[Title 19 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2018 Edition]
[From the U.S. Government Publishing Office]
[[Page i]]
Title 19
Customs Duties
________________________
Parts 0 to 140
Revised as of April 1, 2018
Containing a codification of documents of general
applicability and future effect
As of April 1, 2018
Published by the Office of the Federal Register
National Archives and Records Administration as a
Special Edition of the Federal Register
[[Page ii]]
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[[Page iii]]
Table of Contents
Page
Explanation................................................. v
Title 19:
Chapter I--U.S. Customs and Border Protection,
Department of Homeland Security; Department of the
Treasury 3
Finding Aids:
Table of CFR Titles and Chapters........................ 951
Alphabetical List of Agencies Appearing in the CFR...... 971
Chapter I Subject Index................................. 981
List of CFR Sections Affected........................... 1099
[[Page iv]]
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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
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HOW TO USE THE CODE OF FEDERAL REGULATIONS
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To determine whether a Code volume has been amended since its
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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
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this volume.
[[Page vii]]
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Oliver A. Potts,
Director,
Office of the Federal Register.
April 1, 2018.
[[Page ix]]
THIS TITLE
Title 19--Customs Duties is composed of three volumes. The first two
volumes, parts 0--140 and parts 141--199 contain the regulations in
Chapter I--U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury. The third volume, part 200 to end,
contains the regulations in Chapter II--United States International
Trade Commission; Chapter III--International Trade Administration,
Department of Commerce; and Chapter IV--U.S. 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, 2018.
A Subject Index to Chapter I--U.S. 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, Ann Worley was Chief Editor. The Code of Federal
Regulations publication program is under the direction of John Hyrum
Martinex, assisted by Stephen J. Frattini.
[[Page 1]]
TITLE 19--CUSTOMS DUTIES
(This book contains parts 0 to 140)
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Part
chapter i--U.S. Customs and Border Protection, Department of
Homeland Security; Department of the Treasury............. 0
[[Page 3]]
CHAPTER I--U.S. CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND
SECURITY; DEPARTMENT OF THE TREASURY
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Editorial Note: Nomenclature changes to chapter I appear by CBP Dec.
07-82, 72 FR 59167, Oct. 19, 2007.
Part Page
0 Transferred or delegated authority.......... 5
1-3 [Reserved]
4 Vessels in foreign and domestic trades...... 7
7 Customs relations with insular possessions
and Guantanamo Bay Naval Station........ 79
10 Articles conditionally free, subject to a
reduced rate, etc....................... 84
11 Packing and stamping; marking............... 446
12 Special classes of merchandise.............. 452
18 Transportation in bond and merchandise in
transit................................. 513
19 Customs warehouses, container stations and
control of merchandise therein.......... 530
24 Customs financial and accounting procedure.. 567
54 Certain importations temporarily free of
duty.................................... 627
101 General provisions.......................... 629
102 Rules of origin............................. 643
103 Availability of information................. 702
111 Customs brokers............................. 711
112 Carriers, cartmen, and lightermen........... 735
113 CBP bonds................................... 743
114 Carnets..................................... 771
115 Cargo container and road vehicle
certification pursuant to international
customs conventions..................... 776
118 Centralized examination stations............ 786
122 Air Commerce regulations.................... 791
123 CBP relations with Canada and Mexico........ 865
125 Cartage and lighterage of merchandise....... 889
127 General order, unclaimed, and abandoned
merchandise............................. 893
128 Express consignments........................ 901
132 Quotas...................................... 905
[[Page 4]]
133 Trademarks, trade names, and copyrights..... 913
134 Country of origin marking................... 932
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 CBP
regulations relating to customs revenue functions, except that the
Secretary of the Treasury retains the sole authority to approve such CBP
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.
[CBP Dec. 03-24, 68 FR 51869, Aug. 28, 2003, as amended at CBP Dec. 08-
25, 73 FR 40724, July 16, 2008]
Sec. 0.2 All other CBP regulations issued under the authority of the
Department of Homeland Security.
(a) The authority of the Secretary of the Treasury with respect to
CBP 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.
[CBP Dec. 03-24, 68 FR 51869, Aug. 28, 2003, as amended at CBP Dec. 08-
25, 73 FR 40724, July 16, 2008]
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
[[Page 7]]
requires any revocation of any other prior Order or Directive of the
Secretary of the Treasury, such prior Order or Directive is hereby
revoked.
5. This Delegation of Authority is effective May 15, 2003. This
Delegation is subject to 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.
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.
4.7c Vessel stow plan.
4.7d Container status messages.
4.8 Preliminary entry.
4.9 Formal entry.
4.10 Request for overtime services.
4.11 Sealing of stores.
4.12 Explanation of manifest discrepancy.
4.13 [Reserved]
4.14 Equipment purchases for, 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; Electronic Export Information (EEI).
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 or missing Electronic Export
Information (EEI); bond.
4.76 Procedures and responsibilities of carriers filing outbound vessel
manifest information via the AES.
[[Page 8]]
Coastwise Procedure
4.80 Vessels entitled to engage in coastwise trade.
4.80a Coastwise transportation of passengers.
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. 60101; 46
U.S.C. 70105.
Section 4.2 also issued under 19 U.S.C. 1441, 1486;
Section 4.3 also issued under 19 U.S.C. 288, 1441;
Section 4.3a also issued under 19 U.S.C. 1433, 1436;
Section 4.5 also issued under 19 U.S.C. 1441;
Section 4.7 also issued under 19 U.S.C. 1581(a);
Section 4.7a also issued under 19 U.S.C. 1498, 1584;
Section 4.7b also issued under 8 U.S.C. 1101, 1221;
Sections 4.7c and 4.7d also issued under 6 U.S.C. 943.
Section 4.8 also issued under 19 U.S.C. 1448, 1486;
Section 4.9 also issued under 42 U.S.C. 269;
Section 4.10 also issued under 19 U.S.C. 1448, 1451;
Section 4.12 also issued under 19 U.S.C. 1584;
Section 4.14 also issued under 19 U.S.C. 1466, 1498; 31 U.S.C. 9701.
Section 4.20 also issued under 46 U.S.C. 2107(b), 8103, 14306,
14502, 14511-14513, 14701, 14702, 60301-60306, 60312;
Section 4.21 also issued under 19 U.S.C. 1441; 46 U.S.C. 60301-
60310, 60312;
Section 4.22 also issued under 46 U.S.C. 60301, 60302, 60303, 60304,
60305, 60306, 60312, 60503;
Section 4.24 also issued under 46 U.S.C. 2108;
Section 4.30 also issued under 19 U.S.C. 288, 1446, 1448, 1450-1454,
1490;
Section 4.31 also issued under 19 U.S.C. 1453, 1586;
Section 4.32 also issued under 19 U.S.C. 1449;
Section 4.35 also issued under 19 U.S.C. 1447;
Section 4.36 also issued under 19 U.S.C. 1431, 1457, 1458; 46 U.S.C.
60107;
Section 4.37 also issued under 19 U.S.C. 1448, 1457, 1490;
Section 4.38 also issued under 19 U.S.C. 1448, 1505;
Section 4.39 also issued under 19 U.S.C. 1446;
Section 4.40 also issued under 19 U.S.C. 1446;
Section 4.50 also issued under 19 U.S.C. 1431; 46 U.S.C. 3502;
Section 4.51 also issued under 19 U.S.C. 1433;
Section 4.52 also issued under 19 U.S.C. 1433;
Section 4.61 also issued under 46 U.S.C. 12101, 12120, 12132, 55102,
55105-55108, 55110, 55115-55117, 55119;
Section 4.64 also issued under 8 U.S.C. 1221;
Section 4.65a also issued under 46 U.S.C. 5101-5102, 5106-5109,
5112-5114, 5116;
Section 4.66 also issued under 46 U.S.C. 60105;
Section 4.66a also issued under 33 U.S.C. 1321; 46 U.S.C. 60105;
Section 4.66b also issued under 33 U.S.C. 407, 1321;
Section 4.68 also issued under 46 U.S.C. 44101-44106;
Section 4.69 also issued under 46 U.S.C. 10301, 10302, 10314, and
10315.
Section 4.74 also issued under 46 U.S.C. 60105;
[[Page 9]]
Section 4.75 also issued under 46 U.S.C. 60105;
Sections 4.80, 4.80a, and 4.80b also issued under 19 U.S.C. 1706a;
28 U.S.C. 2461 note; 46 U.S.C. 12112, 12117, 12118, 50501-55106, 55107,
55108, 55110, 55114, 55115, 55116, 55117, 55119, 56101, 55121, 56101,
57109; Pub. L. 108-7, Division B, Title II,Sec. 211;
Section 4.81 also issued under 19 U.S.C. 1442, 1486; 46 U.S.C.
12101, 12120, 12132, 55102, 55105-55108, 55110, 55114-55117, 55119;
Section 4.81a also issued under 46 U.S.C. 12101, 12120, 12132,
55102, 55105-55108, 55110, 55114-55117, 55119;
Section 4.82 also issued under 19 U.S.C. 293, 294; 46 U.S.C. 60308;
Section 4.83 also issued under 46 U.S.C. 60105, 60308;
Section 4.84 also issued under 46 U.S.C. 12118;
Section 4.85 also issued under 19 U.S.C. 1442, 1623;
Section 4.86 also issued under 19 U.S.C. 1442;
Section 4.88 also issued under 19 U.S.C. 1442, 1622, 1623;
Section 4.92 also issued under 28 U.S.C. 2461 note; 46 U.S.C. 55111;
Section 4.93 also issued under 19 U.S.C. 1322(a); 46 U.S.C. 12101,
12120, 12132, 55102, 55105-55108, 55110, 55114-55117, 55119;
Section 4.94 also issued under 19 U.S.C. 1441; 46 U.S.C. 60504;
Section 4.94a also issued under 19 U.S.C. 1484b;
Section 4.96 also issued under 46 U.S.C. 12101(a)(1), 12108, 55114;
Section 4.98 also issued under 31 U.S.C. 9701;
Section 4.100 also issued under 19 U.S.C. 1706.
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) 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 (4)
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, 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
[[Page 10]]
rest in the harbor from which it is going.
[T.D. 69-266, 34 FR 20422, Dec. 31, 1969, as amended by T.D. 83-214, 48
FR 46511, Oct. 13, 1983; T.D. 93-78, 58 FR 50256, Sept. 27, 1993; T.D.
93-96, 58 FR 67315, Dec. 21, 1993; CBP Dec. 08-25, 73 FR 40725, July 16,
2008]
Sec. 4.1 Boarding of vessels.
(a) Every vessel arriving at a CBP port will be subject to such
supervision while in port as the port director considers necessary. The
port director may detail CBP officers to remain on board a vessel to
secure enforcement of the requirements set forth in this part. CBP may
determine to board as many vessels as considered necessary to ensure
compliance with the laws it enforces.
---------------------------------------------------------------------------
\1-27\ [Reserved]
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(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 CBP 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 CBP
officer in charge until the vessel has been taken in charge by a CBP
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 CBP officer in charge until the vessel has been
properly inspected by CBP 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 CBP officer under the provisions of this paragraph shall be
subject to CBP 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) Persons seeking to board an incoming vessel after it has been
inspected by the quarantine authorities and taken in charge by a CBP
officer must comply with any applicable Coast Guard regulations
regarding the Transportation Worker Identification Credential (TWIC)/
personal identification requirements as prescribed in 33 CFR 101.105 and
101.514-515.
(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.
[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; CBP Dec. 14-11, 79 FR 70464, Nov. 26,
2014]
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 foreign merchandise
for which entry has not been made, the master of the vessel must
immediately report that arrival to the nearest CBP facility or other
location designated by the port director. The report of arrival, except
as supplemented in local instructions issued by the port director and
made available to interested parties by posting in CBP offices,
publication in a newspaper of general circulation, and other appropriate
means, may be made by any means of communication to the port director or
to a CBP officer assigned to board the vessel. The CBP officer may
require the production of any documents or papers deemed necessary for
the proper inspection/examination of the vessel, cargo, passenger, or
crew.
[[Page 11]]
(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 must be filed by either the master, owner, or
agent, and must be in the form and give the information required by that
statute, except that the report need not be under oath. A derelict
vessel will be considered one in distress and any person bringing it
into port must report its arrival.
(d) The report of baggage and 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
must be made within 24 hours of arrival.
[T.D. 93-96, 58 FR 67315, Dec. 21, 1993, as amended by T.D. 94-44, 59 FR
23795, May 9, 1994; CBP Dec. 10-33, 75 FR 69585, Nov. 15, 2010]
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 foreign merchandise on
board for which entry has not been made; or
(4) Any vessel which has visited a hovering vessel as defined in 19
U.S.C. 1401(k), or has delivered or received merchandise or passengers
while 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 CBP port director may permit the entry of
vessels to be accomplished at locations other than the customhouse, and
services may be requested outside of normal business hours. CBP may take
local resources into consideration in allowing formal entry to be
transacted on board vessels or at other mutually convenient approved
sites and times within or outside of port limits. When services are
requested to be provided outside the limits of a CBP port, the
appropriate port director to whom an application must be submitted is
the director of the port located nearest to the point where the proposed
services would be provided. That port director must be satisfied that
the place designated for formal entry will be sufficiently under CBP
control at the time of entry, and that the expenses incurred by CBP will
be reimbursed as authorized. It may be required that advance notice of
vessel arrival be given as a condition for granting requests for
optional entry locations. A master, owner, or agent of a vessel who
desires that entry be made at an optional location will file with the
appropriate port director an application on CBP Form 3171 and a single
entry or continuous bond on CBP 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 CBP 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
[[Page 12]]
Federal agencies upon arrival in the United States.
[T.D. 00-4, 65 FR 2872, Jan. 19, 2000, as amended at CBP Dec. 10-33, 75
FR 69585, Nov. 15, 2010]
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 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
[[Page 13]]
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, CBP Form 1300, and the following
documents: (1) Cargo Declaration, CBP Form 1302, (2) Ship's Stores
Declaration, CBP Form 1303, (3) Crew's Effects Declaration, CBP Form
1304, or, optionally, a copy of the Crew List, Customs and Immigration
Form I-418, to which are attached crewmember's declarations on CBP 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 Statement.
(b)(1) With the exception of any Cargo Declaration that has been
filed in advance as prescribed in paragraph (b)(2) of this section, the
original and one copy of the manifest must be ready for production on
demand. The master shall deliver the original and one copy of the
manifest to the CBP officer who shall first demand it. If the vessel is
to proceed from the port of arrival to other United States ports with
residue foreign cargo or passengers, an 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) In addition to the vessel stow plan requirements pursuant to
Sec. 4.7c of this part and the container status message requirements
pursuant to Sec. 4.7d of this part, and with the exception of any bulk
or authorized break bulk cargo as prescribed in paragraph (b)(4) of this
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 (CBP Form 1302), 24 hours before the cargo is laden aboard
the vessel at the foreign port (see Sec. 4.30(n)). The electronic cargo
declaration information must be transmitted through the CBP Automated
Manifest System (AMS) or any electronic data interchange system approved
by CBP to replace the AMS system for this purpose. Any such system
change will be announced by notice in the Federal Register.
(3)(i) Where a non-vessel operating common carrier (NVOCC), as
defined in paragraph (b)(3)(ii) of this section, 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
[[Page 14]]
the provisions of Sec. 113.64 of this chapter, may electronically
transmit the corresponding required cargo declaration information
directly to CBP through the vessel AMS system (or other system approved
by CBP for this purpose). The information 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), as provided in paragraph
(b)(2) of this section, or in accordance with paragraph (b)(4) of this
section applicable to exempted bulk and break bulk cargo. In the
alternative, the NVOCC must fully disclose and present the required
cargo declaration information for the related cargo to the vessel
carrier which is required to present this information to CBP, in
accordance with this section, via the vessel AMS system (or other CBP-
approved 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 only to
the bulk or break bulk cargo being transported, from the requirement set
forth in paragraph (b)(2) of this section that an electronic cargo
declaration be received by CBP 24 hours before such cargo is laden
aboard the vessel at the foreign port. With respect to exempted carriers
of bulk or break bulk cargo operating voyages to the United States, CBP
must receive the electronic cargo declaration covering the bulk or break
bulk cargo they are transporting 24 hours prior to the vessel's arrival
in the United States (see Sec. 4.30(n)). However, for any containerized
or non-qualifying break bulk cargo these exempted carriers will be
transporting, CBP must receive the electronic cargo declaration 24 hours
in advance of loading.
(i) Bulk cargo is defined for purposes of this section as
homogeneous cargo that is stowed loose in the hold and is not enclosed
in any container such as a box, bale, bag, cask, or the like. Such cargo
is also described as bulk freight. Specifically, bulk cargo is composed
of either:
(A) Free flowing articles such as oil, grain, coal, ore, and the
like, which can be pumped or run through a chute or handled by dumping;
or
(B) Articles that require mechanical handling such as bricks, pig
iron, 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 and Border Protection,
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 cargo declaration requirement set
out in paragraph (b)(2) of this section. The written request for
exemption must clearly set forth information such that CBP 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 uses to transport break
[[Page 15]]
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) CBP will evaluate each application for an exemption on a case by
case basis. If CBP, 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) CBP may rescind an exemption granted to a carrier at any time.
(c) No Passenger List or Crew List shall be required in the case of
a vessel arriving from Canada, otherwise than by sea, at a port on the
Great Lakes or their connecting or tributary waters.
(d)(1) The master or owner of--
(i) A vessel documented under the laws of the United States with a
registry, coastwise license, or a vessel not so documented but intended
to be employed in the foreign, or coastwise 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 CBP
Form 226 any equipment, repair parts, or materials purchased for the
vessel, or any expense for repairs incurred, outside the United States,
within the purview of section 466, Tariff Act of 1930, as amended (19
U.S.C. 1466). If no equipment, repair parts, or materials have been
purchased, or repairs made, a declaration to that effect shall be made
on CBP Form 226.
(2) If the vessel is at least 500 gross tons, the declaration shall
include a statement that no work in the nature of a rebuilding or
alteration which might give rise to a reasonable belief that the vessel
may have been rebuilt within the meaning of the second 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 damages under the
international carrier bond of $5,000 for each violation discovered. In
addition, if any non-vessel operating common carrier (NVOCC) as defined
in paragraph (b)(3)(ii) of this section elects to transmit cargo
declaration information to CBP electronically and fails to do so in the
manner and in the time period required by paragraph (b)(3)(i) of this
section, or electronically transmits any false, forged or altered
document, paper, cargo declaration information to CBP, such NVOCC may be
liable for the payment of liquidated damages as provided in Sec.
113.64(c) of this chapter, of $5,000 for each violation discovered.
[T.D. 71-169, 36 FR 12602, July 2, 1971]
Editorial Note: For Federal Register citations affecting Sec. 4.7,
see the List of CFR Sections Affected, which appears in the Finding Aids
section of the printed volume and at www.fdsys.gov.
[[Page 16]]
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, CBP
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. (CBP Form 1304). (1) The declaration
number of the Crew Member's Declaration, CBP Form 5129, prepared and
signed by any officer or crewmember who intends to land articles in the
United States, or the word ``None,'' shall be shown in item No. 7 on the
Crew's Effects Declaration, CBP Form 1304 opposite the respective
crewmember's name.
(2) In lieu of describing the articles on CBP Form 1304, the master
may furnish a Crew List, CBP 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 CBP in the United States.
________________________________________________________________________
(Master.)
The Crew List on Form I-418 shall show, opposite the crewmember's name,
his shipping article number and, in column 5, the declaration number. If
the crewmember has nothing to declare, the word ``None'' shall be placed
opposite his name instead of a declaration number.
(3) For requirements concerning the preparation of CBP 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 (CBP Form 1302
submitted in accordance with paragraph (b)(2) or (b)(4) of this section)
must list all the inward foreign cargo on board the 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 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 CBP Form 1302 or on a separate sheet. If this
procedure is used:
[[Page 17]]
(A) Each container number shall be listed in alphanumeric sequence
by port of discharge in column No. 6 of CBP Form 1302, or on the
separate sheet; and
(B) The number of each bill of lading covering cargo in a particular
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 CBP 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. CBP
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 cargo declarations and entries. CBP will not
perform any reconciliation except in a post-audit process.
(3) For shipment of containerized or palletized cargo, CBP 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 declaration information required in
paragraphs (c)(1)-(c)(3) of this section, for all inward foreign cargo,
the Cargo Declaration, must state the following:
(i) The last foreign port before the vessel departs for the United
States;
(ii) The carrier SCAC code (the unique Standard Carrier Alpha Code
assigned for each carrier; see paragraph (c)(2)(iii) of this section);
(iii) The carrier-assigned voyage number;
[[Page 18]]
(iv) The date the vessel is scheduled to arrive at the first U.S.
port in CBP territory;
(v) The numbers and quantities from the carrier's ocean bills of
lading, 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) or Sec. 4.7(b)(4)); 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, 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 (CBP Form
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
[[Page 19]]
this data element must be reported to CBP).
(d) Crew List. The Crew List shall be completed in accordance with
the requirements of applicable Department of Homeland Security (DHS)
regulations administered by CBP (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 applicable DHS
regulations administered by CBP (8 CFR part 231), and the following
certification shall be placed on its last page:
I certify that CBP baggage declaration requirements have been made
known to incoming passengers; that any required CBP baggage declarations
have been or will simultaneously herewith be filed as required by law
and regulation with the proper CBP officer; and that the
responsibilities devolving upon this vessel in connection therewith, if
any, have been or will be discharged as required by law or regulation
before the proper CBP officer. I further certify that there are no
steerage passengers on board this vessel (46 U.S.C. 151-163).
________________________________________________________________________
Master
(2) If the vessel is carrying steerage passengers, the reference to
steerage passengers shall be deleted from the certification, and the
master shall comply with the requirements of 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 damages under the international carrier bond of $5,000 for
each violation discovered. In addition, if any non-vessel operating
common carrier (NVOCC) as defined in Sec. 4.7(b)(3)(ii) elects to
transmit cargo declaration information to CBP 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 of $5,000 for each violation discovered.
[T.D. 71-169, 36 FR 12602, July 2, 1971]
Editorial Note: For Federal Register citations affecting Sec. 4.7a,
see the List of CFR Sections Affected, which appears in the Finding Aids
section of the printed volume and at www.fdsys.gov.
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 ``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
[[Page 20]]
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, the Virgin Islands of the
United States, and the Commonwealth of the Northern Mariana Islands
(beginning November 28, 2009).
(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;
(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,
[[Page 21]]
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, as amended by CBP Dec.09-02,
74 FR 2836, Jan. 16, 2009; CBP Dec. 09-14, 74 FR 25388, May 28, 2009]
Sec. 4.7c Vessel stow plan.
Vessel stow plan required. In addition to the advance filing
requirements pursuant to Sec. Sec. 4.7 and 4.7a of this part and the
container status message requirements pursuant to Sec. 4.7d of this
part, for all vessels subject to Sec. 4.7(a) of this part, except for
any vessel exclusively carrying break bulk cargo or bulk cargo as
prescribed in Sec. 4.7(b)(4) of this part, the incoming carrier must
submit a vessel stow plan consisting of vessel and container information
as specified in paragraphs (b) and (c) of this section within the time
prescribed in paragraph (a) of this section via the CBP-approved
electronic data interchange system.
(a) Time of transmission. Customs and Border Protection (CBP) must
receive the stow plan no later than 48 hours after the vessel departs
from the last foreign port. For voyages less than 48 hours in duration,
CBP must receive the stow plan prior to arrival at the first U.S. port.
(b) Vessel information required to be reported. The following
information must be reported for each vessel:
(1) Vessel name (including international maritime organization (IMO)
number);
(2) Vessel operator; and
(3) Voyage number.
(c) Container information required to be reported. The following
information must be reported for each container carried on each vessel:
(1) Container operator;
(2) Equipment number;
(3) Equipment size and type;
(4) Stow position;
(5) Hazmat code (if applicable);
(6) Port of lading; and
(7) Port of discharge.
(d) Compliance date of this section--(1) General. Subject to
paragraph (d)(2) of this section, all affected ocean carriers must
comply with the requirements of
[[Page 22]]
this section on and after January 26, 2010.
(2) Delay in compliance date of section. CBP may, at its sole
discretion, delay the general compliance date set forth in paragraph
(d)(1) of this section in the event that any necessary modifications to
the approved electronic data interchange system are not yet in place or
for any other reason. Notice of any such delay will be provided in the
Federal Register.
[CBP Dec. 08-46, 73 FR 71779, Nov. 25, 2008]
Sec. 4.7d Container status messages.
(a) Container status messages required. In addition to the advance
filing requirements pursuant to Sec. Sec. 4.7 and 4.7a of this part and
the vessel stow plan requirements pursuant to Sec. 4.7c of this part,
for all containers destined to arrive within the limits of a port in the
United States from a foreign port by vessel, the incoming carrier must
submit messages regarding the status of the events as specified in
paragraph (b) of this section if the carrier creates or collects a
container status message (CSM) in its equipment tracking system
reporting that event. CSMs must be transmitted to Customs and Border
Protection (CBP) within the time prescribed in paragraph (c) of this
section via a CBP-approved electronic data interchange system. There is
no requirement that a carrier create or collect any CSMs under this
paragraph that the carrier does not otherwise create or collect on its
own and maintain in its electronic equipment tracking system.
(b) Events required to be reported. The following events must be
reported if the carrier creates or collects a container status message
in its equipment tracking system reporting that event:
(1) When the booking relating to a container which is destined to
arrive within the limits of a port in the United States by vessel is
confirmed;
(2) When a container which is destined to arrive within the limits
of a port in the United States by vessel undergoes a terminal gate
inspection;
(3) When a container, which is destined to arrive within the limits
of a port in the United States by vessel, arrives or departs a facility
(These events take place when a container enters or exits a port,
container yard, or other facility. Generally, these CSMs are referred to
as ``gate-in'' and ``gate-out'' messages.);
(4) When a container, which is destined to arrive within the limits
of a port in the United States by vessel, is loaded on or unloaded from
a conveyance (This includes vessel, feeder vessel, barge, rail and truck
movements. Generally, these CSMs are referred to as ``loaded on'' and
``unloaded from'' messages);
(5) When a vessel transporting a container, which is destined to
arrive within the limits of a port in the United States by vessel,
departs from or arrives at a port (These events are commonly referred to
as ``vessel departure'' and ``vessel arrival'' notices);
(6) When a container which is destined to arrive within the limits
of a port in the United States by vessel undergoes an intra-terminal
movement;
(7) When a container which is destined to arrive within the limits
of a port in the United States by vessel is ordered stuffed or stripped;
(8) When a container which is destined to arrive within the limits
of a port in the United States by vessel is confirmed stuffed or
stripped; and
(9) When a container which is destined to arrive within the limits
of a port in the United States by vessel is stopped for heavy repair.
(c) Time of transmission. For each event specified in paragraph (b)
of this section that has occurred, and for which the carrier creates or
collects a container status message (CSM) in its equipment tracking
system reporting that event, the carrier must transmit the CSM to CBP no
later than 24 hours after the CSM is entered into the equipment tracking
system.
(d) Contents of report. The report of each event must include the
following:
(1) Event code being reported, as defined in the ANSI X.12 or UN
EDIFACT standards;
(2) Container number;
(3) Date and time of the event being reported;
(4) Status of the container (empty or full);
(5) Location where the event took place; and
[[Page 23]]
(6) Vessel identification associated with the message if the
container is associated with a specific vessel.
(e) A carrier may transmit other container status messages in
addition to those required pursuant to paragraph (b) of this section. By
transmitting additional container status messages, the carrier
authorizes Customs and Border Protection (CBP) to access and use those
data.
(f) Compliance date of this section--(1) General. Subject to
paragraph (f)(2) of this section, all affected ocean carriers must
comply with the requirements of this section on and after January 26,
2010.
(2) Delay in compliance date of section. CBP may, at its sole
discretion, delay the general compliance date set forth in paragraph
(f)(1) of this section in the event that any necessary modifications to
the approved electronic data interchange system are not yet in place or
for any other reason. Notice of any such delay will be provided in the
Federal Register.
[CBP Dec. 08-46, 73 FR 71779, Nov. 25, 2008]
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 and Border Protection (CBP).
(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, CBP Form 1302,
must be presented to Customs electronically in the manner provided in
Sec. 4.7(b)(2) or (4). Vessels seeking preliminary entry in advance of
arrival must do so: By presenting to Customs the electronic equivalent
of a complete CBP Form 1302 (Cargo Declaration), in the manner provided
in Sec. 4.7(b)(2) or (4), showing all cargo on board the vessel; and by
presenting CBP Form 3171 electronically no less than 48 hours prior to
vessel arrival. The CBP Form 3171 will also serve as notice of intended
date of arrival. The port director may allow for the presentation of the
CBP Form 1302 and CBP Form 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; CBP Dec. 11-10, 76 FR 27609, May 12, 2011]
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 CBP
port is also governed by section 434, Tariff Act of 1930 (19 U.S.C.
1434). Alternatively, information necessary for formal entry may be
transmitted electronically pursuant to a system authorized by CBP.
(b) Procedures for American vessels. Under certain circumstances,
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 unentered foreign merchandise aboard. Report of
arrival as provided in Sec. 4.2 of this part, together with presenting
a completed CBP Form 1300
[[Page 24]]
(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; CBP Dec. 10-33, 75 FR 69585, Nov. 15, 2010]
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
[[Page 25]]
(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) 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 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; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010]
Sec. 4.13 [Reserved]
Sec. 4.14 Equipment purchases for, and repairs to, American vessels.
(a) General provisions and applicability--(1) General. 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
are subject to declaration, entry, and payment of ad valorem duty. These
requirements are effective upon the first arrival of affected vessels in
the United States or Puerto Rico. The vessels subject to these
requirements include those documented under the 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 CBP
[[Page 26]]
interpretations. Duty is based on actual foreign cost. This includes the
original foreign purchase price of articles that have been imported into
the United States and are later sent abroad for use.
(2) Expenditures not subject to declaration, entry, or duty. The
following vessel repair expenditures are not subject to declaration,
entry, or duty:
(i) Expenditures made in American Samoa, the Guantanamo Bay Naval
Station, Guam, Puerto Rico, or the U.S. Virgin Islands because they are
considered to have been made in the United States;
(ii) Reimbursements paid to members of the regular crew of a vessel
for labor expended in making repairs to vessels; and
(iii) The cost of equipment, repair parts, and materials that are
installed on a vessel documented under the laws of the United States and
engaged in the foreign or coasting trade, if the installation is done by
members of the regular crew of such vessel while the vessel is on the
high seas, in foreign waters, or in a foreign port, and does not involve
foreign shipyard repairs by foreign labor.
(3) Expenditures subject to declaration and entry but not 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.
Furthermore, certain free trade agreements between the United States and
other countries also may reduce the duties on vessel repair expenditures
made in foreign countries that are parties to those agreements, although
the final duty amount may depend on each agreement's schedule for
phasing in those reductions. In these situations and others where there
is no liability for duty, it is still required, except as otherwise
required by law, that all repairs and purchases 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
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
[[Page 27]]
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 CBP Form 226, a dual-use form used both for declaration
and entry purposes, or must transmit its electronic equivalent. The
declaration must be ready for presentation in the event that a CBP
officer boards the vessel. If no foreign repair-related expenses were
incurred, that fact must be reported either on the declaration form or
by approved electronic means. The CBP port of arrival receiving either a
positive or negative vessel repair 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 CBP 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
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
[[Page 28]]
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 agency 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 CBP. Relief may
be sought under paragraphs (a), (d), (e), or (h) of the vessel repair
statute (19 U.S.C. 1466(a), (d), (e), or (h)), each paragraph of which
relates to a different type of claim as further specified in 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 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.
[[Page 29]]
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 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
[[Page 30]]
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) Application for Relief; failure to file or denial in whole or in
part. If no Application for Relief is filed, or if a timely filed
Application for Relief is denied in whole or in part, the VRU will
determine the amount of duty due and issue a bill to the party who filed
the vessel repair entry. If the bill is not timely paid, interest will
accrue as provided in Sec. 24.3a(b)(1) of this chapter.
(4) 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 CBP, is subject to seizure and
forfeiture and is recoverable from the owner (see Sec. 162.72 of this
chapter). The owner or master of the vessel who fails to timely pay the
duty determined to be due is liable for interest as provided in Sec.
24.3a(b)(1) 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 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, as amended at 74 FR 53651, Oct. 20, 2009;
77 FR 17332, Mar. 26, 2012]
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
[[Page 31]]
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, 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.
[[Page 32]]
(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.
(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
[[Page 33]]
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 at www.fdsys.gov.
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 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).
(12) 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).
(13) 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.
(14) 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.
[[Page 34]]
(15) 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; CBP Dec. 12-21, 77 FR 73308, Dec. 10, 2012]
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
Cook Islands
Costa Rica
Cuba
Cyprus
Czechoslovakia
Denmark (including the Faeroe Islands)
Dominica
Dominican Republic
Ecuador
El Salvador
Estonia
Ethiopia
Fiji
Finland
France
Gambia, The
German Democratic Republic
German Federal Republic
Ghana
Great Britain (including the Cayman Islands)
Greece
Greenland
Guatemala
Guinea, Republic of
Guyana
Haiti
Honduras
Hong Kong
Hungarian People's Republic
Iceland
India
Indonesia
Iran
Iraq
Ireland (Eire)
Israel
Italy
Ivory Coast, Republic of
Jamaica
Japan
Kenya
Korea
Kuwait
Latvia
Lebanon
Liberia
Libya
Lithuania
Luxembourg
Malaysia
Malta
Marshall Islands, Republic of
Mauritius
Mexico
Monaco
Morocco
Nauru, Republic of
Netherlands
Netherlands Antilles
New Zealand
Nicaragua
Nigeria
Norway
Oman
Pakistan
Panama
Papua New Guinea
Paraguay
People's Republic of China
Peru
Philippines
Poland
Portugal
Qatar
Rumania
Saudi Arabia
Senegal
Singapore, Republic
Somali, Republic
Spain
Sri Lanka
St. Vincent and The Grenadines
Surinam, Republic of
Sweden
Switzerland
Syrian Arab Republic
Taiwan
Thailand
Togo
Tonga
Tunisia
Turkey
Tuvalu
Union of South Africa
Union of Soviet Socialist Republics
United Arab Emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah,
Sharjah, and Umm Al Qaiwain)
Uruguay
Vanuatu, Republic of
Venezuela
Yugoslavia
Zaire
[28 FR 14596, Dec. 31, 1963]
Editorial Note: For Federal Register citations affecting Sec. 4.22,
see the List of CFR Sections Affected, which appears in the Finding Aids
section of the printed volume and at www.fdsys.gov.
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
[[Page 35]]
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 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
[[Page 36]]
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
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
[[Page 37]]
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, 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
[[Page 38]]
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) CBP will not issue a permit to unlade before it has received the
cargo declaration information pursuant to Sec. 4.7(b)(2) or (4) of this
part. In cases in which CBP does not receive complete cargo declaration
information from the carrier or a NVOCC in the manner, format, and time
frame required by Sec. 4.7(b)(2) or (4), as appropriate, CBP may delay
issuance of the permit to unlade the entire vessel until all required
information is received. CBP may also decline to issue a permit to
unlade the specific cargo for which a cargo declaration is not received
in a timely manner under Sec. 4.7(b)(2) or (4). Further, where a
carrier does not transmit a cargo declaration in the manner required by
Sec. 4.7(b)(2) or (4), preliminary entry pursuant to Sec. 4.8(b) will
be denied.
[28 FR 14596, Dec. 31, 1963]
Editorial Note: For Federal Register citations affecting Sec. 4.30,
see the List of CFR Sections Affected, which appears in the Finding Aids
section of the printed volume and at www.fdsys.gov.
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 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
[[Page 39]]
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
(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
[[Page 40]]
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 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.
[[Page 41]]
(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 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
[[Page 42]]
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 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
[[Page 43]]
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]
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;
[[Page 44]]
(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.
(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:
[[Page 45]]
[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.
(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
[[Page 46]]
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, or its electronic equivalent, 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 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
[[Page 47]]
other such merchandise is subject to the same tariff classification as
like merchandise regularly imported in the ordinary course of trade.
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\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)
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(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.
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\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; CBP Dec.
15-14, 80 FR 61283, Oct. 13, 2015]
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 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 CBP before departing
[[Page 48]]
from a port or place in the United States:
(1) All vessels departing for a foreign port or place;
(2) All foreign vessels departing for another port or place in the
United States;
(3) All American vessels departing for another port or place in the
United States that have foreign merchandise for which entry has not been
made; and
(4) All vessels departing for points outside the territorial sea to
visit a hovering vessel or to receive 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) A vessel exempted from entry by section 441, Tariff Act of 1930.
(See Sec. 4.5.)
(3) A vessel of less than 5 net tons which departs from the United
States to proceed to a contiguous country otherwise than by sea.
(c) Vessels which will merely transit the Panama Canal without
transacting any business there will not be required to be cleared
because of such transit.
(d) In the event that departure is delayed beyond the second day
after clearance, the delay must be reported within 72 hours after
clearance to the port director who will note the fact of detention on
the certificate of clearance and on the official record of clearance.
When the proposed voyage is canceled after clearance, the reason
therefor must be reported in writing within 24 hours after such
cancellation and the certificate of clearance and related papers must be
surrendered.
(e) No vessel will be cleared for the high seas except, a vessel
bound to 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;
CBP Dec. 08-25, 73 FR 40725, July 16, 2008; CBP Dec. 10-33, 75 FR 69585,
Nov. 15, 2010]
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 CBP 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 CBP Form 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 CBP. Clearance will be granted by CBP either on the CBP
Form 1300 or by approved electronic means. CBP port directors may permit
the clearance of vessels at locations other than the customhouse, and at
times outside of normal business hours. CBP 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. CBP must be satisfied that the
place designated for clearance is sufficiently under CBP control at the
time of clearance, and that the expenses incurred by CBP will be
reimbursed as authorized. CBP 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
[[Page 49]]
ports must obtain CBP 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 CBP port director, and by presenting a
completed CBP Form 1300 (Vessel Entrance or Clearance Statement). Also,
the CBP 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 CBP 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; Electronic Export Information (EEI)
(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. 60106).
(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. 60109).
(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 all legal fees that have accrued on the vessel (46
U.S.C. 60107).
(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 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. 454(a)).
(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; CBP Dec. 17-06, 82 FR
32236, July 13, 2017]
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
[[Page 50]]
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; Electronic Export Information (EEI).
(a) No vessel will 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
CBP officer at the port from which clearance is being sought:
(1) A Cargo Declaration Outward With Commercial Forms, CBP Form
1302A. 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, CBP Form 1300, and EEI 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 Internal Transaction Number
(ITN) of the Electronic Export Information (EEI) covering each shipment
for which EEI is required must be shown on the Cargo Declaration Outward
With Commercial Forms, CBP Form 1302A, in the marginal column headed
``B/L No.'' If EEI is not required for a shipment, a notation must be
made on the Cargo Declaration Outward With Commercial Forms (CBP Form
1302A) describing the basis for the exemption or exclusion using the
reference number found in the Census Bureau's Foreign Trade Regulations
(see 15 CFR part 30, appendix B) where the particular exemption or
exclusion is provided.
(c) The following minimal information must be included on the Cargo
Declaration Outward With Commercial Forms, CBP Form 1302A (other
information required to be on a CBP Form 1302A 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 CBP Form 1302A show on their face the cargo information
required by columns 6, 7, and either column 8 or 9, of the CBP Form
1302A, that information need not be shown again on the CBP Form 1302A.
However, in that case, the cargo information must be incorporated by a
suitable reference on the face of the CBP Form 1302A 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, CBP Form 1302A, or commercial
document attached to the Cargo Declaration and made a part thereof in
accordance with paragraph (a)(1) of this section, must 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) CBP officers will accept a Cargo Declaration Outward With
Commercial Forms, CBP Form 1302A, 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, as amended by CBP Dec. 17-06, 82 FR 32236, July 13, 2017]
[[Page 51]]
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;
(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
[[Page 52]]
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, 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
[[Page 53]]
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 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]
[[Page 54]]
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
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
[[Page 55]]
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 or missing Electronic
Export Information (EEI); 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 CBP port director a complete Cargo
Declaration Outward with Commercial Forms, CBP Form 1302A (see Sec.
4.63) in accordance with 46 U.S.C. 60105, or all required EEI filing
citations, exclusions, and/or exemption legends (see 15 CFR 30.47), the
CBP port director may accept in lieu thereof an incomplete manifest
(referred to as a pro forma manifest) on the Vessel Entrance or
Clearance Statement, CBP Form 1300, if there is on file in his office a
bond on CBP 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 EEI. Not later than
the fourth business day after clearance from each port of lading in the
vessel's itinerary, the master, or the vessel's agent on behalf of the
master, must submit to the director of each port a complete Cargo
Declaration Outward with Commercial Forms, CBP Form 1302A, in accordance
with Sec. 4.63, of the cargo laden at such port together with all
required EEI filing citations, exclusions, and/or exemption legends for
such cargo and a Vessel Entrance or Clearance Statement, CBP Form 1300.
The statutory grace period of four (4) days for filing the complete
manifest and missing EEI begins to run on the first day (exclusive of
any day on which the U.S. port of lading 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 EEI are filed. To aid CBP in the enforcement of export
laws and regulations, no vessel will be cleared for any port in the
following countries until a complete outward foreign manifest and all
required EEI filing citations, exclusions, and/or exemption legends 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; CBP Dec.
17-06, 82 FR 32237, July 13, 2017]
[[Page 56]]
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 30.5. A sea carrier certified to use the module that adheres to the
procedures set forth in this section and the Census Bureau's Foreign
Trade 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 (AESTIR) available on the CBP Web site, http://www.cbp.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 AESTIR. CBP
will send messages to participant carriers regarding the accuracy of
their transmissions. Carriers and their agents are required to comply
with the recordkeeping requirements contained at Sec. 30.10 of the
Census Bureau's Foreign Trade Regulations (15 CFR 30.10) and any other
applicable recordkeeping requirements. When the exporter submits
Electronic Export Information (EEI) prior to departure, carriers will be
responsible for annotating the manifest with the Internal Transaction
Number (ITN) without change and submitting the manifest to CBP within
four (4) business days after the departure of the vessel from each port
unless a different time requirement is specified in Sec. 4.75 or Sec.
4.84.
(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 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, as amended by CBP Dec. 17-06,
82 FR 32237, July 13, 2017]
[[Page 57]]
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 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. 55102).
(2) The penalty imposed for the unlawful transportation of
passengers between coastwise points is $300 for each passenger so
transported and landed on or before November 2, 2015, and $762 for each
passenger so transported and landed after November 2, 2015 (46 U.S.C.
55103, as adjusted by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015).
(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. 12118),
shall be used in any trade other than the coastwise 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. 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. 50501), 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 or documented under the
laws of the United States, will have the right to engage in such trade
if it:
(1) Thereafter has been sold foreign in whole or in part or placed
under foreign registry, unless such vessel is 200
[[Page 58]]
gross tons or less (as measured under chapter 143 of title 46, United
States Code); or
(2) Has been rebuilt, unless the entire rebuilding, including the
construction of any major components of the hull or superstructure of
the vessel, was effected within the United States.
(f) No foreign-built vessel owned and documented as a vessel of the
United States prior to February 1, 1920, by a citizen nor one owned by
the United States on June 5, 1920, and sold to and owned by a citizen,
shall engage in the American fisheries, but it is otherwise unlimited as
to trade so long as it 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. 56101 and 57109). 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. 12117).
Notwithstanding 46 U.S.C. 55102, 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 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 or fishing 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; CBP Dec. 08-25, 73 FR
40725, July 16, 2008; CBP Dec. 12-21, 77 FR 73308, Dec. 10, 2012; CBP
Dec. 17-20, 82 FR 57824, Dec. 8, 2017]
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.
[[Page 59]]
(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. 55103) 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. 55104 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 transportation
in violation of 46 U.S.C. 55103. 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; CBP
Dec. 12-21, 77 FR 73308, Dec. 10, 2012]
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
[[Page 60]]
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. 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. 4.82, Sec.
4.84, Sec. 4.85, Sec. 4.87, Sec. 4.89, or Sec. 4.91 of the
regulations of this part, may appear in person at the customhouse for
that purpose,
[[Page 61]]
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, CBP Form 1300, must be presented to the appropriate
CBP 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
Electronic Export Information (EEI) 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, CBP 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 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
[[Page 62]]
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; CBP Dec. 17-06, 82 FR 32237, July 13, 2017]
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 must 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 must describe the merchandise and show the marks and numbers of the
packages, the names of the shippers and consignees, and the
destinations. The port director will certify the two copies and return
them to the master. Merchandise carried by the vessel in bond under a
transportation entry pursuant to part 18 of this chapter is not to 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. 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
[[Page 63]]
cargo, shall be treated as imported merchandise.
[T.D. 77-255, 42 FR 56322, Oct. 25, 1977, as amended by T.D. 83-214, 48
FR 46513, Oct. 13, 1983; T.D. 84-193, 49 FR 35485, Sept. 10, 1984; T.D.
99-64, 64 FR 43265, Aug. 10, 1999; CBP Dec. 08-25, 73 FR 40725, July 16,
2008; CBP Dec. 17-13, 82 FR 45393, Sept. 28, 2017]
Sec. 4.83 Trade between United States ports on the Great Lakes
and other ports of the United States.
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.
[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; CBP Dec. 12-21,
77 FR 73308, Dec. 10, 2012]
Sec. 4.84 Trade with noncontiguous territory.
(a) No foreign vessel will 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 will 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 the filing of Electronic
Export Information (EEI).
(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.
(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, will not be permitted to
depart without filing a complete manifest, when required by the Census
Bureau's Foreign Trade Regulations (15 CFR part 30), and all required
EEI, unless before the vessel departs an approved bond is filed for the
timely production of the required documents, as specified in 15 CFR
30.47. Requests for permission to depart may be written or oral and
permission to depart will be granted orally by the appropriate CBP
officer. However, if the request is to depart prior to the filing of the
required manifest and EEI, permission will not be granted unless the
appropriate bond is on file. In the latter case, the CBP officer will
keep a simplified record of the necessary information in order to assure
that the manifest and EEI are filed within the required time period. The
Vessel Entrance or Clearance Statement, CBP 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 must file a complete manifest,
[[Page 64]]
when required by the the Census Bureau's Foreign Trade Regulations (15
CFR part 30), and all required EEI within one business day after
arrival, as defined in Sec. 4.2(b) of this part, with the appropriate
CBP officer in Puerto Rico. If the complete manifest and all required
EEI are not filed with the appropriate CBP officer within that time
frame, an appropriate bond must be filed with the CBP officer for the
timely production of the required documents as specified in 15 CFR
30.47. In these instances when a bond is filed, the CBP officer will
keep a simplified record of the necessary information in order to ensure
that the manifest and EEI 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 must
immediately report its arrival and must 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 will 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 must 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, CBP Form 1300, will 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; CBP Dec. 17-06, 82 FR
32237, July 13, 2017]
Sec. 4.85 Vessels with residue cargo for domestic ports.
(a) Any foreign vessel or documented vessel with a registry
endorsement, arriving from a foreign port with cargo or passengers
manifested for ports in the United States other than the port of first
arrival, may proceed with such cargo or passengers from port to port,
provided a bond on 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,
[[Page 65]]
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:
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
[[Page 66]]
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; CBP Dec. 12-21,
77 FR 73308, Dec. 10, 2012]
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 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, CBP Form 1300, in duplicate and a Cargo
Declaration Outward With Commercial Forms, CBP Form 1302A, 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, CBP Form 1300. One copy will be returned to the
master, together with the vessel's document if on deposit. The traveling
Crew's Effects Declaration, CBP Form 1304, together with any unused
crewmembers' declarations, will be placed in a sealed envelope addressed
to the appropriate CBP 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, CBP Form 1300, received by
him upon departure from the last port, a Crew's Effects Declaration, CBP
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, CBP 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.
[[Page 67]]
(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,
CBP Form 1302A (see Sec. 4.63), and all required Electronic Export
Information (EEI) filing citations, exclusions, and/or exemption legends
are not available for filing before departure of a vessel from any port,
clearance on the Vessel Entrance or Clearance Statement, CBP 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, CBP Form
1302A (see Sec. 4.63), and the EEI to cover the cargo laden for export
at that port.
[T.D. 77-255, 42 FR 56324, Oct. 25, 1977, as amended by T.D. 83-214, 48
FR 46513, Oct. 13, 1983; T.D. 84-193, 49 FR 35485, Sept. 10, 1984; T.D.
92-74, 57 FR 35752, Aug. 11, 1992; T.D. 93-96, 58 FR 67317, Dec. 21,
1993; T.D. 00-22, 65 FR 16517, Mar. 29, 2000; CBP Dec. 08-25, 73 FR
40725, July 16, 2008; CBP Dec. 17-06, 82 FR 32237, July 13, 2017]
Sec. 4.88 Vessels with residue cargo for foreign ports.
(a) Any foreign vessel or documented vessel with a registry
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 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; CBP Dec. 08-25, 73
FR 40725, July 16, 2008]
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. 4.85, Sec. 4.86, or Sec. 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
[[Page 68]]
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. 4.85, Sec. 4.86, or
Sec. 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. 4.85, Sec. 4.86, or Sec. 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. Such a vessel shall
not engage in transactions (1) or (3) unless permitted by the
endorsement on its Certificate of Documentation to do so.
(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; CBP
Dec. 08-25, 73 FR 40725, July 16, 2008]
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 inSec. 4.81(e),
Sec. 4.85, Sec. 4.87, or Sec. 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
[[Page 69]]
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. 4.85, Sec. 4.87, or Sec. 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]
Sec. 4.92 Towing.
No vessel other than a vessel documented for the coastwise 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. 55111). The penalties for violation of this
provision occurring on or before November 2, 2015, 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. The penalties for violation of this provision occurring after
November 2, 2015, are a fine of from $889 to $2,795 against the owner or
master of the towing vessel and a further penalty against the towing
vessel of $152 per ton of the towed vessel (46 U.S.C. 55111, as adjusted
by the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015).
[CBP Dec. 17-20, 82 FR 57824, Dec. 8, 2017]
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
[[Page 70]]
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
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
[[Page 71]]
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 at www.fdsys.gov.
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 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
[[Page 72]]
Belgium
Bermuda
Canada
Denmark
Finland
France
Germany, Federal Republic of
Greece
Honduras
Ireland
Italy
Jamaica
Liberia
Marshall Islands
Netherlands
New Zealand
Norway
Saint Kitts and Nevis
Saint Vincent and the Grenadines
Sweden
Switzerland
Turkey
United Kingdom and the Dependencies: the Anguilla Islands, the Isle of
Man, the British Virgin Islands, the Cayman Islands, and the Turks and
Caicos Islands
(c) In order to obtain a cruising 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.
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.
[[Page 73]]
(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 at www.fdsys.gov.
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 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, or its electronic
equivalent) 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, or its electronic
[[Page 74]]
equivalent) 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 Center director.
[68 FR 13625, Mar. 20, 2003, as amended by CBP Dec. 15-14, 80 FR 61283,
Oct. 13, 2015; CBP Dec. 16-26, 81 FR 93009, Dec. 20, 2016]
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 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
[[Page 75]]
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 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
[[Page 76]]
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))
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(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 article II of the treaty
between the United States and Great Britain signed on May 18, 1908,
\134\ or by section 725,
[[Page 77]]
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.
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\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.
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(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\
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\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 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
[[Page 78]]
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 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
[[Page 79]]
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.
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
[[Page 80]]
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.)
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\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)
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(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\
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\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 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.
[[Page 81]]
Virgin Islands through the U.S. Customs and Border Protection. 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, as amended by CBP Dec. 08-25,
73 FR 40725, July 16, 2008]
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 will 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
(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
[[Page 82]]
goods will 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 will 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
Center 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 Center 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 will be subject to such verification as
deemed necessary by the Center director. Evidence of direct shipment
will not be required when the Center 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 provided in paragraph (a)(1) of this section, an importer must
have in his possession at the time of entry or entry summary a completed
certificate of origin on CBP Form 3229, or its electronic equivalent,
showing that the goods comply with the requirements for duty-free entry
set forth in paragraph (a)(1) of this section. The importer must provide
CBP Form 3229, or its electronic equivalent, upon request by the Center
director or his delegate. Except in the case of goods which incorporate
a material described in paragraph (c)(3)(ii) of this section, a
certificate of origin will not be required for any shipment eligible for
informal entry under Sec. 143.21 of this chapter or in
[[Page 83]]
any case where the Center 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
must be filed with the entry/entry summary unless the Center 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 ______, 20__, 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 ______, 20__.
----------------------------------------------------------------------------------------------------------------
Marks Numbers Quantity Description Value
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Dated at ________, this ____ day of ______, 20__.
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 ______, 20__.
________________________________________________________________________
(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, as amended by CBP Dec. 08-25,
73 FR 40725, July 16, 2008; CBP Dec. 15-04, 80 FR 7539, Feb. 11, 2015;
CBP Dec. 15-14, 80 FR 61283, Oct. 13, 2015; CBP Dec. 16-26, 81 FR 93009,
Dec. 20, 2016]
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 CBP for the refund of duties paid on imports of watches, watch
movements (including solid state watches and watch movements), and watch
parts (excepting separate
[[Page 84]]
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 CBP 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 CBP 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 CBP the declaration on the
form which reads as follows:
I declare that the information given above is true and correct to
the best of my 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 CBP personnel processing
the request.
(g) Form ITA-360 expires 1 year from its date of issuance. Any
refund request on Form ITA-361 made by either the insular producer
itself or any 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) CBP 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 ; CBP Dec. 08-25,
73 FR 40725, July 16, 2008]
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]
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.
[[Page 85]]
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.
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.
[[Page 86]]
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 $800.
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.
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.
[[Page 87]]
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.
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.
[[Page 88]]
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 tariff
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.
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.
[[Page 89]]
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
General Provisions
10.581 Scope.
10.582 General definitions.
Import Requirements
10.583 Filing of claim for preferential tariff treatment upon
importation.
10.584 Certification.
10.585 Importer obligations.
10.586 Certification not required.
10.587 Maintenance of records.
10.588 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.589 Certification for goods exported to a Party.
Post-Importation Duty Refund Claims
10.590 Right to make post-importation claim and refund duties.
10.591 Filing procedures.
10.592 CBP processing procedures.
Rules of Origin
10.593 Definitions.
10.594 Originating goods.
10.595 Regional value content.
10.596 Value of materials.
10.597 Accumulation.
10.598 De minimis.
10.599 Fungible goods and materials.
10.600 Accessories, spare parts, or tools.
10.601 Retail packaging materials and containers.
10.602 Packing materials and containers for shipment.
10.603 Indirect materials.
10.604 Transit and transshipment.
10.605 Goods classifiable as goods put up in sets.
Tariff Preference Level
10.606 Filing of claim for tariff preference level.
10.607 Goods eligible for tariff preference level claims.
10.608 Submission of certificate of eligibility for certain apparel
goods of Nicaragua.
10.609 Transshipment of non-originating cotton or man-made fiber apparel
goods.
10.610 Effect of noncompliance; failure to provide documentation
regarding transshipment of non-originating cotton or man-made
fiber apparel goods.
Origin Verifications and Determinations
10.616 Verification and justification of claim for preferential tariff
treatment.
10.617 Special rule for verifications in a Party of U.S. imports of
textile and apparel goods.
10.618 Issuance of negative origin determinations.
10.619 Repeated false or unsupported preference claims.
Penalties
10.620 General.
10.621 Corrected claim or certification by importers.
10.622 Corrected certification by exporters or producers.
10.623 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.624 Goods re-entered after repair or alteration in a Party.
Retroactive Preferential Tariff Treatment for Textile and Apparel Goods
10.625 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.
[[Page 90]]
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_United States-Australia Free Trade Agreement
General Provisions
10.721 Scope.
10.722 General definitions.
Import Requirements
10.723 Filing of claim for preferential tariff treatment upon
importation.
10.724 Supporting statement.
10.725 Importer obligations.
10.726 Supporting statement not required.
10.727 Maintenance of records.
10.728 Effect of noncompliance; failure to provide documentation
regarding third country transportation.
Rules of Origin
10.729 Definitions.
10.730 Originating goods.
10.731 Textile and apparel goods classifiable as goods put up in sets.
10.732 De minimis.
10.733 Accumulation.
10.734 Regional value content.
10.735 Value of materials.
10.736 Accessories, spare parts, or tools.
10.737 Fungible goods and materials.
10.738 Retail packaging materials and containers.
10.739 Packing materials and containers for shipment.
10.740 Indirect materials.
10.741 Third country transportation.
Origin Verifications and Determinations
10.742 Verification and justification of claim for preferential
treatment.
10.743 Special rule for verifications in Australia of U.S. imports of
textile and apparel goods.
10.744 Issuance of negative origin determinations.
Penalties
10.745 General.
10.747 Framework for correcting claims or supporting statements.
Goods Returned After Repair or Alteration
10.748 Goods re-entered after repair or alteration in Australia.
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.
Origin Verifications and Determinations
10.784 Verification and justification of claim for preferential
treatment.
10.785 Issuance of negative origin determinations.
Penalties
10.786 Violations relating to the MFTA.
Goods Returned After Repair or Alteration
10.787 Goods re-entered after repair or alteration in Morocco.
[[Page 91]]
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 and 2008
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.
Subpart P_United States-Oman Free Trade Agreement
General Provisions
10.861 Scope.
10.862 General definitions.
Import Requirements
10.863 Filing of claim for preferential tariff treatment upon
importation.
10.864 Declaration.
10.865 Importer obligations.
10.866 Declaration not required.
10.867 Maintenance of records.
10.868 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Post-Importation Duty Refund Claims
10.869 Right to make post-importation claim and refund duties.
10.870 Filing procedures.
10.871 CBP processing procedures.
Rules of Origin
10.872 Definitions.
10.873 Originating goods.
10.874 Textile or apparel goods.
10.875 Accumulation.
10.876 Value of materials.
10.877 Direct costs of processing operations.
10.878 Packaging and packing materials and containers for retail sale
and for shipment.
10.879 Indirect materials.
10.880 Imported directly.
Tariff Preference Level
10.881 Filing of claim for tariff preference level.
10.882 Goods eligible for tariff preference claims.
10.883 [Reserved]
10.884 Declaration.
10.885 Transshipment of non-originating apparel goods.
10.886 Effect of non-compliance; failure to provide documentation
regarding transshipment of non-originating apparel goods.
[[Page 92]]
Origin Verifications and Determinations
10.887 Verification and justification of claim for preferential
treatment.
10.888 Issuance of negative origin determinations.
Penalties
10.889 Violations relating to the OFTA.
Goods Returned After Repair or Alteration
10.890 Goods re-entered after repair or alteration in Oman.
Subpart Q_United States-Peru Trade Promotion Agreement
General Provisions
10.901 Scope.
10.902 General definitions.
Import Requirements
10.903 Filing of claim for preferential tariff treatment upon
importation.
10.904 Certification.
10.905 Importer obligations.
10.906 Certification not required.
10.907 Maintenance of records.
10.908 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.909 Certification for goods exported to Peru.
Post-Importation Duty Refund Claims
10.910 Right to make post-importation claim and refund duties.
10.911 Filing procedures.
10.912 CBP processing procedures.
Rules of Origin
10.913 Definitions.
10.914 Originating goods.
10.915 Regional value content.
10.916 Value of materials.
10.917 Accumulation.
10.918 De minimis.
10.919 Fungible goods and materials.
10.920 Accessories, spare parts, or tools.
10.921 Goods classifiable as goods put up in sets.
10.922 Retail packaging materials and containers.
10.923 Packing materials and containers for shipment.
10.924 Indirect materials.
10.925 Transit and transshipment.
Origin Verifications and Determinations
10.926 Verification and justification of claim for preferential tariff
treatment.
10.927 Special rule for verifications in Peru of U.S. imports of textile
and apparel goods.
10.928 Issuance of negative origin determinations.
10.929 Repeated false or unsupported preference claims.
Penalties
10.930 General.
10.931 Corrected claim or certification by importers.
10.932 Corrected certification by U.S. exporters or producers.
10.933 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.934 Goods re-entered after repair or alteration in Peru.
Subpart R_United States-Korea Free Trade Agreement
General Provisions
10.1001 Scope.
10.1002 General definitions.
Import Requirements
10.1003 Filing of claim for preferential tariff treatment upon
importation.
10.1004 Certification.
10.1005 Importer obligations.
10.1006 Certification not required.
10.1007 Maintenance of records.
10.1008 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.1009 Certification for goods exported to Korea.
Post-Importation Duty Refund Claims
10.1010 Right to make post-importation claim and refund duties.
10.1011 Filing procedures.
10.1012 CBP processing procedures.
Rules of Origin
10.1013 Definitions.
10.1014 Originating goods.
10.1015 Regional value content.
10.1016 Value of materials.
10.1017 Accumulation.
10.1018 De minimis.
10.1019 Fungible goods and materials.
10.1020 Accessories, spare parts, or tools.
10.1021 Goods classifiable as goods put up in sets.
10.1022 Retail packaging materials and containers.
10.1023 Packing materials and containers for shipment.
[[Page 93]]
10.1024 Indirect materials.
10.1025 Transit and transshipment.
Origin Verifications and Determinations
10.1026 Verification and justification of claim for preferential tariff
treatment.
10.1027 Special rule for verifications in Korea of U.S. imports of
textile and apparel goods.
10.1028 Issuance of negative origin determinations.
10.1029 Repeated false or unsupported preference claims.
Penalties
10.1030 General.
10.1031 Corrected claim or certification by importers.
10.1032 Corrected certification by U.S. exporters or producers.
10.1033 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.1034 Goods re-entered after repair or alteration in Korea.
Subpart S_United States-Panama Trade Promotion Agreement
General Provisions
10.2001 Scope.
10.2002 General definitions.
Import Requirements
10.2003 Filing of claim for preferential tariff treatment upon
importation.
10.2004 Certification.
10.2005 Importer obligations.
10.2006 Certification not required.
10.2007 Maintenance of records.
10.2008 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.2009 Certification for goods exported to Panama.
Post-Importation Duty Refund Claims
10.2010 Right to make post-importation claim and refund duties.
10.2011 Filing procedures.
10.2012 CBP processing procedures.
Rules of Origin
10.2013 Definitions.
10.2014 Originating goods.
10.2015 Regional value content.
10.2016 Value of materials.
10.2017 Accumulation.
10.2018 De minimis.
10.2019 Fungible goods and materials.
10.2020 Accessories, spare parts, or tools.
10.2021 Goods classifiable as goods put up in sets.
10.2022 Retail packaging materials and containers.
10.2023 Packing materials and containers for shipment.
10.2024 Indirect materials.
10.2025 Transit and transshipment.
Origin Verifications and Determinations
10.2026 Verification and justification of claim for preferential tariff
treatment.
10.2027 Special rule for verifications in Panama of U.S. imports of
textile and apparel goods.
10.2028 Issuance of negative origin determinations.
10.2029 Repeated false or unsupported preference claims.
Penalties
10.2030 General.
10.2031 Corrected claim or certification by importers.
10.2032 Corrected certification by U.S. exporters or producers.
10.2033 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.2034 Goods re-entered after repair or alteration in Panama.
Subpart T_United States-Colombia Trade Promotion Agreement
General Provisions
10.3001 Scope.
10.3002 General definitions.
Import Requirements
10.3003 Filing of claim for preferential tariff treatment upon
importation.
10.3004 Certification.
10.3005 Importer obligations.
10.3006 Certification not required.
10.3007 Maintenance of records.
10.3008 Effect of noncompliance; failure to provide documentation
regarding transshipment.
Export Requirements
10.3009 Certification for goods exported to Colombia.
Post-Importation Duty Refund Claims
10.3010 Right to make post-importation claim and refund duties.
10.3011 Filing procedures.
10.3012 CBP processing procedures.
Rules of Origin
10.3013 Definitions.
10.3014 Originating goods.
[[Page 94]]
10.3015 Regional value content.
10.3016 Value of materials.
10.3017 Accumulation.
10.3018 De minimis.
10.3019 Fungible goods and materials.
10.3020 Accessories, spare parts, or tools.
10.3021 Goods classifiable as goods put up in sets.
10.3022 Retail packaging materials and containers.
10.3023 Packing materials and containers for shipment.
10.3024 Indirect materials.
10.3025 Transit and transshipment.
Origin Verifications and Determinations
10.3026 Verification and justification of claim for preferential tariff
treatment.
10.3027 Special rule for verifications in Colombia of U.S. imports of
textile and apparel goods.
10.3028 Issuance of negative origin determinations.
10.3029 Repeated false or unsupported preference claims.
Penalties
10.3030 General.
10.3031 Corrected claim or certification by importers.
10.3032 Corrected certification by exporters or producers.
10.3033 Framework for correcting claims or certifications.
Goods Returned After Repair or Alteration
10.3034 Goods re-entered after repair or alteration in Colombia.
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;
Section 10.121 also issued under 19 U.S.C. 2501.
Sections 10.171 through 10.178a also issued under 19 U.S.C. 2461 et
seq.;
Section 10.183 also issued under 19 U.S.C. 1202 (General Note 6,
HTSUS);
Sections 10.191 through 10.199 also issued under 19 U.S.C. 2701 et
seq.;
Sections 10.201 through 10.207 also issued under 19 U.S.C. 3203;
Sections 10.211 through 10.217 also issued under 19 U.S.C. 3721;
Sections 10.221 through 10.228 and 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).
Sections 10.581 through 10.625 also issued under 19 U.S.C. 1202
(General Note 29, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 109-53, 119
Stat. 462 (19 U.S.C. 4001 note).
Section 10.699 also issued under Pub. L. 109-53, 119 Stat. 462.
Sections 10.701 through 10.712 also issued under 19 U.S.C. 1202
(General Note 18, HTSUS) and Pub. L. 107-43, 115 Stat. 243 (19 U.S.C.
2112 note).
Sections 10.721 through 10.748 also issued under 19 U.S.C. 1202
(General Note 28, HTSUS) and Pub. L. 108-286, 118 Stat. 919 (19 U.S.C.
3805 note).
Sections 10.761 through 10.789 also issued under Pub. L. 108-302,
118 Stat. 1103 (19 U.S.C. 3805 note).
Sections 10.801 through 10.829 also issued under 19 U.S.C. 1202
(General Note 30, HTSUS) and Pub. L. 109-169, 119 Stat. 3581 (19 U.S.C.
3805 note).
Sections 10.841 through 10.850 also issued under 19 U.S.C. 2703A.
Sections 10.861 through 10.890 also issued under 19 U.S.C. 1202
(General Note 31, HTSUS) and Pub. L. 109-283, 120 Stat. 1191 (19 U.S.C.
3805 note).
Sections 10.901 through 10.934 also issued under 19 U.S.C. 1202
(General Note 32, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 110-138, 121
Stat. 1455 (19 U.S.C. 3805 note).
Sections 10.1001 through 10.1034 also issued under 19 U.S.C. 1202
(General Note 33, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-41, 125
Stat. 428 (19 U.S.C. 3805 note).
Sections 10.2001 through 10.2034 also issued under 19 U.S.C. 1202
(General Note 35, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-43, 125
Stat. 497 (19 U.S.C. 3805 note).
[[Page 95]]
Sections 10.3001 through 10.3034 also issued under 19 U.S.C. 1202
(General Note 34, HTSUS), 19 U.S.C. 1520(d), and Pub. L. 112-42, 125
Stat. 462 (19 U.S.C. 3805 note).
Source: 28 FR 14663, Dec. 31, 1963, unless otherwise noted.
Editorial Note: Nomenclature changes to part 10 appear by CBP Dec.
16-26, 81 FR 93010, Dec. 20, 2016.
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 must be filed in connection with the
entry of articles in a shipment valued over $2,500 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 ________, 20__, 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 must 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)
(b) In any case in which the value of the returned articles exceeds
$2,500 and the articles are not clearly marked with the name and address
of the U.S. manufacturer, the Center 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
[[Page 96]]
the declaration of the foreign shipper required by paragraph (a)(1) of
this section.
(d) If the Center 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, will 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'' must be crossed out, and the
entrant must 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
CBP Form 3311, or its electronic equivalent. The entry summary on CBP
Form 3311, or its electronic equivalent, must be executed by the entrant
and supported by the entry documentation required by Sec. 142.3 of this
chapter. If the CBP 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 will not be
required, and no bond need be filed for their production.
(2) The entrant must show on CBP Form 3311, or its electronic
equivalent:
(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 CBP Form 3311, or its electronic equivalent, is filed at time
of entry, it will 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
under subheading 9801.00.10, HTSUS, the entry summary may be made on CBP
Form 3311, or its electronic equivalent. The entry summary on CBP Form
3311, or its electronic equivalent, must 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 CBP Form 3311, or its
electronic equivalent, may be accepted for nonconsumable vessel stores
and equipment, the CBP officer must 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
[[Page 97]]
(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
will not be required in connection with an entry for nonconsumable
vessel stores and equipment on CBP Form 3311, or its electronic
equivalent.
(3) To satisfy the CBP 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 must furnish a written declaration which may be made on the
reverse side of CBP Form 3311, or its electronic equivalent, 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 must 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 CBP Form 3311, or its electronic equivalent, is filed at time
of entry, it will 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 CBP Form 3311, or its electronic equivalent,
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 CBP 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 must
show on Customs Form 3311, or its electronic equivalent, 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 must 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, or its
electronic equivalent.
(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 CBP Form 3311, or its
electronic equivalent, (a CBP Form 7501, or its electronic equivalent,
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 CBP officer has reason to believe that CBP 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 must show on CBP Form 3311, or its electronic
equivalent, 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 must also produce evidence of his right to make entry (except as
provided in Sec. 141.11(b) of this chapter). If the CBP 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
[[Page 98]]
consignee thereof may be required to execute a CBP Form 3311, or its
electronic equivalent.
[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;
77 FR 72718, Dec. 6, 2012; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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 Center 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
Center 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
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
[[Page 99]]
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 24 cents each.
in 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 meter.
yarn dyed).
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 Center 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]
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
[[Page 100]]
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, or its electronic
equivalent.
(e) The Certificate of Registration, CF 4455, or its electronic
equivalent, 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, or its
electronic equivalent, 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 its electronic
equivalent, 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, or its electronic equivalent, 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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, or its electronic equivalent, at the time of filing
the entry. Upon receipt, from the director of the port of exportation of
the shooks and staves, of corroboration that the records of exportation
do not conflict materially with such a claim, the exemption may be
allowed. If the claim for an exemption is disallowed in full or in part,
the importer may file a request within 15 days of the date of the port
director's notice to him of any disallowance, for referral of the
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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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
[[Page 101]]
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 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.
[[Page 102]]
----------------------------------------------------------------------------------------------------------------
Full cost or (when no
Description of charge is made) value of Total value of
Marks and numbers articles and of repairs or alterations (see articles after repairs
repairs or alterations subchapter II, chapter 98, or alterations
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 Center 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 Center 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 or Center 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 process of manufacture or other means while abroad.
(3) The articles did not conform to sample or specifications abroad.
[[Page 103]]
(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 Center 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
Description of charge is made) value of Total value of
Marks and numbers articles and of processing (see subchapter articles after
processing II, chapter 98, HTSUS) processing
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
[[Page 104]]
________________________________________________________________________
(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 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 Center 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 Center 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 or Center 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
[[Page 105]]
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 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.
[[Page 106]]
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 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
[[Page 107]]
the computer. The foreign-made components have undergone a substantial
transformation by becoming permanent parts of the circuit board
assembly. The circuit board assembly, including all of its parts is
regarded as a 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 will not
preclude the application of the
[[Page 108]]
exemption. The following are examples of operations which are incidental
to the assembly process:
(1) Cleaning;
(2) Removal of rust, grease, paint, or other preservative coating;
(3) Application of paint or preservative 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, will not be regarded as incidental to the assembly and will
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) Chemical treatment of components or assembled articles to impart
new characteristics, such as showerproofing, permapressing, sanforizing,
dying or bleaching of textiles;
(4) 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 their assembly will
not be disqualified
[[Page 109]]
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; CBP Dec. 08-21, 73 FR 33300, June 12, 2008]
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 Center 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 110]]
----------------------------------------------------------------------------------------------------------------
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 Center 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 Center director, or to records
showing costs, names of manufacturers, and other necessary data on
components, provided the importer has arranged with the Center 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 Center 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 Center 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 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
[[Page 111]]
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:
(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;
[[Page 112]]
(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, or its electronic equivalent, is filed at
time of entry, it shall serve as both the entry and entry summary, and
Customs Form 3461, or its electronic equivalent, or 7533 shall not be
required. Customs Form 7501, or its electronic equivalent, 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 Center 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 United States beyond 90 days, formal entry and bond shall be
taken.
(c) When any article has been admitted without formal entry or
security
[[Page 113]]
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 CBP
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 Center
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 CBP 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, Singapore, Chile, Morocco, Australia, El Salvador,
Guatemala, Honduras, Nicaragua, the Dominican Republic, Costa Rica,
Bahrain, Oman, Peru, the Republic of Korea, Colombia, or Panama 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, 28, 29, 30, 31, 32,
33, 34, and 35, HTSUS, in the country of which the importer is a
resident.
(g) Claim for free entry under Chapter 98, Subchapter XIII, HTSUS
may be
[[Page 114]]
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 the articles have not been released from CBP custody,
or even though released from CBP 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 514(a), Tariff
Act of 1930, as amended, and was brought to the attention of CBP within
the time limits of that section. If an entry is so amended, the period
of time during which the merchandise may 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 CBP 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]
Editorial Note: For Federal Register citations affecting Sec.
10.31, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and at www.fdsys.gov.
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 CBP invoice, and professional
equipment, tools of trade, and repair components for such equipment or
tools imported in his baggage for his own use by a nonresident
sojourning temporarily in the United States may be entered on the
importer's baggage declaration in lieu of formal entry and examination
and may be passed under subheadings 9813.00.20 or 9813.00.50, Harmonized
Tariff Schedule of the United States,
[[Page 115]]
(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 9817.00.98, 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 CBP officers at the port of exit, and in clearing them through
CBP on his return. Cancellation of the bond shall be effected by
exportation in accordance with the provisions of 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 and Border
Protection.
(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 CBP invoice
furnished by him may be certified by the examining officer and returned
to the traveler for use in registering the samples with CBP officers at
the port of exit, and in clearing them through CBP upon his return.
Cancellation of the bond shall be effected by exportation in accordance
with the provisions of 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; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010]
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 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
[[Page 116]]
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 Center director upon written application on CBP
form 3173, which may be submitted to CBP, either at the port of entry or
electronically 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 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
[[Page 117]]
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 Center director a certificate of the importer that the
articles were destroyed during the course of a specifically described
use, and the Center 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
Center director may require the production of a landing certificate
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
[[Page 118]]
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 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
[[Page 119]]
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]
Editorial Note: For Federal Register citations affecting Sec.
10.39, see the List of CFR Sections Affected, which appears in the
Finding Aids section of the printed volume and at www.fdsys.gov.
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 of the United States under bond (including any
lawful extension), the Center 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 Center
director within 60 days after the date of the notice. If such an
application is timely filed, the
[[Page 120]]
transfer of the cash deposit to the regular account as liquidated
damages shall be deferred pending the decision of the Headquarters, U.S.
Customs and Border Protection or, in appropriate cases, the Center
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; CBP Dec. 16-26, 81
FR 93013, Dec. 20, 2016]
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 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
[[Page 121]]
which is an instrument of international traffic. The Center 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 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
[[Page 122]]
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 CBP,
either at the port of entry or electronically 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 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
[[Page 123]]
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 at www.fdsys.gov.
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 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
[[Page 124]]
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.
(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
[[Page 125]]
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 Electronic Export Information (EEI).
(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 126]]
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; CBP Dec. 17-06, 82 FR 32238,
July 13, 2017]
Articles for Institutions
Sec. 10.43 Duty-free status.
(a) The Center 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, or its electronic equivalent, 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 Center 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 Center director.
[T.D. 94-3, 58 FR 68742, Dec. 29, 1993, as amended by CBP Dec. 15-14, 80
FR 61284, Oct. 13, 2015]
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,
[[Page 127]]
or its electronic equivalent, by a qualified officer of the institution
in sufficient detail to demonstrate entitlement to entry as claimed, and
a 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 Center 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 Center 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 CBP, either
at the port of entry or electronically 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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 Center 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, or its electronic equivalent, 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
[[Page 128]]
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 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, or its electronic equivalent) 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 Center 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 at www.fdsys.gov.
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
[[Page 129]]
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,
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 Center 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 Center 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
[[Page 130]]
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 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
[[Page 131]]
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
its electronic equivalent, or 7512, as the case may be. The original and
the triplicate copy of the application, after approval, shall be stamped
with the withdrawal number and date thereof and shall be returned to the
withdrawer for use as prescribed below. Approval of each such
application shall be subject to the condition that the original and the
triplicate copy shall be presented thereafter by the withdrawer or the
vessel's master to the port director within 24 hours (excluding
Saturday, Sunday, and holidays) after each 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)
[[Page 132]]
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)
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 at www.fdsys.gov.
Sec. 10.60 Forms of withdrawals; bond.
(a) Withdrawals from warehouse shall be made on CBP Form 7501. Each
withdrawal must 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
CBP custody elsewhere than in a bonded warehouse must be made by filing
an in-bond application pursuant to part 18 of this chapter, 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 section 309,
Tariff Act of 1930, as amended, when the supplies are to be laden at a
[[Page 133]]
port other than the port of withdrawal from warehouse, they shall be
withdrawn for transportation in bond to the port of lading by filing an
in-bond application pursuant to part 18 of this chapter. The procedure
shall be the same as that prescribed in 144.37 of this chapter.
(e) No bond shall be required in the case of war vessels.
(f) Unless transfer is permitted under the provisions of paragraph
(h) of this section, when articles are withdrawn from continuous Customs
custody 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. 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. 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015;
CBP Dec. 17-13, 82 FR 45393, Sept. 28, 2017]
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 CBP Form 7501
or in-bond application.
[CBP Dec. 17-13, 82 FR 45394, Sept. 28, 2017]
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, or its electronic equivalent, 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, or its electronic equivalent, 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.
[[Page 134]]
(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, or its electronic equivalent, shall be endorsed ``Estimated
Withdrawals'' 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, or its electronic equivalent,
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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
Sec. 10.62a Blanket withdrawals for certain merchandise.
(a) Generally. Under this section, a blanket withdrawal on Customs
Form 7501, or its electronic equivalent, 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
[[Page 135]]
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).
(b) Partial release. A partial release on Customs Form 7501, or its
electronic equivalent, 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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
[[Page 136]]
(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
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
[[Page 137]]
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 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
[[Page 138]]
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
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.
[[Page 139]]
(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 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, or its
electronic equivalent;
(2) A declaration of the importer on Customs Form 4455, or its
electronic equivalent, 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, or its electronic equivalent,
[[Page 140]]
(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 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, or its electronic
equivalent, (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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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, or its
electronic equivalent;
(2) A declaration, or its electronic equivalent, 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, or its electronic
equivalent, 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, or its
electronic equivalent, (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, or its electronic equivalent, (with accompanying
inventory, if one was required), and a declaration of the ultimate
consignee
[[Page 141]]
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; CBP Dec. 15-14, 80 FR 61284, Oct. 13,
2015]
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, 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, or its electronic equivalent, 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, or its electronic equivalent, 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, or its electronic equivalent; 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, or its electronic equivalent,
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, or its electronic equivalent, 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,
or its electronic equivalent, shall be executed in triplicate, two
copies thereof to be returned to the traveler for surrender
[[Page 142]]
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; CBP Dec.
15-14, 80 FR 61284, Oct. 13, 2015]
Sec. 10.69 Samples to Great Britain and Ireland under reciprocal
agreement.
Descriptive lists, or their electronic equivalents, 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.
[28 FR 14663, Dec. 31, 1963, as amended by CBP Dec. 15-14, 80 FR 61284,
Oct. 13, 2015]
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 Center director has received from the
Department of Agriculture a certificate, or its electronic equivalent,
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, or their electronic equivalents, 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, or their
electronic equivalents, 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
[[Page 143]]
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; CBP Dec. 15-
14, 80 FR 61284, Oct. 13, 2015]
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, or its
electronic equivalent, 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 CBP, either at the port of entry or electronically 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 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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
[[Page 144]]
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.
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
[[Page 145]]
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. (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, or its electronic equivalent. 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, or its electronic equivalent.
[T.D. 89-1, 53 FR 51251, Dec. 21, 1988, as amended by T.D. 95-81, 60 FR
52295, Oct. 6, 1995; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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, or its
electronic equivalent, 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
[[Page 146]]
Sec. 10.82 [Reserved]
Sec. 10.83 Bond; cancellation; extension.
(a) If it shall appear to the satisfaction of the Center 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 Center director
may cancel the charges against the bond. The Center 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 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, or its electronic equivalent, 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, or its
electronic equivalent, 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
[[Page 147]]
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, or its
electronic equivalent, 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, or their electronic equivalents, 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, or the electronic equivalent, covering the articles or
other documentary evidence which identifies the article to which the
certificate pertains,
(ii) The certificate, or its electronic equivalent, is signed by the
manufacturer or producer of the article to which it pertains, or by the
person who exported the articles from Canada, and
(iii) It clearly appears that such copy or other documentary
evidence was 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 Center
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
[[Page 148]]
or other person deciding to divert the article from such intended use
shall give notice in writing of the decision to the CBP, either at the
port of entry or electronically 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; CBP Dec.
15-14, 80 FR 61284, Oct. 13, 2015]
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, or its electronic equivalent, filed with the entry
shall contain or be supported by a detailed statement of the cost of
production, or its electronic equivalent, 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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 Center 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 Center 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
[[Page 149]]
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
Center 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:
(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
[[Page 150]]
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 CBP, either
at the port of entry or electronically. 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 Center 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 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
[[Page 151]]
Center 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 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.
[[Page 152]]
(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 Center 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
Center 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, as amended by CBP Dec. 16-
26, 81 FR 93014, Dec. 20, 2016]
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, or its electronic equivalent, 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 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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, or its electronic equivalent, 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
[[Page 153]]
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, as amended by CBP Dec. 15-14, 80
FR 61284, Oct. 13, 2015]
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 the filing of immediate
delivery applications on Customs Form 3461, or its electronic
equivalent, 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)
[[Page 154]]
(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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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, or their
electronic equivalents, pertaining to the merchandise in its possession
or available to it, or, if no such invoice or bill is available, a pro
forma invoice, or its electronic equivalent, 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 Center 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, either at the port of entry or electronically,
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 submitted electronically, printed, stamped, or
typewritten on the Customs entry or withdrawal form, Customs Form 7501,
or its electronic equivalent, 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 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,
[[Page 155]]
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 Center 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; CBP
Dec. 15-14, 80 FR 61284, Oct. 13, 2015; CBP Dec. 16-26, 81 FR 93014,
Dec. 20, 2016]
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)
------------------------------------------------------------------------
Bill of lading No. General description of
Number of containers \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 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, or its electronic equivalent. 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 Center director will proceed as if a
[[Page 156]]
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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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,
or its electronic equivalent, 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; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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 Center director that the article for which
free entry is claimed was duty paid on a previous importation or was
previously entered free of duty pursuant to the Caribbean Basin Economic
Recovery Act or Title V of the Trade Act of 1974, is being 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
[[Page 157]]
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 must be filed, in connection with the entry covering such
articles, a document issued by the U.S. Department of State, or its
electronic equivalent, 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(a)(i), Subchapter XVII, chapter 98, HTSUS.
(b) Articles entered under subheading 9817.00.40, HTSUS, will be
released from CBP custody prior to submission of the document required
in paragraph (a) of this section only upon the deposit of estimated
duties with CBP, either at the port of entry or electronically.
Liquidation of an entry which has been released under this procedure
will be suspended for a period of 314 days from the date of entry or
until the required document is submitted, whichever comes first. In the
event that documentation is not submitted before liquidation, the
merchandise will be classified and liquidated in the ordinary course,
without regard to subheading 9817.00.40, HTSUS.
[CBP Dec. 10-33, 75 FR 69585, Nov. 15, 2010; CBP Dec. 12-02, 77 FR
10369, Feb. 22, 2012; CBP Dec. 15-14, 80 FR 61284, Oct. 13, 2015]
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 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
[[Page 158]]
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 Center director is satisfied
the merchandise will be so used. However, the Center 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 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
[[Page 159]]
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 $800.
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
$800, 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; CBP Dec. No. 16-13, 81 FR 58833, Aug. 26,
2016]
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 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
[[Page 160]]
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, cigars (including cheroots and
cigarillos) and cigarettes containing tobacco, cigarette tubes,
cigarette papers, smoking tobacco (including water pipe tobacco, pipe
tobacco, and roll-your-own tobacco), snuff, or chewing tobacco, 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 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.
(h) The exemption provided for in Sec. 10.151 is not to be allowed
with respect to any tax imposed under the Internal Revenue Code
collected by other agencies on imported goods.
[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; CBP Dec. No. 16-13, 81 FR 58833, Aug. 26, 2016]
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.
[[Page 161]]
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 Center
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 Center director, upon request, a
declaration setting forth all pertinent detailed information concerning
the production or manufacture of the merchandise. When requested by the
Center 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
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
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
[[Page 162]]
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 Center
director requests submission of the declaration during the 5-year
period, it shall be submitted by the appropriate party directly to the
Center director within 60 days of the date of the request or such
additional period as the Center 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 Center
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 Center director deems necessary. In the event that the Center
director is prevented from obtaining the necessary verification, the
Center 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 Center
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
Center director shall be subject to such verification as he deems
necessary.
(b) Waiver of evidence of direct shipment. The Center 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 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.
[[Page 163]]
(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 Center
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,
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
[[Page 164]]
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 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 Center 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;
[[Page 165]]
(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]
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:
[[Page 166]]
(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, a former beneficiary sub-
Saharan African country, or 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 or
former beneficiary sub-Saharan African country may be applied without
regard to whether those countries are members of the same association of
countries.
(5) As used in this paragraph, the term ``former beneficiary sub-
Saharan African country'' means a country that, after being designated
by the President as a beneficiary sub-Saharan African country under
section 506A of the Trade Act of 1974 (19 U.S.C. 2466a), ceased to be
designated as such a beneficiary sub-Saharan African country by reason
of its entering into a free trade agreement with the United States.
(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 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)
[[Page 167]]
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, as amended by CBP Dec. 14-07, 79
FR 30392, May 27, 2014]
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, or its electronic
equivalent, 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 CBP, either at the port of entry or electronically 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 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; CBP Dec.
15-14, 80 FR 61284, Oct. 13, 2015]
[[Page 168]]
Certain Fresh, Chilled, or Frozen Beef
Sec. 10.180 Certification.
(a) The foreign official's meat-inspection certificate, or its
electronic equivalent, 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; CBP Dec.
15-14, 80 FR 61284, Oct. 13, 2015]
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 be submitted in the future by an existing type and production
certificate holder, pending the completion of design or other technical
requirements
[[Page 169]]
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 Center 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 Center 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-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,
[[Page 170]]
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 Center director will monitor and periodically
audit selected entries made under this section.
[T.D. 02-31, 67 FR 39289, June 7, 2002]
Subpart B_Caribbean Basin Initiative
Source: Sections 10.191 through 10.197 issued by T.D. 84-237, 49 FR
47993, Dec. 7, 1984, unless otherwise noted.
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. Sec.
10.191 through 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)). See General Note 7(a),
Harmonized Tariff Schedule of the United States (HTSUS). For purposes of
this paragraph, when the word ``former'' is used in conjunction with the
term ``beneficiary country'', it means a country that ceases to be
designated as a beneficiary country under the CBERA because the country
has become a party to a free trade agreement with the United States. See
General Note 7(b)(i)(C), HTSUS.
(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, 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)
[[Page 171]]
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
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; CBP Dec. 10-29, 75 FR 52450, Aug. 26, 2010]
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 Center 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 Center
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 Center
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 Center
director.
(b) Waiver of evidence of direct shipment. The Center director may
waive the submission of evidence of direct
[[Page 172]]
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.
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, U.S. Virgin Islands, and former
beneficiary countries--(1) General. For purposes of determining the
percentage referred to in paragraph (a) of this section, the term
``beneficiary country'' includes the Commonwealth of Puerto Rico, U.S.
Virgin Islands, and any former beneficiary countries. Any cost or value
of materials or direct costs of processing operations attributable to
the U.S. Virgin Islands or any former beneficiary country must be
included
[[Page 173]]
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, 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; CBP Dec. 10-
29, 75 FR 52450, Aug. 26, 2010]
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
[[Page 174]]
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 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 Center
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
[[Page 175]]
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:
(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 Center director, upon request, a declaration setting
forth all pertinent detailed information concerning the production or
manufacture of the article. When requested by the Center 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___________________________________________________________________
[[Page 176]]
________________________________________________________________________
(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 Center
director requests submission of the declaration during the 5-year
period, it shall be submitted by the appropriate party directly to the
Center director within 60 days of the date of the request or such
additional period as the Center 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 Center
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 Center director deems necessary. In the event that the Center
director is prevented from obtaining the necessary verification, the
Center 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]
[[Page 177]]
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 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 Center
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
[[Page 178]]
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;
(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 Center
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 Center director.
(2) Rum imported into Canada from beneficiary country or U.S. Virgin
Islands. The importer must be prepared to provide to the Center
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
Center 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 Center 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 Center 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 Center director.
[[Page 179]]
(f) Canadian processor declaration; supporting documentation--(1)
Canadian processor declaration. The importer must be prepared to submit
directly to the Center 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 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 Center director, if requested. The
declaration and any supporting evidence may be subject to such
verification as deemed necessary by the Center 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 Center 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 Center
director within 60 calendar days
[[Page 180]]
of the date of the request or such additional period as the Center
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 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.
[[Page 181]]
(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 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
[[Page 182]]
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 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
Center 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,
[[Page 183]]
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'' 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 Center director,
upon request, a declaration setting forth all pertinent detailed
information concerning the production or manufacture of the article.
When requested by the Center 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:
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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 years. In the event that the Center
director requests submission of the declaration during the 5-year
period, it shall be submitted by the appropriate party directly to the
Center director within 60 days of the date of the request or such
additional period as the Center 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 Center 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 Center
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 Center 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 Center director deems necessary. In the event that the Center
director is prevented from obtaining the necessary verification, the
Center director may treat the entry as fully dutiable.