[Federal Register Volume 66, Number 222 (Friday, November 16, 2001)]
[Proposed Rules]
[Pages 57688-57692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-28551]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 66, No. 222 / Friday, November 16, 2001 / 
Proposed Rules  

[[Page 57688]]



DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 141 and 142

RIN 1515-AC91


Single Entry for Split Shipments

AGENCY: Customs Service, Department of the Treasury.

ACTION: Proposed rule.

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

SUMMARY: This document proposes to amend the Customs Regulations to 
allow an importer of record, under certain conditions, to submit a 
single entry to cover multiple portions of a single shipment which was 
split by the carrier, and arrives in the United States separately. The 
proposed amendments would implement statutory changes made to the 
merchandise entry laws by the Tariff Suspension and Trade Act of 2000.

DATES: Comments must be received on or before January 15, 2002.

ADDRESSES: Written comments may be addressed to and inspected at the 
Regulations Branch, U.S. Customs Service, 1300 Pennsylvania Avenue, 
NW., 3rd Floor, Washington, DC 20229.

FOR FURTHER INFORMATION CONTACT: For operational or policy matters: 
Keith Fleming, Office of Field Operations, (202) 927-1049.
    For legal matters: Larry L. Burton, Office of Regulations and 
Rulings, (202) 927-1287.

SUPPLEMENTARY INFORMATION:

Background

    Section 1460 of Public Law 106-476, popularly known as the Tariff 
Suspension and Trade Act of 2000, amended section 484 of the Tariff Act 
of 1930 (19 U.S.C. 1484) by adding a new paragraph (j) in order to 
provide for the treatment of certain multiple shipments of merchandise 
as a single entry.
    In this latter respect, 19 U.S.C. 1484(j) is concerned with two 
issues. First, section 1484(j)(1) addresses a problem long encountered 
by the importing community in entering merchandise whose size or nature 
necessitates shipment in an unassembled or disassembled condition on 
more than one conveyance. Second, section 1484(j)(2) offers relief to 
importers whose shipments which they intended to be carried on a single 
conveyance are divided at the initiative of the carrier. As to both 
these matters, the legislation is silent as to the affected modes of 
transportation, thus indicating that the new law is to apply to 
merchandise shipped by air, land or sea.
    The regulations proposed today relate only to shipments which are 
divided by carriers; these will be referred to as ``split shipments''. 
Customs had already begun a project to amend the regulations to provide 
for one entry for such split shipments prior to the present statutory 
amendments, and it has since been determined that this effort should be 
completed. By a separate document that will be published in the Federal 
Register, Customs will propose regulations concerning the entry of 
shipments of unassembled or disassembled merchandise that arrive on 
more than one conveyance. Customs is working on that proposal, which 
will be published in the coming days.
    It is noted that section 1484(j) includes a requirement that an 
importer make application in advance to obtain the single entry option. 
It is proposed that the importer provide written notice of the intent 
to file a single entry for all portions upon learning of the split 
shipment, but before the filing of summary.

Split Shipment Defined

    Generally speaking, a split shipment consists of merchandise that 
is capable of being transported on a single conveyance, and that is 
delivered to and accepted by a carrier in the exporting country as one 
shipment under one bill of lading or waybill, and is thus intended by 
the importer to arrive as a single shipment. However, the shipment is 
thereafter divided by the carrier into different parts which arrive in 
the United States at different times, often days apart.
    In practice, shipments often become split after being delivered 
intact to a carrier. The movement of cargo as a split shipment on 
multiple conveyances appears to be a regular and routine industry 
practice, particularly in the air environment. There are various 
reasons for a shipment to be split by a carrier, such as limited space, 
the need to balance weight distribution on a conveyance, and offloading 
for safety concerns. Occasionally a shipment may leave the exporting 
country as one shipment, but be offloaded in a second country, and then 
be reladen onto more than one conveyance for transport to the United 
States.
    The Customs Regulations ordinarily require, with certain exceptions 
not here relevant, that all merchandise arriving on one conveyance and 
consigned to one consignee be included on one entry (see Sec. 141.51, 
Customs Regulations (19 CFR 141.51)). There is no provision currently 
in the Customs Regulations authorizing the filing of a single entry to 
cover multiple portions of a shipment split by a carrier which then 
arrives in the United States at different times. While this proposed 
rule document would establish procedures to permit the acceptance of a 
single entry in the case of such a split shipment, importers may, of 
course, continue to file a separate entry for each portion of a split 
shipment as it arrives, if they so choose.
    Specifically, the proposed regulations would permit the filing of a 
single entry to cover a split shipment provided that: (1) The subject 
shipment was capable of being transported on a single conveyance, and 
was delivered to and accepted by a carrier in the exporting country 
under one bill of lading or waybill and was thus intended by the 
importer to be a single shipment; (2) the shipment was thereafter split 
or deconsolidated by the carrier, acting on its own; (3) the split-
portions of the shipment remain consigned to the same party in the 
United States to whom they were destined in the original bill of lading 
or waybill; and (4) those portions of the split shipment that could be 
covered under the entry arrived directly from abroad at the same port 
of importation in the United States within 10 calendar days of the date 
of the portion that arrived first.

Entry or Release of Merchandise

    Where a single entry is accepted for multiple portions of a split 
shipment that arrives at different times, the legislation leaves open 
the question of whether the various portions of the shipment may be 
released as they arrive, or whether their release must be delayed until 
the entire shipment is reunited.

[[Page 57689]]

Customs has determined to provide either option to importers of certain 
shipments which have been split by carriers. Under either option, the 
proposed regulations require the importer to file Customs Form (CF) 
3461 or CF 3461 alternate (CF 3461 ALT), or electronic equivalent, 
which will cover all of the merchandise enumerated on the invoice, as 
necessary to secure its release. In particular, this data must indicate 
the total number of pieces in, as well as the total value of, the 
entire shipment as reflected on the invoice.
    In the event that each portion of a split shipment is to be 
released upon its arrival, and prior to the arrival of the entire 
shipment, the procedure for releasing merchandise under a special 
permit for immediate delivery will be used for this purpose, as more 
fully outlined below. As each portion arrives, the importer must submit 
a copy of the CF 3461/CF 3461 ALT, adjusted to reflect the quantity of 
that particular portion.

Special Permit for Immediate Delivery

    Customs law typically contemplates that merchandise will be 
imported before it is entered. This presents no problem for importers 
who elect to delay entry until all of the various portions of a split 
shipment have arrived and have been reunited within the specified time 
frame. However, it does raise an obstacle to allowing an entry covering 
an entire shipment to be filed and accepted when only a portion of the 
merchandise has thus far arrived. It also presents the difficult 
question of whether a rate of duty, set at the time of the release of 
the first portion, may apply to goods still outside, and not yet 
imported into, the United States. The proposed resolution of these 
latter two issues lies in requiring such shipments to be released under 
a special permit for immediate delivery. Section 142.21(a)-(g), Customs 
Regulations (19 CFR 142.21(a)-(g)), describes the circumstances and 
lists the types of merchandise that are currently eligible to be 
released under a special permit for immediate delivery.
    Due to the fact that merchandise released under the special permit 
procedures set forth in Sec. 142.21 is not considered to be entered 
until the entry/entry summary is filed, all of the merchandise 
contained in the split shipment will be imported by the time the entry/
entry summary is filed. The rate of duty applied to the merchandise 
will be the rate in effect for all goods released under the immediate 
delivery procedures; that is, the rate in effect when the entry/entry 
summary is filed. An importer who objects to having the duty rate tied 
to the date the entry/entry summary is filed may always file a separate 
entry for each portion of the split shipment as it arrives. In that 
case, the rate of duty will generally be the duty rate in effect at the 
time of release, unless the importer elects otherwise (see 
Sec. 141.68(a), Customs Regulations (19 CFR 141.68(a))).

Incremental Release of Split Shipment Under Immediate Delivery 
Procedure

    It is proposed to create another category of immediate delivery 
releases, to be referred to as incremental release, by amending 
Sec. 142.21 to add a new paragraph (g) that would allow the filing of a 
special permit for immediate delivery where the shipment is split by 
the carrier and the importer elects to have each portion of the 
shipment separately released as it arrives. Current paragraph (g) of 
Sec. 142.21 would be redesignated as paragraph (h) and be revised 
consistent with proposed paragraph (g). If an entry had already been 
pre-filed with Customs, as allowable under Sec. 142.2(b), Customs 
Regulations (19 CFR 142.2(b)), the notification to Customs by the 
importer of record that a single entry will be filed for shipments to 
be released incrementally would serve as a request that the pre-filed 
entry be converted to an application for a special permit for immediate 
delivery.
    In order to secure the separate release of each split portion of a 
shipment following its arrival, manifest information relating to the 
special permit which reflects exact information for each portion of the 
shipment must be presented to Customs. The carrier that split or 
deconsolidated the shipment must present this manifest information to 
Customs; this may be done either electronically or on a paper manifest. 
The carrier must identify successive portions of the split shipment as 
they arrive. Customs may, however, examine any or all parts of the 
split shipment and would reserve the right to deny incremental release 
should such an examination of the merchandise be necessary.
    As successive portions of the shipment arrive, these portions will 
be decremented against the manifested quantity, as reflected on the CF 
3461/CF 3461 ALT, or electronic equivalent. This will continue for up 
to 10 calendar days until the total manifested quantity has arrived. 
Each portion of a split shipment which does not arrive within 10 
calendar days of the first portion must be entered separately.

Filing of Entry Summary

    Where the shipment is entered after all portions of the shipment 
have arrived, the entry summary must be filed within 10 working days of 
the time of entry. In the alternative, where the shipment is instead 
initially released under a special permit for immediate delivery after 
all portions of the shipment have arrived, the entry summary, which 
would serve as both the entry and the entry summary, must be filed 
within 10 working days after the merchandise or any part of the 
merchandise has been authorized for release under the special permit, 
or, in the case of quota class merchandise, within the quota period, 
whichever expires first (see Secs. 142.21(e) and 142.23, Customs 
Regulations (19 CFR 142.21(e), 142.23)).
    Under proposed Sec. 142.21(g), in the case of a split shipment 
which is released incrementally under the immediate delivery 
procedures, the entry summary, which would serve as both the entry and 
the entry summary, must be filed within 10 working days from the date 
of the first release of a portion of the split shipment. However, under 
no circumstances may the entry/entry summary be filed before the last 
portion of the split shipment which is to be included on the entry has 
arrived.
    At the time of filing the entry summary, estimated duties, taxes 
and fees would need to be attached. If the entry summary is filed 
electronically, the estimated duties, taxes and fees would need to be 
scheduled at such time for payment pursuant to the Automated 
Clearinghouse (see Sec. 24.25 of this chapter).
    While 19 U.S.C. 1484(j) addresses the entry of merchandise, this 
legislation is silent as to classification principles. It is therefore 
proposed that for Customs classification purposes, the separate 
portions of a split shipment placed on one entry be classified as if 
they had been imported together.

Review of Entry Data; Evidence for Splitting of Shipment

    The importer of record would be responsible for reviewing the total 
manifested quantity shown on the CF 3461/CF 3461 ALT, or electronic 
equivalent, in relation to all portions of the split shipment that 
arrived within the specified 10 calendar day period. At the conclusion 
of the specified 10 calendar day period, the importer of record would 
have to make any adjustments necessary to reflect the actual amount, 
value, correct classification and rate of duty of the merchandise that 
was properly included

[[Page 57690]]

on the CF 3461/CF 3461 ALT or electronic equivalent. As discussed 
above, if all portions of the split shipment did not arrive within the 
required 10 calendar day period, an additional entry or entries as 
appropriate would have to be filed to cover any remaining portions of 
the split shipment that subsequently arrived.
    Additionally, the importer of record must maintain sufficient 
documentary evidence to substantiate that the splitting of the shipment 
was done by the carrier acting on its own, and not at the request of 
the foreign shipper and/or the importer of record. This documentation 
should include a copy of the originating bill of lading or waybill 
under which the shipment was delivered to the carrier in the country of 
exportation.

Exclusions From Split-Entry Procedure Under Proposed Sec. 142.21(g)

    Section 142.21(e) would be revised to make clear that the immediate 
delivery procedure under proposed Sec. 142.21(g) that would authorize 
the release of each portion of a split shipment upon its arrival would 
not be available for merchandise that is subject to quota and/or visa 
requirements.
    Customs also proposes to reserve the right for the port director to 
deny use of the incremental release procedure as circumstances warrant.
    Nevertheless, in the case of quota class merchandise and other 
classes of merchandise excluded by Customs from incremental release as 
circumstances warrant, or where incremental release is denied due to 
Customs need to examine the merchandise, the importer may still file a 
single entry or special permit for immediate delivery covering the 
entire split shipment of the merchandise following, and to the extent 
of, its arrival within the required 10 calendar day period.
    Accordingly, to implement 19 U.S.C. 1484(j) insofar as it enables 
Customs to accept a single entry for split shipments, as described, it 
is proposed to add a new Sec. 141.57 to the Customs Regulations (19 CFR 
141.57). Also, in addition to the proposed amendments to Sec. 142.21, 
as noted, a minor conforming change would be made as well to 
Sec. 141.51 of the Customs Regulations (19 CFR 141.51).

Comments

    Before adopting the proposed amendments, consideration will be 
given to any written comments that are timely submitted to Customs. 
Customs specifically requests comments on the clarity of this proposed 
rule and how it may be made easier to understand. Comments submitted 
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)), on regular business days between the hours of 9 a.m. 
and 4:30 p.m. at the Regulations Branch, 1300 Pennsylvania Avenue, NW., 
3rd Floor, Washington, DC.

Regulatory Flexibility Act and Executive Order 12886

    The proposed rule is intended to implement the statutory law and to 
engender cost savings by reducing paperwork for importers, and by 
reducing the number of entries required for split shipments. Hence, 
pursuant to the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.), it is certified that the proposed rule, if adopted, will 
not have a significant economic impact on a substantial number of small 
entities. Accordingly, it is not subject to the regulatory analysis or 
other requirements of 5 U.S.C. 603 and 604. Nor does the proposed rule 
result in a ``significant regulatory action'' under E.O. 12866.

Paperwork Reduction Act

    The collections of information encompassed within this proposed 
rule have already been reviewed and approved by the Office of 
Management and Budget (OMB) in accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3507) and assigned OMB Control Numbers 1515-0065 
(Requirement to make entry unless specifically exempt; Requirement to 
file entry summary form); 1515-0167 (Statement processing and Automated 
Clearinghouse); 1515-0214 (General recordkeeping and record production 
requirements); and 1515-0001 (Transportation manifest; cargo 
declaration). This rule does not propose any substantive changes to the 
existing approved information collections. An agency may not conduct, 
and a person is not required to respond to, a collection of information 
unless the collection of information displays a valid control number 
assigned by OMB.

List of Subjects

19 CFR Part 141

    Customs duties and inspection, Entry of merchandise, Release of 
merchandise, Reporting and recordkeeping requirements.

19 CFR Part 142

    Computer technology, Customs duties and inspection, Entry of 
merchandise, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    It is proposed to amend parts 141 and 142, Customs Regulations (19 
CFR parts 141 and 142), as set forth below.

PART 141--ENTRY OF MERCHANDISE

    1. The general authority citation for part 141 would continue to 
read as follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.
* * * * *
    2. It is proposed to revise Sec. 141.51 to read as follows:


Sec. 141.51  Quantity usually required to be in one entry.

    All merchandise arriving on one conveyance and consigned to one 
consignee must be included on one entry, except as provided in 
Sec. 141.52. In addition, a shipment of merchandise that arrives by 
separate conveyances at the same port of arrival in multiple portions, 
as a split shipment, may be processed under a single entry, as 
prescribed in Sec. 141.57.
    3. It is proposed to amend subpart D of part 141 by adding a new 
Sec. 141.57 to read as follows:


Sec. 141.57  Single entry for split shipments.

    (a) At election of importer of record. At the election of the 
importer of record, a split shipment, pursuant to section 484(j)(2), 
Tariff Act of 1930 (19 U.S.C. 1484(j)(2)), may be processed under a 
single entry, as prescribed under the procedures set forth in this 
section.
    (b) Split shipment defined. A ``split shipment'', for purposes of 
this section, means a shipment:
    (1) Which may be accommodated on a single conveyance, and which is 
delivered to and accepted by a carrier in the exporting country under 
one bill of lading or waybill, and is thus intended by the importer to 
arrive in the United States as a single shipment;
    (2) Which is thereafter divided by the carrier, acting on its own, 
into different portions which are transported and consigned to the same 
party in the United States; and
    (3) Of which the first portion and all succeeding portions arrive 
directly from foreign at the same port of importation in the United 
States, and all the succeeding portions arrive within 10 calendar days 
of the date of the first portion.
    (c) Notification by importer. The importer must notify Customs, in 
writing, that the shipment has been split at the carrier's initiative, 
that the

[[Page 57691]]

remainder of the shipment will arrive by subsequent conveyance(s), and 
that an election is being made to file a single entry for all portions. 
The required notification must be given as soon as the importer becomes 
aware that the shipment has been split, but in all cases notification 
must be made before the entry summary is filed.
    (d) Entry or special permit for immediate delivery. In order to 
make a single entry for a split shipment or obtain a special permit for 
the release of a split shipment under immediate delivery, an importer 
of record may follow the procedure prescribed in paragraph (d)(1) or 
(d)(2) of this section, as applicable.
    (1) Entry or special permit after arrival of entire shipment. An 
importer may file an entry at such time as all portions of the split 
shipment have arrived. In the alternative, again after the arrival of 
all portions of a split shipment, the importer may instead file a 
special permit for immediate delivery provided that the merchandise is 
eligible for such a permit under Sec. 142.21(a)-(f) and (h) of this 
chapter. In either case, Customs Form (CF) 3461 or CF 3461 alternate 
(CF 3461 ALT) as appropriate, or electronic equivalent, must be filed 
with Customs. The entry or special permit must indicate the total 
number of pieces in, as well as the total value of, the entire shipment 
as reflected on the invoice.
    (2) Special permit prior to arrival of entire shipment. As provided 
in Sec. 142.21(g) of this chapter, an importer of record may also file 
a special permit for immediate delivery after the arrival of the first 
portion of a split shipment, but before the arrival of the entire 
shipment, thus qualifying the split shipment for incremental release, 
under paragraph (e) of this section, as each portion of the shipment 
arrives (see paragraph (g)(2)(ii) of this section). In such case, a CF 
3461 or CF 3461 ALT as appropriate, or electronic equivalent, must be 
filed with Customs. As each portion arrives, the importer must submit a 
copy of the CF 3461/CF 3461 ALT, adjusted to reflect the quantity of 
that particular portion. In the event that an entry has been pre-filed 
with Customs (see Sec. 142.2(b) of this chapter), notification to 
Customs by the importer of record that a single entry will be filed for 
shipments released incrementally will serve as a request that the pre-
filed entry be converted to an application for a special permit for 
immediate delivery (see Sec. 142.21(g) of this chapter). The special 
permit must indicate the total number of pieces in, as well as the 
total value of, the entire shipment as reflected on the invoice. The 
release of each portion of the split shipment upon arrival, as 
permitted under this paragraph, may be limited due to Customs need to 
examine the merchandise in accordance with paragraph (f) of this 
section.
    (e) Release. To secure the separate release upon arrival of each 
portion of a split shipment under paragraph (d)(2) of this section, the 
carrier responsible for initially splitting the shipment must present 
to Customs either on a paper manifest or through an authorized 
electronic data interchange system manifest information relating to the 
shipment that reflects exact information for each portion of the split 
shipment.
    (f) Examination. Customs examination of any or all parts of the 
split shipment may be required. For split shipments subject to the 
immediate delivery procedure of paragraph (d)(2) of this section, 
Customs reserves the right to deny incremental release should such an 
examination of the merchandise be necessary. The denial of incremental 
release does not preclude the use of the procedures specified in 
paragraph (d)(1) of this section.
    (g) Entry summary--(1) Entry. For merchandise entered under 
paragraph (d)(1) of this section, an entry summary must be filed within 
10 working days from the time of entry.
    (2) Release for immediate delivery--(i) Release under paragraph 
(d)(1) of this section. For merchandise released under a special permit 
for immediate delivery pursuant to paragraph (d)(1) of this section, 
the entry summary, which serves as both the entry and the entry 
summary, must be filed within 10 working days after the merchandise or 
any part of the merchandise is authorized for release under the special 
permit or, for quota class merchandise, within the quota period, 
whichever expires first (see Sec. 142.23 of this chapter).
    (ii) Release under paragraph (d)(2) of this section. For 
merchandise released under a special permit for immediate delivery 
pursuant to paragraph (d)(2) of this section, the entry summary, which 
serves as both the entry and the entry summary, must be filed within 10 
working days from the date of the first release of a portion of the 
split shipment. When the entry summary is filed, it must reflect all 
portions of the split shipment which have been released, to include 
quantity, value, correct classification and rate of duty. The entry 
summary cannot include any portions of the split shipment which have 
not been released.
    (3) Duty payment. At the time the entry summary is filed under 
paragraphs (g)(1) and (g)(2)(i) and (ii) of this section, estimated 
duties, taxes and fees applicable to the released merchandise must be 
attached. If the entry summary is filed electronically, the estimated 
duties, taxes and fees must be scheduled for payment at such time 
pursuant to the Automated Clearinghouse (see Sec. 24.25 of this 
chapter).
    (h) Classification. For purposes of section 484(j)(2), Tariff Act 
of 1930 (19 U.S.C. 1484(j)(2)), the merchandise comprising the separate 
portions of a split shipment included on one entry will be classified 
as though imported together.
    (i) Separate entry required. All those portions of a split shipment 
that do not arrive within 10 calendar days of the portion that arrived 
first must be entered separately.
    (j) Requirement of importer to review entry and maintain evidence 
substantiating splitting of shipment--(1) Review of entry. The importer 
of record will be responsible for reviewing the total manifested 
quantity shown on the CF 3461/CF 3461 ALT, or electronic equivalent, in 
relation to all portions of the split shipment that arrived within the 
specified 10 calendar day period. At the conclusion of the specified 10 
calendar day period, the importer of record must make any adjustments 
necessary to reflect the actual amount, value, correct classification 
and rate of duty of the merchandise that was released incrementally 
under the split shipment procedures. If all portions of the split 
shipment do not arrive within the required 10 calendar day period, an 
additional entry or entries as appropriate must be filed to cover any 
remaining portions of the split shipment that subsequently arrive (see 
paragraph (i) of this section).
    (2) Evidence for splitting of shipment; recordkeeping. The importer 
of record must maintain sufficient documentary evidence to substantiate 
that the splitting of the shipment was done by the carrier acting on 
its own, and not at the request of the foreign shipper and/or the 
importer of record. This documentation should include a copy of the 
originating bill of lading or waybill under which the shipment was 
delivered to the carrier in the country of exportation. This 
documentary evidence as well as all other necessary records received or 
generated by or on behalf of the importer of record under this section 
must be maintained and produced, if requested, in accordance with part 
163 of this chapter.
    (k) Single entry limited; exclusions from single entry under 
incremental release procedure--(1) Quota/visa merchandise. Merchandise 
subject to

[[Page 57692]]

quota and/or visa requirements is excluded from incremental release 
under the immediate delivery procedure set forth in paragraph (d)(2) of 
this section and Sec. 142.21(g) of this chapter. Additionally, if by 
splitting a shipment any portion of it is subject to quota, no portion 
of the split shipment may be released incrementally.
    (2) Other merchandise. In addition, the port director may deny the 
use of the incremental release procedure set forth in paragraph (d)(2) 
of this section and Sec. 142.21(g) of this chapter, as circumstances 
warrant.
    (3) Limited single entry available. For merchandise described in 
paragraphs (k)(1) and (k)(2) of this section, that is excluded from the 
immediate delivery procedure of paragraph (d)(2) of this section and 
Sec. 142.21(g) of this chapter, the importer may still file a single 
entry or special permit for immediate delivery under paragraph (d)(1) 
of this section covering the entire split shipment of such merchandise 
following, and to the extent of, its arrival within the required 10 
calendar day period.

PART 142--ENTRY PROCESS

    1. The general authority for part 142 would continue to read as 
follows:

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.

    2. It is proposed to amend Sec. 142.21 as follows:
    a. By removing the second sentence in paragraph (e)(1) and adding 
in its place two new sentences,
    b. By removing the second sentence in paragraph (e)(2) and adding 
in its place two new sentences,
    c. By redesignating paragraph (g) as paragraph (h) and adding a new 
paragraph (g), and
    d. By revising newly redesignated paragraph (h).
    The additions and revision read as follows:


Sec. 142. 21  Merchandise eligible for special permit for immediate 
delivery.

* * * * *
    (e) Quota-class merchandise. (1) Tariff rate. * * * However, 
merchandise subject to a tariff-rate quota may not be incrementally 
released under a special permit for immediate delivery as provided in 
paragraph (g) of this section. Where a special permit is authorized, an 
entry summary will be properly presented pursuant to Sec. 132.1 of this 
chapter within the time specified in Sec. 142.23, or within the quota 
period, whichever expires first. * * *
    (2) Absolute. * * * However, merchandise subject to an absolute 
quota under this paragraph may not be incrementally released under a 
special permit for immediate delivery as provided in paragraph (g) of 
this section. Where a special permit is authorized, a proper entry 
summary must be presented for merchandise so released within the time 
specified in Sec. 142.23, or within the quota period, whichever expires 
first. * * *
* * * * *
    (g) Incremental release of split shipments. Merchandise subject to 
Sec. 141.57(d)(2) of this chapter, which is purchased and invoiced as a 
single shipment, but which is shipped by the carrier in separate 
portions to the same port of arrival due to the carrier's inability to 
accommodate the merchandise on a single conveyance, may be released 
incrementally under a special permit. Incremental release means 
releasing each portion of such shipments separately as they arrive.
    (h) When authorized by Headquarters. Headquarters may authorize the 
release of merchandise under the immediate delivery procedure in 
circumstances other than those described in paragraphs (a), (b), (c), 
(d), (e), (f) and (g) of this section provided a bond on Customs Form 
301 containing the bond conditions set forth in Sec. 113.62 of this 
chapter is on file.
    3. It is proposed to amend Sec. 142.22 by removing the first 
sentence of paragraph (a) and adding in its place the following two 
sentences to read as follows:


Sec. 142.22  Application for special permit for immediate delivery.

    (a) Form. An application for a special permit for immediate 
delivery will be made on Customs Form 3461, Form 3461 ALT, or its 
electronic equivalent, supported by the documentation provided for in 
Sec. 142.3. A commercial invoice will not be required, except for 
merchandise released under the provisions of 19 U.S.C. 1484(j).* * *
* * * * *

    Approved: November 7, 2001.
Charles W. Winwood,
Acting Commissioner of Customs.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 01-28551 Filed 11-15-01; 8:45 am]
BILLING CODE 4820-02-P