[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25152]


[[Page Unknown]]

[Federal Register: October 12, 1994]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 19, 112, 113, 118, 125, 146 and 178

[T.D. 94-81]
RIN 1515-AB57

 

Authorization of Bonded Carriers to Transport Cargo Within Port 
Limits Without Obtaining Cartman's License

AGENCY: Customs Service, Treasury.

ACTION: Final rule.

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SUMMARY: This document amends the Customs Regulations to allow bonded 
carriers to transport merchandise within port limits without having to 
obtain a cartman's license. It also amends the regulations to allow the 
operators of foreign trade zones, container station and centralized 
examination stations and the proprietors of bonded warehouses to 
transport merchandise from within the district to their respective 
facilities. These amendments will result in savings of time and money 
for both the trade and Customs.

EFFECTIVE DATE: November 14, 1994.

FOR FURTHER INFORMATION CONTACT: Ernie Cunningham, Office of Cargo 
Enforcement and Facilitation, Office of Inspection and Control, at 202-
927-0510.

SUPPLEMENTARY INFORMATION:

Background

    Customs requires that the carriage of imported merchandise, for 
which duty has not yet been paid, only be accomplished by certain 
bonded carriers. A cartman is one who undertakes to transport goods or 
merchandise within the limits of a port. A lighterman is one who 
transports goods or merchandise on a barge, scow, or other small vessel 
to or from a vessel within the port or from place to place within a 
port. The regulations regarding cartage and lighterage of merchandise 
are set forth in Part 125 of the Customs Regulations (19 CFR Part 125). 
The regulations regarding the bonding of carriers which receive 
merchandise for transportation in bond, and the licensing of cartmen 
and lightermen are set forth in Part 112 of the Customs Regulations (19 
CFR Part 112).
    Currently, pursuant to Secs. 112.2(b) and 112.21, Customs 
Regulations, Customs requires a bond and a license to transact business 
as a cartman or a lighterman for the cartage or lighterage of 
merchandise entered for warehouse, designated for examination, taken to 
container stations, or taken into custody as unclaimed.
    On October 29, 1992, Customs published a Notice of Proposed 
Rulemaking (NPRM) in the Federal Register (57 FR 49049) proposing to 
consider within port transfers by cartmen and lightermen like other in-
bond movements and to allow bonded carriers, in most instances, to 
carry in-bond cargo within a port without requiring them to obtain 
cartman or lighterman licenses.
    According to the document, it was proposed that cartage and 
lighterage of merchandise designated for examination, taken to 
container stations, taken into custody as unclaimed or destined for 
admission to a foreign trade zone either may be done under the bond of 
a licensed cartman or lighterman, or if approved by the district 
director, under the bond of a foreign trade zone operator, container 
station operator, centralized examination station operator, or a bonded 
carrier. However, a license would still be necessary to obtain to carry 
in-bond merchandise within a port for the cartage of merchandise 
entered for warehouse; the reason for this exception was that 19 U.S.C. 
1565 contained a statutory requirement that a cartman be licensed for 
cartage of merchandise entered for warehouse. Customs issued the 
proposal because it believes that the elimination of the license 
requirement will save Customs and the trade time and money.

Statutory Change Since Proposal

    On December 8, 1993, the President signed the North American Free 
Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057). 
Section 666 of Title VI (Customs Modernization) amended 19 U.S.C. 1565 
to allow the cartage of merchandise entered for warehouse by bonded 
carriers as well as by licensed cartmen. Accordingly, the statement in 
the proposal that a license is required to transact business as a 
cartman and lighterman for the cartage or lighterage of merchandise 
entered for warehouse is no longer consistent with the statute. The 
statutory impediment to allowing the cartage of merchandise entered for 
warehouse by bonded carriers that existed at the time the proposal was 
published no longer exists.

Analysis of Comments

    A total of 19 entities responded to the proposal. Generally, each 
respondent supported the proposal and stated that, if adopted, the 
proposal would eliminate unnecessary and redundant paperwork for both 
Customs and the trade, would expedite the movement of cargo within port 
limits, and would be a positive step in simplifying Customs procedures. 
Of the 19 commenters, seven fully supported the measure. The remaining 
commenters, although generally supportive of the purpose of the 
proposed amendments, suggested some changes. Some sought clarification 
regarding the types of cartage authorized to be performed by the 
operators of foreign trade zones, centralized examination stations and 
container stations. Specific comments requesting changes and 
clarifications and Customs responses are set forth below.
    Comment: Seven commenters requested that the measure be expanded to 
include transfers between foreign trade zones and subzones, whether 
within or adjacent to the same port of entry.
    Response: The regulations currently provide that cargo movements 
carried out outside the port limits but within the district boundaries 
may be accomplished by a bonded carrier. This applies to transfers 
between foreign trade zones and subzones. The final regulation set 
forth in this document provides that cargo destined for a foreign trade 
zone or subzone may be picked up within the district by the operator of 
the foreign trade zone or subzone to which it is going. This is 
specified by the new language for Sec. 112.2(b).
    Comment: One commenter requested a more liberal wording of the 
proposed language for 19 CFR 112.2. The language for 19 CFR 112.2 
reads, in part: ``Cartage * * * may be done under the bond of a 
cartman, * * * or, if approved by the district director, a bonded 
carrier * * *.'' The commenter felt that the proposed language would 
still require companies with extensive route systems to submit an 
application of some sort in every Customs district where they 
anticipate performing the cartman function.
    Response: In the future, approval of the bond of a bonded carrier 
by the district director would indicate approval by Customs for the 
bonded carrier to engage in cartage. The rule would permit bonded 
carriers to transfer merchandise within port limits without the need 
for an application or a cartman or lighterman license; therefore, there 
is no need to further amend or adopt a more liberal wording of the 
proposed language in 19 CFR 112.2.
    Comment: Three commenters requested that 19 U.S.C. 1565 be amended 
to eliminate the requirement for cartmen licenses for cargo movements 
into bonded warehouses. They suggested that such an amendment could be 
accomplished through the Customs Modernization Act.
    Response: As noted previously in this document, section 666 of 
Title VI (Customs Modernization) of the North American Free Trade 
Agreement Implementation Act (Pub. L. 103-182) amends 19 U.S.C. 1565 to 
eliminate the requirement for a cartman's license for cargo movements 
into bonded warehouses. Any carrier designated as a carrier of bonded 
merchandise may cart merchandise destined for entry into a bonded 
warehouse. The final regulation has been amended to reflect the 
statutory amendment.
    Comment: One commenter suggested that Customs clarify whether a 
foreign trade zone operator is only entitled to engage in cartage for a 
foreign trade zone, a container station operator only for a container 
station, a centralized examination station (CES) operator only for a 
CES, and a bonded warehouse proprietor only for a bonded warehouse, 
while a licensed cartman or bonded carrier would be entitled to engage 
in cartage for any of those facilities, and whether district directors 
would be allowed some discretion in this matter.
    Response: Customs agrees that the best policy is that a foreign 
trade zone operator would be limited to the transportation of 
merchandise to his foreign trade zone, a container station operator to 
his container station, a CES operator to his CES, and a bonded 
warehouse proprietor to his bonded warehouse. A licensed cartman or a 
bonded carrier would be entitled to engage in transporting merchandise 
for any of those facilities, the cartman within the port limits and the 
carrier within the district boundaries. Language to this effect has 
been inserted in the new Sec. 112.2(b). Once a district director has 
approved the respective entity's bond, that entity may engage in 
transporting merchandise as provided for in these regulations.
    Comment: The commenter suggests that the conditions of the 
custodial bond in 19 CFR 113.63 and the foreign trade zone operators 
bond in 19 CFR 113.73 should be revised to conform with the proposed 
change in 19 CFR 112.2(b).
    Response: Section 113.63, Customs Regulations, has been altered 
slightly to conform with the changes. Regarding the foreign trade zone 
operator's bond, Customs agrees that the current foreign trade zone 
operator's bond is inadequate to secure the operator's performance with 
respect to movement of goods from one zone to another. Changes have 
been made to 19 CFR 113.73 in the final rule.
    Comment: A commenter suggested that conforming changes referring to 
bonded carriers under 19 CFR 112.2(b) should be added to 19 CFR 125.11 
(a) and (b).
    Response: Conforming changes have been made in the final rule.
    Comment: One commenter suggested that the procedures in part 125 
seem to refer principally to cartmen, lightermen and, as proposed in 
the NPRM, bonded carriers. He suggests that procedures pertaining to 
bonded warehouse proprietors and to operators of container stations, 
centralized examination stations, and foreign trade zones should be 
made clear in the final rule.
    Response: Customs agrees that procedures pertaining to cartage and 
lighterage by bonded warehouse proprietors and operators of container 
stations, centralized examination stations and foreign trade zones 
should be included within part 125. Part 125 is amended accordingly.
    Comment: One commenter observed that both bonded warehouses and 
foreign trade zones are facilities with specific boundaries. He 
suggested that Customs make clear whether receipt of merchandise by 
bonded warehouse proprietors for the purpose of cartage constitutes 
receipt into a bonded warehouse and whether receipt of merchandise by a 
foreign trade zone operator for the purpose of cartage constitutes 
receipt into an activated foreign trade zone area and the conferring of 
foreign trade zone status.
    Response: Receipt of merchandise for cartage purposes to a bonded 
warehouse by its proprietor or to a foreign trade zone by its operator 
constitutes receipt into the bonded warehouse or admission into the 
foreign trade zone. Customs approval of such transfers will continue to 
be accomplished through existing local procedures.

Conclusion

    After careful consideration of the comments received and further 
review of the matter, it has been determined that the proposed 
amendments, modified as discussed above, should be adopted. The final 
regulation will allow the cartage and lighterage of merchandise for all 
purposes by bonded carriers without the necessity of obtaining a 
cartage license. It will also allow bonded warehouse proprietors, 
foreign trade zone operators, container station operators and 
centralized examination station operators to engage in limited cartage 
and lighterage under their respective bonds and to transport 
merchandise to their respective facilities from anywhere in the 
district in which their facility is located.

Regulatory Flexibility Act and Executive Order 12866

    Pursuant to the provisions of the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) and based upon the information set forth above, it 
is certified that the regulations will not have a significant economic 
impact on a substantial number of small entities. The regulations 
eliminate duplicative or otherwise unnecessary paperwork requirements 
and thus reduce the regulatory burden. Accordingly, the regulations are 
not subject to the regulatory analysis or other requirements of 5 
U.S.C. 603 and 604.
    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in Executive Order 12866.

Paperwork Reduction Act

    The collection of information requirements contained in these final 
regulations have been reviewed and approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act of 1980 (44 
U.S.C. 3504(h)) under control number 1515-0193. The estimated average 
annual burden associated with this collection is .1666 hour per 
respondent and 1 hour per recordkeeper. Comments concerning the 
accuracy of this burden estimate and suggestions for reducing this 
burden should be directed to the U. S. Customs Service, Paperwork 
Management Branch, Room 6316, 1301 Constitution Avenue NW., Washington, 
DC 20229, or the Office of Management and Budget, Attention: Desk 
Officer for the Department of the Treasury, Office of Information and 
Regulatory Affairs, Washington, D. C. 20503.

Drafting Information

    The principal author of this document was Janet L. Johnson, 
Regulations Branch. However, personnel from other offices participated 
in its development.

List of Subjects

19 CFR Part 19

    Customs duties and inspection, Exports, Freight, Reporting and 
recordkeeping requirements, Surety bonds, Warehouses, Wheat.

19 CFR Part 112

    Administrative practice and procedure, Canada, Common carriers, 
Customs duties and inspection, Exports, Freight, Harbors, Mexico, 
Reporting and recordkeeping requirements, Surety bond.

19 CFR Part 113

    Common carriers, Customs duties and inspection, Exports, Freight, 
Laboratories, Reporting and recordkeeping requirements, Surety bonds.

19 CFR Part 118

    Customs duties and inspection, Centralized examination stations, 
Imports.

19 CFR Part 125

    Customs duties and inspection, Freight, Government contracts, 
Harbors, Reporting and recordkeeping requirements.

19 CFR Part 146

    Administrative practice and procedure, Customs duties and 
inspection, Exports, Foreign trade zones, Penalties, Reporting and 
recordkeeping requirements.

19 CFR Part 178

    Reporting and recordkeeping requirements.

Amendments to the Regulations

    For the reasons set forth in the preamble, parts 19, 112, 113, 118, 
125, 146 and 178 of the Customs Regulations (19 CFR parts 19, 112, 113, 
118, 125, 146 and 178) are amended as set forth below.

PART 19--CUSTOMS WAREHOUSES, CONTAINER STATIONS AND CONTROL OF 
MERCHANDISE THEREIN

    1. The general authority citation for part 19 is revised and the 
specific authority citations for Sec. 19.6 and Sec. 19.44 continue to 
read as follows:

    Authority: 5 U.S.C. 301, 19 U.S.C. 66, 1202 (General Note 17, 
Harmonized Tariff Schedule of the United States), 1624.
* * * * *
    Section 19.6 also issued under 19 U.S.C. 1555.
* * * * *
    Section 19.44 also issued under 19 U.S.C. 1448.
* * * * *
    2. Section 19.6(a)(1) is amended by revising the third sentence and 
by adding a new sentence at the end to read as follows:


Sec. 19.6  Deposits, withdrawals, blanket permits to withdraw and 
sealing requirements.

    (a)(1) Deposit in warehouse. *** When merchandise is deposited in a 
proprietor's warehouse or is accepted and receipted for by a proprietor 
or his agent for transport to the proprietor's warehouse, the 
proprietor will be responsible for the quantity and condition of 
merchandise reflected on entry documentation adjusted by (i) any 
allowance made under part 158, subparts A and B, of this chapter by the 
district director, and (ii) any discrepancy report made jointly on the 
appropriate cartage documents as set forth in Sec. 125.31 of this 
chapter by the warehouse proprietor and the bonded carrier or licensed 
cartman or lighterman delivering the goods to the warehouse, or an 
independent weigher, gauger, measurer, and signed by an authorized 
representative of the above within 15 calendar days after deposit. *** 
If the proprietor of the bonded warehouse transports the goods to the 
warehouse, no discrepancy report shall be necessary.
* * * * *
    3. The first sentence of Sec. 19.12(a)(1) is revised to read as 
follows:


Sec. 19.12  Warehouse recordkeeping, storage and security requirements.

    (a) ***
    (1) Record transactions. All merchandise collected by a proprietor 
or his agent for transport to his warehouse shall be receipted. All 
such merchandise and all merchandise entered, manipulated, 
manufactured, smelted, refined or removed from the bonded warehouse 
shall be recorded in the warehouse proprietor's accounting and 
inventory records by bond lot number. ***
* * * * *
    4. Section 19.44 is amended by adding a new paragraph (g) which 
reads as follows:


Sec. 19.44  Carrier responsibility.

* * * * *
    (g) If a container station operator chooses to collect merchandise 
from within the boundaries of the district in which the container 
station is located and transport the merchandise to his container 
station, the container station operator must formally receipt for the 
merchandise at the time of collection, and he becomes liable under his 
bond for proper safekeeping of the merchandise at that time.

PART 112--CARRIERS, CARTMEN, AND LIGHTERMEN

    1. The general authority citation for part 112 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1551, 1565, 1623, 1624.

    2. The first sentence of Sec. 112.0 is revised to read as follows:


Sec. 112.0  Scope.

    This part sets forth regulations providing for the bonding of 
carriers which will receive merchandise for transportation in bond, the 
licensing of cartmen and lightermen, and the procedures for applying 
for such bonds and licenses. * * *
    3. Section 112.2(b) is revised to read as follows:


Sec. 112.2  Bond or license required.

* * * * *
    (b) Cartmen and lightermen.--(1) Necessity for bond. A bond, as 
provided for in this part, is required to transact business as a 
cartman or lighterman. The cartage or lighterage of merchandise 
designated for examination, entered for warehouse, taken to container 
stations or centralized examination stations, taken into custody as 
unclaimed or destined for admission to a foreign trade zone may be done 
under the bond of a cartman or lighterman who is licensed pursuant to 
the provisions of this part or that of a bonded carrier, as provided 
for in paragraph (a) of this section. Foreign trade zone operators, 
bonded warehouse proprietors, container station operators and 
centralized examination station operators may engage in limited cartage 
or lighterage under their respective bonds. A foreign trade zone 
operator may engage in cartage or lighterage under his bond only for 
merchandise destined for his foreign trade zone and may also transport 
merchandise to his zone from anywhere within the district boundaries 
where the foreign trade zone is located. A bonded warehouse proprietor 
may engage in cartage or lighterage under his bond only for merchandise 
destined for his bonded warehouse and may also transport merchandise to 
his warehouse from anywhere within the district boundaries where the 
bonded warehouse is located. A container station operator may engage in 
cartage or lighterage under his bond only for merchandise destined for 
his container station and may also transport merchandise to his 
container station from anywhere within the district boundaries where 
the container station is located. A centralized examination station 
operator may engage in cartage or lighterage under his bond only for 
merchandise destined for his centralized examination station and may 
also transport merchandise to his centralized examination station from 
anywhere within the district boundaries where the centralized 
examination station is located.
    (2) Necessity for license. A license, as provided for in this part, 
is required to transact business as a cartman or lighterman for the 
cartage or lighterage of merchandise. Bonded carriers may engage in 
cartage and lighterage under their bonds without obtaining a license. 
Foreign trade zone operators, bonded warehouse proprietors, container 
station operators and centralized examination station operators may 
engage, under their bonds, in the limited cartage and lighterage and 
other transportation described in this paragraph without obtaining a 
license.
    4. Section 112.21 is revised to read as follows:


Sec. 112.21  License required.

    A customhouse cartage or lighterage license issued by the district 
director in accordance with this part or specific authorization of the 
Commissioner of Customs shall be required to perform Customs cartage or 
lighterage, except as provided in Secs. 18.3 and 125.12 of this chapter 
or, as provided in Sec. 112.2(b), when such merchandise is to be 
transported under the bond of the foreign trade zone operator, bonded 
warehouse proprietor, centralized examination station operator, 
container station operator, or a bonded carrier.
    5. Section 112.25 is revised to read as follows:


Sec. 112.25  Bonded carriers.

    A carrier or freight forwarder who has filed a bond on Customs Form 
301 containing the bond conditions set forth in Sec. 113.63 of this 
chapter may transport merchandise within a port for which the bond 
provides coverage.

PART 113--CUSTOMS BONDS

    1. The general authority citation for part 113 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1623, 1624.

    2. Section 113.63(a)(1) is revised to read as follows:


Sec. 113.63  Basic custodial bond conditions.

* * * * *
    (a) Receipt of merchandise. The principal agrees:
    (1) To operate as a custodian of any bonded merchandise received, 
including merchandise collected for transport to his facility, and to 
comply with all regulations regarding the receipt, carriage, 
safekeeping, and disposition of such merchandise;
* * * * *
    3. Section 113.73(a)(1) is revised to read as follows:


Sec. 113.73  Foreign trade zone operator bond conditions.

* * * * *
    (a) Receipt, Handling, and Disposition of Merchandise. The 
principal agrees to comply with:
    (1) The law and Customs Regulations relating to the receipt 
(including merchandise received and receipted for transport to his 
zone), admission, status, handling, transfer, and removal of 
merchandise from the foreign trade zone or subzone, and
* * * * *

PART 118--CENTRALIZED EXAMINATION STATIONS

    1. The general authority citation for part 118 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1499, 1623, 1624.

    2. Section 118.4 is amended by revising paragraph (g) and by adding 
a new paragraph (l) to read as follows:


Sec. 118.4  Responsibilities of a CES operator.

* * * * *
    (g) Maintain a Customs custodial bond in an amount set by the 
district director. The bond will include liability for transporting 
merchandise to the CES from within the district boundaries; such 
liability is assumed by the CES operator when he picks up merchandise 
for transportation to his facility. The operator also agrees to 
increase the amount of the bond if deemed appropriate by the district 
director.
* * * * *
    (1) Provide transportation for merchandise to the CES from within 
the district boundaries. This responsibility is optional. If the CES 
operator chooses to provide transportation, he shall receipt for the 
merchandise when he picks it up and assume liability for the 
merchandise at that time.

PART 125--CARTAGE AND LIGHTERAGE OF MERCHANDISE

    1. The authority citation for part 125 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 1565, and 1624.

    Section 125.31 also issued under 5 U.S.C. 301; 19 U.S.C. 1311, 
1312, 1484, 1555, 1556, 1557, 1623, and 1646a.
    Section 125.32 also issued under 5 U.S.C. 301; 19 U.S.C. 1484.
    Section 125.33 also issued under 19 U.S.C. 1311, 1312, 1555, 
1556, 1557, 1623, and 1646a.
    Sections 125.41 and 125.42 also issued under 19 U.S.C. 1623.

    2. Section 125.0 is revised to read as follows:


Sec. 125.0  Scope.

    This part is concerned with cartage and lighterage of merchandise 
and the duties and liabilities of cartmen and lightermen, as well as 
those parties authorized in Sec. 112.2(b) to engage in cartage. 
Provisions for licensing cartmen and lightermen are in part 112 of this 
chapter.
    3. Section 125.1 is revised to read as follows:


Sec. 125.1  Classes of cartage.

    (a) Government cartage. Government cartage must be done by a 
licensed customhouse cartman or other bonded carrier as provided in 
Sec. 112.2 of this chapter under contract or other specific authority 
for that purpose (except as provided for in Sec. 125.12). All 
government cartage must be contracted for using the procedures 
specified in Sec. 125.3.
    (b) Importers' cartage. Importers' cartage may be done by any 
licensed customhouse cartman or other bonded carrier as provided in 
Sec. 112.2 of this chapter.


Sec. 125.11  [Amended]

    4. Section 125.11(a) is amended by adding the words ``or a bonded 
carrier'' between the words ``cartman'' and ``under''.
    5. Section 125.11(b) is amended by adding the words ``or a bonded 
carrier'' between the words ``cartman'' and ``designated''.
    6. Section 125.21 is revised to read as follows:


Sec. 125.21  Cartage other than for examination.

    Any licensed customhouse cartman, including an importer licensed to 
cart his own imported merchandise and a bonded carrier provided for in 
Sec. 112.2 of this chapter, at the expense of the importer or other 
party in interest, may transfer merchandise from the importing vessel 
or other conveyance to a bonded warehouse, from one vessel or 
conveyance to another, from one bonded warehouse to another, from the 
public stores to a bonded warehouse, from warehouse for transportation 
or for exportation, and from an internal revenue warehouse for 
exportation under the internal revenue laws without payment of tax. 
Foreign trade zone operators, bonded warehouse proprietors, container 
station operators and centralized examination station operators may 
engage in limited cartage or lighterage under the conditions specified 
in Sec. 112.2 of this chapter. Nothing in this section shall apply to 
the cartage of examination packages to the place of examination.
    7. Section 125.22 is revised to read as follows:


Sec. 125.22  Designation of cartman or lighterman, or other bonded 
carrier.

    Importers and exporters shall designate on the entry and permit of 
bonded merchandise the bonded cartman, lighterman, or other bonded 
carrier as provided in Sec. 112.2 of this chapter by whom they wish 
their merchandise to be conveyed. An importer also may designate a 
foreign trade zone operator, bonded warehouse proprietor, container 
station operator or centralized examination station operator under the 
conditions specified in Sec. 112.2 of this chapter for limited cartage; 
if he does so, the importer must also designate that the merchandise is 
bound for the facility run by the operator he designates. Approval of a 
designation shall be indicated on the entry papers by the initials of 
the appropriate Customs officer placed in close proximity to the 
designation.
    8. Section 125.23 is revised to read as follows:


Sec. 125.23  Failure to designate.

    If an importer does not cart his merchandise or designate a 
licensed customhouse cartman, other bonded carrier, foreign trade zone 
operator, bonded warehouse proprietor, container station operator or 
centralized examination station operator, as provided for in Sec. 112.2 
of this chapter, for the purpose, it shall be carted by a bonded 
carrier or by a public store cartman authorized by contract or 
designated by the district director for that purpose. The cost of such 
cartage shall be paid by the importer of the merchandise before its 
release from Customs custody.
    9. Section 125.24 is revised to read as follows:


Sec. 125.24  Failure of designated cartman, lighterman or other bonded 
carrier to appear.

    The cartman, lighterman, other bonded carrier, foreign trade zone 
operator, bonded warehouse proprietor, container station operator or 
centralized examination station operator designated to convey the 
merchandise shall be present to take the merchandise when the Customs 
officer in charge is ready to send it. If the designated vehicle or 
lighter is not present, after waiting a reasonable time, such officer 
shall send the merchandise by any available licensed cartman, 
lighterman, or qualifying bonded carrier.
    10. Section 125.32 is revised to read as follows:


Sec. 125.32  Merchandise delivered to a bonded store or bonded 
warehouse.

    When merchandise is carried, carted or lightered to and received in 
a bonded store or bonded warehouse, the proprietor or his 
representative shall check the goods against the accompanying delivery 
ticket, Customs Form 6043, or copy of the permit, Customs Form 7501, 
and countersign the document acknowledging receipt of the merchandise 
as listed thereon. If the proprietor or his agent has been designated 
to carry the merchandise to his own bonded warehouse, he shall check 
the goods against the accompanying delivery ticket, Customs Form 6043, 
or copy of the permit, Customs Form 7501, at the time he picks up the 
cargo. Receipt of merchandise by a bonded warehouse proprietor for the 
purpose of transportation to his own warehouse constitutes receipt into 
a bonded warehouse.
    11. The first sentence of Sec. 125.33(a) is revised to read as 
follows:


Sec. 125.33  Procedure on receiving merchandise.

    (a) From public or bonded store. A receipt shall be taken from the 
cartman, lighterman or bonded carrier for all goods delivered to him 
from public store or bonded store. * * *
* * * * *
    12. Section 125.34 is amended by revising the first sentence to 
read as follows:


Sec. 125.34  Countersigning of documents and notation of bad order or 
discrepancy.

    When a cartman, lighterman, other bonded carrier, foreign trade 
zone operator, bonded warehouse proprietor, container station operator 
or centralized examination station operator, as provided for in 
Sec. 112.2, receives merchandise remaining in Customs custody, he shall 
countersign the appropriate document in the space provided and shall 
note thereon any bad order or discrepancy. * * *
    13. Section 125.35 is revised to read as follows:


Sec. 125.35  Report of loss, detention, or accident.

    Any loss or detention of bonded merchandise, or any accident 
happening to a vehicle or lighter while carrying bonded merchandise 
shall be immediately reported by the cartman, lighterman, qualified 
bonded carrier, foreign trade zone operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator to the district director.


Sec. 125.36  [Amended]

    14. Section 125.36 is amended by adding the words ``or bonded 
carrier'' between the words ``cartman'' and ``shall'' in the first 
sentence.
    15. Section 125.41 is revised to read as follows:


Sec. 125.41  Liability for cartage.

    (a) Liability of cartman, lighterman or bonded carrier. The 
cartman, lighterman, or bonded carrier conveying the merchandise, 
including merchandise covered by a TIR carnet which has not been 
``taken on charge'' (see Sec. 114.22(c)(2) of this chapter), shall be 
liable under his bond for its prompt delivery in sound condition, or in 
no worse than the damaged condition noted on the delivery ticket, if 
damage is so noted.
    (b) Liability of foreign trade zone operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator. A foreign trade zone operator, bonded warehouse 
proprietor, container station operator or centralized examination 
station operator who picks up merchandise including merchandise covered 
by a TIR carnet which has not been ``taken on charge'', to transport 
the merchandise to his own facility shall be liable under his bond for 
the merchandise as soon as he collects the merchandise. The merchandise 
must be receipted as soon as it is picked up and must be delivered to 
either the respective foreign trade zone, bonded warehouse, container 
station or centralized examination station promptly after it is picked 
up in sound condition, or in no worse than the damaged condition noted 
on the delivery ticket, if damage is noted.
    16. Section 125.42 is amended by revising the first sentence to 
read as follows:


Sec. 125.42  Cancellation of liability.

    The district director may cancel liquidated damages not in excess 
of $100,000 incurred under the bond of the foreign trade zone operator, 
containing the bond conditions set forth in Sec. 113.73 of this 
chapter, or under the bond of the cartman, lighterman, bonded carrier, 
bonded warehouse proprietor, container station operator or centralized 
examination station operator on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.63 of this chapter, upon the payment 
of such lesser amount, or without the payment of any amount, as the 
district director may deem appropriate under the circumstances. * * *

PART 146--FOREIGN TRADE ZONES

    1. The general authority citation for part 146 continues to read as 
follows:

    Authority: 19 U.S.C. 66, 81a-81u, 1202 (General Note 17, 
Harmonized Tariff Schedule of the United States), 1623, 1624.
* * * * *
    2. Section 146.4(h) is amended by adding two additional sentences, 
to read as follows:


Sec. 146.4  Operator responsibility and supervision.

* * * * *
    (h) * * * If the operator elects to transfer merchandise from 
within the district boundaries to his zone, he shall receipt for the 
merchandise at the time he picks it up for transportation to his 
facility. He becomes liable for the merchandise at that time.
    3. Section 146.40 is amended by redesignating paragraph (b) as 
paragraph (c) and by adding a new paragraph (b) to read as follows:


Sec. 146.40  Operator responsibilities for direct deliveries.

* * * * *
    (b) Transportation by operator. If merchandise is transported to a 
subzone or zone site by the foreign trade zone operator from a location 
in the district in which the subzone or zone site is situated, the 
merchandise is deemed admitted at the time the foreign trade zone 
operator picks it up. At the time of pick-up, the operator is 
responsible for:
    (1) Receipting for the merchandise and recording on the appropriate 
document any discrepancies regarding quantity, condition or the status 
of the seals;
    (2) Transporting the merchandise to the zone or subzone; and
    (3) Ensuring that the zone records reflect that the merchandise is 
received in the zone.
* * * * *
    4. Section 146.66 (a) is amended by revising the first sentence to 
read as follows:


Sec. 146.66  Transfer of merchandise from one zone to another.

    (a) At the same port. A transfer of merchandise to another zone 
with a different operator at the same port (including a consolidated 
port) will be by a licensed cartman or a bonded carrier as provided for 
in Sec. 112.2(b) of this chapter or by the operator of the zone for 
which the merchandise is destined under an entry for immediate 
transportation on Customs Form 7512 or other appropriate form with a 
Customs Form 214 filed at the destination
zone. * * *
* * * * *

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    1. The authority for part 178 continues to read as follows:

    Authority: 5 U.S.C. 301, 19 U.S.C. 1624, 44 U.S.C. 3501 et seq.


Sec. 178.2  [Amended]

    2. Section 178.2 is amended by adding the following in the 
appropriate numerical sequence according to the section number under 
the columns indicated: 

------------------------------------------------------------------------
                                                                  OMB   
        19 CFR section                   Description            control 
                                                                 number 
------------------------------------------------------------------------
                                                                        
                                  *****                                 
Secs. 125.22, 125.33, 125.34,   Authorization of Bonded        1515-0193
 125.35.                         Carriers to Transport Cargo            
                                 Within Port Limits Without             
                                 Obtaining Cartman's License.           
                                                                        
                                  *****                                 
------------------------------------------------------------------------

    Approved: October 5, 1994.
Samuel H. Banks,
Acting Commissioner of Customs.
John W. Mangels,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 94-25152 Filed 10-11-94; 8:45 am]
BILLING CODE 4820-02-P