transaction(s) to be secured;
    (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, 
including the payment of liquidated damages; and
    (6) Any additional information contained in any application for a 
bond.
    (c) Periodic review of bond sufficiency. The port directors and 
drawback offices 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 Sec. 113.11) to determine 
whether the bond is adequate to protect the revenue and insure 
compliance with the law and regulations. If the port director or 
drawback office determines that the bond is inadequate, the principal 
shall be immediately notified in writing. The principal shall have 30 
days from the date of notification to remedy the deficiency.
    (d) Additional security. Notwithstanding the provisions of this 
section or any other provision of this chapter, if a port director or 
drawback office believes that acceptance of a transaction secured by a 
continuous bond would place the revenue in jeopardy or otherwise hamper 
the enforcement of Customs laws or regulations, he shall require 
additional security.

[[Page 597]]



Sec. 113.14  Approved form of bond inadequate.

    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 conditions shall be 
submitted to Headquarters, Attention: Director, Border Security and 
Trade Compliance Division, 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]



Sec. 113.15  Retention of approved bonds.

    All bonds approved by the port director, except the bond containing 
the agreement to pay court costs (condemned goods) (see Sec. 113.72) 
shall remain 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 (condemned 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 relating to repayment of 
erroneous drawback payment containing the conditions set forth in Sec. 
113.65 shall be retained in the appropriate drawback office.

[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



Sec. 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 surety, its 
legal designation and the address 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 unincorporated divisions of the corporate principal which 
do not have a separate and distinct legal status who are authorized 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 principal 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.



Sec. 113.22  Witnesses required.

    (a) Generally. The signature of each party to a bond executed by a 
noncorporate principal or surety shall be witnessed by two persons, who 
shall sign their names as witnesses, and include their addresses.
    (b) Witness for both principal and surety. When two persons signing 
as witnesses act for both principal and surety, 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 officers 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 corporate 
principal or surety, see Sec. Sec. 113.33 and 113.37 of this part.



Sec. 113.23  Changes made on the bond.

    (a) Definition of the types of changes--(1) Modification or 
interlineation. Modifications 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, alterations, modifications, or 
interlineations 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

[[Page 598]]

that effect shall be placed upon the bond.
    (c) After signing. If erasures or alterations 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 regulation, or by 
the Commissioner, no modification or interlineation shall be made on the 
bond after execution. When a modification or interlineation is desired, 
a new bond will be executed.
    (d) After approval of the bond by Customs. 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 paragraph (a) of this section after the bond has 
been approved by Customs. When changes are desired, a new bond is 
required, which, when approved, shall supersede the existing bond.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]



Sec. 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 principal. 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 principal on a bond.
    (3) Addition and deletion of trade names and unincorporated 
divisions of a corporate principal. A bond rider may be used to add to 
or delete from a bond trade names and the names of unincorporated 
divisions of a corporate principal 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 approved.
    (c) Attachment of rider to bond. All riders expressly authorized by 
the Commissioner 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, include a certificate as to corporate principal, if 
applicable, and otherwise comply 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,---- (bond number), dated ----
, executed by ----, (former name), as principal, ----, (importer 
number), the, ---- (new name), hereby certifies that it is the same 
entity formerly known as ----, (former name), and the principal and 
surety agree that they are responsible 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 
executed in the principal's new name. This rider is effective on ---- 
(date).

    (2) Address change.

    By this rider to Customs Form 301, ---- (bond number) executed on --
-- (date), by ----, (principal's name), as principal, ----, (importer 
number), and ---- (surety's name and code), as surety, which is 
effective on ---- (date), the principal, surety or both, intend that the 
bond be amended to show ---- (new address) as their address. The 
principal, surety or both, as may be appropriate agree to be bound as 
though this bond has been executed with the new address(s) shown.

    (3) Addition or deletion of trade names and unincorporated divisions 
of a corporate principal--(i) Addition rider.

    By this rider to the Customs Form 301, ----, (bond number), executed 
on ----, (date), by ----, (principal's name), as principal, ----, 
(importer number) and ----, (surety's name and code), as surety, which 
is effective on ---- (date), the principal and surety agree that the 
below listed names are unincorporated units of the principal or are 
trade or business names used by the principal in its business and that 
this bond covers its business 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 principal and surety agree that any such act shall be 
considered to be the act of the principal.

    (ii) Deletion rider.

    By this rider to the Customs Form 301, ----, (bond number), executed 
on ----, (date), by ----, (principals name) as principal, ----, 
(importer number and ----, (surety's name and surety code), as surety, 
which is effective on ----, (date), the principal and surety

[[Page 599]]

agree that the below listed names of unincorporated 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.



Sec. 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. However, when the charter or 
governing statute of a corporation requires its acts to be evidenced by 
its corporate seal, such seal is required.



Sec. 113.26  Effective dates of bonds and riders.

    (a) General. Bonds including the application, if required by Sec. 
113.12, and riders may be filed up to 30 days before the effective date 
in order to provide adequate time for Customs administrative 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, Customs 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 unincorporated divisions of a corporate 
principal are effective on the effective date identified on the rider.
    (e) Rider to delete trade names and unincorporated divisions of a 
corporate principal. 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.



Sec. 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 director or drawback office 
in the case of a bond relating to repayment of erroneous 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 
effective on the close of business 10 business days after the request is 
received at the port or drawback office. If no termination date is 
requested, the termination shall take effect on the tenth business day 
following the date of receipt of the request by the port director, or 
drawback office in the case of bonds relating to repayment of erroneous 
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 
surety shall provide reasonable written notice to both the director of 
the port where the bond was approved or appropriate drawback office in 
the case of bonds relating to repayment of an erroneous drawback payment 
and the principal of the intent to terminate. The written notice shall 
state the date on which the termination shall be effective 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 satisfaction of the port director, or 
drawback office in the case of bonds relating to repayment of an 
erroneous drawback payment, that a lesser time is reasonable under the 
facts and circumstances.
    (c) Effect of termination. If a bond is terminated no new Customs 
transactions shall be charged against the bond. A new bond in an 
appropriate amount on Customs Form 301, containing the appropriate bond 
conditions set forth in subpart G of this part, shall be filed before 
further Customs activity may be transacted.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]

[[Page 600]]



                    Subpart D_Principals and Sureties



Sec. 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 Sec. 113.21.



Sec. 113.31  Same party as principal and surety; attorney in fact.

    (a) Same party as principal and surety. The same person, 
partnership, or corporation cannot be both principal and surety on a 
bond.
    (b) Attorney in fact for principal or surety. 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.



Sec. 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 partnership has been 
previously filed with the port director or drawback office in the case 
of a bond relating to repayment of erroneous drawback payment, the names 
of all persons composing the partnership shall appear in the body of the 
bonds.
    (2) Limited partnerships. Bonds submitted 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 partnership agreement. For this purpose, a partnership or a 
limited partnership means any business association recognized as such 
under the laws of the state where the association is organized.
    (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 immediately below the firm signature.
    (c) Action of one principal binding on all principals of the 
partnership. Pursuant to section 495, Tariff Act of 1930, as amended (19 
U.S.C. 1495), when a bond is executed by any member of the partnership, 
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 
partners 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]



Sec. 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 a rubber stamp or otherwise, followed by the written 
signature of the authorized officer or attorney.
    (b) Signature and seal of the corporation on the bond. The bond of a 
corporate 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 Sec. 113.25.
    (c) Bond executed by an officer of corporation. When a bond is 
executed by an officer of a corporation, a power of attorney shall not 
be required if the person signing the bond on behalf of the corporation 
is known to the port director or drawback office to be the president, 
vice president, treasurer, or secretary 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 requirements 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 principal and a power of 
attorney has not been filed with the port director (unless exempted from 
filing by Sec. 141.46 of this chapter), there shall be attached a power 
of attorney executed by an officer of the corporation whose authority to 
execute the power shall be shown as prescribed in paragraph (c) of this 
section.
    (e) Subsidiaries as co-principals. The provisions of this section 
shall be applicable to each corporate subsidiary

[[Page 601]]

which joins its parent corporation by signing the bond as co-principal.



Sec. 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 Sec. 113.24). A bond 
with co-principal may not be used to join different legal entities (e.g. 
an individual and a corporation, a partnership and a corporation).



Sec. 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 individual 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 capacity.
    (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 Customs bonds. Unless 
the power is unlimited, all persons to which the power relates shall be 
named.
    (4) Property requirements. Each individual surety must have property 
available as security within the limits of the port where the contract 
of suretyship is to be approved. The current 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 encumbrance, is 
equal to or greater than twice the amount of the bond.
    (c) Oath and evidence of solvency. Before being accepted as a 
surety, the individual 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.
    (2) Produce such evidence of solvency and financial responsibility 
as the port director may require.
    (d) Determination of financial responsibility. An individual surety 
shall not be accepted on a bond until the port director is satisfied as 
to the financial responsibility of the individual. The port director may 
refer the matter to the special agent-in-charge for immediate 
investigation to verify the financial responsibility of the surety.
    (e) Continuancy of financial responsibility. 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 individual surety as prescribed in paragraphs (c) 
and (d) of this section at least once every 6 months, and more often if 
deemed advisable.



Sec. 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 individual surety for a fellow partner on a bond if (a) the 
transaction is in an individual capacity and unrelated to the 
partnership, (b) sufficient unencumbered nonpartnership property is 
available as security, and (c) the individual qualifies as an individual 
surety under the provisions of Sec. 113.35 of this part.

[[Page 602]]



Sec. 113.37  Corporate sureties.

    (a) Lists of corporations and limits of their bonds. Treasury 
Department Circular 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 corporation 
shall be accepted as surety on a bond if not named in the current 
Circular as amended by Federal Register 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 Sec. 223.11, Bureau of 
Government Financial 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 authorized 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 executed 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 corporate surety, the agent or attorney shall place his/her social 
security number, as it appears on the corporate surety power of 
attorney.
    (e) Signature and seal of the corporation 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 Sec. 113.25.
    (f) Two or more corporate sureties as sureties on the same 
obligation. Two or more corporate sureties may be accepted as sureties 
on any obligation the amount of which does not exceed the limitations of 
their aggregate qualifying power as fixed and determined by the 
Secretary of the Treasury. The amount for which each corporate surety 
may act as surety in all cases must be within the limitation prescribed 
by the Secretary, unless the excess is protected as prescribed in Sec. 
223.11, Bureau of Government Financial Operations Regulations (31 CFR 
223.11). Each corporate 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

    ---- (name of surety), ---- (surety code), a surety company 
incorporated under laws of the State of ----, authorized to conduct a 
surety business in the State of ----, and having its principal place of 
business at ---- (address), and ---- (names of surety), ---- (surety 
code), a surety company incorporated under the laws of the State of ---- 
and having its principal place of business at ---- (address), as 
sureties, and ---- (name of principal), as principal, are jointly and 
severally obligated to the United States in the amount of ---- ($ ) on a 
bond executed on ---- (date of execution) with each surety jointly and 
severally obligate with the principal in the amounts listed below and no 
more:
     ---- (name of surety) ----
($ )
    ---- (name of surety) ----
($ )
    By this agreement the principal and sureties 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 ------------ day of ------------19----
    ----Principal
    ----Surety
    ----Surety
    ----Port 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 corporate surety power of attorney 
shall be executed on Customs Form 5297, and shall contain the following 
information:
    (i) Corporate surety name and number,
    (ii) Name and address of agent or attorney, and social security 
number of agent or attorney,
    (iii) Port(s) where the agent or attorney is authorized to act,
    (iv) Date of execution of power of attorney,

[[Page 603]]

    (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 printout. 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 printout 
reflecting this power of attorney is received, the Customs Form 5297, 
shall be filed in triplicate (original and two copies), rather than 
duplicate. The second copy shall be validated by Customs and returned to 
the grantee. The grantee, at the time of filing a bond at a port other 
than the port where the power of attorney was filed, shall provide this 
validated copy of the power of attorney as proof of the grant of 
authority. 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 
continue 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 revocation 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 revocation will be effective at the close of 
business 5 days after the request is received at the port office.
    (5) Change on the power of attorney. No change shall be made on the 
Customs Form 5297 after it has been approved by Customs except the 
following: (i) Grantee name change, (ii) grantee address change, and 
(iii) the addition of port(s) to the corporate surety power of attorney 
on file. To make any other change to the power of attorney 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]



Sec. 113.38  Delinquent sureties.

    (a) Acceptance as surety when in default 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 Customs bond.
    (b) Acceptance as surety when in default as surety on another 
Customs bond. A surety on a Customs bond which is in default may be 
accepted as surety on other Customs bonds only to the extent that the 
surety assets are unencumbered by the default.
    (c)(1) Nonacceptance of bond by port director. A port director may 
refuse to accept a bond secured by an individual or corporate surety 
when the surety, without just cause, is significantly delinquent either 
in the number of outstanding bills or dollar amounts thereof. 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 Sec. 177.11 from the Director, 
Border Security and Trade Compliance Division, CBP Headquarters.
    (2) Nonacceptance of bond upon instructions by Commissioner. The 
Commissioner may, when he believes the circumstances warrant, issue 
instructions 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 significantly delinquent either in the number of 
outstanding bills or dollar amounts thereof.
    (3) Notice of surety. The appropriate Customs officer may take the 
above actions only after the surety has been provided reasonable notice 
with an opportunity to pay delinquent amounts, provide justification for 
the failure to pay, or demonstrate the existence of a significant legal 
issue justifying further 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

[[Page 604]]

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 requested, 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 appropriate CBP officer shall notify the 
Director, Border Security and Trade Compliance Division, CBP 
Headquarters. 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 delinquencies are resolved, whichever is later.
    (6) Actions consistent with requirements. Any action not to accept 
the bonds of a surety under paragraphs (c) (1) and (2) of this section 
shall be consistent 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]



Sec. 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 following steps to recommend that the surety 
company be removed from Treasury Department Circular 570.
    (a) Report to Headquarters. A port director or Fines, Penalties, and 
Forfeitures Officer shall send the following evidence to Headquarters, 
Attn: Director, Border Security and Trade Compliance Division.
    (1) A copy of the bond in issue;
    (2) A copy of the entry or other evidence which shows that there was 
a default on the bond;
    (3) A copy of all notices, demands or correspondence sent to the 
surety company 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 
performance by the surety company of the bond obligation(s).
    (b) Review by Headquarters. The Director, Border Security and Trade 
Compliance Division, shall review submitted evidence and determine 
whether further action against the surety company is warranted. If it is 
determined that further action is warranted, a report recommending 
appropriate action will be submitted to the Fiscal Assistant Secretary, 
Department of the Treasury, as required by Sec. 223.18(a), Bureau of 
Government Financial Operations Regulations (31 CFR 223.18(a)). The port 
director and Fines, Penalties, and Forfeitures Officer will be informed 
in writing of Headquarters action regarding their request for removal 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]



Sec. 113.40  Acceptance of cash deposits or obligations of the United States in lieu of sureties on bonds.

    (a) General provision. In lieu of sureties on any bond required or 
authorized by any law, regulation, or instruction which the Secretary of 
the Treasury or the Commissioner of Customs is authorized to enforce, 
the port director is authorized to accept United States money, United 
States bonds (except for savings bonds), United States certificates of 
indebtedness, Treasury notes, or Treasury bills in an amount equal to 
the amount of the bond.
    (b) Authority to sell United States obligations on default. At the 
time of deposit of any obligation of the United States, other than 
United States money, with the port director or other

[[Page 605]]

appropriate Customs officer, the obligor shall deliver a duly executed 
power of attorney and agreement authorizing the port director or other 
appropriate Customs officer, as, in case of any default in the 
performance of any of the conditions of the bond, to sell the obligation 
so deposited and to apply the proceeds of sale, in whole or in part, to 
the satisfaction of any damages, demands, or deficiency arising by 
reason of default. The format of the power of attorney and agreement, 
when the obligor 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)

    ----, (name of corporation) a corporation duly incorporated under 
the laws of the State of ----, and having its principal office in the 
City of ----, State of ----, as authorized by a resolution of the board 
of directors of the corporation, passed on the ---- day of ----, 19--, a 
duly certified copy of which is attached, does constitute and appoint --
-- (name and official title of bond-approving officer), and his 
successors in office, as attorney for said corporation, for and in the 
name of the corporation to collect or to sell, assign, and transfer the 
securities described as follows:
________________________________________________________________________

The securities having been deposited by it as security for the 
performance of the agreements undertaken in a bond with the United 
States, executed on the date of --------, 19--, the terms and conditions 
of which are incorporated 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 appraisement or valuation, notice and right to 
redeem 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 ------ day of -------------- 
19----.
[Corporate seal.]
By ----_________________________________________________________________
    Before me, the undersigned, a notary public within and for the 
County of ------------, in the State of ------------ (or the District of 
Columbia), personally appeared ------------------------ (name and title 
of officer) and for and in behalf of said --------------------, a 
corporation, acknowledged the execution of the foregoing power of 
attorney.
    Witness my hand and notarial seal this -------- day of ------------
--, 19----;.
[Notarial seal.]
Notary Public --------------------

    Note: Securities must be described by title, date of maturity, rate 
of interest, denomination, serial number, and whether coupon or 
registered. Failure to give a complete description will warrant 
rejection of this power of attorney.

    (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 default under the bond.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]



                    Subpart E_Production of Documents



Sec. 113.41  Entry made prior to production of documents.

    When entry is made prior to the production 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.



Sec. 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 document, or within any extension of such time which may 
be granted pursuant to Sec. 133.43(a). If the period ends on a 
Saturday, Sunday, or holiday, delivery on

[[Page 606]]

the next business day shall be accepted as timely.

[T.D. 85-167, 50 FR 40363, Oct. 3, 1985]



Sec. 113.43  Extension of time period.

    (a) Application received within time period. If a document referred 
to in Sec. 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 discretion, 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 reduced-duty document prior to 
liquidation. When a bond is given for the production 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]



Sec. 113.44  Assent of sureties to an extension of a bond.

    (a) Extension prescribed by law or regulations. The assent of the 
sureties to any extension of the period prescribed in a bond is not 
necessary when the extension is authorized by law or regulations.
    (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 authorized by law or regulation, is allowed.



Sec. 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 document, 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 transaction been covered by a single entry bond.



        Subpart F_Assessment of Damages and Cancellation of Bond



Sec. 113.51  Cancellation of bond or charge against the bond.

    The Commissioner of Customs may authorize the cancellation of any 
bond 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.



Sec. 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 Sec. Sec. 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 prosecution unless measures have been taken to 
file an application for relief or protest in accordance with the 
provisions of this chapter or to satisfactorily 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]



Sec. 113.53  Waiver of Customs requirement supported by a bond.

    (a) Waiver by the Commissioner of Customs. When a Customs 
requirement supported by a bond is waived by the Commissioner of 
Customs, the waiver may be:
    (1) Unconditional, in which case the importer is relieved from the 
payment of liquidated damages;

[[Page 607]]

    (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 
Commissioner 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.



Sec. 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]



Sec. 113.55  Cancellation of export bonds.

    (a) Manner of cancellation. A bond to assure exportation as defined 
in Sec. 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 certificate if the 
certificate is required by the port director.
    (2) Upon payment of liquidated damages. 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 complied with upon the production of the applicable 
documents listed in paragraph (a)(1) of this section.
    (c) Foreign landing certificate. A foreign 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 merchandise is exported, unless it is shown that 
the country has no Customs administration, in which case the certificate 
may be signed by the consignee or by the vessel's agent at the place of 
landing. Landing certificates are required in the following cases:
    (1) Mandatory. A landing certificate shall be required in every case 
to establish the exportation of narcotic drugs or any equipment, stores 
(except such articles as are placed on board vessels or aircraft under 
the provisions of section 309 or 317, Tariff Act of 1930, as amended (19 
U.S.C. 1309, 1317)), or machinery for vessels.
    (2) Optional with the port director. A landing certificate may be 
required by the port director for merchandise exported from the United 
States, or residue cargo, when a certificate is deemed necessary for the 
protection of the revenue.
    (3) Waiver. Except as provided in Sec. 4.88 of this chapter, in 
cases where landing certificates are required and they cannot 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 Customs 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 
extension), the bond may be cancelled upon production of evidence of 
exportation satisfactory to the port director.



                    Subpart G_Customs Bond Conditions



Sec. 113.61  General.

    Each section in this subpart identifies specific coverage for a 
particular Customs activity. When an individual or organization files a 
bond with Customs 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 activity will be incorporated by reference into the 
bond.

[[Page 608]]



Sec. 113.62  Basic importation and entry bond conditions.

    A bond for basic importation and entry shall contain the conditions 
listed 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 imported and released from Customs custody or withdrawn from a 
Customs bonded warehouse into the commerce of, or for consumption in, 
the United States, or under Sec. 181.53 of this chapter is withdrawn 
from a duty-deferral program for exportation to Canada or Mexico or for 
entry into a duty-deferral program in Canada or Mexico, the obligors 
(principal and surety, jointly and severally) agree to:
    (i) Deposit, within the time prescribed by law or regulation, any 
duties, taxes, and charges imposed, or estimated to be due, at the time 
of release 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 merchandise into a Customs bonded 
warehouse, 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 withdrawn by the principal, 
or by the principal's transferee, or is unlawfully removed 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 obligation 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 duties, 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 
merchandise 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 Sec. 10.62b of this chapter), 
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 merchandise may be released from Customs 
custody;
    (2) Properly assess duties on the merchandise;
    (3) Collect accurate statistics with respect to the merchandise; and
    (4) Determine whether applicable requirements 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 evidence is produced, the principal agrees to furnish Customs with 
any document or evidence as required by law or regulation, and within 
the time specified by law or regulations.
    (d) Agreement to Redeliver Merchandise. If merchandise is released 
conditionally 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 determined, the 
principal agrees to redeliver 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 
regulation.

It is understood that any demand for redelivery will be made no later 
than 30 days after the date that the merchandise was released or 30 days 
after the end of the conditional release period (whichever is later). 
(See Sec. Sec. 141.113(b), 12.73(b)(2), and 12.80 of this chapter.)

[[Page 609]]

    (e) Agreement to Rectify Any Non-Compliance with Provisions of 
Admission. If merchandise is released conditionally to the principal 
before its right of admission into the United States is determined, the 
principal, after notification, agrees to mark, clean, fumigate, destroy, 
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 notification.
    (f) Agreement for Examination of Merchandise. If the principal 
obtains permission to have any merchandise examined elsewhere than at a 
wharf or other place in charge of a Customs officer, the principal 
agrees to:
    (1) Hold the merchandise at the place of examination until the 
merchandise is properly released;
    (2) Transfer the merchandise to another 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 expenses of any Customs officer, as 
required by law or regulation; and
    (2) Exonerate the United States and its officers from any risk, 
loss, or expense arising out of principal's importation, entry, or 
withdrawal of merchandise.
    (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 reduced rate of duty and tax, as permitted under the law, the 
principal agrees:
    (1) To use and handle the merchandise 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 Customs within 24 hours on each arrival of the vessel in 
the Customs territory of the United States from a fishing voyage;
    (3) To furnish timely proof to Customs that any merchandise entered 
or withdrawn under any law permitting duty-free treatment was used in 
accordance with that law; and
    (4) To keep safely all withdrawn beverages 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 security areas at airports. If access to the Customs security 
areas at airports is desired, the principal (including its employees, 
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 
severally) agree to pay liquidated damages of $1000 for each default or 
such other amount as may be authorized by law or regulation.
    (j) Agreement to comply with electronic entry and/or advance cargo 
information filing requirements. (1) If the principal is qualified to 
utilize electronic entry filing as provided for in part 143, subpart D, 
of this chapter, the principal agrees to comply with all conditions set 
forth in that subpart 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 information to Customs and Border Protection (CBP) electronically, 
the principal agrees to provide such cargo information to CBP in the 
manner and in the time period required, respectively, under Sec. 
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 regulation violated.
    (k) 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 requirement 
that the Government of Canada issue an export permit pursuant to the 
Softwood Lumber Agreement, the principal agrees, as set forth in Sec. 
12.140(a) of this chapter, to assume the obligation to ensure within 20 
working days of release of the merchandise, and establish to the 
satisfaction of Customs, that the applicable export permit has been 
issued by the Government of Canada.

[[Page 610]]

    (l) Consequence of default. (1) If the principal defaults on 
agreements in this condition other than conditions in paragraphs (a), 
(g), (i), (j)(2), or (k) 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 
default if the merchandise is restricted or prohibited merchandise or 
alcoholic beverages, or such other amount as may be authorized by law or 
regulation.
    (2) It is understood and agreed that whether the default involves 
merchandise 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 agreements in this condition other 
than conditions (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 agreements 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 liquidated 
damages equal to two times the unpaid duties, taxes and charges 
estimated to be due or $1,000, whichever is greater. A default on the 
condition 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 Sec. 24.1(a) of this chapter is 
returned unpaid by a financial institution, or if a payment authorized 
under Automated Clearinghouse (see Sec. 24.25 of this chapter) is not 
transmitted electronically to Customs in a timely manner. If the 
principal defaults 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 assessed shall be as provided in paragraph (l)(1) of 
this section for a default of the agreements in the condition set forth 
in paragraph (b) of this section. For purposes of this paragraph, the 
phrase ``unpaid duties, taxes and charges'' shall include any 
appropriate ad valorem fees described in Sec. 24.23 of this chapter, 
fees relating to dutiable mail described in Sec. 24.22(f) of this 
chapter, and harbor maintenance fees described in Sec. 24.24(e)(3) (i) 
and (ii) of this chapter.
    (5) If the principal defaults on agreements in the condition set 
forth in paragraph (k) of this section only, the obligors agree to pay 
liquidated damages 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]



Sec. 113.63  Basic custodial bond conditions.

    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 principal agrees:
    (1) To operate as a custodian of any bonded merchandise received, 
including merchandise collected for transport to his facility, and to 
comply with all regulations regarding the receipt, carriage, 
safekeeping, and disposition of such merchandise;
    (2) To accept only merchandise authorized 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 alternative transfer procedure set 
forth in Sec. 144.34(c) of this chapter, to operate as constructive 
custodian for all merchandise transferred under those procedures, 
thereby assuming primary responsibility for the continued proper custody 
of the merchandise notwithstanding its geographical location;

[[Page 611]]

    (5) If authorized to operate a container station under the Customs 
Regulations, to report promptly to Customs each arrival of a container 
and its merchandise by delivery of the manifest and the application for 
transfer, or by other approved notice.
    (b) Carriage and Safekeeping of Merchandise. The principal agrees:
    (1) If a bonded carrier, to use only authorized 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 preservation;
    (3) To comply with Customs Regulations relating to the handling of 
bonded merchandise; and
    (4) If authorized to use the alternative transfer procedure set 
forth in Sec. 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 approved notice;
    (2) If a cartage or lighterage business, to deliver promptly and 
safely to Customs 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 
Regulations; and
    (4) To file timely with Customs any report required by Customs 
Regulations.
    (5) In the case of Class 9 warehouses, to provide reasonable 
assurance of exportation of merchandise withdrawn under the sales ticket 
procedure of Sec. 144.37(h) of this chapter.
    (d) Agreement to Redeliver Merchandise to Customs. If the principal 
is designated a bonded carrier, or licensed to operate a cartage or 
lighterage business, or authorized to use the alternative transfer 
procedure set forth in Sec. 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 demand for redelivery 
shall be made no later than 30 days after Customs discovers the improper 
delivery.
    (e) Compliance with Licensing and Operating 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 security areas at airports. If access to Customs security areas 
at airports is desired, the principal (including its employee, agents, 
and contractors) agrees to comply with the Customs Regulations 
applicable to Customs security areas at airports. If the principal 
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 regulation.
    (g) Reimbursement and Exoneration of the United States. The 
principal and surety agree to:
    (1) Pay the compensation and expenses of any Customs officer as 
required by law or regulation;
    (2) Pay the cost of any locks, seals, and other fastenings required 
by Customs Regulations for securing merchandise placed in the 
principal's custody;
    (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 expense arising out of the principal's custodial operation; and
    (5) Pay any charges found to be due Customs arising out of the 
principal's custodial operation.
    (h) Consequence of Default. (1) If the principal defaults on 
conditions (a) through (e) in this agreement, 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 default if the merchandise 
is restricted or prohibited merchandise or alcoholic beverages, or such 
other amount as may be authorized by law or regulation.

[[Page 612]]

    (2) It is understood and agreed that the amount to be collected 
under conditions (a) through (e) of this agreement 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 conditions (a) through (e) in this 
agreement 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. It is understood and 
agreed that whether the default involves merchandise is determined 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]



Sec. 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 carrier as defined in Sec. 4.7(b)(3)(ii) of 
this chapter or other party as specified in Sec. 122.48a(c)(1)(ii)-
(c)(1)(iv) of this chapter, 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 
Border Protection (CBP). If the principal (carrier) fails to pay 
passenger processing fees to Customs no later than 31 days after the 
close of the calendar quarter in which they were collected pursuant to 
Sec. 24.22(g) of this chapter, the obligors (principal and surety, 
jointly and severally) agree to pay liquidated 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 letters, 
documents, records, shipments, merchandise, or other items on or before 
the last day of the month that follows the close of the calendar quarter 
to which the processing fees relate pursuant to Sec. 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 processing fees 
not timely paid to CBP as prescribed by regulation.
    (b) Agreement on Unlading, Safekeeping, and Disposition of 
Merchandise, Supplies, Crew Purchases, Etc. The principal agrees to 
comply with all laws and Customs Regulations applicable to unlading, 
safekeeping, and disposition of merchandise, supplies, crew purchases, 
and other articles on board the vehicle, vessel, or aircraft; and to 
redeliver the foregoing to Customs upon demand as provided by Customs 
Regulations. If principal defaults, 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 default if the 
merchandise is restricted 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) Non-vessel operating common carrier (NVOCC); other party. If a 
slot charterer, non-vessel operating common carrier (NVOCC) as defined 
in Sec. 4.7(b)(3)(ii) of this chapter, or other party specified in 
Sec. 122.48a(c)(1)(ii)-(c)(1)(iv) of this chapter, elects to provide 
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 
information to CBP in the manner and in the

[[Page 613]]

time period required under those respective sections. If the NVOCC or 
other party, as principal, defaults with regard to these obligations, 
the principal and surety (jointly and severally) agree to pay liquidated 
damages of $5,000 for each regulation violated.
    (d) Agreement to Deliver Export Documents. If the principal's 
vessel, vehicle, or aircraft is granted clearance without filing a 
complete outward manifest and all required export documents, the 
principal agrees to file timely the required 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.
    (e) Agreement to comply with Customs Regulations applicable to 
Customs security areas at airports. If access to Customs security areas 
at airports is desired, the principal (including its employees, agents, 
and contractors) agrees to comply with the Customs Regulations 
applicable to Customs security areas at airports. If the principal 
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 regulation.
    (f) 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.
    (g) 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 vessel, vehicle, 
or aircraft for exportation or to be otherwise disposed of without 
written permission from Customs, and that if it fails to prevent such 
placement or other disposition, it will redeliver the merchandise to 
Customs within 30 days, upon demand made within 10 days of Customs 
discovery of the unlawful placement or other disposition.
    (2) Principal agrees that it will act, in regard to merchandise in 
its possession on the date the redelivery demand is issued, in 
accordance with any Customs demand for redelivery made within 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 principal defaults in either of these 
obligations, they will pay, as liquidated damages, 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]



Sec. 113.65  Repayment of erroneous drawback payment bond conditions.

    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 Summary Procedure. If the principal 
is permitted 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 exportation in the claim; the 
principal and surety, jointly and severally agree to refund, on demand, 
any money claimed by Customs to have been erroneously 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.
    (b) Agreement Under Accelerated Payment of Drawback. If the 
principal receives an accelerated payment of drawback based on the 
principal's calculation of the drawback claim, the principal and surety, 
jointly and severally agree to refund on demand the full

[[Page 614]]

amount of any overpayment, as determined 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]



Sec. 113.66  Control of containers and instruments 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 Instruments 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 payment of duty, as provided by the Customs 
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 territory 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 instrument at the rate in effect and in 
its condition on the date of diversion or withdrawal.
    (b) Agreement to Comply With the Provisions of subheading 
9801.00.10, or 9803.00.50 Harmonized Tariff Schedule of the United 
States (HTSUS). If the principal gets free release of any serially 
numbered shipping container classifiable under subheading 9801.00.10 or 
9803.00.50, HTSUS, the principal agrees:
    (1) Not to advance the value or improve its condition abroad or 
claim (or make a previous claim) drawback on, any container released 
under subheading 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 container if taken out of 
service; and
    (5) To remove or strike out the markings on that container when it 
is taken out of service or when the principal transfers ownership of it.
    (c) Agreement to comply with application approved under 19 CFR 
10.41b(b). If the principal establishes a program for the cross-border 
movements of shipping devices based upon an application approved as 
provided in Sec. 10.41b(b) of this chapter (19 CFR 10.41b(b)), the 
principal agrees:
    (1) To timely file complete and accurate 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 application;
    (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 
application.
    (d) Consequence of Default. (1) If the principal defaults on 
agreements in these conditions, 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 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 default does not involve merchandise, the obligors agree to pay 
liquidated damages of $1,000 for each default or

[[Page 615]]

such other amount as may be authorized by law or regulation. It is 
understood and agreed that whether the default involves merchandise is 
determined 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]



Sec. 113.67  Commercial gauger and commercial laboratory bond conditions.

                    Commercial Gauger Bond Conditions

    (a) Commercial gauger bond conditions. A commercial gauger's bond 
shall contain the conditions listed in this section and shall be a 
continuous bond.
    (1) If the principal is a commercial gauger whose reports of gauging 
or whose samples are accepted for Customs purposes, the principal agrees 
to:
    (i) Gauge or sample merchandise according to the standards and 
procedures set out in the Customs Regulations;
    (ii) Abide by the requirements set out in Sec. 151.13(b) of this 
chapter; and
    (iii) Submit properly any required report, proof, abstract, or 
sample to Customs.
    (2)(i) If the principal defaults, the obligors (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 default 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 authorized by law or regulation.
    (iii) It is understood and agreed that whether the default involves 
merchandise is determined by Customs, that the amount to be collected 
under this condition shall be based on the quantity 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 conditions. A commercial laboratory's 
bond shall contain the conditions listed in this subsection and shall be 
a continuous bond.
    (1) If the principal is a commercial laboratory whose laboratory 
analysis reports are accepted for Customs purposes, the principal agrees 
to:
    (i) Conduct laboratory analyses according to the standards and 
procedures set out in the Customs Regulations;
    (ii) Abide by the requirements set out in Sec. Sec. 151.12(c) and 
151.14 of this chapter; and
    (iii) Submit properly any required report, proof, abstract, or 
sample to Customs.
    (2)(i) If the principal defaults, 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 default 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 authorized by law or regulation.
    (iii) It is understood and agreed that whether the default involves 
merchandise is determined by Customs, that the amount to be collected 
under this condition shall be based on the quantity 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]



Sec. 113.68  Wool and fur products labeling acts and fiber products identification act bond conditions.

    A bond to comply with wool and fur products labeling acts and fiber 
products identification act shall contain

[[Page 616]]

the conditions listed in this section and shall be a single entry bond.

 Wool and Fur Products Labeling Acts and Fiber Products Identification 
                                   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 merchandise 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 Labeling Act of 1939, the Fur 
Products Labeling Act, or the Fiber Products Identification Act, the 
obligors (principal or surety, jointly and severally) agree to pay 
liquidated damages equal to two times the value of the merchandise 
involved in the default and duty thereon. 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.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88-72, 53 
FR 45902, Nov. 15, 1988]



Sec. 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 Customs, the obligors 
(principal and surety, jointly and severally) agree to:
    (a) Produce timely a valid bill of lading for the merchandise; and
    (b) Relieve the United States and its employees from all liability, 
to indemnify the United States and its employees 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]



Sec. 113.70  Bond condition to indemnify United States for detention of copyrighted material.

    A bond to indemnify the United States for detention of copyrighted 
material shall contain the conditions listed in this section and shall 
be a single entry bond.

 Bond Condition To Indemnify United States for Detention of Copyrighted 
                                Material

    If Customs detains any articles alleged by the principal to be a 
piratical copy of material covered by the principal's copyright pending 
a final determination whether the articles are prohibited 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 articles and any loss or damage 
caused by the detention in the event it is finally 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]



Sec. 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 principal's vessel, which is 
armed or is built for a war-like purpose, with a cargo of arms and 
munitions, so that it is likely to be used to commit hostilities 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

[[Page 617]]

country, state, colony, or people with whom the Government is at peace.
    (b) If the principal defaults, the obligors (principal and surety, 
jointly and severally) agree to pay liquidated damages 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]



Sec. 113.72  Bond condition to pay court costs (condemned goods).

    A bond to pay court costs (condemned goods) shall contain the 
condition 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 principal are condemned the 
obligors (principal and surety, jointly and severally) agree to pay all 
costs of the condemnation proceedings.

[T.D. 84-213, 49 FR 41171, Oct. 19, 1984, as amended by T.D. 88-72, 53 
FR 45902, Nov. 15, 1988]



Sec. 113.73  Foreign trade zone operator bond conditions.

    A bond of a foreign trade zone operator shall contain the conditions 
listed in this section and shall be a continuous bond.

               Foreign Trade Zone Operator Bond Conditions

    If the principal is authorized to operate 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 merchandise received and receipted for transport to his 
zone), admission, status, handling, transfer, and removal of merchandise 
from the foreign trade zone or subzone, and
    (2) The Customs Regulations concerning the maintenance of inventory 
control and recordkeeping systems covering merchandise in the foreign 
trade zone or subzone. If the principal defaults and the default 
involves merchandise other than domestic merchandise 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 default if the merchandise is restricted or 
prohibited merchandise or alcoholic beverages, or such other amount as 
may be authorized by law or regulation. It is understood and agreed that 
whether the default involves merchandise is a determination made by 
Customs, that the amount to be collected under this condition shall be 
based upon the quantity 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. If the principal defaults 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 regulations.
    (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 understood and agreed that the amount of 
said duties, taxes, and charges shall be determined solely by Customs.
    (c) Reimbursement and Exoneration of the United States. The obligors 
agree to:
    (1) Exonerate the United States and its officers from any risk, 
loss, or expense arising from the principal's operation of the foreign 
trade zone or subzone;
    (2) Pay the compensation and expenses of any Customs officer, as 
required by law or regulations.
    (d) Payment of Annual Fee. The principal 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 annual fee for each of the first seven days the 
annual fee is in arrears, two percent of the annual fee for each of the 
succeeding seven days the annual fee is

[[Page 618]]

in arrears, and three percent of the annual 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]



Sec. 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]



Sec. 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 completion 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 Sec. 4.94a of this chapter.

[68 FR 13626, Mar. 20, 2003]



     Sec. Appendix A to Part 113--Airport Customs Security Area Bond

                   Airport Customs Security Area Bond

________________________________________________________________________
(name of principal)

of______________________________________________________________________
and_____________________________________________________________________
________________________________________________________________________
(name of surety)

of______________________________________________________________________
are held and firmly bound unto the United States of America in the sum 
of -------- dollars ($----), for the payment of which we bind ourselves, 
our heirs, executors, administrators, successors, and assigns, jointly 
and severally, firmly by these presents.
    WITNESS our hands and seals this ---------------- day of ----------
--, 19----.
    WHEREAS, the principal (including the principal's employees, agents, 
and contractors) desires access to Customs airports security areas 
located at -------- Airport during the period of one year beginning on 
the ------------ day of --------------, 19----, and ending on the ------
-------- day of --------, 19----, 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--

________________________________________________________________________
________________________________________________________________________
Name

Address

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Name

Address

Principal (SEAL)

________________________________________________________________________
________________________________________________________________________
Name

Address

________________________________________________________________________
________________________________________________________________________
Name

Address

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Name
Address

Surety (SEAL)

________________________________________________________________________
________________________________________________________________________
Name

Address

[54 FR 10536, Mar. 14, 1989]



Sec. Appendix B to Part 113--Bond To Indemnify Complainant Under Section 
                   337, Tariff Act of 1930, as Amended

    This appendix contains the bond to indemnify a complainant under 
section 337 of the Tariff Act of 1930, as amended. The provisions 
contained in Sec. Sec. 12.39(b)(2) and 113.74 of the Customs 
Regulations (19 CFR Chapter I) and Sec. 210.50(d) of the U.S. 
International Trade Commission Regulations (19 CFR Chapter II) apply.

[[Page 619]]

 Bond Toto Indemnify Complainant Under Section 337, Tariff Act of 1930, 
                               As Amended

    ------------ as principal and -------- as surety, are held and bound 
to ------------, as the complainant in U.S. International Trade 
Commission case/investigation number --------, 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 -------- dollars ($------
--), 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 merchandise --
-------------------------------------- under entry number ------------, 
dated ------------.
    The principal and surety recognize that the Commission has excluded 
that merchandise 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 Commission's prohibition is in effect.
    The principal and surety recognize that the principal desires to 
obtain a release of that merchandise pending a final determination 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 obligated to export or destroy under Customs supervision the 
merchandise released under this stipulation within 30 days from the date 
of the port director's notification.
    The principal and surety, jointly and severally, 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 -------- day of ------------ 
(month), -------- (year).
---------------- (seal)
Principal
---------------- (seal)
Surety

[T.D. 00-87, 65 FR 77815, Dec. 13, 2000; 65 FR 80497, Dec. 21, 2000]



 Sec. Appendix C to Part 113--Bond for Deferral 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

    --------, as principal, and --------, as surety, are held and firmly 
bound to the UNITED STATES OF AMERICA in the sum of -------- dollars 
($--------), for the payment 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 -------- a dutiable large yacht (exceeding 79 
feet in length, used primarily for recreation or pleasure, and 
previously sold by a manufacturer or dealer to a consumer) identified as 
-------- for sale at a boat show in the United States with deferral of 
entry completion and duty deposit and has executed this obligation as a 
condition precedent 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 
condition of this obligation, which includes compliance with any 
requirement or condition set forth in 19 U.S.C. 1484b or 19 CFR 4.94a, 
the principal and surety jointly and severally agree to pay to Customs 
an amount of liquidated damages equal to twice the amount of duty on the 
large yacht that would otherwise be imposed under subheading 8903.91.00 
or 8903.92.00 of the Harmonized 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 expense 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 officer, 
agent, or other person employed by the principal.
    WITNESS our hands and seals this -------- day of -------- (month), 
-------- (Year).

________________________________________________________________________
    (Name) (Address)
________________________________________________________________________
------------------------------ [SEAL]
    (Principal)
________________________________________________________________________

[[Page 620]]

------------------------------ [SEAL]
    (Name) (Address)
------------------------------ [SEAL]
    (Surety)

                  Certificate as to Corporate Principal

    I, ----------, certify that I am the* ---------- of the corporation 
named as principal in the attached bond; that ----------, who signed the 
bond on behalf of the principal, was then ---------- of that 
corporation; that I know his signature, and his signature to the bond is 
genuine; and that the bond was duly signed, sealed, and attested for and 
in behalf of the corporation by authority to its governing body.

------------------------------
    (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, assistant secretary, or other 
officer of the corporation.

[68 FR 13626, Mar. 20, 2003]



PART 114_CARNETS--Table of Contents




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 cancellation 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.



Sec. 114.0  Scope.

    This part is concerned with the use of international Customs 
documents known as carnets. It also contains provisions concerning the 
approval of associations 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 simultaneously as 
a Customs entry document and as a Customs bond.



                      Subpart A_General Provisions



Sec. 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 association'' means an 
association approved by the Commissioner for the issue of carnets in the 
Customs territory of the United States under a Customs Convention or 
bilateral Agreement to which the United States has acceded.
    (c) Guaranteeing association. ``Guaranteeing association'' means an 
association approved by the Commissioner to guarantee the payment of 
obligations under carnets covering merchandise 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 reproduced 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'' (Transport International Routier) 
means the document reproduced as Annex 1 to the Customs Convention on 
the International 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 
Cultural Representative Office (TECRO) and the American Institute in 
Taiwan

[[Page 621]]

(AIT) to cover the temporary admission 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]



Sec. 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 
Admission of Goods (hereinafter referred to as A.T.A. Convention).
    (b) [Reserved]
    (c) Customs Convention on the International Transport of Goods Under 
Cover of TIR Carnets, done at Geneva 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 referred 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]



Sec. 114.3  Carnets.

    (a) Use. A carnet issued in conformity with the provisions of a 
Convention or Agreement identified in Sec. 114.2 and with the 
regulations in this part shall serve as an entry document within the 
scope contemplated by the applicable Convention or Agreement and as a 
bond for the performance of acts in compliance with the provisions of 
such Convention or Agreement and the Customs statutes and regulations 
which are involved. 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 amended by T.D. 98-10, 63 FR 
4168, Jan. 28, 1998]



             Subpart B_Issuing and Guaranteeing Associations



Sec. 114.11  Approval.

    (a) Documents to be furnished. Before an association may be approved 
to serve as issuing association or guaranteeing association in the 
United States with respect to carnets authorized under a Customs 
Convention or Agreement to which the United States has acceded, such 
association shall furnish the Commissioner a written undertaking, in a 
form satisfactory to the Commissioner, to perform the functions and 
fulfill the obligations specified in the Convention or Agreement under 
which carnets are to be issued or guaranteed. Evidence of affiliation 
with an appropriate international organization shall also be required if 
affiliation with such an organization is required 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 association 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 Commissioner.

[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]



Sec. 114.12  Termination of approval.

    (a) For cause. The Commissioner may suspend or revoke the approval 
previously given to any issuing association 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 termination of the affiliation with an appropriate 
international organization

[[Page 622]]

required by Sec. 114.11(a). Before such suspension or revocation, the 
Commissioner shall give the association a reasonable opportunity to 
refute the alleged failure of compliance.
    (b) Withdrawal. To be relieved of future obligations, an approved 
guaranteeing association must notify the Commissioner, in writing, not 
less than 6 months in advance of a specified termination date that it 
will not guarantee the payment of obligations under carnets accepted by 
district directors of Customs after the specified date. The receipt of 
such notice by the Commissioner will in no way affect the responsibility 
of the guaranteeing association 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 association or a guaranteeing association, or of the 
withdrawal of an approved guaranteeing association, with respect to a 
Customs Convention to which the United States has acceded will be 
published in the Federal Register 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



Sec. 114.21  Acceptance.

    A carnet executed in accordance with Sec. 114.3 shall be accepted 
provided that when the carnet is presented an association for the 
guaranteeing of such carnets has been approved in accordance with Sec. 
114.11 and such approval has not been terminated as provided for in 
Sec. 114.12.



Sec. 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 
Commercial Samples and Advertising Material, which includes:
    (i) Commercial samples, or
    (ii) Motion picture advertising films not exceeding 16 mm., 
consisting essentially of photographs (with or without sound track) 
showing the nature or operation of products or equipment whose qualities 
cannot be adequately demonstrated by samples or catalogs. There shall be 
presented with each carnet covering motion picture advertising 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 exhibition 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 
journey between the customs offices of departure 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 Convention. The TIR carnet 
covers the transportation of merchandise for customs purposes only. Road 
vehicles transporting merchandise under cover of a TIR carnet must also 
comply with all other applicable requirements of Federal 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 thereby is receipted for by the bonded carrier (see Sec. Sec. 
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

[[Page 623]]

to be temporarily imported, unless importation is prohibited under the 
laws and regulations of the United States:
    (i) Professional equipment; and
    (ii) Commercial samples and advertising material imported for the 
purpose of being shown or demonstrated with a view to soliciting orders.
    (2) Issue and use. (i) Issuing associations shall indicate on the 
cover of the TECRO/AIT carnet the customs territory in which it is valid 
and the name and address of the guaranteeing association.
    (ii) The period fixed for re-exportation 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 covered by a carnet exceeds the amount for which the 
guaranteeing association 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]



Sec. 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 accepted. 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 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]



Sec. 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 enumerated 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]



Sec. 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 replacement document, the validity of which expires on 
the same date as that of the carnet which it replaces, provided the port 
director determines that the description of merchandise in the 
replacement document fully corresponds 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]



Sec. 114.26  Discharge, nonacceptance, or cancellation of carnets.

    (a) Unconditional discharge. An A.T.A. or TECRO/AIT carnet shall be 
discharged unconditionally by the port director when he is satisfied 
that all merchandise covered thereby is reexported 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 supervision. In all other cases, any discrepancy shall be 
noted on the appropriate counterfoil, and action shall be taken in 
accordance with Sec. 10.39 or Sec. 18.6 of this chapter.
    (b) Effect of discharge. When a port director has discharged a 
carnet unconditionally by completion of the appropriate counterfoil, no 
claim may be brought against the guaranteeing association 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 conditions of 
temporary importation.
    (c) Nonacceptance or cancellation of TIR carnets. If a TIR carnet 
presented

[[Page 624]]

to Customs is not accepted, it shall be stamped ``Not Taken on Charge'' 
(see Sec. 114.22(c)(2)). If merchandise not required to be transported 
in bond moving 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 amended by T.D. 82-116, 47 FR 
27262, June 24, 1982; T.D. 98-10, 63 FR 4168, Jan. 28, 1998]



                         Subpart D_Miscellaneous



Sec. 114.31  Restrictions.

    (a) Mail importations. Carnets shall not be accepted for 
importations by mail.
    (b) Temporary importations. Merchandise not entitled to temporary 
importation under bond shall not be imported under cover of an A.T.A. or 
TECRO/AIT carnet.
    (c) Transportation in bond. Except as provided in Sec. 18.43 of 
this chapter, merchandise 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 amended by T.D. 85-180, 50 FR 
42517, Oct. 21, 1985; T.D. 98-10, 63 FR 4168, Jan. 28, 1998]



Sec. 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 person 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. Convention 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]



Sec. 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 applicable 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]



Sec. 114.34  Cancellation of erroneous charges.

    (a) TIR carnet. When it is determined that liquidated damages 
assessed or paid for any shortage, irregular delivery, or nondelivery of 
merchandise covered by a TIR carnet did not in fact accrue, the 
liquidated damages shall be cancelled by the port director and, if paid, 
refunded, as provided by Sec. 18.8 of this chapter.
    (b) A.T.A. or TECRO/AIT carnet. When it is determined that 
liquidated damages assessed or paid for failure to properly reexport or 
destroy merchandise temporarily imported under cover of an A.T.A. or 
TECRO/AIT carnet did not in fact accrue, the liquidated damages shall be 
cancelled by the port director and, if paid, refunded as provided by 
Sec. 10.39 of this chapter.
    (c) Determination dependent upon a construction of law. When the 
determination 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, unless 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 CERTIFICATION PURSUANT TO INTERNATIONAL CUSTOMS CONVENTIONS--Table of Contents




                            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 responsibilities--road vehicles.
115.9 Certifying Authorities responsibilities--containers.
115.10 Certificate of approval.
115.11 Establishment of fees.

[[Page 625]]

115.12 Records maintained by Certifying Authority.
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.
115.28 Application for approval.
115.29 Plan review.
115.30 Technical requirements for containers 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 containers.
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 vehicles 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



Sec. 115.1  Purpose.

    This chapter establishes procedures for certifying containers and 
road vehicles 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, November 14, 1975 (TIAS), and the Customs Convention on 
Containers, 1972 (TIAS), by applying the procedures and technical 
conditions set forth in the annexes to these conventions.



Sec. 115.2  Application.

    (a) Certification of containers and road vehicles for international 
transport under Customs seal is voluntary. This chapter does not require 
certification of containers and road vehicles.
    (b) The Customs Convention on the International Transport of Goods 
Under Cover of TIR Carnets (TIR Convention), 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 established, and that containers should be either 
similarly approved, or approved by the competent authority of the 
country where it is first used for transport under Customs seal. The 
Customs Convention on Containers, May 18, 1956 (20 UST 301, TIAS 6634), 
requires 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 Convention, 
1975, generally provides that a road vehicle, for which approval at a 
stage after manufacture is desired, shall be approved by the competent 
authority where the vehicle owner or operator is established or located, 
or where the vehicle is registered. Such approval under the TIR 
Convention, 1975, or, for containers, the Customs

[[Page 626]]

Convention on Containers, 1972, may be accomplished by the competent 
authority of the country in which the owner or operator is able to 
produce the conveyance. The 1975 TIR Convention and the Customs 
Convention on Containers, 1972, also provide that the Certifying 
Authority of the country of manufacture, 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 certification are contained in Sec. Sec. 
115.28, 115.38, 115.49, and 115.63 of this part.



Sec. 115.3  Definitions.

    For the purpose of this part:
    (a) Certifying Authority. ``Certifying Authority'' means a nonprofit 
firm or association, incorporated or established in the U.S., which the 
Commissioner finds competent to carry out the functions of this part and 
which he designates 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 constitute a compartment intended 
for containing goods;
    (2) Of a permanent character and strong enough to be suitable for 
repeated use;
    (3) Specifically designed to facilitate the carriage of goods by one 
or more modes of transport, without intermediate reloading;
    (4) Designed for ready handling, particularly 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 
constructing containers or road vehicles for certification in accordance 
with this chapter.
    (e) Prototype. ``Prototype'' means a sample unit of a series of 
identical containers or road vehicles all built, so far as practical, 
under the same conditions.
    (f) Road vehicle. ``Road Vehicle'', as defined in Chapter 1, Article 
1 of the Customs Convention on the International Transport of Goods 
Under Cover of TIR Carnets (TIR Convention), November 14, 1975 (TIAS), 
means not only any power-driven road vehicle but also any trailer or 
semi-trailer designed to be coupled to it.
    (g) Customs and TIR/Container Plan. ``Customs and TIR/Container 
Plan'' means the designer's drawing of a vehicle (for TIR purposes) or 
container (for TIR and Container Convention purposes) that illustrates 
each requirement in Sec. Sec. 115.30, 115.40, 115.51, or 15.65, as 
appropriate to this part.
    (h) The definitions in the subject Conventions shall be considered 
applicable to terms not specifically defined above.



Sec. 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



Sec. 115.6  Designated Certifying Authorities.

    (a) The American Bureau of Shipping, 45 Eisenhower Dr., Paramus, New 
Jersey 07652.
    (b) International Cargo Gear Bureau, Inc., 17 Battery Place, New 
York, New York 10004.
    (c) The National Cargo Bureau, Inc., One World Trade Center, Suite 
2757, New York, New York 10048.



Sec. 115.7  Designation of additional Certifying Authorities.

    (a) The Commissioner may designate as a Certifying Authority any 
nonprofit firm or association that he finds competent to carry out the 
functions of Sec. Sec. 115.8 through 115.14 of this subpart.
    (b) Any designation as Certifying Authority may be terminated by the 
Commissioner.

[[Page 627]]



Sec. 115.8  Certifying Authorities responsibilities--road vehicles.

    (a) General. Road vehicles may be approved individually or by design 
type.
    (b) Individual approval. The Certifying Authority to whom a road 
vehicle is submitted for approval shall inspect such road vehicle 
produced in accordance with the general rules contained in Annex 3 of 
the TIR Convention, 1975.
    (c) Design type approval. The Certifying Authority to whom a road 
vehicle is submitted for design type approval shall examine the drawings 
and detailed 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 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 vehicles during the manufacturing process, or by other 
means, that such vehicles continue to meet the approved drawings and 
detailed design specifications and the technical requirements of Annex 2 
of the TIR Convention, 1975.
    For the purposes of this section, an extended production run shall 
be considered a continuous run of many units over long periods of time, 
as well as a new run following the completion of a previous run.



Sec. 115.9  Certifying Authorities responsibilities--containers.

    (a) General. Containers may be approved for transport under seal by 
design type at the manufacturing stage or, otherwise, at a stage 
subsequent to manufacture.
    (b) Design type approval. The Certifying Authority to whom a 
container is submitted for design type approval shall examine the 
drawings and detailed 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 Certifying 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 applicant 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 Convention on 
Containers, 1972, for all containers 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 submitted for approval after manufacture, shall examine as many 
containers as necessary to ascertain that they comply with the technical 
conditions prescribed in Part 1, Annex 7, TIR Convention, 1975, and 
Annex 5 of the Customs Convention on Containers, 1972. The Certifying 
Authority shall issue a certificate of approval authorizing the 
applicant 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 Containers, 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 Certifying Authority shall 
confirm by examination of one or more containers during the 
manufacturing process, or by

[[Page 628]]

other means, that such containers continue to meet the approved drawings 
and detailed design specifications and the technical requirements of 
Annex 7 of the TIR Convention, 1975, and Annex 4 of the Customs 
Convention on Containers, 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.



Sec. 115.10  Certificate of approval.

    A Certifying Authority shall issue a certificate of approval by 
design type for a specified number or unlimited series of containers 
that are approved in accordance with the procedures contained in 
Sec. Sec. 115.29, 115.31, 115.38, and 115.41, and road vehicles that 
are approved in accordance with the procedures contained in Sec. Sec. 
115.49, 115.52, 115.63, and 115.66 of this part.
    (a) Road vehicles. A Certifying Authority shall issue a certificate 
of approval conforming to the model in Annex 4 of the 1975 TIR 
Convention for vehicles submitted for individual or design 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 manufacture. A Certifying 
Authority shall issue a certificate of approval conforming to the model 
in Appendix 3, Part II to Annex 7 of the TIR Convention, 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 
prescribed in Annex 7 of the TIR Convention, 1975, and Annex 4 of the 
Customs Convention on Containers, 1972. The certificate shall be valid 
for the number of containers approved.
    (2) Design type approved. A Certifying Authority shall issue a 
single certificate of approval conforming to the model in Appendix 2, 
Part II to Annex 7 of the TIR Convention, 1975, and Appendix 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 technical conditions prescribed in Annex 7 of the 1975 
TIR Convention, and Annex 4 of the Customs Convention on Containers, 
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 either the specific number of containers approved, or 
for an unlimited series of containers of the approved type.



Sec. 115.11  Establishment of fees.

    (a) Each Certifying Authority shall establish and file with the 
Commissioner a schedule of fees for the performance of the certification 
procedures under this chapter. The fees shall be based on the costs 
(including transportation expense) actually incurred by the Certifying 
Authority. The fees are subject to approval by the Commissioner before 
their use by the Certifying Authority.
    (b) Each Certifying Authority shall make available a schedule of its 
fees approved by the Commissioner. In addition, the schedules of 
approved fees for all the Certifying Authorities are available from the 
Headquarters, U.S. Customs Service, Office of Field Operations, 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]



Sec. 115.12  Records maintained by Certifying Authority.

    (a) Each Certifying Authority shall maintain--
    (1) A copy of each individual certificate 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 assigned and affixed by the 
manufacturer to the road vehicles and containers manufactured under a 
design type approval, and containers approved at a stage after 
manufacture.

[[Page 629]]

    (b) The Commissioner may examine the Certifying Authority's files 
required by paragraph (a) of this section.



Sec. 115.13  Records to be furnished Customs.

    Each Certifying Authority shall furnish the Headquarters, U.S. 
Customs Service, Office of Field Operations, 1300 Pennsylvania Avenue, 
NW., Washington, DC 20229, unless waived by Customs;
    (a) A copy of each issued certificate of approval for containers and 
road vehicles and a copy of the plans and application to which the 
approval refers;
    (b) A copy of each issued individual approval for a container or 
road vehicle.

[T.D. 86-92, 51 FR 16161, May 1, 1986, as amended by T.D. 99-27, 64 FR 
13675, Mar. 22, 1999]



Sec. 115.14  Meeting on program.

    If determined necessary by Customs, each Certifying Authority's 
representative for certification functions shall meet, after notice, 
with the Commissioner to review their administration of the 
certification program.



Sec. 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 
vehicles, or serial numbers assigned to containers manufactured under a 
certificate of approval by design type; and
    (b) An attestation that each road vehicle or container to which a 
serial number was assigned was manufactured in full compliance with the 
certificate of approval by design type.



Sec. 115.16  Notification of Certifying Authority by manufacturer.

    In order that the Certifying Authority can schedule an appropriate 
inspection, a manufacturer shall give notification to that Authority 
before each production run of road vehicles or containers to be built 
pursuant either to plans approved by the Certifying Authority, or 
revised plans (approved or unapproved).



Sec. 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 determination to the 
Commissioner.
    (b) Any determination which is appealed remains in effect pending a 
decision by the Commissioner.



Sec. 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 Approval of Containers by Design Type



Sec. 115.25  General.

    The Certifying Authority shall, at the request of a manufacturer, 
evaluate containers for approval by design type during the manufacturing 
stage.



Sec. 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 characteristics, may apply for approval by design type.



Sec. 115.27  Where to apply.

    A manufacturer may apply for approval 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.



Sec. 115.28  Application for approval.

    Each application by a manufacturer or an owner for certification of 
a container 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 
information:

[[Page 630]]

    (1) The name and address of the manufacturer and the owner; and
    (2) A description of the container including the--
    (i) Type of construction;
    (ii) Dimensions;
    (iii) Material of construction;
    (iv) Coating system used;
    (v) Identification marks and numbers; and
    (vi) Tare weight;
    (d) The location and date for inspection; and
    (e) A statement signed by the manufacturer that:
    (1) A container of the design type concerned is available for 
inspection and approval by the Certifying Authority before, during, and 
after the production 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 Sec. 115.32;
    (ii) The identification number or letter of the design type assigned 
by the manufacturer; and
    (iii) The serial number of the container assigned by the 
manufacturer.



Sec. 115.29  Plan review.

    (a) A manufacturer or owner who wants containers to be approved by 
design type must submit the plans and specifications for the container 
to the Certifying Authority.
    (b) The Certifying Authority examining the plans and specifications 
submitted in accordance with paragraph (a) of this section shall:
    (1) Approve the plans and specifications in accordance with the 
requirements of Sec. 115.30 and arrange to inspect a container in 
accordance with Sec. 115.31; or
    (2) Advise the applicant of any necessary changes to be made for 
compliance with the requirements of Sec. 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 Authority 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 production stage to confirm that they continue to 
comply with the requirements of Sec. 115.30.



Sec. 115.30  Technical requirements for containers by design type.

    The plans and specifications of a container submitted in accordance 
with the requirements contained in Sec. 115.29, and the one or more 
containers inspected in accordance with the requirements of Sec. 
115.31, must comply with the requirements of Annex 7 of the Customs 
Convention 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 obtained from the 
Headquarters, U.S. Customs Service, Office of Field Operations, 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]



Sec. 115.31  Examination, inspection, and testing.

    (a) Before the issuance of a certificate of approval by design type, 
the Certifying Authority shall:
    (1) Make a physical examination of one or more containers of the 
production series concerned;
    (2) Assure itself as to the adequacy of the manufacturer's system to 
control quality of materials used, manufacturing methods, and finished 
containers; and
    (3) Require the manufacturer to make available to the Certifying 
Authority records of material, including affidavits furnished by 
suppliers.
    (b) The Certifying Authority shall conduct such examinations, 
inspections, and tests of the production run containers as it deems 
necessary.



Sec. 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 approved design, a metal approval plate measuring at least 20 by 
10 centimeters (7.8 by 3.9 inches). The following shall

[[Page 631]]

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 Authority, e.g., USA/1600-AB/85, USA/1600-IB/85.
    (c) Identification of the type of container and of the number of the 
container in the type series.
    (d) The serial number assigned to the container by the manufacturer 
(manufacturer's number).



Sec. 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 available to a Certifying Authority for inspection and individual 
approval in accordance with subpart D of the part. However, repairs in 
kind do not constitute a change of the essential features.



    Subpart D_Procedures for Approval of Containers After Manufacture



Sec. 115.37  General.

    This subpart provides for the approval and certification of 
containers after manufacture, and for those altered so as to void their 
design type approval.



Sec. 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 
information:
    (1) Type of container;
    (2) Name and business address of applicant;
    (3) Identification marks and numbers;
    (4) Tare weight;
    (5) Nominal overall dimensions in centimeters;
    (6) Type of construction and essential particulars of structure 
(nature of materials, coating system used, parts which are reinforced, 
whether bolts are riveted or welded, and similar matters); and
    (7) Proposed location and date for inspection of the container.



Sec. 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 Convention.
    (b) The Certifying Authority of the country where the owner or 
operator is resident or established, when such Certifying 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 merchandise under Customs seal 
or where it is otherwise physically located.



Sec. 115.40  Technical requirements for containers.

    A container that is submitted for inspection for approval after 
manufacture, must comply with the requirements of Annex 7 of the Customs 
Convention 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 obtained from the 
Headquarters, U.S. Customs Service, Office of Field Operations, 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]

[[Page 632]]



Sec. 115.41  Certificate of approval for containers approved after manufacture.

    The Certifying Authority shall issue an individual certificate of 
approval for each container that meets the requirements in Sec. 115.40.



Sec. 115.42  Approval plates.

    (a) The owner or operator applicant shall, upon receipt of a 
certificate of approval from the Certifying Authority, affix an approval 
plate in the manner specified for containers approved by design type 
(see Sec. 115.32).
    (b) Although an entry is not required in the space provided for type 
identifiers on an approval plate for containers approved after 
manufacture, identification number and letters indicating that a series 
of containers comply 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 element of such number. 
The specific method of altering the approval number may be established 
by each Certifying Authority, for containers approved by it, and 
communicated to the U.S. Customs Service.
    (c) Two possible methods of accomplishing this are:
    (1) Placing an ``X'' in front of the numeric 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.



Sec. 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 Sec. 115.40. Repairs by replacement in kind do not constitute a 
change of the essential features.



      Subpart E_Procedures for Approval of Individual Road Vehicles



Sec. 115.48  General.

    This subpart provides for the approval and certification of 
individual road vehicles that comply with the technical requirements in 
Sec. 115.51.



Sec. 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 
information:
    (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 
facilitate approval; and
    (9) A proposed place and date for inspection of the road vehicle.



Sec. 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.



Sec. 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 Convention), November 14, 1975, (TIAS). Copies of Annex 2 
may be obtained from the Headquarters, U.S. Customs Service, Office of 
Field Operations, 1300

[[Page 633]]

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]



Sec. 115.52  Approval.

    The Certifying Authority shall issue a certificate of approval, 
valid for 2 years, to each road vehicle that complies with the 
applicable requirements in Sec. 115.51.



Sec. 115.53  Certificate of approval.

    A certificate of approval must be kept on the vehicle as evidence of 
approval.



Sec. 115.54  Renewal of certificate.

    A certificate of approval may be renewed if the Certifying Authority 
determines by inspection every 2 years that the vehicle continues to 
comply with the applicable requirements in Sec. 115.51.



Sec. 115.55  Termination of approval.

    Approval of a road vehicle terminates:
    (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 Sec. 115.51. 
Repairs by replacement in kind do not constitute a change of the 
essential features.



    Subpart F_Procedures for Approval of Road Vehicles by Design Type



Sec. 115.60  General.

    This subpart provides for the approval and certification of road 
vehicles manufactured by design type.



Sec. 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 
vehicle has identical characteristics, may apply for an approval by 
design type.



Sec. 115.62  Where to apply.

    A manufacturer may apply for approval of a road vehicle by design 
type to a Certifying Authority of the country in which the road vehicle 
is manufactured, if such country is a contracting party to the TIR 
Convention, 1975.



Sec. 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 
information:
    (1) The name and address of the manufacturer 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 
numbers.
    (d) A statement signed by the manufacturer that:
    (1) It will present vehicles of the type concerned to the Certifying 
Authority which that Authority may wish to examine;
    (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 
specifications 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 manufactured according to the design 
type.



Sec. 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 examines the plans and 
specifications submitted in accordance with paragraph (a) of this 
section shall:

[[Page 634]]

    (1) Approve the plans and specifications in accordance with the 
requirements of Sec. 115.65 and arrange to inspect a road vehicle in 
accordance with Sec. 115.66; or
    (2) Advise the applicant of any necessary changes to be made for 
compliance with the requirements of Sec. 115.65.
    (c) If changes in design of the road vehicle are made during 
production but after approval of the plans and specifications 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 
vehicles inspected during the production stage to confirm that they 
continue to comply with the requirements of Sec. 115.65.



Sec. 115.65  Technical requirements for road vehicles by design type.

    The plans and specifications of a road vehicle that are submitted in 
accordance with the requirements contained in Sec. 115.64, and the one 
or more road vehicles that are inspected in accordance with the 
requirements of Sec. 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 Convention), 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., 
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]



Sec. 115.66  Examination, inspection, and testing.

    (a) Before the issuance of a certificate 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, manufacturing methods, and finished 
road vehicles; and
    (3) Require the manufacturer to make available to the Certifying 
Authority records of materials, including affidavits furnished by 
suppliers.
    (b) The Certifying Authority shall conduct such examinations, 
inspections, and testing of the production run road vehicles as it deems 
necessary.



Sec. 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 subject to registration, 
particulars of his name and business address (item No. 8). (See Annex 4 
of the Convention for model of certificate of approval.)



Sec. 115.68  Termination of approval.

    Any road vehicle whose essential features are changed shall no 
longer be covered by the design type approval. Such a road vehicle may 
be made available to a Certifying Authority for inspection and 
individual approval in accordance with subpart E of this part. However, 
repairs in kind do not constitute a change of the essential features.



PART 118_CENTRALIZED EXAMINATION STATIONS--Table of Contents




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 schedule.

                Subpart B_Application To Establish a CES

118.11 Contents of application.
118.12 Action on application.
118.13 Notification of selection or nonselection.

                     Subpart C_Termination of a CES

118.21 Temporary suspension; permanent revocation of selection and 
          cancellation of agreement to operate a CES.

[[Page 635]]

118.22 Notice of immediate suspension or proposed revocation and 
          cancellation action.
118.23 Appeal to the Assistant Commissioner; procedure; status of CES 
          operations.

    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.



Sec. 118.0  Scope.

    This part sets forth regulations providing 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 person or entity selected to be a CES operator, 
the written agreement to operate a CES facility, the port director's 
discretion 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 selection and cancellation of 
the written agreement for specified conduct, and the appeal procedures 
to challenge an immediate suspension or proposed revocation and 
cancellation action. Procedures 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



Sec. 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 available to Customs officers for physical examination. A CES 
may be established in any port or any portion of a port, or any other 
area under the jurisdiction 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 accompany the shipment to evidence that exportation of 
the goods is imminent and that the goods are committed to export, 
thereby, making them subject to Customs examination.

[T.D. 93-6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 98-29, 63 FR 
16684, Apr. 6, 1998]



Sec. 118.2  Establishment of a CES.

    When a port director makes a preliminary determination that a new 
CES should be established, or when the term of an existing CES is about 
to expire 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 appropriate (such as 
normal port information distribution channels, trade bulletins or local 
newspapers), that applications to operate a CES are being accepted. This 
notice will include the general criteria together with any local 
criteria that applicants must meet (see Sec. 118.11 of this part), and 
will invite the public to submit any relevant 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 comments must be received within 30 calendar days 
from the date of the notice.



Sec. 118.3  Written agreement.

    The applicant tentatively selected to operate a CES must sign a 
written agreement with Customs before commencing operations. Failure to 
execute a written agreement with Customs in a timely manner will result 
in the revocation of that applicant's tentative selection and may result 
in tentative selection of another applicant or republication of the 
notice soliciting applications. 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 six 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 pursuant to this 
part and his application will be considered de novo.

[[Page 636]]



Sec. 118.4  Responsibilities of a CES operator.

    By signing the agreement and commencing operation of a CES, an 
operator agrees to:
    (a) Maintain the facility designated as the CES in conformity with 
the security standards as outlined in the approved application;
    (b) Provide adequate personnel and equipment to ensure reliable 
service for the opening, presentation for inspection, and closing of all 
types of cargo designated for examination by Customs. Such service must 
be provided on a ``first come-first served'' basis;
    (c) Assess service fees as outlined in the fee schedule included in 
the approved application or as changed under Sec. 118.5 of this part 
and bill users directly for services rendered;
    (d) Assume responsibility for any charges or expenses incurred in 
connection with the operation of the CES;
    (e) Maintain, at his own expense, adequate 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 
Sec. 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 
director. 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 Sec. 112.1); such 
liability is assumed by the CES operator when he picks up merchandise 
for transportation 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 
connected 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 examination conducted pursuant 
to the agreement to operate the CES;
    (i) Submit, if requested by Customs, the fingerprints of all 
employees involved in the CES operation;
    (j) Provide office space, parking spaces, appropriate sanitary 
facilities, and potable water to Customs personnel 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 merchandise to the CES from within 
the district boundaries (see definition of ``district'' at Sec. 112.1). 
This responsibility 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 amended 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]



Sec. 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 
Sec. 118.4(c) of this part, the operator shall provide 90 calendar days 
advance written notice to the port director of such proposed fee 
schedule change and shall include in the notice a justification for any 
increased or additional fee. Following receipt of this written notice, 
the port director will advise the public of the proposed fee schedule 
change and invite comments thereon under the public notice and comment 
procedures set forth in Sec. 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 Sec. 118.11(c) of this 
part, the port director will decide whether to approve the change, will 
notify the CES operator in writing of his decision, and will notify the 
public of any approved fee schedule change by the same methods that were 
used to provide the public 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

[[Page 637]]

prior to receipt of written approval of the change from the port 
director.



                Subpart B_Application To Establish a CES



Sec. 118.11  Contents of application.

    Each application to operate a CES shall consist of the following 
information, any application not providing all of the specified 
information will not be considered, and the responses to paragraphs (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 facility to be operated as the CES, 
the names of all principals or corporate officers, and the name and 
telephone number of an individual to be contacted for further 
information;
    (b) A description of the CES's accessibility within the port or 
other location, and a floor plan of the facility actually dedicated to 
the CES operation showing bay doors, office space, exterior features, 
security features, and staging and work space. Where a significant 
capital expenditure would be required in order for an existing facility 
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 requirements. The agreement referred to 
in Sec. 118.3 of this part shall not be executed, 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 similar services in the area to be served by the CES;
    (d) A detailed list of equipment showing that the applicant can make 
a diverse variety of cargo available for examination in an efficient and 
timely manner;
    (e) A copy of an approved custodial bond on Customs Form 301. If the 
applicant does not possess such a bond, a completed Customs Form 301 
must be included with the application for approval 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 security numbers. 
(Providing social security numbers is voluntary; however, failure to 
provide the number may hinder the investigation process.);
    (g) Any information showing the applicant's experience in 
international cargo operations and knowledge of Customs procedures and 
regulations; and
    (h) Any other information to address any local criteria that the 
port director 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]



Sec. 118.12  Action on application.

    Following submission of all applications in accordance with 
Sec. Sec. 118.2 and 118.11 of this part, the port director will advise 
the public of the applications received and invite comments thereon 
under the public notice and comment procedures set forth in Sec. 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 equipment 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 Sec. 118.11 and any public comments 
submitted under Sec. 118.2 or this section, shall determine whether a 
CES operator should be selected 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 movement of merchandise.

[T.D. 93-6, 58 FR 5604, Jan. 22, 1993, as amended by T.D. 99-64, 64 FR 
43266, Aug. 10, 1999]



Sec. 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 between Customs and 
the applicant under Sec. 118.3 of this part, and the port director

[[Page 638]]

will advise the public of the final selection and of the date on which 
the CES will commence operation under the agreement in accordance with 
the notice procedures set forth in Sec. 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



Sec. 118.21  Temporary suspension; permanent revocation of selection and cancellation of agreement to operate a CES.

    The port director may immediately suspend or propose permanent 
revocation and cancellation of CES operations for cause as provided in 
this section.
    (a) Immediate suspension. The port director may immediately suspend, 
for a temporary period of time or until revocation and cancellation 
proceedings are concluded pursuant to Sec. 118.23, a CES operator's or 
entity's selection and the written agreement to operate the CES if:
    (1) The selection and written agreement 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 determines is exercising 
substantial ownership or control over such operator or officer is 
indicted for, convicted of, or has committed acts, which would 
constitute a felony, or a misdemeanor involving theft or a theft-
connected crime. In the absence of an indictment or conviction, the port 
director must have probable cause to believe the proscribed acts 
occurred.
    (b) Proposed revocation and cancellation. 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 otherwise 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 operate in accordance 
with the terms of his agreement or to comply with any of the provisions 
of Sec. 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 provide secure facilities or properly 
safeguard merchandise within the CES;
    (4) The CES operator fails to furnish a current list of names, 
addresses and other information required by Sec. 118.4 of this part; or
    (5) The custodial bond required by Sec. 118.4 of this part is 
determined 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.
    (6) The CES operator or an officer of a corporation which is a CES 
operator or a person the port director determines is exercising 
substantial ownership or control over such operator or officer is 
indicted for, convicted of, or has committed acts, which would 
constitute any of the offenses listed under paragraph (a) of this 
section. Where adverse action is initiated by the port director pursuant 
to paragraph (a) of this section and continued under this paragraph, the 
suspension of CES activities remains in effect through the appeal 
procedures provided under Sec. 118.23.
    (c) Circumstance of change in employment not a bar to adverse 
action. Any change in the employment status of a corporate officer (for 
example, discharge, resignation, demotion, or promotion) prior to 
indictment or conviction or after committing any acts which would 
constitute the culpable behavior described under paragraph (a) of this 
section, will not preclude application of this section, but may be taken 
into account by the port director in exercising discretion to take 
adverse action. If the person whose employment status changed remains in 
a substantial ownership, control, or beneficial relationship with the 
CES operator, this factor will also be considered in exercising 
discretion under this section.

[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]

[[Page 639]]



Sec. 118.22  Notice of immediate suspension or proposed revocation and cancellation action.

    Adverse action pursuant to the provisions of Sec. 118.21(a) or (b) 
is initiated when the port director serves written notice on the 
operator or entity selected to operate the CES. The notice shall be in 
the form of a statement specifically setting forth the grounds for the 
adverse action and shall inform the operator of the appeal procedures 
under Sec. 118.23 of this part.

[T.D. 96-57, 61 FR 39071, July 26, 1996]



Sec. 118.23  Appeal to the Assistant Commissioner; procedure; status of CES operations.

    (a) Appeal to the Assistant Commissioner. Appeal of a port 
director's decision under Sec. 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 appeal 
shall be filed in duplicate and shall set forth the CES operator's or 
entity's responses to the grounds specified by the port director in his 
written notice letter for the adverse action initiated. The Assistant 
Commissioner, Office of Field Operations, or his designee, shall render 
a written decision to the CES operator or entity, stating the reasons 
for the decision, by letter mailed within 30 working days following 
receipt of the appeal, unless the period for decision is extended with 
due notification to the CES operator or entity.
    (b) Status of CES operations during appeal. During this appeal 
period, an immediate suspension of a CES operator's or entity's 
selection and written agreement pursuant to Sec. 118.21(a) of this part 
shall remain in effect. A proposed revocation of a CES operator's or 
entity's selection and cancellation of the written agreement pursuant to 
Sec. 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 revoked 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--Table of Contents




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 Notice of arrival.
122.23 Private aircraft arriving from areas south of the U.S.
122.24 Landing requirements.
122.25 Exemption from special landing requirements.
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.
122.36 Responsibility of aircraft commander.
122.37 Precleared aircraft.

[[Page 640]]

122.38 Permit and special license to unlade and lade.

   Subpart E_Aircraft Entry and Entry Documents; Electronic Manifest 
Requirements for Passengers, Crew Members, and Non-Crew Members Onboard 
 Commercial Aircraft Arriving In, Continuing 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 onboard 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, departing 
          from, continuing within, and overflying the United States.
122.49d Passenger Name Record (PNR) information.
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 denied.

  Subpart H_Documents Required for Clearance and Permission To Depart; 
 Electronic Manifest Requirements for Passengers, Crew Members, and Non-
   Crew Members Onboard Commercial Aircraft Departing From the United 
                                 States

122.71 Aircraft departing with no commercial 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 onboard commercial aircraft departing from the United 
          States.
122.76 Shipper's Export Declarations and inspection 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 exportation 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.

[[Page 641]]

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 Islands 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 arrival.
122.156 Release of passengers.
122.157 Documents required for clearance.
122.158 Other entry and clearance requirements.

Subpart P--Public Aircraft [Reserved]

                           Subpart Q_Penalties

122.161 In general.
122.162 Failure to notify and explain differences 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 access 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 122.49a also issued under 8 U.S.C. 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.



Sec. 122.0  Scope.

    The regulations in this part relate to the entry and clearance of 
aircraft, and the transportation of persons and cargo by aircraft, and 
are applicable to all air commerce. They do not apply to Guam, Midway, 
American Samoa, Wake, Kingman Reef, Johnston Island, and other insular 
possessions of the U.S. not specified herein. They do apply to the U.S. 
Virgin Islands as stated in subpart N (Sec. Sec. 122.141 through 
122.144), and Cuba as stated in subpart O (Sec. Sec. 122.151 through 
122.158).

[[Page 642]]



              Subpart A_General Definitions and Provisions



Sec. 122.1  General definitions.

    The following definitions apply in this part, unless otherwise 
stated:
    (a) Aircraft. An ``aircraft'' is any device 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 navigation.
    (c) Agent. An ``agent'' is any person who is authorized to act for 
or in place of:
    (1) An owner or operator of a scheduled airline by written 
authority; or
    (2) An owner or operator of a non-scheduled airline, by power of 
attorney.

The authority to act shall be in writing and satisfactory to the port 
director.
    (d) Commercial aircraft. A ``commercial aircraft'' is any aircraft 
transporting passengers and/or cargo for some payment or other 
consideration, including money or services rendered.
    (e) International airport. An ``international airport'' is any 
airport designated 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 aircraft; and
    (3) The Secretary of Health and Human Services as a place for 
quarantine 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 foreign area are given permission by Customs to 
land.
    (g) Preclearance. ``Preclearance'' is the examination and inspection 
of air travelers and their baggage, at the request 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 aircraft'' is any aircraft engaged 
in a personal 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 agencies, or any aircraft owned by or under the complete 
control and management of any foreign government which exempts public 
aircraft of the U.S. from arrival, entry and clearance requirements 
similar to those provided in subpart C of this part, but not including 
any government owned aircraft engaged in carrying persons or property 
for commercial purposes. This definition 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 
traveling on official business of such government; 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 aircraft 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

[[Page 643]]

    (2) Holding a Foreign Air Carrier Permit or a Certificate of Public 
Convenience and Necessity, issued by the Department of Transportation 
pursuant to 14 CFR parts 201 and 213.
    (l) United States. Except when used in another context, ``U.S.'' 
means the territory of the several States, the District of Columbia, and 
Puerto Rico, including the territorial waters and overlying airspace.
    (m) User fee airport. A ``user fee airport'' 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 Sec. 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]



Sec. 122.2  Other Customs laws and regulations.

    Except as otherwise provided for in this chapter, and insofar as 
such laws and regulations are applicable, aircraft arriving or having 
arrived from or departing for any foreign port or place, and the persons 
and merchandise, including baggage, carried thereon, shall be subject to 
the laws and regulations applicable to vessels to the extent that such 
laws and regulations are administered or enforced by Customs, as 
provided 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]



Sec. 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.



Sec. 122.4  English language required.

    A translation in the English language shall be attached to the 
original and each copy of any form or document written or printed in a 
foreign language.



Sec. 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 arrangement, style and size of type, and quality 
of paper are used.
    (b) Exceptions. Port directors may accept 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 required on the 
official forms. The differences 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 additional information used by the airline.



                      Subpart B_Classes of Airports



Sec. 122.11  Designation as international airport.

    (a) Procedure. International airports, as defined in Sec. 122.1(e), 
will be designated after due investigation to establish that sufficient 
need exists in any port to justify such designation and to determine the 
airport best suited for such purpose. In each case, a specific airport 
will be chosen. International airports will be publicly owned, unless 
circumstances require otherwise
    (b) Withdrawal of designation. The designation as an international 
airport may be withdrawn for any of the following 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

[[Page 644]]

shall provide, without cost to the Federal Government, proper office and 
other space for the sole use of Federal officials working at the 
airport. A suitable paved loading area shall be supplied by each airport 
at a place convenient to the office space. The loading area shall be 
kept for the use of aircraft entering or clearing through the airport.



Sec. 122.12  Operation of international airports.

    (a) Entry, clearance and charges. International airports are open to 
all aircraft for entry and clearance at no charge by Customs. However, 
charges may be assessed by the airport for commercial or private use of 
the airport.
    (b) Servicing of aircraft. When an aircraft enters or clears through 
an international airport, it shall be promptly serviced by airport 
personnel solely on the basis of order of arrival or readiness for 
departure. Servicing charges imposed by the airport operators shall not 
be greater than the schedule of charges in effect at the airport in 
question.
    (c) FAA rules; denial of permission to land. Federal Aviation 
Administration rules. International airports shall follow and enforce 
any requirements for airport operations, including airport rules, that 
are set out by the Federal Aviation Administration in 14 CFR part 91. In 
addition, except in the case of an emergency or forced landing (see 
Sec. 122.35), permission to land at an international airport may be 
denied if advance electronic information for incoming foreign cargo 
aboard the aircraft has not been received as provided in Sec. 122.48a.
    (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 demand.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988, as amended by CBP Dec. 03-32, 68 
FR 68170, Dec. 5, 2003]



Sec. 122.13  List of international airports.

    The following is a list of international 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 International Airport
Brownsville, Tex.--Brownsville International Airport
Burlington, Vt.--Burlington International Airport
Calexico, Calif.--Calexico International Airport
Caribou, Maine--Caribou Municipal Airport
Chicago, Ill.--Midway Airport
Cleveland, Ohio--Cleveland Hopkins International 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-Hollywood International Airport
Friday Harbor, Wash.--Friday Harbor Seaplane Base
Grand Forks, N. Dak.--Grand Forks International Airport
Great Falls, Mont.--Great Falls International Airport
Havre, Mont.--Havre City-County Airport
Houlton, Maine--Houlton International Airport
International Falls, Minn.--Falls International Airport
Juneau, Alaska--Juneau Municipal Airport
Juneau, Alaska--Juneau Harbor Seaplane Base
Ketchikan, Alaska--Ketchikan Harbor Seaplane Base
Key West, Fla.--Key West International Airport
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 Airport
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 Airport
Port Huron, Mich.--St. Clair County International Airport
Port Townsend, Wash.--Jefferson County International Airport

[[Page 645]]

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 International Airport
Williston, N. Dak.--Sloulin Field International 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]



Sec. 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 airport. Permission is given 
by the director of the port, or his representative, at the port nearest 
to which first landing is made.
    (2) Other aircraft. All other aircraft may be allowed to land at a 
landing rights airport by the director of the port of entry or station 
nearest the first place of landing.
    (3) Additional flights, charters or changes in schedule--(i) 
Scheduled aircraft. If a new carrier plans to set up a new flight 
schedule, or an established carrier makes changes in its approved 
schedule, landing rights may be granted by the port director.
    (ii) Additional or charter flight. If a carrier or charter operator 
wants to begin operating or to add flights, application shall be made to 
the port director for landing rights. All requests shall be made not 
less than 48 hours before the intended time of arrival, except in 
emergencies. If the request is oral, it shall be put in writing before 
or at the time of arrival.
    (4) Emergency or forced landing. Permission to land is not required 
for an emergency or forced landing (see Sec. 122.35).
    (b) Notice to Federal agencies. If an aircraft is given permission 
to land at a landing rights airport, the Customs officer who granted the 
landing rights shall notify the Public Health Service, the Immigration 
and Naturalization Service, the Animal and Plant Health Inspection 
Service, and any other interested Federal agency at once.
    (c) Payment of expenses. In the case of an arrival at a location 
outside the limits of a port of entry, the owner, operator or person in 
charge of the aircraft shall pay any added charges for inspecting the 
aircraft, passengers, employees and merchandise when landing rights are 
given (see Sec. Sec. 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 withdrawn for any of the 
following reasons:
    (1) Appropriate and/or sufficient Federal 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 instructions of a Customs officer;
    (4) Advance cargo information has not been received as provided in 
Sec. 122.48a;
    (5) Other reasonable grounds exist to believe that Federal rules and 
regulations pertaining to safety, including cargo safety and security, 
and Customs, 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 written 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. Redesignated 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]

[[Page 646]]



Sec. 122.15  User fee airports.

    (a) Permission to land. The procedures for obtaining permission to 
land at a user fee airport are the same procedures as those set forth in 
Sec. 122.14 for landing rights airports.
    (b) List of user fee airports. The following is a list of user fee 
airports designated by the Commissioner of Customs 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, California................  Meadows Field Airport.
Bedford, Massachusetts.................  L.G. Hanscom Field.
Broomfield, Colorado...................  Jefferson County Airport.
Carlsbad, California...................  McClellan-Palomar Airport.
Daytona Beach, Florida.................  Daytona Beach International
                                          Airport.
Decatur, Illinois......................  Decatur Airport.
Egg Harbor Township, New Jersey........  Atlantic City International
                                          Airport.
Englewood, Colorado....................  Centennial Airport.
Fort Worth, Texas......................  Fort Worth Alliance Airport.
Fresno, California.....................  Fresno Yosemite International
                                          Airport.
Gypsum, Colorado.......................  Eagle County Regional Airport.
Hillsboro, Oregon......................  Hillsboro Airport.
Johnson City, New York.................  Binghamton Regional 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, Washington.................  Grant County International
                                          Airport.
Myrtle Beach, South Carolina...........  Myrtle Beach International
                                          Airport.
Orlando, Florida.......................  Orlando Executive Airport.
Palm Springs, California...............  Palm Springs International
                                          Airport.
Riverside, California..................  March Inland Port Airport.
Rochester, Minnesota...................  Rochester International
                                          Airport.
Rogers, Arkansas.......................  Rogers Municipal Airport.
Roswell, New Mexico....................  Roswell Industrial Center.
San Bernardino, California.............  San Bernardino International
                                          Airport.
Santa Maria, California................  Santa Maria Public Airport.
Sarasota, Florida......................  Sarasota/Bradenton
                                          International Airport.
Scottsdale, Arizona....................  Scottsdale Airport.
Sugar Land, Texas......................  Sugar Land Regional Airport.
Trenton, New Jersey....................  Trenton Mercer Airport.
Victorville, California................  Southern California Logistics
                                          Airport.
Waterford, Michigan....................  Oakland County International
                                          Airport.
Waukegan, Illinois.....................  Waukegan Regional Airport.
West Chicago, Illinois.................  Dupage County Airport.
Wheeling, Illinois.....................  Chicago Executive Airport.
Wilmington, Ohio.......................  Airborne Air Park Airport.
Yoder, Indiana.........................  Fort Wayne International
                                          Airport.
Ypsilanti, Michigan....................  Willow Run Airport.
------------------------------------------------------------------------

    (c) Withdrawal of designation. The designation as a user fee airport 
shall be withdrawn under either of the following 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, Sept. 21, 1992, as amended by T.D. 93-32, 58 
FR 25933, Apr. 29, 1993; T.D. 95-2, 59 FR 67622, Dec. 30, 1994; T.D. 95 
-62, 60 FR 41804, Aug. 14, 1995; T.D. 96-67, 61 FR 49059, Sept. 18, 
1996; T.D. 97-64, 62 FR 37133, July 11, 1997; T.D. 99-9, 64 FR 7502, 
Feb. 16, 1999; T.D. 00-34, 65 FR 31265, May 17, 2000; T.D. 01-69, 66 FR 
49275, Sept. 27, 2001; T.D. 01-70, 66 FR 50104, Oct. 2, 2001; T.D. 02-
27, 67 FR 35723, May 21, 2002; CBP Dec. 03-09, 68 FR 42589, July 18, 
2003; CBP Dec. 03-22, 68 FR 50698, Aug. 22, 2003; CBP Dec. 05-16, 70 FR 
22783, May 3, 2005; CBP Dec. 05-15, 70 FR 22784, May 3, 2005; 71 FR 
20006, Apr. 19, 2006; 71 FR 28262, May 16, 2006; CBP Dec. 07-83, 72 FR 
59943, Oct. 23, 2007]



                       Subpart C_Private Aircraft



Sec. 122.21  Application.

    This subpart applies to all private aircraft as defined in Sec. 
122.1(h). No other provisions of this part apply to private aircraft, 
except where stated in this subpart.



Sec. 122.22  Notice of arrival.

    When arriving in the U.S. from a foreign area, all private aircraft 
not covered by Sec. 122.23 shall give advance notice of arrival as 
required in Sec. 122.31.



Sec. 122.23  Private aircraft arriving from areas south of the U.S.

    (a) Definitions. (1) For the purpose of this section, ``private 
aircraft'' means all aircraft except:
    (i) Public aircraft;
    (ii) Those aircraft operated on a regularly published schedule, 
pursuant to a

[[Page 647]]

certificate of public convenience and necessity or foreign aircraft 
permit issued by the Department of Transportation, authorizing 
interstate, overseas air transportation; and
    (iii) Those aircraft with a seating capacity 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 (Coastal) Air Defense 
Identification Zone (ADIZ) south of 30 degrees north latitude, anywhere 
outside of the inner boundary of the Gulf of Mexico (Coastal) ADIZ, or 
anywhere outside of the inner boundary of the Pacific (Coastal) ADIZ 
south of 33 degrees north latitude.
    (b) Advance report of penetration of U.S. airspace. All private 
aircraft arriving in the Continental U.S. via the U.S./Mexican border or 
the Pacific Coast from a foreign place in the Western 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 definition of ``United States'' in Sec. 122.1(1)) 
from Puerto Rico, (which if from Puerto Rico, are conducting flight 
under visual flight rules (VFR)), shall furnish a notice of intended 
arrival to Customs at the nearest designated airport to point of 
crossing listed in Sec. 122.24(b), for the first landing in the U.S. 
The notice must be furnished at least 1 hour before crossing the U.S. 
coastline or border. The notice may be furnished directly to Customs by 
telephone, radio, or other means, or may be furnishd through the Federal 
Aviation Administration to Customs. The requirement to furnish a notice 
of intended arrival shall not apply to private aircraft departing from 
Puerto Rico and conducting flight under instrument flight rules (IFR) 
until crossing the U.S. coastline or proceeding north of 30 degrees 
north latitude.
    (c) Contents of notice. The advance notice of arrival shall include 
the following:
    (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 
Sec. 122.24, unless an exemption has been granted under Sec. 122.25, 
or the aircraft has not landed in foreign territory or is arriving 
directly from Puerto Rico, or the aircraft was inspected by Customs 
officers in the U.S. Virgin Islands.



Sec. 122.24  Landing requirements.

    (a) In general. Private aircraft arriving in the U.S. from a foreign 
area shall follow the landing requirements set out in Sec. Sec. 122.23 
and 122.36.
    (b) Special requirements. Private aircraft required to furnish a 
notice of intended arrival in compliance with Sec. 122.23 shall land 
for Customs processing at the nearest designated airport to the border 
or coastline crossing point as listed in this paragraph unless exempted 
from this requirement in accordance with Sec. 122.25. In addition to 
the requirements of this section, private aircraft commanders must 
comply with all other landing and notice of arrival requirements. This 
requirement shall not apply to private aircraft which have not landed in 
foreign territory or are arriving directly from Puerto 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.

[[Page 648]]

 
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, Tex........................  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 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]

    Effective Date Note: By CBP Dec. 08-01, 73 FR 12262, Mar. 7, 2008, 
Sec. 122.24(b) was amended by adding to the list of airports, in 
alphabetical order in the ``Location'' column, ``San Antonio Tex'' and 
on the same line, in the ``Name'' column, ``San Antonio International 
Airport.'', effective April 7, 2008.



Sec. 122.25  Exemption from special landing requirements.

    (a) Request. Any company or individual that has operational control 
over an aircraft required to give advance notice of arrival under Sec. 
122.23 may request an exemption from the landing requirements in Sec. 
122.24. Single overflight exemptions may be granted to entities involved 
in air ambulance type operations when emergency situations 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 authority to be exempted from the landing 
requirements 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 traveling under an exemption shall continue to follow advance 
notice and general 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 desired 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 anticipated 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 anticipated arrival, if the request 
is for a single 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 accomplished, 
Customs will allow receipt of the overflight exemption application up to 
departure time. In cases of extreme medical emergency, Customs will 
accept overflight exemption requests in flight through a Federal 
Aviation Administration Flight Service Station.
    (c) Content of request. All requests for exemption from special 
landing requirements, with the exception of those for air ambulance 
operations and other flights involving the non-emergency transport of 
persons seeking medical treatment in the U.S., shall include the 
following information. Requests for exemptions for air ambulance 
operations and other flights involving the non-emergency transport of 
persons for medical treatment in the U.S. shall include the following 
information 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, 
manufacturer, type, number, color scheme, and type of engine (e.g., 
turbojet, turbofan, turboprop, reciprocating, helicopter, etc.);

[[Page 649]]

    (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 altitudes 
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 Security numbers (if available), and dates of birth of 
the company officer or individual signing the application. If the 
aircraft is operated under a lease, include the name, address, Social 
Security 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, addresses, 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 stating 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 section is accurate;
    (7) Names, addresses, Social Security numbers (if applicable), and 
dates of birth for all usual or anticipated passengers. An approved 
passenger must be on board to utilize the overflight exemptions.

    Note: Where the Social Security number is requested, furnishing of 
the SSN is voluntary. 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 Sec. 122.24. The SSN will be made available to 
Customs personnel 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 anticipated 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 intended 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 a private aircraft is 
granted an exemption from the landing requirements as provided in this 
section, the aircraft commander shall notify Customs at least 60 minutes 
before:
    (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 latitude; or
    (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 published airways.
    (2) The notice shall be given to a designated airport specified in 
Sec. 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 pursuant to 
this paragraph, notice pursuant to Sec. Sec. 122.23 and 122.24 is 
unnecessary.
    (3) All overflights must be conducted pursuant to an instrument 
flight plan filed with the Federal Aviation Administration or equivalent 
foreign aviation authority prior to the commencement of the overflight.

[[Page 650]]

    (4) The owner or aircraft commander of a private aircraft granted an 
exemption from the landing requirements 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 aircraft;
    (iii) Notify Customs of changes of usual or anticipated pilots or 
crewmembers as specified in paragraph (c)(5) of this section. Every 
pilot and crewmember participating in an overflight must have prior 
Customs approval either through initial application and approval, or 
through a supplemental application submitted by the new pilot or 
crewmember and approved by Customs before commencement of the pilot's or 
crewmember's first overflight.
    (iv) Request permission from Customs to conduct an overflight to an 
airport not listed in the initial overflight application as specified in 
paragraph (c)(10) of this section. The request must be directed to the 
port director who approved the initial request for an overflight 
exemption.
    (v) Retain copies of the initial request 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 approving each of these requests. The copies must be 
carried on board any aircraft during the conduct of an overflight.
    (5) The notification specified in paragraph (d)(4) of this section 
must be given to Customs within 5 working days of the change, sale, 
theft, modification, or destruction, or before a flight for which there 
is an exemption, whichever occurs earlier.
    (e) Inspection of aircraft having or requesting 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 exemption.

[T.D. 89-24, 53 FR 5429, Feb. 3, 1989, as amended by T.D. 89-24, 53 FR 
6884 and 6988, Feb. 15, 1989]



Sec. 122.26  Entry and clearance.

    Private aircraft, as defined in Sec. 122.1(h), are not required to 
formally enter or to obtain formal clearance upon departure. However, 
entry and clearance requirements do apply to air charter and air taxi 
operators.



Sec. 122.27  Documents required.

    (a) Crewmembers and passengers. Crewmembers 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 declaration of articles 
acquired in foreign 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 Customs Form 6059-B, and shall be entered. If the cargo 
or unaccompanied baggage is not listed on a baggage declaration, it 
shall be entered in the same manner as cargo carried for hire into the 
U.S.
    (2) On departure, when a private aircraft 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 landing certificate 
or certified copy of a foreign Customs entry is required as proof of 
exportation if the cargo includes:
    (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 aircraft.

A foreign 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 merchandise is exported, 
unless it is

[[Page 651]]

shown that the country has no Customs administration, in which case the 
certificate may be signed by the consignee 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 arriving in 
the U.S. must present for inspection a valid pilot certificate/license, 
medical certificate, authorization, or license held by that person, when 
presentation 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 Application (FAA Form AC 8050-1), and does not 
constitute a valid certificate of registration authorizing travel 
internationally.

[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]



Sec. 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 resident shall be admitted under the conditions and procedures 
set forth in Sec. 148.32 of this chapter. Repairs made abroad, and 
accessories purchased abroad shall be included in the baggage 
declaration as required by Sec. 148.32(c), and may be subject to entry 
and payment of duty as provided in Sec. 148.32.



Sec. 122.29  Arrival fee and overtime services.

    Private aircraft may be subject to the payment of an arrival fee for 
services provided as set forth in Sec. 24.22 of this chapter. For the 
procedures to be followed in requesting overtime services in connection 
with the arrival of private aircraft, see Sec. 24.16 of this chapter.

[T.D. 93-85, 58 FR 54286, Oct. 21, 1993]



Sec. 122.30  Other Customs laws and regulations.

    Sections 122.2 and 122.161 apply to private aircraft.



                     Subpart D_Landing Requirements



Sec. 122.31  Notice of arrival.

    (a) Application. Except as provided in paragraph (b) of this 
section, all aircraft entering the U.S. from a foreign area shall give 
advance notice of arrival. When a private aircraft, as defined in Sec. 
122.23(a) of this part, enters the U.S. from a foreign area in the 
Western hemisphere south of the U.S., advance notice shall be given as 
provided in Sec. 122.23. Aircraft arriving from Cuba shall follow the 
procedures set forth in subpart O of this part.
    (b) Exceptions for scheduled aircraft of a scheduled airline. 
Advance notice is not required for aircraft of a scheduled airline 
arriving under a regular schedule. The regular schedule shall have been 
filed with the port director for the airport where the first landing is 
made.
    (c) Giving notice of arrival--(1) Procedure. The commander of an 
aircraft covered by this section shall give the advance notice of 
arrival. Notice shall be given to the port director at the place of 
first landing, either:
    (i) Directly by radio, telephone, or other method; or
    (ii) Through Federal Aviation Administration flight notification 
procedure (see International Flight Information Manual, Federal Aviation 
Administration).
    (2) Reliable facilities. When reliable means for giving notice are 
not available (for example, when departure is from a remote place) a 
landing shall be made at a place where notice can be sent prior to 
coming into the U.S.
    (d) Contents of notice. The advance notice of arrival shall include 
the following information:
    (1) Type of aircraft and registration number;
    (2) Name 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 Customs;
    (5) Number of alien passengers;
    (6) Number of citizen passengers; and
    (7) Estimated time of arrival.

[[Page 652]]

    (e) Time of notice. Notice of arrival shall be furnished far enough 
in advance to allow inspecting officers to reach the place of first 
landing of the aircraft.
    (f) Notice of other Federal agencies. When advance notice is 
received, the port director shall inform any other concerned Federal 
agency.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 95-77, 60 FR 
50020, Sept. 27, 1995]



Sec. 122.32  Aircraft required to land.

    Any aircraft coming into the U.S., including Puerto Rico, from an 
area outside the U.S., is required to land, unless exempted by the 
Federal Aviation Administration.



Sec. 122.33  Place of first landing.

    (a) The first landing of an aircraft entering the United States from 
a foreign area will be:
    (1) At a designated international airport (see Sec. 122.13), 
provided that permission to land has not been denied pursuant to Sec. 
122.12(c);
    (2) At a landing rights airport if permission to land has been 
granted (see Sec. 122.14); or
    (3) At a designated user fee airport if permission to land has been 
granted (see Sec. 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 Sec. 
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]



Sec. 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 (see Sec. Sec. 122.52, 122.54 and 122.83(d)), or a Customs Form 
7509 (see Sec. 122.113); or
    (2) Coming into the U.S. from a foreign area.
    (b) Notice. When an emergency or forced landing is made, notice 
shall be given:
    (1) To the Customs Service at the intended 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 arrive. Passengers and 
crewmembers may be removed if necessary for safety, or for the purpose 
of contacting Customs.
    (d) Merchandise and baggage. The aircraft commander or other person 
in charge shall keep all merchandise and baggage together and unopened 
at the landing area until Customs officers arrive. The merchandise and 
baggage may be removed for safety or to protect 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.



Sec. 122.36  Responsibility of aircraft commander.

    If an aircraft lands in the U.S. and Customs officers have not 
arrived, the aircraft commander shall hold the aircraft, and any 
merchandise or baggage on the aircraft for inspection. Passengers and 
crewmembers shall be kept in a separate place until Customs officers 
authorize their departure.



Sec. 122.37  Precleared aircraft.

    (a) Application. This section applies when aircraft carrying crew, 
passengers and baggage, or merchandise which has been precleared 
pursuant to Sec. 148.22 of this chapter at a location listed in Sec. 
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 arrangements have been 
made in advance

[[Page 653]]

between the carrier and the port director.



Sec. 122.38  Permit and special license to unlade and lade.

    (a) Applicability. Before any passengers, baggage, or merchandise 
may be unladen or laden aboard on arrival or departure of an aircraft 
subject to these regulations, a permit and/or special license to unlade 
or lade shall be obtained from Customs.
    (1) Permit to unlade or lade. A permit is required to obtain Customs 
supervision of unlading and lading during official 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 complies with the terminal facilities and employee 
list requirements of Sec. 4.30 of this chapter.
    (c) Term permit or special license. A term permit or special license 
may be issued covering all arrivals and departures 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 needed. 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 employee list requirements of 
Sec. 4.30 of this chapter. In addition, a term permit or special 
license to unlade or lade already issued will not be applicable to 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 Sec. 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, operator, or agent for an 
aircraft on Customs 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 accompanied 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 requirement under paragraph (d) of this section that either a 
bond or a cash deposit be made, if he is convinced the revenue is 
protected and that all Customs 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 appropriate bond conditions set forth in subpart G of 
part 113 of this chapter is on file. The request shall be for successive 
annual periods which conform to the automatic renewal periods of the 
bond. An application will be approved by the port director unless 
specific reasons exist for denial. If a request for automatic renewal is 
not approved, the port director shall notify the requestor, and shall 
state the reasons for the denial. To apply for automatic renewal, item 
10 on Customs Form 3171 shall be changed by adding the following words 
after the period of time indicated: ``And automatic annual renewal 
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 arrival or departure of 
an aircraft, and a term permit or special license already issued will 
not be applicable to any inbound or outbound flight, with respect to 
which CBP has not received the advance electronic cargo information 
required, respectively, under Sec. 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 Sec. 122.48a 
or 192.14 of this chapter, as

[[Page 654]]

applicable, CBP may delay issuance of a permit or special license to 
unlade or lade cargo, and a term permit or special 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 specific cargo for which advance 
information is not timely received electronically, as specified in Sec. 
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 Manifest

Requirements for Passengers, Crew Members, and Non-Crew Members Onboard 
 Commercial Aircraft Arriving In, Continuing Within, and Overflying the 
                              United States



Sec. 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 transporting only cargo that is the 
property of, the U.S. Department of Defense (DoD), where the DoD-
chartered aircraft 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, relating 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]



Sec. 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 international airport pursuant to Sec. Sec. 122.34 or 122.35, the 
aircraft commander 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 aircraft 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. Except 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 secured.



Sec. 122.43  General declaration.

    (a) When required. A general declaration, Customs Form 7507, shall 
be filed for all aircraft required to enter under Sec. 122.41 (Aircraft 
required to enter).
    (b) Exception. Aircraft arriving directly from Canada on a flight 
beginning in Canada and ending in the U.S. need not file a general 
declaration to enter. Instead, an air cargo manifest (see Sec. 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 following:

    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_______________________________________________________________

(Aircraft Commander or Agent)

    (c) Form. The general declaration shall be on Customs Form 7507 or 
on a privately printed form prepared under Sec. 122.5. The form shall 
contain all required information, unless the information is given in 
some other manner under subpart E of this part.



Sec. 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

[[Page 655]]

provided in subpart G, part 148 of this chapter.



Sec. 122.45  Crew list.

    (a) When required. A crew list shall be filed by all aircraft 
required to enter under Sec. 122.41.
    (b) Exception. No crew list is required for aircraft arriving 
directly from Canada 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, middle 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 passengers. Crewmembers of any aircraft 
returning to the U.S. as passengers on a commercial aircraft from a trip 
on which they were employed as crewmembers shall be listed on the 
aircraft general declaration or crew list.



Sec. 122.46  Crew purchase list.

    (a) When required. A crew purchase list shall be filed with the 
general declaration for any aircraft required to enter under Sec. 
122.41.
    (b) Exception. A crew purchase list is not required for aircraft 
arriving directly from Canada on a flight beginning in Canada and ending 
in the U.S. If a written crew declaration is required for the aircraft 
under subpart G of part 148 of this chapter (Crewmember Declarations and 
Exemptions), it shall be attached to the air cargo manifest, along with 
the number of any written crew declarations.
    (c) Form. If a crewmember enters articles for which a written crew 
declaration is not required (see subpart G, part 148 of this chapter), 
the articles shall be listed next to the crewmember's name on the 
general declaration, 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.



Sec. 122.47  Stores list.

    (a) When required. A stores list shall be filed for all aircraft 
required to enter under Sec. 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 attached 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 following:
    (i) Alcoholic beverages, cigars, cigarettes and narcotic drugs, 
whether domestic or foreign;
    (ii) Bonded merchandise arriving as stores;
    (iii) Foreign merchandise arriving as stores; and
    (iv) Equipment which must be licensed by the Secretary of State (see 
Sec. 122.48(b)).
    (2) Other articles. In the case of aircraft of scheduled airlines, 
other domestic 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 separate 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 arriving in the U.S. from any foreign area.



Sec. 122.48  Air cargo manifest.

    (a) When required. Except as provided in paragraphs (d) and (e) of 
this section, an air cargo manifest need not be filed or retained aboard 
the aircraft for any aircraft required to enter under Sec. 122.41. 
However, an air cargo manifest for all cargo on board must otherwise be 
available for production upon demand. The general declaration must be 
filed as provided in Sec. 122.43.
    (b) Exception. A cargo manifest is not required for merchandise, 
baggage and

[[Page 656]]

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, Customs Form 7509, must contain 
all required 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 waybills 
covering the cargo on board, including, if a consolidated shipment, any 
house air waybills. When copies of air waybills are attached, the 
statement ``Cargo as per air waybills attached'' must appear on the 
manifest. The manifest must reference an 11-digit air waybill number for 
each air waybill it covers. The air waybill number must not be used by 
the issuer for another air waybill for a period of one year after 
issuance.
    (d) Unaccompanied baggage. Unaccompanied 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 delivery 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 provision of Chapter 98, HTSUS (19 U.S.C. 1202), 
and cannot be restricted or prohibited. Unaccompanied checked baggage 
not presented timely to Customs or presented timely and found by Customs 
to be dutiable, restricted, or prohibited may be subject to seizure. 
Such unaccompanied checked baggage shall be added to the cargo list in 
columns under the following headings:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              Name of examining
             Check No.                     Description             Where from             Destination              officer              Disposition
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
--------------------------------------------------------------------------------------------------------------------------------------------------------


The two columns, headed ``Name of examining officer'' and 
``Disposition,'' are provided on the cargo manifest for the use of 
Customs officers. Unaccompained unchecked baggage arriving 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 aircraft 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 considered 
cargo and shall be listed on Customs Form 7509, Air Cargo Manifest.

[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]



Sec. 122.48a  Electronic information for air cargo required in advance of arrival.

    (a) General requirement. Pursuant to section 343(a), Trade Act of 
2002, as amended (19 U.S.C. 2071 note), and subject to paragraph (e) of 
this section, for any inbound aircraft required to enter under Sec. 
122.41, that will have commercial 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 section, certain information concerning the incoming 
cargo, as enumerated, respectively, in paragraphs (d)(1) and (d)(2) of 
this section. The CBP must receive such information no later than the 
time frame prescribed in paragraph (b) of this section. The advance 
electronic transmission of the required cargo information to CBP must be 
effected through a CBP-approved electronic data interchange system.
    (1) Cargo remaining aboard aircraft; cargo to be entered under bond. 
Air cargo arriving from and departing for a foreign country on the same 
through flight and cargo that is unladen from the arriving aircraft and 
entered, in bond, for exportation, or for transportation and exportation 
(see subpart J of this part), are subject to the advance electronic 
information filing requirement under paragraph (a) of this section.
    (2) Diplomatic Pouches and Diplomatic Cargo. When goods comprising a 
diplomatic or consular bag (including cargo shipments, containers, and 
the like

[[Page 657]]

identified as Diplomatic Pouch) that belong to the United States or to a 
foreign government are shipped under an air waybill, such cargo is 
subject to the advance reporting requirements, but the description of 
the shipment as Diplomatic Pouch will be sufficient detail for 
description. Shipments identified as Diplomatic Cargo, such as office 
supplies or unaccompanied household goods, are subject to the advance 
reporting requirements of paragraph (a) of this section.
    (b) Time frame for presenting data--(1) Nearby foreign areas. In the 
case of aircraft under paragraph (a) of this section that depart for the 
United States from any foreign port or place in North America, including 
locations in Mexico, Central America, South America (from north of the 
Equator only), the Caribbean, and Bermuda, CBP must receive 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 section that depart for the United States from any foreign area 
other than that specified in paragraph (b)(1) of this section, CBP must 
receive the required cargo information no later than 4 hours prior to 
the arrival of the aircraft in the United States.
    (c) Party electing to file advance electronic cargo data--(1) Other 
filer. In addition to incoming air carriers for 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 Resources 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 Transport Association) code, that arranged to have the incoming air 
carrier transport 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 communication protocol required by CBP for properly 
presenting cargo information through the approved data interchange 
system. Also, other than a broker or an importer (see Sec. 113.62(j)(2) 
of this chapter), the party must possess a Customs international carrier 
bond containing all the necessary provisions of Sec. 113.64 of this 
chapter.
    (3) Nonparticipation by other party. If another party as specified 
in paragraph (c)(1) of this section does not participate in advance 
electronic cargo information filing, the party that arranges for and/or 
delivers the cargo shipment to the incoming carrier must fully disclose 
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 section.
    (4) Required information in possession of third party. Any other 
entity in possession 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 electronically presenting the cargo information required in 
paragraph (d) of this section receives any of this information from 
another party, CBP will take into consideration how, in accordance with 
ordinary commercial practices, 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 information on the basis of what that party reasonably 
believes to be true.

[[Page 658]]

    (d) Non-consolidated/consolidated shipments. 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 described in paragraph (c)(1) of this section 
electronically transmits this information 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 conditional 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-character ICAO codes, provided that the final digit of the 2-
character code is not a numeric value);
    (iv) Airport of arrival (M) (The 3-alpha character ICAO code 
corresponding to the first airport of arrival in the Customs territory 
of the United States (for example, Chicago O'Hare = ORD; Los Angeles 
International 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 shipment 
began its transportation from Hong Kong (HKG), and it transits through 
Narita, Japan (NRT), en route to the United States, the airport of 
origin 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 expressed in either pounds or 
kilograms);
    (ix) Precise cargo description (M) (for consolidated shipments, the 
word ``Consolidation'' is a sufficient description for the master air 
waybill record; for non-consolidated shipments, a precise cargo 
description or the 6-digit Harmonized Tariff Schedule (HTS) number must 
be provided (generic descriptions, specifically those such as ``FAK'' 
(``freight of all kinds''), ``general cargo'', and ``STC'' (``said to 
contain'') 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-consolidated 
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 contrast, the identity of a 
carrier, freight forwarder or consolidator is not acceptable);
    (xi) Consignee name and address (M) (for consolidated shipments, the 
identity of the container station, express consignment or other carrier 
is sufficient 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 
corresponding to the permit-to-proceed destination airport); and the 
scheduled date of arrival at the permit-to-proceed destination airport);

[[Page 659]]

    (xv) Identifier of other party which is to submit additional air 
waybill information (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 identifier, 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 directly to CBP. 
Information for all house air waybills under a single master 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 indicates that the data element is conditional and must be 
transmitted to CBP only if the particular information pertains 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 character that is indicated 
on the paper house air waybill document must be included in the 
electronic transmission; alpha characters may not be eliminated));
    (ii) Foreign 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 shipment 
began its transportation from Hong Kong (HKG), and it transits through 
Narita, Japan (NRT), en route to the United States, the airport of 
origin 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 
kilograms);
    (vi) Shipper name and address (M) (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 
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 identifier, if applicable (C)).
    (3) Additional cargo information from air carrier; split shipment. 
When the incoming air carrier elects to transport cargo covered under a 
single consolidated air waybill on more than one aircraft as a split 
shipment (see Sec. 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 element is 
conditional and must be transmitted to CBP only if the particular 
information 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 characters (each 
alphanumeric number that is indicated on the paper house air waybill 
must be included in the electronic transmission; alpha characters may 
not be eliminated));
    (ii) The trip/flight number (M);

[[Page 660]]

    (iii) The carrier/ICAO code (M) (The approved electronic data 
interchange system supports both 3- and 2-character 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 
corresponding to the first airport of arrival in the Customs territory 
of the United States (for example, Chicago O'Hare = ORD; Los Angeles 
International Airport = LAX));
    (v) The 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 shipment 
began its transportation from Hong Kong (HKG), and it transits through 
Narita, Japan (NRT), en route to the United States, the airport of 
origin 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 furnished 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-proceed destination airport (the 3-alpha character ICAO code 
corresponding 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 quantity of the cargo covered by the 
house air waybill (see paragraph (d)(3)(vii) of this section) that is 
included in the incoming 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 incoming portion of the split shipment).
    (e) Compliance date of this section--(1) General. Subject to 
paragraph (e)(2) of this section, all affected air carriers, and other 
parties as specified in paragraph (c)(1) of this section that elect to 
participate in advance automated cargo information filing, must comply 
with the requirements of this section on and after March 4, 2004.
    (2) Delay in compliance date of section. The CBP may delay the 
general compliance date set forth in paragraph (e)(1) of this section in 
the event that any necessary modifications to the approved electronic 
data interchange system are not yet in place. Also, CBP may delay the 
general compliance date of this section at a given port until CBP has 
afforded any necessary training to CBP personnel at that port. In 
addition, CBP may delay implementation if further time is required to 
complete certification testing of new participants. Any such delay would 
be the subject of an announcement in the Federal Register.

[CBP Dec. 03-32, 68 FR 68170, Dec. 5, 2003]



Sec. 122.49  Correction of air cargo manifest or air waybill.

    (a) Shortages--(1) Reporting. Shortages (merchandise listed on the 
manifest or air waybill but not found) shall be reported to the port 
director by the aircraft commander or agent. The report shall be made:
    (i) On a Customs Form 5931, filled out and signed by the importer 
and the importing or bonded carrier; or
    (ii) On a Customs Form 5931, filled out and signed by the importer 
alone under Sec. 158.3 of this chapter; or
    (iii) On a copy of the cargo manifest, which shall be marked 
``Shortage Declaration,'' and must list the merchandise involved and the 
reasons for the shortage.
    (2) Time to file. Shortages shall be reported 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 imported, or was properly disposed 
of; or
    (ii) That corrective action was taken. This proof shall be kept in 
the carrier

[[Page 661]]

file for one year from the date of aircraft entry.
    (b) Overages--(1) Reporting. Overages (merchandise found but not 
listed on the manifest or air waybill) shall be reported to the port 
director by the aircraft 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 merchandise and the reason for the 
overage.
    (2) Time to file. Overages shall be reported 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 include the signed statement of the aircraft 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 carrier's files for a period of at least one year and 
will be made available to Customs on demand.

Signature_______________________________________________________________
(Aircraft Commander or Agent)

    (d) Notice by port director. The port director shall immediately 
notify the aircraft commander or agent of any shortages or overages that 
were not reported by the aircraft commander or agent. Notice shall be 
given by sending a copy of Customs Form 5931 to the aircraft commander 
or agent, or in any other appropriate way. The aircraft commander or 
agent shall make a satisfactory reply within 30 days of entry of the 
aircraft or receipt of the notice, whichever is later.
    (e) Correction not required. A correction 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 manifest or air waybill, and 
the quantity unladen, is the usual difference caused by absorption or 
loss of moisture, temperature, faulty weighing at the airport, or other 
such reason; and
    (2) The marks or numbers on merchandise 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.
    (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 (concerning manifest 
violations), Tariff Act of 1930, as amended (19 U.S.C. 1584, applies.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 98-74, 63 FR 
51288, Sept. 25, 1998]



Sec. 122.49a  Electronic manifest requirement for passengers onboard commercial aircraft arriving in the United States.

    (a) Definitions. The following definitions apply for purposes of 
this section:
    Appropriate official. ``Appropriate official'' 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 aircraft'' has the meaning 
provided in Sec. 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 section should not be applied in the context of other 
customs laws, to the extent this definition differs from the meaning of 
``crew member'' contemplated 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 directly to its 
destination.
    Emergency. ``Emergency'' means, with respect to an aircraft arriving 
at a U.S. port due to an emergency, an urgent situation due to a 
mechanical, medical, or security problem affecting

[[Page 662]]

the flight, or to an urgent situation affecting 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 Security 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 aircraft's doors are closed and secured for flight.
    United States. ``United States'' means the continental United 
States, Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands of the 
United States.
    (b) Electronic arrival manifest--(1) General--(i) Basic requirement. 
Except as provided in paragraph (c) of this section, an appropriate 
official of each commercial aircraft (carrier) arriving in the United 
States from any place outside the United States must transmit to the 
Advance Passenger Information System (APIS; referred to in this section 
as the Customs and Border Protection (CBP) system), the electronic data 
interchange system approved by CBP for such transmissions, an electronic 
passenger arrival manifest covering all passengers checked in for the 
flight. A passenger manifest must be transmitted separately from a crew 
member manifest required under Sec. 122.49b if transmission is in U.S. 
EDIFACT format. 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 carrier required to make passenger 
arrival 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 transmission system approved by CBP. The 
carrier may make a single, complete batch manifest transmission 
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 
manifest transmissions, 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 carrier by a non-interactive transmission method a ``not-cleared'' 
instruction for passengers identified as requiring additional security 
analysis and a ``selectee'' instruction for passengers requiring 
secondary screening (e.g., additional examination of the person and/or 
his baggage) under applicable Transportation Security Administration 
(TSA) requirements. The carrier must designate as a ``selectee'' any 
passenger so identified during initial security vetting, 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 must contact TSA to seek resolution of the 
``not-cleared'' instruction by providing, if necessary, additional 
relevant 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 additional 
security analysis.
    (B) Interactive batch 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 interactive 
electronic transmission system configured for batch transmission of data 
and receipt from the CBP system of appropriate messages. 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

[[Page 663]]

flight or two or more partial batch manifests, each containing the 
required data for the identified passengers and which together cover all 
passengers checked in for the flight. In the case of connecting 
passengers arriving at the connecting airport already 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 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 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 passenger so identified during initial 
security vetting, 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), 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'' instruction 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, additional 
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 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 devised 
by the carrier or by specific passenger data (e.g., 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 information 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 interactive electronic transmission system configured for 
transmitting individual passenger data for each passenger and for 
receiving from the CBP system appropriate 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 possession of 
boarding passes for a U.S.-bound flight whose data have not been 
collected by the carrier, as these connecting 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'' instruction for passengers 
identified as requiring additional security analysis, and a ``selectee'' 
instruction for passengers requiring 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 passenger so identified during initial security 
vetting, 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

[[Page 664]]

passenger until the CBP system returns a ``cleared'' or ``selectee'' 
response 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'' 
instruction by contacting TSA and providing, if necessary, additional 
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 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 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 methods. If certified to do so, a 
carrier may make transmissions under both paragraphs (b)(1)(ii)(B) and 
(C) of this section for a particular flight or for different flights.
    (E) Certification. Before making any required manifest transmissions 
under paragraph (b)(1)(ii)(B) or (C) of this section, a carrier must 
subject its electronic transmission system to CBP testing, and CBP must 
certify that the carrier's system is then presently capable of 
interactively communicating with the CBP system for effective 
transmission of manifest data and receipt of appropriate messages in 
accordance with those paragraphs.
    (2) Place and time for submission. The appropriate official 
specified in paragraph (b)(1)(i) of this section (carrier) must transmit 
the arrival manifest or manifest data as required under paragraphs 
(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;
    (ii) For manifest information transmitted under paragraph 
(b)(1)(ii)(C) of this section, no later than the securing of the 
aircraft;
    (iii) For flights not originally destined 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-compliance, CBP will take into consideration whether the carrier 
was equipped to make the transmission and the circumstances of the 
emergency situation.
    (3) Information required. Except as provided in paragraph (c) of 
this section, the electronic passenger arrival manifest required under 
paragraph (b)(1) of this section must contain the following information 
for all passengers, 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 information is not required for 
U.S. citizens, lawful permanent residents, or persons

[[Page 665]]

who are in transit to a location outside the United States;
    (xiii) Passenger Name Record locator, if available;
    (xiv) International Air Transport Association (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 passengers (foreign port code);
    (xvii) Airline carrier code;
    (xviii) Flight number; and
    (xix) Date of aircraft arrival.
    (c) Exception. The electronic passenger arrival manifest specified 
in paragraph (b)(1) of this section is not required for active duty U.S. 
military personnel being transported as passengers on arriving 
Department of Defense commercial chartered aircraft.
    (d) Carrier responsibility for comparing information collected with 
travel document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing the travel 
document presented by the passenger 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 to the United States, and the passenger is the person to whom 
the travel document was issued.
    (e) Sharing of manifest information. Information 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 protecting national security. CBP may also share such 
information as otherwise 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]



Sec. 122.49b  Electronic manifest requirement 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 Sec. 122.49a(a), other 
than those for the terms set forth below, also apply for purposes of 
this section:
    All-cargo flight. ``All-cargo flight'' means a flight in operation 
for the purpose 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 Sec. 122.49a(a), 
``carrier'' includes 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 applicable). In addition, the definition 
of ``crew member'' applicable to this section should not be applied in 
the context of other customs laws, to the extent this definition differs 
from the meaning of ``crew member'' contemplated 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 foreign port or place that 
enters the territorial airspace of the U.S. en route to another foreign 
port or place.
    Non-crew member. ``Non-crew member'' means air carrier employees and 
their family members and persons traveling onboard a commercial aircraft 
for the safety of the flight (such as an animal handler when animals are 
onboard). The definition of ``non-crew member'' is limited to all-cargo 
flights.

[[Page 666]]

(On a passenger or dual flight (passengers and cargo), air carrier 
employees, 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) General requirement. Except as 
provided in paragraph (c) of this section, an appropriate official of 
each commercial aircraft 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 transmitted to CBP at the 
place and time specified in paragraph (b)(2) of this section by means of 
an electronic data interchange system approved by CBP and must set forth 
the information specified in paragraph (b)(3) of this section. Where 
both a crew member manifest 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 members and non-crew members. Where a 
passenger arrival manifest under Sec. 122.49a and a crew member arrival 
manifest under this section are required, they must be transmitted 
separately if the transmission is in US EDIFACT format.
    (2) Place and time for submission; certification; changes to 
manifest. (i) Place and time for submission. The appropriate official 
specified in paragraph (b)(1) of this section must transmit the 
electronic manifest required under paragraph (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 departure of the aircraft from 
the foreign port or place of departure, and with respect 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 destined to arrive in 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 noncompliance, CBP will take into 
consideration that the carrier was not equipped to make the transmission 
and the circumstances of the emergency situation; 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 appropriate 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 
submitted to CBP in accordance with Sec. 122.49c. If a crew member or 
non-crew member on the manifest is not also included on the appropriate 
master list, the flight may be, as appropriate, denied clearance to 
depart, diverted from arriving in the United States, or denied clearance 
to enter the territorial airspace of the United States.
    (iii) Changes to manifest. The appropriate official is obligated to 
make necessary changes to the crew member or non-crew member manifest 
after transmission of the manifest to CBP. Necessary changes include 
adding a name, with other required information, to the manifest or 
amending previously submitted information. If changes are submitted less 
than 60 minutes before scheduled flight departure, the air carrier must 
receive approval from TSA before allowing the flight to depart or the 
flight may be, as appropriate, denied clearance to depart, diverted from 
arriving in the United States, or denied clearance to enter the 
territorial airspace of the United States.
    (3) Information required. The electronic crew member and non-crew

[[Page 667]]

member manifests required under paragraph (b)(1) of this section must 
contain 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 applicable, 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 Association (IATA) code of foreign 
port/place where transportation to the United States began or where the 
transportation destined to the territorial 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 Sec. 122.49a applies to 
these inspectors on flights arriving in the United States, as they are 
considered passengers on arriving flights;
    (2) For crew members traveling onboard 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 provision of paragraph (b)(2)(ii) of 
this section is inapplicable; and
    (ii) The TSA manifest change approval requirement of paragraph 
(b)(2)(iii) of this section is inapplicable;
    (3) For crew members traveling onboard an aircraft 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;
    (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 manifest 
requirement of Sec. 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 document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing the travel 
document presented by the crew member or non-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 to the United States, and the crew member 
or non-crew member is the person to whom the travel document was issued.
    (e) Sharing of manifest information. Information contained in the 
crew member and non-crew member manifests required by this section that 
is received by CBP electronically may, upon request, be shared with 
other Federal

[[Page 668]]

agencies for the purpose of protecting national security. CBP may also 
share such information as otherwise authorized 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 amendment, or 
security directive issued by the TSA to an air carrier subject to 49 CFR 
part 1544, 1546, or 1550. The provisions or amendments will have 
superseding 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]



Sec. 122.49c  Master crew member list and master non-crew member list requirement for commercial aircraft arriving in, departing from, continuing within, and 
          overflying the United States.

    (a) General requirement. Air carriers subject to the provisions of 
Sec. 122.49b and Sec. 122.75b, with respect to the flights covered in 
those sections, must electronically transmit to Customs and Border 
Protection (CBP), by means of an electronic data interchange system 
approved by CBP, a master crew member list and a master non-crew member 
list containing the information set forth in paragraph (c) of this 
section covering, respectively, all crew members 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 
system, it must submit the required information 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 information 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 submit deletions from the lists as expeditiously as possible.
    (c) Master list information. The electronic master crew lists 
required under paragraph (a) of this section must contain the following 
information with respect 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 section 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 applicable, and country);
    (5) Citizenship;
    (6) Country of residence;
    (7) Address of permanent residence;
    (8) Passport number, if passport required;
    (9) Passport country of issuance, if passport required;
    (10) Passport expiration date, if passport required;
    (11) Pilot certificate number and country of issuance, if 
applicable;
    (12) Status onboard the aircraft.
    (d) Exception. The master crew member and non-crew member list 
requirements of this section do not apply to aircraft chartered by the 
U.S. Department 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,

[[Page 669]]

or alternative procedures authorized by TSA for compliance with an 
aviation security program, emergency amendment, 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 superseding 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]



Sec. 122.49d  Passenger Name Record (PNR) information.

    (a) General requirement. Each air carrier, foreign and domestic, 
operating a passenger flight in foreign air transportation to or from 
the United States, including flights to the United States where the 
passengers have already been pre-inspected or pre-cleared at the foreign 
location for admission to the U.S., must, upon request, provide Customs 
with electronic access to certain Passenger Name Record (PNR) 
information, as defined and described in paragraph (b) of this section. 
In order to readily provide Customs with such access to requested PNR 
information, each air carrier must ensure that its electronic 
reservation/departure control systems correctly interface with the U.S. 
Customs Data Center, Customs Headquarters, as prescribed in paragraph 
(c)(1) of this section.
    (b) PNR information defined; PNR information that Customs may 
request--(1) PNR information defined. Passenger Name Record (PNR) 
information refers to reservation information contained in an air 
carrier's electronic reservation 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 relating 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 possesses the requested data elements in its 
reservation system and/or departure control system. There is no 
requirement that the carrier collect any PNR information under this 
paragraph, that the carrier does not otherwise collect on its own and 
maintain in its electronic 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/departure control 
systems with the U.S. Customs Data Center, Customs Headquarters, in 
order to facilitate Customs ability to retrieve needed Passenger Name 
Record data from these electronic systems. To effect this interface 
between the air carrier's electronic reservation/departure control 
systems and the Customs Data Center, the carrier must:
    (i) Provide Customs with an electronic connection to its reservation 
system and/or departure control system. (This connection can be provided 
directly to the Customs Data Center, Customs Headquarters, or through a 
third party vendor that has such a connection to Customs.);
    (ii) Provide Customs with the necessary airline reservation/
departure control systems' commands that will enable Customs to:
    (A) Connect to the carrier's reservation/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 carrier'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 Customs.
    (2) Time within which carrier must interface with Customs Data 
Center to facilitate Customs access to requested PNR data. Any air 
carrier which has not taken steps to fully and effectively

[[Page 670]]

interface its electronic reservation/departure control systems with the 
Customs Data Center must do so, as prescribed 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 contacted by Customs, if an air carrier 
determines it needs more than 30 days to properly interface its 
automated database with the Customs Data Center, it may apply in writing 
to the Assistant Commissioner, Office of Field Operations (OFO) for an 
extension. Following 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 Commissioner 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 electronically 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 authorized by law.

[T.D. 02-33, 67 FR 42712, June 25, 2002. Redesignated by CBP Dec. 05-12, 
70 FR 17852, Apr. 7, 2005]



Sec. 122.50  General order merchandise.

    (a) Any merchandise or baggage regularly landed but not covered by a 
permit for its release shall be allowed to remain at the place of 
unlading until the fifteenth calendar day after landing. No later than 
20 calendar days after landing, the pilot or owner of the aircraft or 
the agent thereof shall notify Customs of any such merchandise or 
baggage for which entry has not been made. Such notification shall be 
provided in writing or by any appropriate 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 agent thereof. If the 
value of the merchandise 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 Customs of any such merchandise or baggage for which entry has 
not been made. Such notification shall be provided 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 Sec. 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 presence of such unreleased and unentered 
merchandise or baggage to a bonded warehouse certified by the port 
director as qualified to receive general order merchandise. Such 
notification shall be provided in writing or by any appropriate 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 responsibility of the bonded 
warehouse proprietor to arrange for the transportation 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

[[Page 671]]

designated by the port director or an electronic equivalent as 
authorized by Customs, to cover the proprietor's receipt of 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 Sec. 19.9 of this chapter). 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-authorized permit to transfer or in-bond 
entry fails to notify a Customs-approved bonded warehouse of such 
merchandise or baggage within the applicable 20-calendar-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 carrier or 
custodial bond (see Sec. Sec. 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 merchandise has been transferred by a Customs-authorized 
permit to transfer or in-bond entry fails to timely relinquish custody 
of the merchandise to a Customs-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 section, he may be liable for the payment of 
liquidated damages under the terms and conditions of his custodial bond 
(see Sec. 113.63(a)(1) of this chapter). If the port director finds 
that the warehouse proprietor cannot accept the goods because they are 
required by law to be exported or destroyed (see Sec. 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 responsible 
under bond for exporting or destroying the goods, as necessary (see 
Sec. Sec. 113.63(c)(3) and 113.64(b) of this chapter).
    (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 facility, 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) Merchandise taken into the custody 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



Sec. 122.51  Aircraft of domestic origin registered in the U.S.

    After Customs inspection of the aircraft, passengers, baggage and 
merchandise at the entry airport, commercial aircraft of domestic origin 
registered in the U.S. may be allowed to proceed to other airports in 
the U.S. without permit.



Sec. 122.52  Aircraft of foreign origin registered in the U.S.

    (a) Application. This section applies to commercial aircraft (as 
defined in Sec. 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 article. If an aircraft covered 
by this section is entered as an imported article,

[[Page 672]]

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 declaration 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 article--(1) Treatment as other 
than an imported 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 Sec. 122.54. Treatment of the aircraft as other than an 
imported article shall continue for so long as the aircraft:
    (i) Is used only for commercial purposes between the U.S. and 
foreign areas; and
    (ii) Will leave the U.S. for a foreign destination in commercial use 
or carrying 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 commercial use of the aircraft between the U.S. and foreign 
areas.
    (3) Aircraft damage and duty payment--(i) Substantial damage to 
commercial aircraft. If an accident causes substantial damage to a 
commercial aircraft, no entry or duty payment is required 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 substantial damage to a commercial aircraft and the 
wrecked aircraft or any salvageable part of it is not exported, then:
    (A) Entry is required to be made for the damaged aircraft or any 
salvageable part of it; and
    (B) A duty payment, if applicable, based on the condition of the 
aircraft following the accident, is required.



Sec. 122.53  Aircraft of foreign registry chartered or leased to U.S. air carriers.

    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.



Sec. 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 neither passengers nor cargo) from 
the airport of first arrival to one or more airports in the U.S. (For 
permit to proceed 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 carrier or its agent. Customs 
Form 7509 may be used if the aircraft arrives directly from Canada on a 
flight beginning 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 number of aircraft;
    (3) Name and country of aircraft manufacturer;
    (4) Name of aircraft commander;
    (5) Country from which aircraft arrived;
    (6) Name and location of airport where international traffic permit 
is issued;
    (7) Date international traffic permit is issued;

[[Page 673]]

    (8) Name and location of airport to which aircraft is proceeding;
    (9) Purpose of stay in the U.S.;
    (10) Signature of Customs officer giving 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 airport 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 airport to be visited; and
    (5) Date and time of departure.
    (e) Final airport. The international traffic permit shall be given 
to the Customs officer in charge at the airport of final clearance for a 
foreign destination. 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 director shall report the matter to the Customs agent in 
charge of the area for investigation.



        Subpart G_Clearance of Aircraft and Permission To Depart



Sec. 122.61  Aircraft required to clear.

    (a) All aircraft, except public and private aircraft, leaving the 
U.S. for a foreign area are required to clear if:
    (1) Carrying passengers and/or merchandise for hire; or
    (2) Taking aboard or discharging passengers 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.



Sec. 122.62  Aircraft not otherwise required to clear.

    (a) Bureau of the Census. Under Bureau of the Census Regulations (15 
CFR part 30), aircraft not required to clear by Sec. 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 Regulations (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 Regulations 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]



Sec. 122.63  Scheduled airlines.

    The aircraft commander or agent shall request clearance or 
permission to depart for aircraft of scheduled airlines 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 clearance 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.

[[Page 674]]



Sec. 122.64  Other aircraft.

    Clearance or permission to depart shall be requested by the aircraft 
commander or agent for aircraft covered by this subpart other than those 
of scheduled 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.



Sec. 122.65  Failure to depart.

    Once an aircraft has been cleared or given permission to depart it 
must depart within 72 hours. The aircraft commander or agent shall 
report promptly to the port director if departure is delayed beyond or 
cancelled within 72 hours after the aircraft received clearance or 
permission to depart.



Sec. 122.66  Clearance or permission to depart denied.

    If advance electronic air cargo information is not received as 
provided in Sec. 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 Departing From the United 
                                 States



Sec. 122.71  Aircraft departing with no commercial export cargo.

    (a) Application. This section applies to aircraft departing for 
foreign territory with no export cargo, but not to those aircraft which 
are themselves being exported.
    (1) Such aircraft may clear by telephone in advance with the 
director of 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 following statement, signed by the aircraft 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_______________________________________________________________
(Aircraft Commander or Agent)

    (b) Timeliness. The request for telephone clearance must be received 
by the Customs officer in charge with sufficient time remaining before 
departure to ensure that Customs may undertake any necessary examination 
of the aircraft and cargo.
    (c) Documentation. If clearance is granted by telephone, the 
aircraft commander is not required to file the documents required by 
this subpart.



Sec. 122.72  Aircraft departing with commercial 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 Shipper's Export Declarations, shall be filed in accordance 
with this subpart for all cargo on the aircraft, and for the aircraft 
itself if exported as merchandise. See Sec. 122.79 for special 
requirements regarding shipments to U.S. possessions.



Sec. 122.73  General declaration and air cargo manifest.

    (a) General declaration--(1) Form. The general declaration shall be 
on Customs Form 7507 and shall show all information required.
    (2) Preparation and filing. The aircraft commander or agent shall 
file two copies of the general declaration with Customs 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 information required. If a general 
declaration is not presented, the following statement, signed by the 
aircraft commander or agent, shall appear on the form:

    I declare that all statements contained in this manifest, including 
the account of the

[[Page 675]]

cargo on board this aircraft, are complete, exact, and true to the best 
of my knowledge.

Signature_______________________________________________________________
(Aircraft Commander or Agent)

    (2) Preparation and filing. The aircraft commander or agent shall 
file two copies 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 Sec. 122.77(b). The air cargo manifest 
must be filed in:
    (i) Complete form, with all required Shipper's Export Declarations 
(see Sec. 122.75); or
    (ii) Incomplete form (pro forma) under Sec. 122.74.



Sec. 122.74  Incomplete (pro forma) manifest.

    (a) Application--(1) Shipments to foreign 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 location by the Customs at the departure 
airport before a complete manifest or all required Shipper's Export 
Declarations have been filed, if a proper bond is filed on Customs Form 
301, containing the bond conditions set forth in subpart G of part 113 
of this chapter.
    (2) Shipments to Puerto Rico. As provided in Sec. 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 required 
manifest or Shipper's Export Declarations are not filed with the 
appropriate Customs officer within one business day after arrival in 
Puerto Rico, a proper bond shall be filed at that time on Customs Form 
301, containing the bond conditions set forth in subpart G of part 113 
of this chapter.
    (b) Exceptions. An incomplete manifest will not be accepted:
    (1) During any time covered by a proclamation of the President that 
a state of war exists between foreign nations; or
    (2) If the aircraft is departing on a flight from the U.S. directly 
or indirectly to a foreign country listed in Sec. 4.75 of this chapter.

In both cases, a complete air cargo manifest and all required Shipper's 
Export 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 documents shall be filed within whichever of the following time 
periods is appropriate:
    (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 departure (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 required) and all required 
Shipper's Export 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 required) and all required 
Shipper's Export 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 Sec. 122.79.
    (d) Declaration required. A declaration shall be made on the 
incomplete manifest 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 Sec. 
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]



Sec. 122.75  Complete manifest.

    (a) Contents. A complete air cargo manifest shall list all cargo 
laden, and show for each item the air waybill

[[Page 676]]

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 appear 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 manifest, and the 
number of each declaration 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 required 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 manifest.

    (2) If an incomplete set of documents has been filed and is later 
completed, the following statement shall accompany 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 aircraft No. ------
--, Flight No. -------- cleared direct for --------, on -------- except 
cargo listed on any cargo manifest required to be filed for such flight.

Airline_________________________________________________________________
Authorized Agent________________________________________________________



Sec. 122.75a  Electronic manifest requirement for passengers onboard commercial aircraft departing from the United States.

    (a) Definitions. The definitions set forth in Sec. 122.49a(a) also 
apply for purposes of this section.
    (b) Electronic departure manifest--(1) General--(i) Basic 
requirement. Except as provided in paragraph (c) of this section, 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 Passenger Information System (APIS; 
referred to in this section as the Customs and Border Protection (CBP) 
system), the electronic data interchange system approved by CBP for such 
transmissions, an electronic passenger departure manifest covering all 
passengers checked in for the flight. A passenger manifest must be 
transmitted separately from a crew member manifest required under Sec. 
122.75b if transmission is in U.S. EDIFACT format. 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 carrier required to make passenger 
departure 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 transmission system approved by CBP. The 
carrier may make a single, complete batch manifest transmission 
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 
manifest transmissions, 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

[[Page 677]]

vetting of the data and send to the carrier by a non-interactive 
transmission method a ``not-cleared'' instruction for passengers 
identified as requiring additional security analysis and a ``selectee'' 
instruction for passengers requiring secondary screening (e.g., 
additional examination of the person and/or his baggage) under 
applicable Transportation Security Administration (TSA) requirements. 
The carrier must designate as a ``selectee'' any passenger so identified 
during initial security vetting, in accordance with applicable TSA 
requirements. The carrier must not issue a boarding pass to, or load the 
baggage of, any passenger subject to the ``not-cleared'' instruction and 
must contact the Transportation Security Administration (TSA) to seek 
resolution of the ``not-cleared'' instruction by providing, if 
necessary, additional 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 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 interactive 
electronic transmission system configured for batch transmission of data 
and receipt from the CBP system of appropriate messages. A carrier 
operating under this paragraph must make manifest 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 required data for the identified passengers and which 
together cover all passengers checked in for the flight. In the case of 
connecting passengers arriving at the connecting airport already in 
possession of boarding passes for a flight departing from the United 
States whose data have not been collected by the carrier, the carrier 
must transmit 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 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 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 passenger 
so identified during initial security vetting, 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), 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'' 
instruction 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, additional 
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 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 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.
    (C) Interactive individual passenger information transmission 
option. A carrier, upon obtaining CBP certification, in accordance with 
paragraph (b)(1)(ii)(E)

[[Page 678]]

of this section, may make manifest transmissions by means of an 
interactive electronic transmission system configured for transmitting 
individual passenger data for each passenger and for receiving from the 
CBP system appropriate 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 possession of boarding passes for a flight 
departing from the United States whose data have not been collected by 
the carrier, as these connecting 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'' instruction for passengers identified during initial security 
vetting as requiring additional security analysis, and a ``selectee'' 
instruction for passengers requiring 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 passenger so identified during initial security 
vetting, 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 returns a ``cleared'' 
or ``selectee'' response for that passenger. Where a ``selectee'' 
instruction 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, additional 
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 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 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 methods. If certified to do so, a 
carrier may make transmissions under both paragraphs (b)(1)(ii)(B) and 
(C) of this section for a particular flight or for different flights.
    (E) Certification. Before making any required manifest transmissions 
under paragraph (b)(1)(ii)(B) or (C) of this section, a carrier must 
subject its electronic transmission system to CBP testing, and CBP must 
certify that the carrier's system is then presently capable of 
interactively communicating with the CBP system for effective 
transmission of manifest data and receipt of appropriate messages under 
those paragraphs.
    (2) Place and time for submission. The appropriate official 
specified in paragraph (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 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) and (B) 
of this section, no later than 30 minutes prior to the securing of the 
aircraft;
    (ii) For manifest information transmitted 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 electronic passenger departure 
manifest required under paragraph (b)(1) of this

[[Page 679]]

section must contain the following information for all passengers, 
except that the information specified in paragraphs (b)(3)(iv), (ix), 
and (xi) 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 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 Association (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 passenger departure manifest specified 
in paragraph (b)(1) of this section is not required for active duty 
military personnel traveling as passengers on board a departing 
Department of Defense commercial chartered aircraft.
    (d) Carrier responsibility for comparing information collected with 
travel document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing the travel 
document presented by the passenger 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 is the person to whom the travel 
document was issued.
    (e) Sharing of manifest information. Information 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]



Sec. 122.75b  Electronic manifest requirement for crew members and non-crew members onboard commercial aircraft departing from the United States.

    (a) Definitions. The definitions set forth in Sec. 122.49a(a) also 
apply for purposes of this section, except that the definitions of 
``all-cargo flight,'' ``carrier,'' ``crew member,'' and ``non-crew 
member'' applicable to this section are found in Sec. 122.49b(a).
    (b) Electronic departure manifest--(1) General requirement. Except 
as provided in paragraph (c) of this section, an appropriate official of 
each commercial aircraft departing from the United States to any port or 
place outside the United States must transmit to Customs and Border 
Protection (CBP) an electronic crew member departure manifest and, for 
all-cargo flights only, an electronic non-crew member departure manifest 
covering any crew members 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 interchange system 
approved by CBP and must set forth the information specified in 
paragraph (b)(3) of this section. Where both a crew member departure 
manifest and a non-crew member departure manifest are required for an 
all-cargo flight, they must be combined in one departure manifest 
covering both crew members and non-crew members. Where a passenger 
departure manifest under Sec. 122.75a and a crew member departure 
manifest under this section are required, they must be transmitted 
separately if the transmission is in US EDIFACT format.
    (2) Place and time for submission; certification; change to 
manifest. (i) Place and time for submission. The appropriate official 
specified in paragraph (b)(1) of this section must transmit the 
electronic departure manifest required under paragraph (b)(1) of this 
section to the CBP Data Center, CBP Headquarters, no later than 60 
minutes prior

[[Page 680]]

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 appropriate 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 
submitted to CBP in accordance with Sec. 122.49c. If a crew member or 
non-crew member on the manifest is not also included on the appropriate 
master list, the flight may be denied clearance to depart.
    (iii) Changes to manifest. The appropriate official is obligated to 
make necessary 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 information, to the manifest 
or amending previously submitted information. If changes are submitted 
less than 60 minutes before scheduled flight departure, the air carrier 
must receive approval from TSA before allowing the flight to depart or 
the flight may be denied clearance to depart.
    (3) Information required. The electronic crew member and non-crew 
member departure manifests required under paragraph (b)(1) of this 
section must contain the following information 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);
    (ii) Date of birth;
    (iii) Place of birth (city, state--if applicable, 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 Association (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 departure 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 Sec. 122.75a applies to 
these inspectors, as they are considered passengers on departing 
flights;
    (2) For crew members traveling onboard departing aircraft chartered 
by the U.S. Department of Defense, the provisions of this section apply 
regarding electronic transmission of the manifest, except that:
    (i) The manifest certification provision of paragraph (b)(2)(ii) of 
this section is inapplicable; and
    (ii) The TSA manifest change approval 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 Sec. 122.75a applies to these 
persons, as, in this instance, they are considered passengers on 
departing flights.
    (d) Carrier responsibility for comparing information collected with 
travel document. The carrier collecting the information described in 
paragraph (b)(3) of this section is responsible for comparing the travel 
document presented

[[Page 681]]

by the crew member or non-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, and the crew member or non-crew member is the 
person to whom the travel document was issued.
    (e) Sharing of manifest information. Information contained in the 
crew member and non-crew member manifests 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.
    (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 Sec. 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 alternative procedures authorized by TSA for 
compliance with an aviation security program, emergency amendment, 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 
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]



Sec. 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 port 
director of the departure airport any Shipper's Export Declarations 
required 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 commander or agent shall file 
any Shipper'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 certificate issued by the 
Veterinary Service, Animal and Plant Inspection Service, 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]



Sec. 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 copies of the air cargo manifest shall be filed. One copy 
shall be used as a clearance 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 subsequent U.S. ports.



Sec. 122.78  Entry or withdrawal for exportation 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 following 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

[[Page 682]]

where the merchandise is laden for exportation, shall also appear on the 
air cargo manifest.



Sec. 122.79  Shipments to U.S. possessions.

    (a) Other than Puerto Rico. An air cargo manifest shall be filed for 
aircraft 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. possession.
    (b) Puerto Rico. When an aircraft carries merchandise on a direct 
flight from the U.S. to Puerto Rico, any required 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]



Sec. 122.80  Verification of statement.

    Customs officers may verify any of the statements required under 
this subpart by examining the shipping records of the airline involved.



     Subpart I_Procedures for Residue Cargo and Stopover Passengers



Sec. 122.81  Application.

    (a) Aircraft arriving with cargo. Aircraft arriving in the U.S. from 
a foreign area with cargo shown on the manifest to be traveling to other 
airports in the U.S. or to foreign areas may proceed under the 
provisions of this subpart.
    (b) Aircraft arriving with no cargo. Aircraft arriving in the U.S. 
from a foreign area with no cargo on board, and requesting immediate 
examination and release, may proceed if a bond on Customs Form 301, 
containing the bond conditions set forth in subpart G of part 113 of 
this chapter, has been filed and covers the aircraft.



Sec. 122.82  Bond requirements.

    A bond on Customs Form 301, containing 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 director 
of the entry airport.



Sec. 122.83  Forms required.

    (a) Traveling general declaration and manifest. When applying for 
examination and release from an airport or place of entry in the U.S., 
the aircraft commander or agent shall file a traveling 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 
includes air waybills that were part of the manifest.
    (b) Attachments to traveling general declaration and manifest--(1) 
Crew purchase and stores list. The crew purchase and stores list, if 
required when the aircraft enters under Sec. Sec. 122.46 and 122.47, 
shall be attached to the traveling general declaration and manifest.
    (2) Crew purchases not listed on a crew purchase list. A crew 
member's declaration 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 Sec. 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 
articles listed on the declaration receive clearance.
    (c) Abstract general declaration and manifest. The abstract general 
declaration 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 domestic or foreign airport.

An abstract general declaration and manifest need not be filed at the 
last domestic port of discharge.

[[Page 683]]

    (d) Permit to proceed. A permit to proceed from one domestic airport 
to another shall be filed by the aircraft commander or agent with the 
Customs officer 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____________________________________________________
Date____________________________________________________________________
    Permission is hereby given aircraft ---------- to proceed to ------
----
(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, passengers, or crew members and 
their purchases, 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 appear to have been landed.
    Number of crew members not cleared by Customs --------.
    Number of passengers not cleared by Customs --------.
    Number of pages of the traveling
    manifest --------.
________________________________________________________________________
(Customs Officer and Title)

          Declaration on Entry of Aircraft at Following Airport

Airport of Arrival______________________________________________________
Date____________________________________________________________________
    I, ----------, commander or authorized agent of the aircraft 
identified in this document, declare and guarantee that there were not, 
when such aircraft departed from the airport of --------, nor have been 
since, nor now are, any more or other goods, wares, or merchandise on 
board than was stated in the attached manifests.
________________________________________________________________________
(Signature and Title)


The permit to proceed and declaration must be stamped, mimeographed or 
printed on:
    (1) The abstract general declaration;
    (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 carrying residue cargo the 
transit air cargo manifest procedures shall be followed. 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 documents required by this section 
are in order, the permit to proceed shall be dated and signed by the 
Customs officer 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 documents, for filing at the next international 
airport.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988; T.D. 00-22, 65 FR 16518, Mar. 
29, 2000]



Sec. 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 Customs. 
They do not apply to aircraft arriving at the last domestic port of 
discharge.
    (b) Entry. When an aircraft arrives at the next airport, the 
aircraft commander 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 before filing for entry.
    (c) Crew declarations. The declarations and entries, Customs Form 
5129, of any crewmembers who leave the aircraft with their purchases at 
the intermediate airport shall be detached from the traveling general 
manifest. The declaration and entries are to be detached 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 crewmembers and their 
purchases are not yet cleared by Customs or another interested Federal 
agency, the procedure is the same as at the first arrival airport. All 
documents required by this

[[Page 684]]

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 airport.



Sec. 122.85  Final airport.

    When an aircraft enters at the last domestic airport of discharge, 
the traveling general declaration and manifest shall be filed with 
Customs and kept at the airport. No abstract general declaration and 
manifest is required.



Sec. 122.86  Substitution of aircraft.

    (a) Application. The residue cargo procedure applies when an airline 
must substitute aircraft to reach a destination due to weather 
conditions or operational factors which prevent an aircraft on arrival 
of the flight at the first port from continuing inbound to interior 
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 documents.
    (d) Transporting cargo--(1) Forwarding. The carrier may forward all 
cargo which arrived on one aircraft by transferring it to another 
aircraft of the same airline to complete the inbound 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 substitute aircraft of the 
airline. The substitute aircraft shall finish the inbound transport of 
the residue cargo.



Sec. 122.87  Other requirements.

    Section 4.85 of this chapter, relating to vessels with residue cargo 
for domestic ports, applies to aircraft residue cargo, except as stated 
in this subpart.



Sec. 122.88  Aircraft carrying domestic (stopover) passengers.

    Airlines that commingle domestic (stopover) passengers (that is, 
passengers who have already cleared Customs at their port of arrival and 
are continuing on another aircraft to a second U.S. destination) with 
international passengers who are continuing on the flight to their port 
of arrival and have not yet cleared Customs, must comply with certain 
requirements before being issued a permit to proceed. The carriers 
requirements are as follows:
    (a) The domestic (stopover) passengers must be transported on U.S.-
registered aircraft, or foreign-registered aircraft of the same foreign 
airline that brought them into the U.S.
    (b) A $2.00 charge must be paid for each revenue producing domestic 
(stopover) passenger reinspected in the U.S. (see Sec. 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 destination 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 reinspection by Customs. 
This written notification shall contain the following language: ``Notice 
to all boarding passengers: 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 Customs at your final U.S. port of 
entry.''
    (e) Domestic (stopover) passengers shall be provided a Customs 
declaration identified by the words ``Domestic Flight''. The domestic 
(stopover) passenger is only required to complete items 1-4 on that 
declaration.
    (f) The carrier shall present to Customs, 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 destination port (intermediate or final) where an 
inspection of passengers is to take place.

[[Page 685]]



       Subpart J_Transportation in Bond and Merchandise in Transit



Sec. 122.91  Application.

    This subpart applies to the transportation 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.



Sec. 122.92  Procedure at port of origin.

    (a) Forms required--(1) Customs Form 7512 or other document. Customs 
Form 7512 or other Customs approved documents, such as an air waybill 
(see paragraph (a)(3) of this section), shall be used for both entry and 
manifest. Three copies of the form or other document are required to be 
filed with Customs at the port of origin for merchandise for immediate 
transportation without appraisement. Four copies of the form or other 
document are required when merchandise for transportation and 
exportation is entered. (See also, Sec. Sec. 18.11 and 18.20(a) of this 
chapter). 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 required unless the port 
director deems additional copies necessary. Photocopies 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 legible and in the English language;
    (ii) Display a unique 11-digit number, the first three digits being 
the air carrier's identification code;
    (iii) Display the number of packages based on the smallest external 
packaging unit (e.g., 14 packages is acceptable, 1 pallet is 
unacceptable);
    (iv) Display the name of the final port of destination in the U.S. 
or the name of the ultimate country of destination of the cargo 
indicated by available air carrier shipping documents. The ultimate 
destination must be shown even though the air transportation may be 
scheduled to terminate in a country prior to the cargo's final 
destination;
    (v) Be modified to contain the following information which should 
appear in a block or attachment in the upper right-hand corner as in 
this example. The numbers 1-8 correspond to the descriptions that 
follow; the numbers do not have to appear on the AWB:

(1)_____________________________________________________________________
 Origin
(2)_____________________________________________________________________
 Entry Type
(3)_____________________________________________________________________

 Destination
(4)_____________________________________________________________________
Importing Carrier/Flight Number/Arrival Date

(5)_____________________________________________________________________
Bonded Carrier/Exporter
(6)_____________________________________________________________________
 Date
(7)_____________________________________________________________________
Signature of Carrier's Agent
(or Exporter)
(8)_____________________________________________________________________
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 Harmonized 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 
destination for entry or exportation.
    Item 4--Importing Carrier/Flight Number/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 importing conveyance in the U.S. The information 
must be supplied in all instances.
    Item 5--Bonded Carrier/Exporter-- The bonded carrier or exporter who 
will be

[[Page 686]]

liable for the proper movement, handling, and safekeeping of the 
merchandise once the in-bond movement is authorized by Customs. If this 
information is not supplied, the in-bond movement 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 acceptance, and prior to the actual arrival of the importing 
conveyance, this date should only be used for duty assessment purposes 
when the date in Item 8 is left blank. If a date is not present, the 
date of in-bond preparation will be deemed to be the date of arrival.
    Item 7--Signature of Carrier's Agent (or Exporter)-- This signature 
of the authorized 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 required except 
when the in-bond movement is under the bond of the importing carrier. If 
unsigned, the submission to Customs of an AWB requesting such a movement 
is evidence of the acceptance of liability if the AWB is approved by 
Customs.
    Item 8--Customs Officer/Date-- Signature of the Customs officer who 
authorizes the initiation of the in-bond movement and the date of such 
authorization. Customs will check to make sure merchandise is released 
only to a bonded 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 Sec. 141.69(b) of this chapter. Customs authorization 
procedures which use a perforation device are acceptable in lieu of the 
appropriate Customs signature. The port director will determine whether 
a signature will be required in this block prior to the time that the 
cargo is allowed to move.
    (b) Delivery of Customs form to carrier--(1) Merchandise entered for 
immediate transportation without appraisement. When merchandise is 
entered for immediate transportation without appraisement, two copies of 
Customs Form 7512 or other Customs approved document shall be delivered 
to the carrier.
    (2) Merchandise entered for transportation and exportation. When 
merchandise is entered for transportation and exportation, one copy of 
Customs For 7512 and any other Customs approved document shall be 
delivered to the carrier.
    (3) After delivery. After delivery, the forms or other document 
shall accompany the merchandise to the port of destination or 
exportation.
    (c) Receipt and supervision. The agent of a bonded air carrier shall 
give a receipt for any merchandise delivered to it for transportation in 
bond, and no supervision of the lading of the merchandise on the 
transporting aircraft shall be required.
    (d) Split shipment--(1) Departure within 24 hours. Merchandise 
covered by a single entry and manifest (Customs Form 7512 or other 
Customs approved document) may be sent to the destination 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 shipment will follow by separate aircraft. A single manifest shall 
be prepared for each part of the shipment sent by separate 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 required. 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 carrying 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

[[Page 687]]

described in Sec. 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]



Sec. 122.93  Procedure at destination or exportation airport.

    (a) Delivery to port director. When a bonded shipment arrives at the 
destination or exportation airport, the aircraft commander or agent 
shall deliver one copy of the entry and manifest (Customs Form 7512 or 
other Customs approved document) covering the shipment to the port 
director of that airport as notice of arrival. If the shipment was sent 
by separate aircraft more than 24 hours after the first part of the 
shipment was sent, then a manifest 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 appraisal, one copy of the 
manifest covering the merchandise shall be delivered by the carrier to 
the consignee. This copy is used to make entry, and may also be used as 
a carrier certificate as provided in Sec. 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]



Sec. 122.94  Certificate of lading for exportation.

    (a) Required filing. This section applies to merchandise entered for 
transportation and exportation by aircraft. A certificate of lading for 
exportation and a Customs Form 7512 or other Customs approved document 
(see Sec. 122.93 of this subpart) shall be filed when the merchandise 
reaches the final departure airport. The form shall be filled out and 
signed at the place where aircraft clearance for the merchandise is 
given.
    (b) Clearance not at place of final departure. If an aircraft is 
cleared at a place other than the place of final departure 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
    (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 
departure.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988; T.D. 00-22, 65 FR 15618, Mar. 
29, 2000]



Sec. 122.95  Other provisions.

    Part 18 of this chapter (Transportation in Bond and Merchandise in 
Transit) applies to the transportation of merchandise under this subpart 
unless stated otherwise.



                Subpart K_Accompanied Baggage in Transit



Sec. 122.101  Entry of accompanied baggage.

    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 carrier for the baggage to be 
processed under regular in-transit procedures.

When passengers choose not to have access to their baggage while in the 
U.S., the baggage shall be listed on the Air Cargo Manifest as provided 
in Sec. 122.48.



Sec. 122.102  Inspection of baggage in transit.

    (a) General baggage in transit may be inspected upon arrival, while 
in transit, and upon exportation. Carriers shall present in-transit 
baggage for inspection at any time found necessary by the port director.
    (b) In-transit baggage shall be presented to a Customs officer for 
inspection and clearance before the baggage can be delivered to a 
passenger while in the U.S.



         Subpart L_Transit Air Cargo Manifest (TACM) Procedures



Sec. 122.111  Application.

    Cargo (including manifested baggage) which arrives and is 
transported under

[[Page 688]]

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.)



Sec. 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 requirements of this subpart.
    (b) Port of arrival. The ``port of arrival'' is the port in the U.S. 
where imported cargo must be documented for further transportation under 
this subpart.
    (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 
movement to the port of destination.
    (d) Transit air cargo manifest. ``Transit air cargo manifest'' is 
used in this subpart as the shortened title for the transportation entry 
and transit air cargo manifest.



Sec. 122.113  Form for transit air cargo manifest procedures.

    A manifest on Customs Form 7509 is required for transit air cargo, 
as provided in Sec. 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 required for transit 
air cargo movement.



Sec. 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 aircraft 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
    (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 destination;
    (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 
transit air cargo procedures; and
    (4) The final port of destination in the U.S., or the foreign 
country of destination, for each shipment. The foreign country 
destination shown on the manifest must be the final destination, as 
shown by airline shipping documents, even though airline transport may 
be scheduled to end before the shipment arrives at the final 
destination.
    (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 workable as a transit air cargo manifest, the director of 
the port of arrival may allow the corrections.



Sec. 122.115  Labeling of cargo.

    A warning label, as required by Sec. 18.4(e) of this chapter, shall 
be attached to all transit air cargo not directly exported from the port 
of arrival before the cargo leaves the port of arrival.



Sec. 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 copies of the transit air cargo manifest.

[[Page 689]]

All copies of the manifest shall be correctly numbered before cargo will 
be released from the port of arrival as transit air cargo.



Sec. 122.117  Requirements for transit air cargo transport.

    (a) Transportation--(1) Port to port. Transit air cargo may be 
carried to another port only when a receipt is given, as provided in 
paragraph (b) of this section. The receipt may be given only to an 
airline which:
    (i) Is a common carrier for the transportation 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 subpart G of part 
113 of this chapter, as provided in Sec. 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 Sec. 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 delivery to Customs at the port 
of destination or exportation shown above, or for direct exportation.

________________________________________________________________________
Name of carrier (or exporter)

________________________________________________________________________
Attorney or agent of carrier (or exporter)

________________________________________________________________________
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 paragraph (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 Customs.
    (3) Carting. When carting is used to deliver transit air cargo to 
receiving airlines, the importing airline is responsible for the cargo 
under its own bond until a receipt is filed by the receiving 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 registered 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 authorized domestic carrier for in-
bond transportation 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 carrier unless the use of more than one aircraft or 
carrier would be allowed:
    (1) By Sec. 122.92(d) under a single combined entry and manifest;
    (2) By Sec. 122.118(d); or
    (3) By Sec. 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]



Sec. 122.118  Exportation from port of arrival.

    (a) Application. Transit air cargo may be transferred for 
exportation from any port of arrival under this section. The port 
director may require any supervision necessary to enforce the 
regulations of other Federal agencies.
    (b) Time. Transit air cargo shall be exported from the port of 
arrival within 10 days from the date the exporting airline receives the 
cargo. After the 10-day period, the individual cargo shipments must be 
made the subject of individual entries, as appropriate.

[[Page 690]]

    (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 airline has been chosen. The exporting airline need not 
give receipt on the review copy for the cargo to be transferred, 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 airline when clearance documents are presented to Customs.
    (3) Clearance copy. The clearance copy shall be filed with the 
exporting aircraft's clearance documents.

The exportation and clearance copies shall show the exporting airline's 
receipt 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 exported on different aircraft of the exporting airline. If 
this occurs, two additional copies of the transit air cargo manifest 
shall be filed for each shipment or group of shipments transported in 
other aircraft. Each copy of the transit air cargo manifest shall be 
clearly marked to show which shipment 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 airline, separate export entries on Customs Form 7512, as 
required by Sec. 18.25 of this chapter, shall be filed.
    (f) Post entered air cargo. Air cargo not listed on the manifest 
(i.e., overages) which has been post entered under Sec. 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 requirements of Sec. 122.44(b) shall be 
followed in using this procedure.
    (g) Review. The review copy of the transit air cargo manifest sheets 
must be reviewed by Customs as required for the carrier manifest copy in 
Sec. 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 required 
license must be placed under constructive Customs custody in a special 
area of the airline's terminal until the license is obtained.



Sec. 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 arrival to another 
port in the U.S. under this section. The director of the port of arrival 
may require Customs supervision 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 receipt for the cargo 
at the port of arrival.
    (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 giving a receipt for moving the cargo shipments to their 
destination. The permit copy is used and kept by Customs at the port of 
arrival.
    (d) Failure to deliver on time--(1) Procedure. If transit air cargo 
does not arrive at the destination port on time, the director of the 
port of arrival shall take action as provided in Sec. Sec. 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 information:
    (i) On the permit copy kept at the port of arrival; and
    (ii) Obtained from the carriers as necessary.

The director of the port of arrival shall notify the airline that 
presented a receipt 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 director 
of the port of arrival. The answer

[[Page 691]]

shall provide any information or documents related to the value and 
description of the cargo involved that the receipting airline and the 
importing airline can produce.
    (e) Surface movement to port of destination. 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 surface movement to 
the port of destination. 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 movement;
    (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 Sec. 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]



Sec. 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 another port in the U.S. 
and later exportation under this section.
    (b) Supervision--(1) From port of arrival to exportation port. The 
director of the port of arrival shall order any supervision 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 requirements, 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 Customs 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.
    (1) Port of arrival. Two copies of the transit air cargo manifest, 
marked separately as ``permit'' and ``control'' copies, 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 arrival 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 submitted when the cargo 
arrives at the exportation port.
    (ii) Exportation and clearance copies. Two copies, marked separately 
as ``exportation'' and ``clearance'' copies, shall be filed with Customs 
at the exportation port.
    (e) Delivery to exporting airline. When the transit air cargo 
arrives at the exportation port, it may be delivered directly to the 
exporting carrier, together with the exportation and clearance 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 exporting 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 Customs officer shall review the 
carrier manifest copy of the transit air cargo manifest to make sure 
that the export licensing requirements of other Federal 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 without a license or other approval. The

[[Page 692]]

shipment shall then be put under constructive 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 clearance 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 copies before the aircraft that carries the transit air cargo 
departs. The clearance copies shall be grouped together and not mixed in 
with other outward manifest sheets. The exportation copies 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 
shipment listed:
    (1) For transportation and exportation under subpart J of this part; 
or
    (2) For direct exportation under Sec. 18.25 of this chapter.
    (j) Cargo laden on more than one aircraft 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 airline, Sec. 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 Sec. 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



Sec. 122.131  Application.

    (a) Liquor and tobacco. Subpart M applies 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 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 carrying:
    (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, although the aircraft is not 
required to enter, clear or report arrival.



Sec. 122.132  Sealing of aircraft liquor kits.

    (a) Sealing required. Aircraft liquor kits shall be sealed on board 
the aircraft by crewmembers before the aircraft 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 transporting stopovers 
is not required if:
    (1) The liquor kits are kept on board the aircraft; and
    (2) The port director finds that sealing is not required for revenue 
protection.
    (c) Seals to be used. Aircraft liquor kits shall be sealed with 
serially numbered, Customs approved seals. The airline shall use seals 
supplied by an approved 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

[[Page 693]]

the contents, the action shall be recorded on the liquor kit stores 
list, and the liquor kit must be resealed with an approved seal.



Sec. 122.133  Stores list required on arrival.

    (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 incoming 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 available 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 required 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 completed by crew members under Customs 
supervision.



Sec. 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 airline involved does not have an authorized in-bond liquor 
storeroom. When this occurs, the liquor kits, under any supervision 
found necessary by the port director, may be:
    (1) Kept on board the aircraft;
    (2) Removed and replaced upon the aircraft; or
    (3) Removed and replaced aboard another aircraft.
    (b) Sealing of kits. Aircraft liquor kits covered by this section 
shall remain sealed until departure. Customs officers may remove the 
seal to check the contents of the liquor kits, but shall reseal the kits 
as provided in Sec. 122.132(e).
    (c) Restocking. Additional amounts of duty-free and tax-free liquor 
and tobacco 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 supervision the port director finds necessary. The additional liquor 
and tobacco shall be shown on separate outward stores lists.



Sec. 122.135  When airline has in-bond liquor 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 removed 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 inventory record shall account for the receipt 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 employees authorized to break 
Customs seals on liquor kits in the in-bond liquor storeroom; and
    (2) Signature samples of the authorized employees.
    (d) Opening of aircraft liquor kits. Aircraft liquor kits received 
in an authorized storeroom shall be opened only by authorized airline 
employees, or by Customs officers.
    (e) Contents of liquor kits. The employees who break the seals on 
aircraft liquor kits shall check the contents at

[[Page 694]]

once. The employees shall immediately report to the port director any:
    (1) Evidence of seal tampering;
    (2) Difference between the seal numbers on the liquor kits and those 
recorded 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 incoming 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 Sec. 
122.132(a) before removal from the in-bond liquor storeroom. All seal 
numbers shall be listed on an outgoing stores list.



Sec. 122.136  Outgoing stores list.

    (a) Preparation. Two copies of a serially 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 aircraft required to clear) or with Customs before departing, as 
provided in Sec. 122.133(c).

In both cases, the third copy of the inward stores list shall be filed 
with the outgoing stores list. (See Sec. 122.133(c)).



Sec. 122.137  Certificate of use.

    Any liquor or tobacco withdrawn from the in-bond storeroom and shown 
on the outgoing stores list shall be recorded, when exported, on a 
certificate of use prepared by the airline.



          Subpart N_Flights to and From the U.S. Virgin Islands



Sec. 122.141  Definitions.

    Under subpart N, the following definitions apply:
    (a) United States. The term ``U.S.'' includes 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 Columbia and Puerto Rico.



Sec. 122.142  Flights between the U.S. Virgin 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 arriving in the 
U.S. from a foreign area.
    (b) Aircraft leaving the U.S. Virgin Islands. 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.



Sec. 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 
Islands 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 Bureau of the Census regulations (15 
CFR part 30) apply to aircraft carrying merchandise to the U.S. Virgin 
Islands from the U.S., permission to depart must be obtained from the 
port director. Permission to depart shall not be given unless:
    (1) A complete manifest and Shipper'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 Declarations are filed within 7 
business days after departure.

[[Page 695]]



Sec. 122.144  Flights from the U.S. Virgin Islands to the U.S.

    (a) Aircraft not inspected. This paragraph applies to aircraft 
departing from the U.S. Virgin Islands and arriving in the U.S., without 
having been inspected 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 
arriving in the U.S. are governed by the provisions of this part that 
apply to aircraft arriving in the U.S. from a foreign area.
    (b) Supervision. When aircraft are inspected by Customs in the U.S. 
Virgin Islands, the port director may order any supervision found 
necessary to protect the revenue and enforce the laws administered by 
Customs. This includes 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 Islands arrives in the U.S. from the U.S. Virgin Islands, the 
aircraft commander must be able to give evidence of the inspection to 
Customs on request. Evidence of the inspection shall be given in the 
following manner:
    (1) A certificate on Customs Form 7507 shall be presented for 
aircraft registered in the U.S.:
    (i) Of domestic origin; or
    (ii) Of foreign origin, if duty has been paid and the aircraft is 
proceeding carrying 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 
officers 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 presented to Customs. The 
certificate may be destroyed or disposed of after a reasonable time at 
the discretion of the aircraft commander or agent.
    (2) A permit to proceed on Customs Form 7507 shall be presented for 
aircraft registered in the U.S. which are:
    (i) Of foreign origin;
    (ii) Not duty paid; and
    (iii) Proceeding carrying neither passengers 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 
aircraft registered in a foreign country and proceeding carrying neither 
passengers nor cargo. The permit to proceed, 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 document, shall be filed as 
required under subpart I of this part for an aircraft carrying residue 
cargo and/or passengers. The permit to proceed shall be marked with the 
port and date of inspection, and it must be signed by the inspecting 
officer in the U.S. Virgin Islands.



                   Subpart O_Flights to and From Cuba



Sec. 122.151  Definitions.

    Under this subpart, the following definitions apply:
    (a) United States. The term ``U.S.'' includes 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.



Sec. 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]

[[Page 696]]



Sec. 122.153  Limitations on airport of entry or departure.

    The owner or person in command of any aircraft clearing the U.S. 
for, or entering the U.S. from, Cuba, whether the aircraft is departing 
on a temporary sojourn, or for export, must clear or obtain permission 
to depart from, or enter at, the Miami International Airport, Miami, 
Florida; the John F. Kennedy International Airport, Jamaica, New York; 
or the Los Angeles International Airport, Los Angeles, California, and 
comply with the requirements in this part unless otherwise authorized by 
the Assistant Commissioner, Office of Field Operations, Customs 
Headquarters.

[T.D. 99-71, 64 FR 53628, Oct. 4, 1999]



Sec. 122.154  Notice of arrival.

    (a) Application. All aircraft entering the U.S. from Cuba shall give 
advance notice of arrival.
    (b) Procedure for giving advance notice of arrival. The commander of 
an aircraft 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 Administration flight notification 
procedure (see International Flight Information Manual, Federal Aviation 
Administration); or
    (2) Directly to the Customs officer in charge at the Miami 
International Airport, Miami, Florida; the John F. Kennedy International 
Airport, Jamaica, New York; or the Los Angeles International Airport, 
Los Angeles, California, whichever is applicable.
    (c) Contents of notice. The advance notice 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.

[T.D. 88-12, 53 FR 9292, Mar. 22, 1988, as amended by T.D. 99-71, 64 FR 
53628, Oct. 4, 1999]



Sec. 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. 
Immigration and Naturalization Service pursuant to 8 CFR 231.1(b), to an 
officer of the U.S. Immigration and Naturalization Service or to a 
Customs officer acting as an Immigration officer;
    (b) The documents required by subpart E of this part.



Sec. 122.156  Release of passengers.

    No passengers arriving from Cuba by aircraft will be released by 
Customs, nor will the aircraft be cleared or permitted to depart before 
the passengers are released by an officer of the Immigration and 
Naturalization Service or by a Customs officer acting on behalf of that 
agency.



Sec. 122.157  Documents required for clearance.

    As a condition precedent to clearance, the aircraft commander shall 
present to Customs:
    (a) The documents required by Subpart 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 provided in 22 CFR part 123.



Sec. 122.158  Other entry and clearance requirements.

    All other provisions of this part relating to entry and clearance of 
aircraft are applicable to aircraft subject to this subpart.

Subpart P--Public Aircraft [Reserved]



                           Subpart Q_Penalties



Sec. 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 Sec. 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

[[Page 697]]

overages, and failure to manifest narcotics 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 Sec. 122.27(c) of this part in which cases 
the penalties set forth in section 436, Tariff Act of 1930, as amended 
(19 U.S.C. 1436) apply, and any aircraft used in connection with any 
such violation shall be subject to seizure and forfeiture, as provided 
for in the Customs laws. A penalty or forfeiture may be mitigated under 
part 171 of this chapter.

[T.D. 91-61, 56 FR 32086, July 15, 1991, as amended by T.D. 98-74, 63 FR 
51289, Sept. 25, 1998]



Sec. 122.162  Failure to notify and explain differences in air cargo manifest.

    (a) Application. Penalties shall be assessed if differences in an 
air cargo manifest (overages or shortages) are discovered and:
    (1) The required notice and explanation 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 preparation, assembly, or submission (electronically or 
otherwise) of the manifest.
    (c) Repeated differences. If repeated differences are found in 
manifests filed by the same person, it may be determined that the 
differences were a result of negligence and not clerical error or other 
mistake.
    (d) Knowledge. A penalty may be assessed for differences in a 
manifest that are unknown to the aircraft commander 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]



Sec. 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 Sec. 122.119, a liability shall be 
assessed, as set out in Sec. 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 director 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.



Sec. 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 delivery shall be assessed as provided in Sec. 
122.163.



Sec. 122.165  Air cabotage.

    (a) The air cabotage law (49 U.S.C. 41703) prohibits the 
transportation of persons, property, or mail for compensation 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. 
registration except those foreign-registered aircraft leased or 
chartered to a U.S. air carrier and operated under the authority of 
regulations issued by the Department of Transportation, as provided for 
in 14 CFR 121.153, and those aircraft used exclusively in the service of 
any government.

[[Page 698]]

    (b) Customs officers detecting possible violations shall report the 
matter to Headquarters, Attention: Entry Procedures and Carriers Branch. 
Liability should not be assessed under 49 U.S.C. Chapter 463 pending 
instructions from Headquarters since certain limited domestic 
transportation by foreign civil aircraft is permitted under regulations 
issued by the Department of Transportation.

[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]



Sec. 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 section 436, 
Tariff Act of 1930, as amended (19 U.S.C. 1436), and described in 
paragraph (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 
authorization; or
    (6) Discharge of passenger, or merchandise (to include baggage) 
without authorization.
    (b) Liability for criminal penalties. Upon conviction, any aircraft 
pilot violating any of the Customs requirements described in paragraph 
(a) of this section shall, in addition to civil penalties be subject to 
criminal penalties 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 equivalent, for a vessel, of sea stores) the 
importation of which into the U.S. is prohibited, 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 described--(1) Civil penalty. The 
pilot of any aircraft who fails to comply with the requirements of this 
section is liable for a civil penalty of $5,000 for the first violation, 
and $10,000 for each subsequent 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 violation of this section, the pilot of any aircraft who 
intentionally fails to comply with the requirements of this section is 
liable, upon conviction, for a fine of not more than $2,000 or 
imprisonment for 1 year, or both. If the aircraft is found to have, or 
to have had, on board any merchandise the importation of which is 
prohibited, such individual 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 merchandise, other than the 
equivalent of vessel sea stores, is imported or brought into the U.S. 
aboard an aircraft 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 forfeited, unless properly entered by the 
importer or consignee.



Sec. 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 person 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 violates 19 U.S.C. 1590 is, upon conviction, subject to 
the criminal penalties of a fine of not more than $10,000 or 
imprisonment for not more than 5 years, or both, if none of the 
merchandise involved is a controlled substance. More severe penalties 
are provided in 19

[[Page 699]]

U.S.C. 1590 if the smuggled merchandise 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 United States, shall be evidence that the 
transportation or possession of merchandise was unlawful and shall 
indicate that the purpose of the transfer was to make it possible for 
such merchandise, or any part of it, to be introduced 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 without lights during such times as 
lights are required to be displayed under applicable law.
    (2) The presence on an aircraft of an auxiliary fuel tank which is 
not installed in accordance with applicable law.
    (3) The failure to correctly identify the aircraft by registration 
number and country of registration, when requested to do so by a customs 
officer or other government authority.
    (4) The external display of false registration numbers or false 
country of registration.
    (5) The presence on board of unmanifested merchandise, the 
importation of which is prohibited or restricted.
    (6) The presence on board of controlled substances which are not 
manifested 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.



Sec. 122.171  Description of program.

    The Air Carrier Smuggling Prevention Program (ACSPP) is designed to 
enlist the cooperation of the air carriers, as defined in 19 U.S.C. 1584 
note, in Customs efforts to prevent the smuggling of controlled 
substances. If carriers develop and implement thorough and complete 
internal security procedures at ACSPP designated terminals and foreign 
departure and intermediate points, the opportunity for their conveyances 
being used for transportation 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 exempt from seizure and penalties 
should it satisfy the provisions of Sec. 122.175 of this part. The 
program will be operational for a period of 2 years from December 18, 
1989, pursuant to 19 U.S.C. 1584 note.



Sec. 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 eligible for participation in the ACSPP.



Sec. 122.173  Application procedures.

    (a) Application. An air carrier which wishes to participate in the 
ACSPP shall submit an application to the Assistant Commissioner, Office 
of Field Operations, in which it:
    (1) Identifies specific routes and designated departure points and 
ACSPP airports for which application is made;
    (2) Certifies that it has developed and will continue to maintain 
standard operating procedures (SOP) which are designed 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 determine whether the procedures contained therein meet the 
requirements of the ACSPP. In determining whether

[[Page 700]]

a SOP submitted by an applicant carrier 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 background checks are performed on all 
carrier employees, both those employed 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 baggage and cargo identification is 
employed at all terminals used by the carrier;
    (3) Assure the carrier employs a system to assure that no 
unmanifested cargo is placed on board the conveyance 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 measures are implemented at all foreign 
departure points on ACSPP participating routes which will assure that 
the carrier 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 
carrier's SOP meets all the criteria outlined in Sec. 122.173(b) of 
this part, the carrier will be notified that its application to the 
ACSPP has been accepted. Acceptance 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 elements 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]



Sec. 122.174  Operational procedures.

    (a) Participating carriers. Participating carriers are required to 
develop and adhere to procedures whereby they will:
    (1) Provide security personnel for every international arrival 
participating 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 passengers 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 participating in ACSPP to conduct 
the following procedures:
    (i) Perform a thorough internal and external search of the departing 
aircraft;
    (ii) Maintain total control of all passengers and cargo being loaded 
on the aircraft from either the passenger terminal 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 aircraft at an ACSPP 
designated airport.
    (b) U.S. Customs. U.S. Customs will:
    (1) Retain all current options available regarding the search and 
inspection of any and all passengers, cargo and conveyances; and
    (2) Provide training to carrier personnel to assist the development 
of proper operational procedures.

[[Page 701]]



Sec. 122.175  Exemption from penalties.

    Should a controlled substance be introduced into the United States 
or discovered aboard an aircraft owned or operated by a participating 
carrier, or in cargo carried by a participating carrier, on a route 
identified by the carrier as one participating in the ACSPP and which 
has been approved by Customs, the participating air carrier shall be 
considered to have met the test of highest degree of care and diligence 
required under law, and shall not be subject to the penalty or seizure 
provisions of the Tariff Act of 1930, as amended, if the carrier 
establishes at an oral presentation before the port director 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.



Sec. 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 officer or any Customs order, rule, or regulation relative to 
its cooperation within the program;
    (3) An officer of the carrier or corporation which has been accepted 
into the program is convicted of a felony or misdemeanor involving 
theft, smuggling, or other theft-connected crime which was committed in 
his or her official capacity as an officer of the carrier, or is 
convicted of any Customs-related crime;
    (4) The carrier fails to retain merchandise which has been 
designated for examination;
    (5) The carrier does not provide secure 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 program; and
    (7) The carrier has been notified in writing that it has been found 
in noncompliance with a provision of the program 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 
Operations, shall suspend or remove participants from the ACSPP by 
serving notice 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 suspension or removal and shall provide the carrier with 
notice that it may file a written notice of appeal from suspension or 
revocation within 10 days following receipt of the notice of revocation 
or suspension. The notice of appeal shall be filed in duplicate to the 
office of the Assistant Commissioner, Field Operations, and shall set 
forth response of the carrier to the statement of the Assistant 
Commissioner.
    (c) Notice of decision. The Assistant Commissioner, Office of Field 
Operations, shall notify the participating carrier in writing of the 
decision concerning continued participation in the program.
    (d) Use of uniform criteria. When making any determination regarding 
a carrier's participation or continuation in the ACSPP, the Assistant 
Commissioner, Office of Field Operations, shall employ a uniform 
standard of performance 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.



Sec. 122.181  Definition of Customs security 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 effects arriving from, or departing to,

[[Page 702]]

foreign countries, as well as the aircraft deplaning and ramp area and 
other restricted areas designated by the port director. These areas will 
be posted as restricted to the extent possible and are established for 
the purpose of prohibiting unauthorized entries or contact with persons 
or objects.

[T.D. 90-82, 55 FR 42557, Oct. 22, 1990, as amended by T.D. 02-40, 67 FR 
48984, July 29, 2002]



Sec. 122.182  Security provisions.

    (a) Customs access seal required. With the exception of all Federal 
and uniformed State and local law enforcement personnel and aircraft 
passengers and crew, all persons located at, operating out of, or 
employed by any airport accommodating international air commerce or its 
tenants or contractors, including air carriers, who have unescorted 
access to the Customs security area, must openly display or produce upon 
demand an approved access seal issued by Customs. The approved 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 accordance with 
the description of duties submitted by the employer under paragraph 
(c)(1) of this section. The Customs access seal remains the property of 
Customs, and any bearer must immediately surrender it as provided in 
paragraph (g) of this section or upon demand by any authorized Customs 
officer for any cause referred to in Sec. 122.187(a). Unless 
surrendered pursuant to paragraph (g) of this section or Sec. 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. Retention of an approved 
Customs access seal beyond the applicable 2-year period will be subject 
to the reapplication provisions of paragraph (c)(2) of this section.
    (b) Employers responsibility. Employers operating in Customs airport 
security areas shall advise all employees of the provisions of the 
Customs regulations relative to those areas, require employees to 
familiarize themselves with those provisions and insure employee 
compliance. The employer shall also advise the port director of any 
changes of employment pursuant to Sec. 122.182(g).
    (c) Application requirements--(1) Initial application. An 
application for an approved Customs access seal, as required by this 
section, must be filed by the applicant with the port director on 
Customs Form 3078 and must be supported by a written request and 
justification for issuance prepared by the applicant's employer that 
describes the duties 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 Sec. 
113.62, Sec. 113.63, or Sec. 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 conditions set forth in Sec. 113.62, Sec. 113.63, or Sec. 113.64 
relate, the application must be supported by an Airport Customs Security 
Area Bond, as set forth in appendix 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 addition, in 
connection with an application 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 following, 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

[[Page 703]]

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 periods beyond the 2-year 
period referred to in paragraph (a) of this section, that person must 
submit a new application 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 provided in paragraph (c)(1)(i) of this section. The new 
application will be subject 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 submitted 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 background check must 
include, at a minimum, references and employment history, to the extent 
necessary to verify representations made by the applicant relating to 
employment in the preceding 5 years. The authorized official of the 
employer must attest that, to the best of his knowledge, the applicant 
meets the conditions necessary to perform functions associated with 
employment 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 employment 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 require access to the Customs security area may request 
from the port director the issuance of an approved Customs access seal. 
They need not make application nor submit to background checks for 
security area access. An Airport Customs Security Area Bond is not 
required.
    (f) Replacement access seal. A new Custom access seal may be 
obtained from the port director in the following circumstances, without 
the completion of an additional application, except as determined by the 
port director in his discretion:
    (1) A change in employee name or address;
    (2) A change in the name or ownership of the employing company;
    (3) A change in employer or airport authority identification card 
format; or
    (4) Loss or theft of the Customs access seal (see Sec. 122.185 of 
this part).
    (g) Surrender of access seal. Where the employee no longer requires 
access to the Customs security area for an extended period of time at 
the airport of issuance due to a change in duties, termination of 
employment, or other reason, or where the 2-year period referred to in 
paragraph (a) of this section expires and a new application under 
paragraph (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 Customs access seal to Customs. The notification 
shall include information regarding 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]



Sec. 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 Customs security area will, in 
the judgment 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 security, or aviation safety. Specific

[[Page 704]]

grounds for denial of access to the Customs security area include, but 
are not limited to, the following:
    (1) Any cause which would justify a demand for surrender of a 
Customs access seal or the revocation or suspension of access under 
Sec. 122.182(g) or Sec. 122.187;
    (2) Evidence of a pending or past investigation establishing 
probable cause to believe that the applicant has engaged in any conduct 
which relates to, or which could lead to a conviction for, 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 paragraph (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 disqualifying offense if the 
applicant has been convicted of, or found not guilty of by reason of 
insanity, or has committed 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 appropriate for the offense in 
question, prior to the date of the application submitted under Sec. 
122.182 or at any time while in possession of an approved Customs 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 aircraft 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 special 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 established security 
requirements (49 U.S.C. 46314);
    (xii) Destruction of an aircraft or aircraft 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 explosive or weapon;
    (xxi) Extortion;
    (xxii) Armed or felony unarmed robbery;
    (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 misrepresentation;
    (G) Possession or distribution of stolen 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 terrorist 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. immigration law;
    (xxxv) Any violation of a Customs law or any other law administered 
or

[[Page 705]]

enforced by Customs involving narcotics or controlled substances, 
commercial fraud, currency or financial transactions, smuggling, failure 
to report, or failure to declare;
    (xxxvi) Airport security violations; or
    (xxxvii) Conspiracy or attempt to commit any of the offenses or acts 
referred to in paragraphs (a)(4)(i) through (a)(4)(xxxv) of this 
section;
    (5) Denial or suspension of the applicant's unescorted access 
authority to a Security Identification Display Area (SIDA) pursuant to 
regulations promulgated by the U.S. Federal Aviation Administration or 
other appropriate government agency; or
    (6) Inability of the applicant's employer or Customs to complete a 
meaningful background check or investigation of the applicant.
    (b) Notification of denial. The port director shall give written 
notification to any person whose application for access to the Customs 
security area has been denied, fully stating the reasons for denial and 
setting forth specific appeal 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 writing within 30 calendar 
days of receipt of the notice of appeal and, if the application is 
denied on appeal, the decision will advise the applicant of the 
procedures for filing a further appeal pursuant 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 receipt 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 decision. The final decision will 
be transmitted 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]



Sec. 122.184  Change of identification; change in circumstances of employee; additional employer responsibilities.

    (a) Change of identification. The Customs 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 employee. If, after issuance of a 
Customs access seal to an employee, any circumstance arises (for 
example, an arrest or conviction for a disqualifying offense) that 
constitutes a ground for denial of access to the Customs security area 
under Sec. 122.183(a) or for revocation or suspension of access to the 
Customs security area and surrender of the Customs access seal under 
Sec. 122.187(a), the employee must within 24 hours advise the port 
director in writing of that change in circumstance. In the case of an 
arrest or prosecution for a disqualifying offense listed in Sec. 
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 
prosecution. In addition, if an airport operator or an aircraft operator 
suspends an employee's unescorted access authority to a Security 
Identification Display Area pursuant to regulations promulgated by the 
U.S. Federal Aviation Administration or other appropriate government 
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.

[[Page 706]]

    (c) Additional employer responsibilities. If an employer becomes 
aware of any change in the circumstances of its employee as described in 
paragraph (b) of this section, the employer must immediately 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 this 
section. In addition, each employer must submit to the port director 
during the first month of each calendar quarter a report setting forth a 
current list of all its employees who have an approved Customs access 
seal. The quarterly report must list separately all additions to, and 
deletions from, the previous quarterly report. Moreover, each employer 
must take appropriate steps to ensure that an employee uses an approved 
Customs access seal only in connection with activities relating to his 
employment.

[T.D. 02-40, 67 FR 48986, July 29, 2002; 67 FR 51928, Aug. 9, 2002]



Sec. 122.185  Report of loss or theft of Customs access seal.

    The loss or theft of an approved Customs access seal must be 
promptly reported in writing by the employee to the port director. The 
Customs access seal may be replaced, as provided in Sec. 122.182(f).

[T.D. 02-40, 67 FR 48986, July 29, 2002]



Sec. 122.186  Presentation of Customs access 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 Customs 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]



Sec. 122.187  Revocation or suspension of access.

    (a) Grounds for revocation or suspension of access--(1) General. The 
port director:
    (i) Must immediately revoke or suspend an employee's access to the 
Customs security area and demand the immediate 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 surrender of the employee's 
approved Customs access seal whenever, in the judgment of the port 
director, it appears for any ground not specified in paragraph (a)(2) of 
this section that continued access might pose an unacceptable risk to 
public health, interest or safety, national security, aviation safety, 
the revenue, or the security of the area. In this case the port director 
will provide the employee with an opportunity to respond to the notice 
of proposed action.
    (2) Specific grounds. Access to the Customs security area will be 
revoked or suspended, and surrender of an approved Customs access seal 
will be demanded, in any of the following circumstances:
    (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 material fact;
    (ii) The employee is or has been convicted of, or found not guilty 
of by reason of insanity, or there is probable cause to believe that the 
employee has committed any act or omission involving, an offense listed 
in Sec. 122.183(a)(4);
    (iii) The employee has been arrested for, or charged with, an 
offense listed in Sec. 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 Customs security area 
under Sec. 122.183;
    (v) The employee permits the approved Customs access seal to be used 
by any other person or refuses to openly display or produce it upon the 
proper demand of a Customs officer;
    (vi) The employee uses the approved Customs access seal in 
connection with a matter not related to his employment or not 
constituting a duty described in the written justification required by 
Sec. 122.182(c)(1);
    (vii) The employee refuses or neglects to obey any proper order of a 
Customs officer, or any Customs order, rule, or regulation;

[[Page 707]]

    (viii) For all employees of the bond holder, if the bond required by 
Sec. 122.182(c) is determined 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;
    (ix) The employee no longer requires access to the Customs security 
area for an extended period of time at the airport 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 Sec. 122.184(b) or (c) or the 
employee fails to report the loss or theft of a Customs access seal as 
required under Sec. 122.185.
    (b) Notice of revocation or suspension. The port director will 
revoke or suspend access to the Customs security area and demand 
surrender of the Customs 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 notice will indicate whether the revocation 
or suspension is effective immediately or is proposed.
    (1) Immediate revocation or suspension. When the revocation or 
suspension of access and the surrender of the Customs access seal are 
effective immediately, the port director will issue a final notice of 
revocation or suspension. The port director or his designee may deny 
physical access to the Customs security area and may demand surrender of 
an approved Customs access 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 
involving public health, safety, or security 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 emergency action. A 
final notice of revocation or suspension will state the specific grounds 
for the immediate revocation 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 
accordance with the provisions of Sec. 122.182(c), on or after the 
180th calendar day following the date of the final notice of revocation 
or suspension; or
    (ii) File a written administrative appeal of the final notice of 
revocation or suspension with the port director in accordance with 
paragraph (c) of this section within 30 calendar days of the date of the 
final notice of revocation or suspension. 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 demonstrate that there is a genuine issue 
of fact that is material to the revocation or suspension action.
    (2) Proposed revocation or suspension--(i) Issuance of notice. When 
the revocation 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 suspension. The notice of proposed revocation or 
suspension will state the specific grounds for the proposed action, 
inform the employee that he may continue to have access to the Customs 
security area and may retain the Customs access seal pending issuance of 
a final notice under paragraph (b)(2)(ii) of this section, and advise 
the employee 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 nonresponse. If the employee does 
not respond to the notice of proposed action, the port director will 
issue a final notice of revocation or suspension within 30 calendar days 
of the date the notice of proposed action was received by the

[[Page 708]]

employee. The final notice of revocation or suspension will state the 
specific grounds for the revocation or suspension, direct the employee 
to immediately 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.
    (B) Based on response. If the employee files a timely response, the 
port director will issue a final determination regarding 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 received by the 
port director. If this final determination is adverse to the employee, 
then the final notice of revocation or suspension will state the 
specific grounds for the revocation or suspension, direct the employee 
to immediately 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 appeal. The employee may file a 
written appeal of the final notice of revocation or suspension with the 
port director within 10 calendar days following receipt of the final 
notice of revocation or suspension. The appeal must be filed in 
duplicate and must set forth the response of the employee to the 
statement of the port director. The port director 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 requests 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 director 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 
accordance 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 requested or if the port director 
finds that a requested hearing is not required, following receipt of the 
appeal the port director will forward the administrative record to the 
director of field operations at the Customs Management Center having 
jurisdiction over the office of the port director for a decision on the 
appeal. The transmittal of the port director must include 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 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.
    (d) Hearing. A hearing will be conducted in connection with an 
appeal of a final notice of revocation or suspension of access to the 
Customs security area only if the affected employee in writing requests 
a hearing and demonstrates that there is a genuine issue of fact that is 
material to the revocation or suspension action. If a hearing is 
required, it must be held before a hearing officer designated by the 
Commissioner, or his designee. The employee 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 substantiation 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

[[Page 709]]

proceedings or review of a written appeal, the hearing officer must 
promptly transmit all papers and the stenographic record to the director 
of field operations, together with the recommendation for final action. 
If neither the employee nor his attorney appears for a scheduled 
hearing, the hearing officer must record that fact, accept any 
appropriate testimony, and conclude the hearing. The hearing officer 
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 hearing to the director of 
field operations, either party may submit to the director of field 
operations additional written 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 officer and any additional written submissions and replies made 
under paragraph (e) of this section, the director of field operations 
will render a written decision. The decision will be transmitted 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]



Sec. 122.188  Issuance of temporary Customs access seal.

    (a) Conditions for issuance. When an approved Customs access seal is 
required under Sec. 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 Customs access seal for his employee. The employer 
must satisfy the port director that a hardship would result if the 
request is not granted. Surety on the bond, as required by Sec. 
122.182(c), may be waived in the discretion of the port director 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 access 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 access 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 employees and official 
visitors requiring access 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 Customs 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 regulation, 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 Customs 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]



Sec. 122.189  Bond liability.

    Any failure on the part of a principal to comply with the conditions 
of the bond required under Sec. 122.182(c), including a failure of an 
employer to comply with any requirement applicable to the employer under 
this subpart, will constitute a breach of the bond and may

[[Page 710]]

result in a claim for liquidated damages under the bond.

[T.D. 02-40, 67 FR 48988, July 29, 2002]



PART 123_CUSTOMS RELATIONS WITH CANADA AND MEXICO--Table of Contents




Sec.
123.0 Scope.

                      Subpart A_General Provisions

123.1 Report of arrival from Canada or Mexico 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 foreign manifest.
123.6 Train sheet for arriving railroad trains.
123.7 Manifest used as an entry for unconditionally 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 locomotives 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 between 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 constructing 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 shipments.
123.24 Sealing of conveyances or compartments.
123.25 Certification and disposition of manifests.
123.26 Transshipment of merchandise moving through Canada or Mexico.
123.27 Feeding and watering animals in Canada.
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_Land Border Carrier Initiative Program

123.71 Description of program.
123.72 Written agreement requirement.
123.73 Application to participate.
123.74 Notice of selection; appeal of determination.
123.75 Notice of revocation; appeal of decision.
123.76 Authorization by Customs for participants to use certain drivers.

                   Subpart I_Miscellaneous Provisions

123.81 Merchandise found in building on the boundary.
123.82 Treatment of stolen vehicles returned from Mexico.

[[Page 711]]

    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. 1460;
    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;
    Sections 123.71-123.76 also issued under 19 U.S.C. 1618;
    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.



Sec. 123.0  Scope.

    This part contains special regulations pertaining to Customs 
procedures at the Canadian and Mexican borders. Included are provisions 
governing report of arrival, manifesting, unlading and lading, 
instruments of international traffic, shipments in transit through 
Canada or Mexico or through the United States, commercial traveler's 
samples transiting the United States or Canada, and baggage arriving 
from Canada or Mexico including baggage 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 vessels departing for, 
Canada or Mexico are governed by the provisions of part 4 of this 
chapter. Fees for services provided in connection with the arrival of 
aircraft, vessels, vehicles and other conveyances from Canada or Mexico 
are set forth in Sec. 24.22 of this chapter. Regulations pertaining to 
the treatment 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



Sec. 123.1  Report of arrival from Canada or Mexico and permission to proceed.

    (a) Individuals. Individuals arriving in the United States, unless 
excepted by voluntary enrollment in and compliance with PORTPASS--a 
joint Customs Service/Immigration and Naturalization Service facilitated 
entry program (See, Immigration and Naturalization 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 certain civil and 
criminal penalties, as provided under 19 U.S.C. 1459, in addition to 
other penalties applicable under other provisions of law. The specific 
reporting requirements are as follows:
    (1) Individuals not arriving by conveyance. Persons arriving 
otherwise than by conveyance may enter the U.S. only at those locations 
specified by the Commissioner of Customs, or his designee, and shall 
then immediately report their arrival to Customs. Such persons shall not 
depart from the Customs port or station until authorized to do so by the 
appropriate Customs officer.
    (2) Persons arriving aboard a conveyance that reported its arrival. 
Persons aboard a conveyance the arrival of which has been reported to 
Customs at locations specified by the Commissioner of Customs, or his 
designee in accordance with section 1433, 1644 or

[[Page 712]]

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 report to the designated Customs facility together with 
all articles accompanying them.
    (3) Persons arriving aboard a conveyance that has not reported its 
arrival. Persons aboard a conveyance the arrival of which has not been 
reported in 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 arrived, at a location or locations 
specified by the Commissioner of Customs, or his designee and shall 
present themselves 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 Sec. 101.3 of this chapter) or Customs station if 
the Commissioner of Customs, or his designee authorizes entry at that 
station (see Sec. 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 compliance with, 
PORTPASS--a joint Customs Service/Immigration and Naturalization Service 
facilitated entry program (See, Immigration and Naturalization 
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) without authorization by the appropriate 
Customs officer.
    (c) Vessels. For report of arrival requirements applicable to all 
vessels, regardless of tonnage, and arriving from any location, see 
Sec. 4.2 of this chapter.
    (d) Method of reporting. Report of arrival under paragraphs (a), 
(b), and (c) of this section shall be made in person unless the port 
director, by local instructions, 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]



Sec. 123.2  Penalty for failure to report arrival or for proceeding without a permit.

    (a) Persons. Any person arriving otherwise than by conveyance who 
enters the U.S. at other than a designated port of entry, or Customs 
station if authorization exists for entry at that station, who fails to 
report arrival as required in Sec. 123.1(a) of this part, or who 
departs from the port of entry or Customs station without authorization 
by the appropriate Customs officer, whether or not intentionally, shall 
be subject to such civil and criminal penalties as are prescribed under 
19 U.S.C. 1459 and provided for in Sec. 123.1 of this part.
    (b) Vessels. The penalty provisions applicable to vessels for 
failure to report arrival or for proceeding without a permit are those 
as provided in Sec. 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 exists 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 Sec. 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 appropriate Customs officer, 
removes such vehicle from the port of entry or Customs station or 
discharges any passenger or merchandise (including baggage) shall be 
subject to such civil penalties 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 
forfeiture. The person also may be subject to an additional civil 
penalty equal to the value of the merchandise on the

[[Page 713]]

conveyance which was not entered or reported as required by Sec. 
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, additional 
penalties may be assessed, as prescribed in section 584, Tariff Act of 
1930, as amended (19 U.S.C. 1584).
    (2) Criminal penalties. Upon conviction, 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]



Sec. 123.3  Inward foreign manifest required.

    (a) General requirements. Baggage or other merchandise carried on a 
vehicle or on a vessel of less than 5 net tons arriving otherwise than 
by sea from Canada or Mexico shall be listed on a manifest as prescribed 
by Sec. 123.4. Vessels which are required to make entry under Sec. 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 Sec. 4.7(a) of this 
chapter.
    (b) Exception where in possession of traveler. When baggage arrives 
in the actual possession of a traveler, his declaration will be accepted 
in lieu of a manifest. Merchandise imported by a person otherwise than 
in a vessel or vehicle 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 regulations.



Sec. 123.4  Inward foreign manifest forms to be used.

    The inward foreign manifest required by Sec. 123.3 for a vehicle or 
a vessel of less than 5 net tons arriving in the United States from 
Canada or Mexico otherwise than by sea with baggage or merchandise, 
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 
special cases:
    (a) For merchandise free of duty entered on Customs Form 7523, the 
same form may be used as a manifest in lieu of other forms. (See Sec. 
143.23 of this chapter.)
    (b) For dutiable merchandise not exceeding $2,000 in value entered 
on Customs Form 368 or 368A, (serially numbered) or Customs Form 7501 
the same form may be used as a manifest in lieu of other forms. (See 
Sec. 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 invoice is accurate to the 
best of my knowledge 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 American origin entered free of duty under the provisions of 
Sec. 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]



Sec. 123.5  Certification and filing of inward foreign manifest.

    The manifest listing baggage and other merchandise, certified by the

[[Page 714]]

master of the vessel or the person in charge of the vehicle, shall be 
presented to the Customs officer at the time the report of arrival is 
made. It shall be filed in the original only, unless additional copies 
are required in this part.



Sec. 123.6  Train sheet for arriving railroad trains.

    The conductor of a railroad train arriving 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, listing each car and showing the car numbers and 
initials.



Sec. 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 otherwise 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 entrant is listed on the same 
page of the manifest,
    (b) The country of exportation of the merchandise, its value, and 
the provision 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 
Sec. 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]



Sec. 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, including baggage, may be landed or discharged from any 
vessel of less than 5 net tons arriving from Canada or Mexico 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 supervision, 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 electronic information has not 
been received as provided in Sec. 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 Sec. 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 Sec. 4.30 of this chapter.
    (b) Application for permit or special license 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. Application for permission to unlade passengers or merchandise 
from, or lade any merchandise requiring Customs supervision on, a vessel 
of less than 5 net tons or a vehicle arriving from or departing 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 
condition as he may deem advisable the application may be made orally 
for vessels 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 authorize 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 Sec. 113.64

[[Page 715]]

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 conditions applicable, described in Sec. 4.30 (f) or (g) 
of this chapter. A term permit or special license to unlade or lade a 
truck already issued will not be applicable as to any cargo with respect 
to which advance electronic information has not been received as 
provided in Sec. 123.92 or 192.14 of this chapter, as applicable.

[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]



Sec. 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 Sec. 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 vehicle or any 
person directly or indirectly responsible for the discrepancy is subject 
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 manifested but not found on board a 
vessel or vehicle arriving in the U.S. (a shortage), the master, person 
in charge, or owner of the vessel or vehicle or any person directly or 
indirectly responsible for the discrepancy is subject to such penalties 
as are prescribed in section 584, Tariff Act of 1930, as amended (19 
U.S.C. 1584).
    (3) Failure to file a manifest. The master 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 seizure and forfeiture. A criminal 
conviction for intentional failure to file shall make the master or 
person in charge liable for criminal penalties, as provided by statute, 
and if any merchandise is found or determined to have been on board 
(other than sea stores or the equivalent for vehicles), the importation 
of which is prohibited, additional penalties may apply.
    (b) Report of discrepancies--(1) Discrepancies 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 directly or indirectly responsible for any 
discrepancy between the merchandise and the manifest, shall report any 
discrepancy to the port director within 60 days after the date of 
arrival by completing 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 Sec. 123.4, or on Customs Form 
5931, Discrepancy Report and Declaration. If no manifest has been filed, 
an original copy of the appropriate form, as listed in Sec. 123.4, 
should be used. In each case in which a manifest form is used, the form 
shall be marked or stamped ``Overage Report'' or ``Shortage 
Declaration'', as appropriate. The form used shall list the merchandise 
involved and state the reasons for the discrepancy.
    (2) Discrepancies discovered by Customs. The port director 
immediately shall advise the master, person in charge, owner, agent, or 
any person directly 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 arrival 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 indirectly responsible for the discrepancy by 
furnishing a copy of Customs Form

[[Page 716]]

5931 to that person, or by any other appropriate written means. Use of 
Customs Form 5931 shall not preclude assessment of any penalty or 
liability to forfeiture otherwise incurred.
    (c) Statement on report of discrepancy required. The overage report 
or shortage declaration shall bear the following statement signed by the 
master 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 responsible 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 nonimportation or proper 
disposition of merchandise 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 demand.

    (d) Action on the discrepancy report. (1) In accordance with the 
proviso to 19 U.S.C. 1584, no penalty shall be incurred under that 
section if--
    (i) The manifest discrepancy relates only to a shortage;
    (ii) There is timely filing of the discrepancy report;
    (iii) There has been no loss of revenue;
    (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, person in charge, owner, agent, or the person 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 forfeiture 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 purpose of assessing penalties under 
19 U.S.C. 1584, the value of the merchandise 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 discrepancy 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 defined. For the purpose of this 
section, the term ``clerical error or other mistake'' is defined as a 
non-negligent, inadvertent, or typographical mistake in the preparation, 
assembly, or submission of manifests. However, repeated similar manifest 
discrepancies by the same persons may be considered the result 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]



Sec. 123.10  General order merchandise.

    (a) Any merchandise or baggage regularly landed but not covered by a 
permit for its release shall be allowed to remain at the place of 
unlading until the fifteenth calendar day after landing. 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 merchandise or 
baggage for which entry has not been made. Such notification shall be 
provided in writing or by any appropriate 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 merchandise 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

[[Page 717]]

after arrival under bond at the port of destination, the party shall 
notify Customs of any such merchandise or baggage for which entry has 
not been made. Such notification shall be provided 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 Sec. 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 presence of such unreleased and unentered 
merchandise or baggage to a bonded warehouse certified by the port 
director as qualified to receive general order merchandise. Such 
notification shall be provided in writing or by any appropriate 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 responsibility of the bonded 
warehouse proprietor to arrange for the transportation 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 receipt of 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 
Sec. 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 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-authorized permit to transfer or in-bond entry fails to notify a 
Customs-approved bonded warehouse of such merchandise or baggage within 
the applicable 20-calendar-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 carrier or custodial bond (see 
Sec. Sec. 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 merchandise has been transferred by a Customs-authorized 
permit to transfer or in-bond entry fails to timely relinquish custody 
of the merchandise to a Customs-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 section, he may be liable for the payment of 
liquidated damages under the terms and conditions of his custodial bond 
(see Sec. 113.63(a)(1) of this chapter). If the port director finds 
that the warehouse proprietor cannot accept the goods because they are 
required by law to be exported or destroyed (see Sec. 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 responsible 
under bond for exporting or destroying the goods, as necessary (see 
Sec. Sec. 113.63(c)(3) and 113.64(b) of this chapter).
    (f) In ports where there is no bonded warehouse authorized to accept 
general

[[Page 718]]

order merchandise, or if merchandise requires specialized storage 
facilities 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, shall direct the storage of the merchandise by the carrier or 
by any other appropriate means.
    (g) Merchandise taken into the custody 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



Sec. 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 international 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 separate compartment or locker upon arrival, and 
the lock or seal remains unbroken until the train departs from the 
United States at the final port of exit.
    (b) Inventory procedure. Supplies acquired abroad for which internal 
revenue stamps are not required may be used in the United States under 
the following procedure:
    (1) Port of arrival. An inventory executed 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 parallel 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 officer 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 applicable 
duties and taxes paid at the port of exit on the quantity of supplies 
consumed 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.



Sec. 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 formal entry or the 
payment of duty to proceed to the end of the run and depart for a 
foreign country, in accordance with the following:
    (1) On inward trip. Unless formally entered and cleared through 
Customs into the United States, or unless exempt from entry as provided 
in Sec. 141.4(b)(4) of this chapter, a foreign locomotive 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 switching of cars 
which it has hauled into the United States. Other foreign railroad 
equipment may proceed to the place of complete unloading for any 
merchandise imported therein.
    (2) On outward trip. Unless formally entered and cleared through 
Customs into the United States, or unless exempt from entry as provided 
in Sec. 141.4(b)(4) of this chapter, foreign locomotives 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.

[[Page 719]]

    (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
    (2) The equipment is exempt from entry as provided in Sec. 
141.4(b)(4) of this chapter.
    (c) Penalty for improper use. The use of any foreign locomotive and 
other foreign 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 Sec. 123.13, locomotives 
or other railroad equipment manufactured in, or regularly 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 incident 
of the return of the equipment to the United States. Other locomotives 
and railroad equipment shall be considered ``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]



Sec. 123.13  Foreign repairs to domestic locomotives and other domestic railroad equipment.

    A report of the first arrival in the United States of a domestic 
locomotive or other railroad equipment after repairs have been made in a 
foreign country other than those required to restore 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 
railroad 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 repaired article would 
be dutiable if imported. For the appropriate determination as to whether 
the locomotive or other railroad equipment should be considered 
``domestic'' or ``foreign'', see Sec. 123.12(d).

[T.D. 73-73, 38 FR 6991, Mar. 15, 1973]



Sec. 123.14  Entry of foreign-based trucks, busses, and taxicabs in international traffic.

    (a) Admission without entry or payment of duty. Trucks, busses, and 
taxicabs, however owned, which have their principal 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 taking 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 section.
    (b) Deposit of registration by vehicle not on regular trip. In any 
case in which a foreign-based truck, bus, or taxicab admitted under this 
section is not in use on a regularly scheduled trip, the port director 
may require that the registration 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 vehicle.
    (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 following 
exceptions:
    (1) The vehicle may carry merchandise or passengers between points 
in the United States if such carriage is incidental to the immediately 
prior or subsequent engagement of that vehicle in international traffic. 
Any such carriage by the vehicle in the general direction 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 permitted to operate a vehicle under this

[[Page 720]]

paragraph, unless the driver is in compliance 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 a foreign country under 
the same conditions as are prescribed for ``other foreign railroad 
equipment'' in Sec. 123.12(a)(2).
    (d) Penalty for improper use. The use of any vehicle referred to in 
this section 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).

[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]



Sec. 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 thereafter be 
admitted without formal entry or the payment of duty so long as they are 
continuously employed in such service.



Sec. 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 purpose of bringing back 
merchandise or passengers for hire shall on their return to the United 
States be admitted without formal entry or the payment of duty upon 
their identity being established by State registration cards.
    (b) Use in local traffic. Trucks, busses, and taxicabs in use in 
international traffic, which may include the incidental carrying of 
merchandise or passengers 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 between points in 
a foreign country, otherwise than in the course of their use in 
international traffic, shall be considered 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]



Sec. 123.17  Foreign repairs to domestic trucks, busses, taxicabs and their equipment.

    (a) Domestic trucks, busses, and taxicabs and their equipment 
defined. For the purpose of this section, trucks, busses, and taxicabs 
and their equipment manufactured in, or regularly 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 incident 
of their return to the United States.
    (b) Report of arrival and payment of duty on repairs. A report of 
the first arrival 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 report shall state the time and place of arrival and the 
nature and value of the repairs. Each such vehicle or its 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 repaired article would be dutiable if imported.



Sec. 123.18  Equipment and materials for constructing bridges or tunnels between the United States and Canada or Mexico.

    (a) Admission of equipment and materials. Equipment for use in 
construction 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

[[Page 721]]

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.
    (b) Customs supervision. All articles admitted under paragraph (a) 
of this section shall be subject to Customs supervision at the expense 
of the builder until installed, entered, or exported.



         Subpart C_Shipments in Transit Through Canada or Mexico



Sec. 123.21  Merchandise in transit.

    (a) Status. Merchandise may be transported from one port to another 
in the United States through Canada or Mexico 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 subject to treatment as an importation when returned 
to the United States, and no inward foreign manifest is required for 
merchandise returned under an in-transit manifest. In-transit 
merchandise 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 furnished for the merchandise upon 
its return to the United States;
    (2) The merchandise has been trans-shipped in foreign territory 
without Customs supervision when the transshipment required the breaking 
of Customs 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 Sec. 4.80 of this 
chapter.)
    (c) Regulations applicable. The provisions 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.



Sec. 123.22  In-transit manifest.

    (a) Manifest required. A manifest in duplicate covering the in-
transit merchandise which is to proceed under the provisions of this 
subpart shall be presented by the carrier to the Customs officer at each 
port of lading of a vessel, 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 
transshipment 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 manifesting 
requirements contained in Sec. 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 consolidated train 
manifest containing all the information included in the individual car 
manifests and the train sheet required by Sec. 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

[[Page 722]]

this subpart, or in subpart E relating to truck shipments on the 
Canadian border, subpart F relating to commercial 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 provided for such identification.
    (2) The description of ladings made up of several shipments which 
are to go forward in a conveyance or compartment sealed with Customs 
seals shall be ``miscellaneous shipments.''
    (3) When an in-transit rail shipment will enter and reenter Canada 
in a continuing 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]



Sec. 123.23  Train sheet for in-transit rail shipments.

    Before an in-transit train proceeding under the provisions of this 
subpart departs from the United States, the carrier shall furnish to the 
customs officer at the port of exit a train sheet, sometimes 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.



Sec. 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 
conveyances 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 specific description in the 
manifest may be transported in the care of an attendant or customs 
inspector at the expense of the parties in interest, in unsealed 
conveyances or compartments.
    (b) Seals to be affixed. The carrier shall affix blue in-transit 
seals to all openings of conveyances and compartments containing in-
transit merchandise 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 additional seals.
    (c) Carrier relieved of responsibility. The port director may 
relieve the carrier of the responsibility of affixing in-transit seals 
by notification in writing that Customs inspectors will assume it.



Sec. 123.25  Certification and disposition of manifests.

    (a) Certification. Conveyances proceeding under the provisions of 
this subpart shall not proceed until the Customs inspector has certified 
the in-transit manifest or verified its certification by the carrier. 
The port director may require the carrier to execute the certificate as 
an alternative to certification by the Customs officer. When the carrier 
is to execute the certificate, and the merchandise will be forwarded 
without being under Customs seals, the agent of the carrier shall 
carefully examine the packages covered by the manifests to satisfy 
himself that the merchandise agrees with the manifest as to quantity and 
description.
    (b) Disposition of manifest. The original manifest, after 
certification, shall accompany the merchandise. Additional copies 
required when the merchandise is to be transshipped in Canada or Mexico 
under Customs supervision shall be given to the person in charge of the 
conveyance for delivery to the Customs officers who will supervise 
transshipment.

[[Page 723]]



Sec. 123.26  Transshipment of merchandise moving through Canada or Mexico.

    (a) General. Merchandise in transit proceeding under the provisions 
of this subpart may be transshipped from one conveyance to another in 
foreign territory. When transshipment requires the breaking of Customs 
seals, the breaking of the seals, transshipment and sealing of the 
conveyance or compartment to which the merchandise is transshipped shall 
be under the supervision of a Customs officer. He shall note his action 
on both the additional copy of the manifest presented to him, in 
accordance with Sec. 123.25(b), and on the original copy, which shall 
be returned to the person in charge of the conveyance to accompany the 
merchandise. Merchandise transshipped in foreign territory without 
customs supervision when Customs seals were broken shall be treated upon 
return to the United States as imported merchandise.
    (b) Storage awaiting transshipment. Merchandise moving under in-
transit manifests and Customs seals which is to be stored in foreign 
territory awaiting transshipment shall be checked into a storehouse by 
the Customs officer 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 covered 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 prepare a new manifest, in 
duplicate, for each conveyance to which the merchandise is transshipped. 
If there is to be further transshipment, an additional 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 transshipment in accordance with Sec. 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 manifests shall be returned to the carrier to accompany the 
merchandise to the point of reentry into the United States.



Sec. 123.27  Feeding and watering animals in Canada.

    If animals in sealed conveyances or compartments cannot be fed and 
watered in Canada without breaking customs seals, the seals shall be 
broken and the animals fed and watered under the supervision of a United 
States or Canadian Customs officer. The supervising officer shall reseal 
the conveyance or compartment, and make notation as to the resealing on 
the manifest.



Sec. 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 abandoned 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 
contiguous country shall be treated as exported 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 benefit of drawback. 
The manifest, shipper's export declaration, and the notice of 
exportation, if any, shall be filed at the last port of exit from the 
United States.



Sec. 123.29  Procedure on arrival at port of reentry.

    (a) Presentation of documents. At the first port in the United 
States after

[[Page 724]]

transportation through Canada or Mexico under the provisions of this 
subpart, the carrier shall present to Customs the in-transit manifest or 
manifests for each loaded conveyance. For mixed ladings, that is, 
ladings made up 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 consolidated manifest was not used the 
conductor shall also present a train sheet showing the car numbers and 
initials.
    (b) Vessels and rail shipments continuing in-transit movement--(1) 
Vessels. In the case of a vessel carrying in-transit merchandise, the 
master's copies of the in-transit or in-bond manifest covering the 
merchandise given final Customs release at that port shall be retained 
by Customs at that port and the manifests covering merchandise to be 
discharged at subsequent ports of arrival 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 further in-transit 
movement through Canada may be permitted to go forward under the 
accompanying in-transit manifest after verification by Customs that the 
manifest satisfactorily identifies 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 employee, or by a 
consignee at any time or place after the merchandise under such seals 
has been released by Customs.
    (d) Proper manifest. In-transit merchandise shall not be released 
until proper in-transit manifests are received 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



Sec. 123.31  Merchandise in transit.

    (a) From one contiguous country to another. Merchandise may be 
transported in transit across the United States between 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 Sec. Sec. 18.20 to 18.24 of this chapter 
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.



Sec. 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 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.
    (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.



Sec. 123.33  [Reserved]



Sec. 123.34  Certain vehicle and vessel shipments.

    In the following circumstances, the copy of Customs Form 7512 to be 
retained at the port of first arrival may

[[Page 725]]

be adapted for use as a combined inward foreign manifest and in-bond 
transportation or direct exportation entry:
    (a) When all the merchandise arriving on one vehicle (except on 
trucks on the Canadian border) is to move in bond in the importing 
vehicle in a continuing movement through the United States; or
    (b) When all the merchandise arriving on one vessel or on one 
vehicle (except on trucks on the Canadian border) is entered immediately 
upon arrival either under a single immediate transportation entry or a 
single transportation and exportation or direct exportation entry.

When Customs Form 7512 is to be used in this manner, the foreign port of 
lading and the name of the shipper shall be shown in every case, and a 
certificate in the following form shall be legibly stamped on the 
manifest or on a separate paper securely fastened thereto and executed 
by the master of the vessel or the person in charge of the vehicle:

    This entry correctly covers all the merchandise 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 details is discovered, I will immediately report the 
correct information to the port director.



     Subpart E_United States and Canada In-Transit Truck Procedures



Sec. 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 8\1/2\. The 
driver shall present the manifest in four copies to U.S. Customs at the 
United States port of departure for review and validation.
    (b) Procedure at United States port of departure. 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 presentation to Canadian Customs at the 
Canadian port of entry.
    (c) Procedure at Canadian ports of arrival 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 Customs Form 7512-B Canada 8\1/2\, 
in four copies to the Canadian Customs officer, who shall review the 
manifest for accuracy 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 Canadian 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 certified copies will be returned to 
the driver (one to be presented to U.S. Customs at the United States 
port of reentry, 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 reentering the United States after transiting Canada shall present 
a certified copy of the United States-Canada Transit Manifest, Customs 
Form 7512-B Canada 8\1/2\, 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 
return to that port to have it certified. The driver will be allowed to 
break any seals affixed by Canadian Customs

[[Page 726]]

upon presentation of a certified manifest. If sealing has been waived, 
the U.S. Customs officer shall satisfy himself that the truck contains 
only that merchandise covered by the manifest which moved on the truck 
from the United States through Canada.
    (e) Proof of exportation from Canada. The certified copy of the 
manifest returned to the driver by Canadian Customs 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]



Sec. 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 8\1/2\. 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 review and validation.
    (b) Procedure at Canadian port of departure. 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 presentation 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, Customs Form 7512-B Canada 8\1/2\, 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 Canadian port of departure so that the manifest may be validated in 
accordance with Canadian Customs regulations. If the manifest is 
validated properly and no irregularity is found the truck will be sealed 
unless sealing is waived by U.S. Customs. The U.S. Customs officer shall 
note on the manifest over his initials the seal numbers or the waiver of 
sealing, retain the original, 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 Sec. 18.4 of 
this chapter. If a truck cannot be sealed effectively and sealing is 
deemed necessary to protect the revenue or to prevent violation of the 
Customs 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 contents should be verified, all merchandise 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 sufficient detail to detect any 
irregularity.
    (e) Procedure at Canadian port of reentry. 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 Canada 8\1/2\, to the Canadian Customs officer. If this 
copy of the manifest does not bear the certification of a U.S. Customs 
officer at the United States port of exit, the driver will be allowed to 
return to that port to have it certified.
    (f) Proof of exportation from United States. The certified copy of 
the manifest returned to the driver by the U.S.

[[Page 727]]

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 the general provisions for transportation in bond 
(Sec. Sec. 18.1-18.8 of this chapter).

[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



Sec. 123.51  Commercial samples transported by automobile through Canada 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 Canada may request a U.S. Customs officer at the port of 
departure to cord and seal the outer containers of the samples 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 substantially the 
following form:

      Samples Carried in Transit Through Canada in Private Vehicle

________________________________________________________________________
(U.S. port of exit printed here) (Date)
    I have checked the quantity and values of the below-listed articles 
carried by --------------------(Name and address of traveler) and owned 
by --------------------(Name and address of firm or company)
These articles are contained in -------- (Number) packages which have 
been corded and sealed for in-transit movement through Canada to ------
-- (U.S. port of reentry) in -------- (Year, make and license number of 
vehicle)

________________________________________________________________________
                                                (U.S. Customs Inspector)
    Description of merchandise Value
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________


When the traveler arrives at Customs with lists already prepared, the 
form may be inscribed ``as per list attached.''
    (c) Checking, cording, and sealing by U.S. Customs officers. The 
Customs officer shall check the list with the articles 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 movement 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 number 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 
irregularity.

[T.D. 70-121, 35 FR 8215, May 26, 1970, as amended by T.D. 82-145, 47 FR 
35478, Aug. 16, 1982]



Sec. 123.52  Commercial samples transported by automobile through the United States between ports in Canada.

    (a) General provisions. A commercial traveler arriving from Canada 
may be permitted to transport effectively

[[Page 728]]

corded and sealed samples in his automobile without further sealing in 
the United States, upon compliance with this section and subject to the 
conditions of Sec. 18.20(b), since Customs bonded carriers as described 
in Sec. 18.1 of this chapter are not considered to be reasonably 
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 without an in-transit manifest in 
accordance with Sec. 148.41 of this chapter.
    (b) Presentation of sample list at Canadian port of exit. A 
commercial traveler arriving from Canada desiring to transport without 
display in the United States commercial samples in his automobile 
through the United States to another port in Canada, may present his 
samples to a Canadian Customs officer at the Canadian port of exit. The 
traveler will be required to furnish the Canadian Customs officer a list 
in duplicate of all articles presented showing their approximate values. 
The list shall bear the traveler's name and address, and the name and 
address of the firm represented.
    (c) Checking, cording, and sealing by Canadian Customs officers. The 
Canadian 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 authenticate the list of 
samples with his signature and title. Cording and sealing may be waived 
with the concurrence of the United States and Canadian Customs officers.
    (d) Treatment at U.S. port of arrival. The list of samples properly 
authenticated 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 shipment.
    (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, quantities, and values may be shown thereon by 
noting ``Commercial Samples,'' the number of corded and sealed 
containers, and the approximate total value of the samples. When cording 
and sealing has been waived with the concurrence of a Canadian Customs 
officer, samples must be identified on the manifest by suitable itemized 
descriptions and approximate values, or by attaching 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 covered. If the 
seals are broken or cording and sealing has been waived, the Customs 
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



Sec. 123.61  Baggage arriving in baggage car.

    An inward foreign manifest on Customs 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]



Sec. 123.62  Baggage in possession of traveler.

    For baggage arriving in the actual possession of a traveler, his 
declaration shall be accepted in lieu of an inward foreign manifest. 
(See Sec. 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]



Sec. 123.63  Examination of baggage from Canada or Mexico.

    (a) Opening vehicle or compartment to examine baggage. Customs 
officers are

[[Page 729]]

authorized to unlock, open, and examine 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) and 19 U.S.C. 482. However, to the extent 
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 vehicle 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 article is found upon opening by the Customs 
officer, the whole contents and the vehicle shall be subject to 
forfeiture pursuant to 19 U.S.C. 1462.
    (b) Inspection of baggage. A Customs officer has the right to 
inspect all merchandise and baggage brought into the United States from 
contiguous countries 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 unavailable or 
refuses to open the baggage or furnish keys or where it is not practical 
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 prohibited 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]



Sec. 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 
Mexico through the United States may be transported in bond through the 
United States in accordance with the procedures set forth in Sec. Sec. 
18.13, 18.14, and 18.20 through 18.24 of this chapter except where those 
procedures are modified 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 arriving 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 Sec. 18.14 of this chapter shall be used.
    (2) Baggage arriving from Canada. For baggage arriving at a port on 
the Canadian 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 8\1/2\) 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 carrier may be required to furnish the baggage card described in 
Sec. 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]



Sec. 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 domestic 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

[[Page 730]]

this section. The provisions of this section 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.
    (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 baggage of domestic origin to be 
transported through Mexico between ports of the United States, the 
special in-transit tag manifest attached to each piece of baggage shall 
be on white cardboard not less than 2\1/2\ x 4\1/2\ inches in size 
printed in substantially the following form:

                          United States Customs

                       in-transit baggage manifest

Carrier's Baggageman: Destroy this tag if owner has access to baggage 
before its return to United States.
Check No. ----.
    This baggage is in transit from -------------------- (Port of exit) 
through foreign territory to -------------------- (Port of reentry) in 
the United States.
    This baggage was laden for transportation as above stated.
    Date --------
________________________________________________________________________
                                                  (U.S. Customs Officer)

    (2) Baggage transiting Canada. For baggage of domestic origin to be 
transported through Canada between ports in the United States, the joint 
United States-Canada in-transit baggage card, Customs Form 7512-B 
(Canada 8\1/2\) 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 reentry into the United States. If the officer finds 
the special in-transit tag manifest missing or not intact, or for any 
other reason believes that the baggage has been tampered with while 
outside the United States, he shall detain it for examination. 
Otherwise, baggage transported under the procedure in this section may 
be passed without examination.
    (d) Procedure in lieu of special in-transit tag manifest. In lieu of 
attaching the special in-transit tag manifest to each piece of baggage 
as set forth in paragraph (b) of this section, baggage of domestic 
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_Land Border Carrier Initiative Program

    Source: T.D. 99-2, 64 FR 31, Jan. 4, 1999, unless otherwise noted.



Sec. 123.71  Description of program.

    The Land Border Carrier Initiative Program (LBCIP) is a program 
designed to enlist the voluntary cooperation of commercial conveyance 
entities in Customs effort to prevent the smuggling of controlled 
substances into the United States. Participation in the LBCIP requires 
the land or rail commercial carrier to enter into a written agreement 
with Customs that describes the responsibilities of participants in the 
LBCIP. The agreement generally provides that the carrier agrees to 
enhance the security of its facilities and the conveyances employed to 
transport merchandise. The carrier also agrees to cooperate closely with 
Customs in identifying and reporting suspected smuggling attempts. In 
exchange for this cooperation, Customs agrees to provide training to 
carrier personnel in the areas of cargo and personnel security, document 
review techniques, drug awareness, and conveyance searches. Customs also 
agrees that should a controlled substance be found aboard a conveyance 
owned or operated by a participating carrier, special administrative 
procedures relating to the assessment and mitigation of drug-related 
penalties will be followed; the degree of compliance with the terms of 
the agreement will be considered as an additional positive mitigating 
factor in

[[Page 731]]

any seizure or penalties decision or recommendation. Lastly, at certain 
high-risk locations, for the use of Line Release, imported merchandise, 
which otherwise qualifies for Line Release entry (see, subpart D of part 
142 of this chapter), must be transported over the border by carriers 
that participate in the LBCIP. The locations where the use of Line 
Release will be conditioned on participation in the LBCIP will be 
published in the Federal Register.



Sec. 123.72  Written agreement requirement.

    Commercial carriers desiring to participate in the LBCIP shall enter 
into a written agreement with Customs regarding the mutual obligations 
of the carrier-participant and Customs. The terms and conditions in the 
written agreement shall generally provide that the carrier-applicant 
agrees:
    (a) To participate in Customs training regarding cargo and personnel 
security, document review techniques, drug awareness, and conveyance 
searches;
    (b) To establish security systems at the place of business for the 
safe storage and handling of cargo intended to be imported into the 
United States; and security procedures aimed at restricting access to 
transporting conveyances and preventing the unauthorized lading of 
illegal drugs while the conveyance is en route to the United States;
    (c) To conduct, to the extent allowed by law, employment and 
criminal history record checks on all personnel designated to 
participate in the LBCIP and to exercise responsible supervision and 
control over those personnel;
    (d) To ensure that only authorized drivers and properly registered 
conveyances are utilized in the transportation of merchandise into the 
United States, and to maintain current lists of such drivers and 
conveyances for Customs inspection upon request;
    (e) To immediately report to the appropriate port director any 
criminal or dishonest conduct on the part of drivers designated to 
participate in the LBCIP, or attempts by others to impede, influence, or 
coerce the carrier or drivers into violating any United States law, 
including Customs regulations, especially those concerned with 
trafficking in illegal drugs; and
    (f) To notify the appropriate port director in writing by mail 
within 5 days of any change in legal name, business address, business 
principals, ownership, drivers, or conveyances that affects the basis 
for continued participation in the LBCIP.



Sec. 123.73  Application to participate.

    To request participation in the LBCIP, the carrier-applicant must 
submit an application containing the information requested in this 
section. The application must be accompanied by two copies of a LBCIP 
written agreement (see Sec. 123.72 of this part; upon request, the 
local port director will provide copies of an unsigned written 
agreement) containing original signatures of corporate officers or 
owners of the common carrier. The application shall be prepared by the 
common carrier, be signed by corporate officers or owners, and submitted 
to the port director. If a submitted application does not provide all of 
the information specified in this section, the processing of the 
application will either be delayed or the application will be rejected. 
The application shall include the following information:
    (a) General business identification and site condition information. 
The name and address of the commercial conveyance entity, the names of 
all principals or corporate officers, the name and telephone number of 
an individual to be contacted for further information, and a complete 
and detailed description of the premises where business operations are 
conducted, to include all working/storage areas and security features 
employed;
    (b) Designated driver information. A listing of the drivers 
designated by the carrier who will be transporting merchandise into the 
U.S. The listing shall set forth the name(s), address(es), date of 
birth, nationality, driver's license number, and any other personal 
identifying information regarding the drivers listed, e.g., social 
security number (if available), to enable Customs to conduct background 
checks and to aid Customs officers at the border crossing point in 
identifying individual LBCIP-authorized drivers;

[[Page 732]]

    (c) Conveyance identification information. A listing of the 
conveyances, e.g., trucks and locomotives, that the carrier will utilize 
to transport merchandise into the U.S. The listing shall set forth the 
type and make of conveyances, country of registration and license 
number(s), conveyance-specific identifying markings, e.g., vehicle 
identification numbers (VINs), and any other general conveyance 
identifying information, e.g., weight, color, recognizable 
modifications, etc., to aid Customs officers at the border crossing 
point in identifying particular LBCIP-registered conveyances; and
    (d) Affidavit of business character. A statement signed by the 
carrier-applicant which attests to each principal's or corporate 
officer's past and present business relations, e.g., a list of past 
companies worked for and positions held, which fully explains the 
presence of any past or present crime involving theft or smuggling or 
investigations into such crimes, or other dishonest conduct on the part 
of a principal.



Sec. 123.74  Notice of selection; appeal of determination.

    The information provided pursuant to paragraphs (b) through (d) of 
Sec. 123.73 shall constitute the criteria used to evaluate the 
competency of the carrier-applicant to participate in the LBCIP. 
Following Customs evaluation of the information provided, Customs shall 
notify the carrier-applicant in writing of Customs determination as to 
whether the carrier-applicant is qualified to participate in the LBCIP. 
In cases of selection, Customs will sign and return one of the copies of 
the written agreement. In cases of nonselection, the written notice 
shall clearly state the reason(s) for denial and recite the applicant's 
appeal rights under paragraph (b) of this section.
    (a) Grounds for nonselection. The port director may deny a carrier's 
application to participate in the LBCIP for any of the following 
reasons:
    (1) Evidence of any criminal or dishonest conduct involving the 
carrier, a corporate officer, designated drivers, or other person the 
port director determines is exercising substantial ownership or control 
over the carrier operation or corporate officer;
    (2) Evidence of improper use of designated conveyances;
    (3) Evidence that the written agreement was entered into by fraud or 
misstatement of a material fact; or
    (4) A determination is made that the grant of LBCIP privileges would 
endanger the revenue or security of the Customs area.
    (b) Appeal of determination. Carrier-applicants not selected to 
participate in the LBCIP and who wish to appeal the decision shall 
either:
    (1) Appeal the adverse determination in accordance with the appeal 
procedure set forth in Sec. 123.75(c) of this part; or
    (2) Cure any deficiency in the first application by submitting a new 
application to the port director who denied the previous application 
after waiting 60 days from the date of issuance of the first 
determination.



Sec. 123.75  Notice of revocation; appeal of decision.

    (a) Revocation. The port director may immediately revoke a carrier's 
participation in the LBCIP and cancel the written agreement for any of 
the following applicable reasons:
    (1) The selection and written agreement were obtained through fraud 
or the misstatement of a material fact by the carrier;
    (2) The carrier, a corporate officer, or other person the port 
director determines is exercising substantial ownership or control over 
the carrier operation or corporate officer, is indicted for, convicted 
of, or has committed acts which would constitute any felony or 
misdemeanor under United States Federal or State law. In the absence of 
an indictment, conviction, or other legal process, the port director 
must have probable cause to believe the proscribed acts occurred;
    (3) The carrier-participant allows an unauthorized person or entity 
to use its LBCIP certificate or other approved form of identification;
    (4) The carrier-participant misuses authorized conveyances;
    (5) The carrier-participant refuses or otherwise fails to follow any 
proper order of a Customs officer or any Customs order, rule, or 
regulation;

[[Page 733]]

    (6) The carrier-participant fails to operate in accordance with the 
terms of the written agreement; or
    (7) Continuation of LBCIP privileges would endanger the revenue or 
security of the Customs area in the judgment of the port director.
    (b) Notice. When a decision revoking participation has been made, 
the port director shall notify the carrier-participant of the decision 
in writing. The notice of revocation shall clearly state the reason(s) 
for revocation and recite the applicant's appeal rights under paragraph 
(c) of this section.
    (c) Appeal of decision. Carrier-participants that receive a notice 
of revocation and who wish to appeal the decision shall file a written 
appeal with the Assistant Commissioner, Office of Field Operations, U.S. 
Customs Service, Washington, DC 20229, within 10 calendar days of 
receipt of the notice. The appeal shall be filed in duplicate and shall 
set forth the carrier's responses to the grounds specified by the port 
director in the notice. Within 30 working days of receipt of the appeal, 
the Assistant Commissioner, or his designee, shall make a determination 
regarding the appeal and notify the applicant in writing.



Sec. 123.76  Authorization by Customs for participants to use certain drivers.

    (a) Responsibilities of LBCIP participants. An LBCIP participant is 
required, pursuant to Sec. 123.73 of this part, to list the drivers 
designated to transport merchandise into the United States for the 
carrier to enable Customs to conduct background checks. An LBCIP 
participant is also required, pursuant to Sec. 123.72 of this part, to 
conduct, to the extent allowed by law, employment and criminal history 
checks on all personnel designated to participate in the LBCIP; these 
personnel include drivers.
    (b) Authorization of drivers by Customs. Customs may not approve a 
carrier for participation in the LBCIP if it determines that there is 
evidence that a driver designated by a carrier has been involved in 
criminal or dishonest conduct or it may request that the carrier not use 
that driver before approving the carrier for participation. Once a 
carrier has been accepted in the LBCIP, Customs may determine to cancel 
a particular driver's authorization to transport merchandise for a LBCIP 
carrier for the reasons set forth in paragraph (c) of this section.
    (c) Reasons for cancellation of driver's authorization. Customs may 
cancel a driver's authorization to transport merchandise for an LBCIP 
participant for any of the following reasons:
    (1) The designated driver is indicted for, convicted of, or has 
committed acts which would constitute any felony or misdemeanor under 
United States Federal or State law. In the absence of an indictment, 
conviction, or other legal process, the port director must have probable 
cause to believe the proscribed acts occurred;
    (2) The designated driver allows an unauthorized person or entity to 
use his LBCIP certificate or other approved form of identification;
    (3) The designated driver misuses authorized conveyances;
    (4) The designated driver refuses or otherwise fails to follow any 
proper order of a Customs officer or any Customs order, rule, or 
regulation; or
    (5) The designated driver fails to operate in accordance with the 
terms of the written agreement.
    (d) Notice; rights of driver--(1) If driver not acceptable to 
Customs at time of review of carrier's application. When Customs 
notifies a carrier-applicant, pursuant to Sec. 123.74 of this part, of 
its nonselection into the LBCIP because of conduct committed by a driver 
designated by the carrier or when Customs conditionally approves a 
carrier-applicant's participation in the LBCIP, but does not approve a 
driver designated on the application to be authorized to transport 
merchandise under the LBCIP, Customs will also notify the driver of the 
decision in writing and recite the driver's appeal rights under 
paragraph (e) of this section.
    (2) If driver's authorization cancelled. When Customs makes a 
determination to cancel the authorization of a particular designated 
driver, pursuant to Sec. 123.76(b) of this section, Customs will notify 
both the carrier-participant and the driver of the decision in writing; 
the notice to the driver will recite the driver's appeal rights under 
paragraph (e) of this section.

[[Page 734]]

    (e) Appeal rights of drivers. Drivers who receive a notice of 
nonselection or cancellation and who wish to appeal the decision shall 
file a written appeal with the Assistant Commissioner, Office of Field 
Operations, U.S. Customs Service, Washington, D.C. 20229, within 10 
calendar days of receipt of the notice. The appeal shall be filed in 
duplicate and shall set forth the driver's responses to the grounds 
specified by the port director in the notice. Within 30 working days of 
receipt of the appeal, the Assistant Commissioner, or his designee, 
shall make a determination regarding the appeal and notify the applicant 
in writing.



                   Subpart I_Miscellaneous Provisions



Sec. 123.81  Merchandise found in building 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 report 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]



Sec. 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 Convention 
between the United States of America and the United Mexican States for 
the Recovery and Return of Stolen or Embezzled Vehicles and Aircraft 
(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 
containing:
    (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 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. Redesignated 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.



Sec. 123.91  Electronic information for rail cargo required in advance of arrival.

    (a) General requirement. Pursuant to section 343(a), Trade Act of 
2002, as amended (19 U.S.C. 2071 note), and subject to paragraph (e) of 
this section, for any train requiring a train sheet under Sec. 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 enumerated in paragraph 
(d) of this section, 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 transmission of the required rail cargo 
information 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 advance electronic information filing 
requirement 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 another vehicle or conveyance is also subject to the 
advance electronic information filing requirement under paragraph (a) of 
this section.

[[Page 735]]

    (b) Exception; cargo in transit from point to point in the United 
States. Domestic 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 incoming cargo 
under paragraph (a) of this section.
    (c) Incoming rail carrier--(1) Receipt of data; acceptance of cargo. 
As a pre-requisite to accepting the cargo, the carrier 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 section, for electronic transmission to 
CBP.
    (2) Accuracy of information received by rail carrier. Where the rail 
carrier electronically presenting the cargo information required in 
paragraph (d) of this section receives any of this information from 
another party, CBP will take into consideration how, in accordance with 
ordinary commercial practices, the rail carrier acquired such 
information, and whether and how the carrier is able to verify this 
information. Where the rail carrier is not reasonably able to verify 
such information, CBP will permit the carrier to electronically present 
the information on the basis of what the carrier reasonably believes to 
be true.
    (d) Cargo information required. The rail carrier must electronically 
transmit 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 
Carrier Alpha Code assigned for each carrier by the National Motor 
Freight Traffic Association; see Sec. 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 arrival 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 contained in the carrier's bill of lading, either master or house, as 
applicable (this means the quantity of the lowest external packaging 
unit; containers and pallets do not constitute acceptable information; 
for example, a container holding 10 pallets with 200 cartons should be 
described as 200 cartons);
    (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 information is received from the shipper) and weight of the 
cargo; or, for a sealed container, the shipper's declared description 
and weight of the cargo (generic 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 identity 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 contrast, the 
identity of the carrier, freight forwarder, consolidator, or broker, is 
not acceptable; the identification number will be a unique number to be 
assigned by CBP upon the implementation of the Automated Commercial 
Environment);
    (7) 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. However, 
in the case of cargo shipped ``to order of [a named party],'' the 
carrier 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 party's identity and contact information (address) in 
the ``Notify Party'' field of the advance electronic data transmission 
to CBP, to the extent that the CBP-approved electronic data interchange 
system is capable of receiving this data. The identification number will 
be a unique number assigned by CBP upon implementation of the Automated 
Commercial Environment);
    (8) The place where the rail carrier takes possession of the cargo 
shipment;

[[Page 736]]

    (9) Internationally recognized hazardous material code when such 
materials are being shipped by rail;
    (10) Container numbers (for containerized shipments) or the rail car 
numbers; and
    (11) The seal numbers for all seals affixed 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 accepted through the system per container, 
the carrier's electronic presentation of two of these seal numbers for 
the container would be considered as constituting full compliance with 
this data element).
    (e) Date for compliance with this section. Rail carriers must 
commence the advance electronic transmission to CBP of the required 
cargo information, 90 days from the date that CBP publishes notice in 
the Federal Register informing affected carriers that the approved 
electronic data interchange system is in place and operational at the 
port of entry where the train will first arrive in the United States.



Sec. 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), and subject to paragraph (e) 
of this section, for any truck required to report its arrival under 
Sec. 123.1(b), that will have commercial cargo aboard, Customs and 
Border Protection (CBP) must electronically receive from the party 
described in paragraph (c) of this section certain information 
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 authorized, based upon the CBP-
approved system employed to present the information.
    (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 (Sec. 123.31(a)); and cargo arriving by truck for 
transportation through the United States from one point to another in 
the same foreign country (Sec. 123.31(b); Sec. 123.42) are subject to 
the advance electronic 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 exportation, or for 
transportation and exportation, in another vehicle or conveyance are 
also subject to the advance electronic information filing requirement in 
paragraph (a) of this section.
    (b) Exceptions from advance reporting requirements--(1) Cargo in 
transit from point to point in the United States. Domestic cargo 
transported by truck and arriving at one port from another in the United 
States after transiting Canada or Mexico (Sec. 123.21; Sec. 123.41) is 
exempt from the advance electronic filing requirement for incoming cargo 
under paragraph (a) of this section.
    (2) Certain informal entries. The following 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 informally 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 prescribed on CF 3311.
    (c) Carrier; and importer or broker--(1) Single party presentation. 
Except as provided in paragraph (c)(2) of this section, 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 importer (see Sec. 113.62(j)(2) of this chapter), elects 
to submit such data, the carrier is responsible for presenting to CBP

[[Page 737]]

the remainder of the information specified in paragraph (d) of this 
section.
    (3) Party receiving information believed to be accurate. Where the 
party electronically presenting the cargo information required in 
paragraph (d) of this section receives any of this information from 
another party, CBP will take into consideration how, in accordance with 
ordinary commercial practices, 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 information on the basis of what the party reasonably 
believes to be true.
    (d) Cargo information required. The following commodity and 
transportation information, as applicable, must be electronically 
transmitted to and received by CBP for all required incoming cargo 
arriving in the United States by truck, to the extent that the 
particular CBP-approved electronic data interchange system employed can 
accept this information:
    (1) Conveyance number, and (if applicable) equipment number (the 
number of the conveyance is its Vehicle Identification 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 attached 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 Association; see Sec. 
4.7a(c)(2)(iii) of this chapter);
    (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 number has been generated 
by the carrier);
    (4) Container number(s) (for any containerized 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 arrival 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 external packaging unit; containers and pallets do not constitute 
acceptable information; for example, a container holding 10 pallets with 
200 cartons should be described as 200 cartons);
    (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 hazardous 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 identity 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 contrast, the 
identity of the carrier, freight forwarder, consolidator, or broker, is 
not acceptable; the identification number will be a unique number to be 
assigned by CBP upon the implementation of the Automated Commercial 
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).
    (e) Date for compliance with this section. The incoming truck 
carrier and, if electing to do so, the United States importer, or its 
Customs broker, must present the necessary cargo data to CBP at the 
particular port of entry where the truck will arrive in the

[[Page 738]]

United States on and after 90 days from the date that CBP has published 
a notice in the Federal Register informing affected carriers that:
    (1) The approved data interchange is in place and fully operational 
at that port; and
    (2) The carrier must commence the presentation of the required cargo 
information through the approved system.



PART 125_CARTAGE AND LIGHTERAGE OF MERCHANDISE--Table of Contents




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 importers' 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 appear.

                     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 notation 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.



Sec. 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 authorized in Sec. 112.2(b) to engage in cartage. 
Provisions for licensing cartmen and lightermen are in part 112 of this 
chapter.

[T.D. 94-81, 59 FR 51495, Oct. 12, 1994]



                      Subpart A_General Provisions



Sec. 125.1  Classes of cartage.

    (a) Government cartage. Government cartage must be done by a 
licensed customhouse cartman or other bonded carrier as provided in 
Sec. 112.2 of this chapter under contract or other specific authority 
for that purpose (except as provided for in Sec. 125.12). All 
government cartage must be contracted for using the procedures specified 
in Sec. 125.3.
    (b) Importers' cartage. Importers' cartage may be done by any 
licensed customhouse cartman or other bonded carrier as provided in 
Sec. 112.2 of this chapter.

[T.D. 94-81, 59 FR 51495, Oct. 12, 1994]



Sec. 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 merchandise being 
carried.



Sec. 125.3  Contracts for Government cartage.

    Contracts for Government cartage shall be procured by formally 
advertised solicitation for bids and award of contract or by negotiation 
in accordance with the appropriate provisions of the Federal Procurement 
Regulations, as supplemented by the special procurement requirements of 
the U.S. Customs Service.

[[Page 739]]



              Subpart B_Cartage of Packages for Examination



Sec. 125.11  Cartage for examination in public stores.

    (a) Government cartage. The cartage of merchandise in Customs 
custody designated for examination at the public stores shall be done by 
a licensed customhouse cartman or a bonded carrier under contract or 
other specific authority for that purpose.
    (b) Where there is no contract for Government cartage. At ports 
where there is no contract for Government cartage in effect, the cartage 
of packages designated for examination at the public stores shall be 
done by a licensed customhouse 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]



Sec. 125.12  Cartage for examination at importers' premises or other place.

    Merchandise designated for examination at an importer's premises or 
other place not in the charge of a Customs officer may be carted, 
lightered, or carried to any such place by the importer without a 
cartman's or lighterman's license, 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.



Sec. 125.13  Cartage of merchandise withdrawn from general order for regular 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 cartage shall be at the expense of the importer and 
shall be under the cartage arangements established at the port for 
hauling examination packages under the provisions of Sec. 125.11(a) and 
(b). Reimbursement of the cost of the cartage shall be collected from 
the importer prior to release of the merchandise from Customs custody.



Sec. 125.14  Cartage of unclaimed merchandise.

    Unclaimed merchandise shall be carted to the public stores or a 
bonded warehouse designated by the port director under the cartage 
arrangements established at the port for hauling examination packages 
under the provisions of Sec. 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]



                      Subpart C_Importers' Cartage



Sec. 125.21  Cartage other than for examination.

    Any licensed customhouse cartman, including an importer licensed to 
cart his own imported merchandise and a bonded carrier provided for in 
Sec. 112.2 of this chapter, at the expense of the importer or other 
party in interest, may transfer merchandise from the importing vessel or 
other conveyance to a bonded warehouse, from one vessel or conveyance to 
another, from one bonded warehouse to another, from the public stores to 
a bonded warehouse, from warehouse for transportation or for 
exportation, and from an internal revenue warehouse for exportation 
under the internal revenue laws without payment of tax. Foreign trade 
zone operators, bonded warehouse proprietors, container station 
operators and centralized examination station operators may engage in 
limited cartage or lighterage under the conditions specified in Sec. 
112.2 of this chapter. Nothing in this section shall apply to the 
cartage of examination packages to the place of examination.

[T.D. 94-81, 59 FR 51495, Oct. 12, 1994]



Sec. 125.22  Designation of cartman or lighterman, or other bonded carrier.

    Importers and exporters shall designate on the entry and permit of 
bonded merchandise the bonded cartman, lighterman, or other bonded 
carrier as provided in Sec. 112.2 of this chapter by whom they wish 
their merchandise to

[[Page 740]]

be conveyed. An importer also may designate a foreign trade zone 
operator, bonded warehouse proprietor, container station operator or 
centralized examination station operator under the conditions specified 
in Sec. 112.2 of this chapter for limited cartage; if he does so, the 
importer must also designate 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 Customs officer placed in close proximity to the 
designation.

[T.D. 94-81, 59 FR 51495, Oct. 12, 1994]



Sec. 125.23  Failure to designate.

    If an importer does not cart his merchandise or designate a licensed 
customhouse cartman, other bonded carrier, foreign trade zone operator, 
bonded warehouse proprietor, container station operator or centralized 
examination station operator, as provided for in Sec. 112.2 of this 
chapter, for the purpose, it shall be carted by a bonded carrier or by a 
public store cartman authorized 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]



Sec. 125.24  Failure of designated cartman, lighterman or other bonded carrier to appear.

    The cartman, lighterman, other bonded carrier, foreign trade zone 
operator, bonded warehouse proprietor, container station operator or 
centralized examination station operator designated to convey the 
merchandise shall be present to take the merchandise when the Customs 
officer in charge is ready to send it. If the designated vehicle or 
lighter is not present, after waiting a reasonable time, such officer 
shall send the merchandise 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



Sec. 125.31  Documents used.

    When merchandise is carted or lightered to and received from a 
bonded 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 Summary, annotated ``Permit''.
    (c) Customs Form 7512--Transportation Entry and Manifest of Goods 
Subject to Customs Inspection and Permit.

[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]



Sec. 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 proprietor 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 acknowledging receipt of the merchandise as listed thereon. If 
the proprietor or his agent has been designated to carry the merchandise 
to his own bonded 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 
transportation to his own warehouse constitutes receipt into a bonded 
warehouse.

[T.D. 94-81, 59 FR 51496, Oct. 12, 1994]



Sec. 125.33  Procedure on receiving merchandise.

    (a) From public or bonded store. A receipt 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,

[[Page 741]]

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 Customs 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]



Sec. 125.34  Countersigning of documents and notation of bad order or discrepancy.

    When a cartman, lighterman, other bonded carrier, foreign trade zone 
operator, bonded warehouse proprietor, container station operator or 
centralized examination station operator, as provided for in Sec. 
112.2, receives merchandise remaining in Customs custody, he shall 
countersign the appropriate document in the space provided and shall 
note thereon any bad order or discrepancy. When available, the importing 
carrier's tally slip for the merchandise shall be attached to the 
delivery ticket which accompanies the merchandise while it is being 
carted or lightered in bond, for the use of Customs 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]



Sec. 125.35  Report of loss, detention, or accident.

    Any loss or detention of bonded merchandise, or any accident 
happening to a vehicle or lighter while carrying bonded merchandise 
shall be immediately reported by the cartman, lighterman, qualified 
bonded carrier, foreign trade zone operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator to the port director.

[T.D. 94-81, 59 FR 51496, Oct. 12, 1994]



Sec. 125.36  Inability to deliver merchandise.

    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 
inspector, 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



Sec. 125.41  Liability for cartage.

    (a) Liability of cartman, lighterman or bonded carrier. The cartman, 
lighterman, or bonded carrier conveying the merchandise, including 
merchandise covered by a TIR carnet which has not been ``taken on 
charge'' (see Sec. 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 operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator. A foreign trade zone operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator who picks up merchandise including 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 merchandise must 
be receipted as soon as it is picked up and must be delivered to either 
the respective foreign trade zone, bonded warehouse, container station 
or centralized examination station promptly after it is picked up in 
sound condition, or in no worse than the damaged condition noted on the 
delivery ticket, if damage is noted.

[T.D. 94-81, 59 FR 51496, Oct. 12, 1994]



Sec. 125.42  Cancellation of liability.

    The Fines, Penalties, and Forfeitures Officer, in accordance with 
delegated

[[Page 742]]

authority, may cancel liquidated damages incurred under the bond of the 
foreign trade zone operator, containing the bond conditions set forth in 
Sec. 113.73 of this chapter, or under the bond of the cartman, 
lighterman, bonded carrier, bonded warehouse operator, container station 
operator or centralized examination station operator on Customs Form 
301, containing the bond conditions set forth in Sec. 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 
appropriate under the circumstances. Application for cancellation of 
liquidated damages incurred shall be made in accordance with the 
provisions of part 172 of this chapter.

[T.D. 00-57, 65 FR 53575, Sept. 5, 2000]



PART 127_GENERAL ORDER, UNCLAIMED, AND ABANDONED MERCHANDISE--Table of Contents




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 Customs 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 Abandoned Merchandise Vesting in 
                               Government

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;
    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.



Sec. 127.0  Scope.

    This part sets forth regulations pertaining to general order 
merchandise, unclaimed merchandise, and abandoned merchandise, the 
storage and sale thereof, and the distribution of the proceeds from the 
sale thereof. Regulations 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



Sec. 127.1  Merchandise considered general order merchandise.

    Merchandise shall be considered general order merchandise when it is 
taken into the custody of the port director 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

[[Page 743]]

time provided by law or regulations prescribed by the Secretary of the 
Treasury.
    (b) Whenever entry is incomplete because of failure to pay estimated 
duties.
    (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 believes that any merchandise is not 
correctly 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 vehicle in which merchandise is 
imported, any merchandise is taken possession of by the port director 
after the expiration of 1 day after entry of the vessel or report of the 
vehicle.



Sec. 127.2  Withdrawal from general order for entry or exportation.

    (a) Exportation within 6 months from date of importation. 
Merchandise in general order may be exported without examination or 
appraisement if the merchandise 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 
transportation to any port of entry designated by the consignee.
    (b) After expiration of 6 months from date of importation. Entry for 
immediate transportation shall be permitted after the expiration of the 
6-month period only for the purpose of filing an entry for consumption 
at the port of destination.
    (c) Withdrawal of less than single general order lot. The withdrawal 
from general order of less than a single general order lot shall not be 
permitted except as provided for in Sec. 141.52 of this chapter.

[T.D. 74-114, 39 FR 12092, Apr. 3, 1974, as amended by T.D. 98-74, 63 FR 
51290, Sept. 25, 1998]



Sec. 127.4  General order period defined.

    The general order period is that period of time during which general 
order merchandise, as defined in Sec. 127.1, is not subject to sale. 
The general order period 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



Sec. 127.11  Unclaimed merchandise.

    Any entered or unentered merchandise (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 Customs custody for 6 months from the date 
of importation or a lesser period for special merchandise as provided by 
Sec. 127.28 (c), (d), and (h), and without all estimated duties and 
storage or other charges having been paid, shall be considered 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]



Sec. 127.12  Abandoned merchandise.

    (a) Involuntarily abandoned merchandise. The following shall be 
considered to be involuntarily abandoned merchandise:
    (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 Sec. 147.47 of this 
chapter.)
    (2) Any imported merchandise upon which any duties or charges are 
unpaid, remaining in a bonded warehouse beyond the 5-year warehouse 
period.
    (b) Voluntarily abandoned merchandise. The following merchandise 
shall be considered to be voluntarily abandoned merchandise and the 
property of the United States Government:
    (1) Merchandise which is taken possession 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 merchandise was imported.
    (2) Merchandise abandoned by the importer to the United States 
within 30

[[Page 744]]

days after entry in the case of merchandise 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 warehouse 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]



Sec. 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 merchandise, will be responsible for the transportation 
and storage of unclaimed and abandoned merchandise, upon due 
notification to the proprietor of the warehouse by the arriving carrier 
(or other party to whom the carrier has transferred the merchandise 
under a Customs-authorized permit to transfer or in-bond entry), as 
provided in Sec. Sec. 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 merchandise requires specialized 
storage facilities 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]



Sec. 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 remaining in Customs custody after the expiration of the 
bond period in the case of merchandise entered for warehouse, or after 
the expiration of the general order period, as defined in Sec. 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 official use as provided in subpart E of this part, destroyed, or 
otherwise disposed of as authorized by the Commissioner 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) Proprietor responsibility. If 
the port director concludes that merchandise in general order has no 
commercial value or is otherwise unsalable and cannot be disposed of at 
public auction (see Sec. 127.29), and that its destruction is 
warranted, the warehouse proprietor must assume responsibility under 
bond, including the expense, for destroying the merchandise (see Sec. 
113.63(c)(3) of this chapter). The port director will authorize such 
destruction on Customs Form (CF) 3499, or on a similar Customs document 
as designated by the port director or an electronic equivalent as 
authorized by Customs.
    (ii) Notice of destruction. Before destroying the merchandise, the 
warehouse proprietor must first make a reasonable effort under bond (see 
Sec. 113.63(b) and (c) of this chapter), to identify and inform the 
importer (owner) or consignee regarding the intended destruction of the 
merchandise. When the appropriate party is identified, notice of 
destruction will be provided to the party on Customs Form (CF) 5251, 
appropriately modified, or other similar

[[Page 745]]

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 consumption at any time prior to the sale upon 
payment of the duties, any internal revenue tax, and all charges and 
expenses 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 proprietor:
    (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 remains 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



Sec. 127.21  Time of sale.

    All unclaimed and abandoned merchandise will be sold at the first 
regular 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]



Sec. 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 consignee 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]



Sec. 127.23  Appraisement of merchandise.

    Before unclaimed and abandoned merchandise is offered for sale, it 
shall be appraised in accordance with sections 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 condition at the time 
and place of examination, whether or not it has depreciated or 
appreciated in value since the date of exportation. The quantity of 
merchandise in each lot shall be reported.



Sec. 127.24  Notice of sale.

    Notice of sale shall be sent on Customs 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.



Sec. 127.25  Advertisement of sale.

    (a) Regular advertising. Except as prescribed in Sec. 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 
circulation 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 authorized on the standard form provided for that 
purpose. The notice shall designate the place where catalogs may be 
obtained and a reasonable opportunity

[[Page 746]]

to inspect the merchandise shall be afforded prospective purchasers.
    (b) Where proceeds are insufficient to pay expenses and duties. If 
the port director 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 proper place 
for the time specified in paragraph (a) of this section.



Sec. 127.26  Catalogs.

    Catalogs, if used shall specify the description 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 Government does not guarantee quality or 
value and that no allowance will be made for any deficiency found after 
sale.



Sec. 127.27  Conduct of sale.

    Sales may be conducted by the port director, any employee designated 
by him or by a public auctioneer.



Sec. 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 inspected by a representative of the 
Department of Agriculture to ascertain whether they comply with the 
requirements of the law and regulations of that Department. If found not 
to comply with such requirements, they shall be immediately destroyed.
    (b) Pesticides and devices. Pesticides and devices intended for 
trapping, destroying, repelling or mitigating any pest or any other form 
of plant or animal life (other than man or other than bacteria, virus, 
or other microorganism on or in living man or other living animals) 
shall be inspected by a representative of the Environmental Protection 
Agency to ascertain whether they comply with the requirements of the law 
and regulations of that agency. If found not to comply with such 
requirements, they shall be immediately destroyed.
    (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 warehouse 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 depreciate and sell for an amount insufficient to 
pay the duties, storage, and other charges if allowed to remain in 
general order for 6 months.
    (e) Tobacco and tobacco products. Tobacco articles and tobacco 
materials as defined in 26 U.S.C. 5702(j) and (k), may be sold for 
domestic consumption only if they will bring an amount sufficient to pay 
the expenses of sale as well as the internal revenue tax. If these 
articles cannot be sold for domestic consumption in accordance with the 
foregoing conditions, they shall be destroyed unless they can be 
advantageously sold for export from continuous Customs custody or unless 
the Commissioner of Customs has authorized 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.
    (f) Distilled spirits, wines, and malt beverages. All unclaimed and 
abandoned distilled spirits, wines, and malt beverages may be sold for 
domestic consumption 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 destroyed unless 
they can be advantageously sold for export from continuous Customs 
custody or unless the Commissioner of Customs has authorized other 
disposition to be made under the law. The sale must be conducted in 
accordance with the alcoholic beverage

[[Page 747]]

laws of the state in which the sale is held.
    (g) Other merchandise subject to internal 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 internal revenue tax. If, in the opinion of the 
port director, it is insufficient in value to justify its sale, the 
merchandise shall be destroyed, unless it can be advantageously sold for 
export from continuous Customs custody or unless the Commissioner of 
Customs has authorized 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 
remaining on the dock which, in the opinion of the port director, will 
not sell for enough to pay the cost of cartage 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, mixtures, and articles 
containing a chemical 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 
comply with these requirements they shall be exported or otherwise 
disposed of immediately in accordance with the provisions of Sec. Sec. 
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]



Sec. 127.29  Unsold merchandise.

    Merchandise offered for sale but not sold shall be included in the 
next regular sale of unclaimed and abandoned merchandise. If the port 
director is satisfied that such merchandise is unsalable or of no 
commercial value, it shall be destroyed.



                       Subpart D_Proceeds of Sale



Sec. 127.31  Disposition of proceeds.

    From the proceeds of sale of merchandise 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 
insufficient to pay such charges fully, they shall be paid pro rata. 
(For merchandise entered for warehousing, see Sec. 127.32 of this 
subpart.)
    (d) Duties.
    (e) Any other charges due the United States in connection with the 
merchandise.
    (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.



Sec. 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 following 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 proceeds are insufficient to pay them fully) and any cartage 
charges shall be paid last.
    (b) When such merchandise was warehoused in a bonded warehouse, 
expenses of storage, cartage, and labor shall be paid last (pro-rated 
when proceeds are insufficient to pay them fully).



Sec. 127.33  Chargeable duties.

    The duties chargeable on any merchandise within the purview of this 
subpart shall be assessed on the appraised dutiable value at the rate of 
duty chargeable at the time the merchandise 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

[[Page 748]]

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]



Sec. 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.



Sec. 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 expenses shall be apportioned pro rata on the amounts received for 
different lots sold.



Sec. 127.36  Claim for surplus proceeds of sale.

    (a) Filing of claim. Claims for the surplus proceeds of the sale of 
unclaimed or abandoned merchandise shall be filed with the port director 
at whose direction the merchandise was sold. The following shall be used 
in filing a claim:
    (1) Unclaimed merchandise. Claims for surplus proceeds of the sale 
of unclaimed 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 photostatic or certified copy of the 
original bill of lading may be submitted in lieu of the original bill of 
lading.
    (2) Involuntarily abandoned merchandise--(i) Warehouse goods deemed 
abandoned. Claims for surplus proceeds of sale of warehouse goods deemed 
involuntarily 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 abandoned. Claims for surplus 
proceeds of sale of trade fair articles deemed involuntarily 
(mandatorily) abandoned under section 4 of the Trade Fair Act of 1959 
(19 U.S.C. 1753(c)), shall be supported by the original bill of lading. 
If only part of a shipment is involved, either a photostatic copy or 
certified copy of the original bill of lading may be submitted in lieu 
of the original bill of lading. (See Sec. 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 proceeds of sale 
shall be paid to him pursuant 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 with all pertinent documents and information available to the port 
director shall be forwarded to the Commissioner of Customs for 
instructions or for referral to the General Accounting Office for direct 
settlement.



Sec. 127.37  Insufficient proceeds.

    (a) Warehouse merchandise deemed involuntarily abandoned. If the 
proceeds of sale of warehouse merchandise deemed involuntarily abandoned 
are insufficient to pay the duties after payment 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 Sec. 113.62 of this chapter.
    (b) Unclaimed merchandise and trade fair articles involuntarily 
abandoned. If the proceeds of sale of unclaimed merchandise or trade 
fair articles involuntarily abandoned are insufficient to pay the 
charges and duties, the consignee 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 merchandise has been made, the merchandise shall be regarded 
as shipped to the consignee without his consent and no

[[Page 749]]

effort shall be made to collect any deficiency 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.



Sec. 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 Sec. 127.11 of this part, at which time merchandise having 
thus remained in Customs custody is considered as unclaimed and 
abandoned, the port director, with the concurrence of the Assistant 
Commissioner, Office of Field Operations, may, in lieu of sale of the 
merchandise 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 vesting 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 
merchandise 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 paragraph (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 representative or agent, if 
merchandise is consigned to order or the consignee cannot be 
ascertained; and
    (4) Any other known interested parties.
    (c) Appraisement of merchandise. Before title to unclaimed and 
abandoned merchandise is vested in the United States, the merchandise 
will be appraised in accordance with section 402, Tariff Act of 1930, as 
amended (19 U.S.C. 1401a).



Sec. 127.42  Disposition of merchandise owned by Government.

    (a) Disposition. If title to any unclaimed and abandoned merchandise 
vests in the United States under Sec. 127.41, the merchandise may be 
retained by Customs for its official use, or in Customs discretion, the 
merchandise may be transferred to any other Federal, state or local 
agency, destroyed or disposed of otherwise.
    (b) Payment of charges and expenses. All transfer and storage 
charges or expenses accruing on retained or transferred merchandise will 
be paid by the receiving agency. Such transfer and storage charges or 
expenses will include those accruing with respect to the merchandise 
while subject to general order.



Sec. 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 petition may be filed with the 
port director at whose direction the title to the merchandise was vested 
in the United States. If the party received notice under Sec. 
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 received, the party 
must file the petition within 30 calendar days of learning of

[[Page 750]]

the vesting but not later than 90 calendar days from the vesting.
    (c) Evidence required. The petition must show the party's title to 
or interest in the merchandise, and be supported, as appropriate, with 
the original bill of lading, bill of sale, contract, mortgage, or other 
satisfactory documentary 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 established 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 received 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 Sec. 127.36 of this part). In 
determining the amount that may have been payable 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 
Sec. 127.41(c), will be taken into consideration. By virtue of the 
authority delegated to the port director in this matter, any payment 
made as provided under this paragraph in connection 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 decision of the Assistant Commissioner, Office of 
Finance, with respect to any petition filed under this section will be 
final and conclusive on all parties.



PART 128_EXPRESS CONSIGNMENTS--Table of Contents




Sec.
128.0 Scope.

                            Subpart A_General

128.1 Definitions.

                        Subpart B_Administration

128.11 Express consignment carrier application process.
128.12 Application approval/denial and suspension 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.



Sec. 128.0  Scope.

    This part sets forth requirements and procedures for the clearance 
of imported merchandise carried by express consignment operators and 
carriers, including couriers, under special procedures.



                            Subpart A_General



Sec. 128.1  Definitions.

    For the purpose of this part the following definitions shall apply:
    (a) Express consignment operator or carrier. An ``express 
consignment operator or carrier'' is an entity operating in any mode or 
intermodally moving cargo by special express commercial service under 
closely integrated administrative control. Its services are offered to 
the public under advertised, reliable 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 express consignment 
operator or carrier whether manifested, accompanied, or unaccompanied.
    (c) Courier shipment. A ``courier shipment'' is an accompanied 
express consignment shipment.

[[Page 751]]

    (d) Hub. A ``hub'' is a separate, unique, single purpose facility 
normally operating outside of Customs operating hours approved by the 
port director for entry filing, examination, and release of express 
consignment shipments.
    (e) 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.
    (f) Closely integrated administrative control. The term ``closely 
integrated administrative control'' means operations must be 
sufficiently integrated at both ends of the service (i.e., pick-up and 
delivery) so that the express consignment 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 indicated by substantial common ownership between the local 
company and the foreign affiliate and/or by a very close contractual 
relationship between the local company and its foreign affiliate(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



Sec. 128.11  Express consignment carrier application process.

    (a) Facility application. Requests for approval of an express 
consignment carrier or hub facility must be in writing to the port 
director.
    (b) Application contents. The application for approval of an express 
consignment carrier or hub facility must include the following:
    (1) A full description of the international cargo facilities, 
including blueprints, floor plans and facility location(s).
    (2) A statement of the general character of the express consignment 
operations that includes, in the case of an express consignment carrier 
facility, a list of all carriers or operators that intend to use the 
facility.
    (3) An estimate of volume of transactions by:
    (i) Formal entries.
    (ii) Informal entries.
    (iii) Shipments not requiring entry (see Sec. 128.23 of this part).
    (4) An application processing fee, as set forth in Sec. 128.13.
    (5) A list of principal company officials 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 processed in the Customs Automated 
Commercial System (ACS) and associated modules, including, but not 
limited to, Automated Broker Interface (ABI), Automated Manifest System 
(AMS), Cargo Selectivity, and Statement Processing.
    (ii) Sign and implement a narcotics enforcement agreement with U.S. 
Immigration 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 consignment carrier facility, 
provide to Customs and Border Protection, Revenue Division/Attention: 
Reimburs-ables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 
46278, at the beginning of each calendar quarter, 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 prescribed in Sec. 
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 submitted in writing to the port director for approval 
prior to the implementation thereof and must contain the information 
specified in paragraph (b) of this section. Failure to obtain CBP 
approval by an express consignment operator or carrier for any 
modifications to the international cargo processing area

[[Page 752]]

may result in the suspension of approval as an express consignment 
facility or hub and the procedures for processing 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 Dec. 07-29, 72 FR 31725, June 8, 2007]



Sec. 128.12  Application approval/denial and suspension of operating privileges.

    (a) Notice. (1) The port director shall promptly notify the 
applicant in writing of the decision to approve or deny the application 
to establish an express consignment carrier or hub facility or to 
suspend or revoke operating privileges at an existing facility.
    (2) The notice shall specifically state the grounds for denial or 
for the proposed suspension or revocation.
    (b) Appeal. The express consignment entity may file a written notice 
of appeal 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 responses 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 
administrative 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 Customs or his designee within 30 days following the 
express consignment entity's request. The entity shall be notified of 
the time and place of the hearing at least 5 days prior thereto. The 
express consignment entity may be represented by counsel at such 
hearing, and all evidence and testimony of witnesses in such 
proceedings, including substantiation of the allegations and the 
responses thereto shall be presented, with the right of cross-
examination to both parties. A stenographic record of any such 
proceeding shall be made and a copy thereof shall be delivered to the 
express consignment entity. At the conclusion of the hearing, all papers 
and the stenographic record of the hearing shall promptly be transmitted 
to the Commissioner of Customs or his designee together with a 
recommendation for final action. The express consignment entity may 
submit in writing additional views or arguments 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 decision in 
writing, stating the reasons therefor. Such decision shall be served on 
the express consignment entity, and shall be considered the final 
administrative action.



Sec. 128.13  Application processing fee.

    Each operator of an express consignment hub or carrier facility will 
be charged a fee to establish, alter, or relocate such facility which 
shall be determined 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 Federal 
Register and ``Customs Bulletin''.



                          Subpart C_Procedures



Sec. 128.21  Manifest requirements.

    (a) Additional information. Express consignment operators and 
carriers shall provide the following manifest information in advance of 
the arrival of all cargo, including all articles for which an entry is 
not required as noted in Sec. 128.23 (which shall be listed separately 
and their entry status noted), in addition to the information and 
documents otherwise required by this chapter:
    (1) Country of origin of the merchandise.
    (2) Shipper name, address and country.
    (3) Ultimate consignee name and address.
    (4) Specific description of the merchandise, and under the following 
conditions, the Harmonized Tariff Schedule of the United States (HTSUS) 
subheading number:

[[Page 753]]

    (i) If the merchandise is required to be formally entered as 
provided in Sec. 128.25; or
    (ii) If the merchandise is eligible for, and is entered under, the 
informal entry procedures as provided in Sec. 128.24, but may not be 
passed free of duty and tax as consisting of a shipment of merchandise 
imported by one person on one day having a fair retail value in the 
country of shipment not exceeding $200, as provided in Sec. 128.24(e).
    (5) Quantity.
    (6) Shipping weight.
    (7) Value.
    (b) Sorting of cargo. If the shipments are physically sorted by 
country of origin of the merchandise when they arrive 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]



Sec. 128.22  Bonds.

    Each express consignment operator or carrier must be recognized by 
Customs as an international carrier and approved as a carrier of bonded 
merchandise, and shall file bonds on Customs Form 301, containing the 
bond conditions set forth in Sec. Sec. 113.62, 113.63, 113.64 and 
113.66 of this chapter, to insure compliance with Customs requirements 
relating to the importation and entry of merchandise as well as the 
carriage and custody of merchandise under Customs control.



Sec. 128.23  Entry requirements.

    (a) General rule. Except as provided in paragraph (c) of this 
section, all articles carried by an express consignment entity shall be 
entered by a person with the right to file entry.
    (b) Procedures--(1) General. All express consignment entities 
utilizing the procedures in this part shall comply with the requirements 
of the Customs 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 enhancements of ACS.
    (2) Entry number. All entry numbers must be furnished to Customs in 
a Customs approved bar coded readable format in order to assist in the 
processing of express consignment cargo under the Customs Automated 
Commercial System (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 requirements of Sec. 
128.21(a) of this part have been met.
    (c) Exception. Articles specifically exempt from entry by Sec. 
141.4(b) of this chapter need not satisfy the general rule as set forth 
in paragraph (a) of this section.

[T.D. 94-51, 59 FR 30294, June 13, 1994]



Sec. 128.24  Informal entry procedures.

    (a) Eligibility. Informal entry procedures may generally be used for 
shipments not exceeding $2,000 in value which are imported by express 
consignment operators and carriers. Individual shipments valued at 
$2,000 or less may be consolidated on one entry. Such procedures, 
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 informal 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 importations under the special procedures contained in this part, 
shall be submitted prior to the commencement of hub or express 
consignment carrier facility operations. The party who may make entry 
under Sec. 143.26 of this chapter may submit a copy of the invoice or 
the advance manifest as described in Sec. 128.21 in lieu of other 
control documents.
    (c) Alternative procedure. The party who may make entry under Sec. 
143.26 of this chapter may be required to submit an individual Customs 
Form 3461 covering the eligible shipments on a daily

[[Page 754]]

basis or by flight basis. Commercial invoices 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 
notation shall be placed on the Customs Form 3461 that the entry covers 
multiple shipments.
    (d) Entry summary. An entry summary (Customs Form 7501) must be 
presented 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 shipment is valued at $200 or less.
    (e) Shipments valued at $200 or less. Shipments valued at $200 or 
less meeting the requirements of Sec. 10.151 of this chapter shall be 
passed free of duty and tax. Such shipments must be segregated on the 
manifest from shipments valued at more than $200 if an advance manifest 
is used as the entry document, as provided for in Sec. 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) 
subheading number (see Sec. 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]



Sec. 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 
Sec. 128.24) and any shipment for which the informal entry procedures 
may not be used (see Sec. 128.24).

[T.D. 94-51, 59 FR 30295, June 13, 1994]



PART 132_QUOTAS--Table of Contents




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 delivery; entry of merchandise 
          before presenting entry summary for consumption; permits of 
          delivery.
132.15 Export certificate for beef subject to tariff-rate quota.
132.16 [Reserved]
132.17 Export certificate for sugar-containing products subject to 
          tarriff-rate quota.
132.18 License for certain worsted wool fabric 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.



Sec. 132.0  Scope.

    This part sets forth rules and procedures applicable to quotas 
administered by Headquarters, U.S. Customs Service.



                      Subpart A_General Provisions



Sec. 132.1  Definitions.

    When used in this part, the following terms shall have the meaning 
indicated:
    (a) Absolute (or quantitative) quotas. ``Absolute (or quantitative) 
quotas''

[[Page 755]]

are those which permit a limited number of units of specified 
merchandise to be entered or withdrawn for consumption during specified 
periods. Once the quantity permitted under the quota is filled, no 
further entries or withdrawals for consumption of merchandise 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 withdrawn for consumption at a 
reduced duty rate during a specified period.
    (c) [Reserved]
    (d) Presentation. ``Presentation'' is the delivery in proper form to 
the appropriate Customs officer of:
    (1) An entry summary for consumption, which shall serve as both the 
entry and the entry summary, with estimated duties attached (see Sec. 
141.0a(b)); or
    (2) An entry summary for consumption, 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 
(pursuant to Sec. 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 absolute 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]



Sec. 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 country of exportation, the period or periods the quota is open and 
the type of quota. Quotas are divided into two categories: Quotas 
administered directly by Headquarters, U.S. Customs Service, and quotas 
administered by other agencies which are enforced by Headquarters, U.S. 
Customs Service, and which may require special procedures or special 
documentation in accordance with the regulations and directives of the 
particular agency involved.
    (c) Strict construction employed. The terms of a Presidential 
proclamation, Executive order, or legislative enactment establishing a 
quota, and the regulations implementing the quota, must be strictly 
complied with.



Sec. 132.3  Observation of official hours.

    An entry summary for consumption or a withdrawal for consumption for 
quota-class merchandise shall be presented only during official office 
hours, except as provided in Sec. Sec. 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]



Sec. 132.4  Quota quantity entry limits.

    At the opening of the quota no importer shall be permitted to 
present entries or withdrawals for consumption of quota-class 
merchandise for a quantity in excess of the quantity admissible under 
the applicable quota.

[[Page 756]]



Sec. 132.5  Merchandise imported in excess of quota quantities.

    (a) Absolute quota merchandise. Absolute quota merchandise imported 
in excess 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. Merchandise 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 either 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 warehouse, or it may be exported or destroyed 
under Customs supervision.



Sec. 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



Sec. 132.11  Quota priority and status.

    (a) Determination of quota priority and status. Quota priority and 
status are determined as of the time of presentation of the entry 
summary for consumption, or withdrawal for consumption, in proper form 
in accordance with Sec. 132.1(d).
    (b) Documentation and deposit of duties in proper form required. 
Merchandise covered by an entry summary for consumption, 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 consumption in proper form; or
    (2) The entry summary for consumption is in proper form, and the 
entry/entry summary information and a valid scheduled statement date 
(pursuant to Sec. 24.25 of this chapter) have been successfully 
received by Customs via the Automated Broker Interface.

See Sec. Sec. 141.4, 141.63, 141.68, 141.69, and 141.101 of this 
chapter.
    (c) Informal entries. Mail entries or informal entries shall be 
regarded as presented 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 attach to merchandise in a quota period by reason of the 
presentation of an entry or withdrawal for consumption 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]



Sec. 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 summary for quota 
purposes shall be the time of delivery in proper form of:
    (1) An entry summary for consumption, which serves as both the entry 
and the entry summary, with estimated duties attached; or
    (2) An entry summary for consumption, 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 Sec. 132.1(d)(2); payment must be subsequently made by 
the statement processing method as set forth in Sec. 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, without estimated duties attached, may be

[[Page 757]]

submitted for preliminary review before the merchandise arrives within 
the limits of the port where entry is to be made. In that case, the time 
of presentation of the entry summary for consumption shall be the time 
estimated duties are deposited after the importing carrier arrives 
within the port limits.
    (c) Failure to use statement processing method. If presentation is 
chosen to be made pursuant to Sec. 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 consumption with 
estimated duties attached as described in Sec. 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]



Sec. 132.12  Procedure on opening of potentially filled quotas.

    (a) Preliminary review before opening. When it is anticipated that a 
quota will be filled at the opening of the quota period, entry summaries 
for consumption, or withdrawals for consumption, with estimated duties 
attached, shall not be presented before 12 noon Eastern Standard Time in 
all time zones. However, an entry summary for consumption, 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 documents 
before opening will not accord the merchandise quota priority or status.
    (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 consumption, or withdrawals for consumption, 
presented in proper form (including those submitted for review before 
opening of the quota period if accompanied by the deposit of estimated 
duties) shall be considered to have been presented simultaneously.
    (c) Proration of quantities. (1) The quantities on all entry 
summaries for consumption, or withdrawals for consumption, submitted 
simultaneously shall be prorated by Headquarters against the quota 
quantity admissible to determine the percentage to be allocated to each 
importer under the quota. Merchandise in excess of the quota shall be 
disposed of in accordance with Sec. 132.5.
    (2) In the event a quota is prorated, entry summaries for 
consumption, or withdrawals for consumption, with estimated duties 
attached, shall be returned to the importer for adjustment. The time of 
presentation for quota purposes, in that event, shall be the exact 
moment of the opening of the quota provided:
    (i) An adjusted entry summary for consumption, or withdrawal for 
consumption, with estimated duties attached, is deposited within 5 
working days after Headquarters authorizes release 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]



Sec. 132.13  Quotas after opening.

    (a) Procedure when nearing fulfillment. To secure for each importer 
the rightful 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) Tariff-rate. When instructed by 
Headquarters, the port director shall require an importer to present an 
entry summary for consumption, with estimated 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 importer 
any excess duties paid. This section does not prohibit an importer

[[Page 758]]

from obtaining release of the merchandise under the immediate delivery 
procedure. If an importer desires to enter only that quantity entitled 
to the quota rate, he may request that the merchandise not be released 
from Customs custody until Headquarters has determined the quantity 
entitled to the quota rate.
    (ii) Absolute. Except as provided for in Sec. 142.21 (e)(2) and (g) 
of this chapter, absolute quota merchandise shall not be released under 
the immediate delivery procedure. An entry summary for consumption, with 
estimated duties attached, setting forth the quantity desired 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 determined that entry summaries 
for consumption or withdrawals for consumption 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 withdrawals for consumption provided:
    (A) An adjusted entry summary for consumption, or withdrawals for 
consumption, with estimated duties attached, is deposited within 5 
working days after Headquarters authorizes release 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 withdrawal for consumption is 
presented at a port of entry must be indicated on the document by a 
method deemed acceptable by Customs. The appropriate Customs officer 
shall report this information to Headquarters.
    (b) Closing of the quota. Except as provided by Sec. 132.12, at the 
closing of a quota all entries or withdrawals for consumption which have 
acquired quota status due to priority of presentation shall be entitled 
to quota benefits. 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 accordance with Sec. 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]



Sec. 132.14  Special permits for immediate delivery; entry of merchandise before presenting entry summary for consumption; permits of delivery.

    (a) Effect of issuance of special permit for immediate delivery or 
filing entry documentation before presentation of entry summary--(1) 
Requirements for release. Quota-class merchandise shall not be released 
upon filing entry documentation before the proper presentation of an 
entry summary for consumption, or a withdrawal for consumption, pursuant 
to Sec. 132.1 of this part. However, quota-class merchandise may be 
released under a special permit for immediate delivery in accordance 
with Sec. 142.21(e) of this chapter.
    (2) Effect of release under immediate delivery. Release of quota-
class merchandise under a special permit for immediate delivery before 
proper presentation of an entry summary for consumption, or a withdrawal 
for consumption, pursuant to Sec. 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. Inadvertent 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 consumption, pursuant to Sec. 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 release--(i) Quota nearing 
fulfillment. If quota-class merchandise is released inadvertently under 
a special permit for immediate delivery, or under entry documentation, 
before the proper presentation of an entry summary for consumption, or a 
withdrawal for consumption, pursuant to Sec. 132.1 of this

[[Page 759]]

part, and the quota is nearing fulfillment:
    (A) The port director may demand the return to Customs custody of 
the released merchandise in accordance with Sec. 141.113 of this 
chapter;
    (B) The port director shall require the timely presentation of the 
entry summary for consumption, or a withdrawal for consumption, with the 
estimated duties attached;
    (C) The port director may assess liquidated damages under the bond 
on Customs Form 301, containing the basic importation and entry bond 
conditions set forth in Sec. 113.62 of this chapter 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 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 consumption, 
or the withdrawal for consumption, with estimated duties attached, is 
not presented timely; and
    (D) The Fines, Penalties, and Forfeitures 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 importer 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 attached, is presented timely.
    (ii) Quota not nearing fulfillment. If quota-class merchandise is 
released inadvertently under a special permit for immediate delivery, or 
under entry documentation, before the proper presentation of an entry 
summary for consumption, or a withdrawal for consumption, pursuant to 
Sec. 132.1 of this part, and the quota is not nearing fulfillment:
    (A) The port director shall require the timely presentation of the 
entry summary for consumption, or a withdrawal for consumption, with 
estimated duties attached;
    (B) The port director may assess liquidated damages under the bond 
on Customs Form 301, containing the basic importation and entry bond 
conditions set forth in Sec. 113.62 of this chapter 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 estimated duties 
attached; or
    (2) If the entry summary for consumption, or the withdrawal for 
consumption with estimated duties attached, is not presented timely; and
    (C) The Fines, Penalties, and Forfeitures 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 summary for consumption, or 
withdrawal for consumption, with estimated duties attached, is presented 
timely.
    (b) Permit of delivery--(1) Effect of filing. The issuance of a 
permit of delivery 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 determination of the quota status of the merchandise.
    (ii) Tariff-rate, quota merchandise. A permit delivery for 
merchandise subject to a tariff-rate quota shall not be issued before a 
determination of the quota status of the merchandise unless

[[Page 760]]

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]



Sec. 132.15  Export certificate for beef subject to tariff-rate quota.

    (a) Requirement. In order to claim the in-quota tariff rate of duty 
on beef, defined in 15 CFR 2012.2(a), that is the product of a 
participating country, defined 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 consumption. The importer must 
record the unique identifying number of the export certificate for the 
beef on the entry summary or warehouse withdrawal 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 following 
order:
    (1) The last digit of the year for which the export certificate is 
in effect;
    (2) The 2-digit ISO country of origin code from Annex B of the HTSUS 
which identifies the participating country (see Sec. 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 certificate to Customs--(1) 
Retention. The export certificate must be retained by the importer for a 
period of at least 5 years from the date of entry, or withdrawal from 
warehouse, for consumption (see Sec. 163.4(a) of this chapter).
    (2) Submission to Customs. The importer shall submit a copy of the 
export certificate to Customs upon request.

[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]



Sec. 132.16  [Reserved]



Sec. 132.17  Export certificate for sugar-containing products subject to tariff-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 importer must possess a valid export 
certificate 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 identifier of the 
export certificate for these products on the entry summary or warehouse 
withdrawal for consumption (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 identifiable number, this unique identifier 
must consist of 8 characters in any alpha/numeric combination.
    (c) Retention and production of certificate to Customs. The export 
certificate is subject to the recordkeeping requirements of part 163 of 
this chapter (19 CFR part 163). Specifically, the certificate must be 
retained for a period of 5 years in accordance with Sec. 163.4(a) of 
this chapter, and must be made available to Customs upon request in 
accordance with Sec. 163.6(a) of this chapter.

[T.D. 00-7, 65 FR 5431, Feb. 4, 2000]



Sec. 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,

[[Page 761]]

or a written authorization from the licensee, 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 license 
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 worsted wool fabric is suitable for use in making 
suits, suit-type jackets, or trousers, as required under these 
subheadings.
    (c) Validity of license--(1) License number. To be valid, the 
license, or written authorization issued under the license and including 
its unique control number, must meet the requirements of 15 CFR 335.5, 
and with respect to the requirement 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 
following 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 assigned to the license by the Department 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 during 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 
written authorization must be retained for a period of 5 years in 
accordance with Sec. 163.4(a) of this chapter, and must be made 
available to Customs upon request in accordance with Sec. 163.6(a) of 
this chapter.

[T.D. 01-35, 66 FR 21666, May 1, 2001]



        Subpart C_Mail Importation of Absolute Quota Merchandise



Sec. 132.21  Regulations applicable.

    In addition to the regulations applicable to all mail importations 
(see part 145 of this chapter), the regulations in this subpart shall 
apply to mail importations of absolute quota merchandise.



Sec. 132.22  When quota is filled.

    Any packages containing merchandise subject to an absolute quota 
which is filled shall be returned to the postmaster for return to the 
sender immediately as undeliverable mail. The addressee will be notified 
on Customs Form 3509 or in any other appropriate manner that entry has 
been denied because the quota is filled.



Sec. 132.23  Partial release procedure.

    (a) Notification of quota restrictions. If because of quota 
restrictions, a mail importation cannot be released, the director of the 
port of destination shall notify the addressee on Customs Form 3509 of 
the procedure required by paragraph (b) of this section, and shall 
inform the addressee that upon return of the Acknowledgement of Delivery 
by Postal Service, the packages admissible 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 appears that the absolute quota will reopen in less than 
30 days.
    (b) Acknowledgement of delivery. An Acknowledgement of Delivery by 
Postal Service shall be sent to the addressee. He shall be advised that 
if he desires to secure release of less than the total number of 
packages of the

[[Page 762]]

merchandise, the Acknowledgement of Delivery by Postal Service must be 
signed by him and returned to the port director. Such Acknowledgment of 
Delivery 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___________________________________________________________
________________________________________________________________________
(state number) packages mailed to me by ------------------------ (name 
of sender) of ---------------------------- (address) on ---------------- 
(date of mailing), are subject to quota restrictions under which only a 
portion 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 importation at one time, an Acknowledgment 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 expenses of repacking merchandise for shipment 
by mail to the addressee. The shipment shall be under Government frank 
without new postage.



Sec. 132.24  Entry.

    Unless a formal entry or entry by appraisement is required, a mail 
entry on Customs Form 3419 shall be issued and forwarded with the 
package to the postmaster for delivery to the addressee and collection 
of any duties in the same manner as for any other mail package subject 
to Customs treatment.



Sec. 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 intention 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--Table of Contents




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 application.
133.4 Effective date, term, and cancellation of trademark recordation 
          and renewals.
133.5 Change of ownership of recorded trademark.
133.6 Change in name of owner of recorded trademark.
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 application.
133.14 Publication of trade name recordation.
133.15 Term of CBP trade name recordation.

 Subpart C_Importations Bearing Registered and/or Recorded Trademark or 
                          Recorded Trade Names

133.21 Articles bearing counterfeit trademarks.
133.22 Restrictions on importation of articles bearing copying or 
          simulating trademarks.
133.23 Restrictions on importation of gray market articles.
133.24 Restrictions on articles accompanying 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 application.
133.34 Effective date, term, and cancellation of recordation.

[[Page 763]]

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 infringement.
133.45 [Reserved]
133.46 Demand for redelivery of released articles.

  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.



Sec. 133.0  Scope.

    This part provides for the recordation 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 procedures for the disposition of articles bearing prohibited 
marks or names, and copyrighted or piratical articles, including release 
to the importer in appropriate circumstances.



                   Subpart A_Recordation of Trademarks



Sec. 133.1  Recordation of trademarks.

    (a) Eligible trademarks. Trademarks registered by the U.S. Patent 
and Trademark Office under the Trademark Act of March 3, 1881, the 
Trademark Act of February 20, 1905, or the Trademark Act of 1946 (15 
U.S.C. 1051 et seq.) except those registered on the supplemental 
register under the 1946 Act (15 U.S.C. 1096), may be recorded with the 
U.S. Customs and Border Protection if the registration is current.
    (b) Notice of recordation and other action. Applicants and 
recordants will be notified of the approval or denial of an application 
filed in accordance with Sec. Sec. 133.2, 133.5, 133.6, and 133.7 of 
this subpart.

[T.D. 72-266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91-77, 56 FR 
46115, Sept. 10, 1991]



Sec. 133.2  Application to record trademark.

    An application to record one or more trademarks shall be in writing, 
addressed to the Intellectual Property Rights (IPR) & Restricted 
Merchandise Branch, U.S. Customs and Border Protection, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229, and shall include the 
following information:
    (a) The name, complete business address, and citizenship of the 
trademark owner or owners (if a partnership, the citizenship of each 
partner; if an association or corporation the State, country, or other 
political jurisdiction within which it was organized, incorporated, 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 business entity authorized or licensed to use the trademark and a 
statement as to the use authorized; and
    (d) The identity of any parent or subsidiary company or other 
foreign company under common ownership or control which uses the 
trademark abroad. For this purpose:
    (1) Common ownership means individual 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 common ownership.
    (e) Lever-rule protection. For owners of U.S. trademarks who desire 
protection

[[Page 764]]

against gray market articles on the basis of physical and material 
differences (see Lever Bros. Co. v. United States, 981 F.2d 1330 (D.C. 
Cir. 1993)), a description of any physical and material difference 
between the specific articles 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 summaries of physical and material 
differences for publication. CBP determination of physical and material 
differences may include, but is not limited to, considerations of:
    (1) The specific composition of both the authorized and gray market 
product(s) (including chemical composition);
    (2) Formulation, product construction, 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 explicitly defined factors that would 
likely result in consumer deception or confusion as proscribed under 
applicable law.
    (f) CBP will publish in the Customs Bulletin a notice listing any 
trademark(s) and the specific products for which gray market protection 
for physically and materially different products has been requested. CBP 
will examine the request(s) before issuing a determination whether gray 
market protection is granted. For parties requesting protection, the 
application for trademark protection will not take effect until CBP has 
made and issued this determination. If protection is granted, CBP will 
publish in the Customs Bulletin a notice that a trademark 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]



Sec. 133.3  Documents and fee to accompany application.

    (a) Documents. The application shall be accompanied by:
    (1) 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 applicant; and
    (2) Five copies of this certificate, or of a U.S. Patent and 
Trademark Office facsimile. The copies may be reproduced privately and 
shall be on paper approximately 8x10\1/2\ 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 accompanied by a fee of $190 for 
each 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 certificate of registration, without consideration of any 
class, or classes, also stated in parentheses) the fee for recordation 
shall be $190 for each class for which the applicant desires to record 
the trademark with the United States Customs Service. For example, to 
secure recordation of a trademark registered 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]



Sec. 133.4  Effective date, term, and cancellation of trademark recordation and renewals.

    (a) Effective date. Recordation of trademark and protection 
thereunder shall be effective on the date an application for recordation 
is approved, as shown on the recordation notice issued by the U.S. 
Customs and Border Protection instructing U.S. Customs and Border 
Protection Officers as to the terms and conditions of import protection 
appropriate.
    (b) Term. The recordation or renewal of an existing recordation of a 
trademark shall remain in force concurrently with the 20-year current 
registration period or last renewal thereof

[[Page 765]]

in the U.S. Patent and Trademark Office.
    (c) Cancellation of recordation. Recordation of a trademark with the 
U.S. Customs and Border Protection shall be canceled if the trademark 
registration 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]



Sec. 133.5  Change of ownership of recorded 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 Service, he shall apply therefor by:
    (a) Complying with Sec. 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 
application which have been previously recorded 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]



Sec. 133.6  Change in name of owner of recorded 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 & Restricted Merchandise Branch, CBP Headquarters, 
accompanied by:
    (a) 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 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 Protection. 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]



Sec. 133.7  Renewal of trademark recordation.

    (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 & Restricted Merchandise Branch not 
later than 3 months after the date of expiration of the current 20-year 
trademark registration issued by the U.S. Patent and Trademark Office. A 
timely application to renew a CBP recordation must include the 
following:
    (1) A status copy of the certificate of registration certified by 
the U.S. Patent and Trademark Office showing renewal 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 Sec. Sec. 133.5 and 133.6 of this part, and 
any change of addresses of owners or places of manufacture; 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 Border 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 request shall be in 
writing, addressed to the IPR & Restricted Merchandise Branch, and shall 
set forth the circumstances due to which application is delayed.
    (c) Untimely application. Failure of the trademark owner to submit a 
renewal 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

[[Page 766]]

section, shall deprive the trademark owner of the renewal process. A 
delinquent applicant will be required to apply anew to record the 
renewed trademark in accordance with the procedures and requirements of 
Sec. Sec. 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



Sec. 133.11  Trade names eligible for recordation.

    The name or trade style used for at least 6 months to identify a 
manufacturer 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 business name will 
be recorded unless convincing proof establishes that only a part of the 
complete name is customarily used.

[T.D. 72-266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 91-77, 56 FR 
46115, Sept. 10, 1991]



Sec. 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 address, and citizenship of the 
trade name owner or owners (if a partnership, the citizenship of each 
partner; if an association or corporation, the State, country, or other 
political jurisdiction within which it was organized, incorporated or 
created);
    (b) The name or trade style to be recorded;
    (c) The name and principal business address of each foreign person 
or business entity authorized or licensed to use the trade name and a 
statement as to the use authorized;
    (d) The identity of any parent or subsidiary company, or other 
foreign company under common ownership or control which uses the trade 
name abroad (see Sec. 133.2(d)); and
    (e) A description of the merchandise with which the trade name is 
associated.

[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]



Sec. 133.13  Documents and fee to accompany 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:
    (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 exclusive right to the use of 
such trade name in connection with the merchandise of that class or 
kind.
    (b) Fee. The application shall be accompanied 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 Protection.

[T.D. 72-266, 37 FR 20678, Oct. 3, 1972, as amended by T.D. 75-160, 40 
FR 28791, July 9, 1975]



Sec. 133.14  Publication of trade name recordation.

    (a) Notice of tentative recordation. Notice of tentative recordation 
of a trade name shall be published in the Federal Register and the 
Customs Bulletin. The notice shall specify a procedure and a time period 
within which interested parties may oppose the recordation.
    (b) Notice of final action. After consideration of any claims, 
rebuttals, and other relevant evidence, notice of final approval or 
disapproval of the application shall be published in the Federal 
Register and the Customs Bulletin.

[[Page 767]]



Sec. 133.15  Term of CBP trade name recordation.

    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 & Restricted Merchandise Branch may request the trade name owner 
to advise whether the name is still in use. The failure of a trade name 
owner to respond to such a request shall be regarded 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.



Sec. 133.21  Articles bearing counterfeit trademarks.

    (a) Counterfeit trademark defined. A ``counterfeit trademark'' is a 
spurious trademark that is identical to, or substantially 
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 violation of the customs laws.
    (c) Notice to trademark owner. When merchandise is seized under this 
section, 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 manufacturer;
    (6) The country of origin of the merchandise;
    (7) The name and address of the exporter; and
    (8) The name and address of the importer.
    (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 examination, testing, or 
other use in pursuit of a related private civil remedy for trademark 
infringement. 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 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 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 (damaged/destroyed/lost) during examination, testing, or 
other use.''
    (e) Failure to make appropriate disposition. Unless the trademark 
owner, within 30 days of notification, provides written consent to 
importation of the articles, exportation, entry after obliteration of 
the trademark, or other appropriate disposition, the articles shall be 
disposed of in accordance with Sec. 133.52, subject to the importer's 
right to petition for relief from the forfeiture under the provisions of 
part 171 of this chapter.



Sec. 133.22  Restrictions on importation of articles bearing copying or simulating trademarks.

    (a) Copying or simulating trademark or trade name defined. A 
``copying or simulating'' 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

[[Page 768]]

simulating mark or name with the recorded mark or name.
    (b) Denial of entry. Any articles of foreign or domestic manufacture 
imported 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 provided in Sec. 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 examination, to permit the importer to establish that any of 
the following circumstances are applicable:
    (1) The objectionable mark is removed or obliterated as a condition 
to entry in such a manner as to be illegible and incapable of being 
reconstituted, for example by:
    (i) Grinding off imprinted trademarks 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 consent to an importation of 
articles otherwise subject to the restrictions set forth in paragraph 
(b) of this section or Sec. 133.23(c) of this subpart, and such consent 
is furnished to appropriate Customs officials;
    (4) The articles of foreign manufacture bear a recorded trademark 
and the one-item personal exemption is claimed and allowed under Sec. 
148.55 of this chapter.
    (d) Exceptions for articles bearing counterfeit trademarks. The 
provisions of paragraph (c)(1) of this section are not applicable to 
articles bearing counterfeit trademarks at the time of importation (see 
Sec. 133.26).
    (e) Release of detained articles. Articles detained in accordance 
with Sec. 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 restriction set forth in paragraph (c) of this 
section are established.
    (f) 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.



Sec. 133.23  Restrictions on importation of gray market articles.

    (a) Restricted gray market articles defined. ``Restricted gray 
market articles'' are foreign-made articles bearing a genuine trademark 
or trade name identical with or substantially indistinguishable from one 
owned and recorded by a citizen of the United States or a corporation or 
association created or organized within the United States and imported 
without the authorization of the U.S. owner. ``Restricted 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 subject to common 
ownership or control with the U.S. owner (see Sec. Sec. 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 foreign 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 subject to common 
ownership or control with the U.S. owner (see Sec. Sec. 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 Sec. 133.2 of this part).
    (b) Labeling of physically and materially different goods. Goods 
determined by the Customs Service to be physically and materially 
different under the procedures of this part, 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

[[Page 769]]

otherwise subject to common ownership or control with the U.S. owner 
(see Sec. Sec. 133.2(d) and 133.12(d) of this part), shall not be 
detained under the provisions of paragraph (c) of this section where the 
merchandise or its packaging bears a conspicuous and legible label 
designed to remain on the product until the first point of sale to a 
retail consumer in the United States stating that: ``This product is not 
a product authorized by the United States trademark owner for 
importation 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 subject to detention as 
provided in Sec. 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 Customs 
examination, to permit the importer to establish that any of the 
following exceptions, as well as the circumstances described above in 
Sec. 133.22(c), are applicable:
    (1) The trademark or trade name was applied under the authority of a 
foreign 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 common ownership or control with the U.S. owner (in an instance 
covered by Sec. Sec. 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 subject to common ownership or control with the U.S. owner, 
that the merchandise as imported is not physically and materially 
different, as described in Sec. 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 violation of Sec. 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 Sec. 133.23(b) is applied to the goods.
    (e) Release of detained articles. Articles detained in accordance 
with Sec. 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 Sec. 133.22(c) of this subpart or in 
paragraph (d) of this section are established.
    (f) 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 
notified of the seizure and liability of forfeiture and his right to 
petition for relief in accordance with the provisions of part 171 of 
this chapter.



Sec. 133.24  Restrictions on articles accompanying importer and mail importations.

    (a) Detention. Articles accompanying an importer and mail 
importations subject to the restrictions of Sec. Sec. 133.22 and 133.23 
shall be detained for 30 days from the date of notice that such 
restrictions apply, to permit the establishment of whether any of the 
circumstances described in Sec. 133.22(c) or 133.23(d) are applicable.
    (b) Notice of detention. Notice of detention shall be given in the 
following manner:
    (1) Articles accompanying importer. When the articles are carried as 
accompanying baggage or on the person of persons arriving in the United 
States, the Customs inspector shall orally advise the importer that the 
articles are subject to detention.
    (2) Mail importations. When the articles arrive by mail in 
noncommercial shipments, or in commercial shipments valued at $250 or 
less, notice of the detention shall be given on Customs Form 8.
    (c) Release of detained articles--(1) General. Articles detained in 
accordance with paragraph (a) of this section may be released to the 
importer during

[[Page 770]]

the 30-day period of detention if any of the circumstances allowing 
exemption from trademark or trade name restriction(s) set forth in Sec. 
133.22(c) or 133.23(d) of this subpart are established.
    (2) Articles accompanying importer. Articles arriving as 
accompanying baggage 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 obliterates 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 obtain 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 Customs 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 destroyed 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 appearing in person to obtain 
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 
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.



Sec. 133.25  Procedure on detention of articles subject to restriction.

    (a) In general. Articles subject to the restrictions of Sec. Sec. 
133.22 and 133.23 shall be detained for 30 days from the date on which 
the merchandise is presented for Customs examination. The importer shall 
be notified of the decision to detain within 5 days of the decision that 
such restrictions apply. The importer may, during the 30-day period, 
establish that any of the circumstances described in Sec. 133.22(c) or 
Sec. 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 
merchandise is presented for Customs examination until the time a notice 
of detention 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 determining whether an imported article bears an 
infringing trademark or trade name. Once a notice of detention is 
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 merchandise.
    (c) Samples available to the trademark or trade name owner. At any 
time following 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 imported 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 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 trademark or

[[Page 771]]

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 (damaged/destroyed/lost) 
during examination or testing for trademark infringement.''
    (d) Form of notice. Notice of detention of articles found subject to 
the restrictions of Sec. 133.22 or Sec. 133.23 shall be given the 
importer in writing.



Sec. 133.26  Demand for redelivery of released merchandise.

    If it is determined that merchandise which has been released from 
CBP custody is subject to the restrictions of Sec. 133.22 or Sec. 
133.23 of this subpart, the port director shall promptly make demand for 
the redelivery of the merchandise under the terms of the bond on CBP 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter, in accordance with Sec. 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 Sec. 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]



Sec. 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, assists financially or otherwise, or aids and abets the 
importation of merchandise 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 Sec. 133.21 of this subpart), as follows:
    (a) First violation. For the first seizure 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 seizure.
    (b) Subsequent violations: For the second and each subsequent 
seizure under this section, the fine imposed will not be more than twice 
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 seizure.

[CBP Dec. 03-12, 68 FR 43637, July 24, 2003]



                   Subpart D_Recordation of Copyrights



Sec. 133.31  Recordation of copyrighted works.

    (a) Eligible works. Claims to copyright which have been registered 
in accordance 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.
    (b) Persons eligible to record. The copyright owner, including any 
person who has acquired copyright ownership through an exclusive 
license, assignment, 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 respect 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 action. Applicants and 
recordants will be notified of the approval or denial of an application 
filed in accordance with Sec. 133.32, Sec. 133.35, Sec. 133.36, or 
Sec. 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]



Sec. 133.32  Application to record copyright.

    An application to record a copyright to secure customs protection 
against the importation of infringing copies or phonorecords shall be in 
writing addressed to the IPR & Restricted Merchandise Branch, U.S. 
Customs and Border Protection, 1300 Pennsylvania Avenue, Washington, DC 
20229, and shall include the following information:
    (a) The name and complete address of the copyright owner or owners;
    (b) If the applicant is a person claiming actual or potential injury 
by reason of actual or contemplated importations of copies or 
phonorecords of the

[[Page 772]]

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 protected 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 
recording, 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 container.

[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]



Sec. 133.33  Documents and fee to accompany 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 accompanied by a certified copy of any assignment, 
exclusive license, or other document recorded in the U.S. Copyright 
Office showing that the applicant has acquired copyright ownership in 
the copyright.
    (2) Five photographic or other likenesses reproduced on paper 
approximately 8 x 10\1/2\ in size of any 
copyrighted work. An application shall be excepted from this requirement 
if it covers a work such as a book, magazine, periodical, or similar 
copyrighted matter readily identifiable by title and author or if it 
covers a sound recording. 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 accompanied 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]



Sec. 133.34  Effective date, term, and cancellation of recordation.

    (a) Effective date. Recordation of copyright and protection 
thereunder shall be effective on the date an application 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 protection appropriate.
    (b) Term. The recordation of copyright 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 effect until the ownership expires. If the ownership has 
not expired after 20 years, recordation may be renewed as provided in 
Sec. 133.37.
    (c) Cancellation. Recordation of a copyright with the United States 
Customs Service shall be canceled upon request of the recordant, or if 
the registration 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]



Sec. 133.35  Change of ownership of recorded copyright.

    (a) Application. If the ownership of a recorded copyright is 
transferred and the owner wishes to continue the recordation with the 
CBP, he shall make written application to the IPR & Restricted 
Merchandise Branch as follows:
    (1) Comply, as appropriate, with Sec. 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 assignment, exclusive license, or other 
document recorded in the U.S. Copyright

[[Page 773]]

Office showing the applicant has acquired an ownership interest in the 
copyright; and
    (2) A fee of $80, which covers all copyrights included in the 
application which have been previously recorded with the U.S. Customs 
and Border Protection. 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]



Sec. 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 notice specifying the 
change shall be given to the IPR & Restricted Merchandise 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]



Sec. 133.37  Renewal of copyright recordation.

    (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 renewed recordation 
shall remain in effect 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 
recordation of a subsisting copyright may be renewed.
    (b) Application for renewal. An application to renew recordation 
shall be made no later than 3 months before the date the recordation 
then in effect expires. The application shall be in writing addressed to 
the IPR & Restricted Merchandise Branch.
    (c) Materials to be submitted with application. An application to 
renew Customs recordation shall include:
    (1) Proof that the recordant's copyright ownership is valid. The 
proof required shall vary with the date that the work was first 
copyrighted as follows:
    (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 copyright, 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 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 Sec. Sec. 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 Protection.
    (d) Untimely application. If the recordant fails to submit a renewal 
application at least 3 months before the recordation expires, he may not 
renew the recordation. The recordant shall be required to reapply to 
record the copyright in accordance with the procedures and requirements 
of Sec. Sec. 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



Sec. 133.41  [Reserved]



Sec. 133.42  Infringing copies or phonorecords.

    (a) Definition. Infringing copies or phonorecords are ``piratical'' 
articles, i.e., copies or phonorecords which are

[[Page 774]]

unlawfully made (without the authorization of the copyright owner).
    (b) Importation prohibited. The importation 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 director 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 infringing copy or 
phonorecord as provided in Sec. 133.43(a). In either case, the port 
director also shall institute forfeiture 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 copyright 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 manufacturer;
    (6) The country of origin of the merchandise;
    (7) The name and address of the exporter; and
    (8) The name and address of the importer.
    (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 examination, testing, or 
any other use in pursuit of a related private civil remedy for copyright 
infringement. To obtain a sample under this section, the copyright owner 
must furnish to 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 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 related private civil remedy for copyright 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 pursuant 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. bearing counterfeit labels, 
Customs officers should consider referring the violation to the U.S. 
Attorney, Department of Justice, for possible criminal prosecution 
pursuant to the ``Piracy and Counterfeiting Amendments Act of 1982'' (18 
U.S.C. 2318). This law provides a minimum 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 maximum 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]



Sec. 133.43  Procedure on suspicion of infringing copies.

    (a) Notice to the importer. If the port director has any reason to 
believe that an imported article may be an infringing copy or 
phonorecord of a recorded copyrighted work, he shall withhold delivery, 
notify the importer of his action, and advise him that if the facts so 
warrant he may file a statement denying that the article is in fact an 
infringing copy and alleging that the detention of the article will 
result in a material depreciation of its value, or a loss or damage to 
him. The port director also shall advise the importer that in the 
absence of receipt within 30 days

[[Page 775]]

of a denial by the importer that the article 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 provided in 
paragraph (a) of this section, the port director shall furnish to the 
copyright owner the following information, if available, within 30 days, 
excluding 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 merchandise; and
    (6) Notice that the imported article will be released to the 
importer unless, within 30 days from the date of the notice, the 
copyright owner files with the port director:
    (i) A written demand for the exclusion from entry of the detained 
imported article; and
    (ii) A bond, in the form and amount specified by the port director, 
conditioned to hold the importer or owner of the imported article 
harmless from any loss or damage resulting from Customs detention in the 
event the Commissioner 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 chapter).
    (c) Samples available to the copyright owner. At any time following 
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 copyright for examination or testing to assist in 
determining whether the article imported is a piratical copy. To obtain 
a sample under this section, the copyright 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 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 copyright owner. After notice to 
the copyright owner that delivery is being withheld for imported 
articles suspected of being infringing copies of his recorded 
copyrighted work, the port director 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 specified 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 article is in fact an infringing copy.
    (i) Exchange of briefs. Before timely submitting the additional 
evidence, legal briefs, or other pertinent material to Customs, pursuant 
to paragraph (c)(1) of this section, in regard to the disputed claim of 
infringement, the importer and the copyright owner shall first provide 
each other with a copy of all such information, including the importer's 
denial of infringement and the copyright owner's demand for exclusion. 
The subsequent submission of this information to Customs shall be 
accompanied by a written statement confirming 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 exceed 30 days, in which to provide a response to the arguments 
submitted by the opposing party, and that rebuttal arguments, timely 
submitted, shall be

[[Page 776]]

fully considered in the decision-making process. During this rebuttal 
period and before timely submitting the rebuttal arguments to Customs, 
the importer 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 provided to the opposing party. The port director shall 
not accept any additional material from the parties to substantiate the 
claim or denial of infringement after the final 30-day rebuttal period 
expires.
    (ii) Decision. Upon receipt of rebuttal arguments, or 30 days after 
notification if no rebuttal arguments are submitted, the port director 
shall forward the entire file, together with a sample of each style that 
is considered possibly 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 copyright owner as well as to the importer.
    (2) Infringement disclaimed or unsupported. If the copyright owner 
disclaims that the specified imported article is an infringing copy of 
his recorded copyrighted work, or fails to present sufficient evidence 
or proof to substantiate a claim of infringement, the port director 
shall release the detained shipment to the importer and all further 
importations of the same article, by whomever imported, without further 
notice to the copyright owner.
    (3) Failure to file demand or bond. If the copyright owner fails to 
file a written demand for exclusion and bond as required by paragraph 
(b) of this section, the port director shall release the detained 
articles to the importer and notify the copyright owner of the release.
    (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 importation of the article. To obtain Customs 
enforcement of an injunction, the copyright owner shall submit a 
certified copy of the court order to the Commissioner of Customs, 
Attention: Office of the Chief Counsel, Washington, DC 20229. In 
addition, if the copyright in question is not recorded with Customs, the 
copyright owner shall submit the $190 fee required by Sec. 133.33(b) 
and, if the work is a three-dimensional or other work not readily 
identifiable by title and author, 5 photographic or other likenesses 
reproduced on paper approximately 8 x 10\1/2\ 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]



Sec. 133.44  Decision of disputed claim of infringement.

    (a) Claim of infringement sustained. Upon determination by the 
Commissioner of Customs or his designee that the detained article 
forwarded in accordance with Sec. 133.43(c)(1) is an infringing 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 returned.
    (b) Denial of infringement sustained. Upon determination by the 
Commissioner of Customs or his designee that the detained article 
forwarded in accordance with Sec. 133.43(c)(1) is not an infringing 
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]



Sec. 133.45  [Reserved]



Sec. 133.46  Demand for redelivery of released articles.

    If it is determined that articles which have been released from 
Customs

[[Page 777]]

custody are subject to the prohibitions or restrictions of this subpart, 
the director 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 Sec. 113.62 of this 
chapter, in accordance with Sec. 141.113 of this chapter. If the 
articles are not redelivered to Customs custody, a claim for liquidated 
damages shall be made in accordance with Sec. 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



Sec. 133.51  Relief from forfeiture or liquidated 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 liquidated damages for failure to redeliver 
released merchandise incurred under the provisions of Sec. 133.24 or 
Sec. 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 prohibited articles are exported or 
destroyed 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 Copyright Office by the 
copyright owner in accordance with the procedures of the Copyright 
Office; and
    (ii) The notice of copyright is completely 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]



Sec. 133.52  Disposition of forfeited merchandise.

    (a) Trademark (other than counterfeit) or trade name violations. 
Articles forfeited for violation of the trademark laws, other than 
articles bearing a counterfeit trademark, shall be disposed of in 
accordance with the procedures applicable to forfeitures for violation 
of the Customs laws, after the removal or obliteration of the name, 
mark, or trademark by reason of which the articles were seized.
    (b) Copyright violations. Articles forfeited for violation of the 
copyright laws shall be destroyed.
    (c) Articles bearing a counterfeit trademark. Merchandise forfeited 
for violation of the trademark laws shall be destroyed, unless it is 
determined that the merchandise is not unsafe or a hazard to health and 
the Commissioner of Customs or his designee has the written 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 designee, has established a 
need for the merchandise; or
    (2) Gift to any charitable institution that, in the opinion of the 
Commissioner 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 forfeiture 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]



Sec. 133.53  Refund of duty.

    If a violation of the trademark or copyright laws is not discovered 
until

[[Page 778]]

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 Sec. 158.41 or Sec. 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--Table of Contents




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 manipulated.
134.14 Articles usually combined.

               Subpart C_Marking of Containers or Holders

134.21 Special marking.
134.22 General rules for marking of containers 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 manipulated.

              Subpart D_Exceptions to Marking Requirements

134.31 Requirements of other agencies.
134.32 General exceptions to marking requirements.
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 methods of marking.
134.45 Approved markings of country name.
134.46 Marking when name of country or locality other than country of 
          origin appears.
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.
134.53 Examination packages.
134.54 Articles released from Customs custody.
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 Schedule of the United States), 1304, 1624.

    Source: T.D. 72-262, 37 FR 20318, Sept. 29, 1972, unless otherwise 
noted.



Sec. 134.0  Scope.

    This part sets forth regulations implementing the country of origin 
marking requirements and exceptions of section 304 of the Tariff Act of 
1930, as amended (19 U.S.C. 1304), together with certain marking 
provisions of the Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202). The consequences and procedures to be followed when 
articles are not legally marked are set forth in this part. The 
consequences and procedures to be followed when articles are falsely 
marked are set forth in Sec. 11.13 of this chapter. Special marking and 
labeling requirements are covered elsewhere. Provisions regarding the 
review and appeal rights of exporters and producers resulting from 
adverse North American Free Trade Agreement marking decisions 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]

[[Page 779]]



                      Subpart A_General Provisions



Sec. 134.1  Definitions.

    When used in this part, the following terms shall have the meaning 
indicated:
    (a) Country. ``Country'' means the political entity known as a 
nation. Colonies, possessions, or protectorates outside the boundaries 
of the mother country are considered separate countries.
    (b) Country of origin. ``Country of origin'' means the country of 
manufacture, production, or growth of any article of foreign origin 
entering the United States. Further work or material 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; however, for a good of a NAFTA country, the NAFTA Marking 
Rules will determine the country of origin.
    (c) Foreign origin. ``Foreign origin'' refers to a country of origin 
other than the United States, as defined in paragraph (e) of this 
section, or its possessions 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 purchaser'' 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 ``ultimate purchaser'' in every 
circumstance. 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 subjects the 
imported article to a process which results in a substantial 
transformation 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 results in one of the changes prescribed in the NAFTA Marking 
Rules as effecting 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 processing, will be regarded 
as the ``ultimate purchaser.'' With respect to a good of a NAFTA 
country, if the manufacturing 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 origin, the consumer who purchases the article 
after processing will be regarded 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 distributed as a gift the recipient 
is the ``ultimate purchaser'', unless the good is a good of a NAFTA 
country. In that case, the purchaser of the gift is the ultimate 
purchaser.
    (e) United States. ``United States'' includes all territories and 
possessions of the United States, except the Virgin Islands, American 
Samoa, Wake Island, Midway Islands, Kingman Reef, Johnston 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 Columbia, 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 determined under the NAFTA Marking Rules.
    (h) NAFTA. ``NAFTA'' means the North American Free Trade Agreement 
entered into by the United States, Canada and Mexico on August 13, 1992.
    (i) NAFTA country. ``NAFTA country'' 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 determining 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]

[[Page 780]]



Sec. 134.2  Additional duties.

    Articles not marked as required by this part shall be subject to 
additional duties of 10 percent of the final appraised value unless 
exported or destroyed under Customs supervision prior to liquidation of 
the entry, as provided in 19 U.S.C. 1304(f). The 10 percent 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 article or 
to include words or symbols required 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]



Sec. 134.3  Delivery withheld until marked and redelivery ordered.

    (a) Any imported article (or its container) held in Customs custody 
for inspection, examination, or appraisement shall not be delivered 
until marked with its country of origin, or until estimated duties 
payable under 19 U.S.C. 1304(f), or adequate security for those duties 
(see Sec. 134.53(a)(2)), are deposited.
    (b) The port director may demand redelivery to Customs custody of 
any article (or its container) previously released which is found to be 
not marked legally with its country of origin for the purpose of 
requiring the article (or its container) to be properly marked. a demand 
for redelivery shall be made, as required under Sec. 141.113(a) of this 
chapter, 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 appropriate places as determined 
by the port director.
    (c) Nothing in this part shall be construed as excepting any article 
(or its container) from the particular requirements 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]



Sec. 134.4  Penalties for removal, defacement, or alteration of marking.

    Any intentional removal, defacement, destruction, or alteration of a 
marking of the country of origin required by section 304, Tariff Act of 
1930, as amended (19 U.S.C. 1304), and this part in order to conceal 
this information 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]



                  Subpart B_Articles Subject to Marking



Sec. 134.11  Country of origin marking required.

    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) imported into the United States shall be marked in a 
conspicuous place as legibly, 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 articles excepted 
from marking shall be marked with the name of the country of origin of 
the article unless the container is also excepted from marking.



Sec. 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 origin imported directly from a foreign country to 
the United States.



Sec. 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 article is withdrawn for consumption unless the article and its 
container are

[[Page 781]]

exempted from marking under provisions of subpart D of this part at the 
time of importation.
    (b) Applicability. The provisions of this section are applicable to 
the following articles:
    (1) Articles repacked in a bonded warehouse under Sec. 19.8 of this 
chapter;
    (2) Articles manipulated under section 562, Tariff Act of 1930, as 
amended (19 U.S.C. 1562), and Sec. 19.11 of this chapter;
    (3) Articles manipulated, but not manufactured, in a foreign-trade 
zone under Sec. 146.32 of this chapter.



Sec. 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 purchaser 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 combining, 
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 articles 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 article excepted from marking under subpart 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



Sec. 134.21  Special marking.

    This subpart includes only country of origin marking requirements 
and exceptions under section 304(b), Tariff Act of 1930, as amended (19 
U.S.C. 1304(b)), for containers or holders. Special marking may be 
required by the Internal Revenue Service on alcoholic beverage bottles 
and other requirements may be imposed by reason of the nature of the 
contents by other Government agencies.



Sec. 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 origin of the 
article whether or not the article is marked to indicate its country of 
origin.
    (b) Containers or holders treated as imported articles. Containers 
or holders for imported merchandise which are subject 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 
required for any good of a NAFTA country which is a usual container.
    (c) Containers or holders bearing a U.S. address. Containers or 
holders of imported 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 indicate 
clearly the country of origin of the contents with a marking such as 
``Contents made in France'' or ``Contents Product of Spain.''
    (d) Usual containers--(1) ``Usual container'' defined. For purposes 
of this subpart, a usual container means the container in which a good 
will ordinarily reach its ultimate purchaser. Containers which are not 
included in the price of the goods with which they

[[Page 782]]

are sold, or which impart the essential character to the whole, or which 
have significant uses, or lasting value independent 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 
specially shaped or fitted to contain a specific 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 importation 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 containers or holders of articles 
within the exceptions set forth in paragraph (f), (g), or (h) in Sec. 
134.32 or they are containers of a good of a NAFTA country within the 
exceptions set forth in paragraph (e), (f), (g), (h), (i), (p) or (q) of 
Sec. 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 exception set forth in Sec. 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]



Sec. 134.23  Containers or holders designed for or capable of reuse.

    (a) Usual and ordinary reusable containers or holders. Except for 
goods of a NAFTA country which are usual containers, containers or 
holders designed for or capable of reuse after the contents have been 
consumed, whether imported full or empty, must be individually 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, transportation containers or holders capable 
of reuse. These containers or holders are subject to the treatment 
specified in General Rule of Interpretation 5(b), Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202).
    (b) Other reusable containers or holders. 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 marking 
such as, ``Container made in (name of country).'' Examples of the 
containers contemplated are mustard jars reusable as beer mugs; shaving 
soap containers reusable as shaving mugs; fancy cologne bottles reusable 
as flower 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]



Sec. 134.24  Containers or holders not designed for or capable of reuse.

    (a) Containers ordinarily discarded after use. Disposable containers 
or holders subject to the provisions of this section are the usual 
ordinary types of containers or holders, including cans, bottles, paper 
or polyethylene bags, paperboard boxes, and similar containers or 
holders which are ordinarily discarded after the contents have been 
consumed.
    (b) Imported empty. Disposable containers or holders imported for 
distribution or sale are subject to treatment as imported articles in 
accordance with the Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202), and shall be marked to indicate clearly the country of 
their own origin. However, when the containers are packed and sold in 
multiple units

[[Page 783]]

(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 unmarked. When disposable 
containers or holders or usual containers which are goods of a NAFTA 
country are imported 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 
containers 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 
wrappings or packages containing the containers shall be clearly marked 
to indicate the country of origin.
    (2) If marked. If the disposable containers or holders or the usual 
containers 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, bottles, drums, or other containers imported 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 disposable containers in use as such at the time of importation 
shall not be required to be marked to show the country 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 
excepted from marking requirements under paragraph (f), (g), or (h) of 
Sec. 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. Disposable containers or holders 
of imported 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 disposable containers of imported 
merchandise normally unopened by the ultimate 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 purchaser prior to 
purchase, only the article 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]



Sec. 134.25  Containers or holders for repacked J-list articles and articles incapable of being marked.

    (a) Certification requirements. If an article subject to these 
requirements is intended to be repacked in new containers for sale to an 
ultimate purchaser after its release from Customs custody, or if the 
port director having custody of the article, has reason to believe such 
article will be repacked after its release, the importer shall certify 
to the port director that: (1) If the importer does the repacking, 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 intended 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 requirements. The importer, or his 
authorized agent, shall sign the following statement.

Certificate of Marking--Repacked J-List Articles and Articles Incapable 
                             of Being Marked

(Port of entry)_________________________________________________________
    I, of , certify that if the article(s) covered by this entry (entry 
no.(s) dated ), is (are) repacked in a new container(s), while still in 
my possession, the new containers, 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 article(s) to the ultimate purchaser(s) in 
accordance with the requirements of 19 U.S.C. 1304 and 19 CFR part 134. 
I further certify

[[Page 784]]

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 purchaser or 
transferee, in writing, at the time of sale or transfer, of the marking 
requirements.
Date____________________________________________________________________
Importer________________________________________________________________


The certification statement may appear 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., calendar year). If the blanket procedure is used, a 
certification must be filed at each port where the article is entered.
    (b) Facsimile signatures. The certification statement may be signed 
by means of an authorized facsimile signature.
    (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 Sec. 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 document and demand redelivery of the merchandise under Sec. 
134.51, Customs Regulations (19 CFR 134.51).
    (d) Notice to subsequent purchaser or repacker. If the article is 
sold or transferred to a subsequent purchaser or repacker the following 
notice shall be given to the purchaser or repacker:

               Notice to Subsequent Purchaser or Repacker

    These articles are imported. The requirements 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 nature of the article or container will permit, in such a manner as 
to indicate to an ultimate 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 
requirements in paragraph (a) may subject the importer to a demand for 
liquidated damages under Sec. 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]



Sec. 134.26  Imported articles repacked or manipulated.

    (a) Certification requirements. If an article subject to these 
requirements is intended to be repacked in retail containers (e.g., 
blister packs) after its release from Customs custody, or if the port 
director having custody of the article, has reason to believe such 
article will be repacked after its release, the importer shall certify 
to the port director that: (1) If the importer does the repacking, he 
shall not obscure or conceal the country of origin marking appearing 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 intended 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 requirements. 
The importer, or his authorized agent, shall sign the following 
statement.

Certificate of Marking by Importer--Repacked Articles Subject to Marking

(Port of entry)_________________________________________________________
    I, -------- of --------, certify that if the article(s) covered by 
this entry (entry no.(s) ---- dated ----), 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 article(s) to the 
ultimate purchaser(s) in accordance 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 purchaser or transferee, in writing, at 
the time of sale or transfer, of the marking requirements.
Date____________________________________________________________________
Importer________________________________________________________________

[[Page 785]]


The certification statement may appear 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., calendar year). If the blanket procedure is used, a 
certification must be filed at each port where the article(s) is 
entered.
    (b) Facsimile signatures. The certification statement may be signed 
by means of an authorized facsimile signature.
    (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 Sec. 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 decline to accept a bond for the 
missing document and demand redelivery of the merchandise under Sec. 
134.51, Customs Regulations (19 CFR 134.51).
    (d) Notice to subsequent purchaser or repacker. If the article is 
sold or transferred to a subsequent purchaser or repacker the following 
notice shall be given to the purchaser or repacker:

               Notice to Subsequent Purchaser or Repacker

    These articles are imported. The requirements 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 nature of the article or container will permit, in such a manner as 
to indicate to an ultimate 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 
requirements in paragraph (a) may subject the importer to a demand for 
liquidated damages under Sec. 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 
repackaging in a container that can readily be opened for inspection by 
the ultimate purchaser in the United States, unless such container bears 
a U.S. address or other potentially misleading marking.

[T.D. 84-127, 49 FR 22795, June 1, 1984]



              Subpart D_Exceptions to Marking Requirements



Sec. 134.31  Requirements of other agencies.

    Nothing in this subpart shall be construed as excepting any article 
(or its container) from the particular requirements of marking provided 
for in any other provision of any law, such as those of the Federal 
Trade Commission, Food and Drug Administration, and other agencies.



Sec. 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 prohibitive 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 substances;
    (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 purpose 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

[[Page 786]]

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 
importation into the United States;
    (j) Articles entered or withdrawn from warehouse for immediate 
exportation or for transportation and exportation;
    (k) Products of American fisheries which are free of duty;
    (l) Products of possessions of the United States;
    (m) Products of the United States exported and returned;
    (n) Articles exempt from duty under Sec. Sec. 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 Harmonized 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]



Sec. 134.33  J-List exceptions.

    Articles of a class or kind listed below are excepted from the 
requirements of country of origin marking in accordance with the 
provisions of section 304(a)(3)(J), Tariff Act of 1930, as amended (19 
U.S.C. 1304(a)(3)(J)). However, in the case of any article described 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 requirements of subpart C of this part. All articles are listed in 
Treasury Decisions 49690, 49835, and 49896. A reference different from 
the foregoing indicates an amendment.

------------------------------------------------------------------------
                 Articles                            References
------------------------------------------------------------------------
Art, works of.
Articles classified under subheadings       T.D. 66-153.
 9810.00.15, 9810.00.25, 9810.00.40 and
 9810.00.45, Harmonized Tariff Schedule of
 the United States.
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.
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 imported 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     T.D.s 49750; 50366(6).
 planed, tongued and grooved.
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 reinforcement
 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 dimensions, shape or form.

[[Page 787]]

 
Monuments.
Nails, spikes, and staples.
Natural products, such as vegetables,
 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.
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; cordage; cords;
 twines, threads, and yarns.
Scrap and waste.
Screws.
Shims, track.
Shingles (wood), bundles of (except         T.D. 49750.
 bundles of red-cedar shingles).
Skins, fur, dressed or dyed.
Skins, raw fur.
Sponges.
Springs, watch.
Stamps, postage and revenue, and other      T.D. 66-153.
 articles covered in subheadings
 9704.00.00 and 4807.00.00, Harmonized
 Tariff Schedule of the United States.
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]



Sec. 134.34  Certain repacked articles.

    (a) Exception for repacked articles. An exception under Sec. 
134.32(d) may be authorized 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 articles are repacked will indicate 
the origin of the articles to an ultimate purchaser in the United 
States.
    (2) The importer arranges for supervision 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 the submission 
of a sample or otherwise, of the marking prior to the liquidation of the 
entry.
    (b) Liquidation of entries. The liquidation 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 deferral 
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]



Sec. 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 article into the different article 
will be considered the ``ultimate purchaser'' of the imported article 
within the contemplation 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

[[Page 788]]

under the NAFTA Marking Rules is excepted 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]



Sec. 134.36  Inapplicability of marking exception 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 section 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



Sec. 134.41  Methods and manner of marking.

    (a) Suggested methods of marking. Section 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. Definite methods 
of marking are prescribed only for articles provided for in Sec. 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 suggested 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 article (or 
its container) until it reaches the ultimate purchaser unless it is 
deliberately 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.



Sec. 134.42  Specific method may be required.

    Marking merchandise by specific methods, such as die stamping, cast-
in-the-mold lettering, etching, or engraving, or cloth labels may be 
required by the Commissioner of Customs in accordance with section 
304(a), Tariff Act of 1930, as amended (19 U.S.C. 1304(a)). Notices of 
such rulings shall be published in the Federal Register and the Customs 
Bulletin.



Sec. 134.43  Methods of marking specific articles.

    (a) Marking previously required by certain 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 conspicuously by die 
stamping, cast-in-the-mold lettering, etching (acid or electrolytic), 
engraving, or by means of metal plates which bear the prescribed marking 
and which are securely attached 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 laboratory instruments, 
pliers, pincers, nippers and hinged hand tools for holding and splicing 
wire, vacuum containers, and parts of the above articles. Goods of a 
NAFTA country shall be marked by any reasonable method which is legible, 
conspicuous and permanent as otherwise provided in this part.
    (b) Watch, clock, and timing apparatus. The country of origin 
marking requirements on watches, clocks, and timing apparatus are 
intensive and require special methods. (See Sec. 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 provision, Native American-style jewelry is jewelry which 
incorporates traditional Native American design motifs, materials and/or 
construction and

[[Page 789]]

therefore looks like, and could possibly be mistaken for, jewelry made 
by Native Americans.
    (2) Method of marking. Except as provided in 19 U.S.C. 1304(a)(3) 
and in paragraph (c)(3) of this section, Native American-style jewelry 
must be indelibly 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 alternatively, on a metal or plastic tag 
indelibly marked with the country of origin 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 adhesive 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 traditional 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 provided for in 19 U.S.C. 
1304(a)(3) and Sec. 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, engraving, stamping, or some other equally 
permanent method. On textile articles, such as rugs, a sewn in label is 
considered to be an equally permanent method.
    (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 article is produced as a result of 
an assembly 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 article may be marked, as appropriate, in a 
manner such as the following:
    (1) Assembled in (country of final assembly);
    (2) Assembled in (country of final assembly) from components of 
(name of country or countries of origin of all components); or
    (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]



Sec. 134.44  Location and other acceptable methods of marking.

    (a) Other acceptable methods. Except for articles described in Sec. 
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 conspicuously appear on the article shall be acceptable. 
Such marking must be legible and sufficiently permanent so that it will 
remain on the article (or its container when the container and not the 
article is required to be marked) until it reaches the ultimate 
purchaser unless deliberately removed.
    (b) Articles marked with paper sticker labels. If paper sticker or 
pressure sensitive labels are used, they must be affixed in a 
conspicuous place and so securely that unless deliberately removed 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 article until it 
reaches the ultimate purchaser.

[T.D. 72-262, 37 FR 20318, Sept. 29, 1972, as amended by T.D. 94-1, 58 
FR 69472, Dec. 30, 1993]

[[Page 790]]



Sec. 134.45  Approved markings of country name.

    (a) Language. (1) Except as otherwise provided in paragraph (a)(2) 
of this section, 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 Commissioner of Customs. Notice of acceptable markings 
other than the full English name of the country of origin shall be 
published in the Federal Register and the Customs Bulletin.
    (2) A good of a NAFTA country may be marked with the name of the 
country of origin in English, French or Spanish.
    (b) Abbreviations and variant spellings. Abbreviations which 
unmistakably indicate the name of a country, such as ``Gt. Britain'' for 
``Great Britain'' or ``Luxemb'' and ``Luxembg'' for ``Luxembourg'' 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 imported merchandise provided the adjectival form of the name 
does not appear with other words so as to refer to a kind or species of 
product. For example, such terms as ``English walnuts'' or ``Brazil 
nuts'' are unacceptable.
    (d) Colonies, possessions, or protectorates. 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 purchasers 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 conjunction 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]



Sec. 134.46  Marking when name of country 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 locality other than the country or locality in which 
the article was manufactured or produced appear on an imported article 
or its container, and those words, letters or names may mislead 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]



Sec. 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 ``America'' appear, the article shall be legibly, 
conspicuously, and permanently marked to indicate the name of the 
country of origin of the article preceded 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



Sec. 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 importer on Customs Form 4647 to arrange with the port 
director's office to

[[Page 791]]

properly mark the article or containers, or to return all released 
articles 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 marking, exportation, or 
destruction of articles 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 accepts a certificate of marking as provided 
for in Sec. 134.52 in lieu of marking under Customs supervision.



Sec. 134.52  Certificate of marking.

    (a) Applicability. Port directors may accept certificates of marking 
supported by samples of articles required to be marked, for which 
Customs Form 4647 was issued, from importers or from actual owners 
complying with the provision of Sec. 141.20 of this chapter, to certify 
that marking of the country of origin 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 director, and a sample of the 
marked merchandise shall accompany the certificate. 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 director shall notify the 
importer or actual owner when the certificate of marking is accepted. 
Such notice of acceptance may be granted on the duplicate copy of the 
certificate of marking by use of a stamped notation of acceptance. 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 importer 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 
section 592, Tariff Act of 1930, as amended (19 U.S.C. 1592). In 
addition, in cases involving, willful deceit, a criminal case report may 
be made charging a violation 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 conceals a material fact or uses any 
document knowing the same to contain any false or fraudulent statement 
in connection with any matter within the jurisdiction of an agency of 
the United States.
    (e) Authority to require physical supervision when deemed necessary. 
The port director may require physical supervision of marking as 
specified in Sec. 134.51(c) in those cases in which he determines 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 
Government as provided for in Sec. 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]



Sec. 134.53  Examination packages.

    (a) Site of marking--(1) Customs custody. Articles (or containers) 
in examination packages may be marked by the importer at the place where 
they have been discharged from the importing 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 packages 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 payable under 19 
U.S.C. 1304(f) has been deposited to insure compliance with the marking 
requirements and the payment of any additional expense which will be 
incurred on account of Customs supervision. (See Sec. 134.55.) The port 
director may at his discretion accept the bond on Customs Form 301, 
containing the basic importation and entry bond conditions set forth in 
Sec. 113.62 of this chapter as security for the requirements of 19 
U.S.C. 1304 (f) and (g).

[[Page 792]]

    (b) Failure to export, destroy, or properly mark merchandise in 
examination packages. If the articles (or containers) in examination 
packages are not exported, 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 warehouse 
entry, they shall be sent to the warehouse containing the rest of the 
shipment for marking prior to withdrawal.

[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]



Sec. 134.54  Articles released from Customs custody.

    (a) Demand for liquidated damages. If within 30 days from the date 
of the notice 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 incurred under the 
bond in an amount equal to the entered value of the articles not 
properly marked or redelivered.
    (b) Failure to petition for relief. A written petition addressed to 
the Commissioner 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 Officer 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 requirements, and has attempted by all 
reasonable 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]



Sec. 134.55  Compensation of Customs officers and employees.

    (a) Time for which compensation is charged. The time for which 
compensation is charged shall include all periods devoted to supervision 
and all periods during which Customs officers or employees are away from 
their regular posts of duty by reason of such assignment 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 
provisions of Sec. Sec. 24.16 or 24.17(a)(3), respectively, of this 
chapter when such supervision is performed during a regularly-scheduled 
tour of duty.
    (2) Overtime. When such supervision is performed by a Customs 
Officer or employee in an overtime status, the compensation with respect 
to the overtime shall be computed in accordance with the provisions of 
Sec. 24.16 or Sec. 24.17, respectively, of this chapter.
    (c) Expenses included. In formulating charges for expenses 
pertaining to supervision 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 
station until he returns thereto.
    (d) Services rendered for more than one importer. If the 
importations of more than one importer are concurrently supervised, the 
service rendered for each importer shall be regarded as a separate 
assignment, but the total amount of the compensation, and any expenses 
properly applicable to more than one

[[Page 793]]

importer, shall be equitably apportioned 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]


[[Page 795]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical 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 separately 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

[[Page 797]]



                    Table of CFR Titles and Chapters




                      (Revised as of April 1, 2008)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        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 100--
                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)
        VI  Department of State (Parts 600--699)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1880--1899)
      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)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)

[[Page 798]]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--99)

                   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 Federal 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)
    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
      XXXV  Office of Personnel Management (Parts 4500--4599)
        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)
         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)

[[Page 799]]

       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)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
      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)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
      XCIX  Department of Defense Human Resources Management and 
                Labor Relations Systems (Department of Defense--
                Office of Personnel Management) (Parts 9900--9999)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         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, Marketing 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 Agriculture (Parts 300--399)

[[Page 800]]

        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 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; 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, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      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 
                Agriculture (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  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)

[[Page 801]]

     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (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 
                Naturalization) (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 Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           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 1303--
                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)

                      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)

[[Page 802]]

         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)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department 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 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    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 
                Administration, Department of Transportation 
                (Parts 400--499)
         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)

[[Page 803]]

        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 
                Agreements
        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)

             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  Bureau of 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)

[[Page 804]]

        IV  Bureau of 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  Employment Standards Administration, 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)

                      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  Millenium 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)

[[Page 805]]

        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 
                Development
         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 
                HousingCommissioner, 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 Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (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 Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)

[[Page 806]]

       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       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 
                Interior (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)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           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, 
                Department 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)

[[Page 807]]

        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)
     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  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 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)

[[Page 808]]

        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 
                Treasury--Department of Justice) (Parts 900--999)

                      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 
                Defense
       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 
                Education (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)

[[Page 809]]

        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (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 Improvmeent, 
                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)
        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 
                Environmental 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 
                301--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

[[Page 810]]

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       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)

          Title 41--Public Contracts and Property Management

            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 
                Employment 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 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)

[[Page 811]]

       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 Employees (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 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   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 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland 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), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement 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)

[[Page 812]]

         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)
         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)
     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)

           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  Department of Health and Human Services (Parts 300--
                399)

[[Page 813]]

         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)
        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 
                Acquisition 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  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

[[Page 814]]

                       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, Department 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)
       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, 
                Department of Transportation [RESERVED]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric 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, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (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

[[Page 815]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of April 1, 2008)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  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
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, 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        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  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
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  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,       27, II
     Bureau of
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
Appalachian Regional Commission                   5, IX

[[Page 816]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
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
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
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                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  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
  Fishery Conservation and Management             50, VI
  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, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  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     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
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    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 817]]

  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, II
  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          28, VIII
     Offender Supervision Agency for the
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                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  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,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
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                             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  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                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

[[Page 818]]

  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
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                       11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
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 Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
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
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
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       45, V
     United States
Foreign Service Grievance Board                   22, IX
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

[[Page 819]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  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          7, VIII; 9, II
     Administration
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                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B, 2, 
                                                  XXIV; 2424
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
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           25, VI
     Secretary
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   32, XX
   Archives and Records Administration
[[Page 820]]

Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  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         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
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, XXVII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  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     45, V
       United States
  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
  Benefits Review Board                           20, VII
  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    41, 60
       of
  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
  Public Contracts                                41, 50

[[Page 821]]

  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  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
Millenium Challenge Corporation                   22, XIII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
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   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  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
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           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
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, VI
National Mediation Board                          29, X
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   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI

[[Page 822]]

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  10, XVIII
     Commission
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
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      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
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             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                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,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III

[[Page 823]]

Surface Mining Reclamation and Enforcement,       30, VII
     Office of
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      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     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; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  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    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            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
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, 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
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
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

[[Page 825]]

                         Chapter I_Subject Index

  Editorial Note: This listing is provided for information purposes 
only. It is compiled and kept up-to-date by the Bureau of Customs and 
Border Protection, Department of Homeland Security, Department of the 
Treasury. This index is updated as of April 1, 2008.

 The number preceding the decimal is the part number. The number 
following the decimal is the section number. The letter ``N'' 
indicates a footnote.

                                      A

ABANDONED MERCHANDISE (See, Unclaimed and Abandoned 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
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)

[[Page 826]]

Current (ongoing) transactions..........................................
177.1(a)(2)(i), 177.11(b)
Definitions.............................................................
177.1(d)
Drawback rulings........................................................
191.7, 191.8
Effect of...............................................................
177.9
How to submit request for...............................................
177.2
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
When requests for rulings will not be issued............................
177.1(a)(1), (2)
Withdrawal of ruling requests...........................................
177.6
Government procurement, country-of-origin determinations................
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 ARRIVING BY RAIL, TRUCK, VESSEL 
OR AIRCRAFT.............................................................

123.91, 123.92, 4.7, 122.48(a)

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

[[Page 827]]

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
AIRCRAFT
Air cabotage............................................................
122.165
Application.............................................................
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
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
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 accidentally 
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

[[Page 828]]

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
Application.............................................................
122.21
Arrival.................................................................
122.22, 122.23
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
Taken abroad by U.S. residents..........................................
122.28
Overtime service........................................................
122.29
Repair or alteration....................................................
10.36a
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 importation 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

[[Page 829]]

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
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

[[Page 830]]

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 disposition.............
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 warehouse, duties........
10.3
Motion-picture films, exhibited on vessels, etc., or otherwise..........
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

ANDEAN TRADE PREFERENCE.................................................

10.201-10.208
ANDEAN TRADE PROMOTION AND DRUG ERADICATION ACT
    Apparel and Other Textile Articles Under the Andean Trade Promotion 
and Drug Eradication Act
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
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

[[Page 831]]

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 return.................
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)
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
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)
Land Border Carrier Initiative Program (LBCIP)..........................
123.74, 123.75
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 lighterage..............
112.30

[[Page 832]]

APPORTIONMENT, ASSISTS, TRADE AGREEMENTS ACT OF 1979....................

152.103(e)
APPRAISEMENT
    Basis for
Articles assembled abroad with U.S. components, exported 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 prohibited merchandise
162.43
Transaction value
Identical merchandise and similar merchandise...........................
152.104
Trade Agreements Act of 1979............................................
152.103
Unacceptable bases of appraisement, Trade Agreements 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
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 public 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 effects................

148.74
ARMS, AMMUNITION AND IMPLEMENTS OF WAR
Controlled imports and exports, seizure of..............................
161.2, 145.53

[[Page 833]]

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)
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--Temporary importation 
bond....................................................................
10.31
Gold or silver, marking--False, penalty.................................
11.13
Illustrators and photographers, imported by, for use solely 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 condition--Temporary 
importation bond........................................................
10.31

ASSAYING AND SAMPLING OF METAL BEARING ORES AND OTHER METAL-BEARING 
MATERIALS...............................................................

Part 151, subpart D

[[Page 834]]

ASSEMBLY OF ARTICLES ABROAD WITH U.S. COMPONENTS........................

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

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
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 foreign 
proceedings.............................................................
Part 103, subpart B
Documents and records available for inspection and copying..............
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 disclosure, 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 Regulations & Rulings......
103.7
Definition..............................................................
103.5(h)
Improper disclosure of confidential information, penalty................
103.34
Judicial review--U.S. district court....................................
103.9

[[Page 835]]

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 allowance.....................

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
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

[[Page 836]]

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
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

[[Page 837]]

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)
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 VEHICLES..........................

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

[[Page 838]]

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
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
    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 gaugerand commercial laboratory conditions...................
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

[[Page 839]]

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)
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
General term bond for entry of merchandise..............................
113.62
Government importations.................................................
10.104, 141.102(d), 143.3(a)
Importation and entry...................................................
113.62
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 invoice................
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

[[Page 840]]

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
Requirements............................................................
Part 113, subpart C, 142.4
Retention of approved...................................................
113.15
Rewarehouse.............................................................
144.41(d)
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 default............
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 required..............
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
Wool, carpet, and camel's hair, form....................................
113.68

[[Page 841]]

BOOKS (See also, PROHIBITED OR RESTRICTED IMPORTATIONS)
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 PREFERENTIAL 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

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
    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
Declaration.............................................................
4.7a
Discharge, time limit and compensation of discharging officer...........
4.36, 24.17, 122.36

[[Page 842]]

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
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
    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

[[Page 843]]

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
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 importer............
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

[[Page 844]]

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

CEMENT PRODUCTS.........................................................

12.155, Appendix to Part 163--Interim (a)(1)(A) List

CENTRALIZED EXAMINATION STATIONS (CES)..................................

Part 118, 151.15
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
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

[[Page 845]]

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

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 ADMINISTRATIVE 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

[[Page 846]]

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
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
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

[[Page 847]]

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
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 American 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

[[Page 848]]

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 segregated.................
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

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 TRANSPORTATION 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

[[Page 849]]

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 payment due............

24.70

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--Merchandise produced by, 
importation prohibited..................................................

12.42-12.45

COPIES OF RECORDS--When importers may make..............................

103.4

COPPER-BEARING FLUXING MATERIAL--Entry requirements.....................

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

[[Page 850]]

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

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.......................................................

12.104-12.104i

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

[[Page 851]]

Complaints, investigation of............................................
111.55
Review..................................................................
111.56
Determination...........................................................
111.57
Definitions.............................................................
111.1
Diligence in correspondence and payment monies..........................
111.29
Duties and responsibilities.............................................
Part 111, subpart C
Fees....................................................................
111.96
    License or Permit
Appeal from the Secretary's decision revoking or suspending.............
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

[[Page 852]]

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
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 MERCHANDISE, 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 salary 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

[[Page 853]]

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
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 orders...................

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

[[Page 854]]

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
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 Admission)...............
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)

[[Page 855]]

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)
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)

[[Page 856]]

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)
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 sculpture 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.

[[Page 857]]

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)
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

[[Page 858]]

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)
Fabric..................................................................
10.25
Fabric (CBI)............................................................
10.195
Fabric-making process...................................................
102.21
Fabricated component (assembled abroad with U.S. components)............
10.12(d)
Fabricated component (assembled abroad with U.S. components)............
10.14
Fabricated component (assembled abroad with U.S. components)............
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)

[[Page 859]]

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)
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)
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

[[Page 860]]

AGOA....................................................................
10.212
CBTPA...................................................................
10.222
Laboratory, Customs-accredited..........................................
151.12
Landing rights airport..................................................
122.1
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

[[Page 861]]

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)
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)

[[Page 862]]

Preclearance............................................................
122.1
Pre-Columbian monumental and architectural sculpture and murals.........
12.105
    Preferential tariff treatment
CBTPA...................................................................
10.232
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
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

[[Page 863]]

Royalties (NAFTA).......................................................
181 App.
Ruling..................................................................
177.1(d)(1)
Sales promotion, marketing (NAFTA)......................................
181 App.
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

[[Page 864]]

Transit air cargo.......................................................
122.112
Transit air cargo manifest..............................................
122.112
Treasury Dept. or any representative of the Treas. Dept.................
111.1
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

[[Page 865]]

DENATURING OF VEGETABLE OILS............................................

10.56

DEPARTURE BEFORE REPORT OF VESSEL OR VEHICLE--Penalty...................

4.6

DERELICTS--Vessels, report of arrival...................................

4.2(c)

DESCRIPTIVE LIST OF THEATRICAL EFFECTS, FILMS, AND TRAVELERS' SAMPLES 
TAKEN ABROAD AND RETURNED...............................................

10.68, 10.69

DESIGNATION OF EXAMINATION PACKAGES.....................................

151.1-151.11

DESIGNATION OF EXAMINATION PACKAGES, INFORMATION 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 FORFEITURE...........................

162.46
DISTILLED SPIRITS, BOTTLES AND SIMILAR CONTAINERS, 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

[[Page 866]]

Missing--Bond for.......................................................
141.66
Official, charge for copies of..........................................
103.10
Reduced duty, late filing of............................................
10.112
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
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

[[Page 867]]

Exportation procedures..................................................
191.72
Falsification of drawback claims........................................
191.62, 191.194
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 Medicinal or Toilet 
Preparations (Including Perfumery) Manufactured 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 allowance 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 Custody....................
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)

[[Page 868]]

Sample..................................................................
191.21(c)
Subcontractors..........................................................
191.21(a)(2)
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 Merchandise..................
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

[[Page 869]]

    Allowance
Casualty, loss, or theft while in Customs custody.......................
Part 158, subpart C
Damaged or defective merchandise........................................
Part 158, subpart B
Destroyed, abandoned, or exported merchandise...........................
Part 158, subpart D
Excessive moisture, etc.................................................
151.46, 158.13
Merchandise lost, stolen, destroyed, injured, abandoned, 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

[[Page 870]]

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
    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 restraint 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 PRODUCED 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 INFORMATION FOR AIR CARGO REQUIRED IN ADVANCE OF ARRIVAL.....

122.48a

ELECTRONIC INFORMATION FOR OUTWARD CARGO REQUIRED IN ADVANCE OF 
DEPARTURE...............................................................

192.14

ELECTRONIC MANIFEST REQUIREMENT FOR CREW MEMBERS AND NON-CREW MEMBERS 
ON-BOARD COMMERCIAL AIRCRAFT ARRIVING IN, CONTINUING WITHIN, AND 
OVERFLYING THE UNITED STATES............................................

122.49b

ELECTRONIC MANIFEST REQUIREMENT FOR CREW MEMBERS AND NON-CREW MEMBERS 
ONBOARD COMMERCIAL AIRCRAFT DEPARTING FROM THE UNITED STATES............

122.75b

ELECTRONIC MANIFEST REQUIREMENT FOR PASSENGERS ONBOARD COMMERCIAL 
AIRCRAFT ARRIVING IN THE UNITED STATES..................................

122.49a

[[Page 871]]

ELECTRONIC MANIFEST REQUIREMENT FOR PASSENGERS ONBOARD COMMERCIAL 
AIRCRAFT DEPARTING FROM THE UNITED STATES...............................

122.75a

ELECTRONIC PASSENGER AND CREW ARRIVAL MANIFESTS.........................

4.7b

ELECTRONIC PASSENGER AND CREW MEMBER DEPARTURE 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, RESCUE AND RELIEF EQUIPMENT AND 
SUPPLIES................................................................

10.107

EMISSION STANDARDS......................................................

12.73

ENFORCEMENT POWERS......................................................

Part 161

ENGINES, NONROAD, COMPLIANCE WITH FEDERAL ANTIPOLLUTION 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 required............

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

[[Page 872]]

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 warehouse entry........
125.11
Bonded merchandise, cartman to be designated by importer................
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, subpart D
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
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
Failure to file timely..................................................
142.15
Form....................................................................
142.11, 142.16
Mandatory filing........................................................
142.13
Multiple ultimate consignees............................................
142.17a
Multiple entries........................................................
142.17
Preliminary review......................................................
141.63
Prohibited merchandise..................................................
142.18

[[Page 873]]

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 allowance.................
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
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 merchandise valued 
not over $250...........................................................
123.7
Motor vehicles, safety standards........................................
12.80
Motor vehicles and engines--Clean Air Act...............................
12.73

[[Page 874]]

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 purposes...............
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 consumption.....................
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 from Canada.............................................
12.140
Special invoices, when and when not required............................
141.91, 141.83
Submission, definition..................................................
141.0a(c)
    Supplies for aircraft or vessels withdrawn from warehouse
Cancellation of bonds...................................................
10.64
Form and procedure......................................................
10.60
Permit for delivery.....................................................
10.61
Temporary importation bond entries--Form and contents...................
10.31
Temporary removal and return to port before customs release.............
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
Value to be shown by importer...........................................
141.90(c)
Value when not in excess of $200........................................
10.151

[[Page 875]]

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 required..............
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 RELIQUIDATION 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
Expenses of outside examination.........................................
151.7
Immediate transportation entries........................................
151.9

[[Page 876]]

    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 PENALTY......................

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
EXPORT DECLARATIONS
Filing of...............................................................
4.61, 4.63, 4.75, 122.76

[[Page 877]]

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 continental 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 transportation..................
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, penalties..............
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 aircraft........
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

EXPORT LICENSE..........................................................

12.155, Appendix to Part 163-Interim (a)(1)(A) List

[[Page 878]]

EXPORTS, CONTROLLED--Seizure............................................

161.2(b)

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 CONTIGUOUS FOREIGN TERRITORY......

123.28
FINES, PENALTIES, AND FORFEITURES (See also, PENALTIES)
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

[[Page 879]]

FINGERPRINTS............................................................

19.2, 111.12, 112.42, 118.4, 122.182, 146.6

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 FOREIGN PLACES--Permit form.....

4.15

FLAT RATE OF DUTY.......................................................

148.102

FLIES, ARTIFICIAL, ENTRY PROCEDURE......................................

12.29

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 IMPORTATIONS...................

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 FAMILIES.......................

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
    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

[[Page 880]]

Transfer of to another zone.............................................
146.66
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

[[Page 881]]

FREE TRADE AGREEMENTS
NAFTA
United States-Bahrain Free Trade Agreement..............................
Part 10, subpart N
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-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, defined.................
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)
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)

[[Page 882]]

Imported directly, defined..............................................
10.175
Informal entry of.......................................................
143.23(g)

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES--Defined, 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 limited 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 DETERMINATIONS................

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

                                      H

HAITIAN HEMISPHERIC OPPORTUNITY THROUGH PARTNERSHIP ENCOURAGEMENT ACT 
(``Haiti Hope'')........................................................

Part 10, subpart O

HARBOR MAINTENANCE FEE..................................................

24.24

HEADQUARTERS PORTS, LIST OF.............................................

101.3

HELIUM GAS, CONTROLLED EXPORTS--Seizure.................................

161.2
HOLIDAYS
Definition..............................................................
24.16

[[Page 883]]

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 representatives, 
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)
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

[[Page 884]]

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--Penalties..............
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)

IMPORT LICENSE..........................................................

12.155, Appendix to Part 163-Interim (a)(1)(A) List

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 IMPORTERS........................

152.26

INFORMATION, CLASSES OF CUSTOMS DOCUMENTS EXEMPT FROM DISCLOSURE........

103.12

INFORMATION COLLECTION REQUIREMENTS, APPROVAL 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

[[Page 885]]

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 MERCHANDISE 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
General provisions......................................................
10.114

INSTRUMENTS OF INTERNATIONAL TRAFFIC....................................

10.41(a)

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 EXPENSE OF IMPORTER..............

10.4
INTERNAL-REVENUE REQUIREMENTS
Cigarette papers, and tubes.............................................
11.3, 159.5
Cigars, cigarettes, medicinal preparations, and perfumery...............
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 representatives, 
etc., exempt from.......................................................
148.89, 148.90

[[Page 886]]

Ethyl alcohol for nonbeverage purposes, conditionally exempt 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 CERTIFICATION...................................................

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
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 country..............
Part 123, subpart D, 123.52, 123.64

IN-TRANSIT SEALS, PROCURING AND ACCOUNTING PROCEDURE....................

24.13

INVENTORIES OF TOBACCO PRODUCTS FOR CONSUMPTION 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

[[Page 887]]

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 description............
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
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

[[Page 888]]

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 SPECIAL LICENSE FOR--Form.....

4.30

LADING, EXPORTATION IN BOND, CUSTOMS SUPERVISION........................

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 DESTINATION 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 CALCULATED..........................

4.37

LEASE, ARTICLES UNDER, EXPORTED AND REIMPORTED..........................

10.108

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 SUBJECT 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
LBCIP; revocation.......................................................
123.75
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

[[Page 889]]

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)
Petiition 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
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 documents................
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)

[[Page 890]]

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
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
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 prohibited...................

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

[[Page 891]]

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, PROHIBITION..........................

145.51, 146.1

LUMBER, SOFTWOOD FROM CANADA............................................

12.140

                                      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
    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

[[Page 892]]

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
Alcoholic beverages, nonmailable........................................
145.54
American, Samoa, Guam, or Virgin Islands, from..........................
Part 148, subpart K

MAIZE SEED--Reduced rate................................................

10.57
MANIFESTS
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

[[Page 893]]

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 territory, 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
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, EXPENSES 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

[[Page 894]]

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)
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 AIRCRAFT ARRIVING IN, CONTINUING WITHIN, AND OVERFLYING THE 
UNITED STATES...........................................................

122.49c

MASTER RECORDS AND METAL MATRICES.......................................

10.90

MASTER'S DECLARATION--Repairs and equipment obtained 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

[[Page 895]]

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 REMANUFACTURE BY..................

54.5, 54.6
MERCHANDISE
Abandoned, forfeited, or unclaimed goods subject to internal-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
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--Undelivered, 
disposition.............................................................
127.14
Entry for manipulation..................................................
19.11
Entry; line release processing..........................................
Part 142, subpart D

[[Page 896]]

    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 allowance.................
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
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 forfeiture--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

[[Page 897]]

To foreign countries....................................................
18.20-18.24
Laden on vehicle or vessel without special license or permit............
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
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--Importation prohibited
12.42-12.45
Recall..................................................................
141.113, 151.11
Recovered from wrecked vessel or as derelict, Disposition...............
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, 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

[[Page 898]]

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)
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

[[Page 899]]

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
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 MATERIALS..........................

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 requirements....................

12.7

MISSING DOCUMENTS, BOND FOR.............................................

141.66

MISTAKE OF FACT.........................................................

162.71, 162.73

MITIGATION OF FINES, PENALTIES, AND FORFEITURES--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

[[Page 900]]

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 EXPORTS--Seizure...............

161.2

                                      N

NAFTA (See NORTH AMERICAN FREE TRADE AGREEMENT)
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 EXCESSIVE DUTIES AND INTERNAL-
REVENUE TAXES...........................................................

24.36
NONCONTIGUOUS TERRITORY
Definition..............................................................
4.0
Vessels in trade with...................................................
4.84, 4.90

NONIMPORTATION, WHAT CONSTITUTES--Duty allowance........................

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

[[Page 901]]

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
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

OFFSPRING OF ANIMALS--FOREIGN PASTURAGE AND STRAYS......................

10.74

OIL OR REFUSE DISCHARGED BY VESSEL IN NAVIGABLE 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

OPTIONAL PORTS IN INTERCOASTAL TRADE....................................

4.86

ORAL DECLARATIONS.......................................................

148.12

ORES AND CRUDE METALS...................................................

Part 151, subpart D

[[Page 902]]

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; NAFTA............................................................
181.131

OTTER FUR SKINS.........................................................

12.60-12.63

OUTBOUND ADVANCE CARGO REPORTING REQUIREMENTS...........................

192.14

OVERAGE OF CARGO--FORM..................................................

4.12, 4.62
OVERTIME
Application for service--Form--Bond.....................................
4.10, 24.16
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 country, 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 AGREEMENTS 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 WAREHOUSE........................

144.37(c)

PARROTS--IMPORTATION PROCEDURE..........................................

12.26
PARTNERSHIPS
Bond, execution by......................................................
113.32

[[Page 903]]

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
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

PAYMENTS OF STATE AND FEDERAL FEES......................................

4.61

PAYMENTS DUE DECEASED OR INCOMPETENT PUBLIC CONTRACTORS AND IMPORTERS OR 
OWNERS OF MERCHANDISE...................................................

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

[[Page 904]]

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 payment of.........
162.22
Importations contrary to law............................................
162.21, 162.22, 145.4, 162.63, 123.81
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--Importation 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
Oil or refuse discharged from vessel into navigable waters..............
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
Railway equipment and supplies..........................................
123.12(c)
Recovery of actual loss of duties, taxes and fees or actual loss of 
revenue.................................................................
162.79b

[[Page 905]]

Remission or mitigation of fines, penalties, and forfeitures............
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)
    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 TERRITORY, 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
Supplies for vessels withdrawn from warehouse, delivery permit..........
10.61
Term special permit.....................................................
142.24

[[Page 906]]

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

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 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 UNNECESSARY FOR RELIQUIDATION....

173.5

PERSONNEL AND MEDICAL FILES--DISCLOSURE OF INFORMATION..................

103.12(f)

PERSONS AUTHORIZED TO RECEIVE CUSTOMS COLLECTIONS.......................

24.2

PERSONS RETURNING FROM ABROAD--PROFESSIONAL BOOKS--TOOLS OF TRADE.......

148.53

PERSONS, SEARCH AND EXAMINATION OF......................................

162.6

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

[[Page 907]]

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
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 headquarters 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
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 (CBTPA)...................................

10.233, 10.235, 10.237
PREFERENTIAL TREATMENT
AGOA....................................................................
10.213, 10.215, 10.217
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)

[[Page 908]]

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 SCIENTISTS, ARTICLES BROUGHT IN 
UNDER TEMPORARY IMPORTATION BOND BY.....................................

10.31

PROFESSIONAL EQUIPMENT OF NONRESIDENTS SOJOURNING TEMPORARILY--TEMPORARY 
IMPORTATION 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 123, subpart H, 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
Laboratories............................................................
151.12
Land Border Carrier Initiative..........................................
Part 123, subpart H
LBCIP...................................................................
Part 123, subpart H
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

[[Page 909]]

Caustic or corrosive substances.........................................
12.1-12.5
Conception, articles for preventing.....................................
12.40, 145.51
Controlled substances...................................................
161.2, Part 162, subpart F
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
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
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 resistance to law--
Threats to persons......................................................
12.40, 145.51
Unfair competitions, articles involved in...............................
12.39

[[Page 910]]

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 unnecessary 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

[[Page 911]]

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 DEVELOPMENT 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 status..................
123.13

[[Page 912]]

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
Agreement on Trade in Cement (March 6, 2006)............................
12.155, Appendix to Part 163 Interim (a)(1)(A) List
CBTPA...................................................................
10.226, 10.236
Requirements, warehouse.................................................
19.12, Part 163
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 CUSTOMS CUSTODY)

RE-EXAMINATION OF PERSONS, BAGGAGE OR MERCHANDISE.......................

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 NAVIGABLE 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

[[Page 913]]

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)

REIMPORTATION OF MERCHANDISE, DUTIABLE STATUS--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

REPACKING BY IMPORTER, MERCHANDISE IN WAREHOUSE.........................

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

[[Page 914]]

Personal and household effects taken abroad by returning resident.......
148.31(b)
Railway, made in foreign country, dutiable status.......................
123.12, 123.13
    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 RETURNING 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 RESTRICTED IMPORTATIONS)
RESTRICTED INFORMATION
Fines, Penalties........................................................
103.32
Foreign agencies........................................................
103.33
Sanctions...............................................................
103.32-103.34

RESTRICTED MERCHANDISE, IMMEDIATE TRANSPORTATION........................

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 AS....................................

148.63

[[Page 915]]

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
LBCIP...................................................................
123.75
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 identification...............
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 determinations
Applicability...........................................................
177.21

[[Page 916]]

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 EQUIPMENT..........................

12.85

SAFETY STANDARDS FOR ELECTRONIC PRODUCTS................................

12.90, 12.91

SAFETY STANDARDS--MOTOR VEHICLES AND EQUIPMENT..........................

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 pesticides 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 required....................
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

[[Page 917]]

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 PURPOSES...........................

10.43

SCULPTURE, ORIGINAL, FREE ENTRY, EVIDENCE REQUIRED......................

10.48

SCULPTURE OR MURAL--PRE-COLUMBIAN MONUMENTAL OR ARCHITECTURAL...........

12.106-12.109

SEAL, FUR SKINS.........................................................

12.60-12.63

[[Page 918]]

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 VEHICLES..........................

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 agencies, disposition 
of......................................................................
162.46(b)
Claim for...............................................................
162.47
Compromise of claims....................................................
161.5

[[Page 919]]

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 investigations.............
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--ASSAYING AND SAMPLING...........

151.52, 151.54

[[Page 920]]

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

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

[[Page 921]]

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 STAPLE........................

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 VESSELS WITHHELD FOR COMPLIANCE.

4.61

STATE LAWS PROHIBITING SALE OF FORFEITED PROPERTY.......................

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 institutions............
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, CUSTOMS)
STORES AND EQUIPMENT OF VESSELS, LANDING OF
Entry, when required....................................................
4.39
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

[[Page 922]]

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 LIQUIDATED DAMAGES OR PENALTIES 
SECURED BY BONDS........................................................

Part 172, subpart E

SUPPLEMENTAL PETITION FOR RELIEF FROM UNSECURED 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 MERCHANDISE--DISPOSITION OF--CLAIM 
FOR.....................................................................

127.36
SWITCHBLADE KNIVES
Definitions.............................................................
12.95
Forfeiture..............................................................
12.102
    Importations allowed
Common and special purpose knives--utilitarian use......................
12.96
Permitted by statute....................................................
12.98
Importations allowed/prohibited.........................................
12.97

[[Page 923]]

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

TEXTILE AND APPAREL GOODS UNDER NAFTA...................................

102.25

TEXTILE FIBER PRODUCTS--LABELING........................................

11.12b

TEXTILE MACHINERY--FOR INSTITUTIONS, CONDITIONALLY FREE.................

10.43

TEXTILES AND APPAREL PRODUCTS...........................................

102.21-102.25

[[Page 924]]

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 merchandise.................
127.41
Disposition of merchandise owned by Government..........................
127.42
Petition of party for surplus proceeds had merchandise 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 RETURNING 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
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

[[Page 925]]

    Disposition of articles entered for fairs--Entry or transfer--
Destruction--Abandonment, voluntary or mandatory--
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

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 MERCHANDISE....................

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
Foreign manifests.......................................................
123.32
Forwarding port, procedure at...........................................
18.20
Immediate transportation without appraisement...........................
18.11, 122.92(b)

[[Page 926]]

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 transportation................
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--RESTRICTIONS..................

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
Auctioneer's commission.................................................
127.34
Cartage.................................................................
125.14
Defined.................................................................
127.11

[[Page 927]]

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 INVOICES, 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-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-SINGAPORE FREE TRADE AGREEMENT............................

Part 10, subpart I

UNIT PRICE--VALUATION-DEFINED, TRADE AGREEMENTS 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
U.S.
American goods returned consigned to--Free entry procedure..............
10.103
Articles for any department, bureau, or division of.....................
10.46, 10.100-10.104, 141.102(d), 145.37

[[Page 928]]

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, bureaus, 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

VEHICLE, ROAD, CERTIFICATION............................................

Part 115
VEHICLES
Automotive products--Canadian article...................................
10.84
Bond--Form..............................................................
113.62-113.64

[[Page 929]]

Common carrier, clearance of............................................
162.22
Compensation of Customs officer assigned to board--Proceeding between 
ports...................................................................
24.17(a)(7)
To protect the revenue..................................................
24.17(a)(1)
Contiguous countries, from--Report and Manifest--Permits--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--Unladen 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)
Claim and bond to stop summary forfeiture...............................
162.47
Seizure by State officers, adoption of, by Customs......................
162.21

[[Page 930]]

Seizure --
When used in or employed to aid in unlawful importation 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
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--Expenses 
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 Production 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 articles...................
4.61, 4.69
To Panama Canal.........................................................
4.60(c)
To closed ports or places...............................................
4.61, 4.67
When not required.......................................................
4.60
Coasting trade and fishing--Documents required..........................
4.80
    Coastwise--
Bonded cargo, report of.................................................
4.81(b)

[[Page 931]]

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
Contiguous country, from--Report and manifest--Permits--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
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 destination...............
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 equipment..............
Part 191, subpart M
Dunnage.................................................................
4.39(c)
Electronic passenger and crew arrival manifests.........................
4.7b
Electronic passenger and crew member departure manifests................
4.64
Engaged in several movements or transactions simultaneously.............
4.90
Enrolled or licensed for coasting trade and mackerel fisheries--
Restrictions............................................................
4.15(d)
Entitled to engage in coastwise trade...................................
4.80
Entry and clearance of records..........................................
4.95
    Entry of--
American................................................................
4.9
At other than port of entry--Expenses...................................
24.17, 101.4

[[Page 932]]

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 domestic 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 proceeding 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 foreign 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)
Sea stores..............................................................
4.39
Unladen without permit..................................................
162.66
Unmanifested--Penalties.................................................
162.65

[[Page 933]]

No clearance without issuance of certificate of free pratique...........
4.70
Noncontiguous territory; report of arrival, entry, clearance 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 waters--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 importation 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
Sold under chattel mortgage or conditional sale contract--Petition......
171.13(b)
Special license issued under Anti-Smuggling Act to vessels of less than 
30 net tons.............................................................
4.100

[[Page 934]]

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
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 baggage--Form........
4.5
Transshipment of cargo due to casualty..................................
4.31
Undelivered cargo at foreign destination, returned, disposition 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
Not ``ports of entry''..................................................
101.1
Unaccompanied shipments from............................................
148.110-148.116
Vessels arriving at or from, examination of persons, baggage, or 
merchandise.............................................................
162.6

[[Page 935]]

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; CERTIFICATION.....................

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
Bonded stores, definition...............................................
19.1
Bonds...................................................................
19.2
Buildings or enclosures as..............................................
19.1
Charges after sale of merchandise.......................................
Part 127, subpart D
Suspensions; discontinuance.............................................
19.3
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

[[Page 936]]

Duty paid, undelivered..................................................
127.14
Elevators for storage of grain..........................................
19.1
Examination packages, delivery of.......................................
19.10
Examining, repacking, sampling, transferring merchandise 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 warehouse....................
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)
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 statement....................
19.15(j)

[[Page 937]]

Withdrawals.............................................................
19.15
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 produced 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 EXEMPTIONS..................

4.96(h)

WHALES--IMPORTATION AND EXPORTATION RESTRICTIONS........................

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 worship....................

10.52

[[Page 938]]

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 EXPORTATION CONVERTED TO WITHDRAWAL 
FOR CONSUMPTION.........................................................

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 exportation or 
transportation..........................................................
144.37(e)

WITHDRAWALS FROM WAREHOUSE OR CUSTOMS CUSTODY--TOBACCO PRODUCTS FOR 
CONSUMPTION ON VESSELS--BLANKET WITHDRAWALS--INVENTORIES................

10.65

WITHDRAWAL OF SUPPLIES AND EQUIPMENT FOR VESSELS........................

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
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

[[Page 939]]

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 PROFESSIONAL ARTISTS, 
LECTURERS, OR SCIENTISTS--TEMPORARY IMPORTATION BOND....................

10.31

WRECKED OR ABANDONED AT SEA--ENTRY OF MERCHANDISE.......................

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

[[Page 941]]



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 January 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 separate volumes.

                                  2001

19 CFR
                                                                   66 FR
                                                                    Page
Chapter I
4.14 Revised; eff. 4-25-01.........................................16397
    Meeting........................................................19720
10 Authority citation amended................................9645, 50537
10.31 (a)(1) amended................................................8767
10.184 Undesignated center heading added; section revised; interim
                                                                   20395
10.191 (b)(1), (3) and (4) amended; interim.........................9645
10.199 Added; interim...............................................9645
10.222 Introductory text amended; interim..........................50537
10.223 (a)(6) and (7) amended; interim.............................50537
10.228 Added; interim..............................................50537
    (c)(3)(ii) introductory text and (E) corrected.................51864
12 Authority citation amended......................................16853
12.3 Revised; eff. 4-27-01.........................................16853
12.73 (d) amended...................................................8767
12.74 (b)(2) amended................................................8767
12.104g (a) table amended...........................................7401
    (a) table and (b) table amended................................63499
19.2 (f) amended....................................................8767
24.24 (e)(4) revised...............................................16857
    (e)(4)(i) and (ii)(A) corrected; interim.......................21086
    (e) heading and (4) revised; (e)(2)(ii) amended................34818
101 Authority citation amended.....................................56431
101.5 Revised......................................................56431
102.21 (e) introductory text redesignated as (e)(1); new (e)(1) 
        revised; new (e)(1) table amended; (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) amended; eff. 4-27-01...............16854
113.73 (a)(2) amended; eff. 4-27-01................................16854
122 Authority citation amended.....................................67484
122.15 (b) table amended....................................49275, 50104
122.49a Added......................................................67484
132 Authority citation amended.....................................21666
    Technical correction...........................................27454
132.18 Added; interim..............................................21666

                                  2002

19 CFR
                                                                   67 FR
                                                                    Page
Chapter I
4.7 Heading revised; (b) text redesignated as (b)(1); new (b)(1) 
        amended; (b)(2), (3), (4) and (e) added....................66331

[[Page 942]]

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 amended......................................39289
10.183 Revised.....................................................39289
10.184 (g)(1) amended; (g)(2) revised; interim......................3059
10.199 Revised.....................................................62882
11 Authority citation revised......................................15098
12 Technical correction...............................1809, 43247, 66333
    Authority citation revised.....................................15098
12.104g (a) correctly designated.....................................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 revised................................68033
24 Authority citation revised......................................15098
    Authority citation amended.....................................31953
24.23 (c)(1)(iv) amended...........................................15098
24.24 (e)(4)(iv) revised...........................................31953
54 Authority citation revised......................................15098
101 Authority citation revised.....................................15098
102 Authority citation revised.....................................15098
102.21 (b)(5) and (e)(1) table corrected; interim..................51752
111 Authority citation revised.....................................15098
113.64 (a) amended; (c) through (f) redesignated as (d) through 
        (g); new (c) added.........................................66333
114 Authority citation revised.....................................15098
122 Authority citation amended..............................42712, 55721
122.15 (b) amended.................................................35723
122.48 (c) revised.................................................55721
122.49a (c)(2) amended.............................................42712
122.49b Added......................................................42712
122.50 Heading revised; (d), (e) and (f) redesignated as (e), (f) 
        and (g); (c) and new (e) amended...........................68033
122.181 Amended; interim...........................................48984
122.182 (a), (c) and (d) revised; (b), (e), (f) and (g) amended; 
        interim....................................................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 revised.....................................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 amended.....................................68033
127.1 Authority citation removed...................................68034
127.2 Authority citation removed...................................68034
127.11 Authority citation removed..................................68034
127.12 Authority citation removed..................................68034
127.13 Authority citation removed; (a) revised.....................68034
127.14 Authority citation removed; (a) revised.....................68034
127.21 Authority citation removed; amended.........................68034
127.23 Authority citation removed..................................68034
127.24 Authority citation removed..................................68034
127.25 Authority citation removed..................................68034
127.26 Authority citation removed..................................68034
127.27 Authority citation removed..................................68034
127.28 Authority citation removed; (a) amended.....................68034
127.29 Authority citation removed..................................68034

[[Page 943]]

127.31 Authority citation removed..................................68034
127.32 Authority citation removed..................................68034
127.33 Authority citation removed..................................68034
127.34 Authority citation removed..................................68034
127.35 Authority citation removed..................................68034
127.36 Authority citation removed..................................68034
127.37 Authority citation removed..................................68034
127.41--127.43 (Subpart E) Added...................................68034
128 Authority citation revised.....................................15098
132 Authority citation revised.....................................15098
    Authority citation amended.....................................46588
132.16 Removed.....................................................46588
132.18 Regulation at 66 FR 21666 confirmed.........................55723
134 Authority citation revised.....................................15098

                                  2003

19 CFR
                                                                   68 FR
                                                                    Page
Chapter I
Chapter I Heading revised..........................................51869
0 added............................................................51869
4 Authority citation amended; eff. 4-21-03.........................13625
    Authority citation amended.....................................13820
    Technical correction...........................................14476
    Authority citation 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 amended................................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 amended......................................43624
    Technical correction...........................................67338
    Regulation at 68 FR 14486 authority citation corrected; CFR 
correction.........................................................67338
10.184 Undesignated center heading and section removed.............43624
10.201 Regulation at 68 FR 14486 correctly revised; CFR correction
                                                                   67338
10.202 Regulation at 68 FR 14486 introductory text corrected; 
        (b)(1) through (8) correctly removed; new (b)(1) through 
        (4) correctly added; CFR correction........................67338
10.208 Regulation at 68 FR 14487 corrected; CFR correction.........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; interim.............................................13824
10.214 (b) and (c) revised; interim................................13825
10.215 (a) revised; interim........................................13827
10.216 (b)(4)(ii) amended; interim.................................13827
10.217 (a)(2) and (3) amended; interim.............................13827
10.222 Amended; interim............................................13831
10.223 (a)(1), (2), (3), (6), and (12) revised; (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; interim..........................13832
10.224 (b) and (c) revised; interim................................13833
10.225 (a) revised; interim........................................13835
10.226 (b)(4)(ii) amended; interim.................................13835
10.227 (a)(2), (3), and (b)(3) amended; interim....................13835
10.228 Revised; interim............................................56169
10.241 Regulation at 68 FR 14487 undesignated center heading and 
        section correctly added; CFR correction....................67338
10.242 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.243 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338

[[Page 944]]

10.244 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.245 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.246 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.247 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.248 Regulation at 68 FR 14487 correctly added; CFR correction 
                                                                   67338
10.251 Regulation at 68 FR 14497 undesignated center heading and 
        section correctly added; CFR correction....................67349
10.252 Regulation at 68 FR 14497 correctly added...................67349
10.253 Regulation at 68 FR 14497 correctly added...................67349
10.254 Regulation at 68 FR 14497 correctly added...................67349
10.255 Regulation at 68 FR 14497 correctly added...................67349
10.256 Regulation at 68 FR 14497 correctly added...................67349
10.257 Regulation at 68 FR 14497 correctly added...................67349
12.104g (a) and (b) amended.................................51904, 55004
    (a) table corrected............................................58371
12.145 Undesignated center heading and section added...............13839
24.22 (g)(2) through (7) redesignated 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) amended..................................43630
101.3 (b)(1) table amended............................3384, 42587, 42589
102.20 Table amended...............................................43631
102.21 (e)(2)(ii) and (iii) introductory text revised...............8713
103 Authority citation amended..............................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
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) existing 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 Authority citation 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 amended.....................................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 amended......................................63449
10.33 Introductory text amended....................................52599
10.91 Undesignated center heading and section added................63449
10.228 Revised.....................................................69518
12 Authority citation amended......................................52599
12.38 Amended......................................................52599
12.39a Removed.....................................................52813
12.104g (a) amended................................................12270
18.9 Heading and (a) revised.......................................52599
19.12 (d)(4)(ii) amended...........................................52599
24 Authority citation revised......................................35235
24.12 (a)(3) removed...............................................52813
24.16 (b)(7) revised...............................................35235

[[Page 945]]

101.3 (b)(1) table amended...........................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 Compliance notification........................................51007
123.1 (a) amended..................................................52599

                                  2005

19 CFR
                                                                   70 FR
                                                                    Page
Chapter I
4 Authority citation amended.......................................17850
4.7b Added.........................................................17850
4.64 Added.........................................................17851
7 Authority citation revised.......................................53061
10 Authority citation amended......................................10872
    Authority citation revised.....................................53061
10.1--10.183 (Subpart A) Designated as new Subpart A; new subpart 
        heading added; interim.....................................10872
10.31 (f) amended; interim.........................................10872
10.36a (a) amended; interim........................................10872
10.191--10.199 (Subpart B) Designated as new Subpart B; 
        undesignated center heading removed; new subpart heading 
        added; interim.............................................10872
10.201--10.207 (Subpart C) Designated as new Subpart C; 
        undesignated center heading removed; new subpart heading 
        added; interim.............................................10872
10.211--10.217 (Subpart D) Designated as new Subpart D; 
        undesignated center heading removed; new subpart heading 
        added; interim.............................................10872
10.221--10.237 (Subpart E) Designated as new Subpart E; new 
        subpart heading added; interim.............................10872
10.241--10.257 (Subpart F) Designated as new Subpart F; new 
        subpart heading added; interim.............................10872
10.301--10.311 (Subpart G) Designated as new Subpart G; 
        undesignated center heading removed; new subpart heading 
        added; interim.............................................10872
10.401--10.490 (Subpart H) Added; interim..........................10873
12 Authority citation amended......................................11540
    Authority citation revised.....................................53061
    Authority citation amended.....................................58013
12.104g (a) table amended...................................11540, 61032
12.130--12.132 Undesignated center heading removed; interim........58013
12.130 Removed; interim............................................58013
12.131 Removed; interim............................................58013
12.132 Removed; interim............................................58013
18 Authority citation revised......................................53061
19 Authority citation revised......................................53061
24 Authority citation amended......................................10884
    Authority citation revised.....................................53061
24.23 (c)(6) and (7) added; interim................................10884
54 Authority citation revised......................................53062
101 Authority citation revised.....................................53062
102 Authority citation 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 Appendix added; interim........................................58015
111 Authority citation revised.....................................53062
114 Authority citation revised.....................................53062
122 Authority citation amended.....................................17851
122.15 (b) amended..........................................22783, 22784
122.41--122.50 (Subpart E) Heading revised.........................17851
122.49a Revised....................................................17852
122.49b Redesignated as 122.49d; new 122.49b added.................17852
122.49c Added......................................................17854
122.49d Redesignated from 122.49b..................................17852
122.71--122.80 (Subpart H) Heading revised.........................17855
122.75a Added......................................................17855
122.75b Added......................................................17855
123 Authority citation revised.....................................53062
128 Authority citation revised.....................................53062
132 Authority citation revised.....................................53062
134 Authority citation revised.....................................53062

[[Page 946]]

                                  2006

19 CFR
                                                                   71 FR
                                                                    Page
Chapter I
10 Authority citation amended......................................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) removed; (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) introductory text revised..............76132
10.412 (a) and (b)(1) revised; (d) removed.........................76132
10.413 Amended.....................................................76132
10.414 Heading, (a) introductory text and (b) revised..............76132
10.415 (a) introductory text revised...............................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) revised
                                                                   76133
10.450 Introductory text amended...................................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
10.461 Example 1 amended...........................................76134
10.470 (a) heading revised; (a) introductory text amended..........76134
10.473 Itroductory text and (c) revised............................76134
10.474 Amended.....................................................76134
10.483 (a)(2) amended; (c) introductory text revised...............76134
10.699 (Subpart J) Added; interim..................................11306
12.104g (a) table amended......................3001, 13766, 51726, 69477
    (b) table amended..............................................51726
12.140 Revised; interim............................................61402
101 Authority citation revised......................................2458
    Authority citation amended.....................................33236
101.3 (b)(1) table amended..............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 amended..........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) introductory text and (c) 
        introductory 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

[[Page 947]]

12.39 (b)(4) and (e)(1) amended....................................59168
12.104g (a) table amended.....................31177, 38474, 53416, 54539
12.155 Undesignated center heading and section added; eff. 4-5-07 
                                                                   10005
    (d) correctly amended..........................................11944
19.4 Heading and (b)(8)(iii) amended...............................59168
24.17 Heading revised; (a) through (d) amended; (a)(12) and (13) 
        removed; (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 Authority citation 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 text amended..................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
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) introductory text and (f) amended.....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 amended...................................59170
133.13 (b) amended.................................................59170
133.15 Amended.....................................................59170
133.26 Amended.....................................................59170
133.32 Introductory text amended...................................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

[[Page 948]]

                                  2008

   (Regulations published from January 1, 2008, through April 1, 2008)

19 CFR
                                                                   73 FR
                                                                    Page
Chapter I
4 Authority citation amended.......................................12634
4.22 Amended.......................................................12634
10 Regulation at 72 FR 35156 confirmed; eff. 4-30-08...............16754
10.701--10.712 (Subpart K) Regulation at 72 FR 35156 confirmed; 
        eff. 4-30-08...............................................16754
122.24 (b) amended; eff. 4-7-08....................................12262


                                  [all]