[Federal Register Volume 61, Number 36 (Thursday, February 22, 1996)]
[Rules and Regulations]
[Pages 6772-6780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3905]



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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 10, 18 and 113

[T.D. 96-18]
RIN 1515-AB67


Warehouse Withdrawals; Aircraft Fuel Supplies; Pipeline 
Transportation in Bond of Merchandise

AGENCY: Customs Service, Treasury.

ACTION: Notice of interim regulations, solicitation of comments.

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SUMMARY: The amendments contained in this document are being published 
as interim regulations to implement certain statutory amendments to the 
Customs laws regarding recordkeeping for merchandise transported by 
pipeline and duty-free withdrawals from Customs bonded warehouses of 
aircraft turbine fuel. These statutory amendments are contained in the 
Customs modernization provisions of the North American Free Trade 
Agreement Implementation Act. Also, the interim regulations clarify the 
procedures applicable to aircraft turbine fuel which is withdrawn from 
a Customs bonded warehouse for certain duty-free use and is commingled 
with other lots of fuel before being so used.

DATES: Interim rule effective April 8, 1996; comments must be received 
on or before March 25, 1996.

ADDRESSES: Written comments (preferably in triplicate) must be 
submitted to U.S. Customs Service, ATTN: Regulations Branch, Franklin 
Court, 1301 Constitution Avenue, NW., Washington, D.C. 20229, and may 
be inspected at the Regulations Branch, 1099 14th Street, NW., Suite 
4000, Washington, D.C.

FOR FURTHER INFORMATION CONTACT: William G. Rosoff, Office of 
Regulations and Rulings, (202-482-7040).

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 1993, the President of the U.S. signed into law the 
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182, 107 Stat. 2057). Title VI of this Act, popularly known as the 
Customs Modernization Act (the Act) amended certain Customs laws. 
Section 664 of the Act amended the Customs laws by the insertion of a 
new section 553a, Tariff Act of 1930 (19 U.S.C. 1553a), and section 665 
of the Act amended section 557(a), Tariff Act of 1930, as amended (19 
U.S.C. 1557(a)).
    Under the new 19 U.S.C. 1553a, merchandise in Customs custody that 
is transported by pipeline may be accounted for on a quantitative 
basis. The term ``merchandise in Customs custody,'' is meant to 
comprise bonded merchandise (e.g., merchandise which has not been 
entered for consumption, including merchandise transported in bond, 
merchandise from a Customs bonded warehouse, or merchandise from a 
foreign trade zone) (see legislative history for this provision in 
H.R.Rep.No. 103-361, 103d Cong., 1st Sess., Pt. 1, 150-151 (1993), and 
S.Rep.No. 103-189, 103d Cong., 1st Sess., 97 (1993)). Section 1553a 

[[Page 6773]]
provides for the use of the bill of lading or equivalent document of 
receipt, issued by the pipeline carrier to the shipper and accepted by 
the consignee, to account for the quantity of merchandise transported 
and to maintain the identity of that merchandise. Unless Customs has 
reasonable cause to suspect fraud, the provision authorizes Customs to 
accept the bill of lading, or equivalent document of receipt, for this 
purpose. Under 19 U.S.C. 1553a, the shipper, pipeline operator, and 
consignee are subject to the recordkeeping requirements of sections 508 
and 509, Tariff Act of 1930, as amended (19 U.S.C. 1508, 1509).
    The background to, and reasons for, the addition of 19 U.S.C. 1553a 
to the Customs laws are explained in the legislative history for the 
Act (H.Rep.No. 361, ibid., and S.Rep.No. 189, ibid.). Currently, there 
is no provision in the Customs laws or regulations governing the 
transportation of bonded merchandise by pipeline. The general 
provisions currently governing transportation in bond (entry for 
immediate transportation and entry for transportation and exportation; 
sections 552 and 553, Tariff Act of 1930, as amended (19 U.S.C. 1552, 
1553)), do not authorize the commingling of bonded merchandise with 
non-bonded merchandise in the transportation. Most merchandise 
transported by pipeline is commingled and is susceptible to 
quantitative accounting (see H.Rep.No. 189, ibid.). Analogous to the 
amendment to 19 U.S.C. 1557(a) (discussed below), the new provision 
permits the effective use of modern fuel transportation systems and 
will reduce administrative costs and paperwork for the industry and the 
Government.
    Under the amendment to 19 U.S.C. 1557(a), turbine fuel may be 
withdrawn from a Customs bonded warehouse for use under section 309, 
Tariff Act of 1930, as amended (19 U.S.C. 1309), without the payment of 
duty if an amount equal to the quantity of fuel withdrawn is shown to 
be used as provided for in section 1309 within 30 days of withdrawal. 
Under section 1309, in part, articles may be withdrawn from any Customs 
bonded warehouse free of duty for supplies of foreign or U.S. vessels 
or aircraft actually engaged in foreign trade or trade between the U.S. 
and any of its possessions, or between Hawaii and any other part of the 
U.S. or between Alaska and any other part of the U.S. Section 1309 
contains an exception under which the provisions for free withdrawals 
in that section are not applicable to petroleum products for vessels or 
aircraft in voyages or flights exclusively between Hawaii or Alaska and 
any airport or Pacific coast seaport of the U.S.
    Under the amended 19 U.S.C. 1557(a), duties are required to be 
deposited on turbine fuel which was withdrawn in excess of the quantity 
shown to have been used under 19 U.S.C. 1309 during the 30-day period 
following withdrawal of the fuel. Such duties must be deposited by the 
40th day after the date of withdrawal of the fuel. Interest on the 
duties is payable from the date of withdrawal.
    The background to, and reasons for, the amendment to 19 U.S.C. 
1557(a) are explained in the legislative history for the Act (H.Rep.No. 
361, ibid., and S.Rep.No. 189, ibid.). According to these reports, the 
nature of major airport fueling systems is that different lots (bonded, 
imported, domestic, etc.) of turbine fuel are commingled in a common 
hydrant system. Under the law and regulations before the amendment of 
19 U.S.C. 1557(a), Customs considered withdrawal of fuel from storage 
tanks at airports into the common hydrant system as withdrawal from 
bonding. Therefore, in order for such bonded fuel to qualify for the 
duty-free treatment authorized under 19 U.S.C. 1309, Customs required 
daily accounting for the commingled bonded fuel.
    According to the industry, identifying the turbine fuel which is 
used for flights qualifying under 19 U.S.C. 1309 and that used for non-
qualifying flights at the time that turbine fuel is entered into the 
common hydrant system is impracticable and, if possible, would result 
in great administrative expense and excessive paperwork. Alternatively, 
requiring multiple hydrant systems (for different lots of turbine fuel) 
is physically impracticable at most airports and would also result in 
great expense.
    According to this legislative history, the amendment to 19 U.S.C. 
1557(a) will permit the effective use of modern fueling systems at U.S. 
airports. It will also permit the intended use of existing law (i.e., 
19 U.S.C. 1309) permitting the duty-free withdrawal of supplies for 
qualifying aircraft. Further, it will substantially reduce 
administrative costs and paperwork for the industry and administrative 
costs for the Government.
    Because Customs is aware of some confusion regarding the 
possibility of similar treatment of turbine fuel removed from a foreign 
trade zone for flights qualifying under 19 U.S.C. 1309, we are noting 
in this document that there is no provision for foreign trade zones in 
the Act similar to the amendment to 19 U.S.C. 1557(a) effected by 
section 665 of the Act. It is true that the legislative history to 
section 637 of the Act amending the statute governing formal entry (19 
U.S.C. 1484) indicates that Congress intended that Customs, in 
developing regulations for periodic entry, should allow for weekly and 
monthly entries for merchandise shipments from general purpose foreign 
trade zones and subzones (see H.Rep.No. 361, ibid., at 136). The 
amendments effected by section 637 of the Act, however, are general 
amendments regarding formal entry requirements and procedures, under 
which amendments to the regulations governing formal entry (see parts 
141, 142, and 143) are under consideration. By contrast, the sections 
of the Act implemented by this document are specific provisions 
relating to the subject matter of this document, and not to removals of 
turbine fuel from foreign trade zones. As stated above, no such 
provision (i.e., specifically governing removal from a foreign trade 
zone of turbine fuel for use on qualifying flights under 19 U.S.C. 
1309) was enacted in the Act. Therefore, because this document is 
intended to implement the specific provisions effected by sections 664 
and 665 of the Act, no specific provision is promulgated in this 
document providing for periodic entries of turbine fuel removed from a 
foreign trade zone for use on qualifying flights under 19 U.S.C. 1309. 
(We do note, however, that the regulations implementing section 664 of 
the Act may affect turbine fuel removed from a foreign trade zone and 
transported by pipeline to the location where it may be loaded on 
qualifying flights under 19 U.S.C. 1309.)

Pipeline Transportation in Bond

    The Customs Regulations generally pertaining to the transportation 
of merchandise in bond are currently found in part 18. These interim 
regulations implement the new 19 U.S.C. 1553a by the addition to part 
18 of a new Sec. 18.31. Generally, this new Sec. 18.31 provides that 
merchandise may be transported by pipeline under the procedures 
provided for in part 18, unless otherwise specifically provided. The 
new Sec. 18.31 provides for the acceptance by Customs of a bill of 
lading or equivalent document of receipt to account for the quantity of 
merchandise transported and to maintain the identity of the 
merchandise, under the circumstances provided in the statute (i.e., the 
bill of lading or equivalent document of receipt must be issued by the 
pipeline operator to the shipper and accepted by 

[[Page 6774]]
the consignee and there must be no reasonable cause for Customs to 
suspect fraud).
    Basically, the new Sec. 18.31 adopts the current procedures for 
transportation in bond, as applicable to pipeline transportation. That 
is, generally, merchandise to be transported in bond between ports in 
the U.S. is delivered to a common carrier, contract carrier, freight 
forwarder, or private carrier bonded for that purpose. The carrier 
prepares an in-bond document and takes receipt of the merchandise. The 
in-bond document (which also serves as the transportation entry or 
withdrawal), with receipt of the merchandise by the carrier noted 
thereon, together with a Customs control card or carnet, is used as the 
in-bond manifest for the merchandise to its port of destination.
    Delivery of the merchandise at the port of destination is required 
within 30 days after the date of receipt by the carrier at the port of 
origin, or 60 days after such date if the merchandise is transported on 
board a vessel engaged in the coastwise trade (except for transit air 
cargo in which case 10 days is given, under Sec. 122.118). Within 2 
days of arrival of the merchandise at the port of destination, the 
delivering carrier is required to report the arrival to Customs by 
surrendering the in-bond manifest to Customs at that port.
    Under its bond, the initial carrier is responsible for any 
shortage, irregular delivery, or nondelivery at the port of destination 
or exportation. Specific provision is made for transshipment to one or 
more other conveyances, diversion to a different port, the different 
kinds of transportation entry or withdrawal which may be made (i.e., 
for immediate transportation, exportation, and transportation and 
exportation), change of the foreign destination of merchandise entered 
or withdrawn for transportation and exportation, retention of 
merchandise on the dock, and the splitting of a shipment of merchandise 
for exportation.
    In addition to incorporating these general requirements, the new 
Sec. 18.31 provides for the inclusion of the bill of lading or 
equivalent document of receipt with the Customs in-bond document for 
merchandise to be transported in bond by pipeline. Provided that there 
are no discrepancies between the bill of lading or equivalent document 
of receipt and the other documents making up the in-bond manifest for 
the merchandise, and provided that Customs has no reasonable cause to 
suspect fraud, the bill of lading or equivalent document of receipt is 
to be accepted by Customs at the port of destination or exportation as 
establishing the quantity and identity of the merchandise transported.
    In cases in which the initial carrier transfers or transships 
merchandise to another conveyance or carrier, the new Sec. 18.31 
generally adopts the procedures in the current provision for 
transshipment (Sec. 18.3). Basically, those procedures require the in-
bond document accompanying the merchandise to be presented to Customs 
at the place of transshipment for execution of a certificate of 
transfer on the document. The notated document then accompanies the 
merchandise to its port of destination or exportation. If the 
merchandise is to be transshipped to more than one conveyance, 
additional copies of the in-bond document are required.
    In addition to these procedures, the new Sec. 18.31 provides that, 
if a pipeline is the initial carrier, a copy of the bill of lading or 
equivalent document of receipt shall be delivered to the person in 
charge of the conveyance to which the merchandise is transferred, and 
if the merchandise is transferred to more than one conveyance, to the 
person in charge of each of the conveyances. If the initial carrier is 
not a pipeline, the new Sec. 18.31 provides for the delivery, along 
with the in-bond document, of the bill of lading or equivalent document 
of receipt issued by the pipeline operator to the shipper to the 
appropriate Customs official at the port of destination or exportation. 
As is currently provided in Sec. 18.3, the in-bond document will be 
executed by Customs with the certificate of transfer in either case 
(i.e., if a pipeline is the initial carrier or if the initial carrier 
is not a pipeline).
    The new Sec. 18.31 also makes it clear, as is currently provided in 
part 18 (see Sec. 18.8), that the initial carrier is responsible for 
any discrepancies, including shortages, irregular deliveries, or 
nondeliveries at the port of destination or exportation. As provided in 
19 U.S.C. 1553a, the new Sec. 18.31 provides that the shipper, pipeline 
operator, and consignee are subject to the recordkeeping requirements 
in 19 U.S.C. 1508 and 19 U.S.C. 1509, as provided in 19 CFR part 162.
    To make it clear to the public that the Customs Regulations 
pertaining to transportation in bond apply to transportation by 
pipeline, the definition of ``common carrier'' in Sec. 18.1(a)(1) is 
amended to specifically include a common carrier of merchandise owning 
or operating a pipeline.

Withdrawal of Fuel From Warehouse

    The Customs Regulations pertaining to the withdrawal of merchandise 
from a Customs bonded warehouse are found in part 144. Under 
Sec. 144.35, the withdrawal from warehouse of supplies and equipment 
for vessels and aircraft are provided for in subpart D of part 144 and 
Secs. 10.59 through 10.65. The latter contain specific provisions on 
the duty-free treatment of supplies for foreign or U.S. vessels and 
aircraft actually engaged in foreign trade under 19 U.S.C. 1309. 
Pursuant to Sec. 10.59(d), although the provisions in Secs. 10.59 
through 10.64 are written in terms of vessels, they are made applicable 
to aircraft insofar as they may be so applicable. Specific provisions 
for the withdrawal of fuel as supplies under 19 U.S.C. 1309 for vessels 
or aircraft are provided in Sec. 10.62.
    These interim regulations implement the amendment to 19 U.S.C. 
1557(a) by the addition of a new Sec. 10.62b to part 10. Under the new 
Sec. 10.62b, turbine fuel intended for use as supplies on aircraft 
under 19 U.S.C. 1309 which is withdrawn from a Customs bonded warehouse 
is entitled to duty-free treatment under 19 U.S.C. 1309 if an amount 
equal to or exceeding the quantity of such fuel is established to have 
been used on aircraft qualifying for duty-free treatment under 19 
U.S.C. 1309 within 30 days after the withdrawal of the fuel from the 
Customs bonded warehouse. For the procedures for such withdrawals, 
Sec. 10.62b adopts the procedures now provided for in Secs. 10.59 
through 10.65. Section 10.62b provides that withdrawals under that 
provision shall be annotated to show the kind of withdrawal.
    If less fuel than was withdrawn is used within 30 days of 
withdrawal on qualifying aircraft, a withdrawal for consumption must be 
filed and duties must be paid for the excess of fuel withdrawn over 
that used on qualifying aircraft. The withdrawal for consumption must 
be filed and the duties must be paid, with interest, by the 40th day 
after the date of withdrawal of the fuel. Interest is calculated from 
the date of withdrawal at the rate of interest established under 26 
U.S.C. 6621.
    The new Sec. 10.62b provides for two alternative ways of 
establishing use by qualifying aircraft of fuel in an amount equal to 
or exceeding the quantity of the fuel withdrawn under the provision.
    In the first alternative, the person withdrawing the aircraft 
turbine fuel submits records (e.g., ``uplift'' or refueling tickets) 
prepared in the normal course of business effecting the transfer 

[[Page 6775]]
to 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 19 U.S.C. 1309. These records must identify the aircraft to 
which the fuel is transferred by aircraft company name, flight number, 
flight origin and destination, and date of flight, or other means of 
identification satisfactory to Customs.
    In the second alternative, the person withdrawing the aircraft 
turbine fuel files a certification (documentary or electronic) 
certifying: (1) The intended use under 19 U.S.C. 1309 of all of the 
fuel withdrawn; (2) the transfer to qualifying aircraft within 30 days 
of the date of withdrawal from warehouse of 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; (3) the use of all aircraft onto 
which the fuel, which is not entered and on which duties are not paid, 
was uplifted in trade qualifying for treatment under 19 U.S.C. 1309; 
and (4) that the person making the certification has evidence 
(documentary or electronic) available for Customs inspection at a named 
place which supports each of these statements. Under the second 
alternative, the person making the certification must promptly provide 
evidence supporting the claim, including the records described in the 
other alternative means of establishing use of the fuel on a qualifying 
aircraft (above), upon request by Customs. The records or certification 
are required to be submitted to Customs by the 40th day after the date 
of withdrawal of the fuel unless the fuel was withdrawn under a blanket 
permit to withdraw, in which case the records or certification are 
required to be submitted by the 40th day after all of the fuel covered 
by the blanket permit has been withdrawn.
    The new Sec. 10.62b provides for liquidated damages against the 
person withdrawing turbine fuel under the section, under the provisions 
of Sec. 113.62, for failure to account for such turbine fuel. Failure 
to account for such turbine fuel includes: (1) The failure to file, 
within 40 days from the date of withdrawal, a withdrawal for 
consumption and pay applicable duty, with interest, on the quantity of 
fuel withdrawn in excess of the quantity of fuel established to have 
been used on qualifying aircraft within 30 days of withdrawal; (2) the 
failure to timely file the evidence or certification, provided for in 
the new Sec. 10.62b, establishing such use of the fuel which is not 
entered and on which duties are not paid; or (3) the failure to 
promptly provide, upon request by Customs, the evidence required to 
support the claim for treatment under the new Sec. 10.62b. A conforming 
amendment is made to Sec. 113.62, containing the basic importation and 
entry bond conditions.
    The new Sec. 10.62b provides that ``blanket'' withdrawals, under 
existing regulations except as specifically provided in the provision, 
may be used for withdrawals under this provision. Under a blanket 
withdrawal, all or part of the merchandise entered into a warehouse may 
be withdrawn, at different times if desired, without further Customs 
approval (i.e., after approval of the blanket permit) (see 19 CFR 
19.6(d)).
    Because it is anticipated that blanket withdrawals will be the 
predominant form of withdrawal under the amended 19 U.S.C. 1557(a) and 
because of the need for certainty as to the time of withdrawal under 
the amended 19 U.S.C. 1557(a), we are describing in detail the 
requirements and procedures for blanket withdrawals under Sec. 10.62b. 
As noted above, unless otherwise provided in Sec. 10.62b, these 
procedures are provided for in existing regulations, specific 
provisions of which are cited in the following description, along with 
citations to the appropriate paragraphs in the new Sec. 10.62b.
    As is true currently under Sec. 10.62, blanket withdrawals under 
Sec. 10.62b may only be used when all of the turbine fuel in a Customs 
bonded tank is intended only for loading duty-free as supplies on 
aircraft qualifying for the privileges provided for in 19 U.S.C. 1309 
(Sec. 10.62(a)). Unlike other blanket withdrawals (see Secs. 10.62(a) 
and 19.6(d)(1)), turbine fuel withdrawn under these blanket withdrawal 
procedures may be delivered at ports other than the port of withdrawal 
(Sec. 10.62b(g)(2)).
    Applications for permission for blanket withdrawals under 
Sec. 10.62b are filed with Customs by the withdrawer on the warehouse 
entry, or on the warehouse entry/entry summary when used as an entry 
(Sec. 10.62b(g)(1)). The warehouse entry or entry/entry summary must be 
annotated to indicate that permission for blanket withdrawal is sought 
(Secs. 19.6(d)(1) and 10.62b(g)(1)). Customs acceptance of a properly 
completed application for a blanket permit to withdraw constitutes 
approval of the blanket permit to withdraw (Sec. 10.62b(g)(3)).
    A copy of the approved blanket permit to withdraw is delivered to 
the warehouse proprietor after which fuel may be withdrawn under the 
terms of the permit (Sec. 10.62b(g)(4)). The blanket permit may be 
revoked by Customs in favor of individual applications and permits if 
the permit is found to be used for other purposes or if necessary to 
protect the revenue or properly enforce any law or regulation 
administered by Customs (Sec. 19.6(d)(1)). Withdrawals under an 
approved blanket permit may be made without any further Customs 
approval and are documented by the placement in the warehouse 
proprietor's permit file folder of a copy of a commercially acceptable 
document of receipt (such as a ``withdrawal ticket'') issued by the 
warehouse proprietor, identified with a unique alpha-numeric code 
(Secs. 19.6(d)(2) and 10.62b (g)(4) and (g)(5)). These documents of 
receipt are required to contain the identity of the withdrawer, 
identity of the warehouse and tank from which the fuel is withdrawn, 
date of withdrawal, type of merchandise withdrawn, and quantity of 
merchandise withdrawn (Sec. 10.62b(g)(5) (i) through (v)).
    For blanket withdrawals, the date of withdrawal, for purposes of 
calculating the 30-day period in which fuel must be used on qualifying 
aircraft under 19 U.S.C. 1557(a), begins with the date on which 
physical removal of the fuel from the warehouse commences 
(Sec. 10.62b(g)(6)). That is, if removal of fuel begins at 10:00 PM on 
``day one'' and is not completed until some time on ``day two'' or 
later, all of the fuel must be used on qualifying aircraft within 30 
days from ``day one'' to qualify for treatment under that provision.
    If, within the 30-day period following withdrawal under a blanket 
permit, less fuel is used on qualifying aircraft than was withdrawn, a 
withdrawal for consumption must be filed and duties must be paid for 
the excess of fuel withdrawn over that used on qualifying aircraft. As 
provided by the amended 19 U.S.C. 1557(a) and these interim regulations 
(Sec. 10.62b(e)), the withdrawal for consumption must be filed and the 
duties must be paid, with interest, by the 40th day after the date of 
withdrawal of the fuel.
    When all of the fuel covered by an entry for which a blanket permit 
to withdraw was issued has been withdrawn, the warehouse proprietor 
prepares a blanket permit summary on a copy of Customs Form 7506 or a 
form on the letterhead of the proprietor, bearing the words ``BLANKET 
PERMIT SUMMARY'' in capital letters conspicuously printed or stamped in 
the top margin (Secs. 19.6(d)(4) and 10.62b(g)(7)). The blanket permit 
summary is required to provide an accounting of the disposition of the 
merchandise covered by the blanket 

[[Page 6776]]
permit by stating, in summary form, the unique alpha-numeric codes for, 
and information required on the withdrawal documents, as well as the 
identity of the warehouse entry to which the withdrawals are attributed 
(Secs. 19.6(d)(4) and 10.62b(g)(7)). The warehouse proprietor is 
required to certify on the blanket permit summary that the merchandise 
listed therein was withdrawn in compliance with Secs. 10.62, 10.62b, 
and 19.6(d) (Secs. 19.6(d)(4) and 10.62b(g)(8)). The blanket permit 
summary is placed in the warehouse proprietor's permit file folder and 
treated as provided in Sec. 19.12, regarding warehouse recordkeeping, 
storage, and security requirements (Sec. 19.6(d)(4)).
    By the 40th day after all of the fuel covered by the blanket permit 
has been withdrawn, the person withdrawing aircraft turbine fuel is 
required to submit to Customs either the records or the evidence 
provided for in Sec. 10.62b(c) (Sec. 10.62b(d) and (g)(9)). 
Discretionary authority is given to the port director to require 
submission of a summary of these records or evidence, along with the 
evidence required to establish use of fuel on qualifying aircraft, in 
electronic form. Such submissions must be in a format compatible with 
Customs systems (Sec. 10.62b(g)(9)).
    The new Sec. 10.62b provides that the person withdrawing aircraft 
turbine fuel from warehouse under the provision is subject to the 
recordkeeping requirements in 19 U.S.C. 1508 and 19 U.S.C. 1509, as 
provided for in part 162.
    Conforming amendments are made to the general provisions for 
withdrawal under 19 U.S.C. 1309 in Secs. 10.60 and 10.62. In the case 
of the amendment to Sec. 10.60, the amendment concerns the general 
requirement that supplies to be used at a port other than the port of 
withdrawal from warehouse must be withdrawn on a withdrawal for 
transportation in bond. The amendment makes it clear that this general 
requirement is inapplicable in the case of withdrawals under the new 
Sec. 10.62b. In the case of the amendment to Sec. 10.62, the amendment 
alerts the public to the fact that there is an alternative provision 
for aircraft turbine fuel withdrawn from warehouse, provided for in 
Sec. 10.62b, to the general procedures and requirements for withdrawal 
of bunker fuel under 19 U.S.C. 1309.
    The interim regulation also promulgates by regulation, in the new 
Sec. 10.62b, a position taken by Customs in interpretative rulings 
regarding the commingling in a single hydrant fueling system of 
aircraft turbine fuel from a Customs bonded warehouse with domestic or 
other fuel when the fuel from the warehouse is intended for use under 
19 U.S.C. 1309. Generally, under these rulings, dated October 20, 1989 
(File: 221483), May 8, 1990 (File: 222258), and April 29, 1991 (File: 
222914), Customs permitted such commingling if two basic conditions 
were met. The first of these conditions was that the hydrant system 
must be physically configured so that once the fuel from the warehouse 
was introduced or commingled into the single hydrant system, it could 
not be removed otherwise than by being pumped into aircraft. The second 
of these conditions was that the commingled fuel must be accounted for 
on the basis of a 24-hour accounting period (i.e., entry must be made 
and duty paid for any quantity of the fuel from the warehouse which was 
introduced into the hydrant system when a like quantity was not loaded 
on aircraft qualifying for duty-free treatment under 19 U.S.C. 1309 
within 24 hours of the introduction of the fuel from the warehouse into 
the hydrant system). The rulings held that the requirement for 
accounting on the basis of a 24-hour period meant that the fuel from 
the warehouse introduced or commingled into the single hydrant system 
must be loaded onto a qualifying aircraft in the same 24-hour period 
(defined as a 24 hour period beginning at 12:01 a.m. and ending at 
12:00 midnight). The legislative history for the amendment to 19 U.S.C. 
1557(a), described above, recognized and confirmed the foregoing 
Customs interpretations of the then applicable law and regulations.
    As stated above, the position taken in these rulings is implemented 
in the new Sec. 10.62b. Paragraph (a) of that section contains a 
provision making the position taken in these rulings the general rule. 
That is, paragraph (a) provides that, unless otherwise provided (the 
provision for withdrawal from warehouse under the amended 19 U.S.C. 
1557(a), provided for in the other paragraphs of Sec. 10.62b, does, of 
course, otherwise provide), aircraft turbine fuel withdrawn from a 
Customs bonded warehouse for use under 19 U.S.C. 1309 may be commingled 
with domestic or other aircraft turbine fuel only upon approval by the 
authorized Customs official. Customs approval for such commingling 
would have to be obtained under the appropriate provisions in the 
Customs Regulations (subpart D of part 144).
    Under paragraph (a) of Sec. 10.62b, the authorized Customs official 
may approve such commingling if the fueling system in which the 
commingling occurs contains physical safeguards preventing the possible 
unauthorized entry into the Customs territory of the fuel. The 
commingled fuel must be accounted for in the same 24-hour period in 
which it was commingled and must be exported or used under 19 U.S.C. 
1309 within that 24-hour period or entered or withdrawn for 
consumption, with duty deposited, as required under the appropriate 
regulations (see part 144). As noted above, the specific provision for 
the duty-free withdrawal of aircraft turbine fuel from a Customs bonded 
warehouse if the fuel is used on an aircraft qualifying for duty-free 
treatment under 19 U.S.C. 1309, provided for in the amendment to 19 
U.S.C. 1557(a) and paragraphs (b) through (h) of Sec. 10.62b, is an 
exception from the above-described general rule.

Delayed Effective Date and Public Comment Requirements

    The agency intends that these interim regulations will become 
effective on the 45th day following the date of publication, i.e., 15 
days after the close of the comment period. The agency believes it has 
good cause under 5 U.S.C. 553(b)(B) and 553(d) (1) and (3) of the 
Administrative Procedure Act (APA) (5 U.S.C. 553) to promulgate interim 
regulations because the regulations provide an immediate benefit to 
both the Government and the public by reducing administrative costs and 
paperwork pursuant to specific statutory authority. These interim 
regulations are intended to implement Congressional intent embodied in 
sections 553a and 557(a), Tariff Act of 1930, as amended (19 U.S.C. 
1553a and 1557(a)), and specifically stated in the legislative history 
to those provisions, as described above.
    Furthermore, existing rights and obligations are not changed 
otherwise than as authorized by the new statutory provisions. The 
agency believes that the affected public wants these new statutory 
provisions to become effective as soon as possible so that the public 
can benefit from the efficiencies and savings resulting therefrom. In 
addition, the agency does not believe the public needs time to conform 
its conduct so as to avoid violation of these regulations (i.e., 
because the new provisions are permissive, not restrictive). The due 
and timely execution of the agency's responsibilities would be 
unnecessarily impeded by a time consuming notice and comment period. 
The agency believes such delay is unnecessary because it does not 
expect the public to object to the regulations being promulgated as 
they merely provide the relief that Congress intended.
    Even though, based on the discussion set forth above, Customs 
believes the 

[[Page 6777]]
amendments in this document may be promulgated on an interim basis and 
could be effective immediately, Customs is providing a 45-day delayed 
effective date, with a 30-day comment period preceding that effective 
date. This represents a practical compromise between the need for 
temporal urgency and the desirability for public participation in the 
rulemaking process.
    In the spirit of the APA, the agency is soliciting public comment 
regarding both the substance of these interim regulations and Customs 
decision to promulgate these regulations on an interim basis with the 
effective date delayed for that period of time necessary to review any 
relevant comments. Unless the comments show that there exists good 
cause for not making the regulations effective on an interim basis, the 
regulations will become effective on an interim basis on the 45th day 
following the date of publication.

Comments

    Consequently, the agency hereby solicits comments on both the 
substance of these regulations and their intended effective date. The 
comments should clearly state whether they address the substance of the 
interim rule or the agency's determination to make the rule effective 
on an interim basis. If, based on the comments, good cause is shown 
that the regulations should not become effective on an interim basis, a 
document will be issued withdrawing the interim regulations before 
their effective date. If no such good cause is shown, the interim 
regulations will go into effect. The agency will then be able to gain 
experience with the interim regulation, fully consider substantive 
comments, and decide whether the interim regulation needs amendment 
before its promulgation as a final rule. All substantive comments 
received timely will be considered and will be addressed in the final 
rule document.
    Consideration will be given to any written comments (preferably in 
triplicate) that are timely submitted to Customs. All such comments 
received from the public pursuant to this notice of rulemaking will be 
available for public inspection in accordance with the Freedom of 
Information Act (5 U.S.C. 552), Sec. 1.4, Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b), Customs Regulations (19 
CFR 103.11(b)), during regular business days between the hours of 9:00 
a.m. and 4:30 p.m. at the Regulations Branch, 1099 14th Street, NW., 
Suite 4000, Washington, D.C.

Regulatory Flexibility Act and Executive Order 12866

    Since this document is not subject to the notice and public 
procedure requirements of 5 U.S.C. 553, it is not subject to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
This document is not a ``significant regulatory action'' under E.O. 
12866.

Paperwork Reduction Act

    This regulation is being issued without prior notice and public 
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). 
For this reason, the collection of information contained in this 
regulation has been reviewed and, pending receipt and evaluation of the 
public comments, approved by the Office of Management and Budget (OMB) 
in accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 2507) under control number 1515-0209.
    The collection of information in this regulation is in Sec. 10.62b. 
This information is required by Customs to ensure compliance with the 
statute authorizing the described procedure. This information will be 
used to verify that turbine fuel withdrawn from a Customs bonded 
warehouse under 19 U.S.C. 1557(a) is used on aircraft qualifying for 
duty-free withdrawal of fuel supplies, as required under the law. The 
likely recordkeepers are businesses.
    Estimated total annual reporting and/or recordkeeping burden: 240 
hours.
    Estimated average annual burden hours per recordkeeper: 12 hours.
    Estimated number of respondents and/or recordkeepers: 20.
    Estimated annual frequency of responses: 12.
    Comments concerning the collection of information and the accuracy 
of the estimated average annual burden, and suggestions for reducing 
this burden should be directed to the Office of Management and Budget 
(OMB), Attention: Desk Officer for the Department of the Treasury, 
Office of Information and Regulatory Affairs, Washington, D.C. 20503. A 
copy should also be sent to the Regulations Branch, Office of 
Regulations and Rulings, U.S. Customs Service, 1301 Constitution 
Avenue, N.W., Washington, D.C. 20229.

Drafting Information

    The principal author of this document was Paul G. Hegland, Entry 
Rulings Branch, U.S. Customs Service. However, personnel from other 
offices participated in its development.

List of Subjects

19 CFR Part 10

    Customs duties and inspection, Exports, Imports, Reporting and 
recordkeeping requirements, Shipments.

19 CFR Part 18

    Bonded transportation, Common carriers, Customs duties and 
inspection, Exports, Imports.

19 CFR Part 113

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

Amendments

    Title 19, Chapter I, parts 10, 18 and 113 of the Customs 
Regulations (19 CFR parts 10, 18 and 113) are amended as set forth 
below:

PART 10--ARTICLES CONDITIONALLY FREE, SUBJECT TO A REDUCED RATE, 
ETC.

    1. The general authority for part 10 continues to read as follows, 
and specific authority, for new Sec. 10.62b, is added as follows:

    Authority: 19 U.S.C. 66, 1202 (General Note 20, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1321, 1481, 1484, 
1498, 1508, 1623, 1624;
* * * * *
    Sec. 10.62b also issued under 19 U.S.C. 1557;
* * * * *
    2. Section 10.60 is amended by revising the first sentence of 
paragraph (d) to read as follows:


Sec. 10.60  Forms of withdrawals; bond.

* * * * *
    (d) Except as otherwise provided in Sec. 10.62b, relating to 
withdrawals from warehouse of aircraft turbine fuel to be used within 
30 days of such withdrawal as supplies on aircraft under Sec. 309, 
Tariff Act of 1930, as amended, when the supplies are to be laden at a 
port other than the port of withdrawal from warehouse, they shall be 
withdrawn for transportation in bond to the port of lading. * * *
* * * * *
    3. Section 10.62 is amended by revising the first sentence of 
paragraph (a) to read as follows:


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 

[[Page 6778]]
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 7506, either single or 
blanket, may be made without the presence of a Customs officer. * * *
* * * * *
    4. Section 10.62b is added to read as follows:


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 
Secs. 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 shall 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 which is not entered and upon which duties are not paid by 
submitting to Customs, within the time provided in paragraph (d) of 
this section, either--
    (i) Records prepared in the normal course of business effecting the 
transfer to identified (e.g., by aircraft company name, flight number, 
flight origin and destination, and date of flight) aircraft of fuel in 
an amount equal to or exceeding the quantity of the fuel withdrawn 
which is not entered and on which duties are not paid and objective 
evidence that the aircraft to which the fuel was transferred were 
actually used in trade qualifying for the privileges provided in 
section 309, Tariff Act of 1930, as amended; or
    (ii) A certification (documentary or electronic) that:
    (A) All of the fuel withdrawn was intended for use on aircraft 
entitled to the privileges provided for in section 309;
    (B) Within 30 days of the date of withdrawal from warehouse, an 
amount of fuel equal to or exceeding the quantity of the fuel withdrawn 
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, to which the fuel which is not entered and 
on which duties are not paid was transferred as supplies, 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 Secs. 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 

[[Page 6779]]

    (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 
Secs. 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 
Secs. 10.62 and 19.6(d) except that--
    (1) Application by the withdrawer for a blanket permit to withdraw 
shall be on the warehouse entry, or on the warehouse entry/entry 
summary when used as an entry, annotated with the words ``Some or all 
of the merchandise will be withdrawn under blanket permit per 
Secs. 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 Secs. 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.

PART 18--TRANSPORTATION IN BOND AND MERCHANDISE IN TRANSIT

    1. The general authority for part 18 is revised to read, and 
specific authority for new Sec. 18.31 is added, as follows:

    Authority: 5 U.S.C. 301, 19 U.S.C. 66, 1202 (General Note 20, 
HTSUS), 1551, 1552, 1553, 1624;
* * * * *
    Sec. 18.31 also issued under 19 U.S.C. 1553a.
    2. Section 18.1 is amended by revising the second sentence of 
paragraph (a)(1) to read as follows:


Sec. 18.1  Carriers, application to bond.

    (a)(1) * * * For the purposes of this section, the term ``common 
carrier'' means a common carrier of merchandise owning or operating a 
railroad, steamship, pipeline, or other transportation line or route. * 
* *
* * * * *
    3. Part 18 is amended by adding a center heading and new 
Sec. 18.31, following Sec. 18.27, to read as follows:

Merchandise Transported by Pipeline


Sec. 18.31  Pipeline transportation of bonded merchandise.

    (a) General. Merchandise may be transported by pipeline under the 
procedures in this part, as appropriate and unless otherwise 
specifically provided for in this section.
    (b) Bill of lading to account for merchandise. Unless Customs has 
reasonable cause to suspect fraud, Customs shall accept a bill of 
lading or equivalent document of receipt issued by the pipeline 
operator to the shipper and accepted by the consignee to account for 
the quantity of merchandise transported by pipeline and to maintain the 
identity of the merchandise.
    (c) Procedures when pipeline is only carrier. When a pipeline is 
the only carrier of bonded merchandise and there is no transfer to 
another carrier, the bill of lading or equivalent document of receipt 
issued by the pipeline operator to the shipper shall be included with, 
and made a part of, the Customs in-bond document (see Sec. 18.2(b)). If 
there are no discrepancies between the bill of lading or equivalent 
document of receipt and the other documents making up the in-bond 
manifest for the merchandise, and provided that Customs has no 
reasonable cause to suspect fraud, the bill of lading or equivalent 
document of receipt shall be accepted by Customs at the port of 
destination or exportation (see Secs. 18.2(d) and 18.7) as establishing 
the quantity and identity of the merchandise transported. The pipeline 
operator shall be responsible for any discrepancies, including 
shortages, irregular deliveries, or nondeliveries at the port of 
destination or exportation (see Sec. 18.8).
    (d) Procedures when there is more than one carrier (i.e., transfer 
of the merchandise).
    (1) Pipeline as initial carrier. When a pipeline is the initial 
carrier of bonded merchandise and the merchandise is transferred to 
another conveyance (either a different mode of transportation or a 
pipeline operated by another operator), the procedures in Sec. 18.3 and 
paragraph (c) of this section shall be followed, except that--
    (i) When the merchandise is to be transferred to one conveyance, a 
copy of the bill of lading or equivalent document issued by the 
pipeline operator to the shipper shall be delivered to the person in 
charge of the conveyance for delivery, along with the in-bond document, 
to the appropriate Customs official at the port of destination or 
exportation; or
    (ii) When the merchandise is to be transferred to more than one 
conveyance, a copy of the bill of lading or equivalent document issued 
by the pipeline operator to the shipper shall be delivered to the 
person in charge of each additional conveyance, along with the two 
additional copies of the in-bond 

[[Page 6780]]
document, for delivery to the appropriate Customs official at the port 
of destination or exportation.
    (2) Transfer to pipeline from initial carrier other than a 
pipeline. When bonded merchandise initially transported by a carrier 
other than a pipeline is transferred to a pipeline, the procedures in 
Sec. 18.3 and paragraph (c) of this section shall be followed, except 
that the bill of lading or other equivalent document of receipt issued 
by the pipeline operator to the shipper shall be delivered, along with 
the in-bond document, to the appropriate Customs officer at the port of 
destination or exportation.
    (3) Initial carrier liable for discrepancies. In the case of either 
paragraph (d)(1) or (d)(2) of this section, the initial carrier shall 
be responsible for any discrepancies, including shortages, irregular 
deliveries, or nondeliveries, at the port of destination or exportation 
(see Sec. 18.8).
    (e) Recordkeeping. The shipper, pipeline operator, and consignee 
are subject to the recordkeeping requirements in 19 U.S.C. 1508 and 
1509, as provided for in part 162 of this chapter.

PART 113--CUSTOMS BONDS

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

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

    2. Section 113.62 is amended by revising the paragraph (b) 
introductory text to read as follows:


Sec. 113.62  Basic importation and entry bond conditions.

* * * * *
    (b) Agreement to Make or Complete Entry. If all or part of imported 
merchandise is released before entry under the provisions of the 
special delivery permit procedures under 19 U.S.C. 1448(b), released 
before completion of the entry under 19 U.S.C. 1484(a), or withdrawn 
from warehouse under 19 U.S.C. 1557(a) (see Sec. 10.62b of this 
chapter), the principal agrees to file within the time and in the 
manner prescribed by law and regulation, documentation to enable 
Customs to: * * *
* * * * *
Michael H. Lane,
Acting Commissioner of Customs.
    Approved: October 4, 1995.
John P. Simpson,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 96-3905 Filed 2-21-96; 8:45 am]
BILLING CODE 4820-02-P